Global Axcess Corp. reported record financial performance for the first quarter, ended March 31, 2004.
First Quarter 2004 Financial Performance Highlights:
* Revenues increased 14.4% to approximately $2.8 million compared to $2.4 million reported for last year’s first quarter;
* Gross margins rose to 43.7% from 33.2% in the comparable quarter last year, due primarily to the success of the Company’s Branded Cash Program and the successful consolidation of its February acquisition;
* Income from operations was $111,311 compared to a loss from operations of $90,170 posted for the first quarter in 2003; and
* Net Income climbed to $90,170 compared to a net loss of $76,863 reported for the same period last year.
As of March 31, 2004, Global Axcess had approximately $5.78 million in cash and current assets. The Company also had stockholders’ equity of $12.35 million. This compares to $1.24 million in cash and current assets and stockholders’ equity of $1.7 million reported as of March 31, 2003. David Surette, Chief Financial Officer of Global Axcess, stated, “By far, Global Axcess delivered the best first quarter financial performance in its history. Furthermore, the overall improvements to our balance sheet were quite notable. With over $4.5 million in cash in the bank and very strong, positive cash flow resulting from our operating activities, there is no question that we are firmly on pace to achieve yet another record breaking year.”
“We are very pleased with the results of the first quarter. The Company’s record performance is a direct reflection of a series of growth and operational initiatives, including the ongoing success of our Branded Cash Program, which continues to significantly enhance the profitability of our ATM network; two months of financial contribution from the acquisition that we completed in February; and the achievement of broad operational efficiencies across all of our business segments,” added Michael Dodak, Global Axcess’ CEO. “With another key acquisition progressing towards completion and several other potential acquisitions in negotiation, coupled with new product and service offerings just now being brought to market, we anticipate maintaining a very aggressive growth rate over the next several quarters.”
Dodak continued, “During the quarter, we introduced two new programs that we anticipate will add additional revenue going forward — ‘ATMs-Made-Easy’ and the ‘EasyGreen Cash Card.’ ATMs-Made-Easy enables us to add new customers to our growing electronic transaction processing business and the EasyGreen Cash Card program provides employers and distributors nationwide the ability to offer pre-paid debit card services to the 27 million working, ‘un-banked’ population. We look forward with great anticipation to the opportunities ahead.”
Based on current available information, management estimates that year-end 2004 revenues will be in the range of $13.5 million and $14.0 million, representing an increase of more than 35% compared to year-end 2003. Net income is estimated to increase by more than 200% to approximately $1.0 million, up from $310,000 in the previous year. Management expects the number of ATMs in its network to expand by more than 100% in Calendar 2004 and the number of transactions processed on its network to increase by more than 50%. Management anticipates growth to continue from existing operations and the completion of a number of acquisitions in Calendar 2004.
For complete details on Global Axcess latest results visit CardData ([www.carddata.com]).