Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Outerwall Inc (OUTR) Bear Rolls Out a Winning Strategy
An Outerwall Inc options trader raised the bearish stakes on a put position
by Elizabeth Harrow 7/11/2014 10:32 AM
Stocks quoted in this article:
OUTR
Options were unusually active on Outerwall Inc (NASDAQ:OUTR) in Thursday's session, with 9,283 puts and 1,819 calls changing hands -- more than doubling the stock's average daily option volume of fewer than 4,100 contracts. Taking a closer look, it seems that much of the put activity on OUTR was driven by the roll-out of a successful bearish play.
Specifically, one trader sold to close a block of 2,400 October 65 puts for $11.79 each, and simultaneously bought to open a block of 2,400 January 2015 50-strike puts at $4.24 each. In other words, an OUTR bear is rolling his puts out to a later month, and down to a lower strike, in order to bet on longer-term losses for the stock.
Yesterday was the second-biggest volume day for the equity's October 65 put. Previously, on June 11, a block of 5,000 contracts was bought to open at this strike -- and on the same day, a substantial number of July-dated puts were closed out. So, it seems likely that Thursday's put-roll player has been capitalizing on OUTR's technical weakness for a while now.
On the charts, Outerwall Inc (NASDAQ:OUTR) has shed 18.9% year-to-date to trade at $54.55. Since hitting an all-time high of $74.30 on March 5, the stock has tumbled nearly 27%. Amid this slide, put players have been active. Schaeffer's put/call open interest ratio (SOIR) for OUTR stands at 2.38, in the 95th annual percentile -- revealing short-term options traders have rarely been more put-heavy in the past year. Meanwhile, a hefty 46.1% of the stock's float is sold short.
http://www.schaeffersresearch.com/marketcenters/optionscenter/content/outerwall+inc+outr+bear+rolls+out+a+winning+strategy/default.aspx?ID=121848
WHEN THESE SHORTS GET SQUEEZED IT WILL BE E*P*I*C*
Seattle Seahawks and Outerwall Announce Partnership
4:39 PM ET 7/8/14 | PR Newswire
The Seattle Seahawks and Outerwall Inc. (Nasdaq: OUTR) announced today a partnership to expand philanthropic support for Seattle youth services. Outerwall, together with its consumer lines of business, Redbox(R) entertainment, Coinstar(R) money services, and ecoATM(R) electronics recycling kiosks, will team up with the Seattle Seahawks Spirit of 12 Partners by donating up to $100,000 to the program's community-based nonprofits.
http://photos.prnewswire.com/prnvar/20140708/125377
"The values of Outerwall align perfectly with our mission and commitment to the community," said Seahawks President Peter McLoughlin. "The Spirit of 12 Partners is a wonderful and highly successful program that has supported many children in the Pacific Northwest during the past 10 years."
As part of the partnership, Outerwall will participate in the Seahawks "Stats for Kids" program, which raises money for charity through on field performances. Outerwall will donate $512 for every Seahawks' first down gained at home during the preseason and regular season to the designated Spirit of 12 Partner for each home game. The donation amount of $512 represents the five nonprofit partners and the 12 signifies the Spirit of 12.
"Outerwall is committed to making meaningful contributions to support organizations that align with our mission to create a better everyday for our customers and communities," said J. Scott Di Valerio, chief executive officer. "As the cornerstone of our partnership with the Seahawks organization, we are directly supporting each of the Spirit of 12 nonprofit partners, which have a long track record of youth development and making every day better."
The Spirit of 12 Partners for 2014 are Boys & Girls Clubs Washington State Association, Camp Fire Snohomish, Girl Scouts of Western Washington, Treehouse, and YMCA of Greater Seattle.
About Outerwall Inc.
Outerwall instills corporate responsibility practices throughout the company through programs such as community grants, paid volunteer time for employees and matching employee charitable contributions. In 2013, the company reached its goal of donating 1 percent of the previous year's after-tax profits, with a grand total of more than $1.5 million in charitable giving.
The company changed its name from Coinstar, Inc. to Outerwall Inc. in July of 2013 to reflect the evolution of the company from a single coin-counting kiosk business into multiple automated retail businesses. The transition to Outerwall signifies the company's next chapter as it continues to push the walls of retail out to bring new and inventive solutions to consumers, retailers and partners.
Outerwall has more than 20 years of experience creating some of the most profitable spaces for their retail partners. 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.
About Spirit of 12 Partners
In the fall of 2004, the Seattle Seahawks Charitable Foundation unveiled the Spirit of 12 Partners program, a collaboration among Seattle youth service organizations, the Seahawks, CenturyLink and The Paul G. Allen Family Foundation. Under this program, community-based nonprofits sell the Seahawks game day program during the team's home games. Each partner keeps 100% of the proceeds, which is matched by The Paul G. Allen Family Foundation. In 2013, more than $365,000 was raised in the program and more than $2.70 million in total funds since 2004.
http://photos.prnewswire.com/prnvar/20140708/125255
http://photos.prnewswire.com/prnvar/20130701/AQ41388LOGO
Photo - http://photos.prnewswire.com/prnh/20140708/125377
Logo - http://photos.prnewswire.com/prnh/20140708/125255
Logo - http://photos.prnewswire.com/prnh/20130701/AQ41388LOGO
SOURCE Outerwall Inc.
Hoping those $55 puts everyone else had took profits also
Today's chart looks like a reversal is coming tomorrow.
We are in the oversold territory. Going to move back up anytime.
Investors Buy High Volume of Outerwall Put Options (OUTR)
July 7th, 2014 - 0 comments - Filed Under - by John Ramos
Outerwall (NASDAQ:OUTR) was the recipient of unusually large options trading on Monday. Traders purchased 7,822 put options on the stock, AnalystRatings.Net reports. This is an increase of approximately 388% compared to the average daily volume of 1,602 put options.
A number of analysts have recently weighed in on OUTR shares. Analysts at Zacks downgraded shares of Outerwall from an “outperform” rating to a “neutral” rating in a research note on Wednesday, July 2nd. They now have a $74.60 price target on the stock. Separately, analysts at Riley & Co. downgraded shares of Outerwall from a “buy” rating to a “neutral” rating in a research note on Wednesday, June 18th. They now have a $76.00 price target on the stock, down previously from $100.00. Finally, analysts at B. Riley downgraded shares of Outerwall from a “buy” rating to a “neutral” rating in a research note on Tuesday, June 17th. They now have a $76.00 price target on the stock, down previously from $100.00. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating and one has given a buy rating to the company. The stock presently has an average rating of “Hold” and a consensus price target of $71.57.
Shares of Outerwall (NASDAQ:OUTR) traded down 2.63% during mid-day trading on Monday, hitting $58.95. The stock had a trading volume of 717,813 shares. Outerwall has a one year low of $46.25 and a one year high of $74.30. The stock’s 50-day moving average is $65.9 and its 200-day moving average is $67.61. The company has a market cap of $1.160 billion and a price-to-earnings ratio of 9.45.
Outerwall (NASDAQ:OUTR) last posted its quarterly earnings results on Thursday, May 1st. The company reported $1.27 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.95 by $0.32. The company had revenue of $600.40 million for the quarter, compared to the consensus estimate of $586.65 million. The company’s quarterly revenue was up 4.7% on a year-over-year basis. Analysts expect that Outerwall will post $6.86 EPS for the current fiscal year.
Outerwall Inc, formerly Coinstar, Inc, is a provider of automated retail solutions, which offers convenient products and services.
$OUTR - From Coinstar to Outerwall, Redbox parent keeps innovating in automated retail
http://www.bizjournals.com/phoenix/morning_call/2014/07/from-coinstar-to-outerwall-redbox-parent-keeps.html
Cord-Cutting and Cloud: Why Does Redbox Defy the Trends?
MARK KNAPP
JULY 01, 2014
http://wallstcheatsheet.com/business/cord-cutting-and-cloud-why-does-redbox-defy-the-trends.html/?a=viewall
Outerwall Inc. to Report 2014 Second Quarter Financial Results on July 31, 2014
Jul 01, 2014 16:01:00 (ET)
BELLEVUE, Wash., July 1, 2014 /PRNewswire/ -- Outerwall Inc. (Nasdaq: OUTR) will report financial results for the 2014 second quarter on Thursday, July 31, 2014, after the market close. Outerwall's earnings press release and prepared remarks reviewing the company's financial results and guidance will be available on the Investor Relations section of Outerwall's website at www.outerwall.com.
(Logo - http://photos.prnewswire.com/prnh/20130701/AQ41388LOGO)
On July 31 at 2:30 p.m. PDT (5:30 p.m. EDT), Outerwall's Chief Executive Officer J. Scott Di Valerio and Chief Financial Officer Galen C. Smith will host a conference call to answer questions related to the company's performance and guidance. The call will be webcast live and archived on the Investor Relations section of Outerwall's website. A recording of the call will be available approximately two hours after the call ends through August 14, 2014, at 1-888-843-7419 or 1-630-652-3042, passcode 3755 4196#.
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, 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.
SOURCE Outerwall Inc.
/CONTACT: Investor Contact: Angie McCabe, 425-943-8754, angie.mccabe@outerwall.com
/Web site: http://www.outerwall.com
(END) Dow Jones Newswires
July 01, 2014 16:01 ET (20:01 GMT)
Senior Note offering closed...slow climb to earnings starts Monday IMO
Lots of insider selling...here comes low $60's
Outerwall (OUTR): Q1 EPS of $1.27 beats by $0.37.
