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The Company reported revenues from continuing operations of approximately $5.8 million for the second quarter ended June 30, 2008, up from the reported revenues of approximately $5.6 million for the same period of 2007. The increase in revenue was mainly due to an increase in surcharge/convenience fees on selected ATMs beginning in the first quarter of 2008. This represented an increase of approximately 4.4% over the second quarter of 2007.
The Company recorded net income for the second quarter ended June 30, 2008 of approximately $450,300, or 2 cents per share, which compares to net income of $170,900 or 1 cent per share for the same period of 2007. Second quarter 2007 net income included $100,000 of bad debt recovery income relating to a settlement of a lawsuit. Excluding the $100,000 bad debt recovery income in the second quarter 2007, net income would have increased $379,400 or 535% over the second quarter of 2007.
The Company achieved gross profit from continuing operations of approximately $2.6 million or 44.3% of revenue for the three-month period ended June 30, 2008. This compared to $2.3 million or 41.6% of revenue for the same period of 2007, or an increase in gross profit dollars of 11.1% over second quarter of 2007. The increase in gross profit and gross profit percentage was mainly due to an increase in surcharge/convenience fees on selected ATMs beginning in the first quarter of 2008 and lower cash costs due to lower interest rates. Second quarter 2008 gross profit represented the highest quarterly gross profit dollars in the Company's history, surpassing the previous high in the first quarter of 2008.
SG&A expenses were approximately $1.3 million, or 22.4% of revenue for the second quarter 2008 versus nearly $1.4 million, or 24.5% of revenue for the same period in 2007.
Depreciation and amortization expenses increased by approximately $11,300 to $570,100 for the three-month period ended June 30, 2008 as compared to $558,800 for the same period in 2007.
During the second quarter of 2008, the Company recorded net interest expense of approximately $216,700. This is compared to net interest expense of approximately $290,900 for the same period in 2007. The decrease was mainly due to a decrease in debt balances. Included in the second quarter 2008 net interest expense was $38,400 of non-cash income relating to the interest swap agreement the Company entered into with its senior lender in October 2005.
The Company's EBITDA (earnings before net interest, taxes, depreciation and amortization) increased to $1,237,100 for the second quarter of 2008 from $1,020,600 for the second quarter of 2007. Excluding the $100,000 income from recovery of bad debts in the second quarter of 2007, EBITDA would have increased $316,500 or 34.4% over the same period in 2007.
EBITDA per share for the second quarter of 2008 was 6 cents compared to EBITDA per share of 5 cents for the second quarter of 2007.
The Company's EBITDA before stock compensation expenses increased to $1,279,500 for the second quarter of 2008 from $1,025,900 for the second quarter of 2007.
EBITDA represents a non-GAAP (Generally Accepted Accounting Principles) financial measure. A table reconciling this measure to the appropriate GAAP measure is included in this release.
Michael J. Loiacono, Chief Financial Officer of the Company, stated, "I am happy to report that we followed a strong first quarter with an even stronger second quarter. Our second quarter results surpassed our internal expectations."
Mr. George McQuain, Chief Executive Officer of the Company, stated, "Our second quarter results have reinforced our ability to perform well in an unstable economy. Our record setting performance is a tribute to our recent turn-around strategies and the way we have positioned the new company to succeed. I remain proud of our employees for their efforts in making the second quarter a record setting quarter for us." -- Global Axcess Corp
Posted August 9th, 2008 by ruzik_tuzik
