Cardtronics, Inc. (Nasdaq:CATM) (the "Company"), the world's
largest non-bank owner of ATMs, today announced its financial and
operational results for the quarter ended March 31, 2010.
Key financial and operational statistics related to the quarter
include:
-
Consolidated revenues of $127.8 million, up 11% from the first
quarter of 2009 (9% on a constant currency basis)
-
Revenue growth of approximately 11% on a constant currency basis
for the Company's core business operations, which include the
Company's domestic company-owned large-account ATM placement and
branding business and the Company's international operations
-
Gross margins of 31%, up from 27% in the first quarter of
2009
-
Adjusted EBITDA of $29.3 million, up approximately 30% from
$22.5 million in the first quarter of 2009
-
Adjusted Net Income per Share of $0.19, up from $0.09 in the
first quarter of 2009
-
GAAP Net Income of $4.0 million compared to a $5.1 million GAAP
Net Loss in the first quarter of 2009
-
Continued improvements in several key operating metrics when
compared to the first quarter of 2009:
o Total cash withdrawal transactions increased by
6%
o Cash withdrawal transactions per ATM increased by
4%
o Total transactions per ATM increased by
7%
o ATM operating gross profit per ATM increased
by 25%
Please refer to the "Disclosure of Non-GAAP Financial
Information" contained later in this release for definitions of
Adjusted EBITDA, Adjusted Net Income, Free Cash Flow, and amounts
presented on a constant currency basis. For additional
financial information, including reconciliations to comparable GAAP
measures, please refer to the supplemental schedules of selected
financial information at the end of this release.
"The strong operating trends that Cardtronics experienced during
2009, especially in the United States, continued during the first
quarter of 2010," commented Steve Rathgaber, Cardtronics' Chief
Executive Officer. "Since joining Cardtronics in February, I am
even more confident in the unique value proposition that
Cardtronics has to offer and in the Company's ability to leverage
its existing asset base to drive future transaction and revenue
growth."
RECENT HIGHLIGHTS
-
Successful completion of a secondary offering in March 2010 of
8,050,000 shares of existing common stock by selling shareholders
at a price to the public of $12 per share. The offering,
which consisted entirely of already outstanding common shares held
by the Company's long-time private equity investors, The CapStreet
Group and TA Associates, increased the size of the Company's public
float by over 40%. Cardtronics did not receive any proceeds
from the sale of such shares.
-
Expansion of the Company's managed services product offerings
through the execution of multi-year ATM managed services agreements
with Travelex, the world's largest retail foreign exchange
specialist, and Pacific Convenience & Fuels, LLC, the largest
licensee of the Circle K brand. Under the agreements,
Cardtronics will provide transaction processing and ATM management
services for these customers.
-
Continued strong liquidity and access to capital, with over $170
million in available borrowing capacity under the Company's
revolving credit facility with leading financial institutions,
after taking into consideration outstanding letters of credit.
As of March 31, 2010, the Company's ratio of total debt to
Adjusted EBITDA for the trailing twelve months was 2.6 to 1.
FIRST QUARTER RESULTS
For the first quarter of 2010, consolidated revenues totaled
$127.8 million, representing an 11% increase (9% on a constant
currency basis, which is defined in the "Disclosure of Non-GAAP
Financial Information" below) from the $115.3 million in revenues
generated during the first quarter of 2009. This increase
reflects 13% revenue growth (11% on a constant currency basis) in
the Company's core business operations, which include the Company's
higher-margin domestic large-account ATM placement and
international businesses, that was offset slightly by a decline in
the Company's lower-margin merchant-owned account base. The
increase in core revenues was driven by a combination of strong
transaction trends in the Company's United States and Mexico
operating segments, year-over-year surcharge rate increases in the
United States, and continued unit growth within the Company's
United Kingdom operating segment. Additionally, the Company
continued to see increased bank branding and surcharge-free network
revenues in the United States due to the continued growth of its
surcharge-free offerings.
