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Global Cash Access Reports 2014 Fourth Quarter Revenue of $152.1 Million and Adjusted EBITDA of $24.0 Million

LAS VEGAS, March 10, 2015 (GLOBE NEWSWIRE) — Global Cash Access Holdings, Inc. (GCA) (“GCA” or the “Company”) today reported financial results for the fourth quarter and full year ended December 31, 2014. On December 19, 2014, GCA completed the acquisition of Multimedia Games Holding Company, Inc. (“Multimedia Games”), creating a diversified organization dedicated to providing integrated payments solutions, video and mechanical reel gaming content and technology solutions, as well as compliance and efficiency software. Unless otherwise noted, all results for the 2014 fourth quarter and full year referenced below include 13 days of operations from Multimedia Games.

Three Months Ended Three Months Ended
December 31, 2014 December 31, 2013
(in millions, except for per share amounts)

Revenue $152.1 $140.5

Operating income (1) $0.4 $11.2

Net (Loss) Income (1) ($5.7) $5.7

Net (Loss) Income per Diluted Share (1) ($0.09) $0.08

Diluted Shares Outstanding 66.4 67.4

Adjusted EBITDA (2) $24.0 $17.1

Cash Earnings (3) $15.6 $13.0

Cash Earnings Per Share (“Cash EPS”) (4) $0.23 $0.19

(1) Operating income, Net Loss and Net Loss per Diluted Share for the three months ended December 31, 2014 includes $10.0 million of acquisition costs and purchase accounting adjustments and a $3.1 million asset impairment charge. (2) Adjusted EBITDA is defined as operating income plus depreciation and amortization, non-cash compensation, asset impairment charge, accretion of contract rights, acquisition costs and purchase accounting adjustments. (3) Cash Earnings is defined as net income plus non-cash compensation, deferred income tax, amortization, asset impairment charge, accretion of contract rights, acquisition costs, purchase accounting adjustments and write-off of deferred loan fees. (4) Cash Earnings Per Share (“Cash EPS”) is defined as Cash Earnings divided by the weighted average number of diluted shares of common stock outstanding.

Ram V. Chary, President and Chief Executive Officer of GCA, commented, “The completion of the acquisition of Multimedia Games in December has resulted in the combination of differentiated, industry-leading solutions offered by both GCA and Multimedia Games, which enables us to present a unique new value proposition to casino operators. We intend to leverage our slot gaming entertainment, payments and compliance solutions to bring enhanced offerings to market that provide excellent returns on our customers’ capital investments in gaming technology. In the short time since acquiring Multimedia Games, we have made measurable progress on integrating our two organizations and are tracking to our objectives.”

Fourth Quarter 2014 Results Overview (includes 13 days of operations of Multimedia Games)

Revenues increased $11.6 million, or 8% compared to the same period last year, to $152.1 million in the fourth quarter of 2014. Fourth quarter 2014 revenue includes $7.4 million from Multimedia Games and a $4.2 million, or 3%, increase in legacy GCA revenue. Operating income, inclusive of a $9.7 million impact for acquisition costs, $0.3 million for purchase accounting adjustments, and an asset impairment charge of $3.1 million, was $0.4 million in the 2014 fourth quarter compared to operating income of $11.2 million for the 2013 fourth quarter. Adjusted EBITDA increased $6.9 million, or 40%, to $24.0 million for the fourth quarter of 2014, compared to Adjusted EBITDA of $17.1 million in the same period last year. The increase in Adjusted EBITDA includes $4.0 million from Multimedia Games.

GCA recorded a loss from operations before income tax provision of $7.5 million compared to income from operations before income tax provision of $9.1 million in the fourth quarter of 2013. Diluted loss per share from continuing operations was $0.09 compared to diluted earnings per share of $0.08 for the 2013 fourth quarter. Cash EPS increased to $0.23 for the fourth quarter of 2014 from Cash EPS of $0.19 in the prior-year period. Excluding the operations of Multimedia Games, Cash EPS was $0.24 for the quarter.

Randy Taylor, Executive Vice President and Chief Financial Officer, commented, “Since completing our acquisition of Multimedia Games less than three months ago, we have been focused on our integration initiatives. As of December 31, 2014, we have eliminated approximately $10.9 million on an annual run rate basis from our overall cost structure and we expect to achieve our targeted annual run rate of $24 million in cost synergies by calendar year end. As part of our integration plans, later this year we intend to consolidate all of our manufacturing operations which will significantly enhance manufacturing efficiencies and reduce costs. Looking forward, our plan continues to focus on the deployment of cash to reduce leverage.”

Multimedia Games Full Quarter Comparative Results

The information set forth in the table below presents standalone historical data for Multimedia Games related to the three months ended December 31, 2014 (inclusive of the 79 days prior to the acquisition by GCA on December 19, 2014) and December 31, 2013. The information set forth in the table below should be read in conjunction with the historical financial statements of Multimedia Games that are incorporated by reference in the Company’s Current Report on Form 8-K/A filed with the SEC on February 27, 2015.

