Cardtronics, Inc. (Nasdaq:CATM) (the "Company"), the world's
largest retail ATM owner, today announced its financial and
operational results for the quarter and year ended December 31,
2011.
Key financial and operational statistics in the fourth quarter
of 2011 as compared to the fourth quarter of 2010 include:
- Consolidated revenues of $174.2 million, up by 29% -- Organic
growth for the quarter of 13% -- Growth from acquisitions of
16%
- Adjusted EBITDA of $41.9 million, up by 28%
- Adjusted Net Income per diluted share of $0.36, up by 38% from
$0.26
- GAAP net income of $8.2 million or $0.18 per diluted share,
compared to $8.0 million or $0.19 per diluted share in the prior
year. The current quarter includes the effect of $3.4 million in
acquisition-related costs.
Effects of foreign currency exchange rate movements had an
insignificant impact on comparisons of reported revenues, Adjusted
EBITDA and Adjusted Net Income per diluted share during the
quarter.
The results of operations include the performance of Access to
Money and Mr. Cash since November 1, 2011 and October 28, 2011,
respectively, which is the date that each acquisition closed.
Please refer to the "Disclosure of Non-GAAP Financial
Information" contained later in this release for definitions of
Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income per
diluted share and Free Cash Flow. 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.
"Our quarterly results are highlighted by continued strong
revenue growth, which was up 29% including over 13% organic growth
in the quarter and positive contributions from the two acquisitions
completed during the quarter," commented Steve Rathgaber, chief
executive officer. "Our revenue growth in the quarter fueled
impressive growth in earnings as well, as our adjusted net income
per share for the quarter was up 38%. With the addition of
significant new business in the last quarter and early in 2012, we
believe that we are well-positioned to continue generating solid
top- and bottom-line growth in 2012 and beyond."
RECENT HIGHLIGHTS
- The completion of two acquisitions during the fourth quarter,
Access to Money and Mr. Cash. With the acquisition of Mr. Cash, the
Company establishes Canadian operations.
- The announcement of an exclusive ATM placement agreement with
Valero Retail Holdings to place over 950 brand-able ATMs in
Valero's entire U.S. portfolio of company-operated convenience
stores in the first half of 2012, with expansion rights for future
Valero stores.
- A contract extension with an existing merchant with
approximately 300 ATMs across the United States.
- Execution of new ATM placement agreements for over 200 new
locations with two regional convenience store chains.
- A net increase of 159 bank-branded locations during the fourth
quarter under existing contracts.
- The execution of an agreement with a new vault cash provider,
bringing the total number of financial institutions from whom we
receive vault cash supply to seven.
- The announcement of organizational changes for the sales and
relationship management groups, with its leadership assumed by Todd
Clark, an experienced sales and client relations manager that
joined the Company in January 2012.
- The acquisition of an ATM service and installation business in
the U.K., further expanding our in-house ATM operations in that
market.
- The installation of approximately 300 new Company-owned ATM
locations with existing merchants in the United States in the
fourth quarter.
FOURTH QUARTER RESULTS
For the fourth quarter of 2011, consolidated revenues totaled
$174.2 million, representing a 29% increase from the $134.7 million
in consolidated revenues generated during the fourth quarter of
2010. Of the 29% year-over-year increase, 16% was attributable to
the results of acquired entities during the second half of 2011. Of
the remaining 13% organic revenue increase, 8% was attributable to
a combination of the following: (1) increased transactions per ATM
in the Company's domestic and United Kingdom operations; (2) unit
growth expansion; (3) increased revenues from managed services
agreements; (4) increased bank branding revenues from financial
institution partners; and (5) growth in Allpoint, America's largest
surcharge-free network. Finally, 5% of the year-over-year increase
in consolidated revenues was attributable to higher equipment
sales.
Adjusted EBITDA for the fourth quarter of 2011 totaled $41.9
million, a 28% increase compared to $32.8 million during the fourth
quarter of 2010, and Adjusted Net Income totaled $15.6 million
($0.36 per diluted share) compared to $11.0 million ($0.26 per
diluted share) during the fourth quarter of 2010, or a 38%
increase. As with the increase in total revenues, the increases in
Adjusted EBITDA and Adjusted Net Income per diluted share were
positively affected by the incremental operations of ATMs acquired
during the second half of 2011, as well as the organic revenue
growth. 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 fourth quarter of 2011 totaled $8.2
million, compared to $8.0 million during the same quarter in 2010.
