Lockdowns Drive Lower Revenues For ATM Owner Cardtronics

Cardtronics, which calls itself the world’s largest ATM owner-operator, disclosed its first-quarter results on Friday (May 8), which reflected lower revenues due to lockdowns and some location closures.

The Houston-based company reported that total revenues fell by 4 percent to $306.6 million, down from $318.3 million compared to Q1 in 2019.

Cardtronics’ ATM operating revenues dropped to $291.9 million, down 4 percent from $302.6 million in the prior year. Cash flows from operating activities slipped to $1.1 million compared to $21.8 million in the prior year.

“The COVID-19 pandemic has presented a challenging period for all…” said CEO Edward West in a statement. “We also believe that this crisis will likely accelerate the trend of bank branch transformation as several leading retail banks have already closed significant portions of their branch locations, and it is unclear how many of these will reopen when the pandemic has passed.”

Cardtronics reported GAAP net income of $5.8 million, or $0.13 per diluted share in Q1, compared to net income of $4.3 million, or $0.09 per diluted share one year ago, up 33 percent and 44 percent, respectively.

The company’s adjusted earnings before interest, taxes, depreciation and amortization of $63.7 million, up 4 percent from $61 million in the prior year, and up 6 percent on a constant-currency basis.

“Over the past few months, the Cardtronics team has continued to operate seamlessly and provided valuable, secure and convenient access to cash for citizens across the communities we serve,” West said. “Consumers value access, safety and the security and reliability that cash provides in crisis situations, and we play a vital role, ensuring continued economic activity is available for all.”

As revenues fell at Cardtronics, a coalition of businesses and consumers are lobbying Congress to approve a bill that would protect the use of cash against the rising tide of digital pay.

Introduced by U.S. Rep. Donald M. Payne Jr. (D-NJ), the measure would maintain cash as a valid method of payment nationwide, going against some places phasing it out as a source of payment.