ATM provider TRM has changed its name to Access to Money. The Company’s
ticker symbol will change
to AEMI and its common stock will continue to trade on the OTCBB. The
Company has also changed its state of incorporation from Oregon to Delaware.
TRM Corporation is a consumer services company that provides convenience
ATM services in high-traffic consumer environments.
ATM specialist TRM reported that first quarter sales rose 23% to $22.2
million. The Company ended the quarter with 11,425 transacting ATMs
compared to 11,649 in the prior quarter. Net sales were $7.3 million
compared to $7.4 million in 1Q/08. The slight reduction in net sales
compared to the year ago quarter reflects the unusually high parts and
service revenue experienced in 2008 due to the impact of the Company’s
“Triple Des” upgrade program. On a sequential basis, net sales were $7.3
million in the first quarter as compared to $6.8 million in the fourth
quarter. The net loss widened to $700,000 from $400,000 in 1Q/08. During
the quarter, TRM entered into a contract to provide ATMs and related
services for the New Jersey Sports & Exposition Authority and entered
into an agreement with Harkins Theatres to provide over 20 new ATMs to
locations throughout the Southwestern U.S. For complete details on TRM’s
first quarter performance visit CardData ([www.carddata.com](http://www.carddata.com)).
TRM HISTORICAL GROSS SALES
1Q/07: $22.9 million
2Q/07: $23.5 million
3Q/07: $23.3 million
4Q/07: $20.6 million
1Q/08: $18.1 million
2Q/08: $23.9 million
3Q/08: $25.2 million
4Q/08: $21.5 million
1Q/09: $22.2 million
Source: CardData (www.carddata.com)
ATM specialist TRM reported that fourth quarter sales rose 4.3% to
$21.5 million. The Company ended 2008 with 11,522 transacting ATMs
compared to 9,307 transacting ATMs at the end of 2007. Average
transactions per ATM in 2008 were 264 compared to 286 in 2007. The
change in transaction per ATM between the periods is due to a mix of
contracts that were acquired with “Access to Money.” TRM reported an
operating loss of $26.1 million for the full year 2008. The Company says
going through restructuring efforts during 2007 and early 2008 has
provided it with a scaled and streamlined operating cost baseline that
allowed it to weather the downturn in the economy. For complete details
on TRM’s fourth quarter performance visit CardData ([www.carddata.com](http://www.carddata.com)).
TRM HISTORICAL GROSS SALES
4Q/06: $24.9 million
1Q/07: $22.9 million
2Q/07: $23.5 million
3Q/07: $23.3 million
4Q/07: $20.6 million
1Q/08: $18.1 million
2Q/08: $23.9 million
3Q/08: $25.2 million
4Q/08: $21.5 million
Source: CardData (www.carddata.com)
Portland, OR-based TRM reported third quarter net sales of $8.7 million, a 5% year-on-year increase. The growth was primarily attributable to increased transactions driven by the acquisition of Access to Money and the increase in the average number of transacting ATMs offset by a slight decline in the average withdrawal per ATM per
month. The adjusted EBITDA rose for the fourth consecutive quarter to $0.9 million as the company continued to manage expenses downward including the renegotiations of various contracts. TRM, the third largest non-bank ATM network in the U.S., also reported that the average number of transacting ATMs was 11,813 during the third quarter, compared to an average of 10,176 for 3Q/07. The average transaction-based sales per withdrawal was $2.35 per withdrawal, compared to $2.39 per withdrawal in the third quarter of last year. During the third quarter TRM renewed its contract with AMF Bowling and re-located substantially all of its customer service staff to its expanded Whippany, NJ office. For complete details on TRM’s third quarter performance visit CardData ([www.carddata.com](http://www.carddata.com)).
ATM supplier TRM Corporation has announced that its Chairman of the Board of Directors
Jeffrey Brotman has resigned and Michael E. Venezia has been
appointed to serve on the Board.
Brotman’s resignation is based solely on personal considerations
unrelated to TRM and did not result from any disagreement with the Company
concerning any matter relating to the Company’s operations, policies or
practices. Venezia has been a Credit Analyst for Lampe, Conway
& Co. LLC since June 15, 2005. Before joining Lampe, Conway & Co. LLC., he
served as a Vice President in the High Yield Group of Weiss, Peck &
Greer from August 2004 to June 2005. Prior to joining Weiss, Peck & Greer,
Venezia was a Vice President within Citigroup.
Portland, OR-based TRM reports second quarter gross sales of $23.9 million compared to $23.5 million in 2Q/07. However, on a sequential basis, sales were up 32% compared to $18.1 million in the first quarter. The Company noted that during the quarter it completed the acquisition of Access To Money, one of the nation’s largest independent ATM deployers with approximately 4,248 transacting ATMs. The Company also secured $11 million in financing from Lampe Conway. The average number of withdrawals per ATM per month declined slightly and the average transaction-based sales per withdrawal was $2.36 per withdrawal in the second quarter of 2007 versus $2.34 in the second quarter of 2008. The average number of transacting ATMs was 11,823 during the second quarter of 2008 compared to an average of 10,473 during the second quarter of 2007. For more details on TRM’s latest performance visit CardData ([www.carddata.com](http://www.carddata.com)).
