Segment Information

12 Months Ended

Dec. 31, 2014

Segment Information [Abstract]

Segment Information

(20) Segment Information

As of December 31, 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. During 2013, the U.K. segment was expanded and renamed the Europe segment to include Germany, as a result of the Cardpoint acquisition.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 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:

	For the Years Ended December 31,
	2014		2013		2012
	(In thousands)
Adjusted EBITDA	$	253,936	$	218,842	$	189,533
Less:
Loss on disposal of assets		3,224		2,790		1,787
Other income		(1,616)		(3,150)		(1,830)
Noncontrolling interests (1)		(1,745)		(2,399)		(1,668)
Stock-based compensation expense (2)		16,432		12,290		11,072
Acquisition-related expenses (3)		18,050		15,400		3,332
Other adjustments to cost of ATM operating revenues (4)		—		8,670		—
Other adjustments to selling, general, and administrative expenses (5)		—		505		972
EBITDA	$	219,591	$	184,736	$	175,868
Less:
Interest expense, net, including amortization of deferred financing costs and note discount (2)		33,812		23,086		22,057
Redemption costs for early extinguishment of debt		9,075		—		—
Income tax expense		28,174		42,018		27,009
Depreciation and accretion expense (2)		75,622		68,480		61,499
Amortization of intangible assets		35,768		27,336		21,712
Net income attributable to controlling interests and available to common stockholders	$	37,140	$	23,816	$	43,591

____________

⁽¹⁾ Noncontrolling interests adjustment made such that Adjusted EBITDA includes only the Company’s 51% ownership interest in the Adjusted EBITDA of its Mexico subsidiary.

⁽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⁾ Acquisition-related expenses include nonrecurring costs incurred for professional and legal fees and certain transition and integration-related costs, including contract termination costs and facility exit costs, related to acquisitions.

⁽⁴⁾ Adjustment to cost of ATM operating revenues for the year ended December 31, 2013 is related to a nonrecurring charge for retroactive property taxes on certain ATM locations in the U.K

⁽⁵⁾ Adjustment to selling, general, and administrative expenses in 2013 represents nonrecurring severance related costs associated with management of the Company’s U.K. operation.

The following tables reflect certain financial information for each of the Company's reporting segments for the years ended December 31, 2014, 2013, and 2012:

	For the Year Ended December 31, 2014
	U.S.		Europe		Other International		Eliminations		Total
	(In thousands)
Revenue from external customers	$	722,051	$	292,157	$	40,613	$	—	$	1,054,821
Intersegment revenues		9,567		1,509		81		(11,157)		—
Cost of revenues		474,000		207,213		34,012		(11,177)		704,048
Selling, general, and administrative expenses		88,553		21,795		3,122		—		113,470
Acquisition-related expenses		3,336		14,714		—		—		18,050
Loss on disposal of assets		1,840		1,086		298		—		3,224
Adjusted EBITDA		185,510		64,618		3,791		17		253,936
Depreciation and accretion expense		43,872		27,546		4,259		(55)		75,622
Amortization of intangible assets		24,649		10,449		670		—		35,768
Interest expense, net, including amortization of deferred financing costs and note discount		32,101		1,491		220		—		33,812
Income tax expense		25,020		2,485		669		—		28,174
Capital expenditures (1)	$	57,434	$	46,252	$	6,243	$	(20)	$	109,909

	For the Year Ended December 31, 2013
	U.S.		Europe		Other International		Eliminations		Total
	(In thousands)
Revenue from external customers	$	657,390	$	178,448	$	40,648	$	—	$	876,486
Intersegment revenues		8,319		407		56		(8,782)		—
Cost of revenues		426,635		140,812		36,122		(8,282)		595,287
Selling, general, and administrative expenses		67,890		13,575		3,127		—		84,592
Acquisition-related expenses		8,036		7,333		31		—		15,400
Loss (gain) on disposal of assets		1,626		(123)		1,287		—		2,790
Adjusted EBITDA		183,498		33,580		2,261		(497)		218,842
Depreciation and accretion expense		41,530		22,448		4,582		(80)		68,480
Amortization of intangible assets		21,101		5,541		694		—		27,336
Interest expense, net, including amortization of deferred financing costs		21,494		1,262		330		—		23,086
Income tax expense (benefit)		42,017		(190)		191		—		42,018
Capital expenditures (1)	$	53,023	$	21,745	$	2,434	$	(49)	$	77,153

	For the Year Ended December 31, 2012
	U.S.		Europe		Other International		Eliminations		Total
	(In thousands)
Revenue from external customers	$	626,241	$	117,814	$	36,394	$	—	$	780,449
Intersegment revenues		10,087		—		89		(10,176)		—
Cost of revenues		423,813		93,030		28,909		(9,665)		536,087
Selling, general, and administrative expenses		54,635		7,491		2,970		429		65,525
Acquisition-related expenses		3,207		120		5		—		3,332
Loss on disposal of assets		1,716		61		10		—		1,787
Adjusted EBITDA		168,915		18,256		3,303		(941)		189,533
Depreciation and accretion expense		37,831		19,894		3,768		6		61,499
Amortization of intangible assets		20,088		1,437		187		—		21,712
Interest expense, net, including amortization of deferred financing costs		21,005		647		405		—		22,057
Income tax expense (benefit)		27,069		—		(60)		—		27,009
Capital expenditures (1)	$	62,496	$	21,839	$	8,851	$	(383)	$	92,803

_________

(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:

	December 31, 2014		December 31, 2013		December 31, 2012
	(In thousands)
United States	$	1,127,692	$	931,396	$	714,110
Europe		403,838		341,618		108,894
Other International		28,571		26,452		30,066
Eliminations		(304,311)		(243,263)		(84,178)
Total	$	1,255,790	$	1,056,203	$	768,892