Cardtronics Provides COVID-19-Related Business Update
April 01 2020 - 8:00AM
Cardtronics plc (Nasdaq: CATM) (“Cardtronics” or the “Company”),
the world’s largest ATM owner/operator, today announced business
updates in connection with the continued spread of COVID-19. As a
result of the current unprecedented conditions across all of our
markets, the Company is withdrawing its financial outlook for the
fiscal year ending December 31, 2020.
“As we navigate the impacts of COVID-19 on Cardtronics, we
continue to act in the interest of the health and safety of our
employees, partners, customers, and fellow citizens, while
maintaining our focus on ensuring the long-term success and
stability of the company and our employees,” stated Cardtronics CEO
Edward H. West. “We have been closely monitoring the COVID-19
pandemic and its impact on our organization. I am proud of the
planning and actions the Cardtronics team has taken to date to
continue to serve our customers and provide access to cash in the
communities we serve around the world.”
West continued, “While this unprecedented event is adversely
impacting our business, Cardtronics remains in a solid financial
position with strong liquidity. In the near term, we are carefully
managing expenses and have made some significant cost reductions,
altered capital spending plans, and suspended our opportunistic
share buyback program to optimize cash flow for the current
environment.
“Now more than ever, our ATM network, mostly located in
convenient pharmacy, big-box, grocery, and convenience store
locations, provides a critical access point for cash for a
significant portion of the population in the communities we serve.
We remain confident in the long-term opportunities for our
business, powered by our unique network of ATMs, which provides
value for retailers, financial institutions, and consumers. We
believe that we are well-positioned to capitalize on the continued
transformation in banking and consumer financial services, which
could accelerate as a result of this crisis.”
Business Update
The first quarter into early March showed continued solid
momentum, in line with our strong performance in the second half of
2019. However, starting in mid-March, the Company experienced
decreases in transaction volumes of varying degrees across our
network, depending on location. We saw this trend accelerate in the
last week of March as most of the geographies in which we operate
initiated travel restrictions and stay at home orders that have
hurt in-person commerce.
For example, on our Company-owned ATMs in the U.S. we have seen
more significant impacts on transactions in the COVID-19 “hot spot”
areas, such as San Francisco and New York. However, our U.S.
business is highly dispersed from a geographic concentration
perspective, with the top 20 markets by population representing
less than 40% of our total U.S. transactions on our owned fleet.
The Company could see continued or further declines in transactions
across the enterprise due to the effects of COVID-19 and the
related shelter-in-place orders and does not expect to see a
material improvement in transactions until these orders are lifted
and consumer-based commerce improves.
Financial Position
The Company has prioritized debt pay down over the last few
years and continues to operate with a solid balance sheet. As of
March 27, the company had approximately $600 million in cash
reflecting the full utilization of available borrowings under its
$750 million revolving credit facility.
Update on 2020 Outlook
As a result of the current unprecedented conditions across all
of our markets due to the impact of COVID-19, the Company is
withdrawing its financial outlook for the fiscal year ending
December 31, 2020. Cardtronics will provide further updates on the
business on its first-quarter 2020 earnings call.
ABOUT CARDTRONICS (Nasdaq: CATM)
Cardtronics is the trusted leader in financial self-service,
enabling cash transactions at approximately 285,000 ATMs across 10
countries in North America, Europe, Asia-Pacific, and Africa.
Leveraging our unmatched scale, expertise and innovation, top-tier
merchants and businesses of all sizes use our ATM solutions to
drive growth, in-store traffic, and retail transactions. Financial
services providers rely on Cardtronics to deliver superior service
at their own ATMs, on Cardtronics ATMs where they place their
brand, and through Cardtronics' Allpoint Network, the world’s
largest surcharge-free ATM network, with over 55,000 locations. As
champions of cash, Cardtronics converts digital currency into
physical cash, driving payments choice for businesses and consumers
alike.
Contact Information:
Media RelationsLisa AlbistonVP Public Relations
and
Communications832-308-4000corporatecommunications@cardtronics.com |
Investor RelationsBrad ConradEVP –
Treasurer832-308-4000ir@cardtronics.com |
For more information,
please
visit:www.cardtronics.comwww.allpointnetwork.com |
|
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
This press release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995, as amended and are intended to be covered by the safe harbor
provisions thereof. These forward-looking statements are based on
management’s current expectations and beliefs concerning future
developments and their potential effect on the Company, including
with respect to the impact of COVID-19 on the Company’s business,
the duration of the impact and the Company’s ability to mitigate
such impacts, and there can be no assurance that future
developments affecting the Company will be those that are
anticipated. The Company’s forward-looking statements involve
significant risks and uncertainties (some of which are beyond its
control) and assumptions that could cause actual results to differ
materially from its historical experience and present expectations
or projections. Risk factors that may affect the Company’s results
are described in the Company’s Annual Report on Form 10-K for the
fiscal year ended December 31, 2019, and those set forth from
time-to-time in other filings with the Securities and Exchange
Commission. Readers are cautioned not to place undue reliance on
forward-looking statements contained in this press release, which
speak only as of the date of this press release. Except as required
by applicable law, the Company undertakes no obligation to publicly
update or revise any forward-looking statements after the date they
are made, whether as a result of new information, future events, or
otherwise.
Cardtronics is a registered trademark of
Cardtronics plc and its subsidiaries.All other trademarks are the
property of their respective owners.
Cardtronics (NASDAQ:CATM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Cardtronics (NASDAQ:CATM)
Historical Stock Chart
From Apr 2023 to Apr 2024