Nov 2, 2010
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Cardtronics Announces Third Quarter 2010 Results

HOUSTON, Nov 2, 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 September 30, 2010.

Key financial and operational statistics related to the quarter include:

  --  Consolidated revenues of $136.6 million, up over 6% from the third
      quarter of 2009
  --  Revenue growth of approximately 10% for the Company's core business
      operations, which include the Company's domestic Company-owned ATM
      placement, surcharge-free and managed services businesses as well as its
      international operations
  --  Adjusted EBITDA of $34.9 million, up approximately 8% from the third
      quarter of 2009
  --  Adjusted Net Income per diluted share of $0.28, up from $0.25 in the
      third quarter of 2009
  --  GAAP Net Income of $17.4 million compared to $6.4 million in the third
      quarter of 2009. GAAP Net Income for the current quarter reflects the
      recognition of $14.5 million of pre-tax non-recurring losses related to
      the early extinguishment of debt and the refinancing of the Company's
      credit facility as well as the reversal of previously-recognized
      valuation allowances on the Company's domestic deferred tax assets,
      resulting in an income tax benefit during the current quarter of $20.7
      million.
  --  Growth of the Company's managed services business, to which 882 ATMs
      were added under this type of arrangement since the end of the second
      quarter
  --  Gross margins of 33.1%, up from 31.8% in the third quarter of 2009
  --  Continued improvements in several key operating metrics when compared to
      the third quarter of 2009. Amounts presented exclude the impact of the
      Company's managed services offerings:


  --  Total transactions increased by over 8%;
  --  Total transactions per ATM increased by 7%; and
  --  ATM operating gross profit per ATM increased by 7%


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.

"The record third quarter revenue and Adjusted net income per share results were driven by the successful execution of several of our key strategic initiatives, including continued organic growth of machine count and transactions within our core business, expansion of our managed services business, and our continued ability to manage our operating costs and leverage our fixed costs," commented Steven Rathgaber, the Company's Chief Executive Officer. "With our network of premier ATM locations and recent organization changes designed to better capitalize on traditional growth engines as well as new complementary services, we believe the Company is well-positioned to continue to generate solid revenue and earnings growth."

RECENT HIGHLIGHTS

  --  Execution of a new bank branding agreement with Scotiabank, one of the
      world's leading financial institutions, to provide surcharge-free ATM
      access to Scotiabank's cardholders at over 200 ATMs in high-profile
      retail locations throughout Puerto Rico. The long-term deal is the first
      between the Company and Scotiabank and the first bank branding
      arrangement for the Company covering ATMs located in Puerto Rico.
  --  Execution of an exclusive alliance with MasterCard Worldwide under which
      the Company will provide prepaid MasterCard issuers and program managers
      the opportunity to expand their ATM footprints through the Company's
      Allpoint Network.
  --  Expansion of the Company's Allpoint Network into Australia through a
      partnership with Customers Limited, the largest owner/operator of ATMs
      in Australia. This expansion increases Allpoint's coverage by more than
      5,000 locations, to over 40,000 ATMs, and provides surcharge-free access
      to both United States and Australian participating financial institution
      cardholders.
  --  Expansion of the Company's bank branding relationship with Huntington
      Bank, which renewed its existing branding agreement for 122 locations
      and will be placing its brand on 50 additional locations in Ohio,
      Kentucky, and Indiana.
  --  Completion of a series of financing transactions designed to extend the
      maturity of the Company's debt facilities and reduce its long-term
      borrowing costs, including (1) the execution of a new $175.0 million
      bank credit facility; (2) the redemption of the Company's $200.0 million
      9.25% senior subordinated notes -- Series A and its $100.0 million 9.25%
      senior subordinated notes -- Series B, both of which were due in 2013;
      and (3) the issuance of $200.0 million 8.25% senior subordinated notes
      due 2018. -Please refer to the "Liquidity" section below for additional
      details on these transactions.
  --  Successful completion of a secondary offering in August 2010 of over 7.6
      million shares of existing common stock by selling shareholders at a
      price to the public of $14 per share. The offering consisted entirely of
      already outstanding common shares held by the Company's long-time
      private equity investors, The CapStreet Group and TA Associates, who,
      after this offering, own approximately 10% of the Company's outstanding
      shares on a combined basis.
  --  Adoption of certain strategic organizational changes, which the Company
      believes will better align the management structure with its key
      business and strategic initiatives and provide the additional focus and
      resources needed for the Company to meet and exceed expected revenue and
      profit growth targets.


