SEC Form 20-IS - iRemit Global Remittance

Goodwill decreased by PHP 1.5 million or -1.6% from PHP 94.5 million as of March 31, 2011 to PHP 93.0
million as of March 31, 2012 due to foreign exchange adjustment. Deferred tax asset increased by PHP 1.9
million or 36.5% from PHP 5.3 million as of March 31, 2011 to PHP 7.2 million as of March 31, 2012. Software
costs–net decreased by PHP 1.0 million or -38.8% from PHP 2.6 million as of March 31, 2011 to PHP 1.6
million as of March 31, 2012. Other noncurrent assets decreased by PHP 2.3 million or -5.4% from PHP 43.1
million as of March 31, 2011 to PHP 40.8 million as of March 31, 2012.
Total liabilities decreased by PHP 313.0 million or -25.0% from PHP 1.250 billion as of March 31, 2011 to PHP
937.9 million as of March 31, 2012. Total liabilities as of March 31, 2012 and March 31, 2011 are 40.3% and
49.3% of the total liabilities and equity as of March 31, 2012 and March 31, 2011, respectively. Current
liabilities decreased by PHP 312.4 million or -25.0% from PHP 1.250 billion as of March 31, 2011 to PHP
937.8 million as of March 31, 2012 mainly due to the decrease in beneficiaries and other payables by PHP
229.8 million or -43.1 from PHP 533.2 million as of March 31, 2011 to PHP 303.4 million as of March 31, 2012
as well as to interest-bearing loans by PHP 83.0 million or -11.8 from PHP 701.0 million as of March 31, 2011
to PHP 618.0 million as of March 31, 2012. Interest-bearing loans consist of unsecured, short-term pesodenominated
loans from various local financial institutions with interest rates ranging from 5.0% to 6.75% per
annum in First Quarter 2012 and 5.0% to 6.0% in First Quarter 2011. Total current liabilities as of March 31,
2012 and March 31, 2011 are 40.3% and 49.3% of the total liabilities and equity as of March 31, 2012 and
March 31, 2011, respectively.
Accounts payable and other liabilities decreased by PHP 229.4 million or -41.8% to PHP 319.8 million as of
March 31, 2012 compared with PHP 549.2 million as of March 31, 2011. Accounts payable and other liabilities
as of March 31, 2012 and March 31, 2011 are 13.8% and 21.6% of the total liabilities and equity as of March
31, 2012 and March 31, 2011, respectively. Comprising accounts payable and other liabilities are payables to
beneficiaries of PHP 232.9 million, payables to agents, couriers and trading clients of PHP 34.6 million,
accrued expenses of PHP 17.2 million, withholding tax payable of PHP 2.2 million, advances from related
parties of PHP 12.2 million, income tax payable of PHP 16.4 million, payables to government agencies of PHP
1.4 million, and other non-trade payables of PHP 2.9 million. Noncurrent liabilities amounting to PHP 0.12
million as of March 31, 2012 consist of retirement liability of PHP 0.09 million and deferred tax liability of PHP
0.03 million.
The Company’s stockholders’ equity as of March 31, 2012 stood at PHP 1.387 billion, higher by PHP 100.6
million or 7.8% against the March 31, 2011 level of PHP 1.286 billion due to higher net income and stock
dividend. Total stockholders’ equity as of March 31, 2012 and March 31, 2011 are 59.7% and 50.7% of the
total liabilities and equity as of March 31, 2012 and March 31, 2011, respectively.
The Bangko Sentral ng Pilipinas reported last month that money transfers by overseas Filipinos grew by 5.8%
to USD1.587 billion in February 2012 from USD1.5 billion a year earlier. On a year-to-date basis, the total
remittance inflows amounted to USD3.144 billion in January to February of 2012, growing by 5.6% against the
inflows of USD2.977 billion in the first two (2) months of 2011. The continued inflow of remittances is
supported by the sustained demand for Filipino manpower in various foreign labor markets. The Philippine
Overseas Employment Administration (POEA) recently announced that it expects over a million highly skilled
Filipino workers would be hired abroad this year. The latest data from the POEA showed that for the period
January-March 2012, job orders for professional and technical, service and production workers increased
24.6% to 200,010 compared with the same period last year. These are mainly intended for employment
opportunities in Saudi Arabia, United Arab Emirates, Qatar, Taiwan, Kuwait, Singapore and Hong Kong,
among others.
Below are the comparative key performance indicators of the Company and its subsidiaries:
Mar. 31, 2012 Mar. 31, 2011
Performance Indicator Definition
(Three Months) (Three Months)
Return on Equity (ROE)
Net income* over average stockholders’ equity during the
period
2% 2%
Return on Assets (ROA) Net income* over average total assets during the period 1% 1%
Earnings per Share (EPS) Net income* over average number of outstanding shares PHP 0.06 PHP 0.05
Sales Growth
Total transaction value in USD in present period over the
previous year
47% 9%
Gross Income Revenue less total cost of services (PHP millions) 148.2 165.5
* Net Income attributable to equity holders of the Parent Company and Minority Interest. EPS computed using Net Income
attributable to equity holders of the Parent Company for the periods ended March 31, 2012 and March 31, 2011 are PHP
0.06 and PHP 0.05, respectively.
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