Key financial and operational statistics related to the quarter include:

    * Consolidated revenues of $124.6 million, down 2% from the second    quarter of 2008, but up 3% when excluding the impact of negative    foreign currency exchange rate movements  * Revenue growth in excess of 5% on a constant-currency basis for the    Company's core business operations, which include the Company's    domestic company-owned large-account ATM placement and branding    business and the Company's international operations  * Adjusted EBITDA of $27.9 million, up more than 25% from the second    quarter of 2008  * Adjusted Net Income of $6.7 million, up from $2.9 million in the    second quarter of 2008  * Adjusted Net Income Per Share of $0.17, up 113% from $0.08 in the    second quarter of 2008  * GAAP Net Income of $2.5 million compared to a $3.6 million GAAP Net    Loss in the second quarter of 2008  * Free Cash Flow of nearly $20 million, consisting of $25.8 million    of cash provided by operating activities, less $5.8 million of    capital expenditures, enabling the repayment of $24.0 million in    amounts outstanding under the Company's revolving credit facility  * Continued improvements in several key operating metrics versus the    second quarter of 2008:    -- Average number of transacting ATMs increased by 1%    -- Cash withdrawal transactions per ATM per month increased by 5%    -- ATM operating margins increased from 24% of revenues to 31% of       revenues 

Please refer to the "Disclosure of Non-GAAP Financial Information" contained later in this release for definitions of Adjusted EBITDA, Adjusted Net Income, and Free Cash Flow. For additional financial information, including reconciliations to comparable GAAP measures, please refer to the supplemental schedules of selected financial information at the end of this release.

Recent highlights include:

    * The expansion of the Company's relationship with a major bank    branding partner to include an additional 1,300 retail locations    throughout the United States, most of which involve existing    Cardtronics ATMs  * The settlement of outstanding litigation and agreement to terminate    the underlying ATM operating agreement with an existing merchant    involving approximately 270 ATMs  * Execution of an agreement with a major direct bank to provide    surcharge-free ATM access to their 2 million cardholders via    Cardtronics' Allpoint network  * The successful renegotiation and extension of contract terms with a    major bank branding partner covering approximately 880 out of 970    sites previously branded by a financial institution placed into    FDIC receivership  * Execution of agreements with ATM maintenance and armored car    service providers that will result in significant cost savings    during the remainder of 2009 and future years  * The continued transitioning of the Company's ATM portfolio over to    its in-house electronic funds transfer ("EFT") transaction    processing platform.  As of June 30, 2009, the Company was    processing transactions for over 30,000 ATMs, including over 2,500    ATMs in the United Kingdom and 1,800 ATMs in Mexico  * The continued transitioning of the Company's ATMs in the United    Kingdom over to its in-house armored courier operation.  As of    June 30, 2009, this operation was servicing approximately 725 of    the Company's ATMs in that market  * Continued strong liquidity and access to capital, with over    $143 million in available borrowing capacity under the Company's    revolving credit facility with leading financial institutions  * The upgrade by Standard & Poor's ("S&P") of the Company's corporate    credit rating to BB- and the Company's senior-subordinated notes to    B+ due to improved margins and the Company's largely recurring    revenue base. 

"We are extremely pleased with our most recent quarterly results," commented Fred Lummis, Cardtronics' Chairman of the Board and interim Chief Executive Officer. "The generation of a solid increase in profits and cash flows sufficient to pay down nearly half of our outstanding revolver balance clearly demonstrate the stability and resiliency of this business model. Also, the management team has done an outstanding job of laying the foundation for continued earnings growth, resulting in a significant increase in our expected earnings guidance for the remainder of 2009."

SECOND QUARTER RESULTS

For the second quarter of 2009, revenues totaled $124.6 million, representing a 2% decrease from the $127.0 million in revenues generated during the second quarter of 2008. However, excluding the impact of unfavorable foreign currency exchange rate movements, year-over-year revenues increased by 3%. Such increase reflects over 5% growth in the Company's core business operations, including the Company's higher-margin domestic large-account ATM placement, branding and international businesses, offset somewhat by a decline in the Company's lower-margin merchant-owned account base and lower equipment sales as merchants and financial institutions continued to spend less capital in the current economic environment. Although the decline in the Company's merchant-owned account base and equipment sales negatively impacted the year-over-year revenue comparison, the gross profit impact of such declines was negligible.

Adjusted EBITDA totaled $27.9 million for the second quarter of 2009, compared to $22.2 million for the second quarter of 2008, and Adjusted Net Income totaled $6.7 million ($0.17 per diluted share), compared to Adjusted Net Income of $2.9 million ($0.07 per diluted share) for the second quarter of 2008. These increases were primarily attributable to higher gross margin rates in 2009. Key drivers of margin improvement were a more favorable revenue mix, lower vault cash rental costs (due to lower market interest rates) and the results of management's efforts to reduce other operating costs. Specific costs excluded from Adjusted EBITDA and Adjusted Net Income are detailed in a reconciliation included at the end of this press release.

SIX MONTH RESULTS

Revenues totaled $240.0 million for the six months ended June 30, 2009, representing a 3% decrease when compared to the $247.6 million in revenues recorded during the six months ended June 30, 2008. As was the case with the Company's quarterly results, the year-over-year decrease in revenues was primarily attributable to unfavorable foreign currency exchange rate movements, a decline in the Company's merchant-owned account base, and lower overall equipment sales.

Adjusted EBITDA totaled $50.4 million for the six months ended June 30, 2009, representing a 23% increase over the $40.9 million in Adjusted EBITDA for the same period in 2008. Adjusted Net Income totaled $10.1 million ($0.25 per diluted share) for the first six months of 2009, which was higher than the $4.2 million ($0.11 per diluted share) generated during the first six months of 2008. Increases in both Adjusted EBITDA and Adjusted Net Income were primarily due to the same factors as noted above for the Company's quarterly results.