THIRD QUARTER RESULTS

For the third quarter of 2010, consolidated revenues totaled $136.6 million, representing a 6.2% increase from the $128.6 million in revenues generated during the third quarter of 2009. The 6.2% year-over-year increase reflects 10% revenue growth in the Company's core business operations, which was driven by a combination of increases in transactions per machine, year-over-year surcharge rate increases implemented in the United States, and 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 third quarter of 2010 totaled $34.9 million, compared to $32.4 million during the third quarter of 2009, and Adjusted Net Income totaled $11.4 million ($0.28 per diluted share) compared to $9.9 million ($0.25 per diluted share) during the third quarter of 2009. These increases were primarily attributable to 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 third quarter of 2010 totaled $17.4 million, compared to $6.4 million during the same quarter in 2009. The year-over-year increase was attributable to the factors identified above in the discussion of Adjusted EBITDA and Adjusted Net Income and the release of valuation allowances related to the Company's domestic deferred tax assets, which resulted in a net income tax benefit for the quarter of $20.7 million. Partially offsetting the non-recurring tax benefit was approximately $14.5 million in pre-tax non-recurring charges associated with the Company's early retirement of its senior subordinated notes and the refinancing of its $175.0 million credit facility, as explained further in the "Liquidity" section below.

NINE MONTH RESULTS

Revenues totaled $397.3 million for the nine months ended September 30, 2010, representing a 7.8% increase over the $368.6 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.

Adjusted EBITDA totaled $98.0 million for the nine months ended September 30, 2010, representing an 18.4% increase over the $82.8 million in Adjusted EBITDA for the same period in 2009, and Adjusted Net Income totaled $30.2 million ($0.74 per diluted share) for the first nine months of 2010, which represented a 48.8% increase from the $20.3 million ($0.51 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, in addition to reduced operating costs per unit compared to the same period in the prior year.

GAAP Net Income for the nine months ended September 30, 2010 totaled $29.6 million, compared to $3.8 million during the same period last year. As was the case with the quarterly results, the results for the nine-month period ended September 30, 2010 include certain non-recurring items associated with the Company's financing activities and reversal of deferred tax valuation allowances. Excluding these one-time effects, the 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.

GUIDANCE

Update of Full-Year 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 $528.0 million to $529.5 million, at the higher end of the
      range of the previous guidance;
  --  Overall gross margins of approximately 32.1% to 32.2%, up from 31.5% to
      32.0% in the previous guidance;
  --  Adjusted EBITDA of $127.0 million to $129.0 million, up from $123.0
      million to $127.0 million in the previous guidance;
  --  Depreciation and accretion expense of $41.5 million to $42.0 million, up
      from the previous guidance of $40.5 million to 41.0 million;
  --  Cash interest expense of $26.0 million to $26.3 million, down from $26.5
      million to $27.0 million in the previous guidance;
  --  Adjusted Net Income of $0.95 to $0.98 per diluted share, based on
      approximately 41.5 million weighted average diluted shares outstanding,
      up from $0.87 to $0.93 per diluted share in the previous guidance; and
  --  Capital expenditures of approximately $48.0 million, net of
      noncontrolling interests, up from the previous guidance of approximately
      $45.0 million.


The above guidance excludes the impact of certain one-time items, such as the refinancing charges incurred by the company during the third quarter, as well as approximately $6.1 million of anticipated stock-based compensation expense and approximately $15.2 million of intangible asset amortization expense.

Preliminary 2011 Guidance

The Company is also providing the following preliminary high-level guidance for financial performance in 2011:

  --  Revenues of $559.0 million to $569.0 million;
  --  Adjusted EBITDA of $136.0 million to $141.0 million; and
  --  Adjusted Net Income of $1.14 to $1.20 per diluted share.


The above preliminary 2011 guidance is based on average foreign currency exchange rates of $1.50 U.S. to POUND1.00 U.K. and $13.00 Mexican pesos to $1.00 U.S. Additional details will be provided during the Company's 2010 year-end earnings conference call, which is expected to occur in February 2011.

