-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ccu1FZWV+4aDMnJXjGXKKO7h3E1KVuaWk3/7swRxsaX0mt/vmgMgy9m8idJDzv4/ /0DOp8DSljsmlC+xcj0DrA== 0000893220-07-000687.txt : 20070312 0000893220-07-000687.hdr.sgml : 20070312 20070312130800 ACCESSION NUMBER: 0000893220-07-000687 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20070124 ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070312 DATE AS OF CHANGE: 20070312 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TRM CORP CENTRAL INDEX KEY: 0000749254 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PERSONAL SERVICES [7200] IRS NUMBER: 930809419 STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-19657 FILM NUMBER: 07686998 BUSINESS ADDRESS: STREET 1: 5208 N E 122ND AVENUE CITY: PORTLAND STATE: OR ZIP: 97230-1074 BUSINESS PHONE: 5032578766 FORMER COMPANY: FORMER CONFORMED NAME: TRM COPY CENTERS CORP DATE OF NAME CHANGE: 19940411 FORMER COMPANY: FORMER CONFORMED NAME: ALL COPY CORP DATE OF NAME CHANGE: 19911216 8-K/A 1 w31704e8vkza.htm FORM 8-K/A e8vkza
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 24, 2007
TRM CORPORATION
(Exact name of registrant as specified in its charter)
         
Oregon   0-19657   93-0809419
         
(State or other jurisdiction
of incorporation)
  (Commission File Number)   (I.R.S. Employer
Identification No.)
5208 N.E. 122nd Avenue, Portland, Oregon 97230
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (503) 257-8766
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 


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ITEM 9.01 Financial Statements and Exhibits
SIGNATURES


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ITEM 9.01 Financial Statements and Exhibits
     As previously disclosed in our Current Report on Form 8-K filed with the Securities and Exchange Commission on January 30, 2007, we sold our United Kingdom ATM business on January 24, 2007 and we sold our United States photocopy business on January 29, 2007. We are filing this amendment to provide pro forma financial information, required by Item 9.01(b)(1), relating to those and other business dispositions as well as repayment of debt described in Notes 1 and 2.
     The following unaudited pro forma condensed consolidated balance sheet and statements of operations are presented to illustrate the estimated effects of the sale of substantially all of the assets and operations of the businesses as well as repayment of debt described in Notes 1 and 2. The unaudited pro forma condensed consolidated balance sheet is presented as if the transactions that occurred in January 2007 had occurred on September 30, 2006. The unaudited pro forma condensed consolidated statements of operations are presented as if the transactions described in Notes 1 and 2 had occurred on January 1, 2003. The unaudited pro forma condensed consolidated financial information should be read in conjunction with our historical consolidated financial statements and notes thereto appearing in our annual report on Form 10-K for the year ended December 31, 2005, and our unaudited condensed consolidated financial statements and notes thereto appearing in our quarterly report on Form 10-Q for the nine months ended September 30, 2006.
     The unaudited pro forma condensed consolidated financial information is presented for illustrative purposes only and does not purport to be indicative of the financial condition and results of operations that would have been achieved had the sales and repayment of debt for which we are giving pro forma effect actually occurred on the dates referred to above or the financial condition and results of operations that may be expected in the future. Such information has been prepared based upon currently available information and assumptions that our management believes are reasonable. Such currently available information and assumptions may prove to be inaccurate over time.

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TRM Corporation
Unaudited Pro Forma Condensed Consolidated Balance Sheet
September 30, 2006
(In thousands)
                                                                                 
    TRM     Pro forma adjustments             Pro forma  
    Corporation     Canadian             U.S.             U.K.             Debt             as  
    historical     ATM             photocopy             ATM             payment             adjusted  
Assets
                                                                               
Current assets:
                                                                               
Cash and cash equivalents
  $ 7,867     $ 10,831       A     $ 8,701       B     $ (5,203 )     C     $ (99,926 )     D     $ 4,401  
 
                                            82,131       C                          
Accounts receivable, net
    11,589       323       A       (3,552 )     B       (1,610 )     C                       6,724  
 