The Company generated Adjusted EBITDA of $29.3 million during
the first quarter of 2010, compared to $22.5 million during the
first quarter of 2009, and Adjusted Net Income of $7.6 million
($0.19 per diluted share), compared to $3.4 million ($0.09 per
diluted share) during the first quarter of 2009. These
increases were primarily attributable to higher gross margins,
which increased from 27% during the first quarter of 2009 to 31%
during the first quarter of 2010, primarily as a result of the
increase in revenues (noted above), the continued shift of revenues
from lower-margin revenues to higher-margin interchange and
surcharge-free network and bank branding revenues, and the
Company's ability to leverage its fixed cost infrastructure to
generate strong margins from those higher revenues. In
particular, the Company experienced declines in its maintenance and
armored expenses during the first quarter of 2010 when compared to
the first quarter of 2009 due to the renegotiation of the Company's
primary domestic maintenance and armored courier service agreements
during the second quarter of 2009. Specific costs excluded from
Adjusted EBITDA and Adjusted Net Income are detailed in a
reconciliation included at the end of this press release.
GAAP Net Income for the first quarter of 2010 totaled $4.0
million, compared to a $5.1 million GAAP Net Loss during the same
quarter in 2009. The year-over-year improvement was primarily
attributable to the factors identified above in the discussion of
Adjusted EBITDA and Adjusted Net Income. However, the Net
Loss for the first quarter of 2009 included $1.2 million in
severance costs associated with the departure of the Company's
former Chief Executive Officer in March 2009 and $2.1 million of
losses on the disposal of assets due to certain optimization
efforts undertaken by the Company, which did not recur in
2010.
2010 GUIDANCE
The Company is updating the guidance it previously issued
regarding its anticipated full-year 2010 results, and now expects
the following:
-
Revenues of $520 million to $530 million;
-
Overall gross margins of approximately 31% to 31.5%;
-
Adjusted EBITDA of $120 million to $125 million;
-
Depreciation and accretion expense of $42 million;
-
Cash interest expense of $29.5 million;
-
Adjusted Net Income of $0.75 to $0.85 per diluted share, based
on approximately 41.5 million weighted average diluted shares
outstanding; and
-
Capital expenditures of approximately $45 million, net of
noncontrolling interests.
The above guidance excludes the impact of certain one-time items
as well as approximately $6.5 million of anticipated stock-based
compensation expense and approximately $14 million to $15 million
of intangible asset amortization expense. Additionally, the above
guidance is based on estimated average foreign currency exchange
rates of $1.50 U.S. to £1.00 U.K. and $12.50 Mexican pesos to $1.00
U.S.
LIQUIDITY
The Company continues to maintain a very strong liquidity
position. The Company's $175.0 million revolving credit
facility does not expire until May 2012 and is led by a syndicate
of leading banks. As of March 31, 2010, the Company had no amounts
outstanding under the facility. Additionally, the Company was,
and continues to be, in compliance with the covenants contained
within this facility and will continue to be in compliance even in
the event of substantially higher borrowings or substantially lower
Adjusted EBITDA amounts. As a result, the Company has access
to $170.6 million in available, committed funding, after taking
into account the $4.4 million in letters of credit posted under the
facility. The Company's remaining indebtedness as of March 31,
2010 included $0.1 million of capital leases in the United States,
$9.8 million of equipment loans in Mexico, and $297.4 million in
senior subordinated notes, net of discounts. The fixed rate
senior subordinated notes require no amortization prior to their
August 2013 maturity date and contain no maintenance covenants and
only limited incurrence covenants under which the Company has
considerable flexibility.
The continued generation of pre-tax operating profits could
subject the Company to increased federal, state and local income
tax cash obligations in many of its jurisdictions. However,
the Company currently has in excess of $38.0 million of domestic
federal net operating loss carryforwards that can be utilized to
help offset such future cash tax obligations, subject to certain
restrictions and limitations.
DISCLOSURE OF NON-GAAP FINANCIAL
INFORMATION
EBITDA, Adjusted EBITDA, Adjusted Net Income, Free Cash Flow,
and amounts presented on a constant currency basis are non-GAAP
financial measures provided as a complement to results prepared in
accordance with accounting principles generally accepted within the
United States of America and may not be comparable to similarly
titled measures reported by other companies. Management
believes that the presentation of these measures and the
identification of unusual, non-recurring, or non-cash items enhance
an investor's understanding of the underlying trends in the
Company's business and provide for better comparability between
periods in different years.