LIQUIDITY

The Company continues to maintain a very strong liquidity position, with $97.7 million in available borrowing capacity under the Company's $175.0 million revolving credit facility as of September 30, 2010. The Company's outstanding indebtedness as of September 30, 2010 consisted of $200.0 million in senior subordinated notes due 2018, $73.0 million in borrowings under its revolving credit facility, and $9.2 million in equipment financing notes associated with its majority-owned Mexico subsidiary.

During the third quarter of 2010, the Company undertook a series of actions to modify its debt structure. Specifically, the Company: (1) refinanced its existing $175.0 million revolving credit facility and extended its term from 2012 to 2015, (2) redeemed its $100.0 million 9.25% Senior Subordinated Notes -- Series B due 2013, (3) redeemed its $200.0 million 9.25% Senior Subordinated Notes -- Series A due 2013, and (4) issued $200.0 million 8.25% Senior Subordinated Notes due 2018. As a result of these transactions, the Company extended the maturity on the majority of its debt from three years to eight years, reduced its overall level of debt outstanding, and converted its long-term capital structure to one with lower risk and more financial flexibility. Additionally, the Company now expects to save approximately $8.6 million in annual pre-tax interest costs on a go-forward basis.

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. During the three and nine month periods ended September 30, 2010, as a result of certain financing activities, the Company recorded a $7.2 million charge associated with the early extinguishment of debt and a $7.3 million charge to write off certain unamortized deferred financing costs and bond discounts related to the instruments retired. These charges have been excluded from EBITDA, Adjusted EBITDA, and Adjusted Net Income as the Company views these charges as one-time, non-recurring events specifically related to the Company's decision to improve its capital structure and financial flexibility and not related to the Company's ongoing operations. Furthermore, management feels the inclusion of such a charge in EBITDA would not contribute to management's understanding of the operating results and effectiveness of its business. Since Adjusted EBITDA and Adjusted Net Income exclude certain non-recurring or non-cash items, these measures 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, including those financed through direct debt. The non-GAAP financial measures presented herein should not be considered in isolation or as a substitute for operating income, net income, cash flows from operating, investing, or financing activities, or other income or cash flow statement data prepared in accordance with GAAP.

A reconciliation of Net Income 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, Tuesday, November 2, 2010, at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) to discuss its financial results for the quarter ended September 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 Third 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 Tuesday, November 16, 2010, and can be accessed by calling (800) 642-1687 or (706) 645-9291 and entering 18722693 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 December 2, 2010.

ABOUT CARDTRONICS

Cardtronics (Nasdaq:CATM) is the world's largest non-bank owner of ATMs. We operate over 33,500 ATMs in the United States, the United Kingdom, Mexico, and the Caribbean, primarily in well-known retailers such as 7-Eleven(R), Chevron(R), Costco(R), CVS(R)/pharmacy, ExxonMobil(R), Hess(R), Rite Aid(R), Safeway(R), Target(R), and Walgreens(R). We also assist in the operation of over 2,900 ATMs under managed services contracts with customers such as Kroger(R), Travelex(R), and Circle K(R). Cardtronics also provides services to large and small banks, credit unions, and prepaid card issuers by allowing them to place their brands on over 11,700 Cardtronics' ATMs, and by providing surcharge-free access through Cardtronics' Allpoint network. For more information, 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, including
      successful implementation of certain strategic organizational changes
      that were recently initiated;
  --  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;
  --  the Company's ability to manage concentration risks with key vendors and
      service providers;
  --  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 Nine Months Ended September 30, 2010 and 2009
                                           (Unaudited)


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

                                               2010         2009         2010         2009
                                           ------------  -----------  -----------  -----------
                                                (In thousands, except share and per share
                                                              information)
  Revenues:
  ATM operating revenues                      $ 134,090    $ 126,194    $ 390,337    $ 361,136

