HOUSTON – Cardtronics, the world’s largest ATM network, reported a 72% decline in third quarter earnings to $12.9 million, due to the absence of $37 million tax gain in the third quarter last year.
Net income for the third quarter of 2011 included a non-recurring $37 million income tax benefit, which related to certain tax reporting and structuring changes the company implemented with respect to its United Kingdom operations in that period.
The company, a key electronic funds transfer switch for credit unions, reported that revenues continued to grow, up 21% to $199 million, for the third quarter, compared to the same period last year.
Cardtronics is a critical EFT services provider for credit unions, with connections to CO-OP Financial Services, Credit Union 24 and ownership of the surcharge-free Allpoint ATM network.
Third quarter highlights include: the acquisition of the assets of ATM Network, a Minnesota-based ATM operator of approximately 6,200 primarily merchant-owned ATMs; the launch of FeeAlert, a new product that enables financial institutions to help their customers save money by steering them toward nearby in-network, surcharge-free ATM; the branding of over 1,350 new ATM locations in the quarter; and the net addition of over 870 new deployed Cardtronics-owned ATMs during the quarter.
For the first three quarters of the year Cardtronics reported a 27% increase in revenues to $550.8 million, and a 48% decline in net income, to $32.4 million.