Segment Information

12 Months Ended

Dec. 31, 2011

Segment Information [Abstract]

Segment Information

(20)  Segment Information

As of December 31, 2011, the Company's operations consisted of its United States, United Kingdom, and Other International segments. The Company's operations in Puerto Rico and the U.S. Virgin Islands are included in its United States segment. The Other International segment currently is comprised of the Company's operations in Mexico and Canada. While each of these reporting segments provides similar kiosk-based and/or ATM-related services, each segment is currently managed separately as they require different marketing and business strategies.

Management uses Adjusted EBITDA, along with other U.S. GAAP-based measures, to assess the operating results and effectiveness of its segments. Management believes Adjusted EBITDA is a useful measure because it allows management to more effectively evaluate the Company's operating performance and compare its results of operations from period to period without regard to its financing methods or capital structure. The Company excludes depreciation, accretion, and amortization expense as these amounts can vary substantially depending upon book values of assets, capital structures and the method by which the assets were acquired. Additionally, Adjusted EBITDA does not reflect acquisition-related costs and the Company's obligations for the payment of income taxes, interest expense or other obligations such as capital expenditures.

During the year ended December 31, 2010, as a result of certain financing activities, the Company recorded a $7.3 million charge to write off certain unamortized deferred financing costs and bond discounts and a $7.2 million charge associated with the early extinguishment of debt, which the Company has also excluded from Adjusted EBITDA.These charges have been excluded from Adjusted EBITDA as the Company views these charges as non-recurring events that were specifically related to its decision to improve its capital structure and financial flexibility, and are not related to the Company's ongoing operations.Furthermore, management feels the inclusion of such charges in Adjusted EBITDA would not contribute to management's understanding of the operating results and effectiveness of its business.

Adjusted EBITDA, as defined by the Company, may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with U.S. GAAP. In evaluating the Company's performance as measured by Adjusted EBITDA, management recognizes and considers the limitations of this measurement. Accordingly, Adjusted EBITDA is only one of the measurements that management utilizes. Therefore, Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, net income, cash flows from operating, investing, and financing activities or other income or cash flow statement data prepared in accordance with U.S. GAAP.

Below is a reconciliation of Adjusted EBITDA to net income attributable to controlling interests for the years ended December 31, 2011, 2010, and 2009:

	2011			2010			2009
		(In thousands)
Adjusted EBITDA	$	156,307		$	130,819		$	110,373
Less:
Loss on disposal of assets		981			2,647			6,016
Other income		(849	)		(1,004	)		(982	)
Noncontrolling interests		(1,897	)		(1,984	)		(1,281	)
Stock-based compensation expense		9,283			5,998			4,617
Acquisition-related costs		4,747			—			—
Other adjustments to cost of ATM operating revenues		—			—			154
Other adjustments to selling, general, and administrative expenses		—			—			1,463
EBITDA	$	144,042		$	125,162		$	100,386
Less:
Interest expense, net, including amortization of deferred financing costs and bond discounts		21,109			28,658			32,528
Write-off of deferred financing costs and bond discounts		—			7,296			—
Redemption costs for early extinguishment of debt		—			7,193			—
Income tax (benefit) expense		(13,176	)		(17,139	)		4,245
Depreciation and accretion expense		47,962			42,724			39,420
Amortization expense		17,914			15,471			18,916
Net income attributable to controlling interests	$	70,233		$	40,959		$	5,277

The following tables reflect certain financial information for each of the Company's reporting segments. All intercompany transactions between the Company's reporting segments have been eliminated for the purposes of computing the total consolidated amounts:

	For the Year Ended December 31, 2011
	U.S.			U.K.		Other International			Eliminations			Total
	(In thousands)
Revenue from external customers	$	501,439		$	97,665	$	25,472		$	—		$	624,576
Intersegment revenues		4,277			—		111			(4,388	)		—
Cost of revenues		329,782			75,109		19,612			(4,388	)		420,115
Selling, general, and administrative expenses		47,342			5,950		2,290			—			55,582
Acquisition-related expenses		4,747			—		—			—			4,747
Loss (gain) on disposal of assets		791			215		(25	)		—			981
Adjusted EBITDA		137,840			16,554		1,913			—			156,307
Depreciation and accretion expense		28,719			16,194		3,070			(21	)		47,962
Amortization expense		15,985			1,892		37			—			17,914
Interest expense, net		17,144			3,260		705			—			21,109
Income tax benefit		(13,176	)		—		—			—			(13,176	)
Capital expenditures, excluding acquisitions (1)	$	46,154		$	20,478	$	254		$	—		$	66,886

	For the Year Ended December 31, 2010
	U.S.			U.K.		Other International		Eliminations			Total
	(In thousands)
Revenue from external customers	$	423,109		$	82,583	$	26,386	$	—		$	532,078
Intersegment revenues		3,071			—		—		(3,071	)		—
Cost of revenues		280,973			62,386		20,104		(3,071	)		360,392
Selling, general, and administrative expenses		37,598			5,106		1,877		—			44,581
Loss on disposal of assets		1,135			1,305		207		—			2,647
Adjusted EBITDA		113,567			14,966		2,286		—			130,819
Depreciation and accretion expense		27,342			12,541		2,862		(21	)		42,724
Amortization expense		13,517			1,931		23		—			15,471
Interest expense, net		23,598			4,105		955		—			28,658
Write-off of deferred financing costs and bond discounts		7,296			—		—		—			7,296
Redemption costs for early extinguishment of debt		7,193			—		—		—			7,193
Income tax benefit		(17,139	)		—		—		—			(17,139	)
Capital expenditures (1)	$	34,749		$	13,059	$	3,386	$	—		$	51,194

	For the Year Ended December 31, 2009
	U.S.		U.K.		Other International		Eliminations			Total
	(In thousands)
Revenue from external customers	$	401,934	$	73,096	$	18,323	$	—		$	493,353
Intersegment revenues		2,142		—		—		(2,142	)		—
Cost of revenues		281,724		51,419		13,473		(2,142	)		344,474
Selling, general, and administrative expenses		35,434		4,865		1,228		—			41,527
Loss on disposal of assets		2,809		3,106		101		—			6,016
Adjusted EBITDA		93,105		15,418		1,850		—			110,373
Depreciation and accretion expense		26,845		10,799		1,797		(21	)		39,420
Amortization expense		17,127		1,749		40		—			18,916
Interest expense, net		26,893		4,976		659		—			32,528
Income tax expense		4,245		—		—		—			4,245
Capital expenditures (1)	$	16,245	$	6,714	$	5,571	$	—		$	28,530

____________

⁽¹⁾ Capital expenditure amounts include payments made for exclusive license agreements, site acquisition costs, and capital expenditures financed by direct debt. Additionally, capital expenditure amounts for Mexico are reflected gross of any noncontrolling interest amounts.

Identifiable Assets:

	December 31, 2011			December 31, 2010
	(In thousands)
United States	$	675,349		$	419,841
United Kingdom		83,386			70,750
Other International		16,626			17,674
Eliminations		(62,560	)		(52,950	)
Total	$	712,801		$	455,315