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EXHIBIT 99.1

Cardtronics Announces Third Quarter 2011 Results

HOUSTON, Nov. 7, 2011 (GLOBE NEWSWIRE) -- Cardtronics, Inc. (Nasdaq:CATM) (the "Company"), the world's largest retail ATM owner, today announced its financial and operational results for the quarter ended September 30, 2011.

Key financial and operational statistics in the third quarter of 2011 as compared to the third quarter of 2010 include (with some statistics showing the results excluding the contribution from the EDC acquisition, which closed on July 25, 2011):

  • Consolidated revenues of $165.1 million, up by 21% (up by 12% excluding the contribution from the EDC acquisition)
  • Adjusted Net Income per diluted share of $0.39, up by 39% from $0.28
  • Gross margin of 33.2%, remaining fairly consistent with the prior year
  • Adjusted EBITDA of $43.0 million, up by 23%
  • GAAP net income of $46.9 million, up by 126%, significantly impacted by non-recurring refinancing-related charges incurred in the third quarter of 2010 and an increase in tax benefit in the third quarter of 2011.
  • GAAP net income per diluted share of $1.05, up from $0.49, significantly impacted by non-recurring refinancing-related charges incurred in the third quarter of 2010 and an increase in tax benefit in the third quarter of 2011.
  • Continued improvements in several key operating metrics (amounts presented exclude transactions from the Company's managed services offerings):
  • Total transactions increased by 28% (up by 20% excluding the contribution from the EDC acquisition)
  • Total cash withdrawal transactions per ATM increased by 19%
  • Total transactions per ATM increased by 17%
  • Operating gross profit per ATM increased by 9%

Effects of foreign currency exchange rate movements had an insignificant impact on reported revenues, Adjusted EBITDA and Adjusted Net Income per diluted share during the quarter.

Please refer to the "Disclosure of Non-GAAP Financial Information" contained later in this release for definitions of Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income per diluted share and Free Cash Flow. For additional financial information, including reconciliations to comparable GAAP measures, please refer to the supplemental schedules of selected financial information at the end of this release.

"Our third quarter results were very strong, driven by impressive organic revenue growth of 12% and a nice contribution from our recently completed EDC acquisition," commented Steve Rathgaber, chief executive officer. "With our continued solid execution of our core business strategy along with complementary business expansion opportunities, we are very excited about the Company's future growth prospects."

RECENT HIGHLIGHTS

  • The successful integration of the EDC ATM business with the Company's existing operations. The results of operations include the performance of EDC since the acquisition date of July 25, 2011.
  • The completion on November 1, 2011 of the acquisition of Access to Money, a leading ATM operator, with approximately 8,000 ATMs in small retailers and approximately 2,000 ATMs in two major retailers.
  • The execution of an ATM managed services agreement for 89 ATMs with FirstBank for its ATMs located in King Soopers (a local brand name operated by Kroger Co.) in Colorado.
  • The execution of an ATM services agreement with Harris Teeter, a chain of supermarkets located primarily in U.S. Mid-Atlantic States, to initially install 100 ATMs in its stores as well as in any new Harris Teeter stores.
  • The acquisition on October 28, 2011 of Mr. Cash, a Canadian operator of approximately 600 ATMs, which provides the Company with a platform and management to serve its U.S. retailer clients with Canadian operations as well as to serve potential new Canadian retailers.
  • The addition of over 600 new (excluding acquisitions) Company-owned ATM locations in the United States in the third quarter.

THIRD QUARTER RESULTS

For the third quarter of 2011, consolidated revenues totaled $165.1 million, representing a 21% increase from the $136.6 million in consolidated revenues generated during the third quarter of 2010. Of the 21% year-over-year increase, 9% was attributable to the inclusion of EDC's operations into the Company's consolidated results for 68 days in the quarter. The remaining 12% organic revenue increase is attributable to a combination of the following: (1) increased transactions per ATM in the Company's domestic and United Kingdom operations; (2) unit growth expansion; (3) increased revenues from managed services agreements; (4) higher equipment sales; (5) increased bank branding revenues from financial institution partners; and (6) growth in Allpoint, the Company's leading surcharge-free network.

