Global Axcess Corp Reports Second Quarter 2012 Results

- ATM Revenues of $7.1 Million Increases 12% over $6.3 Million in Q2 2011 -

- Record First Half 2012 Revenues of $16.5 Million -

- SG&A Expenses Decrease 13.5% to $1.6 Million from $1.8 Million in Q2 2011 -

20 Aug, 2012, 08:31 ET from Global Axcess Corp

JACKSONVILLE, Fla., Aug. 20, 2012 /PRNewswire/ -- Global Axcess Corp (OTC Bulletin Board: GAXC; the "Company"), an independent provider of self-service kiosk solutions, today announced financial results for the second quarter, the period ended June 30, 2012.

"We faced a series of challenges during the quarter, and these events impacted our volumes and profit margins," commented Michael Loiacono, Chief Financial Officer. "However, we believe the majority of issues that affected performance, particularly that of our ATM operations, have since been addressed. In addition, we are undertaking a number initiatives to continue improving the performance of both our ATM and DVD businesses and streamline our cost structure."

In a separate press release the Company announced the hiring of Kevin L. Reager as its new President, Chief Executive Officer and Director.

Key financial and operational statistics in the second quarter of 2012 include:

ATM Business Line

  • Second quarter 2012 surcharge transactions decreased 1.6% compared to surcharge transactions for the first quarter of 2012 and increased by 8.2% compared to surcharge transactions for the second quarter of 2011.
  • Second quarter 2012 ATM services revenue decreased by 2.5% over ATM services revenue for the first quarter of 2012 and increased by 12% over ATM services revenue for the second quarter of 2011.
  • Second quarter 2012 ATM services gross profit was $2.1 million compared to $2.4 million in the first quarter of 2012 and compared to $2.7 million for the second quarter of 2011.
  • Second quarter 2012 ATM services adjusted EBITDA was $1.1 million, compared to $1.4 million for the first quarter of 2012 and $1.7 million for the second quarter of 2011.

DVD Business Line

  • Second quarter 2012 consolidated DVD services revenue was $1.1 million, compared to $1.1 million for the first quarter of 2012 and compared to $2.0 million for the second quarter of 2011.
  • Second quarter 2012 consolidated DVD services gross profit was $313,000 compared to $226,000 in the first quarter of 2012 and compared to $342,000 for the second quarter of 2011.
  • Second quarter 2012 DVD services adjusted EBITDA was $129,000 compared to $41,000 for the first quarter of 2011 and compared to $(113,000) for the second quarter of 2011.

SG&A

  • Second quarter 2012 consolidated SG&A was $1.6 million or 19.4% of revenue, compared to $1.7 million or 20.9% of revenue for the first quarter of 2012 and $1.8 million or 22.1% of revenue for the second quarter of 2011.

Michael Loiacono, Chief Financial Officer commented, "While we generated 12% year-over-year ATM services growth, both organic and acquisitive, there was a downturn in ATM transactions in the last six weeks of the second quarter as well as flat DVD revenues. We had several non-recurring challenges, including the lower-than-expected ATM transactions as well as an issue with a third-party ATM vendor that impacted both hardware and software in the machines, thus lowering revenues for the quarter. DVD rentals are highly correlated to new movie releases of which there were significantly fewer during the second quarter, which led to lower volumes. In addition, we had 70 fewer DVD kiosks in the marketplace than last year as they were awaiting redeployment after being removed from the major grocery store chain at the end of 2011."

Second Quarter 2012 Financial Results

The Company reported consolidated revenues of $8.2 million for the second quarter ended June 30, 2012. This was down 1.7% sequentially from first quarter 2012 revenue of $8.3 million and down 1.7% compared to $8.3 million for the second quarter of 2011. ATM revenue for the second quarter of 2012 was $7.1 million as compared to $7.2 million in the first quarter of 2012 and $6.3 million in the year-ago period. DVD rental revenue for the second quarter of 2012 was $1.1 million as compared to $1.1 million in the first quarter of 2012 and $2.0 million in the year-ago period.

