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Cardtronics Announces Fourth Quarter and Full-Year 2013 Results

Cardtronics Announces Fourth Quarter and Full-Year 2013 Results

HOUSTON, Feb. 6, 2014 (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 and year ended December 31,
2013.

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

  *Total revenues of $241.9 million, up 22% from $198.4 million.
  *ATM operating revenues of $234.6 million, up 22% from $192.8 million.
  *Adjusted Net Income per diluted share of $0.49, up 20% from $0.41.
  *Adjusted EBITDA of $57.3 million, up 14% from $50.1 million.
  *GAAP net income of $7.5 million or $0.16 per diluted share, compared to
    $11.2 million net income or $0.25 per diluted share. GAAP net income was
    negatively impacted in the fourth quarter of 2013 by acquisition
    integration-related costs associated with the Company's acquisition of
    Cardpoint Limited ("Cardpoint") completed in August 2013.

Steve Rathgaber, the company's chief executive officer commented, "Our fourth
quarter results were once again driven by strong contributions from our recent
acquisitions and continued organic growth. For the full year 2013, we grew our
ATM operating revenues by 15% and Adjusted Net Income per diluted share by
20%, while making investments to sustain continued growth and to further
diversify our revenues and profits. Looking forward to 2014, the Company is
well positioned to continue its success of delivering double-digit revenue and
earnings growth."

RECENT HIGHLIGHTS

  *Multi-year extension of the contract covering over 3,200 ATMs in
    Walgreen's pharmacies.
  *Execution of bank branding agreements to brand over 300 ATMs in H-E-B
    grocery stores, with BBVA Compass and Frost Bank.
  *Successful private offering of $287.5 million of convertible senior notes
    due 2020.
  *Execution of an agreement with a major UK supermarket brand to place
    approximately 115 ATMs in its stores.
  *Long-term extension ofa contract with Roadchef, a major motorway service
    area operator in the U.K., to continue operating ATMs in approximately 70
    locations.
  *Addition of Blackhawk Network to the Allpoint Network, providing
    surcharge-free access to T-Mobile customers through their T-Mobile Visa
    Prepaid Card and Mobile Money app.
  *The announcement of the acquisition of the assets of Automated Financial,
    a Chandler, Arizona-based operator of approximately 2,100 ATMs.

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 Gross Profit Margin, 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.

FOURTH QUARTER RESULTS

Consolidated revenues totaled $241.9 million for the fourth quarter of 2013,
representing a 22% increase from the $198.4 million in consolidated revenues
generated during the fourth quarter of 2012. Our ATM operating revenues were
also up 22% from the fourth quarter of 2012. The increase in ATM operating
revenues was primarily driven by revenues attributable to businesses acquired
over the past year, accounting for seventeen percentage points of the 22% ATM
operating revenue growth. The remaining 5% is attributable to organic growth
with new and existing merchants and financial institution customers.

Adjusted EBITDA for the fourth quarter of 2013 totaled $57.3 million, compared
to $50.1 million during the fourth quarter of 2012, and Adjusted Net Income
totaled $21.7 million ($0.49 per diluted share) compared to $18.3 million
($0.41 per diluted share) during the fourth quarter of 2012. The increases in
Adjusted EBITDA and Adjusted Net Income per diluted share were driven by the
factors discussed above that impacted the Company's revenue growth. 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 fourth quarter of 2013 totaled $7.5 million, compared
to GAAP net income of $11.2 million during the same quarter in 2012. The
decrease in GAAP net income from the fourth quarter of 2012 was primarily due
to acquisition and integration-related costs during the quarter associated
with the Company's recent Cardpoint acquisition that was completed in August
2013. The Cardpoint acquisition also drove an increase in intangible asset
amortization as a result of fair value adjustments, primarily related to
customer relationship intangible assets. Additionally, our loss on disposal of
assets increased year-over-year primarily as a result of de-installing certain
underperforming ATMs in Mexico.

Partially offsetting these higher expenses were the same positive factors
impacting Adjusted EBITDA and Adjusted Net Income, as discussed above.

