Global Cash Access Reports Third Quarter 2012 Results, Raises 2012 Guidance and Announces the Authorization of a New $40.0

  Global Cash Access Reports Third Quarter 2012 Results, Raises 2012 Guidance
  and Announces the Authorization of a New $40.0 Million Share Repurchase
  Program

Business Wire

LAS VEGAS -- November 07, 2012

Global Cash Access Holdings, Inc. (the "Company") (NYSE:GCA) announced today
financial results for the third quarter ended September 30, 2012, raised its
2012 earnings guidance and announced a new $40.0 million share repurchase
program.

Third Quarter 2012 Highlights

  *Operating income increased 92% year-over-year to $14.6 million
  *EBITDA increased 67% year-over-year to $19.0 million
  *Net income per share, on a diluted basis, increased 233% year-over-year to
    $0.10
  *Cash EPS increased 109% year-over-year to $0.23

“We are extremely pleased with the Company’s performance in the third quarter
with Adjusted EBITDA up 56% and Cash EPS up 109% year over year. We continue
to remain focused on enhancing our product pipeline, continuously improving
execution and sales focus in all facets of our business, building the
foundation for international growth and find, foster and execute technology
partnerships and acquisitions to grow and expand the company,” said Scott
Betts, CEO of Global Cash Access. “We are also pleased to announce today the
authorization of a share repurchase program of $40.0 million over the next two
years. Over the past few quarters we have been very focused on strengthening
our balance sheet and believe share repurchases provide another lever to drive
long-term shareholder value.”

Third Quarter 2012 Results

Revenues were $149.8 million for the third quarter 2012, as compared to
revenues of $136.9 million for the same period in 2011. The overall increase
in revenues was primarily due to the MCA asset acquisition. Operating income
was $14.6 million for the third quarter 2012, an increase of 92%, as compared
to $7.6 million for the same period in 2011. Earnings before interest, taxes,
depreciation and amortization ("EBITDA") (see Non-GAAP Financial Information
below) were $19.0 million for the third quarter 2012, an increase of 67%, as
compared to $11.4 million for the same period in 2011. The increase in EBITDA
for the third quarter 2012 was primarily a result of both the October 1, 2011
enactment of the Durbin Amendment and its impact on the interchange rates paid
by the Company on its debit card transactions, as well as the MCA asset
purchase. Adjusted earnings before interest, taxes, depreciation and
amortization ("Adjusted EBITDA") (see Non-GAAP Financial Information below)
were $20.8 million for the third quarter 2012, an increase of 56%, as compared
to $13.3 million for the same period in 2011.

Income before income tax provision was $11.1 million for the third quarter
2012, an increase of 247%, as compared to $3.2 million for the same period in
2011. Diluted earnings per share from continuing operations were $0.10 for the
third quarter 2012 (on 67.6 million diluted shares), as compared to $0.03 for
the same period in 2011 (on 64.8 million diluted shares). Cash EPS (see
Non-GAAP Financial Information below) was $0.23 for the third quarter 2012, an
increase of 109%, from the $0.11 for the same period in 2011.

2012 Outlook

The Company increases its prior outlook for the fiscal year ending December
31, 2012, as Cash EPS is expected to be between approximately $0.81 and $0.84
(on diluted shares of approximately 67.5 million), up from its previous
guidance of between $0.76 and $0.82, and Adjusted EBITDA is expected to be
between approximately $77.0 million and $80.0 million, up from its previous
guidance of between $73.0 million and $77.0 million. The Company’s estimate
for expected capital expenditures remains unchanged at between $9.0 million
and $12.0 million.

Share Repurchase Program

The Board of Directors has authorized and approved a new share repurchase
program granting the Company the authority to repurchase up to $40.0 million
of outstanding Company common stock over a two year period, which is expected
to commence in the first quarter of 2013. The Company intends to finance the
share repurchases with cash on hand. The repurchase program authorizes the
Company to buy its common stock from time to time through open market,
privately negotiated or other transactions, including pursuant to trading
plans established in accordance with Rules 10b5-1 and 10b-18 of the Securities
Exchange Act of 1934, as amended, or by a combination of such methods. The
share repurchase program is subject to prevailing market conditions and other
considerations and may be suspended or discontinued at any time, and
supersedes all other outstanding share repurchase programs of the Company.

Investor Conference Call and Webcast

The Company will host an investor conference call to discuss its results for
the three and nine months ended September 30, 2012 today at 5:00 p.m. ET. The
conference call can be accessed live over the phone by dialing (877) 941-4774
or for international callers by dialing (480) 629-9760. A replay will be
available at 8:00 p.m. ET and can be accessed by dialing (877) 870-5176 or
(858) 384-5517 for international callers; the PIN is 4570843. The replay will
be available until November 14, 2012. The call will be webcast live from the
Company’s website at www.gcainc.com under the Investor Relations section.