            (26 )     A                                                          
Income tax receivable
    215                                                                       215  
Inventories
    2,413       (358 )     A       (209 )     B       (1,121 )     C                       725  
Prepaid expense and other
    4,024                       (85 )     B       (1,849 )     C       4,637       D       6,727  
Restricted cash — TRM Inventory Funding Trust
    84,723                                                                       84,723  
 
                                                                   
Total current assets
    110,831       10,770               4,855               72,348               (95,289 )             103,515  
 
Equipment, less accumulated depreciation and amortization
    44,631       (1,587 )     A       (4,719 )     B       (24,944 )     C                       13,381  
Goodwill
    75,966       (3,678 )     A                       (55,540 )     C                       16,748  
Other intangible assets, less accumulated amortization
    7,523       (3,461 )     A                       (857 )     C       (2,803 )     D       402  
Other assets
    1,535                       (326 )     B       (106 )     C                       1,103  
 
                                                                   
Total assets
  $ 240,486     $ 2,044             $ (190 )           $ (9,099 )           $ (98,092 )           $ 135,149  
 
                                                                   
 
                                                                               
Liabilities and Shareholders’ Equity
                                                                               
Current liabilities:
                                                                               
Accounts payable
  $ 13,632     $ (541 )     A     $ (236 )     B     $ (4,596 )     C                     $ 8,259  
Accrued expenses
    8,663       (21 )     A       (250 )     B       (3,338 )     C     $ (372 )     D       4,682  
Term loans and line of credit
    94,917                                                       (94,917 )     D        
TRM Inventory Funding Trust note payable
    82,940                                                                       82,940  
Current portion of obligations under capital leases
    278                                       (278 )     C                        
 
                                                                   
Total current liabilities
    200,430       (562 )             (486 )             (8,212 )             (95,289 )             95,881  
 
Long-term liabilities
    382                                       (382 )     C                        
 
                                                                   
Total liabilities
    200,812       (562 )             (486 )             (8,594 )             (95,289 )             95,881  
 
                                                                               
Minority interest
    1,500                                                                       1,500  
 
                                                                               
Shareholders’ equity:
                                                                               
Common stock
    132,591                                                                       132,591  
Additional paid-in capital
    63                                                                       63  
Accumulated other comprehensive income
    4,938                                       (2,358 )     C                       2,580  
Retained earnings (accumulated deficit)
    (99,418 )     2,606       A       296       B       1,853       C       (2,803 )     D       (97,466 )
 
                                                                   
Total shareholders’ equity
    38,174       2,606               296               (505 )             (2,803 )             37,768  
 
                                                                   
Total liabilities and shareholders’ equity
  $ 240,486     $ 2,044             $ (190 )           $ (9,099 )           $ (98,092 )           $ 135,149  
 
                                                                   
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information

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TRM Corporation
Unaudited Pro Forma Condensed Consolidated Statement of Operations
Nine months ended September 30, 2006
(In thousands, except per share data)
                                                                                 
    TRM     Pro forma adjustments     Pro forma  
    Corporation     Canadian             U.S.             U.K.             Debt-related             as  
    historical     ATM             photocopy             ATM             adjustments             adjusted  
Sales
  $ 155,900     $ (12,140 )     E     $ (20,951 )     E     $ (35,913 )     E                     $ 86,896  
Less discounts
    73,456       (6,698 )     E       (3,495 )     E       (11,508 )     E                       51,755  
 
                                                                     
Net sales
    82,444       (5,442 )             (17,456 )             (24,405 )                             35,141  
Cost of sales
    52,744       (3,765 )     E       (12,152 )     E       (17,649 )     E                       19,178  
 
                                                                     
Gross profit
    29,700       (1,677 )             (5,304 )             (6,756 )                             15,963  
Selling, general and administrative expense
    33,945       (1,622 )     E       (2,636 )     E       (6,619 )     E                       23,068  
Impairment charges
    96,062       (6,106 )     E       (18,660 )     E       (25,242 )     E                       46,054  
Equipment write-offs
    238                       (38 )     E       (125 )     E                       75  
 