The GAAP Net Income for the fourth quarter of 2011 was only
slightly higher than the comparable quarter in the prior year due
to the inclusion of $3.4 million in non-recurring
acquisition-related costs, higher intangible asset amortization
associated with the Company's recent acquisitions, higher
stock-based compensation and a higher effective tax rate compared
to the prior year, partially offset by the factors identified in
the discussion of the increase in Adjusted EBITDA and Adjusted Net
Income above.
FULL-YEAR RESULTS
For the year ended December 31, 2011, consolidated revenues
totaled $624.6 million, representing a 17% increase from the $532.1
million in consolidated revenues generated during the year ended
December 31, 2010. Of the 17% increase, 6% was attributable to the
acquisitions in the second half of 2011, 8% was attributable to
organic growth in ATM operating revenues, and 3% was attributable
to higher equipment sales. As was the case with the Company's
quarterly results, the year-over-year increase in ATM operating
revenues was attributable to a combination of increased
transactions per ATM, increased revenues from managed services
agreements, unit growth expansion, growth in Allpoint, and
increased bank branding revenues from financial institution
partners.
Adjusted EBITDA totaled $156.3 million for the year ended
December 31, 2011, representing a 19% increase over the $130.8
million in Adjusted EBITDA for 2010, and Adjusted Net Income
totaled $58.5 million ($1.37 per diluted share) for 2011, up 37% on
a per share basis from $41.2 million ($1.00 per diluted share)
during 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 year ended December 31, 2011 totaled
$70.2 million, compared to $41.0 million during 2010. As was the
case with the quarterly results, the results for the year ended
December 31, 2011 include the net impact of earnings contributions
from the acquired entities, mostly offset by non-recurring
acquisition-related costs. Excluding these effects, the improvement
in the Company's GAAP results was primarily driven by the same
factors outlined above with respect to Adjusted EBITDA and Adjusted
Net Income. The results for the year ended December 31, 2010
include $14.4 million in non-recurring expenses associated with the
Company's financing activities. In both 2011 and 2010, the Company
recorded net tax benefits of $13.2 million and $17.1 million,
respectively, as a result of certain tax reporting and structural
changes in 2011 and the release of the Company's valuation
allowances on its domestic deferred tax assets in 2010.
2012 GUIDANCE
Below is the Company's financial guidance for the year ending
December 31, 2012.
- Revenues of $735.0 million to $750.0 million;
- Overall gross margins of approximately 31.3% to 31.9%;
- Adjusted EBITDA of $178.0 million to $186.0 million;
- Depreciation and accretion expense of approximately $53.5
million to $55.5 million, net of noncontrolling interests;
- Cash interest expense of approximately $20.0 million to $21.5
million, net of noncontrolling interests;
- Adjusted Net Income of $1.55 to $1.61 per diluted share, based
on approximately 43.9 million weighted average diluted shares
outstanding; and
- Capital expenditures of approximately $70.0 million, net of
noncontrolling interests.
The Adjusted EBITDA and Adjusted Net Income guidance excludes
the impact of $10.5 million of anticipated stock-based compensation
expense and $23.3 million of expected intangible asset amortization
expense, both on a pre-tax basis. Additionally, this guidance is
based on average foreign currency exchange rates of $1.55 U.S. to
£1.00 U.K., $13.00 Mexican pesos to $1.00 U.S., and $1.00 Canadian
dollar to $1.00 U.S.
LIQUIDITY
The Company continues to maintain a very strong liquidity
position, with $82.0 million in available borrowing capacity under
its $250.0 million revolving credit facility as of December 31,
2011. In addition, the amended credit facility can be extended to
up to $325.0 million under certain conditions. The Company's
outstanding indebtedness as of December 31, 2011 consisted of
$200.0 million in senior subordinated notes due 2018, $166.0
million in borrowings under its revolving credit facility due 2016,
and $4.9 million in equipment financing notes associated with its
majority-owned Mexico subsidiary.
DISCLOSURE OF NON-GAAP FINANCIAL
INFORMATION
Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income per
diluted share and Free Cash Flow 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 EBITDA
does not reflect acquisition-related costs and our obligations for
the payment of income taxes, interest expense or other obligations
such as capital expenditures. 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)
and acquisition-related costs. Adjusted Net Income per diluted
share is calculated by dividing Adjusted Net Income by average
weighted diluted shares outstanding calculated in accordance with
GAAP. Free Cash Flow is defined as cash provided by operating
activities less payments for capital expenditures, including those
financed through direct debt but excluding acquisitions. 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.
