Cardtronics (Nasdaq: CATM) announced today an update on recent
business performance. The Company continues to see improvement in
its business across geographies as governments further relax and
remove restrictions implemented to mitigate the spread of COVID-19.
Edward H. West, Cardtronics CEO, commented, "Our business
continues to improve across our geographies as the restrictions
implemented due to COVID-19 are lifted. We are also encouraged by
our recent new business execution, solid pipeline of new business
opportunities, and strong growth with Fintech partners. We continue
to see positive industry trends, with both accelerating bank branch
footprint rationalization and consumer demand for cash, with record
high levels of cash in circulation. Our end-to-end platform
provides the cash solutions that financial institutions need and
consumers want.”
With two and a half months of the third quarter complete, the
Company now estimates that its third quarter Adjusted EBITDA will
approximate $70 million, reflecting recent business performance and
outlook for the remainder of the quarter. Encouraging transaction
activity across several markets, continued effective cost
management and more favorable exchange rates are helping drive an
improved profitability outlook for the third quarter. Included
in this estimate are approximately $10 million in incremental
benefits in the quarter following the recent legal decision by the
Supreme Court in the U.K., removing business rates for certain
ATMs. The Company now expects an Adjusted EBITDA margin of
approximately 25% for the third quarter.
The table below shows recent same-store withdrawal transaction
performance in the U.S. since the beginning of 2020, with the
third quarter to date showing -3% versus -14% in the second
quarter.
To view the table associated with this release
visit https://www.globenewswire.com/NewsRoom/AttachmentNg/aa7e8db5-a9f5-4b3b-9397-17e677c359f8Notes
to table:(1) Same-store (SS) ATMs defined as U.S. ATMs excluding
managed services registering withdrawals from 1/1/2019 until
3/31/2020 (and every month in-between); adjusted for day of the
week variances.(2) Includes several thousand ATMs that
transacted in 2019 but not in certain months of 2020 due to
temporary closures related to the pandemic. The inclusion of these
ATMs negatively impacts the samestore % above.
While the Company did not expect to provide further
intra-quarter business updates, given the Company’s current
performance expectations as compared to those shared during the
second quarter earnings call, this update has been provided.
About Cardtronics (Nasdaq: CATM) Cardtronics is
the trusted leader in financial self-service, enabling cash
transactions at over 285,000 ATMs across 10 countries in North
America, Europe, Asia-Pacific, and Africa. Leveraging our unmatched
scale, expertise, and innovation, top-tier merchants and businesses
of all sizes use our ATM solutions to drive growth, in-store
traffic, and retail transactions. Financial services providers rely
on Cardtronics to deliver superior service at their own ATMs, on
Cardtronics ATMs where they place their brand, and through
Cardtronics' Allpoint Network, the world’s largest surcharge-free
ATM network, with over 55,000 locations. As champions of cash,
Cardtronics converts digital currency into physical cash, driving
payments choice for businesses and consumers alike. To learn more
about Cardtronics, visit www.cardtronics.com and follow us on
LinkedIn and Twitter.
Contact Information:
Investor RelationsBrad ConradEVP –
Treasurer832-308-4000ir@cardtronics.com |
Media RelationsLisa AlbistonVP Public Relations
and
Communications832-308-4000corporatecommunications@cardtronics.com |
|
For more information, please
visit:www.cardtronics.com |
Cautionary Statement Regarding Forward-Looking
Statements
This news release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995, as amended and are intended to be covered by the safe harbor
provisions thereof. Forward-looking statements can be identified by
words such as "project," "believe," "estimate," "expect," "future,"
"anticipate," "intend," "contemplate," "foresee," "would," "could,"
"plan," and similar expressions that are intended to identify
forward-looking statements, which are generally not historical in
nature. These forward-looking statements are based on management’s
current expectations and beliefs concerning future developments and
their potential effect on the Company and there can be no assurance
that future developments affecting the Company will be those that
are anticipated. All comments concerning the Company’s expectations
for future revenues and operating results are based on its
estimates for its existing operations and do not include the
potential impact of any future events. The Company’s
forward-looking statements involve significant risks and
uncertainties (some of which are beyond its control) and
assumptions that could cause actual results to differ materially
from its historical experience and present expectations or
projections. Risk factors are described in the Company’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2019, as
updated by the Company’s Quarterly Report on Form 10-Q for the
quarter ended June 30, 2020, and those set forth from time-to-time
in other filings with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on
forward-looking statements contained in this news release, which
speak only as of the date of this news release. Except as required
by applicable law, the Company undertakes no obligation to publicly
update or revise any forward-looking statements after the date they
are made, whether as a result of new information, future events, or
otherwise.
Disclosure of Non-GAAP Financial
Information
In order to assist readers of our consolidated financial
statements in understanding the operating results that Management
uses to evaluate the business and for financial planning purposes,
the Company presents the following non-GAAP measures as a
complement to financial results prepared in accordance with U.S.
GAAP: Adjusted Gross Profit, Adjusted Gross Margin, EBITDA,
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income,
Adjusted Tax Rate, Adjusted Net Income per diluted share, Adjusted
Free Cash Flow, and certain other results presented on a
constant-currency basis. Management believes that the presentation
of these measures and the identification of notable, non-cash,
non-operating costs, and/or (if applicable in a particular period)
certain costs not anticipated to occur in future periods enhance an
investor’s understanding of the underlying trends in the Company’s
business and provide for better comparability between periods in
different years. In addition, Management presents Net Debt as a
measure of our financial condition. Management believes that
these measures are relevant and provide useful information widely
used by analysts, investors and other interested parties in the
Company’s industry to provide a baseline for evaluating and
comparing our operating performance, financial condition and, in
the case of free cash flow, our liquidity results. Management uses
these non-GAAP financial measures in managing and measuring the
performance of the business, including setting and measuring
incentive-based compensation.
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. In addition, the non-GAAP measures that are
used by the Company are not defined in the same manner by all
companies and therefore may not be comparable to other similarly
titled measures of other companies.
The Company is unable to reconcile the forward-looking non-GAAP
measures, Adjusted EBITDA and Adjusted EBITDA margin because not
all of the information necessary for a quantitative reconciliation
of these forward-looking non-GAAP measures to the most directly
comparable GAAP financial measure, is available to the Company
without unreasonable efforts. For the same reasons, the Company is
unable to address the significance of the unavailable information;
however, the GAAP measures could be materially different than the
non-GAAP measures.
EBITDA, Adjusted EBITDA and Adjusted EBITDA
Margin
EBITDA adds net interest expense, income tax expense (benefit),
depreciation and accretion, amortization of deferred financing
costs and note discounts, amortization of intangible assets, and
certain costs not anticipated to occur in future periods to net
income. Adjusted EBITDA and Adjusted EBITDA Margin exclude the
items excluded from EBITDA as well as share-based compensation
expense, certain other income and expense amounts, acquisition
related expenses, gains or losses on disposal and impairment of
assets, certain non-operating expenses, (if applicable in a
particular period), our obligation for the payment of income taxes,
net interest expense, and other obligations such as capital
expenditures, and includes an adjustment for noncontrolling
interests. Depreciation and accretion expense and amortization of
intangible assets are excluded from Adjusted EBITDA and Adjusted
EBITDA margins as these amounts can vary substantially from company
to company within our industry depending upon accounting methods
and book values of assets, capital structures, and the methods by
which the assets were acquired. Adjusted EBITDA margin is
calculated as Adjusted EBITDA divided by total revenues.
Cardtronics is a registered trademark of
Cardtronics plc and its subsidiaries.All other trademarks are the
property of their respective owners.
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