Revenue of $600.4M (+4.7% Y/Y) beats by $13.75M.
Outerwall Inc. Announces 2014 First Quarter Results
4:01 PM ET 5/1/14 | PR Newswire
Outerwall Inc. (Nasdaq: OUTR) today reported financial results for the first quarter ended March 31, 2014.
(Logo: http://photos.prnewswire.com/prnh/20130701/AQ41388LOGO)
"We are off to a solid start this year as demonstrated by our first quarter 2014 results," said J. Scott Di Valerio,chief executive officer of Outerwall Inc. "As the leader in automated retail, we are focused on bringing innovative products and services to consumers. We believe we are well-positioned to execute in 2014 as we continue to leverage our core capabilities and achieve greater operational efficiencies to drive shareholder value."
View data
2014 2013 Change First Quarter First Quarter % GAAP Results - Consolidated revenue $ 600.4 million $ 573.3 million 4.7 % - Net income $ 23.2 million $ 22.6 million 2.5 % - Income from continuing operations $ 23.9 million $ 28.0 million (14.7) % - Diluted EPS from continuing operations $ 0.96 $ 0.97 (1.0) % - Net cash provided by operating activities $ 94.3 million $ 41.1 million 129.4 % Core Results* - Core adjusted EBITDA from continuing operations $ 117.6 million $ 110.2 million 6.7 % - Core diluted EPS from continuing operations $ 1.27 $ 1.12 13.4 % - Free cash flow $ 67.6 million $ 7.9 million 759.4 %
*Refer to Appendix A for a discussion of Use of Non-GAAP Financial Measures and Core and Non-Core Results.
Highlights from the first quarter of 2014 include:
-- Consolidated revenue of $600.4 million, an increase of 4.7% compared with the first quarter of 2013
-- Core diluted earnings per share from continuing operations were $1.27, an increase of 13.4% compared with $1.12 in the first quarter of 2013
-- The company repurchased approximately 6.0 million shares for $420.8 million, including approximately 5.3 million shares of common stock through a tender offer at a purchase price of $70.07 per share, excluding fees and expenses related to the tender offer
-- Free cash flow increased substantially year-over-year to $67.6 million reflecting working capital benefits, lower capital expenditures and higher profitability compared with the first quarter of 2013
-- Mark Horak, formerly president of the Americas at Warner Bros., joined Outerwall as president of Redbox on March 17, 2014; James Gaherity was promoted to president of Coinstar; and Maria Stipp was appointed president of ecoATM
"Our financial results in the first quarter of 2014 were stronger than expected," said Galen C. Smith, Outerwall's chief financial officer. "Our focus on growing the business and managing expenses resulted in higher revenues, improved Redbox and Coinstar segment operating margins and strong free cash flow in the quarter. In addition, we repurchased approximately 6.0 million shares during the quarter, reflecting our commitment to returning cash to shareholders and our confidence in the future performance of the company. As a result, we are raising our 2014 earnings guidance.
"Our second quarter 2014 guidance reflects significantly lower box office and fewer titles than the second quarter of 2013," continued Smith. "However, we continue to expect that rents and revenue per kiosk will be up year-over-year in the third and fourth quarters."
CONSOLIDATED RESULTS
Consolidated revenue for the first quarter of 2014 increased $27.1 million, or 4.7% to $600.4 million compared with $573.3 million for the first quarter of 2013. The year-over-year revenue growth was primarily due to the inclusion of the ecoATM business that the company acquired on July 23, 2013, and an increase in same store sales and newly installed and relocated kiosks in both the Redbox and Coinstar lines of business.
Operating income for the first quarter of 2014 was $58.7 million compared with operating income of $56.7 million in the first quarter of 2013. The operating margin was 9.8% in the first quarter of 2014 compared with 9.9% in the first quarter of 2013.
Income from continuing operations for the first quarter of 2014 was $23.9 million, or $0.96 earnings per diluted share from continuing operations, compared with $28.0 million, or $0.97 per diluted share, in the first quarter of 2013. The decrease in income from continuing operations in the first quarter of 2014 compared with the first quarter of 2013 was primarily due to increased interest expense related to the $350.0 million in Senior Notes issued on March 12, 2013 and an increased loss from equity method investments.
Core adjusted EBITDA from continuing operations for the first quarter of 2014 was $117.6 million, compared with $110.2 million in the first quarter of 2013. The year-over-year increase was primarily due to an increase in Redbox and Coinstar segment operating income.
Core diluted earnings per share from continuing operations for the first quarter of 2014 were $1.27, compared with $1.12 per diluted share in the first quarter of 2013. Non-core adjustments for the first quarter of 2014 include restructuring costs, compensation expense for rights to receive cash issued in connection with the company's acquisition of ecoATM, loss from equity method investments, and a tax benefit from a net operating loss adjustment.
Net cash provided by operating activities in the first quarter of 2014 was $94.3 million, compared with $41.1 million in the first quarter of 2013. The increase was primarily due to an increase in net operating cash inflows from changes in working capital, including a $24.0 million cash tax refund from 2013 that was received in January 2014.
Cash capital expenditures for the first quarter of 2014 were $26.7 million compared with $33.2 million in the first quarter of 2013.
Free cash flow for the first quarter of 2014 was $67.6 million, compared with $7.9 million in the first quarter of 2013, primarily driven by higher net operating cash flow and lower capital expenditures.
SEGMENT RESULTS
Redbox
Redbox segment revenue increased $7.7 million, or 1.5%, to $515.7 million in the first quarter of 2014 from $507.9 million in the first quarter of 2013. Redbox generated approximately 200.0 million rentals in the quarter, an increase of 1.2% compared with the first quarter of 2013.
Redbox same store sales increased 1.0% in the first quarter of 2014 compared with a decrease of 11.8% in the first quarter of 2013, primarily due to a stronger movie slate release in the first quarter of 2014 and despite the Winter Olympics in February. Net revenue per rental was $2.58, an increase of $0.02, or 0.8%, from the first quarter of 2013. The increase was primarily the result of a 38.1% reduction in promotional spend as the company continued its focus on increasing promotional efficiency.
Redbox segment operating income in the first quarter of 2014 was $102.9 million, an increase of 11.7% compared with the first quarter of 2013. Segment operating margin was 20.0%, an increase of 190 basis points from the first quarter of 2013, primarily due to a $7.7 million increase in revenue and a $3.8 million decrease in general and administrative expenses resulting from the restructuring that the company announced in December 2013 and the company's focus on general and administrative expense reductions.
Coinstar
Coinstar segment revenue was $68.8 million, an increase of 5.2%, compared with $65.4 million in the first quarter of 2013. Same store sales grew 3.1% in the first quarter of 2014 compared with 0.2% in the first quarter of 2013 primarily due to the price increase for all U.S. grocery retail locations for the coin voucher product that was implemented on October 1, 2013. The average transaction size in the first quarter of 2014 increased 3.9% to $40.76 from the first quarter of 2013.
Coinstar segment operating income was $22.7 million, an increase of 22.1% compared with the first quarter of 2013, and Coinstar segment operating margin was 33.1%, an increase of 460 basis points compared with the first quarter of 2013. Both increases were primarily the result of the U.S. price increase and cost reductions across its field organization.
New Ventures
During 2013, the company discontinued the Orango, Rubi(TM), Crisp Market(TM) and Star Studio(TM) ventures previously included in its New Ventures operating segment. The company reclassified the results of these four ventures to discontinued operations for all periods presented. The shutdown process was substantially complete as of March 31, 2014.
New Ventures segment revenue was $16.0 million in the first quarter of 2014, primarily due to the inclusion of the ecoATM business that the company acquired in July 2013. The segment operating loss in the first quarter of 2014 included an increase in direct operating expenses related to the ecoATM business, including the costs for servicing the kiosks and payment to the retailers for use of their space. As the company installs additional ecoATM kiosks and the existing kiosks continue to ramp, the company expects to leverage a greater share of the direct operating expenses. During the first quarter of 2014, ecoATM expanded its pilot in the mass channel and ended the quarter with more than 900 kiosks.
SHARE REPURCHASES AND CAPITAL STRUCTURE
On January 30, 2014, Outerwall's board of directors approved an additional repurchase program of up to $500.0 million of common stock plus the cash proceeds received from the exercise of stock options to its remaining authority of $201.3 million.
During the first quarter of 2014, the company repurchased approximately 6.0 million shares of its common stock for $420.8 million, including 736,000 shares at an average price of $67.93 per share under a 10b5-1 plan and approximately 5.3 million shares at a final purchase price of $70.07 per share through a modified Dutch auction tender offer. The aggregate cost of share repurchase through the Dutch auction was approximately $370.8 million, excluding related fees and expenses.
At March 31, 2014, there was approximately $282.5 million in authority remaining under the company's stock repurchase authorization.
The company's net leverage ratio* was 1.85x at March 31, 2014. The company continues to expect a target net leverage ratio of 1.75x to 2.25x for 2014.
GUIDANCE
A comprehensive 2014 guidance table is included in the "Earnings Release Schedules" section at the end of this release. Beginning in 2015, Outerwall will provide annual guidance only. The company believes annual guidance is a more relevant measurement of the business given its stage of growth, and full-year results capture the varying seasonal patterns of each of its businesses.
