Feb 4, 2015
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Cardtronics Announces Fourth Quarter and Full-Year 2014 Results - Surpasses $1 Billion in Annual Revenues

HOUSTON, Feb. 4, 2015 (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, 2014.

Key financial statistics in the fourth quarter of 2014 as compared to the fourth quarter of 2013 include:

"We had a very busy fourth quarter, which was highlighted by closing of the Welch and Sunwin acquisitions and the Co-op Food ATM placement contract. We are very excited about the new business and expect significant contributions in 2015 and beyond, as we fully realize the potential of those recent acquisitions," said Steve Rathgaber, the company's chief executive officer. "2014 was another great year for Cardtronics in which we surpassed the $1 billion revenue mark and continued to grow the business profitably, which is a reflection of our formula for success - core business execution and expansion through smart acquisitions."

RECENT HIGHLIGHTS

Please refer to the "Disclosure of Non-GAAP Financial Information" contained later in this press release for definitions of Adjusted EBITDA, Adjusted Net Income, Adjusted Gross Profit Margin, Adjusted Net Income per diluted share and Free Cash Flow. For additional financial information, including reconciliations to comparable accounting principles generally accepted in the United States of America ("GAAP"), please refer to the supplemental schedules of selected financial information at the end of this press release.

FOURTH QUARTER RESULTS

Consolidated revenues totaled $283.9 million for the fourth quarter of 2014, representing a 17% increase from the $241.9 million generated during the fourth quarter of 2013. Our ATM operating revenues were up 11% from the fourth quarter of 2013, driven both by acquisitions and organic growth. For the quarter, we achieved an organic growth rate in ATM operating revenues of 6% on a constant-currency basis. ATM product sales and other revenues were $23.1 million, up from $7.4 million in 2013, with the majority of the year-over-year increase attributable to the recently acquired Sunwin business in the U.K. which provides cash in transit, ATM maintenance and other services.

Adjusted EBITDA for the fourth quarter of 2014 totaled $65.6 million, compared to $57.3 million during the fourth quarter of 2013, and Adjusted Net Income totaled $29.0 million ($0.64 per diluted share) compared to $21.7 million ($0.49 per diluted share) during the fourth quarter of 2013. The increases in Adjusted EBITDA and Adjusted Net Income per diluted share were primarily driven by the Company's revenue growth. Adjusted Net Income was also positively impacted in the quarter by lower depreciation expense, which was down approximately $0.7 million from the prior year, as a result of certain assets becoming fully depreciated and a change in an estimate regarding asset retirement obligations. 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 2014 totaled $5.5 million, compared to GAAP net income of $7.5 million during the fourth quarter of 2013. The decrease in GAAP net income from the fourth quarter of 2013 was primarily due to an increase in amortization expense related to intangible assets acquired during 2014 and a higher income tax rate.

Effects of foreign currency exchange rate movements had a slightly negative impact on reported consolidated revenues, Adjusted EBITDA and Adjusted Net Income per diluted share during the quarter.

FULL - YEAR RESULTS

For the year ended December 31, 2014, consolidated revenues totaled $1.05 billion, representing a 20% increase from the $876.5 million generated during the same period in 2013. Of the 20% year-over-year increase, 13% was driven by revenues attributable to businesses acquired over the past year, with the remaining 7% increase attributable to organic growth from new and existing merchants and financial institution customers.

Adjusted EBITDA totaled $253.9 million for the year ended December 31, 2014, representing a 16% increase over the $218.8 million in Adjusted EBITDA for the same period in 2013. Adjusted Net Income totaled $108.0 million ($2.41 per diluted share) for the year ended December 31, 2014, up 25% on a per share basis from $86.2 million ($1.93 per diluted share) during the same period in 2013. The increases in both Adjusted EBITDA and Adjusted Net Income were primarily due to year-over-year-revenue growth.

GAAP net income for the year ended December 31, 2014 totaled $37.1 million, compared to $23.8 million during 2013. The increase in GAAP net income from the year ended December 31, 2013 was primarily due to an increase in gross margin attributable to higher revenues and lower income tax expense, partially offset by certain debt retirement costs and higher intangible asset amortization in 2014.

2015 GUIDANCE

Below is the Company's financial guidance for the year ending December 31, 2015:

The Adjusted EBITDA and Adjusted Net Income guidance excludes the impact of certain expenses, as outlined in the reconciliation provided at the end of this press release. Additionally, this guidance is based on average foreign currency exchange rates for the remainder of the year of $1.50 U.S. to £1.00 U.K., $14.75 Mexican pesos to $1.00 U.S., $1.00 Canadian dollar to $0.825 U.S., and €1.00 Euros to $1.15 U.S. This guidance also assumes that we continue operations at existing economic terms under our material customer contracts.

LIQUIDITY

The Company continues to maintain a strong liquidity position, with $238 million in available borrowing capacity under its $375 million revolving credit facility as of December 31, 2014. The Company's outstanding indebtedness as of December 31, 2014 consisted of $250 million in senior notes due 2022, $288 million convertible senior notes due 2020 (of which $225 million is recorded as long-term debt on our balance sheet, with the remaining balance in additional paid-in capital), and $137 million in borrowings under its revolving credit facility due 2019.

DISCLOSURE OF NON-GAAP FINANCIAL INFORMATION

Adjusted EBITDA, Adjusted Net Income, Adjusted Gross Profit Margin, 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 GAAP and may not be comparable to similarly-titled measures reported by other companies. The Company uses these non-GAAP financial measures in managing and measuring the performance of its business, including setting and measuring incentive based compensation for management. Management believes that the presentation of these measures and the identification of unusual, nonrecurring, 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 of intangible assets 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 also excludes acquisition-related expenses, certain other non-operating and nonrecurring costs, loss on disposal of assets, the Company's obligations for the payment of income taxes, interest expense and other obligations such as capital expenditures, and includes an adjustment for noncontrolling interests. Adjusted Gross Profit Margin is calculated excluding certain nonrecurring costs from the cost of ATM operating revenues. Adjusted Net Income represents net income computed in accordance with GAAP, before amortization of intangible assets, loss on disposal of assets, stock-based compensation expense, certain other expense (income) amounts, nonrecurring expenses, and acquisition-related expenses, and uses an assumed tax rate of 32% for the three and twelve months ended December 31, 2014, 35% through June 30, 2013 and 33.5% from July 1, 2013 through December 31, 2013, with certain adjustments for noncontrolling interests. Adjusted EBITDA %, Adjusted Pre-tax Income %, and Adjusted Net Income % are calculated by taking the respective non-GAAP financial measures over GAAP total revenues. Adjusted Net Income per diluted share is calculated by dividing Adjusted Net Income by weighted average diluted shares outstanding. Free Cash Flow is defined as cash provided by operating activities less payments for capital expenditures, including those financed through direct debt but excludes acquisitions. The Free Cash Flow measure 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, gross profit margin, 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, Wednesday, February 4, 2015, at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) to discuss its financial results for the quarter and year ended December 31, 2014. 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 Wednesday, February 18, 2015, and can be accessed by calling (855) 859-2056 or (404) 537-3406 and entering 68999748 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 February 28, 2015.

ABOUT CARDTRONICS (NASDAQ: CATM)

Making ATM cash access convenient where people shop, work and live, Cardtronics is at the convergence of retailers, financial institutions, prepaid card programs and the customers they share. Cardtronics owns/operates approximately 110,200 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.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "anticipate," "believe," "estimate," "expect," "future," "will" and similar references to future periods. Forward-looking statements give the Company's current expectations, beliefs, assumptions or forecasts of future events, future financial performance, strategies, expectations, competitive environment, regulation, and availability of resources. The forward-looking statements contained in this press 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:

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.

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
   

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