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they did not initiate the last one. this is why I want to wait to read a pr if the buy back is in affect. today, the whole market was crappy.
Weren't we in the midst of a $100 Million buyback before we heard about this one?
once we get word the buy back is a go.
Outerwall Given New $75.00 Price Target at Northland Capital Partners (OUTR)
Posted by Ethan Ryder on Oct 29th, 2013 // No Comments
Outerwall (NASDAQ:OUTR) had its price objective raised by Northland Capital Partners from $62.00 to $75.00 in a research report released on Friday morning, American Banking News reports. Northland Capital Partners currently has an outperform rating on the stock.
Several other analysts have also recently commented on the stock. Analysts at Compass Point reiterated a neutral rating on shares of Outerwall in a research note to investors on Tuesday, October 22nd. They now have a $60.00 price target on the stock, up previously from $50.00. Separately, analysts at Zacks downgraded shares of Outerwall from an outperform rating to a neutral rating in a research note to investors on Thursday, September 19th. They now have a $59.40 price target on the stock. Finally, analysts at JPMorgan Chase & Co. cut their price target on shares of Outerwall from $50.50 to $49.00 in a research note to investors on Tuesday, September 17th. They now have an underweight rating on the stock. Three investment analysts have rated the stock with a sell rating, one has given a hold rating and three have assigned a buy rating to the stock. The stock presently has a consensus rating of Hold and a consensus price target of $64.57.
Shares of Outerwall (NASDAQ:OUTR) traded up 2.46% during mid-day trading on Friday, hitting $66.54. The stock had a trading volume of 1,035,535 shares. Outerwall has a 1-year low of $40.50 and a 1-year high of $65.60. The stock has a 50-day moving average of $60.06 and a 200-day moving average of $57.85. The company has a market cap of $1.843 billion and a P/E ratio of 10.81.
Outerwall (NASDAQ:OUTR) last posted its quarterly earnings results on Thursday, October 24th. The company reported $0.97 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.88 by $0.09. The company had revenue of $587.40 million for the quarter, compared to the consensus estimate of $577.32 million. During the same quarter in the previous year, the company posted $1.26 earnings per share. The company’s revenue for the quarter was up 9.2% on a year-over-year basis. On average, analysts predict that Outerwall will post $4.90 earnings per share for the current fiscal year.
Outerwall Inc, formerly Coinstar, Inc, is a provider of automated retail solutions, which offers convenient products and services.
Slaughter time weeeeeeeee see u $90
Outerwall spread looks for breakout
Outerwall has rebounded from a major selloff, and now traders are looking for a breakout to new highs.
optionMONSTER's Heat Seeker monitoring system detected the purchase of some 2,000 April 75 calls for $3.30 and the sale of a matching number of April 90 calls for $0.90. That translates into a cost of $2.40.
Volume was below open interest at the lower strike, so there are two possible explanations for the activity. One is that the investor owns shares in the company and had previously sold the 75s as part of a covered call strategy. Rolling the position higher would let him or her raise by $15 the level at which they must sell the stock.
Alternately the strategy might be a new bullish call spread , looking to leverage a move to $90. They'd collect $15 if that level is reached, resulting in profit of 525 percent. See our Education section for more.
OUTR rose 2.22 percent to $66.38 in late morning trading. It plunged into the mid-40s in late September after cutting guidance, quickly fought its way back and pushed higher again last week after increasing its stock buyback plan.
Formerly known as Coinstar, the company has shifted its focus to renting DVDs under its Redbox business. Its all-time peak was below $72 last year, so today's trader is looking for a breakout to new record levels.
Total option volume is slightly above average in the session, according to Heat Seeker. Calls outnumber puts by a bullish 9-to-1 ratio.
Read more: http://www.nasdaq.com/article/outerwall-spread-looks-for-breakout-cm293312#ixzz2j9RYYvrr
Outerwall Rating Lowered to Underperform at Zacks (OUTR)
http://tickerreport.com/banking-finance/45380/outerwall-rating-lowered-to-underperform-at-zacks-outr/
Zacks lowered shares of Outerwall (NASDAQ:OUTR) from a neutral rating to an underperform rating in a research report released on Friday morning, Analyst Ratings Net reports. Zacks currently has $60.00 price objective on the stock.
Zacks has also taken action a number of other stocks recently. The firm reiterated its neutral rating on shares of Shaw Communications. They have a $25.00 price target on that stock. Also, Zacks upgraded shares of Wipro Limited from a neutral rating to an outperform rating. Zacks now has a $11.90 price target on that stock. Finally, Zacks downgraded shares of KKR Financial Holdings LLC from a neutral rating to an underperform rating. Their analysts now have a $9.60 price target on that stock.
OUTR has been the subject of a number of other recent research reports. Analysts at Northland Securities raised their price target on shares of Outerwall from $62.00 to $75.00 in a research note to investors on Friday. Separately, analysts at Northland Capital Partners raised their price target on shares of Outerwall from $62.00 to $75.00 in a research note to investors on Friday. They now have an outperform rating on the stock. Finally, analysts at Compass Point reiterated a neutral rating on shares of Outerwall in a research note to investors on Tuesday, October 22nd. They now have a $60.00 price target on the stock, up previously from $50.00. Three investment analysts have rated the stock with a sell rating, one has assigned a hold rating and three have issued a buy rating to the company’s stock. Outerwall currently has an average rating of Hold and a consensus target price of $64.57.
Shares of Outerwall (NASDAQ:OUTR) traded up 2.25% during mid-day trading on Friday, hitting $66.40. 590,763 shares of the company’s stock traded hands. Outerwall has a one year low of $40.50 and a one year high of $65.60. The stock’s 50-day moving average is $60.06 and its 200-day moving average is $57.85. The company has a market cap of $1.839 billion and a price-to-earnings ratio of 10.81.
