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PRESS RELEASE from provider: Globe Newswire
This content is a press release from our partner Globe Newswire. The AP newsroom and editorial departments were not involved in its creation.

CORRECTING and REPLACING - Cardtronics Announces Fourth Quarter and Full-Year 2018 Results

February 22, 2019

HOUSTON, Feb. 21, 2019 (GLOBE NEWSWIRE) -- In a release issued under the same headline earlier today by Cardtronics plc (Nasdaq: CATM), please note that under “Fourth Quarter 2018 Highlights,” the number of new financial institutions in the second to last bullet should be “21″ and not “214” as originally issued. The corrected release follows:

Cardtronics plc (Nasdaq: CATM) (“Cardtronics” or the “Company”), the world’s largest ATM owner/operator, announced today its financial and operational results for the quarter and full-year ended December 31, 2018.

“We saw continued strength in our U.S. business during the fourth quarter, with same-store withdrawal transactions up 6%, driven by growth in surcharge-free transactions. Allpoint continues to expand as banks, consumers, and retailers value the convenience, reliability, and security of our network of retailer-based ATMs. In a year of known challenges, the fourth quarter results were a great finish to a year of solid execution - one driven by tremendous employee performance and marked by the return to organic growth in North America, improved operations, strong performance across our growth markets, and the generation of nearly $118 million in adjusted free cash flows,” commented Edward H. West, Cardtronics’ chief executive officer.

Fourth Quarter 2018 Highlights:

-- Total revenues of $327.9 million, down 10% from $363.0 million in the prior year. o Total revenues were approximately flat after excluding the impact from the removal of ATMs at 7-Eleven locations in the U.S. and on a constant-currency basis. o Growth in North America total revenues of 2%, excluding the 7-Eleven impact and on a constant currency basis. o Same-store withdrawal transactions in the U.S. were up 6% for the quarter. -- ATM operating revenues of $314.1 million, down 9% from $346.2 million in the prior year and approximately flat, excluding the impact from the removal of ATMs at 7-Eleven locations in the U.S. and on a constant-currency basis. -- GAAP net loss of $(6.1) million, or $(0.13) per diluted share, compared to GAAP net income of $16.0 million, or $0.35 per diluted share in the prior year. -- Adjusted EBITDA of $68.5 million, down 24% from $89.8 million in the prior year, primarily impacted by the removal of ATMs at 7-Eleven locations in the U.S. -- Adjusted net income per diluted share of $0.47 compared to $0.73 in the prior year, impacted by the removal of ATMs at 7-Eleven locations in the U.S. -- Adjusted free cash flow of $32.4 million, up from $20.9 million in the prior year. -- New managed service relationships with three new financial institution partners to manage nearly 200 ATMs. -- Added 21 new financial institutions to our Allpoint Network. -- Entered into an amended and expanded $600 million revolving credit facility with a renewed five-year term through 2023 with improved flexibility, pricing, and covenants. In conjunction with the expanded credit facility, the Company redeemed its 2022 Notes.

Full-Year 2018 Highlights:

-- Total revenues of $1.35 billion, down 11% from $1.51 billion in the prior year. -- ATM operating revenues of $1.30 billion, down 11% from $1.45 billion in the prior year and approximately flat excluding the impact from the removal of ATMs at 7-Eleven locations in the U.S. -- GAAP net income of $3.7 million, or $0.08 per diluted share, compared to GAAP net loss of $(145.4) million, or $(3.19) per diluted share in the prior year. The prior year result was impacted by non-cash impairment charges related to the Company’s Australia operation. -- Adjusted EBITDA of $292.7 million, down 16% from $348.6 million in the prior year, primarily impacted by the removal of ATMs at 7-Eleven locations in the U.S. -- Adjusted net income per diluted share of $2.14 compared to $3.00 in the prior year, impacted by the removal of ATMs at 7-Eleven locations in the U.S. -- Adjusted free cash flow of $117.9 million, up $44.1 million from $73.8 million in the prior year.

