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Global Cash Access Holdings, Inc. (the “Company”) (NYSE:GCA) today announced financial results for the quarter ended June 30, 2011.
Fiscal Second Quarter 2011 Results
Revenue was $135.1 million, a decrease of 14.1% compared to the $157.2 million in revenue recorded in the same quarter last year. This decrease was primarily attributable to the Company’s loss of its largest customer in late 2010 which accounted for approximately $21.3 million in revenue during the second quarter of 2010. In addition, revenue during the second quarter of 2011 was adversely impacted by the continued weakness in the gaming sector and consumer revolving credit. Operating income was $7.1 million. The Company incurred approximately $1.6 million in one-time expenses in the quarter, consisting primarily of $1.2 million in one-time charges associated with additional depreciation and amortization expense associated with the final purchase price allocation of the acquisition of Western Money Systems in 2010 and approximately $0.4 million associated with executive severance costs.
Earnings before interest, taxes, depreciation and amortization (“EBITDA”) (see Non-GAAP Financial Information below) were $12.0 million, a decrease of 32.3% compared to the same period in the prior year’s second quarter. Income before tax in the second quarter of 2011 was $2.5 million, which included the one-time charges discussed above. Diluted earnings per share were $0.02 in the second quarter of 2011 (on 64.1 million diluted shares). Cash EPS, which is earnings per share adjusted for non cash tax expenses were $0.04, and Cash EPS plus non cash stock compensation expense were $0.08 in the second quarter of 2011. The one-time charges discussed above represented a reduction of approximately $0.02 of additional diluted earnings per share. One-time expenses added back to Cash EPS and non cash stock compensation expense were $0.10 per diluted earnings per share in the second quarter of 2011. The Company’s tax rate for the quarter was 60.2% due to the forfeiture of previously expensed employee stock compensation.