Cardtronics Profits Fall on Merger-Related Costs

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Cardtronics (CATM) in Houston posted lower profits in the fourth quarter despite a 22% increase in revenue.

The company's net income fell 33% from the fourth quarter of 2012, to $7.5 million. The decline was largely driven by higher expenses. Operating expenses rose 47%, to $62.7 million, propelled by a surge in costs associated with its Cardpoint acquisition. Selling, general and administrative expenses climbed.

Meanwhile, Cardtronics' revenues totaled $241.9 million in the fourth quarter, up 22% from the same period in 2012. ATM operating revenues also rose by 22%, to $234.6 million. Cardtronics attributed the bulk of its growth in ATM income to its acquisitions; organic growth accounted for just 5% of the 22% increase.

Other income climbed to $6.6 million, up 43% from the fourth quarter of 2012.

Cardtronics' income for the entire year totaled $23.8 million, down 45% from 2012. The decrease was driven by a $12.1 million surge in merger-related costs. Cardtronics also took an $8.7 million charge related to property taxes in the United Kingdom and a $13.8 million income tax expense related to the restructuring of its business in the U.K.

Cardtronics also announced on Thursday that it has acquired the ATMs of Automated Financial in Chandler, Ariz. The addition of 2,100 merchant ATM contracts brings the company's total ATM network to 66,400. The terms of the deal were not disclosed.

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