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When a LetterMat is placed, it is a single object. The individual letters cannot be moved separately until the Font is Exploded.
Select the desired LetterMat.
Click Explode Font on the Advanced tab to break it up into the individual letters.
Optionally, Right-Click on the LetterMat and select Explode Font.
For Additional information:
Select Explode Font on the Advanced tab in the Design editor.
Right-Click on the LetterMat in the Design editor and select Explode Font.
Right-Click on the TTF in the Design editor and select Explode Font.
The Explode Font function will break up a LetterMat or TTF into individual letters that can be edited separately.
Full Definition: Explode Font Definition
The LetterMat will be broken up into Individual Letters which can be edited separately.
As an example, these letters were Fanned out.
For Additional Information: Right-Click on the object and select Convert to CutArt to bring the design into Trace to further edit.