Cardtronics Announces Fourth Quarter and Full-Year 2012 Results

Thu Feb 7, 2013 4:01pm EST

* Reuters is not responsible for the content in this press release.

http://pdf.reuters.com/htmlnews/8knews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20130207:nGNXUXCSGa

HOUSTON, Feb. 7, 2013 (GLOBE NEWSWIRE) -- Cardtronics, Inc. (Nasdaq:CATM) (the "Company"), the
world's largest retail ATM owner, today announced its financial and operational results for the
quarter and year ended December 31, 2012.

Key financial statistics in the fourth quarter of 2012 as compared to the fourth quarter of 2011
include:

* Consolidated revenues of $198.4 million, up 14%, comprised of 11% organic growth and 3% growth
from acquisitions
* Adjusted Net Income per diluted share of $0.41, up 14% from $0.36
* Adjusted EBITDA of $50.1 million, up 20% from $41.9 million
* Gross Margin of 32.5%, up from 32.0%
* Free Cash Flow of $29.9 million compared to $14.1 million
* GAAP net income of $11.2 million or $0.25 per diluted share, compared to $8.2 million or $0.18
per diluted share

"Our adjusted earnings for the quarter were up 14%, driven by strong organic revenue growth of
11%," commented Steve Rathgaber, chief executive officer. "The fourth quarter capped off a really
solid year in which we grew our revenues by 25%, with over half of that growth being organic. Our
business model is evolving as we are increasingly building products and executing strategies that
will drive ATM transaction volume and thereby benefit all of our partners including the retailer
with more sales, the consumer with greater convenience, and the financial institution with
loyalty. Looking to the year ahead, we are well-positioned for another strong organic revenue and
earnings growth year, and we also expect to continue to grow through strategic acquisitions,
although we remain disciplined in our approach to these transactions."

RECENT HIGHLIGHTS

* Further expansion of the Company's Canadian operations through the acquisition of Can-Do-Cash, a
Canadian ATM operator of approximately 800 ATMs, on December 4, 2012.
* Execution of a bank branding agreement with BBVA Compass to brand approximately 300 ATMs located
in several premier retail chains in Colorado and Texas.
* Bank branding of over 800 other new ATM locations during the quarter.
* Net addition of over 1,170 new deployed Company-owned ATMs during the quarter.
* Execution of a contract to place approximately 40 very high-transacting ATMs in some of the
United Kingdom's busiest train stations.

Effects of foreign currency exchange rate movements had an insignificant impact on reported
consolidated revenues, Adjusted EBITDA and Adjusted Net Income per diluted share during the
quarter.

The results of operations include the results of Can-Do-Cash since December 4, 2012, which is the
date that the acquisition closed, which had an immaterial impact on the consolidated results for
both the quarter and the year.

Please 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 and Free Cash Flow. For additional financial information, including reconciliations to
comparable GAAP measures, please refer to the supplemental schedules of selected financial
information at the end of this press release.

FOURTH QUARTER RESULTS

For the fourth quarter of 2012, consolidated revenues totaled $198.4 million, representing a 14%
increase from the $174.2 million in consolidated revenues generated during the fourth quarter of
2011. Organic growth in the quarter accounted for 11% of the growth and was primarily attributable
to the following: (1) increased transactions per ATM in the Company's United States and United
Kingdom operations; (2) unit growth expansion; (3) increased revenues from managed services
agreements; (4) increased bank branding revenues from financial institution partners; and (5)
growth of the Allpoint network. Partially offsetting the increases in organic revenue were a
decline in interchange revenue per transaction as a result of rate reductions by a major interbank
network and transaction volume shifts to networks that pay lower interchange rates, and lower
equipment sales revenues. The remaining 3% of revenue growth was driven by businesses acquired
during the fourth quarter of 2011 and during 2012.

Adjusted EBITDA for the fourth quarter of 2012 totaled $50.1 million, compared to $41.9 million
during the fourth quarter of 2011, and Adjusted Net Income totaled $18.3 million ($0.41 per
diluted share) compared to $15.6 million ($0.36 per diluted share) during the fourth quarter of
2011. The increases in Adjusted EBITDA and Adjusted Net Income per diluted share were positively
affected by the incremental revenues attributable to ATMs acquired during the fourth quarter of
2011 and during 2012, as well as the organic revenue growth described above. Specific costs
excluded from 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 2012 totaled $11.2 million, compared to $8.2 million
during the same quarter in 2011. GAAP Net Income before income taxes increased $4.6 million from
the fourth quarter of 2011 due to the same factors impacting Adjusted EBITDA discussed above.

FULL-YEAR RESULTS

For the year ended December 31, 2012, consolidated revenues totaled $780.4 million, representing a
25% increase from the $624.6 million in consolidated revenues generated during the same period in
2011. Growth from acquisitions accounted for 12% of the increase in consolidated revenues for the
year. Organic growth of 13% was attributable to a combination of increases in transactions per
ATM, unit growth expansion, increased revenues from managed services agreements, higher bank
branding revenues, growth in Allpoint, and higher equipment sales. As was the case with the fourth
quarter results, the increases in organic revenue during the year ended December 31, 2012 were
partially offset by the interchange rate reductions discussed above.

