Global Axcess Corp (OTC Bulletin Board: GAXC; the "Company"), an independent provider of self-service kiosk solutions, today announced the financial results for the third quarter and nine months ended September 30, 2009.
Financial Highlights for the Quarter Ended September 30, 2009
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-- Gross margin increased to 47.5% from 43.4% in the same period last year.
-- Income from continuing operations increased 17% to $623,300 from
$532,700 in the same period last year.
-- Interest expense decreased 42.4% to $147,300 from $255,900 in the same
period last year primarily due to a decrease in debt balances and
refinancing the debt to a lower interest rate.
-- Net income increased 72% to $476,000 from $276,800 in the same period last year.
Financial Highlights for Nine Months Ended September 30, 2009
-- Income from continuing operations increased 30% to $2.1 million from
$1.6 million in the same period last year.
-- Interest expense decreased 34.8% to $509,800 from $782,300 in the same
period last year primarily due to a decrease in debt balances and
refinancing the debt to a lower interest rate.
-- Net cash provided by continuing operating activities increased 52.1% to
$3.3 million compared to net cash provided by continuing operating
activities of $2.1 million in the year-ago period.
-- Adjusted EBITDA increased 5.4% to $3.6 million from $3.5 million in the
year-ago period. -- Net income increased 34.6% to $1.1 million from $839,300 in the same
period last year.
Operational Highlights for the Quarter Ended September 30, 2009
-- Signed a new three-year contract, valued at more than $750,000 per year,
with a national grocery chain that has 400 locations nationwide; the
Company will install, maintain and conduct transaction processing for
ATMs in 51 of their retail outlets.
-- Signed a five-year contract, valued at more than $550,000 per year, with
a new customer that is a regional convenience store chain in the
Southeastern United States, for ATMs at 52 locations. -- Successful roll out of the Company's DVD rental kiosk initiative to 24
sites.
Financial Results
The Company reported revenues from continuing operations of $5.3 million for the three-month period ended September 30, 2009 compared to $5.7 million for the three-month period ended September 30, 2008. This 6.0% decrease was partly due to lower transaction volumes during the summer months and elimination of lower profit ATM locations. The Company typically sees an increase in transaction activity during the summer months, but lower vacation travel and the slower economy reduced the positive seasonal impact. However, as the economy has improved, the Company has seen an increase in transaction volumes beyond the stable core levels, and October's activity surpassed the seasonally stronger June levels. Gross profit from continuing operations was $2.5 million, or 47.5% gross margin, for the third quarter 2009 compared to $2.5 million, or 43.4% gross margin, for the same period of 2008. The gross margin percentage increased 410 basis points in the year-over-year period primarily due to the decreased cost of revenues resulting from lower fuel costs, lower interest rates and reduced residual payments for the distributor's client account.
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