Cardtronics Announces First Quarter 2013 Results

Cardtronics Announces First Quarter 2013 Results

HOUSTON, May 2, 2013 (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 March 31, 2013.

Key financial statistics in the first quarter of 2013 as compared to the first
quarter of 2012 include:

  *Total revenues of $197.7 million, up 4% from $191.0 million.
  *ATM operating revenues of $193.4 million, up 9% from $177.8 million (7.3%
    on an organic growth basis).
  *Adjusted Net Income per diluted share of $0.40, up 5% from $0.38.
  *Adjusted EBITDA of $48.5 million, up 9% from $44.5 million.
  *Gross margin of 32.4%, up 170 basis points from 30.7%.
  *GAAP net income of $9.4 million or $0.21 per diluted share, compared to
    $9.8 million or $0.22 per diluted share.

"We enjoyed our seventeenth consecutive quarter of year-over-year growth in
adjusted net income per share as we continued to effectively manage costs
through our industry-leading operations and significant scale," commented
Steve Rathgaber, chief executive officer. "To continue this impressive track
record of earnings growth throughout 2013 and beyond, we continue to make
investments in our network and products, and the acquisition of i-design
during the first quarter is a great example of our continued dedication to
grow our product offering and enhance the value we provide to our premier
retail and financial customer bases."

RECENT HIGHLIGHTS

  *Acquisition of i-design group plc on March 7, 2013, a Scotland-based
    provider and developer of marketing and advertising software and services
    for ATM owners.
  *Expansion of bank branding relationship with Scotiabank, through the
    branding of 500 existing Cardtronics ATMs in Mexico.
  *The announcement of a new branding agreement with Frost Bank for ATM
    locations at Dallas Love Field airport.
  *Growth of Allpoint network to 55,000 surcharge-free ATMs worldwide.
  *Bank branding by Bank of America of approximately 40 ATMs placed in Kroger
    and Randall'sgrocery storesin the Houston metropolitan area.
  *The announcement of the addition of approximately 3,300 mostly
    merchant-owned ATM service contracts through the acquisition of certain
    assets from Aptus Financial.

Effects of foreign currency exchange rate movements had an insignificant
impact on reported consolidated 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 press 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 press release.

FIRST QUARTER RESULTS

ATM operating revenues were up 9% from the first quarter of 2012. The increase
in ATM operating revenues was primarily the result of an increased unit count
as a result of organic growth with new and existing merchants. Additionally,
our bank branding and network branding revenues increased significantly from
the prior year quarter, driven mostly by new branded locations. These
increases were partly offset by lower interchange rates per transaction as a
result of rate reductions by a major network that became effective during the
second quarter of 2012 and transaction volume shifts to networks that pay
lower interchange rates. Approximately 1.5% of revenue growth in the quarter
was driven by businesses acquired during 2012 and in the first quarter of
2013. Consolidated revenues totaled $197.7 million for the first quarter of
2013, representing a 3.5% increase from the $191.0 million in consolidated
revenues generated during the first quarter of 2012. The year-over-year
consolidated revenue growth is attributable to the same factors discussed
above but reduced by a significant decline in our year-over-year ATM product
sales, which were down approximately $8.8 million from the first quarter of
2012. The year-over-year decline in ATM product sales is attributable to
decreased equipment sales associated with updated requirements under the
Americans with Disabilities Act (ADA) which became effective in the first
quarter of 2012, which caused increased demand for new ATM equipment leading
up to the first quarter 2012 deadline. As the ATM product sales are generally
much lower margin revenues than our ATM operating revenues, the $8.8 million
revenue decline from the first quarter of 2012 did not have a significant
impact in our profitability in the current quarter's results.

Adjusted EBITDA for the first quarter of 2013 totaled $48.5 million, compared
to $44.5 million during the first quarter of 2012, and Adjusted Net Income
totaled $18.0 million ($0.40 per diluted share) compared to $16.8 million
($0.38 per diluted share) during the first quarter of 2012. The increases in
Adjusted EBITDA and Adjusted Net Income per diluted share were positively
affected by the incremental revenues attributable to our revenue growth and
reductions in our operating costs on a per transaction basis. 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 first quarter of 2013 totaled $9.4 million, compared
to $9.8 million during the same quarter in 2012. The slight decrease in GAAP
Net Income from the first quarter of 2012 was the result of higher
depreciation and acquisition-related expenses, as well as increased
stock-based compensation expense, which was mostly offset by a higher gross
margin as a result of our revenue growth.

