Oct 28, 2009
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Cardtronics Announces Third Quarter 2009 Results

HOUSTON, Oct 28, 2009 (GlobeNewswire via COMTEX News Network) -- Cardtronics, Inc. (Nasdaq:CATM) (the "Company"), the world's largest non-bank operator of ATMs, today announced its financial and operational results for the quarter ended September 30, 2009.

Key financial and operational statistics related to the quarter include:



  --  Consolidated revenues of $128.6 million, up 1% from the third
      quarter of 2008, but up 5% when excluding the impact of
      negative foreign currency exchange rate movements
  --  Revenue growth in excess of 8% on a constant-currency basis
  --  for the Company's core business operations, which include the
      Company's domestic company-owned large-account ATM placement
      and branding business and the Company's international
      operations
  --  Gross margins of nearly 32%, up considerably from 24% in the
      third quarter of 2008
  --  Adjusted EBITDA of $32.4 million, up more than 47% from $22.0
      million in the third quarter of 2008
  --  Adjusted Net Income Per Share of $0.24, up 243% from $0.07 in
      the third quarter of 2008
  --  GAAP Net Income of $6.4 million compared to a $4.4 million GAAP
      Net Loss in the third quarter of 2008
  --  Free Cash Flow of nearly $6.5 million, consisting of $16.3
      million of cash provided by operating activities, less $9.8
      million of capital expenditures, enabling an additional
      repayment of $7.5 million in amounts outstanding under the
      Company's revolving credit facility
  --  Continued improvements in several key operating metrics when
      compared to the third quarter of 2008:
      -  Cash withdrawal transactions per ATM per month increased by
         8%
      -  Total transactions per ATM per month increased by 9%

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

Recent highlights include:



  --  Announcement of the Company's entrance into the Puerto Rican
      ATM market.  The Company will initially install ATMs in 11 To
      Go Stores, a San Juan, Puerto Rico-based chain of convenience
      stores and gas stations in 2009, and expects to install ATMs
      in the remaining 15 To Go Stores in 2010
  --  The continued transitioning of the Company's ATM portfolio
      over to its in-house electronic funds transfer ("EFT")
      transaction processing platform.  As of September 30, 2009,
      substantially all of the Company's ATMs were being processed
      in-house, with the exception of roughly 3,500 ATMs that are
      under contract with a third-party processing organization.
      These remaining ATMs are scheduled to be converted over to
      the Company's in-house EFT transaction processing platform by
      the second quarter of 2010
  --  The continued transitioning of the Company's ATMs in the
      United Kingdom over to its in-house armored courier operation.
      As of September 30, 2009, this operation was servicing
      approximately 760 of the Company's ATMs in that market
  --  Continued strong liquidity and access to capital, with over
      $152 million in available borrowing capacity under the
      Company's revolving credit facility with leading financial
      institutions, after taking into consideration outstanding
      letters of credit

"The results for the most recent quarter continued to reflect the positive operating trends that we highlighted during our last quarterly conference call," commented Fred Lummis, Cardtronics' Chairman of the Board and interim Chief Executive Officer. "The combination of strong transaction trends in all of our key markets with the operating improvements implemented by the management team throughout the year helped generate better than expected earnings and cash flows for the quarter, resulting in yet another upward revision in our expected earnings guidance for the remainder of 2009."

THIRD QUARTER RESULTS

For the third quarter of 2009, revenues totaled $128.6 million, representing a 1% increase from the $127.3 million in revenues generated during the third quarter of 2008. However, excluding the impact of unfavorable foreign currency exchange rate movements, year-over-year revenues would have increased by 5%. Such increase reflects over 8% growth in the Company's core business operations, which includes the Company's higher-margin domestic large-account ATM placement, branding and international businesses, offset somewhat by a decline in the Company's lower-margin merchant-owned account base and lower equipment sales as merchants and financial institutions continued to spend less capital in the current economic environment. Although the decline in the Company's merchant-owned account base and equipment sales negatively impacted the year-over-year revenue comparison, the gross profit impact of such declines was negligible. The significant increase in the Company's core revenues was driven by continued strong transaction trends in all of the Company's operating segments, coupled with increased bank branding and surcharge-free network revenues in the United States.

