Global Cash Access Holdings, Inc. (the "Company") (NYSE:GCA) announced today financial results for the third quarter ended September 30, 2012, raised its 2012 earnings guidance and announced a new $40.0 million share repurchase program.
Third Quarter 2012 Highlights
- Operating income increased 92% year-over-year to $14.6 million
- EBITDA increased 67% year-over-year to $19.0 million
- Net income per share, on a diluted basis, increased 233% year-over-year to $0.10
- Cash EPS increased 109% year-over-year to $0.23
“We are extremely pleased with the Company’s performance in the third quarter with Adjusted EBITDA up 56% and Cash EPS up 109% year over year. We continue to remain focused on enhancing our product pipeline, continuously improving execution and sales focus in all facets of our business, building the foundation for international growth and find, foster and execute technology partnerships and acquisitions to grow and expand the company,” said Scott Betts, CEO of Global Cash Access. “We are also pleased to announce today the authorization of a share repurchase program of $40.0 million over the next two years. Over the past few quarters we have been very focused on strengthening our balance sheet and believe share repurchases provide another lever to drive long-term shareholder value.”
Third Quarter 2012 Results
Revenues were $149.8 million for the third quarter 2012, as compared to revenues of $136.9 million for the same period in 2011. The overall increase in revenues was primarily due to the MCA asset acquisition. Operating income was $14.6 million for the third quarter 2012, an increase of 92%, as compared to $7.6 million for the same period in 2011. Earnings before interest, taxes, depreciation and amortization ("EBITDA") (see Non-GAAP Financial Information below) were $19.0 million for the third quarter 2012, an increase of 67%, as compared to $11.4 million for the same period in 2011. The increase in EBITDA for the third quarter 2012 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 card transactions, as well as the MCA asset purchase. Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") (see Non-GAAP Financial Information below) were $20.8 million for the third quarter 2012, an increase of 56%, as compared to $13.3 million for the same period in 2011.