Adjusted EBITDA totaled $189.5 million for the year ended December 31, 2012, representing a 21%
increase over the $156.3 million in Adjusted EBITDA for the same period in 2011. Adjusted Net
Income totaled $70.6 million ($1.61 per diluted share) for 2012, up 21% on a per share basis from
$58.5 million ($1.37 per diluted share) during the same period in 2011. The increases in Adjusted
EBITDA and Adjusted Net Income were primarily due to the same factors noted above for the
Company's fourth quarter results.

GAAP Net Income for the year ended December 31, 2012 totaled $43.6 million, compared to $70.2
million during 2011. The year-over-year decrease in GAAP Net Income is primarily attributable to a
non-recurring $37.0 million income tax benefit recorded in the third quarter of 2011. GAAP Income
before income taxes for the year ended December 31, 2012 was up 23% over 2011.

2013 GUIDANCE

Below is the Company's financial guidance for the year ending December 31, 2013:

* Revenues of $835.0 million to $850.0 million;
* Overall gross margins of approximately 32.0% to 32.3%;
* Adjusted EBITDA of $202.0 million to $209.0 million;
* Depreciation and accretion expense of approximately $64.0 million to $65.5 million, net of
noncontrolling interests;
* Cash interest expense of approximately $20.0 million to $20.5 million, net of noncontrolling
interests;
* Adjusted Net Income of $1.72 to $1.79 per diluted share, based on approximately 44.7 million
weighted average diluted shares outstanding; and
* Capital expenditures of approximately $70.0 million, net of noncontrolling interests.

For reconciliations of Adjusted EBITDA and Adjusted Net Income per diluted share, please refer to
the supplemental schedules at the end of this release.

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 of $1.60 U.S. to £1.00 U.K., $13.00
Mexican pesos to $1.00 U.S., and $1.00 Canadian dollar to $1.00 U.S.

LIQUIDITY

The Company believes that it continues to maintain a strong liquidity position, with $96.0 million
in available borrowing capacity under its $250.0 million revolving credit facility as of December
31, 2012. In addition, the size of the amended credit facility can be increased to $325.0 million
under certain conditions. The Company's outstanding indebtedness as of December 31, 2012 consisted
of $200.0 million in senior subordinated notes due 2018, $152.0 million in borrowings under its
revolving credit facility due 2016, and $2.8 million in equipment financing notes associated with
its majority-owned Mexico subsidiary.

DISCLOSURE OF NON-GAAP FINANCIAL INFORMATION 

Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income per diluted share and Free Cash Flow are
non-GAAP financial measures provided as a complement to results prepared in accordance with
accounting principles generally accepted within the United States of America ("GAAP") and may not
be comparable to similarly-titled measures reported by other companies. Management believes that
the presentation of these measures and the identification of unusual, non-recurring, 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 expense 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 acquisition-related costs, certain other non-operating
costs, loss on asset disposal, the Company's obligations for the payment of income taxes, interest
expense or other obligations such as capital expenditures, and an adjustment for noncontrolling
interest. Adjusted Net Income represents net income computed in accordance with GAAP, before
amortization expense, loss on disposal of assets, stock-based compensation expense and certain
other expense (income) and acquisition-related costs, and using an assumed 35% tax rate, with
certain adjustments for noncontrolling interests. Adjusted Net Income per diluted share is
calculated by dividing Adjusted Net Income by average weighted diluted shares outstanding
calculated in accordance with GAAP. 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 measure of Free Cash Flow 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.

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 GAAP.
Reconciliations of the non-GAAP financial measures used herein to the most directly comparable
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 7, 2013, at 4:00 p.m. Central
Time (5:00 p.m. Eastern Time) to discuss its financial results for the quarter and the year ended
December 31, 2012. 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
http://www.globenewswire.com/newsroom/ctr?d=10020849&l=28&a=www.cardtronics.com&u=http%3A%2F%2Fwww.cardtronics.com%2F
.

A digital replay of the conference call will be available through Thursday, February 21, 2013, and
can be accessed by calling (855) 859-2056 or (404) 537-3406 and entering 86036091 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 March 8, 2013.

ABOUT CARDTRONICS
http://www.globenewswire.com/newsroom/ctr?d=10020849&l=30&a=CARDTRONICS&u=http%3A%2F%2Fwww.cardtronics.com%2F
 (Nasdaq:CATM)

