HOUSTON, Feb. 04, 2016 (GLOBE NEWSWIRE) -- Cardtronics, Inc. (Nasdaq:CATM) (the "Company"), the world's largest retail ATM owner/operator, today announced its financial and operational results for the quarter and year ended December 31, 2015.

Key financial statistics in the fourth quarter of 2015 as compared to the fourth quarter of 2014 include:
  • Total revenues of $303.3 million, up 7% from $283.9 million (9% on a constant-currency basis).
  • ATM operating revenues of $291.7 million, up 12% from $260.8 million (14% on a constant-currency basis).
  • Gross margin of 35.5%, up from 33.0% in 2014.
  • Adjusted Net Income per diluted share of $0.71, up 11% from $0.64.
  • Adjusted EBITDA of $73.2 million, up 12% from $65.6 million.
  • GAAP Net Income of $14.8 million, or $0.33 per diluted share, compared to GAAP Net Income of $5.5 million, or $0.12 per diluted share.
  • Cash flows from operating activities of $109.4 million, up 40% from $78.3 million.       

"We had a strong 2015 - our fifth consecutive year featuring double-digit revenue and adjusted earnings growth. We also continued to diversify our revenues and profits, expanded our global footprint, added many new customers across our markets, and made some important investments in product and strategy, positioning us favorably for growth in the future," commented Steve Rathgaber, Cardtronics' chief executive officer.

RECENT HIGHLIGHTS
  • Reached an agreement with Aldi, the U.K.'s sixth largest supermarket chain, to deploy 450 ATMs across the majority of their U.K. stores in 2016.
  • Reached agreements with 18 new financial institutions to join our Allpoint surcharge-free network, enabling almost 700,000 new cardholders with surcharge-free access to many of our conveniently located ATMs at major merchants across the U.S.
  • Expanded our branding and managed services relationships with CIBC in Canada, with Key Bank in several western U.S. states, and with Santander in Puerto Rico.
  • Executed an ATM placement agreement with Poland-based Statoil, a division of Couche-Tard.       

2015 MILESTONES
  • Total annual revenues were $1.2 billion in 2015 representing a 14% increase over 2014 and the fifth consecutive year with double-digit revenue and Adjusted Net Income per share growth.
  • The Company handled over 759 million cash withdrawal transactions and dispensed almost $100 billion in cash in 2015.

Refer to the "Disclosure of Non-GAAP Financial Information" contained later in this press release for definitions of Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income per diluted share, Free Cash Flow, and Revenue on a constant-currency basis. For additional financial information, including reconciliations to the most comparable financial measure recognized under accounting principles generally accepted in the United States of America ("GAAP"), refer to the supplemental schedules of selected financial information at the end of this press release.

FOURTH QUARTER RESULTS

Consolidated revenues totaled $303.3 million for the fourth quarter of 2015, representing a 7% increase from $283.9 million generated in the fourth quarter of 2014. ATM operating revenues were up 12% from the fourth quarter of 2014. Adjusting for unfavorable movements in currency exchange rates, ATM operating revenues were up approximately 14% from the fourth quarter of 2014, driven by nearly equal components of organic and acquisition-related revenue contributions.

Adjusted EBITDA for the fourth quarter of 2015 totaled $73.2 million, representing a 12% increase over the $65.6 million of Adjusted EBITDA during the fourth quarter of 2014. Adjusted Net Income totaled $32.2 million ($0.71 per diluted share) for the fourth quarter of 2015, compared to $29.0 million ($0.64 per diluted share) during the fourth quarter in 2014. The increases in Adjusted EBITDA and Adjusted Net Income were primarily driven by the Company's revenue growth and margin expansion. Adjusted EBITDA and Adjusted Net Income are detailed in a reconciliation included at the end of this press release.

GAAP Net Income for the fourth quarter of 2015 totaled $14.8 million, compared to GAAP Net Income of $5.5 million during the fourth quarter in 2014. The increase in GAAP Net Income for the fourth quarter of 2015 was the result of the revenue growth and margin expansion and a lower effective tax rate in the quarter.

FULL - YEAR RESULTS

Consolidated revenues totaled $1.2 billion for the year ended December 31, 2015, representing a 14% increase from the $1.05 billion in consolidated revenues generated during 2014. ATM operating revenues were up 13% from 2014. Adjusting for unfavorable movements in currency exchange rates, ATM operating revenues were up approximately 16% for the year ended December 31, 2015, driven by a combination of organic and acquisition-related growth.

