Aug 4, 2010
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Cardtronics Announces Second Quarter 2010 Results

HOUSTON, Aug 4, 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 June 30, 2010.

Key financial and operational statistics related to the quarter include:

  --  Consolidated revenues of $132.9 million, up 7% from the second quarter
      of 2009
  --  Revenue growth of approximately 10% 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 32.5%, up from 30.1% in the second quarter of 2009
  --  Adjusted EBITDA of $33.9 million, up approximately 22% from $27.9
      million in the second quarter of 2009
  --  Adjusted Net Income per diluted share of $0.26, up from $0.17 in the
      second quarter of 2009
  --  GAAP Net Income of $8.2 million compared to $2.5 million in the second
      quarter of 2009
  --  Free cash flow of $30.5 million, up approximately 53% from $19.9 million
      in the second quarter of 2009
  --  Continued improvements in several key operating metrics when compared to
      the second quarter of 2009:


  --  Total transactions increased by 9%
  --  Total cash withdrawal transactions increased by 6%
  --  Total transactions per ATM increased by 6%
  --  ATM operating gross profit per ATM increased by 12%


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.

"Our ATM estate generated strong operating results during the most recent quarter, continuing the trend that we have seen over the past several quarters," commented Steve Rathgaber, the Company's Chief Executive Officer. "In addition, we are optimistic about the progress we are seeing with respect to our new service offerings, including ATM managed services, which should continue to help drive future revenue growth for the Company."

RECENT HIGHLIGHTS

  --  Further expansion of the Company's managed services product offering
      through the execution of an ATM managed services agreement with The
      Kroger Company, one of the largest retailers in the United States with
      nearly 2,500 grocery stores and 800 convenience stores operating under
      the banners of Kroger, Ralphs, King Soopers, KwikShop and Loaf 'n Jug,
      to name a few. The multi-year deal will initially cover about 800
      locations and provide the Company with an opportunity to add more
      locations with Kroger over time.  Under the terms of the agreement,
      Cardtronics will provide comprehensive ATM management services,
      including installation, cash management, maintenance, customer service,
      monitoring, and transaction processing services.  With the addition of
      Kroger to the Company's customer base, Cardtronics now has ATM operating
      agreements in place with 8 of the nation's top 10 retailers that have
      ATMs in their stores.
  --  Execution of a new bank branding agreement with PNC Financial Services
      Group to provide surcharge-free ATM access to its cardholders at
      approximately 230 Hess and Hess Express gasoline and retail stores
      across Florida.
  --  Extension of the Company's existing bank branding agreement with
      SunTrust Banks, Inc. to cover an additional 100 ATMs in CVS store
      locations in the southeastern United States.
  --  Execution of an ATM placement agreement with WRVS, an operator of shops
      in hospitals in the United Kingdom, under which the Company expects to
      install 100 ATMs in the coming year.
  --  Execution of a new $175 million revolving credit facility with leading
      financial institutions. Management believes that the new facility will
      provide the Company with continued strong liquidity and access to
      capital, as well as significant additional financial flexibility.
  --  Issuance of a "Notice of Redemption" for the Company's $100 million
      9.25% senior subordinated notes -- Series B due in 2013, which will be
      redeemed on August 20, 2010 at a redemption price of 102.313% of the
      principal amount, plus accrued but unpaid interest through August 20.


SECOND QUARTER RESULTS

For the second quarter of 2010, consolidated revenues totaled $132.9 million, representing a 7% increase from the $124.6 million in revenues generated during the second quarter of 2009. This increase reflects 10% revenue growth in the Company's core business operations, which include the Company's higher-margin domestic large-account ATM placement and international businesses. Changes in foreign currency rates did not have an impact on the year-over-year comparisons noted above. The increase in core revenues was driven by a combination of the year-over-year surcharge rate increases implemented in the United States and the unit growth in the Company's United Kingdom and Mexico operating segments. 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. Partially offsetting these increases was a decline in revenues from the Company's lower-margin merchant-owned account base.

