Cardtronics Revenue Jumps In Second Quarter Thanks To Acquisitions

ATM owner and operator Cardtronics announced news on Wednesday (August 2) of a 19 percent increase to $385.1 million in its second quarter revenue from $324 million a year ago.

In a press release, the company said the revenue growth was driven by the DCPayments and Spark acquisitions completed in January. During Q2, Cardtronics reported ATM operating revenues of $373.3 million, up 20 percent from $311.3 million a year ago. The company also noted GAAP net income of $15.2 million, or $0.33 per diluted share, was down from $20.1 million, or $0.44 per diluted share, in last year’s second quarter.

Adjusted EBITDA of $87.7 million ($90.9 million on a constant-currency basis) was up from $81.7 million in the prior year, and adjusted net income per diluted share of $0.76 ($0.79 on a constant-currency basis) was also down from $0.80, impacted by the additional interest and depreciation expense from the January acquisitions.

“Our second quarter was marked by operational focus as we made significant progress on several key fronts, including the integration of DCPayments, software and EMV upgrades on a significant portion of our company-owned U.S. ATM fleet, and the continued execution of our cost efficiency initiative,” said Steve Rathgaber, Cardtronics’ chief executive officer in prepared remarks. “We made significant strides in the quarter to position ourselves for steady execution of the core business and focused pursuit of growth opportunities with financial institutions.”

The second quarter, saw an expanded Cardtronics-Citibank branding relationship to 100 ATMs in Rite Aid stores in the New York City area and secured ATM operating contracts representing more than 1,000 locations. The company also said it secured a surcharge-free access arrangement with Caixa d’Enginyers (Engineers Savings Bank), marking its first surcharge-free network relationship in Spain.

Cardtronics noted it extended its ATM placement agreement with Harris Teeter grocery stores. Harris Teeter, a subsidiary of The Kroger Company, operates more than 240 stores across seven U.S. states and added 28 new financial institutions to its Allpoint Network.