TRM Corporation TRM Corporation announces its performance for the fiscal period ending September 30, 1999. Gross revenue for the quarter increased to $16.3 million from $15.8 million in the third quarter of 1998. Earnings before interest, taxes and depreciation increased 17% to $2.8 million from $2.3 for the same period the prior year. Net income, before the preferred dividend, was $206 thousand as compared with $484 thousand for the same period last year resulting in fully-diluted earnings per share, after the dividend, of -$0.02 as compared with $0.01 for the same period last year.
The Company successfully increased the expansion rate of its ATM operations during the third quarter, ending the period with 292 units deployed on September 30, 1999, a 107% increase in units over the previous quarter. In addition, TRM established itself as the first non-bank deployer of ATMs to significantly operate in both the United States and Europe having deployed units in the United Kingdom during the period. “We are very excited and optimistic about our ATM expansion, especially in Europe where the Company has a sizable infrastructure supporting over 8,000 CopyCenter placements in retail locations,” stated Fred Stockton, CEO and President. ATM operations revenue significantly increased 166% to $502 thousand as compared with $189 thousand in the previous quarter. Although the ATM business generated a net loss of $258 thousand during the quarter, the loss was as planned and primarily related to investment in the expansion of the business and the acceleration of machine roll-outs. TRM ended the quarter with an order backlog for new ATM sites in excess of 600 locations primarily in the United States.
The TRM CopyCenter business continues its healthy, strong cashflow as the NextGen(TM) unit replacement and optimization program has been completed resulting in labor cost savings and creating operating efficiencies. The CopyCenter operations generated $90 thousand of net income or $0.01 fully-diluted earnings per share after the preferred dividend for the quarter ended September 30, 1999 as compared with $81 thousand and $0.01 for the same period last year despite: 1) a $535 thousand increase in depreciation expense, 2) a 4% increase in retail sales discounts necessary to incent retailers to sign longer-term contracts (i.e. 3-5 year photocopy service agreements) and 3) non-recurring interest income of $235 thousand generated from the investment of the proceeds from the preferred stock offering realized in the same period last year but unavailable this period. As of September 30, 1999, 32,638 TRM CopyCenter locations were installed in North America and Europe.
Mr. Stockton noted, “With the operational changes in place to insure the continued growth and health of our CopyCenter business, we are poised to aggressively expand our ATM operations. We believe the tremendous opportunity to develop a global distribution network of connected ATMs through which not only cash but numerous other services and products may be delivered will enable TRM to truly become a rapidly growing enterprise.”
For more details on TRM’s 3Q/99 visit CardData ([www.carddata.com])