Adjusted EBITDA for the third quarter of 2011 totaled $43.0 million, compared to $34.9 million during the third quarter of 2010, and Adjusted Net Income totaled $16.9 million ($0.39 per diluted share) compared to $11.4 million ($0.28 per diluted share) during the third quarter of 2010. The increases in Adjusted EBITDA and Adjusted Net Income per diluted share were positively affected by the incremental operations of ATMs acquired from EDC, as well as the organic revenue growth. The year-over-year improvement in Adjusted Net Income per diluted share was also partially attributable to lower interest expense, which was $1.8 million lower than a year ago, resulting from the refinancing of the Company's debt in the third quarter of 2010, partially offset by the additional borrowings under the Company's amended credit facility to fund the acquisition of EDC. Specific costs excluded from Adjusted EBITDA and Adjusted Net Income are detailed in a reconciliation included at the end of this press release.

GAAP Net Income for the third quarter of 2011 totaled $46.9 million, compared to $20.8 million during the same quarter in 2010. The GAAP Net Income for the third quarter of 2011 included $37.0 million of income tax benefit, which was recorded as the result of certain tax reporting and structuring changes the Company implemented during the quarter with respect to its U.K. operations. The third quarter of 2010 also included a net income tax benefit of $20.7 million due to the release of valuation allowances related to the Company's domestic deferred tax assets. Partially offsetting the income tax benefit in 2010, the Company recorded approximately $14.5 million in pre-tax non-recurring charges associated with the Company's early retirement of its senior subordinated notes and the refinancing of its credit facility. The year-over-year increase in GAAP Net Income, aside from income taxes and prior year non-recurring charges, was a result of the factors identified in the discussion of Adjusted EBITDA and Adjusted Net Income above, partially offset by higher stock-based compensation and non-recurring acquisition-related costs.

NINE MONTHS RESULTS

For the nine months ended September 30, 2011, consolidated revenues totaled $450.4 million, representing a 13% increase from the $397.3 million in consolidated revenues generated during the same period in 2010. As was the case with the Company's quarterly results, the year-over-year increase was partially attributable to the inclusion of EDC's operations into the Company's consolidated results and a combination of increased transactions per ATM, increased revenues from managed services agreements, higher equipment sales, unit growth expansion, growth in Allpoint, and increased bank branding revenues from financial institution partners.

Adjusted EBITDA totaled $114.4 million for the nine months ended September 30, 2011, representing a 17% increase over the $98.0 million in Adjusted EBITDA for the same period in 2010, and Adjusted Net Income totaled $42.9 million ($1.01 per diluted share) for the first nine months of 2011, up 36% on a per share basis from $30.2 million ($0.74 per diluted share) during the same period in 2010. The increases in both Adjusted EBITDA and Adjusted Net Income were primarily due to the same factors noted above for the Company's quarterly results.

GAAP Net Income for the nine months ended September 30, 2011 totaled $62.1 million, compared to $32.9 million during the same period in 2010. As was the case with the quarterly results, the results for the nine-month periods ended September 30, 2011 and 2010 include certain non-recurring items related to taxes and re-financing costs. Excluding these non-recurring effects, the improvement in the Company's GAAP results was primarily driven by the same factors outlined above with respect to Adjusted EBITDA and Adjusted Net Income.

GUIDANCE

Update of Full-Year 2011 Guidance

The Company is updating the financial guidance it previously issued regarding its anticipated full-year 2011 results, and now expects the following, which includes expected results from the Access to Money acquisition from the date of closing (November 1, 2011) through the end of the year:

  • Revenues of $615.0 million to $620.0 million;
  • Overall gross margins of approximately 32.8% to 32.9%;
  • Adjusted EBITDA of $155.0 million to $157.0 million;
  • Depreciation and accretion expense of approximately $46.2 million, net of noncontrolling interests
  • Cash interest expense of approximately $19.9 million, net of noncontrolling interests
  • Adjusted Net Income of $1.35 to $1.38 per diluted share, based on approximately 42.9 million weighted average diluted shares outstanding; and
  • Capital expenditures of approximately $64.4 million, net of noncontrolling interests.

