Apr 29, 2010
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Cardtronics Announces First Quarter 2010 Results

HOUSTON, Apr 29, 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 ended March 31, 2010.

Key financial and operational statistics related to the quarter include:

  --  Consolidated revenues of $127.8 million, up 11% from the first quarter
      of 2009 (9% on a constant currency basis)
  --  Revenue growth of approximately 11% 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 31%, up from 27% in the first quarter of 2009
  --  Adjusted EBITDA of $29.3 million, up approximately 30% from $22.5
      million in the first quarter of 2009
  --  Adjusted Net Income per Share of $0.19, up from $0.09 in the first
      quarter of 2009
  --  GAAP Net Income of $4.0 million compared to a $5.1 million GAAP Net Loss
      in the first quarter of 2009
  --  Continued improvements in several key operating metrics when compared to
      the first quarter of 2009:


o Total cash withdrawal transactions increased by 6% o Cash withdrawal transactions per ATM increased by 4% o Total transactions per ATM increased by 7% o ATM operating gross profit per ATM increased by 25%

Please refer to the "Disclosure of Non-GAAP Financial Information" contained later in this release for definitions of Adjusted EBITDA, Adjusted Net Income, Free Cash Flow, and amounts presented on a constant currency basis. 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.

"The strong operating trends that Cardtronics experienced during 2009, especially in the United States, continued during the first quarter of 2010," commented Steve Rathgaber, Cardtronics' Chief Executive Officer. "Since joining Cardtronics in February, I am even more confident in the unique value proposition that Cardtronics has to offer and in the Company's ability to leverage its existing asset base to drive future transaction and revenue growth."

RECENT HIGHLIGHTS

  --  Successful completion of a secondary offering in March 2010 of 8,050,000
      shares of existing common stock by selling shareholders at a price to
      the public of $12 per share.  The offering, which consisted entirely of
      already outstanding common shares held by the Company's long-time
      private equity investors, The CapStreet Group and TA Associates,
      increased the size of the Company's public float by over 40%.
      Cardtronics did not receive any proceeds from the sale of such shares.
  --  Expansion of the Company's managed services product offerings through
      the execution of multi-year ATM managed services agreements with
      Travelex, the world's largest retail foreign exchange specialist, and
      Pacific Convenience & Fuels, LLC, the largest licensee of the Circle K
      brand. Under the agreements, Cardtronics will provide transaction
      processing and ATM management services for these customers.
  --  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.  As of March 31, 2010, the
      Company's ratio of total debt to Adjusted EBITDA for the trailing twelve
      months was 2.6 to 1.


FIRST QUARTER RESULTS

For the first quarter of 2010, consolidated revenues totaled $127.8 million, representing an 11% increase (9% on a constant currency basis, which is defined in the "Disclosure of Non-GAAP Financial Information" below) from the $115.3 million in revenues generated during the first quarter of 2009. This increase reflects 13% revenue growth (11% on a constant currency basis) in the Company's core business operations, which include the Company's higher-margin domestic large-account ATM placement and international businesses, that was offset slightly by a decline in the Company's lower-margin merchant-owned account base. The increase in core revenues was driven by a combination of strong transaction trends in the Company's United States and Mexico operating segments, year-over-year surcharge rate increases in the United States, and continued unit growth within the Company's United Kingdom operating segment. Additionally, the Company continued to see increased bank branding and surcharge-free network revenues in the United States due to the continued growth of its surcharge-free offerings.

The Company generated Adjusted EBITDA of $29.3 million during the first quarter of 2010, compared to $22.5 million during the first quarter of 2009, and Adjusted Net Income of $7.6 million ($0.19 per diluted share), compared to $3.4 million ($0.09 per diluted share) during the first quarter of 2009. These increases were primarily attributable to higher gross margins, which increased from 27% during the first quarter of 2009 to 31% during the first quarter of 2010, primarily as a result of the increase in revenues (noted above), the continued shift of revenues from lower-margin 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 declines in its maintenance and armored expenses during the first quarter of 2010 when compared to the first quarter of 2009 due to the renegotiation of the Company's primary domestic maintenance and armored courier service agreements during the second quarter of 2009. Specific costs excluded from Adjusted EBITDA and Adjusted Net Income are detailed in a reconciliation included at the end of this press release.