Outerwall (NASDAQ:OUTR) last announced its earnings results on Thursday, October 24th. The company reported $0.97 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.88 by $0.09. The company had revenue of $587.40 million for the quarter, compared to the consensus estimate of $577.32 million. During the same quarter in the previous year, the company posted $1.26 earnings per share. The company’s revenue for the quarter was up 9.2% on a year-over-year basis. On average, analysts predict that Outerwall will post $4.90 earnings per share for the current fiscal year.
Outerwall Inc, formerly Coinstar, Inc, is a provider of automated retail solutions, which offers convenient products and services.
To view Zacks’ full report, visit www.zacks.com
Outerwall (OUTR) Enters $50M Pre-Arranged Buyback Plan
On October 29, 2013, Outerwall Inc. (Nasdaq: OUTR) entered into a letter agreement (the “DSB Agreement”) with Wells Fargo Bank, National Association and Wells Fargo Securities, LLC as agent (collectively, “Wells Fargo”), to effect discounted share repurchases of Company common stock under current share repurchase authorizations of the Company’s Board of Directors (the “Board”). As of October 29, 2013, the Company was authorized to repurchase up to $300.4 million of its common stock.
Under the DSB Agreement, the Company will pay a purchase price of $100 million to Wells Fargo on October 30, 2013. Under the terms of the DSB Agreement, the Company is expected to receive multiple interim deliveries of its common shares from Wells Fargo, with the final delivery of shares to be made by Wells Fargo prior to the end of 2013. The final number of shares that the Company will repurchase under the DSB Agreement will be determined based on a discount to the arithmetic mean of the volume-weighted average prices of the Company’s common stock for each averaging date over the course of the calculation period. The Company will be under no obligation to compensate Wells Fargo if the calculated number of shares to be repurchased at the conclusion of the calculation period is less than the number of shares previously delivered at the initial delivery dates.
The Company’s outstanding shares used to calculate earnings per share will be reduced by the number of common shares repurchased pursuant to the DSB Agreement as they are delivered to the Company, and the $100 million purchase price will be recorded as a reduction in stockholders’ equity upon its payment.
The DSB Agreement contains certain terms customary for agreements of this type, including provisions for adjustments upon the occurrence of certain extraordinary corporate and market events and setting forth certain circumstances under which the DSB Agreement may be modified, extended, terminated or unwound early.
On October 29, 2013, the Company also adopted a pre-arranged stock trading plan for the purpose of repurchasing $50 million of the Company’s common stock in accordance with guidelines specified under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, and the Company’s policies regarding stock transactions (the “10b5-1 Plan”). This plan has been established in accordance with current share repurchase authorizations of the Board. The 10b5-1 Plan will cover the repurchase of common shares commencing no earlier than January 2, 2014 and expiring no later than January 31, 2014. Repurchases are subject to SEC regulations as well as certain price, market volume and timing requirements specified in the 10b5-1 Plan, and may be amended or terminated under certain circumstances.
Wells Fargo and its affiliates have performed, and may in the future perform, various commercial banking and other financial advisory services for the Company and its subsidiaries for which they have received, and will receive, customary fees and expenses.
http://www.streetinsider.com/Corporate+News/Outerwall+(OUTR)+Enters+$50M+Pre-Arranged+Buyback+Plan/8819709.html
$OUTR - Outerwall beats by $0.09, beats on revenues • 4:02 PM
Outerwall (OUTR): Q3 EPS of $0.97 beats by $0.09.
Revenue of $587.4M beats by $10.08M.
EXTENDED HOURS:
Last: 67.50 Change: +5.52 (+8.91%)
EXTENDED HOURS:
Last: 66.02 Change: +4.04 (+6.52%)
Press Release: Outerwall Inc. Announces 2013 -5-
4:01 PM ET 10/24/13 | Dow Jones
(2) Share-based payments expense related to our content arrangements have
been allocated to our Redbox segment.
SOURCE Outerwall Inc.
/CONTACT: Media: Marci Maule, Director of Public Relations, 425-943-8277, marci.maule@outerwall.com, Financial Analysts and Investors: Rosemary Moothart, Director of Investor Relations, 425-943-8140, rosemary.moothart@outerwall.com
/Web site: http://www.outerwall.com
> Dow Jones Newswires
October 24, 2013 16:01 ET (20:01 GMT)
Press Release: Outerwall Inc. Announces 2013 -4-
4:01 PM ET 10/24/13 | Dow Jones
Real time quote.