The Adjusted EBITDA and Adjusted Net Income guidance excludes the impact of $9.2 million of anticipated stock-based compensation expense and $18.2 million of expected intangible asset amortization expense, both on a pre-tax basis. Additionally, this guidance is based on average foreign currency exchange rates during the October to December period of $1.55 U.S. to £1.00 U.K. and $13.00 Mexican pesos to $1.00 U.S. Finally, the guidance assumes that interest rates during the October to December period remain relatively consistent with what the Company has experienced during the first nine months of the year.

LIQUIDITY, BALANCE SHEET AND OTHER

On July 25, 2011, concurrent with the closing of the EDC acquisition, the Company expanded the borrowing capacity under its revolving credit facility from $175.0 million to $250.0 million and extended the term of the credit facility by one year through July 15, 2016. In addition, the amended credit facility can be extended to up to $325.0 million under certain conditions. The amendment also modified certain pricing terms and restrictive covenants, the terms of which are generally more favorable for the Company. As of the end of the quarter, the Company had $156.3 million in outstanding borrowings under its amended credit facility, resulting in approximately $89.4 million in available credit, net of outstanding borrowings and letters of credit.

In October, a large international network announced planned reductions to the net interchange payments it makes to ATM deployers. The Company plans to discuss this action and its possible impact to the Company in greater detail on its conference call today (see below for further details regarding this conference call).

DISCLOSURE OF NON-GAAP FINANCIAL INFORMATION

Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income per diluted share and Free Cash Flow are non-GAAP financial measures provided as a complement to results prepared in accordance with accounting principles generally accepted within the United States of America ("GAAP") and may not be comparable to similarly-titled measures reported by other companies. Management believes that the presentation of these measures and the identification of unusual, non-recurring, or non-cash items enhance an investor's understanding of the underlying trends in the Company's business and provide for better comparability between periods in different years.

Adjusted EBITDA excludes depreciation, accretion, and amortization expense as these amounts can vary substantially from company to company within the Company's industry depending upon accounting methods and book values of assets, capital structures, and the method by which the assets were acquired. Adjusted EBITDA does not reflect acquisition-related costs and our obligations for the payment of income taxes, interest expense or other obligations such as capital expenditures. Adjusted Net Income represents net income computed in accordance with GAAP, before amortization expense, loss on disposal of assets, noncontrolling interests, stock-based compensation expense and certain other expense (income) and acquisition-related costs. Adjusted Net Income per diluted share is calculated by dividing Adjusted Net Income by average weighted diluted shares outstanding calculated in accordance with GAAP. Free Cash Flow is defined as cash provided by operating activities less payments for capital expenditures, including those financed through direct debt but excluding acquisitions. The measure of Free Cash Flow does not take into consideration certain other non-discretionary cash requirements such as, for example, mandatory principal payments on portions of the Company's long-term debt. 

The non-GAAP financial measures presented herein should not be considered in isolation or as a substitute for operating income, net income, cash flows from operating, investing, or financing activities, or other income or cash flow measures prepared in accordance with GAAP. Reconciliations of the non-GAAP financial measures used herein to the most directly comparable GAAP financial measures are presented in tabular form at the end of this press release.

CONFERENCE CALL INFORMATION

The Company will host a conference call today, Monday, November 7, 2011, at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) to discuss its financial results for the quarter ended September 30, 2011. To access the call, please call the conference call operator at:

Dial in: (877) 303-9205

Alternate dial-in: (760) 536-5226

Please call in fifteen minutes prior to the scheduled start time and request to be connected to the "Cardtronics Third Quarter Earnings Conference Call." Additionally, a live audio webcast of the conference call will be available online through the investor relations section of the Company's website at www.cardtronics.com.

A digital replay of the conference call will be available through Monday, November 21, 2011, and can be accessed by calling (855) 859-2056 or (404) 537-3406 and entering 18166776 for the conference ID. A replay of the conference call will also be available online through the Company's website subsequent to the call through December 6, 2011.

