News
TRM losses continue, but improvement expected
July 23, 2007
PORTLAND, Ore. - TRM Corp. released its first quarter results for 2007 on July 19.
The company reported a net loss of $2.2 million for 1Q '07, a loss that's 47 percent greater than the $1.5 million loss the company reported during 1Q '06. But, the loss is an improvement from the end of last year, when TRM reported net losses of $15.2 million for the fourth quarter.
Despite the losses, Richard Stern, who took the company's helm in June, said the first quarter reflected numerous successes, including improved attrition rates and cost reductions associated with sales and administration.
"While I applaud these accomplishments, our efforts are not yet complete and we are working diligently to further enhance the performance of our ATM estate and our overall cost structure," Stern said.
TRM sold its Canadian photocopy business in June, closing out the final part of its Canadian operations after selling its Canadian ATM business in late 2006. In June 2006, TRM sold its U.K. photocopier business.
Now focusing its business on ATMs, TRM says it expects to reveal financial improvements in its second quarter results. Improved telecommunications costs are expected to result in more than $500,000 of annual cost savings. Reductions in monthly cash management costs per ATM, from 230 in the third quarter of 2006 to approximately $181, also are expected to have an impact - resulting in an estimated annual cost savings of $280,000.
TRM says it also plans to cut its cash-delivery costs from $105-$110 per machine per month to $90-$95 per machine per month, resulting in savings of $400,000-$500,000 annually.Sales for the first quarter came in at $22.9 million, a 22 percent drop from the first quarter of last year and an 8 percent drop from 4Q '06.
The company's average number of transacting ATMs in 1Q '07 was 10,808, down from 13,122 during 1Q '06 and 11,511 in 4Q '06. TRM expects that number to continue to drop throughout 2007, unless the company executes its previously announced plan to seek acquisition-led growth.
"Regarding potential acquisitions, we continue to explore strategic opportunities and we plan on pursuing transactions if they create accretive growth while not requiring burdensome leverage," Stern said. "We want to pursue opportunities that provide positive growth to our existing platform provided that such opportunities are not dependent on unrealistic or overly speculative cost savings or synergies to justify a transaction."
OtherDistributors / ISO / IADRetail / Off-PremisesBanking Executive SummaryNorth AmericaPublic CompaniesBank / Credit Union
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