News

Global Axcess Corp. reports second quarter financial results

August 10, 2011

Global Axcess Corp., an independent provider of self-service kiosk solutions, today announced financial results for the quarter ended June 30.

"We achieved record revenue for the second consecutive quarter and we returned to profitability, as evidenced by the strongest ATM quarter in the company's history," said Michael I. Connolly, co-chief executive officer.

Key financial and operational statistics for the ATM business line in the second quarter of 2011 include:

• Surcharge transactions increased by 1.3 percent over surcharge transactions for the first quarter of 2011, and by 3.3 percent over surcharge transactions for the second quarter of 2010.

• ATM services revenue increased by 5.9 percent over ATM services revenue for the first quarter of 2011, and by 15.6 percent over ATM services revenue for the second quarter of 2010.

• ATM services adjusted EBITDA was $1.7 million, compared to $1.5 million for the first quarter of 2011 and $1.5 million for the second quarter of 2010.

Second quarter 2011 financial results

The company reported consolidated revenues of $8.3 million for the second quarter ended June 30, up 4.3 percent from $8.0 million in the first quarter, and up 50.6 percent compared to $5.5 million for the second quarter of 2010.

Both sequential and year over years increases were due to a combination of ATM growth and DVD growth.

Gross profit was $3.1 million, or 36.9 percent gross margin, for the second quarter compared to $2.5 million, or 45.6 percent gross margin, for the second quarter of 2010 and compared sequentially to gross profit of $3.1 million, or 38.7 percent gross margin, in the first quarter of 2011.

Operating income was $298,000 for the second quarter of 2011 compared to operating income of $332,000 for the second quarter of 2010, and compared to an operating loss of $260,000 for the first quarter of 2011.

During the second quarter of 2011, the company recorded net interest expense of $179,000, compared to net interest expense of $110,000 for the same period of 2010. The increase was mainly due to an increase in debt.

EBITDA for the second quarter of 2011 was $1.2 million, compared to $751,000 for the second quarter of 2010. Adjusted EBITDA was $1.2 million for the second quarter of 2011 compared to $908,000 for the second quarter of 2010.

Net income for the second quarter ended June 30 was $183,000, or $0.01 per basic and diluted share, compared to net income of $121,000, or $0.01 per basic and diluted share, for the same period of 2010, and compared to a net loss of $544,000, or $0.02 per basic and diluted share in the first quarter of 2011.