News
TRM/Access to Money reports sales increase, net loss for 1Q
May 19, 2009
CHERRY HILL, N.J. — TRM Corp./Access to Money Inc. reported first quarter sales of $22.2 million, up from the $18 million reported during the same period in 2008. Net losses for the quarter, however, also were up, going from a net loss of $400,000 in Q1 '08 to a net loss of $700,000 in Q1 '09. But Richard Stern, TRM's president and chief executive, said the quarter reflected the company's positive moves toward cost-cutting and restructuring.
"The first quarter of 2009 was the first true quarter in some time where our performance was not impacted by the complicating factors that affected our results in prior periods," Stern said. "We have completed most of our restructuring and integration efforts, we are operating fairly close to what can be described as an 'end state' condition, and we continue to show significant improvement in all areas. Most impressive was $1.3 million of adjusted EBITDA, representing a 160-percent improvement over the first quarter of 2008."
Net sales for the quarter were down slightly, Stern said, because of the unusually high parts and service revenue the company experienced in 2008 as a result of Triple-DES-related sales. Additionally, during Q4 '08 the company experienced an increase in the average surcharge per withdrawal due to TRM customers' willingness to raise the surcharge at many locations, as well as improved per-ATM withdrawals per month.
At the end of Q1 '09 the company's average number of transacting ATMs was 11,425 units, compared with an average of 11,649 units during the fourth quarter of 2008. During the first quarter of 2009, TRM says it actively sought to remove lower performing ATMs.
The company also made strides toward cutting expenses. During Q1 '09, sales expenses were cut 23 percent when compared with the same period in 2008. The largest savings came from vault-cash expenses, which decreased by $517,000 to $465,000 from the first quarter of 2008 and by $267,000 from the fourth quarter of 2008.
"Our continued focus on the key metrics and core drivers of the business are evident in our financial results," said Michael Dolan, TRM's chief financial officer. "We are continuing our efforts to analyze transactional statistics at the micro level and install the operating systems and analytical tools needed to further improve our results. Profitability at the individual machine level and costs per transaction including processing, armored car, maintenance and support and cash deployment are critical to our success and remain as target areas of review throughout 2009."
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