Adjusted EBITDA excludes depreciation, accretion, and
amortization expense as these amounts can vary substantially from
company to company within the Company's industry depending upon
accounting methods and book values of assets, capital structures
and the method by which the assets were acquired. Additionally,
Adjusted EBITDA and Adjusted Net Income exclude certain
non-recurring or non-cash items and therefore, may not be
comparable to similarly titled measures employed by other
companies. Free Cash Flow is cash provided by operating
activities less payments for capital expenditures. Finally,
amounts provided on a constant currency basis are calculated by
applying the foreign exchange rate in effect for the applicable
prior period to the current year amounts denominated in the
respective local currencies. The non-GAAP financial measures
presented herein should not be considered in isolation or as a
substitute for operating income, net income, cash flows from
operating, investing, or financing activities, or other income or
cash flow statement data prepared in accordance with GAAP.
A reconciliation of Net Income (Loss) Attributable to
Controlling Interests to EBITDA, Adjusted EBITDA, and Adjusted Net
Income and a calculation of Free Cash Flow are presented in tabular
form at the end of this press release.
CONFERENCE CALL INFORMATION
The Company will host a conference call today, Thursday, April
29, 2010, at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) to
discuss its financial results for the quarter ended March 31, 2010.
To access the call, please call the conference call operator
at:
Dial
in: (877)
303-9205
Alternate dial-in:
(760) 536-5226
Please call in fifteen minutes prior to the scheduled start time
and request to be connected to the "Cardtronics First Quarter
Earnings Conference Call." Additionally, a live audio webcast of
the conference call will be available online through the investor
relations section of the Company's website at
http://www.cardtronics.com.
A digital replay of the conference call will be available
through Friday, May 14, 2010, and can be accessed by calling (800)
642-1687 or (706) 645-9291 and entering 67810681 for the conference
ID. A replay of the conference call will also be available online
through the Company's website subsequent to the call through May
31, 2010.
ABOUT CARDTRONICS
Headquartered in Houston, Texas, Cardtronics is the world's
largest non-bank owner of ATMs. Cardtronics operates over 33,700
ATMs across its portfolio, with ATMs in every major market in the
United States and in the U.S. territories of Puerto Rico and the
U.S. Virgin Islands, over 2,700 ATMs throughout the United Kingdom,
and over 2,800 ATMs throughout Mexico. Included in
Cardtronics' portfolio are approximately 2,200 multi-function
financial services kiosks that, in addition to traditional ATM
functions, perform other automated consumer financial
services. Major merchant clients include 7-Eleven®, Chevron®,
Costco®, CVS®/pharmacy, ExxonMobil®, Rite Aid®, Safeway®, Target®,
and Walgreens®. Complementing its ATM operations,
Cardtronics works with financial institutions of all sizes to
provide their customers with convenient cash access and deposit
capabilities through ATM branding and surcharge-free programs, with
currently over 11,700 Cardtronics owned and operated ATMs featuring
bank brands. More recently, Cardtronics started offering a
managed services solution to retailers and financial institutions
that are looking to outsource some or all of the operational
aspects associated with operating and maintaining their ATM fleets.
For more information, please visit
http://www.cardtronics.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements give the Company's current
expectations or forecasts of future events, future financial
performance, strategies, expectations, competitive environment,
regulation, and availability of resources. Many of the
forward-looking statements contained in this release relate to the
Company's first quarter financial results and the underlying
business events that generated those results. They include,
among other things, statements concerning projections, predictions,
expectations, estimates or forecasts as to the Company's business,
financial and operational results and future economic performance,
and statements of management's goals and objectives and other
similar expressions concerning matters that are not historical
facts. Such statements are subject to risks and uncertainties
that could cause actual performance or results to differ materially
from those expressed in or suggested by the forward-looking
statements. Such risks and uncertainties include, but are not
limited to, the following:
-
the Company's financial outlook and the financial outlook of the
ATM industry;
-
the Company's ability to provide new ATM solutions to financial
institutions;
-
the Company's ATM vault cash rental needs, including potential
liquidity issues with its vault cash providers;
-
the implementation of the Company's corporate strategy;
-
the Company's ability to compete successfully with new and
existing competitors;
-
the Company's ability to renew and strengthen its existing
customer relationships and add new customers;
-
the Company's ability to meet the service levels required by its
service level agreements with its customers;
-
the Company's ability to pursue and successfully integrate
acquisitions;
-
the Company's ability to successfully manage its existing
international operations and to continue to expand
internationally;
-
the Company's ability to prevent security breaches;
-
the Company's ability to manage the risks associated with its
third-party service providers failing to perform their contractual
obligations;
-
changes in interest rates, foreign currency rates and regulatory
requirements; and
-
the additional risks the Company is exposed to in its armored
transport business.