Note Regarding Fourth Quarter and Full-Year 2018 Results Compared to Prior Year:

The Company had a long-standing relationship with 7-Eleven in the U.S. that ended during the quarter ended March 31, 2018. In previous periods, this relationship accounted for a material portion of the Company’s consolidated revenues and profits. The Company began a transition to 7-Eleven’s new service provider during the third quarter of 2017 and that transition was completed in February 2018. As a result, the Company’s relationship with 7-Eleven in the U.S. did not account for any of its consolidated revenues during the fourth quarter of 2018. The Company estimates that 7-Eleven in the U.S. accounted for approximately 7.3% and 12.5% of the Company’s consolidated revenues during the fourth quarter and full-year 2017, respectively and had an incremental adjusted gross margin of approximately 40%. 7-Eleven in the U.S. accounted for approximately $6 million or less than 1% of consolidated revenues in 2018, all of which was recorded during the first quarter.

See Disclosure of Non-GAAP Financial Information in this earnings release for definitions of Adjusted Gross Profit, Adjusted Gross Margin, EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income per diluted share, Adjusted Free Cash Flow, and certain other GAAP and non-GAAP measures on a constant-currency basis. For additional information, including reconciliations to the most directly comparable financial measure recognized under generally accepted accounting principles in the U.S. (“U.S. GAAP” or “GAAP”), see the supplemental schedules of selected financial information in this earnings release.

The Company may also refer to revenue or profit growth as being organic. When providing growth measures on an organic basis, the Company aims to exclude the estimated impact from any acquired or divested businesses that may be included or partially included in one period but not another. The Company may further adjust organic performance measures for the impacts of currency movements, in order to have a consistent performance comparison across periods for the business, excluding movements in exchange rates. Due to the significance of the Company’s 7-Eleven relationship in the U.S., which accounted for 12.5% of consolidated revenues in 2017 and less than 1% of consolidated revenues in 2018, the Company may also report certain performance measures excluding the estimated contribution of this relationship to enable more comparable analysis of the business across periods excluding this relationship.

2019 OUTLOOK

Below is the Company’s financial outlook for the year ending December 31, 2019:

-- Revenues of $1.31 billion to $1.35 billion; -- GAAP Net Income of $22 million to $25 million; -- Adjusted EBITDA of $285 million to $295 million; -- Depreciation and accretion expense of $139 million to $141 million; -- Cash interest expense of $27 million to $28 million; -- Adjusted Net Income of $91 million to $96 million; -- Adjusted Net Income per diluted share of $1.94 to $2.05, based on approximately 46.9 million average diluted shares outstanding; and -- Capital expenditures of approximately $135 million.

The Adjusted EBITDA and Adjusted Net Income outlook excludes the impact of certain expenses, as outlined in the reconciliation provided at the end of this earnings release. See Disclosure of Non-GAAP Financial Information in this earnings release for definitions of these Non-GAAP measures. This outlook is based on average foreign currency exchange rates for 2019 of £1.00 U.K. to $1.28 U.S., $19.61 Mexican pesos to $1.00 U.S., $1.00 Canadian dollar to $0.73 U.S., €1.00 Euros to $1.15 U.S., $1.00 Australian dollar to $0.71 U.S., and R14.29 South African Rand to $1.00 U.S.

CONFERENCE CALL INFORMATION

The Company will host a conference call today, Thursday, February 21, 2019, at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) to discuss its financial results for the quarter and year ended December 31, 2018. 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 15 minutes prior to the scheduled start time and request to be connected to the “Cardtronics Fourth Quarter and Full-Year 2018 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.

A digital replay of the conference call will be available through Thursday, February 28, 2019, and can be accessed by calling (855) 859-2056 or (404) 537-3406 and entering 4189925 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 31, 2019. Prior to the conference call, the Company will post supplemental financial information to its website at www.cardtronics.com.

ABOUT CARDTRONICS (Nasdaq: CATM)

Cardtronics is the trusted leader in financial self-service, enabling cash transactions at approximately 227,000 ATMs across 10 countries in North America, Europe, Asia-Pacific, and Africa. Leveraging our unmatched scale, expertise and innovation, top-tier merchants and businesses of all sizes use our ATM solutions to drive growth, in-store traffic, and retail transactions. Financial services providers rely on Cardtronics to deliver superior service at their own ATMs, on Cardtronics ATMs where they place their brand, and through Cardtronics’ Allpoint Network, the world’s largest surcharge-free ATM network, with over 55,000 locations. As champions of cash, Cardtronics converts digital currency into physical cash, driving payments choice for businesses and consumers alike.

