749254--3/31/2008--TRM

related topics

{system, service, information}

{customer, product, revenue}

{debt, indebtedness, cash}

{competitive, industry, competition}

{interest, director, officer}

{investment, property, distribution}

{loss, insurance, financial}

We currently do not comply with several of the covenants in our loan agreement with GSO which may result in a default under our vault cash facility and allow our lenders to accelerate our loans. A failure to obtain waivers of these defaults or obtain new financing can cause significant impairment of our ability to conduct our operations. We could be liable for sales price adjustments and warranty/indemnification claims relating to businesses we sold in 2006 and 2007. The terms of our credit agreement may restrict our current and future operating and financial flexibility. We have received a going concern opinion from our independent registered public accounting firm, which may negatively impact our business. Our sales depend on transaction fees from our network of ATMs. A decline in either transaction volume or the level of transaction fees could reduce our sales and harm our operating results. We have experienced significant attrition in the number of ATMs in our network. If merchant-owned ATM customers terminate their relationships with us prior to the termination of their contract or do not renew their contracts upon their expiration, it could reduce our ATM sales. Changes in technology could reduce use of ATMs as a result, reduce our sales. The ATM market is highly competitive, which could limit our growth or reduce our sales. We have agreed to terminate our master services agreement with eFunds and, if we are unable to provide timely and satisfactory replacement services, our relationships with merchants and cardholders could deteriorate and our transaction volume could be reduced. We rely on third parties to service our ATMs and their failure to do so may harm our operations, damage our reputation and decrease our transaction volume. Increases in interest rates will increase our expenses. Our ATM business operates in a changing and unpredictable regulatory environment. We may incur substantial expense in upgrading our ATMs to meet new standards, and, if we cannot meet compliance deadlines, we could be required to remove non-compliant ATMs from service. The passing of anti-money laundering legislation could cause us to lose some merchant accounts, thus reducing our revenues. If we, our transaction processors, our EFTNs or our other service providers experience system failures, the ATM products and services we provide could be delayed or interrupted, which would harm our business. We rely on EFTNs and transaction processors; if we cannot renew our agreements with them, if they are unable to perform their services effectively or if they decrease the level of the transaction fees we receive, it could harm our business. We could lose access to our ATM vault cash and fees that we have earned due to circumstances beyond our control. We have notified our vault cash provider that we intend to terminate our current vault cash arrangement and obtain our vault cash from another source; although we believe that we will have an agreement in place for a new vault cash arrangement that will be more cost-effective than the current arrangement, if we are unable to obtain vault cash for our placement ATMs, it would harm our business. We experienced substantial theft losses in our ATM operations in the past. If we were to experience a recurrence of these losses, our results of operations could be harmed.

Full 10-K form ▸

749254--3/31/2008--TRM_CORP