Making ATM cash access convenient where people shop, work and live their lives, Cardtronics is at
the convergence of retailers, financial institutions, prepaid card programs and the customers they
share. Cardtronics owns/operates approximately 62,800 retail ATMs in U.S. and international
http://www.globenewswire.com/newsroom/ctr?d=10020849&l=31&a=international&u=http%3A%2F%2Fwww.cardtronics.com%2Fabout%2Finternational.asp
 locales. Whether Cardtronics is driving foot traffic for America's most relevant retailers
http://www.globenewswire.com/newsroom/ctr?d=10020849&l=31&a=relevant%20retailers&u=http%3A%2F%2Fwww.cardtronics.com%2Fabout%2Ftop-customers.asp
, enhancing ATM brand
http://www.globenewswire.com/newsroom/ctr?d=10020849&l=31&a=ATM%20brand&u=http%3A%2F%2Fwww.cardtronics.com%2Ffinancial%2Ffinancial-atm-branding-program.asp
 presence for card issuers
http://www.globenewswire.com/newsroom/ctr?d=10020849&l=31&a=card%20issuers&u=http%3A%2F%2Fwww.cardtronics.com%2Fabout%2Ftop-customers.asp
 or expanding card holders' surcharge-free
http://www.globenewswire.com/newsroom/ctr?d=10020849&l=31&a=surcharge-free&u=http%3A%2F%2Fwww.allpointnetwork.com%2Fdefault.aspx
 cash access on the local, national or global scene, Cardtronics is convenient access to cash,
when and where consumers need it. Cardtronics is where cash meets commerce.

The Cardtronics logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=991
http://www.globenewswire.com/newsroom/ctr?d=10020849&l=32&u=http%3A%2F%2Fwww.globenewswire.com%2Fnewsroom%2Fprs%2F%3Fpkgid%3D991


CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS 

This press release contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements give the Company's current
expectations or forecasts of future events, future financial performance, strategies,
expectations, competitive environment, regulation, and availability of resources. The
forward-looking statements contained in this release include, among other things, statements
concerning projections, predictions, expectations, estimates or forecasts as to the Company's
business, financial and operational results and future economic performance, and 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;
* the Company's ability to respond to recent and future regulatory changes;
* 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;
* the Company's ATM vault cash rental needs, including potential liquidity issues with its vault
cash providers;
* the continued implementation of the Company's corporate strategy;
* the Company's ability to compete successfully with new and existing competitors;
* the Company's ability to renew and strengthen its existing customer relationships and add new
customers;
* the Company's ability to meet the service levels required by its service level agreements with
its customers;
* the Company's ability to pursue and successfully integrate acquisitions;
* the Company's ability to successfully manage its existing international operations and to
continue to expand internationally;
* the Company's ability to prevent security breaches;
* 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 manage concentration risks with key customers, vendors and service
providers;
* changes in interest rates and foreign currency rates;
* 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.

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, 2012 and 2011                                                                                                                
 (Unaudited)                                                                                                                                                                     
                                                                                                                                                                             
                                                                                                             Three Months Ended               Twelve Months Ended              
                                                                                                             December 31,                     December 31,                     
                                                                                                             2012            2011            2012            2011            
                                                                                                             (In thousands, except share and per share information)             
 Revenues:                                                                                                                                                                   
 ATM operating revenues                                                                                      $ 192,813       $ 165,055       $ 743,662       $ 597,219       
 ATM product sales and other revenues                                                                        5,547           9,127           36,787          27,357          
 Total revenues                                                                                              198,360         174,182         780,449         624,576         
 Cost of revenues:                                                                                                                                                           
 Cost of ATM operating revenues (excludes depreciation, accretion, and amortization shown separately below)  128,370         110,717         502,682         396,347         
 Cost of ATM product sales and other revenues                                                                5,480           7,706           33,405          23,768          
 Total cost of revenues                                                                                      133,850         118,423         536,087         420,115         
 Gross profit                                                                                                64,510          55,759          244,362         204,461         
 Operating expenses:                                                                                                                                                         
 Selling, general, and administrative expenses                                                               17,569          15,881          65,525          55,582          
 Acquisition-related expenses                                                                                1,474           3,448           3,332           4,747           
 Depreciation and accretion expense                                                                          17,256          12,958          61,499          47,962          
 Amortization expense                                                                                        5,260           5,674           21,712          17,914          
 Loss on disposal of assets                                                                                  1,003           701             1,787           981             
 Total operating expenses                                                                                    42,562          38,662          153,855         127,186         
 Income from operations                                                                                      21,948          17,097          90,507          77,275          
 Other expense (income):                                                                                                                                                     
 Interest expense, net                                                                                       5,195           5,306           21,161          20,116          
 Amortization of deferred financing costs                                                                    227             218             896             993             
 Other income                                                                                                (733)           (1,062)         (1,821)         (804)           
 Total other expense                                                                                         4,689           4,462           20,236          20,305          
 Income before income taxes                                                                                  17,259          12,635          70,271          56,970          
 Income tax expense (benefit)                                                                                6,325           4,589           27,009          (13,176)        
 Net income                                                                                                  10,934          8,046           43,262          70,146          
 Net loss attributable to noncontrolling interests                                                           (267)           (107)           (329)           (87)            
 Net income attributable to controlling interests and available to common stockholders                       $ 11,201        $ 8,153         $ 43,591        $ 70,233        
                                                                                                                                                                             
 Net income per common share - basic                                                                         $ 0.25          $ 0.18          $ 0.97          $ 1.60          
 Net income per common share - diluted                                                                       $ 0.25          $ 0.18          $ 0.96          $ 1.58          
                                                                                                                                                                             
 Weighted average shares outstanding - basic                                                                 43,873,526      42,794,563      43,469,175      42,201,491      
 Weighted average shares outstanding - diluted                                                               44,153,157      43,352,237      43,875,332      42,886,780      


