Cardtronics, Inc.
Feb 2, 2012
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Cardtronics Announces Fourth Quarter and Full-Year 2011 Results

HOUSTON, Feb. 2, 2012 (GLOBE NEWSWIRE) -- Cardtronics, Inc. (Nasdaq:CATM) (the "Company"), the world's largest retail ATM owner, today announced its financial and operational results for the quarter and year ended December 31, 2011.

Key financial and operational statistics in the fourth quarter of 2011 as compared to the fourth quarter of 2010 include:

Effects of foreign currency exchange rate movements had an insignificant impact on comparisons of reported revenues, Adjusted EBITDA and Adjusted Net Income per diluted share during the quarter.

The results of operations include the performance of Access to Money and Mr. Cash since November 1, 2011 and October 28, 2011, respectively, which is the date that each acquisition closed.

Please refer to the "Disclosure of Non-GAAP Financial Information" contained later in this release for definitions of Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income per diluted share 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 quarterly results are highlighted by continued strong revenue growth, which was up 29% including over 13% organic growth in the quarter and positive contributions from the two acquisitions completed during the quarter," commented Steve Rathgaber, chief executive officer. "Our revenue growth in the quarter fueled impressive growth in earnings as well, as our adjusted net income per share for the quarter was up 38%. With the addition of significant new business in the last quarter and early in 2012, we believe that we are well-positioned to continue generating solid top- and bottom-line growth in 2012 and beyond."

RECENT HIGHLIGHTS

FOURTH QUARTER RESULTS

For the fourth quarter of 2011, consolidated revenues totaled $174.2 million, representing a 29% increase from the $134.7 million in consolidated revenues generated during the fourth quarter of 2010. Of the 29% year-over-year increase, 16% was attributable to the results of acquired entities during the second half of 2011. Of the remaining 13% organic revenue increase, 8% was attributable to a combination of the following: (1) increased transactions per ATM in the Company's domestic and United Kingdom operations; (2) unit growth expansion; (3) increased revenues from managed services agreements; (4) increased bank branding revenues from financial institution partners; and (5) growth in Allpoint, America's largest surcharge-free network. Finally, 5% of the year-over-year increase in consolidated revenues was attributable to higher equipment sales.

Adjusted EBITDA for the fourth quarter of 2011 totaled $41.9 million, a 28% increase compared to $32.8 million during the fourth quarter of 2010, and Adjusted Net Income totaled $15.6 million ($0.36 per diluted share) compared to $11.0 million ($0.26 per diluted share) during the fourth quarter of 2010, or a 38% increase. As with the increase in total revenues, the increases in Adjusted EBITDA and Adjusted Net Income per diluted share were positively affected by the incremental operations of ATMs acquired during the second half of 2011, as well as the organic revenue growth. 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 fourth quarter of 2011 totaled $8.2 million, compared to $8.0 million during the same quarter in 2010. The GAAP Net Income for the fourth quarter of 2011 was only slightly higher than the comparable quarter in the prior year due to the inclusion of $3.4 million in non-recurring acquisition-related costs, higher intangible asset amortization associated with the Company's recent acquisitions, higher stock-based compensation and a higher effective tax rate compared to the prior year, partially offset by the factors identified in the discussion of the increase in Adjusted EBITDA and Adjusted Net Income above.

FULL-YEAR RESULTS

For the year ended December 31, 2011, consolidated revenues totaled $624.6 million, representing a 17% increase from the $532.1 million in consolidated revenues generated during the year ended December 31, 2010. Of the 17% increase, 6% was attributable to the acquisitions in the second half of 2011, 8% was attributable to organic growth in ATM operating revenues, and 3% was attributable to higher equipment sales. As was the case with the Company's quarterly results, the year-over-year increase in ATM operating revenues was attributable to a combination of increased transactions per ATM, increased revenues from managed services agreements, unit growth expansion, growth in Allpoint, and increased bank branding revenues from financial institution partners.

