News

Universal Money Centers files third-quarter report

December 26, 2001

MISSION, Kan. - Universal Money Centers Inc., which operates a network of nearly 600 ATMs and provides network management and switching services to banks and third-party ATM owners, reported a net loss of $556,518 for the third quarter ending Oct. 31 on revenue of $2,073,541.

In the third quarter of 2000, the company reported net income of $38,469 on revenue of $2,063,847. The loss follows a gain of $76,184 reported during the second quarter of the fiscal year. (See story: Universal Money Centers reports 2nd quarter financials).

For the nine-month period ending Oct. 31, University Money Centers experienced a net loss of $483,778 on revenue of $6,647,725. During the similar period in 2000, the company had net income of $25,449 on revenue of $6,066,439.

Company officials said part of the reason for the losses stems from increases in cost of revenue. Cost of revenue for the first nine months of 2001 was $5,416,265 as compared to $4,690,572 for the similar period last year. The increase is due primarily to increased interchange and surcharge rebates, high vault cash rental costs, high salaries, and increased telecommunications expenses, the company said in its financial report.

The company had 598 ATMs in its network - primarily in Missouri, Kansas, and Texas - on Oct. 31, as compared to 569 on Oct. 31, 2000. However, the figure is down slightly from the 615 machines in use at the end of the second quarter of 2001.