JACKSONVILLE, Fla. — Global Axcess Corp., the parent of independent ATM brand Nationwide Money Services, reported slight drops in revenue and net income for the first quarter of 2009. The company reported revenue of $5.4 million, compared with the $5.5 million it reported during the first quarter of 2008; and net income of $96,762, one cent per share, compared with net income of $112,155 reported for the same period last year. The company says net income would have been approximately $564,000, three cents per share, had it not had to report the $467,400 loss for the early extinguishment of debt charges.
"The first quarter of 2009 proved to be a monumental quarter for the company," said George McQuain, GAXC's chief executive. "The $5 million financing by SunTrust Bank and the subsequent settlement of the CAMOFI issue removed the last of multiple significant legal overhangs on the company. Despite absorbing a one-time non-cash charge of approximately $467,400 relating to the extinguishment of both of the CAMOFI and Wachovia loans, we are pleased to report first quarter net income of $96,800." Michael J. Loiacono, the company's chief financial officer, says beyond the $467,400 one-time non-cash charge incurred during 1Q, GAXC expects cost savings of approximately $230,000 throughout the remaining three quarters of 2009, as well as an additional $260,000 in savings throughout 2010, because of cost cutting related to the refinancing deal with SunTrust Bank.
"We continue to execute our business plan and grow margins while maintaining and controlling our cost structures," he said. "We clearly benefited from lower interest rates and fuel costs as we increased our first quarter gross margin dollars and gross margin percentage on a slightly lower revenue base from the first quarter of 2008. We expect to continue benefiting from lower interest rates and are currently evaluating the merits of hedging interest rates on our cash costs."