  ATM product sales and other revenues            2,515        2,409        6,992        7,460
                                           ------------  -----------  -----------  -----------
   Total revenues                               136,605      128,603      397,329      368,596
  Cost of revenues:
  Cost of ATM operating revenues
   (exclusive of depreciation, accretion,
   and amortization shown separately
   below)                                        89,026       85,083      262,319      251,287
  Cost of ATM product sales and other
   revenues                                       2,425        2,678        6,932        7,645
                                           ------------  -----------  -----------  -----------
   Total cost of revenues                        91,451       87,761      269,251      258,932
   Gross profit                                  45,154       40,842      128,078      109,664
  Operating expenses:
  Selling, general, and administrative
   expenses (1)                                  11,519        9,210       32,934       30,649
  Depreciation and accretion expense             10,865        9,986       31,351       29,560
  Amortization expense                            3,823        4,405       11,567       13,436

  Loss on disposal of assets                        368        1,047        1,840        4,831
                                           ------------  -----------  -----------  -----------
  Total operating expenses                       26,575       24,648       77,692       78,476
  Income from operations                         18,579       16,194       50,386       31,188
  Other expense:
  Interest expense, net                           7,064        7,473       21,696       22,828
  Amortization of deferred financing
   costs and bond discounts                         546          606        1,818        1,777
  Write-off of deferred financing costs
   and bond discounts                             7,296           --        7,296           --
  Redemption costs for early
   extinguishment of debt                         7,193           --        7,193           --

  Other (income) expense                          (207)          339        (173)        (788)
                                           ------------  -----------  -----------  -----------
   Total other expense                           21,892        8,418       37,830       23,817
  (Loss) income before income taxes             (3,313)        7,776       12,556        7,371

  Income tax (benefit) expense (2)             (20,652)        1,251     (17,261)        3,284
                                           ------------  -----------  -----------  -----------
  Net income                                     17,339        6,525       29,817        4,087
  Net (loss) income attributable to
   noncontrolling interests                       (108)          127          202          269
                                           ------------  -----------  -----------  -----------
  Net income attributable to controlling
   interests and available to common
   shareholders                                $ 17,447      $ 6,398     $ 29,615      $ 3,818
                                           ------------  -----------  -----------  -----------


  Net income per common share -- basic           $ 0.42       $ 0.16       $ 0.71       $ 0.09
                                           ============  ===========  ===========  ===========

  Net income per common share -- diluted         $ 0.41       $ 0.15       $ 0.70       $ 0.09
                                           ============  ===========  ===========  ===========

  Weighted average shares outstanding --
   basic                                     40,529,280   39,356,013   40,119,310   39,123,738
                                           ============  ===========  ===========  ===========
  Weighted average shares outstanding --
   diluted                                   41,207,238   40,117,598   40,790,504   39,768,708
                                           ============  ===========  ===========  ===========



  ---------------------------------------
  (1) Selling, general, and administrative expenses for the three and nine month periods ended
   September 30, 2010 include $0.3 million and $1.0 million, respectively, of costs associated
   with the preparation and filing of a shelf registration statement and the completion of two
   secondary equity offerings, approximately $0.4 million and $1.2 million, respectively, in
   incremental stock-based compensation expense (when compared to the same period in the prior
   year), and $0.7 million in accrued severance costs associated with the Company's recent
   management reorganization. The nine month period ended September 30, 2009 includes $1.2
   million in severance costs associated with the departure of the Company's former Chief
   Executive Officer in March 2009.
  (2) Income tax (benefit) expense for the three and nine month periods ended September 30,
   2010 includes $27.2 million in benefits related to the reversal of previously-established
   valuation allowances on the Company's domestic deferred tax assets.


           Condensed Consolidated Balance Sheets
       As of September 30, 2010 and December 31, 2009


                                     September    December
                                     30, 2010     31, 2009
                                    -----------  ---------
                                    (Unaudited)
                                        (In thousands)
  Assets
  Current assets:
   Cash and cash equivalents            $ 2,623   $ 10,449
   Accounts and notes receivable,
    net                                  23,254     27,700
   Inventory                              2,170      2,617
   Restricted cash, short-term            3,091      3,452
   Current portion of deferred tax
    asset, net                            1,640         --
   Prepaid expenses, deferred
    costs, and other current
    assets                                9,569      8,850
                                    -----------  ---------
    Total current assets                 42,347     53,068
  Property and equipment, net           157,077    147,348
  Intangible assets, net                 78,856     89,036
  Goodwill                              164,858    165,166
  Deferred tax asset, net                 6,222         --
  Prepaid expenses, deferred
   costs, and other assets                4,460      5,786
                                    -----------  ---------