GAAP Net Income for the first quarter of 2010 totaled $4.0 million, compared to a $5.1 million GAAP Net Loss during the same quarter in 2009. The year-over-year improvement was primarily attributable to the factors identified above in the discussion of Adjusted EBITDA and Adjusted Net Income. However, the Net Loss for the first quarter of 2009 included $1.2 million in severance costs associated with the departure of the Company's former Chief Executive Officer in March 2009 and $2.1 million of losses on the disposal of assets due to certain optimization efforts undertaken by the Company, which did not recur in 2010.

2010 GUIDANCE

The Company is updating the guidance it previously issued regarding its anticipated full-year 2010 results, and now expects the following:

  --  Revenues of $520 million to $530 million;
  --  Overall gross margins of approximately 31% to 31.5%;
  --  Adjusted EBITDA of $120 million to $125 million;
  --  Depreciation and accretion expense of $42 million;
  --  Cash interest expense of $29.5 million;
  --  Adjusted Net Income of $0.75 to $0.85 per diluted share, based on
      approximately 41.5 million weighted average 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 approximately $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 $1.50 U.S. to POUND1.00 U.K. and $12.50 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 March 31, 2010, the Company had no amounts outstanding under the facility. Additionally, the Company was, and continues to be, in compliance with the covenants contained within this facility and will continue to be in compliance even in the event of substantially higher borrowings or substantially lower Adjusted EBITDA amounts. As a result, the Company has access to $170.6 million in available, committed funding, after taking into account the $4.4 million in letters of credit posted under the facility. The Company's remaining indebtedness as of March 31, 2010 included $0.1 million of capital leases in the United States, $9.8 million of equipment loans in Mexico, and $297.4 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 $38.0 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, Free Cash Flow, and amounts presented 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. Finally, 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.

CONFERENCE CALL INFORMATION

The Company will host a conference call today, Thursday, April 29, 2010, at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) to discuss its financial results for the quarter ended March 31, 2010. To access the call, please call the conference call operator at:

Dial in: (877) 303-9205 Alternate dial-in: (760) 536-5226

Please call in fifteen minutes prior to the scheduled start time and request to be connected to the "Cardtronics First Quarter Earnings Conference Call." Additionally, a live audio webcast of the conference call will be available online through the investor relations section of the Company's website at http://www.cardtronics.com.

A digital replay of the conference call will be available through Friday, May 14, 2010, and can be accessed by calling (800) 642-1687 or (706) 645-9291 and entering 67810681 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 May 31, 2010.

ABOUT CARDTRONICS

Headquartered in Houston, Texas, Cardtronics is the world's largest non-bank owner of ATMs. Cardtronics operates over 33,700 ATMs across its portfolio, with ATMs in every major market in the United States and in the U.S. territories of Puerto Rico and the U.S. Virgin Islands, over 2,700 ATMs throughout the United Kingdom, and over 2,800 ATMs throughout Mexico. Included in Cardtronics' portfolio are approximately 2,200 multi-function financial services kiosks that, in addition to traditional ATM functions, perform other automated consumer financial services. Major merchant clients include 7-Eleven(R), Chevron(R), Costco(R), CVS(R)/pharmacy, ExxonMobil(R), Rite Aid(R), Safeway(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 and surcharge-free programs, with currently over 11,700 Cardtronics owned and operated ATMs featuring bank brands. More recently, Cardtronics started offering a managed services solution to retailers and financial institutions that are looking to outsource some or all of the operational aspects associated with operating and maintaining their ATM fleets. For more information, please visit 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 the Company's 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 the Company's first quarter financial results and the underlying business events that generated those results. They include, among other things, statements concerning projections, predictions, expectations, estimates or forecasts as to the Company's business, financial and operational results and future economic performance, and statements of management's goals and objectives and other similar expressions concerning matters that are not historical facts. 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:

  --  the Company's financial outlook and the financial outlook of the ATM
      industry;
  --  the Company's ability to provide new ATM solutions to financial
      institutions;
  --  the Company's ATM vault cash rental needs, including potential liquidity
      issues with its vault cash providers;
  --  the implementation of the Company's corporate strategy;
  --  the Company's ability to compete successfully with new and existing
      competitors;
  --  the Company's ability to renew and strengthen its existing customer
      relationships and add new customers;
  --  the Company's ability to meet the service levels required by its service
      level agreements with its customers;
  --  the Company's ability to pursue and successfully integrate acquisitions;
  --  the Company's ability to successfully manage its existing international
      operations and to continue to expand internationally;
  --  the Company's ability to prevent security breaches;
  --  the Company's ability to manage the risks associated with its
      third-party service providers failing to perform their contractual
      obligations;
  --  changes in interest rates, foreign currency rates and regulatory
      requirements; and
  --  the additional risks the Company is exposed to in its armored transport
      business.


Other factors that could cause the Company's actual performance or results to differ from its projected results are described in its filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. You should not read forward-looking statements as a guarantee of future performance or results. They will not necessarily be accurate indications of the times at or by which such performance or results will be achieved. Forward-looking statements speak only as of the date the statements are made and are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events. The Company assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information.

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

              Consolidated Statements of Operations
       For the Three Months Ended March 31, 2010 and 2009
                           (Unaudited)



                                       Three Months Ended March
                                                  31,
                                       ------------------------

                                           2010         2009
                                       ------------  ----------
                                         (In thousands, except
                                          share and per share
                                             information)
  Revenues:
  ATM operating revenues                   $125,687    $113,580
  ATM product sales and other
   revenues                                   2,089       1,765
                                       ------------  ----------
   Total revenues                           127,776     115,345
  Cost of revenues:
  Cost of ATM operating revenues
   (exclusive of depreciation,
   accretion, and amortization
   shown separately below)                   85,879      82,229
  Cost of ATM product sales and
   other revenues                             2,193       1,814
                                       ------------  ----------
   Total cost of revenues                    88,072      84,043
   Gross profit                              39,704      31,302
  Operating expenses:
  Selling, general, and
   administrative expenses (1)               11,143      10,855
  Depreciation and accretion
   expense                                   10,222       9,639
  Amortization expense                        3,979       4,527

  Loss on disposal of assets                    377       2,108
                                       ------------  ----------
   Total operating expenses                  25,721      27,129
  Income from operations                     13,983       4,173
  Other expense:
  Interest expense, net                       7,318       7,711
  Amortization of deferred
   financing costs and bond
   discounts                                    630         568

  Other expense (income)                        366        (86)
                                       ------------  ----------
   Total other expense                        8,314       8,193
  Income (loss) before income
   taxes                                      5,669     (4,020)

  Income tax expense                          1,439       1,017
                                       ------------  ----------
  Net income (loss)                           4,230     (5,037)
  Net income attributable to
   noncontrolling interests                     265          31
                                       ------------  ----------
  Net income (loss) attributable
   to controlling interests and
   available to common
   shareholders                              $3,965    $(5,068)
                                       ------------  ----------

  Net income (loss) per common
   share -- basic                             $0.10     $(0.13)
                                       ============  ==========
  Net income (loss) per common
   share -- diluted                           $0.09     $(0.13)
                                       ============  ==========

  Weighted average shares
   outstanding -- basic                  39,850,122  38,960,083
                                       ============  ==========
  Weighted average shares
   outstanding -- diluted                40,721,310  38,960,083
                                       ============  ==========


  --------------------------------

  (1)  Selling, general, and administrative expenses for the
   three months ended March 31, 2010 includes $0.6 million of
   costs associated with the preparation and filing of a shelf
   registration statement and the completion of a secondary
   equity offering, and approximately $0.4 million in
   incremental stock-based compensation expense (when compared
   to the same period in the prior year). Selling, general, and
   administrative expenses for the three months ended March 31,
   2009 includes $1.2 million in severance costs associated
   with the departure of the Company's former Chief Executive
   Officer in March 2009.