FULL-YEAR RESULTS

For the year ended December 31, 2013, consolidated revenues totaled $876.5
million, representing a 12% increase from the $780.4 million in consolidated
revenues generated during the same period in 2012. Of the 12% year-over-year
increase, 8% was driven by revenues attributable to businesses acquired over
the past year, with the remaining 4% increase attributable to a combination of
increases in transactions per ATM, unit growth, increased revenues from higher
bank branding and network branding revenues, and growth in Allpoint, partly
offset by a $14.5 million reduction in ATM product sales and other revenues.
ATM operating revenues, which exclude the decrease in ATM product sales and
other revenues, were up 15% (6% on an organic basis) for the year ended
December 31, 2013. 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 and caused continued demand for new ATM equipment even
after the first quarter 2012 deadline. As the Company's ATM product sales are
generally much lower margin revenues than its ATM operating revenues, the
$14.5 million revenue decline from 2012 did not have a significant impact on
the Company's profitability in the current year's results.

Adjusted EBITDA totaled $218.8 million for the year ended December 31, 2013,
representing a 15% increase over the $189.5 million in Adjusted EBITDA for the
same period in 2012, and Adjusted Net Income totaled $86.2 million ($1.93 per
diluted share) for the year ended December 31, 2013, up 20% on a per share
basis from $70.6 million ($1.61 per diluted share) during the same period in
2012. The increases in both Adjusted EBITDA and Adjusted Net Income were
primarily due to the same factors discussed above for the Company's quarterly
results.

GAAP net income for the year ended December 31, 2013 totaled $23.8 million,
compared to $43.6 million during the same period in 2012. The decrease in GAAP
net income from the year ended December 31, 2012 was due to several factors,
including higher acquisition-related expenses, primarily associated with the
Cardpoint acquisition, which were up $12.1 million. Additionally, certain
nonrecurring charges taken in the year including $8.7 million related to U.K.
property taxes and $13.8 million in income tax expense related to the
restructuring of the Company's U.K. business negatively impacted GAAP net
income. These effects were partially offset by the same positive factors
impacting Adjusted EBITDA and Adjusted Net Income discussed above.

2014 GUIDANCE

Below is the Company's financial guidance for the year ending December 31,
2014:

  oRevenues of $980.0 million to $1 billion;
  oAdjusted Gross Profit Margin of approximately 33.0% to 33.5%;
  oAdjusted EBITDA of $236.0 million to $243.0 million;
  oDepreciation and accretion expense of approximately $74.5 million to $76.5
    million, net of noncontrolling interests;
  oCash interest expense of approximately $17.0 million to $17.5 million, net
    of noncontrolling interests;
  oAdjusted Net Income of $2.20 to $2.27 per diluted share, based on
    approximately 44.7 million weighted average diluted shares outstanding;
    and
  oCapital expenditures of approximately $95.0 million to $100.0 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 $1.60 U.S. to £1.00
U.K., $13.00 Mexican pesos to $1.00 U.S., $1.00 Canadian dollar to $0.95 U.S.,
and €1.00 Euros to $1.37 U.S.

LIQUIDITY

The Company continues to maintain a strong liquidity position, with $300.4
million in available borrowing capacity under its $375.0 million revolving
credit facility as of December 31, 2013 and $86.9 million in cash. The
Company's outstanding indebtedness as of December 31, 2013 consisted of $200.0
million in senior subordinated notes due 2018, the newly issued $287.5 million
convertible senior notes due 2020 (of which $216.6 million is recorded as
long-term debt on our balance sheet, with the remaining balance in additional
paid-in capital), $72.5 million in borrowings under its revolving credit
facility due 2016, and $1.3 million in equipment financing notes associated
with its majority-owned Mexico subsidiary.

DISCLOSURE OF NON-GAAP FINANCIAL INFORMATION

Adjusted EBITDA, Adjusted Net Income, Adjusted Gross Profit Margin, 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, nonrecurring, 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 expenses, certain other
non-operating and nonrecurring costs, loss on disposal of assets, the
Company's obligations for the payment of income taxes, interest expense and
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, certain other expense (income) amounts,
nonrecurring expenses, and acquisition-related expenses, and using an assumed
tax rate of 35% through June 30, 2013 and 33.5% thereafter, with certain
adjustments for noncontrolling interests. Adjusted Gross Profit Margin is
calculated excluding certain nonrecurring costs from the cost of ATM operating
revenues. Adjusted EBITDA %, Adjusted Pre-tax Income %, and Adjusted Net
Income % are calculated by taking the respective non-GAAP financial measures
over GAAP total revenues. Adjusted Net Income per diluted share is calculated
by dividing Adjusted Net Income by average weighted diluted shares
outstanding. 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, February 6, 2014, at
4:00 p.m. Central Time (5:00 p.m. Eastern Time) to discuss its financial
results for the quarter and year ended December 31, 2013. To access the call,
please call the conference call operator at:

Dial in:           (877) 806-7890
Alternate dial-in: (973) 935-8713

Please call in fifteen minutes prior to the scheduled start time and request
to be connected to the "Cardtronics Fourth 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,
February 20, 2014, and can be accessed by calling (855) 859-2056 or (404)
537-3406 and entering 31099145 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 March 7, 2014.

ABOUT CARDTRONICS (NASDAQ: CATM)

Making ATM cash access convenient where people shop, work and live,
Cardtronics is at the convergence of retailers, financial institutions,
prepaid card programs and the customers they share. Cardtronics owns/operates
approximately 80,600 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 safe harbor provisions of the Private Securities Litigation Reform Act of
1995. Forward-looking statements give the Company's current expectations,
beliefs, assumptions 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 network and
    regulatory changes, including requirements surrounding Europay, MasterCard
    and Visa ("EMV") security standards;
  *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 renew and strengthen its existing customer
    relationships and add new customers;
  *the Company's ability to pursue and successfully integrate acquisitions,
    including the acquisition of Cardpoint that was completed in August 2013;
  *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 and its ability to continue to secure
    vault cash rental agreements in the future;
  *the Company's ability to successfully manage its existing international
    operations and to continue to expand internationally;
  *the Company's ability to prevent thefts of cash and data 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 Company's ability to successfully implement its corporate strategy;
  *the Company's ability to compete successfully with new and existing
    competitors;
  *the Company's ability to meet the service levels required by its service
    level agreements with its customers;
  *the additional risks the Company is exposed to in its U.K. 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 and Twelve Months Ended December 31, 2013 and 2012
(Unaudited)
                                                                
                                  Three Months Ended    Twelve Months Ended
                                  December 31,         December 31,
                                  2013       2012       2013       2012
                                  (In thousands, except share and per share
                                   information)
Revenues:                                                        
ATM operating revenues             $234,559 $192,813 $854,196 $743,662
ATM product sales and other        7,386      5,547      22,290     36,787
revenues
Total revenues                     241,945    198,360    876,486    780,449
Cost of revenues:                                                
Cost of ATM operating revenues
(excludes depreciation, accretion, 156,598    128,370    573,959    502,682
and amortization shown separately
below)
Cost of ATM product sales and      7,021      5,480      21,328     33,405
other revenues
Total cost of revenues             163,619    133,850    595,287    536,087
Gross profit                       78,326     64,510     281,199    244,362
Operating expenses:                                              
Selling, general, and              25,598     17,569     84,592     65,525
administrative expenses
Acquisition-related expenses       7,858      1,474      15,400     3,332
Depreciation and accretion expense 19,424     17,256     68,480     61,499
Amortization expense               7,509      5,260      27,336     21,712
Loss on disposal of assets         2,321      1,003      2,790      1,787
Total operating expenses           62,710     42,562     198,598    153,855
Income from operations             15,616     21,948     82,601     90,507
Other expense (income):                                          
Interest expense, net              5,585      5,195      21,155     21,161
Amortization of deferred financing 1,196      227        1,931      896
costs and bond discounts
Other income                       (120)      (733)      (3,150)    (1,821)
Total other expense                6,661      4,689      19,936     20,236
Income before income taxes         8,955      17,259     62,665     70,271
Income tax expense                 3,239      6,325      42,018     27,009
Net income                         5,716      10,934     20,647     43,262
Net loss attributable to           (1,751)    (267)      (3,169)    (329)
noncontrolling interests
Net income attributable to
controlling interests and          $7,467   $11,201  $23,816  $43,591
available to common stockholders
                                                                
Net income per common share –      $0.16    $0.25    $0.52    $0.97
basic
Net income per common share –      $0.16    $0.25    $0.52    $0.96
diluted
                                                                