UPDATE OF FULL-YEAR 2013 GUIDANCE

The Company is reconfirming the financial guidance it provided in February
2013 regarding its anticipated full-year 2013 results:

  oRevenues of $835.0 million to $850.0 million;
  oOverall gross margins of approximately 32.0% to 32.3%;
  oAdjusted EBITDA of $202.0 million to $209.0 million;
  oDepreciation and accretion expense of approximately $64.0 million to $65.5
    million, net of noncontrolling interests;
  oCash interest expense of approximately $20.0 million to $20.5 million, net
    of noncontrolling interests;
  oAdjusted Net Income of $1.72 to $1.79 per diluted share, based on
    approximately 44.7 million weighted average diluted shares outstanding;
    and
  oCapital expenditures of approximately $70.0 million, net of noncontrolling
    interests.

The Adjusted EBITDA and Adjusted Net Income guidance excludes the impact of
certain expenses, as outlined in the reconciliation provided at the end of
this press release. Additionally, this guidance is based on average foreign
currency exchange rates for the remainder of the year of $1.50 U.S. to £1.00
U.K., $13.00 Mexican pesos to $1.00 U.S., and $1.00 Canadian dollar to $1.00
U.S.

LIQUIDITY

The Company believes that it continues to maintain a strong liquidity
position, with $96.5 million in available borrowing capacity under its $250.0
million revolving credit facility as of March 31, 2013. In addition, the
Company's credit facility can be increased up to $325.0 million under certain
conditions. The Company's outstanding indebtedness as of March 31, 2013
consisted of $200.0 million in senior subordinated notes due 2018, $151.4
million in borrowings under its revolving credit facility due 2016, and $2.6
million in equipment financing notes associated with its majority-owned Mexico
subsidiary.

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 also excludes acquisition-related costs, certain other
non-operating costs, loss on asset disposal, our obligations for the payment
of income taxes, interest expense or other obligations such as capital
expenditures, and an adjustment for noncontrolling interest. Adjusted Net
Income represents net income computed in accordance with GAAP, before
amortization expense, loss on disposal of assets, stock-based compensation
expense and certain other expense (income) and acquisition-related costs, and
using an assumed 35% tax rate, with certain adjustments for noncontrolling
interests. 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, Thursday, May 2, 2013, at 4:00
p.m. Central Time (5:00 p.m. Eastern Time) to discuss its financial results
for the quarter ended March 31, 2013. 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 First 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 Thursday,
May 16, 2013, and can be accessed by calling (855) 859-2056 or (404) 537-3406
and entering 35990860 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 June 2, 2013.

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
approximately 62,600 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.

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 press 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. 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;
  *the Company's ability to respond to potential reductions in the amount of
    net interchange fees that it receives from global and regional debit
    networks for transactions conducted on its ATMs due to pricing changes
    implemented by those networks as well as changes in how issuers route
    their ATM transactions over those networks;
  *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;
  *the additional risks the Company is exposed to in its United Kingdom
    armored transport business; and
  *the Company's ability to retain its key employees.

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 Months Ended March 31, 2013 and 2012
(Unaudited)
                                                           