The GAAP net loss for the six months ended June 30, 2009 totaled $2.6 million, compared to a GAAP net loss of $8.5 million during the same period last year. As was the case with the quarterly results, the year-over-year improvement was primarily driven by the same factors outlined above with respect to Adjusted EBITDA.

2009 GUIDANCE

The Company is updating the guidance it previously issued regarding its anticipated full-year 2009 results, and now expects the following:

    * Revenues of $470 million to $480 million;  * Overall gross margins of approximately 28.5% to 29%;  * Adjusted EBITDA of $95 million to $100 million;  * Depreciation and accretion expense of $38 to $39 million;  * Cash interest expense of $29.5 to $30.5 million;  * Adjusted Net Income of $0.40 to $0.50 per diluted share, based on    approximately 42 million diluted shares outstanding (which does not    reflect the potential impact of the Company's share repurchase    program); and  * Capital expenditures of approximately $25 million, net of minority    interest. 

The above guidance excludes the impact of certain one-time items as well as $4.6 million of anticipated stock-based compensation expense and approximately $17.5 million of intangible asset amortization expense. Additionally, the above guidance is based on average foreign currency exchange rates of $1.60 U.S. to GBP 1.00 U.K. and $13.40 Mexican pesos to $1.00 U.S. during 2009. If the recent volatility in foreign currency market continues, specifically with respect to the British pound and Mexican peso, actual results for 2009 could differ materially from the estimates reflected above.

LIQUIDITY AND SHARE REPURCHASE PROGRAM

The Company continues to maintain a very strong liquidity position despite the weaknesses seen in the broader economy and financial markets. The Company's $175.0 million revolving credit facility does not expire until May 2012 and is led by a syndicate of leading banks. As of June 30, 2009, the Company had $24.5 million of debt outstanding under this facility and $6.9 million in letters of credit posted under the facility, leaving $143.6 million in available, committed funding. This reflects a reduction in borrowings outstanding under the facility of over $24.0 million from the March 31, 2009 levels. The Company is currently in compliance with the covenants contained within this facility and would continue to be in compliance even in the event of substantially higher borrowings or substantially lower Adjusted EBITDA amounts. The Company's remaining indebtedness includes $0.6 million of capital leases in the United States, $7.0 million of equipment loans in Mexico, and $297.0 million in senior subordinated notes, net of discount. These fixed rate notes require no amortization prior to their August 2013 maturity date and contain no maintenance covenants and only limited incurrence covenants under which the Company has considerable flexibility.

On July 16, 2009, S&P upgraded the Company's corporate debt rating to BB- and the Company's senior-subordinated notes to B+. These upgrades reflect the relative stability of the Company's transaction volumes and revenues, despite the weak economy, and the continued improvements seen in the Company's overall leverage profile during the past year.

Given the financial flexibility outlined above and the free cash flow expected to be generated by the Company during 2009, in February 2009, the Company's board of directors approved a share repurchase program authorizing up to $10.0 million in share repurchases with an expiration date of March 31, 2010. The Company began executing this repurchase program during the second quarter under a Rule 10b5-1 trading plan. To date, the Company has purchased approximately 35,000 shares of its common stock at a total cost of $0.1 million and at an average price per share of $3.37.

DISCLOSURE OF NON-GAAP FINANCIAL INFORMATION

EBITDA, Adjusted EBITDA, Adjusted Net Income, and Free Cash Flow are non-GAAP financial measures provided as a complement to results prepared in accordance with accounting principles generally accepted within the United States of America and may not be comparable to similarly titled measures reported by other companies. Management believes that the presentation of these measures and the identification of unusual, non-recurring, or non-cash items enhance an investor's understanding of the underlying trends in the Company's business and provide for better comparability between periods in different years.

Adjusted EBITDA excludes depreciation, accretion, and amortization expense as these amounts can vary substantially from company to company within the Company's industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Additionally, Adjusted EBITDA and Adjusted Net Income exclude certain non-recurring or non-cash items and therefore, may not be comparable to similarly titled measures employed by other companies. Free Cash Flow is cash provided by operating activities less payments for capital expenditures. The non-GAAP financial measures presented herein should not be considered in isolation or as a substitute for operating income, net income, cash flows from operating, investing, or financing activities, or other income or cash flow statement data prepared in accordance with GAAP.

A reconciliation of net loss to EBITDA, Adjusted EBITDA, and Adjusted Net Income and a calculation of Free Cash Flow are presented in tabular form at the end of this press release.

REVISION OF PRIOR PERIOD RESULTS

During the second quarter of 2009, the Company identified an error related to certain capitalized costs associated with its United Kingdom operation. Upon analysis of the Company's fixed asset records, management identified certain assets related to previously cancelled ATM sites that should have been expensed in prior periods. The impact of such error was an overstatement of fixed assets and depreciation expense, and an understatement of cost of sales and loss on disposal of assets for the years ended December 31, 2007 and 2008, including the related quarterly periods contained therein. The cumulative effect of the error was an increase in reported net losses in the years 2007 and 2008 by a total of $1.7 million. In accordance with Staff Accounting Bulletin No. 108 ("SAB 108"), as issued by the Securities and Exchange Commission ("SEC"), management determined that the effects of the misstatement were not material to any previously reported quarterly or annual period. As such, the related corrections will be made to the applicable prior periods as such financial information is included in future filings with the SEC. The Company's prior period results reported herein have been revised to reflect these adjustments, the effects of which have been summarized below.