             Condensed Consolidated Balance Sheets
          As of March 31, 2010 and December 31, 2009
                         (Unaudited)


                                         March 31,  December
                                           2010     31, 2009
                                        ----------  --------
                                           (In thousands)
  Assets
  Current assets:
   Cash and cash equivalents               $10,694   $10,449
   Accounts and notes receivable,
    net                                     27,004    27,700
   Inventory                                 1,977     2,617
   Restricted cash, short-term               3,151     3,452
   Prepaid expenses, deferred
    costs, and other current assets          9,333     8,850
                                        ----------  --------
    Total current assets                    52,159    53,068
  Property and equipment, net              144,657   147,348
  Intangible assets, net                    84,084    89,036
  Goodwill                                 164,235   165,166
  Prepaid expenses, deferred costs,
   and other assets                          4,187     5,786
                                        ----------  --------

    Total assets                          $449,322  $460,404
                                        ==========  ========

  Liabilities and Stockholders'
   Deficit
  Current liabilities:
   Current portion of long-term
    debt and notes payable                  $2,353    $2,122
   Current portion of capital lease
    obligations                                 96       235
   Current portion of other
    long-term liabilities                   26,242    26,047
   Accounts payable and other
    accrued and current liabilities         60,055    73,608
                                        ----------  --------
    Total current liabilities               88,746   102,012
  Long-term liabilities:
   Long-term debt, net of related
    discounts                              304,835   304,930
   Deferred tax liability, net              13,189    12,250
   Asset retirement obligations             24,655    24,003

   Other long-term liabilities              20,174    18,499
                                        ----------  --------
    Total liabilities                      451,599   461,694

  Stockholders' deficit                    (2,277)   (1,290)
                                        ----------  --------
    Total liabilities and
     stockholders' deficit                $449,322  $460,404
                                        ==========  ========


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

  Total revenues by segment:


                                 Three Months Ended
                                     March 31,
                                --------------------

                                   2010       2009
                                ----------  --------
                                   (In thousands)
  United States                   $101,909   $96,767
  United Kingdom                    18,621    14,777

  Mexico                             7,246     3,801
                                ----------  --------

   Total revenues                 $127,776  $115,345
                                ==========  ========

  Breakout of ATM operating
   revenues:


                                 Three Months Ended
                                     March 31,
                                --------------------

                                   2010       2009
                                ----------  --------
                                   (In thousands)
  Surcharge revenues               $65,815   $60,876
  Interchange revenues              37,817    34,160
  Bank branding and
   surcharge-free network
   revenues                         19,197    16,096

  Other revenues                     2,858     2,448
                                ----------  --------
   Total ATM operating
    revenues                      $125,687  $113,580
                                ==========  ========

  Total cost of revenues by
   segment:


                                 Three Months Ended
                                     March 31,
                                --------------------

                                   2010       2009
                                ----------  --------
                                   (In thousands)
  United States                    $68,471   $70,408
  United Kingdom                    14,351    10,707

  Mexico                             5,250     2,928
                                ----------  --------

   Total cost of revenues          $88,072   $84,043
                                ==========  ========

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


                                 Three Months Ended
                                     March 31,
                                --------------------

                                   2010       2009
                                ----------  --------
                                   (In thousands)
  Merchant commissions             $40,600   $37,905
  Vault cash rental expense          9,345     8,153
  Other costs of cash               11,726    11,599
  Repairs and maintenance            8,925     9,589
  Communications                     3,782     3,783
  Transaction processing             1,681     1,668
  Stock-based compensation             199       191