Adjusted EBITDA totaled $156.3 million for the year ended December 31, 2011, representing a 19% increase over the $130.8 million in Adjusted EBITDA for 2010, and Adjusted Net Income totaled $58.5 million ($1.37 per diluted share) for 2011, up 37% on a per share basis from $41.2 million ($1.00 per diluted share) during 2010. The 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 year ended December 31, 2011 totaled $70.2 million, compared to $41.0 million during 2010. As was the case with the quarterly results, the results for the year ended December 31, 2011 include the net impact of earnings contributions from the acquired entities, mostly offset by non-recurring acquisition-related costs. Excluding these 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. The results for the year ended December 31, 2010 include $14.4 million in non-recurring expenses associated with the Company's financing activities. In both 2011 and 2010, the Company recorded net tax benefits of $13.2 million and $17.1 million, respectively, as a result of certain tax reporting and structural changes in 2011 and the release of the Company's valuation allowances on its domestic deferred tax assets in 2010.

2012 GUIDANCE

Below is the Company's financial guidance for the year ending December 31, 2012.

The Adjusted EBITDA and Adjusted Net Income guidance excludes the impact of $10.5 million of anticipated stock-based compensation expense and $23.3 million of expected intangible asset amortization expense, both on a pre-tax basis. Additionally, this guidance is based on average foreign currency exchange rates of $1.55 U.S. to £1.00 U.K., $13.00 Mexican pesos to $1.00 U.S., and $1.00 Canadian dollar to $1.00 U.S.

LIQUIDITY

The Company continues to maintain a very strong liquidity position, with $82.0 million in available borrowing capacity under its $250.0 million revolving credit facility as of December 31, 2011. In addition, the amended credit facility can be extended to up to $325.0 million under certain conditions. The Company's outstanding indebtedness as of December 31, 2011 consisted of $200.0 million in senior subordinated notes due 2018, $166.0 million in borrowings under its revolving credit facility due 2016, and $4.9 million in equipment financing notes associated with its majority-owned Mexico subsidiary.

DISCLOSURE OF NON-GAAP FINANCIAL INFORMATION

Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income per diluted share 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. Adjusted EBITDA does not reflect acquisition-related costs and our obligations for the payment of income taxes, interest expense or other obligations such as capital expenditures. Adjusted Net Income represents net income computed in accordance with GAAP, before amortization expense, loss on disposal of assets, noncontrolling interests, stock-based compensation expense and certain other expense (income) and acquisition-related costs. Adjusted Net Income per diluted share is calculated by dividing Adjusted Net Income by average weighted diluted shares outstanding calculated in accordance with GAAP. Free Cash Flow is defined as cash provided by operating activities less payments for capital expenditures, including those financed through direct debt but excluding acquisitions. The measure of Free Cash Flow does not take into consideration certain other non-discretionary cash requirements such as, for example, mandatory principal payments on portions of the Company's long-term 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 measures prepared in accordance with GAAP. Reconciliations of the non-GAAP financial measures used herein to the most directly comparable GAAP financial measures are presented in tabular form at the end of this press release.

CONFERENCE CALL INFORMATION

The Company will host a conference call today, Thursday, February 2, 2012, at 4:30 p.m. Central Time (5:30 p.m. Eastern Time) to discuss its financial results for the quarter and the year ended December 31, 2011. 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 Fourth 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 www.cardtronics.com.

A digital replay of the conference call will be available through Thursday, February 16, 2012, and can be accessed by calling (855) 859-2056 or (404) 537-3406 and entering 43730173 for the conference ID. A replay of the conference call will also be available online through the Company's website subsequent to the call through March 2, 2012.