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 the non-GAAP financial
measures used herein 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,
February 2, 2012, at 4:30 p.m. Central Time (5:30 p.m. Eastern
Time) to discuss its financial results for the quarter and the year
ended December 31, 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 Fourth 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, February 16, 2012, and can be accessed by calling
(855) 859-2056 or (404) 537-3406 and entering 43730173 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 March 2, 2012.
ABOUT CARDTRONICS
(Nasdaq:CATM)
Making ATM cash access convenient where people shop, work and
live their lives, Cardtronics is at the convergence of retailers,
financial institutions, prepaid card programs and the customers
they share. Cardtronics owns/operates approximately 52,900 retail
ATMs in U.S. and international locales. Whether Cardtronics is
driving foot traffic for America's most relevant retailers,
enhancing ATM brand presence for card issuers or expanding card
holders' surcharge-free cash access on the local, national or
global scene, Cardtronics is convenient access to cash, when and
where consumers need it. Cardtronics is where cash meets
commerce.
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 and Access to Money businesses. 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,
including a recent announcement by a major global network that will
result in lower fees earned by the Company on transactions
processed over this network;
- 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.
Additional information regarding known material 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
Twelve Months Ended December 31, 2011 and 2010 |
(Unaudited) |
|
|
|
|
|
|
Three Months
Ended |
Twelve Months
Ended |
|
December
31, |
December
31, |
|
2011 |
2010 |
2011 |
2010 |
|
(In thousands, except share and
per share information) |
Revenues: |
|
|
|
|
ATM operating revenues |
$165,055 |
$132,563 |
$597,219 |
$522,900 |
ATM product sales and other
revenues |
9,127 |
2,186 |
27,357 |
9,178 |
Total revenues |
174,182 |
134,749 |
624,576 |
532,078 |
Cost of revenues: |
|
|
|
|
Cost of ATM operating revenues (exclusive of
depreciation, accretion, and amortization shown separately
below) |
110,717 |
89,171 |
396,347 |
351,490 |
Cost of ATM product sales and other
revenues |
7,706 |
1,970 |
23,768 |
8,902 |
Total cost of revenues |
118,423 |
91,141 |
420,115 |
360,392 |
Gross profit |
55,759 |
43,608 |
204,461 |
171,686 |
Operating expenses: |
|
|
|
|
Selling, general, and administrative
expenses |
15,881 |
11,647 |
55,582 |
44,581 |
Acquisition-related expenses |
3,448 |
— |
4,747 |
— |
Depreciation and accretion expense |
12,958 |
11,373 |
47,962 |
42,724 |
Amortization expense |
5,674 |
3,904 |
17,914 |
15,471 |
Loss on disposal of assets |
701 |
807 |
981 |
2,647 |
Total operating expenses |
38,662 |
27,731 |
127,186 |
105,423 |
Income from operations |
17,097 |
15,877 |
77,275 |
66,263 |
Other expense: |
|
|
|
|
Interest expense, net |
5,306 |
4,933 |
20,116 |
26,629 |
Amortization of deferred financing costs and
bond discounts |
218 |
211 |
993 |
2,029 |
Write-off of deferred financing costs and
bond discounts |
— |
— |
— |
7,296 |
Redemption costs for early extinguishment of
debt |
— |
— |
— |
7,193 |
Other income |
(1,062) |
(705) |
(804) |
(878) |
Total other expense |