For the 2014 full year, the company expects:
-- Consolidated revenue between $2.378 billion and $2.488 billion;
-- Core adjusted EBITDA from continuing operations between $487 million and $527 million;
-- Core diluted EPS from continuing operations between $6.68 and $7.18 on a fully diluted basis;
-- Free cash flow between $200 million and $240 million; and
-- Average diluted shares outstanding between 21.5 million and 21.6 million**.
For the 2014 second quarter, the company expects:
-- Consolidated revenue between $546 million and $576 million;
-- Core adjusted EBITDA from continuing operations between $103 million and $118 million;
-- Core diluted EPS from continuing operations between $1.24 and $1.44 on a fully diluted basis; and
-- Average diluted shares outstanding between 20.4 million and 20.5 million**.
ADDITIONAL INFORMATION
Additional information regarding the company's 2014 first quarter operating and financial results and guidance are included in the company's prepared remarks and supplemental slides. These items, as well as this press release, are posted on the Investor Relations section of the corporate website at ir.outerwall.com. The Segment Supplement, which provides historical data in Excel format, is also posted on the website.
CONFERENCE CALL
The company will host a conference call today at 2:00 p.m. PDT (5:00 p.m. EDT) to discuss first quarter 2014 earnings results and second quarter 2014 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 May 15, 2014, at 1-888-843-7419 or 1-630-652-3042, passcode 3698 5543.
*Refer to Appendix A for a discussion of Use of Non-GAAP Financial Measures and Core and Non-Core Results. **Excludes the impact of any future share repurchases for the remainder of 2014
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, 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 this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "estimate," "expect," "intend," "will," "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 2014 second quarter and full year results. 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 its subsidiaries, 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 entertainment providers,
-- the ability to achieve the strategic and financial objectives for our entry into new businesses, including ecoATM, SAMPLEit and Redbox Instant(TM) by Verizon,
-- our ability to 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,
-- the effective management of our content library,
-- the timing of the release slate and the relative attractiveness of titles in a particular quarter or year,
-- 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 this press release. Outerwall Inc. undertakes no obligation to update the information provided herein.
OUTERWALL INC.
EARNINGS RELEASE SCHEDULES Quarter Ended March 31, 2014
-- Consolidated Statements of Comprehensive Income
-- Consolidated Balance Sheets
-- Consolidated Statements of Cash Flows
-- Business Segment and Enterprisewide Information
-- 2014 Second Quarter and Full Year Guidance
-- APPENDIX A
-- Use of Non-GAAP Financial Measures
-- Core and Non-Core Results
-- Core Adjusted EBITDA From Continuing Operations
-- Core Diluted EPS From Continuing Operations
-- Free Cash Flow
-- Net Debt and Net Leverage Ratio
View data
OUTERWALL INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands, except per share data) (unaudited) Three Months Ended March 31, 2014 2013 Revenue $ 600,369 $ 573,307 Expenses: Direct operating 424,645 404,895 Marketing 7,597 7,386 Research and development 3,474 2,307 General and administrative 52,991 53,461 Depreciation and other 49,095 46,580 Amortization of intangible assets 3,848 2,017 Total expenses 541,650 516,646 Operating income 58,719 56,661 Other income (expense), net: Loss from equity method investments, net (9,368) (7,025) Interest expense, net (9,645) (5,533) Other, net (1,744) 59 Total other expense, net (20,757) (12,499) Income from continuing operations before income taxes 37,962 44,162 Income tax expense (14,076) (16,155) Income from continuing operations 23,886 28,007 Loss from discontinued operations, net of tax (711) (5,403) Net income 23,175 22,604 Foreign currency translation adjustment 875 (1,914) Comprehensive income $ 24,050 $ 20,690 Basic earnings (loss) per share: Continuing operations $ 1.00 $ 1.02 Discontinued operations (0.03) (0.20) Basic earnings per share $ 0.97 $ 0.82 Diluted earnings (loss) per share: Continuing operations $ 0.96 $ 0.97 Discontinued operations (0.02) (0.19) Diluted earnings per share $ 0.94 $ 0.78 Weighted average shares used in basic per share calculations 23,944 27,493 Weighted average shares used in diluted per share calculations 24,775 28,937
View data
OUTERWALL INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share data) (unaudited) March 31, December 31, 2014 2013 Assets Current Assets: Cash and cash equivalents $ 251,546 $ 371,437 Accounts receivable, net of allowances of $1,710 and $1,826 56,223 50,296 Content library 179,887 199,868 Prepaid expenses and other current assets 46,665 84,709 Total current assets 534,321 706,310 Property and equipment, net 501,127 520,865 Deferred income taxes 7,952 6,443 Goodwill and other intangible assets 634,842 638,690 Other long-term assets 24,330 24,392 Total assets $ 1,702,572 $ 1,896,700 Liabilities and Stockholders' Equity Current Liabilities: Accounts payable $ 209,219 $ 236,018 Accrued payable to retailers 118,558 134,140 Other accrued liabilities 146,775 134,127 Current callable convertible debt 50,245 49,702 Current portion of long-term debt and other long-term liabilities 44,531 42,190 Current portion of capital lease obligations 11,989 11,997 Deferred income taxes 25,612 23,143 Total current liabilities 606,929 631,317 Long-term debt and other long-term liabilities 920,763 677,356 Capital lease obligations 8,712 9,364 Deferred income taxes 44,039 58,528 Total liabilities 1,580,443 1,376,565 Commitments and contingencies Debt conversion feature 899 1,446 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; 36,623,708 and 36,356,357 shares issued; 20,390,589 and 26,150,900 shares outstanding; 485,537 482,481 Treasury stock (901,361) (476,796) Retained earnings 536,946 513,771 Accumulated other comprehensive income (loss) 108 (767) Total stockholders' equity 121,230 518,689 Total liabilities and stockholders' equity $ 1,702,572 $ 1,896,700
View data
OUTERWALL INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Three Months Ended March 31, 2014 2013 Operating Activities: Net income $ 23,175 $ 22,604 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation and other 49,104 46,892 Amortization of intangible assets and deferred financing fees 4,607 2,577 Share-based payments expense 3,765 4,837 Excess tax benefits on share-based payments (1,710) (2,069) Deferred income taxes (9,564) 10,416 Impairment expense -- 2,546 Loss from equity method investments, net 9,368 7,025 Non-cash interest on convertible debt 547 1,663 Other (124) 609 Cash flows from changes in operating assets and liabilities 15,137 (55,998) Net cash flows from operating activities 94,305 41,102 Investing Activities: Purchases of property and equipment (26,658) (33,231) Proceeds from sale of property and equipment 831 132 Purchases of short term investments -- (53,000) Receipt of note receivable principal -- 95 Cash paid for equity investments (10,500) (14,000) Net cash flows used in investing activities (36,327) (100,004) Financing Activities: Proceeds from issuance of senior unsecured notes -- 343,769 Proceeds from new borrowing on Credit Facility 275,000 -- Principal payments on Credit Facility (29,375) (3,281) Financing costs associated with Credit Facility and senior unsecured notes -- (302) Repurchase of convertible debt (4) (62,455) Repurchases of common stock (421,067) (46,482) Principal payments on capital lease obligations and other debt (3,697) (3,251) Excess tax benefits related to share-based payments 1,710 2,069 Withholding tax paid on vesting of restricted stock net of proceeds from exercise of stock options (1,588) 1,093 Net cash flows from (used in) financing activities (179,021) 231,160 Effect of exchange rate changes on cash 1,152 (1,700) Increase (decrease) in cash and cash equivalents (119,891) 170,558 Cash and cash equivalents: Beginning of period 371,437 282,894 End of period $ 251,546 $ 453,452
OUTERWALL INC. BUSINESS SEGMENT AND ENTERPRISEWIDE INFORMATION (unaudited)
The analysis and reconciliation of the company's segment information to the consolidated financial statements that follows covers the company's results of operations, which consists of the Redbox, Coinstar and New Ventures segments. Unallocated general and administrative expenses relate to share-based compensation and expense related to the rights to receive cash issued in connection with our acquisition of ecoATM.