Three Months Ended Three Months Ended
December 31, 2014 December 31, 2013
(in millions, except for unit amounts and prices)

Revenue $48.0 $59.2

Operating (loss) income (1) ($7.4) $15.0

Adjusted EBITDA (2) $22.8 $29.2

Units Sold (3) 537 1,375

Average Sales Price (ASP) $16,318 $17,366 Domestic Participation Installed Units:(4)

Average 13,157 12,520 Quarter End 13,287 12,657

(1) Operating (loss) income for the three months ended December 31, 2014 includes $13.4 million of acquisition costs and purchase accounting adjustments. (2) Adjusted EBITDA is defined as operating income plus depreciation and amortization, non-cash compensation, accretion of contract rights, acquisition costs and purchase accounting adjustments. (3) Unit sales in the three month period ended December 31, 2013, included the sale of 499 units to a single customer in Alabama, of which 221 units were previously on a revenue share arrangement. (4) The installed base (quarter-end) and installed base (average) for the three months ended December 31, 2014, reflect the temporary removal from the installed base of 123 units at a customer’s facility in Oklahoma as the facility is undergoing a renovation. The units were initially removed from the installed base on October 1, 2014.

On a pro-forma basis, as if the acquisition of Multimedia Games was completed on January 1, 2014, the combined company would have reported full year 2014 revenue of $792.6 million and Adjusted EBITDA of $186.9 million and 2014 fourth quarter revenue of $192.7 million and Adjusted EBITDA of $42.7 million.

2015 Outlook

Reflecting the current operating and competitive environment, GCA estimates Adjusted EBITDA of between $218 million and $228 million in 2015 based on following key assumptions:

Single digit revenue growth in our Payments business; Double-digit revenue growth in our Games business; Double-digit increase in research and development costs related to the Games business; Depreciation and amortization of $130 million to $135 million driven by our purchase price allocation for Multimedia Games, which significantly increased amortizable intangible assets; Cap-ex in the range of $60 million to $70 million, including contract rights; and, Interest expense of approximately $95 million exclusive of amortization of debt issuance costs.

Investor Conference Call and Webcast

The Company will host an investor conference call to discuss its fourth quarter and full year 2014 results today at 5:00 p.m. ET. The conference call can be accessed live over the phone by dialing (888) 656-7430 or for international callers by dialing (913) 981-5582. A replay will be available at 8:00 p.m. ET and can be accessed by dialing (877) 870-5176 or (858) 384-5517 for international callers; the pin number is 9117092. The replay will be available until March 17, 2015. The call will be webcast live from the Company’s website at www.gcainc.com 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, we are providing in this press release EBITDA, Adjusted EBITDA, Cash Earnings and Cash EPS on a supplemental basis. We define EBITDA as earnings before interest, taxes, depreciation and amortization; Adjusted EBITDA as EBITDA adjusted for non-cash compensation expense, asset impairment charge, accretion of contract rights, acquisition costs and purchase accounting adjustments; Cash Earnings as net income plus non-cash compensation, deferred income tax, amortization, asset impairment charge, accretion of contract rights, acquisition costs, purchase accounting adjustments and write-off of deferred loan fees; and Cash EPS as Cash Earnings divided by our diluted weighted average number of shares of common stock outstanding. We present Adjusted EBITDA and Cash EPS as we use this information to manage our business and consider these measures to be supplemental to our operating performance. We also make certain compensation decisions based, in part, on our operating performance, as measured by Adjusted EBITDA; and our credit facility, senior secured notes and senior unsecured notes require us to comply with a consolidated secured leverage ratio that include performance metrics substantially similar to Adjusted EBITDA. 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, Adjusted EBITDA, Cash Earnings and Cash EPS are not measures of financial performance under United States Generally Accepted Accounting Principles (“GAAP”). Accordingly, they should not be considered in isolation or as a substitute for, and should be read in conjunction with, our net income, operating income, basic or diluted earnings per share 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 “believes,” “intends,” “expects,” “plan,” “estimate” and similar expressions also identify forward-looking statements. Forward-looking statements in this press release include, without limitation, our estimates of 2015 Adjusted EBITDA and the assumptions and factors upon which it is based.

These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected or assumed, including but not limited to the following: our ability to replace revenue associated with terminated contracts; margin degradation from contract renewals; our ability to introduce new products and services; our ability to execute on mergers, acquisitions and/or strategic alliances, including our ability to integrate Multimedia Games; gaming establishment and patron preferences; our ability to successfully complete the conversion of our third-party processor; our ability to comply with the Europay, MasterCard and Visa global standard for cards equipped with computer chips (“EMV”); national and international economic conditions; changes in gaming regulatory, card association and statutory requirements; regulatory and licensing difficulties; competitive pressures; operational limitations; gaming market contraction; changes to tax laws; uncertainty of litigation outcomes; interest rate fluctuations; inaccuracies in underlying operating assumptions; unanticipated expenses or capital needs; technological obsolescence; and employee turnover. If any of these assumptions prove to be incorrect, the results contemplated by the forward-looking statements regarding our future results of operations are unlikely to be realized.

