ATM Giant Plunges Into TheRed
PORTLAND, Ore. - (03/31/06) Last years acquisitionof eFunds fleet of ATMs continued to take a tole on TRMCorp., which reported Thursday that costs associated with eFundsdeal a pending ATM acquisition in England helped push it deep intothe red. The company reported a loss of $13.7 million, or 82 centsa share, for the fourth quarter, and $8.9 million, or 62 cents ashare, for the year. The company, which replaced its CEO lastmonth, said extraordinary costs like the $5.2 million deferred forits UK Travelex acquisition, $2.7 million for the eFunds deal, and$4.6 million related to debt refinancing and other provisions,offset a doubling in annual revenues. With the 2005 acquisition ofTRMs 14,200 ATMs, the company transformed itself from anationwide telecopier rental provider to the second largestindependent operator of ATMs. Cardtronics, with more than 25,000machines is the leading ISO. TRM said fourth quarter net sales wereflat at $26 million, reflecting an increase in the ATM discountrate and a decline in photocopy sales, as well as eFunds relatedfourth quarter items. As many as 7,000 of the eFund ATMs were oncerented by the CO-OP Network, but the CO-OP shed 5,000 of themachines in February and now runs only 1,000 TRM ATMs.