Magazine article American Banker

Chief Executive's Exit Plan Sends TRM Stock Down

Magazine article American Banker

Chief Executive's Exit Plan Sends TRM Stock Down

Article excerpt

TRM Corp.'s share price plunged Wednesday after the automated teller machine operator announced a sharp drop in revenue and said Jeffrey F. Brotman would step down as its president and chief executive.

The Portland, Ore., company said Tuesday that Richard Stern, its current chief operating officer, would take over as the CEO on June 15, and that Mr. Brotman would become its nonexecutive chairman.

Under Mr. Brotman, TRM has sold off almost all its operations in the past several months. In January it sold its European ATM businesses to NoteMachine Ltd. for $92.6 million and its Canadian ATM operations to Ezee ATM LP of Ontario for $13 million. The following month TRM sold its U.S. photocopier business to Skyview Capital LLC for $9.2 million.

The company now operates a U.S. fleet of about 10,600 ATMs and a small Canadian photocopying business, which it is considering selling.

Mr. Brotman said in an interview Wednesday that he was brought to TRM in March of last year to "stabilize things," and that his efforts included many cost-cutting moves. "I didn't consider myself to be above the cost-saving activities."

He has a legal background; he was the president and managing member of Ledgewood Law Firm PC in Philadelphia when he was joined TRM as its interim president and a director.

Now that the restructuring effort is largely complete, the company needs a different set of skills for its day-to-day management, he said. "A lot happened in a concentrated period of time, and those played to my strengths." Mr. Stern "has more hands-on operational experience" running an ATM deployment company.

Mr. Brotman said that he would be an active chairman, helping TRM consider strategic options that could include acquisitions.

During a conference call Tuesday, Mr. Stern said TRM is continuing to cut costs. In the past year it has reduced head count by nearly 80%, to 64, he said. …

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