Gross profit was approximately $2.4 million, or 29.6% gross margin, for the second quarter 2012 compared sequentially to $2.7 million, or 32.1% gross margin in the first quarter of 2012 and compared to $3.1 million, or 36.9% gross margin, for the second quarter of 2011. Operating loss was $(252,000) compared sequentially to an operating loss of $(35,000) in the first quarter of 2012 and compared to operating income of $320,000 for the second quarter of 2011. During the second quarter of 2012, the Company recorded net interest expense of $301,000, compared sequentially to net interest expense of $255,000 for the first quarter of 2012 and compared to $179,000 for the same period of 2011. The increase was mainly due to an increase in debt.

EBITDA (earnings before net interest, taxes, depreciation and amortization) for the second quarter of 2012 was $754,000 compared sequentially to $928,000 in the first quarter of 2012 and compared to $1.2 million for the second quarter of 2011. Adjusted EBITDA (EBITDA before stock compensation expenses, restructuring charges, gain or loss on sale of assets and impairment of assets) was $829,000 for the second quarter of 2012, which was below guidance of $1.0 million. This compared sequentially to $925,0000 for the first quarter of 2012 and compares to $1.2 million for the second quarter of 2011. EBITDA and adjusted EBITDA represent non-GAAP (Generally Accepted Accounting Principles) financial measures. A table reconciling these measures to the appropriate GAAP measures is included in this release.

Net loss for the second quarter was $(576,000), or a loss of $(0.03) per basic and diluted share. This compared sequentially to a net loss of $(291,000), or a loss of $(0.01) per basic and diluted share in the first quarter of 2012 and compared to net income of $183,000, or $0.01 per basic and diluted share, for the same period of 2011.

Year-to-Date 2012 Financial Results

For the six months ended June 30, 2012, total revenue was a record $16.5 million, an increase of 1.3%, compared to $16.2 million for the same period of 2011. Gross profit for the six months ended June 30, 2012 was $5.1 million, or 30.8% gross margin, compared to $6.1 million, reflecting a gross margin of 37.8% for the comparable 2011 period.

Operating loss from operations for six months ended June 30, 2012 was $(286,000), including a $48,000 restructuring charge. This compared to operating income of $82,000 for the same period of 2011, which included a $512,000 restructuring charge.  

Net loss for the six months ended June 30, 2012 was $(867,000), or $(0.04) loss per basic and diluted share compared to a net loss of $(360,000), or $(0.02) loss per basic and diluted share for the same period in 2011.

For the six months ended June 30, 2012, EBITDA was $1.7 million compared to $1.8 million for the same period in 2011. Adjusted EBITDA was $1.8 million for the six months ended June 30, 2012 compared to $2.4 million in the same period last year.

Balance Sheet and Cash Flows

As of June 30, 2012, the Company had approximately $301,000 in cash compared to approximately $975,000 as of December 31, 2011.

Net cash provided by operating activities during the six months ended ended June 30, 2012 was $1.7 million compared to net cash provided by operating activities of approximately $943,000 during the six months ended June 30, 2011.

Disclosure of Non-GAAP Financial Information

EBITDA and Adjusted EBITDA 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.  However, non-GAAP net income should not be construed as an alternative to GAAP as an indicator of our operating performance because the items excluded from the non-GAAP measures often have a material impact on results of operations. Therefore, management uses - and investors should use - non-GAAP measures in conjunction with our reported GAAP results.

EBITDA excludes interest expense, tax benefit, depreciation expenses and amortization expenses.   Adjusted EBITDA excludes impairment of assets, restructuring charges, stock compensation expense,  gain or loss on sale of assets, other non-operating expense and loss on early extinguishment of debt.  Since Adjusted EBITDA exclude certain non-recurring or non-cash items, these measures may not be comparable to similarly-titled measures employed by other companies. 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 statement data prepared in accordance with GAAP.

Conference Call Information

The Company has scheduled a conference call on Monday, August 20, 2012 at 10 a.m. ET to discuss financial results for the quarter ended June 30, 2012.

Anyone interested in participating should call 1-877-941-8416 (domestic) or 1-480-629-9808 (international), approximately 5 to 10 minutes prior to the start of the call.