                                          Three Months Ended March 31,
                                          2013              2012
                                          (In thousands, except share and per
                                           share information)
Revenues:                                                   
ATM operating revenues                     $193,360        $177,813
ATM product sales and other revenues       4,378             13,227
Total revenues                             197,738           191,040
Cost of revenues:                                           
Cost of ATM operating revenues (excludes
depreciation, accretion, and amortization  129,560           120,627
shown separately below)
Cost of ATM product sales and other        4,129             11,781
revenues
Total cost of revenues                     133,689           132,408
Gross profit                               64,049            58,632
Operating expenses:                                         
Selling, general, and administrative       18,989            16,075
expenses
Acquisition-related expenses               2,822             1,087
Depreciation and accretion expense         16,285            13,750
Amortization expense                       5,748             5,475
Loss on disposal of assets                 203               548
Total operating expenses                   44,047            36,935
Income from operations                     20,002            21,697
Other expense (income):                                     
Interest expense, net                      5,066             5,365
Amortization of deferred financing costs   229               220
Other income                               (421)             (77)
Total other expense                        4,874             5,508
Income before income taxes                 15,128            16,189
Income tax expense                         5,980             6,146
Net income                                 9,148             10,043
Net (loss) income attributable to          (282)             214
noncontrolling interests
Net income attributable to controlling
interests and available to common          $9,430          $9,829
stockholders
                                                           
Net income per common share – basic and    $0.21           $0.22
diluted
                                                           
Weighted average shares outstanding –      44,247,098        43,058,215
basic
Weighted average shares outstanding –      44,479,366        43,562,618
diluted


Condensed Consolidated Balance Sheets
As of March 31, 2013 and December 31, 2012
                                                           
                                             March 31, 2013 December 31, 2012
                                             (Unaudited)    
                                             (In thousands)
Assets                                                      
Current assets:                                             
Cash and cash equivalents                    $26,126      $13,861
Accounts and notes receivable, net           49,704         45,135
Inventory                                    4,200          4,389
Restricted cash, short-term                  3,936          8,298
Current portion of deferred tax asset, net   13,271         13,086
Prepaid expenses, deferred costs, and other   15,587         30,980
current assets
Total current assets                         112,824        115,749
Property and equipment, net                  226,357        236,238
Intangible assets, net                       101,719        102,573
Goodwill                                     293,042        285,696
Deferred tax asset, net                      21,340         26,468
Prepaid expenses, deferred costs, and other   2,897          2,168
assets
Total assets                                 $ 758,179      $ 768,892
                                                           
Liabilities and Stockholders' Equity                        
Current liabilities:                                        
Current portion of long-term debt and notes   $1,582       $1,467
payable
Current portion of other long-term            25,547         24,386
liabilities
Accounts payable and other accrued and        93,792         102,884
current liabilities
Total current liabilities                    120,921        128,737
Long-term liabilities:                                      
Long-term debt                               352,407        353,352
Asset retirement obligations                 39,211         44,696
Deferred tax liability, net                   177            182
Other long-term liabilities                  82,213         93,121
Total liabilities                            594,929        620,088
Stockholders' equity                         163,250        148,804
Total liabilities and stockholders' equity   $758,179     $768,892


SELECTED INCOME STATEMENT DETAIL:
                                                            
Total revenues by segment:
                                                            
                                           Three Months Ended March 31,
                                           2013              2012
                                           (In thousands)
                                                            
United States                               $157,139        $157,919
United Kingdom                              29,499            25,191
Other International                         11,100            7,930
Total revenues                              $197,738        $191,040
                                                            
Breakout of ATM operating revenues:
                                                            
                                           Three Months Ended March 31,
                                           2013              2012
                                           (In thousands)
                                                            
Surcharge revenues                          $88,740         $83,897
Interchange revenues                        61,789            57,846
Bank branding and surcharge-free network    34,119            28,269
revenues
Managed services revenues                   4,459             3,810
Other revenues                              4,253             3,991
Total ATM operating revenues                $193,360        $177,813
                                                            
Total cost of revenues by segment:
                                                            
                                           Three Months Ended March 31,
                                           2013              2012
                                           (In thousands)
                                                            
United States                               $101,031        $106,191
United Kingdom                              23,420            20,208
Other International                         9,238             6,009
Total cost of revenues                      $133,689        $132,408
                                                            
Breakout of cost of ATM operating revenues (exclusive of depreciation,
accretion, and amortization):
                                                            
                                           Three Months Ended March 31,
                                           2013              2012
                                           (In thousands)
                                                            
