Cardtronics, Inc. (Nasdaq:CATM) (the "Company"), the world's
largest retail ATM owner, today announced its financial and
operational results for the quarter ended June 30, 2011.
Key financial and operational statistics in the second quarter
of 2011 compared to the second quarter of 2010 include:
- Consolidated revenues of $147.3 million, up by 11%
- Adjusted Net Income per diluted share of $0.34, up by 31% from
$0.26
- Gross margin of 33.2%, up from 32.5%
- Adjusted EBITDA of $37.9 million, up by 12%
- GAAP net income of $8.7 million, up by 6%
- GAAP net income per diluted share of $0.20, up from $0.19
- Continued improvements in several key operating metrics
(amounts presented exclude transactions from the Company's managed
services offerings):
- Total transactions increased by 16%
- Total cash withdrawal transactions per ATM increased by
13%
- Revenues per ATM increased by 5%
- Operating gross profit per ATM increased by 9%
Please refer to the "Disclosure of Non-GAAP Financial
Information" contained later in this release for definitions of
Adjusted EBITDA and Adjusted Net Income. 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.
"We had a busy second quarter, which was highlighted by strong
top-line revenue growth that resulted in very strong adjusted
earnings growth of over 30 percent. Our results continue to reflect
the strength of our business model and the successful execution of
multiple elements of our strategy," commented Steve Rathgaber,
chief executive officer. "In addition, we are very pleased to
announce that our acquisition of EDC's ATM business has been
completed effective July 25. The EDC acquisition is a natural
extension of our strategy, and with the addition of this business,
we've added some premier retail accounts and outstanding
employees."
RECENT HIGHLIGHTS
- The acquisition of EDC, which increased the number of ATMs
owned and operated by the Company by approximately 3,600 ATMs, is
expected to be accretive to Adjusted Net Income per diluted share
starting immediately and will become more accretive in future
periods, as synergies are fully realized.
- The acquisition of LocatorSearch, a leading provider of
location search technology deployed by financial institutions to
help customers find the nearest branch office, ATM, surcharge-free
ATM network or any specific service.
- Net new installations, for the quarter, of over 600
Company-owned ATMs.
- Net addition of bank brands to over 280 existing ATMs in the
Company's portfolio, through growth with existing relationships and
new relationships with financial institutions, including 189 ATMs
in the Washington, D.C. area featuring the USAA brand.
- Initiation of our first Mexico bank branding arrangement with
Banorte, one of Mexico's leading national banks, with almost 400
ATMs branded as of the end of the second quarter, and another 800
units expected to be branded by the end of third quarter.
- Execution of a contract to operate an additional 70 ATMs at
high-traffic BP locations in the U.K.
SECOND QUARTER RESULTS
For the second quarter of 2011, consolidated revenues totaled
$147.3 million, representing an 11% increase (9% on a constant
currency basis) from the $132.9 million in consolidated revenues
generated during the second quarter of 2010. The year-over-year
increase is attributable to a combination of increases in
transactions per ATM in the Company's domestic and United
Kingdom operations; increased revenues from managed services
agreements; higher equipment sales; unit growth expansion; growth
in Allpoint, the Company's leading surcharge-free network; and
favorable changes in foreign currency exchange rates.
Adjusted EBITDA for the second quarter of 2011 totaled $37.9
million, compared to $33.9 million during the second quarter of
2010, and Adjusted Net Income totaled $14.4 million ($0.34 per
diluted share) compared to $10.9 million ($0.26 per diluted share)
during the second quarter of 2010. The increases in Adjusted EBITDA
and Adjusted Net Income per share were driven by our revenue growth
and gross margin expansion from 32.5% to 33.2%. The year-over-year
improvement in Adjusted Net Income per share was also partially
attributable to lower interest expense, which was $2.6 million
lower than a year ago, resulting from the refinancing of the
Company's debt in the third quarter of 2010 and the subsequent use
of free cash flows to repay debt. 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 second quarter of 2011 totaled $8.7
million, compared to $8.2 million during the same quarter in 2010.