CONTACT INFORMATION

EVP - Treasurer Corporate Communications Manager Brad Conrad Susannah Moore Griffin 832-308-4000 832-308-4392 ir@cardtronics.com sgriffin@cardtronics.com

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This earnings release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended and are intended to be covered by the safe harbor provisions thereof. These forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effect on the Company and there can be no assurance that future developments affecting the Company will be those that are anticipated. All comments concerning the Company’s expectations for future revenues and operating results are based on its estimates for its existing operations and do not include the potential impact of any future acquisitions. The Company’s forward-looking statements involve significant risks and uncertainties (some of which are beyond its control) and assumptions that could cause actual results to differ materially from its historical experience and present expectations or projections. Risk factors are described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018, and those set forth from time-to-time in other filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements contained in this earnings release, which speak only as of the date of this earnings release. Except as required by applicable law, the Company undertakes no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events, or otherwise.

DISCLOSURE OF NON-GAAP FINANCIAL INFORMATION

In order to assist readers of our consolidated financial statements in understanding the operating results that management uses to evaluate the business and for financial planning purposes, the Company presents the following non-GAAP measures as a complement to financial results prepared in accordance with U.S. GAAP: Adjusted Gross Profit, Adjusted Gross Margin, EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Tax Rate, Adjusted Net Income per share, Adjusted Free Cash Flow, and certain other results presented on a constant-currency basis. Management believes that the presentation of these measures and the identification of notable, non-cash, and/or (if applicable in a particular period) certain costs not anticipated to occur in future periods enhance an investor’s understanding of the underlying trends in the Company’s business and provide for better comparability between periods in different years. Management also believes that these measures are relevant and provide useful information widely used by analysts, investors and other interested parties in the Company’s industry to provide a baseline for evaluating and comparing our operating performance and, in the case of free cash flow, our liquidity results. Management uses these non-GAAP financial measures in managing and measuring the performance of the business, including setting and measuring incentive based compensation.

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 earnings release. In addition, the non-GAAP measures that are used by the Company are not defined in the same manner by all companies and therefore may not be comparable to other similarly titled measures of other companies. Furthermore, the non-GAAP 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 contained within our financial statements.

Adjusted Gross Profit and Adjusted Gross Margin

Adjusted Gross Profit represents total revenues less the total cost of revenues, excluding depreciation, accretion, and amortization of intangible assets. Adjusted Gross Margin is calculated by dividing Adjusted Gross Profit by total revenues.

EBITDA, Adjusted EBITDA

EBITDA adds interest expense, income tax expense and depreciation and amortization to net income. Adjusted EBITDA excludes depreciation, accretion, and amortization of intangible assets 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 methods by which the assets were acquired. Adjusted EBITDA also excludes share-based compensation expense, acquisition and divestiture-related expenses, certain non-operating expenses, (if applicable in a particular period) certain costs not anticipated to occur in future periods, gains or losses on disposal and impairment of assets, the Company’s obligations for the payment of income taxes, interest expense, and other obligations such as capital expenditures, and includes an adjustment for noncontrolling interests.

Adjusted Net Income, Adjusted Net Income per Diluted Share and Adjusted Tax Rate

Adjusted Net Income represents net income computed in accordance with GAAP, before amortization of intangible assets, gains or losses on disposal and impairment of assets, share-based compensation expense, certain other expense amounts, acquisition and divestiture-related expenses, certain non-operating expenses, and (if applicable in a particular period) certain costs not anticipated to occur in future periods (together, the “Adjustments”). The non-GAAP tax rate used to calculate Adjusted Net Income was approximately 20.9% and 24.1% for the three and twelve months ended December 31, 2018, respectively, and 28.6% and 27.7% for the three and twelve months ended December 31, 2017, respectively. The non-GAAP tax rates represent the GAAP tax rate for the period as adjusted by the estimated tax impact of the items adjusted from the measure. Adjusted Net Income per diluted share is calculated by dividing Adjusted Net Income by weighted average diluted shares outstanding.

Adjusted Free Cash Flow

Adjusted Free Cash Flow is defined as cash provided by operating activities less the impact of changes in restricted cash due to the timing of settlements and less payments for capital expenditures, including those financed through direct debt, but excluding acquisitions. The Adjusted Free Cash Flow measure does not take into consideration certain other non-discretionary cash requirements such as mandatory principal payments on portions of the Company’s long-term debt.