Other factors that could cause the Company's actual performance
or results to differ from its projected results are described in
its filings with the Securities and Exchange Commission, including
its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K. You should not read forward-looking
statements as a guarantee of future performance or
results. They will not necessarily be accurate indications of
the times at or by which such performance or results will be
achieved. Forward-looking statements speak only as of the date
the statements are made and are based on information available at
the time those statements are made and/or management's good faith
belief as of that time with respect to future events. The
Company assumes no obligation to update forward-looking statements
to reflect actual results, changes in assumptions or changes in
other factors affecting forward-looking information.
The Cardtronics logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=991
Consolidated Statements of Operations
|
For the Three Months Ended March 31, 2010 and
2009
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
2010
|
2009
|
|
|
(In thousands, except share and per share
information)
|
Revenues:
|
|
|
|
ATM operating revenues
|
|
$125,687
|
$113,580
|
ATM product sales and other revenues
|
|
2,089
|
1,765
|
Total revenues
|
|
127,776
|
115,345
|
Cost of revenues:
|
|
|
|
Cost of ATM operating revenues (exclusive of depreciation,
accretion, and amortization shown separately below)
|
|
85,879
|
82,229
|
Cost of ATM product sales and other revenues
|
|
2,193
|
1,814
|
Total cost of revenues
|
|
88,072
|
84,043
|
Gross profit
|
|
39,704
|
31,302
|
Operating expenses:
|
|
|
|
Selling, general, and administrative expenses (1)
|
|
11,143
|
10,855
|
Depreciation and accretion expense
|
|
10,222
|
9,639
|
Amortization expense
|
|
3,979
|
4,527
|
Loss on disposal of assets
|
|
377
|
2,108
|
Total operating expenses
|
|
25,721
|
27,129
|
Income from operations
|
|
13,983
|
4,173
|
Other expense:
|
|
|
|
Interest expense, net
|
|
7,318
|
7,711
|
Amortization of deferred financing costs and bond
discounts
|
|
630
|
568
|
Other expense (income)
|
|
366
|
(86)
|
Total other expense
|
|
8,314
|
8,193
|
Income (loss) before income taxes
|
|
5,669
|
(4,020)
|
Income tax expense
|
|
1,439
|
1,017
|
Net income (loss)
|
|
4,230
|
(5,037)
|
Net income attributable to noncontrolling interests
|
|
265
|
31
|
Net income (loss) attributable to controlling interests and
available to common shareholders
|
|
$3,965
|
$(5,068)
|
|
|
|
|
Net income (loss) per common share – basic
|
|
$0.10
|
$(0.13)
|
Net income (loss) per common share – diluted
|
|
$0.09
|
$(0.13)
|
|
|
|
|
Weighted average shares outstanding – basic
|
|
39,850,122
|
38,960,083
|
Weighted average shares outstanding – diluted
|
|
40,721,310
|
38,960,083
|
|
|
|
|
|
|
|
|
(1) Selling, general, and administrative
expenses for the three months ended March 31, 2010 includes $0.6
million of costs associated with the preparation and filing of a
shelf registration statement and the completion of a secondary
equity offering, and approximately $0.4 million in incremental
stock-based compensation expense (when compared to the same period
in the prior year). Selling, general, and administrative
expenses for the three months ended March 31, 2009 includes $1.2
million in severance costs associated with the departure of the
Company's former Chief Executive Officer in March 2009.
