MoneyGram 2005 Annual Report Download - page 24

Table of Contents
Table 1 — Results of Operations
As a Percentage of
2005 2004 Total Revenue
vs vs
2005 2004 2003 2004 2003 2005 2004 2003
(%)
(Dollars in thousands) (%) (%) (%) (%)
Revenue:
Fee and other revenue $ 606,956 $ 500,940 $ 419,002 21 20 62 61 57
Investment revenue 367,989 315,983 323,099 16 (2) 38 38 44
Net securities (losses) gains (3,709) 9,607 (4,878) NM NM (0) 1 (1)
Total revenue 971,236 826,530 737,223 18 12 100 100 100
Fee commissions expense 231,209 183,561 144,997 26 27 24 22 20
Investment commissions expense 239,263 219,912 232,336 9 (5) 25 27 31
Total commissions expense 470,472 403,473 377,333 17 7 49 49 51
Net revenue 500,764 423,057 359,890 18 18 51 51 49
Expenses:
Compensation and benefits 132,715 126,641 107,497 5 18 14 15 15
Transaction and operations support 150,038 120,767 101,513 24 19 15 15 14
Depreciation and amortization 32,465 29,567 27,295 10 8 3 4 4
Occupancy, equipment and supplies 31,562 30,828 25,557 2 21 3 3 3
Interest expense 7,608 5,573 9,857 37 (43) 1 1 1
Debt tender and redemption costs — 20,661 — NM NM 0 2 0
Total expenses 354,388 334,037 271,719 6 23 36 40 37
Income from continuing operations before income taxes 146,376 89,020 88,171 64 1 15 11 12
Income tax expense 34,170 23,891 12,485 43 91 4 3 2
Income from continuing operations $ 112,206 $ 65,129 $ 75,686 72 (14) 11 8 10
NM = Not meaningful
Compared to 2004, total revenue in 2005 increased by $144.7 million, or 18 percent, and net revenue increased $77.7 million, or 18 percent, primarily driven
by transaction growth of 38 percent in the money transfer business, $12.6 million of cash recoveries on previously impaired securities and $6.2 million of
income from limited partnership interests. Total revenue in 2004 increased by $89.3 million, or 12 percent, and net revenue increased $63.2 million, or
18 percent, over 2003, driven by transaction growth in the money transfer business and higher net investment gains.
Total expenses, excluding commissions, increased in 2005 by $20.4 million, or 6 percent, over 2004. Total expenses in 2004 include debt tender and
redemption costs of $20.7 million related to the redemption of Viad's preferred shares and tender for its subordinated debt and medium term notes in
connection with the spin-off. Other expenses increased $41.0 million, or 13 percent, over 2004 primarily due to transaction growth, marketing and employee-
related expenses supporting our revenue growth. Total expenses, excluding commissions, increased in 2004 by $62.3 million, or 23 percent, over 2003
primarily due to the 2004 debt tender and redemption costs and the same factors noted above.
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