The year-over-year increase was attributable to the factors
identified in the discussion of Adjusted EBITDA and Adjusted Net
Income above, partially offset by higher stock-based compensation,
non-recurring acquisition-related costs and higher income tax
expense.
SIX MONTHS RESULTS
For the six months ended June 30, 2011, consolidated revenues
totaled $285.3 million, representing a 9% increase (8% on a
constant currency basis) from the $260.7 million in consolidated
revenues generated during the same period in 2010. As was the case
with the Company's quarterly results, the year-over-year increase
was attributable to a combination of increases in transactions per
ATM, increased revenues from managed services agreements, higher
equipment sales, unit growth expansion, growth in Allpoint, and
favorable changes in foreign currency exchange rates.
Adjusted EBITDA totaled $71.4 million for the six months ended
June 30, 2011, representing a 13% increase over the $63.2 million
in Adjusted EBITDA for the same period in 2010, and Adjusted Net
Income totaled $26.0 million ($0.61 per diluted share) for the
first six months of 2011, up 33% on a per share basis from $18.8
million ($0.46 per diluted share) during the same period in 2010.
The increases in both Adjusted EBITDA and Adjusted Net Income were
primarily due to the same factors noted above for the Company's
quarterly results.
GAAP Net Income for the six months ended June 30, 2011 totaled
$15.2 million, compared to $12.2 million during the same period in
2010.
2011 GUIDANCE
The Company is updating the financial guidance it previously
issued regarding its anticipated full-year 2011 results, and now
expects the following, which includes expected results from the EDC
acquisition from the date of closing through the end of the
year:
- Revenues of $598 million to $605 million;
- Overall gross margins of approximately 32.7% to 33%;
- Adjusted EBITDA of $150 million to $153 million;
- Depreciation and accretion expense of approximately $47
million; net of noncontrolling interests
- Cash interest expense of $20 million; net of noncontrolling
interests
- Adjusted Net Income of $1.26 to $1.31 per diluted share, based
on approximately 42.8 million weighted average diluted shares
outstanding; and
- Capital expenditures of approximately $64 million, net of
noncontrolling interests.
This Adjusted EBITDA and Adjusted Net Income guidance excludes
the impact of $9.1 million of anticipated stock-based compensation
expense and $17.8 million of expected intangible asset amortization
expense, both on a pre-tax basis. Additionally, this guidance is
based on average foreign currency exchange rates during the July to
December period of $1.60 U.S. to £1.00 U.K. and $12.00 Mexican
pesos to $1.00 U.S. Finally, the guidance assumes that interest
rates during the July to December period remain relatively
consistent with what the Company has experienced during the first
six months of the year.
For reconciliations of Adjusted EBITDA and Adjusted Net Income
to comparable GAAP measures, please refer to the supplemental
schedules at the end of this release.
LIQUIDITY AND BALANCE SHEET
On July 25, concurrent with the closing of the EDC acquisition,
the Company expanded the borrowing capacity under its existing
revolving credit facility from $175.0 million to $250.0 million and
extended the term of the facility by one year through July 15,
2016. In addition, the amended credit facility can be extended to
up to $325.0 million under certain conditions. The amendment also
modifies certain pricing terms and restrictive covenants, the terms
of which are generally more favorable for the Company.
As a result of the completion of the EDC acquisition and the
expanded credit facility, the Company had $171.7 million in
outstanding borrowings as of July 25, 2011, with $74.0 million in
committed and available credit.
As of the end of the second quarter, the Company's outstanding
borrowings under its credit facility reflect the payment of $16.2
million to one of its primary vault cash suppliers for losses
sustained by the supplier as a result of the misappropriation of
this amount by one of the Company's armored carriers in early 2010.
A corresponding receivable is reflected in the Company's noncurrent
assets, and the Company expects to recover this entire amount from
its insurance coverage.
