SOURCE: DirectCash Payments Inc.

DirectCash Payments Inc.

October 19, 2015 19:00 ET

DirectCash Payments Inc. Announces Operational Highlights and Conference Call for the Three and Nine Months Ended September 30, 2015

CALGARY, AB--(Marketwired - October 19, 2015) - DirectCash Payments Inc. ("DCPayments" or the "Company") (TSX: DCI) today announced select operational highlights results and conference call details for the three and nine months ended September 30, 2015.

Operational Highlights:

  • Increased ATM transactions by 11% and 7% respectively for the three and nine months ended September 30, 2015 compared to the prior year periods
  • Increased the number of active ATMs as at September 30, 2015 by 8% to 21,824 as compared to the prior year
  • Completed transition of the Morrison's ATM Fleet adding approximately 220 ATMs in total to the United Kingdom fleet
  • Launched DC TAG direct to consumer
  • Acquired A$1.9 million of ATM assets, including processing contracts for approximately 250 ATM locations in Australia
  • During the quarter, re-purchased and cancelled 33,700 common shares under the Company's current Normal Course Issuer Bid
  • Successfully completed refinancing and amendments to increase the Australian dollar sublimit on the Company's credit facility, improving cash flow management and creating a natural hedge between the Australian and Canadian currencies
  • Executed a long-term renewal of the Company's service and marketing agreements with DirectCash Bank
  • Extended agreement to acquire DirectCash Bank to August 15, 2016
  • Increased Canadian vault cash rental agreement limit from $100 million to $150 million, improving operational flexibility
  • Subsequent to the quarter, reached agreement to settle all class action lawsuits filed against the company

Management's Commentary

"We are very pleased with our preliminary operating statistics for the third quarter. We continue to focus on growth and continued diversification in our global business. We are well positioned to continue to generate cash flow and shareholder value," said Jeffrey Smith, DCPayments' President and Chief Executive Officer.

DCPayments will pursue growth through additional accretive acquisitions at reasonable multiples as opportunities arise. DCPayments' stable and contracted revenue stream in our various geographic markets will continue to provide consistent cash dividends to DCPayments' Shareholders.

Summary Operating Results

  Three months ended Nine months ended
  September 30 September 30
  2015 2014 2015 2014
Summary operating results        
Number of machines        
Active ATM terminals(1) 21,824 20,231 21,824 20,231
 Americas 8,256 8,243 8,256 8,243
 Australasia 7,729 6,278 7,729 6,278
 Europe 5,839 5,710 5,839 5,710
         
ATM transactions, thousands 35,195 31,637 98,627 91,838
Average Monthly ATM Transactions per terminal 538 521 502 504

1DCPayments has included statistics only for sites that recorded a transaction in the last calendar month of the period indicated

In the Americas, the number of active ATMs increased by 13 as compared to the prior year period. The increase was driven by new terminals installed as a result of the partnership between the Bank of Montreal ("BMO") and DCPayments to deploy BMO branded ATMs to Shell Canada Products locations across Canada exclusively, additional organic growth and ATMs installed for temporary events, offset by the removal of approximately 224 ATMs from Mac's Convenience Stores ("Mac's") in Canada due to contract expiration and approximately 124 ATMs from Target stores in Canada that closed. The Company has retained the Mac's business in the Other Services business segment, where it will process the transactions of an additional approximate 830 ATMs in select Mac's, Couche-Tard and Circle K locations across Canada through its operation of The EXCHANGE® Network, which was part of the credit union and other financial institution processing and outsourcing services business acquired from Threshold Financial Technologies Inc. in 2013.

In Australasia, the number of active ATMs increased by 1,451 or 23% as at September 30, 2015 compared to the prior year period. This increase is primarily attributable to the previously announced acquisitions of OneCash Limited and DSM Connect Pty Ltd. (collectively "OneCash") on July 23, 2015 and Ezeatm Limited ("Eze") on October 31, 2014.