Deferred income taxes 65,361 91,751
--------------- ---------------
Total liabilities 1,195,224 1,012,637
Commitments and contingencies
Debt conversion feature 2,080 --
Stockholders' Equity:
Preferred stock, $0.001 par value -
5,000,000 shares authorized; no shares
issued or outstanding -- --
Common stock, $0.001 par value - 60,000,000
authorized;
36,401,195 and 35,797,592 shares issued;
27,692,838 and 28,626,323 shares outstanding 475,404 504,881
Treasury stock (377,510) (293,149)
Retained earnings 491,096 338,979
Accumulated other comprehensive loss (1,927) (1,623)
--------------- ---------------
Total stockholders' equity 587,063 549,088
--------------- ---------------
Total liabilities and stockholders' equity $ 1,784,367 $ 1,561,725
=========== ===========
OUTERWALL INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ------------------------
2013 2012 2013 2012
------------ -------- ----------- -----------
Operating Activities:
Net income $ 82,656 $ 36,774 $ 152,117 $ 127,345
Adjustments to reconcile
net income to net cash
flows from operating
activities:
Depreciation and other 52,250 50,470 149,435 133,579
Amortization of intangible
assets and deferred
financing fees 3,800 2,551 8,967 4,925
Share-based payments
expense 2,774 (1,586) 11,454 13,144
Excess tax benefits on
share-based payments (318) (1,936) (3,347) (5,673)
Deferred income taxes 24,813 16,566 (12,098) 73,190
(Income) loss from equity
method investments, net (57,934) 6,021 (41,280) (4,094)
Non-cash interest on
convertible debt 549 1,789 3,323 5,270
Loss from extinguishments
of callable convertible
debt 1 -- 5,950 --
Other 2,831 (794) 1,020 (4,107)
Cash flows from changes in
operating assets and
liabilities: (49,695) 7,618 (143,150) (31,885)
------------ -------- ----------- -----------
Net cash flows from
operating activities 61,727 117,473 132,391 311,694
Investing Activities:
Acquisition of ecoATM, net
of cash acquired (244,036) -- (244,036) --
Purchases of property and
equipment (39,886) (56,480) (108,616) (133,181)
Proceeds from sale of
property and equipment 56 150 12,888 819
Net sales (purchases) of
short term investments 10,000 -- -- --
Receipt of note receivable
principal -- -- 95 --
Acquisition of NCR DVD
kiosk business -- -- -- (100,000)
Cash paid for equity
investments (14,000) (11,377) (28,000) (39,727)
------------ -------- ----------- -----------
Net cash flows from
investing activities (287,866) (67,707) (367,669) (272,089)
Financing Activities:
Proceeds from issuance of
senior unsecured notes -- -- 343,769 --
Proceeds from new
borrowing of credit
facility 150,000 -- 150,000 --
Principal payments on
credit facility (54,376) (3,293) (60,938) (7,668)
Financing costs associated
with senior unsecured
notes -- -- (444) --
Repurchase of convertible
debt (30) -- (169,664) --
Repurchases of common
stock (23,616) (59,012) (95,004) (63,070)
Principal payments on
capital lease obligations
and other debt (3,373) (4,008) (10,824) (13,202)
Excess tax benefits
related to share-based
payments 318 1,936 3,347 5,673
Proceeds from exercise of
stock options, net 1,018 53 7,763 4,034
------------ -------- ----------- -----------
Net cash flows from
financing activities 69,941 (64,324) 168,005 (74,233)
Effect of exchange rate
changes on cash 1,183 1,381 (391) 1,231
------------ -------- ----------- -----------
Increase (decrease) in
cash and cash
equivalents (155,015) (13,177) (67,664) (33,397)
Cash and cash equivalents:
Beginning of period 370,245 321,635 282,894 341,855
------------ -------- ----------- -----------
End of period $ 215,230 $308,458 $ 215,230 $ 308,458
=== ======= ======= ======= =======
OUTERWALL INC.
BUSINESS SEGMENT INFORMATION
(in thousands)
(unaudited)
As a complement to our Consolidated Statements of Comprehensive Income, we are
providing the following information related to our business segments, which
includes segment operating income (loss). Management, including our chief
executive officer, evaluates the performances of our business segments
primarily on segment revenue and segment operating income before depreciation,
amortization and other, and certain share-based payments ("segment operating
income"). We utilize segment revenue and segment operating income because we
believe they provide useful information for effectively allocating resources
among business segments, evaluating the health of our business segments based
on metrics that management can actively influence, and gauging our investments
and our ability to service, incur or pay down debt or return capital to
shareholders such as through share repurchases.
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ----------------------
Dollars in thousands 2013 2012 2013 2012
------------ -------- ---------- ----------
Revenue:
Redbox $ 491,694 $459,538 $1,478,132 $1,420,448
Coinstar 79,611 77,616 219,520 216,297
New Ventures 16,048 408 18,617 1,216
------------ -------- ---------- ----------
Consolidated revenue $ 587,353 $537,562 $1,716,269 $1,637,961
======== ======= ========= =========
Segment operating income reconciled to GAAP operating income
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ---------------------
Dollars in thousands 2013 2012 2013 2012
------------ -------- ----------- --------
Segment operating income
(loss)(1)
Redbox(2) $ 90,966 $101,203 $ 290,333 $306,741
Coinstar 27,649 27,915 71,689 72,961
New Ventures (9,121) (6,546) (27,052) (18,315)
------------ -------- ----------- --------
Subtotal 109,494 122,572 334,970 361,387
Depreciation, amortization
and other:
Redbox 41,478 41,478 122,219 109,256
Coinstar 8,539 10,968 25,493 27,588
New Ventures 5,424 43 8,808 65
------------ -------- ----------- --------
Total depreciation,
amortization and other 55,441 52,489 156,520 136,909
Share-based compensation
and rights to receive cash
expense 5,634 3,214 11,838 9,549
Operating income (loss):
Redbox 49,488 59,725 168,114 197,485
Coinstar 19,110 16,947 46,196 45,373
New Ventures (14,545) (6,589) (35,860) (18,380)
Share-based compensation
and rights to receive cash
expense (5,634) (3,214) (11,838) (9,549)
------------ -------- ----------- --------
Total operating income $ 48,419 $ 66,869 $ 166,612 $214,929
=== ======= ======= ======= =======
(1) Operating income (loss) before depreciation, amortization and other,
and share-based compensation and rights to receive cash expense.
(MORE TO FOLLOW) Dow Jones Newswires
October 24, 2013 16:01 ET (20:01 GMT)
Press Release: Outerwall Inc. Announces 2013 -3-
4:01 PM ET 10/24/13 | Dow Jones
Rights to receive cash
issued in connection with
the acquisition of ecoATM 2,300 -- 2,300 --
Loss from equity method
investments 10,442 6,021 27,096 15,406
Gain on previously held
equity interest on ecoATM (68,376) -- (68,376) --
Gain on formation of Redbox
Instant by Verizon -- -- -- (19,500)
------------ -------- ----------- --------
Core adjusted EBITDA $ 110,535 $117,771 $ 339,232 $368,180
======== ======= ======= =======
(1) Includes both non-cash share-based compensation for executives,
non-employee directors and employees as well as share-based payments for
content arrangements.
Core Diluted EPS
Our non-GAAP financial measure core diluted EPS is defined as diluted earnings per share excluding Non-Core Adjustments, net of applicable taxes.