|
Condensed Consolidated Balance Sheets
|
As of March 31, 2010 and December 31, 2009
|
(Unaudited)
|
|
|
|
|
|
|
March 31, 2010
|
December 31, 2009
|
|
|
(In thousands)
|
Assets
|
|
|
|
Current assets:
|
|
|
|
Cash and cash equivalents
|
|
$10,694
|
$10,449
|
Accounts and notes receivable, net
|
|
27,004
|
27,700
|
Inventory
|
|
1,977
|
2,617
|
Restricted cash, short-term
|
|
3,151
|
3,452
|
Prepaid expenses, deferred costs, and other current
assets
|
|
9,333
|
8,850
|
Total current assets
|
|
52,159
|
53,068
|
Property and equipment, net
|
|
144,657
|
147,348
|
Intangible assets, net
|
|
84,084
|
89,036
|
Goodwill
|
|
164,235
|
165,166
|
Prepaid expenses, deferred costs, and other assets
|
|
4,187
|
5,786
|
Total assets
|
|
$449,322
|
$460,404
|
|
|
|
|
Liabilities and Stockholders' Deficit
|
|
|
|
Current liabilities:
|
|
|
|
Current portion of long-term debt and notes payable
|
|
$2,353
|
$2,122
|
Current portion of capital lease obligations
|
|
96
|
235
|
Current portion of other long-term liabilities
|
|
26,242
|
26,047
|
Accounts payable and other accrued and current
liabilities
|
|
60,055
|
73,608
|
Total current liabilities
|
|
88,746
|
102,012
|
Long-term liabilities:
|
|
|
|
Long-term debt, net of related discounts
|
|
304,835
|
304,930
|
Deferred tax liability, net
|
|
13,189
|
12,250
|
Asset retirement obligations
|
|
24,655
|
24,003
|
Other long-term liabilities
|
|
20,174
|
18,499
|
Total liabilities
|
|
451,599
|
461,694
|
Stockholders' deficit
|
|
(2,277)
|
(1,290)
|
Total liabilities and stockholders' deficit
|
|
$449,322
|
$460,404
|
SELECTED INCOME STATEMENT DETAIL:
|
|
|
|
|
|
Total revenues by segment:
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
2010
|
2009
|
|
(In thousands)
|
United States
|
$101,909
|
$96,767
|
United Kingdom
|
18,621
|
14,777
|
Mexico
|
7,246
|
3,801
|
Total revenues
|
$127,776
|
$115,345
|
|
|
|
Breakout of ATM operating revenues:
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
2010
|
2009
|
|
(In thousands)
|
Surcharge revenues
|
$65,815
|
$60,876
|
Interchange revenues
|
37,817
|
34,160
|
Bank branding and surcharge-free network revenues
|
19,197
|
16,096
|
Other revenues
|
2,858
|
2,448
|
Total ATM operating revenues
|
$125,687
|
$113,580
|
|
|
|
Total cost of revenues by segment:
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
2010
|
2009
|
|
(In thousands)
|
United States
|
$68,471
|
$70,408
|
United Kingdom
|
14,351
|
10,707
|
Mexico
|
5,250
|
2,928
|
Total cost of revenues
|
$88,072
|
$84,043
|
|
|
|
Breakout of cost of ATM operating revenues (exclusive of
depreciation, accretion, and amortization):
|
|
|
|
|
Three Months Ended March 31,
|
|
2010
|
2009
|
|
(In thousands)
|
Merchant commissions
|
$40,600
|
$37,905
|
Vault cash rental expense
|
9,345
|
8,153
|
Other costs of cash
|
11,726
|
11,599
|
Repairs and maintenance
|
8,925
|
9,589
|
Communications
|
3,782
|
3,783
|
Transaction processing
|
1,681
|
1,668
|
Stock-based compensation
|
199
|
191
|
Other expenses
|
9,621
|
9,341
|
Total cost of ATM operating revenues
|
$85,879
|
$82,229
|
|
|
|
Breakout of selling, general, and administrative
expenses:
