News

TRM's financial results driven by ATM business

January 29, 2002

PORTLAND, Ore. -- TRM Corporation (Nasdaq: TRMM) announced that revenue for the fourth quarter ended Dec. 31, 2000 increased to $19.5 million, up 9 percent from $17.9 million in the year-earlier quarter. Annual revenue for 2000 was $76.1 million, or 11 percent above the $68.3 million recorded last year. 

Revenues from TRM's ATM business drove the revenue increase and contributed $3.7 million and $10.4 million of the totals for the quarter and year. CopyCenter revenue was $15.5 million and $64.9 million for the quarter and the year. E-commerce revenue contributed $300,000 for the quarter and $800,000 for the year.

"Consistent with our expectations, 2000 was a year of significant expansion for our ATM business unit. We began the year with 443 ATMs installed and completed the year with 1,857 ATM's installed," said Fred Stockton, CEO and president.  "Our ATM business experienced its most significant growth in the United Kingdom. We see a continuation of that growth trend into 2001 and anticipate nearly doubling our installed ATM base in the year ahead."

The company reported a net loss of $2.7 million and a loss of 38 cents per common share of in the fourth quarter of 2000 and a net loss of $5.4 million or  76 cents per share for the full year.  In the fourth quarter, the company changed its method of depreciation of a substantial portion of its photocopier assets from the straight-line method to the units of production method in order to more closely match its transaction based revenue stream and its depreciation charges. This change resulted in a benefit of $600,000 or nine cents per share for the quarter.  Excluding this change, the net loss for the quarter would have been $3.3 million, or 47 cents per share.

Earnings for 2000 include a cumulative one-time benefit net of taxes of $900,000 or 13 cents per share, as a result of the change in accounting method for the period since the incorporation of the Company through 1999.

TRM's CopyCenter business recorded income before interest, taxes, minority interest and cumulative effect of the change in accounting method of $800,000 for the quarter and $5.5 million for the full year, while the ATM and e-commerce businesses recorded losses of $2.3 million and $1.1 million respectively for the quarter and $8.6 million and $2.3 million for the full
year. 

According to TRM, the operating losses are a result of the early stage nature of those businesses. The ATM business was started less than two years ago and the e-commerce business was formed in the second quarter of 2000.

TRM also announced that it had completed an amendment of its loan agreement with Bank of America. The amendment waives past noncompliances of TRM with the loan agreement and establishes new financial covenants for the year ahead.

As of December 31, 2000, 33,355 TRM CopyCenter locations were installed in North America and Europe and 1,857 ATMs were installed in the U.S. and the UK.