Adjusted EBITDA for the year ended December 31, 2015 totaled $296.4 million, representing a 17% increase over the $253.9 million of Adjusted EBITDA during 2014. Adjusted Net Income totaled $130.8 million ($2.88 per diluted share) for the year ended December 31, 2015, compared to $108.0 million ($2.41 per diluted share) during the same period in 2014. The increases in both Adjusted EBITDA and Adjusted Net Income were primarily due to the same factors discussed above, including the Company's year-over-year revenue growth and margin improvement.

GAAP Net Income for the year ended December 31, 2015 totaled $67.1 million, compared to GAAP Net Income of $37.1 million during the same period in 2014. The increase in GAAP Net Income for the year ended December 31, 2015 was primarily due to the same factors impacting Adjusted EBITDA and also the net gain recognized on the sale of our non-core retail cash-in-transit operation in the U.K., offset by acquisition and divestiture-related costs incurred during the period.

2016 GUIDANCE

Below is the Company's financial guidance for the year ending December 31, 2016:
  • Revenues of $1.24 billion to $1.27 billion;
  • Gross Profit Margin of 35.0% to 35.5%;
  • Adjusted EBITDA of $315 million to $325 million;
  • Depreciation and accretion expense of $94 million to $96 million, net of noncontrolling interests;
  • Cash interest expense of $18 million to $19 million, net of noncontrolling interests;
  • Adjusted Net Income per diluted share of $3.00 to $3.13, based on approximately 45.8 million weighted average diluted shares outstanding; and
  • Capital expenditures of $150 million to $160 million, net of noncontrolling interests.

The Adjusted EBITDA and Adjusted Net Income guidance excludes the impact of certain expenses, as outlined in the reconciliation provided at the end of this press release. Additionally, this guidance is based on average foreign currency exchange rates for the remainder of the year of £1.00 U.K. to $1.45 U.S., $17.00 Mexican pesos to $1.00 U.S., $1.00 Canadian dollar to $0.70 U.S., and €1.00 Euros to $1.05 U.S.

LIQUIDITY

The Company had $284.2 million in available borrowing capacity under its $375.0 million revolving credit facility and $26.3 million in cash on hand as of December 31, 2015. The Company's outstanding indebtedness as of December 31, 2015 consisted of $250.0 million in senior notes due 2022, $287.5 million convertible senior notes due 2020 (of which $234.6 million is currently recorded as long-term debt on the balance sheet, which is being accreted up to the principal balance of $287.5 million over the term of the notes), and $90.8 million in borrowings under its revolving credit facility due 2019.

DISCLOSURE OF NON-GAAP FINANCIAL INFORMATION

Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income per diluted share, Free Cash Flow, and Revenue on a constant-currency basis are non-GAAP financial measures provided as a complement to results prepared in accordance with U.S. GAAP and may not be comparable to similarly-titled measures reported by other companies. The Company uses these non-GAAP financial measures in managing and measuring the performance of its business, including setting and measuring incentive based compensation for management. Management believes that the presentation of these measures and the identification of unusual, nonrecurring, or non-cash items enhance an investor's understanding of the underlying trends in the Company's business and provide for better comparability between periods in different years.

Adjusted EBITDA excludes depreciation, accretion, and amortization of intangible assets as these amounts can vary substantially from company to company within the Company's industry depending upon accounting methods and book values of assets, capital structures, and the method by which the assets were acquired. Adjusted EBITDA also excludes stock-based compensation expense, acquisition and divestiture-related expenses, certain other non-operating and nonrecurring expenses, gains or losses on disposal of assets, the Company's obligations for the payment of income taxes, interest expense and other obligations such as capital expenditures, and includes an adjustment for noncontrolling interests. Adjusted EBITDA % is calculated by taking Adjusted EBITDA over U.S. GAAP total revenues. Adjusted Net Income represents net income computed in accordance with U.S. GAAP, before amortization of intangible assets, gains or losses on disposal of assets, stock-based compensation expense, certain other expense (income) amounts, nonrecurring expenses, and acquisition and divestiture-related expenses, and uses an estimated long-term cash tax rate of 32.0% for the three and twelve months ended December 31, 2015 and 2014, with certain adjustments for noncontrolling interests. Adjusted Net Income per diluted share is calculated by dividing Adjusted Net Income by weighted average diluted shares outstanding. Free Cash Flow is defined as cash provided by operating activities less payments for capital expenditures, including those financed through direct debt but excluding acquisitions. The Free Cash Flow measure does not take into consideration certain other non-discretionary cash requirements such as, for example, mandatory principal payments on portions of the Company's long-term debt. Management calculates Revenue on a constant-currency basis by using the average foreign exchange rates applicable in the corresponding period of the previous year and applying these rates to foreign-denominated revenue of the current period. The difference between revenue calculated based on these foreign exchange rates and revenue calculated in accordance with U.S. GAAP is referred to as the foreign exchange impact on revenue. Management uses Revenue on a constant-currency basis to eliminate the effect foreign currency has on comparability between periods.

