Global Cash Access Holdings, Inc. (the "Company") (NYSE:GCA) announced today financial results for the fourth quarter and year ended December 31, 2011.
Fourth Quarter 2011 Highlights
- Operating income increased 40.6% quarter-over-quarter to $14.2 million
- EBITDA increased 33.3% quarter-over-quarter to $18.4 million
- Cash EPS increased 88.9% quarter-over-quarter to $0.17
- Completed acquisition of substantially all of the assets of MCA Processing LLC
“We are very pleased to announce today the strong finish to the year with positive quarter over quarter results in our base business that suggests some true signs of recovery for our industry. With the stabilization of our base business and the portfolio of contracts we acquired through the MCA acquisition, GCA is well positioned as we head into 2012”, said Scott Betts, President and CEO of Global Cash Access.
Fiscal Fourth Quarter 2011 Results
Revenue was $137.7 million in the fourth quarter 2011 as compared to revenue of $137.8 million for the prior year’s fourth quarter. Fourth quarter 2011 revenue was impacted by the Company’s purchase of substantially all of the assets of MCA Processing LLC (“MCA”) in November 2011. Operating income was $14.2 million, an increase of 40.6%, as compared to $10.1 million for the prior year's fourth quarter. Earnings before interest, taxes, depreciation and amortization ("EBITDA") (see Non-GAAP Financial Information below) were $18.4 million, an increase of 33.3%, as compared to $13.8 million in the prior year's fourth quarter. The increase in EBITDA was primarily a result of both the October 1, 2011 enactment of the Durbin Amendment and its impact on the interchange rates paid by the Company on its debit transactions, as well as the Company’s acquisition of MCA. Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") (see Non-GAAP Financial Information below) were $20.0 million, an increase of 30.7%, as compared to $15.3 million in the prior year's fourth quarter.