ABOUT CARDTRONICS(Nasdaq:CATM)

Making ATM cash access convenient where people shop, work and live their lives, Cardtronics is at the convergence of retailers, financial institutions, prepaid card programs and the customers they share. Cardtronics owns/operates approximately 52,900 retail ATMs in U.S. and international locales. Whether Cardtronics is driving foot traffic for America's most relevant retailers, enhancing ATM brand presence for card issuers or expanding card holders' surcharge-free cash access on the local, national or global scene, Cardtronics is convenient access to cash, when and where consumers need it. Cardtronics is where cash meets commerce.

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, including the expectation of operational and financial results from the contribution of the EDC and Access to Money businesses. 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:

Additional information regarding known material 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 Twelve Months Ended December 31, 2011 and 2010 
(Unaudited)
         
  Three Months Ended  Twelve Months Ended 
  December 31,  December 31, 
  2011 2010 2011 2010
  (In thousands, except share and per share information)
Revenues:        
ATM operating revenues  $165,055 $132,563 $597,219 $522,900
ATM product sales and other revenues  9,127 2,186 27,357 9,178
Total revenues  174,182 134,749 624,576 532,078
Cost of revenues:        
Cost of ATM operating revenues (exclusive of depreciation, accretion, and amortization shown separately below)  110,717 89,171 396,347 351,490
Cost of ATM product sales and other revenues  7,706 1,970 23,768 8,902
Total cost of revenues  118,423 91,141 420,115 360,392
Gross profit  55,759 43,608 204,461 171,686
Operating expenses:        
Selling, general, and administrative expenses  15,881 11,647 55,582 44,581
Acquisition-related expenses  3,448 4,747
Depreciation and accretion expense  12,958 11,373 47,962 42,724
Amortization expense  5,674 3,904 17,914 15,471
Loss on disposal of assets  701 807 981 2,647
Total operating expenses  38,662 27,731 127,186 105,423
Income from operations  17,097 15,877 77,275 66,263
Other expense:        
Interest expense, net  5,306 4,933 20,116 26,629
Amortization of deferred financing costs and bond discounts  218 211 993 2,029
Write-off of deferred financing costs and bond discounts  7,296
Redemption costs for early extinguishment of debt  7,193
Other income  (1,062) (705) (804) (878)
Total other expense  4,462 4,439 20,305 42,269
Income before income taxes  12,635 11,438 56,970 23,994
Income tax expense (benefit)  4,589 3,438 (13,176) (17,139)
Net income  8,046 8,000 70,146 41,133
Net (loss) income attributable to noncontrolling interests  (107) (28) (87) 174
Net income attributable to controlling interests and available to common stockholders  $8,153 $8,028 $70,233 $40,959
         
Net income per common share — basic  $0.18 $0.19 $1.60 $0.98
Net income per common share — diluted  $0.18 $0.19 $1.58 $0.96
         
Weighted average shares outstanding — basic  42,794,563 41,023,404 42,201,491 40,347,194
Weighted average shares outstanding — diluted  43,352,237 41,822,811 42,886,780 41,059,381
 
Condensed Consolidated Balance Sheets
As of December 31, 2011 and 2010 
     
  December 31, 2011 December 31, 2010
  (Unaudited)  
  (In thousands)
Assets    
Current assets:    
Cash and cash equivalents  $5,576 $3,189
Accounts and notes receivable, net  40,867 20,270
Inventory  3,517 1,795
Restricted cash, short-term  4,512 4,466
Current portion of deferred tax asset, net  26,902 15,017
Prepaid expenses, deferred costs, and other current assets  13,056 10,222
Total current assets  94,430 54,959
Property and equipment, net  191,331 156,465
Intangible assets, net  111,603 74,799
Goodwill  271,562 164,558
Deferred tax asset, net  23,101 715
Prepaid expenses, deferred costs, and other assets  20,774 3,819
Total assets  $712,801 $455,315
     