The non-GAAP financial measures presented herein should not be considered in isolation or as a substitute for operating income, net income, cash flows from operating, investing, or financing activities, or other income or cash flow measures prepared in accordance with U.S. GAAP. Reconciliations of the non-GAAP financial measures used herein to the most directly comparable U.S. GAAP financial measures are presented in tabular form at the end of this press release.

CONFERENCE CALL INFORMATION

The Company will host a conference call today, Thursday, February 4, 2016, at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) to discuss its financial results for the fourth quarter and year ended December 31, 2015. To access the call, please call the conference call operator at:
Dial in:   (877) 303-9205
Alternate dial-in:       (760) 536-5226

Please call in fifteen minutes prior to the scheduled start time and request to be connected to the "Cardtronics Fourth Quarter Earnings Conference Call." Additionally, a live audio webcast of the conference call will be available online through the investor relations section of the Company's website at www.cardtronics.com.

A digital replay of the conference call will be available through Thursday, February 18, 2016, and can be accessed by calling (855) 859-2056 or (404) 537-3406 and entering 25530442 for the conference ID. A replay of the conference call will also be available online through the Company's website subsequent to the call through February 29, 2016.

ABOUT CARDTRONICS (NASDAQ:CATM)

Making ATM cash access convenient where people shop, work and live, Cardtronics is at the convergence of retailers, financial institutions, prepaid card programs and the customers they share. Cardtronics provides services to approximately 190,000 retail ATMs in North America and Europe. Whether Cardtronics is driving foot traffic for North America and Europe's top retailers, enhancing ATM brand presence for card issuers or expanding card holders' surcharge-free cash access, Cardtronics is convenient access to cash, when and where consumers need it. Cardtronics is where cash meets commerce.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "project," "believe," "estimate," "expect," "future," "anticipate," "intend," "contemplate," "foresee," "would," "could," "plan," and similar references to future periods. Forward-looking statements give the Company's current expectations, beliefs, assumptions or forecasts of future events, future financial performance, strategies, expectations, competitive environment, regulation, and availability of resources. The forward-looking statements contained in this press release include, among other things, statements concerning projections, predictions, expectations, estimates or forecasts as to the Company's business, financial and operational results, future economic performance, statements of management's goals and objectives, and other similar expressions concerning matters that are not historical facts. These statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the following:
  • the Company's financial outlook and the financial outlook of the ATM industry and the continued usage of cash by consumers at rates near historical patterns;
  • the Company's ability to respond to recent and future network and regulatory changes, including forthcoming requirements surrounding Europay, MasterCard, and Visa ("EMV") security standards;
  • the Company's ability to renew its existing customer relationships on comparable economic terms and add new customers;
  • the Company's ability to pursue and successfully integrate acquisitions;
  • changes in interest rates and foreign currency rates;
  • the Company's ability to successfully manage its existing international operations and to continue to expand internationally;
  • the Company's ability to manage concentration risks with key customers, vendors and service providers;
  • the Company's ability to prevent thefts of cash;
  • the Company's ability to manage cybersecurity risks and prevent data breaches;
  • the Company's ability to respond to potential reductions in the amount of net interchange fees that it receives from global and regional debit networks for transactions conducted on its ATMs due to pricing changes implemented by those networks as well as changes in how issuers route their ATM transactions over those networks;
  • the Company's ability to provide new ATM solutions to retailers and financial institutions including placing additional banks' brands on ATMs currently deployed;
  • the Company's ATM vault cash rental needs, including potential liquidity issues with its vault cash providers and its ability to continue to secure vault cash rental agreements in the future;
  • the Company's ability to manage the risks associated with its third-party service providers failing to perform their contractual obligations;
  • the Company's ability to successfully implement and evolve its corporate strategy;
  • the Company's ability to compete successfully with new and existing competitors;
  • the Company's ability to meet the service levels required by its service level agreements with its customers;
  • the additional risks the Company is exposed to in its U.K. armored transport business; and
  • the Company's ability to retain its key employees and maintain good relations with its employees.