A reconciliation of core diluted EPS to diluted EPS, the most comparable GAAP financial measure, is presented in the following table:
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ---------------------
2013 2012 2013 2012
------------- ------- ------------ -------
Diluted EPS $ 2.95 $ 1.14 $ 5.32 $ 3.90
Non-core adjustments, net
of tax:(1)
Acquisition costs 0.09 -- 0.14 0.06
Rights to receive cash
issued in connection with
the acquisition of ecoATM 0.06 -- 0.06 --
Loss from equity method
investments 0.23 0.12 0.58 0.29
Gain on previously held
equity interest on ecoATM (2.36) -- (2.32) --
Gain on formation of Redbox
Instant by Verizon -- -- -- (0.37)
------------- ------- ------------ -------
Core diluted EPS $ 0.97 $ 1.26 $ 3.78 $ 3.88
==== ======= ====== ==== ====== ======
(1) Non-Core Adjustments are presented after-tax using the applicable
effective tax rate for the respective periods.
Free Cash Flow
Our non-GAAP financial measure free cash flow is defined as net cash provided by operating activities after capital expenditures. We believe free cash flow is an important non-GAAP measure as it provides additional information to users of the financial statements regarding our ability to service, incur or pay down indebtedness and repurchase our securities.
A reconciliation of free cash flow to net cash provided by operating activities, the most comparable GAAP financial measure, is presented in the following table:
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ------------------------
Dollars in thousands 2013 2012 2013 2012
------------ -------- ----------- -----------
Net cash provided by
operating activities $ 61,727 $117,473 $ 132,391 $ 311,694
Purchase of property and
equipment (39,886) (56,480) (108,616) (133,181)
------------ -------- ----------- -----------
Free cash flow $ 21,841 $ 60,993 $ 23,775 $ 178,513
=== ======= ======= ======= =======
OUTERWALL INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ----------------------
2013 2012 2013 2012
------------ -------- ---------- ----------
Revenue $ 587,353 $537,562 $1,716,269 $1,637,961
Expenses:
Direct operating(1) 408,713 351,541 1,183,613 1,098,750
Marketing 9,123 7,513 24,619 20,080
Research and development 3,819 3,140 12,105 10,684
General and
administrative 61,838 56,010 172,800 156,609
Depreciation and other 52,250 50,470 149,435 133,579
Amortization of
intangible assets 3,191 2,019 7,085 3,330
------------ -------- ---------- ----------
Total expenses 538,934 470,693 1,549,657 1,423,032
------------ -------- ---------- ----------
Operating income 48,419 66,869 166,612 214,929
Other income (expense),
net:
Income (loss) from
equity method
investments, net 57,934 (6,021) 41,280 4,094
Interest expense, net (8,402) (3,892) (25,953) (11,033)
Other, net (2,402) (21) (3,323) (37)
------------ -------- ---------- ----------
Total other income
(expense), net 47,130 (9,934) 12,004 (6,976)
------------ -------- ---------- ----------
Income before income
taxes 95,549 56,935 178,616 207,953
Income tax expense (12,893) (20,161) (26,499) (80,608)
------------ -------- ---------- ----------
Net income 82,656 36,774 152,117 127,345
------------ -------- ---------- ----------
Foreign currency
translation
adjustment(2) 1,852 1,477 (304) 1,342
------------ -------- ---------- ----------
Comprehensive income $ 84,508 $ 38,251 $ 151,813 $ 128,687
======== ======= ========= =========
Basic earnings per share $ 3.03 $ 1.21 $ 5.55 $ 4.16
Diluted earnings per
share $ 2.95 $ 1.14 $ 5.32 $ 3.90
Weighted average shares
used in basic per share
calculations 27,244 30,454 27,391 30,605
Weighted average shares
used in diluted per
share calculations 28,016 32,238 28,582 32,684
"Direct operating" excludes depreciation and other of $33.4 million and
(1) $98.3 million for the three and nine months ended September 30, 2013,
respectively, and $34.2 million and $94.4 million for the three and nine
months ended September 30, 2012, respectively.
(2) Foreign currency translation adjustment has no tax effect for the three
and nine months ended September 30, 2013 and 2012, respectively.
OUTERWALL INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)
September 30, December 31,
2013 2012
--------------- ---------------
Assets (As adjusted)
Current Assets:
Cash and cash equivalents $ 215,230 $ 282,894
Accounts receivable, net of allowances of
$1,525 and $2,003 58,624 58,331
Content library 167,963 177,409
Deferred income taxes -- 7,187
Prepaid expenses and other current assets 65,600 29,686
--------------- ---------------
Total current assets 507,417 555,507
Property and equipment, net 560,075 586,124
Notes receivable 23,877 26,731
Deferred income taxes 5,466 1,373
Goodwill and other intangible assets 642,614 344,063
Other long-term assets 44,918 47,927
--------------- ---------------
Total assets $ 1,784,367 $ 1,561,725
=========== ===========
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $ 165,110 $ 250,588
Accrued payable to retailers 128,535 138,413
Other accrued liabilities 122,858 146,125
Current callable convertible debt 51,625 --
Current portion of long-term debt and other 18,599 15,529
Current portion of capital lease obligations 13,386 13,350
Deferred income taxes 12,712 --
--------------- ---------------
Total current liabilities 512,825 564,005
Long-term debt and other long-term
liabilities 605,693 341,179
Capital lease obligations 11,345 15,702
(MORE TO FOLLOW) Dow Jones Newswires
October 24, 2013 16:01 ET (20:01 GMT)
Press Release: Outerwall Inc. Announces 2013 -2-
4:01 PM ET 10/24/13 | Dow Jones
The recently acquired ecoATM business continued to perform above expectations throughout the third quarter. At the end of the quarter, there were more than 800 ecoATM kiosks in the marketplace, up from the approximately 700 kiosks at the close of the acquisition in July. The company continued testing ecoATM kiosks in both the mass and grocery channels in the quarter and expects those channels, along with expansion in the mall channel, to contribute to growth in 2014.
The company continued its review of its other New Ventures to ensure they provide the appropriate level of risk adjusted returns. The company expects to complete the review by the end of the year.