Non-GAAP Financial Information

In order to enhance investor understanding of the underlying trends in our
business and to provide for better comparability between periods in different
years, the Company is providing EBITDA, Adjusted EBITDA, Cash Earnings and
Cash EPS on a supplemental basis. Reconciliations between GAAP measures and
Non-GAAP measures and between actual results and adjusted results are provided
at the end of this press release. EBITDA, Adjusted EBITDA, Cash Earnings and
Cash EPS are not measures of financial performance under United States
Generally Accepted Accounting Principles ("GAAP"). Accordingly, they should
not be considered a substitute for net income, operating income, basic or
diluted earnings per share or cash flow data prepared in accordance with GAAP.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995.
All statements included in this press release, other than statements that are
purely historical, are forward-looking statements. Words such as "going
forward," "believes," "intends," "expects," "forecasts," "anticipate," "plan,"
"seek," "estimate" and similar expressions also identify forward-looking
statements. Forward-looking statements in this press release include, without
limitation: (a) our estimates of 2012 Cash EPS, diluted shares and Adjusted
EBITDA and the assumptions upon which they are based; (b) our assumption that
there will continue to be a modest improvement in the gaming industry for
remainder of 2012; (c) our assumption for 2012 that cash outlays for capital
expenditures are expected to be between approximately $9.0 million to $12.0
million; and (d) our belief that EBITDA, Adjusted EBITDA and Cash EPS are
widely-referenced financial measures in the financial markets and our belief
that references to the foregoing are helpful to investors.

These forward-looking statements are subject to risks and uncertainties that
could cause actual results to differ materially from those projected or
assumed, including but not limited to the following: the timing and the extent
of a recovery in the gaming industry, if any; our ability to enter into a
definitive and binding agreement with Live Gamer on commercially reasonable
terms, or at all; gaming establishment and patron preferences; national and
international economic conditions; changes in gaming regulatory, card
association and statutory requirements; regulatory and licensing difficulties;
competitive pressures; operational limitations; gaming market contraction;
changes to tax laws; uncertainty of litigation outcomes; interest rate
fluctuations; inaccuracies in underlying operating assumptions; unanticipated
expenses or capital needs; technological obsolescence; and employee turnover.
If any of these assumptions prove to be incorrect, the results contemplated by
the forward-looking statements regarding our future results of operations are
unlikely to be realized.

The forward-looking statements in this press release are subject to additional
risks and uncertainties set forth under the heading "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" in our filings with the Securities and Exchange Commission,
including, without limitation, our Annual Report filed on Form 10-K on March
12, 2012, and are based on information available to us on the date hereof. We
do not intend, and assume no obligation, to update any forward-looking
statements. Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date of this press
release.

About Global Cash Access Holdings, Inc.

Las Vegas-based Global Cash Access, Inc. ("GCA"), a wholly owned subsidiary of
Global Cash Access Holdings, Inc., is a leading provider of cash access
products and related services to over 1,000 casinos and other gaming
properties in the United States, Europe, Canada, the Caribbean, Central
America and Asia. GCA's products and services provide gaming patrons access to
cash through a variety of methods, including ATM cash withdrawals,
point-of-sale debit card transactions, credit card transactions, check
verification and warranty services, and Western Union money transfers. Through
Western Money Systems, a wholly owned subsidiary, GCA is a leading
manufacturer and distributor of cash handling devices and related software.
GCA also provides products and services that improve credit decision-making,
automate cashier operations and enhance patron marketing activities for gaming
establishments. With its proprietary database of gaming patron credit history
and transaction data on millions of gaming patrons worldwide, GCA is
recognized for successfully developing and deploying technological innovations
that increase client profitability, operational efficiency and customer
loyalty. More information is available at GCA's website at www.gcainc.com.

GLOBAL CASH ACCESS HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except par value)
(unaudited)
                                                             
                                                September 30,     December 31,
                                                2012              2011
ASSETS
                                                                  
Cash and cash equivalents                       $  46,940         $ 55,535
Restricted cash and cash equivalents               200              455
Settlement receivables                             113,989          80,246
Other receivables, net                             10,076           16,885
Inventory                                          7,266            7,087
Prepaid expenses and other assets                  16,564           15,406
Property, equipment and leasehold                  14,357           15,577
improvements, net
Goodwill, net                                      180,152          180,122
Other intangible assets, net                       33,327           38,216
Deferred income taxes, net                         106,484          119,538
                                                                 
Total assets                                    $  529,355       $ 529,067  
                                                                  
LIABILITIES AND STOCKHOLDERS' EQUITY
                                                                  
Liabilities:
Settlement liabilities                          $  158,438        $ 141,827
Accounts payable                                   34,809           32,223
Accrued expenses                                   18,608           21,159
Borrowings                                         126,500          174,000
                                                                 
