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Global Axcess Corp Announces Record Second Quarter 2008 Financial Results
2008-08-06 15:30:00
Global Axcess Corp Announces Record Second Quarter 2008 Financial Results
- Generated Record $450,300 of Net Income and EPS of $.02 for 2nd Quarter
2008 -
- Achieved highest quarterly gross profit dollars in Company history -
- Achieved highest quarterly EBITDA and EBITDA per share in Company history
-
- Achieved highest quarterly operating income in Company history -
JACKSONVILLE, Fla., Aug. 6 /EMWNews/ -- Global Axcess Corp
(OTC Bulletin Board: GAXC) (the "Company"), an independent provider of ATM
solutions, today announced the financial results for the second quarter
ended June 30, 2008.
The Company reported revenues from continuing operations of
approximately $5.8 million for the second quarter ended June 30, 2008, up
from the reported revenues of approximately $5.6 million for the same
period of 2007. The increase in revenue was mainly due to an increase in
surcharge/convenience fees on selected ATMs beginning in the first quarter
of 2008. This represented an increase of approximately 4.4% over the second
quarter of 2007.
The Company recorded net income for the second quarter ended June 30,
2008 of approximately $450,300, or 2 cents per share, which compares to net
income of $170,900 or 1 cent per share for the same period of 2007. Second
quarter 2007 net income included $100,000 of bad debt recovery income
relating to a settlement of a lawsuit. Excluding the $100,000 bad debt
recovery income in the second quarter 2007, net income would have increased
$379,400 or 535% over the second quarter of 2007.
The Company achieved gross profit from continuing operations of
approximately $2.6 million or 44.3% of revenue for the three-month period
ended June 30, 2008. This compared to $2.3 million or 41.6% of revenue for
the same period of 2007, or an increase in gross profit dollars of 11.1%
over second quarter of 2007. The increase in gross profit and gross profit
percentage was mainly due to an increase in surcharge/convenience fees on
selected ATMs beginning in the first quarter of 2008 and lower cash costs
due to lower interest rates. Second quarter 2008 gross profit represented
the highest quarterly gross profit dollars in the Company's history,
surpassing the previous high in the first quarter of 2008.
SG&A expenses were approximately $1.3 million, or 22.4% of revenue for
the second quarter 2008 versus nearly $1.4 million, or 24.5% of revenue for
the same period in 2007.
Depreciation and amortization expenses increased by approximately
$11,300 to $570,100 for the three-month period ended June 30, 2008 as
compared to $558,800 for the same period in 2007.
During the second quarter of 2008, the Company recorded net interest
expense of approximately $216,700. This is compared to net interest expense
of approximately $290,900 for the same period in 2007. The decrease was
mainly due to a decrease in debt balances. Included in the second quarter
2008 net interest expense was $38,400 of non-cash income relating to the
interest swap agreement the Company entered into with its senior lender in
October 2005.
The Company's EBITDA (earnings before net interest, taxes, depreciation
and amortization) increased to $1,237,100 for the second quarter of 2008
from $1,020,600 for the second quarter of 2007. Excluding the $100,000
income from recovery of bad debts in the second quarter of 2007, EBITDA
would have increased $316,500 or 34.4% over the same period in 2007.
EBITDA per share for the second quarter of 2008 was 6 cents compared to
EBITDA per share of 5 cents for the second quarter of 2007.
The Company's EBITDA before stock compensation expenses increased to
$1,279,500 for the second quarter of 2008 from $1,025,900 for the second
quarter of 2007.
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.
Michael J. Loiacono, Chief Financial Officer of the Company, stated, "I
am happy to report that we followed a strong first quarter with an even
stronger second quarter. Our second quarter results surpassed our internal
expectations."
Mr. George McQuain, Chief Executive Officer of the Company, stated,
"Our second quarter results have reinforced our ability to perform well in
an unstable economy. Our record setting performance is a tribute to our
recent turn-around strategies and the way we have positioned the new
company to succeed. I remain proud of our employees for their efforts in
making the second quarter a record setting quarter for us."
Conference Call Information
The conference call will take place at 10:00 a.m. Eastern, on Thursday,
August 7, 2008. Anyone interested in participating should call (800)
829-9048 and enter pass code 6241368 if calling within the United States,
or (913) 312-0392 and pass code 6241368 if calling internationally,
approximately 5 to 10 minutes prior to 10:00 a.m. There will be a playback
available until August 14, 2008. 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 6241368 for the replay.
The call is being webcast as well and can be accessed at the Company's
website at http://www.globalaxcess.biz . The webcast will be archived and
available through November 7, 2008.
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 ATM
services in the United States. Through its wholly owned subsidiary,
Nationwide Money Services, Inc. ("NMS"), the Company provides turnkey ATM
management solutions that include cash, project and account management
services. NMS currently owns and operates approximately 4,300 ATMs in its
national network spanning 44 states. For more information on the Company,
please visit http://www.globalaxcess.biz .
Investor Relations Contact:
Sharon Jackson, 904-395-1149
[email protected]
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-KSB,
filed with the Securities and Exchange Commission on March 05, 2008, 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.