View data
Dollars in thousands Three Months Ended March 31, 2014 Redbox Coinstar New Ventures Corporate Unallocated Total Revenue $ 515,656 $ 68,753 $ 15,960 $ -- $ 600,369 Expenses: Direct operating 368,604 37,723 16,339 1,979 424,645 Marketing 5,064 1,006 829 698 7,597 Research and development 8 269 2,416 781 3,474 General and administrative 39,061 7,020 3,800 3,110 52,991 Segment operating income (loss) 102,919 22,735 (7,424) (6,568) 111,662 Less: depreciation, amortization and other (40,563) (8,563) (3,817) -- (52,943) Operating income (loss) 62,356 14,172 (11,241) (6,568) 58,719 Loss from equity method investments, net -- -- -- (9,368) (9,368) Interest expense, net -- -- -- (9,645) (9,645) Other, net -- -- -- (1,744) (1,744) Income (loss) from continuing operations before income taxes $ 62,356 $ 14,172 $ (11,241) $ (27,325) $ 37,962
View data
Dollars in thousands Three Months Ended March 31, 2013 Redbox Coinstar New Ventures Corporate Unallocated Total Revenue $ 507,920 $ 65,383 $ 4 $ -- $ 573,307 Expenses: Direct operating 366,681 37,656 217 341 404,895 Marketing 6,199 1,053 67 67 7,386 Research and development 4 1,768 455 80 2,307 General and administrative 42,862 6,289 1,606 2,704 53,461 Segment operating income (loss) 92,174 18,617 (2,341) (3,192) 105,258 Less: depreciation, amortization and other (40,377) (8,184) (36) -- (48,597) Operating income (loss) 51,797 10,433 (2,377) (3,192) 56,661 Loss from equity method investments, net -- -- -- (7,025) (7,025) Interest expense, net -- -- -- (5,533) (5,533) Other, net -- -- -- 59 59 Income (loss) from continuing operations before income taxes $ 51,797 $ 10,433 $ (2,377) $ (15,691) $ 44,162
View data
OUTERWALL INC. 2014 SECOND QUARTER AND FULL YEAR GUIDANCE (as of May 1, 2014) (in millions, except per share amounts) 2014 SECOND QUARTER GUIDANCE RANGE Consolidated revenue $546 to $576 Core adjusted EBITDA from continuing operations $103 to $118 Core diluted EPS from continuing operations(1) $1.24 to $1.44 Average diluted shares outstanding(1) 20.4 to 20.5 2014 FULL YEAR GUIDANCE Consolidated results: Revenue $2,378 to $2,488 Core adjusted EBITDA from continuing operations $487 to $527 Core diluted EPS from continuing operations(1) $6.68 to $7.18 Free cash flow $200 to $240 Average diluted shares outstanding(1) 21.5 to 21.6 Effective tax rate 38.5% to 39.5% Segment revenue: Redbox $1,949 to $2,044 Coinstar $307 to $312 New Ventures $122 to $132 Capital expenditures: Redbox CAPEX $22 to $27 Kiosk, software and other $7 to $9 Maintenance $15 to $18 Coinstar CAPEX $15 to $19 New $11 to $14 Maintenance $4 to $5 New Ventures $35 to $44 Corporate $28 to $35 Total CAPEX $100 to $125 Net kiosk installations: Redbox (50) to (450) U.S. (500) to (700) Canada 250 to 450 Coinstar 250 to 450 New Ventures 1,000 to 1,300
(1) Excludes the impact of any future share repurchases for the remainder of 2014
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 from continuing operations;
-- Core diluted earnings per share ("EPS") from continuing operations;
-- Free cash flow; and
-- Net debt and net leverage ratio.
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) restructuring costs associated with actions to reduce costs in our continuing operations primarily through workforce reductions across the Company, ii) 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, 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 iv) a tax benefit related to a net operating loss adjustment ("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 from continuing operations
Our non-GAAP financial measure core adjusted EBITDA from continuing operations is defined as earnings from continuing operations before depreciation, amortization and other; interest expense, net; income taxes; share-based payments expense; and Non-Core Adjustments.
A reconciliation of core adjusted EBITDA from continuing operations to net income from continuing operations, the most comparable GAAP financial measure, is presented in the following table:
View data
Three Months Ended March 31, Dollars in thousands 2014 2013 Net income from continuing operations $ 23,886 $ 28,007 Depreciation, amortization and other 52,943 48,597 Interest expense, net 9,645 5,533 Income taxes 14,076 16,155 Share-based payments expense(1) 3,765 4,837 Adjusted EBITDA from continuing operations 104,315 103,129 Non-Core Adjustments: Restructuring costs 469 -- Rights to receive cash issued in connection with the acquisition of ecoATM 3,421 -- Loss from equity method investments 9,368 7,025 Core adjusted EBITDA from continuing operations $ 117,573 $ 110,154
(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 from continuing operations
Our non-GAAP financial measure core diluted EPS from continuing operations is defined as diluted earnings per share from continuing operations excluding Non-Core Adjustments, net of applicable taxes.
A reconciliation of core diluted EPS from continuing operations to diluted EPS from continuing operations, the most comparable GAAP financial measure, is presented in the following table:
View data
Three Months Ended March 31, 2014 2013 Diluted EPS from continuing operations $ 0.96 $ 0.97 Non-Core Adjustments, net of tax:(1) Restructuring costs 0.01 -- Rights to receive cash issued in connection with the acquisition of ecoATM 0.11 -- Loss from equity method investments 0.23 0.15 Tax benefit from net operating loss adjustment (0.04) -- Core diluted EPS from continuing operations $ 1.27 $ 1.12
(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:
View data
Three Months Ended March 31, Dollars in thousands 2014 2013 Net cash provided by operating activities $ 94,305 $ 41,102 Purchase of property and equipment (26,658) (33,231) Free cash flow $ 67,647 $ 7,871
Net Debt and Net Leverage Ratio
Our non-GAAP financial measure net debt is defined as the total face value of outstanding debt, including capital leases, less cash and cash equivalents held in financial institutions domestically. Our non-GAAP financial measure net leverage ratio is defined as net debt divided by core adjusted EBITDA from continuing operations for the last twelve months (LTM). We believe net debt and net leverage ratio are important non-GAAP measures because they:
-- are used to assess the degree of leverage by management;
-- provide additional information to users of the financial statements regarding our ability to service, incur or pay down indebtedness and repurchase our securities as well as additional information about our capital structure; and
-- are reported quarterly to support covenant compliance under our credit agreement.
A reconciliation of net debt to total outstanding debt including capital leases, the most comparable GAAP financial measure, is presented in the following table:
View data
March 31, December 31, Dollars in thousands 2014 2013 Senior unsecured notes $ 350,000 $ 350,000 Term loans 335,000 344,375 Revolving line of credit 255,000 -- Convertible debt(1) 51,144 51,148 Capital leases 20,701 21,361 Total principal value of outstanding debt including capital leases 1,011,845 766,884 Less domestic cash and cash equivalents held in financial institutions (90,863) (199,027) Net debt 920,982 567,857 LTM Core adjusted EBITDA from continuing operations(2) $ 499,071 $ 491,652 Net leverage ratio 1.85 1.15
View data
(1) The Convertible debt balance on our Consolidated Balance Sheets as of March 31, 2014 and December 31, 2013 included $0.9 million and $1.4 million, respectively, in associated debt discount. (2) LTM Core Adjusted EBITDA from continuing operations for the twelve months ended March 31, 2014 and December 31, 2013 was determined as follows:
View data
Dollars in thousands Core adjusted EBITDA from continuing operations for the three months ended March 31, 2014 $ 117,573 Add: Core adjusted EBITDA from continuing operations for the twelve months ended December 31, 2013(A) 491,652 Less: Core adjusted EBITDA from continuing operations for the three months ended March 31, 2013 (110,154) LTM Core adjusted EBITDA from continuing operations for the twelve months ended March 31, 2014 $ 499,071
View data
(A) Core adjusted EBITDA from continuing operations for the twelve months ended December 31, 2013 is obtained from our Annual Report on Form 10-K for the period ended December 31, 2013, where it is reconciled to net income from continuing operations, the most comparable GAAP financial measure, and represents the LTM core adjusted EBITDA from continuing operations we use in our calculation of net leverage ratio as of December 31, 2013.
SOURCE Outerwall Inc
Outerwall (OUTR) Set to Announce Quarterly Earnings on Thursday
Outerwall (NASDAQ:OUTR) will announce its Q114 earnings results on Thursday, May 1st. Analysts expect the company to announce earnings of $0.95 per share and revenue of $586.65 million for the quarter. Outerwall has set its Q1 guidance at $0.77 – $0.97 EPS and its FY14 guidance at $5.16 – $5.76 EPS
http://www.mideasttime.com/outerwall-outr-set-to-announce-quarterly-earnings-on-thursday/128372/
The IR department hasn't responded to three calls so far... maybe it's just the time of day or the day of the week... I'll try again later
I'm going to call outerwall tomorrow and see what I can squeeze out of their IR. It seems like people are playing games with the share price of OUTR... I for one believe OUTR is going to be a big name in the future. If you or anyone here has any questions for the IR person, let me know!
Outerwall Inc. Reports Preliminary Results of Modified Dutch Auction Tender Offer
BELLEVUE, Wash., Mar. 10, 2014 /PRNewswire/ -- Outerwall Inc. (Nasdaq: OUTR) today announced the preliminary results of its modified "Dutch Auction" self-tender offer for the purchase of up to $350 million in value of shares of its common stock, which expired at 12:00 Midnight, New York City time, at the end of the day of March 7, 2014.
(Logo: http://photos.prnewswire.com/prnh/20130701/AQ41388LOGO)
Based on the preliminary count by Computershare Trust Company, N.A., the depositary for the tender offer, a total of 5,301,040 shares of Outerwall's common stock were properly tendered and not properly withdrawn at or below the final purchase price of $70.07 per share, including 3,057,426 shares that were tendered through notice of guaranteed delivery.
In accordance with the terms and conditions of the tender offer, and based on the preliminary count by the depositary, Outerwall expects to accept for purchase 5,301,040 shares of its common stock at a purchase price of $70.07 per share, for an aggregate cost of approximately $371.4 million, excluding fees and expenses relating to the tender offer. The 5,301,040 shares expected to be purchased in the tender offer represent approximately 20.6% of Outerwall's outstanding shares of common stock as of March 6, 2014. Based on these preliminary numbers, Outerwall anticipates that following settlement of the tender offer, it will have approximately 20,380,731 shares outstanding. The total amount of shares expected to be purchased in the tender offer includes Outerwall's right to upsize the tender offer by up to 2% of its outstanding shares.