DISCLOSURE OF NON-GAAP FINANCIAL
INFORMATION
Adjusted EBITDA, Adjusted Net Income, Free Cash Flow, and
amounts provided 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 ("GAAP") 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. Adjusted Net
Income represents net income computed in accordance with GAAP,
before amortization expense, loss on disposal of assets,
noncontrolling interests, stock-based compensation expense and
certain other expense (income). Adjusted Net Income per diluted
share is calculated by dividing Adjusted Net Income by average
weighted diluted shares outstanding calculated in accordance with
GAAP. Adjusted EBITDA also does not reflect our obligations for the
payment of income taxes, interest expense or other obligations such
as capital expenditures. Free Cash Flow is defined as cash provided
by operating activities less payments for capital expenditures,
including those financed through direct debt. The measure of Free
Cash Flow does not take into consideration certain other
non-discretionary cash requirements such as, for example, mandatory
principal payments on portions of the Company's long-term debt.
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 measures prepared in accordance with GAAP.
Reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP financial measures are presented in
tabular form at the end of this press release.
CONFERENCE CALL INFORMATION
The Company will host a conference call today, Thursday, August
4, 2011, at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) to
discuss its financial results for the quarter ended June 30, 2011.
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 Second 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
www.cardtronics.com.
A digital replay of the conference call will be available
through Thursday, August 18, 2011, and can be accessed by calling
(855) 859-2056 or (404) 537-3406 and entering 85829448 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 September 3, 2011.
ABOUT CARDTRONICS
Cardtronics (Nasdaq:CATM) is the world's largest retail ATM
owner. The Company operates over 37,100 ATMs in the United States,
the United Kingdom, Mexico, and the Caribbean, primarily with
well-known retailers such as 7-Eleven, Chevron, Costco,
CVS/pharmacy, ExxonMobil, Hess, Rite Aid, Safeway, Target, and
Walgreens. Cardtronics also assists in the operation of
approximately 4,300 ATMs under managed services contracts with
customers such as Kroger, Travelex, and Circle K. In addition
to its retail ATM operations, the Company provides services to
large and small banks, credit unions, and prepaid card issuers,
allowing them to place their brands on 14,900 Cardtronics' ATMs and
providing surcharge-free access through Cardtronics' Allpoint
Network. www.cardtronics.com.
The Cardtronics logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=991
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. The forward-looking
statements contained in this release 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, including the
expectation of operational and financial results from the
contribution of the EDC business. These 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. These 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 respond to recent and future
regulatory changes, including possible effects from the Dodd-Frank
Wall Street Reform and Consumer Protection Act which could result
in different behavior by consumers, retailers and banks;
- the Company's ability to respond to potential reductions in the
amount of interchange fees that it receives from global and
regional debit networks for transactions conducted on its
ATMs;
- the Company's ability to provide new ATM solutions to retailers
and financial institutions;
- the Company's ATM vault cash rental needs, including potential
liquidity issues with its vault cash providers;
- the continued 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;
- the Company's ability to manage concentration risks with key
customers, vendors and service providers;
- changes in interest rates and foreign currency rates; and
- the additional risks the Company is exposed to in its U.K.
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.