    Total assets                      $ 453,820  $ 460,404
                                    ===========  =========

  Liabilities and Stockholders'
   Equity (Deficit)
  Current liabilities:
   Current portion of long-term
    debt and notes payable              $ 2,829    $ 2,122
   Capital lease obligations                 --        235
   Current portion of other
    long-term liabilities                25,374     26,047
   Accounts payable and other
    accrued and current
    liabilities                          65,571     73,608
                                    -----------  ---------
    Total current liabilities            93,774    102,012
  Long-term liabilities:
   Long-term debt, net of related
    discounts                           279,362    304,930
   Deferred tax liability, net               30     12,250
   Asset retirement obligations          25,682     24,003

   Other long-term liabilities           33,080     18,499
                                    -----------  ---------
    Total liabilities                   431,928    461,694

  Stockholders' equity (deficit)         21,892    (1,290)
                                    -----------  ---------
    Total liabilities and
     stockholders' equity
     (deficit)                        $ 453,820  $ 460,404
                                    ===========  =========

SELECTED INCOME STATEMENT DETAIL:

Total revenues by segment:


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

                          2010        2009       2010       2009
                       ----------  ---------  ---------  ---------
                                      (In thousands)
  United States         $ 108,785  $ 104,019  $ 316,345  $ 303,056
  United Kingdom           21,737     19,987     60,701     52,795

  Mexico                    6,083      4,597     20,283     12,745
                       ----------  ---------  ---------  ---------

   Total revenues       $ 136,605  $ 128,603  $ 397,329  $ 368,596
                       ==========  =========  =========  =========

Breakout of ATM operating revenues:


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

                                        2010        2009       2010       2009
                                     ----------  ---------  ---------  ---------
                                                    (In thousands)
  Surcharge revenues                   $ 67,900   $ 65,890  $ 201,856  $ 192,340
  Interchange revenues                   41,073     39,329    118,390    110,853
  Bank branding and surcharge-free
   network revenues.                     20,842     17,839     59,975     49,965

  Other revenues                          4,275      3,136     10,116      7,978
                                     ----------  ---------  ---------  ---------

   Total ATM operating revenues       $ 134,090  $ 126,194  $ 390,337  $ 361,136
                                     ==========  =========  =========  =========

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


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

                          2010       2009       2010       2009
                       ----------  --------  ---------  ---------
                                     (In thousands)
  United States          $ 70,239  $ 71,314  $ 207,980  $ 212,458
  United Kingdom           16,506    13,171     45,758     36,963

  Mexico                    4,706     3,276     15,513      9,511
                       ----------  --------  ---------  ---------
   Total cost of
    revenues             $ 91,451  $ 87,761  $ 269,251  $ 258,932
                       ==========  ========  =========  =========

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


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

                                   2010       2009       2010       2009
                                ----------  --------  ---------  ---------
                                              (In thousands)
  Merchant commissions            $ 42,160  $ 40,563  $ 125,280  $ 118,062
  Vault cash rental expense          9,902     8,733     28,783     25,186
  Other costs of cash               11,513    10,471     34,522     32,981
  Repairs and maintenance            8,929     9,736     26,822     29,543
  Communications                     3,972     3,795     11,574     11,200
  Transaction processing               956     1,617      4,075      4,919
  Stock-based compensation             226       207        594        590

  Other expenses                    11,368     9,961     30,669     28,806
                                ----------  --------  ---------  ---------
   Total cost of ATM operating
    revenues                      $ 89,026  $ 85,083  $ 262,319  $ 251,287
                                ==========  ========  =========  =========

Breakout of selling, general, and administrative expenses:


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

                                    2010      2009       2010      2009
                                 ----------  -------  ---------  --------
                                              (In thousands)
  Employee costs                    $ 6,647  $ 5,382   $ 18,651  $ 17,439
  Stock-based compensation            1,481    1,050      4,009     2,786
  Professional fees                   1,220      967      4,086     3,575

  Other                               2,171    1,811      6,188     6,849
                                 ----------  -------  ---------  --------
   Total selling, general, and
    administrative expenses        $ 11,519  $ 9,210   $ 32,934  $ 30,649
                                 ==========  =======  =========  ========

Depreciation and accretion expense by segment:


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

                          2010      2009       2010      2009
                       ----------  -------  ---------  --------
                                    (In thousands)
  United States           $ 6,843  $ 6,675   $ 20,173  $ 20,238
  United Kingdom            3,179    2,865      9,065     8,028

  Mexico                      843      446      2,113     1,294
                       ----------  -------  ---------  --------
   Total depreciation
    and accretion
    expense              $ 10,865  $ 9,986   $ 31,351  $ 29,560
                       ==========  =======  =========  ========

SELECTED BALANCE SHEET DETAIL:

Long-term debt and capital lease obligations:


                                         September   December
                                         30, 2010    31, 2009
                                        ----------  -----------
                                             (In thousands)
  8.25% senior subordinated notes        $ 200,000         $ --
  9.25% senior subordinated notes, net
   of discounts                                 --      297,242
  Revolving credit facility                 73,000           --
  Equipment financing notes                  9,191        9,810

  Capital lease obligations                     --          235
                                        ----------  -----------
   Total long-term debt and capital
    lease obligations                    $ 282,191    $ 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
   options exercised                                          1,405,212

  Shares forfeited -- restricted stock                         (48,750)
                                                           ------------

   Total shares outstanding as of September 30, 2010         42,119,444
                                                           ============

SELECTED CASH FLOW DETAIL:

Selected cash flow statement amounts:


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

                                                      2010       2009       2010       2009
                                                   ----------  --------  ---------  ---------
                                                                 (In thousands)
  Cash provided by operating activities              $ 20,392  $ 15,179   $ 72,993   $ 47,884
  Cash used in investing activities                  (18,947)   (8,275)   (39,959)   (19,074)
  Cash used in financing activities                  (38,782)   (7,234)   (41,148)   (26,566)

  Effect of exchange rate changes on cash               (129)      (21)        288        473
                                                   ----------  --------  ---------  ---------
   Net (decrease) increase in cash and cash
    equivalents                                    $ (37,466)   $ (351)  $ (7,826)    $ 2,717
  Cash and cash equivalents at beginning of
   period                                              40,089     6,492     10,449      3,424
                                                   ----------  --------  ---------  ---------

  Cash and cash equivalents at end of period          $ 2,623   $ 6,141    $ 2,623    $ 6,141
                                                   ==========  ========  =========  =========


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


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

                                               2010        2009       2010        2009
                                            ----------  ---------  ----------  ----------
  Average number of transacting ATMs:
  United States: Company-owned                  18,125     18,156      18,178      18,201
  United States: Merchant-owned                  9,587     10,054       9,690      10,110
  United Kingdom                                 2,878      2,630       2,796       2,581

  Mexico                                         2,916      2,155       2,843       2,125
                                            ----------  ---------  ----------  ----------
   Average number of transacting ATMs: ATM
    deployer services                           33,506     32,995      33,507      33,017

  United States: Managed services (1)            2,340      1,621       2,057       1,390
                                            ----------  ---------  ----------  ----------
   Total average number of transacting
    ATMs                                        35,846     34,616      35,564      34,407
                                            ==========  =========  ==========  ==========

  Total transactions (in thousands):
  ATM deployer services                        108,119     99,794     309,333     285,647

  Managed services                               3,771      2,428       9,541       6,718
                                            ----------  ---------  ----------  ----------

   Total transactions                          111,890    102,222     318,874     292,365
                                            ==========  =========  ==========  ==========

  Total cash withdrawal transactions (in
   thousands):
  ATM deployer services                         65,363     63,558     191,268     183,169

  Managed services                               2,814      2,005       7,419       5,592
                                            ----------  ---------  ----------  ----------

   Total cash withdrawal transactions           68,177     65,563     198,687     188,761
                                            ==========  =========  ==========  ==========

  Per ATM per month amounts (excludes
   managed services):
  Cash withdrawal transactions                     650        642         634         616

  ATM operating revenues                       $ 1,326    $ 1,275     $ 1,291     $ 1,215

  Cost of ATM operating revenues (2)               880        860         867         846
                                            ----------  ---------  ----------  ----------

   ATM operating gross profit  (2) (3)           $ 446      $ 415       $ 424       $ 369
                                            ==========  =========  ==========  ==========

  ATM operating gross margin  (2) (3)            33.6%      32.5%       32.8%       30.4%

