Feb 11, 2010
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Cardtronics Announces Fourth Quarter and Full-Year 2009 Results

HOUSTON, Feb 11, 2010 (GlobeNewswire via COMTEX News Network) -- Cardtronics, Inc. (Nasdaq:CATM) (the "Company"), the world's largest non-bank owner of ATMs, today announced its financial and operational results for the quarter and year ended December 31, 2009.

  --  Key financial and operational statistics related to the quarter include:
  --  Consolidated revenues of $124.8 million, up 6% from the fourth quarter
      of 2008
  --  Revenue growth of approximately 8% 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 31%, up considerably from 24% in the fourth quarter of
      2008
  --  Adjusted EBITDA of $27.6 million, up more than 44% from $19.1 million in
      the fourth quarter of 2008
  --  Adjusted Net Income per Share of $0.17, up from $0.02 in the fourth
      quarter of 2008
  --  GAAP Net Income of $1.5 million compared to a $58.5 million GAAP Net
      Loss in the fourth quarter of 2008
  --  Free Cash Flow of nearly $18.0 million, consisting of $27.0 million of
      cash provided by operating activities, less $9.0 million of capital
      expenditures, enabling the repayment of all amounts previously
      outstanding under the Company's revolving credit facility
  --  Continued improvements in several key operating metrics when compared to
      the fourth quarter of 2008:


  --  Total cash withdrawal transactions and cash withdrawal transactions per
      ATM per month increased by 8%
  --  Total transactions per ATM per month increased by 10%
  --  ATM operating gross profit per ATM per month increased by 43%


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.

"2009 was truly an outstanding year for Cardtronics," commented Fred Lummis, Cardtronics' Chairman of the Board. "Over this past year, we took steps to strengthen and diversify the Company by leveraging past investments, controlling our costs and maintaining our high level of customer service. The results of these efforts were record revenues and cash flows, which allowed us to pay off our entire revolving loan balance in 2009 and reduce our ratio of debt to Adjusted EBITDA from 4.2x at the end of 2008 to 2.8x at the end of 2009. Additionally, we continued to see favorable transaction trends in all of our key markets, further validating the earnings generation capabilities of our existing network. With these positive factors and the recent hiring of Steve Rathgaber as our new Chief Executive Officer, Cardtronics is extremely well-positioned to not only continue these positive trends, but to also expand its services and offerings in ways that further leverage the Company's valuable network."

RECENT HIGHLIGHTS

  --  The selection of Steven A. Rathgaber as the Company's new Chief
      Executive Officer and member of the Company's Board of Directors,
      effective February 1, 2010. Mr. Rathgaber, a seasoned payments industry
      executive, brings over 32 years of broad payment product and network
      experience to the Company.
  --  The successful renewal of the Company's contract with CO-OP Financial
      Services, under which the Company's ATMs located in 7-Eleven stores will
      continue to be a part of the CO-OP network through July 2014. Each
      month, CO-OP members conduct more than 3.2 million surcharge-free
      transactions on Cardtronics ATMs in 7-Eleven stores.
  --  The successful execution of two ATM managed services agreements with
      Carnival Cruise Lines and the American Airlines Center, under which
      Cardtronics will provide transaction processing and other related ATM
      management services to such customers.
  --  The planned expansion of the Company's United Kingdom in-house armored
      car operation. As of December 31, 2009, this operation was servicing
      approximately 780 of the Company's ATMs through its London-based depot.
      The Company expects to open a second depot based in Manchester during
      the second quarter of 2010, which will allow the Company to service an
      additional 800 ATMs in the United Kingdom.
  --  Continued strong liquidity and access to capital, with over $170 million
      in available borrowing capacity under the Company's revolving credit
      facility with leading financial institutions, after taking into
      consideration outstanding letters of credit


FOURTH QUARTER RESULTS

For the fourth quarter of 2009, revenues totaled $124.8 million, representing a 6% increase from the $118.2 million in revenues generated during the fourth quarter of 2008. This increase reflects 8% growth in the Company's core business operations, which include 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 these declines negatively impacted the year-over-year revenue comparison, the gross profit impact of such declines was negligible as the Company's gross margins increased to 31% for the fourth quarter of 2009 compared to 24% for the same period in 2008. The significant increase in the Company's core revenues was driven by continued strong cash withdrawal transaction trends in all of the Company's operating segments, coupled with increased bank branding and surcharge-free network revenues in the United States. Furthermore, unlike the previous quarters during 2009, the impact of foreign currency exchange rate movements on the Company's comparative results for the fourth quarter of 2009 was negligible.

