Global Axcess Corp Announces Third Quarter 2009 Financial Results

- Net Income Increased 72% to $476,000 with EPS of $0.02 for Third Quarter
2009 -

JACKSONVILLE, Fla., Nov. 3 /PRNewswire-FirstCall/ -- Global Axcess Corp (OTC
Bulletin Board: GAXC; the "Company"), an independent provider of self-service
kiosk solutions, today announced the financial results for the third quarter
and nine months ended September 30, 2009.

Financial Highlights for the Quarter Ended September 30, 2009
-- Gross margin increased to 47.5% from 43.4% in the same period last
year.
-- Income from continuing operations increased 17% to $623,300 from
$532,700 in the same period last year.
-- Interest expense decreased 42.4% to $147,300 from $255,900 in the same
period last year primarily due to a decrease in debt balances and
refinancing the debt to a lower interest rate.

-- Net income increased 72% to $476,000 from $276,800 in the same period
last year.

Financial Highlights for Nine Months Ended September 30, 2009
-- Income from continuing operations increased 30% to $2.1 million from
$1.6 million in the same period last year.
-- Interest expense decreased 34.8% to $509,800 from $782,300 in the same
period last year primarily due to a decrease in debt balances and
refinancing the debt to a lower interest rate.
-- Net cash provided by continuing operating activities increased 52.1%
to
$3.3 million compared to net cash provided by continuing operating
activities of $2.1 million in the year-ago period.
-- Adjusted EBITDA increased 5.4% to $3.6 million from $3.5 million in
the
year-ago period.

-- Net income increased 34.6% to $1.1 million from $839,300 in the same
period last year.

Operational Highlights for the Quarter Ended September 30, 2009
-- Signed a new three-year contract, valued at more than $750,000 per
year,
with a national grocery chain that has 400 locations nationwide; the
Company will install, maintain and conduct transaction processing for
ATMs in 51 of their retail outlets.
-- Signed a five-year contract, valued at more than $550,000 per year,
with
a new customer that is a regional convenience store chain in the
Southeastern United States, for ATMs at 52 locations.

-- Successful roll out of the Company's DVD rental kiosk initiative to 24
sites.

Financial Results
The Company reported revenues from continuing operations of $5.3 million for
the three-month period ended September 30, 2009 compared to $5.7 million for
the three-month period ended September 30, 2008. This 6.0% decrease was partly
due to lower transaction volumes during the summer months and elimination of
lower profit ATM locations. The Company typically sees an increase in
transaction activity during the summer months, but lower vacation travel and
the slower economy reduced the positive seasonal impact. However, as the
economy has improved, the Company has seen an increase in transaction volumes
beyond the stable core levels, and October's activity surpassed the seasonally
stronger June levels. Gross profit from continuing operations was $2.5
million, or 47.5% gross margin, for the third quarter 2009 compared to $2.5
million, or 43.4% gross margin, for the same period of 2008. The gross margin
percentage increased 410 basis points in the year-over-year period primarily
due to the decreased cost of revenues resulting from lower fuel costs, lower
interest rates and reduced residual payments for the distributor's client
account.

SG&A expenses were $1.4 million, or 25.7% of revenue, for the third quarter
2009 compared to $1.4 million, or 24.2% of revenue, for the same period in
2008. Depreciation and amortization expenses decreased to $505,700 from
$522,200 for the same period in 2008. Operating income from continuing
operations increased 17% to $623,300 for the quarter ended September 30, 2009
compared to $532,700 in the year-ago period. During the third quarter of 2009,
the Company recorded net interest expense of $147,300 compared to net interest
expense of $255,900 for the same period in 2008. The 42.4% decrease was mainly
due to a decrease in debt balances and refinancing the debt to a lower
interest rate. EBITDA (earnings before net interest, taxes, depreciation and
amortization) for the third quarter of 2009 was $1.1 million, flat compared to
the third quarter of 2008. Adjusted EBITDA (EBITDA before stock compensation
expenses) increased to $1.2 million for the third quarter of 2009 from $1.1
million for the third quarter of 2008. EBITDA represents a non-GAAP (Generally
Accepted Accounting Principles) financial measure. A table reconciling this
measure to the appropriate GAAP measure is included in this release.

