Global Cash Access Reports Third Quarter Diluted EPS from Continuing Operations of $0.11 up $0.03, and Diluted Cash EPS of $0.17 up $0.04, on 19% Revenue Growth


LAS VEGAS--(BUSINESS WIRE)--Nov. 5, 2008--Global Cash Access Holdings, Inc. (NYSE:GCA) (the "Company") today announced preliminary, unaudited financial results for the quarter ended September 30, 2008.

Fiscal Third Quarter 2008 Results

For the quarter ended September 30, 2008, revenues were $185.1 million, an increase of 19% over the $155.8 million in revenues recorded in the same quarter last year. Operating income was $21.3 million, an increase of 12% over the $19.0 million recognized in the prior year. Earnings before interest, taxes, depreciation and amortization (see Non-GAAP Financial Information below) increased to $26.1 million from $21.9 million, a 19% increase.

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.

"We are quite pleased with these results," said Scott Betts, President and Chief Executive Officer of the Company. "Despite the turbulence in the gaming sector, our strategy is yielding growth on the top and bottom line. Our strong financial position has allowed us to make two important acquisitions that we believe will continue to drive growth in this tough market. Additionally, we remain focused on execution by making investments in operational improvements, cost savings and product innovation with the objective of providing our customers with new and better products and positioning the Company to compete in markets around the globe."

Forward Looking Statements

The Company expects full-year revenues in 2008 to be between $670 and $673 million. Earnings before interest, taxes, depreciation and amortization ("EBITDA") are expected to be between $94 and $96 million. Diluted earnings per share from continuing operations are expected to fall towards the low end of the range of our previously issued guidance of between $0.39 and $0.42 per share.

The foregoing expectations reflect the following assumptions:

-- An effective tax rate for the full year of approximately 42%;

-- Cash outlays for capital expenditures approximating those amounts disbursed in 2007; and

-- Diluted shares of approximately 77,000,000.

Investor Conference Call and Webcast

The Company will host an investor conference call to discuss its fiscal third quarter 2008 results today at 5:00 p.m. ET. The conference call can be accessed live over the phone by dialing (800) 561-2718 or for international callers (617) 614-3525; the conference ID is 61838696. 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 54270461. The call will be webcast live from the Company's website at 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 and Cash Earnings Per Share from Continuing Operations ("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 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; (b) our expectation that our effective tax rate for the full year 2008 will be approximately 42%; (c) our expectation that cash outlays for capital expenditures to be somewhat lower than those amounts disbursed in 2007; (d) our assumption that there are approximately 77,000,000 diluted shares issued; and (e) our belief that EBITDA and Cash EPS are widely-referenced financial measures in the financial markets and our belief that references to the foregoing are 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; (b) with respect to our expectation that our effective tax rate will be approximately 42% for the full year 2008 (i) incurrence of expenses that are not deductible for tax purposes, (ii) the entry into business lines or foreign countries with tax structures different from the ones we are currently subject to; (c) unexpected events that may require capital expenditures to materially differ from those amounts disbursed in 2007; and (d) inaccuracies in our assumptions as to the financial measurers that investors use or the manner in which such financial measurers 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. (NYSE: GCA), 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

               (amounts in thousands, except par value)

                                            September 30, December 31,
                                                2008          2007
                                            ------------- ------------

    Cash and cash equivalents                   $ 59,393     $ 71,063
    Restricted cash and cash equivalents             386        1,380
    Settlement receivables                        41,833       61,066
    Receivables other, net                        25,238       14,424
    Prepaid and other assets                      11,605        6,905
    Assets held for sale                           2,343       12,180
    Property, equipment and leasehold
     improvements, net                            26,497       23,516
    Goodwill, net                                187,367      156,889
    Other intangibles, net                        37,319       13,652
    Deferred income taxes, net                   163,757      177,227
                                            ------------- ------------

           Total assets                         $555,738     $538,302
                                            ============= ============


    Settlement liabilities                      $ 48,957     $ 93,727
    Accounts payable                              34,294       22,402
    Accrued expenses                              21,441       20,262
    Borrowings                                   296,000      263,480
                                            ------------- ------------

           Total liabilities                     400,692      399,871


MINORITY INTEREST                                      -          135

    Common stock, $0.001 par value, 500,000
     shares authorized and 82,972 and
     82,981 shares issued at September 30,
     2008 and December 31, 2007,
     respectively                                     83           83
    Preferred stock, $0.001 par value,
     50,000 shares authorized and 0 shares
     outstanding at September 30, 2008 and
     December 31, 2007, respectively.                  -            -
    Additional paid in capital                   169,759      163,070
    Retained earnings                             33,105       14,103
    Accumulated other comprehensive income         2,301        2,708
    Treasury stock, at cost, 6,010 and
     4,563 shares at September 30, 2008 and
     December 31, 2007, respectively.            (50,202)     (41,668)
                                            ------------- ------------
          Total stockholders' equity             155,046      138,296
                                            ------------- ------------

