Profits Fall At New ATMGiant
PORTLAND, Ore. - (05/16/05) -- TRM Corp., which acquired eFunds'fleet of ATMs last year, said net income slumped 34% for its firstquarter, to $1.7 million, or 11 cents a share, due to costs relatedto its nationwide ATM fleet. The company, which also operates anational fleet of photo copiers, said the acquisition of eFunds'15,200 ATMs last fall helped it double first quarter revenues to$58.8 million. But the deal also pushed the company's cost of salesup 65% to $17.5 million, and expenses up by 84% to $11.3 million,eating into first quarter profits. In addition, financials for thecompany's core copier business eroded, wit sales declining 23% andprofits falling 46% for the quarter, compared to the same periodlast year. First quarter highlights included a deal to operate ATMsat certain Ball's, Harrah's, Hilton and Resorts Internationalcasinos. Because of the eFund's deal, TRM operates the secondlargest ATM fleet in the country, with 19,000 machines, trailingonly Cardtronics, which has more than 27,000 ATMs.