Adjusted EBITDA totaled $27.6 million for the fourth quarter of 2009, compared to $19.1 million for the fourth quarter of 2008, and Adjusted Net Income totaled $6.8 million ($0.17 per diluted share), compared to Adjusted Net Income of $0.7 million ($0.02 per diluted share) for the fourth 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, the continued shifting of revenues from lower-margin surcharge revenues to higher-margin interchange and surcharge-free network and bank branding revenues, and the Company's ability to leverage its fixed cost infrastructure to generate strong margins from those higher revenues. In particular, the Company experienced noticeable declines in its maintenance and armored car 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. 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 $1.5 million, compared to a $58.5 million GAAP Net Loss during the same quarter in 2008. The 2008 net loss figure includes a non-cash charge totaling $50 million related to the impairment of the Company's goodwill associated with its United Kingdom operation as of December 31, 2008.

FULL-YEAR RESULTS

Revenues totaled $493.4 million for the year ended December 31, 2009, which is comparable to the $493.0 million in revenues recorded during the year ended December 31, 2008. However, on a constant currency basis, which is defined in the "Disclosure of Non-GAAP Financial Information" below, year-over-year revenues increased by 4%. Although total revenues remained fairly constant between the two years, approximately $18.1 million in revenues shifted from surcharge revenue and equipment sales in 2008, to interchange and surcharge-free network and bank branding revenues in 2009. This shift was primarily due to the mix shift from the Company's merchant-owned account base to its core business operations, as noted above for the Company's quarterly results.

Adjusted EBITDA totaled $110.4 million for the year ended December 31, 2009, representing a 35% increase over the $81.9 million in Adjusted EBITDA for the same period in 2008. Adjusted Net Income totaled $26.5 million ($0.67 per diluted share) for 2009, which was significantly higher than the $7.6 million ($0.19 per diluted share) generated during 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 year ended December 31, 2009 of $5.3 million, compared to a GAAP Net Loss of $71.4 million during 2008. As previously mentioned, the 2008 net loss figure includes a $50 million goodwill impairment charge related to the Company's United Kingdom segment. Excluding this goodwill impairment charge, the Company's year-over-year improvement was primarily attributable to the factors identified above in the discussion of Adjusted EBITDA and Adjusted Net Income.

GUIDANCE

Below is the Company's financial guidance for the fiscal year ending December 31, 2010:

  --  Revenues of $520 million to $530 million;
  --  Overall gross margins of approximately 30% to 30.5%;
  --  Adjusted EBITDA of $118 million to $123 million;
  --  Depreciation and accretion expense of $40 million to $41 million;
  --  Cash interest expense of $29 million to $30 million;
  --  Adjusted Net Income of $0.75 to $0.85 per diluted share, based on
      approximately 41.5 million diluted shares outstanding; and
  --  Capital expenditures of approximately $45 million, net of noncontrolling
      interests.


The above guidance excludes the impact of certain one-time items as well as $6 million to $6.5 million of anticipated stock-based compensation expense and approximately $14 million to $15 million of intangible asset amortization expense. Additionally, the above guidance is based on estimated average foreign currency exchange rates of $1.60 U.S. to 1.00 pound U.K. and $13.50 Mexican pesos to $1.00 U.S.

LIQUIDITY

The Company continues to maintain a very strong liquidity position. 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 December 31, 2009, the Company had no amounts outstanding under the facility and $4.7 million in letters of credit posted under the facility, leaving $170.3 million in available, committed funding. 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 $0.2 million of capital leases in the United States, $9.8 million of equipment loans in Mexico, and $297.2 million in senior subordinated notes, net of discounts. 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.

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 of $38 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, Free Cash Flow, and amounts provided on a constant currency basis 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. Amounts provided on a constant currency basis are calculated by applying the foreign exchange rate in effect for the applicable prior period to the current year amounts denominated in the respective local currencies. 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) Attributable to Controlling Interests 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, primarily related to previously cancelled ATM sites, which 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 are being 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.


