Cardtronics Inc. announced its financial and operational results for the quarter ended June 30, 2012 in an earnings call yesterday afternoon. The company reported a major increase in consolidated revenues of 30 percent, for a total of $192 million.
Of the year-over-year increase, 18 percent was driven by businesses acquired during the second half of 2011, including EDC, Access to Money, Mr. Cash, and LocatorSearch.
Of the remaining 12 percent organic revenue increase, 9 percent was attributable to a combination of four factors:
- increased transactions per ATM in U.S. and U.K. operations;
- unit growth expansion;
- increased revenues from managed services agreements;
- growth in the Allpoint surcharge-free network owned by Cardtronics.
Partially offsetting the increases in organic revenue was a decline in interchange as a result of rate reductions by a major network that became effective during the quarter.
Finally, 3 percent of the year-over-year increase in consolidated revenues was attributable to higher equipment sales, driven by continued increased demand to meet the new requirements under the Americans with Disabilities Act.
"On the heels of an exceptional first quarter, we had another really good quarter with continued very strong revenue growth of 30 percent and adjusted earnings growth of 12 percent," said Cardtronics CEO Steve Rathgaber. "Additionally, we executed several new branding contracts during the quarter with both existing bank partners and new financial institutions that see the value in our leading retail ATM footprint and superior execution capabilities."
Recent business highlights include:
- Completion of the installation of more than 960 ATMs at Valero Corner Store locations
- Execution of a branding agreement with Frost Bank covering 615 ATMs located within Valero Corner Stores in Texas
- Establishment of an ATM branding relationship with Sunbelt-based BBVA Compass covering189 ATMs at major national and regional retailer locations in Colorado and Texas
- Installation of more than 300 ATMs in 7-Eleven stores in Canada.
- Execution of a bank branding agreement with Scotiabank covering all Cardtronics 7-Eleven Canada-located ATMs
- Execution of a fourth ATM branding agreement with PNC Bank covering ATMs at 191 Harris Teeter stores in seven Southeast states and Washington, D.C.
- Expansion of an ATM branding relationship with USAA to cover approximately 400 ATMs located near military bases nationwide
- Installation of approximately 300 ATMs to date in Shell gasoline/convenience store locations in the U.K. under a contract signed in March of 2012
- Net addition of more than 1,600 newly deployed Cardtronics-owned ATMs during the quarter.
For the six months ended June 30, 2012, consolidated revenues for Cardtronics totaled $383.1 million, representing a 34 percent increase from the $285.3 million in consolidated revenues generated during the same period in 2011.
Cardtronics reaffirmed full-year financial guidance issued in April. For 2012, the company expects revenues of $755.0 million to $770.0 million, with overall gross margins of approximately 31.2 percent to 31.8 percent, and adjusted EBITDA of $182.5 million to $189.5 million
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