                                                                                                     
 Condensed Consolidated Balance Sheets                                                               
 As of December 31, 2012 and 2011                                                                    
                                                                                                   
                                                             December 31, 2012  December 31, 2011  
                                                                                                   
                                                             (In thousands)                         
 Assets                                                                                            
 Current assets:                                                                                   
 Cash and cash equivalents                                   $ 13,861           $ 5,576            
 Accounts and notes receivable, net                          45,135             40,867             
 Inventory                                                   4,389              3,517              
 Restricted cash, short-term                                 8,298              4,512              
 Current portion of deferred tax asset, net                  13,193             26,902             
 Prepaid expenses, deferred costs, and other current assets  30,980             13,056             
 Total current assets                                        115,856            94,430             
 Property and equipment, net                                 236,238            191,331            
 Intangible assets, net                                      102,573            111,603            
 Goodwill                                                    285,696            271,562            
 Deferred tax asset, net                                     32,108             23,101             
 Prepaid expenses, deferred costs, and other assets          2,168              20,774             
 Total assets                                                $ 774,639          $ 712,801          
                                                                                                   
 Liabilities and Stockholders' Equity                                                              
 Current liabilities:                                                                              
 Current portion of long-term debt and notes payable         $ 1,467            $ 2,317            
 Current portion of other long-term liabilities              24,386             25,101             
 Accounts payable and other accrued and current liabilities  102,991            112,212            
 Total current liabilities                                   128,844            139,630            
 Long-term liabilities:                                                                            
 Long-term debt                                              353,352            368,632            
 Asset retirement obligations                                44,696             34,517             
 Other long-term liabilities                                 98,943             56,877             
 Total liabilities                                           625,835            599,656            
 Stockholders' equity                                        148,804            113,145            
 Total liabilities and stockholders' equity                  $ 774,639          $ 712,801          


                                                                                                      
 SELECTED INCOME STATEMENT DETAIL:                                                                                
                                                                                                      
 Total revenues by segment:                                                                           
                                                                                                      
                                                    Three Months Ended       Twelve Months Ended        
                                                    December 31,             December 31,               
                                                    2012        2011        2012         2011         
                                                    (In thousands)                                       
                                                                                                      
 United States                                      $ 154,603   $ 142,438   $ 626,152    $ 501,328    
 United Kingdom                                     33,395      25,536      117,814      97,665       
 Other International                                10,362      6,208       36,483       25,583       
 Total revenues                                     $ 198,360   $ 174,182   $ 780,449    $ 624,576    
                                                                                                      
 Breakout of ATM operating revenues:                                                                  
                                                                                                      
                                                    Three Months Ended       Twelve Months Ended        
                                                    December 31,             December 31,               
                                                    2012        2011        2012         2011         
                                                    (In thousands)                                       
                                                                                                      
 Surcharge revenues                                 $ 88,408    $ 78,561    $ 351,059    $ 290,501    
 Interchange revenues                               63,750      54,180      241,641      189,587      
 Bank branding and surcharge-free network revenues  32,571      25,497      119,490      93,449       
 Managed services revenues                          4,269       3,201       16,269       10,476       
 Other revenues                                     3,815       3,616       15,203       13,206       
 Total ATM operating revenues                       $ 192,813   $ 165,055   $ 743,662    $ 597,219    
                                                                                                      
 Total cost of revenues by segment:                                                                   
                                                                                                      
                                                    Three Months Ended       Twelve Months Ended        
                                                    December 31,             December 31,               
                                                    2012        2011        2012         2011         
                                                    (In thousands)                                       
                                                                                                      
 United States                                      $ 99,222    $ 93,360    $ 414,148    $ 325,394    
 United Kingdom                                     26,202      20,152      93,030       75,109       
 Other International                                8,426       4,911       28,909       19,612       
 Total cost of revenues                             $ 133,850   $ 118,423   $ 536,087    $ 420,115    


$ 420,115

                                                                                                                                                    
 Breakout of cost of ATM operating revenues (exclusive of depreciation, accretion, and amortization):                                                     
                                                                                                                                                  
                                                      Three Months Ended                             Twelve Months Ended                            
                                                      December 31,                                   December 31,                                   
                                                      2012                   2011                   2012                   2011                   
                                                      (In thousands)                                                                                 
                                                                                                                                                  
 Merchant commissions                                 $ 61,701               $ 52,230               $242,569               $186,043               
 Vault cash rental expense                            12,378                 11,624                 49,258                 40,818                 
 Other costs of cash                                  18,077                 15,814                 68,406                 55,159                 
 Repairs and maintenance                              12,214                 11,815                 51,977                 41,474                 
 Communications                                       5,510                  4,835                  21,313                 17,563                 
 Transaction processing                               1,943                  1,466                  8,088                  4,833                  
 Stock-based compensation                             176                    134                    930                    903                    
 Other expenses                                       16,371                 12,799                 60,141                 49,554                 
 Total cost of ATM operating revenues                 $128,370               $ 110,717              $502,682               $396,347               
                                                                                                                                                  