                                                  Three Months Ended                 Twelve Months Ended
  Statement of Operations:                         December 31, 2008                 December 31, 2008
                                           ---------------------------------  --------------------------------

                                               As                      As        As                      As
                                            Reported   Adjustments  Adjusted   Reported  Adjustments  Adjusted
                                           ----------  -----------  --------  ---------  -----------  --------
                                           (In thousands)

  Cost of ATM operating revenues              $90,032         $205   $90,237  $ 377,527       $1,014  $378,541
  Depreciation and accretion expense           10,245         (69)    10,176     39,414        (250)    39,164
  Loss on disposal of assets(1)                 1,834           80     1,914      5,284          523     5,807
  Income tax expense                              444          343       787        938           51       989
  Net loss attributable to controlling
   interests and available to common
   stockholders                              (57,890)        (559)  (58,449)   (70,037)      (1,338)  (71,375)


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

CONFERENCE CALL INFORMATION

The Company will host a conference call today, Thursday, February 11, 2010, at 7:30 a.m. Central Time (8:30 a.m. Eastern Time) to discuss its financial results for the quarter and year ended December 31, 2009. To access the call, please call the conference call operator at:

Dial in: (800) 946-0722

Alternate dial-in: (719) 457-2647

Please call in fifteen minutes prior to the scheduled start time and request to be connected to the "Cardtronics Fourth 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 Thursday, February 25, 2010, and can be accessed by calling (888) 203-1112 or (719) 457-0820 and entering 4035703 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 11, 2010.

ABOUT CARDTRONICS

Headquartered in Houston, Texas, Cardtronics is the world's largest non-bank owner of ATMs. Cardtronics operates over 33,400 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 2,600 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 11,100 Cardtronics owned and operated ATMs currently feature bank brands. For more information, please visit the Company's website at http://www.cardtronics.com.

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 fourth 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.

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

                        Consolidated Statements of Operations
           For the Three and Twelve Months Ended December 31, 2009 and 2008
                                     (Unaudited)



                                      Three Months Ended      Twelve Months Ended
                                         December 31,             December 31,
                                   ------------------------  ----------------------

                                       2009         2008        2009        2008
                                   ------------  ----------  ----------  ----------
                                      (In thousands, except share and per share
                                                     information)
  Revenues:
  ATM operating revenues               $122,002    $114,027    $483,138    $475,800
  ATM product sales and other
   revenues                               2,755       4,178      10,215      17,214
                                   ------------  ----------  ----------  ----------
   Total revenues                       124,757     118,205     493,353     493,014
  Cost of revenues:
  Cost of ATM operating revenues
   (exclusive of depreciation,
   accretion, and amortization
   shown separately below)               82,620      86,502     333,907     362,916
  Cost of ATM product sales and
   other revenues                         2,922       3,735      10,567      15,625
                                   ------------  ----------  ----------  ----------
   Total cost of revenues                85,542      90,237     344,474     378,541
   Gross profit                          39,215      27,968     148,879     114,473
  Operating expenses:
  Selling, general, and
   administrative expenses (1)           10,878      10,330      41,527      39,068
  Depreciation and accretion
   expense                                9,860      10,176      39,420      39,164
  Amortization expense                    5,480       4,888      18,916      18,549
  Loss on disposal of assets              1,185       1,914       6,016       5,807

  Goodwill impairment                        --      50,003          --      50,003
                                   ------------  ----------  ----------  ----------
   Total operating expenses              27,403      77,311     105,879     152,591
  Income (loss) from operations          11,812    (49,343)      43,000    (38,118)
  Other expense:
  Interest expense, net                   7,305       7,823      30,133      31,090
  Amortization of deferred
   financing costs and bond
   discounts                                618         538       2,395       2,107

  Other expense                           1,244         166         456          93
                                   ------------  ----------  ----------  ----------
   Total other expense                    9,167       8,527      32,984      33,290

  Income (loss) before income
   taxes                                  2,645    (57,870)      10,016    (71,408)