Weighted average shares            44,364,436 43,873,526 44,371,313 43,469,175
outstanding – basic
Weighted average shares            44,518,525 44,153,157 44,577,635 43,875,332
outstanding – diluted



Condensed Consolidated Balance Sheets
As of December 31, 2013 and 2012
                                                           
                                          December 31, 2013 December 31, 2012
                                          (In thousands)
Assets                                     (Unaudited)       
Current assets:                                             
Cash and cash equivalents                 $86,939         $13,861
Accounts and notes receivable, net        58,274            45,135
Inventory                                 5,302             4,389
Restricted cash, short-term               14,896            8,298
Current portion of deferred tax asset,     21,202            13,086
net
Prepaid expenses, deferred costs, and      20,159            30,980
other current assets
Total current assets                      206,772           115,749
Property and equipment, net               270,966           236,238
Intangible assets, net                    161,615           102,573
Goodwill                                  404,491           285,696
Deferred tax asset, net                   9,680             26,468
Prepaid expenses, deferred costs, and      2,679             2,168
other assets
Total assets                              $1,056,203      $768,892
                                                           
Liabilities and Stockholders' Equity                        
Current liabilities:                                        
Current portion of long-term debt and      $1,289          $1,467
notes payable
Current portion of other long-term         35,597            27,220
liabilities
Accounts payable and other accrued and     177,909           102,884
current liabilities
Total current liabilities                 214,795           131,571
Long-term liabilities:                                      
Long-term debt                            489,225           353,352
Asset retirement obligations              60,665            41,862
Deferred tax liability, net                5,668             182
Other long-term liabilities               38,736            93,121
Total liabilities                         809,089           620,088
Stockholders' equity                      247,114           148,804
Total liabilities and stockholders'        $1,056,203      $768,892
equity


SELECTED INCOME STATEMENT DETAIL:
                                                                
Total revenues by segment:                                       
                                                                
                                  Three Months Ended    Twelve Months Ended
                                  December 31,         December 31,
                                  2013       2012       2013       2012
                                  (In thousands)
                                                                
United States                      $172,135 $157,927 $665,709 $636,328
Europe                             65,059     33,395     178,855    117,814
Other International                7,899      10,362     40,704     36,483
Eliminations                       (3,148)    (3,324)    (8,782)    (10,176)
Total revenues                     $241,945 $198,360 $876,486 $780,449
                                                                
Breakout of ATM operating                                        
revenues:
                                                                
                                  Three Months Ended    Twelve Months Ended
                                  December 31,         December 31,
                                  2013       2012       2013       2012
                                  (In thousands)
                                                                
Surcharge revenues                 $107,338 $88,408  $392,931 $351,059
Interchange revenues               79,262     63,750     278,295    241,641
Bank branding and surcharge-free   36,640     32,571     142,266    119,490
network revenues
Managed services revenues          5,826      4,269      20,568     16,269
Other revenues                     5,493      3,815      20,136     15,203
Total ATM operating revenues       $234,559 $192,813 $854,196 $743,662
                                                                
Total cost of revenues by segment:                               
                                                                
                                  Three Months Ended    Twelve Months Ended
                                  December 31,         December 31,
                                  2013       2012       2013       2012
                                  (In thousands)
                                                                
United States                      $109,671 $102,395 $426,635 $423,813
Europe                             48,520     26,202     140,812    93,030
Other International                8,247      8,426      36,122     28,909
Eliminations                       (2,819)    (3,173)    (8,282)    (9,665)
Total cost of revenues             $163,619 $133,850 $595,287 $536,087


Breakout of cost of ATM operating revenues (exclusive of depreciation,
accretion, and amortization):
                                                                
                                  Three Months Ended    Twelve Months Ended
                                  December 31,         December 31,
                                  2013       2012       2013       2012
                                  (In thousands)
                                                                
Merchant commissions               $72,933  $61,701  $270,410 $242,569
Vault cash rental expense          13,142     12,378     49,356     49,258
Other costs of cash                20,731     18,077     78,512     68,406
Repairs and maintenance            16,778     12,415     56,987     52,540
Communications                     6,657      5,510      23,007     21,313
Transaction processing             4,357      1,943      12,334     8,088
Stock-based compensation           260        176        911        930
Other expenses                     21,740     16,170     82,442     59,578
Total cost of ATM operating        $156,598 $128,370 $573,959 $502,682
revenues
                                                                
