International edition
September 28, 2020

To US$ 137.8 million

Global Cash Access revenue decreased 7.4 % in 4Q

(US). - Global Cash Access announced financial results for the quarter and fiscal year ended December 31, 2010. Revenue was US$ 137.8 million, a decrease of 7.4% over the US$ 148.8 million in revenue recorded in the same quarter last year.

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evenue during the quarter was adversely impacted by the continued weakness in the gaming sector and consumer revolving credit. Operating income was US$ 10.1 million, a decrease of 37.2% over the US$ 16.0 million recognized in the prior year's fourth quarter.

Earnings before interest, taxes, depreciation and amortization ("EBITDA") were US$ 13.8 million, a decrease of 32.0% compared to the same period in the prior year's fourth quarter. Income from continuing operations before income tax provision in the fourth quarter of 2010 was US$ 6.1 million, down 47.6% from the fourth quarter of 2009.

Diluted earnings per share from continuing operations were US$ 0.00 in the fourth quarter of 2010 (on US$ 64.2 million diluted shares) as compared to US$ 0.10 in the fourth quarter of 2009 (on US$ 71.4 million diluted shares).

This was a direct result of a onetime increase in the Company's income tax provision. Cash EPS were US$ 0.07 in the fourth quarter of 2010, a 58.8% decrease from the US$ 0.17 reported in the prior year's fourth quarter.

Income tax expense was US$ 6.4 million, an increase of US$ 1.9 million for the quarter ended December 31, 2010 as compared to US$ 4.4 million for the same quarter in 2009. The tax rate for the fourth quarter was effectively 104% compared to 38% for the same quarter in 2009.

The increase in the effective tax rate for the 4Q was primarily the result of the Company repatriating funds that had been accumulating in its foreign subsidiaries and re-evaluating the firm's ability to realize the foreign tax credit deferred tax asset and is reversing the US$ 4.3 million deferred tax asset and associated US$ 1.5 million valuation allowance. This change in position relating to foreign tax credits increases the current tax provision by approximately US$ 1.7 million.

These two factors resulted in an aggregate one time increase in our tax provision of approximately US$ 3.8 million.

Fiscal Year 2010 Results

For the year ended December 31, 2010, revenue was US$ 605.6 million, a decrease of 9.0% from the US$ 667.7 million in revenue recorded for fiscal year 2009. Diluted earnings per share from continuing operations were US$ 0.26 a decrease of 42.2% from US$ 0.45 for the fiscal year ended December 31, 2009. Cash EPS were US$ 0.54 for fiscal year 2010, a 25.0% decrease from the US$ 0.72 for fiscal year 2009.

2011 Outlook

As previously announced, the Company estimates that for the fiscal year ending December 31, 2011 cash earnings per share will be between approximately US$ 0.40 and US$ 0.43.

Based upon a tax rate of 40%, which is slightly higher than previously announced, the Company's diluted earnings per share from continuing operations will be between approximately US$ 0.24 and US$ 0.26. The Company estimates that EBITDA for fiscal year 2011 will be between approximately US$ 61 million and US$ 65 million.

The foregoing estimations reflect the following assumptions:

•2011 estimated outlook assumes a slight improvement in the gaming industry in 2011
•An effective tax rate for the full year of approximately 40%
•Cash outlays for capital expenditures of between approximately US$ 7 million and US$ 9 million
•Fully diluted shares outstanding for the full year of between approximately US$ 66 million and US$ 67 million
•Interest expense is based upon an increase in the LIBOR curve from 0.3105 to 1.0450.

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