There will be a playback available until August 27, 2012. To listen to the playback, please call 1-877-870-5176 if calling within the United States or 1-858-384-5517 if calling internationally. Please use pass code 4557199 for the replay. A transcript of the conference call will be available on the Company's website on Thursday, August 23, 2012 or by calling Brett Maas of Hayden IR at 646-536-7331.

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 more than 5,200 ATMs and DVD kiosks in its national network spanning 43 states.  For more information on the Company, please visit http://www.globalaxcess.biz.  For more information on Nationwide Money Services, please visit http://www.nationwidemoney.com.

Investor Relations Contacts: Michael Loiacono IR@GAXC.biz

Hayden IR: Brett Maas or Jeff Stanlis: (646) 536-7331 Brett@haydenir.com / Jeff@haydenir.com

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. 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.  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.

Other 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.

- tables follow -

GLOBAL AXCESS CORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

(Audited)

June 30,

2012

December 31,

2011

ASSETS

Current assets

Cash and cash equivalents

$          301,251

$            975,363

Accounts receivable, net of allowance of $36,797 in 2012 and $26,451 in 2011

1,206,977

1,034,938

Inventory, net of allowance for obsolescence of$182,572 in 2012 and 2011

1,361,799

1,898,732

Deferred tax asset - current

13,968

315,960

Prepaid expenses and other current assets

175,423

115,602

Total current assets

3,059,418

4,340,595

Fixed assets, net

10,151,352

9,241,824

Other assets

Merchant contracts, net

11,847,092

12,435,353

Intangible assets, net

4,369,314

4,459,334

Deferred tax asset - non-current

1,961,243

1,659,251

Other assets

130,249

692,027

Total assets

$     31,518,668

$       32,828,384

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable and accrued liabilities

$       5,334,698

$         5,704,245

Note payable - related party  - current portion, net

28,488

33,100

Notes payable - current portion

18,299

18,922

Senior lenders' notes payable - current portion, net

2,952,641

3,715,796

Capital lease obligations - current portion

344,980

316,377

Total current liabilities

8,679,106

9,788,440

Long-term liabilities

Interest rate swap contract

665,701

605,479

Note payable - related party - long-term portion

-

11,229

Notes payable - long-term portion

16,371

25,651

Senior lenders' notes payable - long-term portion

9,246,050

8,633,960

Capital lease obligations - long-term portion

68,151

46,979

Total liabilities

18,675,379

19,111,738

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,

   23,205,358 and 23,174,108 shares issued and 22,728,795 and 22,712,977 shares

   outstanding at June 30, 2012 and December 31, 2011, respectively

22,779

22,763

Additional paid-in capital

23,670,573

23,606,308

Accumulated other comprehensive loss

(665,701)

(605,479)

Accumulated deficit

(9,943,103)

(9,075,687)

Treasury stock; 476,563 and 461,131 shares of common stock at cost

   at June 30, 2012 and December 31, 2011, respectively

(241,259)

(231,259)

Total stockholders' equity

12,843,289

13,716,646

Total liabilities and stockholders' equity

$     31,518,668

$       32,828,384

 

GLOBAL AXCESS CORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

    For the Three Months Ended

June 30, 2012

June 30, 2011

Revenues

$    8,155,130

$    8,293,743

Cost of revenues

5,741,341

5,232,206

Gross profit

2,413,789

3,061,537

Operating expenses

Depreciation expense

680,790

572,190

Amortization of intangible merchant contracts

325,435

291,220

Selling, general and administrative

1,584,718

1,832,866

Restructuring charges

47,551

27,221

Stock compensation expense

26,945

17,828

Total operating expenses

2,665,439

2,741,325

Operating income (loss)  from operations

   before items shown below

(251,650)

320,212

Interest expense, net

(301,248)

(178,604)

Gain (loss) on sale of assets

(710)

63,541

Income (loss) from operations before income tax expense

(553,608)

205,149

Income tax expense

(22,500)

(22,000)

Net income (loss)

$     (576,108)

$       183,149

Income (loss) per common share - basic:

Net income (loss) per common share

$           (0.03)

$             0.01

Income (loss) per common share - diluted:

Net income (loss) per common share

$           (0.03)

$             0.01

Weighted average common shares outstanding:

Basic

22,728,795

22,556,526

Diluted

22,728,795

23,180,752

 

GLOBAL AXCESS CORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

    For the Three Months Ended

June 30, 2012

June 30, 2011

Net income (loss)

$     (576,108)

$       183,149

Other comprehensive loss:

Unrealized losses on cash flow hedges

(78,420)

(244,515)

Total Other comprehensive loss

(78,420)

(244,515)

Total Comprehensive loss

$     (654,528)

$       (61,366)

 

GLOBAL AXCESS CORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

    For the Six Months Ended

June 30, 2012

June 30, 2011

Revenues

$  16,451,430

$  16,243,814

Cost of revenues

11,378,149

10,108,376

Gross profit

5,073,281

6,135,438

Operating expenses

Depreciation expense

1,295,975

1,147,514

Amortization of intangible merchant contracts

652,279

579,658

Selling, general and administrative

3,319,691

3,774,512

Restructuring charges

47,551

512,261

Stock compensation expense

44,140

39,528

Total operating expenses

5,359,636

6,053,473

Operating income (loss) from operations

   before items shown below

(286,355)

81,965

Interest expense, net

(555,844)

(349,501)

Gain on sale of assets

19,783

63,541

Other non-operating expense, net

-

(112,500)

Loss from operations before income tax benefit

(822,416)

(316,495)

Income tax expense

(45,000)

(44,000)

Net loss

$     (867,416)

$     (360,495)

Loss per common share - basic:

Net loss per common share

$           (0.04)

$           (0.02)

Loss per common share - diluted:

Net loss per common share

$           (0.04)

$           (0.02)

Weighted average common shares outstanding:

Basic

22,726,014

22,424,358

Diluted

22,726,014

22,424,358

 

GLOBAL AXCESS CORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

    For the Six Months Ended

June 30, 2012

June 30, 2011

Net loss

$     (867,416)

$     (360,495)

Other comprehensive loss:

Unrealized losses on cash flow hedges

(60,222)

(244,515)

Total Other comprehensive loss

(60,222)

(244,515)

Total Comprehensive loss

$     (927,638)

$     (605,010)

 

GLOBAL AXCESS CORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

    For the Six Months Ended

June 30, 2012

June 30, 2011

Cash flows from operating activities:

Net loss

$     (867,416)

$     (360,495)

Adjustments to reconcile net loss from operations

  to net cash provided by operating activities:

Stock based compensation

44,140

39,528

Stock options issued to consultants in lieu of cash compensation

10,141

-

Depreciation expense

1,295,975

1,147,514

Amortization of intangible merchant contracts

652,279

579,658

Amortization of capitalized loan fees

95,743

37,447

Allowance for doubtful accounts

(10,346)

(13,148)

Gain on sale of assets

(19,783)

(63,541)

Changes in operating assets and liabilities, net of effects of acquisitions:

Change in accounts receivable, net

(161,693)

(458,988)

Change in inventory, net

78,833

(465,477)

Change in prepaid expenses and other current assets

(59,821)

(66,861)

Change in other assets

(16,300)

(30,327)

Change in intangible assets, net

(5,723)

(13,305)

Change in interest rate swap contract

-

244,515

Change in accounts payable and accrued liabilities

630,453

366,528

Net cash provided by operating activities

1,666,482

943,048

Cash flows from investing activities:

Cash paid for Tejas acquisition

-

(1,375,000)

Proceeds from sale of property and equipment

-

61,250

Cash paid for Kum and Go acquisition

(1,000,000)

-

Costs of acquiring merchant contracts

(64,018)

(187,315)

Purchase of fixed assets

(871,059)

(950,582)

Net cash used in investing activities 

(1,935,077)

(2,451,647)

Cash flows from financing activities:

Proceeds from issuance of common stock

-

7,500

Proceeds from senior lenders'  notes payable

1,402,219

2,799,658

Principal payments on senior lenders'  notes payable

(1,553,284)