ABOUT CARDTRONICS (Nasdaq:CATM)

Making ATM cash access convenient where people shop, work and live their lives, Cardtronics is at the convergence of retailers, financial institutions, prepaid card programs and the customers they share. Cardtronics owns/operates more than 52,800 retail ATMs in U.S. and international locales. Whether Cardtronics is driving foot traffic for America's most relevant retailers, enhancing ATM brand presence for card issuers or expanding card holders' surcharge-free cash access on the local, national or global scene, Cardtronics is convenient access to cash, when and where consumers need it. Cardtronics is where cash meets commerce.

The Cardtronics logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=991

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give the Company's current expectations or forecasts of future events, future financial performance, strategies, expectations, competitive environment, regulation, and availability of resources. The forward-looking statements contained in this release include, among other things, statements concerning projections, predictions, expectations, estimates or forecasts as to the Company's business, financial and operational results and future economic performance, and statements of management's goals and objectives and other similar expressions concerning matters that are not historical facts, including the expectation of operational and financial results from the contribution of the EDC and Access to Money businesses. These statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the following:

  • the Company's financial outlook and the financial outlook of the ATM industry;
  • the Company's ability to respond to recent and future regulatory changes, including possible effects from the Dodd-Frank Wall Street Reform and Consumer Protection Act which could result in different behavior by consumers, retailers and banks;
  • the Company's ability to respond to potential reductions in the amount of interchange fees that it receives from global and regional debit networks for transactions conducted on its ATMs, including a recent announcement by a major global network that will likely result in lower fees earned by the Company on transactions processed over this network;
  • the Company's ability to provide new ATM solutions to retailers and financial institutions;
  • the Company's ATM vault cash rental needs, including potential liquidity issues with its vault cash providers;
  • the continued implementation of the Company's corporate strategy;
  • the Company's ability to compete successfully with new and existing competitors;
  • the Company's ability to renew and strengthen its existing customer relationships and add new customers;
  • the Company's ability to meet the service levels required by its service level agreements with its customers;
  • the Company's ability to pursue and successfully integrate acquisitions;
  • the Company's ability to successfully manage its existing international operations and to continue to expand internationally;
  • the Company's ability to prevent security breaches;
  • the Company's ability to manage the risks associated with its third-party service providers failing to perform their contractual obligations;
  • the Company's ability to manage concentration risks with key customers, vendors and service providers;
  • changes in interest rates and foreign currency rates; and
  • the additional risks the Company is exposed to in its U.K. armored transport business.

Additional information regarding known material factors that could cause the Company's actual performance or results to differ from its projected results are described in its filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. You should not read forward-looking statements as a guarantee of future performance or results. They will not necessarily be accurate indications of the times at or by which such performance or results will be achieved. Forward-looking statements speak only as of the date the statements are made and are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events. The Company assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information.

Consolidated Statements of Operations
For the Three and Nine Months Ended September 30, 2011 and 2010
(Unaudited)
 
   Three Months Ended
 September 30,  
 Nine Months Ended
 September 30, 
   2011   2010   2011   2010 
  (In thousands, except share and per share information)
Revenues:        
ATM operating revenues  $ 157,636 $ 134,090 $ 432,164 $ 390,337
ATM product sales and other revenues   7,423  2,515  18,230  6,992
Total revenues   165,059  136,605  450,394  397,329
Cost of revenues:        
Cost of ATM operating revenues (exclusive of depreciation, accretion, and amortization shown separately below)  103,727  89,026  285,630  262,319
Cost of ATM product sales and other revenues   6,501  2,425  16,062  6,932
Total cost of revenues   110,228  91,451  301,692  269,251
Gross profit   54,831  45,154  148,702  128,078
Operating expenses:        
Selling, general, and administrative expenses    13,772  11,519  39,701  32,934
Acquisition-related expenses   956  —  1,299  —
Depreciation and accretion expense   12,197  10,865  35,004  31,351
Amortization expense   4,946  3,823  12,240  11,567
Loss on disposal of assets   117  368  280  1,840
Total operating expenses   31,988  26,575  88,524  77,692
Income from operations   22,843  18,579  60,178  50,386
Other expense:        
Interest expense, net    5,243  7,064  14,810  21,696
Amortization of deferred financing costs and bond discounts  351  546  775  1,818
Write-off of deferred financing costs and bond discounts  —  7,296  —  7,296
Redemption costs for early extinguishment of debt    —  7,193  —  7,193
Other expense (income)   318  (207)  258  (173)
Total other expense   5,912  21,892  15,843  37,830
Income (loss) before income taxes   16,931  (3,313)  44,335  12,556
Income tax benefit   (29,869)  (23,968)  (17,765)  (20,577)
Net income    46,800  20,655  62,100  33,133
Net (loss) income attributable to noncontrolling interests  (85)  (108)  20  202
Net income attributable to controlling interests and available to common stockholders $ 46,885 $ 20,763 $ 62,080 $ 32,931
         