Liabilities and Stockholders' Equity    
Current liabilities:    
Current portion of long-term debt and notes payable  $2,317 $3,076
Current portion of other long-term liabilities  25,101 24,493
Accounts payable and other accrued and current liabilities  112,212 71,425
Total current liabilities  139,630 98,994
Long-term liabilities:    
Long-term debt  368,632 251,757
Deferred tax liability, net  10,268
Asset retirement obligations  34,517 26,657
Other long-term liabilities  56,877 23,385
Total liabilities  599,656 411,061
Stockholders' equity  113,145 44,254
Total liabilities and stockholders' equity  $712,801 $455,315
 
         
SELECTED INCOME STATEMENT DETAIL:        
         
Total revenues by segment:        
         
  Three Months Ended  Twelve Months Ended 
  December 31,  December 31, 
  2011 2010 2011 2010
  (In thousands)
United States  $142,438 $106,764 $501,328 $423,109
United Kingdom  25,536 21,882 97,665 82,583
Other international  6,208 6,103 25,583 26,386
Total revenues  $174,182 $134,749 $624,576 $532,078
         
Breakout of ATM operating revenues:        
         
  Three Months Ended  Twelve Months Ended 
  December 31,  December 31, 
  2011 2010 2011 2010
  (In thousands)
Surcharge revenues  $78,561 $65,188 $290,501 $267,713
Interchange revenues  54,180 40,686 189,587 158,343
Bank branding and surcharge-free network revenues  25,497 21,581 93,449 81,335
Managed services revenues  3,201 1,704 10,476 3,783
Other revenues  3,616 3,404 13,206 11,726
Total ATM operating revenues  $165,055 $132,563 $597,219 $522,900
         
Total cost of revenues by segment:        
         
  Three Months Ended  Twelve Months Ended 
  December 31,  December 31, 
  2011 2010 2011 2010
  (In thousands)
United States  $93,360 $69,922 $325,394 $277,902
United Kingdom  20,152 16,628 75,109 62,386
Other international  4,911 4,591 19,612 20,104
Total cost of revenues  $118,423 $91,141 $420,115 $360,392
         
Breakout of cost of ATM operating revenues (exclusive of depreciation, accretion, and amortization):  
         
  Three Months Ended  Twelve Months Ended 
  December 31,  December 31, 
  2011 2010 2011 2010
  (In thousands)
Merchant commissions  $52,230 $41,097 $186,043 $166,377
Vault cash rental expense  11,624 9,859 40,818 38,642
Other costs of cash  15,814 12,164 55,159 46,686
Repairs and maintenance  11,815 9,485 41,474 36,307
Communications  4,835 3,940 17,563 15,514
Transaction processing  1,466 867 4,833 4,942
Stock-based compensation  134 158 903 752
Other expenses  12,799 11,601 49,554 42,270
Total cost of ATM operating revenues  $110,717 $89,171 $396,347 $351,490
Breakout of selling, general, and administrative expenses:      
         
  Three Months Ended  Twelve Months Ended 
  December 31,  December 31, 
  2011 2010 2011 2010
  (In thousands)
Employee costs  $7,585 $6,069 $27,971 $24,720
Stock-based compensation  2,194 1,275 8,421 5,284
Professional fees  2,405 1,625 7,348 5,711
Other  3,697 2,678 11,842 8,866
Total selling, general, and administrative expenses  $15,881 $11,647 $55,582 $44,581
         
Depreciation and accretion expense by segment:        
         
  Three Months Ended  Twelve Months Ended 
  December 31,  December 31, 
  2011 2010 2011 2010
  (In thousands)
United States  $7,906 $7,148 $28,698 $27,321
United Kingdom  4,334 3,476 16,194 12,541
Other international  718 749 3,070 2,862
Total depreciation and accretion expense  $12,958 $11,373 $47,962 $42,724
         
     
     
SELECTED BALANCE SHEET DETAIL:    
     
Long-term debt:    
     
  December 31, 2011 December 31, 2010
  (In thousands)
8.25% senior subordinated notes  $200,000 $200,000
Revolving credit facility  166,000 46,200
Equipment financing notes  4,949 8,633
Total long-term debt  $370,949 $254,833
     
Share count rollforward:    
     
