Cardtronics uses cash flow to fund capex, growth while delevering

By Jennifer Lanning Drey

Portland, Ore., May 24 - Cardtronics, Inc. has used its cash flow to fund capital expenditures and unit growth over the last 12 months while at the same time significantly delevering the balance sheet, Chris Brewster, its chief financial officer, said during a Monday presentation at the Bank of America Merrill Lynch Services Conference in New York.

Cardtronics has reduced its leverage ratio from a peak of roughly 5 to 1 at the end of 2007 to 2.5-to-1 at the end of the first quarter, he said.

Looking forward, the company has compelling growth opportunities due to the nature of its business model, which provides for both domestic and international growth, Steven Rathbagger, Cardtronics' chief executive officer, said during the call.

"We have growth strategies that will drive our business forward, and there's multiple growth planks that all have good runway in front of them," Rathbagger said.

Cardtronics' revenue-growth drivers include increasing unit counts and transactions per unit as well as developing new revenue streams, Brewster said.

Cardtronics is a Houston-based non-bank operator of ATMs.

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