Net income per common share – basic  $ 1.06 $ 0.49 $ 1.42 $ 0.79
Net income per common share – diluted  $ 1.05 $ 0.49 $ 1.40 $ 0.78
         
Weighted average shares outstanding – basic  42,570,137 40,529,280 42,001,624 40,119,310
Weighted average shares outstanding – diluted  43,195,554 41,207,238 42,727,446 40,790,504
 
Condensed Consolidated Balance Sheets
As of September 30, 2011 and December 31, 2010
 
   September 30, 2011 December 31, 2010
  (Unaudited)  
  (In thousands)
Assets    
Current assets:    
 Cash and cash equivalents  $ 5,206  $ 3,189
 Accounts and notes receivable, net   32,716   20,270
 Inventory   2,108   1,795
 Restricted cash, short-term   3,568   4,466
 Current portion of deferred tax asset, net   18,780   15,017
Prepaid expenses, deferred costs, and other current assets  12,685   10,222
Total current assets   75,063   54,959
Property and equipment, net   174,154   156,465
Intangible assets, net   112,415   74,799
Goodwill   269,521   164,558
Deferred tax asset, net   10,493   715
Prepaid expenses, deferred costs, and other assets   19,878   3,819
Total assets  $ 661,524  $ 455,315
     
Liabilities and Stockholders' Equity    
Current liabilities:    
 Current portion of long-term debt and notes payable  $ 2,717  $ 3,076
 Current portion of other long-term liabilities   24,868   24,493
Accounts payable and other accrued and current liabilities  84,648   71,425
Total current liabilities   112,233   98,994
Long-term liabilities:    
 Long-term debt   359,484   251,757
 Deferred tax liability, net   62   10,268
 Asset retirement obligations   32,456   26,657
 Other long-term liabilities   54,178   23,385
Total liabilities   558,413   411,061
Stockholders' equity   103,111   44,254
Total liabilities and stockholders' equity  $ 661,524  $ 455,315
 
SELECTED INCOME STATEMENT DETAIL:
 
Total revenues by segment:
 
   Three Months Ended
 September 30, 
 Nine Months Ended
 September 30, 
   2011   2010   2011   2010 
  (In thousands)
United States  $ 132,861 $ 108,785 $ 358,890 $ 316,345
United Kingdom   26,060  21,737  72,129  60,701
Mexico   6,138  6,083  19,375  20,283
 Total revenues  $ 165,059 $ 136,605 $ 450,394 $ 397,329
     
Breakout of ATM operating revenues:    
   Three Months Ended
 September 30, 
 Nine Months Ended
 September 30, 
   2011   2010   2011   2010 
  (In thousands)
Surcharge revenues  $ 76,579 $ 68,149 $ 211,940 $ 202,525
Interchange revenues   50,695  40,820  135,407  117,657
Bank branding and surcharge-free network revenues  24,399  20,761  67,952  59,754
Managed services revenues   3,025  1,034  7,275  2,079
Other revenues   2,938  3,326  9,590  8,322
 Total ATM operating revenues  $ 157,636 $ 134,090 $ 432,164 $ 390,337
     
Total cost of revenues by segment:    
     
   Three Months Ended
 September 30, 
 Nine Months Ended
 September 30, 
   2011   2010   2011   2010 
  (In thousands)
United States  $ 85,834 $ 70,239 $ 232,034 $ 207,980
United Kingdom   19,666  16,506  54,957  45,758
Mexico   4,728  4,706  14,701  15,513
 Total cost of revenues  $ 110,228 $ 91,451 $ 301,692 $ 269,251
 