  Capital expenditures (in thousands) (4)     $ 18,947    $ 8,718    $ 40,501    $ 19,517
  Capital expenditures, net of
   noncontrolling interests  (in
   thousands) (4)                             $ 18,537    $ 7,806    $ 38,872    $ 18,304


  ----------------------------------------
  (1) Includes 1,736 and 1,714 ATMs for the three and nine months ended September 30,
   2010, respectively, and all ATMs for the three and nine months ended September 30,
   2009, for which the Company only provided EFT transaction processing services.
  (2) Amounts presented exclude the effect of depreciation, accretion, and amortization
   expense, which is presented separately in the Company's consolidated statements of
   operations.
  (3) 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 managed services and ATM equipment
   sales and other ATM-related services are not included.
  (4) Capital expenditures include amounts financed by direct debt for the nine month
   period ended September 30, 2010 and for the three and nine month periods ended
   September 30, 2009.


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


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

                                                2010        2009        2010        2009
                                             ----------  ----------  ----------  ----------
                                                (In thousands, except share and per share
                                                                amounts)
  Net income attributable to controlling
   interests                                   $ 17,447     $ 6,398    $ 29,615     $ 3,818
  Adjustments:
   Interest expense, net                          7,064       7,473      21,696      22,828
   Amortization of deferred financing costs
    and bond discounts                              546         606       1,818       1,777
   Write-off of deferred financing costs
    and bond discounts                            7,296          --       7,296          --
   Redemption costs for early
    extinguishment of debt                        7,193          --       7,193          --
   Income tax (benefit) expense                (20,652)       1,251    (17,261)       3,284
   Depreciation and accretion expense            10,865       9,986      31,351      29,560

   Amortization expense                           3,823       4,405      11,567      13,436
                                             ----------  ----------  ----------  ----------

  EBITDA                                       $ 33,582    $ 30,119    $ 93,275    $ 74,703
                                             ----------  ----------  ----------  ----------

  Add back:
   Loss on disposal of assets (1)                   368       1,047       1,840       4,831
   Other (income) expense (2)                     (247)         339       (244)       (788)
   Noncontrolling interests (3)                   (530)       (381)     (1,402)       (947)
   Stock-based compensation expense (4)           1,699       1,257       4,575       3,376
   Other adjustments to cost of ATM
    operating revenues                               --          --          --         154
   Other adjustments to selling, general,
    and administrative expenses (5)                  --          --          --       1,463
                                             ----------  ----------  ----------  ----------

  Adjusted EBITDA                              $ 34,872    $ 32,381    $ 98,044    $ 82,792
                                             ----------  ----------  ----------  ----------
  Less:
   Interest expense, net (4)                      6,949       7,389      21,338      22,592
   Depreciation and accretion expense (4)        10,452       9,767      30,315      28,926

   Income tax expense (at 35%)                    6,115       5,329      16,237      10,946
                                             ----------  ----------  ----------  ----------

  Adjusted Net Income                          $ 11,356     $ 9,896    $ 30,154    $ 20,328
                                             ==========  ==========  ==========  ==========


  Adjusted Net Income per share                  $ 0.28      $ 0.25      $ 0.75      $ 0.52
                                             ==========  ==========  ==========  ==========

  Adjusted Net Income per diluted share          $ 0.28      $ 0.25      $ 0.74      $ 0.51
                                             ==========  ==========  ==========  ==========

  Weighted average shares outstanding --
   basic                                     40,529,280  39,356,013  40,119,310  39,123,738
                                             ==========  ==========  ==========  ==========
  Weighted average shares outstanding --
   diluted                                   41,207,238  40,117,598  40,790,504  39,768,708
                                             ==========  ==========  ==========  ==========


  -----------------------------------------
  (1) Primarily comprised of losses on the disposal of fixed assets that were incurred with
   the deinstallation of ATMs during the periods. The higher 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) Amounts exclude 49% of the expenses incurred by the Company's Mexico subsidiary as
   such amounts are allocable to the noncontrolling interest shareholders.
  (5) For the nine month period ended September 30, 2009, other adjustments to selling,
   general, and administrative expenses primarily consisted of severance costs associated
   with the departure of the Company's former Chief Executive Officer in March 2009.