Adjusted EBITDA for the second quarter of 2010 totaled $33.9 million, compared to $27.9 million during the second quarter of 2009, and Adjusted Net Income totaled $10.9 million ($0.26 per diluted share), compared to $6.9 million ($0.17 per diluted share) during the second quarter of 2009. These increases were primarily attributable to higher gross profit margins, which increased from 30.1% during the second quarter of 2009 to 32.5% during the second quarter of 2010. Key drivers of the margin expansion included the increase in revenues (discussed above), the continued shift of revenues from lower-margin revenues earned under merchant-owned accounts to higher-margin Company-owned and surcharge-free network and bank branding revenues, as well as the Company's ability to leverage its fixed-cost infrastructure to generate strong margins from those higher revenues. 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 second quarter of 2010 totaled $8.2 million, compared to $2.5 million 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.

SIX MONTH RESULTS

Revenues totaled $260.7 million for the six months ended June 30, 2010, representing a 9% increase over the $240.0 million in revenues recorded during the same period in 2009. As was the case with the Company's quarterly results, the year-over-year increase in revenues was primarily attributable to revenue growth in its core business operations, slightly offset by a decline in the Company's merchant-owned account base. Excluding the impact of favorable foreign currency rate changes between both periods, the year-over-year increase in revenues totaled 8%.

Adjusted EBITDA totaled $63.2 million for the six months ended June 30, 2010, representing a 25% increase over the $50.4 million in Adjusted EBITDA for the same period in 2009, and Adjusted Net Income totaled $18.8 million ($0.46 per diluted share) for the first six months of 2010, which represents a significant increase from the $10.4 million ($0.26 per diluted share) generated during the same period in 2009. Increases in both Adjusted EBITDA and Adjusted Net Income were primarily due to the same factors noted above for the Company's quarterly results.

GAAP Net Income for the six months ended June 30, 2010 totaled $12.2 million, compared to a $2.6 million GAAP Net Loss during the same period last year. As was the case with the quarterly results, the year-over-year improvement in the Company's GAAP results was primarily driven by the same factors outlined above with respect to Adjusted EBITDA and Adjusted Net Income.

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, unchanged from the previous
      guidance;
  --  Overall gross margins of approximately 31.5% to 32.0%, up from the 31.0%
      to 31.5% in the previous guidance;
  --  Adjusted EBITDA of $123 million to $127 million, up from the $120
      million to $125 million in the previous guidance;
  --  Depreciation and accretion expense of $40.5 million to $41.0 million,
      down from the $42.0 million in the previous guidance;
  --  Cash interest expense of $26.5 million to $27.0 million, down from the
      $29.5 million in the previous guidance;
  --  Adjusted Net Income of $0.87 to $0.93 per diluted share, based on
      approximately 41.5 million to 42.0 million weighted average diluted
      shares outstanding, up from the $0.75 to $0.85 per diluted share in the
      previous guidance; and
  --  Capital expenditures of approximately $45 million, net of noncontrolling
      interests, unchanged from the previous guidance.


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, with over $40 million in cash on hand and no amounts outstanding under the Company's revolving credit facility (other than a $4.3 million in letter of credit posted under the facility as of quarter end). The Company's outstanding indebtedness as of June 30, 2010, consisted of $297.6 million in senior subordinated notes, net of discounts, and $9.5 million of equipment loans associated with its majority-owned Mexico subsidiary. The fixed rate senior subordinated notes, which mature in August 2013, contain no maintenance covenants and only limited incurrence covenants, under which the Company has considerable flexibility and continues to be in compliance with, and require only semi-annual interest payments prior to their maturity date.