Breakout of selling, general, and administrative expenses:
                                                                
                                  Three Months Ended    Twelve Months Ended
                                  December 31,         December 31,
                                  2013       2012       2013       2012
                                  (In thousands)
                                                                
Employee costs                    $13,633  $9,470   $44,728  $33,927
Stock-based compensation          3,149      2,243      11,413     10,180
Professional fees                 2,036      1,734      7,950      7,255
Other                             6,780      4,122      20,501     14,163
Total selling, general, and        $25,598  $17,569  $84,592  $65,525
administrative expenses
                                                                
                                                                
Depreciation and accretion expense by segment:
                                                                
                                  Three Months Ended    Twelve Months Ended
                                  December 31,         December 31,
                                  2013       2012       2013       2012
                                  (In thousands)
                                                                
United States                      $11,059  $10,371  $41,450  $37,837
Europe                             7,293      5,754      22,448     19,894
Other International                1,072      1,131      4,582      3,768
Total depreciation and accretion   $19,424  $17,256  $68,480  $61,499
expense



SELECTED BALANCE SHEET DETAIL:
                                                         
Long-term debt:                                           
                                                         
                                   December 31, 2013      December 31, 2012
                                   (In thousands)
8.25% senior subordinated notes    $ 200,000              $ 200,000
1.00% convertible senior notes ^    216,635              —
(1)
Revolving credit facility          72,547                 152,000
Equipment financing notes          1,332                  2,819
Total long-term debt               $ 490,514              $ 354,819
                                                         
^(1) The total principal amount outstanding for these instruments is $287.5
million, but in accordance with U.S. GAAP the estimated fair value of the
conversion feature at issuance was recorded as additional paid-in capital
within equity. The net debt amount is being accreted over the term of the
notes to the full principal amount ($287.5 million).
                                                         
Share count rollforward:                                  
                                                         
                                                         
Total shares outstanding as of December 31, 2012           44,641,224
Shares repurchased                                        (831,374)
Shares issued – restricted stock grants and stock options  368,150
exercised
Shares vested – restricted stock                          269,824
units
Shares forfeited – restricted stock awards                 (71,872)
Total shares outstanding as of December 31, 2013           44,375,952


SELECTED CASH FLOW DETAIL:
                                                                
Selected cash flow statement                                     
amounts:
                                                                
                                    Three Months Ended  Twelve Months Ended
                                    December 31,       December 31,
                                    2013      2012      2013       2012
                                    (In thousands)
                                                                
Cash provided by operating           $61,082 $42,063 $183,557 $136,388
activities
Cash used in investing activities    (34,174)  (15,287)  (266,740)  (113,764)
Cash provided by (used in) financing 41,391    (24,092)  154,988    (14,084)
activities
Effect of exchange rate changes on   84        80        1,273      (255)
cash
Net increase in cash and cash        68,383    2,764     73,078     8,285
equivalents
Cash and cash equivalents at         18,556    11,097    13,861     5,576
beginning of period
Cash and cash equivalents at end of  $86,939 $13,861 $86,939  $13,861
period



Key Operating Metrics – Excluding Acquisitions in All Periods Presented
For the Three and Twelve Months Ended December 31, 2013 and 2012
(Unaudited)
                                                               
The following table excludes the effect of acquisitions in the three and
twelve months ended December 31, 2013 for comparative purposes:
                                                               
EXCLUDING ACQUISITIONS       Three Months Ended       Twelve Months Ended
                            December 31,            December 31,
                            2013         2012        2013         2012
Average number of                                               
transacting ATMs:
United States:               28,685       27,177      28,023       26,049
Company-owned
United Kingdom              4,610        4,298       4,405        3,999
Mexico                      2,195        2,745       2,533        2,797
Canada                       1,212        1,214       1,130        851
Subtotal                    36,702       35,434      36,091       33,696
United States:               18,928       20,554      15,782       17,773
Merchant-owned
Average number of
transacting ATMs: ATM        55,630       55,988      51,873       51,469
operations
                                                               
