Global Cash Access Holdings Inc. (GCA, Financial) filed Quarterly Report for the period ended 2010-09-30.
Global Cash Access Holdings Inc. has a market cap of $199.37 million; its shares were traded at around $2.98 with a P/E ratio of 4.45 and P/S ratio of 0.3. Global Cash Access Holdings Inc. had an annual average earning growth of 1.8% over the past 5 years.GCA is in the portfolios of Jim Simons of Renaissance Technologies LLC, Jeremy Grantham of GMO LLC.
ATM revenues for the three and nine months ended September 30, 2010 were $79.7 million and $242.1 million, a decrease of $1.8 million and $10.5 million, or 2.2% and 4.2%, respectively, as compared to the three and nine months ended September 30, 2009. This decrease was primarily due to the continued decline in attendance by patrons to gaming establishments. The number of ATM transactions declined by approximately 0.9 million or 4.3%, while revenue and transaction size per ATM transaction were slightly higher due to a slightly higher average surcharge assessed per ATM transaction and a slightly higher draw per ATM transaction for the three months ended September 30, 2010, as compared to the same period of 2009. The number of ATM transactions declined by approximately 4.3 million, or 6.6%, while revenue per transaction increased slightly on flat ATM transaction size for the nine months ended September 30, 2010 as compared to the same period of 2009.
Check services revenues for the three and nine months ended September 30, 2010 were $6.4 million and $22.0 million, a decrease of $3.1 million and $8.8 million, or 32.6% and 28.6%, respectively, as compared to the three and nine months ended September 30, 2009. This decrease was primarily due to the decrease in number of check services transactions by 0.3 million and 1.2 million, or 20.0% and 24.0%, respectively, largely driven by the loss of customers in this segment. Check services revenues have also been impacted by a long-term trend in which consumers continue to move from physical checks to electronic forms of transactions. As a result of this trend, we expect check services revenues to be lower in 2010 than in 2009.
Costs of revenues (exclusive of depreciation and amortization) for the three and nine months ended September 30, 2010 were $116.1 million and $355.7 million, a decrease of $7.9 million and $35.0 million, or 6.4% and 9.0%, respectively, as compared to the three and nine months ended September 30, 2009. This decrease was primarily due to the decreases in commission-related expenses and interchange charges, which are largely correlated with revenue.
Interest expense, net for the three and nine months ended September 30, 2010 was $3.9 million and $12.4 million, a decrease of $0.5 million and $1.2 million, or 11.4% and 8.8% as compared to the three and nine months ended September 30, 2009. This decrease is primarily due to lower interest rates on lower average outstanding borrowings as well as a lower average draw on the Treasury Services Agreement of $339.9 million and $341.7 million for the three and nine months ended September 30, 2010, as compared to $356.8 million and $369.6 million for the three and nine months ended September 30, 2009. Interest income was also lower due to lower interest rates earned on invested cash balances during the three and nine months ended September 30, 2010, as compared to the three and nine months ended September 30, 2009.
Our principal source of liquidity is cash flows from operating activities, which were $35.0 million and $58.8 million for the nine months ended September 30, 2010 and 2009, respectively. Net income accounted for $17.8 million and $26.3 million for the nine months ended September 30, 2010 and 2009, respectively. Changes in operating assets and liabilities accounted for a net decrease of $6.2 million and an increase of $5.9 million in cash flow from operating activities for the nine months ended September 30, 2010 and 2009, respectively. Non-cash expenses include $23.4 million and $26.5 million for the nine months ended September 30, 2010 and 2009, respectively. The decrease from the first nine months of the last year was due to lower earnings and an increase in settlement receivables due to the switch of processors from VISA to Star on a portion of our transactions.
