MoneyGram 2006 Annual Report Download - page 24

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Table of Contents
YEAR ENDED DECEMBER 31, 2006 2005 2004 2003 2002
(Amounts in thousands, except per share data)
Other Selected Data
Capital expenditures $ 81,033 $ 47,359 $ 29,589 $ 27,128 $ 26,842
Depreciation and amortization 38,978 32,465 29,567 27,295 25,894
Cash dividends declared per share (6) 0.17 0.07 0.20 0.36 0.36
Average investable balances (7) 6,333,115 6,726,790 6,772,124 6,979,247 6,131,145
Net investment margin (8) 2.31% 1.91% 1.42% 1.30% 1.81%
Approximate number of countries and
territories served 170 170 170 160 155
Number of money order locations (9) 55,000 53,000 54,000 54,000 53,000
Number of money transfer locations (9) 110,000 89,000 77,000 63,000 57,000
(1) Earnings per share for 2002 through 2003 is based on outstanding shares of Viad common stock. On June 30, 2004, Viad effected a 1:1
distribution of MoneyGram common stock, for a total distribution of 88,556,077 shares.
(2) Unrestricted and restricted assets are comprised of cash and cash equivalents, receivables and investments. See Note 2 of the Notes to
Consolidated Financial Statements for the determination of unrestricted assets.
(3) Long-term debt for 2002 through 2003 represents Viad's long-term debt prior to the June 30, 2004 spin-off. In connection with the
spin-off, Viad repurchased $52.6 million of its medium-term notes and subordinated debt. In addition, Viad repaid $188.0 million of
its outstanding commercial paper and retired $9.0 million of industrial revenue bonds.
(4) Redeemable preferred stock relates solely to shares issued by Viad and redeemed in connection with the June 30, 2004 spin-off.
(5) Stockholders' equity for 2002 through 2003 represents Viad's capital structure prior to the June 30, 2004 spin-off.
(6) Cash dividends declared per share for 2002 through 2003 is based on dividends declared by Viad to holders of its common stock. Viad
declared dividends of $0.18 per share during the first half of 2004. MoneyGram declared dividends of $0.02 per share during the
second half of 2004.
(7) Investable balances are comprised of cash and cash equivalents and investments.
(8) Net investment margin is determined as net investment revenue (investment revenue less investment commissions) divided by daily
average investable balances.
(9) Includes 16,000, 16,000, 15,000, 12,000 and 11,000 locations in 2006, 2005, 2004, 2003 and 2002, respectively, that issue both money
orders and offer money transfers.
Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion should be read in conjunction with MoneyGram International, Inc.'s consolidated financial statements and
related notes. This discussion contains forward-looking statements that involve risks and uncertainties. MoneyGram's actual results could
differ materially from those anticipated due to various factors discussed under "Cautionary Statements Regarding Forward-Looking
Statements" and elsewhere in this Annual Report on Form 10-K.
Our Separation from Viad Corp
On July 24, 2003, Viad announced a plan to separate its payment services segment, operated by Travelers, from its other businesses into a
new company, and to effect a tax-free distribution of its shares in that company to Viad's stockholders. On December 18, 2003,
MoneyGram was incorporated in Delaware as a subsidiary of Viad for the purpose of effecting the proposed distribution. On June 30,
2004, Travelers was merged with a wholly owned subsidiary of MoneyGram and Viad distributed 88,556,077 shares of MoneyGram
common stock to Viad 21