                                                                     
Operating income (loss)
    (100,545 )     6,051               16,030               25,230                               (53,234 )
Interest expense
    8,623                                                     $ (8,596 )     F       27  
Loss on early extinguishment of debt
    3,477                                                       (3,477 )     F        
Other expense (income), net
    (1,829 )     349       E       173       E       364       E                       (943 )
 
                                                                   
Income (loss) from continuing operations before income taxes
    (110,816 )     5,702               15,857               24,866               12,073               (52,318 )
Benefit for income taxes
    (5,194 )                                                                     (5,194 )
 
                                                                   
Income (loss) from continuing operations
  $ (105,622 )   $ 5,702             $ 15,857             $ 24,866             $ 12,073             $ (47,124 )
 
                                                                   
 
                                                                               
Basic and diluted per share information:
                                                                               
Weighted average common shares outstanding
    17,007                                                                       17,007  
 
                                                                               
Loss per share from continuing operations — basic and diluted
  $ (6.21 )                                                                   $ (2.77 )
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information

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TRM Corporation
Unaudited Pro Forma Condensed Consolidated Statement of Operations
Nine months ended September 30, 2005
(In thousands, except per share data)
                                                                                 
    TRM     Pro forma adjustments             Pro forma  
    Corporation     Canadian             U.S.             U.K.                             as  
    historical     ATM             photocopy             ATM             Interest             adjusted  
Sales
  $ 175,495     $ (14,505 )     E     $ (24,188 )     E     $ (36,299 )     E                     $ 100,503  
Less discounts
    80,952       (7,549 )     E       (4,234 )     E       (11,106 )     E                       58,063  
 
                                                                     
Net sales
    94,543       (6,956 )             (19,954 )             (25,193 )                             42,440  
Cost of sales
    51,081       (4,149 )     E       (12,473 )     E       (15,862 )     E                       18,597  
 
                                                                     
Gross profit
    43,462       (2,807 )             (7,481 )             (9,331 )                             23,843  
Selling, general and administrative expense
    32,062       (1,935 )     E       (2,802 )     E       (6,320 )     E                       21,005  
Equipment write-offs
    166                       (3 )     E       (140 )     E                       23  
 
                                                                     
Operating income (loss)
    11,234       (872 )             (4,676 )             (2,871 )                             2,815  
Interest expense
    7,661                                                     $ (5,814 )     F       1,847  
Other expense (income), net
    (2,375 )     58       E       66       E       273       E                       (1,978 )
 
                                                                   
Income (loss) from continuing operations before income taxes
    5,948       (930 )             (4,742 )             (3,144 )             5,814               2,946  
Provision (benefit) for income taxes
    998       (335 )     E       (1,802 )     E       (943 )     E       2,209       E       127  
 
                                                                   
Income (loss) from continuing operations
  $ 4,950     $ (595 )           $ (2,940 )           $ (2,201 )           $ 3,605             $ 2,819  
 
                                                                   
 
                                                                               
Basic and diluted per share information:
                                                                               
Income (loss) from continuing operations
  $ 4,950                                                                     $ 2,819  
Preferred stock dividends
    (147 )                                                                     (147 )
Income allocated to Series A preferred shareholders
    (57 )                                                                     (32 )
 
                                                                           
Income (loss) from continuing operations available to common shareholders
  $ 4,746                                                                     $ 2,640  
 
                                                                           
Weighted average common shares outstanding
    13,809                                                                       13,809  
Dilutive effect of stock options
    803                                                                       803  
Dilutive effect of warrants
    32                                                                       32  
 
                                                                           
Weighted average common shares outstanding, assuming dilution
    14,644                                                                       14,644  
 
                                                                           
 
                                                                               
Income per share from continuing operations:
                                                                               
Basic
  $ 0.34                                                                     $ 0.19  
Diluted
  $ 0.33                                                                     $ 0.18  
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information

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TRM Corporation
Unaudited Pro Forma Condensed Consolidated Statement of Operations
Year ended December 31, 2005
(In thousands, except per share data)
                                                                                                 
