LAS VEGAS--(BUSINESS WIRE)--Feb. 26, 2009-- Global Cash Access Holdings, Inc. (NYSE:GCA) (the “Company”) today announced preliminary, unaudited financial results for the quarter and fiscal year ended December 31, 2008.

Fiscal Fourth Quarter 2008 Results

For the quarter ended December 31, 2008, revenues were $176.3 million, an increase of 23.1% over the $143.2 million in revenues recorded in the same quarter last year. Operating income was $18.5 million, an increase of 40.6% over the $13.1 million recognized in the prior year. Earnings before interest, taxes, depreciation and amortization (“EBITDA”) (see Non-GAAP Financial Information below) increased to $23.2 million from $16.2 million, a 43.2% increase. Net income in the fourth quarter of 2008 was $4.6 million, up 140.0% from the fourth quarter of 2007. Diluted earnings per share from Continuing Operations were $0.06 in the fourth quarter of 2008 (on 76.8 million diluted shares) as compared to $0.04 in the fourth quarter of 2007 (on 79.5 million diluted shares). Cash Earnings Per Share from Continuing Operations (“Cash EPS”) (see Non-GAAP Financial Information below) were $0.19 in the fourth quarter of 2008, a 109% increase from the $0.09 reported in the prior year.

The Company’s results for the quarter include the operations of Certegy Gaming Services, Inc., which was acquired in April of 2008, and Cash Systems, Inc., which was acquired in August of 2008.

Fiscal Year 2008 Results

For the year ended December 31, 2008, revenues were $671.6 million, an increase of 12.3% over the $597.9 million in revenues recorded in fiscal year 2007. Operating income was $78.6 million, an increase of 0.5% over the $78.2 million recognized in the prior year. Earnings before interest, taxes, depreciation and amortization (see Non-GAAP Financial Information below) increased to $94.7 million from $89.8 million, a 5.4% increase. Net income was $23.6 million, down 0.6% from the year ended December 31, 2007. Cash EPS (see Non-GAAP Financial Information below) were $0.66 in 2008, a 21% increase from the $0.55 reported in the prior year.

All 2007 financial information has been adjusted to reflect the classification of Arriva Card, Inc., a subsidiary of the Company, as a discontinued operation.

“Despite the turbulence in the gaming sector and the economy in 2008, it was a year of growth for our company as we capitalized on our ability to scale with the acquisition opportunities,” said Scott Betts, President and Chief Executive Officer of the Company. “We completed two important acquisitions that we believe have added strong customer bases, additional revenue and cash flow, and further enhanced our product portfolio. In 2009, we expect to benefit from additional operational improvements and cost savings combined with our intention to aggressively seek to deliver innovative products and enhanced customer service to our clients. We are optimistic about the future of our company and feel that we’re well positioned when the macroeconomic environment improves and the gaming industry rebounds.”

2009 Outlook

The Company expects 2009 revenue to be between $700 and $730 million. EBITDA are expected to be between $95 and $101 million. Diluted earnings per share from continuing operations are expected to be between $0.44 and $0.50 per share. Cash earnings per share are expected to be between $0.70 and $0.76.

The foregoing expectations reflect the following assumptions:

• Expense investments in product and processing platforms of between $2 million and $4 million;
• Average 30-day LIBOR of 1.3% in effect during the period and average outstanding balances subject to 30-day LIBOR, including off-balance sheet amounts outstanding under the Company’s Treasury Services Agreement, of $430 million;
• An effective tax rate for the full year of approximately 38%;
• Cash outlays for capital expenditures to approximate those amounts disbursed in 2008; and
• Diluted issued shares of approximately 77 million.

Investor Conference Call and Webcast

GCA will host an investor conference call to discuss its fourth quarter and fiscal year 2008 results today at 5:00 p.m. ET. The conference call can be accessed live over the phone by dialing (866) 804-6920 or for international callers (857) 350-1666; the conference ID is 74177323. A replay will be available one hour after the call and can be accessed by dialing (888) 286-8010 or (617) 801-6888 for international callers; the conference ID is 98029568. The call will be webcast live from the Company's website at www.gcainc.com under the investor relations section.