 Breakout of selling, general, and administrative expenses:                                                                                                   
                                                                                                                                                  
                                                      Three Months Ended                             Twelve Months Ended                            
                                                      December 31,                                   December 31,                                   
                                                      2012                   2011                   2012                   2011                   
                                                      (In thousands)                                                                                 
                                                                                                                                                  
 Employee costs                                       $ 9,470                $ 7,585                $ 33,927               $ 27,971               
 Stock-based compensation                             2,243                  2,194                  10,180                 8,421                  
 Professional fees                                    1,734                  2,405                  7,255                  7,348                  
 Other                                                4,122                  3,697                  14,163                 11,842                 
 Total selling, general, and administrative expenses  $ 17,569               $ 15,881               $ 65,525               $ 55,582               
                                                                                                                                                  
 Depreciation and accretion expense by segment:                                                                                                               
                                                                                                                                                  
                                                      Three Months Ended                             Twelve Months Ended                            
                                                      December 31,                                   December 31,                                   
                                                      2012                   2011                   2012                   2011                   
                                                      (In thousands)                                                                                 
                                                                                                                                                  
 United States                                        $ 10,371               $ 7,906                $ 37,837               $ 28,698               
 United Kingdom                                       5,754                  4,334                  19,894                 16,194                 
 Other International                                  1,131                  718                    3,768                  3,070                  
 Total depreciation and accretion expense             $ 17,256               $ 12,958               $ 61,499               $ 47,962               


                                                                                                                            
 SELECTED BALANCE SHEET DETAIL:                                                                                                   
                                                                                                                            
 Long-term debt:                                                                                                            
                                                                                                                            
                                                                                      December 31, 2012  December 31, 2011  
                                                                                      (In thousands)                         
 8.25% senior subordinated notes                                                      $ 200,000          $ 200,000          
 Revolving credit facility                                                            152,000            166,000            
 Equipment financing notes                                                            2,819              4,949              
 Total long-term debt                                                                 $ 354,819          $ 370,949          
                                                                                                                            
                                                                                                                            
 Share count rollforward:                                                                                                   
                                                                                                                            
 Total shares outstanding as of December 31, 2011                                                        43,999,443         
 Shares repurchased                                                                                      (176,255)          
 Shares issued - restricted stock grants and conversions and stock options exercised                     821,386            
 Shares vested - restricted stock units                                                                  2,500              
 Shares forfeited - restricted stock                                                                     (5,850)            
 Total shares outstanding as of December 31, 2012                                                        44,641,224         


44,641,224

                                                                                                     
 SELECTED CASH FLOW DETAIL:                                                                                      
                                                                                                     
 Selected cash flow statement amounts:                                                                           
                                                                                                     
                                                   Three Months Ended       Twelve Months Ended        
                                                   December 31,             December 31,               
                                                   2012        2011        2012         2011         
                                                   (In thousands)                                       
                                                                                                     
 Cash provided by operating activities             $ 42,063    $ 43,973    $136,388     $113,325     
 Cash used in investing activities                 (15,287)    (53,767)    (113,764)    (234,454)    
 Cash (used in) provided by financing activities   (24,092)    10,161      (14,084)     123,532      
 Effect of exchange rate changes on cash           80          3           (255)        (16)         
 Net increase in cash and cash equivalents         2,764       370         8,285        2,387        
 Cash and cash equivalents at beginning of period  11,097      5,206       5,576        3,189        
 Cash and cash equivalents at end of period        $ 13,861    $ 5,576     $ 13,861     $ 5,576      


$ 5,576

                                                                                                               
 Key Operating Metrics - Excluding Acquisitions in All Periods Presented                                       
 For the Three and Twelve Months Ended December 31, 2012 and 2011                                              
 (Unaudited)                                                                                                   
                                                                                                           
 The following table excludes the effects of the acquisitions in the three and twelve month periods ended December 31, 2012 for comparative purposes: 
                                                                                                           
 EXCLUDING ACQUISITIONS                                  Three Months Ended       Twelve Months Ended        
                                                         December 31,             December 31,               
                                                         2012        2011        2012         2011         
 Average number of transacting ATMs:                                                                       
 United States: Company-owned                            26,765      24,161      22,949       21,125       
 United Kingdom                                          4,298       3,467       3,999        3,255        
 Mexico                                                  2,745       2,874       2,797        2,897        
 Canada                                                  854         342         338          105          
 Subtotal                                                34,662      30,844      30,083       27,382       
 United States: Merchant-owned                           11,856      13,789      8,482        9,934        
 Average number of transacting ATMs: ATM operations      46,518      44,633      38,565       37,316       
                                                                                                           
 United States: Managed services (1)                     5,744       4,731       5,257        4,319        
 United Kingdom: Managed services                        21          21          21           18           
 Canada: Managed services                                -           -           -            -            
 Average number of transacting ATMs: Managed services    5,765       4,752       5,278        4,337        
                                                                                                           
 Total average number of transacting ATMs                52,283      49,385      43,843       41,653       
                                                                                                           
