Cardronics Gets Extension WithLenders
HOUSTON - (05/16/06) Cardtronics Inc., operator ofthe nations biggest fleet of ATMs, reported Monday it hasobtained a waiver from its bank lenders from covenants in itscredit agreement that will allow it to continue working throughaccounting issues with the Securities and Exchange Commission. Theprivately held company, which operates more than 26,000 ATMs in theU.S. and the surcharge-free Allpoint network, is still not able toaccount for its fiscal 2005 and its banks have agreed to extenduntil June 30, the deadline for providing audited financials for2005. The ATM giant said it is also negotiating an extension of areporting deadline with its bondholders, who could demand the rightto repayment of its notes. Our people are working seven daysa week with the independent auditors, to resolve theaccounting issues and provide investors with financialstatements, Chris Brewster, the companys chieffinancial officer, said Monday during a conference call withreporters. Meantime, Cardtronics issued an unaudited first quarterreport Monday that did not include a profit or loss statement. Thecompany reported a $900,000 loss for the fourth quarter of 2005.Cardtronics said it continued to build its Allpoint business in thefirst quarter with several major new customers, including Texas DowEmployees CU and Affinity FCU, and agreements to brand ATMs forSovereign Bank and BB&T Corp. Cardtronics also provides accessto credit union members over the Credit Union 24network.