4,462 |
4,439 |
20,305 |
42,269 |
Income before income taxes |
12,635 |
11,438 |
56,970 |
23,994 |
Income tax expense (benefit) |
4,589 |
3,438 |
(13,176) |
(17,139) |
Net income |
8,046 |
8,000 |
70,146 |
41,133 |
Net (loss) income attributable to
noncontrolling interests |
(107) |
(28) |
(87) |
174 |
Net income attributable to controlling
interests and available to common stockholders |
$8,153 |
$8,028 |
$70,233 |
$40,959 |
|
|
|
|
|
Net income per common share –
basic |
$0.18 |
$0.19 |
$1.60 |
$0.98 |
Net income per common share –
diluted |
$0.18 |
$0.19 |
$1.58 |
$0.96 |
|
|
|
|
|
Weighted average shares outstanding –
basic |
42,794,563 |
41,023,404 |
42,201,491 |
40,347,194 |
Weighted average shares outstanding –
diluted |
43,352,237 |
41,822,811 |
42,886,780 |
41,059,381 |
|
Condensed Consolidated
Balance Sheets |
As of December 31, 2011
and 2010 |
|
|
|
|
December 31,
2011 |
December 31,
2010 |
|
(Unaudited) |
|
|
(In thousands) |
Assets |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$5,576 |
$3,189 |
Accounts and notes receivable,
net |
40,867 |
20,270 |
Inventory |
3,517 |
1,795 |
Restricted cash, short-term |
4,512 |
4,466 |
Current portion of deferred tax asset,
net |
26,902 |
15,017 |
Prepaid expenses, deferred costs, and
other current assets |
13,056 |
10,222 |
Total current assets |
94,430 |
54,959 |
Property and equipment, net |
191,331 |
156,465 |
Intangible assets, net |
111,603 |
74,799 |
Goodwill |
271,562 |
164,558 |
Deferred tax asset, net |
23,101 |
715 |
Prepaid expenses, deferred costs, and other
assets |
20,774 |
3,819 |
Total assets |
$712,801 |
$455,315 |
|
|
|
Liabilities and Stockholders'
Equity |
|
|
Current liabilities: |
|
|
Current portion of long-term debt and
notes payable |
$2,317 |
$3,076 |
Current portion of other long-term
liabilities |
25,101 |
24,493 |
Accounts payable and other accrued and
current liabilities |
112,212 |
71,425 |
Total current liabilities |
139,630 |
98,994 |
Long-term liabilities: |
|
|
Long-term debt |
368,632 |
251,757 |
Deferred tax liability, net |
— |
10,268 |
Asset retirement obligations |
34,517 |
26,657 |
Other long-term liabilities |
56,877 |
23,385 |
Total liabilities |
599,656 |
411,061 |
Stockholders' equity |
113,145 |
44,254 |
Total liabilities and stockholders'
equity |
$712,801 |
$455,315 |
|
|
|
|
|
|
SELECTED INCOME STATEMENT
DETAIL: |
|
|
|
|
|
|
|
|
|
Total revenues by
segment: |
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
Twelve Months
Ended |
|
December
31, |
December
31, |
|
2011 |
2010 |
2011 |
2010 |
|
(In thousands) |
United States |
$142,438 |
$106,764 |
$501,328 |
$423,109 |
United Kingdom |
25,536 |
21,882 |
97,665 |
82,583 |
Other international |
6,208 |
6,103 |
25,583 |
26,386 |
Total revenues |
$174,182 |
$134,749 |
$624,576 |
$532,078 |
|
|
|
|
|
Breakout of ATM operating
revenues: |
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
Twelve Months
Ended |
|
December
31, |
December
31, |
|
2011 |
2010 |
2011 |
2010 |
|
(In thousands) |
Surcharge revenues |
$78,561 |
$65,188 |
$290,501 |
$267,713 |
Interchange revenues |
54,180 |
40,686 |
189,587 |
158,343 |
Bank branding and surcharge-free network
revenues |
25,497 |
21,581 |
93,449 |
81,335 |
Managed services revenues |
3,201 |
1,704 |
10,476 |
3,783 |
Other revenues |
3,616 |
3,404 |
13,206 |
11,726 |
Total ATM operating revenues |
$165,055 |
$132,563 |
$597,219 |
$522,900 |
|
|
|
|
|