Net income for the third quarter ended September 30, 2009 increased 72% to
$476,000, or $0.02 per share (based on 21.9 and 23.5 million basic and diluted
weighted average shares outstanding, respectively), compared to net income of
$276,800, or $0.01 per share (based on 21.0 million basic and diluted weighted
average shares outstanding, respectively), for the same period of 2008.

Mr. George McQuain, Chief Executive Officer of the Company, stated, "This was
another successful quarter for Global Axcess, marked by further increases in
our profitability on all counts. This is a testament to our focus on
long-term, sustainable profitability through our lean operating infrastructure
demonstrating the scalability of our business. The positive bottom-line
results for the quarter do not reflect any material contribution from the two
agreements we announced during the quarter, or any contribution from our DVD
kiosk initiative, currently in a pilot program stage. The two contracts we
signed during the quarter, which in aggregate we expect to generate $1.3
million annually with the potential for follow-on business, are both expected
to ramp during the fourth quarter and contribute significantly to our first
quarter 2010 results. In addition, we are continuing to see interest from
national and regional chains in our ATM services, and had substantive traffic
and information requests following our participation in the National
Association of Convenience Stores conference in Las Vegas. The Company has
several proposals in the final stages of discussion and we are optimistic that
we will announce agreements to further expand our ATM network in the coming
months. We are moving to augment our marketing and sales teams to help us grow
our top line and we are currently interviewing sales personnel."

Mr. McQuain continued, "In addition to our success on the ATM side of the
business, we are simultaneously focused on adding additional services to
accelerate our growth. Our goal is to leverage our ability to deploy, manage,
maintain and process transactions from a wider range of self-service kiosks
beyond the traditional ATM. Our DVD rental kiosks pilot program has been a
success operationally. We are now focused on growing the rental traffic at
the kiosks and are making various adjustments to better optimize the
initiative. We remain excited about this opportunity but recognize that we
have work to do to effectively deploy this solution on a broader scale.
Interest in this offering at the National Association of Convenience Stores
conference was tremendous, and we are building a robust database of potential
locations should we expand this program during 2010."

For the nine-month period ended September 30, 2009, total revenue was $16.1
million, a decrease of $927,800, or 5.4%, compared to $17.0 million in the
year-ago period. Gross profit for the nine-month period was $7.6 million,
reflecting a gross margin of 47.5%, compared to gross profit of $7.4 million,
reflecting a gross margin of 43.7%, for the comparable 2008 period. SG&A
expenses for the nine-month period were $4.0 million or 24.8% of revenue
compared to $4.0 million, or 23.4% of revenue for the prior-year period.
Operating income from continuing operations for the nine-month period
increased 30% to $2.1 million compared to $1.6 million in the year-ago period.
Net income for the nine-month period ended September 30, 2009 increased 34.6%
to $1.1 million, or $0.05 per share (based on 21.6 million basic and 22.4
million diluted weighted average shares outstanding, respectively) compared to
net income for the comparable prior-year period of $839,300, or $0.04 per
share (based on 21.0 million basic and diluted weighted average shares
outstanding, respectively). EBITDA decreased to $3.1 million for the nine
months ended September 30, 2009 from $3.3 million from the year-ago period.
Adjusted EBITDA (EBITDA before stock compensation expenses and loss on early
extinguishment of debt) increased 5.4% to $3.6 million for the nine months
ended September 30, 2009 from $3.5 million in the year-ago period.

Net cash provided by continuing operating activities during the nine-month
period ended September 30, 2009 was $3.3 million compared to net cash provided
by continuing operating activities of $2.1 million in the year-ago period,
representing a 52.1% increase year over year. Shareholders' equity increased
10.2% to $14.8 million from $13.5 million at December 31, 2008.