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 Annual Report filed on Form 10-K on March 11, 2014, and subsequent periodic reports 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 GCA

GCA is dedicated to providing integrated gaming payments solutions, video and mechanical reel gaming content and technology solutions, as well as compliance and efficiency software. The Company’s Payments business provides: (a) access to cash at gaming facilities via Automated Teller Machine (“ATM”) cash withdrawals, credit card cash access transactions, point-of-sale (“POS”) debit card transactions, and check verification and warranty services; (b) fully integrated gaming industry kiosks that provide cash access and related services; (c) products and services that improve credit decision making, automate cashier operations and enhance patron marketing activities for gaming establishments; (d) compliance, audit and data solutions; and, (e) online payment processing solutions for gaming operators in States that offer intra-state, Internet-based gaming and lottery activities. The Company’s Games business, under the Multimedia Games brand, provides: (a) comprehensive content, electronic gaming units and systems for Native American and commercial casinos, including the award-winning TournEvent(R) slot tournament solution; and, (b) the central determinant system for the video lottery terminals (“VLTs”) installed at racetracks in the State of New York. More information is available at GCA’s website at www.gcainc.com.

GLOBAL CASH ACCESS HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(In thousands, except earnings per share amounts)

Year Ended December 31,
2014 2013 2012

Revenues $ 593,053 $ 582,444 $ 584,486

Costs and expenses

Cost of revenues (exclusive of depreciation and amortization) 440,071 439,794 436,059 Operating expenses 95,452 76,562 75,806 Research and Development 804 — — Depreciation 8,745 7,350 6,843 Amortization 14,199 9,588 9,796

Total costs and expenses 559,271 533,294 528,504

Operating income 33,782 49,150 55,982

Other expenses

Interest expense, net of interest income 10,756 10,265 15,519 Loss on extinguishment of debt 2,725 — —

Total other expenses 13,481 10,265 15,519

Income from operations before tax 20,301 38,885 40,463

Income tax provision 8,161 14,487 14,774

Net income 12,140 24,398 25,689

Foreign currency translation (1,258) 269 218

Comprehensive income $ 10,882 $ 24,667 $ 25,907

Earnings per share

Basic $ 0.18 $ 0.37 $ 0.39 Diluted $ 0.18 $ 0.36 $ 0.38

Weighted average common shares outstanding

Basic 65,780 66,014 65,933 Diluted 66,863 67,205 67,337

GLOBAL CASH ACCESS HOLDINGS, INC. AND SUBSIDIARIES
SELECTED BALANCE SHEET AND CASH FLOWS INFORMATION
(In thousands)

Year Ended December 31, Selected Balance Sheet Information: 2014 2013 Current assets

Cash and cash equivalents
$ 89,095 $ 114,254 Settlement receivables
43,288 38,265

Current liabilities

Settlement liabilities
119,157 145,022 Current portion of long-term debt
10,000 1,030

Non-current liabilities

Long-term debt, less current portion and original issue discount
1,178,787 101,970

Total stockholders’ equity 231,473 218,604

Year Ended December 31, Selected Cash Flows Information: 2014 2013 2012
Cash flows from investing activities

Acquisitions, net of cash acquired $ (1,072,819) $ — $ — Capital expenditures (18,021) (13,900) (12,786)

Cash flows from financing activities

Proceeds from long-term debt 1,200,000 — —

GLOBAL CASH ACCESS HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME TO CASH EARNINGS
AND OPERATING INCOME TO EBITDA AND ADJUSTED EBITDA
(unaudited)


Three months ended December 31, Twelve months ended December 31,
December 31, 2014 December 31, 2013 December 31, 2014 December 31, 2013 Reconciliation of net income to cash earnings (amounts in thousands, except earnings per share amounts)

Net (loss) income $ (5,749) $ 5,704 $ 12,140 $ 24,398 Equity compensation expense 1,343 1,376 8,876 5,078 Deferred income tax (1,941) 3,308 6,613 13,643 Amortization 5,723 2,614 14,199 9,588 Asset Impairment 3,129 — 3,129 — Accretion of contract rights 301 — 301 — Acquisition costs and purchase accounting adjustments 10,041 — 10,995 — Write-off of deferred loan fees 2,725 — 2,725 —

Cash earnings $ 15,572 $ 13,002 $ 58,978 $ 52,707

Diluted weighted average number of common shares outstanding 66,397 67,394 66,863 67,205

Diluted cash earnings per share (“Cash EPS”) $ 0.23 $ 0.19 $ 0.88 $ 0.78

Reconciliation of operating income to EBITDA and Adjusted EBITDA

Operating income $ 376 $ 11,196 $ 33,782 $ 49,150 Plus: depreciation and amortization 8,766 4,543 22,944 16,938

EBITDA $ 9,142 $ 15,739 $ 56,726 $ 66,088
Equity compensation expense 1,343 1,376 8,876 5,078 Asset Impairment 3,129 — 3,129 — Accretion of contract rights 301 — 301 — Acquisition costs and purchase accounting adjustments 10,041 — 10,995 —

Adjusted EBITDA $ 23,956 $ 17,115 $ 80,027 $ 71,166

GLOBAL CASH ACCESS HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF PROJECTED OPERATING INCOME TO PROJECTED EBITDA
AND PROJECTED ADJUSTED EBITDA
FOR THE YEAR ENDING DECEMBER 31, 2015

2015 Guidance Range1
Low High

Reconciliation of projected operating income to projected EBITDA and projected Adjusted EBITDA

Projected operating income $ 79,800 $ 89,800 Plus: projected depreciation and projected amortization 133,700 133,700