In Europe, the number of active ATMs increased by 129 year over year primarily due to the Morrison's stores ATMs purchased from HSBC Bank Plc in the United Kingdom in March, 2015, as well as continued organic expansion in the market.

ATM transactions increased by 11% and 7% respectively during the three and nine months ended September 30, 2015 as compared to the prior year period.

Conference Call

DCPayments' consolidated financial results for the three and nine months ended September 30, 2015 will be released to the market on Thursday, November 12, 2015 after market close. A conference call will be held on Friday, November 13, 2015 at 10:00 a.m. Mountain Standard Time (MST) to review third quarter 2015 results. Jeffrey J. Smith, President & CEO, Patrick W. Moriarty, Chief Financial Officer, and Amanda J. Gallacher, Vice President, Corporate Strategy & Acquisitions, will host the call. The financial results, and an accompanying presentation, will be available on the Company website at www.directcash.net prior to the conference call.

DCPayments invites participants to listen to the conference call by calling toll-free 1-800-355-4959 or locally 1-416-340-8527. A replay of the conference call will be available until Friday, November 20, 2015 by dialing toll-free 1-800-408-3053 or locally 1-905-694-9451 and entering passcode 1663929.

Forward Looking Information:

This press release offers our assessment of DCPayments' future plans and operations and contains "forward-looking information" relating to future events as defined under applicable Canadian securities legislation.

The forward-looking information is expressly qualified by this cautionary statement. Certain statements that contain words such as "could", "may", "believe", "should", "expect", "will", "intends", "plan", "anticipates", "potential", "estimates", "continues" or similar words relating to matters that are not historical facts constitute "forward-looking information" within the meaning of applicable Canadian securities legislation.

Specifically, forward-looking information and statements contained in this press release include statements related to DCPayments' projected growth in business and operations in our various business segments in the Americas, Australasia and Europe, intention to complete quality accretive acquisitions at reasonable multiples on a go forward basis as opportunities arise, ability to provide consistent cash dividends, ability to drive growth and increase our margins, expansion of DCPayments' merchant base through new and innovative products and services, ability to continue to acquire long-term recurring services contracts and negotiate renewals thereof in advance of their expiry, ability to maintain current customer relationships, ability to add product offerings in the markets we operate in, ability to diversify both domestically and internationally and the possible increase in capital expenditures for technology and infrastructure or due to regulatory mandated security upgrade changes and the sufficiency of funds generated from operations to fund the same.

Readers are cautioned that our expectations, estimates, projections and assumptions used in the preparation of such forward-looking information and statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking information. The Company's actual results or performance could differ materially from those expressed in, or implied by, this forward-looking information. DCPayments can give no assurance that any of the events anticipated will transpire or occur or, if any of them do, what benefits or costs we will derive from them. Forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond DCPayments' ability to control, including but not limited to general economic conditions, interest rates, foreign currency rates, consumer spending, borrowing trends and regulatory changes to name a few. Additional risks and uncertainties are described in DCPayments' Annual Information Form for the year ended December 31, 2014 which is available at www.SEDAR.com.

With respect to forward-looking statements and information contained within this press release, expectations are based on our current strategic plan and management forecasts, historical financial performance and operational data, and our existing contracts schedule.

The assumptions and estimates relating to the forward-looking information referred to above are updated quarterly and except as required by law, we do not undertake to update any other forward-looking information.

Additional information about DCPayments is available on SEDAR (www.sedar.com) or DCPayments' website at www.directcash.net.

Contact Information

  • For further information please contact:

    Amanda J. Gallacher
    Vice President, Corporate Strategy & Acquisitions
    Direct Telephone: (403) 387-2158
    Fax: (403) 451-3058
    e-mail: investorrelations@directcash.net

    or

    Patrick W. Moriarty
    Chief Financial Officer
    Direct Telephone: (905) 461-2285
    e-mail: pmoriarty@directcash.net