In July, the Company refinanced its existing $175.0 million revolving credit facility. The new facility, which is led by a syndicate of leading banks including JPMorgan Chase and Bank of America, provides the Company with access to $175.0 million in borrowings and letters of credit (subject to the covenants contained within the facility) and extends initially through February 2013; however, such date can be extended to July 2015 in the event the Company's existing Senior Notes are no longer outstanding or have been refinanced with a maturity date later than December 2015. Additionally, it contains a feature that allows the Company to expand the facility up to $250 million, subject to the availability of additional bank commitments by existing or new syndicate participants. As of the date of this release, the Company is in compliance with the covenants contained within the new facility and would continue to be in compliance even in the event of substantially higher borrowings or substantially lower Adjusted EBITDA amounts. Other than a $4.3 million letter of credit posted under the facility, there are no amounts currently outstanding under the new facility.

Additionally, in July 2010, the Company issued a "Notice of Redemption" for its $100 million 9.25% senior subordinated notes -- Series B due in 2013 (the "Series B Notes"). The call notice, which was issued on July 21, 2010, provides holders with a 30-day notice that the Series B Notes will be redeemed on August 20, 2010, at a redemption price of 102.313% of the principal amount, plus accrued but unpaid interest through August 20. The redemption will be funded with approximately $30.0 million of available cash on hand and approximately $70.0 million of borrowings under the recently-executed credit facility. The Company expects that the redemption of the Series B Notes combined with the execution of the new credit facility will assist the Company in enhancing its financial flexibility, reducing leverage, and reducing interest expense.

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, as of December 31, 2009, the Company had 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, and Free Cash Flow are non-GAAP financial measures provided as a complement to results prepared in accordance with accounting principles generally accepted within the United States of America ("GAAP") and may not be comparable to similarly-titled measures reported by other companies. Management believes that the presentation of these measures and the identification of unusual, non-recurring, or non-cash items enhance an investor's understanding of the underlying trends in the Company's business and provide for better comparability between periods in different years.

Adjusted EBITDA excludes depreciation, accretion, and amortization expense as these amounts can vary substantially from company to company within the Company's industry depending upon accounting methods and book values of assets, capital structures, and the method by which the assets were acquired. 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) 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, Wednesday, August 4, 2010, at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) to discuss its financial results for the quarter ended June 30, 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 Second 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 Wednesday, August 18, 2010, and can be accessed by calling (800) 642-1687 or (706) 645-9291 and entering 87599952 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 September 3, 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, approximately 2,800 ATMs throughout the United Kingdom, and approximately 2,900 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), Hess(R), Kroger(R), Rite Aid(R), Safeway(R), Target(R), Walgreens(R), and Winn-Dixie(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, with currently approximately 11,600 Cardtronics owned and operated ATMs featuring bank brands. Additionally, Cardtronics offers surcharge-free access to cash for holders of traditional debit cards as well as stored-value cards issued by financial institutions that participate in the Allpoint Network, Cardtronics' wholly-owned surcharge-free ATM network. More recently, Cardtronics started offering managed services solutions 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.

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 the Company's current expectations or forecasts of future events, future financial performance, strategies, expectations, competitive environment, regulation, and availability of resources. The forward-looking statements contained in this release include, among other things, statements concerning projections, predictions, expectations, estimates or forecasts as to the Company's business, financial and operational results and future economic performance, and statements of management's goals and objectives and other similar expressions concerning matters that are not historical facts. These statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the following:

  --  the Company's financial outlook and the financial outlook of the ATM
      industry;
  --  the Company's ability to respond to recent and future regulatory changes
      that may impact the ATM and financial services industries;
  --  the Company's ability to respond to potential reductions in the amount
      of interchange fees that it receives from global and regional debit
      networks for transactions conducted on its ATMs;
  --  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 and foreign currency rates; 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.

