DDIFO Sponsor Access to Money, Inc. (OTC Bulletin Board: AEMI), one of the largest providers and non-bank operators of ATMs in the United States, reports its financial results for the first quarter ended March 31, 2010.

Highlights for the First Quarter 2010:

• Net sales for first quarter 2010 were $7.6 million compared to $7.3 million in the first quarter of 2009
• Operating income for first quarter 2010 was $728,000 compared to $847,000 in the first quarter of 2009
• Net loss for first quarter 2010 was $716,000, or $0.03 per share, compared with a net loss of $597,000 or $0.03 per diluted share in the first quarter of 2009
• Adjusted EBITDA was $1.3 million compared with $1.3 million in the first quarter 2009
• Transaction-based sales were $20.2 million for the quarter compared with $20.8 million for last year’s first quarter
• Average gross sale per withdrawal transaction was $2.46 for the quarter compared with $2.39 a year ago
• Average commission per withdrawal transaction for the first quarter was $1.78 compared with $1.72
• Average net sale per withdrawal was $0.68 compared to $0.67 a year ago
• Average number of transacting machines was 10,983 compared with 11,425 in the year-ago quarter
• Final payment of note payable to Notemachine was made on March 1, 2010, providing approximately $120,000 per month of free cash flow going forward

 

Richard Stern, President and CEO of Access to Money said, “We continued to display strong results, posting another solid quarter of positive Adjusted EBITDA and operating profits.  This was especially encouraging given the adverse winter weather conditions that affected much of the Eastern portion of the country, and the negative impact caused by one of our armored car providers which was forced out of business due to alleged illegal activities.  The effect of this caused approximately 365 ATMs to be out of service for several weeks during the quarter.  The reduction in transacting ATM numbers was the result of our selective removal of lower performing, unprofitable ATMs and normal attrition.”

“We continued to deploy ATMs equipped with the Select-A-Branch technology pursuant to our exclusive distribution agreement.  The machines continue to generate significant increases in transactions.  Based upon the demonstrable success of this surcharge-free program, we are rolling out an additional test market of 60 machines during the second quarter.  We believe the positive results we have achieved thus far with Select-a-Branch can be replicated, and we look forward to capitalizing on the expansion of this program,” he continued.  “Our agreement with Dunkin’ Donuts is also proceeding well and according to plan, having placed approximately 90 new ATMs with franchisees.  Including the Dunkin’ Donuts program, the total amount of ATM equipment sales this quarter increased to $1.3 million from $363,000 in the first quarter of 2009.”  

Mr. Stern added, “Although we are pleased with the progress we are making with our national sales efforts, our master agreement with Cumberland Farms to supply ATMs to all of its stores recently expired.  While we have been in discussions regarding renewal, it is now apparent that the agreement will not be renewed.  Therefore, we expect a reduction in the number of ATMs currently operating in Cumberland Farms stores over the next six to twelve months.  If we are unable to replace these expiring transacting units with new business, our financial results for future periods would be adversely affected.”

“The student loan business, which we entered in late 2009, was strengthened by our recent agreement with People Capital.  I am pleased to report that system integration is expected to be completed within the next few weeks, which will allow us to be fully operational in time for the peak student lending season.  With People Capital as our strategic partner, we will be able to offer a more robust student loan solution to our customers,” he added.

Mr. Stern concluded, “Our focus will continue to be on strengthening the company and identifying complementary business lines and partners in order to position the company for growth, profitability and Adjusted EBITDA improvements.”