Global Axcess Corp. yesterday reported its 2010 fiscal year and fourth-quarter results, which Michael I. Connolly, co-CEO, called "disappointing."
The Jacksonville, Fla.-based kiosk owner and independent ATM deployer (IAD) recorded a net loss on higher revenue for the 2010 fiscal year, which ended Dec. 31. The IAD reported a net loss of $853,568 compared with a net income of $2.8 million for the same 12-month period in 2009. Revenue, however, increased 5.8 percent to $22.7 million in 2010 compared with $21.5 million for the same period in 2009.
In 2010's fourth quarter, which ended Dec. 31, Global Axcess reported a net loss of $1.19 million compared with a net income of $1.68 million for same three-month period in 2009. Fourth quarter revenue for 2010 was $6.07 million compared with $5.39 million in 2009's fourth quarter.
Connolly said the results were "disappointing and not acceptable." He added, however, that this year's outlook is better. "The outlook for 2011 is positive and, excluding severance and acquisition charges, will show a strong improvement in operating and financial results," he said.
Lock Ireland, Global Axcess' vice chairman of the board of directors and co-CEO, said the board has decided to undertake a number of actions to improve the IAD's performance and profitability.
The company increased ATM surcharge fees on select machines to $2.80 per withdrawal compared with $2.58 prior to the increase. Ireland noted that 2011 surcharge transactions are expected to be 8 percent above fourth-quarter 2010 surcharge transactions.
In addition, Global Axcess is removing DVD kiosks from unprofitable locations at a major grocery store chain and redeploying the machines to maximize kiosk returns. The company's management also is planning to cut jobs in its field-service operations, saving the IAD $80,000 beginning in the first quarter.
Global Axcess' 2011 first-quarter outlook is $5.9 million in ATM revenue and $1.9 million in DVD revenue. "The strategic initiatives we have put in place should increase profitability of our ATM services businesses and accelerate the revenue from the DVD services business in the near term," Ireland said.
Global Axcess operates 5,300 ATMs and DVD kiosks in 43 states.