  Income tax expense                        961         787       4,245         989
                                   ------------  ----------  ----------  ----------
  Net income (loss)                       1,684    (58,657)       5,771    (72,397)
  Net income (loss) attributable
   to noncontrolling interests              225       (208)         494     (1,022)
                                   ------------  ----------  ----------  ----------
  Net income (loss) attributable
   to controlling interests and
   available to common
   shareholders                          $1,459   ($58,449)      $5,277   ($71,375)
                                   ------------  ----------  ----------  ----------

  Net income (loss) per common
   share -- basic                         $0.04     ($1.50)       $0.13     ($1.84)
                                   ============  ==========  ==========  ==========
  Net income (loss) per common
   share -- diluted                       $0.03     ($1.50)       $0.13     ($1.84)
                                   ============  ==========  ==========  ==========

  Weighted average shares
   outstanding -- basic              39,600,166  38,957,820  39,244,057  38,800,782
                                   ============  ==========  ==========  ==========
  Weighted average shares
   outstanding -- diluted            40,910,286  38,957,820  39,896,366  38,800,782
                                   ============  ==========  ==========  ==========
  _____________________
  (1) Selling, general, and administrative expenses for the twelve months ended
   December 31, 2009 includes $1.2 million in severance costs associated with the
   departure of the Company's former Chief Executive Officer in March 2009 and $0.9
   million of additional stock-based compensation expense compared to the twelve
   months ended December 31, 2008.

               Consolidated Balance Sheets
       As of December 31, 2009 and December 31, 2008
                       (Unaudited)


                                     December   December
                                     31, 2009   31, 2008
                                    ----------  --------
                                       (In thousands)
  Assets
  Current assets:
   Cash and cash equivalents           $10,449    $3,424
   Accounts and notes receivable,
    net                                 27,700    25,317
   Inventory                             2,617     3,011
   Restricted cash, short-term           3,452     2,423
   Prepaid expenses, deferred
    costs, and other current
    assets                               8,850    17,273
                                    ----------  --------
     Total current assets               53,068    51,448
  Property and equipment, net          147,348   153,430
  Intangible assets, net                89,036   108,327
  Goodwill                             165,166   163,784
  Prepaid expenses, deferred
   costs, and other assets               5,786     3,839
                                    ----------  --------

     Total assets                     $460,404  $480,828
                                    ==========  ========

  Liabilities and Stockholders'
   Deficit
  Current liabilities:
   Current portion of long-term
    debt and notes payable              $2,122    $1,373
   Current portion of capital
    lease obligations                      235       757
   Current portion of other
    long-term liabilities               26,047    24,302
   Accounts payable and other
    accrued and current
    liabilities                         72,000    72,386
                                    ----------  --------
     Total current liabilities         100,404    98,818
  Long-term liabilities:
   Long-term debt, net of related
    discounts                          304,930   344,816
   Capital lease obligations                --       235
   Deferred tax liability, net          13,858    11,673
   Asset retirement obligations         24,003    21,069

   Other long-term liabilities          18,499    23,967
                                    ----------  --------
     Total liabilities                 461,694   500,578

  Stockholders' deficit                (1,290)  (19,750)
                                    ----------  --------
     Total liabilities and
      stockholders' deficit           $460,404  $480,828
                                    ==========  ========


  SELECTED INCOME STATEMENT
   DETAIL:
  -------------------------------

  Total revenues by segment:

                                    Three Months Ended   Twelve Months Ended
                                       December 31,         December 31,
                                   --------------------  -------------------

                                      2009       2008      2009       2008
                                   ----------  --------  --------  ---------
                                                (In thousands)
  United States                       $98,878   $97,828  $401,934   $404,716
  United Kingdom                       20,302    16,682    73,096     74,155

  Mexico                                5,577     3,695    18,323     14,143
                                   ----------  --------  --------  ---------

   Total revenues                    $124,757  $118,205  $493,353   $493,014
                                   ==========  ========  ========  =========

  Breakout of ATM operating revenues:

                                    Three Months Ended   Twelve Months Ended
                                       December 31,         December 31,
                                   --------------------  -------------------

                                      2009       2008      2009       2008
                                   ----------  --------  --------  ---------
                                                (In thousands)
  Surcharge revenues                  $62,163   $62,582  $254,503   $266,326
  Interchange revenues                 39,055    34,081   149,908    141,865
  Bank branding and
   surcharge-free network
   revenues                            17,908    15,365    67,873     58,313