    TRM     Pro forma adjustments             Pro forma  
    Corporation     U.K.             Canadian             U.S.             U.K.                             as  
    historical     photocopy             ATM             photocopy             ATM             Interest             adjusted  
Sales
  $ 233,911     $ (5,097 )     E     $ (18,944 )     E     $ (31,945 )     E     $ (47,657 )     E                     $ 130,268  
Less discounts
    109,229       (847 )     E       (10,137 )     E       (5,601 )     E       (15,182 )     E                       77,462  
 
                                                                                   
Net sales
    124,682       (4,250 )             (8,807 )             (26,344 )             (32,475 )                             52,806  
Cost of sales
    71,043       (2,463 )     E       (5,282 )     E       (15,965 )     E       (22,362 )     E                       24,971  
 
                                                                                   
Gross profit
    53,639       (1,787 )             (3,525 )             (10,379 )             (10,113 )                             27,835  
Selling, general and administrative expense
    51,912       (2,140 )     E       (2,858 )     E       (4,228 )     E       (9,770 )     E                       32,916  
Abandoned acquisition costs
    5,211                                                                                   5,211  
Equipment write-offs
    1,576       (118 )     E                       (161 )     E       (1,207 )     E                       90  
 
                                                                                 
Operating income (loss)
    (5,060 )     471               (667 )             (5,990 )             864                               (10,382 )
Interest expense
    10,218                                                                     $ (8,154 )     F       2,064  
Other expense (income), net
    (1,505 )     14       E       37       E       (148 )     E       (50 )     E                       (1,652 )
 
                                                                                 
Income (loss) from continuing operations before income taxes
    (13,773 )     457               (704 )             (5,842 )             914               8,154               (10,794 )
Provision (benefit) for income taxes
    (4,902 )     137       E       (253 )     E       (2,220 )     E       274       E       3,099       E       (3,865 )
 
                                                                                 
Income (loss) from continuing operations
  $ (8,871 )   $ 320             $ (451 )           $ (3,622 )           $ 640             $ 5,055             $ (6,929 )
 
                                                                                 
 
                                                                                               
Basic and diluted per share information:
                                                                                               
Income (loss) from continuing operations
  $ (8,871 )                                                                                   $ (6,929 )
Preferred stock dividends
    (147 )                                                                                     (147 )
 
                                                                                           
Income (loss) from continuing operations available to common shareholders
  $ (9,018 )                                                                                   $ (7,076 )
 
                                                                                           
 
                                                                                               
Weighted average common shares outstanding
    14,542                                                                                       14,542  
 
                                                                                               
Loss per share from continuing operations — basic and diluted
  $ (0.62 )                                                                                   $ (0.49 )
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information

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TRM Corporation
Unaudited Pro Forma Condensed Consolidated Statement of Operations
Year ended December 31, 2004
(In thousands, except per share data)
                                                                                                 
    TRM     Pro forma adjustments             Pro forma  
    Corporation     U.K.             Canadian             U.S.             U.K.                             as  
    historical     photocopy             ATM             photocopy             ATM             Interest             adjusted  
Sales
  $ 126,027     $ (7,310 )     E     $ (2,358 )     E     $ (38,665 )     E     $ (38,840 )     E                     $ 38,854  
Less discounts
    33,385       (1,108 )     E       (1,351 )     E       (6,879 )     E       (9,121 )     E                       14,926  
 
                                                                                   
Net sales
    92,642       (6,202 )             (1,007 )             (31,786 )             (29,719 )                             23,928  
Cost of sales
    50,212       (3,961 )     E       (525 )     E       (16,644 )     E       (17,519 )     E                       11,563  
 
                                                                                   
Gross profit
    42,430       (2,241 )             (482 )             (15,142 )             (12,200 )                             12,365  
Selling, general and administrative expense
    28,529       (1,747 )     E       (149 )     E       (4,259 )     E       (6,648 )     E                       15,726  
Equipment write-offs
    68       (68 )     E                                                                        
 
                                                                                   
Operating income (loss)
    13,833       (426 )             (333 )             (10,883 )             (5,552 )                             (3,361 )
Interest expense
    1,823                                                                     $ (1,168 )     F       655  
Other expense (income), net
    (267 )     33       E       1       E       207       E       89       E                       63  
 