Merchant commissions                        $62,363         $57,322
Vault cash rental expense                   11,937            12,424
Other costs of cash                         18,881            16,379
Repairs and maintenance                     12,094            13,503
Communications                              5,637             4,960
Transaction processing                      2,088             1,853
Stock-based compensation                    207               203
Other expenses                              16,353            13,983
Total cost of ATM operating revenues        $129,560        $120,627


Breakout of selling, general, and administrative expenses:
                                                           
                                             Three Months Ended March 31,
                                             2013           2012
                                             (In thousands)
                                                           
Employee costs                               $9,518       $8,492
Stock-based compensation                     2,960          2,357
Professional fees                            2,145          1,896
Other                                        4,366          3,330
Total selling, general, and administrative    $18,989      $16,075
expenses
                                                           
Depreciation and accretion expense by segment:
                                                           
                                             Three Months Ended March 31,
                                             2013           2012
                                             (In thousands)
                                                           
United States                                 $10,042      $8,502
United Kingdom                                5,076          4,465
Other International                           1,167          783
Total depreciation and accretion expense      $16,285      $13,750
                                                           
SELECTED BALANCE SHEET DETAIL:
                                                           
Long-term debt:
                                                           
                                             March 31, 2013 December 31, 2012
                                             (In thousands)
8.25% senior subordinated notes              $200,000     $200,000
Revolving credit facility                    151,400        152,000
Equipment financing notes                    2,589          2,819
Total long-term debt                         $353,989     $354,819
                                                           
Share count rollforward:
                                                           
Total shares outstanding as of December 31,                 44,641,224
2012
Shares repurchased                                         (147,036)
Shares issued – restricted stock grants and                 111,836
conversions and stock options exercised
Shares vested – restricted stock units                      261,000
Shares forfeited – restricted stock awards                  (10,000)
Total shares outstanding as of March 31, 2013               44,857,024


SELECTED CASH FLOW DETAIL:
                                                              
Selected cash flow statement amounts:
                                                              
                                                Three Months Ended March 31,
                                                2013           2012
                                                (In thousands)
                                                              
Cash provided by operating activities            $41,380      $18,741
Cash used in investing activities                (28,524)       (21,936)
Cash (used in) provided by financing activities  (810)          3,876
Effect of exchange rate changes on cash          219            (44)
Net increase in cash and cash equivalents        12,265         637
Cash and cash equivalents at beginning of period 13,861         5,576
Cash and cash equivalents at end of period       $26,126      $6,213


Key Operating Metrics – Excluding Acquisitions in All Periods Presented
For the Three Months Ended March 31, 2013 and 2012
(Unaudited)
                                                          
The following table excludes the effect of acquisitions completed during 2012
in the three month period ended March 31, 2013 for comparative purposes :
                                                          
EXCLUDING ACQUISITIONS                                     
                                       Three Months Ended March 31,
                                       2013                2012
Average number of transacting ATMs:                        
United States: Company-owned           27,529              24,859
United Kingdom                         4,314               3,628
Mexico                                 2,705               2,843
Canada                                  1,036               514
Subtotal                               35,584              31,844
United States: Merchant-owned          14,024              15,798
Average number of transacting ATMs: ATM 49,608              47,642
operations
                                                          
United States: Managed services ^(1)    6,106               5,797
United Kingdom: Managed services       21                  21
Canada: Managed services               —                  —
Average number of transacting ATMs:     6,127               5,818
Managed services
                                                          
Total average number of transacting     55,735              53,460
ATMs
                                                          
Total transactions (in thousands):                         
ATM operations                         186,547             158,885
Managed services                       9,995               9,451
Total transactions                     196,542             168,336
                                                          
Total cash withdrawal transactions (in                     
thousands):
ATM operations                         114,303             100,886
Managed services                       6,342               6,082
Total cash withdrawal transactions     120,645             106,968
                                                          
Per ATM per month amounts (excludes                        
managed services):
Cash withdrawal transactions           768                 706
                                                          
ATM operating revenues                 $1,252            $1,217
Cost of ATM operating revenues ^ (2)    842                 822
ATM operating gross profit ^(2) (3)    $410              $395
                                                          
ATM operating gross profit margin ^(2) 32.7%               32.5%
(3)
___________________                                         
                                                          
^(1)^ Includes 2,789 and 2,603 ATMs for the three months ended March 31, 2013
and 2012, respectively, for which the Company only provided EFT transaction
processing services.
^(2)^ Amounts presented exclude the effect of depreciation, accretion, and
amortization expense, which is presented separately in the Company's
consolidated statements of operations.
^(3)^ ATM operating gross profit and ATM operating gross profit 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.