Additional information regarding known material factors that could cause the Company's actual performance or results to differ from its projected results are described in its filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. You should not read forward-looking statements as a guarantee of future performance or results. They will not necessarily be accurate indications of the times at or by which such performance or results will be achieved. Forward-looking statements speak only as of the date the statements are made and are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events. The Company assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information.
 
Consolidated Statements of Operations
For the Three and Twelve Months Ended December 31, 2015 and 2014
(In thousands, excluding share and per share amounts)
(Unaudited)
                         
    Three Months Ended   Twelve Months Ended
    December 31,   December 31,
    2015   2014   2015   2014
Revenues:                        
ATM operating revenues   $    291,726     $    260,795     $    1,134,021     $    1,007,765  
ATM product sales and other revenues        11,578          23,078          66,280          47,056  
Total revenues        303,304          283,873          1,200,301          1,054,821  
Cost of revenues:                        
Cost of ATM operating revenues (excludes depreciation, accretion, and amortization of                                        
intangible assets shown separately below.)        183,742          168,905          720,925          659,350  
Cost of ATM product sales and other revenues        11,819          21,262          62,012          44,698  
Total cost of revenues        195,561          190,167          782,937          704,048  
Gross profit        107,743          93,706          417,364          350,773  
Operating expenses:                        
Selling, general, and administrative expenses        39,664          33,334          140,501          113,470  
Acquisition and divestiture-related expenses        5,929          5,022          27,127          18,050  
Depreciation and accretion expense        20,888          18,730          85,030          75,622  
Amortization of intangible assets        9,758          11,121          38,799          35,768  
(Gain) loss on disposal of assets        (1,585 )        1,562          (14,010 )        3,224  
Total operating expenses        74,654          69,769          277,447          246,134  
Income from operations        33,089          23,937          139,917          104,639  
Other expense:                        
Interest expense, net        4,955          4,609          19,451          20,776  
Amortization of deferred financing costs and note discount        2,908          2,694          11,363          13,036  
Redemption costs for early extinguishment of debt        —          —                  9,075  
Other expense (income)        898          1,949          3,780          (1,616 )
Total other expense        8,761          9,252          34,594          41,271  
Income before income taxes        24,328          14,685          105,323          63,368  
Income tax expense        9,505          9,989          39,342          28,174  
Net income        14,823          4,696          65,981          35,194  
Net loss attributable to noncontrolling interests        (18 )        (826 )        (1,099 )        (1,946 )
Net income attributable to controlling interests and available to common stockholders   $    14,841     $    5,522     $    67,080     $    37,140  
                         
Net income per common share - basic   $    0.33     $    0.12     $    1.50     $    0.83  
Net income per common share - diluted   $    0.33     $    0.12     $    1.48     $    0.82  
                         
Weighted average shares outstanding - basic        44,876,922          44,440,227          44,796,701          44,338,408  
Weighted average shares outstanding - diluted        45,496,524          45,025,059          45,368,687          44,867,304  

Condensed Consolidated Balance Sheets
As of December 31, 2015 and December 31, 2014
(In thousands)
             
    December 31, 2015   December 31, 2014
    (Unaudited)      
ASSETS            
Current assets:            
Cash and cash equivalents   $  26,297   $  31,875
Accounts and notes receivable, net      72,009      80,321
Inventory, net      10,675      5,971
Restricted cash      31,565      20,427
Current portion of deferred tax asset, net      16,300      24,303
Prepaid expenses, deferred costs, and other current assets      56,678      34,508
Total current assets      213,524      197,405
Property and equipment, net      375,488      335,795
Intangible assets, net      157,848      177,540
Goodwill      548,936      511,963
Deferred tax asset, net      11,950      10,487
Prepaid expenses, deferred costs, and other noncurrent assets      19,257      22,600
Total assets   $  1,327,003   $  1,255,790
             
