Earnings

Cardtronics Posts 22 Percent Revenue Growth

Cardtronics, the world’s largest ATM owner and operator, revealed that it has exceeded earnings expectations for the third quarter of 2017.

The company, which is based out of Houston, TX and operates globally, had total revenues of $402 million in the quarter ending September 30, 2017 – a 22 percent increase from $328.3 million. In a press release, Cardtronics stated that the boost was driven by the DirectCash Payments and Spark ATM Systems acquisitions completed at the beginning of the year.

Cardtronics reported that Q3 ATM operating revenues reached $390.1 million, up 24 percent from $314.8 million. ATM operating revenues in North America increased 12 percent, while ATM operating revenues in Europe and Africa increased 1 percent from the same period of 2016.

The company also noted a GAAP net income of $27.5 million, or $0.60 per diluted share, as well as adjusted EBITDA of $99.9 million, up 15 percent from $86.6 million in the prior year.

“The third quarter was a dynamic quarter where we performed well operationally under the challenges of several hurricanes and earthquakes,” said Steve Rathgaber, Cardtronics’ chief executive officer. “This quarter also marks my last earnings call as I retire at year’s end. I believe I leave behind two great assets. The first is the unique, increasingly global ‘neighborhood ATM’ platform, delivering a critical service in payments: convenient access to cash. It is a unique infrastructure platform designed for growth. The second great asset is the team now in place to lead Cardtronics to the next stage of growth. I am truly privileged to have led Cardtronics for nearly eight years. Under the leadership of my successor, Ed West, I am confident that the great potential of the Cardtronics platform will be realized for our shareholders.”

This past summer, Rathgaber announced that he would be retiring at the end of this year. Edward H. West, presently Cardtronics’ chief financial officer and chief operations officer, will succeed Rathgaber as CEO and will join the board as a director.

Some of Cardtronics’ recent highlights have included securing ATM operating contracts in approximately 1,800 locations, expanding its Allpoint Network to include 1,500 additional ATMs in Speedway convenience stores, and gaining approval from the U.K. Competition and Markets Authority to maintain its ownership of the U.K. operations of DC Payments.

During the third quarter of 2017, the company also recognized asset impairments in its Australia and New Zealand segment totaling in the aggregate $216.0 million ($193.5 million net of tax). This resulted in a GAAP net loss for the third quarter of 2017, totaling $175.6 million.

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