                          Consolidated Statements of Operations
                For the Three and Six Months Ended June 30, 2010 and 2009
                                       (Unaudited)


                                       Three Months Ended          Six Months Ended
                                             June 30,                  June 30,
                                    -------------------------  ------------------------

                                        2010         2009         2010         2009
                                    ------------  -----------  -----------  -----------
                                         (In thousands, except share and per share
                                                       information)
  Revenues:
  ATM operating revenues               $ 130,560    $ 121,362    $ 256,247    $ 234,942
  ATM product sales and other
   revenues                                2,388        3,286        4,477        5,051
                                    ------------  -----------  -----------  -----------
    Total revenues                       132,948      124,648      260,724      239,993
  Cost of revenues:
  Cost of ATM operating revenues
   (exclusive of depreciation,
   accretion, and amortization
   shown separately below)                87,414       83,975      173,293      166,204
  Cost of ATM product sales and
   other revenues                          2,314        3,153        4,507        4,967
                                    ------------  -----------  -----------  -----------
    Total cost of revenues                89,728       87,128      177,800      171,171
    Gross profit                          43,220       37,520       82,924       68,822
  Operating expenses:
  Selling, general, and
   administrative expenses (1)            10,272       10,584       21,415       21,439
  Depreciation and accretion
   expense                                10,264        9,935       20,486       19,574
  Amortization expense                     3,765        4,504        7,744        9,031

  Loss on disposal of assets               1,095        1,676        1,472        3,784
                                    ------------  -----------  -----------  -----------
    Total operating expenses              25,396       26,699       51,117       53,828
  Income from operations                  17,824       10,821       31,807       14,994
  Other expense:
  Interest expense, net                    7,314        7,644       14,632       15,355
  Amortization of deferred
   financing costs and bond
   discounts                                 642          603        1,272        1,171

  Other (income) expense                   (332)      (1,041)           34      (1,127)
                                    ------------  -----------  -----------  -----------
    Total other expense                    7,624        7,206       15,938       15,399

  Income (loss) before income
   taxes                                  10,200        3,615       15,869        (405)

  Income tax expense                       1,952        1,016        3,391        2,033
                                    ------------  -----------  -----------  -----------
  Net income (loss)                        8,248        2,599       12,478      (2,438)
  Net income attributable to
   noncontrolling interests                   45          111          310          142
                                    ------------  -----------  -----------  -----------
  Net income (loss) attributable
   to controlling interests and
   available to common
   shareholders                          $ 8,203      $ 2,488     $ 12,168    $ (2,580)
                                    ------------  -----------  -----------  -----------

  Net income (loss) per common
   share -- basic                         $ 0.20       $ 0.06       $ 0.29     $ (0.07)
                                    ============  ===========  ===========  ===========
  Net income (loss) per common
   share -- diluted                       $ 0.19       $ 0.06       $ 0.29     $ (0.07)
                                    ============  ===========  ===========  ===========

  Weighted average shares
   outstanding -- basic               40,017,215   39,032,087   39,910,928   39,005,202
                                    ============  ===========  ===========  ===========
  Weighted average shares
   outstanding -- diluted             41,092,258   39,651,363   40,894,506   39,005,202
                                    ============  ===========  ===========  ===========

  ___________________________
  (1) Selling, general, and administrative expenses for the six months ended June 30,
   2010 includes $0.7 million of costs associated with the preparation and filing of a
   shelf registration statement and the completion of a secondary equity offering, and
   approximately $0.8 million in incremental stock-based compensation expense (when
   compared to the same period in the prior year). Selling, general, and administrative
   expenses for the six months ended June 30, 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 June 30, 2010 and December 31, 2009



                                      June 30,     December
                                        2010       31, 2009
                                     -----------  ---------
                                     (Unaudited)
                                         (In thousands)
  Assets
  Current assets:
    Cash and cash equivalents           $ 40,089   $ 10,449
    Accounts and notes receivable,
     net                                  20,009     27,700
    Inventory                              2,093      2,617
    Restricted cash, short-term            3,060      3,452
    Prepaid expenses, deferred
     costs, and other current
     assets                               10,450      8,850
                                     -----------  ---------
      Total current assets                75,701     53,068
  Property and equipment, net            148,403    147,348
  Intangible assets, net                  79,877     89,036
  Goodwill                               164,121    165,166
  Prepaid expenses, deferred costs,
   and other assets                        4,545      5,786
                                     -----------  ---------

      Total assets                     $ 472,647  $ 460,404
                                     ===========  =========