           Total liabilities and
            stockholders' equity                $555,738     $538,302
                                            ============= ============

See notes to unaudited condensed consolidated financial statements.
                        (amounts in thousands)

                                                    Nine Months Ended
                                                      September 30,
                                                     2008      2007
                                                   --------- ---------

   Net income                                      $ 19,002  $ 21,791
   Adjustments to reconcile net income to cash
    provided by operating activities:
      Amortization of financing costs                   729       729
      Amortization of intangibles                     4,546     4,084
      Depreciation                                    6,702     4,561
      Loss on sale of or disposal of assets               -       139
      Provision for bad debts                        14,198     5,806
      Deferred income taxes                          13,483    12,482
      Minority ownership loss                          (135)     (294)
      Stock-based compensation                        6,690    12,467
      Changes in operating assets and liabilities:
         Settlement receivables                      29,202    21,386
         Receivables other, net                      (9,234)  (12,597)
         Prepaid and other assets                      (926)      629
         Settlement liabilities                     (60,602)  (12,436)
         Accounts payable                             8,660      (747)
         Accrued expenses                            (7,258)      265
                                                   --------- ---------

            Net cash provided by operating
             activities                              25,057    58,265

   Certegy Gaming Acquisition, net of cash          (24,819)        -
   Cash Systems, Inc. Acquisition, net of cash      (29,916)        -
   Purchase of property, equipment and leasehold
    improvements                                     (7,405)   (8,289)
   Purchase of other intangibles                       (131)   (1,348)
   Changes in restricted cash and cash equivalents      994       (26)
                                                   --------- ---------

            Net cash used in investing activities   (61,277)   (9,663)
                                                   --------- ---------

   Borrowings under credit facility                 121,000         -
   Repayments under credit facility                 (88,480)  (10,750)
   Debt issuance costs                                    -       (23)
   Proceeds from exercise of stock options                -     1,201
   Purchase of treasury stock                        (9,462)  (16,843)
   Minority capital contributions                         -       400
                                                   --------- ---------

            Net cash provided by (used in)
             financing activities                    23,058   (26,015)
                                                   --------- ---------

 CASH EQUIVALENTS                                  $  1,492  $   (742)
                                                   --------- ---------

 EQUIVALENTS                                        (11,670)   21,845

CASH AND CASH EQUIVALENTS--Beginning of period       71,063    40,919
                                                   --------- ---------

CASH AND CASH EQUIVALENTS--End of period           $ 59,393  $ 62,764
                                                   ========= =========


     Cash paid for interest                        $ 25,371  $ 31,459
                                                   ========= =========
     Cash paid for income taxes, net of refunds    $    575  $  1,381
                                                   ========= =========

See notes to unaudited condensed consolidated financial statements.
  Reconciliation of Diluted Cash Earnings Per Share from Continuing
 Operations to Diluted Earnings Per Share from Continuing Operations,
                    and Operating Income to EBITDA
                        (amounts in thousands)

                                  Three Months Ended Nine Months Ended
                                    September 30,      September 30,
                                  ------------------ -----------------
                                     2008     2007     2008     2007
                                  ---------- ------- --------- -------

Reconciliation of Income from
 Continuing Operations to Diluted
 Cash Earnings

Income from Continuing Operations    $ 8,404 $ 6,498   $23,008 $24,373
 Deferred tax amortization
  related to acquired goodwill         4,455   4,427    14,077  13,083
                                  ---------- ------- --------- -------
Cash Earnings                        $12,859 $10,925   $37,085 $37,456
                                  ========== ======= ========= =======

Diluted Cash Earnings Per Share
 from Continuing Operations          $  0.17 $  0.13   $  0.48 $  0.46
                                  ========== ======= ========= =======

Reconciliation of Operating
 Income to EBITDA

Operating Income                     $21,316 $19,027   $60,197 $65,095
 Amortization                          1,955   1,358     4,546   3,945
 Depreciation                          2,865   1,602     6,702   4,558
                                  ---------- ------- --------- -------
EBITDA                               $26,136 $21,987   $71,445 $73,598
                                  ========== ======= ========= =======

Weighted average number of common
 shares outstanding
  Diluted                             76,724  81,705    76,801  81,967
                                  ========== ======= ========= =======
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