Source: Cardtronics
Cardtronics, Inc. (NasdaqGM:CATM), the world's largest owner and operator of ATMs, today announced its financial and operational results for the quarter ended December 31, 2007.
Highlights for the fourth quarter include:
Consolidated revenues of $116.0 million, up 55% from the fourth quarter of 2006Adjusted EBITDA of $18.3 million, up 32% from the fourth quarter of 2006Significant improvements in key operating metrics versus the fourth quarter of 2006:- Average number of transacting ATMs increased by 25%
- Withdrawal transactions per ATM per month increased by 33%
- ATM operating gross profit per ATM per month increased by 18%
Completion of the Company's initial public offering of 12 million shares of its common stock for $110.1 million of net proceeds, which were used to pay down debt previously outstanding under the Company's revolving credit facilitySignificant international expansion, including net growth during the quarter of 240 machines, or 13%, in the United Kingdom, and 315 machines, or 31%, in Mexico
A significant factor in comparing Cardtronics' fourth quarter 2007 results with its fourth quarter 2006 results is the Company's acquisition of the financial services business of 7-Eleven, Inc. (the ``7-Eleven ATM Transaction''), the results of which have been included in the Company's consolidated financial statements beginning on July 20, 2007.
"2007 was a year of major accomplishments for Cardtronics," remarked Jack Antonini, President and Chief Executive Officer. "In July, we completed our largest acquisition to date, acquiring the ATM and advanced-functionality business of 7-Eleven, and in December, we completed the initial public offering of our common stock. In addition, we continued to make substantial progress on a number of our key strategic initiatives, including the significant expansion of our presence in both the United Kingdom and Mexico, the signing of bank branding agreements covering 1,900 of our domestic ATMs, and the conversion of over 13,000 of our ATMs to our in-house transaction processing switch."
FOURTH QUARTER RESULTS
For the fourth quarter of 2007, revenues totaled $116.0 million, representing a 55% increase over the $74.8 million in revenues recorded during the fourth quarter of 2006. This year-over-year increase was primarily attributable to the 7-Eleven ATM Transaction, which resulted in $36.1 million of incremental revenues during the fourth quarter of 2007.
Adjusted EBITDA totaled $18.3 million for the fourth quarter of 2007 compared to $13.9 million for the fourth quarter of 2006. This 32% increase was primarily attributable to the 7-Eleven ATM Transaction. Adjusted Net Income decreased to $0.6 million ($0.02 per share) from the $2.2 million ($0.10 per share) earned during the fourth quarter of 2006. The year-over-year decrease was primarily the result of incremental cash interest associated with higher debt levels during 2007, incremental depreciation expense due to the increase in the number of machines in the Company's portfolio, and $2.9 million of losses related to the Company's advanced-functionality operations. Specific costs excluded from Adjusted EBITDA and Adjusted Net Income are detailed in a reconciliation included at the end of this press release.
The GAAP net loss for the fourth quarter totaled $7.4 million, reflecting the additional expense amounts discussed above as well as incremental costs incurred to support key initiatives, including the Company's in-house processing conversion efforts and Triple-DES upgrades. The net loss for the quarter also includes a $1.4 million income tax charge associated with valuation allowances against the Company's various deferred tax assets. The $43.5 million net loss available to common shareholders for the fourth quarter of 2007 reflects a one-time, non-cash charge of $36.0 million related to the conversion of the Company's Series B redeemable convertible preferred stock into shares of its common stock in conjunction with the Company's initial public offering. This charge will not recur in the future.
FULL YEAR RESULTS
Revenues totaled $378.3 million for the year ended December 31, 2007, representing a 29% increase over the $293.6 million in revenues recorded during 2006. As was the case with the Company's quarterly results, the year-over-year increase in revenues was primarily attributable to the acquired financial services business of 7-Eleven.
Adjusted EBITDA totaled $60.9 million for the year, representing a 15% increase over the $52.9 million in Adjusted EBITDA for 2006. The year-to-date increase was primarily attributable to the 7-Eleven ATM Transaction. Adjusted Net Income totaled $3.0 million ($0.11 per share) for 2007, which was lower than the $7.3 million ($0.32 per share) generated in 2006. This decrease was attributable to incremental cash interest and depreciation expense during 2007, as well as $5.0 million of losses from the Company's advanced-functionality operations.
The GAAP net loss for the year ended December 31, 2007 totaled $27.1 million, reflecting the additional interest and depreciation expense discussed above as well as the incremental costs associated with the Company's in-house processing conversion efforts and Triple-DES upgrades. The year-to-date 2007 net loss also includes $5.7 million (pre-tax) of impairment charges taken during 2007, the majority of which served to write-off the remaining unamortized intangible asset value associated with a single merchant contract acquired in 2004, and an income tax charge of $4.8 million related to valuation allowances against deferred tax assets. The $63.4 million net loss available to common shareholders for the year ended December 31, 2007, reflects, as mentioned above, a one-time, non-cash charge of $36.0 million related to the conversion of the Company's Series B redeemable convertible preferred stock into shares of its common stock as part of the Company's initial public offering,
2008 GUIDANCE
Below is the Company's financial guidance for fiscal year 2008.Revenues of $480.0 million to $505.0 million,Overall gross margins of around 24.5%,Adjusted EBITDA of $86.0 million to $90.0 million,Depreciation and accretion expense of $38.0 million to $39.0 million,Interest expense of $29.0 million to $30.0 million,Adjusted net income of $0.30 to $0.35 per diluted share, based on a range of 39.5 million to 40.0 million shares outstanding, andCapital expenditures of $48.0 million to $50.0 million, net of minority interest.
These amounts include the estimated revenues and losses associated with the Company's advanced-functionality operations. The Company anticipates that pre-tax losses from these operations will be in the range of $3.0 million to $5.0 million for 2008, and that such operations will achieve breakeven results during the second half of 2008. Additionally, the guidance excludes the impact of certain one-time items as well as anticipated stock-based compensation expense and approximately $17.5 million of intangible asset amortization expense.
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