Adjusted EBITDA totaled $32.4 million for the third quarter of 2009, compared to $22.0 million for the third quarter of 2008, and Adjusted Net Income totaled $9.7 million ($0.24 per diluted share), compared to Adjusted Net Income of $2.7 million ($0.07 per diluted share) for the third quarter of 2008. These increases were primarily attributable to significantly higher gross margins in 2009 when compared to 2008, driven by the increase in revenues, as noted above, and the Company's ability to leverage its fixed cost infrastructure to generate those higher revenues. In particular, the Company experienced noticeable declines in its maintenance, armored and merchant fee expenses during the most recent quarter, despite the significant increase in revenues discussed above. Additionally, the Company's vault cash rental costs were significantly lower in 2009 when compared to 2008 due to lower overall market interest rates. The Company's selling, general and administrative expenses were also lower in 2009 when compared to 2008 due to a combination of foreign currency exchange rate movements, lower professional fees, and tight cost controls. Finally, the year-over-year operating improvements can also be attributed to certain negative events that occurred in 2008, such as the impact of Hurricane Ike on the Company's domestic operation and disruptions in its United Kingdom operation associated with a third-party armored courier supplier. 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 quarter totaled $6.4 million, compared to a $4.4 million GAAP Net Loss during the same quarter in 2008. The year-over-year improvement was primarily attributable to the factors identified above in the discussion of Adjusted EBITDA and Adjusted Net Income.

NINE MONTH RESULTS

Revenues totaled $368.6 million for the nine months ended September 30, 2009, representing a 2% decrease when compared to the $374.8 million in revenues recorded during the nine months ended September 30, 2008. As was the case with the Company's quarterly results, the year-over-year decrease in revenues was primarily attributable to unfavorable foreign currency exchange rate movements, a decline in the Company's merchant-owned account base, and lower overall equipment sales.

Adjusted EBITDA totaled $82.8 million for the nine months ended September 30, 2009, representing a 32% increase over the $62.8 million in Adjusted EBITDA for the same period in 2008. Adjusted Net Income totaled $19.8 million ($0.50 per diluted share) for the first nine months of 2009, which was significantly higher than the $6.9 million ($0.18 per diluted share) generated during the first nine months of 2008. Increases in both Adjusted EBITDA and Adjusted Net Income were primarily due to the same factors noted above for the Company's quarterly results.

The Company recorded GAAP Net Income for the nine months ended September 30, 2009 of $3.8 million, compared to a GAAP Net Loss of $12.9 million during the same period last year. As was the case with the quarterly results, the year-over-year improvement was primarily driven by the same factors outlined above with respect to Adjusted EBITDA.

GUIDANCE

The Company is updating the guidance it previously issued regarding its anticipated full-year 2009 results, and now expects the following:



  --  Revenues of $485 million to $490 million;
  --  Overall gross margins of approximately 29.5%;
  --  Adjusted EBITDA of $107 million to $109 million;
  --  Depreciation and accretion expense of $39 million to $40
      million;
  --  Cash interest expense of $30 million to $30.5 million;
  --  Adjusted Net Income of $0.60 to $0.64 per diluted share,
      based on approximately 40 million diluted shares outstanding;
      and
  --  Capital expenditures of approximately $25 million, net of
      minority interest.

The above guidance excludes the impact of certain one-time items as well as $4.6 million of anticipated stock-based compensation expense and approximately $17.0 million to $18.0 million of intangible asset amortization expense. Additionally, the above guidance is based on average foreign currency exchange rates of $1.60 U.S. to 1.00 pounds U.K. and $14.00 Mexican pesos to $1.00 U.S. for the remainder of 2009.

The Company is also providing the following high-level guidance for 2010:



  --  Revenues of $515 million to $525 million;
  --  Adjusted EBITDA of $118 million to $123 million; and
  --  Adjusted net income of $0.75 to $0.85 per diluted share

The above 2010 guidance is based on average foreign currency exchange rates of $1.60 U.S. to 1.00 pounds U.K. and $14.00 Mexican pesos to $1.00 U.S. Additionally, the above guidance for 2010 is subject to the completion of the Company's annual budgeting process. Additional details will be provided during the Company's 2009 year-end earnings conference call, which is scheduled to occur in February 2010.