Guidance
For the 2013 full year, Outerwall management expects:
-- Consolidated revenue between $2.303 billion and $2.328 billion;
-- Core adjusted EBITDA between $457 million and $467 million;
-- Core diluted EPS between $4.89 and $5.04 on a fully diluted basis; and
-- Free cash flow between $170 million and $188 million.
For the 2013 fourth quarter, Outerwall management expects:
-- Consolidated revenue between $585 million and $610 million;
-- Core adjusted EBITDA between $117 million and $127 million; and
-- Core diluted EPS between $1.09 and $1.24 on a fully diluted basis.
Additional Information
Outerwall has provided additional comments on guidance in prepared remarks that also review the company's 2013 third quarter operating and financial results. The prepared remarks and supplemental slides, as well as this press release, are posted on the Investor Relations section of the corporate website at ir.outerwall.com. The 2013 third quarter Segment Supplement, which provides historical data in Excel format, is also posted on the website.
Conference Call
CEO J. Scott Di Valerio and CFO Galen C. Smith will host a conference call today at 2:00 p.m. PDT (5:00 p.m. EDT) to answer questions related to the company's performance and guidance. The conference call will be webcast live and archived on the Investor Relations section of Outerwall's website at ir.outerwall.com. A recording of the call will be available approximately two hours after the call ends through November 7, 2013, at 1-888-843-7419 or 1-630-652-3042, passcode 3582 5269.
About Outerwall Inc.
Outerwall Inc. (Nasdaq: OUTR) has more than 20 years of experience creating some of the most profitable spaces for their retail partners. The company mission is to create a better everyday by delivering breakthrough kiosk experiences that delight consumers and generate revenue for retailers. As the company that brought consumers Redbox(R) entertainment, Coinstar(R) money services, Rubi(TM) coffee, and ecoATM(R) electronics recycling kiosks, Outerwall is leading the next generation of automated retail and paving the way for inventive, scalable businesses. Outerwall(TM) kiosks are in neighborhood grocery stores, drug stores, mass merchants, malls, and other retail locations in the United States, Canada, Puerto Rico, the United Kingdom, and Ireland. Learn more at www.outerwall.com.
Safe Harbor for Forward-Looking Statements
Certain statements in these prepared remarks are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "estimate," "expect," "intend," "anticipate," "goals," variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. The forward-looking statements in this release include statements regarding Outerwall Inc.'s anticipated growth and future operating results, including 2013 fourth quarter and full year results, its net leverage target and debt and credit relationships, as well as stock repurchases and review of new ventures. Forward-looking statements are not guarantees of future performance and actual results may vary materially from the results expressed or implied in such statements. Differences may result from actions taken by Outerwall Inc. or Redbox, as well as from risks and uncertainties beyond Outerwall Inc.'s control. Such risks and uncertainties include, but are not limited to:
-- competition from other digital entertainment providers,
-- the ability to achieve the strategic and financial objectives for our
entry into new businesses, including ecoATM and Redbox Instant(TM) by
Verizon,
-- failure to receive the expected benefits of the NCR relationship,
-- our ability to obtain future financings and refinancing, repurchase stock
and the availability of an open trading window,
-- the termination, non-renewal or renegotiation on materially adverse terms
of our contracts with our significant retailers and suppliers,
-- payment of increased fees to retailers, suppliers and other third-party
providers, including financial service providers,
-- the timing of new DVD releases and the inability to receive delivery of
DVDs on the date of their initial release to the general public, or
shortly thereafter, or in sufficient quantity, for home entertainment
viewing,
-- noteholders electing to convert our convertible notes,
-- the effective management of our content library,
-- the ability to attract new retailers, penetrate new markets and
distribution channels and react to changing consumer demands,
-- the ability to adequately protect our intellectual property, and
-- the application of substantial federal, state, local and foreign laws and
regulations specific to our business.
The foregoing list of risks and uncertainties is illustrative, but by no means exhaustive. For more information on factors that may affect future performance, please review "Risk Factors" described in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission. These forward-looking statements reflect Outerwall Inc.'s expectations as of the date of these prepared remarks. Outerwall Inc. undertakes no obligation to update the information provided herein.
(Financial Statements Follow)
Appendix A
Use of Non-GAAP Financial Measures
Non-GAAP measures may be provided as a complement to results provided in accordance with United States generally accepted accounting principles ("GAAP").
We use the following non-GAAP financial measures to evaluate our financial results:
-- Core adjusted EBITDA;
-- Core diluted earnings per share ("EPS"); and
-- Free cash flow.
These measures, the definitions of which are presented below, are non-GAAP because they exclude certain amounts which are included in the most directly comparable measure calculated and presented in accordance with GAAP. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for our GAAP financial measures and may not be comparable with similarly titled measures of other companies.
Core and Non-Core Results
We distinguish our core activities, those associated with our primary operations which we directly control, from non-core activities. Non-core activities are primarily nonrecurring events or events we do not directly control. Our non-core adjustments include i) acquisition costs primarily related to the NCR Asset Acquisition and acquisition of ecoATM, Inc., ii) a gain on the grant of a license to use certain Redbox trademarks to Redbox Instant(TM) by Verizon, iii) income or loss from equity method investments, which represents our share of income or loss from entities we do not consolidate or control and includes the impacts of the gain on re-measurement of our previously held equity interest in ecoATM upon acquisition and iv) compensation expense for rights to receive cash issued in conjunction with our acquisition of ecoATM and attributable to post-combination services as they are fixed amount acquisition related awards and not indicative of the directly controllable future business results ("Non-Core Adjustments").
We believe investors should consider our core results because they are more indicative of our ongoing performance and trends, are more consistent with how management evaluates our operational results and trends, provide meaningful supplemental information to investors through the exclusion of certain expenses which are either non-recurring or may not be indicative of our directly controllable business operating results, allow for greater transparency in assessing our performance, help investors better analyze the results of our business and assist in forecasting future periods.
Core Adjusted EBITDA
Our non-GAAP financial measure core adjusted EBITDA is defined as earnings before depreciation, amortization and other; interest expense, net; income taxes; share-based payments expense; and Non-Core Adjustments.