(1,346,767)

Principal payments on notes payable

(9,903)

(10,580)

Principal payments on note payable - related party

(15,841)

(14,139)

Principal payments on capital lease obligations

(228,708)

(229,678)

Net cash provided by (used in) financing activities 

(405,517)

1,205,994

Decrease in cash and cash equivalents

(674,112)

(302,605)

Cash and cash equivalents, beginning of period

975,363

1,743,562

Cash and cash equivalents, end of the period

$       301,251

$    1,440,957

Cash paid for interest

$       378,253

$       313,740

The following table sets forth a reconciliation of net income (loss) from operations to EBITDA from operations for the three months ended June 30, 2012 and 2011:

For the Three Months Ended

June 30, 2012

June 30, 2011

Net income (loss)

$     (576,108)

$       183,149

Income tax expense

22,500

22,000

Interest expense, net

301,248

178,604

Depreciation expense

680,790

572,190

Amortization of intangible merchant contracts

325,435

291,220

EBITDA from operations

$       753,865

$    1,247,163

The following table sets forth a reconciliation of net income (loss) to EBITDA from operations before restructuring charges, stock compensation expense, and (gain) loss on sale of assets ("Adjusted EBITDA") for the three months ended June 30, 2012 and 2011:

For the Three Months Ended

June 30, 2012

June 30, 2011

Net income (loss)

$     (576,108)

$       183,149

Income tax expense

22,500

22,000

Interest expense, net

301,248

178,604

Depreciation expense

680,790

572,190

Amortization of intangible merchant contracts

325,435

291,220

Restructuring charges

47,551

27,221

Stock compensation expense

26,945

17,828

(Gain) loss on sale of assets

710

(63,541)

Adjusted EBITDA from operations

$       829,071

$    1,228,671

The following table sets forth a reconciliation of net loss from operations to EBITDA from operations for the six months ended June 30, 2012 and 2011:

For the Six Months Ended

June 30, 2012

June 30, 2011

Net loss

$     (867,416)

$     (360,495)

Income tax expense 

45,000

44,000

Interest expense, net

555,844

349,501

Depreciation expense

1,295,975

1,147,514

Amortization of intangible merchant contracts

652,279

579,658

EBITDA from operations

$    1,681,682

$    1,760,178

The following table sets forth a reconciliation of net loss to EBITDA from operations before restructuring charges, stock compensation expense, gain on sale of assets and other non-operating expense, net ("Adjusted EBITDA") for the six months ended June 30, 2012 and 2011:

For the Six Months Ended

June 30, 2012

June 30, 2011

Net loss

$     (867,416)

$     (360,495)

Income tax expense 

45,000

44,000

Interest expense, net

555,844

349,501

Depreciation expense

1,295,975

1,147,514

Amortization of intangible merchant contracts

652,279

579,658

Restructuring charges

47,551

512,261

Stock compensation expense

44,140

39,528

Gain on sale of assets

(19,783)

(63,541)

Other non-operating expense, net

-

112,500

Adjusted EBITDA from operations

$    1,753,590

$    2,360,926

EBITDA (a non-GAAP measure) is defined as earnings before net interest, taxes, depreciation and amortization.  Adjusted EBITDA is defined as EBITDA from operations before restructuring charges, stock compensation expense,  gain on sale of assets and other non-operating expense, net.

BUSINESS SEGMENT INFORMATION

FASB requires that companies report separately in the financial statements certain financial and descriptive information about segment revenues, income and assets. The method for determining what information is reported is based on the way that management organizes the operating segments for making operational decisions and assessments of financial performance. In computing operating loss and net loss for the DVD services business and the ATM services business, no allocations of general corporate expenses have been made and these are included in the Corporate Support services business.   

The following table summarizes our revenues, gross profit, SG&A, stock compensation expenses, depreciation and amortization, impairment of assets and long-lived assets, restructuring charges, operating income (loss), net income (loss) and Adjusted EBITDA by segment for the periods indicated below.