Constant-Currency

Management calculates certain GAAP as well as non-GAAP measures on a constant-currency basis using the average foreign currency exchange rates applicable in the corresponding period of the previous year and applying these rates to the measures in the current reporting period. Management uses GAAP as well as non-GAAP measures on a constant-currency basis to assess performance and eliminate the effect foreign currency exchange rates have on comparability between periods.

Consolidated Statements of Operations For the Three and Twelve Months Ended December 31, 2018 and 2017 (In thousands, excluding share, per share amounts, and percentages) Three Months Ended Twelve Months Ended December 31, December 31, ---------------------------------- - ---------------------------------- - 2018 2017 % Change 2018 2017 % Change ------------- ----------- -------- ------------- ---------- --------- Revenues: (Unaudited) (Unaudited) (Unaudited) (Audited) ATM operating revenues $ 314,141 $ 346,181 (9.3) % $ 1,292,930 $ 1,451,372 (10.9) % ATM product sales and other 13,756 16,784 (18.0) 52,313 56,227 (7.0) revenues - ----------- ----------- - ----------- ---------- Total revenues 327,897 362,965 (9.7) 1,345,243 1,507,599 (10.8) Cost of revenues: Cost of ATM operating revenues (excludes depreciation, accretion, 208,256 222,123 (6.2) 855,948 951,670 (10.1) and amortization of intangible assets reported separately below.) Cost of ATM product sales and 10,307 12,779 (19.3) 41,835 47,450 (11.8) other revenues - ----------- ----------- - ----------- ---------- Total cost of revenues 218,563 234,902 (7.0) 897,783 999,120 (10.1) Operating expenses: Selling, general, and 45,926 42,686 7.6 170,490 174,237 (2.2) administrative expenses Redomicile-related expenses — — n/m — 782 (100.0) Restructuring expenses 1,052 2,111 (50.2) 6,586 10,354 (36.4) Acquisition related expenses 558 3,579 (84.4) 3,191 18,917 (83.1) Goodwill and intangible asset — — n/m — 194,521 (100.0) impairment Depreciation and accretion expense 32,746 33,353 (1.8) 126,199 122,036 3.4 Amortization of intangible assets 12,648 12,443 1.6 52,911 57,866 (8.6) Loss on disposal and impairment of 2,290 7,105 (67.8) 17,873 33,275 (46.3) assets - ----------- ----------- - ----------- ---------- Total operating expenses 95,220 101,277 (6.0) 377,250 611,988 (38.4) Income (loss) from operations 14,114 26,786 (47.3) 70,210 (103,509) (167.8) Other expenses: Interest expense, net 8,244 9,276 (11.1) 35,429 35,036 1.1 Amortization of deferred financing 4,827 3,257 48.2 14,887 12,574 18.4 costs and note discount Redemption cost for early 6,408 — n/m 6,408 — n/m extinguishment of debt Other expense (income) 697 5,254 (86.7) (627) 3,524 (117.8) - ----------- ----------- - ----------- ---------- Total other expenses 20,176 17,787 13.4 56,097 51,134 9.7 (Loss) income before income taxes (6,062) 8,999 n/m 14,113 (154,643) n/m Income tax expense (benefit) 48 (6,957) n/m 10,457 (9,292) n/m - ----------- ----------- - ----------- ---------- Effective tax rate (0.8%) (77.3%) 74.1% 6.0% - ----------- ----------- - ----------- ---------- Net (loss) income (6,110) 15,956 n/m 3,656 (145,351) n/m Net (loss) income attributable to (6) 2 n/m (20) (1) n/m noncontrolling interests - ----------- ----------- - ----------- ---------- Net (loss) income attributable to controlling interests and $ (6,104) $ 15,954 n/m % $ 3,676 (145,350) n/m % available to common shareholders - ----------- - ----------- - ----------- ---------- Net (loss) income per common share $ (0.13) $ 0.35 $ 0.08 (3.19) – basic - ----------- - ----------- - ----------- ---------- Net (loss) income per common share $ (0.13) $ 0.35 $ 0.08 (3.19) – diluted - ----------- - ----------- - ----------- ---------- Weighted average shares 46,116,518 45,685,325 45,988,775 45,619,679 outstanding – basic - ----------- ----------- - ----------- ---------- Weighted average shares 46,116,518 46,193,914 46,436,439 45,619,679 outstanding – diluted - ----------- ----------- - ----------- ----------