Total cost of revenues by
segment: |
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
Twelve Months
Ended |
|
December
31, |
December
31, |
|
2011 |
2010 |
2011 |
2010 |
|
(In thousands) |
United States |
$93,360 |
$69,922 |
$325,394 |
$277,902 |
United Kingdom |
20,152 |
16,628 |
75,109 |
62,386 |
Other international |
4,911 |
4,591 |
19,612 |
20,104 |
Total cost of revenues |
$118,423 |
$91,141 |
$420,115 |
$360,392 |
|
|
|
|
|
Breakout of cost of ATM
operating revenues (exclusive of depreciation, accretion, and
amortization): |
|
|
|
|
|
|
|
Three Months
Ended |
Twelve Months
Ended |
|
December
31, |
December
31, |
|
2011 |
2010 |
2011 |
2010 |
|
(In thousands) |
Merchant commissions |
$52,230 |
$41,097 |
$186,043 |
$166,377 |
Vault cash rental expense |
11,624 |
9,859 |
40,818 |
38,642 |
Other costs of cash |
15,814 |
12,164 |
55,159 |
46,686 |
Repairs and maintenance |
11,815 |
9,485 |
41,474 |
36,307 |
Communications |
4,835 |
3,940 |
17,563 |
15,514 |
Transaction processing |
1,466 |
867 |
4,833 |
4,942 |
Stock-based compensation |
134 |
158 |
903 |
752 |
Other expenses |
12,799 |
11,601 |
49,554 |
42,270 |
Total cost of ATM operating
revenues |
$110,717 |
$89,171 |
$396,347 |
$351,490 |
Breakout of selling,
general, and administrative expenses: |
|
|
|
|
|
|
|
|
|
Three Months
Ended |
Twelve Months
Ended |
|
December
31, |
December
31, |
|
2011 |
2010 |
2011 |
2010 |
|
(In thousands) |
Employee costs |
$7,585 |
$6,069 |
$27,971 |
$24,720 |
Stock-based compensation |
2,194 |
1,275 |
8,421 |
5,284 |
Professional fees |
2,405 |
1,625 |
7,348 |
5,711 |
Other |
3,697 |
2,678 |
11,842 |
8,866 |
Total selling, general, and
administrative expenses |
$15,881 |
$11,647 |
$55,582 |
$44,581 |
|
|
|
|
|
Depreciation and accretion expense by
segment: |
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
Twelve Months
Ended |
|
December
31, |
December
31, |
|
2011 |
2010 |
2011 |
2010 |
|
(In thousands) |
United States |
$7,906 |
$7,148 |
$28,698 |
$27,321 |
United Kingdom |
4,334 |
3,476 |
16,194 |
12,541 |
Other international |
718 |
749 |
3,070 |
2,862 |
Total depreciation and accretion
expense |
$12,958 |
$11,373 |
$47,962 |
$42,724 |
|
|
|
|
|
|
|
|
SELECTED BALANCE SHEET
DETAIL: |
|
|
|
|
|
Long-term debt: |
|
|
|
|
|
|
December 31,
2011 |
December 31,
2010 |
|
(In thousands) |
8.25% senior subordinated notes |
$200,000 |
$200,000 |
Revolving credit facility |
166,000 |
46,200 |
Equipment financing notes |
4,949 |
8,633 |
Total long-term debt |
$370,949 |
$254,833 |
|
|
|
Share count
rollforward: |
|
|
|
|
|
Total shares outstanding as of December 31,
2010 |
42,833,342 |
|
Shares repurchased |
(156,254) |
|
Shares issued – restricted stock grants and
stock options exercised |
1,349,855 |
|
Shares forfeited – restricted
stock |
(27,500) |
|
Total shares outstanding as of December
31, 2011 |
43,999,443 |
|
|
|
|
|
|
|
|
|
|
SELECTED CASH FLOW
DETAIL: |
|
|
|
|
|
|
|
|
|
|
|
Selected cash flow statement
amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
Twelve Months
Ended |
|
|
December
31, |
December
31, |
|
|
2011 |
2010 |
2011 |
2010 |
|
|
(In thousands) |
Cash provided by operating
activities |
$43,973 |
$32,175 |
$113,325 |
$105,168 |
|
Cash used in investing activities |
(53,767) |
(10,693) |
(234,454) |
(50,652) |
|
Cash provided by (used in) financing
activities |
10,161 |
(21,002) |
123,532 |
(62,150) |
|
Effect of exchange rate changes on
