Global Cash Access Holdings Inc. (GCA) filed Quarterly Report for the period ended 2009-09-30.
Global Cash Access Holdings Inc. has a market cap of $494.8 million; its shares were traded at around $6.84 with a P/E ratio of 9.5 and P/S ratio of 0.8.
Highlight of Business Operations:Total revenues for the three months ended September 30, 2009 were $164.3 million, a decrease of $20.8 million or 11% compared to the equivalent period in the prior year. Total revenue for the nine months ended September 30, 2009 were $519.0 million, an increase of $24 million, or 5%, compared to the equivalent period in the prior year. The primary driver of decreased revenue in the three month period ended September 30, 2009 compared to the same period in the prior year was a same store revenue decline of approximately 13%. This decline was somewhat offset by the inclusion of the operating results of CSI for the month of July in 2009 as the acquisition of CSI closed at the beginning of August 2008. We also experienced a net loss of customers during the quarter resulting in a modest decline in revenue on a year over year basis. Revenue increased on a year over year basis during the nine months in the period ended September 30, 2009 primarily due to the acquisitions of CGS and CSI which were acquired in April and August of 2008, respectively. The revenue contributed by these acquisitions has been partially offset by a same-store decline of approximately 12% during nine months ended September 30, 2009 as compared to the same period of 2008.
We continue to incur high external legal expenses driven by various litigation matters that are ongoing or concluded during the three months ended September 30, 2009. External legal expenses approximated $1.4 and $3.7 million for the three and nine months ended September 30, 2009, respectively.
Interest income (expense), net decreased by 42% and 36% for the three and nine months ended September 30, 2009, respectively, as compared to the same period in 2008 as a result of a decrease in interest expense due to significantly lower interest rates compared to the prior period moderated by higher average outstanding borrowings and a higher average draw on the Bank of America Amended ATM Treasury Services Agreement (Bank of America ATM Agreement). The average balances drawn on this agreement were $356.8 million and $369.7 million for the three and nine months ended September 30, 2009 as compared to $352.5 million and $310.7 million for the same period in 2008. Interest income was also lower resulting primarily from lower invested cash balances and lower interest rates earned on invested cash balances during the quarter and year to date periods.
We provide cash settlement services to our customers. These services involve the movement of funds between the various parties associated with cash access transactions, and this activity results in a balance due to us at the end of each business day that we recoup over the next few business days. The balances due to us are included in settlement receivables. As of September 30, 2009, approximately $4.2 million was due to us, and we received these funds in early October 2009. This receivable declined significantly compared to prior periods as the funding cycle of our new processor is significantly shorter than that of our previous processor resulting in lower receivable balances. As of September 30, 2009, we had approximately $36.5 million in settlement liabilities due to our customers for these settlement services which were paid in early October 2009.
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