Condensed Consolidated Balance Sheets As of December 31, 2018 and December 31, 2017 (In thousands) December December 31, 2018 31, 2017 ----------- ----------- (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 39,940 $ 51,370 Accounts and notes receivable, net 75,643 105,245 Inventory, net 11,392 14,283 Restricted cash 155,470 48,328 Prepaid expenses, deferred costs, and other current assets 84,386 96,106 - --------- - --------- Total current assets 366,831 315,332 Property and equipment, net 460,187 497,902 Intangible assets, net 150,847 209,862 Goodwill 749,144 774,939 Deferred tax asset, net 8,658 6,925 Prepaid expenses, deferred costs, and other noncurrent assets 51,677 57,756 - --------- - --------- Total assets $ 1,787,344 $ 1,862,716 - --------- - --------- LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Current portion of other long-term liabilities $ 20,266 $ 31,370 Accounts payable and other accrued and current liabilities 408,470 351,180 - --------- - --------- Total current liabilities 428,736 382,550 Long-term liabilities: Long-term debt 818,485 917,721 Asset retirement obligations 54,413 59,920 Deferred tax liability, net 41,198 37,130 Other long-term liabilities 67,740 75,002 - --------- - --------- Total liabilities 1,410,572 1,472,323 Shareholders’ equity 376,772 390,393 - --------- - --------- Total liabilities and shareholders’ equity $ 1,787,344 $ 1,862,716 - --------- - ---------

SELECTED BALANCE SHEET DETAIL:

Long-term debt: December 31, December 2018 31, 2017 ------------- --------- (In thousands) (Unaudited) Revolving credit facility $ 259,081 $ 122,461 1.00% Convertible senior notes (1) 263,507 251,973 5.125% Senior notes (1) — 248,038 5.50% Senior notes (1) 295,897 295,249 Total long-term debt $ 818,485 $ 917,721 - ----------- - -------

(1) The 1.00% Convertible Senior Notes due 2020 with a face value of $287.5 million are presented net of the unamortized discount and capitalized debt issuance costs of $24.0 million and $35.5 million as of December 31, 2018 and December 31, 2017, respectively. In accordance with GAAP, the estimated fair value of the conversion feature within the Convertible Senior Notes was recorded as additional paid-in capital within equity at issuance. The Convertible Senior Notes are being accreted over the term of the notes to the full principal amount ($287.5 million). The 5.125% Senior Notes due 2022 with a face value of $250.0 million (“2022 Notes”) were all redeemed on December 19, 2018. The 2022 Notes are presented net of capitalized debt issuance costs of $2.0 million as of December 31, 2017. The 5.50% Senior Notes due 2025 with a face value of $300.0 million are presented net of capitalized debt issuance costs of $4.1 million and $4.8 million as of December 31, 2018 and December 31, 2017, respectively.

SELECTED CASH FLOW DETAIL:

Selected cash flow statement amounts: Three Months Ended Twelve Months Ended December 31, December 31, ---------------------------- -------------------------- 2018 2017 2018 2017 ------------- ------------- ------------- ----------- (In thousands) (Unaudited) (Unaudited) (Unaudited) (Audited) Net cash provided by operating activities $ 149,620 $ 58,153 $ 334,202 $ 230,587 Net cash used in investing activities (34,998) (32,716) (108,355) (628,742) Net cash (used in) provided by financing activities (30,167) (35,860) (126,392) 391,424 Effect of exchange rate changes on cash, cash (3,458) 4,979 (3,862) 801 equivalents, and restricted cash - ----------- - ----------- - ----------- - --------- Net increase (decrease) in cash, cash equivalents, 80,997 (5,444) 95,593 (5,930) and restricted cash Cash, cash equivalents, and restricted cash as of 114,413 105,261 99,817 105,747 beginning of period - ----------- - ----------- - ----------- - --------- Cash, cash equivalents, and restricted cash as of end $ 195,410 $ 99,817 $ 195,410 $ 99,817 of period - ----------- - ----------- - ----------- - ---------