LIABILITIES AND STOCKHOLDERS' EQUITY            
Current liabilities:            
Current portion of long-term debt   $  —   $  35
Current portion of other long-term liabilities      32,732      34,937
Accounts payable and other accrued and current liabilities      244,908      215,950
Total current liabilities      277,640      250,922
Long-term liabilities:            
Long-term debt      575,399      612,662
Asset retirement obligations      51,685      52,039
Deferred tax liability, net      21,829      15,916
Other long-term liabilities      30,657      37,716
Total liabilities      957,210      969,255
Stockholders' equity      369,793      286,535
Total liabilities and stockholders' equity   $  1,327,003   $  1,255,790
             

SELECTED INCOME STATEMENT DETAIL:
  Total revenues by segment:                      
       
  Three Months Ended   Twelve Months Ended
  December 31,   December 31,
  2015   2014   2015   2014
  (In thousands)
North America $    215,450     $    203,386     $    838,966     $    773,945  
Europe      90,699          82,149          370,967          287,266  
Eliminations      (2,845 )        (1,662 )        (9,632 )        (6,390 )
Total revenues   $    303,304     $    283,873     $    1,200,301     $    1,054,821  

Breakout of ATM operating revenues:                      
                       
  Three Months Ended   Twelve Months Ended
  December 31,   December 31,
  2015   2014   2015   2014
  (In thousands)
Surcharge revenues $  116,082   $  114,755   $  464,376   $  456,146
Interchange revenues    109,868      88,400      422,831      341,769
Bank-branding and surcharge-free network revenues    45,012      42,196      174,047      156,673
Managed services revenues    8,739      7,768      34,599      24,595
Other revenues    12,025      7,676      38,168      28,582
Total ATM operating revenues $  291,726   $  260,795   $  1,134,021   $  1,007,765

Total cost of revenues by segment:                      
                       
  Three Months Ended   Twelve Months Ended
  December 31,   December 31,
  2015   2014   2015   2014
  (In thousands)
North America $    137,409     $    133,627     $    535,777     $    506,278  
Europe      60,997          58,202          256,792          204,160  
Eliminations      (2,845 )        (1,662 )        (9,632 )        (6,390 )
Total cost of revenues $    195,561     $    190,167     $    782,937     $    704,048  

Breakout of cost of ATM operating revenues (exclusive of depreciation, accretion, and amortization of intangible assets):
                       
  Three Months Ended   Twelve Months Ended
  December 31,   December 31,
  2015   2014   2015   2014
  (In thousands)
Merchant commissions $  87,177   $  78,545   $  343,539   $  316,543
Vault cash rental    17,442      16,771      69,064      62,805
Other costs of cash    17,366      19,510      71,687      83,438
Repairs and maintenance    16,651      18,113      68,903      63,253
Communications    8,015      7,079      30,992      25,998
Transaction processing    3,713      3,856      15,349      14,560
Stock-based compensation    326      369      1,218      1,273
Other expenses    33,052      24,662      120,173      91,480
Total cost of ATM operating revenues $  183,742   $  168,905   $  720,925   $  659,350

Breakout of selling, general, and administrative expenses:
                       
  Three Months Ended   Twelve Months Ended
  December 31,   December 31,
  2015   2014   2015   2014
  (In thousands)
Employee costs $  18,883   $  18,138   $  71,883   $  62,399
Stock-based compensation    4,748      4,648      18,236      15,229
Professional fees    6,768      2,178      17,974      7,312
Other expenses    9,265      8,370      32,408      28,530
Total selling, general, and administrative expenses $  39,664   $  33,334   $  140,501   $  113,470

Depreciation and accretion expense by segment:                      
                       
  Three Months Ended   Twelve Months Ended
  December 31,   December 31,
  2015   2014   2015   2014
  (In thousands)
North America $  12,589   $  12,341   $  51,119   $  48,115
Europe    8,299      6,389      33,911      27,507
Total depreciation and accretion expense $  20,888   $  18,730   $  85,030   $  75,622
                       

SELECTED BALANCE SHEET DETAIL:
Long-term debt:
           
  December 31, 2015   December 31, 2014
  (In thousands)
Revolving credit facility $  90,835   $  137,292
5.125% Senior notes    250,000      250,000
1.00% Convertible senior notes (1)    234,564      225,370
Total long-term debt $  575,399   $  612,662

______________________(1) The total principal amount outstanding for these convertible instruments is $287.5 million, but in accordance with U.S. GAAP the estimated fair value of the conversion feature at issuance was recorded as additional paid-in capital within equity. The convertible senior notes are being accreted over the term of the notes to the full principal amount ($287.5 million).
 
