Global Cash Access reports results

9 May 2008

LAS VEGAS, Nevada -- (PRESS RELEASE) -- Global Cash Access Holdings, Inc. ("GCA" or the "Company") (NYSE:GCA) today announced preliminary, unaudited financial results for the quarter ended March 31, 2008.

Summary Results

For the quarter ended March 31, 2008, revenues were $143.5 million, a decrease of 3.2% over the $148.2 million in revenues recorded in the same quarter last year. Operating income was $18.3 million and income from continuing operations was $6.1 million in the first quarter of 2008. Operating income and income from continuing operations in the prior year equivalent quarter were $22.4 million and $8.6 million, respectively.

The Company formally exited the Arriva business in the first quarter of 2008 and classified those operations as discontinued. The discontinued operating results of Arriva include a pre-tax write-down of approximately $5.5 million recognized in the first quarter of 2008. All prior period financial information has been adjusted to reflect the reclassification of Arriva operations to discontinued operations. Diluted earnings per share from continuing operations were $0.08 compared to $0.11 in the prior year quarter. Cash earnings per share from continuing operations were $0.15 compared to $0.16 in the prior year quarter.

"While we saw declines in revenue primarily driven by the loss of the UK business and the continued underlying weakness in the gaming market suppressed our overall financial performance, we are very pleased with the position the company finds itself in as we move into 2008," commented Scott Betts, President and Chief Executive Officer of GCA. "We continue to enjoy strong cash flow, we have great associates and customers and we believe our competitors are feeling the strains of this market downturn. Our focus for 2008 will continue to be on our key initiatives which will serve to strengthen our position in the market."

Financial Guidance

The Company reported that it expects full-year revenues in 2008 to be between $646 and $664 million, an increase of 8% - 11% over the revenue reported in 2007. Earnings before interest, taxes, depreciation and amortization ("EBITDA") are expected to be between $93 and $100 million. Diluted earnings per share from continuing operations are expected to be between $0.42 and $0.48 per share.

The foregoing expectations reflect the following assumptions:

* An effective tax rate for the full year of approximately 41%;

* Cash outlays for capital expenditures to approximate those amounts disbursed in 2007, and;

* Diluted shares of approximately 77,000,000

The financial guidance is given as of the date hereof and is based on factors and circumstances known to the Company at this time. Such factors and circumstances may change and such changes may have an impact of the Company's financial outlook.

Non-GAAP Financial Information

In order to enhance investor understanding of the underlying trends in our business and to provide for better comparability between periods in different years, the Company is providing EBITDA and Cash Earnings Per Share from Continuing Operations ("Cash EPS") on a supplemental basis. Reconciliations between GAAP measures and non-GAAP measures and between actual results and adjusted results are provided at the end of this press release. EBITDA and Cash EPS are not measures of financial performance under United States Generally Accepted Accounting Principles ("GAAP"). Accordingly, they should not be considered a substitute for net income, operating income or other income or cash flow data prepared in accordance with GAAP. The Company believes that EBITDA and Cash EPS are widely-referenced financial measures in the financial markets. The Company believes that referencing EBITDA and Cash EPS is helpful to investors. Not all companies that use these metrics compute them in the same manner.



Related Links
Everi

FEATURED iGAMING SUPPLIERS
casino-city-press
mondogaming-srl
Casino City Press
A leading publisher and distributor of casino and gaming business data and market research reports.
Mondogaming SRL
A leading software provider for sportsbook platforms, projected in the B2B and B2C business
igpixel
global-gaming-expo-g2e
Igpixel
Launch your online betting site w/ the latest technologies on IGPIXEL's advanced iGaming platform
Global Gaming Expo (G2E)
The largest gathering of global, commercial and tribal gaming professionals in North America.
casino-web-scripts
Casino Web Scripts
Providing certified casino software & casino games with no monthly fees.Custom development available
Your Guide to 3,577 iGaming Industry Suppliers
ADD YOUR COMPANY   |   ABOUT US     linkedin Twitter Facebook