Cardtronics targets growth in key markets, wants to add consumer value

By Lisa Kerner

Charlotte, N.C., Oct. 6 - Cardtronics, Inc. has a two-phase approach to future growth, chief financial officer Chris Brewster said during a presentation at the William Blair & Co. Third Annual Emerging Growth Stock Conference in New York on Tuesday.

The first phase is unit growth, increasing the number of ATM machines in the United States and in select markets internationally. Currently Cardtronics has 33,000 ATMs in four key markets around the world and has long-term contracts with seven out of the top 10 retailers.

Phase-two growth includes outsourcing the company's self-service kiosk operations and bringing more convenience, such as bill payments and stored value, to consumers.

"Our objective as a company is to be the global leader in financial kiosk management and related payment products and network services," Brewster said.

According to Brewster, Cardtronics' revenues are growing and its margins are improving.

Houston-based Cardtronics, the largest non-bank operator of ATMs, said its debt leverage is "friendly" with the bulk due in four years.

Brewster said the company has excess liquidity to tap into if needed.

The company has $24.5 million of debt outstanding under its $175 million revolving credit facility that expires in 2012 plus $6.9 million in letters of credit posted under the facility. Free cash flow for 2009 should total $30 million, according to Brewster.

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