The number of shares expected to be purchased in the tender offer and the purchase price are preliminary and subject to change. The preliminary information contained in this press release is subject to confirmation by the depositary and is based on the assumption that all shares tendered through notice of guaranteed delivery will be delivered within the three business day guaranteed delivery period. The final number of shares to be purchased and the final purchase price will be announced following the expiration of the guaranteed delivery period and the completion by the depositary of the confirmation process. Payment for the shares accepted for purchase pursuant to the tender offer, and the return of all other shares tendered and not purchased, will occur promptly thereafter, and payment will be made in cash, less any applicable withholding taxes and without interest.
Stockholders who have questions about the tender offer may call Morgan Stanley & Co. LLC, the dealer manager for the tender offer, at (855) 483-0952, or Innisfree M&A Incorporated, the information agent for the tender offer, at (888) 750-5834 or collect at (212) 750-5833 (for banks and brokers).
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, 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.
Forward-Looking Statements
Certain statements in this release are "forward-looking statements". The words "will," "expect," "intend," and variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that a statement is not forwardlooking. The forward-looking statements in this release include statements regarding the number of shares to be repurchased in the tender offer, the pricing of the tender offer and other terms, conditions and actions relating to the tender offer. Forward-looking statements are not guarantees of future actions or events, which may vary materially from those expressed or implied in such statements. Differences may result from actions taken by Outerwall or its management, as well as from risks and uncertainties beyond Outerwall's control, including relating to third parties such as the depositary and stockholders (including receipt of guaranteed deliveries). Such actions, risks, and uncertainties include uncertainties relating to the tender offer (including those described in the tender offer materials), changes to Outerwall's financing arrangements, Outerwall's financial results and condition, and changes in financial markets and regulatory and economic conditions. The foregoing list of actions, risks and uncertainties is illustrative but by no means exhaustive. For more information on factors that may affect Outerwall, please review "Risk Factors" and other disclosures described in Outerwall's most recent Annual Report on Form 10-K, as well as other public filings with the SEC. These forwardlooking statements reflect Outerwall's expectations as of the date of this release. Outerwall undertakes no obligation to update the information provided herein.
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
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
Investors Purchase Large Volume of Outerwall Put Options (OUTR)
http://tickerreport.com/banking-finance/158691/investors-purchase-large-volume-of-outerwall-put-options-outr/
What do you guys think about redbox new feature of streaming movies? I think it will be big once they create apps for mobile devices and smart TV'S. This will be bigger than Netflix. I like the fact that you can still pick up movies from the kiosk instead of waiting for the movie to be mailed to you like the other competitor. Going OUTR long term.
Also the Hunger Games IMO
Also the Hunger Games IMO
Premarket gap...if it stands after 1030am...short in trouble.
shorts will dieeeeeeeeee weeeee
Outerwall Inc. Announces 2013 Fourth Quarter and Full Year Results
4:13 PM ET 2/6/14 | PR Newswire
Outerwall Inc. (Nasdaq: OUTR) today reported financial results for the fourth quarter and full year ended December 31, 2013.
(Logo: http://photos.prnewswire.com/prnh/20130701/AQ41388LOGO)
"Outerwall reported a strong finish to 2013 as we delivered solid results at the top and bottom line and executed on strategic decisions to drive increased profitability and value creation for our consumers, partners, employees, and shareholders," said J. Scott Di Valerio, chief executive officer of Outerwall. "Our results reflect the value consumers recognize in our core Redbox and Coinstar brands, with Redbox driving over 775 million rentals in 2013 and Coinstar pushing through $300 million in annual revenue for the first time. We are managing these strong, profitable, cash-generating businesses for additional profitability and cash flow by optimizing our consumer relationships and kiosk networks. We will continue to invest in ecoATM and other targeted, compelling growth opportunities."
Di Valerio continued, "We believe strong, effective leadership is a cornerstone in extracting the most value from our businesses, and today we separately announced a new president for Redbox and executive leadership transitions at Coinstar and ecoATM. We believe that each candidate will build on the respective business' strong foundation in order to continue to drive success and new avenues for growth and enhanced profitability."
"We also announced our intent to purchase $350 million of Outerwall's common stock via a modified 'Dutch auction' tender offer, demonstrating our confidence in Outerwall's business and long-term growth potential," said Di Valerio.
Outerwall's 2013 fourth quarter and full year financial highlights included:
View data
2013 2013 Fourth Quarter Full Year - Consolidated revenue $ 593.7 million $ 2,306.6 million - Net income $ 22.7 million $ 174.8 million - Income from continuing operations $ 42.9 million $ 208.1 million - Core adjusted EBITDA from continuing operations* $ 137.3 million $ 491.7 million - Diluted EPS from continuing operations $ 1.55 $ 7.33 - Core diluted EPS from continuing operations* $ 1.68 $ 5.92 - Net cash provided by operating activities $ 191.7 million $ 324.1 million - Free cash flow* $ 142.6 million $ 166.4 million
*Refer to Appendix A for a discussion of non-GAAP financial measures, including the exclusion of certain non-core items.
"We continue to execute on several initiatives, including working to reach our recently adjusted targeted leverage ratio in the first quarter, that build on our strong financial foundation, optimize our capital structure and create value for our shareholders," said Galen C. Smith, chief financial officer of Outerwall. "In 2013, we were pleased to return more than 100% of our free cash flow to shareholders. Looking ahead, we remain committed to our capital return priorities, as illustrated by a $350 million tender offer we expect to launch tomorrow."
Smith concluded, "We are focused on operating Outerwall efficiently and will continue to manage costs and capital expenditures across the organization, keeping them aligned with our revenue growth opportunities. We are also on track to achieve $22 million of savings in 2014. We intend to further leverage the shared services organization we built over the past few years to deliver improved results."
Consolidated Results
Revenue for the fourth quarter of 2013 increased 5.4% to $593.7 million compared with $563.1 million for the fourth quarter of 2012. Redbox segment revenue increased 1.7% to $496.4 million compared with $488.3 million for the fourth quarter of 2012. Coinstar segment revenue increased 8.4% to $80.7 million from $74.5 million in the prior year quarter. New Ventures segment reported revenue of $16.6 million in the fourth quarter compared with $293,000 for the fourth quarter of 2012, with the increase primarily due to the acquisition of the ecoATM business completed in July 2013.
Operating income for the fourth quarter of 2013 was $73.0 million, which resulted in an operating margin of 12.3%, compared with operating income of $52.0 million and an operating margin of 9.2% in the fourth quarter of 2012. The change in operating margin was driven by several factors, including the reversal of a bonus accrual; a benefit from the change in amortization for content costs in the Redbox business; and greater efficiencies in shared services.
Income from continuing operations for the fourth quarter of 2013 was $42.9 million, or diluted earnings per share from continuing operations of $1.55, compared with $25.5 million, or $0.83 per diluted share, in the fourth quarter of 2012. Core diluted earnings per share from continuing operations for the fourth quarter of 2013 was $1.68, which excluded non-core adjustments, net of tax, of $0.13 per share, compared with $1.01 per diluted share, which excluded non-core adjustments, net of tax, of $0.18 per share, in the fourth quarter of 2012. Non-core adjustments for the fourth quarter of 2013 included restructuring costs associated with actions to reduce costs in our continuing operations primarily through workforce reductions across the company, compensation expense for rights to receive cash issued in conjunction with our acquisition of ecoATM, the loss from equity method investments, benefits from release of indemnification reserves upon settlement of the Sigue Note, and a tax benefit of $16.7 million related to the recognition of a worthless stock deduction in a corporate subsidiary.
For 2013, full year revenue was $2.3 billion, an increase of 4.9% compared with 2012. Operating income for 2013 was $261.0 million, which resulted in an operating margin of 11.3%, compared with operating income of $279.4 million and an operating margin of 12.7% in 2012. The decrease in operating margin reflects the increased operating loss in the New Ventures segment, which was primarily the result of investments to support ecoATM. Income from continuing operations for 2013 was $208.1 million, or $7.33 per diluted share, compared with income from continuing operations of $160.5 million, or $4.99 per diluted share, in 2012, an increase in diluted earnings per share of 46.9%, primarily attributable to the impacts of a decrease in income tax expense, income from equity method investments arising from the gain on our acquisition of ecoATM and higher interest expense. Core diluted earnings per share from continuing operations for the full year 2013 was $5.92, which excluded non-core adjustments of $(1.41) per share, compared with $5.15 per diluted share, which excluded non-core adjustments of $0.16 per share, in 2012.
Net cash provided by operating activities in the fourth quarter of 2013 was $191.7 million, compared with $152.2 million in the fourth quarter of 2012. Cash capital expenditures for the fourth quarter of 2013 were $49.1 million, compared with $74.9 million in the fourth quarter of 2012. Free cash flow for the fourth quarter of 2013 was $142.6 million, compared with $77.3 million in the fourth quarter of 2012, primarily driven by changes in working capital, higher non-cash expenses included in net income in the current period and lower capital expenditures, bringing total free cash flow to $166.4 million for the full year 2013.
Capital Structure and Share Repurchases
During the fourth quarter, the company repurchased $100.0 million of its common stock representing approximately 1.51 million shares at an average price of $66.06 per share. For full year 2013, the company repurchased $195.0 million of its common stock representing approximately 3.31 million shares at an average price of $58.98 per share, which represents a return to shareholders of more than 100% of free cash flow for the year. In January 2014, the company executed on an additional $50 million share repurchase through a 10b5-1 stock trading plan, which was completed by the end of the month.