  Liabilities and Stockholders'
   Deficit
  Current liabilities:
    Current portion of long-term
     debt and notes payable              $ 2,481    $ 2,122
    Capital lease obligations                 --        235
    Current portion of other
     long-term liabilities                24,599     26,047
    Accounts payable and other
     accrued and current
     liabilities                          73,935     73,608
                                     -----------  ---------
      Total current liabilities          101,015    102,012
  Long-term liabilities:
    Long-term debt, net of related
     discounts                           304,560    304,930
    Deferred tax liability, net           14,215     12,250
    Asset retirement obligations          25,341     24,003

    Other long-term liabilities           29,647     18,499
                                     -----------  ---------
      Total liabilities                  474,778    461,694

  Stockholders' deficit                  (2,131)    (1,290)
                                     -----------  ---------
      Total liabilities and
       stockholders' deficit           $ 472,647  $ 460,404
                                     ===========  =========

SELECTED INCOME STATEMENT DETAIL:

Total revenues by segment:


                          Three Months Ended       Six Months Ended
                                June 30,                June 30,
                        ----------------------  ----------------------

                           2010        2009        2010        2009
                        ----------  ----------  ----------  ----------
                                        (In thousands)
  United States          $ 105,651   $ 102,270   $ 207,560   $ 199,037
  United Kingdom            20,343      18,031      38,964      32,808

  Mexico                     6,954       4,347      14,200       8,148
                        ----------  ----------  ----------  ----------

    Total revenues       $ 132,948   $ 124,648   $ 260,724   $ 239,993
                        ==========  ==========  ==========  ==========

Breakout of ATM operating revenues:


                                        Three Months Ended       Six Months Ended
                                              June 30,                June 30,
                                      ----------------------  ----------------------

                                         2010        2009        2010        2009
                                      ----------  ----------  ----------  ----------
                                                      (In thousands)
  Surcharge revenues                    $ 68,141    $ 65,573   $ 133,956   $ 126,449
  Interchange revenues                    39,500      37,364      77,317      71,524
  Bank branding and surcharge-free
   network revenues                       19,936      16,031      39,133      32,127

  Other revenues                           2,983       2,394       5,841       4,842
                                      ----------  ----------  ----------  ----------

    Total ATM operating revenues       $ 130,560   $ 121,362   $ 256,247   $ 234,942
                                      ==========  ==========  ==========  ==========

Total cost of revenues by segment (exclusive of depreciation, accretion, and amortization):


                         Three Months Ended       Six Months Ended
                               June 30,                June 30,
                        ---------------------  ----------------------

                           2010        2009       2010        2009
                        ----------  ---------  ----------  ----------
                                       (In thousands)
  United States           $ 69,270   $ 70,736   $ 137,741   $ 141,144
  United Kingdom            14,901     13,085      29,252      23,792

  Mexico                     5,557      3,307      10,807       6,235
                        ----------  ---------  ----------  ----------
    Total cost of
     revenues             $ 89,728   $ 87,128   $ 177,800   $ 171,171
                        ==========  =========  ==========  ==========

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


                                  Three Months Ended       Six Months Ended
                                        June 30,                June 30,
                                 ---------------------  ----------------------

                                    2010        2009       2010        2009
                                 ----------  ---------  ----------  ----------
                                                (In thousands)
  Merchant commissions             $ 42,520   $ 39,595    $ 83,120    $ 77,500
  Vault cash rental expense           9,536      8,300      18,881      16,453
  Other costs of cash                11,283     10,911      23,009      22,510
  Repairs and maintenance             8,968     10,218      17,893      19,807
  Communications                      3,820      3,621       7,602       7,404
  Transaction processing              1,438      1,634       3,119       3,302
  Stock-based compensation              169        193         368         384

  Other expenses                      9,680      9,503      19,301      18,844
                                 ----------  ---------  ----------  ----------
    Total cost of ATM operating
     revenues                      $ 87,414   $ 83,975   $ 173,293   $ 166,204
                                 ==========  =========  ==========  ==========