A reconciliation of core adjusted EBITDA to net income, the most comparable GAAP financial measure, is presented in the following table:
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ---------------------
Dollars in thousands 2013 2012 2013 2012
------------ -------- ----------- --------
Net income $ 82,656 $ 36,774 $ 152,117 $127,345
Depreciation, amortization
and other 55,441 52,489 156,520 136,909
Interest expense, net 8,402 3,892 25,953 11,033
Income taxes 12,893 20,161 26,499 80,608
Share-based payments
expense(1) 2,774 (1,586) 11,454 13,144
------------ -------- ----------- --------
Adjusted EBITDA 162,166 111,730 372,543 369,039
Non-core adjustments:
Acquisition costs 4,003 20 5,669 3,235
(MORE TO FOLLOW) Dow Jones Newswires
October 24, 2013 16:01 ET (20:01 GMT)
Press Release: Outerwall Inc. Announces 2013 Third Quarter Results
4:01 PM ET 10/24/13 | Dow Jones
Outerwall Inc. Announces 2013 Third Quarter Results
Consolidated Revenue Growth Over 9%;
Redbox Revenue Increases 7%, with Same Store Sales Up 2.1% and Record 199.5 Million Rentals;
Outerwall Refines Target Leverage Ratio to Better Reflect Strength of Cash Flows and Needs of Business;
Announces Commitment to Return 75%-100% of Annual Free Cash Flow to Shareholders;
Plans to Repurchase Additional $150 Million of Common Stock
PR Newswire
BELLEVUE, Wash., Oct. 24, 2013
BELLEVUE, Wash., Oct. 24, 2013 /PRNewswire/ -- Outerwall Inc. (Nasdaq: OUTR), formerly Coinstar, Inc., today reported financial results for the third quarter and nine months ended September 30, 2013.
(Logo: http://photos.prnewswire.com/prnh/20130701/AQ41388LOGO)
"Outerwall reported a solid finish to the third quarter as the performance in our Redbox business improved substantially moving through the last few weeks of the quarter," said J. Scott Di Valerio, chief executive officer of Outerwall Inc. "While heightened promotional activity had positively influenced traffic at Redbox through July and into August, we identified pressure on revenue from the level of promotional discounts and higher than expected single-night rentals, and recalibrated our marketing strategies to improve bottom-line performance. We recognize the shift occurring in our Redbox business as we move from primarily a network expansion focus to an emphasis on incremental growth and network optimization, and the importance of driving bottom line and maximizing cash flow in the business. Our Coinstar business turned in a solid performance, and we are optimistic about the growth and future free cash flow opportunity ahead with the addition of ecoATM to the Outerwall automated retail platform."
Outerwall's 2013 third quarter and nine months financial highlights included:
2013 2013
Third Quarter Nine Months
-- Consolidated revenue $587.4 million $1,716.3 million
-- Net income $ 82.7 million $ 152.1 million
-- Core adjusted EBITDA* (See Appendix
A) $110.5 million $ 339.2 million
-- Diluted earnings per share $ 2.95 $ 5.32
-- Core diluted earnings per share*
(See Appendix A) $ 0.97 $ 3.78
-- Net cash provided by operating
activities $ 61.7 million $ 132.4 million
-- Free cash flow* (See Appendix A) $ 21.8 million $ 23.8 million
*Refer to Appendix A for a discussion of non-GAAP financial measures,
including the exclusion of certain non-core items.
New Capital Structure and Additional Share Repurchases
"We remain focused on driving profitable growth and maximizing free cash flow by creating greater operating leverage in our core businesses and reducing costs across the enterprise. We are making progress, having already reduced our costs in the fourth quarter," said Galen C. Smith, chief financial officer of Outerwall Inc. "As part of these efforts, and our commitment to value creation, we will continue to allocate capital to the highest return opportunities. Given the needs of the business and the strength of our cash flows, we believe it is appropriate to return 75% to 100% of free cash flow to Outerwall shareholders, which in the near term will be in the form of share repurchases, enabling us to benefit from current valuation."
Smith continued, "Further, we are refining our target net leverage ratio to be 1.75x to 2.25x net debt to core adjusted EBITDA, which we plan to establish during the fourth quarter through refinancing existing debt and additional revolver capacity. With this new capital structure, Outerwall will continue to benefit from a strong financial foundation that enables us to both drive further growth and value creation in the business and return an appropriate level of capital to our shareholders."
During the third quarter, the company repurchased approximately $23.6 million of its common stock for a total of $95.0 million of its original $100 million share repurchase target for 2013. The company plans to repurchase an additional $150 million of common stock, $100 million of which it announced in September and expects to execute before the end of the fourth quarter and the balance occurring early in the first quarter of 2014. As of September 30, 2013, there was $300.4 million remaining under the current board authorization for stock repurchases.
Results
Revenue for the third quarter of 2013 increased 9.3% to $587.4 million compared with $537.6 million for the third quarter of 2012, driven primarily by Redbox segment revenue of $491.7 million and New Ventures segment revenue of $16.0 million, which included the revenue from the ecoATM business since the acquisition closed on July 23, 2013. Redbox revenue increased 7.0% compared with $459.5 million for the third quarter of 2012, attributable primarily to Redbox(R) kiosk installations installed in 2012 that continue to ramp and a 2.1% increase in same store sales. Coinstar, formerly known as Coin, segment revenue was $79.6 million for the third quarter of 2013, compared with $77.6 million for the same period last year driven primarily by a 5.5% increase in average transaction size.
