Yongye International, Inc. (YONG), RINO International Corporation (RINO) and Deer Consumer Products, Inc. (DEER) are the 3 Chinese smallcaps all breaking out to new highs, each up 8-12% today, no resistance in sight…[More...]

<font> <font>   Wednesday, August 05, 2009 7:30:19 AM ET </font> </font>

<font> Cardtronics, Inc. ( CATM ), the world’s largest non-bank operator of ATMs, today announced its financial and operational results for the quarter ended June 30, 2009. </font>

<font> Key financial and operational statistics related to the quarter include: </font>

  
  <font>  * Consolidated revenues of $124.6 million, down 2% from the second 
    quarter of 2008, but up 3% when excluding the impact of negative 
    foreign currency exchange rate movements 
  * Revenue growth in excess of 5% on a constant-currency basis for the 
    Company’s core business operations, which include the Company’s 
    domestic company-owned large-account ATM placement and branding 
    business and the Company’s international operations 
  * Adjusted EBITDA of $27.9 million, up more than 25% from the second 
    quarter of 2008 
  * Adjusted Net Income of $6.7 million, up from $2.9 million in the 
    second quarter of 2008 
  * Adjusted Net Income Per Share of $0.17, up 113% from $0.08 in the 
    second quarter of 2008 
  * GAAP Net Income of $2.5 million compared to a $3.6 million GAAP Net 
    Loss in the second quarter of 2008 
  * Free Cash Flow of nearly $20 million, consisting of $25.8 million 
    of cash provided by operating activities, less $5.8 million of 
    capital expenditures, enabling the repayment of $24.0 million in 
    amounts outstanding under the Company’s revolving credit facility 
  * Continued improvements in several key operating metrics versus the 
    second quarter of 2008: 
    -- Average number of transacting ATMs increased by 1% 
    -- Cash withdrawal transactions per ATM per month increased by 5% 
    -- ATM operating margins increased from 24% of revenues to 31% of 
       revenues 
  
  </font>  

<font> 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. </font>

<font> Recent highlights include: </font>

  
  <font>  * The expansion of the Company’s relationship with a major bank 
    branding partner to include an additional 1,300 retail locations 
    throughout the United States, most of which involve existing 
    Cardtronics ATMs 
  * The settlement of outstanding litigation and agreement to terminate 
    the underlying ATM operating agreement with an existing merchant 
    involving approximately 270 ATMs 
  * Execution of an agreement with a major direct bank to provide 
    surcharge-free ATM access to their 2 million cardholders via 
    Cardtronics’ Allpoint network 
  * The successful renegotiation and extension of contract terms with a 
    major bank branding partner covering approximately 880 out of 970 
    sites previously branded by a financial institution placed into 
    FDIC receivership 
  * Execution of agreements with ATM maintenance and armored car 
    service providers that will result in significant cost savings 
    during the remainder of 2009 and future years 
  * The continued transitioning of the Company’s ATM portfolio over to 
    its in-house electronic funds transfer ("EFT") transaction 
    processing platform.  As of June 30, 2009, the Company was 
    processing transactions for over 30,000 ATMs, including over 2,500 
    ATMs in the United Kingdom and 1,800 ATMs in Mexico 
  * The continued transitioning of the Company’s ATMs in the United 
    Kingdom over to its in-house armored courier operation.  As of 
    June 30, 2009, this operation was servicing approximately 725 of 
    the Company’s ATMs in that market 
  * Continued strong liquidity and access to capital, with over 
    $143 million in available borrowing capacity under the Company’s 
    revolving credit facility with leading financial institutions 
  * The upgrade by Standard & Poor’s ("S&P") of the Company’s corporate 
    credit rating to BB- and the Company’s senior-subordinated notes to 
    B+ due to improved margins and the Company’s largely recurring 
    revenue base. 
  
  </font>  

<font> "We are extremely pleased with our most recent quarterly results," commented Fred Lummis, Cardtronics’ Chairman of the Board and interim Chief Executive Officer. "The generation of a solid increase in profits and cash flows sufficient to pay down nearly half of our outstanding revolver balance clearly demonstrate the stability and resiliency of this business model. Also, the management team has done an outstanding job of laying the foundation for continued earnings growth, resulting in a significant increase in our expected earnings guidance for the remainder of 2009." </font>

<font> SECOND QUARTER RESULTS </font>

<font> For the second quarter of 2009, revenues totaled $124.6 million, representing a 2% decrease from the $127.0 million in revenues generated during the second quarter of 2008. However, excluding the impact of unfavorable foreign currency exchange rate movements, year-over-year revenues increased by 3%. Such increase reflects over 5% growth in the Company’s core business operations, including the Company’s higher-margin domestic large-account ATM placement, branding and international businesses, offset somewhat by a decline in the Company’s lower-margin merchant-owned account base and lower equipment sales as merchants and financial institutions continued to spend less capital in the current economic environment. Although the decline in the Company’s merchant-owned account base and equipment sales negatively impacted the year-over-year revenue comparison, the gross profit impact of such declines was negligible. </font>

<font> Adjusted EBITDA totaled $27.9 million for the second quarter of 2009, compared to $22.2 million for the second quarter of 2008, and Adjusted Net Income totaled $6.7 million ($0.17 per diluted share), compared to Adjusted Net Income of $2.9 million ($0.07 per diluted share) for the second quarter of 2008. These increases were primarily attributable to higher gross margin rates in 2009. Key drivers of margin improvement were a more favorable revenue mix, lower vault cash rental costs (due to lower market interest rates) and the results of management’s efforts to reduce other operating costs. Specific costs excluded from Adjusted EBITDA and Adjusted Net Income are detailed in a reconciliation included at the end of this press release. </font>

<font> SIX MONTH RESULTS </font>

<font> Revenues totaled $240.0 million for the six months ended June 30, 2009, representing a 3% decrease when compared to the $247.6 million in revenues recorded during the six months ended June 30, 2008. As was the case with the Company’s quarterly results, the year-over-year decrease in revenues was primarily attributable to unfavorable foreign currency exchange rate movements, a decline in the Company’s merchant-owned account base, and lower overall equipment sales. </font>

<font> Adjusted EBITDA totaled $50.4 million for the six months ended June 30, 2009, representing a 23% increase over the $40.9 million in Adjusted EBITDA for the same period in 2008. Adjusted Net Income totaled $10.1 million ($0.25 per diluted share) for the first six months of 2009, which was higher than the $4.2 million ($0.11 per diluted share) generated during the first six months of 2008. Increases in both Adjusted EBITDA and Adjusted Net Income were primarily due to the same factors as noted above for the Company’s quarterly results. </font>

<font> The GAAP net loss for the six months ended June 30, 2009 totaled $2.6 million, compared to a GAAP net loss of $8.5 million during the same period last year. As was the case with the quarterly results, the year-over-year improvement was primarily driven by the same factors outlined above with respect to Adjusted EBITDA. </font>

<font> 2009 GUIDANCE </font>

<font> The Company is updating the guidance it previously issued regarding its anticipated full-year 2009 results, and now expects the following: </font>

  
  <font>  * Revenues of $470 million to $480 million; 
  * Overall gross margins of approximately 28.5% to 29%; 
  * Adjusted EBITDA of $95 million to $100 million; 
  * Depreciation and accretion expense of $38 to $39 million; 
  * Cash interest expense of $29.5 to $30.5 million; 
  * Adjusted Net Income of $0.40 to $0.50 per diluted share, based on 
    approximately 42 million diluted shares outstanding (which does not 
    reflect the potential impact of the Company’s share repurchase 
    program); and 
  * Capital expenditures of approximately $25 million, net of minority 
    interest. 
  
  </font>  

<font> The above guidance excludes the impact of certain one-time items as well as $4.6 million of anticipated stock-based compensation expense and approximately $17.5 million of intangible asset amortization expense. Additionally, the above guidance is based on average foreign currency exchange rates of $1.60 U.S. to GBP 1.00 U.K. and $13.40 Mexican pesos to $1.00 U.S. during 2009. If the recent volatility in foreign currency market continues, specifically with respect to the British pound and Mexican peso, actual results for 2009 could differ materially from the estimates reflected above. </font>

<font> LIQUIDITY AND SHARE REPURCHASE PROGRAM </font>

<font> The Company continues to maintain a very strong liquidity position despite the weaknesses seen in the broader economy and financial markets. The Company’s $175.0 million revolving credit facility does not expire until May 2012 and is led by a syndicate of leading banks. As of June 30, 2009, the Company had $24.5 million of debt outstanding under this facility and $6.9 million in letters of credit posted under the facility, leaving $143.6 million in available, committed funding. This reflects a reduction in borrowings outstanding under the facility of over $24.0 million from the March 31, 2009 levels. The Company is currently in compliance with the covenants contained within this facility and would continue to be in compliance even in the event of substantially higher borrowings or substantially lower Adjusted EBITDA amounts. The Company’s remaining indebtedness includes $0.6 million of capital leases in the United States, $7.0 million of equipment loans in Mexico, and $297.0 million in senior subordinated notes, net of discount. These fixed rate notes require no amortization prior to their August 2013 maturity date and contain no maintenance covenants and only limited incurrence covenants under which the Company has considerable flexibility. </font>

<font> On July 16, 2009, S&P upgraded the Company’s corporate debt rating to BB- and the Company’s senior-subordinated notes to B+. These upgrades reflect the relative stability of the Company’s transaction volumes and revenues, despite the weak economy, and the continued improvements seen in the Company’s overall leverage profile during the past year. </font>

<font> Given the financial flexibility outlined above and the free cash flow expected to be generated by the Company during 2009, in February 2009, the Company’s board of directors approved a share repurchase program authorizing up to $10.0 million in share repurchases with an expiration date of March 31, 2010. The Company began executing this repurchase program during the second quarter under a Rule 10b5-1 trading plan. To date, the Company has purchased approximately 35,000 shares of its common stock at a total cost of $0.1 million and at an average price per share of $3.37. </font>

<font> DISCLOSURE OF NON-GAAP FINANCIAL INFORMATION </font>

<font> 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 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. </font>

<font> 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. Additionally, Adjusted EBITDA and Adjusted Net Income exclude certain non-recurring or non-cash items and therefore, 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. 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. </font>

<font> A reconciliation of net loss 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. </font>

<font> REVISION OF PRIOR PERIOD RESULTS </font>

<font> During the second quarter of 2009, the Company identified an error related to certain capitalized costs associated with its United Kingdom operation. Upon analysis of the Company’s fixed asset records, management identified certain assets related to previously cancelled ATM sites that should have been expensed in prior periods. The impact of such error was an overstatement of fixed assets and depreciation expense, and an understatement of cost of sales and loss on disposal of assets for the years ended December 31, 2007 and 2008, including the related quarterly periods contained therein. The cumulative effect of the error was an increase in reported net losses in the years 2007 and 2008 by a total of $1.7 million. In accordance with Staff Accounting Bulletin No. 108 ("SAB 108"), as issued by the Securities and Exchange Commission ("SEC"), management determined that the effects of the misstatement were not material to any previously reported quarterly or annual period. As such, the related corrections will be made to the applicable prior periods as such financial information is included in future filings with the SEC. The Company’s prior period results reported herein have been revised to reflect these adjustments, the effects of which have been summarized below. </font>

  
  <font>  Statement of      Three Months Ended             Six Months Ended 
   Operations:         June 30, 2008                 June 30, 2008 
               ---------------------------  --------------------------- 
                  As     Adjust-     As        As     Adjust-     As 
               Reported   ments   Adjusted  Reported   ments   Adjusted 
               --------  -------  --------  --------  -------  -------- 
                                    (In thousands) 
  
  Cost of ATM 
   operating 
   revenues    $ 93,601  $   303  $ 93,904  $182,702  $   634  $183,336 
  Depreciation 
   and 
   accretion 
   expense       10,039      (61)    9,978    19,121     (111)   19,010 
  Loss on 
   disposal of 
   assets(1)      1,025       90     1,115     2,218      217     2,435 
  Income tax 
   (benefit) 
   expense         (540)     (93)     (633)       25     (206)     (181) 
  Net loss       (3,382)    (239)   (3,621)   (7,974)    (534)   (8,508) 
  
  
  Balance Sheet:                                December 31, 2008 
                                        ------------------------------- 
                                           As                     As 
                                        Reported  Adjustments  Adjusted 
                                        --------  -----------  -------- 
  
  Property and equipment, net           $154,829   $ (1,399)   $153,430 
  Stockholders’ deficit                  (18,351)    (1,399)    (19,750) 
  
  (1) Previously included as a component of "Other expense". 
  
  </font>  

<font> CONFERENCE CALL INFORMATION </font>

<font> Cardtronics will host a conference call today, Wednesday, August 5, 2009, at 7:30 a.m. Central Time (8:30 a.m. Eastern Time) to discuss the Company’s financial results for the quarter ended June 30, 2009. </font>

<font> To access the call, please call the conference call operator at: </font>

  
  <font>  Dial in:            (800) 441-0022 
  Alternate dial-in:  (719) 325-2413 
  
  </font>  

<font> Please call in fifteen minutes prior to the scheduled start time, and request to be connected to the "Cardtronics Second Quarter Earnings Call." Additionally, a live audio webcast of the conference call will be available online through the investor relations section of Cardtronics’ website at http://www.cardtronics.com/ . </font>

<font> A digital replay of the conference call will be available through Wednesday, August 12, 2009, and can be accessed by calling (888) 203-1112 or (719) 457-0820 and entering 5861415 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 August 31, 2009. </font>

<font> ABOUT CARDTRONICS </font>

<font> Headquartered in Houston, Texas, Cardtronics is the world’s largest non-bank operator of ATMs. Cardtronics operates approximately 33,000 ATMs across its portfolio, with ATMs in every major market in the United States, over 2,530 ATMs throughout the United Kingdom, and approximately 2,110 ATMs throughout Mexico. Major merchant clients include 7-Eleven(r), Chevron(r), Costco(r), CVS(r)/pharmacy, ExxonMobil(r), Rite Aid(r), Safeway(r), Sunoco(r), Target(r), and Walgreens(r). Complementing its ATM operations, Cardtronics works with financial institutions of all sizes to provide their customers with convenient cash access and deposit capabilities through ATM branding, surcharge-free programs, and image deposit services. Approximately 10,700 Cardtronics owned and operated ATMs currently feature bank brands. For more information, please visit the Company’s website at http://www.cardtronics.com/ . </font>

<font> The Cardtronics logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=991 </font>

<font> CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS </font>

<font> This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give our current expectations or forecasts of future events, future financial performance, strategies, expectations, competitive environment, regulation, and availability of resources. Many of the forward-looking statements contained in this release relate to our second quarter financial results and the underlying business events which generated those results. They include, among other things, statements concerning projections, predictions, expectations, estimates or forecasts as to our 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. Such 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. Such risks and uncertainties include, but are not limited to, the following: </font>

  
  <font>  * risks and uncertainties relating to trends in ATM usage and 
    alternative payment options; 
  * network security related to our EFT and third party processing 
    platforms; 
  * changes in the ATM transaction fees the Company receives; 
  * decreases in the number of ATMs that can be placed with the 
    Company’s top merchants; 
  * the Company’s reliance on third parties for cash management and 
    other key outsourced services; 
  * changes in interest rates; 
  * declines in, or system failures that interrupt or delay, ATM 
    transactions; 
  * the Company’s ability to continue to execute its growth strategies; 
  * risks associated with the acquisition of other ATM networks; 
  * increased industry competition; 
  * increased regulation and regulatory uncertainty; 
  * changes in ATM technology; 
  * changes in foreign currency rates; and 
  * general and economic conditions. 
  
  </font>  

<font> 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. We assume no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information. Actual results may differ materially from such forward-looking statements for a number of reasons, including those set forth in the Company’s filings with the SEC, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2008. </font>

  
  <font>                 Consolidated Statements of Operations 
       For the Three and Six Months Ended June 30, 2009 and 2008 
                              (Unaudited) 
  
                           Three Months Ended       Six Months Ended 
                                June 30,                June 30, 
                         ----------------------  ---------------------- 
                            2009        2008        2009        2008 
                         ----------  ----------  ----------  ---------- 
                            (In thousands, except share and per share 
                                          information) 
  Revenues: 
  ATM operating revenues $  121,362  $  122,868  $  234,942  $  239,165 
  ATM product sales and 
   other revenues             3,286       4,107       5,051       8,385 
                         ----------  ----------  ----------  ---------- 
   Total revenues           124,648     126,975     239,993     247,550 
  Cost of revenues: 
  Cost of ATM operating 
   revenues (exclusive of 
   depreciation, 
   accretion, and 
   amortization shown 
   separately below)         83,975      93,904     166,204     183,336 
  Cost of ATM product 
   sales and other 
   revenues                   3,153       3,662       4,967       7,826 
                         ----------  ----------  ----------  ---------- 
   Total cost of revenues    87,128      97,566     171,171     191,162 
   Gross profit              37,520      29,409      68,822      56,388 
  Operating expenses: 
  Selling, general, and 
   administrative 
   expenses(1)               10,584       9,800      21,439      18,351 
  Depreciation and 
   accretion expense          9,935       9,978      19,574      19,010 
  Amortization expense        4,504       4,501       9,031       9,004 
  Loss on disposal of 
   assets                     1,676       1,115       3,784       2,435 
                         ----------  ----------  ----------  ---------- 
   Total operating 
    expenses                 26,699      25,394      53,828      48,800 
  Income from operations     10,821       4,015      14,994       7,588 
  Other (income) expense: 
  Interest expense, net       8,247       8,252      16,526      16,392 
  Other (income) expense     (1,041)         17      (1,127)       (115) 
                         ----------  ----------  ----------  ---------- 
   Total other expense        7,206       8,269      15,399      16,277 
  
  Income (loss) before 
   income taxes               3,615      (4,254)       (405)     (8,689) 
  Income tax expense 
   (benefit)                  1,016        (633)      2,033        (181) 
                         ----------  ----------  ----------  ---------- 
  Net income (loss)           2,599      (3,621)     (2,438)     (8,508) 
  Net income attributable 
   to noncontrolling 
   interests                    111          --         142          -- 
                         ----------  ----------  ----------  ---------- 
  Net income (loss) 
   attributable to 
   controlling interests 
   and available to 
   common shareholders   $    2,488  $   (3,621) $   (2,580) $   (8,508) 
                         ----------  ----------  ----------  ---------- 
  
  Net income (loss) per 
   common share - basic  $     0.06  $    (0.09) $    (0.07) $    (0.22) 
                         ==========  ==========  ==========  ========== 
  Net income (loss) per 
   common share - 
   diluted               $     0.06  $    (0.09) $    (0.07) $    (0.22) 
                         ==========  ==========  ==========  ========== 
  
  Weighted average 
   shares outstanding 
   - basic               39,032,087  38,735,027  39,005,202  38,662,452 
                         ==========  ==========  ==========  ========== 
  Weighted average 
   shares outstanding 
   - diluted             39,657,168  38,735,027  39,005,202  38,662,452 
                         ==========  ==========  ==========  ========== 
  
  --------------------- 
  (1) Selling, general, and administrative expenses for the six months 
      ended June 30, 2009 includes $1.2 million in severance costs 
      associated with the departure of the Company’s former Chief 
      Executive Officer in March 2009 and $1.1 million of additional 
      stock-based compensation expense associated with the restricted 
      stock and option awards granted in 2008 and 2009. For the three 
      months ended June 30, 2009, the additional stock-based 
      compensation expense associated with these grants totaled 
      $0.5 million. 
  
  
                      Consolidated Balance Sheets 
               As of June 30, 2009 and December 31, 2008 
  
  
                                               June 30,    December 31, 
                                                 2009          2008 
                                             (Unaudited) 
                                             ------------  ------------ 
                                                   (In thousands) 
  
  Assets 
  Current assets: 
   Cash and cash equivalents                 $      6,492  $      3,424 
   Accounts and notes receivable, net              23,384        25,317 
   Inventory                                        2,903         3,011 
   Restricted cash, short-term                      3,833         2,423 
   Prepaid, deferred costs, and other 
    current assets                                 11,110        17,273 
                                             ------------  ------------ 
    Total current assets                           47,722        51,448 
  Property and equipment, net                     150,676       153,430 
  Intangible assets, net                           99,942       108,327 
  Goodwill                                        165,483       163,784 
  Prepaid and other assets                          4,313         3,839 
                                             ------------  ------------ 
    Total assets                             $    468,136  $    480,828 
                                             ============  ============ 
  
  Liabilities and Stockholders’ Deficit 
  Current liabilities: 
   Current portion of long-term debt         $      1,748  $      1,373 
   Current portion of capital lease 
    obligations                                       605           757 
   Current portion of other long-term 
    liabilities                                    25,855        24,302 
   Accounts payable and other accrued and 
    current liabilities                            69,628        72,386 
                                             ------------  ------------ 
    Total current liabilities                      97,836        98,818 
  Long-term liabilities: 
   Long-term debt, net of current portion         326,698       344,816 
   Capital lease obligations, net of current 
    portion                                            --           235 
   Deferred tax liability, net                     13,564        11,673 
   Asset retirement obligations                    22,777        21,069 
   Other long-term liabilities                     17,512        23,967 
                                             ------------  ------------ 
    Total liabilities                             478,387       500,578 
  Stockholders’ deficit                           (10,251)      (19,750) 
                                             ------------  ------------ 
    Total liabilities and stockholders’ 
     deficit                                 $    468,136  $    480,828 
                                             ============  ============ 
  
  
                     Selected Financial Information 
                              (Unaudited) 
  
  SELECTED INCOME STATEMENT DETAIL: 
  --------------------------------- 
  
  Breakout of Cost of ATM operating revenues (exclusive of depreciation, 
  accretion, and amortization): 
  
                                 Three Months Ended   Six Months Ended 
                                      June 30,            June 30, 
                                 ------------------  ------------------ 
                                   2009      2008      2009      2008 
                                 --------  --------  --------  -------- 
                                             (In thousands) 
  
  Merchant commissions           $ 39,595  $ 43,074  $ 77,500  $ 82,981 
  Vault cash rental expense         8,280    11,704    16,411    23,767 
  Other cost of cash               10,925    12,031    22,511    23,239 
  Repairs and maintenance          10,067     9,322    19,944    18,832 
  Communications                    3,621     4,330     7,404     8,802 
  Transaction processing            2,422     2,584     4,851     6,109 
  Stock-based compensation            193       132       384       197 
  Other expenses                    8,872    10,727    17,199    19,409 
                                 --------  --------  --------  -------- 
   Total cost of ATM operating 
    revenues                     $ 83,975  $ 93,904  $166,204  $183,336 
                                 ========  ========  ========  ======== 
  
 Breakout of Selling, general, and administrative expenses: 
  
                                 Three Months Ended   Six Months Ended 
                                      June 30,            June 30, 
                                 ------------------  ------------------ 
                                   2009      2008      2009      2008 
                                 --------  --------  --------  -------- 
                                             (In thousands) 
  
  Employee costs                 $  5,599  $  4,929  $ 12,057  $  9,433 
  Stock-based compensation            869       412     1,736       614 
  Professional fees                 1,280     1,468     2,608     3,130 
  Other                             2,836     2,991     5,038     5,174 
                                 --------  --------  --------  -------- 
   Total selling, general, and 
    administrative expenses      $ 10,584  $  9,800  $ 21,439  $ 18,351 
                                 ========  ========  ========  ======== 
  
  
  SELECTED BALANCE SHEET DETAIL: 
  ------------------------------ 
  
  Long-term debt and capital lease obligations: 
  
                                                 June 30,  December 31, 
                                                   2009        2008 
                                                 --------  ------------ 
                                                      (In millions) 
  
  Series A and Series B senior subordinated 
   notes                                         $  297.0    $  296.6 
  Revolving credit facility                          24.5        43.5 
  Equipment financing lines of Mexico subsidiary      7.0         6.1 
  Capital lease obligations                           0.6         1.0 
                                                 --------    -------- 
   Total long-term debt and capital lease 
    obligations                                  $  329.1    $  347.2 
                                                 ========    ======== 
  
  
  Share count rollforward (in millions of shares): 
  
  Total shares outstanding as of December 31, 2008              40.6 
  Shares repurchased                                            (0.1) 
  Shares issued - restricted stock grants                        0.1 
  Shares forfeited - restricted stock                           (0.2) 
                                                             -------- 
   Total shares outstanding as of June 30, 2009                 40.4 
                                                             ======== 
  
  
               Selected Financial Information - Continued 
                              (Unaudited) 
  
  SELECTED CASH FLOW DETAIL: 
  -------------------------- 
  
  Selected cash flow statement amounts: 
  
                                 Three Months Ended   Six Months Ended 
                                      June 30,            June 30, 
                                 ------------------  ------------------ 
                                   2009      2008      2009      2008 
                                 --------  --------  --------  -------- 
                                             (In thousands) 
  
  Cash provided by operating 
   activities                    $ 25,758  $ 18,081  $ 32,705  $  7,426 
  Cash used in investing 
   activities                      (5,823)  (17,183)  (10,799)  (42,936) 
  Cash provided (used in) 
   by financing activities        (23,348)   (4,484)  (19,332)   27,370 
  Effect of exchange rate 
   changes on cash                    454      (167)      494      (144) 
                                 --------  --------  --------  -------- 
   Net increase (decrease) in 
    cash and cash equivalents    $ (2,959) $ (3,753) $  3,068  $ (8,284) 
  Cash and cash equivalents at 
   beginning of period              9,451     8,908     3,424    13,439 
                                 --------  --------  --------  -------- 
  Cash and cash equivalents at 
   end of period                 $  6,492  $  5,155  $  6,492  $  5,155 
                                 ========  ========  ========  ======== 
  
  
                         Key Operating Metrics 
       For the Three and Six Months Ended June 30, 2009 and 2008 
                              (Unaudited) 
  
                                 Three Months Ended   Six Months Ended 
                                      June 30,            June 30, 
                                 ------------------  ------------------ 
                                   2009      2008      2009      2008 
                                 --------  --------  --------  -------- 
  
  Average number of transacting 
   ATMs: 
  United States: Company-owned     18,183    18,087    18,207    17,946 
  United States: Merchant-owned    10,130    10,720    10,141    10,855 
  United Kingdom                    2,572     2,413     2,554     2,331 
  Mexico                            2,117     1,581     2,106     1,514 
                                 --------  --------  --------  -------- 
   Total average number of 
    transacting ATMs               33,002    32,801    33,008    32,646 
                                 ========  ========  ========  ======== 
  
  Total transactions (in 
   thousands)                      96,482    90,190   185,853   173,646 
  Total cash withdrawal 
   transactions (in thousands)     62,047    58,710   119,611   112,599 
  Monthly cash withdrawal 
   transactions per ATM               627       597       604       575 
  
  Per ATM per month amounts: 
  ATM operating revenues(1)      $  1,226  $  1,249  $  1,186  $  1,221 
  Cost of ATM operating 
   revenues(2)                        848       954       839       936 
                                 --------  --------  --------  -------- 
   ATM operating gross profit(3) $    378  $    295  $    347  $    285 
                                 ========  ========  ========  ======== 
  
  ATM operating gross margin(2)      30.8%     23.6%     29.3%     23.3% 
  
  Capital expenditures (in 
   thousands)                    $  5,823  $ 17,187  $ 10,799  $ 42,592 
  Capital expenditures, net of 
   noncontrolling interest (in 
   thousands)                    $  5,597  $ 15,866  $ 10,498  $ 41,598 
  
  ---------------------- 
  (1) The decline in ATM operating revenues per ATM per month was due 
      to foreign currency exchange rate movements between the three and 
      six month periods ended June 30, 2009 and 2008. 
  (2) Amounts presented exclude the effects of depreciation, accretion, 
      and amortization expense, which are presented separately in our 
      consolidated statements of operations. 
  (3) ATM operating gross profit is a measure of profitability that 
      uses only the revenue and expenses that relate to operating the 
      ATMs in our portfolio. Revenues and expenses from ATM equipment 
      sales and other ATM-related services are not included. 
  
  
   Reconciliation of Net Income (Loss) to EBITDA, Adjusted EBITDA, and 
                          Adjusted Net Income 
       For the Three and Six Months Ended June 30, 2009 and 2008 
                              (Unaudited) 
  
                           Three Months Ended       Six Months Ended 
                                June 30,                June 30, 
                         ----------------------  ---------------------- 
                            2009        2008        2009        2008 
                         ----------  ----------  ----------  ---------- 
                            (In thousands, except share and per share 
                                            amounts) 
  Net income (loss)      $    2,488  $   (3,621) $   (2,580) $   (8,508) 
  Adjustments: 
   Interest expense, net      7,644       7,722      15,355      15,354 
   Amortization of 
    deferred financing 
    costs and bond 
    discounts                   603         530       1,171       1,038 
   Income tax (benefit) 
    expense                   1,016        (633)      2,033        (181) 
   Depreciation and 
    accretion expense         9,935       9,978      19,574      19,010 
   Amortization expense       4,504       4,501       9,031       9,004 
                         ----------  ----------  ----------  ---------- 
  EBITDA                 $   26,190  $   18,477  $   44,584  $   35,717 
                         ----------  ----------  ----------  ---------- 
  
  Add back: 
   Loss on disposal of 
    assets(1)                 1,676       1,115       3,784       2,435 
   Other (income) loss       (1,041)         17      (1,127)       (115) 
   Noncontrolling 
    interests                  (268)        (98)       (566)       (146) 
   Stock-based 
    compensation expense      1,062         545       2,120         811 
   Other adjustments to 
    cost of ATM operating 
    revenues(2)                 (30)      1,914         153       2,252 
   Other adjustments to 
    selling, general, and 
    administrative 
    expenses(3)                 277         257       1,463         (88) 
                         ----------  ----------  ----------  ---------- 
  Adjusted EBITDA        $   27,866  $   22,227  $   50,411  $   40,866 
                         ----------  ----------  ----------  ---------- 
  Less: 
   Interest expense, net      7,644       7,722      15,355      15,354 
   Depreciation and 
    accretion expense         9,935       9,978      19,574      19,010 
   Income tax expense 
    (at 35%)                  3,601       1,585       5,419       2,276 
                         ----------  ----------  ----------  ----------- 
  Adjusted Net Income    $    6,686  $    2,942  $   10,063  $    4,226 
                         ==========  ==========  ==========  ========== 
  
  Adjusted Net Income 
   per share             $     0.17  $     0.08  $     0.26  $     0.11 
                         ==========  ==========  ==========  ========== 
  Adjusted Net Income 
   per diluted share     $     0.17  $     0.07  $     0.25  $     0.11 
                         ==========  ==========  ==========  ========== 
  
  Weighted average shares 
   outstanding - basic   39,032,087  38,735,027  39,005,202  38,662,452 
                         ==========  ==========  ==========  ========== 
  Weighted average shares 
   outstanding - diluted 39,657,168  39,884,800  39,516,301  39,820,007 
                         ==========  ==========  ==========  ========== 
  ---------------- 
  
  (1) Primarily comprised of losses on the disposal of fixed assets 
      that were incurred with the deinstallation of ATMs during the 
      periods. 
  (2) For the three and six month periods ended June 30, 2009 and 2008, 
      other adjustments to cost of ATM operating revenues primarily 
      consisted of costs associated with the continued conversion of 
      ATMs in the Company’s portfolio over to its in-house EFT 
      processing platform and development costs associated with the 
      start-up of the Company’s in-house armored operation in the 
      United Kingdom. 
  (3) For the six month period ended June 30, 2009, other adjustments 
      to selling, general, and administrative expenses primarily 
      consisted of severance costs associated with departure of the 
      Company’s former Chief Executive Officer in March 2009. 
  
  
                    Reconciliation of Free Cash Flow 
      For the Three and Six Months Ended June 30, 2009 and 2008 
                              (Unaudited) 
  
                                 Three Months Ended   Six Months Ended 
                                      June 30,            June 30, 
                                 ------------------  ------------------ 
                                   2009      2008      2009      2008 
                                 --------  --------  --------  -------- 
                                             (In thousands) 
  
  Cash provided by operating 
   activities                    $ 25,758  $ 18,081  $ 32,705  $  7,425 
  Payments for capital 
   expenditures(1)                  5,823    17,187    10,799    42,952 
                                 --------  --------  --------  -------- 
    Free cash flow               $ 19,935  $    894  $ 21,906  $(35,527) 
                                 ========  ========  ========  ======== 
  
  ---------------- 
  (1) Capital expenditures exclude acquisitions and include payments 
      made for exclusive license agreements and site acquisition costs 
  
  
   Reconciliation of Estimated Net Income (Loss) to EBITDA, Adjusted 
                    EBITDA, and Adjusted Net Income 
                 For the Year Ending December 31, 2009 
                              (Unaudited) 
  
                                                       Estimated Range 
  (In millions, except per share amounts)              Full Year 2009 
                                                    ------------------- 
  
  Net income (loss)                                 $  (8.5) -  $   1.0 
  Adjustments: 
   Interest expense, net                               30.5  -     29.5 
   Amortization of deferred financing costs and 
    bond discounts                                      2.4  -      2.4 
   Income tax expense                                   4.1  -      4.1 
   Depreciation and accretion expense                  39.0  -     38.0 
   Amortization expense                                18.0  -     17.0 
                                                    -------     ------- 
  EBITDA                                            $  85.5  -  $  92.0 
                                                    -------     ------- 
  
  Add back: 
   Noncontrolling interests                            (1.5) -     (1.5) 
   Stock-based compensation expense                     5.0  -      4.5 
   Other adjustments                                    6.0  -      5.0 
                                                    -------     ------- 
  Adjusted EBITDA                                   $  95.0  -  $ 100.0 
                                                    -------     ------- 
  Less: 
   Interest expense, net                               30.5  -     29.5 
   Depreciation and accretion expense                  39.0  -     38.0 
   Income tax expense (at 35%)                          9.0  -     11.4 
                                                    -------     ------- 
  Adjusted Net Income                               $  16.5  -  $  21.1 
                                                    =======     ======= 
  
  Adjusted Net Income per diluted share             $  0.40  -  $  0.50 
                                                    =======     ======= 
  
  Weighted average shares outstanding - diluted        42.5  -     41.5 
                                                    =======     ======= 
  
  </font>  

<font> This news release was distributed by GlobeNewswire, www.globenewswire.com </font>

<font> SOURCE: Cardtronics, Inc. </font>

  <font> Cardtronics, Inc. 
 Investors: 
 J. Chris Brewster, Chief Financial Officer 
 832-308-4128 
 cbrewster@cardtronics.com 
 Media: 
 Joel Antonini, Vice President - Marketing 
 832-308-4131 
 joel.antonini@cardtronics.com 
  </font>