Consolidated Statements
of Operations For the Three and Six Months Ended
June 30, 2011 and 2010 (Unaudited)
|
|
Three
Months Ended June 30, |
Six Months
Ended June 30, |
|
2011 |
2010 |
2011 |
2010 |
|
(In thousands, except share and
per share information) |
Revenues: |
|
|
|
|
ATM operating revenues |
$ 141,429 |
$ 130,560 |
$ 274,528 |
$ 256,247 |
ATM product sales and other revenues |
5,865 |
2,388 |
10,807 |
4,477 |
Total revenues |
147,294 |
132,948 |
285,335 |
260,724 |
Cost of revenues: |
|
|
|
|
Cost of ATM operating revenues (exclusive of
depreciation, accretion, and amortization shown separately
below) |
93,117 |
87,414 |
181,903 |
173,293 |
Cost of ATM product sales and other
revenues |
5,214 |
2,314 |
9,561 |
4,507 |
Total cost of revenues |
98,331 |
89,728 |
191,464 |
177,800 |
Gross profit |
48,963 |
43,220 |
93,871 |
82,924 |
Operating expenses: |
|
|
|
|
Selling, general, and administrative
expenses |
13,268 |
10,272 |
26,272 |
21,415 |
Depreciation and accretion expense |
11,437 |
10,264 |
22,807 |
20,486 |
Amortization expense |
3,667 |
3,765 |
7,294 |
7,744 |
Loss on disposal of assets |
86 |
1,095 |
163 |
1,472 |
Total operating expenses |
28,458 |
25,396 |
56,536 |
51,117 |
Income from operations |
20,505 |
17,824 |
37,335 |
31,807 |
Other expense: |
|
|
|
|
Interest expense, net |
4,754 |
7,314 |
9,567 |
14,632 |
Amortization of deferred financing costs and
bond discounts |
213 |
642 |
424 |
1,272 |
Other expense (income) |
139 |
(332) |
(60) |
34 |
Total other expense |
5,106 |
7,624 |
9,931 |
15,938 |
Income before income taxes |
15,399 |
10,200 |
27,404 |
15,869 |
Income tax expense |
6,657 |
1,952 |
12,104 |
3,391 |
Net income |
8,742 |
8,248 |
15,300 |
12,478 |
Net income attributable to noncontrolling
interests |
27 |
45 |
105 |
310 |
Net income attributable to controlling
interests and available to common stockholders |
$ 8,715 |
$ 8,203 |
$ 15,195 |
$ 12,168 |
|
|
|
|
|
Net income per common share – basic |
$ 0.20 |
$ 0.20 |
$ 0.35 |
$ 0.29 |
Net income per common share – diluted |
$ 0.20 |
$ 0.19 |
$ 0.35 |
$ 0.29 |
|
|
|
|
|
Weighted average shares outstanding –
basic |
41,910,944 |
40,017,215 |
41,712,659 |
39,910,928 |
Weighted average shares outstanding –
diluted |
42,659,587 |
41,092,258 |
42,476,101 |
40,894,506 |
Condensed Consolidated
Balance Sheets As of June 30, 2011 and December
31, 2010 |
|
June 30,
2011 |
December 31,
2010 |
|
(Unaudited) |
|
|
(In thousands) |
Assets |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ 3,998 |
$ 3,189 |
Accounts and notes receivable, net |
26,787 |
20,270 |
Inventory |
1,770 |
1,795 |
Restricted cash, short-term |
3,396 |
4,466 |
Current portion of deferred tax asset,
net |
13,780 |
15,017 |
Prepaid expenses, deferred costs, and
other current assets |
13,821 |
10,222 |
Total current assets |
63,552 |
54,959 |
Property and equipment, net |
162,209 |
156,465 |
Intangible assets, net |
69,596 |
74,799 |
Goodwill |
164,974 |
164,558 |
Deferred tax asset, net |
738 |
715 |
Prepaid expenses, deferred costs, and other
assets |
20,338 |
3,819 |
Total assets |
$ 481,407 |
$ 455,315 |
|
|
|
Liabilities and Stockholders'
Equity |
|
|
Current liabilities: |
|
|
Current portion of long-term debt and
notes payable |
$ 3,326 |
$ 3,076 |
Current portion of other long-term
liabilities |
24,755 |
24,493 |
Accounts payable and other accrued and
current liabilities |
67,592 |
71,425 |
Total current liabilities |
95,673 |
98,994 |
Long-term liabilities: |