On January 30, 2014, Outerwall's Board of Directors increased the share repurchase authorization by $500 million, bringing the total available for repurchases to approximately $650 million.
In connection with this increased authorization, the Board of Directors also authorized a tender offer for $350 million of Outerwall's common stock through a modified Dutch auction that is expected to launch on February 7, 2014. We expect to launch with a price range based on a 5-20% premium over today's last reported sale price.
During the fourth quarter, the company amended its existing credit facility to increase its debt capacity by $350.0 million through a combination of a $200 million term loan and an additional $150 million of capacity under the revolving line of credit. As of December 31, 2013, the company had no outstanding borrowing on the revolving line of credit. The company previously announced a target net leverage ratio of 1.75x to 2.25x net debt to core adjusted EBITDA from continuing operations, and expects to move into this range in the first quarter of 2014 pending the successful execution of the tender offer.
Segment Results
Redbox
Redbox segment revenue increased 1.7% to $496.4 million from the fourth quarter of 2012. Redbox generated 192.0 million rentals in the quarter, up 2.2% year over year. Net revenue per rental was $2.58, up 0.4% from the fourth quarter of 2012.
Redbox segment operating income was $111.3 million, an increase of 39.2% over the fourth quarter of 2012, and segment operating margin was 22.4%, up 6.0 percentage points from the fourth quarter of 2012. Gross margin for the fourth quarter of 2013 was 58.5%, up 4.6 percentage points from 53.9% in the fourth quarter of 2012, as the company adjusted its content purchases to better align with revised rental and revenue expectations. Gross margin also benefitted from $7.0 million lower amortization than expected as a result of the accounting change implemented in the second quarter of 2013. The benefit is expected to reverse in the first quarter of 2014.
Coinstar
Coinstar segment revenue was $80.7 million, an increase of 8.4%, and same store sales were up 5.9% in the fourth quarter of 2013 compared with a decline of 1.2% in the fourth quarter of 2012, primarily due to the price increase for all U.S. grocery retail locations for the coin voucher product implemented on October 1, 2013. The average transaction size was also up 5.8% to $43.82.
Coinstar segment operating income was $30.8 million, an increase of 17.2% over the fourth quarter of 2012, and segment operating margin was 38.2%, up 2.9 percentage points from the fourth quarter of 2012. Segment operating income increased due to the U.S. price increase and cost reductions driven by efficiencies implemented across its field organization.
New Ventures
New Ventures reported segment revenue of $16.6 million in the fourth quarter, compared with $0.3 million in the fourth quarter of 2012, with the increase driven by the acquisition of ecoATM. During the fourth quarter, ecoATM expanded its pilot in the mass channel and ended the year with approximately 880 kiosks. Outerwall continued to invest to support the growth of ecoATM as it begins to scale the business in 2014. SAMPLEit(TM) is included in the New Ventures segment and the company expects to continue testing the concept with a limited investment in 2014.
In December 2013, Outerwall exited three New Ventures concepts, Rubi(TM), Crisp Market(TM) and Star Studio(TM), which were classified as discontinued operations, and recorded associated impairment and restructuring charges of $29.5 million for the fourth quarter. The company expects to complete the shutdown process by the end of the first quarter of 2014.
Guidance
For the 2014 full year, Outerwall management expects:
-- Consolidated revenue between $2.358 billion and $2.498 billion;
-- Core adjusted EBITDA from continuing operations between $472 million and $517 million;
-- Core diluted EPS from continuing operations between $5.16 and $5.76 on a fully diluted basis; and
-- Free cash flow between $200 million and $240 million.
For the 2014 first quarter, Outerwall management expects:
-- Consolidated revenue between $570 million and $600 million;
-- Core adjusted EBITDA from continuing operations between $93 million and $108 million; and
-- Core diluted EPS from continuing operations between $0.77 and $0.97 on a fully diluted basis.
Additional Information
Outerwall has provided additional comments on guidance in prepared remarks that also review the company's 2013 fourth quarter and full year 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 fourth 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. PST (5:00 p.m. EST) 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 February 20, 2014, at 1-888-843-7419 or 1-630-652-3042, passcode 3641 5281.
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 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 this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "estimate," "expect," "intend," "will," "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 2014 first quarter and full year results, as well as stock repurchases, including the announced tender offer, bank loans, potential cost savings and tax benefits, leadership transitions and timing and integration of such leadership changes. 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 its subsidiaries, 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 entertainment providers,
-- individual personnel decisions,
-- the ability to achieve the strategic and financial objectives for our entry into new businesses, including ecoATM, SAMPLEit and Redbox Instant(TM) by Verizon,
-- our ability to complete the tender offer, the occurrence of any conditions to completing the tender offer, and our decision to waive the occurrence of any condition to completing the tender offer,
-- our ability to repurchase stock and the availability of an open trading window,
-- the achievement of anticipated cost savings and tax benefits,
-- results of our restructuring and cost initiatives, including discontinuation of affected new ventures and workforce reduction,
-- 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,
-- 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 filed with the Securities and Exchange Commission and other documents filed therewith. These forward-looking statements reflect Outerwall Inc.'s expectations as of the date of this press release. Outerwall Inc. undertakes no obligation to update the information provided herein.
Important Information Regarding the Expected Tender Offer
This press release is for informational purposes only and is neither an offer to buy nor the solicitation of an offer to sell any shares of Outerwall's common stock. The expected tender offer described in this press release has not yet commenced, and there can be no assurances that Outerwall will commence the tender offer on the terms and conditions described in this press release or at all. If Outerwall commences the tender offer, the tender offer will be made solely by an Offer to Purchase, the Letter of Transmittal and related materials, as they may be amended or supplemented. Stockholders should read Outerwall's commencement tender offer statement on Schedule TO expected to be filed with the SEC in connection with the tender offer, which will include as exhibits the Offer to Purchase, the Letter of Transmittal and related materials, as well as any amendments or supplements to the Schedule TO when they become available, because they will contain important information. If Outerwall commences the tender offer, each of these documents will be filed with the SEC, and, when available, stockholders may obtain them for free from the SEC at its website (www.sec.gov) or from the Company's information agent in connection with the tender offer.
(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 from continuing operations;
-- Core diluted earnings per share ("EPS") from continuing operations; 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) restructuring costs associated with actions to reduce costs in our continuing operations primarily through workforce reductions across the Company, ii) acquisition costs primarily related to the NCR Asset Acquisition and acquisition of ecoATM, iii) 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, iv) income or loss from equity method investments, which represents our share of income or loss from entities we do not consolidate or control and the impact of the gain on re-measurement of our previously held equity interest in ecoATM upon acquisition, v) a gain on the grant of a license to use certain Redbox trademarks to Redbox Instant(TM) by Verizon, vi) benefits from release of indemnification reserves upon settlement of the Sigue Note and vii) a tax benefit related to the recognition of a worthless stock deduction in a corporate subsidiary ("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 from continuing operations
Our non-GAAP financial measure core adjusted EBITDA from continuing operations is defined as earnings from continuing operations before depreciation, amortization and other; interest expense, net; income taxes; share-based payments expense; and Non-Core Adjustments.
A reconciliation of core adjusted EBITDA from continuing operations to net income from continuing operations, the most comparable GAAP financial measure, is presented in the following table:
View data
Three Months Ended Twelve Months Ended December 31, December 31, Dollars in thousands 2013 2012 2013 2012 Net income from continuing operations $ 42,876 $ 25,535 $ 208,091 $ 160,452 Depreciation, amortization and other 52,853 47,496 203,094 184,405 Interest expense, net 6,848 4,615 32,801 15,648 Income taxes (289) 12,404 34,477 97,941 Share-based payments expense(1) 5,377 6,218 16,831 19,362 Adjusted EBITDA from continuing operations 107,665 96,268 495,294 477,808 Non-Core Adjustments: Restructuring costs 4,495 -- 4,495 -- Acquisition costs -- -- 5,669 3,235 Rights to receive cash issued in connection with the acquisition of ecoATM 6,364 -- 8,664 -- Loss from equity method investments 21,352 9,278 48,448 24,684 Sigue indemnification reserve releases (2,542) -- (2,542) -- Gain on previously held equity interest on ecoATM -- -- (68,376) -- Gain on formation of Redbox Instant by Verizon -- -- -- (19,500) Core adjusted EBITDA from continuing operations $ 137,334 $ 105,546 $ 491,652 $ 486,227 (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 from continuing operations
Our non-GAAP financial measure core diluted EPS from continuing operations is defined as diluted earnings per share from continuing operations excluding Non-Core Adjustments, net of applicable taxes.