Michael J. Loiacono, Chief Financial Officer of the Company, stated, "Global
Axcess was successful in expanding our profitability and significantly
increasing our cash flow from continuing operations, despite a slight decrease
in revenue. We expect further increases in our profitability and growing cash
flows through careful expense management and the focus on higher margin sites
and agreements. The growth in our ATM network, both from contracts already
announced and potential new agreements should help us to grow our top line and
accelerate our profitability."

Conference Call Information
The conference call will take place at 10 a.m. Eastern to discuss the
Company's financial results for third quarter 2009. Anyone interested in
participating should call (888) 609-5668 and enter pass code 1846282 if
calling within the United States, or (913) 312-1516 and pass code 1846282 if
calling internationally, approximately 5 to 10 minutes prior to 10 a.m. There
will be a playback available until November 12, 2009. To listen to the
playback, please call (888) 203-1112 if calling within the United States or
(719) 457-0820 if calling internationally. Please use pass code 1846282 for
the replay. A transcription of the call can be accessed at the Company's
website at http://www.GlobalAxcess.biz. The transcription will be available
through February 4, 2010.

About Global Axcess Corp
Headquartered in Jacksonville, Florida, Global Axcess Corp was founded in 2001
with a mission to emerge as the leading independent provider of self-service
kiosk services in the United States. The Company provides turnkey ATM and
other self-service kiosk management solutions that include cash and inventory
management, project and account management services. Global Axcess Corp
currently owns, manages or operates over 4,500 ATMs and other self-service
kiosks in its national network spanning 43 states. For more information on
the Company, please visit http://www.globalaxcess.biz.

This press release may contain forward-looking statements. Such
forward-looking statements may be identified by, among other things, the use
of forward-looking terminology such as: "believes," "expects," "may," "will,"
"should," or "anticipates," or the negative thereof or other variations
thereon or comparable terminology, or by discussions of strategy that involve
risks and uncertainties. Various important risks and uncertainties may cause
the Company's actual results to differ materially from the results indicated
by these forward-looking statements. For a list and description of the risks
and uncertainties the Company faces, please refer to Part I, Item 1 of the
Company's Annual Report on Form 10-K, filed with the Securities and Exchange
Commission on March 3, 2009, and other filings that have been filed with the
Securities and Exchange Commission. The Company assumes no obligation to
update any forward-looking statements, whether as a result of new information,
future events or otherwise, and such statements are current only as of the
date they are made.

- tables follow -

GLOBAL AXCESS CORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited) (Audited)
September 30, 2009 December 31, 2008
ASSETS
Current assets
Cash and cash equivalents $1,898,483 $1,560,910
Automated teller machine
vault cash 250,000 -
Accounts receivable, net
of allowance of $8,027 in
2009 and $9,799 in 2008 802,352 848,373
Inventory, net of allowance for
obsolescence of $101,260 in
2009 and $54,033 in 2008 235,489 276,731
Deferred tax asset - current 615,332 615,332
Prepaid expenses and other
current assets 118,382 164,968
Total current assets 3,920,038 3,466,314

Fixed assets, net 5,194,853 4,723,138

Other assets
Merchant contracts, net 10,821,793 11,331,126
Intangible assets, net 4,090,923 4,118,426
Restricted cash 800,000 -
Other assets 30,307 9,232

Total assets $24,857,914 $ 23,648,236

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued
liabilities $2,767,008 $2,527,396
Automated teller machine vault
cash payable 250,000 -
Notes payable - related parties
- current portion, net 26,017 24,010
Notes payable - current portion 19,213 -
Senior lenders' note payable
- current portion, net 1,428,571 606,705
Capital lease obligations
- current portion 704,791 779,990
Total current liabilities 5,195,600 3,938,101

