News

TRM reports losses

May 4, 2006

PORTLAND, Ore. - TRM Corp. announced losses for the first quarter of 2006.

The company's gross sales fell 10 percent from first-quarter 2005, from $58.8 million to $53 million. Net sales fell 13 percent from 1Q '05, $33.4 million, to $28.9 million.

The year-over-year decrease in sales reflects a net decline in unit-count and cash withdrawals associated with the ACI ATM portfolio acquired from eFunds Corp. in November 2004 and declining revenue from the TRM's photocopy business, the company said.

The company's liabilities, which reflect vault-cash obligations and the reclassification of long-term debt, totaled $188.7 million as of March 31, down from $193.9 million at the end of 2005.

TRM said it expects to complete its debt refinancing by June 15 and doesn't expect the interest rate to be "significantly greater" than what it is paying under the forbearance agreement.

1Q '06 adjusted EBITDA was $5.4 million, up from an adjusted EBITDA of negative $6.4 million in 4Q '05 but down from adjusted EBITDA of $11.2 million in the first quarter of last year.

TRM's profit for the quarter was $11.7 million, down from $15.9 million in 1Q '05. But cash losses from theft in the United Kingdom in 1Q '06 fell more 70 percent from the same quarter last year, TRM said. Net loss for quarter was $1.5 million, negative 9 cents per share, down from net income of $1.7 million, 10 cents per share in 1Q '05.

ATM net sales for the quarter increased 15 percent from 4Q '05, but fell 13 percent from 1Q '05. Net sales in the company's photocopy business reflected similar losses, falling 15 percent from 1Q '05 and 7 percent from 4Q '05.

The company attributed losses in the photocopy business to lower copy volumes per unit. TRM said it expects to focus on expense controls and price increases in the photocopy business through the remainder of 2006.