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
2010
|
2009
|
|
(In thousands)
|
Employee costs
|
$6,105
|
$6,457
|
Stock-based compensation
|
1,260
|
867
|
Professional fees
|
1,784
|
1,328
|
Other
|
1,994
|
2,203
|
Total selling, general, and administrative expenses
|
$11,143
|
$10,855
|
SELECTED BALANCE SHEET DETAIL:
|
|
|
|
|
|
Long-term debt and capital lease
obligations:
|
|
|
|
|
|
|
March 31, 2010
|
December 31, 2009
|
|
(In thousands)
|
Series A and Series B senior subordinated notes, net of
discounts
|
$297,402
|
$297,242
|
Equipment financing lines of Mexico subsidiary
|
9,786
|
9,810
|
Capital lease obligations
|
96
|
235
|
Total long-term debt and capital lease obligations
|
$307,284
|
$307,287
|
|
|
|
Share count rollforward:
|
|
|
|
|
|
|
|
|
Total shares outstanding as of December 31, 2009
|
40,900,532
|
|
Shares repurchased
|
(25,000)
|
|
Shares issued – restricted stock grants and stock option
exercises
|
873,915
|
|
Total shares outstanding as of March 31, 2010
|
41,749,447
|
|
|
|
|
|
|
|
SELECTED CASH FLOW DETAIL:
|
|
|
|
|
|
Selected cash flow statement amounts:
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
2010
|
2009
|
|
(In thousands)
|
Cash provided by operating activities
|
$9,186
|
$6,947
|
Cash used in investing activities
|
(8,605)
|
(4,976)
|
Cash (used in) provided by financing activities
|
(797)
|
4,017
|
Effect of exchange rate changes on cash
|
461
|
39
|
Net increase in cash and cash equivalents
|
$245
|
$6,027
|
Cash and cash equivalents at beginning of period
|
10,449
|
3,424
|
Cash and cash equivalents at end of period
|
$10,694
|
$9,451
|
Key Operating Metrics
|
For the Three Months Ended March 31, 2010 and
2009
|
(Unaudited)
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2010
|
2009
|
Average number of transacting ATMs:
|
|
|
|
United States: Company-owned
|
|
18,128
|
18,257
|
United States: Merchant-owned
|
|
9,920
|
10,145
|
United Kingdom
|
|
2,712
|
2,544
|
Mexico
|
|
2,745
|
2,094
|
Total average number of transacting ATMs
|
|
33,505
|
33,040
|
|
|
|
|
Total transactions (in thousands)
|
|
96,642
|
89,369
|
Total cash withdrawal transactions (in
thousands)
|
|
60,884
|
57,564
|
Monthly cash withdrawal transactions per ATM
|
|
606
|
581
|
|
|
|
|
Per ATM per month amounts:
|
|
|
|
ATM operating revenues
|
|
$1,250
|
$1,146
|
Cost of ATM operating revenues (1)
|
|
854
|
830
|
ATM operating gross profit (2)
|
|
$396
|
$316
|
|
|
|
|
ATM operating gross margin (1) (2)
|
|
31.7%
|
27.6%
|
|
|
|
|
Capital expenditures (in thousands)
|
|
$8,605
|
$4,976
|
Capital expenditures, net of noncontrolling interest (in
thousands)
|
|
$8,432
|
$4,901
|
|
|
|
|
|
|
|
|
(1) Amounts presented exclude the
effects of depreciation, accretion, and amortization expense, which
are presented separately in the Company's consolidated statements
of operations.
|
(2) ATM operating gross profit and
ATM operating gross margin are measures of profitability that uses
only the revenues and expenses that relate to operating ATMs in the
Company's portfolio. Revenues and expenses from ATM equipment sales
and other ATM-related services are not included.