                                                                                 
Income (loss) from continuing operations before income taxes
    12,277       (459 )             (334 )             (11,090 )     E       (5,641 )             1,168               (4,079 )
Provision (benefit) for income taxes
    3,930       (138 )     E       (120 )     E       (4,214 )     E       (1,692 )     E       444       E       (1,790 )
 
                                                                                 
Income (loss) from continuing operations
  $ 8,347     $ (321 )           $ (214 )           $ (6,876 )           $ (3,949 )           $ 724             $ (2,289 )
 
                                                                                 
 
                                                                                               
Basic and diluted per share information:
                                                                                               
Income (loss) from continuing operations
  $ 8,347                                                                                     $ (2,289 )
Preferred stock dividends
    (1,329 )                                                                                     (1,329 )
Income allocated to Series A preferred shareholders
    (920 )                                                                                      
Excess of cash paid over carrying value of preferred stock redeemed
    (48 )                                                                                     (48 )
 
                                                                                           
Income (loss) from continuing operations available to common shareholders
  $ 6,050                                                                                     $ (3,666 )
 
                                                                                           
 
                                                                                               
Weighted average common shares outstanding
    9,221                                                                                       9,221  
Dilutive effect of stock options
    823                                                                                        
Dilutive effect of warrants
    23                                                                                        
 
                                                                                           
Weighted average common shares outstanding, assuming dilution
    10,067                                                                                       9,221  
 
                                                                                           
 
                                                                                               
Income per share from continuing operations:
                                                                                               
Basic
  $ 0.66                                                                                     $ (0.40 )
Diluted
  $ 0.60                                                                                     $ (0.40 )
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information

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TRM Corporation
Unaudited Pro Forma Condensed Consolidated Statement of Operations
Year ended December 31, 2003
(In thousands, except per share data)
                                                                                 
    TRM     Pro forma adjustments             Pro forma  
    Corporation     U.K.             U.S.             U.K.                             as  
    historical     photocopy             photocopy             ATM             Interest             adjusted  
Sales
  $ 94,822     $ (8,749 )     E     $ (39,877 )     E     $ (25,462 )     E                     $ 20,734  
Less discounts
    16,625       (1,495 )     E       (7,133 )     E       (3,900 )     E                       4,097  
 
                                                                     
Net sales
    78,197       (7,254 )             (32,744 )             (21,562 )                             16,637  
Cost of sales
    43,627       (5,289 )     E       (17,792 )     E       (11,297 )     E                       9,249  
 
                                                                     
Gross profit
    34,570       (1,965 )             (14,952 )             (10,265 )                             7,388  
Selling, general and administrative expense
    23,828       (2,469 )     E       (2,954 )     E       (4,415 )     E                       13,990  
Equipment write-offs
    626       (349 )     E       (277 )     E                                        
 
                                                                     
Operating income (loss)
    10,116       853               (11,721 )             (5,850 )                             (6,602 )
Interest expense
    1,030                                                     $ (744 )     F       286  
Other expense (income), net
    (133 )     140       E       228       E       (226 )     E                       9  
 
                                                                   
Income (loss) from continuing operations before income taxes
    9,219       713               (11,949 )             (5,624 )             744               (6,897 )
Provision (benefit) for income taxes
    3,034       214       E       (4,541 )     E       (1,687 )     E       223       E       (2,757 )
 
                                                                   
Income (loss) from continuing operations
  $ 6,185     $ 499             $ (7,408 )           $ (3,937 )           $ 521             $ (4,140 )
 
                                                                   
 
Basic and diluted per share information:
                                                                               
Income (loss) from continuing operations
  $ 6,185                                                                     $ (4,140 )
Preferred stock dividends
    (1,500 )                                                                     (1,500 )
Income allocated to Series A preferred shareholders
    (629 )                                                                      
 
                                                                           
Income (loss) from continuing operations available to common shareholders
  $ 4,056                                                                     $ (5,640 )
 
                                                                           
 
Weighted average common shares outstanding
    7,060                                                                       7,060  
Dilutive effect of stock options
    301                                                                        
 
                                                                           
Weighted average common shares outstanding, assuming dilution
    7,361                                                                       7,060  
 
