News

Access To Money reports second-quarter profit

August 12, 2010

Acccess To Money Inc. today reported a second-quarter net profit compared with a net loss for the same three-month period last year on lower sales and higher operating income.

Access To Money, a Cherry Hill, N.J.-based ATM ISO, logged net income of $2 million for the three-month period that ended June 30. This compares with a net loss of $3.2 million in 2009’s second quarter.
 
In this year’s second-quarter, the company benefited from a non-cash warrant sale of $2.5 million. Excluding the warrant sale, the business would have recorded a loss of $434,000, Michael J. Dolan, the company chief financial officer, said during a conference call. Second-quarter operating income was $877,000, up 1 percent compared with $872,000 for the same period last year.

The independent sales organization reported second-quarter net sales of $7.1 million, down 2.7 percent compared with $7.3 million in last year’s second quarter. Access To Money recorded second-quarter transaction sales of $21.1 million compared with transaction sales of $21.8 million in last year’s second quarter.

Dolan explained that the drop in transaction sales occurred because the company operated fewer ATMs in the second quarter compared with the same period last year. The ISO pulled some of its ATMs out of service after losing a deployment contract with Cumberland Farms Inc., a Framingham, Mass., convenience-store chain. Access To Money disclosed the loss in its first quarter United States Securities and Exchange Commission filing.

In 2009’s second quarter, Access To Money operated 11,330 ATMs and at the end of 2010’s second quarter, the company owned 11,014 ATMs. Access To Money’s average ATM transaction count was 10,983 machines by completion of 2010’s first quarter.

Richard Stern, Access To Money CEO, said 100 Access To Money ATMs had been taken offline in Cumberland Farms stores, and the ISO would lose 175 to 200 ATM placements in the third and possibly the fourth quarters.

On Aug. 4, Citizens Financial Group Inc., which is based in Providence, R.I., announced that it is partnering with EDC, a privately held ATM company, to deploy 600 ATMs in Cumberland Farms store locations in New England and in the Mid-Atlantic states. Walnut Creek, Calif.-based EDC began deploying the ATMs in June. It is scheduled to complete the installations by September.

Access To Money, however, is picking up business elsewhere. The company recently placed 60 Select-A-Branch ATMs, leading to a “substantial increases” in transactions, Stern said. The ISO also has deployed 150 ATMs in Dunkin’ Donuts franchise stores, he said, adding that the business also deploys ATMs for community banks and other financial institutions.

Despite the company’s second-quarter profit, an individual who owns a large number of shares complained that Access To Money’s share price did not reflect the company’s true value. Investors this afternoon sold the company’s stock for 29 cents per share on the Over-the-Counter Bulletin Board. The unnamed investor compared Access To Money’s stock to price to Cardtronics Inc.’s share price. At one time, Cardtronics stock price was selling for 47 cents per share; today it is trading for $14.54 per share.

Stern said management is doing everything it can to increase stockholder value.