LIQUIDITY

The Company continues to maintain a very strong liquidity position despite the continued weakness seen in the broader economy and financial markets. The Company's $175.0 million revolving credit facility does not expire until May 2012 and is led by a syndicate of leading banks. As of September 30, 2009, the Company had $17.0 million of debt outstanding under this facility and $5.8 million in letters of credit posted under the facility, leaving $152.2 million in available, committed funding. During the quarter ended September 30, 2009, the Company was able to pay down the borrowings outstanding under the facility by $7.5 million, despite the fact that a semi-annual bond interest payment of $14.0 million was also made during the quarter. The Company is currently in compliance with the covenants contained within this facility and would continue to be in compliance even in the event of substantially higher borrowings or substantially lower Adjusted EBITDA amounts. The Company's remaining indebtedness includes $0.4 million of capital leases in the United States, $6.9 million of equipment loans in Mexico, and $297.1 million in senior subordinated notes, net of discount. The fixed rate senior subordinated notes require no amortization prior to their August 2013 maturity date and contain no maintenance covenants and only limited incurrence covenants under which the Company has considerable flexibility.

It should also be pointed out that the continued generation of pre-tax operating profits could subject the Company to increased federal, state and local income tax cash obligations in many of its jurisdictions. However, the Company currently has in excess $48.0 million of domestic federal net operating loss carryforwards that can be utilized to help offset such future cash tax obligations, subject to certain restrictions and limitations.

DISCLOSURE OF NON-GAAP FINANCIAL INFORMATION

EBITDA, Adjusted EBITDA, Adjusted Net Income, 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 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. Additionally, Adjusted EBITDA and Adjusted Net Income exclude certain non-recurring or non-cash items and therefore, may not be comparable to similarly titled measures employed by other companies. Free Cash Flow is cash provided by operating activities less payments for capital expenditures. 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 statement data prepared in accordance with GAAP.

A reconciliation of net income (loss) to EBITDA, Adjusted EBITDA, and Adjusted Net Income and a calculation of Free Cash Flow are presented in tabular form at the end of this press release.

REVISION OF PRIOR PERIOD RESULTS

During the second quarter of 2009, the Company identified an error related to certain capitalized costs associated with its United Kingdom operations. Upon analysis of the Company's fixed asset records, management identified certain assets related to previously cancelled ATM sites that should have been expensed in prior periods. The impact of such error was an overstatement of fixed assets and depreciation expense, and an understatement of cost of sales and loss on disposal of assets for the years ended December 31, 2007 and 2008, including the related quarterly periods contained therein. The cumulative impact of such error on the statement of operations for the years affected would have been a total additional expense of approximately $1.7 million. Management determined that the effects of the misstatement were not material to any previously reported quarterly or annual period; therefore, the related corrections will be made to the applicable prior periods as such financial information is included in future filings with the SEC. The Company's prior period results reported herein have been revised to reflect these adjustments, the effects of which have been summarized below.



 Statement of Operations:
 (In thousands)

                   Three Months Ended           Nine Months Ended
                   September 30, 2008           September 30, 2008
              ---------------------------  ---------------------------
                 As     Adjust-     As        As     Adjust-    As
              Reported   ments   Adjusted  Reported   ments   Adjusted
              --------  -------  --------  --------  -------  --------

 Cost of ATM
  operating
  revenues    $ 92,903  $  175   $ 93,078  $275,605  $  809   $276,414
 Depreciation
  and
  accretion
  expense       10,048     (70)     9,978    29,169    (181)    28,988
 Loss on
  disposal of
  assets(1)      1,232     226      1,458     3,450     443      3,893
 Income tax
  expense          469     (86)       383       494    (292)       202
 Net loss
  attributable
  to
  controlling
  interests
  and
  available to
  common
  stockholders  (4,173)   (245)    (4,418)  (12,147)   (779)   (12,926)



 (1) Previously included as a component of "Other expense".

CONFERENCE CALL INFORMATION

The Company will host a conference call today, Wednesday, October 28, 2009, at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) to discuss its financial results for the quarter ended September 30, 2009. To access the call, please call the conference call operator at:



 Dial in:               (800) 732-8711
 Alternate dial-in:     (913) 312-0648

Please call in fifteen minutes prior to the scheduled start time, and request to be connected to the "Cardtronics Third Quarter Earnings 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 http://www.cardtronics.com.