  Other revenues                        2,876     1,999    10,854      9,296
                                   ----------  --------  --------  ---------

   Total ATM operating revenues      $122,002  $114,027  $483,138   $475,800
                                   ==========  ========  ========  =========

  Total cost of revenues by segment:

                                    Three Months Ended   Twelve Months Ended
                                       December 31,         December 31,
                                   --------------------  -------------------

                                      2009       2008      2009       2008
                                   ----------  --------  --------  ---------
                                                (In thousands)
  United States                       $67,125   $71,742  $279,582   $302,152
  United Kingdom                       14,456    15,428    51,419     64,566

  Mexico                                3,961     3,067    13,473     11,823
                                   ----------  --------  --------  ---------

   Total cost of revenues             $85,542   $90,237  $344,474   $378,541
                                   ==========  ========  ========  =========

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


                                    Three Months Ended   Twelve Months Ended
                                       December 31,         December 31,
                                   --------------------  -------------------

                                      2009       2008      2009       2008
                                   ----------  --------  --------  ---------
                                                (In thousands)
  Merchant commissions                $38,874   $38,760  $156,936   $164,538
  Vault cash rental expense             8,764    10,546    33,950     46,780
  Other cost of cash                   10,618    12,355    43,599     47,343
  Repairs and maintenance               9,197    10,217    38,740     38,291
  Communications                        3,675     3,998    14,876     17,024
  Transaction processing                1,512     1,575     6,431      8,269
  Stock-based compensation                208       197       798        621

  Other expenses                        9,772     8,854    38,577     40,050
                                   ----------  --------  --------  ---------
   Total cost of ATM operating
    revenues                          $82,620   $86,502  $333,907   $362,916
                                   ==========  ========  ========  =========

  Breakout of Selling, general, and administrative expenses:


                                    Three Months Ended   Twelve Months Ended
                                       December 31,         December 31,
                                   --------------------  -------------------

                                      2009       2008      2009       2008
                                   ----------  --------  --------  ---------
                                                (In thousands)
  Employee costs                       $6,096    $4,526   $23,535    $18,671
  Stock-based compensation              1,036     1,152     3,822      2,895
  Professional fees                     1,099     2,051     4,674      7,057

  Other                                 2,647     2,601     9,496     10,445
                                   ----------  --------  --------  ---------
   Total selling, general, and
    administrative expenses           $10,878   $10,330   $41,527    $39,068
                                   ==========  ========  ========  =========


  SELECTED BALANCE SHEET DETAIL:
  -------------------------------

  Long-term debt and capital lease obligations:

                                    December   December
                                    31, 2009   31, 2008
                                   ----------  --------
                                      (In thousands)
  Series A and Series B senior
   subordinated notes, net of
   discounts                         $297,242  $296,637
  Revolving credit facility                --    43,500
  Equipment financing lines of
   Mexico subsidiary                    9,810     6,052

  Capital lease obligations               235       992
                                   ----------  --------
   Total long-term debt and
    capital lease obligations        $307,287  $347,181
                                   ==========  ========

  Share count rollforward:

  Total shares outstanding as of
   December 31, 2008               40,636,533
  Shares repurchased                (121,747)
  Shares issued -- restricted
   stock grants and stock option
   exercises                          595,746
  Shares forfeited -- restricted
   stock                            (210,000)
                                   ----------
   Total shares outstanding as of
    December 31, 2009              40,900,532
                                   ==========



  SELECTED CASH FLOW DETAIL:
  -------------------------------

  Selected cash flow statement amounts:

                                    Three Months Ended   Twelve Months Ended
                                       December 31,         December 31,
                                   --------------------  -------------------