U.S.: Managed services -     2,168        2,170       2,191        2,087
Turnkey
U.S.: Managed services -     5,819        3,853       5,013        3,841
Processing Plus
U.K.: Managed services      21           21          21           21
Canada: Managed services    100          98          26           25
Average number of
transacting ATMs: Managed    8,108        6,142       7,251        5,974
services
                                                               
Total average number of      63,738       62,130      59,124       57,443
transacting ATMs
                                                               
Total transactions (in                                          
thousands):
ATM operations              208,840      190,825     790,893      704,809
Managed services            13,535       10,236      49,171       39,856
Total transactions          222,375      201,061     840,064      744,665
                                                               
Total cash withdrawal                                           
transactions (in thousands):
ATM operations              121,697      116,969     478,561      443,312
Managed services            8,579        6,496       31,612       25,287
Total cash withdrawal        130,276      123,465     510,173      468,599
transactions
                                                               
Per ATM per month amounts                                       
(excludes managed services):
Cash withdrawal              729          696         769          718
transactions
                                                               
ATM operating revenues      $1,179     $1,123    $1,237     $1,178
Cost of ATM operating        795          743         824          792
revenues ^ (1)
ATM operating gross profit   $384       $380      $413       $386
^(1) (2)
                                                               
ATM operating gross profit   32.6%        33.8%       33.4%        32.8%
margin ^(1) (2)
                                                               
^(1)^ Amounts presented exclude the effect of depreciation, accretion, and
amortization expense, which is presented separately in the Company's
consolidated statements of operations. Additionally, the three and twelve
months ended December 31, 2013 excludes $0.3 million and $8.7 million,
respectively, of nonrecurring expense related to retroactive property taxes on
certain ATM locations in the U.K.
^(2)^ 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 and Twelve Months Ended December 31, 2013 and 2012
(Unaudited)
                                                              
INCLUDING ACQUISITIONS     Three Months Ended        Twelve Months Ended
                          December 31,             December 31,
                          2013          2012        2013         2012
Average number of                                              
transacting ATMs:
United States:             29,118        27,177      28,333       26,049
Company-owned
United Kingdom            11,516        4,298       7,450        3,999
Mexico                    2,195         2,745       2,533        2,797
Canada                     1,623         1,214       1,600        851
Germany                    843           —          365          —
Subtotal                  45,295        35,434      40,281       33,696
United States:             21,707        20,554      21,072       17,773
Merchant-owned
Average number of
transacting ATMs: ATM      67,002        55,988      61,353       51,469
operations
                                                              
U.S.: Managed services -   2,168         2,170       2,191        2,087
Turnkey
U.S.: Managed services -   11,259        3,853       8,220        3,841
Processing Plus
U.K.: Managed services    21            21          21           21
Canada: Managed services  301           98          306          25
Average number of
transacting ATMs: Managed  13,749        6,142       10,738       5,974
services
                                                              
Total average number of    80,751        62,130      72,091       57,443
transacting ATMs
                                                              
Total transactions (in                                         
thousands):
ATM operations            243,363       190,825     860,062      704,809
Managed services          17,555        10,236      60,027       39,856
Total transactions        260,918       201,061     920,089      744,665
                                                              
Total cash withdrawal
transactions (in                                               
thousands):
ATM operations            142,002       116,969     521,282      443,312
Managed services          11,715        6,496       40,223       25,287
Total cash withdrawal      153,717       123,465     561,505      468,599
transactions
                                                              
Per ATM per month amounts
(excludes managed                                              
services):
Cash withdrawal            706           696         708          718
transactions
                                                              
ATM operating revenues    $1,132      $1,123    $1,127     $1,178
Cost of ATM operating      756           743         744          792
revenues ^ (1)
ATM operating gross profit $376        $380      $383       $386
^(1) (2)
                                                              
ATM operating gross profit 33.2%         33.8%       34.0%        32.8%
margin ^(1) (2)
                                                              
^(1)^ Amounts presented exclude the effect of depreciation, accretion, and
amortization expense, which is presented separately in the Company's
consolidated statements of operations. Additionally, the three and twelve
months ended December 31, 2013 excludes $0.3 million and $8.7 million,
respectively, of nonrecurring expense related to retroactive property taxes on
certain ATM locations in the U.K.
^(2)^ 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 December 31, 2013 and 2012
(Unaudited)
                                                             