A digital replay of the conference call will be available through Wednesday, November 11, 2009, and can be accessed by calling (888) 203-1112 or (719) 457-0820 and entering 7354461 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 November 30, 2009.

ABOUT CARDTRONICS

Headquartered in Houston, Texas, Cardtronics is the world's largest non-bank operator of ATMs. Cardtronics operates approximately 33,000 ATMs across its portfolio, with ATMs in every major market in the United States and Puerto Rico, over 2,600 ATMs throughout the United Kingdom, and over 2,100 ATMs throughout Mexico. Major merchant clients include 7-Eleven(R), Chevron(R), Costco(R), CVS(R)/pharmacy, ExxonMobil(R), Rite Aid(R), Safeway(R), Sunoco(R), Target(R), and Walgreens(R). Complementing its ATM operations, Cardtronics works with financial institutions of all sizes to provide their customers with convenient cash access and deposit capabilities through ATM branding, surcharge-free programs, and image deposit services. Approximately 11,200 Cardtronics owned and operated ATMs currently feature bank brands. For more information, please visit the Company's website at http://www.cardtronics.com.

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

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give our current expectations or forecasts of future events, future financial performance, strategies, expectations, competitive environment, regulation, and availability of resources. Many of the forward-looking statements contained in this release relate to our third quarter financial results and the underlying business events which generated those results. They include, among other things, statements concerning projections, predictions, expectations, estimates or forecasts as to our 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. Such 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. Such risks and uncertainties include, but are not limited to, the following:



  --  our financial outlook and the financial outlook of the ATM
      industry;
  --  our ability to cope with and develop business strategies
      dealing with the deterioration experienced in global credit
      markets;
  --  our ability to provide new ATM solutions to financial
      institutions;
  --  our ATM vault cash rental needs, including liquidity issues
      with our vault cash providers;
  --  the implementation of our corporate strategy;
  --  our ability to compete successfully with our competitors;
  --  our financial performance;
  --  our ability to strengthen existing customer relationships and
      reach new customers;
  --  our ability to meet the service levels required by our service
      level agreements with our customers;
  --  our ability to pursue and successfully integrate acquisitions;
  --  our ability to expand internationally;
  --  our ability to prevent security breaches;
  --  changes in interest rates, foreign currency rates and
      regulatory requirements; and
  --  the additional risks we are exposed to in our armored
      transport business.

Other factors that could cause our actual performance or results to differ from our projected results are described in our filings with the SEC, including our 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. We assume no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information.



                Consolidated Statements of Operations
   For the Three and Nine Months Ended September 30, 2009 and 2008
                             (Unaudited)
        (In thousands, except share and per share information)

                          Three Months Ended       Nine Months Ended
                             September 30,           September 30,
                        ----------------------  ----------------------
                           2009        2008        2009        2008
                        ----------  ----------  ----------  ----------

 Revenues:
 ATM operating revenues $  126,194  $  122,608  $  361,136    $361,773
 ATM product sales and
  other revenues             2,409       4,651       7,460      13,036
                        ----------  ----------  ----------  ----------
  Total revenues           128,603     127,259     368,596     374,809
 Cost of revenues:
 Cost of ATM operating
  revenues (exclusive of
  depreciation,
  accretion, and
  amortization shown
  separately below)         85,083      93,078     251,287     276,414
 Cost of ATM product
  sales and other
  revenues                   2,678       4,064       7,645      11,890
                        ----------  ----------  ----------  ----------
  Total cost of revenues    87,761      97,142     258,932     288,304
  Gross profit              40,842      30,117     109,664      86,505
 Operating expenses:
 Selling, general, and
  administrative
  expenses(1)                9,210      10,387      30,649      28,738
 Depreciation and
  accretion expense          9,986       9,978      29,560      28,988
 Amortization expense        4,405       4,657      13,436      13,661
 Loss on disposal of
  assets                     1,047       1,458       4,831       3,893
                        ----------  ----------  ----------  ----------
  Total operating
   expenses                 24,648      26,480      78,476      75,280
 Income from operations     16,194       3,637      31,188      11,225
 Other expense (income):
 Interest expense, net       7,473       7,913      22,828      23,267
 Amortization of
  deferred financing
  costs and bond
  discounts                    606         531       1,777       1,569
 Other expense (income)        339          42        (788)        (73)
                        ----------  ----------  ----------  ----------
  Total other expense        8,418       8,486      23,817      24,763