cash |
3 |
86 |
(16) |
374 |
|
Net increase (decrease) in cash and cash
equivalents |
$370 |
$566 |
$2,387 |
$(7,260) |
|
Cash and cash equivalents at beginning of
period |
5,206 |
2,623 |
3,189 |
10,449 |
|
Cash and cash equivalents at end of
period |
$5,576 |
$3,189 |
$5,576 |
$3,189 |
|
|
|
|
|
|
|
|
Key Operating Metrics –
Excluding 2011 Acquisitions |
For the Three and
Twelve Months Ended December 31, 2011 and 2010 |
(Unaudited) |
|
|
|
|
|
|
The following table excludes
the effect of the acquisitions completed in 2011 for EDC, Access to
Money, and Mr. Cash for comparative purposes: |
|
|
|
|
|
EXCLUDING 2011
ACQUISITIONS |
Three Months
Ended |
Twelve Months
Ended |
|
December
31, |
December
31, |
|
2011 |
2010 |
2011 |
2010 |
Average number of transacting
ATMs: |
|
|
|
|
United States: Company-owned |
19,832 |
18,471 |
19,318 |
18,272 |
United Kingdom |
3,467 |
2,944 |
3,255 |
2,832 |
Mexico |
2,874 |
2,947 |
2,897 |
2,867 |
Canada |
— |
— |
— |
— |
Subtotal |
26,173 |
24,362 |
25,470 |
23,971 |
United States: Merchant-owned |
7,785 |
8,436 |
8,086 |
8,626 |
Average number of transacting ATMs: ATM
operations |
33,958 |
32,798 |
33,556 |
32,597 |
|
|
|
|
|
United States: Managed services (1) |
4,731 |
3,871 |
4,319 |
3,241 |
United Kingdom: Managed services |
21 |
— |
18 |
— |
Average number of transacting ATMs:
Managed services |
4,752 |
3,871 |
4,337 |
3,241 |
|
|
|
|
|
Total average number of
transacting ATMs |
38,710 |
36,669 |
37,893 |
35,838 |
|
|
|
|
|
Total transactions (in
thousands): |
|
|
|
|
ATM operations |
132,275 |
107,095 |
491,041 |
413,780 |
Managed services |
7,173 |
5,391 |
26,107 |
17,580 |
Total transactions |
139,448 |
112,486 |
517,148 |
431,360 |
|
|
|
|
|
Total cash withdrawal transactions
(in thousands): |
|
|
|
|
ATM operations |
80,984 |
64,588 |
300,799 |
253,890 |
Managed services |
4,600 |
3,635 |
17,241 |
13,020 |
Total cash withdrawal
transactions |
85,584 |
68,223 |
318,040 |
266,910 |
|
|
|
|
|
Per ATM per month amounts (excludes
managed services): |
|
|
|
|
Cash withdrawal transactions |
795 |
656 |
747 |
649 |
|
|
|
|
|
ATM operating revenues |
$1,376 |
$1,330 |
$1,374 |
$1,327 |
Cost of ATM operating revenues (2) |
900 |
891 |
902 |
891 |
ATM operating gross profit (2)
(3) |
$476 |
$439 |
$472 |
$436 |
|
|
|
|
|
ATM operating gross margin (2) (3) |
34.6% |
33.0% |
34.4% |
32.9% |
___________________ |
|
|
|
|
(1) Includes 2,564 and
2,533 ATMs for the three months ended December 31, 2011 and 2010,
respectively, and 2,523 and 2,535 ATMs for the twelve months ended
December 31, 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. |
|
Key Operating Metrics –
Including 2011 Acquisitions |
For the Three and
Twelve Months Ended December 31, 2011 and 2010 |
(Unaudited) |
|
|
|
|
|
INCLUDING 2011
ACQUISITIONS |
Three Months
Ended |
Twelve Months
Ended |
|
December
31, |
December
31, |
|
2011 |
2010 |
2011 |
2010 |
Average number of transacting
ATMs: |
|
|
|
|
United States: Company-owned |
24,161 |
18,471 |
21,125 |
18,272 |
United Kingdom |
3,467 |
2,944 |
3,255 |
2,832 |
Mexico |
2,874 |
2,947 |
2,897 |
2,867 |
Canada |
342 |
— |
105 |
— |
Subtotal |
30,844 |
24,362 |
27,382 |
23,971 |
United States: Merchant-owned |
13,789 |
8,436 |
9,934 |
8,626 |
Average number of transacting ATMs: ATM
operations |
44,633 |
32,798 |
37,316 |
32,597 |
|
|
|
|
|
United States: Managed services (1) |
4,731 |
3,871 |
4,319 |
3,241 |