 Total transactions (in thousands):                                                                        
 ATM operations                                          184,253     149,837     640,391      516,564      
 Managed services                                        9,797       7,173       36,722       26,107       
 Total transactions                                      194,050     157,010     677,113      542,671      
                                                                                                           
 Total cash withdrawal transactions (in thousands):                                                        
 ATM operations                                          112,175     93,413      396,178      318,615      
 Managed services                                        6,142       4,600       22,971       17,241       
 Total cash withdrawal transactions                      118,317     98,013      419,149      335,856      
                                                                                                           
 Per ATM per month amounts (excludes managed services):                                                    
 Cash withdrawal transactions                            804         698         856          712          
                                                                                                           
 ATM operating revenues                                  $ 1,313     $ 1,209     $ 1,410      $ 1,310      
 Cost of ATM operating revenues (2)                      871         808         937          866          
 ATM operating gross profit  (2) (3)                     $ 442       $ 401       $ 473        $ 444        
                                                                                                           
 ATM operating gross margin  (2) (3)                     33.7 %      33.2 %      33.5 %       33.9 %       
 ___________________                                                                                       
                                                                                                           
 (1)  Includes 2,752 and 2,564 ATMs for the three months ended December 31, 2012 and 2011, respectively, and 2,679 and 2,523 ATMs for the twelve months ended December 31, 2012 and 2011, respectively, for which the Company only provided EFT transaction processing services. 
 (2)  Amounts presented exclude the effect of depreciation, accretion, and amortization expense, which is presented separately in the Company's consolidated statements of operations. 
 (3)  ATM operating gross profit and ATM operating gross profit margin are measures of profitability that are calculated based on only the revenues and expenses that relate to operating ATMs in the Company's portfolio. Revenues and expenses relating to managed services and ATM equipment sales and other ATM-related services are not included. 


(2)  Amounts presented exclude the effect of depreciation, accretion, and amortization expense,
which is presented separately in the Company's consolidated statements of operations.

(3)  ATM operating gross profit and ATM operating gross profit margin are measures of
profitability that are calculated based on only the revenues and expenses that relate to operating
ATMs in the Company's portfolio. Revenues and expenses relating to managed services and ATM
equipment sales and other ATM-related services are not included.

                                                                                                                
 Key Operating Metrics - Including Acquisitions in All Periods Presented                                        
 For the Three and Twelve Months Ended December 31, 2012 and 2011                                               
 (Unaudited)                                                                                                    
                                                                                                            
 INCLUDING ACQUISITIONS                                   Three Months Ended       Twelve Months Ended        
                                                          December 31,             December 31,               
                                                          2012        2011        2012         2011         
 Average number of transacting ATMs:                                                                        
 United States: Company-owned                             27,177      24,161      26,049       21,125       
 United Kingdom                                           4,298       3,467       3,999        3,255        
 Mexico                                                   2,745       2,874       2,797        2,897        
 Canada                                                   1,214       342         851          105          
 Subtotal                                                 35,434      30,844      33,696       27,382       
 United States: Merchant-owned                            20,554      13,789      17,773       9,934        
 Average number of transacting ATMs: ATM operations       55,988      44,633      51,469       37,316       
                                                                                                            
 United States: Managed services                          6,023       4,731       5,928        4,319        
 United Kingdom: Managed services                         21          21          21           18           
 Canada: Managed services                                 98          -           25           -            
 Average number of transacting ATMs: Managed services(1)  6,142       4,752       5,974        4,337        
                                                                                                            
 Total average number of transacting ATMs                 62,130      49,385      57,443       41,653       
                                                                                                            
 Total transactions (in thousands):                                                                         
 ATM operations                                           190,895     149,837     704,879      516,564      
 Managed services                                         10,166      7,173       39,786       26,107       
 Total transactions                                       201,061     157,010     744,665      542,671      
                                                                                                            
 Total cash withdrawal transactions (in thousands):                                                         
 ATM operations                                           117,038     93,413      443,381      318,615      
 Managed services                                         6,426       4,600       25,217       17,241       
 Total cash withdrawal transactions                       123,464     98,013      468,598      335,856      
                                                                                                            
 Per ATM per month amounts (excludes managed services):                                                     
 Cash withdrawal transactions                             696         698         718          712          
                                                                                                            
 ATM operating revenues                                   $ 1,121     $ 1,209     $ 1,177      $ 1,310      
 Cost of ATM operating revenues (2)                       742         808         792          866          
 ATM operating gross profit  (2) (3)                      $ 379       $ 401       $ 385        $ 444        
                                                                                                            
 ATM operating gross margin  (2) (3)                      33.8 %      33.2 %      32.7 %       33.9 %       
 ___________________                                                                                        
                                                                                                            
 (1)  Includes 2,850 and 2,564 ATMs for the three months ended December 31, 2012 and 2011, respectively, and 2,704 and 2,523 ATMs for the twelve months ended December 31, 2012 and 2011, respectively, for which the Company only provided EFT transaction processing services. 
 (2)  Amounts presented exclude the effect of depreciation, accretion, and amortization expense, which is presented separately in the Company's consolidated statements of operations. 
 (3)  ATM operating gross profit and ATM operating gross profit margin are measures of profitability that are calculated based on only the revenues and expenses that relate to operating ATMs in the Company's portfolio. Revenues and expenses relating to managed services and ATM equipment sales and other ATM-related services are not included. 