EBITDA (a non-GAAP measure) is defined as earnings before net interest, taxes, depreciation and amortization.  Adjusted EBITDA is defined as EBITDA from operations before restructuring charges, stock compensation expense, gain on sale of assets, and other non-operating expense.  

For the Three Months Ended

For the Six Months Ended

June 30, 2012

June 30, 2011

June 30, 2012

June 30, 2011

Revenues:

   ATM Services

$       7,051,808

$      6,294,709

$     14,280,876

$    12,241,286

   DVD Services - The Exchange

1,103,322

1,103,589

2,170,554

2,172,475

   DVD Services - Other

-

895,445

-

1,830,053

   Corporate Support

-

-

-

-

Consolidated revenues

$       8,155,130

$      8,293,743

$     16,451,430

$    16,243,814

Gross profit:

   ATM Services

$       2,100,338

$      2,719,700

$       4,533,702

$      5,270,574

   DVD Services - The Exchange

313,451

460,575

539,579

1,005,394

   DVD Services - Other

-

(118,738)

-

(140,530)

   Corporate Support

-

-

-

-

Consolidated gross profit

$       2,413,789

$      3,061,537

$       5,073,281

$      6,135,438

SG&A:

   ATM Services

$          988,439

$         959,591

$       2,050,018

$      2,036,158

   DVD Services - The Exchange

184,629

167,229

369,635

362,766

   DVD Services - Other

-

287,459

-

574,727

   Corporate Support

411,650

418,587

900,038

800,861

Consolidated SG&A

$       1,584,718

$      1,832,866

$       3,319,691

$      3,774,512

Stock compensation expense:

   ATM Services

$                    -

$                   -

$                    -

$                   -

   DVD Services - The Exchange

-

-

-

-

   DVD Services - Other

-

-

-

-

   Corporate Support

26,945

17,828

44,140

39,528

Consolidated stock compensation expense

$            26,945

$           17,828

$            44,140

$           39,528

Depreciation & Amortization:

   ATM Services

$          615,267

$         481,890

$       1,214,945

$         961,106

   DVD Services - The Exchange

314,904

44,986

580,668

85,608

   DVD Services - Other

-

259,991

-

527,642

   Corporate Support

76,055

76,543

152,641

152,816

Consolidated depreciation & amortization

$       1,006,225

$         863,410

$       1,948,254

$      1,727,172

Restructuring charges:

   ATM Services

$            47,551

$           38,520

$            47,551

$           62,738

   DVD Services - The Exchange

-

-

-

-

   DVD Services - Other

-

-

-

-

   Corporate Support

-

(11,299)

-

449,523

Consolidated restructuring charges

$            47,551

$           27,221

$            47,551

$         512,261

Operating income (loss):

   ATM Services

$          449,081

$      1,239,699

$       1,221,188

$      2,210,572

   DVD Services - The Exchange

(186,082)

248,360

(410,724)

557,020

   DVD Services - Other

-

(666,188)

-

(1,242,899)

   Corporate Support

(514,649)

(501,659)

(1,096,819)

(1,442,728)

Consolidated operating income (loss)

$        (251,650)

$         320,212

$        (286,355)

$           81,965

Net income (loss):

   ATM Services

$          416,359

$      1,204,923

$       1,158,691

$      2,138,048

   DVD Services - The Exchange

(184,834)

248,360

(390,205)

557,020

   DVD Services - Other

-

(602,648)

-

(1,141,859)

   Corporate Support

(807,633)

(667,486)

(1,635,902)

(1,913,704)

Consolidated net income (loss)

$        (576,108)

$         183,149

$        (867,416)

$       (360,495)

Adjusted EBITDA:

   ATM Services

$       1,111,899

$      1,738,109

$       2,483,684

$      3,190,416

   DVD Services - The Exchange

128,822

293,346

169,944

642,628

   DVD Services - Other

-

(406,197)

-

(715,257)

   Corporate Support

(411,650)

(418,587)

(900,038)

(800,861)

Consolidated Adjusted EBITDA

$          829,071

$      1,206,671

$       1,753,590

$      2,316,926

 

 

SOURCE Global Axcess Corp



RELATED LINKS

http://www.globalaxcess.biz