DirectCash Income Fund announces asset acquisition of ATM competitor


    CALGARY, June 25 /CNW/ - DirectCash Income Fund (the "Fund") announced
today that the Fund's operating subsidiary partnership, DirectCash ATM
Processing Partnership (the "DirectCash Partnership"), entered into the
agreements and closed a transaction to acquire the entire automated teller
machine ("ATM") business of Inkas Financial Corp. ("Inkas"), a private
corporation based in Toronto, Ontario. The purchase price was $5,250,000,
subject to customary purchase adjustments and holdbacks and was funded from
DirectCash's acquisition credit facility. The signing and closing was
completed over a 2 day period commencing June 24, 2008 and completed today
with an effective date of June 24, 2008.
    A total of 711 ATM sites and related contracts were acquired by
DirectCash with the majority located in Ontario and Quebec. During the next
few weeks DirectCash Partnership will be transitioning the acquired ATMs into
its ATM management system. The acquisition of these ATM contracts will bring
the total number of DirectCash ATM active sites/contracts to over 6000 (as
compared to the 5,370 ATM Sites as of March 31, 2008).
    The acquisition is expected to be accretive to per unit distributable
cash flow.

    Management's Commentary:

    "We are very excited about the acquisition of Inkas as it significantly
increases our ATM market presence in Ontario and Quebec. Inkas has been in the
business since 1998 and has proven to be a strong competitor in the ATM
business with excellent customer service. We are excited to be able to add
their ATM success and experience to our portfolio." said Jeffrey Smith,
DirectCash's President and Chief Executive Officer.

    DirectCash Business:

    The operating subsidiaries of the Fund (such subsidiary limited
partnerships, partnerships and corporations are collectively referred to as
"DirectCash") are the largest branded ATM provider in Canada operating under
the tradename DirectCash ATM. DirectCash is also one of the leading providers
in Canada of branded non-financial institution debit terminals and prepaid
debit and credit card products.

    Additional Information:

    Additional information about the Fund and the Fund's operating
subsidiaries, including the Fund's Annual Information Form and other public
filings is available on SEDAR ( and on the DirectCash's website


    Non-GAAP measures:

    There are a number of financial calculations that are not defined
performance measurements under Canadian generally accepted accounting
principles ("GAAP") but which the Fund believes are useful and accepted
performance measurements utilized by the investing public in assessing the
overall financial performance of income trusts.


    EBITDA represents gross profits less selling, general and administrative
expenses ("SG&A) and long-term incentive plan expenses, and is not a defined
performance measure under GAAP. The Fund believes that EBITDA is a useful
supplementary disclosure commonly used by the investing community to assess
and compare cash flows between entities. EBITDA specifically excludes
depreciation, amortization, income taxes and interest expense. The Fund's
EBITDA may differ from similar computations as reported by other issuers and,
accordingly, may not be comparable to EBITDA as reported by such issuers.

    Standardized distributable cash flow and standardized distributable cash
    flow per unit:

    On July 6, 2007, the Canadian Securities Administrators ("CSA") published
revised National Policy Statement 41-201 Income Trusts and Other Direct
Offerings that includes guidance concerning distributable cash flow measures
and their related disclosure. In accordance with the interpretive release
issued by the Canadian Institute of Chartered Accountants ("CICA"), the Fund
calculates a distributable cash flow measure called Standardized Distributable
Cash Flow and includes it as an additional disclosure in financial
disclosures. Standardized Distributable Cash Flow is calculated as cash flow
from operations including the effect of changes in non-cash working capital
less total capital expenditures required to preserve productive capacity, and
restrictions on distributions resulting from compliance covenants and minority
interests. Due to normal course changes of non-cash working capital between
periods, Standardized Distributable Cash Flow has the potential to be volatile
between periods compared to the Fund's existing measure of Distributable Cash
Flow, which is calculated as cash flow from operations excluding the impact of
non-cash working capital changes less productive capital maintenance
requirements (See discussion below). In order to reconcile the two measures,
the Fund calculates Standardized Distributable Cash Flow and reconciles it to
Distributable Cash Flow.

    Distributable cash flow and distributable cash flow per unit:

    Distributable cash flow and distributable cash flow per unit are non-GAAP
measures generally used by Canadian open-ended income funds as an indicator of
financial performance. Readers are cautioned that distributable cash flow is
not a defined performance measure under GAAP, and that distributable cash flow
cannot be assured. The Fund calculates distributable cash flow as equal to the
consolidated funds flow from operations before changes in non-cash working
capital, after provision for productive capital maintenance capital
expenditures (See discussion below) and amortization of deferred rent expense.
The Fund's distributable cash flow and distributable cash flow per unit may
differ from similar computations as reported by other issuers and,
accordingly, may not be comparable to distributable cash flow and
distributable cash flow per unit as reported by such issuers.
    Unitholders receive cash distributions sourced from distributions made by
DirectCash LP indirectly to the Fund. The Fund's policy is to distribute, to
the maximum extent possible, the cash earned from operations to Unitholders,
less amounts estimated to be required for expenses, productive capital
maintenance, cash redemptions or repurchases of Units, any current tax
liability, or other obligations and any reasonable reserves established. The
Fund makes monthly cash distributions to Unitholders on the last business day
of each month to Unitholders of record on the last business day of the
preceding month. Currently distributions are set at $0.115 per Unit per month
($1.38 per Unit annualized). Distributions are funded from cash flows
generated by the operation of DirectCash LP's business.

    Productive maintenance capital expenditure:

    The Fund differentiates capital expenditures between growth and
productive capital maintenance ("maintenance capital"). There is no such
distinction under GAAP, however the Fund believes it is important to
differentiate between them as maintenance capital expenditures represent a
discretionary adjustment to distributable cash flow while growth capital does
not. Maintenance capital expenditures are defined as expenditures required to
service and maintain our existing productive capacity, while growth capital is
expended to increase our productive capacity by adding additional sources of
revenue not currently in existence. Current measures of productive capacity
that the Fund utilizes include ATMs and debit terminals under contract (see
"Operational Highlights"). Software and hardware upgrades to existing
infrastructure, ATM and debit terminal equipment upgrades necessary to meet
changing regulatory requirements, contract extension incentives, and fleet
vehicle purchases and upgrades are some examples of maintenance capital
expenditures. Examples of growth capital expenditures include the acquisition
of a competitor's assets, the cost of an ATM in a new location, or technology
costs related to new sources of revenue.
    Readers are cautioned that productive capital maintenance expenditure is
not a defined performance measure under GAAP. The Fund's computation of
productive maintenance capital expenditure may differ from similar
computations as reported by other issuers and, accordingly, may not be
comparable to maintenance capital expenditures as reported by such issuers.

    Forward Looking Statements:

    No stock exchange, securities commission or other regulatory authority
has approved or disapproved the information contained herein. This news
release may include certain "forward-looking statements". Such forward-looking
statements are not guarantees of future performance and involve a number of
known and unknown risks and uncertainties which may cause the actual results
of the Fund in future periods to differ materially from any projections
expressed or implied by such forward-looking statements and therefore should
not be relied upon. Any forward-looking statements are made as of the date
hereof and the Fund does not undertake any obligation to publicly update or
revise such statements to reflect new information, subsequent events or
otherwise, except as required pursuant to applicable securities laws.

For further information:

For further information: The officer responsible for issuance of this
press release and who may be contacted for further information is: Jeffrey J.
Smith, President, CEO & Director, DirectCash Management Inc., Manager of
DirectCash Income Fund, Direct: (403) 387-2101, e-mail:

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