With its fourth-quarter 2013 operating earnings of 44 cents per share exceeding the Zacks Consensus Estimate by a penny, Cardtronics Inc. (CATM) has delivered three consecutive quarters of positive surprises. Results also improved 19% year over year.
Solid contribution from acquisitions coupled with organic growth drove the outperformance.
Cardtronics delivered earnings per share of $1.75 per share for full year 2013 on revenues of $876.5 million. While the top line rose 12.4% year over year, the bottom line increased 22%.
Behind the Headlines
Total revenue of Cardtronics grossed nearly $242 million in the quarter, improving 22% year over year.
ATM operating revenues grew 22% year over year, on the heels of businesses acquired over the past year as well as organic growth with new and existing merchants and financial institution customers.
Gross margin of 32.5% was in line with the year-ago quarter equivalent.
Operating expenses rose 47.3% year over year due to higher selling, general, and administrative expenses, acquisition-related expenses, depreciation and accretion expense as well as amortization expense.
Adjusted earnings before income taxes, interest expenses, interest income, depreciation and amortization (EBITDA) improved 14% year over year to $57.3 million.
Total average number of transacting ATMs in 2013 was 59,124, up from 57,443 in 2012. Total transactions amounted to 840.06 million, up from 744.7 million a year ago.
Financial Update
Cardtronics exited 2013 with cash and cash equivalents of $86.9 million, increasing substantially from $13.9 million as of Dec 31, 2012.
Cash flow from operating activities was $183.6 million in 2013, up almost 35% over 2012.
Free cash flow of $106 million in 2013 improved substantially from $43.6 million in 2012.
Long-term debt of the company stood at $489.2 million at the end of 2013, up 38% year over year due to the issuance of 1.00% convertible senior notes.
2014 Guidance
Cardtronics expects to generate revenues of $980.0 million to $1 billion in 2014. Adjusted gross profit margin has been estimated between 33.0% and 33.5% and adjusted EBITDA between $236.0 million and $243.0 million.
Cardtronics expects adjusted net income in the range of $98.3 million–$101.3 million or $2.20–$2.27 per share in 2014.
Zacks Rank
Cardtronics presently holds a Zacks Rank #2 (Buy).
Performance of Other Business Service Providers
SouFun Holdings Ltd. (SFUN) reported fourth-quarter operating earnings of $1.41 per share exceeding the Zacks Consensus Estimate by 34.5%. Results surged 86% year over¬ year.
Rentrak Corporation (RENT) delivered fourth-quarter 2013 operating loss of 3 cents per share, narrower than the Zacks Consensus Estimate loss of 13 cents and year-ago loss of 15 cents per share.
Viad Corp. (VVI) posted fourth-quarter loss per share of 20 cents, wider than the Zacks Consensus Estimate loss of 17 cents but narrower than the loss of 34 cents per share incurred in the year-ago quarter.
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