|
|
Long-term debt |
244,399 |
251,757 |
Deferred tax liability, net |
16,276 |
10,268 |
Asset retirement obligations |
29,052 |
26,657 |
Other long-term liabilities |
32,899 |
23,385 |
Total liabilities |
418,299 |
411,061 |
Stockholders' equity |
63,108 |
44,254 |
Total liabilities and stockholders'
equity |
$ 481,407 |
$ 455,315 |
|
|
|
SELECTED INCOME STATEMENT DETAIL:
Total revenues by segment:
|
Three
Months Ended June 30, |
Six Months
Ended June 30, |
|
2011 |
2010 |
2011 |
2010 |
|
(In thousands) |
United States |
$ 115,693 |
$ 105,651 |
$ 226,029 |
$ 207,560 |
United Kingdom |
25,011 |
20,343 |
46,069 |
38,964 |
Mexico |
6,590 |
6,954 |
13,237 |
14,200 |
Total revenues |
$ 147,294 |
$ 132,948 |
$ 285,335 |
$ 260,724 |
|
|
|
|
|
Breakout of ATM operating revenues:
|
Three Months
Ended June 30, |
Six Months
Ended June 30, |
|
2011 |
2010 |
2011 |
2010 |
|
(In thousands) |
Surcharge revenues |
$ 69,531 |
$ 68,370 |
$ 135,361 |
$ 134,376 |
Interchange revenues |
44,303 |
39,256 |
84,712 |
76,837 |
Bank branding and surcharge-free network
revenues |
21,872 |
19,861 |
43,553 |
38,993 |
Managed services revenues |
2,302 |
576 |
4,250 |
1,045 |
Other revenues |
3,421 |
2,497 |
6,652 |
4,996 |
Total ATM operating revenues |
$ 141,429 |
$ 130,560 |
$ 274,528 |
$ 256,247 |
|
|
|
|
|
Total cost of revenues by segment:
|
Three
Months Ended June 30, |
Six Months
Ended June 30, |
|
2011 |
2010 |
2011 |
2010 |
|
(In thousands) |
United States |
$ 74,459 |
$ 69,270 |
$ 146,200 |
$ 137,741 |
United Kingdom |
18,852 |
14,901 |
35,291 |
29,252 |
Mexico |
5,020 |
5,557 |
9,973 |
10,807 |
Total cost of revenues |
$ 98,331 |
$ 89,728 |
$ 191,464 |
$ 177,800 |
|
|
|
|
|
Breakout of cost of ATM operating revenues (exclusive of
depreciation, accretion, and amortization):
|
Three
Months Ended June 30, |
Six Months
Ended June 30, |
|
2011 |
2010 |
2011 |
2010 |
|
(In thousands) |
Merchant commissions |
$ 43,760 |
$ 42,520 |
$ 84,795 |
$ 83,120 |
Vault cash rental expense |
9,563 |
9,536 |
18,813 |
18,881 |
Other costs of cash |
12,713 |
11,283 |
24,968 |
23,009 |
Repairs and maintenance |
9,359 |
8,968 |
18,777 |
17,893 |
Communications |
4,201 |
3,820 |
8,109 |
7,602 |
Transaction processing |
1,051 |
1,438 |
2,005 |
3,119 |
Stock-based compensation |
253 |
169 |
518 |
368 |
Other expenses |
12,217 |
9,680 |
23,918 |
19,301 |
Total cost of ATM operating revenues |
$ 93,117 |
$ 87,414 |
$ 181,903 |
$ 173,293 |
|
|
|
|
|
Breakout of selling, general, and administrative
expenses:
|
Three
Months Ended June 30, |
Six Months
Ended June 30, |
|
2011 |
2010 |
2011 |
2010 |
|
(In thousands) |
Employee costs |
$ 6,424 |
$ 5,899 |
$ 13,325 |
$ 12,004 |
Stock-based compensation |
2,140 |
1,268 |
4,105 |
2,528 |
Professional fees |
1,479 |
1,082 |
3,026 |
2,866 |
Other |
3,225 |
2,023 |
5,816 |
4,017 |
Total selling, general, and
administrative expenses |
$ 13,268 |
$ 10,272 |
$ 26,272 |
$ 21,415 |
|
Depreciation and accretion expense by
segment:
|
Three
Months Ended June 30, |
Six Months
Ended June 30, |
|
2011 |
2010 |
2011 |
2010 |
|
(In thousands) |
United States |
$ 6,548 |
$ 6,709 |
$ 13,554 |
$ 13,330 |
United Kingdom |
4,086 |
2,943 |
7,677 |
5,886 |
Mexico |
803 |
612 |
1,576 |
1,270 |
Total depreciation and accretion
expense |
$ 11,437 |
$ 10,264 |
$ 22,807 |
$ 20,486 |
|
SELECTED BALANCE SHEET DETAIL:
Long-term debt:
|
June 30,
2011 |
December 31,
2010 |
|
(In thousands) |
8.25% senior subordinated notes |
$ 200,000 |
$ 200,000 |
