MoneyGram International, Inc. (NASDAQ:MGI) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
The disclosure regarding Executive Officer salary reductions set forth in Item 7.01 below is incorporated by reference into this Item 5.02. Mr. Holmes, Chairman and CEO of the Company, has entered into an amendment to his Amended and Restated Employment Agreement with the Company to allow for his salary reduction and the other Executive Officers of the Company have signed letter agreements consenting to their salary reductions.
MoneyGram International, Inc., a Delaware corporation (the Company) is one of many global companies providing essential services during the current global health crisis related to the novel COVID-19 coronavirus (COVID-19) pandemic. With the use of technology, the Company has been able to maintain continuity of its operations and has transitioned its workforce to work from home. Notwithstanding, due to COVID-19 related mandatory closures and stay-at-home orders, many of the Companys agents are closed and our consumers have had to curtail their financial activities. As a result, since the middle of March the Company has seen a negative impact on its transaction volume and revenue from its walk-in business.
To help protect its employees, shareholders, and consumers amid the COVID-19 pandemic, the Company has proactively implemented a comprehensive set of actions to help ensure continuity of its services and its financial stability during this period of uncertainty.
Expense Reduction Initiatives
Effective immediately, the Company is announcing that:
In addition, the Company has already temporarily suspended a majority of discretionary expenses not directly related to revenue-generating activity.
The salary and Board cash retainer reductions described above will be effective until the Board determines in its discretion that the effects of COVID-19 have subsided. The amounts relinquished by non-hourly employees, including Executive Officers, and the Board may be paid back to all or any of such individuals in the future, as determined by the Board in its discretion.
As previously announced, the Company has also borrowed $23 million of the Companys $35 million revolving credit facility as a proactive measure to increase the Companys cash position and preserve financial flexibility in light of current uncertainty in the global markets resulting from the COVID-19 pandemic. Further details related to the borrowing are set forth in the Form 8-K filed by the Company on March 27, 2020.
First Quarter 2020 Outlook Update
While the Companys performance had been in line with its first quarter outlook through the middle of March, due to the recent disruption and uncertainty caused by the COVID-19 pandemic, the Company is withdrawing its first quarter fiscal 2020 financial outlook provided on February 24, 2020 and is not providing an updated financial outlook at this time.
Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in MoneyGrams SEC filings. MoneyGrams SEC filings may be obtained by contacting MoneyGram, through MoneyGrams web site at ir.moneygram.com or through the SECs Electronic Data Gathering and Analysis Retrieval System (EDGAR) at http://www.sec.gov. MoneyGram undertakes no obligation to publicly update or revise any forward-looking statement.