Article

Cardtronics releases second-quarter 2011 financial results

EDC and LocatorSearch acquisitions highlighted the quarter.   

August 3, 2011

Cardtronics Inc. today announced its financial and operational results for the quarter ended June 30, 2011. Highlights of the results include consolidated revenues totaling $147.3 million, representing an 11 percent increase from the same quarter last year, and the acquisitions of EDC and LocatorSearch.

Key financial and operational statistics in the second quarter of 2011 compared to the second quarter of 2010 include:

• Consolidated revenues of $147.3 million, up by 11 percent
• Adjusted net income per diluted share of $0.34, up by 31 percent from $0.26
• Gross margin of 33.2 percent, up from 32.5 percent
• Adjusted EBITDA of $37.9 million, up by 12 percent
• GAAP net income of $8.7 million, up by 6 percent
• GAAP net income per diluted share of $0.20, up from $0.19

Amounts presented exclude transactions from the company's managed services offerings:

• Total transactions increased by 16 percent
• Total cash withdrawal transactions per ATM increased by 13 percent
• Revenues per ATM increased by 5 percent
• Operating gross profit per ATM increased by 9 percent

"We had a busy second quarter, which was highlighted by strong top-line revenue growth that resulted in very strong adjusted earnings growth of over 30 percent," said Steve Rathgaber, chief executive officer, Cardtronics. "In addition, we are very pleased to announce that our acquisition of EDC's ATM business has been completed effective July 25."

The acquisition of EDC ATM Subsidiary LLC and Efmark Deployment I Inc. (collectively EDC), which increased the number of ATMs owned and operated by the company by approximately 3,600 ATMs, is expected to be accretive to adjusted net income per diluted share starting immediately and will become more accretive in future periods, according to a company statement.
 
The company also cited the acquisition of LocatorSearch, a provider of location search technology implemented by financial institutions to help customers find the nearest branch office, ATM, surcharge-free ATM network or any specific service, as another Q2 highlight. 

Net new company-owned ATMs installations for the quarter total more than 600. Net addition of bank brands to more than 280 existing ATMs in the company's portfolio, through growth with existing relationships and new relationships with financial institutions, including 189 ATMs in the Washington, D.C. area featuring the USAA brand, also underlined the quarter.

Liquidity and balance sheet

On July 25, concurrent with the closing of the EDC acquisition, Cardtronics expanded the borrowing capacity under its existing revolving credit facility from $175.0 million to $250.0 million and extended the term of the facility by one year through July 15, 2016.

As a result of the completion of the EDC acquisition and the expanded credit facility, the company had $171.7 million in outstanding borrowings as of July 25, with $74.0 million in committed and available credit.

As of the end of the second quarter, Cardtronic's outstanding borrowings under its credit facility reflect the payment of $16.2 million to one of its primary vault cash suppliers for losses sustained by the supplier as a result of the misappropriation of this amount by one of the Cardtronic's armored carriers in early 2010.

A corresponding receivable is reflected in the company's noncurrent assets, and recovery of the entire amount is expected from insurance coverage. 

For more information on this topic, visit our distributors/ ISOs/IADs research center.