                                                             
                                                    As of December 31,
Ending number of transacting ATMs:                   2013      2012
United States: Company-owned                        29,425    27,573
United Kingdom                                      11,522    4,307
Mexico                                              1,984     2,729
Canada                                              1,621     1,549
Germany                                              856       —
Subtotal                                            45,408    36,158
United States: Merchant-owned                       21,576    20,237
Ending number of transacting ATMs: ATM operations   66,984    56,395
                                                             
United States: Managed services - Turnkey            2,169     2,186
United States: Managed services - Processing Plus    11,155    3,864
United Kingdom: Managed services                    21        21
Canada: Managed services                            265       294
Ending number of transacting ATMs: Managed services 13,610    6,365
                                                             
Total ending number of transacting ATMs             80,594    62,760



Reconciliation of Net Income Attributable to Controlling Interests to EBITDA,
Adjusted EBITDA, and
Adjusted Net Income
For the Three and Twelve Months Ended December 31, 2013 and 2012
(Unaudited)
                                                               
                          Three Months Ended         Twelve Months Ended
                          December 31,              December 31,
                          2013          2012         2013         2012
                          (In thousands, except share and per share amounts)
Net income attributable to $7,467      $11,201    $23,816    $43,591
controlling interests
Adjustments:                                                    
Interest expense, net      5,585         5,195        21,155       21,161
Amortization of deferred
financing costs and bond   1,196         227          1,931        896
discounts
Income tax expense         3,239         6,325        42,018       27,009
Depreciation and accretion 19,424        17,256       68,480       61,499
expense
Amortization expense       7,509         5,260        27,336       21,712
EBITDA                    $44,420     $45,464    $184,736   $175,868
                                                               
Add back:                                                       
Loss on disposal of assets 2,321         1,003        2,790        1,787
Other income ^(1)          (120)         (732)        (3,150)      (1,830)
Noncontrolling interests   (970)         (451)        (2,399)      (1,668)
^(2)
Stock-based compensation   3,402         2,408        12,290       11,072
expense ^(3)
Acquisition-related        7,858         1,474        15,400       3,332
expenses ^(4)
Other adjustments to cost
of ATM operating revenues  311           —           8,670        —
^ (5)
Other adjustments to
selling, general, and      59            972          505          972
administrative expenses
^(6)
Adjusted EBITDA            $57,281     $50,138    $218,842   $189,533
Less:                                                           
Interest expense, net ^(3) 5,567         5,161        21,057       20,990
Depreciation and accretion 19,051        16,857       66,857       59,983
expense ^(3)
Adjusted pre-tax income    32,663        28,120       130,928      108,560
Income tax expense ^(7)    10,942        9,842        44,777       37,996
Adjusted Net Income        $21,721     $18,278    $86,151    $70,564
                                                               
Adjusted Net Income per    $0.49       $0.42      $1.94      $1.62
share
Adjusted Net Income per    $0.49       $0.41      $1.93      $1.61
diluted share
                                                               
Weighted average shares    44,364,436    43,873,526   44,371,313   43,469,175
outstanding - basic
Weighted average shares    44,518,525    44,153,157   44,577,635   43,875,332
outstanding - diluted
                                                               
^(1)^ Other income during the three and twelve months ended December 31, 2012
exclude unrealized and realized (gains) losses related to derivatives not
designated as hedging instruments.
^(2)^ Noncontrolling interests adjustment made such that Adjusted EBITDA
includes only the Company's 51% ownership interest in the Adjusted EBITDA of
its Mexico subsidiary.
^(3)^ Amounts exclude 49% of the expenses incurred by the Company's Mexico
subsidiary as such amounts are allocable to the noncontrolling interest
stockholders.
^(4)^ Acquisition-related expenses include nonrecurring costs incurred for
professional and legal fees and certain transition and integration-related
costs, including contract termination costs, related to acquisitions.
^(5)^ Adjustment to cost of ATM operating revenues for the three and twelve
months ended December 31, 2013 is related to the nonrecurring charge for
retroactive property taxes on certain ATM locations in the U.K.
^(6)^ Adjustment to selling, general, and administrative expenses represents
nonrecurring severance related costs associated with management of the
Company's U.K. operation.
^(7) Calculated using the Company's estimated long-term, cross-jurisdictional
effective cash tax rate of 35% through June 30, 2013 and 33.5% thereafter.