TRM HISTORICAL GROSS SALES
2Q/06: $27.6 million
3Q/06: $26.4 million
4Q/06: $24.9 million
1Q/07: $22.9 million
2Q/07: $23.5 million
3Q/07: $23.3 million
4Q/07: $24.2 million
1Q/08: $18.1 million
2Q/08: $23.9 million
Source: CardData (www.carddata.com)
OR-based TRM reported that first quarter net sales declined 14% to $7.4 million and a net loss of $436,000 as compared to a net loss of $7.7 million in the first quarter of 2007. The average number of transacting ATMs was 8,117 during the first quarter compared to an average of 10,808 during the first quarter of 2007. The decrease in the number of ATMs in its network has been primarily in the merchant-owned, and merchant-cashed category and was primarily due to merchants electing not to upgrade their machines in compliance with network mandated encryption regulations. However, the decrease in the number of ATM’s in TRM’s network was partially offset by a 3.4% increase in average transaction-based sales per withdrawal transaction which increased to $0.86 from $0.78 in the first quarter 2007. On April 18th TRM acquired Access To Money, one of the nation’s largest independent ATM deployer with approximately 4,248 transacting ATMs for $4.2 million in cash, 3.6 million shares of common stock valued at $955,535 and a note payable to the owner for approximately $9.8 million. For complete details on TRM’s latest results visit CardData ([www.carddata.com][1]).
[1]: http://www.carddata.com
ATM provider TRM will have its stocks delisted from the NASDAQ Global Market and will focus on its recent acquisition of Access to Money and resolve its financial issues. TRM expects that the delisting of its shares will become effective on April 23, 2008. TRM’s common stock will then be eligible for quotation on the Pink Sheets. At least one registered broker-deal has indicated an intention to sponsor the Company’s shares on the Pink Sheets and to act as a market maker following delisting.
ATM provider TRM has secured financing with LC Capital Master Fund and Lampe Conway for $11,000,000 pursuant to a Securities Purchase Agreement. The loan was used to pay the cash portion of the purchase price for TRM’s acquisition of LJR Consulting Corp., d.b.a. Access To Money; to pay eFunds $2.5 million in satisfaction of the settlement reached last December; to satisfy all of the company’s remaining loan to GSO Capital Partners; to pay $1.0 million to “Notemachine Limited” in further reduction of the Company’s obligations under the Settlement Agreement dated as of November 20, 2007, to satisfy in full the Company’s loan from the Lender and the Administrative Agent dated February 4, 2008 and (f) to pay fees and expenses incurred in connection with the Purchase Agreement and the “Access To Money” acquisition. In connection with the Purchase Agreement, the Company issued warrants to the Lender to purchase 12,500,000 shares in aggregate of the Company’s common stock.
TRM’s 2007 financial statements included in the Company’s Form 10-K filed with the SEC on March 31st, the audit opinion of McGladrey & Pullen contained an explanatory paragraph raising a question about the Company’s ability to continue as a going concern. The Company’s 2006 financial statements included a similar statement from its then auditors PricewaterhouseCoopers LLP. TRM Corporation is a consumer services company that primarily provides convenience ATM services in high-traffic consumer environments.
OR-based ATM specialist TRM reported fourth quarter net sales of $7.9 million versus $9.7 million in 4Q/06. However, net income for the fourth quarter was $906,000 compared with a net loss of $15.2 million in the prior year period. In 2007, gross sales were $90.4 million and net sales were $33.7 million. Revenue performance reflects a consistent level of transactions per unit with fewer ATM units in the field. The average number of transacting ATMs was 10,253 during 2007 compared to an average of 12,378 during 2006. The decrease is primarily the result of attrition in ATM contracts acquired from eFunds in 2004. The Company expects the number of ATMs will continue to decrease in 2008 unless the Company executes on its previously announced desire to seek acquisition-led growth. During 2007, the Company added 1,000 new ATM units, including 57 in the fourth quarter of 2007. For complete details on TRM’s latest performance visit CardData ([www.carddata.com][1]).
[1]: http://www.carddata.com
ATM provider TRM announced that Ethan S. Buyon, currently Managing Director at Citi Markets and Banking, will serve on the Company’s Board of Directors. Buyon has also been the interim Chief Operating Officer for Citi Residential Lending since September 2007. Before joining Citi Markets and Banking, Mr. Buyon served as a Managing Director of CRP Partners and its processor firm The Recovery Group from October 2003 to February 2008.