Key Operating Metrics – Including Acquisitions in All Periods Presented
For the Three Months Ended March 31, 2013 and 2012
(Unaudited)
                                                           
                                                           
                                                           
INCLUDING ACQUISITIONS                                      
                                         Three Months Ended March 31,
                                         2013               2012
Average number of transacting ATMs:                         
United States: Company-owned             27,582             24,859
United Kingdom                           4,314              3,628
Mexico                                   2,705              2,843
Canada                                    1,539              514
Subtotal                                 36,140             31,844
United States: Merchant-owned            20,067             15,798
Average number of transacting ATMs: ATM   56,207             47,642
operations
                                                           
United States: Managed services ^(1)      6,106              5,797
United Kingdom: Managed services         21                 21
Canada: Managed services                 305                —
Average number of transacting ATMs:       6,432              5,818
Managed services
                                                           
Total average number of transacting ATMs 62,639             53,460
                                                           
Total transactions (in thousands):                          
ATM operations                           190,372            158,885
Managed services                         10,220             9,451
Total transactions                       200,592            168,336
                                                           
Total cash withdrawal transactions (in                      
thousands):
ATM operations                           117,309            100,886
Managed services                         6,567              6,082
Total cash withdrawal transactions       123,876            106,968
                                                           
Per ATM per month amounts (excludes                         
managed services):
Cash withdrawal transactions             696                706
                                                           
ATM operating revenues                   1,118              1,217
Cost of ATM operating revenues ^ (2)      746                822
ATM operating gross profit ^(2) (3)      $372             $395
                                                           
ATM operating gross profit margin ^(2)   33.3%              32.5%
(3)
___________________                                         
                                                           
^(1)^ Includes 3,094 and 2,603 ATMs for the three months ended March 31, 2013
and 2012, respectively, for which the Company only provided EFT transaction
processing services.
^(2)^ Amounts presented exclude the effect of depreciation, accretion, and
amortization expense, which is presented separately in the Company's
consolidated statements of operations.
^(3)^ ATM operating gross profit and ATM operating gross profit 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.


Key Operating Metrics – Ending Machine Count
As of March 31, 2013 and 2012
(Unaudited)
                                                               
                                                 As of March 31,
Ending number of transacting ATMs:                2013           2012
United States: Company-owned                     27,590         25,138
United Kingdom                                   4,301          3,756
Mexico                                           2,684          2,855
Canada                                           1,544          518
Subtotal                                         36,119         32,267
United States: Merchant-owned                    19,987         15,687
Ending number of transacting ATMs: ATM            56,106         47,954
operations
                                                               
United States: Managed services ^(1)              6,133          5,942
United Kingdom: Managed services                 21             21
Canada: Managed services                         315            —
Ending number of transacting ATMs: Managed        6,469          5,963
services
                                                               
Total ending number of transacting ATMs          62,575         53,917
___________________                                             
                                                               
^(1)^ Includes 3,149 and 2,617 ATMs as of March 31, 2013 and 2012,
respectively, for which the Company only provided EFT transaction processing
services.


Reconciliation of Net Income Attributable to Controlling Interests to EBITDA,
Adjusted EBITDA, and Adjusted Net Income
For the Three Months Ended March 31, 2013 and 2012
(Unaudited)
                                                        
                                                        
                                    Three Months Ended March 31,
                                    2013                 2012
                                    (In thousands, except share and per share
                                     amounts)
Net income attributable to           $9,430             $9,829
controlling interests
Adjustments:                                             
Interest expense, net                5,066                5,365
Amortization of deferred financing   229                  220
costs
Income tax expense                   5,980                6,146
Depreciation and accretion expense   16,285               13,750
Amortization expense                 5,748                5,475
EBITDA                              $42,738            $40,785
                                                        