Revolving credit facility |
40,100 |
46,200 |
Equipment financing notes |
7,625 |
8,633 |
Total long-term debt |
$ 247,725 |
$ 254,833 |
|
Share count rollforward:
Total shares outstanding as of December 31,
2010 |
42,833,342 |
Shares repurchased |
(145,251) |
Shares issued – restricted stock grants and
stock options exercised |
725,735 |
Shares forfeited – restricted stock |
(12,500) |
Total shares outstanding as of June
30, 2011 |
43,401,326 |
|
SELECTED CASH FLOW DETAIL:
Selected cash flow statement amounts:
|
Three
Months Ended June 30, |
Six Months
Ended June 30, |
|
2011 |
2010 |
2011 |
2010 |
|
(In thousands) |
Cash provided by operating activities |
$ 16,084 |
$ 43,415 |
$ 31,039 |
$ 52,601 |
Cash used in investing activities |
(10,348) |
(12,407) |
(25,397) |
(21,012) |
Cash used in financing activities |
(5,520) |
(1,569) |
(4,671) |
(2,366) |
Effect of exchange rate changes on cash |
98 |
(44) |
(162) |
417 |
Net increase in cash and cash
equivalents |
$ 314 |
$ 29,395 |
$ 809 |
$ 29,640 |
Cash and cash equivalents at beginning of
period |
3,684 |
10,694 |
3,189 |
10,449 |
Cash and cash equivalents at end of
period |
$ 3,998 |
$ 40,089 |
$ 3,998 |
$ 40,089 |
|
|
|
|
|
Key Operating
Metrics For the Three and Six Months Ended June
30, 2011 and 2010 (Unaudited)
|
|
Three
Months Ended June 30, |
Six Months
Ended June 30, |
|
2011 |
2010 |
2011 |
2010 |
Average number of transacting
ATMs: |
|
|
|
|
United States: Company-owned |
19,063 |
18,257 |
18,973 |
18,194 |
United Kingdom |
3,200 |
2,795 |
3,109 |
2,754 |
Mexico |
2,892 |
2,881 |
2,906 |
2,803 |
Subtotal |
25,155 |
23,933 |
24,988 |
23,751 |
United States: Merchant-owned |
8,215 |
8,673 |
8,260 |
8,750 |
Average number of transacting ATMs: ATM
operations |
33,370 |
32,606 |
33,248 |
32,501 |
|
|
|
|
|
United States: Managed services (1) |
4,114 |
2,988 |
4,015 |
2,884 |
United Kingdom: Managed services |
21 |
— |
15 |
— |
Average number of transacting ATMs:
Managed services |
4,135 |
2,988 |
4,030 |
2,884 |
|
|
|
|
|
Total average number of transacting
ATMs |
37,505 |
35,594 |
37,278 |
35,385 |
|
|
|
|
|
Total transactions (in
thousands): |
|
|
|
|
ATM operations |
120,861 |
103,920 |
229,799 |
199,522 |
Managed services |
6,082 |
3,993 |
11,530 |
7,462 |
Total transactions |
126,943 |
107,913 |
241,329 |
206,984 |
|
|
|
|
|
Total cash withdrawal transactions
(in thousands): |
|
|
|
|
ATM operations |
74,341 |
64,520 |
140,965 |
124,650 |
Managed services |
4,078 |
3,099 |
7,809 |
5,860 |
Total cash withdrawal transactions |
78,419 |
67,619 |
148,774 |
130,510 |
|
|
|
|
|
Per ATM per month amounts (excludes
managed services): |
|
|
|
|
Cash withdrawal transactions |
743 |
660 |
707 |
639 |
|
|
|
|
|
ATM operating revenues |
$ 1,390 |
$ 1,329 |
$ 1,355 |
$ 1,309 |
Cost of ATM operating revenues (2) |
912 |
890 |
895 |
885 |
ATM operating gross profit (2)
(3) |
$ 478 |
$ 439 |
$ 460 |
$ 424 |
|
|
|
|
|
ATM operating gross margin (2) (3) |
34.4% |
33.0% |
33.9% |
32.4% |
|
|
|
|
|
Capital expenditures (in thousands) |
$ 10,348 |
$ 12,949 |
$ 25,397 |
$ 21,554 |
Capital expenditures, net of noncontrolling
interests (in thousands) |
$ 10,306 |
$ 11,903 |
$ 25,354 |
$ 20,335 |
___________________
(1) Includes 2,498 and 2,545
ATMs for the three months ended June 30, 2011 and 2010,
respectively, and 2,502 and 2,524 ATMs for the six months ended
June 30, 2011 and 2010, respectively, for which the Company only
provided EFT transaction processing services.