Breakout of cost of ATM operating revenues (exclusive of depreciation, accretion, and amortization):
 
   Three Months Ended
 September 30, 
 Nine Months Ended
 September 30, 
   2011   2010   2011   2010 
  (In thousands)
Merchant commissions  $ 49,018 $ 42,160 $ 133,813 $ 125,280
Vault cash rental expense   10,381  9,902  29,194  28,783
Other costs of cash   14,377  11,513  39,345  34,522
Repairs and maintenance   10,882  8,929  29,659  26,822
Communications   4,619  3,972  12,728  11,574
Transaction processing   1,362  956  3,367  4,075
Stock-based compensation   251  226  769  594
Other expenses   12,837  11,368  36,755  30,669
 Total cost of ATM operating revenues  $ 103,727 $ 89,026 $ 285,630 $ 262,319
 
Breakout of selling, general, and administrative expenses:
 
   Three Months Ended
 September 30, 
 Nine Months Ended
 September 30, 
   2011   2010   2011   2010 
  (In thousands)
Employee costs  $ 7,061 $ 6,647 $ 20,386 $ 18,651
Stock-based compensation   2,122  1,481  6,227  4,009
Professional fees   1,917  1,220  4,943  4,086
Other   2,672  2,171  8,145  6,188
Total selling, general, and administrative expenses $ 13,772 $ 11,519 $ 39,701 $ 32,934
 
Depreciation and accretion expense by segment:
 
   Three Months Ended
 September 30, 
 Nine Months Ended
 September 30, 
   2011   2010   2011   2010 
  (In thousands)
United States  $ 7,238 $ 6,842 $ 20,792 $ 20,172
United Kingdom   4,183  3,179  11,860  9,065
Mexico   776  844  2,352  2,114
 Total depreciation and accretion expense  $ 12,197 $ 10,865 $ 35,004 $ 31,351
     
SELECTED BALANCE SHEET DETAIL:    
     
Long-term debt:    
   September 30, 2011 December 31, 2010
  (In thousands)
8.25% senior subordinated notes   $ 200,000  $ 200,000
Revolving credit facility   156,300  46,200
Equipment financing notes    5,901   8,633
 Total long-term debt   $ 362,201  $ 254,833
   
Share count rollforward:  
   
Total shares outstanding as of December 31, 2010   42,833,342
Shares repurchased   (145,251)
Shares issued – restricted stock grants and stock options exercised   1,135,442
Shares forfeited – restricted stock    (13,750)
 Total shares outstanding as of September 30, 2011    43,809,783
 
SELECTED CASH FLOW DETAIL:
 
Selected cash flow statement amounts:
 
   Three Months Ended
 September 30, 
 Nine Months Ended
 September 30, 
   2011   2010   2011   2010 
  (In thousands)
Cash provided by operating activities  $ 38,313 $ 20,392 $ 69,352 $ 72,993
Cash used in investing activities   (155,290)  (18,947) (180,687)  (39,959)
Cash provided by (used in) financing activities  118,042  (38,782)  113,371  (41,148)
Effect of exchange rate changes on cash   143  (129)  (19)  288
Net increase (decrease) in cash and cash equivalents $ 1,208 $ (37,466) $ 2,017 $ (7,826)
Cash and cash equivalents at beginning of period  3,998  40,089  3,189  10,449
Cash and cash equivalents at end of period  $ 5,206 $ 2,623 $ 5,206 $ 2,623

 

Key Operating Metrics
For the Three and Nine Months Ended September 30, 2011 and 2010
(Unaudited)
     
   Three Months Ended
 September 30, 
 Nine Months Ended
 September 30, 
   2011   2010   2011   2010 
Average number of transacting ATMs:        
United States: Company-owned (1)   21,288  18,125   19,881   18,178
United Kingdom    3,341  2,878   3,187   2,796
Mexico    2,902  2,916   2,906   2,843
 Subtotal (1)   27,531  23,919   25,974   23,817
United States: Merchant-owned    8,080  8,574   8,192   8,689
Average number of transacting ATMs: ATM operations   35,611  32,493   34,166   32,506
         