|
Reconciliation of Net Income (Loss) Attributable to
Controlling Interest to EBITDA, Adjusted EBITDA, and
Adjusted Net Income
|
For the Three Months Ended March 31, 2010 and
2009
|
(Unaudited)
|
|
|
|
|
Three Months Ended March 31,
|
|
2010
|
2009
|
|
(In thousands, except share and
per share amounts)
|
Net income (loss) attributable to controlling
interests
|
$3,965
|
$(5,068)
|
Adjustments:
|
|
|
Interest expense, net
|
7,318
|
7,711
|
Amortization of deferred financing costs and bond
discounts
|
630
|
568
|
Income tax expense
|
1,439
|
1,017
|
Depreciation and accretion expense
|
10,222
|
9,639
|
Amortization expense
|
3,979
|
4,527
|
EBITDA
|
$27,553
|
$18,394
|
|
|
|
Add back:
|
|
|
Loss on disposal of assets (1)
|
377
|
2,108
|
Other expense (income)
|
341
|
(86)
|
Noncontrolling interests
|
(437)
|
(298)
|
Stock-based compensation expense
|
1,459
|
1,058
|
Other adjustments to cost of ATM operating revenues
(2)
|
—
|
183
|
Other adjustments to selling, general, and administrative
expenses (3)
|
—
|
1,186
|
Adjusted EBITDA
|
$29,293
|
$22,545
|
Less:
|
|
|
Interest expense, net
|
7,318
|
7,711
|
Depreciation and accretion expense
|
10,222
|
9,639
|
Income tax expense (at 35%)
|
4,114
|
1,818
|
Adjusted Net Income
|
$7,639
|
$3,377
|
|
|
|
Adjusted Net Income per share – basic and
diluted
|
$0.19
|
$0.09
|
|
|
|
Weighted average shares outstanding – basic
|
39,850,122
|
38,960,083
|
Weighted average shares outstanding – diluted
|
40,721,310
|
39,258,250
|
|
|
|
|
|
|
(1) Primarily comprised of losses on
the disposal of fixed assets that were incurred with the
deinstallation of ATMs during the periods. The increased
amount during the three months ended March 31, 2009 was primarily
the result of certain optimization efforts taken during that
period.
|
(2) For the three month period ended
March 31, 2009, Other adjustments to cost of ATM operating revenues
primarily consisted of costs associated with the continued
conversion of ATMs in the Company's portfolio over to its in-house
electronic funds transfer transaction processing platform and
development costs associated with the start-up of the Company's
in-house armored courier operation in the United Kingdom.
|
(3) For the three month period ended
March 31, 2009, Other adjustments to selling, general, and
administrative expenses primarily consisted of severance costs
associated with departure of the Company's former Chief Executive
Officer in March 2009.
|
Reconciliation of Free Cash Flow
|
For the Three Months Ended March 31, 2010 and
2009
|
(Unaudited)
|
|
|
|
|
Three Months Ended March 31,
|
|
2010
|
2009
|
|
(In thousands)
|
Cash provided by operating activities
|
$9,186
|
$6,947
|
Payments for capital expenditures (1)
|
8,605
|
4,976
|
Free cash flow
|
$581
|
$1,971
|
|
|
|
|
|
|
(1) Capital expenditures exclude acquisitions
and include payments made for exclusive license agreements, site
acquisition costs, and capital expenditures financed by direct
debt.
|
Reconciliation of Estimated Net Income to EBITDA,
Adjusted EBITDA, and Adjusted Net Income
|
For the Year Ending December 31, 2010
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
(In millions, except per share amounts)
|
Estimated Range
Full Year 2010
|
|
|
|
|
Net income
|
$21.6
|
-
|
$27.6
|
Adjustments:
|
|
|
|
Interest expense, net
|
29.5
|
-
|
29.5
|
Amortization of deferred financing costs and bond
discounts
|
2.6
|
-
|
2.6
|
Income tax expense
|
6.0
|
-
|
6.0
|
Depreciation and accretion expense
|
42.0
|
-
|
42.0
|
Amortization expense
|
15.0
|
-
|
14.0
|
EBITDA
|
$116.7
|
-
|
$121.7
|
|
|
|
|
Add back:
|
|
|
|
Noncontrolling interests
|
(3.2)
|
-
|
(3.2)
|
Stock-based compensation expense
|
6.5
|
-
|
6.5
|
Adjusted EBITDA
|
$120.0
|
-
|
$125.0
|
Less:
|
|
|
|
Interest expense, net
|
29.5
|
-
|
29.5
|
Depreciation and accretion expense
|
42.0
|
-
|
42.0
|
Income tax expense (at 35%)
|
17.2
|
-
|
18.4
|
Adjusted Net Income
|
$31.3
|
-
|
$35.1
|
|
|
|
|
Adjusted Net Income per diluted share
|
$0.75
|
-
|
$0.85
|
|
|
|
|
Weighted average shares outstanding – diluted
|
41.5
|
-
|
41.5
|
CONTACT: Cardtronics, Inc.
Investors:
Chris Brewster, Chief Financial Officer
832-308-4128
cbrewster@cardtronics.com
Media:
Joel Antonini, Vice President - Marketing
832-308-4131
joel.antonini@cardtronics.com
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