News

Global Cash Access reports Q4, full year financials

March 15, 2013

Global Cash Access Holdings Inc. has announced its financial results for the fourth quarter and year ended December 31, 2012. Operating income, adjusted EBITDA and cash EPS for the year all recorded considerable increases over 2011.

"We are pleased with our full year 2012 results, and in 2013, we will continue to focus on our people, enhancing our existing products and services, and developing additional cash access products to provide our customers with fully integrated, end-to-end solutions for their operational needs," said David Lopez, president and CEO of Global Cash Access.

Q4 results

Revenues from the fourth quarter of 2012 showed marked decreases from 2011. However, these were primarily due to unusually high kiosk sales in the fourth quarter 2011, which were associated with certain large casino openings and higher payroll and related expenses, the company said. 

Revenues were $136.1 million for Q4 2012, a decrease of 1 percent, compared with $137.7 million for the same period in 2011. Operating income was $9.7 million, a decrease of 32 percent,compared with $14.2 million for the same period in 2011.

Adjusted earnings before interest, taxes, depreciation and amortization and non-cash compensation expense were $16.4 million for the fourth quarter 2012, a decrease of 18 percent, as compared with $20.0 million for the same period in 2011. 

Income from operations before income tax provision was $6.3 million for the fourth quarter 2012, a decrease of 36 percent, as compared with $9.8 million for the same period in 2011. Cash EPS was 17 cents for the fourth quarter 2012, a decrease of 19 percent from 21 cents for the same period in 2011.

Fiscal year 2012 results

Revenues were $584.5 million for the fiscal year 2012, an increase of 7 percent compared with $544.1 million for the fiscal year 2011. Operating income was $56.0 million, an increase of 46 percent, as compared with $38.3 million for 2011. Adjusted EBITDA was $79.3 million for 2012, an increase of 29 percent, as compared with $61.7 million for the fiscal year 2011.

These increases were primarily due to the reduced amount of interchange expenses paid by the company on its debit card transactions as a result of the implementation of the Durbin Amendment in October 2011, and the acquisition of substantially all the assets of MCA Processing LLC completed in November 2011, the company said.

Income from operations before income tax provision was $40.5 million for the fiscal year 2012, an increase of 117 percent compared with $18.7 million for fiscal year 2011. Cash EPSwas 84 cents for the fiscal year 2012, an increase of 62 percent from 52 cents in 2011.

2013 outlook

For the fiscal year ending December 31, 2013, Global Cash Access estimates that cash earnings per share will be between approximately 74 cents and 83 cents (on diluted shares of approximately 67.2 million). Adjusted EBITDA will be between $70 million and $74 million, the company estimates.

This estimated outlook is based primarily upon the combination of the following factors:

• the anticipated impact of less favorable pricing terms associated with several customer contract renewals in 2012 and 2013;
• the anticipated impact of certain large customers not renewing their contracts;
• flat to low growth in the domestic gaming industry;
• no significant casino openings in 2013;
• a projected increase in kiosk sales and services business in 2013;
• and continued investment with respect to GCA technology infrastructure and personnel.

Read more about distributors, ISOs and IADs.