Breakout of selling, general, and administrative expenses:


                                   Three Months Ended      Six Months Ended
                                         June 30,              June 30,
                                  ---------------------  --------------------

                                     2010        2009       2010       2009
                                  ----------  ---------  ---------  ---------
                                                 (In thousands)
  Employee costs                     $ 5,899    $ 5,599   $ 12,004   $ 12,057
  Stock-based compensation             1,268        869      2,528      1,736
  Professional fees                    1,082      1,280      2,866      2,608

  Other                                2,023      2,836      4,017      5,038
                                  ----------  ---------  ---------  ---------
    Total selling, general, and
     administrative expenses        $ 10,272   $ 10,584   $ 21,415   $ 21,439
                                  ==========  =========  =========  =========

Depreciation and accretion expense by segment:


                         Three Months Ended     Six Months Ended
                              June 30,              June 30,
                        --------------------  --------------------

                           2010       2009       2010       2009
                        ----------  --------  ---------  ---------
                                      (In thousands)
  United States            $ 6,709   $ 6,763   $ 13,330   $ 13,563
  United Kingdom             2,943     2,727      5,886      5,163

  Mexico                       612       445      1,270        848
                        ----------  --------  ---------  ---------
    Total depreciation
     and accretion
     expense              $ 10,264   $ 9,935   $ 20,486   $ 19,574
                        ==========  ========  =========  =========

SELECTED BALANCE SHEET DETAIL:

Long-term debt and capital lease obligations:


                                                             June 30,     December
                                                               2010       31, 2009
                                                            -----------  -----------
                                                                 (In thousands)
  Series A and Series B senior subordinated notes, net of
   discounts                                                  $ 297,567    $ 297,242
  Equipment financing lines of Mexico subsidiary                  9,474        9,810

  Capital lease obligations                                          --          235
                                                            -----------  -----------

    Total long-term debt and capital lease obligations        $ 307,041    $ 307,287
                                                            ===========  ===========

Share count rollforward:

  Total shares outstanding as of December 31, 2009           40,900,532
  Shares repurchased                                          (137,550)
  Shares issued -- restricted stock grants and stock
   option exercises                                             997,411

  Shares forfeited -- restricted stock                         (14,250)
                                                          -------------

    Total shares outstanding as of June 30, 2010             41,746,143
                                                          =============

SELECTED CASH FLOW DETAIL:

Selected cash flow statement amounts:


                                                     Three Months Ended      Six Months Ended
                                                           June 30,              June 30,
                                                    ---------------------  --------------------

                                                       2010        2009       2010       2009
                                                    ----------  ---------  ---------  ---------
                                                                   (In thousands)
  Cash provided by operating activities               $ 43,415   $ 25,758   $ 52,601   $ 32,705
  Cash used in investing activities                   (12,407)    (5,823)   (21,012)   (10,799)
  Cash used in financing activities                    (1,569)   (23,348)    (2,366)   (19,332)

  Effect of exchange rate changes on cash                 (44)        454        417        494
                                                    ----------  ---------  ---------  ---------
    Net increase (decrease) in cash and cash
     equivalents                                      $ 29,395  $ (2,959)   $ 29,640    $ 3,068

  Cash and cash equivalents at beginning of period      10,694      9,451     10,449      3,424
                                                    ----------  ---------  ---------  ---------

  Cash and cash equivalents at end of period          $ 40,089    $ 6,492   $ 40,089    $ 6,492
                                                    ==========  =========  =========  =========

                                   Key Operating Metrics
                 For the Three and Six Months Ended June 30, 2010 and 2009
                                        (Unaudited)


                                             Three Months Ended       Six Months Ended
                                                   June 30,                June 30,
                                            ---------------------  ----------------------

                                               2010        2009       2010        2009
                                            ----------  ---------  ----------  ----------
  Average number of transacting ATMs:
  United States: Company-owned                  18,257     18,183      18,194      18,207
  United States: Merchant-owned                  9,944     10,130       9,933      10,141
  United Kingdom                                 2,795      2,572       2,754       2,554

