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Global Cash Access Holdings Inc. (GCA) filed Quarterly Report for the period ended 2011-09-30.
Global Cash Access Holdings has a market cap of $217.3 million; its shares were traded at around $3.36 with a P/E ratio of 9.3 and P/S ratio of 0.4.
This is the annual revenues and earnings per share of GCA over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of GCA.
Highlight of Business Operations:
Total revenues for the three and nine months ended September 30, 2011 were $136.9 million and $406.3 million, respectively, a decrease of $15.2 million and $61.5 million, or 10% and 13%, respectively, as compared to the three and nine months ended September 30, 2010. The primary driver of the decreased revenue for the three and nine months ended September 30, 2011 was the decline in revenue due to the lost business from Caesars. Revenue from Caesars for the three and nine months ended September 30, 2010 was approximately $21.3 million and $64.3 million, respectively. Exclusive of the Caesars related revenue, the Company’s base revenue increased by $5.8 million and $1.6 million for the three and nine months ended September 30, 2011 due to the addition of revenue derived from several new customers and a stabilization of revenue derived from our existing portfolio of customers.Cash advance revenues for the three and nine months ended September 30, 2011 were $50.9 million and $152.0 million, a decrease of $9.6 million and $38.5 million, or 16% and 20%, respectively, as compared to the three and nine months ended September 30, 2010. The number of cash advance transactions declined by approximately 0.4 million and 1.6 million, or 16% and 20%, respectively, which is primarily due to the lost business from Caesars. The cash advance revenue from the lost business from Caesars accounted for approximately $9.9 million and $30.1 million, respectively, of the decrease in revenues during the three and nine months ended September 30, 2011. Cash advance revenues for the three months ended September 30, 2011, adjusted for the lost business of Caesars, were up 0.6% as compared to cash advance revenues for the three months ended September 30, 2010. Cash advance revenues for the nine months ended September 30, 2011, adjusted for the lost business of Caesars, were down 5.3% as compared to cash advance revenues for the nine months ended September 30, 2010 due primarily to the lower volume of cash advance transactions.
ATM revenues for the three and nine months ended September 30, 2011 were $71.0 million and $213.5 million, a decrease of $8.7 million and $28.6 million, or 11% and 12%, respectively, as compared to the three and nine months ended September 30, 2010. The number of ATM transactions declined by approximately 2.8 million and 8.4 million, or 14% for both periods, respectively, which is primarily due to the lost business of Caesars. The ATM revenues from the lost business of Caesars, for the three and nine months ended September 30, 2011, accounted for approximately $11.1 million and $32.8 million, respectively. ATM revenue per transaction for the three and nine months ended September 30, 2011 was $4.18 and $4.10, slightly up by $0.14 and $0.09, or 3.5% and 2.4%, respectively, as compared to the three and nine months ended September 30, 2010. ATM revenues for the three and nine months ended September 30, 2011, adjusted for the lost business of Caesars, were up approximately 3.5% and 1.9%, respectively, as compared to the ATM revenues for the three and nine months ended September 30, 2010.
Other revenues for the three and nine months ended September 30, 2011 were $8.5 million and $21.0 million, an increase of $3.1 million and $7.9 million, or 56% and 61%, respectively, due primarily to the revenues generated by Western Money included in the results of operations for the three and nine months ended September 30, 2011, but not included in the first four months of 2010. Western Money was acquired in May 2010.
Costs of revenues (exclusive of depreciation and amortization) for the three and nine months ended September 30, 2011 were $107.0 million and $317.9 million, a decrease of $9.1 million and $37.8 million, or 8% and 11%, respectively, as compared to the three and nine months ended September 30, 2010. This decrease was primarily due to the loss of the Caesars contract discussed previously. However, due to significant competitive market pressures and increases in the network associations fees and expenses, both commissions and interchange rates have increased over the past year. Due primarily to these two issues, the operating margin for the Company has declined from 8.8% and 9.1% for the three and nine months ended September 30, 2010 to 5.6% and 5.9% for the same periods in 2011.
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