Projected EBITDA $ 213,500 $ 223,500

Projected equity compensation expense 9,200 9,200 Projected accretion of contract rights 9,700 9,700 Projected non-recurring litigation settlement (14,400) (14,400)

Projected Adjusted EBITDA $ 218,000 $ 228,000

Note:

1. All figures presented are projected estimates for the year ending December 31, 2015.

GLOBAL CASH ACCESS HOLDINGS, INC. AND SUBSIDIARIES
OTHER INFORMATION AND DATA
(unaudited for other data)
(amounts in thousands, unless otherwise noted)

For the Year Ended December 31,
2014 2013 2012

Revenues

Cash advance $ 233,950 $ 231,134 $ 227,517 ATM 281,469 286,049 303,159 Check services 21,118 21,611 25,401 Games 7,406 — — Other 49,110 43,650 28,409 Corporate — — — Total revenues $ 593,053 $ 582,444 $ 584,486

Operating income

Cash advance $ 63,565 $ 60,977 $ 63,785 ATM 24,934 25,347 32,333 Check services 10,812 12,365 13,930 Games 2,151 — — Other 22,107 19,631 14,457 Corporate (89,787) (69,170) (68,523) Total operating income $ 33,782 $ 49,150 $ 55,982

For the Year Ended December 31,
2014 2013 2012

Other data

Aggregate dollar amount processed (in billions)

Cash advance $ 5.0 $ 4.9 $ 4.8 ATM $ 12.7 $ 12.9 $ 13.6 Check warranty $ 1.1 $ 1.1 $ 1.2 Number of transactions completed (in millions)

Cash advance 8.8 8.8 9.0 ATM 65.0 66.2 72.3 Check warranty 3.6 3.7 4.3 View photo.FinanceInvestment & Company InformationOperating income Contact: Investor Relations
(702) 262-5068
ir@gcamail.com
or
Richard Land, James Leahy
JCIR
212-835-8500 or gca@jcir.com
[…]

Greece taps public sector cash to help cover March needs

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Greece taps public sector cash to help cover March needs
Greece is tapping into the cash reserves of pension funds and public sector entities through repo transactions as it scrambles to cover its funding needs this month, debt officials told Reuters on Tuesday.Shut out of debt markets and with aid from lenders frozen, Athens is in danger of running out of cash in the coming weeks as it faces a 1.5 billion euro loan repayment to the International Monetary Fund this month.The government has sought to calm fears and says it will be able to make the IMF payment and others, but not said how.At least part of the states cash needs for the month will be met by repo transactions in which pension funds and other state entities sitting on cash lend the money to the countrys debt agency through a short-term repurchase agreement for up to 15 days, debt agency officials told Reuters.However, one government official said they could not be used to repay the IMF unless Athens was able to repay the state entities the cash it borrowed from them.Debt officials sought to play the repos as advantageous for both sides, arguing that the funds get a better return on their cash than what is available in the interbank market.”It is not something new, its a tactic that started more than a year ago and is a win-win solution. Its a proposal, we are not twisting anyones arm,” one official said.In such repo transactions, a pension fund or government entity parks cash it does not immediately need at an account at the Bank of Greece, which becomes the counterparty in the deal with the debt agency.The money is lent to the debt agency for one to 15 days against collateral – mostly Greek treasury paper held in its portfolio – and is paid back with interest at expiry.The lender can always opt to roll over the repurchase agreement and continue to earn a higher return than what is available in the interbank market.One source familiar with the matter has previously said Athens could raise up to 3 billion euros through such repos, but that it was not clear how much of that had already been used up by the government.”There is a sum that has already been raised this way,” the debt official said without disclosing specific numbers.Athens – which has monthly needs of about 4.5 billion euros including a wage and pension bill of 1.5 billion euros – is running out of options to fund itself despite striking a deal with the euro zone to extend its bailout by four months.Faced with a steep fall in revenues, it is expected to run out of cash by the end of March, possibly sooner, though the government is trying to assure creditors it will not default.”We are confident that the repayments will be made in full, particularly to the IMF, and there will be liquidity to get us through the end of the four-month period,” Finance Minister Yanis Varoufakis said during a late-night talk show on Greek TV on Monday. “March is sorted.” [Reuters]
[…]

Council chief hits back in £4m Old Trafford hotel loan row

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The leader of Trafford council has fought back after criticism over a potential £4m loan to Lancashire County Cricket Club for a new hotel.

The club announced that following a £5m cash injection, the plan for the four-star 150 bedroom hotel, replacing the current one at the Emirates Old Trafford, had moved a step closer.

Bosses say the £12m project will create £1m-worth of employment a year and bring in an extra £2.3m.

Greater Manchester’s combined authority has agreed to provide the £5m loan.

But the plan hinges on another loan, for £4m, from Trafford town hall. The club has already secured the remaining £3m.

Council bosses say the loan will be secured by the town hall at a preferential rate, before the cash is passed on to the cricket club.

It will be paid back, along with the combined authority loan, with interest, by 2021.

A decision will be made by the council at the end of the month.

Opposition Labour leader Andrew Western has expressed ‘concern’ over the arrangement, arguing that the council should not be taking out loans for private businesses in times of austerity.

In 2013, the council gave the club financial backing of £21m for a regeneration project by selling land to supermarket giant Tesco.