GLOBAL AXCESS CORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
June 30, 2008
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 788,529
Accounts receivable, net of allowance
for doubtful accounts of $13,568 1,042,192
Inventory 360,666
Prepaid expenses and other current assets 182,216
Total current assets 2,373,603
Fixed assets, net 5,164,202
Other assets
Merchant contracts, net 11,701,887
Intangible assets, net 4,141,641
Deferred tax asset - non-current 339,800
Other assets 9,219
Total assets $23,730,352
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities $2,869,699
Notes payable - related parties -
current portion, net 19,821
Senior lenders' notes payable -
current portion, net 606,223
Capital lease obligations - current portion 801,229
Total current liabilities 4,296,972
Long-term liabilities
Notes payable - related parties - long-
term portion, net 1,313,713
Senior lenders' notes payable - long-term
portion, net 4,466,265
Capital lease obligations - long-term
portion 834,670
Total liabilities 10,911,620
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, 20,973,924 outstanding 21,022
Additional paid-in capital 22,575,608
Accumulated deficit (9,765,932)
Treasury stock; 47,862 shares of common
stock at cost (11,966)
Total stockholders' equity 12,818,732
Total liabilities and stockholders' equity $23,730,352
GLOBAL AXCESS CORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the Three Months Ended
June 30, 2008 June 30, 2007
Revenues $5,845,128 $5,596,210
Cost of revenues 3,258,602 3,267,497
Gross profit 2,586,526 2,328,713
Operating expenses
Depreciation expense 377,553 382,447
Amortization of intangible merchant
contracts 192,538 176,326
Selling, general and administrative 1,307,031 1,373,174
Impairment of notes receivable - 5,743
Recovery of bad debts - (100,000)
Stock compensation expense 42,376 5,330
Total operating expenses 1,919,498 1,843,020
Operating income from continuing operations
before items shown below 667,028 485,693
Interest expense, net (216,738) (290,909)
Loss on disposal of assets - (23,877)
Income from continuing operations $450,290 $170,907
Net Income $450,290 $170,907
Income per common share - basic:
Income from continuing operations $ 0.02 $ 0.01
Net Income per common share $ 0.02 $ 0.01
Income per common share - diluted:
Income from continuing operations $ 0.02 $ 0.01
Net Income per common share $ 0.02 $ 0.01
Weighted average common shares outstanding:
Basic 20,973,924 20,984,443
Diluted 20,979,768 20,984,443
GLOBAL AXCESS CORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the Six Months Ended
June 30, 2008 June 30, 2007
Revenues $11,373,488 $10,867,200
Cost of revenues 6,378,646 6,362,171
Gross profit 4,994,842 4,505,029
Operating expenses
Depreciation expense 779,257 752,973
Amortization of intangible merchant
contracts 384,329 353,941
Selling, general and administrative 2,620,406 2,758,459
Impairment of notes receivable - 5,743
Recovery of bad debts - (100,000)
Stock compensation expense 122,024 5,330
Total operating expenses 3,906,016 3,776,446
Operating income from continuing operations
before items shown below 1,088,826 728,583
Interest expense, net (526,381) (608,440)
Loss on disposal of assets - (23,017)
Income from continuing operations $562,445 $97,126
Income from discontinued operations, net
of tax $- $175,000
Net Income $562,445 $272,126
Income per common share - basic:
Income from continuing operations $ 0.03 $-
Income from discontinued operations $- $ 0.01
Net Income per common share $ 0.03 $ 0.01
Income per common share - diluted:
Income from continuing operations $ 0.03 $-
Income from discontinued operations $- $ 0.01
Net Income per common share $ 0.03 $ 0.01
Weighted average common shares outstanding:
Basic 20,973,924 21,003,011
Diluted 20,973,924 21,003,011
GLOBAL AXCESS CORP AND SUBSIDIARIES
EBITDA Reconciliation
(Unaudited)
For the Three Months Ended
June 30, 2008 June 30, 2007
Net income $450,290 $170,907
Interest expense, net 216,738 290,909
Depreciation expense 377,553 382,447
Amortization of intangible merchant contracts 192,538 176,326
EBITDA $1,237,119 $1,020,589
EBITDA per common share $0.06 $0.05
For the Six Months Ended
June 30, 2008 June 30, 2007
Net income $562,445 $272,126
Interest expense, net 526,381 608,440
Depreciation expense 779,257 752,973
Amortization of intangible merchant contracts 384,329 353,941
EBITDA $2,252,412 $1,987,480
EBITDA per common share $0.11 $0.09
GLOBAL AXCESS CORP AND SUBSIDIARIES
EBITDA before Stock Compensation Expense Reconciliation
(Unaudited)
For the Three Months Ended
June 30, 2008 June 30, 2007
Net income $450,290 $170,907
Interest expense, net 216,738 290,909
Depreciation expense 377,553 382,447
Amortization of intangible merchant contracts 192,538 176,326
Stock compensation expense 42,376 5,330
EBITDA before Stock Compensation Expense $1,279,495 $1,025,919
EBITDA before Stock Compensation per common
share $0.06 $0.05
For the Six Months Ended
June 30, 2008 June 30, 2007
Net income $562,445 $272,126
Interest expense, net 526,381 608,440
Depreciation expense 779,257 752,973
Amortization of intangible merchant contracts 384,329 353,941
Stock compensation expense 122,024 5,330
EBITDA before Stock Compensation Expense $2,374,436 $1,992,810
EBITDA before Stock Compensation per common
share $0.11 $0.09
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