Non-GAAP Financial Information

In order to enhance investor understanding of the underlying trends in our business and to provide for better comparability between periods in different years, the Company is providing EBITDA, adjusted EBITDA and Cash EPS on a supplemental basis. Reconciliations between GAAP measures and non-GAAP measures and between actual results and adjusted results are provided at the end of this press release. EBITDA, adjusted EBITDA and Cash EPS are not measures of financial performance under United States Generally Accepted Accounting Principles (“GAAP”). Accordingly, they should not be considered a substitute for net income, operating income or other income or cash flow data prepared in accordance with GAAP.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements included in this press release, other than statements that are purely historical, are forward-looking statements. Words such as “going forward,” “believes,” “intends,” “expects,” “forecasts,” “anticipate,” “plan,” “seek,” “estimate” and similar expressions also identify forward-looking statements. Forward-looking statements in this press release include, without limitation, (a) our belief that our recent acquisitions will drive growth, enhance the Company’s product portfolio and provide additional operational improvements and cost savings; (b) our 2009 revenue, EBITDA, diluted earnings per share and cash earnings per share expectations; (c) our intention that our expense investment in platforms will be between $2 million and $4 million; (d) our expectation that average 30-day LIBOR for the period will be 1.3% and our average outstanding balances subject to 30-day LIBOR will be $430 million; (e) our expectation that our effective tax rate for the full year 2009 will be approximately 38%; (f) our expectation that cash outlays for capital expenditures to approximate those amounts disbursed in 2008; (g) our assumption that there are approximately 77 million diluted shares issued; and (h) our belief that EBITDA, adjusted EBITDA, and Cash EPS are widely-referenced financial measures in the financial markets and our belief that references to the foregoing is helpful to investors.

Our beliefs, expectations, forecasts, objectives, anticipations, intentions and strategies regarding the future, including without limitation those concerning expected operating results, revenues and earnings are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from results contemplated by the forward-looking statements, including but not limited to: (a) unexpected events that may impact our ability to drive growth, develop our product portfolio or achieve operational improvements or cost savings; (b) reduced demand for or increased competition with our products and services that affects our 2009 revenue, EBITDA, diluted earnings per share and cash earnings per share; (c) unexpected events that may require us to incur additional expense investment in our platforms; (d) unexpected adjustments to average 30-day LIBOR or the amount of outstanding balances subject to 30-day LIBOR; (e) with respect to our expectation that our effective tax rate will be approximately 38% for the full year 2009 (i) incurrence of expenses that are not deductible for tax purposes, and (ii) the entry into business lines or foreign countries with tax structures different from the ones we are currently subject to; (f) unexpected events that may require capital expenditures to materially differ from those amounts disbursed in 2008; and (g) inaccuracies in our assumptions as to the financial measures that investors use or the manner in which such financial measures may be used by such investors.

The forward-looking statements in this press release are subject to additional risks and uncertainties set forth under the heading “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our filings with the Securities and Exchange Commission, including, without limitation, our registration statement on Form S-1 (No. 333-133996), our Annual Report filed on Form 10-K (No. 001-32622) and our quarterly reports on Form 10-Q, and are based on information available to us on the date hereof. We do not intend, and assume no obligation, to update any forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release.

About Global Cash Access Holdings, Inc.

Las Vegas-based Global Cash Access, Inc. (“GCA”), a wholly owned subsidiary of Global Cash Access Holdings, Inc., is a leading provider of cash access products and related services to over 1,100 casinos and other gaming properties in the United States, Europe, Canada, the Caribbean and Asia. GCA's products and services provide gaming patrons access to cash through a variety of methods, including ATM cash withdrawals, point-of-sale debit card transactions, credit card cash advances, check verification and warranty services, and Western Union money transfers. GCA provides products and services that improve credit decision-making, automate cashier operations and enhance patron marketing activities for gaming establishments. With its proprietary database of gaming patron credit history and transaction data on millions of gaming patrons worldwide, GCA is recognized for successfully developing and deploying technological innovations that increase client profitability, operational efficiency and customer loyalty. More information is available at GCA's Web site at www.gcainc.com.

Source: Global Cash Access Holdings, Inc.

Global Cash Access, Inc.
George Gresham, CFO, 702-855-3005
IR@gcamail.com