Trafford council leader Sean Anstee

Tesco bosses, struggling to secure planning permission for an extension of their Stretford store, offered to buy an unused plot at a nearby high school for £20m more than its worth – if the cash was ring-fenced for the cricket club.

The land-deal was met with fury by Labour councillors.

Coun Western said: “Once again, the council finds itself in the position of being asked to provide financial support to Lancashire County Cricket Club just a few years after gifting some £21m to the club to furnish its recent redevelopment.

“Although I appreciate that on this occasion, we would be talking about a loan rather than a gift, it does concern me that a private business should need to come to the council once more for assistance.

“If this proposal is as sound as is being suggested, the club would be able to source a bank loan for the amount required independently.

“I do not believe the council should be expected to help them out to the tune of millions of pounds yet again at a time of continued austerity.

“I would much rather see investment in the local economy used to support small and medium-sized enterprises who are struggling to access lending in what continues to be a difficult financial climate.”

The council has to cut £21.5m from the books this year.

Leader Sean Anstee said the project will create nearly 80 jobs and bring in an extra £2.3m a year for the borough.

He highlighted that the town hall will make money thanks to interest on the loan, and that council borrowing cannot be used to mitigate service cuts.

Coun Anstee, who also highlighted that the plan is backed by Labour leaders across the region, added: “The choice isn’t whether we want to borrow to fund services.

“It’s whether we use prudential borrowing to support and boost growth. We can continue in austerity and do nothing; or we can choose to lend this money, create jobs and bring an extra £2.3m in. This will cost the taxpayer nothing.”

Lib Dem leader Ray Bowker described the deal as a ‘win-win-win’.

[…]

Tailor home loan rates

FALLING interest rates are causing a surge of activity as Mount Isa area residents are looking for ways to save more money on their home loan, says Yellow Brick Road Mount Isa branch principal Steve Williams.

The Reserve Bank kept the cash rate on hold in March following a significant rate cut in February, dropping the rate to a historic low of 2.25 per cent.

Mr Williams said his branch was urging Mount Isa residents to look beyond the cuts and pay attention to where their rate fitted in comparison to the rest of the market. ‘‘Getting an interest rate that’s among the most competitive on the market is one of the best ways to make your financial goals and dreams a reality.”

Steve Williams’ top 10 tips to spend less on your loan and more on your dreams

1. Have a plan: You should plan to own your home as fast as possible, and therefore pay as little interest as possible.

2. Pay attention to the rate: Stay up to date with what the market value is on rates. Consider a $450,000 loan over 25 years. If you had a 4.95 per cent mortgage and refinanced at 4.39 per cent – your repayments would decrease by $147 a month, saving you over $55,000 in interest over the life of your loan.

3. Be prepared to refinance: To save on a mortgage, you must be prepared to go to a lender with a lower interest rate than your current one.

4. Understand the loan term: Shorter loan terms usually mean you pay less interest and pay the debt faster. Let’s say you have a $450,000 mortgage at 4.39 per cent, and you opt for a 25-year loan rather than a 30-year: you’d save $68,100 in interest alone.

5. Repayment frequency is key: The higher the frequency of payment, the slower the interest accrues and the faster you pay off the mortgage. If you pay half the monthly repayment amount fortnightly, rather than monthly, or a quarter of the monthly payment weekly, you end up saving the equivalent of an extra month’s payment each year. Consider an average mortgage of around $450,000 and a 30-year term at 4.39 per cent. You’d save around four years and four months off your loan term and more than $60,000 in interest.

6. Put windfalls into your home loan: Tax refunds, Medicare rebates and work bonuses should go into the home loan, cutting interest and speeding repayment.

7.Have the right loan: Ensure your mortgage allows you to put in lump sum amounts. Many fixed rate loans don’t allow this. If you’re offered an offset mortgage that lets you put your income directly into the loan, make sure this suits you.

8.Do it early: Increasing your repayments and putting in lump sums is most effective when you do it early in the term of the loan.

9. Know your fees: The headline repayment figure in your mortgage agreement is not the only number you should look at. Lenders charge different fees, so be cognisant of any incidentals that may not be captured in the comparison rate.

10. Beware of interest only: Don’t select an interest-only loan if you want to repay it quickly. Always opt for principal plus interest. When borrowers ‘‘set and forget’’ their mortgage, they usually pay too much interest and have the debt longer than they should.

[…]

Comment on After Ananda Krishnan loan, 1MDB now needs government cash by waterfrontcoolie

BY THE EDGE FINANCIAL DAILY
The Malaysian Insider
23 February 2015

1MDB was not only helped by billionaire T. Ananda Krishnan to settle its RM2 billion debt to banks, but it may also require a cash injection of as much as RM3 billion from its owner, the Ministry? of Finance (MoF), say sources.

They say the controversial debt-laden outfit is facing a cash crunch as income from its power assets is not enough for debt servicing and it has run out of borrowing options, as shown by having to turn to a businessman for help.

Ananda provided a 15-month RM2 billion loan to enable 1MDB to settle its loan with a consortium of local banks on February 13.

Sources familiar with the matter confirmed this with The Edge Financial Daily and also expressed their surprise that 1MDB president and group executive director Arul Kanda Kandasamy had dismissed media reports about the loan from Ananda as mere speculation.