Total shares outstanding as of December 31, 2010  42,833,342  
Shares repurchased  (156,254)  
Shares issued — restricted stock grants and stock options exercised  1,349,855  
Shares forfeited — restricted stock  (27,500)  
Total shares outstanding as of December 31, 2011  43,999,443  
     
           
SELECTED CASH FLOW DETAIL:          
           
Selected cash flow statement amounts:          
           
  Three Months Ended  Twelve Months Ended   
  December 31,  December 31,   
  2011 2010 2011 2010  
  (In thousands)
Cash provided by operating activities  $43,973 $32,175 $113,325 $105,168  
Cash used in investing activities  (53,767) (10,693) (234,454) (50,652)  
Cash provided by (used in) financing activities  10,161 (21,002) 123,532 (62,150)  
Effect of exchange rate changes on cash  3 86 (16) 374  
Net increase (decrease) in cash and cash equivalents  $370 $566 $2,387 $(7,260)  
Cash and cash equivalents at beginning of period  5,206 2,623 3,189 10,449  
Cash and cash equivalents at end of period  $5,576 $3,189 $5,576 $3,189  
           
Key Operating Metrics — Excluding 2011 Acquisitions
For the Three and Twelve Months Ended December 31, 2011 and 2010
(Unaudited)  
         
The following table excludes the effect of the acquisitions completed in 2011 for EDC, Access to Money, and Mr. Cash for comparative purposes:
         
EXCLUDING 2011 ACQUISITIONS Three Months Ended  Twelve Months Ended 
  December 31,  December 31, 
  2011 2010 2011 2010
Average number of transacting ATMs:        
United States: Company-owned  19,832 18,471 19,318 18,272
United Kingdom  3,467 2,944 3,255 2,832
Mexico  2,874 2,947 2,897 2,867
Canada 
Subtotal  26,173 24,362 25,470 23,971
United States: Merchant-owned  7,785 8,436 8,086 8,626
Average number of transacting ATMs: ATM operations  33,958 32,798 33,556 32,597
         
United States: Managed services (1) 4,731 3,871 4,319 3,241
United Kingdom: Managed services  21 18
Average number of transacting ATMs: Managed services  4,752 3,871 4,337 3,241
         
Total average number of transacting ATMs  38,710 36,669 37,893 35,838
         
Total transactions (in thousands):        
ATM operations  132,275 107,095 491,041 413,780
Managed services  7,173 5,391 26,107 17,580
Total transactions  139,448 112,486 517,148 431,360
         
Total cash withdrawal transactions (in thousands):        
ATM operations  80,984 64,588 300,799 253,890
Managed services  4,600 3,635 17,241 13,020
Total cash withdrawal transactions  85,584 68,223 318,040 266,910
         
Per ATM per month amounts (excludes managed services):        
Cash withdrawal transactions  795 656 747 649
         
ATM operating revenues  $1,376 $1,330 $1,374 $1,327
Cost of ATM operating revenues (2) 900 891 902 891
ATM operating gross profit  (2) (3) $476 $439 $472 $436
         
ATM operating gross margin  (2) (3) 34.6% 33.0% 34.4% 32.9%
___________________        
(1)  Includes 2,564 and 2,533 ATMs for the three months ended December 31, 2011 and 2010, respectively, and 2,523 and 2,535 ATMs for the twelve months ended December 31, 2011 and 2010, respectively, 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 are calculated based on only the revenues and expenses that relate to operating ATMs in the Company's portfolio. Revenues and expenses relating to managed services and ATM equipment sales and other ATM-related services are not included.
 
Key Operating Metrics — Including 2011 Acquisitions
For the Three and Twelve Months Ended December 31, 2011 and 2010
(Unaudited)
         
INCLUDING 2011 ACQUISITIONS Three Months Ended  Twelve Months Ended 
  December 31,  December 31, 
  2011 2010 2011 2010
Average number of transacting ATMs:        
United States: Company-owned  24,161 18,471 21,125 18,272
United Kingdom  3,467 2,944 3,255 2,832
Mexico  2,874 2,947 2,897 2,867
Canada  342 105
Subtotal  30,844 24,362 27,382 23,971
United States: Merchant-owned  13,789 8,436 9,934 8,626
Average number of transacting ATMs: ATM operations  44,633 32,798 37,316 32,597
         
United States: Managed services (1) 4,731 3,871 4,319 3,241
United Kingdom: Managed services  21 18
Average number of transacting ATMs: Managed services  4,752 3,871 4,337 3,241
         
Total average number of transacting ATMs  49,385 36,669 41,653 35,838
         
Total transactions (in thousands):        
ATM operations  149,837 107,095 516,564 413,780
Managed services  7,173 5,391 26,107 17,580
Total transactions  157,010 112,486 542,671 431,360
         
Total cash withdrawal transactions (in thousands):        
ATM operations  93,413 64,588 318,615 253,890
Managed services  4,600 3,635 17,241 13,020
Total cash withdrawal transactions  98,013 68,223 335,856 266,910
         
Per ATM per month amounts (excludes managed services):        
Cash withdrawal transactions  698 656 712 649
         
ATM operating revenues  $1,209 $1,330 $1,310 $1,327
Cost of ATM operating revenues (2) 808 891 866 891
ATM operating gross profit  (2) (3) $401 $439 $444 $436
         
ATM operating gross margin  (2) (3) 33.2% 33.0% 33.9% 32.9%
___________________        
(1)  Includes 2,564 and 2,533 ATMs for the three months ended December 31, 2011 and 2010, respectively, and 2,523 and 2,535 ATMs for the twelve months ended December 31, 2011 and 2010, respectively, 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 are calculated based on only the revenues and expenses that relate to operating ATMs in the Company's portfolio. Revenues and expenses relating to managed services and ATM equipment sales and other ATM-related services are not included.
 
Key Operating Metrics — Ending Machine Count
As of December 31, 2011 and 2010
(Unaudited)
     
  As of December 31, 
  2011 2010
Ending number of transacting ATMs:    
United States: Company-owned  24,590 18,828
United Kingdom  3,505 2,963
Mexico  2,847 2,937
Canada  512
Subtotal  31,454 24,728
United States: Merchant-owned  16,651 8,388
Ending number of transacting ATMs: ATM operations  48,105 33,116
     
United States: Managed services (1) 4,759 3,854
United Kingdom: Managed services  22
Ending number of transacting ATMs: Managed services  4,781 3,854
     
Total ending number of transacting ATMs  52,886 36,970
___________________    
(1)  Includes 2,590 and 2,508 ATMs as of December 31, 2011 and 2010, respectively for which the Company only provided EFT transaction processing services.    
               
Reconciliation of Net Income Attributable to Controlling Interests to Adjusted EBITDA and Adjusted Net Income
For the Three and Twelve Months Ended December 31, 2011 and 2010
 (Unaudited)
         
  Three Months Ended  Twelve Months Ended 
  December 31,  December 31, 
  2011 2010 2011 2010
  (In thousands, except share and per share amounts)
Net income attributable to controlling interests  $8,153 $8,028 $70,233 $40,959
Adjustments:        
Interest expense, net  5,306 4,933 20,116 26,629
Amortization of deferred financing costs and bond discounts  218 211 993 2,029
Write-off of deferred financing costs and bond discounts  7,296
Redemption costs for early extinguishment of debt  7,193
Income tax expense (benefit)  4,589 3,438 (13,176) (17,139)
Depreciation and accretion expense  12,958 11,373 47,962 42,724
Amortization expense  5,674 3,904 17,914 15,471
EBITDA  $36,898 $31,887 $144,042 $125,162
         