Add back:                                                
Loss on disposal of assets           203                  548
Other income                         (421)                (77)
Noncontrolling interests ^(1)        (419)                (410)
Stock-based compensation expense     3,157                2,551
^(2)
Acquisition-related costs ^(3)       2,822                1,087
Other adjustments to selling,
general, and administrative expenses 446                  —
^(4)
Adjusted EBITDA                      $48,526            $44,484
Less:                                                    
Interest expense, net ^(2)           5,037                5,310
Depreciation and accretion expense   15,869               13,380
^(2)
Adjusted pre-tax income              27,620               25,794
Income tax expense (at 35%) ^(5)     9,667                9,028
Adjusted Net Income                  $17,953            $16,766
                                                        
Adjusted Net Income per share        $0.41              $0.39
Adjusted Net Income per diluted      $0.40              $0.38
share
                                                        
Weighted average shares outstanding  44,247,098           43,058,215
- basic
Weighted average shares outstanding  44,479,366           43,562,618
- diluted
_______________                                          
^(1)^ Noncontrolling interests adjustment made such that Adjusted EBITDA
includes only the Company's 51% ownership interest in the Adjusted EBITDA of
its Mexico subsidiary.
^(2)^ Amounts exclude 49% of the expenses incurred by the Company's Mexico
subsidiary as such amounts are allocable to the noncontrolling interest
stockholders.
^(3)^ Acquisition-related costs include non-recurring costs incurred for
professional and legal fees and certain transition and integration-related
costs, related to recent acquisitions.
^(4)^ Represents non-recurring severance related costs associated with
management of Company's U.K. operation.
^(5)^ 35% represents the Company's estimated long-term, cross-jurisdictional
effective cash tax rate.


Reconciliation of Free Cash Flows
For the Three Months Ended March 31, 2013 and 2012
(Unaudited)
                                                              
                                                Three Months Ended March 31,
                                                2013           2012
                                                (In thousands)
Cash provided by operating activities            $41,380      $18,741
Payments for capital expenditures:                             
Cash used in investing activities, excluding     (15,937)       (21,686)
acquisitions
Free cash flow                                   $25,443      $(2,945)


Reconciliation of Estimated Net Income to EBITDA, Adjusted EBITDA, and
Adjusted Net Income
For the Year Ending December 31, 2013
(Unaudited)
                                                            
                                  Estimated Range
                                  Full Year 2013
                                                            
                                  (In millions, except per share information)
                                                            
Net income                        $46.3           --          $48.7
Adjustments:                                                 
Interest expense, net             20.2            --          20.7
Amortization of deferred financing 0.9             --          0.9
costs
Income tax expense                30.3            --          31.8
Depreciation and accretion         65.5            --          67.0
expense
Amortization expense              24.0            --          24.0
EBITDA                            $187.2          --          $193.1
                                                            
Add back:                                                    
Noncontrolling interests          (1.8)           --          (1.7)
Loss on disposal of assets        1.0             --          1.0
Stock-based compensation expense  12.0            --          13.0
Acquisition-related costs         3.5             --          3.5
Other expense, net                 (0.4)           --          (0.4)
Other adjustments                  0.5             --          0.5
Adjusted EBITDA                   $202.0          --          $209.0
Less:                                                       
Interest expense, net ^(1)         20.0            --          20.5
Depreciation and accretion expense 64.0            --          65.5
^(1)
Income tax expense (at 35%) ^(2)   41.3            --          43.0
Adjusted Net Income               $76.7           --          $80.0
                                                            
Adjusted Net Income per diluted    $1.72           --          $1.79
share
                                                            
Weighted average shares            44.7            --          44.7
outstanding – diluted
__________________                                           
                                                            
^(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 cash tax rate.


Contact Information:
                               
Cardtronics — Media             Cardtronics — Investors
Nick Pappathopoulos             Chris Brewster
Director – Public Relations     Chief Financial Officer
832-308-4396                    832-308-4128
npappathopoulos@cardtronics.com cbrewster@cardtronics.com

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