(2) Amounts presented
exclude the effect of depreciation, accretion, and amortization
expense, which is presented separately in the Company's
consolidated statements of operations.
(3) ATM operating gross profit and
ATM operating gross margin are measures of profitability that are
calculated based on only the revenues and expenses that relate to
operating ATMs in the Company's portfolio. Revenues and expenses
relating to managed services and ATM equipment sales and other
ATM-related services are not included.
Reconciliation of Net
Income Attributable to Controlling Interests to Adjusted EBITDA and
Adjusted Net Income For the Three and Six Months
Ended June 30, 2011 and 2010
(Unaudited) |
|
Three Months
Ended June 30, |
Six Months
Ended June 30, |
|
2011 |
2010 |
2011 |
2010 |
|
(In thousands, except share and
per share amounts) |
Net income attributable to
controlling interests |
$ 8,715 |
$ 8,203 |
$ 15,195 |
$ 12,168 |
Adjustments: |
|
|
|
|
Interest expense, net |
4,754 |
7,314 |
9,567 |
14,632 |
Amortization of deferred financing costs
and bond discounts |
213 |
642 |
424 |
1,272 |
Income tax expense |
6,657 |
1,952 |
12,104 |
3,391 |
Depreciation and accretion expense |
11,437 |
10,264 |
22,807 |
20,486 |
Amortization expense |
3,667 |
3,765 |
7,294 |
7,744 |
EBITDA |
$ 35,443 |
$ 32,140 |
$ 67,391 |
$ 59,693 |
|
|
|
|
|
Add back: |
|
|
|
|
Loss on disposal of assets (1) |
86 |
1,095 |
163 |
1,472 |
Other expense (income) (2) |
102 |
(338) |
(107) |
3 |
Noncontrolling interests (3) |
(500) |
(435) |
(995) |
(872) |
Stock-based compensation expense (4) |
2,384 |
1,427 |
4,605 |
2,876 |
Acquisition-related costs |
343 |
— |
343 |
— |
Adjusted EBITDA |
$ 37,858 |
$ 33,889 |
$ 71,400 |
$ 63,172 |
Less: |
|
|
|
|
Interest expense, net (4) |
4,657 |
7,191 |
9,365 |
14,388 |
Depreciation and accretion expense
(4) |
11,043 |
9,964 |
22,034 |
19,864 |
Income tax expense (at 35%) (5) |
7,755 |
5,857 |
14,000 |
10,122 |
Adjusted Net Income |
$ 14,403 |
$ 10,877 |
$ 26,001 |
$ 18,798 |
|
|
|
|
|
Adjusted Net Income per
share |
$ 0.34 |
$ 0.27 |
$ 0.62 |
$ 0.47 |
Adjusted Net Income per diluted
share |
$ 0.34 |
$ 0.26 |
$ 0.61 |
$ 0.46 |
|
|
|
|
|
Weighted average shares outstanding –
basic |
41,910,944 |
40,017,215 |
41,712,659 |
39,910,928 |
Weighted average shares outstanding –
diluted |
42,659,587 |
41,092,258 |
42,476,101 |
40,894,506 |
____________
(1) Primarily comprised of
losses on the disposal of fixed assets that were incurred with the
deinstallation of ATMs during the periods.