                                                                           
 
Income (loss) per share from continuing operations:
                                                                               
Basic
  $ 0.57                                                                     $ (0.80 )
Diluted
  $ 0.55                                                                     $ (0.80 )
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information

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TRM Corporation
Notes to Unaudited Pro Forma Condensed Consolidated Financial Information
Note 1. Description of Transactions
United Kingdom Photocopy Business
     On June 28, 2006, we sold all of the outstanding shares of TRM Copy Centres (U.K.) Limited, our United Kingdom photocopier subsidiary, to an unrelated third party for cash. The net sales price was approximately $4.3 million. We recorded a gain on the sale of $1.9 million during the nine months ended September 30, 2006. The operations of our United Kingdom photocopier subsidiary are reported as discontinued operations in the TRM Corporation historical columns for the nine-month periods ended September 30, 2006 and 2005.
Canadian ATM Business
     On January 12, 2007, we sold substantially all of the assets and operations of our Canadian ATM business to an unrelated third party for approximately $11.1 million net of expenses, paid in cash and assumption of certain liabilities. The sales price is subject to adjustment based on certain merchant contract amendments, completion of certain equipment upgrades and modifications to merchant payments.
United Kingdom and German ATM Business
     On January 24, 2007, we sold all of the shares of TRM (ATM) Limited to an unrelated third party for approximately $85.4 million net of expenses, paid in cash. TRM (ATM) Limited owned our ATM businesses in both the United Kingdom and Germany. The sales price is subject to adjustment based on finalization of a closing balance sheet for the businesses sold.
United States Photocopy Business
     On January 29, 2007, we sold substantially all of the assets and operations of our United States photocopy business to an unrelated third party for approximately $9.2 million, paid in cash and assumption of certain liabilities. The sales price is subject to adjustment based on final determination of accounts receivable acquired and accounts payable assumed by the buyer.
Note 2. Pro Forma Information
     The unaudited pro forma condensed balance sheet is presented as if the transactions described in Note 1 that occurred in January 2007 had occurred on September 30, 2006. The unaudited pro forma condensed statements of operations are presented as if the transactions described in Note 1 had occurred on January 1, 2003.

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(A)   Sale of Canadian ATM business
     Using the exchange rate as of September 30, 2006, the sale of the Canadian ATM business resulted in net cash proceeds of $10,831,000, an estimated receivable of $323,000 and assumption by the buyer of accounts payable and accrued liabilities totaling $562,000. Our preliminary gain is estimated as follows (in thousands):
         
Proceeds from sale
  $ 11,342  
Estimated fees and expenses associated with the sale
    (511 )
 
     
Net cash proceeds
    10,831  
Estimated proceeds receivable
    323  
Assumption of liabilities
    562  
 
     
 
    11,716  
Assets sold
    (9,110 )
 
     
Gain on sale
  $ 2,606  
 
     
     Actual net cash proceeds based on the exchange rate as of the date of sale were $10,286,000.
(B)   Sale of United States Photocopy Business
     The sale of the United States photocopy business resulted in net cash proceeds of $8,701,000 and assumption by the buyer of accounts payable and accrued liabilities totaling $486,000. Our preliminary gain on the sale is estimated as follows (in thousands):
         
Proceeds from sale
  $ 8,992  
Estimated fees and expenses associated with the sale
    (291 )
 
     
Net cash proceeds
    8,701  
Assumption of liabilities
    486  
 
     
 
    9,187  
Assets sold
    (8,891 )
 
     
Gain on sale
  $ 296  
 
     
(C)   Sale of United Kingdom and German ATM Business
     Our preliminary gain on the sale of the United Kingdom and German ATM businesses is estimated as follows (in thousands):
         
Proceeds from sale
  $ 87,961  
Estimated fees and expenses associated with the sale
    (5,830 )
 
     
Net cash proceeds
    82,131  
Assets sold, including $5,203 cash
    (91,230 )
Liabilities assumed
    8,594  
Foreign currency translation adjustment recognized in income
    2,358  
 
     
Gain on sale
  $ 1,853  
 
     