Operating income for the third quarter of 2013 was $48.4 million, which resulted in an operating margin of 8.2%, compared with operating income of $66.9 million and an operating margin of 12.4% in the third quarter of 2012. The decline in operating income was primarily driven by the Redbox segment where lower than expected revenue growth was offset by increased expenses that reflected several factors, including: higher product costs as a result of a 19% increase in theatrical titles driven largely by a weaker release schedule in 2012 due to the Summer Olympics and content purchases in anticipation of higher rental demand, growth in the installed kiosk base, increased content purchases under the company's Warner agreement, which was signed in the fourth quarter of 2012, relative to Q3 2012 when the company was procuring Warner content through alternative sources, as well as increased higher-cost Blu--ray content purchases as the company continues to grow this format. Product is typically purchased six to eight weeks in advance based on forecasted demand and revenue and future content purchases are adjusted if results in the current period do not meet expectations, but it impacts operating income in the short-term. Increases in revenue share, customer service, and payment card processing fees and support function costs directly attributable to revenue and kiosk growth were offset by a reduction in kiosk field operation costs as Redbox continues to gain efficiencies as its installed base grows.
Net income for the third quarter of 2013 was $82.7 million, or diluted earnings per share of $2.95, compared with $36.8 million, or $1.14 per diluted share, in the third quarter of 2012. Core diluted earnings per share for the third quarter of 2013 was $0.97, excluding favorable non-core adjustments of $1.98 per share, compared with $1.26 per diluted share, which excluded unfavorable non-core adjustments of $0.12 per share, in the third quarter of 2012. Non-core adjustments for the third quarter of 2013 included the gain on the previously held equity interest in ecoATM, the impact of the rights to receive cash issued in connection with the acquisition of ecoATM, associated acquisition costs, and the loss from equity method investments.
Net cash provided by operating activities in the third quarter of 2013 was $61.7 million, compared with $117.5 million in the third quarter of 2012. The primary factor in the decline in operating cash flow relative to last year was the timing of working capital items and the decline in operating income as noted above. Cash capital expenditures for the third quarter of 2013 were $39.9 million, compared with $56.5 million in the third quarter of 2012. Free cash flow for the third quarter of 2013 was $21.8 million, compared with $61.0 million in the third quarter of 2012.
Redbox
Redbox performance in the third quarter was in line with revised expectations. Redbox generated 199.5 million rentals in the quarter, the highest number of rentals the company has reported in a quarter and up 13.1% year over year. Unique credit and debit cards used in the quarter increased 8% over the prior year to a record of nearly 42 million. In addition to promotional discount activities, rental performance was supported by a stronger content slate and continued strong performance of Blu-ray and video games. Net revenue per rental came in at $2.46, down from $2.52 in the third quarter of 2012, reflecting the promotional activity and increased single night rentals in the quarter.
Coinstar
Revenue increased $2.0 million, or 2.6%, primarily due to a 5.5% increase in the average coin-to-voucher transaction size to $41.25 and an increase in the volume of non-cash voucher products by 0.6%. Revenue increased at a rate lower than the increase in transaction size due to variations in country and product mix, including growth in Canada driven by TD Canada Trust, which has a different revenue model than regular coin-to-voucher transactions. Same store sales were also up slightly overall. Effective October 1, 2013, the company implemented a price increase for all U.S. grocery retail locations for the coin voucher product taking the rate to 10.9%. The price increase was implemented to offset the increase in operating costs and transportation and processing expenses since the last price increase taken in February 2010.
New Ventures
(MORE TO FOLLOW) Dow Jones Newswires
October 24, 2013 16:01 ET (20:01 GMT)
I'm getting excited for this afternoon...honestly have no idea which way this is going to go...on one hand you have the shorts that always take her down regardless of good or bad earnings...on the other hand you have the new shareholders and conference call to wonder about for guidance...nail biter!
Jana Bets Big On Outerwall
http://seekingalpha.com/article/1761632-jana-bets-big-on-outerwall?source=email_rt_article_readmore&app=1
Outerwall (OUTR) PT Raised at Compass Point
http://www.streetinsider.com/Analyst+Comments/Outerwall+(OUTR)+PT+Raised+at+Compass+Point/8796937.html
you saw how that group hijacked ODP right under the board's nose LOL They will dictate to the point Verizon may have to buyout the whole Redbox Instant from outerwall. Verizon don't like to have bossy partners.
What are you saying? Does having Jana Partners will translate into ODP having RedBoxes outside their locations?
:-O
Now we have big outside money, outr just got ODP lol
Jana stake, possible cash harvest has Barron's bullish on Outerwall
"Jana ... could be the catalyst that investors have been waiting for," David Englander writes, regarding the activist fund's recent disclosure (see here and here) of a 13.5% stake in Outerwall (OUTR).Barron's thinks Jana is likely to "push management to boost cash generation and return more capital to shareholders."More specifically, "shareholders might urge management to pare new ventures, sell its stake in Redbox Instant, push the company to add debt, [or sell] Coinstar, which might fetch $500M."Wedbush thinks a "cash harvest" could eventually lead to "a large buyback" and the initiation of a dividend. More on Wedbush's thoughts here.Ultimately, Englander says the shares have "more upside ahead."
Star I love the shorts on here lol The problem many are playing OUTR thinking the coin exchange is the only source of revs. The RedboxInstant got more big name movies than netflix. Verizon put a whole lot to team up with redbox. They wont let it go down without a fight. I would not be supervised if verizon buy out the redbox from OUTR.
I knew this would eventually happen all along...
Outerwall Tops Netflix In Cash Flow And Margins
http://seekingalpha.com/article/1737372-outerwall-tops-netflix-in-cash-flow-and-margins?source=email_rt_article_readmore&app=1
Agree...and that's why my past calls all the way to $100 were posted...I truly believe these guys can achieve that pps one day.
Good analysis. Although, after a huge jump like this, in one day .... there's bound to be some profit takers. A big board stock gaining this much in one day?!
EDIT: Out at 60. I'm fine with that.
I'm not going to get greedy, lots of profits here.
I am pretty sure that when OUTR revised estimates, that the shorts piled on.
The current short count pre-dates the revision and imo vastly understates the number of shares that were short (until this afternoon).
So normally, I'd agree this is a huge jump, but the company was undervalued, and now we're in potentially a significant short squeeze.
ONE MORE THING: they said they would be throwing another $100m at buying shares starting in October. We are in October.
