FORM 10-Q

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2003

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 0-19657

TRM CORPORATION
(Exact name of registrant as specified in its charter)

Oregon		93-0809419
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

5208 N.E. 122nd Avenue Portland, Oregon 97230
(Address of principal executive offices) (Zip Code)

(503) 257-8766
(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

YES ý NO o

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

YES o NO ý

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

CLASS		OUTSTANDING AT SEPTEMBER 30, 2003
Common Stock		7,059,790

PART I—FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

TRM Corporation

Consolidated Balance Sheets

(In thousands)

	December 31, 2002			September 30, 2003
				(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	2,127		$	6,917
Accounts receivable, net	6,084			5,614
Inventories, net	947			1,391
Prepaid expenses and other	778			1,369
Deferred tax asset	876			727
Total current assets	10,812			16,018
Equipment, less accumulated depreciation	67,916			64,341
Intangible assets	72			72
Other assets	1,773			1,380
Total assets	$	80,573		$	81,811

Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	2,231		$	1,394
Accrued expenses	7,932			6,932
Income taxes payable	3			—
Current portion of litigation settlement	1,050			—
Current portion of long-term debt	21			3,022
Current portion of obligations under capital leases	1,508			2,053
Total current liabilities	12,745			13,401

Litigation settlement	738			—
Long-term debt	16,709			11,293
Obligations under capital leases	2,579			2,905
Deferred tax liability	2,203			4,059
Other long-term liabilities	128			91
Preferred dividends payable	3,377			4,502
Total liabilities		38,479			36,251

Shareholders’ equity:
Preferred stock, no par value Authorized 5,000 shares; 1,778 shares issued and outstanding (liquidation preference $20,003)		19,798			19,798
Common stock, no par value 50,000 shares authorized; 7,060 shares issued and outstanding	19,026			19,026
Additional paid-in capital	63			63
Accumulated other comprehensive income (loss)	(738		)	432
Retained earnings	3,945			6,241
Total shareholders’ equity	42,094			45,560
Total liabilities and shareholders’ equity	$	80,573		$	81,811

See accompanying notes to consolidated financial statements.

TRM Corporation

Consolidated Statements of Operations

(unaudited)

(In thousands, except per share data)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2002		2003		2002		2003
Sales	$	21,675	$	24,097	$	63,848	$	70,877
Less discounts	3,664		4,271		11,025		12,148
Net sales	18,011		19,826		52,823		58,729
Cost of sales	10,794		10,996		32,439		34,032
Gross profit	7,217		8,830		20,384		24,697
Selling, general and administrative expense	6,375