ATM independent sales organization Global Axcess Corp. Wednesday reported record-high net income for 2009 despite lower revenue as the company focused on high-volume locations. The ISO also is using its ATM business as a bridge to cross-sell its growing DVD rental-kiosk business to clients.
The Jacksonville, Fla.-based company reported 2009 net income of $2.8 million, up 133% from $1.2 million the previous year. Revenue totaled $21.5 million, down 3% from $22.2 million.
“Our net income for the year was a record for us, demonstrating our ability to reduce expenses and focus on higher margin opportunities,” George McQuain, Global Axcess president and CEO, told analysts during a conference call.
For the fourth quarter, Global Axcess reported net income of $1.68 million, up considerably from $330,000 a year earlier. Revenue totaled $5.4 million, up 5.9% from $5.1 million.
Global Axcess added to its ATM-customer base, says McQuain, listing a number of contract renewals and new agreements. The ISO signed a four-year contract worth $100,000 per year with a convenience-store chain, and it signed a five-year, $550,000 contract with a regional convenience-store chain in the Southeastern United States. Global Axcess would not name clients.
At the end of 2009, the company operated 4,500 ATMs, up 7.1% from a year earlier, and McQuain told analysts the company has more than 5,000 ATMs to deploy in this year’s “pipeline.”
Global Axcess has moved into the DVD kiosk-rental business with InstaFlix, a Nationwide Ntertainment Services Inc. business line and subsidiary. Revenue, gross margins and growth opportunities are much higher than ATM deployment, McQuain says. Global Axcess opens doors to its DVD kiosk-rental business with ATM-client contacts, he told analysts.
“Our pipeline includes one of our large ATM accounts, representing several hundred locations,” McQuain says. “This opportunity is a direct result of what they have told us is the great job we have done servicing their ATMs, and it reinforces our DVD kiosk strategy of cross-selling and cross-servicing into our ATM accounts.”
Global Axcess deploys DVD rental kiosks in grocery stores. Consumers rent DVDs with a credit card, McQuain says.