United States: Managed services (2)  4,525  3,353   4,191   3,057
United Kingdom: Managed services    21  —   17   —
Average number of transacting ATMs: Managed services  4,546  3,353  4,208  3,057
         
Total average number of transacting ATMs (1)   40,157  35,846   38,374   35,563
         
Total transactions (in thousands):        
ATM operations   136,928  107,163   366,727   306,685
Managed services     7,404  4,727   18,934   12,189
 Total transactions (3)   144,332  111,890   385,661   318,874
         
Total cash withdrawal transactions (in thousands):        
ATM operations    84,237  64,652   225,202   189,302
Managed services   4,832  3,525  12,641  9,385
 Total cash withdrawal transactions (4)   89,069  68,177   237,843   198,687
         
Per ATM per month amounts (excludes managed services):        
Cash withdrawal transactions   788  663   732   647
         
ATM operating revenues  $ 1,447 $ 1,365 $ 1,382 $ 1,327
Cost of ATM operating revenues (5)   948   905   910   892
 ATM operating gross profit  (5) (6)  $ 499  $ 460  $ 472  $ 435
         
ATM operating gross margin  (5) (6)   34.5%  33.7%   34.2%   32.8%
         
Capital expenditures (in thousands) (7) $ 11,663 $ 18,947  $ 37,060  $ 40,501
Capital expenditures, net of noncontrolling interests (in thousands) (7) $ 11,605 $ 18,537  $ 36,959  $ 38,872
         
(1) Includes 2,470 and 823 ATMs from the EDC acquisition for the three and nine months ended September 30, 2011, respectively.        
(2) Includes 2,519 and 2,579 ATMs for the three months ended September 30, 2011 and 2010, respectively, and 2,508 and 2,543 ATMs for the nine months ended September 30, 2011 and 2010, respectively, for which the Company only provided EFT transaction processing services.         
(3) Includes 7,961 total transactions from the EDC acquisition for the three and nine months ended September 30, 2011.        
(4) Includes 5,387 cash withdrawal transactions from the EDC acquisition for the three and nine months ended September 30, 2011.        
(5) Amounts presented exclude the effect of depreciation, accretion, and amortization expense, which is presented separately in the Company's consolidated statements of operations.        
(6) ATM operating gross profit and ATM operating gross margin are measures of profitability that are calculated based on only the revenues and expenses that relate to operating ATMs in the Company's portfolio. Revenues and expenses relating to managed services and ATM equipment sales and other ATM-related services are not included.        
(7) Capital expenditures include amounts financed by direct debt for the nine month period ended September 30, 2010.        

 

Reconciliation of Net Income Attributable to Controlling Interests to Adjusted EBITDA and Adjusted
Net Income
For the Three and Nine Months Ended September 30, 2011 and 2010
(Unaudited)

 
Three Months Ended
 September 30,  
Nine Months Ended
 September 30, 
   2011   2010   2011   2010 
  (In thousands, except share and per share amounts)
Net income attributable to controlling interests  $ 46,885 $ 20,763 $ 62,080 $ 32,931
Adjustments:        
 Interest expense, net   5,243  7,064  14,810  21,696
 Amortization of deferred financing costs and bond discounts  351  546  775  1,818
 Write-off of deferred financing costs and bond discounts  —  7,296  —  7,296
 Redemption costs for early extinguishment of debt  —  7,193  —  7,193
 Income tax benefit   (29,869)  (23,968)  (17,765)  (20,577)
 Depreciation and accretion expense   12,197  10,865  35,004  31,351
 Amortization expense   4,946  3,823  12,240  11,567
EBITDA  $ 39,753 $ 33,582 $ 107,144 $ 93,275
         
Add back:        
 Loss on disposal of assets (1)  117  368  280  1,840
 Other expense (income) (2)  328  (247)  221  (244)
 Noncontrolling interests (3)  (471)  (530)  (1,466)  (1,402)
 Stock-based compensation expense (4)  2,363  1,699  6,968  4,575
 Acquisition-related costs (5)  956  —  1,299  —
Adjusted EBITDA  $ 43,046 $ 34,872 $ 114,446 $ 98,044
Less:        
 Interest expense, net (4)  5,163  6,949  14,528  21,338
 Depreciation and accretion expense (4)  11,818  10,452  33,852  30,315
 Income tax expense (at 35%) (6)  9,123  6,115  23,123  16,237
Adjusted Net Income $ 16,942 $ 11,356 $ 42,943 $ 30,154
         