Share count rollforward:
     
Total shares outstanding as of December 31, 2014      44,562,122  
Shares repurchased      (138,037 )
Shares issued - stock options exercised      105,466  
Shares vested - restricted stock units      427,569  
Shares forfeited - restricted stock awards      (3,500 )
Total shares outstanding as of December 31, 2015      44,953,620  
         

SELECTED CASH FLOW DETAIL:
Selected cash flow statement amounts:
                         
    Three Months Ended   Twelve Months Ended
    December 31,   December 31,
    2015   2014   2015   2014
    (In thousands)
Cash provided by operating activities   $    109,442     $    78,292     $    256,553     $    188,553  
Cash used in investing activities        (38,473 )        (263,000 )        (209,562 )        (336,881 )
Cash (used in) provided by financing activities        (61,818 )        80,817          (48,520 )        99,248  
Effect of exchange rate changes on cash        (1,337 )        (5,095 )        (4,049 )        (5,984 )
Net increase (decrease) in cash and cash equivalents        7,814          (108,986 )        (5,578 )        (55,064 )
Cash and cash equivalents as of beginning of period        18,483          140,861          31,875          86,939  
Cash and cash equivalents as of end of period   $    26,297     $    31,875     $    26,297     $    31,875  

Key Operating Metrics - Excluding Acquisitions in All Periods Presented
For Three and Twelve Months Ended December 31, 2015 and 2014
(Unaudited)
 
The following table excludes the effect of acquisitions for the three and twelve months ended December 31, 2015 for comparative purposes:
                           
  EXCLUDING ACQUISITIONS:   Three Months Ended   Twelve Months Ended  
    December 31,   December 31,  
    2015   2014   2015   2014  
Average number of transacting ATMs:                          
United States: Company-owned      38,821      37,989      32,729      32,330  
United Kingdom      13,805      12,610      13,368      12,098  
Mexico      1,417      2,107      1,524      2,153  
Canada      1,875      1,623      1,781      1,650  
Germany and Poland      1,088      898      1,012      878  
Subtotal      57,006      55,227      50,414      49,109  
United States: Merchant-owned (1)      18,757      23,500      18,095      22,590  
Average number of transacting ATMs - ATM operations      75,763      78,727      68,509      71,699  
                           
Managed Services and Processing                          
United States: Managed services - Turnkey      2,202      2,172      2,189      2,149  
United States: Managed services - Processing Plus and Processing operations, net      30,391      29,044      18,493      17,057  
Canada: Managed services      1,318      898      1,089      535  
Average number of transacting ATMs - Managed services and processing      33,911      32,114      21,771      19,741  
                           
Total average number of transacting ATMs      109,674      110,841      90,280      91,440  
                           
Total transactions (in thousands):                          
ATM operations      274,823      273,381      1,046,506      1,040,241  
Managed services and processing, net      34,484      31,267      101,295      87,338  
Total transactions      309,307      304,648      1,147,801      1,127,579  
                           
Cash withdrawal transactions (in thousands):                          
ATM operations      164,669      163,792      631,450      617,419  
                           
Per ATM per month amounts (excludes managed services and processing):                          
Cash withdrawal transactions      724      694      768      718  
                           
ATM operating revenues   $  1,133   $  1,064   $  1,190   $  1,136  
Cost of ATM operating revenues (2)      725      689      763      743  
ATM operating gross profit (2) (3)   $  408   $  375   $  427   $  393  
                           
ATM operating gross profit margin (2) (3)      36.0 %    35.2 %    35.9 %    34.6 %

___________________

(1) Certain ATMs previously reported in this category are now included in the United States: Managed services - Processing Plus and Processing operations, net category below. (2) Amounts presented exclude the effect of depreciation, accretion, and amortization of intangible assets, which is presented separately in the Company's Consolidated Statements of Operations. (3) Revenues and expenses relating to managed services, processing, and ATM equipment sales and other ATM-related services are not included in these calculations.