Arul had announced on February 13 that 1MDB had settled the RM2 billion owed to the consortium led by Maybank and RHB Bank Bhd which was first due on November 30, 2014. The loan was settled in time to prevent the banks from declaring a default.

Arul did not explain how it raised the money in his February 13 statement, but in an interview with Mingguan Malaysia? two days later, he said reports that AK lent the money were pure speculation.

“Ananda has never said anything about this matter. This is speculation by third parties,” Mingguan Malaysia quoted him as saying.

“I don’t know how he (Arul) can claim that (AK did not help),” says a source.

“It was a simple, clean loan (with no conditions) as AK did not want to be seen as taking advantage (by setting tough conditions).”

In reply to questions by The Edge on why he could not just come out and disclose how 1MDB raised the money, Arul said: “The facts on the (settlement of the) loan will be revealed in the appropriate forum/time i.e. our next set of accounts. To demand any different is to set a different standard for 1MDB which is not only unfair, but also ignoring our right and that of our stakeholders to legal and commercial confidentiality”.

Paying off the RM2 billion debt does not solve the problem for 1MDB, which has total debts of more than RM42 billion and annual debt servicing of RM2.31 billion and a negative cash flow of RM2.25 billion in its financial year ended March 31, 2014.

Sources say that MoF is aware of 1MDB’s cash-flow problem and knows it may have no choice but to step in with a RM3 billion injection.

But in order for that to happen, approval has to be given by the Cabinet, given the large amount of money involved and all the controversy that 1MDB has generated.

The government had on February 11 and 12 raised RM2.1 billion through two treasury bill issues that money market dealers say were unusually large amounts. Sources say the MOF could be getting the money ready should it go ahead and come to the aid of 1MDB.

The cash injection will have to be done before 1MDB’s next financial year close on March 31, 2015 – which is just five weeks away.

?Despite concerns raised by so many parties, MOF officials have always insisted that 1MDB was financially healthy and that the government only had to put in RM1 million as initial capital because the company was strong enough to borrow to fund itself.

Arul, in a February 18 press release on its strategic review, said 1MDB would stop borrowing from now.

Sources say the truth is that 1MDB can no longer go to the market to borrow – whether through bank loans or bond issues.

“The size of its debt of RM42 billion, the massive negative cash flow it has experienced in the last two years plus its struggle to pay the RM2 billion makes it difficult for any bank to lend to them,” says one banker.

“Bond investors will also shy away from any new debt it wants to issue.”

1MDB recently called off a RM8.4 billion Islamic bond that it had planned to raise cash to finance the 3B power project.

Bankers say it was cancelled because of lukewarm response. Sources say bankers have also taken note of the fact that 1MDB has had difficulties proceeding with its plan to float its power assets to raise cash. – February 23, 2015.

[…]

Cash Sales On Track To Decline To Pre-Crisis Levels By 2017

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Cash Sales On Track To Decline To Pre-Crisis Levels By 2017

Peoples Home Equity shares a recent article from Corelogic regarding the share of cash sales recorded in October 2014 and what it means going forward.

Lenders like Peoples Home Equity has a high expectation of more active home buyers this spring and summer

Chicago, IL (PRWEB) February 16, 2015

Peoples Home Equity was intrigued by a recent January 14th Corelogic article titled “At Current Rate of Decline, Cash Sales Share Should Reach Pre-Crisis Levels in 2017.”

Corelogic begins its article by highlighting the fact that “Cash sales made up 35.5 percent of total home sales in October 2014, down from 38.7 percent in October 2013. In addition, this decline marks the 22nd consecutive month of year-over-year price declines since January 2013.

In terms of monthly performance Corelogic stated “Month over month, the cash sales share ticked up by half of a percentage point, as is typical for the fall and winter months. Due to seasonality in the housing market, cash sales share comparisons should be made on a year-over-year basis. The peak occurred in January 2011 when cash transactions made up 46.4 percent of total home sales. Prior to the housing crisis, the cash sales share of total home sales averaged approximately 25 percent. At the current rate of year-over-year decrease, the cash sales share should be back to pre-crisis levels in 2017.”

Peoples Home Equity thinks a pre-crisis level of cash sales will create a great environment for first-time home buyers to thrive. While cash sales have been on the decline since the great recession, the few number of first-time home buyers approved for a home loan have had to compete with cash buyers. Now that the number of cash sales are drying up, and more American’s have jobs, a larger number of credit worthy pre-approved first-time home buyers are set to spark a surge of financed home sales this spring and summer. Lenders like Peoples Home Equity has a high expectation of more active home buyers this spring and summer since Corelogic’s map (picture attached) showed that both East and Midwest states had the highest number of total home sales being cash. To name a few; Indiana 41% of total sales were cash sales, Kentucky 41%, Tennessee 41%, Michigan 43%, New York 44%, Alabama 51%, and Florida 51%. To be more specific, “Miami-Miami Beach-Kendall, Fla. had the highest share of cash sales at 56.6 percent.”

The area with the lowest share of cash sales was “Washington-Arlington-Alexandria, D.C.-Va.-Md at just 16%. Maryland was the only state to have the total share of cash sales be under 20%, at just 15%.

