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Global Axcess Corp Announces Second Quarter 2009 Financial Results
- Generated $557,000 of Net Income and EPS of $0.03 for Second Quarter 2009 - - Achieves Adjusted EBITDA of $2.5 Million for First Six Months of 2009 - On Tuesday August 4, 2009, 4:01 pm EDT
JACKSONVILLE, Fla., Aug. 4 /PRNewswire-FirstCall/ -- Global Axcess Corp (OTC Bulletin Board: GAXC; the "Company"), an independent provider of self-service kiosk solutions, today announced the financial results for the second quarter and six months ended June 30, 2009.
Mr. George McQuain, Chief Executive Officer of the Company, stated, "This was a successful quarter for Global Axcess, as we significantly improved our profitability. This is a testament to our focus on long-term, sustainable profitability through our lean operating infrastructure demonstrating the scalability of our business. We remain committed to this strategy for growing our network and our revenues going forward."
The Company reported revenues from continuing operations of $5.4 million for the three-month period ended June 30, 2009 compared to $5.8 million for the three-month period ended June 30, 2008. This 8.1% decrease was partly due from the loss of a distributor's client account which contributed significant transactions and revenue yet contributed only minimally to gross profit. During the quarter, the Company signed two new placement deals and expanded an existing client placement relationship, to add a total of 126 new ATMs. While these agreements did not materially benefit the second quarter, they are expected to contribute to the Company's financial results in the third quarter.
Net income for the second quarter ended June 30, 2009 was $557,000, or $0.03 per share (based on 21.9 and 22.3 million basic and diluted weighted average shares outstanding, respectively), which compares to net income of $450,000, or $0.02 per share (based on 21.0 million basic and diluted weighted average shares outstanding, respectively), for the same period of 2008.
Gross profit from continuing operations was $2.6 million, or 47.6% of revenue, for the three-month period ended June 30, 2009. This compares to $2.6 million, or 44.3% of revenue, for the same period of 2008. The gross margin percentage increased 330 basis points in the year-over-year period primarily due to the decreased cost of revenues resulting from lower fuel costs, lower interest rates and reduced residual payments for the lost distributor's client account. SG&A expenses were $1.3 million, or 24.8% of revenue, for the second quarter 2009 compared to $1.3 million, or 22.4% of revenue, for the same period in 2008. Depreciation and amortization expenses decreased to $484,
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