Reconciliation of Net (Loss) Income Attributable to Controlling Interests and Available to Common Shareholders to EBITDA, Adjusted EBITDA, and Adjusted Net Income For the Three and Twelve Months Ended December 31, 2018 and 2017 (In thousands, excluding share and per share amounts) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, -------------------------- -------------------------- 2018 2017 2018 2017 ------------ ------------ ------------ ------------ Net (loss) income attributable to controlling $ (6,104) $ 15,954 $ 3,676 $ (145,350) interests and available to common shareholders Adjustments: Interest expense, net 8,244 9,276 35,429 35,036 Amortization of deferred financing costs and note 4,827 3,257 14,887 12,574 discount Redemption costs for early extinguishment of debt 6,408 — 6,408 — Income tax expense (benefit) 48 (6,957) 10,457 (9,292) Depreciation and accretion expense 32,746 33,353 126,199 122,036 Amortization of intangible assets 12,648 12,443 52,911 57,866 - ---------- - ---------- - ---------- - ---------- EBITDA $ 58,817 $ 67,326 $ 249,967 $ 72,870 - ---------- - ---------- - ---------- - ---------- Add back: Loss on disposal and impairment of assets 2,290 7,105 17,873 33,275 Other expense (income)(1) 697 5,254 (627) 3,524 Noncontrolling interests (2) 7 (6) 38 (25) Share-based compensation expense 5,033 4,422 15,660 14,395 Restructuring expenses (3) 1,052 2,111 6,586 11,136 Acquisition related expenses (4) 558 3,579 3,191 18,917 Goodwill and intangible asset impairment (5) — — — 194,521 - ---------- - ---------- - ---------- - ---------- Adjusted EBITDA $ 68,454 $ 89,791 $ 292,688 $ 348,613 - ---------- - ---------- - ---------- - ---------- Less: Interest expense, net 8,244 9,276 35,429 35,036 Depreciation and accretion expense (6) 32,745 33,352 126,197 122,029 - ---------- - ---------- - ---------- - ---------- Adjusted pre-tax income $ 27,465 $ 47,163 $ 131,062 $ 191,548 Income tax expense (7) 5,740 13,489 31,529 53,084 - ---------- - ---------- - ---------- - ---------- Adjusted Net Income $ 21,725 $ 33,674 $ 99,533 $ 138,464 - ---------- - ---------- - ---------- - ---------- Adjusted Net Income per share – basic $ 0.47 $ 0.74 $ 2.16 $ 3.03 - ---------- - ---------- - ---------- - ---------- Adjusted Net Income per share – diluted $ 0.47 $ 0.73 $ 2.14 $ 3.00 - ---------- - ---------- - ---------- - ---------- Weighted average shares outstanding – basic 46,116,518 45,685,325 45,988,775 45,619,679 - ---------- - ---------- - ---------- - ---------- Weighted average shares outstanding – diluted 46,581,822 46,193,914 46,436,439 46,214,715 - ---------- - ---------- - ---------- - ----------

(1) Includes foreign currency translation gains/losses, the revaluation of the estimated acquisition related contingent consideration, and other non-operating costs.(2) Noncontrolling interest adjustment made such that Adjusted EBITDA includes only the Company’s ownership interest in the Adjusted EBITDA of one of its Mexican subsidiaries.(3) For the three and twelve months ended December 31, 2018 and 2017, expenses include employee severance and other costs incurred in conjunction with a corporate reorganization and cost reduction initiative. For the twelve months ended December 31, 2017, expenses also include amounts associated with the Company’s redomicile of its parent company to the U.K. that occurred on July 1, 2016.(4) Acquisition related expenses include costs incurred for professional and legal fees and certain other transition and integration-related costs. Expenses include employee severance and lease termination costs related to DCPayments acquisition integration in the twelve months ended December 31, 2017. (5) Goodwill and intangible asset impairments related to the Company’s Australia & New Zealand segment. (6) Amounts exclude a portion of the expenses incurred by one of its Mexican subsidiaries to account for the amounts allocable to the noncontrolling interest shareholders. (7) For the three and twelve months ended December 31, 2018, the non-GAAP tax rate used to calculate Adjusted Net Income was 20.9% and 24.1%, respectively, and 28.6% and 27.7% for the three and twelve months ended December 31, 2017, respectively, which represents the Company’s GAAP tax rate as adjusted for the net tax effects related to the items excluded from Adjusted Net Income.