If in need of a mortgage, contact a Peoples Home Equity loan officer today at: 262-563-4026


[…]

7 Ways to Build Your Credit Score Without a Credit Card

Unless you have a ton of cash at your disposal, you’ll probably need credit at some point in your life. Whether you’re buying a home, car or big-ticket luxury item, the first thing that most lenders typically look at is your credit score.

If you have limited or no credit history, you’ll need to begin building your credit and boost your score before you apply for a major loan. Unfortunately, many believe that opening and using a credit card is the only way to go.

Here are a few alternatives to help raise your credit scores without the magic plastic:

1. Ask companies to report on your behalf

Do you have any recurring bills that you pay on a monthly basis, such as rent, utilities, cable or a cellphone? Try giving the providers a call and request that they report your account activity to the three major credit bureaus, TransUnion, Experian and Equifax.

Do this only if you have responsible payment habits, as payment history accounts for 35 percent of your credit scores and can have a significant impact if there is not a lot of other data in your credit reports.

Also, bear in mind that these companies are not obligated to report to the bureaus, and your request is simply a favor that they have the right to deny.

2. Become an authorized user on another credit card

Of course, there are pros and cons to becoming an authorized user. If the cardholder has a strong credit background, two thumbs up for you because signing on as an authorized user will enable their stellar behavior to improve your credit profile somewhat (perhaps not as much as you think). But, if things are the other way around, your credit scores could take a hit.

Either way, if you opt in and have a change of heart, the information will quickly vanish from your credit file when you request to be removed from the account.

3. Open an account with a credit union and take out a small personal loan

Some credit unions have restricted membership and limited accessibility, but credit unions generally offer financing options at lower interest rates than traditional banks. To give your credit score a boost, apply for a small personal loan.

If your request is denied, inquire about a secured loan in which your money, say, a certificate of deposit or savings account, will be used as collateral. The request will more than likely be approved because the risk to the institution is minimal. And you may have to pay a tad bit of interest, but the rate usually beats what’s available in the credit card world.

4. Apply for an installment loan

Installment loans paid in a timely manner over an extended period of time build your credit scores because they show creditors that you are a responsible borrower. The types of credit in your file make up only 10 percent of your score, but the impact has the potential to be greater if the information in your credit reports is limited.

Retailers sometimes offer promotional installment loans to customers with little to no introductory interest for a limited period of time. If you have the cash on hand, it may not be a bad idea to take this route. But be sure that you have the total sum of cash available upfront to make timely payments and eliminate the balance before the interest kicks in.

5. If you’re a student, take out a federal student loan

A credit check is not required to obtain a federal student loan. All you need to do is fill out the Free Application for Federal Student Aid (FAFSA), and you’re all set. Since it is an installment loan, it can help boost your credit score.

But don’t get the loan and blow through the money. Instead, aim for one that is subsidized and deposit the money into a safe interest-bearing account so the funds will be available when repayment starts.

6. Research peer-to-peer loans

Companies such as Prosper and Lending Club offer peer-to-peer loans in an environment where borrowers are connected with individual investors. The interest rates are usually lower than those of traditional financial institutions. And the lenders are eager to loan unsecured funds because the return they derive is competitive with other investments. (See “4 Things to Know About Peer Lending.”)

Most of the peer-to-peer lenders report to the major credit bureaus.

7. Try an alternative credit score

By reporting your payment history to an alternative to the big three credit bureaus, you can create a nontraditional credit score. Check out a service like Payment Reporting Builds Credit, known as PRBC, to learn more about how an alternative credit score service works.

Do you know of any other ways to improve your credit score without using a credit card? Feel free to share it in the comments below or on our Facebook page.

For more tips on raising your score, watch this video by finance expert Stacy Johnson:

Watch the video of ‘7 Ways to Build Your Credit Score Without a Credit Card’ on MoneyTalksNews.com.

This article was originally published on MoneyTalksNews.com as ‘7 Ways to Build Your Credit Score Without a Credit Card’.

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Sitrade Italia-Spa Recognized as Fastest Growing Cash Handling Equipment Manufacturer

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ResearchMOZ

In the fourth segment, the market size data of the 80 largest manufacturers of cash handling equipments in the world are compared.

Albany, NewYork (PRWEB) February 11, 2015

ResearchMoz has announced the addition of a new market study that offers an analysis of the cash handling equipment manufacturers worldwide. The research report, titled “Cash Handling Equipment Manufacturers (Global) – Industry Report”, offers an analytical report with a detailed study of 140 major manufacturers of cash handling equipment across the global cash handling equipment market, including their market strategies and their penetration level in the global cash handling equipment market.

Read The Full Report With TOC @ http://www.researchmoz.us/cash-handling-equipment-manufacturers-global-industry-report-report.html

Cash handling is the procedure of dispensing, tracking, and counting cash in a bank, cheque en-cashing, payday loan/advance, retail, casinos, and other business environments through specially designed software and hardware to prevent losses, theft, and to reduce management time for errors in cash drawer operations. Cash handling equipment include automatic teller machine (ATM), cash dispenser, cash validator, cash recycler, loose coin validator, rolled coin dispenser, and intelligent banknote neutralization system.

This research report on cash handling equipment manufacturers across the world is categorized into various sections and contains both written and graphical information of the global cash handling equipment manufacturers, all of it updated exhaustively.