 
Key Operating Metrics - Including Acquisitions in All Periods Presented
For Three and Twelve Months Ended December 31, 2015 and 2014
(Unaudited)
                           
  INCLUDING ACQUISITIONS:   Three Months Ended   Twelve Months Ended  
    December 31,   December 31,  
    2015   2014   2015   2014  
Average number of transacting ATMs:                          
United States: Company-owned      38,821      37,989      38,440      32,330  
United Kingdom      15,737      12,610      14,991      12,098  
Mexico      1,417      2,107      1,524      2,153  
Canada      1,875      1,623      1,781      1,650  
Germany and Poland      1,088      898      1,012      878  
Subtotal      58,938      55,227      57,748      49,109  
United States: Merchant-owned (1)      18,757      23,500      19,905      22,590  
Average number of transacting ATMs - ATM operations      77,695      78,727      77,653      71,699  
                           
Managed Services and Processing                          
United States: Managed services - Turnkey      2,202      2,172      2,189      2,149  
United States: Managed services - Processing Plus and Processing operations, net (2)      109,018      29,044      69,583      17,057  
Canada: Managed services      1,318      898      1,089      535  
Average number of transacting ATMs - Managed services and processing      112,538      32,114      72,861      19,741  
                           
Total average number of transacting ATMs      190,233      110,841      150,514      91,440  
                           
Total transactions (in thousands):                          
ATM operations      324,705      273,381      1,251,626      1,040,241  
Managed services and processing, net (2)      164,567      31,267      404,268      87,338  
Total transactions      489,272      304,648      1,655,894      1,127,579  
                           
Cash withdrawal transactions (in thousands):                          
ATM operations      195,335      163,792      759,408      617,419  
                           
Per ATM per month amounts (excludes managed services and processing):                          
Cash withdrawal transactions      838      694      815      718  
                           
ATM operating revenues   $  1,183   $  1,064   $  1,161   $  1,136  
Cost of ATM operating revenues (3)      752      689      742      743  
ATM operating gross profit (3) (4)   $  431   $  375   $  419   $  393  
                           
ATM operating gross profit margin (3) (4)      36.4 %    35.2 %    36.1 %    34.6 %

__________________

(1) Certain ATMs previously reported in this category are now included in the United States: Managed services - Processing Plus and Processing operations, net category below. (2) The notable increase in the United States: Managed services - Processing Plus and Processing operations, net category is mostly attributable to the July 1, 2015 acquisition of CDS and the incremental number of transacting ATMs for which CDS provides processing services. (3) Amounts presented exclude the effect of depreciation, accretion, and amortization of intangible assets, which is presented separately in the Company's Consolidated Statements of Operations. (4) Revenues and expenses relating to managed services, processing, and ATM equipment sales and other ATM-related services are not included in this calculation.

 
Key Operating Metrics - Ending Machine Count
As of December 31, 2015 and 2014
(Unaudited)
         
    As of December 31,
    2015   2014
Ending number of transacting ATMs:        
United States: Company-owned    38,893    37,931
United Kingdom    15,735    12,911
Mexico    1,406    2,034
Canada    1,850    1,597
Germany and Poland    1,121    918
Total Company-owned    59,005    55,391
United States: Merchant-owned    18,164    22,826
Ending number of transacting ATMs: ATM operations    77,169    78,217
         
United States: Managed services - Turnkey    2,196    2,170
United States: Managed services - Processing Plus and Processing operations, net    109,021    28,924
Canada: Managed services    1,405    895
Ending number of transacting ATMs: Managed services and processing, net    112,622    31,989
         
Total ending number of transacting ATMs    189,791    110,206

 
Reconciliation of Net Income Attributable to Controlling Interest to EBITDA, Adjusted EBITDA, and Adjusted Net Income
For the Three and Twelve Months Ended December 31, 2015 and 2014
(Unaudited)
                         
    Three Months Ended   Twelve Months Ended
    December 31,   December 31,
    2015   2014   2015   2014
Net income attributable to controlling interests and available to common stockholders   $    14,841     $    5,522     $    67,080     $    37,140  
Adjustments:                        
Interest expense, net        4,955          4,609          19,451          20,776  
Amortization of deferred financing costs and note discount        2,908          2,694          11,363          13,036  
Redemption costs for early extinguishment of debt        —          —                  9,075  
Income tax expense        9,505          9,989          39,342          28,174  
Depreciation and accretion expense        20,888          18,730          85,030          75,622  
Amortization of intangible assets        9,758          11,121          38,799          35,768  
EBITDA    $    62,855     $    52,665     $    261,065     $    219,591  
                         