Adjusted Net Income per share  $ 0.40 $ 0.28 $ 1.02 $ 0.75
Adjusted Net Income per diluted share  $ 0.39 $ 0.28 $ 1.01 $ 0.74
         
Weighted average shares outstanding – basic  42,570,137 40,529,280 42,001,624 40,119,310
Weighted average shares outstanding – diluted  43,195,554 41,207,238 42,727,446 40,790,504
         
(1) Primarily comprised of losses on the disposal of fixed assets that were incurred with the deinstallation of ATMs during the periods. 
(2) Amounts exclude unrealized and realized (gains) losses related to derivatives not designated as hedging instruments.
(3) Noncontrolling interests adjustment made such that Adjusted EBITDA includes only the Company's 51% ownership interest in the Adjusted EBITDA of its Mexico subsidiary.
(4) Amounts exclude 49% of the expenses incurred by the Company's Mexico subsidiary as such amounts are allocable to the noncontrolling interest shareholders.
(5) Acquisition-related costs include non-recurring costs incurred for professional and legal fees and certain transition and integration-related costs, related to the acquisition of EDC, LocatorSearch, and Access to Money.
(6) 35% represents the Company's estimated long-term, cross-jurisdictional effective tax rate.
     
 
Reconciliation of Free Cash Flow
For the Three and Nine Months Ended September 30, 2011 and 2010
(Unaudited)
 
  Three Months Ended
 September 30,  
Nine Months Ended
 September 30, 
   2011   2010   2011   2010 
  (In thousands)
Cash provided by operating activities  $ 38,313 $ 20,392 $ 69,352 $ 72,993
Payments for capital expenditures:        
Cash used in investing activities, excluding acquisitions  (11,663)  (18,947)  (37,060)  (39,959)
Capital expenditures financed by direct debt   —  —  —  (542)
Total payments for capital expenditures    (11,663)  (18,947)  (37,060)  (40,501)
Free cash flow  $ 26,650 $ 1,445 $ 32,292 $ 32,492
 
Reconciliation of Estimated Net Income to EBITDA, Adjusted EBITDA, and Adjusted Net Income
For the Year Ending December 31, 2011
(Unaudited)
 
 
Estimated Range
Full Year 2011
   
   (In millions)
       
Net income  $ 68.5 - $ 70.0
Adjustments:      
 Interest expense, net   20.3 -  20.3
 Amortization of deferred financing costs   1.0 -  1.0
 Income tax benefit   (13.5) -  (13.0)
 Depreciation and accretion expense   47.8 -  47.8
 Amortization expense   18.2 -  18.2
EBITDA  $  142.3 - $ 144.3
       
Add back:      
 Noncontrolling interests   (1.9) -  (1.9)
 Loss on disposal of assets   0.5 -  0.5
 Stock-based compensation expense   9.2 -  9.2
Acquisition-related costs  4.9 - 4.9
Adjusted EBITDA  $ 155.0 - $ 157.0
Less:      
 Interest expense, net (1)  19.9 -  19.9
 Depreciation and accretion expense (1)  46.2 -  46.2
 Income tax expense (at 35%) (2)  31.1 -  31.8
Adjusted Net Income  $ 57.8 - $ 59.1
       
Adjusted Net Income per diluted share  $ 1.35 - $ 1.38
       
Weighted average shares outstanding – diluted   42.9 -  42.9
       
(1) Amounts exclude 49% of the expenses to be incurred by the Company's Mexico subsidiary as such amounts are allocable to the noncontrolling interest shareholders.
(2) 35% represents the Company's estimated long-term, cross-jurisdictional effective tax rate.

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CONTACT: Cardtronics - Media
         Nick Pappathopoulos
         Director - Public Relations
         832-308-4396
         npappathopoulos@cardtronics.com

         Cardtronics - Investors
         Chris Brewster
         Chief Financial Officer
         832-308-4128
         cbrewster@cardtronics.com