Add back:        
Loss on disposal of assets (1) 701 807 981 2,647
Other income (2) (1,070) (760) (849) (1,004)
Noncontrolling interests (3) (431) (582) (1,897) (1,984)
Stock-based compensation expense (4) 2,315 1,423 9,283 5,998
Acquisition-related costs (5) 3,448 4,747
Adjusted EBITDA  $41,861 $32,775 $156,307 $130,819
Less:         
Interest expense, net (4) 5,243 4,824 19,771 26,161
Depreciation and accretion expense (4) 12,613 11,006 46,465 41,322
Adjusted pre-tax income 24,005 16,945 90,071 63,336
Income tax expense (at 35%) (6) 8,402 5,931 31,525 22,168
Adjusted Net Income $15,603 $11,014 $58,546 $41,168
         
Adjusted Net Income per share  $0.36 $0.27 $1.39 $1.02
Adjusted Net Income per diluted share  $0.36 $0.26 $1.37 $1.00
         
Weighted average shares outstanding — basic  42,794,563 41,023,404 42,201,491 40,347,194
Weighted average shares outstanding — diluted  43,352,237 41,822,811 42,886,780 41,059,381
_________________        
(1)  Primarily comprised of losses on the disposal of fixed assets that were incurred with the deinstallation of ATMs during the periods. 
(2)  Amounts exclude unrealized and realized (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)  Acquisition-related costs include non-recurring costs incurred for professional and legal fees and certain transition and integration-related costs, related to the acquisition of EDC, LocatorSearch, Access to Money and Mr. Cash. 
(6)  35% represents the Company's estimated long-term, cross-jurisdictional effective tax rate.
 
Reconciliation of Free Cash Flow
For the Three and Twelve Months Ended December 31, 2011 and 2010
(Unaudited)
         
  Three Months Ended  Twelve Months Ended 
  December 31,  December 31, 
  2011 2010 2011 2010
  (In thousands)
Cash provided by operating activities  $43,973 $32,175 $113,325 $105,168
Payments for capital expenditures:        
Cash used in investing activities, excluding acquisitions  (29,827) (10,693) (66,886) (50,652)
Capital expenditures financed by direct debt  (542)
Total payments for capital expenditures  (29,827) (10,693) (66,886) (51,194)
Free cash flow  $14,146 $21,482 $46,439 $53,974
         
 
Reconciliation of Estimated Net Income to EBITDA, Adjusted EBITDA, and Adjusted Net Income
For the Year Ending December 31, 2012
(Unaudited)
       
  Estimated Range
  Full Year 2012
       
  (In millions, except per share information)
       
Net income  $41.0 -- $43.9
Adjustments:      
Interest expense, net  20.1 -- 21.6
Amortization of deferred financing costs  1.0 -- 1.0
Income tax expense  25.4 -- 27.5
Depreciation and accretion expense  55.5 -- 57.0
Amortization expense  23.3 -- 23.3
EBITDA  $166.3 -- $174.3
       
Add back:      
Noncontrolling interests  (1.4) -- (1.4)
Loss on disposal of assets  0.5 -- 0.5
Stock-based compensation expense  10.5 -- 10.5
Other expense  2.1 -- 2.1
Adjusted EBITDA  $178.0 -- $186.0
Less:       
Interest expense, net (1) 20.0 -- 21.5
Depreciation and accretion expense (1) 53.5 -- 55.5
Income tax expense (at 35%) (2) 36.6 -- 38.2
Adjusted Net Income  $67.9 -- $70.8
       
Adjusted Net Income per diluted share  $1.55 -- $1.61
       
Weighted average shares outstanding — diluted  43.9 -- 43.9
       
 __________________      
(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. 
(2) 35% represents the Company's estimated long-term, cross-jurisdictional effective tax rate.

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Contact Information:


	
Cardtronics — Media Cardtronics — Investors
Nick Pappathopoulos Chris Brewster
Director — Public Relations Chief Financial Officer
832-308-4396 832-308-4128
npappathopoulos@cardtronics.com cbrewster@cardtronics.com