Global Cash Access, Inc., a leading supplier of cash access systems and marketing services to the gaming industry, today announced financial results for the quarter and six months ended June 30, 2005.
For the quarter, total revenues were $112.5 million, an increase of 15.1% from $97.7 million recorded in the second quarter of fiscal 2004. Operating income was $21.0 million in the second quarter of 2005, an increase of 40.2% over the same period in 2004. Net income in the second quarter of 2005 was $6.6 million as compared to $214.5 million in the comparable 2004 period. Cash earnings, which reflect the permanent tax benefits resulting from the amortization of "acquired goodwill" were $10.6 million in the second quarter of 2005 as compared to $217.0 million in the second quarter of 2004.
Earnings before interest income, interest expense, income taxes, depreciation and amortization, and minority ownership loss ("EBITDA") was $24.2 million in the second quarter of 2005 as compared to $18.3 million in the comparable 2004 period, an increase of 31.8%.
EBITDA, Adjusted EBITDA and cash earnings are non-GAAP measures of financial performance. Please see the table at the end of this release for a reconciliation of these items to net income.
Income for the second quarter of 2004 was reduced by approximately $4.1 million of expenses related to a legal settlement and other non-recurring expenses. EBITDA in the second quarter of 2004, adjusted for those expenses, was $22.5 million. Second quarter 2005 EBITDA increased 7.5% from Adjusted EBITDA in the second quarter of 2004..
For the first six months of 2005, revenues were $222.1 million, an increase of 13.9% over the same period in 2004. Operating income was $42.8 million, up 29.7%, and EBITDA was $49.4 million, up 24.0%. Net income was $14.0 million in the first half of 2005 as compared to $228.6 million in the first six months of 2005. Cash earnings for the first six months of 2005 were $21.9 million as compared to $231.1 million in the same period of 2004.
Results in the first half of 2004 were reduced by $6.1 million of non-recurring items. Excluding these items, adjusted EBITDA was $45.9 million. First half 2005 EBITDA increased 7.6% from Adjusted EBITDA in the first half of 2004.
"From a financial point of view, the second quarter of 2005 looked much like the first, which is very gratifying," commented Kirk Sanford, President and Chief Executive Officer of GCA. "However, underlying business activity showed an increase in Q2. From a customer perspective, we entered into a first-time contract with Rank Group plc, the largest casino operator in the UK, with the result that we now serve the four largest operators in the UK market. From a product standpoint, we saw increased demand for the 3-in-1 Enabled QuickJack Plus redemption kiosk we have launched with NRT Technology Corporation, and we have received advance orders for our EDITH cashless product from a number of leading casinos in the Las Vegas market and elsewhere."
Highlights of the Quarter
- Revenue of $112.5 million, the highest quarterly total ever recorded by the Company.
- EBITDA of $24.2 million.
- Signed a contract for cash advance services at all Rank Group plc casinos in the UK.
- Signed a contract for Central Credit Check Guarantee services at Mohegan Sun.
- Installed eight 3-in-1 Enabled QuickJack Plus redemption kiosks at the new Wynn Las Vegas.
- Total 3-in-1 Enabled QuickJack Plus installations reached 57 in July 2005.
- Signed contracts with five properties for EDITH.