Segment Information

3 Months Ended

Mar. 31, 2013

Segment Information [Abstract]

Segment Information

(16) Segment Information

As of March 31, 2013, the Company's operations consisted of its U.S., U.K., and Other International segments. The Company's operations in Puerto Rico and the U.S. Virgin Islands are included in its U.S. 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 operating performance and compare its results of operations from period to period without regard to financing method 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, loss on disposal of assets, interest expense, certain other non-operating items or other obligations such as capital expenditures.

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:

	Three Months Ended March 31,
	2013		2012
	(In thousands)
Adjusted EBITDA	$	48,526	$	44,484
Less:
Loss on disposal of assets		203		548
Other income		(421)		(77)
Noncontrolling interests		(419)		(410)
Stock-based compensation expense		3,157		2,551
Acquisition-related expenses		2,822		1,087
Other adjustments to selling, general, and administrative expenses		446		—
EBITDA	$	42,738	$	40,785
Less:
Interest expense, net, including amortization of deferred financing costs		5,295		5,585
Income tax expense		5,980		6,146
Depreciation and accretion expense		16,285		13,750
Amortization expense		5,748		5,475
Net income attributable to controlling interests and available to common stockholders	$	9,430	$	9,829

The following tables reflect certain financial information for each of the Company's reporting segments for the three months ended March 31, 2013 and 2012.  

	Three Months Ended March 31, 2013
	U.S.		U.K.		Other International		Eliminations		Total
	(In thousands)
Revenue from external customers	$	157,156	$	29,499	$	11,083	$	—	$	197,738
Intersegment revenues		1,837		—		17		(1,854)		—
Cost of revenues		102,865		23,420		9,238		(1,834)		133,689
Selling, general, and administrative expenses		15,983		2,126		880		—		18,989
Acquisition-related expenses		2,800		—		22		—		2,822
Loss on disposal of assets		183		7		13		—		203
Adjusted EBITDA		43,293		4,399		854		(20)		48,526
Depreciation and accretion expense		10,078		5,076		1,167		(36)		16,285
Amortization expense		5,218		354		176		—		5,748
Interest expense, net, including amortization of deferred financing costs		5,040		173		82		—		5,295
Income tax expense		5,980		—		—		—		5,980
Capital expenditures (1)	$	11,911	$	3,894	$	133	$	(1)	$	15,937

	Three Months Ended March 31, 2012
	U.S.		U.K.		Other International		Eliminations		Total
	(In thousands)
Revenue from external customers	$	157,955	$	25,191	$	7,894	$	—	$	191,040
Intersegment revenues		1,276		—		36		(1,312)		—
Cost of revenues		107,502		20,208		6,009		(1,311)		132,408
Selling, general, and administrative expenses		13,926		1,539		610		—		16,075
Acquisition-related expenses		878		209		—		—		1,087
Loss on disposal of assets		539		2		7		—		548
Adjusted EBITDA		40,347		3,443		695		(1)		44,484
Depreciation and accretion expense		8,507		4,465		783		(5)		13,750
Amortization expense		4,891		548		36		—		5,475
Interest expense, net, including amortization of deferred financing costs		5,333		138		114		—		5,585
Income tax expense		6,146		—		—		—		6,146
Capital expenditures (1)	$	16,129	$	5,068	$	489	$	—	$	21,686

____________

⁽¹⁾ Capital expenditure amounts include payments made for exclusive license agreements and site acquisition. Additionally, capital expenditure amounts for Mexico (included in the Other International segment) are reflected gross of any noncontrolling interest amounts.

Identifiable Assets:

	March 31, 2013		December 31, 2012
	(In thousands)
United States	$	708,173	$	714,110
United Kingdom		113,927		108,894
Other International		28,004		30,066
Eliminations		(91,925)		(84,178)
Total	$	758,179	$	768,892