                                      2009       2008      2009       2008
                                   ----------  --------  --------  ---------
                                                (In thousands)
  Cash provided by operating
   activities                         $26,991    $5,254   $75,982    $16,218
  Cash used in investing
   activities                         (6,957)   (6,472)  (27,122)   (60,476)
  Cash provided by (used in)
   financing activities              (15,666)     3,444  (42,232)     34,507
  Effect of exchange rate changes
   on cash                               (60)       (7)       397      (264)
                                   ----------  --------  --------  ---------
   Net increase (decrease) in
    cash and cash equivalents          $4,308    $2,219    $7,025  ($10,015)
  Cash and cash equivalents at
   beginning of period                  6,141     1,205     3,424     13,439
                                   ----------  --------  --------  ---------
  Cash and cash equivalents at
   end of period                      $10,449    $3,424   $10,449     $3,424
                                   ==========  ========  ========  =========

                             Key Operating Metrics
        For the Three and Twelve Months Ended December 31, 2009 and 2008
                                   (Unaudited)


                                             Three Months      Twelve Months
                                                Ended              Ended
                                             December 31,       December 31,
                                           ----------------  -----------------

                                             2009     2008     2009     2008
                                           --------  ------  --------  -------
  Average number of transacting ATMs:
  United States: Company-owned               18,181  18,075    18,190   17,993
  United States: Merchant-owned               9,938  10,392    10,066   10,695
  United Kingdom                              2,687   2,527     2,606    2,421

  Mexico                                      2,359   2,070     2,197    1,747
                                           --------  ------  --------  -------
   Total average number of transacting
    ATMs                                     33,165  33,064    33,059   32,856
                                           ========  ======  ========  =======

  Total transactions (in thousands)          97,681  88,480   383,323  354,391
  Total cash withdrawal transactions (in
   thousands)                                61,209  56,612   244,378  228,306
  Monthly cash withdrawal transactions
   per ATM                                      615     571       616      579

  Per ATM per month amounts:
  ATM operating revenues (1)                 $1,226  $1,150    $1,218   $1,207

  Cost of ATM operating revenues (2)            830     873       842      921
                                           --------  ------  --------  -------

   ATM operating gross profit (3)              $396    $277      $376     $286
                                           ========  ======  ========  =======

  ATM operating gross margin (2)              32.3%   24.1%     30.9%    23.7%

  Capital expenditures (in thousands) (4)    $9,013  $6,465   $29,621  $60,136
  Capital expenditures, net of
   noncontrolling interest (in thousands)
   (4)                                       $7,495  $6,403   $26,891  $57,944
  ___________________
  (1) ATM operating revenues per ATM per month were negatively affected by
   foreign currency exchange rate movements between the twelve month periods
   ended December 31, 2009 and 2008.
  (2) Amounts presented exclude the effects of depreciation, accretion, and
   amortization expense, which are presented separately in the Company's
   consolidated statements of operations.
  (3) ATM operating gross profit is a measure of profitability that uses only
   the revenues and expenses that relate to operating ATMs in the Company's
   portfolio. Revenues and expenses from ATM equipment sales and other
   ATM-related services are not included.
  (4) Capital expenditures include amounts financed by direct debt for the
   three and twelve month periods ended December 31, 2009.

  Reconciliation of Net Income (Loss) Attributable to Controlling Interest to EBITDA,
                                  Adjusted EBITDA, and
                                  Adjusted Net Income
           For the Three and Twelve Months Ended December 31, 2009 and 2008
                                      (Unaudited)


                                         Three Months Ended     Twelve Months Ended
                                            December 31,            December 31,
                                       ----------------------  ----------------------

                                          2009        2008        2009        2008
                                       ----------  ----------  ----------  ----------
                                          (In thousands, except share and per share
                                                          amounts)
  Net income (loss) attributable to
   controlling interests                   $1,459   $(58,449)      $5,277   $(71,375)
  Adjustments:
   Interest expense, net                    7,305       7,823      30,133      31,090
   Amortization of deferred financing
    costs and bond discounts                  618         538       2,395       2,107
   Income tax expense                         961         787       4,245         989
   Depreciation and accretion expense       9,860      10,176      39,420      39,164
   Amortization expense                     5,480       4,888      18,916      18,549

   Goodwill impairment                         --      50,003          --      50,003
                                       ----------  ----------  ----------  ----------

  EBITDA                                  $25,683     $15,766    $100,386     $70,527
                                       ----------  ----------  ----------  ----------