  Mexico                                         2,881      2,117       2,803       2,106
                                            ----------  ---------  ----------  ----------
    Total average number of transacting
     ATMs                                       33,877     33,002      33,684      33,008
                                            ==========  =========  ==========  ==========

  Total transactions (in thousands)            105,393     96,482     202,036     185,853
  Total cash withdrawal transactions (in
   thousands)                                   65,545     62,047     126,429     119,611
  Monthly cash withdrawal transactions per
   ATM                                             645        627         626         604

  Per ATM per month amounts:
  ATM operating revenues                       $ 1,285    $ 1,226     $ 1,268     $ 1,186

  Cost of ATM operating revenues (1)               860        848         858         839
                                            ----------  ---------  ----------  ----------

    ATM operating gross profit  (2)              $ 425      $ 378       $ 410       $ 347
                                            ==========  =========  ==========  ==========

  ATM operating gross margin  (1) (2)            33.0%      30.8%       32.4%       29.3%

  Capital expenditures (in thousands) (3)     $ 12,949    $ 5,823    $ 21,554    $ 10,799
  Capital expenditures, net of
   noncontrolling interest (in thousands)
   (3)                                        $ 11,903    $ 5,597    $ 20,335    $ 10,498
  ____________________
  (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 use 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.
  (3) Capital expenditures include amounts financed by direct debt for the three and six
   month periods ended June 30, 2010.

     Reconciliation of Net Income (Loss) Attributable to Controlling Interest to EBITDA,
                                    Adjusted EBITDA, and
                                     Adjusted Net Income
                 For the Three and Six Months Ended June 30, 2010 and 2009
                                         (Unaudited)


                                              Three Months Ended       Six Months Ended
                                                    June 30,                June 30,
                                            ----------------------  ----------------------

                                               2010        2009        2010        2009
                                            ----------  ----------  ----------  ----------
                                               (In thousands, except share and per share
                                                               amounts)
  Net income (loss) attributable to
   controlling interests                       $ 8,203     $ 2,488    $ 12,168   $ (2,580)
  Adjustments:
    Interest expense, net                        7,314       7,644      14,632      15,355
    Amortization of deferred financing
     costs and bond discounts                      642         603       1,272       1,171
    Income tax expense                           1,952       1,016       3,391       2,033
    Depreciation and accretion expense          10,264       9,935      20,486      19,574

    Amortization expense                         3,765       4,504       7,744       9,031
                                            ----------  ----------  ----------  ----------

  EBITDA                                      $ 32,140    $ 26,190    $ 59,693    $ 44,584
                                            ----------  ----------  ----------  ----------

  Add back:
    Loss on disposal of assets (1)               1,095       1,676       1,472       3,784
    Other (income) expense (2)                   (338)     (1,041)           3     (1,127)
    Noncontrolling interests (3)                 (435)       (268)       (872)       (566)
    Stock-based compensation expense (6)         1,427       1,062       2,876       2,120
    Other adjustments to cost of ATM
     operating revenues (4)                         --        (30)          --         153
    Other adjustments to selling, general,
     and administrative expenses (5)                --         277          --       1,463
                                            ----------  ----------  ----------  ----------

  Adjusted EBITDA                             $ 33,889    $ 27,866    $ 63,172    $ 50,411
                                            ----------  ----------  ----------  ----------
  Less:
    Interest expense, net (6)                    7,191       7,561      14,388      15,203
    Depreciation and accretion expense (6)       9,964       9,717      19,864      19,159

    Income tax expense (at 35%)                  5,857       3,706      10,122       5,617
                                            ----------  ----------  ----------  ----------

  Adjusted Net Income                         $ 10,877     $ 6,882    $ 18,798    $ 10,432
                                            ==========  ==========  ==========  ==========


  Adjusted Net Income per share                 $ 0.27      $ 0.18      $ 0.47      $ 0.27
                                            ==========  ==========  ==========  ==========

