Segment Information

6 Months Ended

Jun. 30, 2014

Segment Information [Abstract]

Segment Information

(15) Segment Information

As of June 30, 2014, the Company's operations consisted of its U.S., Europe, 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 of intangible assets 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 and nonrecurring 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				Six Months Ended
	June 30,				June 30,
	2014		2013		2014		2013
	(In thousands)				(In thousands)
Adjusted EBITDA	$	64,853	$	53,936	$	121,733	$	102,462
Less:
Loss on disposal of assets		316		157		584		360
Other income (1)		(5,261)		(2,050)		(5,230)		(2,471)
Noncontrolling interests		(391)		(536)		(764)		(955)
Stock-based compensation expense (2)		3,692		2,568		6,903		5,725
Acquisition-related expenses		7,642		1,184		10,729		4,006
Other adjustments to selling, general, and administrative expenses (3)		—		—		—		446
EBITDA	$	58,855	$	52,613	$	109,511	$	95,351
Less:
Interest expense, net, including amortization of deferred financing costs and note discount, and redemption cost for early extinguishment of debt		8,789		5,290		17,544		10,585
Income tax expense		8,015		10,034		13,788		16,014
Depreciation and accretion expense		19,597		15,881		37,943		32,166
Amortization of intangible assets		8,465		6,081		16,682		11,829
Net income attributable to controlling interests and available to common stockholders	$	13,989	$	15,327	$	23,554	$	24,757

____________

⁽¹⁾ 2014 amounts include non-recurring settlement gain of $4.8 million.

⁽²⁾ Amounts exclude 49% of the expenses incurred by the Company’s Mexico subsidiary as such amounts are allocable to the noncontrolling interest stockholders.

⁽³⁾ Adjustment relates to severance-related costs associated with the management of the Company’s U.K. operations.

The following tables reflect certain financial information for each of the Company's reporting segments for the three and six months ended June 30, 2014 and 2013

	Three Months Ended June 30, 2014
	U.S.		Europe		Other International		Eliminations		Total
	(In thousands)
Revenue from external customers	$	179,101	$	70,878	$	10,050	$	—	$	260,029
Intersegment revenues		1,816		378		18		(2,212)		—
Cost of revenues		115,025		49,638		8,664		(2,193)		171,134
Selling, general, and administrative expenses		21,976		5,169		781		—		27,926
Acquisition-related expenses		664		6,978		—		—		7,642
Loss on disposal of assets		261		12		43		—		316
Adjusted EBITDA		47,602		16,451		819		(19)		64,853
Depreciation and accretion expense		10,785		7,751		1,075		(14)		19,597
Amortization of intangible assets		5,642		2,651		172		—		8,465
Interest expense, net, including amortization of deferred financing costs and note discount		7,514		508		68		—		8,090
Redemption costs for early extinguishment of debt		699		—		—		—		699
Income tax expense (benefit)		8,524		(509)		—		—		8,015
Capital expenditures (1)	$	13,622	$	10,242	$	1,195	$	(18)	$	25,041

	Three Months Ended June 30, 2013
	U.S.		Europe		Other International		Eliminations		Total
	(In thousands)
Revenue from external customers	$	164,191	$	32,628	$	11,165	$	—	$	207,984
Intersegment revenues		1,816		—		15		(1,831)		—
Cost of revenues		105,242		24,618		9,672		(1,822)		137,710
Selling, general, and administrative expenses		15,838		2,232		862		—		18,932
Acquisition-related expenses		1,177		—		7		—		1,184
Loss (gain) on disposal of assets		120		(12)		49		—		157
Adjusted EBITDA		47,484		5,777		684		(9)		53,936
Depreciation and accretion expense		10,197		4,510		1,189		(15)		15,881
Amortization of intangible assets		5,330		573		178		—		6,081
Interest expense, net, including amortization of deferred financing costs		5,014		183		93		—		5,290
Income tax expense		10,034		—		—		—		10,034
Capital expenditures (1)	$	8,777	$	4,842	$	308	$	(9)	$	13,918

____________

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

	Six Months Ended June 30, 2014
	U.S.		Europe		Other International		Eliminations		Total
	(In thousands)
Revenue from external customers	$	351,293	$	134,922	$	18,886	$	—	$	505,101
Intersegment revenues		3,644		751		34		(4,429)		—
Cost of revenues		228,590		97,758		15,763		(4,408)		337,703
Selling, general, and administrative expenses		41,139		9,761		1,553		—		52,453
Acquisition-related expenses		819		9,910		—		—		10,729
Loss on disposal of assets		511		12		61		—		584
Adjusted EBITDA		92,097		28,155		1,502		(21)		121,733
Depreciation and accretion expense		21,636		14,272		2,063		(28)		37,943
Amortization of intangible assets		11,053		5,287		342		—		16,682
Interest expense, net, including amortization of deferred financing costs and note discount		15,072		990		129		—		16,191
Redemption costs for early extinguishment of debt		1,353		—		—		—		1,353
Income tax expense (benefit)		14,329		(541)		—		—		13,788
Capital expenditures (1)	$	21,484	$	18,847	$	1,442	$	(20)	$	41,753

	Six Months Ended June 30, 2013
	U.S.		Europe		Other International		Eliminations		Total
	(In thousands)
Revenue from external customers	$	321,347	$	62,127	$	22,248	$	—	$	405,722
Intersegment revenues		3,653		—		32		(3,685)		—
Cost of revenues		208,107		48,038		18,910		(3,656)		271,399
Selling, general, and administrative expenses		31,821		4,358		1,742		—		37,921
Acquisition-related expenses		3,977		—		29		—		4,006
Loss (gain) on disposal of assets		303		(5)		62		—		360
Adjusted EBITDA		90,777		10,176		1,538		(29)		102,462
Depreciation and accretion expense		20,275		9,586		2,356		(51)		32,166
Amortization of intangible assets		10,548		927		354		—		11,829
Interest expense, net, including amortization of deferred financing costs		10,054		356		175		—		10,585
Income tax expense		16,014		—		—		—		16,014
Capital expenditures (1)	$	20,688	$	8,736	$	441	$	(10)	$	29,855

____________

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

Identifiable Assets:

	June 30, 2014		December 31, 2013
	(In thousands)
United States	$	944,072	$	931,396
Europe		364,012		341,618
Other International		28,998		26,452
Eliminations		(265,542)		(243,263)
Total	$	1,071,540	$	1,056,203