 Income (loss) before
  income taxes               7,776      (4,849)      7,371     (13,538)
 Income tax expense          1,251         383       3,284         202
                        ----------  ----------  ----------  ----------
 Net income (loss)           6,525      (5,232)      4,087     (13,740)
 Net income (loss)
  attributable
  to noncontrolling
  interests                    127        (814)        269        (814)
 Net income (loss)
  attributable to
  controlling interests
  and available
  to common
  shareholders          $    6,398  $   (4,418) $    3,818  $  (12,926)
                        ----------  ----------  ----------  ----------

 Net income (loss) per
  common share - basic  $     0.16  $    (0.11) $     0.09  $    (0.33)
                        ==========  ==========  ==========  ==========
 Net income (loss) per
  common share -
  diluted               $     0.15  $    (0.11) $     0.09  $    (0.33)
                        ==========  ==========  ==========  ==========

 Weighted average
  shares outstanding
  - basic               39,356,013  38,920,887  39,123,738  38,749,233
                        ==========  ==========  ==========  ==========
 Weighted average shares
  outstanding - diluted 40,117,598  38,920,887  39,768,708  38,749,233
                        ==========  ==========  ==========  ==========



 (1) Selling, general, and administrative expenses for the nine months
     ended September 30, 2009 includes $1.2 million in severance costs
     associated with the departure of the Company's former Chief
     Executive Officer in March 2009 and $1.0 million of additional
     stock-based compensation expense associated with the restricted
     stock and option awards granted in 2008 and 2009.



                     Consolidated Balance Sheets
            As of September 30, 2009 and December 31, 2008
                             (Unaudited)
                            (In thousands)

                                            September 30, December 31,
                                                2009         2008
                                            ------------- ------------

 Assets

 Current assets:
  Cash and cash equivalents                 $      6,141  $      3,424
  Accounts and notes receivable, net              25,191        25,317
  Inventory                                        3,206         3,011
  Restricted cash, short-term                      3,128         2,423
  Prepaid expenses, deferred costs,
   and other current assets                        8,753        17,273
                                            ------------- ------------
   Total current assets                           46,419        51,448
 Property and equipment, net                     146,526       153,430
 Intangible assets, net                           94,755       108,327
 Goodwill                                        165,069       163,784
 Prepaid expenses, deferred costs,
  and other assets                                 4,426         3,839
                                            ------------- ------------
   Total assets                             $    457,195  $    480,828
                                            ============= ============

 Liabilities and Stockholders' Deficit

 Current liabilities:
  Current portion of long-term debt
   and notes payable                        $      1,771  $      1,373
  Current portion of capital lease
   obligations                                       413           757
  Current portion of other long-term
   liabilities                                    26,059        24,302
  Accounts payable and other accrued and
   current liabilities                            59,923        72,386
                                            ------------- ------------
   Total current liabilities                      88,166        98,818
 Long-term liabilities:
  Long-term debt, net of related discounts       319,174       344,816
  Capital lease obligations                           --           235
  Deferred tax liability, net                     14,509        11,673
  Asset retirement obligations                    23,359        21,069
  Other long-term liabilities                     20,278        23,967
                                            ------------- ------------
   Total liabilities                             465,486       500,578
 Stockholders' deficit                            (8,291)      (19,750)
                                            ------------- ------------
   Total liabilities and stockholders'
    deficit                                 $    457,195  $    480,828
                                            ============= ============



 SELECTED INCOME STATEMENT DETAIL:

 Total revenues by segment:
 (In thousands)

                                Three Months Ended   Nine Months Ended
                                  September 30,        September 30,
                                ------------------  ------------------
                                  2009      2008      2009      2008
                                --------  --------  --------  --------

 United States                  $104,019  $102,484  $303,056  $306,888
 United Kingdom                   19,986    20,132    52,794    57,473
 Mexico                            4,598     4,643    12,746    10,448
                                --------  --------  --------  --------
  Total revenues                $128,603  $127,259  $368,596  $374,809
                                ========  ========  ========  ========



 Breakout of ATM operating revenues:
 (In thousands)

                                Three Months Ended   Nine Months Ended
                                  September 30,        September 30,
                                ------------------  ------------------
                                  2009      2008      2009      2008
                                --------  --------  --------  --------