Total liabilities                                 338,355        369,209  
                                                                  
COMMITMENTS AND CONTINGENCIES
                                                                  
Stockholders' Equity:
Common stock, $0.001 par value, 500,000
shares authorized and 87,375 and 85,651            87               86
shares issued at September 30, 2012 and
December 31, 2011, respectively
Convertible preferred stock, $0.001 par
value, 50,000 shares authorized and 0              -                -
shares outstanding at September 30, 2012
and December 31, 2011, respectively
Additional paid-in capital                         214,612          204,735
Retained earnings                                  119,216          97,925
Accumulated other comprehensive income             2,504            2,340
Treasury stock, at cost, 20,714 and 20,686
shares at September 30, 2012 and December          (145,419 )       (145,228 )
31, 2011, respectively
                                                                 
Total stockholders' equity                        191,000        159,858  
                                                                  
Total liabilities and stockholders' equity      $  529,355       $ 529,067  
                                                                             

GLOBAL CASH ACCESS HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(amounts in thousands, except per share)
(unaudited)
                                                  
                  Three Months Ended September 30,   Nine Months Ended
                                                     September 30,
                  2012             2011             2012         2011
Revenues
                                                                   
Cash advance      $  57,520         $  50,913        $ 172,557     $ 152,036
ATM                  76,411            71,044          233,361       213,450
Check services       6,611             6,479           19,731        19,813
Other revenues      9,282           8,452         22,705      21,031  
                                                                   
Total revenues       149,824           136,888         448,354       406,330
                                                                   
Cost of              111,373           106,953         333,566       317,900
revenues
Operating            19,463            18,529          55,910        51,922
expenses
Amortization         2,650             1,929           7,317         6,250
Depreciation        1,695           1,867         5,260       6,201   
                                                                   
Operating            14,643            7,610           46,301        24,057
income
                                                                   
Interest
expense, net of      3,586             4,414           12,133        14,167
interest income
Loss on early
extinguishment      -               -             -           943     
of debt
                                                                   
Interest            3,586           4,414         12,133      15,110  
expense, net
                                                                   
Income before
income tax           11,057            3,196           34,168        8,947
provision
                                                                   
Income tax          3,977           1,356         12,878      4,356   
provision
                                                                   
Net income          7,080           1,840         21,290      4,591   
                                                                   
Foreign
currency            236             (218     )     164         (191    )
translation
                                                                   
Comprehensive     $  7,316         $  1,622        $ 21,454     $ 4,400   
income
                                                                   
Basic earnings
per share:
Net income per    $  0.11          $  0.03         $ 0.32       $ 0.07    
share - basic
                                                                   
Diluted
earnings per
share:
Net income per    $  0.10          $  0.03         $ 0.32       $ 0.07    
share - diluted
                                                                   
Weighted
average number
of common
shares
outstanding:
Basic               66,108          64,712        65,673      64,597  
Diluted             67,601          64,751        67,031      64,708  
                                                                             

GLOBAL CASH ACCESS HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(amounts in thousands)
(unaudited)

                                             Nine Months Ended September 30,
                                               2012             2011
                                                                  
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                     $  21,290          $ 4,591
Adjustments to reconcile net income to
cash provided by operating activities:
Amortization of financing costs                   1,081             988
Amortization of intangibles                       7,317             6,250
Depreciation                                      5,260             6,201
Loss on sale or disposal of assets                112               216
Provision for bad debts                           2,586             4,016
Loss on early extinguishment of debt              -                 943
Stock-based compensation                          3,951             5,238
Changes in operating assets and
liabilities:
Settlement receivables                            (33,676  )        10,266
Other receivables, net                            5,682             (829     )
Inventory                                         (6       )        (2,575   )
Prepaid and other assets                          (1,329   )        (3,477   )
Deferred income taxes                             12,556            4,092
Settlement liabilities                            16,509            (12,221  )
Accounts payable                                  2,582             505
Accrued expenses                                  (2,496   )        (4,030   )
                                                                 
Net cash provided by operating activities        41,419          20,174   
                                                                  
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, equipment, leasehold        (7,353   )        (6,227   )
improvements and other intangibles
Proceeds from sale of fixed assets                448               -
Changes in restricted cash and cash               255               (14      )
equivalents
                                                                 
Net cash used in investing activities            (6,650   )       (6,241   )
                                                                  
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments against old credit facility            -                 (208,750 )
Securing of new credit facility                   -                 214,000
Issuance costs of new credit facility             (676     )        (7,099   )
Repayments against new credit facility            (47,500  )        (35,000  )
Proceeds from exercise of stock options           5,946             591
Purchase of treasury stock                        (191     )        (156     )
                                                                 
