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Nationwide Money Services parent reports 72% increase in 3Q net
November 17, 2009
Global Axcess Corp., the parent of ATM ISO Nationwide Money Services and an independent deployer of self-service kiosk solutions, reported a net income increase of 72 percent for the third quarter of 2009. Net income increased from $276,000, one cent per share, in 3Q 2008 to $476,000, two cents per share. For the first nine months, net income is up 35 percent, from $839,000 to $1.1 million. The company also said it will install, maintain and conduct transaction processing for ATMs in 51 of its retail outlets, and signed a five-year contract valued at more than $550,000 per year with a regional convenience-store chain in the Southeastern United States for ATMs at 52 locations.
GAXC also announced the rollout of DVD rental kiosks at 24 sites. Revenue from continuing operations came in at $5.3 million for the quarter, down 6 percent from the $5.7 million reported during the same period last year. GAXC attributes the decrease to lower transaction volumes during the summer months as well as elimination of lower-transacting ATMs.
For the year so far, revenue totaled $16.1 million, down 5.4 percent from the $17 million reported a year ago.
"This was another successful quarter for Global Axcess, marked by further increases in our profitability on all counts," said George McQuain, GAXC's chief executive. "This is a testament to our focus on long-term, sustainable profitability through our lean operating infrastructure demonstrating the scalability of our business. The positive bottom-line results for the quarter do not reflect any material contribution from the two agreements we announced during the quarter, or any contribution from our DVD kiosk initiative, currently in a pilot program stage. The two contracts we signed during the quarter, which in aggregate we expect to generate$1.3 million annually with the potential for follow-on business, are both expected to ramp during the fourth quarter and contribute significantly to our first quarter 2010 results."
McQuain says the company also continues to see opportunities for growth in ATM services.
"We are optimistic that we will announce agreements to further expand our ATM network in the coming months," he said. "We are moving to augment our marketing and sales teams to help us grow our top line and we are currently interviewing sales personnel."
McQuain added that the DVD-rental pilots also have been met with success, and that the company is "focused on growing the rental traffic at the kiosks."
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