United Kingdom: Managed services |
21 |
— |
18 |
— |
Average number of transacting ATMs:
Managed services |
4,752 |
3,871 |
4,337 |
3,241 |
|
|
|
|
|
Total average number of transacting
ATMs |
49,385 |
36,669 |
41,653 |
35,838 |
|
|
|
|
|
Total transactions (in
thousands): |
|
|
|
|
ATM operations |
149,837 |
107,095 |
516,564 |
413,780 |
Managed services |
7,173 |
5,391 |
26,107 |
17,580 |
Total transactions |
157,010 |
112,486 |
542,671 |
431,360 |
|
|
|
|
|
Total cash withdrawal transactions
(in thousands): |
|
|
|
|
ATM operations |
93,413 |
64,588 |
318,615 |
253,890 |
Managed services |
4,600 |
3,635 |
17,241 |
13,020 |
Total cash withdrawal
transactions |
98,013 |
68,223 |
335,856 |
266,910 |
|
|
|
|
|
Per ATM per month amounts (excludes
managed services): |
|
|
|
|
Cash withdrawal transactions |
698 |
656 |
712 |
649 |
|
|
|
|
|
ATM operating revenues |
$1,209 |
$1,330 |
$1,310 |
$1,327 |
Cost of ATM operating revenues (2) |
808 |
891 |
866 |
891 |
ATM operating gross profit (2)
(3) |
$401 |
$439 |
$444 |
$436 |
|
|
|
|
|
ATM operating gross margin (2) (3) |
33.2% |
33.0% |
33.9% |
32.9% |
___________________ |
|
|
|
|
(1) Includes 2,564 and 2,533 ATMs for
the three months ended December 31, 2011 and 2010, respectively,
and 2,523 and 2,535 ATMs for the twelve months ended December 31,
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. |
|
Key Operating Metrics –
Ending Machine Count |
As of December 31, 2011
and 2010 |
(Unaudited) |
|
|
|
|
As of December
31, |
|
2011 |
2010 |
Ending number of transacting
ATMs: |
|
|
United States: Company-owned |
24,590 |
18,828 |
United Kingdom |
3,505 |
2,963 |
Mexico |
2,847 |
2,937 |
Canada |
512 |
— |
Subtotal |
31,454 |
24,728 |
United States: Merchant-owned |
16,651 |
8,388 |
Ending number of transacting ATMs: ATM
operations |
48,105 |
33,116 |
|
|
|
United States: Managed services (1) |
4,759 |
3,854 |
United Kingdom: Managed services |
22 |
— |
Ending number of transacting ATMs:
Managed services |
4,781 |
3,854 |
|
|
|
Total ending number of transacting
ATMs |
52,886 |
36,970 |
___________________ |
|
|
(1) Includes 2,590 and
2,508 ATMs as of December 31, 2011 and 2010, respectively for which
the Company only provided EFT transaction processing services. |
|
|
|
Reconciliation of Net
Income Attributable to Controlling Interests to Adjusted EBITDA and
Adjusted Net Income |
For the Three and
Twelve Months Ended December 31, 2011 and 2010 |
(Unaudited) |
|
|
|
|
|
|
Three Months
Ended |
Twelve Months
Ended |
|
December
31, |
December
31, |
|
2011 |
2010 |
2011 |
2010 |
|
(In thousands, except share and
per share amounts) |
Net income attributable to
controlling interests |
$8,153 |
$8,028 |
$70,233 |
$40,959 |
Adjustments: |
|
|
|
|
Interest expense, net |
5,306 |
4,933 |
20,116 |
26,629 |
Amortization of deferred financing costs
and bond discounts |
218 |
211 |
993 |
2,029 |
Write-off of deferred financing costs and
bond discounts |
— |
— |
— |
7,296 |
Redemption costs for early extinguishment
of debt |
— |
— |
— |
7,193 |
Income tax expense (benefit) |
4,589 |
3,438 |
(13,176) |
(17,139) |
Depreciation and accretion
expense |
12,958 |
11,373 |
47,962 |
42,724 |
Amortization expense |
5,674 |
3,904 |
17,914 |
15,471 |
EBITDA |
$36,898 |
$31,887 |
$144,042 |
$125,162 |
|
|
|
|
|
Add back: |
|
|
|
|
Loss on disposal of assets (1) |
701 |
807 |
981 |
2,647 |
Other income (2) |
(1,070) |
(760) |
(849) |