A reconciliation of core diluted EPS from continuing operation to diluted EPS from continuing operations, the most comparable GAAP financial measure, is presented in the following table:
View data
Three Months Ended Twelve Months Ended December 31, December 31, 2013 2012 2013 2012 Diluted EPS from continuing operations $ 1.55 $ 0.83 $ 7.33 $ 4.99 Non-Core Adjustments, net of tax:(1) Restructuring costs 0.10 -- 0.10 -- Acquisition costs 0.02 -- 0.17 0.06 Rights to receive cash issued in connection with the acquisition of ecoATM 0.20 -- 0.25 -- Loss from equity method investments 0.47 0.18 1.04 0.47 Sigue indemnification reserve releases (0.06) -- (0.05) -- Gain on previously held equity interest on ecoATM -- -- (2.33) -- Gain on formation of Redbox Instant by Verizon -- -- -- (0.37) Tax benefit of worthless stock deduction (0.60) -- (0.59) -- Core diluted EPS from continuing operations $ 1.68 $ 1.01 $ 5.92 $ 5.15 (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:
View data
Three Months Ended Twelve Months Ended December 31, December 31, Dollars in thousands 2013 2012 2013 2012 Net cash provided by operating activities $ 191,700 $ 152,212 $ 324,091 $ 463,906 Purchase of property and equipment (49,053) (74,873) (157,669) (208,054) Free cash flow $ 142,647 $ 77,339 $ 166,422 $ 255,852
View data
OUTERWALL INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands, except per share data) (unaudited) Three Months Ended Year Ended December 31, December 31, 2013 2012 2013 2012 Revenue $ 593,705 $ 563,082 $ 2,306,601 $ 2,199,884 Expenses: Direct operating 400,459 402,580 1,575,277 1,498,819 Marketing 9,499 7,174 32,402 25,979 Research and development 4,913 1,900 13,084 6,757 General and administrative 52,990 51,957 221,776 204,519 Depreciation and other 49,005 45,448 192,161 179,027 Amortization of intangible assets 3,848 2,048 10,933 5,378 Total expenses 520,714 511,107 2,045,633 1,920,479 Operating income 72,991 51,975 260,968 279,405 Other income (expense), net: Income (loss) from equity method investments, net (21,352) (9,278) 19,928 (5,184) Interest expense, net (6,848) (4,615) (32,801) (15,648) Other, net (2,204) (143) (5,527) (180) Total other income (expense), net (30,404) (14,036) (18,400) (21,012) Income from continuing operations before income taxes 42,587 37,939 242,568 258,393 Income tax benefit (expense) 289 (12,404) (34,477) (97,941) Income from continuing operations 42,876 25,535 208,091 160,452 Loss from discontinued operations, net of tax (20,201) (2,650) (33,299) (10,222) Net income 22,675 22,885 174,792 150,230 Foreign currency translation adjustment 1,160 (294) 856 1,048 Comprehensive income $ 23,835 $ 22,591 $ 175,648 $ 151,278 Basic earnings (loss) per share: Continuing operations $ 1.61 $ 0.87 $ 7.65 $ 5.30 Discontinued operations (0.76) (0.09) (1.23) (0.34) Basic earnings per share $ 0.85 $ 0.78 $ 6.42 $ 4.96 Diluted earnings (loss) per share Continuing operations $ 1.55 $ 0.83 $ 7.33 $ 4.99 Discontinued operations (0.73) (0.08) (1.17) (0.32) Diluted earnings per share $ 0.82 $ 0.75 $ 6.16 $ 4.67 Weighted average shares used in basic per share calculations 26,696 29,380 27,216 30,305 Weighted average shares used in diluted per share calculations 27,598 30,619 28,381 32,174
View data
OUTERWALL INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share data) (unaudited) December 31, December 31, 2013 2012 Assets (As adjusted) Current Assets: Cash and cash equivalents $ 371,437 $ 282,894 Accounts receivable, net of allowances of $1,826 and $2,003 50,296 58,331 Content library 199,868 177,409 Deferred income taxes 11 7,187 Prepaid expenses and other current assets 84,698 29,686 Total current assets 706,310 555,507 Property and equipment, net 520,865 586,124 Notes receivable -- 26,731 Deferred income taxes 6,443 1,373 Goodwill and other intangible assets 638,690 344,063 Other long-term assets 24,392 47,927 Total assets $ 1,896,700 $ 1,561,725 Liabilities and Stockholders' Equity Current Liabilities: Accounts payable $ 236,018 $ 250,588 Accrued payable to retailers 134,140 138,413 Other accrued liabilities 134,127 146,125 Current callable convertible debt 49,702 -- Current portion of long-term debt and other 42,190 15,529 Current portion of capital lease obligations 11,997 13,350 Deferred income taxes 23,143 -- Total current liabilities 631,317 564,005 Long-term debt and other long-term liabilities 677,356 341,179 Capital lease obligations 9,364 15,702 Deferred income taxes 58,528 91,751 Total liabilities 1,376,565 1,012,637 Commitments and contingencies Debt conversion feature 1,446 -- 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; 36,356,357 and 35,797,592 shares issued; 26,150,900 and 28,626,323 shares outstanding 482,481 504,881 Treasury stock (476,796) (293,149) Retained earnings 513,771 338,979 Accumulated other comprehensive loss (767) (1,623) Total stockholders' equity 518,689 549,088 Total liabilities and stockholders' equity $ 1,896,700 $ 1,561,725
View data
OUTERWALL INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Three Months Ended Year Ended December 31, December 31, 2013 2012 2013 2012 Operating Activities: Net income $ 22,675 $ 22,885 $ 174,792 $ 150,230 Adjustments to reconcile net income to net cash flows: Depreciation and other 44,265 45,568 193,700 179,147 Amortization of intangible assets and deferred financing fees 4,494 2,579 13,461 7,504 Share-based payments expense 5,377 6,218 16,831 19,362 Excess tax benefits on share-based payments (351) (67) (3,698) (5,740) Deferred income taxes 1,165 14,383 (10,933) 87,573 Impairment expense 32,732 -- 32,732 -- (Income) loss from equity method investments, net 21,352 9,278 (19,928) 5,184 Non-cash interest on convertible debt 543 1,839 3,866 7,109 Loss from extinguishments of callable convertible debt 63 -- 6,013 -- Other (3,059) 7 (2,039) (4,100) Cash flows from changes in operating assets and liabilities 62,444 49,522 (80,706) 17,637 Net cash flows from operating activities 191,700 152,212 324,091 463,906 Investing Activities: Acquisition of ecoATM, net of cash acquired -- -- (244,036) -- Purchases of property and equipment (49,053) (74,873) (157,669) (208,054) Proceeds from sale of property and equipment 456 312 13,344 1,131 Receipt of note receivable principal 22,818 -- 22,913 -- Acquisition of NCR DVD kiosk business -- -- -- (100,000) Cash paid for equity investments -- -- (28,000) (39,727) Net cash flows from investing activities (25,779) (74,561) (393,448) (346,650) Financing Activities: Proceeds from issuance of senior unsecured notes -- -- 343,769 -- Proceeds from new borrowing of Credit Facility 250,000 -- 400,000 -- Principal payments on Credit Facility (154,375) (3,270) (215,313) (10,938) Financing costs associated with Credit Facility and senior unsecured notes (1,759) -- (2,203) -- Repurchase of convertible debt (2,547) (20,575) (172,211) (20,575) Repurchases of common stock (100,000) (76,654) (195,004) (139,724) Principal payments on capital lease obligations and other debt (4,010) (3,190) (14,834) (16,392) Excess tax benefits related to share-based payments 351 67 3,698 5,740 Proceeds from exercise of stock options, net 697 558 8,460 4,592 Net cash flows from financing activities (11,643) (103,064) 156,362 (177,297) Effect of exchange rate changes on cash 1,929 (151) 1,538 1,080 Increase (decrease) in cash and cash equivalents 156,207 (25,564) 88,543 (58,961) Cash and cash equivalents: Beginning of period 215,230 308,458 282,894 341,855 End of period $ 371,437 $ 282,894 $ 371,437 $ 282,894
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).
We manage our business by evaluating the financial results of our segments, focusing primarily on segment revenue and segment operating income before depreciation, amortization and other and share-based compensation granted to executives, non-employee directors and employees ("segment operating income"). Segment operating income contains internally allocated costs of our shared services support functions, including but not limited to, corporate executive management, business development, sales, customer service, finance, legal, human resources, information technology, and risk management. We also review depreciation and amortization allocated to each segment.
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.
View data
Three Months Ended Year Ended December 31, December 31, Dollars in thousands 2013 2012 2013 2012 Revenue: Redbox $ 496,399 $ 488,325 $ 1,974,531 $ 1,908,773 Coinstar 80,698 74,464 300,218 290,761 New Ventures 16,608 293 31,852 350 Consolidated revenue $ 593,705 $ 563,082 $ 2,306,601 $ 2,199,884
View data
Reconciliation of segment operating income to GAAP operating income: Three Months Ended Year Ended December 31, December 31, Dollars in thousands 2013 2012 2013 2012 Segment operating income (loss)(1) Redbox(2) $ 111,347 $ 80,012 $ 401,680 $ 386,753 Coinstar 30,817 26,300 102,506 99,261 New Ventures (7,424) (3,143) (19,390) (8,957) Subtotal 134,740 103,169 484,796 477,057 Depreciation, amortization and other: Redbox 40,418 38,812 162,637 148,068 Coinstar 8,428 8,520 33,921 36,108 New Ventures 4,007 164 6,536 229 Total depreciation, amortization and other 52,853 47,496 203,094 184,405 Share-based compensation and rights to receive cash expense 8,896 3,698 20,734 13,247 Operating income (loss): Redbox 70,929 41,200 239,043 238,685 Coinstar 22,389 17,780 68,585 63,153 New Ventures (11,431) (3,307) (25,926) (9,186) Share-based compensation and rights to receive cash expense (8,896) (3,698) (20,734) (13,247) Total operating income $ 72,991 $ 51,975 $ 260,968 $ 279,405 (1) Operating income (loss) before depreciation, amortization and other, and share-based compensation and rights to receive cash expense. (2) Share-based payments expense related to our content arrangements have been allocated to our Redbox segment.
