MoneyGram 2013 Annual Report Download - page 118

Table of Contents
2012 Fiscal Quarters:
Note 17 — Subsequent Events
The Company has evaluated subsequent events through the date of issuance of the Company's Audited Consolidated Financial Statements.
On February 11, 2014, the Company announced a reorganization and restructuring program to enhance operating efficiencies and reduce the
Company's cost structure. The Company currently estimates that it will incur cash outlays over the next two years of approximately
$30.0
million to $40.0 million in connection with these actions and generate an annual estimated pre-tax cost savings of $15.0 million to
$20.0
million .
Note 18 — Condensed Consolidating Financial Statements
In the event the Company offers debt securities pursuant to an effective registration statement on Form S-
3, these debt securities may be
guaranteed by certain of its subsidiaries. Accordingly, the Company is providing condensed consolidating financial information in accordance
with SEC Regulation S-X Rule 3-10,
Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.
If the Company issues debt securities, the following 100 percent
directly or indirectly owned subsidiaries could fully and unconditionally
guarantee the debt securities on a joint and several basis: MoneyGram Payment Systems Worldwide, Inc.; MoneyGram Payment Systems, Inc.;
and MoneyGram of New York LLC (collectively, the “Guarantors”).
The following information represents condensed, consolidating Balance Sheets as of December 31, 2013 and 2012
, along with condensed,
consolidating Statements of Operations, Statements of Comprehensive Income (Loss) and Statements of Cash Flows for the years ended
December 31, 2013 , 2012 and 2011
. The condensed, consolidating financial information presents financial information in separate columns for
MoneyGram International, Inc. on a Parent-
only basis carrying its investment in subsidiaries under the equity method; Guarantors on a combined
basis, carrying investments in subsidiaries that are not expected to guarantee the debt (collectively, the “Non-Guarantors”)
under the equity
method; Non-
Guarantors on a combined basis; and eliminating entries. The eliminating entries primarily reflect intercompany transactions, such
as accounts receivable and payable, fee revenue and commissions expense and the elimination of equity investments and income in subsidiaries.
F-47
(Amounts in millions, except per share data)
First
(2)
Second
(2)
Third
(2)
Fourth
(2)
Total revenue
$
318.1
$
330.1
$
338.6
$
354.4
Total operating expenses
282.2
326.9
366.0
313.7
Operating income (loss)
35.9
3.2
(27.4
)
40.7
Total other expenses, net
17.9
18.0
17.7
7.7
Income (loss) before income taxes
$
18.0
$
(14.8
)
$
(45.1
)
$
33.0
Net income (loss)
$
10.3
$
(25.1
)
$
(54.7
)
$
20.2
Income (loss) per common share
Basic
$
0.14
$
(0.35
)
$
(0.77
)
$
0.28
Diluted
$
0.14
$
(0.35
)
$
(0.77
)
$
0.28
(1)
Net loss in the first quarter of
2013 includes $45.3 million
for the debt extinguishment loss.
(2)
Operating expenses in the first, second, third and fourth quarter of 2012 include reorganization and restructuring costs of $5.8 million , $4.4 million , $4.0 million and
$5.1
million , respectively. Operating expenses in the first, second, third and fourth quarter of 2012 include legal expenses of $3.6 million , $39.6 million , $72.3 million
, and
$3.7 million , respectively. The Company expensed $30.0 million and $70.0 million
in the second and third quarter, respectively, related to the forfeiture settlement entered
into on November 9, 2012 between the Company and the MDPA and U.S. DOJ.