Reconciliation of GAAP Revenue to Constant-Currency Revenue For the Three and Twelve Months Ended December 31, 2018 and 2017 (In thousands, excluding percentages) (Unaudited) Consolidated revenue: Three Months Ended December 31, ------------------------------------------------------------ 2018 2017 % Change ----------------------------- --------- ------------------ Foreign Constant Constant U.S. - U.S. U.S. - GAAP Currency Currency GAAP GAAP Currency Impact --------- ------- --------- --------- -------- -------- ATM operating revenues $ 314,141 $ 6,572 $ 320,713 $ 346,181 (9.3) % (7.4) % ATM product sales and other revenues 13,756 170 13,926 16,784 (18.0) (17.0) - ------- - ----- - ------- - ------- Total revenues $ 327,897 $ 6,742 $ 334,639 $ 362,965 (9.7) % (7.8) % - ------- - ----- - ------- - -------

Twelve Months Ended December 31, --------------------------------------------------------------------- 2018 2017 % Change ------------------------------------ ----------- ------------------ U.S. Foreign Constant - U.S. U.S. Constant GAAP Currency Currency GAAP GAAP - Impact Currency ----------- ---------- ----------- ----------- -------- -------- ATM operating revenues $ 1,292,930 $ (10,446) $ 1,282,484 $ 1,451,372 (10.9) % (11.6) % ATM product sales and other revenues 52,313 (273) 52,040 56,227 (7.0) (7.4) - --------- - -------- - --------- - --------- Total revenues $ 1,345,243 $ (10,719) $ 1,334,524 $ 1,507,599 (10.8) % (11.5) % - --------- - -------- - --------- - ---------

Reconciliation of Gross Profit Inclusive of Depreciation, Accretion, and Amortization of Intangible Assets to Adjusted Gross Profit For the Three and Twelve Months Ended December 31, 2018 and 2017 (In thousands, excluding percentages) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, -------------------- ------------------------ 2018 2017 2018 2017 --------- --------- ----------- ----------- Total revenues $ 327,897 $ 362,965 $ 1,345,243 $ 1,507,599 Total cost of revenues (1) 218,563 234,902 897,783 999,120 Total depreciation, accretion, and amortization of intangible 36,579 36,093 145,716 148,004 assets excluded from total cost of revenues - ------- - ------- - --------- - --------- Gross profit inclusive of depreciation, accretion, and $ 72,755 $ 91,970 $ 301,744 $ 360,475 amortization of intangible assets Gross Margin (inclusive of depreciation, accretion, and 22.2% 25.3% 22.4% 23.9% amortization of intangible assets) Total depreciation, accretion, and amortization of intangible $ 36,579 $ 36,093 $ 145,716 $ 148,004 assets excluded from gross profit - ------- - ------- - --------- - --------- Adjusted Gross Profit exclusive of depreciation, accretion, $ 109,334 $ 128,063 $ 447,460 $ 508,479 and amortization of intangible assets - ------- - ------- - --------- - --------- Adjusted Gross Margin (exclusive of depreciation, accretion, 33.3% 35.3% 33.3% 33.7% and amortization of intangible assets)

(1) The Company presents the Total cost of revenues in the Company’s Consolidated Statements of Operations exclusive of depreciation, accretion, and amortization of intangible assets.

Reconciliation of Adjusted EBITDA, Adjusted Net Income, and Adjusted Net Income per diluted share on a Non-GAAP basis to Constant-Currency For the Three and Twelve Months Ended December 31, 2018 and 2017 (In thousands, excluding per share amounts and percentages) (Unaudited) Three Months Ended December 31, --------------------------------------------------------- 2018 2017 % Change --------------------------- -------- ------------------ Non- Foreign Constant Non- Non- Constant GAAP(1) Currency - GAAP(1) GAAP(1) - Impact Currency Currency -------- ------- -------- -------- -------- -------- Adjusted EBITDA $ 68,454 $ 1,548 $ 70,002 $ 89,791 (23.8) % (22.0) % Adjusted Net Income $ 21,725 $ 683 $ 22,408 $ 33,674 (35.5) % (33.5) % Adjusted Net Income per share – diluted (2) $ 0.47 $ 0.01 $ 0.48 $ 0.73 (35.6) % (34.2) %

