News
TRM reports continued losses for 3Q
November 12, 2007
PORTLAND, Ore. - TRM Corp. reported losses for the third quarter of 2007, with net losses more than double what they during the second quarter of the year. Reported net losses for 3Q 2007 were $4.9 million, up from the $2.2 million net loss reported in 2Q.
"While our third quarter results do show an increased loss as compared to last quarter, we are encouraged by the fact that on a purely operational basis, we continue to see progress," said Richard Stern, President and chief executive of TRM. "Unfortunately, our story remains somewhat clouded by continued cleanup and one time events that we don't expect will impact our results in the fourth quarter or beyond. We are also further encouraged by the fact that our average withdrawals per (ATM) unit per month have been maintained at a level consistent with the same period one year ago, which points to our focus on maintaining the quality of our existing estate."
TRM says its revenue and sales, which hit $23.3 million during the quarter, down only slightly from the $23.5 million reported in 2Q, reflects a consistent level of transactions per unit despite the fact that the company is operating with fewer ATMs in the field.
The average number of transacting ATMs was 10,176, down from the 10,473 ATM average reported last quarter. The differential, TRM says, reflects the loss of two large retailers, one of which included approximately 125 transacting units at comparatively low net margins.
TRM expects its number of transacting ATMs to continue declining throughout the rest of 2007, unless the company executes on its previously announced desire to seek acquisition-led growth.
To date, TRM has added 1,544 new ATMs since the beginning of the year, including 451 in 3Q. That figure includes the addition of 122 full-placement units, which traditionally generate a higher gross margin per unit than merchant-owned ATMs.
"We remain focused on optimizing our ATM estate for maximum profitability," Stern said. "We continue to evaluate the profitability of certain accounts and will remove machines that are unprofitable. While our attrition was higher in the third quarter than in the second quarter, our efforts to add and retain higher quality ATMs were successful. Overall, attrition continues to be a challenge, but ultimately we believe the quality of our portfolio is improving and we will continue to be diligent in maintaining our estate."
TRM reported an operating loss of $3.2 million during the quarter, compared to an operating loss of $1.6 million during 2Q.
OtherDistributors / ISO / IADRetail / Off-PremisesBanking Executive SummaryNorth AmericaPublic CompaniesBank / Credit Union
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