Reconciliation of Adjusted Gross Profit Margin
For the Three and Twelve Months Ended December 31, 2013 and 2012
(Unaudited)
                                                              
         Three Months Ended December 31,    Three Months Ended December 31,
          2013                               2012
         As reported            Adjusted   As                    Adjusted
                                             reported
         (GAAP)      Adjustments (Non-GAAP) (GAAP)     Adjustments (Non-GAAP)
         (In thousands)
                                                              
Total     $241,945  $—        $241,945 $198,360 $—         $198,360
revenues
Total
cost of   163,619     (311)       163,308    133,850    —          133,850
revenues
^ (1)
Gross     $78,326   $311      $78,637  $64,510  $—         $64,510
profit
Gross
profit    32.4%                  32.5%      32.5%                 32.5%
margin
                                                              
                                           
         Twelve Months Ended December 31,   Twelve Months Ended December 31,
          2013                               2012
         As reported            Adjusted   As                    Adjusted
                                             reported
         (GAAP)      Adjustments (Non-GAAP) (GAAP)     Adjustments (Non-GAAP)
         (In thousands)
                                                              
Total     $876,486  $—        $876,486 $780,449 $—         $780,449
revenues
Total
cost of   595,287     (8,670)     586,617    536,087    —          536,087
revenues
^ (1)
Gross     $281,199  $8,670    $289,869 $244,362 $—         $244,362
profit
Gross
profit    32.1%                  33.1%      31.3%                 31.3%
margin

^(1)^ Adjustment to cost of ATM operating revenues for the three and twelve
months ended December 31, 2013 is related to the nonrecurring charge for
retroactive property taxes on certain ATM locations in the U.K.


Reconciliation of Free Cash Flow
For the Three and Twelve Months Ended December 31, 2013 and 2012
(Unaudited)
                                                                
                                    Three Months Ended  Twelve Months Ended
                                    December 31,       December 31,
                                    2013      2012      2013       2012
                                    (In thousands)
Cash provided by operating           $61,082 $42,063 $183,557 $136,388
activities
Payments for capital expenditures:                               
Cash used in investing activities,   (31,551)  (12,211)  (77,153)   (92,803)
excluding acquisitions
Free cash flow                       $29,531 $29,852 $106,404 $43,585
                                                                


Reconciliation of Estimated Net Income to EBITDA, Adjusted EBITDA, and
Adjusted Net Income
For the Year Ending December 31, 2014
(Unaudited)
                                                               
                                            Estimated Range
                                            Full Year 2014
                                                               
                                            (In millions, except per share
                                             information)
                                                               
Net income                                  $51.7        -       $54.7
Adjustments:                                                    
Interest expense, net                       17.2         -       17.7
Amortization of deferred financing costs    10.3         -       10.3
Income tax expense                          27.8         -       29.3
Depreciation and accretion expense          76.0         -       78.0
Amortization expense                        34.0         -       34.0
EBITDA                                      $217.0       -       $224.0
                                                               
Add back:                                                       
Noncontrolling interests                    (1.2)        -       (1.2)
Stock-based compensation expense            14.7         -       14.7
Acquisition-related expenses                5.5          -       5.5
Adjusted EBITDA                             $236.0       -       $243.0
Less:                                                          
Interest expense, net ^(1)                   17.0         -       17.5
Depreciation and accretion expense ^(1)      74.5         -       76.5
Income tax expense ^(2)                      46.2         -       47.7
Adjusted Net Income                         $98.3        -       $101.3
                                                               
Adjusted Net Income per diluted share       $2.20        -       $2.27
                                                               
Weighted average shares outstanding –        44.7         -       44.7
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) Calculated using the Company's estimated long-term, cross-jurisdictional
effective cash tax rate of 32%.

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

   Cardtronics and Allpoint are registered trademarks of Cardtronics, Inc.

      All other trademarks are the property of their respective owners.

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