  Add back:
   Loss on disposal of assets (1)           1,185       1,914       6,016       5,807
   Other (income) expense (2)               (194)         166       (982)          93
   Noncontrolling interests                 (334)       (404)     (1,281)     (1,633)
   Stock-based compensation expense         1,243       1,349       4,620       3,516
   Other adjustments to cost of ATM
    operating revenues (3)                      1       (115)         154       2,911
   Other adjustments to selling,
    general, and administrative
    expenses (4)                               --         426       1,463         718
                                       ----------  ----------  ----------  ----------

  Adjusted EBITDA                         $27,584     $19,102    $110,376     $81,939
                                       ----------  ----------  ----------  ----------
  Less:
   Interest expense, net                    7,305       7,823      30,133      31,090
   Depreciation and accretion expense       9,860      10,176      39,420      39,164

   Income tax expense (at 35%)              3,646         385      14,288       4,089
                                       ----------  ----------  ----------  ----------

  Adjusted Net Income                      $6,773        $718     $26,535      $7,596
                                       ==========  ==========  ==========  ==========


  Adjusted Net Income per share             $0.17       $0.02       $0.68       $0.20
                                       ==========  ==========  ==========  ==========
  Adjusted Net Income per diluted
   share                                    $0.17       $0.02       $0.67       $0.19
                                       ==========  ==========  ==========  ==========

  Weighted average shares outstanding
   -- basic                            39,600,166  38,957,820  39,244,057  38,800,782
                                       ==========  ==========  ==========  ==========
  Weighted average shares outstanding
   -- diluted                          40,910,286  39,609,994  39,896,366  39,801,492
                                       ==========  ==========  ==========  ==========


  -----------------------------------
  (1) Primarily comprised of losses on the disposal of fixed assets that were
   incurred with the deinstallation of ATMs during the periods.
  (2) The three and twelve month periods ended December 31, 2009 exclude
   approximately $1.4 million of unrealized losses related to certain interest rate
   swaps. Such losses reduced the Company's reported EBITDA and Adjusted EBITDA
   amounts for both periods.
  (3) 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.
  (4) For the twelve month period ended December 31, 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 Twelve Months Ended December 31, 2009 and 2008
                                       (Unaudited)



                                               Three Months Ended   Twelve Months Ended
                                                  December 31,         December 31,
                                              --------------------  -------------------

                                                 2009       2008      2009       2008
                                              ----------  --------  --------  ---------
                                                           (In thousands)
  Cash provided by operating activities          $26,991    $5,254   $75,982    $16,218

  Payments for capital expenditures(1)             9,013     6,465    29,621     60,136
                                              ----------  --------  --------  ---------

   Free cash flow                                $17,978  $(1,211)   $46,361  $(43,918)
                                              ==========  ========  ========  =========


  ------------------------------------------
  (1) Capital expenditures exclude acquisitions and include payments 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, 2010
                       (Unaudited)



  (In millions, except per          Estimated Range
   share amounts)                    Full Year 2010
                                 ----------------------

  Net income                         $15.5  --    $20.3
  Adjustments:
   Interest expense, net              30.0  --     29.0
   Amortization of deferred
    financing costs and bond
    discounts                          2.6  --      2.6
   Income tax expense                  9.4  --     13.1
   Depreciation and accretion
    expense                           41.0  --     40.0

   Amortization expense               15.0         14.0
                                 ---------  --  -------

  EBITDA                            $113.5       $119.0
                                 ---------  --  -------

  Add back:
   Noncontrolling interests          (2.0)  --    (2.0)
   Stock-based compensation
    expense                            6.5          6.0
                                 ---------  --  -------

  Adjusted EBITDA                   $118.0       $123.0
                                 ---------  --  -------
  Less:
   Interest expense, net              30.0  --     29.0
   Depreciation and accretion
    expense                           41.0  --     40.0

   Income tax expense (at 35%)        16.4         18.5
                                 ---------  --  -------

  Adjusted Net Income                $30.6        $35.5
                                 =========  --  =======

  Adjusted Net Income per
   diluted share                     $0.75        $0.85
                                 =========  --  =======

  Weighted average shares
   outstanding -- diluted             41.0         42.0
                                 =========  --  =======

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

SOURCE: Cardtronics, Inc.

CONTACT:  Cardtronics, Inc.
Investors:
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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