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Cardtronics beats Q2 earnings forecasts, boosts guidance

Cardtronics posted better-than-expected second quarter earnings Thursday and nudged its full-year profit guidance higher.

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August 2, 2019 by Amy Castor — Editor, Networld Media Group

Cardtronics plc posted better-than-expected second quarter earnings Thursday, which allowed the ATM operator to increase its full-year profit guidance.

The Houston-based company said earnings for the three months ending in June came in at 69 cents per share, up 13% from the same period last year and 18 cents ahead of the Zacks consensus estimate.  

"We had a great second quarter," Edward West, the company's CEO, said in a press release. "The strong quarterly performance was marked by solid execution on our business transformation plans across our segments, and as a result, we are raising our performance expectations for the year." 

Since May, the company has also repurchased over 1 million of its shares, with the goal of reducing the number of outstanding shares and increasing both the demand for the shares and the price. Among its second quarter highlights, Cardtronics signed agreements to put in place 1,500 ATMs and acquired process contracts for 62,000 ATMs in the U.S. 

In Q2, Cardtronics reported: 

• Total revenues of $340.8 million, effectively flat from $341 million in the prior year, up 3% on a constant-currency basis.
• ATM operating revenues of $323.1 million, down 2% from $329.2 million in the prior year and up 1% on a constant-currency basis.
• GAAP net income of $10.5 million, or 22 cents per diluted share, compared to GAAP net income of $3.8 million, or 8 cents per diluted share in the prior year.
• Adjusted EBITDA of $81.7 million, up 5% from $78.1 million in the prior year, and up 8% on a constant-currency basis.
• Adjusted EBITDA margin of 24%, up 110 basis points from the prior year.
• Adjusted net income per diluted share of 69 cents, up 16% on a constant-currency basis.
• Cash flow from operations of $77 million compared to $60.3 million in the prior year and adjusted free cash flow of $50.1 million compared to $33.3 million in the prior year.
• U.S. same-store withdrawal transaction growth of 3%.

Looking head, Cardtronics has increased its financial outlook for the full year. The company now expects:

• Revenues of $1.33 billion to $1.36 billion.
• GAAP net income of $41 million to $44 million.
• Adjusted EBITDA of $300 million to $310 million.
• Depreciation and accretion expense of $137 million to $139 million.
• Cash interest expense of $27 million to $28 million.
• Adjusted net income of $104 million to $109 million.
• Adjusted net income per diluted share of $2.24 to $2.36 based on approximately 46.3 million average diluted shares outstanding.
• Capital expenditures of approximately $135 million.

The Cardtronics stock price, which was $28.48 at close of market Wednesday, climbed to $30.02 on Thursday. 

About Amy Castor

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Amy Castor has more than 20 years of experience in journalism and mass communications. In the last several years, she has gotten particularly interested cryptocurrencies, blockchain technologies and other evolving forms of payment. Her work has appeared in consumer and trade publications throughout the U.S., including CoinDesk, Forbes, and Bitcoin Magazine. She is now the editor of ATMmarketplace.com and WorldofMoney.com

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