  Other expenses                     9,621     9,341
                                ----------  --------
   Total cost of ATM operating
    revenues                       $85,879   $82,229
                                ==========  ========

  Breakout of selling,
   general, and administrative
   expenses:


                                 Three Months Ended
                                     March 31,
                                --------------------

                                   2010       2009
                                ----------  --------
                                   (In thousands)
  Employee costs                    $6,105    $6,457
  Stock-based compensation           1,260       867
  Professional fees                  1,784     1,328

  Other                              1,994     2,203
                                ----------  --------
   Total selling, general, and
    administrative expenses        $11,143   $10,855
                                ==========  ========


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

  Long-term debt and capital lease obligations:


                                                     March 31,  December
                                                       2010     31, 2009
                                                    ----------  --------
                                                       (In thousands)
  Series A and Series B senior subordinated notes,
   net of discounts                                   $297,402  $297,242
  Equipment financing lines of Mexico subsidiary         9,786     9,810

  Capital lease obligations                                 96       235
                                                    ----------  --------
   Total long-term debt and capital lease
    obligations                                       $307,284  $307,287
                                                    ==========  ========

  Share count rollforward:


  Total shares outstanding as of December 31, 2009  40,900,532
  Shares repurchased                                  (25,000)
  Shares issued -- restricted stock grants and
   stock option exercises                              873,915
                                                    ----------

   Total shares outstanding as of March 31, 2010    41,749,447
                                                    ==========



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

  Selected cash flow statement amounts:


                                                     Three Months Ended
                                                         March 31,
                                                    --------------------

                                                       2010       2009
                                                    ----------  --------
                                                       (In thousands)
  Cash provided by operating activities                 $9,186    $6,947
  Cash used in investing activities                    (8,605)   (4,976)
  Cash (used in) provided by  financing activities       (797)     4,017

  Effect of exchange rate changes on cash                  461        39
                                                    ----------  --------
   Net increase in cash and cash equivalents              $245    $6,027

  Cash and cash equivalents at beginning of period      10,449     3,424
                                                    ----------  --------

  Cash and cash equivalents at end of period           $10,694    $9,451
                                                    ==========  ========

                     Key Operating Metrics
      For the Three Months Ended March 31, 2010 and 2009
                         (Unaudited)


                                                Three Months
                                                   Ended
                                                 March 31,
                                              --------------

                                                2010    2009
                                              ------  ------
  Average number of transacting ATMs:
  United States: Company-owned                18,128  18,257
  United States: Merchant-owned                9,920  10,145
  United Kingdom                               2,712   2,544

  Mexico                                       2,745   2,094
                                              ------  ------
   Total average number of transacting
    ATMs                                      33,505  33,040
                                              ======  ======

  Total transactions (in thousands)           96,642  89,369
  Total cash withdrawal transactions (in
   thousands)                                 60,884  57,564
  Monthly cash withdrawal transactions
   per ATM                                       606     581

  Per ATM per month amounts:
  ATM operating revenues                      $1,250  $1,146

  Cost of ATM operating revenues (1)             854     830
                                              ------  ------

   ATM operating gross profit (2)               $396    $316
                                              ======  ======

  ATM operating gross margin (1) (2)           31.7%   27.6%

  Capital expenditures (in thousands)         $8,605  $4,976
  Capital expenditures, net of
   noncontrolling interest (in thousands)     $8,432  $4,901


  ---------------------------------------

  (1)  Amounts presented exclude the effects of
   depreciation, accretion, and amortization expense, which
   are presented separately in the Company's consolidated
   statements of operations.
  (2)  ATM operating gross profit and ATM operating gross
   margin are measures 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.