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     Net cash proceeds shown above are based on the exchange rate as of September 30, 2006. Actual net cash proceeds based on the exchange rate as of the date of the sale were $85,445,000.
(D)   Payment of Debt
     We used $98,123,000 of the net proceeds from the January 2007 sale of businesses to retire debt owed to GSO Origination Funding Partners and other lenders. Because the principal balance owing on our term loans and line of credit as of September 30, 2006 was less than the total January principal payment, the unaudited pro forma condensed consolidated balance sheet as of September 30, 2006 reflects payment of the entire $94,917,000 balance of our term loans and line of credit as of that date. In addition, from the sale proceeds we made deposits totaling $4,637,000 with our bank, primarily to collateralize our outstanding letters of credit, and we paid accrued interest of $372,000. As of September 30, 2006, we had $2,803,000 of deferred financing costs that would have been charged to expense if we had paid the entire balance of the related debt on September 30, 2006.
     In November 2006 we entered into agreements with GSO Origination Funding Partners and our other lenders pursuant to which they waived defaults under our loan agreements and agreed with us to restructure our loans. In connection with these modifications to our loan agreements, the lenders charged us fees aggregating $1.0 million which were added to the principal balances of our loans. We also granted to certain lenders warrants to purchase 3.1 million shares of our common stock for $1.3638 per share. Using the Black-Scholes valuation model, we estimated the total fair value of these warrants to be approximately $2.8 million. We are presently evaluating the accounting for these agreements to determine whether the modification of our loans should be accounted for as a modification of terms, an extinguishment of debt or a troubled debt restructuring. Irrespective of our final determination as to appropriate accounting treatment, we expect that substantially all of the unamortized deferred financing costs, the fair value of the warrants and the fees incurred in connection with the debt restructuring will be charged to expense in the fourth quarter of 2006 and first quarter of 2007, and may all be charged to expense in the fourth quarter of 2006. We are also reviewing the terms of the warrants to determine whether they should be classified as equity or debt instruments.
(E)   Revenues and Expenses of Businesses Sold
     In the pro forma adjustments columns for each of the businesses that have been sold we have included adjustments that eliminate the revenues and expenses of those businesses which we believe will not continue after the sales. The pro forma adjustments do not eliminate any general corporate overhead expenses.
     The TRM Corporation historical amounts for the nine-month periods ended September 30, 2006 and 2005 do not include the results of operations of our United Kingdom photocopy business that was sold in June 2006. The operations of that business were included as discontinued operations in our statements of operations for those periods included in our quarterly report on Form 10-Q for the nine months ended September 30, 2006. The TRM

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Corporation historical amounts for the years ended December 31, 2005, 2004 and 2003 include the results of operations of our United Kingdom photocopy business as presented in our annual report on Form 10-K for the year ended December 31, 2005.
     We have computed the tax benefit for each period except the nine months ended September 30, 2006 at the statutory rates in effect in the countries where each business operated. In the nine months ended September 30, 2006, we have recorded valuation allowances eliminating our net deferred tax assets. Consequently, we have not shown any benefit from the pretax losses in the pro forma adjustments for this period. We have not included any tax provisions on the gains on the sales of businesses because the gains would be offset by net operating losses.
(F)   Interest Expense
     The pro forma adjustments include a decrease to interest expense in each period based on the assumption that the net cash proceeds from the sales of businesses would have been used to retire debt of up to $102.1 million, which is the amount of net proceeds available to pay debt from the sales of all four businesses described in Note 1. In the nine-month period ended September 30, 2006, we recorded a $3,477,000 loss on early extinguishment of debt. If we had sold the businesses as described in Note 1 on January 1, 2003, and used the proceeds to retire debt, we would not have had any term loans or line of credit debt outstanding in 2006, and would not have incurred the loss on early extinguishment of debt. The pro forma adjustments for the nine-months ended September 30, 2006 remove the loss on early extinguishment of debt from the results of operations.

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SIGNATURES
     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
         
  TRM CORPORATION
 
 
  By:   /s/ Daniel E. O’Brien    
  Name: Daniel E. O’Brien   
Date: March 12, 2007  Title: Chief Financial Officer   
 
         
     
     
     
     
 

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