(3)  ATM operating gross profit and ATM operating gross profit margin are measures of
profitability that are calculated based on only the revenues and expenses that relate to operating
ATMs in the Company's portfolio. Revenues and expenses relating to managed services and ATM
equipment sales and other ATM-related services are not included.

                                                                                   
 Key Operating Metrics - Ending Machine Count                                      
 As of December 31, 2012 and 2011                                                  
 (Unaudited)                                                                       
                                                                                 
                                                         As of December 31,       
 Ending number of transacting ATMs:                      2012        2011        
 United States: Company-owned                            27,573      24,590      
 United Kingdom                                          4,307       3,505       
 Mexico                                                  2,729       2,847       
 Canada                                                  1,549       512         
 Subtotal                                                36,158      31,454      
 United States: Merchant-owned                           20,237      16,651      
 Ending number of transacting ATMs: ATM operations       56,395      48,105      
                                                                                 
 United States: Managed services                         6,050       4,759       
 United Kingdom: Managed services                        21          22          
 Canada: Managed services                                294         -           
 Ending number of transacting ATMs: Managed services(1)  6,365       4,781       
                                                                                 
 Total ending number of transacting ATMs                 62,760      52,886      
 ___________________                                                             
                                                                                 
 (1)  Includes 3,052 and 2,590 ATMs as of December 31, 2012 and 2011, respectively for which the Company only provided EFT transaction processing services. Also includes 817 ATMs that as of December 31, 2011, were reported in the United States Merchant-owned category. 


                                                                                                                                                                                                                                             
 Reconciliation of Net Income Attributable to Controlling Interests to EBITDA, Adjusted EBITDA, and Adjusted Net Income                                                                                                                      
 For the Three and Twelve Months Ended December 31, 2012 and 2011                                                                                                                                                                            
 (Unaudited)                                                                                                                                                                                                                                 
                                                                                                                                                                                                                                         
                                                                         Three Months Ended                                                               Twelve Months Ended                                                              
                                                                         December 31,                                                                     December 31,                                                                     
                                                                         2012                                    2011                                    2012                                    2011                                    
                                                                         (In thousands, except share and per share amounts)                                                                                                                 
 Net income attributable to controlling interests                        $ 11,201                                $ 8,153                                 $ 43,591                                $ 70,233                                
 Adjustments:                                                                                                                                                                                                                            
 Interest expense, net                                                   5,195                                   5,306                                   21,161                                  20,116                                  
 Amortization of deferred financing costs                                227                                     218                                     896                                     993                                     
 Income tax expense (benefit)                                            6,325                                   4,589                                   27,009                                  (13,176)                                
 Depreciation and accretion expense                                      17,256                                  12,958                                  61,499                                  47,962                                  
 Amortization expense                                                    5,260                                   5,674                                   21,712                                  17,914                                  
 EBITDA                                                                  $ 45,464                                $ 36,898                                $ 175,868                               $ 144,042                               
                                                                                                                                                                                                                                         
 Add back:                                                                                                                                                                                                                               
 Loss on disposal of assets                                              1,003                                   701                                     1,787                                   981                                     
 Other income (1)                                                        (732)                                   (1,070)                                 (1,830)                                 (849)                                   
 Noncontrolling interests (2)                                            (451)                                   (431)                                   (1,668)                                 (1,897)                                 
 Stock-based compensation expense (3)                                    2,408                                   2,315                                   11,072                                  9,283                                   
 Acquisition-related costs (4)                                           1,474                                   3,448                                   3,332                                   4,747                                   
 Other adjustments to selling, general, and administrative expenses (5)  972                                     -                                       972                                     -                                       
 Adjusted EBITDA                                                         $ 50,138                                $ 41,861                                $ 189,533                               $ 156,307                               
 Less:                                                                                                                                                                                                                                   
 Interest expense, net (3)                                               5,161                                   5,243                                   20,990                                  19,771                                  
 Depreciation and accretion expense (3)                                  16,857                                  12,613                                  59,983                                  46,465                                  
 Adjusted pre-tax income                                                 28,120                                  24,005                                  108,560                                 90,071                                  
 Income tax expense (at 35%) (6)                                         9,842                                   8,402                                   37,996                                  31,525                                  
 Adjusted Net Income                                                     $ 18,278                                $ 15,603                                $ 70,564                                $ 58,546                                
                                                                                                                                                                                                                                         
 Adjusted Net Income per share                                           $ 0.42                                  $ 0.36                                  $ 1.62                                  $ 1.39                                  
 Adjusted Net Income per diluted share                                   $ 0.41                                  $ 0.36                                  $ 1.61                                  $ 1.37                                  
                                                                                                                                                                                                                                         
 Weighted average shares outstanding - basic                             43,873,526                              42,794,563                              43,469,175                              42,201,491                              
 Weighted average shares outstanding - diluted                           44,153,157                              43,352,237                              43,875,332                              42,886,780                              
                                                                                                                                                                                                                                         