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


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

                                                2010       2009       2010       2009
                                             ----------  --------  ---------  ---------
                                                           (In thousands)
  Cash provided by operating activities        $ 20,392  $ 15,179   $ 72,993   $ 47,884
  Payments for capital expenditures:
   Cash used in investing activities           (18,947)   (8,275)   (39,959)   (19,074)

    Fixed assets financed by direct debt             --     (443)      (542)      (443)
                                             ----------  --------  ---------  ---------
     Total payments for capital
      expenditures                             (18,947)   (8,718)   (40,501)   (19,517)
                                             ----------  --------  ---------  ---------

      Free cash flow                            $ 1,445   $ 6,461   $ 32,492   $ 28,367
                                             ==========  ========  =========  =========


     Reconciliation of Estimated Net Income to EBITDA,
          Adjusted EBITDA, and Adjusted Net Income
           For the Year Ending December 31, 2010
                        (Unaudited)


                                      Estimated Range
                                       Full Year 2010
                                   ----------------------
                                        (In millions)
  Net income                          $ 38.3   -   $ 40.5
  Adjustments:
   Interest expense, net                26.3   -     26.0
   Amortization of deferred
    financing costs and bond
    discounts                            2.0   -      2.0
   Write-off of deferred
    financing costs and bond
    discounts                            7.3   -      7.3
   Redemption costs for early
    extinguishment of debt               7.2   -      7.2
   Income tax expense                 (16.6)   -   (17.0)
   Depreciation and accretion
    expense                             41.5   -     42.0

   Amortization expense                 15.2         15.2
                                   ---------   -  -------

  EBITDA                             $ 121.2      $ 123.2
                                   ---------   -  -------

  Add back:
   Noncontrolling interests            (2.1)   -    (2.1)
   Loss on disposal of assets            1.8   -      1.8
   Stock-based compensation
    expense                              6.1          6.1
                                   ---------   -  -------

  Adjusted EBITDA                    $ 127.0      $ 129.0
                                   ---------   -  -------
  Less:
   Interest expense, net (1)            25.9   -     25.5
   Depreciation and accretion
    expense (1)                         40.2   -     40.7

   Income tax expense (at 35%)          21.3         22.0
                                   ---------   -  -------

  Adjusted Net Income                 $ 39.6       $ 40.8
                                   =========   -  =======

  Adjusted Net Income per diluted
   share                              $ 0.95       $ 0.98
                                   =========   -  =======

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


  -------------------------------
  (1) Amounts exclude 49% of the expenses to be incurred
   by the Company's Mexico subsidiary as such amounts are
   allocable to the noncontrolling interest shareholders.

    Reconciliation of Estimated Net Income to EBITDA,
         Adjusted EBITDA, and Adjusted Net Income
          For the Year Ending December 31, 2011
                       (Unaudited)


                                     Estimated Range
                                     Full Year 2011
                                  ---------------------
                                      (In millions)

  Net income                         $ 35.4  -   $ 39.1
  Adjustments:
   Interest expense, net               19.0  -     19.0
   Amortization of deferred
    financing costs                     1.0  -      1.0
   Income tax expense                  12.0  -     13.3
   Depreciation and accretion
    expense                            45.6  -     45.6

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

  EBITDA                            $ 128.0     $ 133.0
                                  ---------  -  -------

  Add back:
   Noncontrolling interests           (2.1)  -    (2.1)
   Loss on disposal of assets           2.0  -      2.0
   Stock-based compensation
    expense                             8.1         8.1
                                  ---------  -  -------

  Adjusted EBITDA                   $ 136.0     $ 141.0
                                  ---------  -  -------
  Less:
   Interest expense, net (1)           18.5  -     18.5
   Depreciation and accretion
    expense (1)                        44.1  -     44.1

   Income tax expense (at 35%)         25.7        27.4
                                  ---------  -  -------

  Adjusted Net Income                $ 47.7      $ 51.0
                                  =========  -  =======

  Adjusted Net Income per
   diluted share                     $ 1.14      $ 1.20
                                  =========  -  =======

  Weighted average shares
   outstanding -- diluted              41.9        42.6
                                  =========  -  =======


  ------------------------------
  (1) Amounts exclude 49% of the expenses to be
   incurred by the Company's Mexico subsidiary as such
   amounts are allocable to the noncontrolling interest
   shareholders.

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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