       Reconciliation of Net Income (Loss) Attributable to
        Controlling Interest to EBITDA, Adjusted EBITDA, and
                       Adjusted Net Income
        For the Three Months Ended March 31, 2010 and 2009
                           (Unaudited)


                                            Three Months Ended
                                                 March 31,
                                          ----------------------

                                             2010        2009
                                          ----------  ----------
                                           (In thousands, except
                                                 share and
                                            per share amounts)
  Net income (loss) attributable to
   controlling interests                      $3,965    $(5,068)
  Adjustments:
   Interest expense, net                       7,318       7,711
   Amortization of deferred financing
    costs and bond discounts                     630         568
   Income tax expense                          1,439       1,017
   Depreciation and accretion expense         10,222       9,639

   Amortization expense                        3,979       4,527
                                          ----------  ----------

  EBITDA                                     $27,553     $18,394
                                          ----------  ----------

  Add back:
   Loss on disposal of assets (1)                377       2,108
   Other expense (income)                        341        (86)
   Noncontrolling interests                    (437)       (298)
   Stock-based compensation expense            1,459       1,058
   Other adjustments to cost of ATM
    operating revenues (2)                        --         183
   Other adjustments to selling,
    general, and administrative expenses
    (3)                                           --       1,186
                                          ----------  ----------

  Adjusted EBITDA                            $29,293     $22,545
                                          ----------  ----------
  Less:
   Interest expense, net                       7,318       7,711
   Depreciation and accretion expense         10,222       9,639

   Income tax expense (at 35%)                 4,114       1,818
                                          ----------  ----------

  Adjusted Net Income                         $7,639      $3,377
                                          ==========  ==========

  Adjusted Net Income per share -- basic
   and diluted                                 $0.19       $0.09
                                          ==========  ==========

  Weighted average shares outstanding --
   basic                                  39,850,122  38,960,083
                                          ==========  ==========
  Weighted average shares outstanding --
   diluted                                40,721,310  39,258,250
                                          ==========  ==========


  --------------------------------------

  (1)  Primarily comprised of losses on the disposal of fixed
   assets that were incurred with the deinstallation of ATMs
   during the periods. The increased amount during the three
   months ended March 31, 2009 was primarily the result of
   certain optimization efforts taken during that period.
  (2)  For the three month period ended March 31, 2009, 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
   electronic funds transfer transaction processing platform and
   development costs associated with the start-up of the
   Company's in-house armored courier operation in the United
   Kingdom.
  (3)  For the three month period ended March 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 Months Ended March 31, 2010 and 2009
                            (Unaudited)


                                               Three Months Ended
                                                    March 31,
                                               ------------------

                                                  2010      2009
                                               ----------  ------
                                                 (In thousands)
  Cash provided by operating activities            $9,186  $6,947

  Payments for capital expenditures (1)             8,605   4,976
                                               ----------  ------

   Free cash flow                                    $581  $1,971
                                               ==========  ======


  -------------------------------------------

  (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 share       Estimated Range
   amounts)                             Full Year 2010
                                  --------------------------

  Net income                          $21.6     -      $27.6
  Adjustments:
   Interest expense, net               29.5     -       29.5
   Amortization of deferred
    financing costs and bond
    discounts                           2.6     -        2.6
   Income tax expense                   6.0     -        6.0
   Depreciation and accretion
    expense                            42.0     -       42.0

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

  EBITDA                             $116.7           $121.7
                                  ---------     -    -------

  Add back:
   Noncontrolling interests           (3.2)     -      (3.2)
   Stock-based compensation
    expense                             6.5              6.5
                                  ---------     -    -------

  Adjusted EBITDA                    $120.0           $125.0
                                  ---------     -    -------
  Less:
   Interest expense, net               29.5     -       29.5
   Depreciation and accretion
    expense                            42.0     -       42.0

   Income tax expense (at 35%)         17.2             18.4
                                  ---------     -    -------

  Adjusted Net Income                 $31.3            $35.1
                                  =========     -    =======

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

  Weighted average shares
   outstanding -- diluted              41.5             41.5
                                  =========     -    =======

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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