 _______________                                                                                                                                                                                                                         
                                                                                                                                                                                                                                         
 (1)  Amounts exclude unrealized and realized (gains) losses related to derivatives not designated as hedging instruments.                                                                                                                   
 (2)  Noncontrolling interests adjustment made such that Adjusted EBITDA includes only the Company's 51% ownership interest in the Adjusted EBITDA of its Mexico subsidiary.                                                                 
 (3)  Amounts exclude 49% of the expenses incurred by the Company's Mexico subsidiary as such amounts are allocable to the noncontrolling interest stockholders.                                                                             
 (4)  Acquisition-related costs include non-recurring costs incurred for professional and legal fees and certain transition and integration-related costs, related to recent acquisitions.                                                   
 (5)  Amount related to severance costs associated with the departure of the Company's former U.K. Managing Director in November 2012.                                                                                                       
 (6)  35% represents the Company's estimated long-term, cross-jurisdictional effective cash tax rate.                                                                                                                                            


                                                                                                                  
 Reconciliation of Free Cash Flows                                                                                
 For the Three and Twelve Months Ended December 31, 2012 and 2011                                                 
 (Unaudited)                                                                                                      
                                                                                                              
                                                            Three Months Ended       Twelve Months Ended        
                                                            December 31,             December 31,               
                                                            2012        2011        2012         2011         
                                                            (In thousands)                                       
 Cash provided by operating activities                      $ 42,063    $ 43,973    $136,388     $113,325     
 Payments for capital expenditures:                                                                           
 Cash used in investing activities, excluding acquisitions  (12,211)    (29,827)    (92,803)     (66,886)     
 Free cash flow                                             $ 29,852    $ 14,146    $ 43,585     $ 46,439     


                                                                                                                                      
 Reconciliation of Estimated Net Income to EBITDA, Adjusted EBITDA, and Adjusted Net Income                                           
 For the Year Ending December 31, 2013                                                                                                
 (Unaudited)                                                                                                                          
                                                                                                                                   
                                                     Estimated Range                                                                 
                                                     Full Year 2013                                                                  
                                                                                                                                   
                                                     (In millions, except per share                                                  
                                                     information)                                                                    
                                                                                                                                   
 Net income                                          $ 49.4                                              --           $ 51.8       
 Adjustments:                                                                                                                      
 Interest expense, net                               20.2                                                --           20.7         
 Amortization of deferred financing costs            0.9                                                 --           0.9          
 Income tax expense                                  30.3                                                --           31.8         
 Depreciation and accretion expense                  65.5                                                --           67.0         
 Amortization expense                                23.0                                                --           23.0         
 EBITDA                                              $ 189.3                                             --           $ 195.2      
                                                                                                                                   
 Add back:                                                                                                                         
 Noncontrolling interests                            (1.8)                                               --           (1.7)        
 Loss on disposal of assets                          1.0                                                 --           1.0          
 Stock-based compensation expense                    11.5                                                --           12.5         
 Acquisition-related costs                           2.0                                                 --           2.0          
 Adjusted EBITDA                                     $ 202.0                                             --           $ 209.0      
 Less:                                                                                                                             
 Interest expense, net (1)                           20.0                                                --           20.5         
 Depreciation and accretion expense (1)              64.0                                                --           65.5         
 Income tax expense (at 35%) (2)                     41.3                                                --           43.0         
 Adjusted Net Income                                 $ 76.7                                              --           $ 80.0       
                                                                                                                                   
 Adjusted Net Income per diluted share               $1.72                                               --           $1.79        
                                                                                                                                   
 Weighted average shares outstanding - diluted       44.7                                                --           44.7         
 __________________                                                                                                                
                                                                                                                                   
 (1)Amounts exclude 49% of the expenses to be incurred by the Company's Mexico subsidiary as such amounts are allocable to the noncontrolling interest shareholders. 
 (2) 35% represents the Company's estimated long-term, cross-jurisdictional effective cash tax rate.                                


 Contact Information:                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                         
 Cardtronics - Media                                                                                                                                                           Cardtronics - Investors                                                                                                                                   
 Nick Pappathopoulos                                                                                                                                                           Chris Brewster                                                                                                                                            
 Director - Public Relations                                                                                                                                                   Chief Financial Officer                                                                                                                                   
 832-308-4396                                                                                                                                                                  832-308-4128                                                                                                                                              
 npappathopoulos@cardtronics.com http://www.globenewswire.com/newsroom/ctr?d=10020849&l=35&a=npappathopoulos%40cardtronics.com&u=mailto%3Anpappathopoulos%40cardtronics.com    cbrewster@cardtronics.com http://www.globenewswire.com/newsroom/ctr?d=10020849&l=35&a=cbrewster%40cardtronics.com&u=mailto%3Acbrewster%40cardtronics.com  


cbrewster@cardtronics.com
http://www.globenewswire.com/newsroom/ctr?d=10020849&l=35&a=cbrewster%40cardtronics.com&u=mailto%3Acbrewster%40cardtronics.com

Cardtronics and Allpoint are registered trademarks of Cardtronics, Inc.

All other trademarks are the property of their respective owners.