 Surcharge revenues             $ 65,890  $ 68,923  $192,340  $203,743
 Interchange revenues             39,329    36,792   110,853   107,101
 Bank branding and
  surcharge-free network
  revenues                        17,721    14,103    49,618    42,614
 Other revenues                    3,254     2,790     8,325     8,315
                                --------  --------  --------  --------
  Total ATM operating revenues  $126,194  $122,608  $361,136  $361,773
                                ========  ========  ========  ========



 Breakout of Cost of ATM operating revenues (exclusive of
 depreciation, accretion, and amortization):
 (In thousands)

                                Three Months Ended   Nine Months Ended
                                  September 30,        September 30,
                                ------------------  ------------------
                                  2009      2008      2009      2008
                                --------  --------  --------  --------

 Merchant commissions           $ 40,563  $ 42,798  $118,062  $125,778
 Vault cash rental expense         8,488    12,014    24,590    35,832
 Other cost of cash               10,715    12,187    33,537    35,375
 Repairs and maintenance           9,518     9,904    29,462    28,736
 Communications                    3,795     4,223    11,201    13,026
 Transaction processing            2,427     2,517     7,278     8,627
 Stock-based compensation            207       228       590       424
 Other expenses                    9,370     9,207    26,567    28,616
                                --------  --------  --------  --------
  Total cost of ATM operating
   revenues                     $ 85,083  $ 93,078  $251,287  $276,414
                                ========  ========  ========  ========



 Breakout of Selling, general, and administrative expenses:
 (In thousands)

                                Three Months Ended   Nine Months Ended
                                  September 30,        September 30,
                                ------------------  ------------------
                                  2009      2008      2009      2008
                                --------  --------  --------  --------

 Employee costs                 $  5,382  $  4,659  $ 17,439  $ 14,145
 Stock-based compensation          1,050     1,129     2,786     1,743
 Professional fees                   967     1,877     3,575     5,006
 Other                             1,811     2,722     6,849     7,844
                                --------  --------  --------  --------
  Total selling, general, and
   administrative expenses      $  9,210  $ 10,387  $ 30,649  $ 28,738
                                ========  ========  ========  ========



 SELECTED BALANCE SHEET DETAIL:

 Long-term debt and capital lease obligations:
 (In thousands)

                                            September 30, December 31,
                                                2009          2008
                                            ------------- ------------


 Series A and Series B senior subordinated
  notes                                     $     297,085 $    296,637
 Revolving credit facility                         17,000       43,500
 Equipment financing lines of Mexico
  subsidiary                                        6,860        6,052
 Capital lease obligations                            413          992
                                            ------------- ------------
  Total long-term debt and capital lease
   obligations                              $     321,358 $    347,181
                                            ============= ============



 Share count rollforward:

                                            -------------
 Total shares outstanding as of
  December 31, 2008                           40,636,533
 Shares repurchased                             (119,928)
 Shares issued - restricted stock grants
  and stock option exercises                     351,599
 Shares forfeited - restricted stock            (195,000)
                                            -------------
  Total shares outstanding as of
   September 30, 2009                          40,673,204
                                            =============



 SELECTED CASH FLOW DETAIL:

 Selected cash flow statement amounts:
 (In thousands)

                                Three Months Ended   Nine Months Ended
                                   September 30,       September 30,
                                ------------------  ------------------
                                  2009      2008      2009      2008
                                --------  --------  --------  --------

 Cash provided by operating
  activities                    $ 16,286  $  3,539  $ 48,991  $ 10,964
 Cash used in investing
  activities                      (9,366)  (11,069)  (20,165)  (54,004)
 Cash provided by (used in)
  financing activities            (7,234)    3,693   (26,566)   31,063
 Effect of exchange rate
  changes on cash                    (37)     (113)      457      (257)
                                --------  --------  --------  --------
  Net increase (decrease) in
   cash and cash equivalents    $   (351) $ (3,950) $  2,717  $(12,234)
 Cash and cash equivalents at
  beginning of period              6,492     5,155     3,424    13,439
                                --------  --------  --------  --------
 Cash and cash equivalents at
  end of period                 $  6,141  $  1,205  $  6,141  $  1,205
                                ========  ========  ========  ========



