Deutsche Bank Leveraged Finance Conference George Gresham September 24, 2008. Forward-Looking Statements.
September 24, 2008
Statements in this presentation that are not reported financial results or other historical information are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include: (1) our intent to grow our business by growing revenues with current customers, winning new customers, penetrating new markets, innovating and leveraging our databases and marketing assets; (2) our plans to renew existing customers and win new customers; (3) our plans to increase same-store sales; (4) our expectation of growth in gaming revenue and gaming expansion in various markets; (5) our belief that providing cash access services on new platforms should enhance profitability and margins; (6) our belief that higher margin platforms will increase their installed base in the future, (7) our belief that the Arriva card should enhance profitability, (8) our guidance with respect to revenue, gross margin, operating expense and operating income, and (9) our estimated future free cash flow and uses thereof. Such forward-looking statements are based on current plans, estimates and expectations, and are not guarantees of future performance. They are subject to a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements, including the following: (1) technical, competitive and regulatory impediments, operational and resource limitations and gaming establishment acceptance of our value propositions; (2) competitive pressures such as pricing, availability and breadth of offerings or gaming establishments replacing their outsourced cash access services with in-house cash access services; (3) competitive pressures that require us to reduce our pricing or changes in gaming establishment patron cash access behavior; (4) regulatory or social responsibility impediments, economic downturns, a decline in the popularity of gaming or changes in the demographic profile of gaming patrons; (5) our failure to obtain regulatory approval for our EDITH platform or our inability to enter into strategic relationships with providers of redemption kiosks on favorable terms; (6) gaming patron preference for using traditional gaming establishment cashiers or gaming establishment unwillingness to incur capital expenditures for unmanned platforms; (7) our failure to properly manage the credit risk associated with the Arriva card; (8) our inability to control the demand for cash access services within gaming establishments, competition from new and existing competitors and the incurrence of unplanned operating or capital expenses; (9) our failure to achieve estimated future income levels, unanticipated capital expenditures, changes in tax rates or position and the need to deploy cash flow to existing or new business development initiatives. Additional factors that could cause actual results to differ materially are included under the heading “Risk Factors” in the Company’s Annual Reports on Form 10‑K and Quarterly Reports on Form 10‑Q filed with the U.S. Securities and Exchange Commission from time to time. The Company undertakes no obligation to publicly update or revise any forward-looking statement.
This presentation includes pro forma information, or non-GAAP financial measures, that are different from financial measures calculated in accordance with GAAP and may be different from pro forma calculations made by other companies.
We are the world’s leading cash access provider to the gaming industry
At the Intersection of Consumers, Cash and Casinos
GCA drives Casino Profits, Efficiency and Customer Loyalty
US Patent 6,081,792
Large Native American + 16%
Companies have seen increases in debit and credit cash to the floor from switching to GCA 3-in-1
Atlantic City + 29%
Gulf Coast + 17%
The industry’s only credit bureau for credit granted by casinos.
GCA has the unique ability to tell casinos how much cash their best customers are accessing in competitors’ properties.
The industry’s first and best casino cashier automation tool. Increased productivity and accuracy.
GCA’s breadth of products is unmatched by the competition
Top Customers Cash Access Services Information Services Cashless Gaming
ATM Cash Advance Check Warranty Central Credit Marketing QCP EDITH KIOSK
Pinnacle Thunder Valley
Stock Price Chart - LTM
Experience – Years
GCA has significant growth opportunities
GCA volumes have been growing at 10-15% per year for the last six years
GCA 2007 Transactions
($ in millions)
($ in millions)
CAGR = 11.2%
CAGR = 11.9%
1 Excludes non-cash compensation expense
* In the first quarter of 2008, GCA discontinued the Arriva business resulting in a $5.5 million bad debt reserve adjustment.