(2) Amounts exclude
unrealized and realized (gains) losses related to derivatives not
designated as hedging instruments.
(3) Noncontrolling interests
adjustment made such that Adjusted EBITDA includes only the
Company's 51% ownership interest in the Adjusted EBITDA of its
Mexico subsidiary.
(4) Amounts exclude 49% of
the expenses incurred by the Company's Mexico subsidiary as such
amounts are allocable to the noncontrolling interest
shareholders.
(5) 35% represents the
Company's estimated long-term, cross-jurisdictional effective tax
rate.
Reconciliation of Free
Cash Flow For the Three and Six Months Ended June
30, 2011 and 2010 (Unaudited)
|
|
Three Months
Ended June 30, |
Six Months
Ended June 30, |
|
2011 |
2010 |
2011 |
2010 |
|
(In thousands) |
Cash provided by operating activities |
$ 16,084 |
$ 43,415 |
$ 31,039 |
$ 52,601 |
Payments for capital expenditures: |
|
|
|
|
Cash used in investing activities |
(10,348) |
(12,407) |
(25,397) |
(21,012) |
Fixed assets financed by direct debt |
— |
(542) |
— |
(542) |
Total payments for capital
expenditures |
(10,348) |
(12,949) |
(25,397) |
(21,554) |
Free cash flow |
$ 5,736 |
$ 30,466 |
$ 5,642 |
$ 31,047 |
|
Reconciliation of
Estimated Net Income to EBITDA, Adjusted EBITDA, and Adjusted Net
Income For the Year Ending December 31,
2011 (Unaudited)
|
|
Estimated
Range Full Year 2011 |
|
(In millions) |
Net income |
$ 31.3 |
-- |
$ 33.1 |
Adjustments: |
|
|
|
Interest expense, net |
20.4 |
-- |
20.4 |
Amortization of deferred financing
costs |
0.9 |
-- |
0.9 |
Income tax expense |
23.5 |
-- |
24.7 |
Depreciation and accretion
expense |
48.5 |
-- |
48.5 |
Amortization expense |
17.8 |
-- |
17.8 |
EBITDA |
$ 142.4 |
-- |
$ 145.4 |
|
|
|
|
Add back: |
|
|
|
Noncontrolling interests |
(1.9) |
-- |
(1.9) |
Loss on disposal of assets |
0.4 |
-- |
0.4 |
Stock-based compensation
expense |
9.1 |
-- |
9.1 |
Adjusted EBITDA |
$ 150.0 |
-- |
$ 153.0 |
Less: |
|
|
|
Interest expense, net (1) |
20.0 |
-- |
20.0 |
Depreciation and accretion expense
(1) |
47.0 |
-- |
47.0 |
Income tax expense (at 35%)
(2) |
29.0 |
-- |
30.1 |
Adjusted Net Income |
$ 54.0 |
-- |
$ 55.9 |
|
|
|
|
Adjusted Net Income per diluted
share |
$ 1.26 |
-- |
$ 1.31 |
|
|
|
|
Weighted average shares outstanding –
diluted |
42.8 |
-- |
42.8 |
__________________
(1) Amounts exclude 49% of
the expenses to be incurred by the Company's Mexico subsidiary as
such amounts are allocable to the noncontrolling interest
shareholders.
(2) 35% represents the
Company's estimated long-term, cross-jurisdictional effective tax
rate.
Cardtronics and Allpoint are registered
trademarks of Cardtronics, Inc.
All other trademarks are the property of their
respective owners.
CONTACT: Cardtronics - Media
Nick Pappathopoulos
Director - Public Relations
832-308-4396
npappathopoulos@cardtronics.com
Cardtronics - Investors
Chris Brewster
Chief Financial Officer
832-308-4128
cbrewster@cardtronics.com
Cardtronics (NASDAQ:CATM)
Historical Stock Chart
From Jun 2024 to Jul 2024
Cardtronics (NASDAQ:CATM)
Historical Stock Chart
From Jul 2023 to Jul 2024