GCA IR Presentation - May 20, 2009

Information about GCA IR Presentation - May 20, 2009

Published on May 20, 2009

Author: CyberEleven

Source: authorstream.com


Slide 1: GCA Holdings, Inc. JP Morgan 37th Annual Global Technology, Media, and Telecom Conference George Gresham, CFO May 2009 Slide 2: This presentation contains forward-looking statements within the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such statements in this presentation include, without limitation, (a) our belief that our recent acquisitions will drive growth, and provide additional operational improvements and cost savings; (b) our 2009 revenue, EBITDA, diluted earnings per share and cash earnings per share expectations and the assumption upon which they are based; (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 will be 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, 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) unanticipated share issuances or redemptions, and (h) 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 presentation 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 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 presentation. Slide 3: Company Overview Industry Leader Recent consolidation of the sector with two acquisitions of smaller competitors Greater than 80% of the U.S. market Product Superiority 3-in-1 patent protected IP Expansive data sources and casino marketing services Central Credit – Only gaming specific credit bureau in the world Differentiated service offerings including in source/out source model for booth operations and sophisticated Help Desk offerings PowerCash and other cashless gaming products deployed or in development Development relationships and or JVs with IGT and Bally’s Experienced Management Team New Executive team in place to drive operating performance improvement Best of breed sales and relationship management team Compelling Financial Model Recurring revenue Low capital expenditure, high free cash flow Profits not currently subject to federal tax Significant operating leverage GCA is the World’s Leading Cash Access Provider to the Gaming Industry Slide 4: Game Industry and Cash Access Cash access is critical to the success of the casino customer experience Patrons increasing use of bank cards requires casinos to offer a broad mix of cash access end points Quick, efficient access to cash is critical to casino’s growth and profitability Casinos motivated to reduce lines at cage and booth allowing patrons more time to play Casinos seek lower costs, increased play and dynamic customer loyalty programs GCA Drives Casino Profits, Efficiency and Customer Loyalty Slide 5: Leading Cash Access Provider To The Gaming Industry At the Intersection of Casinos, Consumers and Cash Slide 6: Product Description Slide 7: The Original GCA Advantage: 3-in-1 Rollover Problem the average ATM daily limit is $300-500 Insufficient for many gaming patrons Friday/Saturday/Sunday is “one day” Result 30% of ATM requests in casinos are declined Solution POS Debit Card Cash Advance: daily debit limit is 5-10x an ATM transaction limit Credit Card Cash Advance: independent of how much money is in the bank account/overdraft “3-in-1” Rollover informs patrons of alternatives when they’ve been declined at the ATM. Without being informed, most patrons walk away 25% of declined ATM transactions converted to successful cash advance transactions Higher average ticket Higher average fee Satisfied patrons Protected: US Patent 6,081,792 Slide 8: Invaluable Information 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. The industry’s only credit bureau for credit granted by casinos. Target marketing with 3x the results at traditional direct marketing. Slide 9: Industry Leaders GCA’s Breadth of Products is Unmatched by the Competition Slide 10: GCA’s History Slide 11: Experienced Management Team Payments/Gaming Experience -Years Scott Betts - President, Chief Executive Officer, Secretary and Treasurer 8 Joined GCA in late 2007 FDC, Payments industry consultant George W. Gresham - Executive Vice President and Chief Financial Officer 7 Joined GCA in February 2008 EFD – eFunds Corporation, Deloitte & Touche, LLP. Kathryn S. Lever - Executive Vice President and General Counsel 8 Joined GCA in September 2005 Practiced gaming law/regulation at Brownstein, Hyatt, Farber, and Shreck LP Mark Labay - Senior Vice President, Product Management 7 Joined GCA in 2002 Deloitte & Touche, LLP. Kurt Sullivan - Executive Vice President, Check Services and Central Credit 23 Joined GCA in December 2000 Circus Circus Enterprises, Inc. Mari Ellis - Executive Vice President, Chief Technology Officer 12 Joined GCA in February 2008 FDC, Blackhawk, Concord EFS Slide 12: Competition in the U.S. Gaming Cash Access Market 2006 Today Slide 13: Attractive Business Model With Significant Growth GCA Has Significant Growth Opportunities Long-term contracts with high retention rate Modest fixed cost structure with significant operating leverage Short-term opportunities Integration of acquisitions Cost rationalization Define an integrated product and technology roadmap Long-term growth opportunities International Leverage technology innovation to drive margins Integrate solutions with the “Digital Native” in mind away from traditional “Brick-and-Mortar” Slide 14: Transaction Growth GCA Volumes Have Grown at 10-15% Per Year Since 2002 Slide 15: Financial Performance Revenues EBITDA Slide 16: Financial Performance Statement of Operations – Three Months Ended, March 31 Slide 17: Balance Sheet

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