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The swine flu epidemic likely will reduce ATM-transaction activity in Mexico, but the effect will be minimal on the company's bottom line, Mike Clinard, president of global services at ATM independent sales organization Cardtronics Inc., told analysts during a conference call this week. Mexico is the epicenter of the swine flu outbreak, and Clinard said the expected drop in tourism to that country would reduce ATM use. "We expect to experience a slowdown in transactions, especially in the tourist areas," Clinard said. He explained, however, that Mexico contributed only $342,000 or less than 2% to Cardtronics' consolidated EBITDA (earnings before interest, taxes, depreciation and amortization) during the most-recent quarter. Houston-based Cardtronics owns Mexico City-based Cardtronics Mexico, which operates 2,094 machines throughout the country. The ATM ISO has taken precautions to protect its employees, including allowing them to work remotely. If the epidemic continues to spread, Cardtronics will run major Cardtronics Mexico operations from Houston, Clinard says. Cardtronics Mexico contributed $4 million in first-quarter revenue to the company. That compares with $15 million Cardtronics' UK operation contributed and $97 million from its U.S. operation, J. Christopher Brewster, Cardtronics chief financial officer, said during the call.