Add back:                        
(Gain) loss on disposal of assets        (1,585 )        1,562          (14,010 )        3,224  
Other expense (income)        898          1,949          3,780          (1,616 )
Noncontrolling interests (1)        42          (553 )        (996 )        (1,745 )
Stock-based compensation expense (2)        5,062          4,991          19,421          16,432  
Acquisition and divestiture-related expenses (3)        5,929          5,022          27,127          18,050  
Adjusted EBITDA   $    73,201     $    65,636     $    296,387     $    253,936  
Less:                        
Interest expense, net (2)        4,954          4,607          19,447          20,745  
Depreciation and accretion expense (2)        20,840          18,445          84,608          74,314  
Adjusted pre-tax income   $    47,407     $    42,584     $    192,332     $    158,877  
Income tax expense (4)        15,170          13,627          61,546          50,840  
Adjusted Net Income   $    32,237     $    28,957     $    130,786     $    108,037  
                         
Adjusted Net Income per share   $    0.72     $    0.65     $    2.92     $    2.44  
Adjusted Net Income per diluted share   $    0.71     $    0.64     $    2.88     $    2.41  
                         
Weighted average shares outstanding - basic        44,876,922          44,440,227          44,796,701          44,338,408  
Weighted average shares outstanding - diluted        45,496,524          45,025,059          45,368,687          44,867,304  

_______________________

(1) Noncontrolling interests adjustment made such that Adjusted EBITDA includes only the Company's ownership interest in the Adjusted EBITDA of its Mexico subsidiary. In December 2015, the Company increased its ownership interest in its Mexico subsidiary from 51.0% to 95.7%. (2) Amounts exclude a portion of the expenses incurred by the Company's Mexico subsidiary to account for the amounts allocable to the noncontrolling interest stockholders. In December 2015, the Company increased its ownership interest in its Mexico subsidiary. (3) Acquisition and divestiture-related expenses include nonrecurring costs incurred for professional and legal fees and certain transition and integration-related costs, including contract termination and facility exit costs, employee-related severance costs, and related to our recent divestitures, excess operating costs associated with facilities that are in the process of being shut down or transitioned as a result of recent divestitures. (4) Calculated using the Company's estimated long-term, cross-jurisdictional effective cash tax rate of 32.0%.
 
Reconciliation of Free Cash Flow
For the Three and Twelve Months Ended December 31, 2015 and 2014
(Unaudited)
                         
    Three Months Ended   Twelve Months Ended
    December 31,   December 31,
    2015   2014   2015   2014
    (In thousands)
Cash provided by operating activities   $    109,442     $    78,292     $    256,553     $    188,553  
Payments for capital expenditures:                        
Cash used in investing activities, excluding acquisitions and divestitures        (38,473 )        (44,833 )        (142,349 )        (109,909 )
Free cash flow   $    70,969     $    33,459     $    114,204     $    78,644  

 
Reconciliation of Estimated Net Income to EBITDA, Adjusted EBITDA, and Adjusted Net Income
For the Year Ending December 31, 2016
(In millions, excluding share and per share amounts)
(Unaudited)
             
    Estimated Range Full Year 2016
Net Income   $  87.0   $  93.0
Adjustments:            
Interest expense, net      19.0      18.0
Amortization of deferred financing costs and note discount      11.5      11.5
Income tax expense      40.5      43.5
Depreciation and accretion expense      94.0      96.0
Amortization of intangible assets      45.0      45.0
EBITDA   $  297.0   $  307.0
             
Add Back:            
Stock-based compensation expense      18.0      18.0
Adjusted EBITDA   $  315.0   $  325.0
Less:            
Interest expense, net      19.0      18.0
Depreciation and accretion expense      94.0      96.0
Income tax expense (2)      64.6      67.5
Adjusted Net Income   $  137.4   $  143.5
             
Adjusted Net Income per diluted share   $  3.00   $  3.13
             
Weighted average shares outstanding - diluted      45.8      45.8

_______________________

(1) Noncontrolling interests adjustment made such that Adjusted EBITDA includes only the Company's interest of its Mexico subsidiary. In December 2015, the Company increased its ownership interest in its Mexico subsidiary from 51.0% to 95.7%. (2) Calculated using the Company's estimated long-term, cross-jurisdictional effective cash tax rate of 32.0%.
Contact Information:
   
Media Relations Investor Relations
Nick Pappathopoulos Phillip Chin
Director - Public Relations EVP Corporate Development & Investor Relations
832-308-4396 832-308-4975
npappathopoulos@cardtronics.com    ir@cardtronics.com

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