(1,004) |
Noncontrolling interests (3) |
(431) |
(582) |
(1,897) |
(1,984) |
Stock-based compensation expense (4) |
2,315 |
1,423 |
9,283 |
5,998 |
Acquisition-related costs (5) |
3,448 |
— |
4,747 |
— |
Adjusted EBITDA |
$41,861 |
$32,775 |
$156,307 |
$130,819 |
Less: |
|
|
|
|
Interest expense, net (4) |
5,243 |
4,824 |
19,771 |
26,161 |
Depreciation and accretion expense
(4) |
12,613 |
11,006 |
46,465 |
41,322 |
Adjusted pre-tax income |
24,005 |
16,945 |
90,071 |
63,336 |
Income tax expense (at 35%) (6) |
8,402 |
5,931 |
31,525 |
22,168 |
Adjusted Net Income |
$15,603 |
$11,014 |
$58,546 |
$41,168 |
|
|
|
|
|
Adjusted Net Income per
share |
$0.36 |
$0.27 |
$1.39 |
$1.02 |
Adjusted Net Income per diluted
share |
$0.36 |
$0.26 |
$1.37 |
$1.00 |
|
|
|
|
|
Weighted average shares outstanding –
basic |
42,794,563 |
41,023,404 |
42,201,491 |
40,347,194 |
Weighted average shares outstanding –
diluted |
43,352,237 |
41,822,811 |
42,886,780 |
41,059,381 |
_________________ |
|
|
|
|
(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) Acquisition-related costs include
non-recurring costs incurred for professional and legal fees and
certain transition and integration-related costs, related to the
acquisition of EDC, LocatorSearch, Access to Money and Mr.
Cash. |
(6) 35% represents the Company's
estimated long-term, cross-jurisdictional effective tax rate. |
|
Reconciliation of Free
Cash Flow |
For the Three and
Twelve Months Ended December 31, 2011 and 2010 |
(Unaudited) |
|
|
|
|
|
|
Three Months
Ended |
Twelve Months
Ended |
|
December
31, |
December
31, |
|
2011 |
2010 |
2011 |
2010 |
|
(In thousands) |
Cash provided by operating
activities |
$43,973 |
$32,175 |
$113,325 |
$105,168 |
Payments for capital expenditures: |
|
|
|
|
Cash used in investing activities,
excluding acquisitions |
(29,827) |
(10,693) |
(66,886) |
(50,652) |
Capital expenditures financed by direct
debt |
— |
— |
— |
(542) |
Total payments for capital
expenditures |
(29,827) |
(10,693) |
(66,886) |
(51,194) |
Free cash flow |
$14,146 |
$21,482 |
$46,439 |
$53,974 |
|
|
|
|
|
|
Reconciliation of
Estimated Net Income to EBITDA, Adjusted EBITDA, and Adjusted Net
Income |
For the Year Ending
December 31, 2012 |
(Unaudited) |
|
|
|
|
|
Estimated
Range |
|
Full Year
2012 |
|
|
|
|
|
(In millions, except per share
information) |
|
|
|
|
Net income |
$41.0 |
-- |
$43.9 |
Adjustments: |
|
|
|
Interest expense, net |
20.1 |
-- |
21.6 |
Amortization of deferred financing
costs |
1.0 |
-- |
1.0 |
Income tax expense |
25.4 |
-- |
27.5 |
Depreciation and accretion
expense |
55.5 |
-- |
57.0 |
Amortization expense |
23.3 |
-- |
23.3 |
EBITDA |
$166.3 |
-- |
$174.3 |
|
|
|
|
Add back: |
|
|
|
Noncontrolling interests |
(1.4) |
-- |
(1.4) |
Loss on disposal of assets |
0.5 |
-- |
0.5 |
Stock-based compensation
expense |
10.5 |
-- |
10.5 |
Other expense |
2.1 |
-- |
2.1 |
Adjusted EBITDA |
$178.0 |
-- |
$186.0 |
Less: |
|
|
|
Interest expense, net (1) |
20.0 |
-- |
21.5 |
Depreciation and accretion expense
(1) |
53.5 |
-- |
55.5 |
Income tax expense (at 35%) (2) |
36.6 |
-- |
38.2 |
Adjusted Net
Income |
$67.9 |
-- |
$70.8 |
|
|
|
|
Adjusted Net Income per diluted
share |
$1.55 |
-- |
$1.61 |
|
|
|
|
Weighted average shares outstanding –
diluted |
43.9 |
-- |
43.9 |
|
|
|
|
__________________ |
|
|
|
(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
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