Long-term liabilities
Notes payable - related parties
- long-term portion, net 1,294,016 1,304,595
Notes payable - long-term portion 78,336 -
Senior lenders' note payable
- long-term portion, net 2,857,143 4,240,086
Capital lease obligations
- long-term portion 316,804 425,582
Deferred tax liability
- long-term portion 275,532 275,532
Total liabilities 10,017,431 10,183,896

Stockholders' equity
Preferred stock; $0.001 par value;
5,000,000 shares authorized,
no shares issued and outstanding - -
Common stock; $0.001 par value;
45,000,000 shares authorized,
21,021,786 shares issued and
21,883,924 and 20,973,924 shares
outstanding 21,932 21,022
Additional paid-in capital 22,858,820 22,613,424
Accumulated deficit (8,028,303) (9,158,140)
Treasury stock; 47,862 shares of
common stock at cost (11,966) (11,966)
Total stockholders' equity 14,840,483 13,464,340
Total liabilities and stockholders'
equity $24,857,914 $23,648,236

GLOBAL AXCESS CORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

For the Three Months Ended
September 30, 2009 September 30, 2008

Revenues $5,314,857 $5,652,977

Cost of revenues 2,787,699 3,199,906
Gross profit 2,527,158 2,453,071

Operating expenses
Depreciation expense 303,864 329,061
Amortization of intangible
merchant contracts 201,790 193,173
Selling, general and administrative 1,367,182 1,367,572
Stock compensation expense 30,979 30,540
Total operating expenses 1,903,815 1,920,346
Operating income from continuing
operations before items shown below 623,343 532,725

Interest expense, net (147,299) (255,900)
Net Income $476,044 $276,825

Income per common share - basic:
Net Income per common share $0.02 $0.01

Income per common share - diluted:
Net Income per common share $0.02 $0.01

Weighted average common shares
outstanding:
Basic 21,883,924 20,973,924
Diluted 23,471,284 21,043,567

GLOBAL AXCESS CORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

For the Nine Months Ended
September 30, 2009 September 30, 2008

Revenues $16,098,699 $17,026,465

Cost of revenues 8,457,522 9,578,552
Gross profit 7,641,177 7,447,913

Operating expenses
Depreciation expense 863,206 1,108,318
Amortization of intangible
merchant contracts 590,474 577,502
Selling, general and administrative 3,994,416 3,987,978
Stock compensation expense 86,064 152,564
Total operating expenses 5,534,160 5,826,362
Operating income from continuing
operations before items shown below 2,107,017 1,621,551

Interest expense, net (509,789) (782,281)
Loss on early extinguishment of debt (467,391) -
Net Income $1,129,837 $839,270

Income per common share - basic:
Net Income per common share $0.05 $0.04

Income per common share - diluted:
Net Income per common share $0.05 $0.04

Weighted average common shares
outstanding:
Basic 21,579,475 20,973,924
Diluted 22,442,190 20,998,495

GLOBAL AXCESS CORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

For the Nine Months Ended
September 30, 2009 September 30, 2008

Cash flows from operating activities:
Income from continuing operations $1,129,837 $839,270
Adjustments to reconcile net income
from continuing operations to net
cash provided by continuing
operating activities:
Stock based compensation 86,064 152,564
Stock options issued to
consultants in lieu of cash
compensation 16,063 -
Loss on early extinguishment
of debt 467,391 -
Depreciation expense 863,206 1,108,318
Amortization of intangible
merchant contracts 590,474 577,502
Amortization of capitalized
loan fees 21,706 34,824
Allowance for doubtful accounts (1,707) (13,220)
Allowance for inventory obsolescence 47,227 -
Non-cash interest expense (income)
on swap agreement with senior
lender (7,921) 14,300
Accretion of discount on notes
payable 47,211 124,491
Changes in operating assets and
liabilities:
Change in automated teller
machine vault cash (250,000) -
Change in accounts receivable 47,728 (47,197)
Change in inventory (247,818) 24,097
Change in prepaid expenses and
other current assets 40,186 (10,735)
Change in other assets (21,075) 5,907
Change in intangible assets, net (70,696) 633
Change in accounts payable
and accrued liabilities 247,533 (671,047)
Change in automated teller
machine vault cash payable 250,000 -
Net cash provided by continuing
operating activities 3,255,409 2,139,707

