LAS VEGAS, Feb 23, 2010 (BUSINESS WIRE) -- Global Cash Access Holdings, Inc. (the "Company") (NYSE:GCA) today announced financial results for the quarter and year ended December 31, 2009.

Fiscal Fourth Quarter 2009 Results

For the quarter ended December 31, 2009, revenues were $148.8 million, a decrease of 15.6% over the $176.3 million in revenues recorded in the same quarter last year. Revenues during the quarter were adversely impacted by the continued weakness in the gaming sector and consumer revolving credit. As a result of the weaker than expected revenue, operating income and cash earnings per share from continuing operations ("Cash EPS") (see Non-GAAP Financial Information below) were down 13% and 11%, respectively.

The results for the quarter and the year include the receipt of $2.75 million related to the Visa Check/MasterMoney Antitrust Litigation which has been included in our operating results as a reduction in operating expense. The recognition of these proceeds contributed approximately $0.02 per share to the quarter on a GAAP basis. The fourth quarter of 2008 results of operations included approximately $0.4 million related to the same matter.

Fiscal Year 2009 Results

For the year ended December 31, 2009, revenues were $667.7 million, a decrease of 0.6% from the $671.6 million in revenues recorded in fiscal year 2008 while GAAP EPS and Cash EPS grew on a year over year basis by 25% and 7.6%, respectively.

"Clearly, conditions in the gaming industry remain challenging. While navigating through these difficult business conditions, we are very proud of our accomplishments in 2009 and are very excited about the future. We were able to maintain revenue near 2008 levels and grow earnings per share from continuing operations 25% through cost control and capital allocation measures. We believe that the Company's regulatory and legal issues are now behind us, including a settlement of the securities class action litigation which is pending court approval. We now can refocus our attention on our pipeline of innovation, including product and service enhancements that we believe will further strengthen our position as the leading provider of cash access solutions to the gaming industry," said Scott Betts, President and Chief Executive Officer of Global Cash Access.

"We believe our recent client renewals and wins, including Wynn Resorts, are indicative of not only our unique offerings, strong service and value proposition, but our thought leadership and commitment to technological innovation. In 2009, we provided almost $22 billion in disbursements to gaming patrons and we are working diligently to transform the cash access relationship into a cashless gaming environment." added Mr. Betts. "Given the continued cash generating capabilities of the Company, we are pleased to announce our Board of Directors recently authorized an additional $25 million share repurchase program."

2010 Outlook

The Company continues to believe the timing and the extent of a recovery, if any, in the markets it serves remains unclear and further believes that this uncertainty will continue for the foreseeable future. The Company expects that revenue will be approximately flat to slightly down from the revenue reported in 2009. Diluted earnings per share from continuing operations are expected to be flat to slightly better than the $0.45 reported in 2009 and cash earnings per share are expected to be $0.02 to $0.04 better than the $0.71 reported in 2009.

The foregoing expectations reflect the following assumptions:

• An effective tax rate for the full year of approximately 38%;
• Cash outlays for capital expenditures of approximately $7 to $9 million;
• Fully diluted shares outstanding for the full year of approximately 69 to 71 million; and
• The acquisition of Western Money Systems will close towards the middle of the year.

Investor Conference Call and Webcast

The Company will host an investor conference call to discuss its fourth quarter and fiscal year 2009 results today at 5:00 p.m. ET. The conference call can be accessed live over the phone by dialing (866) 788-0543 or for international callers (857) 350-1681; the conference ID is 76202378. 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 51240577. 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 all of the Company's regulatory and legal issues are behind us; (b) our belief that refocusing our attention on our pipeline of innovation including product and service enhancements will further strengthen our position as the leading provider of cash access solutions to the gaming industry; (c) our belief that our recent client renewals and wins, including Wynn Resorts, are indicative of our unique offerings, strong service and value proposition, thought leadership and technological innovation, (d); our belief that timing and the extent of a recovery, if any, in the markets we serve remains unclear and that this uncertainty will continue for the foreseeable future; (e) our 2010 revenue, diluted earnings per share, and cash earnings per share expectations and the assumptions upon which they are based; (f) our expectation that our effective tax rate for the full year 2010 will be approximately 38%; (g) our expectation that cash outlays for capital expenditures will be between approximately $7 and $9 million; (h) our assumption that there will be approximately 69 to 71 million diluted shares outstanding; (i) our belief that our acquisition of Western Money Systems will close towards the middle of the year and (j) 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 delay or prohibit a final settlement of the securities class action litigation; (b) unexpected events that may delay or prohibit our proposed technology, including licensing and regulatory issues or unexpected changes in the market place,; (c) unexpected changes in the market and economic conditions; (d) reduced demand for or increased competition with our products and services that affects our 2010 revenue, diluted earnings per share, cash earnings per share and EBITDA; (e) unexpected events that may require us to incur additional expense investment in our platforms; (f) unexpected adjustments to average 30-day LIBOR or the amount of outstanding balances subject to 30-day LIBOR; (g) with respect to our expectation that our effective tax rate will be approximately 38% for the full year 2010 (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; (h) unexpected events that may require capital expenditures to materially differ from those expected; and (i) unanticipated share issuances or redemptions, and (i) 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) on March 13, 2009 and our subsequent 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, Central America 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 also 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 http://www.gcainc.com.

SOURCE: Global Cash Access Holdings, Inc.

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