Net cash used in financing activities            (42,421  )       (36,414  )
                                                                  
NET EFFECT OF EXCHANGE RATE CHANGES ON           (943     )       191      
CASH AND CASH EQUIVALENTS
                                                                  
NET DECREASE IN CASH AND CASH EQUIVALENTS         (8,595   )        (22,290  )
                                                                  
CASH AND CASH EQUIVALENTS - Beginning of         55,535          60,636   
Period
                                                                  
CASH AND CASH EQUIVALENTS - End of Period      $  46,940         $ 38,346   
                                                                  
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
                                                                  
Cash paid for interest                         $  11,402         $ 15,202   
Cash paid for taxes, net of refunds            $  267            $ 336      
                                                                             

GLOBAL CASH ACCESS HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME TO CASH EARNINGS
AND OPERATING INCOME TO EBITDA AND ADJUSTED EBITDA
(unaudited)
                                                   
                           Three months ended          Nine months ended
                           September 30,               September 30,
                           2012         2011          2012         2011
Reconciliation of net
income to cash earnings
(amounts in thousands,
except earnings per
share amounts)
                                                                     
Net income                 $  7,080      $  1,840      $  21,290     $  4,591
Equity compensation           1,842         1,902         3,951         5,238
expense
Deferred income tax           3,878         1,337         12,556        4,092
Amortization                  2,650         1,929         7,317         6,250
                                                                  
Cash earnings              $  15,450     $  7,008      $  45,114     $  20,171
                                                                     
Diluted weighted
average number of             67,601        64,751        67,031        64,708
common shares
outstanding
                                                                     
Diluted cash earnings
per share ("Cash           $  0.23       $  0.11       $  0.67       $  0.31
EPS")^1
                                                                     
Reconciliation of
operating income to
EBITDA and Adjusted
EBITDA
Operating income           $  14,643     $  7,610      $  46,301     $  24,057
Plus: depreciation and        4,345         3,796         12,577        12,451
amortization
                                                                  
EBITDA                     $  18,988     $  11,406     $  58,878     $  36,508
                                                                     
Equity compensation           1,842         1,902         3,951         5,238
expense
                                                                  
Adjusted EBITDA            $  20,830     $  13,308     $  62,829     $  41,746
                                                                     
Notes:
1. For the nine months ended September 30, 2011, there were approximately $4.2
million of non-recurring expenses that impacted Cash EPS by approximately
$0.06.


GLOBAL CASH ACCESS HOLDINGS, INC. AND SUBSIDIARIES
SELECTED SEGMENT INFORMATION AND OTHER DATA
(unaudited)
(amounts in thousands, unless otherwise noted)
                                                                       
              Cash                        Check
              Advance       ATM           Services     Other        Corporate       Total
                                                                                    
Three
Months
Ended
September
30, 2012
Revenues      $ 57,520      $ 76,411      $ 6,611      $ 9,282      $ -             $ 149,824
Operating       15,785        7,951         3,822        4,673        (17,588 )       14,643
income
                                                                                    
Three
Months
Ended
September
30, 2011
Revenues      $ 50,913      $ 71,044      $ 6,479      $ 8,452      $ -             $ 136,888
Operating       7,789         8,659         3,579        4,393        (16,810 )       7,610
income
                                                                                    
Nine
Months
Ended
September
30, 2012
Revenues      $ 172,557     $ 233,361     $ 19,731     $ 22,705     $ -             $ 448,354
Operating       48,388        25,620        11,017       11,563       (50,287 )       46,301
income
                                                                                    
Nine
Months
Ended
September
30, 2011
Revenues      $ 152,036     $ 213,450     $ 19,813     $ 21,031     $ -             $ 406,330
Operating       23,375        27,157        11,168       10,029       (47,672 )       24,057
income
                                                                                      

                       Three Months Ended              Nine Months Ended
                       September 30,  September 30,     September  September
                       2012            2011              30, 2012    30, 2011
                       $               $                 $           $
Other data
(unaudited):
Aggregate dollar
amount processed (in
billions):
Cash advance           $     1.2       $     1.1         $   3.6     $   3.2
ATM                    $     3.4       $     3.0         $   10.5    $   9.2
Check warranty         $     0.3       $     0.3         $   0.9     $   0.9
Number of transactions
completed (in
millions):
Cash advance                 2.3             2.1             6.9         6.3
ATM                          18.1            17.0            56.0        52.0
Check warranty               1.1             1.1             3.3         3.3
                                                                         

Contact:

ICR
Investor Relations
Don Duffy, 203-682-8215
IR@gcamail.com
or
Media Relations
Liz Brady, 646-277-1226
lbrady@icrinc.com
 
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