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Global Cash Access Holdings Inc. has a market cap of $199.37 million; its shares were traded at around $2.98 with a P/E ratio of 4.45 and P/S ratio of 0.3. Global Cash Access Holdings Inc. had an annual average earning growth of 1.8% over the past 5 years.GCA is in the portfolios of Jim Simons of Renaissance Technologies LLC, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:
Credit card cash access and POS debit transaction revenues for the three and nine months ended September 30, 2010 were $60.5 million and $190.5 million, a decrease of $9.2 million and $35.4 million, or 13.2% and 15.7%, respectively, as compared to the three and nine months ended September 30, 2009. This decrease was primarily due to lower credit card usage by patrons at gaming establishments. This had a negative impact on our financial results as revenue generated from a credit card cash access or POS debit transaction is generally more profitable than revenue generated from an ATM transaction. The number of credit card cash access and POS debit transactions declined by approximately 0.3 million and 1.2 million, or 10.7% and 13.2%, respectively, for the three and nine months ended September 30, 2010 as compared to the three and nine months ended September 30, 2009.ATM revenues for the three and nine months ended September 30, 2010 were $79.7 million and $242.1 million, a decrease of $1.8 million and $10.5 million, or 2.2% and 4.2%, respectively, as compared to the three and nine months ended September 30, 2009. This decrease was primarily due to the continued decline in attendance by patrons to gaming establishments. The number of ATM transactions declined by approximately 0.9 million or 4.3%, while revenue and transaction size per ATM transaction were slightly higher due to a slightly higher average surcharge assessed per ATM transaction and a slightly higher draw per ATM transaction for the three months ended September 30, 2010, as compared to the same period of 2009. The number of ATM transactions declined by approximately 4.3 million, or 6.6%, while revenue per transaction increased slightly on flat ATM transaction size for the nine months ended September 30, 2010 as compared to the same period of 2009.
Check services revenues for the three and nine months ended September 30, 2010 were $6.4 million and $22.0 million, a decrease of $3.1 million and $8.8 million, or 32.6% and 28.6%, respectively, as compared to the three and nine months ended September 30, 2009. This decrease was primarily due to the decrease in number of check services transactions by 0.3 million and 1.2 million, or 20.0% and 24.0%, respectively, largely driven by the loss of customers in this segment. Check services revenues have also been impacted by a long-term trend in which consumers continue to move from physical checks to electronic forms of transactions. As a result of this trend, we expect check services revenues to be lower in 2010 than in 2009.
Costs of revenues (exclusive of depreciation and amortization) for the three and nine months ended September 30, 2010 were $116.1 million and $355.7 million, a decrease of $7.9 million and $35.0 million, or 6.4% and 9.0%, respectively, as compared to the three and nine months ended September 30, 2009. This decrease was primarily due to the decreases in commission-related expenses and interchange charges, which are largely correlated with revenue.
Interest expense, net for the three and nine months ended September 30, 2010 was $3.9 million and $12.4 million, a decrease of $0.5 million and $1.2 million, or 11.4% and 8.8% as compared to the three and nine months ended September 30, 2009. This decrease is primarily due to lower interest rates on lower average outstanding borrowings as well as a lower average draw on the Treasury Services Agreement of $339.9 million and $341.7 million for the three and nine months ended September 30, 2010, as compared to $356.8 million and $369.6 million for the three and nine months ended September 30, 2009. Interest income was also lower due to lower interest rates earned on invested cash balances during the three and nine months ended September 30, 2010, as compared to the three and nine months ended September 30, 2009.
Our principal source of liquidity is cash flows from operating activities, which were $35.0 million and $58.8 million for the nine months ended September 30, 2010 and 2009, respectively. Net income accounted for $17.8 million and $26.3 million for the nine months ended September 30, 2010 and 2009, respectively. Changes in operating assets and liabilities accounted for a net decrease of $6.2 million and an increase of $5.9 million in cash flow from operating activities for the nine months ended September 30, 2010 and 2009, respectively. Non-cash expenses include $23.4 million and $26.5 million for the nine months ended September 30, 2010 and 2009, respectively. The decrease from the first nine months of the last year was due to lower earnings and an increase in settlement receivables due to the switch of processors from VISA to Star on a portion of our transactions.
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