Cardtronics Inc.’s recent acquisitions are strengthening the ATM independent sales organization’s retail and bank relationships, providing better customer service and growing its presence outside the United States, the company’s CEO noted during an analyst call to discuss third-quarter earnings.
Since July, Cardtronics has completed acquisitions for EDC Holding Co. LLC, Access To Money Inc., LocatorSearch LLC and Mr. Cash ATM Network Inc.
“These actions in conjunction with our continued focus on executing our growth plans, should position Cardtronics for consistent growth for the long-term,” Steve Rathgaber told analysts during the Nov. 8 call.
The EDC acquisition gave Cardtronics approximately 3,700 ATMs in high-traffic U.S. retail locations and ATM branding contracts with some of America’s largest financial institutions (
Access To Money operated some 10,350 ATMs when Cardtronics purchased it in August (see story). http://www.paymentssource.com/news/cardtronics-acquire-access-to-money-3007462-1.html
Cardtronics in August also purchased LocatorSearch, a provider of location search technology deployed by financial institutions to help customers find the closest bank branches and ATMs on their mobile phones (
Cardtronics’ latest acquisition included the purchase of Mr. Cash ATM, which operates more than 600 ATMs in Canada (see story).
Increases in ATM transactions, units installed and equipment sales helped Cardtronics Inc. generate revenues of $165.1 million for the quarter ended Sept. 30, up 21% from $136.6 million a year ago.
Net income rose 127.2%, to $46.8 million from $20.6 million.
Revenue was up 12% without including the ATM business of EDC.
ATM operating revenues totaled $157.6 million, up 17.6% from $134 million, while ATM product sales and other revenues rose 196%, to $7.4 million from $2.5 million, according to the ATM independent sales organization.
As of Sept. 30, the number of Cardtronics-transacting ATMs increased 12% to 40,157 machines worldwide from 35,846 a year earlier. Cardtronics operates ATMs in the United States, United Kingdom and Mexico.
Cardtronics’ ATMs handled 144.3 million transactions during the quarter, up 29.1% from 111.8 million during the same period in 2010. ATM cash withdrawals totaled 89 million, up 30.7% from 68.1 million.
Rathgaber noted during the call that ATM upgrades required by the Americans With Disabilities Act drove an increase in equipment sales during the quarter and he does not expect that growth to continue.
U.S. financial institutions are upgrading ATMs to meet the law’s requirements by adjusting machine heights for wheelchair access, adding raised symbols on keypads and placing headphone jacks for voice-guided instructions on how to use the machines for the blind. ATM deployers and financial institutions must comply with the law by March 15, 2012.
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