TL:DR - nothing wrong with taking profits, and I may lighten up as the business momentum is stalling a bit - but the stock is not overpriced and it is a prime candidate for a real short squeeze.
Probably not. Though, I find it funny that Tweeter, the old electronics store, boomed because of it (stock symbol: TWTRQ).
I may have to get one myself... lol
You gonna play the TWTR IPO?
Could $OUTR be my 3rd buyout in as many years? WOWZA!
Agree...Cha Ching it is...haven't seen a $10 intraday swing here in a long time Now the question is how much are they going to sell themselves for? lol
Just responded, but yes. That's it.
The only reason I have a Twitter account is to follow stock news. It's the best way to get that type of news before the seekingalpha's and marketwatch's finally say something. Or, as I affectionately call them: afterwatch. As they always report the news after the traders have done their thing.
It's all on speculation of selling part of the company, or going private.
A fund manager has been acquiring stock and now owns 13.5%. Having talks with company about bringing out value. That usually mean selling part of the company or going private, etc...
Jana partners.
The reason for the spike at the end of the day is that the High Frequency Taders got news of this first.
I'm not going to get greedy, lots of profits here.
Is this the reason?
Jana, run by fund manager Barry Rosenstein, owns 3.78M Outerwall (OUTR) shares, good for a 13.5% stake.
The firm states in a 13D it " intends to have discussions" with Outerwall's board and management about "strategic alternatives" that include selling part or all of the company, altering its capital structure, changing its capital allocation policy, and cutting costs.
Outerwall plunged last month in response to a Q3/2013 warning blamed on weaker-than-expected Redbox performance.
The company simultaneously added $100M to its buyback plan, stated it would "align its cost structure," and promised to speed up a review of its New Ventures initiatives (inc. the ecoATM electronics recycling kiosk business).
Outerwall doesn't yet pay a dividend.Shares +6% AH after finishing regular trading up 9.4%.Previous:
Jana Partners discloses Outerwall stake
http://seekingalpha.com/currents/post/1315302?source=email_rt_mc_readmore&app=1
$61.10!!! Unreal activity...what do you think?
Not yet. Monitoring. I'm putting in orders now actually. $60's! Wow! Fun day.
Man I love this stock!
Did you sell?
$OUTR closing price $57.10 +4.92 (+9.43%)
EXTENDED HOURS:
Last: $60.39 Change: +3.29 (+5.76%)
Wow! And this is why I love scooping this stock up when it falls out of favor. That revised guidance PR was a blessing in disguise.
At the time it sent this stock into the low 46's (a known area of support). And had the RSI in the teens!! That's a screaming buy (and as I mentioned previously, that's why I was now here, posting).
Now, with some pretty hefty gains since the 46's (now in the mid 52's), it could be sell-time soon. Lock in those profits!!
But, the RSI hasn't even reached 50 yet. And the 200 day MA is in the mid 55's (this would probably be some type of resistance).
Decisions, decisions! :)
Americanbulls - STAY IN CASH
http://americanbulls.com/SignalPage.aspx?lang=en&Ticker=OUTR
good evening. interesting board here :*-) consider buyin some shares here...
Good call! Hope you made some mula on the bounce! KUDOS for being right! Love them share buying, high short volume, low floaters!!! Squeeze'em with lots of pulp! LOL
Uhhh, writing all of what?
I'm not the one that wrote the ridiculous, dismissive post that ended with an "lol".
I'm the one that followed it up with some type of thought, and asked you to do the same. Which, apparently you can't (?). I don't know. You've been childish and hostile, I can't tell.
And please point to where I was wrong. Enlighten me. Please. As you would be wrong. And also show me where I advised you, or anyone, to sell this stock. I only spoke of my strategies with this stock. Or, really you don't get the nuance of what I was saying:
1st, on November 14th, I said that CSTR (at that time) wouldn't see 49 that week. Remember how you were pimping that? And were wrong? The key words are "that week".
And as I mentioned in that same post, I said I sold, and had things in cash. And my plan, at that time, was to buy in December, but to also keep an eye out. As that was subject to change, as I said: "that's my strategy right now". Keyword: NOW.
And of course, I followed that post up with:
Phew...feel better after writing all of that?!
How has it been for you since election day and all that crap you spewed here about stocks being sold eh? I tell you what...had I listened to you and sold all of my stocks because of some capital gains going up or fiscal cliff bull shit I would not have made the shit ton of money I have made this year...
So Dumbarse...do what you do...I'll stick to doing what I do...
Best of luck!
lol! lol! LAUGH OUT LOUD!!! Amiright!?!?
Now that we've gotten the schoolgirl pleasantries out of the way:
It's not that the company got creamed because they slashed guidance, it's that you were pimping it to everyone here and then they got creamed. You know, "$65 is coming ... then $70 ... then $100" were your actual words.
Instead of pimping, for the sake of pimping, why don't you add, ya know, some type of analysis.
There may be more than "RedBox", elaborate. Explain to us what they are, and how they are going to drive sales/growth?
They cut guidance because, ya know, "RedBox rentals disappointed" (that's a quote of a headline from the WSJ). But you go ahead and elaborate on the other stuff you are excited about ... GO!
In addition, I see quotes like this:
"the company slashed guidance and said it will scale back its growth plans and focus instead on profitability at the DVD kiosk-rental business. "
scale back its growth plans. What do you think that means? If I were to read the tea leaves, that tells me that RedBox instant might not be doing that well. And that's why I mentioned it. But I'm not going to pretend that I'm convinced of that. Just throwing out a talking point.
They also blamed it's coupons - and again, we are talking RedBox. As the coupons "attracted customers that didn't spend much" and "drove consumers toward more single-night rentals."
I mean, they slashed guidance by as much as 40%. I can't wait to hear about all that other stuff though (even though they themselves are going to focus on the RedBox kiosks going forward).
Name one company that slashes guidance and doesn't get creamed?! Find your price and get it...there's more to OUTR than RedBox! lol
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