                        Key Operating Metrics
   For the Three and Nine Months Ended September 30, 2009 and 2008
                             (Unaudited)

                                Three Months Ended   Nine Months Ended
                                   September 30,       September 30,
                                ------------------  ------------------
                                  2009      2008      2009      2008
                                --------  --------  --------  --------
 Average number of transacting
  ATMs:

 United States: Company-owned     18,156    18,042    18,201    17,983
 United States: Merchant-owned    10,054    10,641    10,110    10,781
 United Kingdom                    2,630     2,518     2,581     2,389
 Mexico                            2,155     1,905     2,125     1,645
                                --------  --------  --------  --------
  Total average number of
   transacting ATMs               32,995    33,106    33,017    32,798
                                ========  ========  ========  ========

 Total transactions (in
  thousands)                      99,794    91,853   285,647   264,678
 Total cash withdrawal
  transactions (in thousands)     63,558    59,095   183,169   171,694
 Monthly cash withdrawal
  transactions per ATM               642       595       616       582

 Per ATM per month amounts:

 ATM operating revenues(1)      $  1,275  $  1,234  $  1,215  $  1,226
 Cost of ATM operating
  revenues(2)                        860       937       846       936
                                --------  --------  --------  --------
  ATM operating gross profit(3) $    415  $    297  $    369  $    290
                                ========  ========  ========  ========

 ATM operating gross margin(2)      32.6%     24.1%     30.4%     23.6%

 Capital expenditures (in
  thousands)(4)                 $  9,809  $ 10,718  $ 20,608  $ 53,671
 Capital expenditures, net of
  noncontrolling interest (in
  thousands)(4)                 $  8,897  $  9,943  $ 19,396  $ 51,541



 (1) ATM operating revenues per ATM per month was negatively affected
     by the foreign currency exchange rate movements between the three
     and nine month periods ended September 30, 2009 and 2008.

 (2) Amounts presented exclude the effects of depreciation, accretion,
     and amortization expense, which are presented separately in our
     consolidated statements of operations.

 (3) ATM operating gross profit is a measure of profitability that
     uses only the revenue and expenses that relate to operating the
     ATMs in our portfolio. Revenues and expenses from ATM equipment
     sales and other ATM-related services are not included.

 (4) Includes capital expenditures financed by direct
     debt for the three and nine month periods ended September 30,
     2009.


                              Reconciliation of
                                 Net Income
                                  (Loss)
                                 to EBITDA,
                               Adjusted EBITDA,
                          and Adjusted Net Income


     For the Three and Nine Months Ended September 30, 2009 and 2008
                              (Unaudited)
          (In thousands, except share and per share amounts)


                          Three Months Ended       Nine Months Ended
                            September 30,            September 30,
                        ----------------------  ----------------------
                           2009        2008        2009        2008
                        ----------  ----------  ----------  ----------

 Net income (loss)      $    6,398  $   (4,418) $    3,818  $  (12,926)
 Adjustments:
  Interest expense, net      7,473       7,913      22,828      23,267
  Amortization of
   deferred financing
   costs and bond
   discounts                   606         531       1,777       1,569
  Income tax expense         1,251         383       3,284         202
  Depreciation and
   accretion expense         9,986       9,978      29,560      28,988
  Amortization expense       4,405       4,657      13,436      13,661
                        ----------  ----------  ----------  ----------
 EBITDA                 $   30,119  $   19,044  $   74,703  $   54,761
                        ----------  ----------  ----------  ----------

 Add back:
  Loss on disposal of
   assets(1)                 1,047       1,458       4,831       3,893
  Other (income) loss          339          42        (788)        (73)
  Noncontrolling
   interests                  (381)     (1,083)       (947)     (1,229)
  Stock-based
   compensation expense      1,257       1,356       3,376       2,167
  Other adjustments to
   cost of ATM operating
   revenues(2)                  --         774         154       3,026
  Other adjustments to
   selling, general, and
   administrative
   expenses(3)                  --         380       1,463         292
                        ----------  ----------  ----------  ----------
 Adjusted EBITDA        $   32,381  $   21,971  $   82,792  $   62,837
                        ----------  ----------  ----------  ----------
 Less:
  Interest expense, net      7,473       7,913      22,828      23,267
  Depreciation and
   accretion expense         9,986       9,978      29,560      28,988
  Income tax expense
   (at 35%)                  5,223       1,428      10,642       3,704
                        ----------  ----------  ----------  ----------
 Adjusted Net Income    $    9,699  $    2,652  $   19,762  $    6,878
                        ==========  ==========  ==========  ==========

