Cardtronics Swings To Profit In Q2; Lifts FY09 Outlook - Update

Wednesday, ATM operator Cardtronics, Inc. (CATM), reported a swing to profit in the second-quarter on lower costs, despite a 2% decline in revenues. Providing an update to its forecast, the company raised its fiscal 2009 guidance.

The Houston, Texas-based company reported net income available to common shareholders for the second quarter of $2.49 million or $0.06 per share, compared to a loss of $3.62 million or $0.09 per share in the year-ago quarter.

Adjusted net income totaled $6.7 million or $0.17 per share, up from of $2.9 million $0.07 per share for the second quarter of 2008, mainly due to higher gross margin rates in 2009.

On average, four analysts polled by Thomson Reuters expected the company to earn $0.05 per share for the quarter. Analysts' estimates typically excludes special items.

Total revenues for the quarter declined 2% to $124.65 million from $126.98 million in the prior-year quarter. Four analysts had a revenue consensus of $118.67 million for the second quarter.

However, excluding the impact of unfavorable foreign currency exchange rate movements, year-over-year revenues increased by 3%, reflecting over 5% growth in the company's core business operations.

ATM operating revenues totaled $121.36 million, slightly down from $122.87 million in the same quarter last year. ATM product sales and other revenues also decreased to $3.29 million from $4.11 million in the second quarter of 2008.

Total cost of revenues eased to $87.13 million from $97.57 million in the prior-year quarter, while total operating expenses increased moderately to $26.70 million from $25.39 million in the year-ago quarter.

Income from operations improved to $10.82 million from $4.02 million in the second quarter of 2008.

For the six-month period, net loss available to common shareholders narrowed to $2.58 million or $0.07 per share from a loss of $8.51 million or $0.22 per share in the corresponding year-ago period.

Total revenues for the first half of fiscal 2009 declined to $239.99 million from $247.55 million in the similar period of 2008.

Looking forward, the company now expects adjusted net income to be in the range of $0.40 - $0.50 per share, and revenues of $470 million - $480 million for fiscal 2009.

Previously, the company had expected fiscal 2009 revenues in the range of $460 million - $470 million with adjusted net income in the range of $0.12 - $0.22 per share.

Analysts currently expect the company to earn $0.22 per share on revenue of $469.33 million for the full year.

CATM is currently trading at $6.92, up $2.37 or 52.09% on a volume of 620,916 shares.

by RTTNews Staff Writer

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