Innovation

Cardtronics Q3 showed continued strong cash flow generation

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October 30, 2020

Cardtronics plc announced its financial and operational results for Q3 according to a report in Seeking Alpha

The company had several highlights that included signing several fintechs to the Allpoint ATM network of surcharge-free ATMs, including Chime, Credit Karma, MoCaFi, and Central Payments. It also expanded its relationship with ScotiaBank to manage 400 additional ATMs in 2020 and 2021.

A positive for the year was forging new branding agreements with several financial institutions to brand over 600 ATMs at Casey's General Stores and a successful roll-out of proprietary neoterm terminal management software, now on more than 15,000 ATMs in the U.S.

Total revenues of $279.4 million was down 20.5% from $351.5 million in the prior year, and down 21.2% on a constant-currency basis. ATM operating revenues of $267.3 million, were down 19.8% from $333.4 million in the prior year, and down 20.5% on a constant-currency basis.

GAAP Net income was $5.7 million, or $0.13 per diluted share, compared to Net Income of $20.9 million, or $0.46 per diluted share in the prior year. Adjusted Net Income per diluted share was $0.49, compared to $0.79 in the prior year.

Adjusted EBITDA of $71.9 million was down 17.5% from $87.1 million in the prior year, and down 18.7% on a constant-currency basis, positively impacted by business rate recoveries in the U.K. of approximately $11.8 million.

"We continued to see recovery in our transactions and revenues across most of our business units during the third quarter, with the U.S., our largest market, returning to near prior year levels," Ed West, CEO of Cardtronics said in the report. "We generated strong free cash flow during the third quarter, as we continue to improve our operating efficiency and capitalize on this period of payments transformation."