Sponsored by Energy Trust

Deal Watch: Troubled TRM gets loan, buys company

| Print |  Email
Archives - June 2008
Sunday, June 01, 2008

ATMmachine.jpg

IN LATE APRIL Portland-based ATM network operator TRM Corp. created one of the largest nonbank ATM networks in the nation when it purchased New Jersey-based LJR Consulting, which does business as Access To Money, for $15 million. Part of the funding for the deal came from an $11 million loan that TRM raised the same month, which the company is also using to pay down its debts. But for financially troubled TRM, growth is perhaps a curious choice, says ATM Magazine editor Tracy Kitten.

April also brought plenty of bad news. TRM’s auditor, accounting firm McGladrey & Pullen, issued a warning concerning TRM’s ability to stay in business. (TRM’s previous independent auditor, PricewaterhouseCoopers, raised the same concern in 2007 and declined to stand for reappointment.) The company’s stock was delisted from Nasdaq for not meeting the minimum price requirement. And TRM announced revenue had dropped 16% and it had lost $8.43 million in 2007 — its third year in the red.

The company, which is on its third CEO in as many years, jettisoned its foreign and domestic photocopier business and other side businesses last year in an attempt to regain the black. Selling its subsidiaries allowed the company to cut its workforce from about 400 workers to 40.

The purchase of Access To Money moves the company in the opposite direction, increasing the size of its ATM network to 12,200 machines, most of which are in convenience-store chains. Kitten says she would have expected to see the company continue to tighten.

TRM, however, may be making a smart move. Increasing gas prices — which raise operating costs — and economic pressures — such as costly but required upgrades — are making things difficult for smaller ATM network operators. “In order to absorb some of those losses, in order to survive, maybe you need some cushion and some size,” Kitten says.                         

ABRAHAM HYATT

MERGERS AND ACQUISITIONS
PRICE (TERMS) EXP. CLOSE BUYER / PARENT (HQ) SELLER (HQ) / PARENT ANNOUNCED
$15M (cash, stock, debt) Q2 ‘08 TRM (Portland) LJR Consulting (NJ) 4/29
ND (cash) Q2 ‘08 Hanover Partners (Lake Oswego) Pyramid Technologies (AZ) 4/17
ND Q2 ‘08 Market Decisions (Portland) call center (NM)/ Research Data Design 4/18
ND Q2 ‘08 Smarsh (Portland) CentraScan (CT) 4/18
ND Q2 ‘08 Smarsh (Portland) Financial Visions (CA) 4/22
ND Q2 ‘08 Strands (Corvallis) Expensr (CA) 4/22
REAL ESTATE TRANSACTIONS
PRICE BUYER / PARENT (HQ) REAL ESTATE (LOCATION) / SELLER (HQ) ANNOUNCED
$45M The Matteson Cos. Harrison Tower Apartments (Portland)/ Bean Investment Real Estate; Williams & Dame Development 4/16
$20M Carlyle Investment Company research facilities (Hillsboro)/ Credence Systems 4/16
$4.5M Stephen Moses Interests Vick Building (Salem)/ Vernon Hill Associates II 4/28
$3.17M Bannon Land 1 The Evergreen Park Apartments (Portland)/ JC Equities VI 4/23
$2.45M YKHW Cedars in the Woodland hotel (WA)/ Sandhu NW Hospitality 4/24
$2.10M Knez Realty Group Samrose Salmon Center (Portland)/ Samrose Salmon Center 4/23
CAPITAL RAISING
PRICE (TERMS) COMPANY (HQ) / LEADERSHIP INVESTOR (HQ) ANNOUNCED
$74M (debt) ScanlanKemperBard Companies (Portland)/ Robert D. Scanlan, chairman & CEO Bank of America 4/17
$60M (state grant) Vaccine & Gene Therapy Institute (FL)/OHSU (Portland)/ Dr. Jay Nelson, director Innovation Incentive Fund (FL) 4/28
$47M (bond) Reed College (Portland)/ Colin Diver, president public offering 4/22
$25M (donated office space) OSU (Corvallis)/ Dr. Edward Ray, president Hewlett Packard (Corvallis) 4/23
$11M (credit facility) TRM (Portland)/ Richard Stern, president & CEO LC Capital Master Fund Ltd (NY) 4/18
$5.64M (bond) Mt Hood Community College (Gresham)/ Dr. John J. Sygielski, president public offering 4/23
$3.5M (bond) Linn-Benton Community College (Albany)/ Rita Cavin, president public offering 4/8
$328K (state grant) Enterprise for Employment and Education (Salem)/ Agnes Balassa, exec. director Employer Workforce Training Fund (Portland) 4/30
$303K (state grant) Clackamas Community College (Oregon City)/ Joanne Truesdell, president Employer Workforce Training Fund (Portland) 4/30
$275K (state grant) Lane Workforce Partnership (Eugene)/ Chuck Forster, exec. director Employer Workforce Training Fund (Portland) 4/30
$128K (state grant) Southwestern Oregon Community College (Coos Bay)/ Dr. Judith M.L. Hansen, president Employer Workforce Training Fund (Portland) 4/30
$128K (state grant) SCOEDE (Klamath Falls)/ Betty Riley, executive director Employer Workforce Training Fund (Portland) 4/30
$128K (state grant) Rogue Valley Workforce Development Council (Medford)/ Ron Fox, executive director Employer Workforce Training Fund (Portland) 4/30
$32K (state grant) SOPHEC (Medford)/ David Matthews, executive director Employer Workforce Training Fund (Portland) 4/30

List researched by Mark Druskoff

Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it
 

More Articles

Dan and Louis Oyster Bar opens up to a changing neighborhood

The Latest
Thursday, December 11, 2014
121114-oystervidBy MEGHAN NOLT

VIDEO: Revamping a Classic — an iconic eatery stays relevant in a changing marketplace.


Read more...

Corner Office: Steve Tatone

January-Powerbook 2015
Saturday, December 13, 2014

Seven tidbits about the president and CEO of AKT Group.


Read more...

Healthcare Perspective

November/December 2014
Wednesday, October 22, 2014
BY KIM MOORE

A conversation with Majd El-Azma, president and CEO of LifeWise Health Plan of Oregon, followed by the Healthcare Powerlist.


Read more...

Healthcare pullback

News
Thursday, November 20, 2014
112014-boehnercare-thumbBY JASON NORRIS | OB CONTRIBUTOR

Each month for Oregon Business, we assess factors that are shaping current capital market activity—and what they mean to investors. Here we take a look at two major developments regarding possible rollbacks of the Affordable Care Act (ACA).


Read more...

A Complex Portrait: Immigration, Jobs and the Economy

November/December 2014
Wednesday, October 22, 2014
BY JOE ROJAS-BURKE & KIM MOORE

Oregon Business reports on the visa squeeze, the skills gap and foreign-born residents who are revitalizing rural Oregon.


Read more...

Corner Office: Marv LaPorte

January-Powerbook 2015
Saturday, December 13, 2014

The president of LaPorte & Associates lets us in on his day-to-day life.


Read more...

The clean fuels opportunity

News
Monday, November 10, 2014
111014-dirtyfuel-thumbBY KIM MOORE | OB RESEARCH EDITOR

A market for low-carbon transportation fuels has a chance to flourish in Oregon if regulators adopt the second phase of the state’s Clean Fuels Program.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS