The automated teller machine operator Cardtronics Inc. reported a third-quarter loss of $10.7 million, after posting a $300,000 loss in the year-earlier period.
The Houston company said revenue rose 45%, to $110.6 million, mainly from an acquisition, but that increase was offset by higher costs for storing cash.
Cardtronics has branding deals with several banks, which put their names and logos on its machines in merchant locations. Those deals have driven up transaction volume and the average withdrawal size, but that means higher cash vaulting expenses.
It said higher corporate expenses, an ongoing processing conversion project, costs related to its July acquisition of 7-Eleven Inc.'s ATM portfolio, and installing more ATMs in Mexico and the United Kingdom also contributed to the wider loss.
The 7-Eleven portfolio acquisition boosted revenue by $30.1 million in the third quarter.
Cardtronics had an average of 29,880 ATMs running in the quarter, up 16%. It handled 49.7 million withdrawals, up 54%. Per-machine transaction volume rose 33%, to 555 withdrawals a month. Average revenue per machine climbed 26%, to $1,185.
Cardtronics announced its results Nov. 14. It did not have a conference call to discuss them because it is in a quiet period related to its plan announced in September to go public.