Twelve Months Ended December 31, -------------------------------------------------------------- 2018 2017 % Change ------------------------------- --------- ------------------ Non- Foreign Constant Non- Non- Constant GAAP(1) Currency - GAAP(1) GAAP(1) - Impact Currency Currency --------- --------- --------- --------- -------- -------- Adjusted EBITDA $ 292,688 $ (3,469) $ 289,219 $ 348,613 (16.0) % (17.0) % Adjusted Net Income $ 99,533 $ (1,406) $ 98,127 $ 138,464 (28.1) % (29.1) % Adjusted Net Income per share – diluted (2) $ 2.14 $ (0.03) $ 2.11 $ 3.00 (28.7) % (29.7) %

(1) As reported on the Company’s Reconciliation of Net (Loss) Income Attributable to Controlling Interests and Available to Common Shareholders to EBITDA, Adjusted EBITDA, and Adjusted Net Income, see Disclosure of Non-GAAP Financial Information in this earnings release for further discussion.(2) Adjusted Net Income per diluted share is calculated by dividing Adjusted Net Income by the weighted average diluted shares outstanding of 46,581,822 and 46,193,914 for the three months ended December 31, 2018 and 2017, respectively, and 46,436,439 and 46,214,715 for the twelve months ended December 31, 2018 and 2017, respectively. Consistent with the positive Adjusted Net Income, the Adjusted Net Income per diluted share amounts have been calculated using the diluted shares outstanding that would have resulted from positive GAAP Net Income.

Reconciliation of Adjusted Free Cash Flow For the Three and Twelve Months Ended December 31, 2018 and 2017 (In thousands) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, ---------------------- ------------------------ 2018 2017 2018 2017 ---------- ---------- ----------- ----------- Net cash provided by operating activities $ 149,620 $ 58,152 $ 334,202 $ 230,587 Restricted cash settlement activity (1) (83,385) (4,544) (109,093) (12,695) - -------- - -------- - --------- - --------- Adjusted net cash provided by operating activities 66,235 53,608 225,109 217,892 Net cash used in investing activities, excluding (33,848) (32,716) (107,205) (144,140) acquisitions (2) - -------- - -------- - --------- - --------- Adjusted free cash flow $ 32,387 $ 20,892 $ 117,904 $ 73,752 - -------- - -------- - --------- - ---------

(1) Restricted cash settlement activity represents the change in the Company’s restricted cash excluding the portion of the change that is attributable to foreign exchange and disclosed as part of the effect of exchange rate changes on cash, cash equivalents, and restricted cash in the Company’s Consolidated Statements of Cash Flows.(2) Capital expenditure amounts include payments made for exclusive license agreements, site acquisition costs, and other assets. Additionally, capital expenditure amounts for one of our Mexican subsidiaries are reflected gross of any noncontrolling interest amounts.

Reconciliation of Estimated Net Income to EBITDA, Adjusted EBITDA, and Adjusted Net Income For the Year Ending December 31, 2019 (In millions, excluding per share amounts) (Unaudited) Estimated Range Full Year 2019 (1) ---------------- Net Income $ 22.4 $ 24.9 Adjustments: Interest expense, net 26.5 27.5 Amortization of deferred financing costs and note discount 13.0 13.0 Income tax expense 15.6 19.6 Depreciation and accretion expense 139.0 141.0 Amortization of intangible assets 49.0 49.0 - ----- - ----- EBITDA $ 265.5 $ 275.0 - ----- - ----- Add Back: Share-based compensation expense 19.5 20.0 - ----- - ----- Adjusted EBITDA $ 285.0 $ 295.0 - ----- - ----- Less: Interest expense, net 26.5 27.5 Depreciation and accretion expense 139.0 141.0 Income tax expense (2) 28.7 30.4 - ----- - ----- Adjusted Net Income $ 90.8 $ 96.1 - ----- - ----- Adjusted Net Income per share – diluted $ 1.94 $ 2.05 - ----- - ----- Weighted average shares outstanding – diluted 46.9 46.9 - ----- - -----

(1) See Disclosure of Non-GAAP Financial Information in this earnings release for definitions of the non-GAAP measures included in this table.(2) Calculated using the Company’s estimated non-GAAP tax rate of approximately 24% as adjusted for items excluded from Adjusted Net Income, see Disclosure of Non-GAAP Financial Information in this earnings release for further discussion.

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