 Adjusted Net Income
  per share             $     0.25  $     0.07  $     0.51  $     0.18
                        ==========  ==========  ==========  ==========
 Adjusted Net Income
  per diluted share     $     0.24  $     0.07  $     0.50  $     0.18
                        ==========  ==========  ==========  ==========

 Weighted average
  shares outstanding
  - basic               39,356,013  38,920,887  39,123,738  38,749,233
                        ==========  ==========  ==========  ==========
 Weighted average shares
  outstanding - diluted 40,117,598  39,884,775  39,768,708  39,866,755
                        ==========  ==========  ==========  ==========



 (1) Primarily comprised of losses on the disposal of fixed that were
     incurred with the deinstallation of ATMs during the periods.
 (2) For the nine month period ended September 30, 2009 and the three
     and nine month periods ended September 30, 2008, other
     adjustments to cost of ATM operating revenues primarily consisted
     of costs associated with the continued conversion of ATMs in the
     Company's portfolio over to its in-house EFT processing platform
     and development costs associated with the start-up of the
     Company's in-house armored operation in the United Kingdom.
 (3) For the nine month period ended September 30, 2009, other
     adjustments to selling, general, and administrative expenses
     primarily consisted of severance costs associated with departure
     of the Company's former Chief Executive Officer in March 2009.



                   Reconciliation of Free Cash Flow
   For the Three and Nine Months Ended September 30, 2009 and 2008
                             (Unaudited)
                            (In thousands)

                                Three Months Ended   Nine Months Ended
                                   September 30,       September 30,
                                ------------------  ------------------
                                  2009      2008      2009       2008
                                --------  --------  --------  --------
 Cash provided by operating
  activities                    $ 16,286  $  3,537  $ 48,991  $ 10,964
 Payments for capital
  expenditures(1)                  9,809    11,069    20,608    54,021
                                --------  --------  --------  --------
   Free cash flow               $  6,477  $ (7,532) $ 28,383  $(43,057)
                                ========  ========  ========  ========



 (1) Capital expenditures exclude acquisitions and include made for
     exclusive license agreements, site acquisition costs, and capital
     expenditures financed by direct debt.



  Reconciliation of Estimated Net Income to EBITDA, Adjusted EBITDA,
                       and Adjusted Net Income
                For the Year Ending December 31, 2009
                             (Unaudited)
               (In millions, except per share amounts)

                                                     Estimated Range
                                                     Full Year 2009
                                                   -------------------

 Net income                                        $   2.5  -  $   8.5
 Adjustments:
  Interest expense, net                               30.5  -     30.0
  Amortization of deferred financing costs and
   bond discounts                                      2.4  -      2.4
  Income tax expense                                   4.1  -      4.1
  Depreciation and accretion expense                  40.0  -     39.0
  Amortization expense                                18.0  -     17.0
                                                   -------------------
 EBITDA                                            $  97.5  -  $ 101.0
                                                   -------------------

 Add back:
  Noncontrolling interests                            (1.5) -     (1.5)
  Stock-based compensation expense                     5.0  -      4.5
  Other adjustments                                    6.0  -      5.0
                                                   -------------------
 Adjusted EBITDA                                   $ 107.0  -  $ 109.0
                                                   -------------------
 Less:
  Interest expense, net                               30.5  -     30.0
  Depreciation and accretion expense                  40.0  -     39.0
  Income tax expense (at 35%)                         12.8  -     14.0
                                                   -------------------
 Adjusted Net Income                               $  23.7  -  $  26.0
                                                   ===================

 Adjusted Net Income per diluted share             $  0.60  -  $  0.64
                                                   ===================

 Weighted average shares outstanding - diluted        39.5  -     40.5
                                                   ===================

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: Cardtronics, Inc.

CONTACT:  Cardtronics, Inc.
Investors:
J. Chris Brewster, Chief Financial Officer
832-308-4128
cbrewster@cardtronics.com
Media:
Joel Antonini, Vice President - Marketing
832-308-4131
joel.antonini@cardtronics.com

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