The first section presents a thorough study on the global cash handling equipment market. This segment consists of manufacturers that are the leaders in the market in both sales as well as financial might. Ingenico GmbH has been ranked as the best trading partner in the global cash handling equipment industry.

The second section analyzes the sales growth and reviews the fastest developing and fastest shrinking manufacturers among the 140 key cash handling equipment manufacturers across the globe. Sitrade Italia-Spa is one of the fastest developing cash handling equipment manufacturers in the world.

The third section evaluates the gross and pre-tax profit statistics over the past ten years. In this section, a profitability synopsis is presented by comparing profits in the global cash handling equipment industry against small, medium, and large cash handling equipment manufacturers over the world.

Request A Sample The Report @ http://www.researchmoz.com/enquiry.php?type=sample&repid=240213

In the fourth segment, the market size data of the 80 largest manufacturers of cash handling equipments in the world are compared. This comparison is carried on the basis of the previous year’s market size and the most recent figure.

Among the next two segments, the first one ranks the top 50 cash handling equipment manufacturers on the basis of their market share, growth rate in sales, and gross and pre-tax profit. The other one determines the best performing cash handling equipment manufacturers according to their strong financial conditions and outstanding sales growth rates during 2014.

The last segment focuses on profile analysis of companies and provides a comprehensive study of the largest global cash handling equipment manufacturers within the industry.

About Us

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[…]

4Ps beneficiaries pawn cash cards

BACOLOD CITY—The Department of Social Welfare and Development (DSWD) is conducting an inventory of its propoor cash transfer scheme program after 259 beneficiaries in Negros Occidental province were found to have pawned their cash cards.

Dionela Flores-Madrona, head of provincial operations of the Pantawid Pamilyang Pilipino Program (4Ps), or the conditional cash transfer scheme, said the move would ensure that the cards are still with beneficiaries and not with loan sharks.

The program is aimed at helping the poorest of the poor by giving them monthly stipends, provided they bring their children to health centers, send them to school, and attend family development sessions.

Madrona said the 259 had pawned their cards to usurers for P500 to P1,000 each. The most common reason given by the beneficiaries is that they needed money urgently for the hospital expenses of relatives.

At least 96 were found to have pawned their cash cards in Bacolod, 66 in Cadiz City, 51 in Escalante City, 19 in San Carlos City, 10 in Talisay City, 14 in Hinigaran town, two in Silay City, and one in Toboso town.

The irregularity was discovered in December last year after the DSWD verified a tip that several beneficiaries had pawned their cards—actually, automated teller machine cards of Land Bank of the Philippines—through which 4Ps beneficiaries get their cash allocations.

Loan sharks collect payment by withdrawing the money meant for the beneficiaries.

Cash assistance to 4Ps beneficiaries is released every two months. The amount per family ranges from P600 to P2,800, depending on the number of children a beneficiary has.

In Negros Occidental, including Bacolod, there are 126,667 4Ps beneficiaries.

Those caught misusing their cards are made to sign a notice of warning from the DSWD and given counseling by a social worker.

They would not also receive their cash assistance for the month, but would not yet be removed from the program. Those committing the offense for the third time would be permanently delisted.

Madrona said the DSWD could not sue the loan sharks in the absence of a law penalizing them.

But the agency could confiscate the cash cards, which are government property, she said.

[…]

Protesters seek limits on payday lenders

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Protesters from the anti-poverty advocacy group ACORN rally outside a new Cash Money payday loan store on Kingsway at Griffiths. The group says the City of Burnaby should limit the number of such outlets and their proximity to each other.

— image credit: MARIO BARTEL/NEWSLEADER

Their chants expended, a small group of protestors from the anti-poverty advocacy group ACORN tucked their placards under their arms on Tuesday and strolled from in front of a Cash Money payday loan outlet at Kingsway and Griffiths to a Money Mart 200 metres east.

Which was just the reason for their ire.

Monica McGovern, the chairperson of ACORN’s Burnaby chapter, said there’s too many short-term lending establishments too close to each other in the city. That makes it too easy for low-income people who may not use conventional banks to access expensive loans.

Eventually they’re snowed under by their obligations to the lenders, further miring them in poverty, said McGovern.

“This is the poor they’re exploiting,” said McGovern. “They set people up for failure.”

The Cash Money outlet where ACORN members protested opened on Jan. 14.

But with another pay day lender close by already, McGovern said it’s time the City of Burnaby start limiting the licenses for such establishments.

“We’re concerned because these stores keep on popping up,” said McGovern.

Their proximity to each other allows clients from skirting provincial regulations that prevent a pay day lender from advancing money if the client already has an outstanding loan to that lender; the customer just has to walk down the street to get the money, along with the increased debt.

But fighting that regulatory battle, along with high interest rates such lenders charge – up to 23 per cent – is ongoing, said McGovern.

Meanwhile, municipalities like Burnaby can take steps to restrict the access impoverished people have to payday lenders.

“We urge city council to address this issue and limit the proliferation of these businesses,” said McGovern who pointed out nothing has happened at the civic level since ACORN made a presentation to council last February.

The issue was referred to the Community Development Committee for further study.

In April the City of Surrey proposed an amendment to its bylaws to create at least 400 metres separation between payday loan stores.

[…]