  Adjusted Net Income per diluted share         $ 0.26      $ 0.17      $ 0.46      $ 0.26
                                            ==========  ==========  ==========  ==========

  Weighted average shares outstanding --
   basic                                    40,017,215  39,032,087  39,910,928  39,005,202
                                            ==========  ==========  ==========  ==========
  Weighted average shares outstanding --
   diluted                                  41,092,258  39,651,363  40,894,506  39,516,301
                                            ==========  ==========  ==========  ==========

  __________________
  (1) Primarily comprised of losses on the disposal of fixed assets that were incurred
   with the deinstallation of ATMs during the periods. The increased amounts during 2009
   were primarily the result of certain optimization efforts taken during that year.
  (2) Amounts exclude unrealized (gains) losses related to derivatives not designated as
   hedging instruments.
  (3) Noncontrolling interests adjustment made such that Adjusted EBITDA includes only the
   Company's 51% ownership interest in the Adjusted EBITDA of its Mexico subsidiary.
  (4) For the six month period ended June 30, 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.
  (5) For the six month period ended June 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.
  (6) Amounts exclude 49% of the expenses incurred by the Company's Mexico subsidiary as
   such amounts are allocable to the noncontrolling interest shareholders.

                            Reconciliation of Free Cash Flow
               For the Three and Six Months Ended June 30, 2010 and 2009
                                       (Unaudited)


                                               Three Months Ended    Six Months Ended
                                                    June 30,              June 30,
                                              --------------------  ------------------

                                                 2010       2009      2010      2009
                                              ----------  --------  --------  --------
                                                           (In thousands)
  Cash provided by operating activities         $ 43,415  $ 25,758  $ 52,601  $ 32,705

  Payments for capital expenditures (1)           12,949     5,823    21,554    10,799
                                              ----------  --------  --------  --------

    Free cash flow                              $ 30,466  $ 19,935  $ 31,047  $ 21,906
                                              ==========  ========  ========  ========

  __________________
  (1) Capital expenditures exclude acquisitions but includes 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                            $ 23.8     --     $ 28.2
  Adjustments:
    Interest expense, net (1)             27.0     --       26.5
    Amortization of deferred
     financing costs and bond
     discounts (2)                         6.3     --        6.3
    Income tax expense                     6.6     --        7.2
    Depreciation and accretion
     expense                              41.0     --       40.5

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

  EBITDA                               $ 119.7           $ 122.7
                                     ---------     --    -------

  Add back:
    Noncontrolling interests             (2.2)     --      (2.2)
    Stock-based compensation
     expense                               6.5               6.5
                                     ---------     --    -------

  Adjusted EBITDA                      $ 124.0           $ 127.0
                                     ---------     --    -------
  Less:
    Interest expense, net (3)             27.0     --       26.5
    Depreciation and accretion
     expense (3)                          41.0     --       40.5

    Income tax expense (at 35%)           19.7              21.0
                                     ---------     --    -------

  Adjusted Net Income                   $ 36.3            $ 39.0
                                     =========     --    =======

  Adjusted Net Income per diluted
   share                                $ 0.87            $ 0.93
                                     =========     --    =======

  Weighted average shares
   outstanding -- diluted                 41.5              42.0
                                     =========     --    =======

  __________________
  (1) Amounts do not include an anticipated one-time $2.3
   million pre-tax cash charge associated with the planned
   redemption of $100.0 million in currently outstanding senior
   subordinated notes.
  (2) Amounts include an estimated $0.4 million pre-tax charge
   associated with the write-off of deferred financing costs
   associated with the Company's recently renegotiated revolving
   credit facility and an estimated $3.2 million pre-tax charge
   associated with the write-off of the remaining unamortized
   discount and deferred financing costs associated with the
   planned redemption of $100.0 million in currently outstanding
   senior subordinated notes.
  (3) Amounts exclude 49% of the expenses to be incurred by the
   Company's Mexico subsidiary as such amounts are allocable to
   the noncontrolling interest shareholders.

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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