FDD Talk: Our Latest Views on the Possible Results of ACFN Franchisees Operating 10 ATMs (2014 FDD)

Highlights of ACFN’s Item 19 Financial Performance Representations (2014 FDD) – Part 3 of 4

• The 3 tables (Parts 1 to 3) are based on information compiled using every surcharge transaction that took place at all operational ACFN ATMs located in the United States during the company’s 2013 fiscal year. These ACFN ATMs are referred to in this financial performance representation as the “2013 ATMs.”

• There were 2,033 2013 ATMs, located in 47 different states, that were operating for at least some portion of the 2013 fiscal year.

• The length of time each 2013 ATM was operational during the 2013 fiscal year varied as follows:

• 1,795 were operational for 12 full months;
• 78 were operational for more than 9 months, but less than 12 months;
• 45 were operational for more than 6 months, but less than 9 months;
• 62 were operational for more than 3 months, but less than 6 months; and
• 53 were operational for less than 3 months.

• The 2013 ATMs are primarily located in hotels and other travel and entertainment-based businesses.

• While the Transaction Fee and the Administrative Fee are the same for each ATM, other fees and averages described in Item 19 may vary from state to state.

• The information provided in Item 19 regarding the 2013 ATMs is based on third-party processor network reports. ACFN collected this information, but has not independently audited or verified it.

• All numbers in the tables are rounded to the nearest dollar.

• Using the information described above, ACFN calculated the following averages:

• Average Dispense – Represents the average amount of money withdrawn in a single surcharge transaction from a 2013 ATM. This average was calculated by dividing the total amount of cash withdrawn from all 2013 ATMs during the 2013 fiscal year by the total number of cash withdrawals. The average for the 2013 fiscal year was $94.68. Of the 2,033 2013 ATMs, 1,129 or 55% were below this average, and 904 or 45% were at or above this average.

• Average Surcharge Collected – Represents the average fee collected by a 2013 ATM for a single surcharge transaction, and was calculated by dividing the total surcharge collected by all 2013 ATMs during the 2013 fiscal year by the total number of surcharge transactions. The average surcharge for the 2013 fiscal year was $2.91. Of the 2,033 2013 ATMs, 429 or 21% were below this average, and 1,604 or 79% were at or above this average.

• Average Profit Share – Represents the average amount paid per surcharge transaction to the location owner of each of the 2013 ATMs, and was calculated by dividing the total paid to all 2013 ATM location owners during the 2013 fiscal year by the total number of surcharge transactions. The average profit share for the 2013 fiscal year was $0.96. Of the 2,033 2013 ATMs, 1,328 or 65% paid at or below this average, and 705 or 35% paid above this average.

10 ATMs

Transactions Per Day:  1