Cash flows from investing activities:
Costs of acquiring merchant contracts (81,141) (39,483)
Purchase of property and equipment (628,365) (178,725)
Net cash used in investing
activities (709,506) (218,208)

Cash flows from financing activities:
Proceeds from issuance of common stock 9,100 -
Proceeds from senior lenders'
notes payable 5,000,000 39,028
Proceeds from notes payable 69,905 -
Change in restricted cash (800,000) -
Principal payments on senior lenders'
notes payable (5,814,286) (552,658)
Principal payments on notes payable (7,208) (25,000)
Principal payments on notes payable
- related parties (17,139) (15,299)
Principal payments on capital
lease obligations (648,702) (779,993)
Net cash used in financing
activities (2,208,330) (1,333,922)
Increase in cash 337,573 587,577
Cash, beginning of period 1,560,910 540,161
Cash, end of the period $1,898,483 $1,127,738

Cash paid for interest $447,764 $603,579

The following table sets forth a reconciliation of net income from
continuing operations to EBITDA from continuing operations for the three
months ended September 30, 2009 and 2008:

For the Three Months Ended
September 30, 2009 September 30, 2008

Net income from continuing
operations $476,044 $276,825
Interest expense, net 147,299 255,900
Depreciation expense 303,864 329,061
Amortization of intangible
merchant contracts 201,790 193,173
EBITDA from continuing operations $1,128,997 $1,054,959

The following table sets forth a reconciliation of net income from
continuing operations to EBITDA from continuing operations before stock
compensation expense and loss on early extinguishment of debt ("Adjusted
EBITDA") for the three months ended September 30, 2009 and 2008:

For the Three Months Ended
September 30, 2009 September 30, 2008

Net income from continuing
operations $476,044 $276,825
Interest expense, net 147,299 255,900
Depreciation expense 303,864 329,061
Amortization of intangible
merchant contracts 201,790 193,173
Stock compensation expense 30,979 30,540
Adjusted EBITDA $1,159,976 $1,085,499

The following table sets forth a reconciliation of net income from
continuing operations to EBITDA from continuing operations for the nine
months ended September 30, 2009 and 2008:

For the Nine Months Ended
September 30, 2009 September 30, 2008

Net income from continuing
Operations $1,129,837 $839,270
Interest expense, net 509,789 782,281
Depreciation expense 863,206 1,108,318
Amortization of intangible
merchant contracts 590,474 577,502
EBITDA from continuing operations $3,093,306 $3,307,371

The following table sets forth a reconciliation of net income from
continuing operations to EBITDA from continuing operations before stock
compensation expense and loss on early extinguishment of debt ("Adjusted
EBITDA") for the nine months ended September 30, 2009 and 2008:

For the Nine Months Ended
September 30, 2009 September 30, 2008

Net income from continuing
Operations $1,129,837 $839,270
Interest expense, net 509,789 782,281
Depreciation expense 863,206 1,108,318
Amortization of intangible
merchant contracts 590,474 577,502
Stock compensation expense 86,064 152,564
Loss on early extinguishment
of debt 467,391 -
Adjusted EBITDA $3,646,761 $3,459,935

SOURCE Global Axcess Corp

Investor Relations, Sharon Jackson of Global Axcess Corp, +1-904-395-1149,
IR@GAXC.biz; or Brett Maas, Brett@haydenir.com, or Jeff Stanlis,
Jeff@haydenir.com, both of Hayden IR, +1-646-536-7331, for Global Axcess Corp