Profile: Cardtronics Inc (CATM.O)
6 Jul 2015
Cardtronics, Inc. (Cardtronics), incorporated on June 4, 2001, provides automated consumer financial services. The Company provides these services through its network of automated teller machines (ATMs) and multi-function financial services kiosks. As of December 31, 2014, the Company provided its services to approximately 110,200 devices throughout the United States (including the United States territories of Puerto Rico and the U.S. Virgin Islands), the United Kingdom, Germany, Canada, and Mexico. The Company's operations consist of its U.S., Europe and Other International segments. Its U.S. segment includes the Company's operations in all 50 states, Puerto Rico and the U.S. Virgin Islands. Its Europe segment includes the Company's operations in the United Kingdom and Germany. The Company's Other International segment includes its operations in Mexico and Canada.
In the United States, certain of the Company's devices are multi-function financial services kiosks that, in addition to traditional ATM functions, such as cash dispensing and bank account balance inquiries, perform other consumer financial services, including bill payments, check cashing, remote deposit capture (which is deposit taking at ATMs using electronic imaging), and money transfers. Also included in the number of devices in its network as of December 31, 2014 were approximately 32,000 ATMs to which the Company provided various forms of managed services. Under the managed services arrangement, retailers, financial institutions, and ATM distributors rely on the Company to handle some or all of the operational aspects associated with operating and maintaining ATMs.
The Company partners with large, nationally and regionally-known retail merchants under multi-year contracts to place its ATMs and kiosks within their store locations. The Company provides its retail partners with an automated financial services solution. It also owns and operates an electronic funds transfer (EFT) transaction processing platform that provides transaction processing services to the Company's network of ATMs and financial services kiosks, as well as to ATMs owned and operated by third-parties.
The Company deploys and operates devices under three arrangements with its retail partners: Company-owned ATM placements, merchant-owned ATM placements and managed services. Under Company-owned arrangements, the Company provides the physical device (ATM) and is responsible for all aspects of its operations, including transaction processing, managing cash and cash delivery, supplies, and telecommunications, as well as routine and technical maintenance. Under merchant-owned arrangements, the retail merchant or an independent distributor owns the device and is responsible for providing cash and performing simple maintenance tasks, while the Company provides maintenance services, transaction processing and connection to the EFT networks. It also offers various forms of managed services, depending on the needs of its customers. Each managed services arrangement is a customized ATM management solution that includes any combination of the services: monitoring, maintenance, cash management, cash delivery, customer service, transaction processing, and other services. As of December 31, 2014, 49% of its devices operated were Company-owned, 22% were merchant-owned and 29% of its devices were operated under a managed services solution.
In addition to the Company's retail merchant relationships, it also partners with national financial institutions to brand selected ATMs and financial services kiosks within its network, including Citibank, N.A., Santander Bank, N.A., PNC Bank, N.A., and Frost Bank, in the United States, the Bank of Nova Scotia (Scotiabank) in Canada, Mexico, and Puerto Rico, Grupo Financiero Banorte, S.A. de C.V. in Mexico, and Canadian Imperial Bank of Commerce (CIBC) in Canada. As of December 31, 2014, approximately 22,800 of the Company's devices were under contract with 413 financial institutions to place their logos on those machines, and to provide surcharge-free access for their banking customers.
Cardtronics also owns and operates the Allpoint network (Allpoint), which is a surcharge-free ATM network within the United States. Allpoint has approximately 55,000 participating ATMs and provides surcharge-free ATM access to customers of participating financial institutions. Allpoint includes the Company's ATMs in the United States, and a number of locations in the United Kingdom, Canada and Mexico. Allpoint also works with financial institutions that manage stored-value debit card programs on behalf of corporate entities and governmental agencies, including general purpose, payroll and electronic benefits transfer (EBT) cards. Under these programs, the issuing financial institutions pay Allpoint a fee per issued stored-value card or per transaction in return for allowing the users of those cards surcharge-free access to Allpoint's participating ATM network.
3250 Briarpark Dr Ste 400
HOUSTON TX 77042-4462