SOURCE Outerwall Inc.
http://rt.prnewswire.com/rt.gif?NewsItemId=SF60288&Transmission_Id=201402061613PR_NEWS_USPR_____
outperform? OUTR is under a nice restraint by hedgies. This bitch will blast once the full beta is over.
Outerwall Upgraded by Zacks to “Outperform” (OUTR)
Outerwall (NASDAQ:OUTR) was upgraded by Zacks from a “neutral” rating to an “outperform” rating in a research report issued on Monday, AmericanBankingNews.com reports. The firm currently has a $69.60 target price on the stock. Zacks‘ target price indicates a potential upside of 5.60% from the stock’s previous close.
A number of other firms have also recently commented on OUTR. Analysts at Northland Securities reiterated a “positive” rating on shares of Outerwall in a research note to investors on Wednesday, December 11th. Separately, analysts at B. Riley raised their price target on shares of Outerwall from $95.00 to $103.00 in a research note to investors on Wednesday, December 11th. They now have a “buy” rating on the stock. Finally, analysts at Wedbush raised their price target on shares of Outerwall to $82.00 in a research note to investors on Tuesday, December 10th. Two investment analysts have rated the stock with a sell rating, one has assigned a hold rating and six have given a buy rating to the company. The stock currently has a consensus rating of “Hold” and an average price target of $71.82.
Outerwall (NASDAQ:OUTR) traded up 1.73% on Monday, hitting $67.051. The stock had a trading volume of 210,110 shares. Outerwall has a 1-year low of $46.25 and a 1-year high of $72.09. The stock has a 50-day moving average of $67.06 and a 200-day moving average of $61.61. The company has a market cap of $1.811 billion and a price-to-earnings ratio of 10.97.
Outerwall (NASDAQ:OUTR) last issued its quarterly earnings data 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 last year, the company posted $1.26 earnings per share. Outerwall’s revenue was up 9.2% compared to the same quarter last year. On average, analysts predict that Outerwall will post $5.10 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
I hope so. Redbox still in beta mode but making money. Rumor has it verizon wants to buy resbox from outr outright.
They've been cutting jobs,righting the ship and cleaning house...see you at $80
in your opinion what does that mean?
Outerwall PT Raised to $103.00 at B. Riley (OUTR)
http://tickerreport.com/banking-finance/89415/outerwall-pt-raised-to-103-00-at-b-riley-outr/
Outerwall Updates Progress on Operating Review and Capital Structure Initiatives
--Plans to Exit Three New Venture Concepts --Announces Leadership Transition at Redbox --Implements Additional Actions Expected to Achieve $22 Million of Annual Cost Savings --Increases Senior Secured Credit Facility by $350 Million to Achieve Target Net Leverage Ratio in Q1 2014
http://www.marketwatch.com/story/outerwall-updates-progress-on-operating-review-and-capital-structure-initiatives-2013-12-10?reflink=MW_news_stmp
Outerwall Inc. to Present at December Investor Conferences
http://www.marketwatch.com/story/outerwall-inc-to-present-at-december-investor-conferences-2013-11-26?reflink=MW_news_stmp
Redbox Launches New Redbox Card -- A Perfect Way to Gift Movie Nights This Holiday Season
Nov 18, 2013 09:00:00 (ET)
Redbox Launches New Redbox Card -- A Perfect Way to Gift Movie Nights This Holiday Season
The Redbox Card Lets Movie Lovers Rent Their Favorite New Releases With a Pre-Paid Balance
OAKBROOK TERRACE, IL--(Marketwired - Nov 18, 2013) - The Redbox Card(TM) is now available for purchase at redbox.com/gifts, making renting the hottest new release movies more convenient than ever before.
The Redbox Card can be given as a gift or kept for personal use and is offered in two simple-to-use formats:
-- A $25 physical card that's shipped to the recipient with a personal
message and can be used at the box or to reserve movies at redbox.com
-- A digital card available in $10 increments (up to $150) that can be
emailed or printed with a personal message and can only be used when
reserving movies in advance at redbox.com
Redbox Cards can be used to reserve and rent at approximately 35,000 Redbox locations nationwide. Some of the must-see Hollywood movies that are available for rental at Redbox this month are: "White House Down," "The Hangover Part III," "The Heat," "The Internship" and "Grown Ups 2."
About Redbox
Redbox, a subsidiary of Outerwall Inc. (NASDAQ: OUTR), offers new-release DVD, Blu-ray Disc(R) and video-game rentals through its network of conveniently located, self-service kiosks. Redbox has rented more than 3 billion discs and is available at approximately 35,000 locations nationwide, including leading grocery, drug and convenience stores, and select Walgreens, Walmart and McDonald's locations. For more information, visit www.redbox.com and for more information about Outerwall Inc. please visit www.outerwall.com.
Media Contacts:
Redbox:
Kate Brennan
630-756-8781
Email Contact
GolinHarris
Katie Palasik
312-729-4056
Email Contact
(MORE TO FOLLOW) Dow Jones Newswires
November 18, 2013 09:00 ET (14:00 GMT)
Outerwall Named One Of The Fastest Growing Companies In North America On Deloitte's 2013 Technology Fast 500(TM)
Attributes Revenue Growth to a Focus on Automated Retail Solutions That Enhance Consumers' Lives
BELLEVUE, Wash., Nov. 14, 2013 /PRNewswire/ -- Outerwall Inc. (Nasdaq: OUTR), formerly Coinstar, Inc., today announced it ranked 332(nd) on Deloitte's Technology Fast 500(TM), a ranking of the 500 fastest growing technology, media, telecommunications, life sciences and clean technology companies in North America. Outerwall's consolidated revenue grew more than 200 percent during 2008 through 2012.
(Logo: http://photos.prnewswire.com/prnh/20130701/AQ41388LOGO)
Outerwall's Chief Executive Officer J. Scott Di Valerio credits this achievement to the company's focus on its core strengths in automated retail, understanding consumer needs and its commitment to innovation.
"We are honored to be recognized by Deloitte as one of the fastest growing companies in North America," said Di Valerio. "Since the beginning, Outerwall focused on creating inventive and intuitive solutions for both consumers and retailers. We believe automated retail is an enduring channel that addresses consumers' needs for simplicity, value and convenience, while also contributing to retailers' profitability."
"The 2013 Deloitte Technology Fast 500 companies are exemplary cases of those spurring growth in a tough market through innovation," said Eric Openshaw, vice chairman, Deloitte LLP and U.S. technology, media and telecommunications leader. "This year's list is a who's who of companies behind the most exciting and innovative products and services in the technology space. We congratulate the Fast 500 companies and look forward to what they do next."
"The fastest growing companies in the US are drivers of constant innovation and operate with the agility to stay ahead of a quickly evolving marketplace, and software, biotech/pharma and internet companies continue to be at the forefront," added James Atwell, national managing partner of the Emerging Growth Company practice, Deloitte Services LP. "The companies excelling in these sectors have a startup mentality that allows them to be nimble and adapt quickly, which is why they consistently lead the list of fast-growing companies each year."
Overall, 2013 Technology Fast 500(TM) companies achieved revenue growth ranging from 137 percent to 208,897 percent from 2008 to 2012, with an average growth of 2,600 percent.
About Deloitte's 2013 Technology Fast 500(TM)
Technology Fast 500, conducted by Deloitte LLP, provides a ranking of the fastest growing technology, media, telecommunications, life sciences and clean technology companies -- both public and private - in North America. Technology Fast 500 award winners are selected based on percentage fiscal year revenue growth from 2008 to 2012.
In order to be eligible for Technology Fast 500 recognition, companies must own proprietary intellectual property or technology that is sold to customers in products that contribute to a majority of the company's operating revenues. Companies must have base-year operating revenues of at least $50,000 USD or CD, and current-year operating revenues of at least $5 million USD or CD. Additionally, companies must be in business for a minimum of five years, and be headquartered within North America.
About Outerwall Inc.
Outerwall (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 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.
SOURCE Outerwall Inc.
/CONTACT: Melissa Cafiero, Outerwall Inc., 425.943.8179, Melissa.cafiero@outerwall.com
/Web site: http://www.outerwall.com
Outerwall (OUTR) Target Moves Up to $78 at Northland Capital
http://www.streetinsider.com/Analyst+Comments/Outerwall+(OUTR)+Target+Moves+Up+to+$78+at+Northland+Capital/8879695.html
Outerwall Enables Donations To Super Typhoon Haiyan Relief Through Its Coinstar Kiosks
http://www.marketwatch.com/story/outerwall-enables-donations-to-super-typhoon-haiyan-relief-through-its-coinstar-kiosks-2013-11-12?reflink=MW_news_stmp
Outerwall Inc. to Present at the Goldman Sachs US Emerging - SMID Cap Growth Conference
http://www.marketwatch.com/story/outerwall-inc-to-present-at-the-goldman-sachs-us-emerging-smid-cap-growth-conference-2013-11-06
And I care why? Seriously, you contacted me out of the blue to try and 'zing me', but you are mistaken. You should really reread my posts about what Ive said about this stock. Every time this stock dips into the 46's, I show up, buy, and then sell at a profit. Ive done this multiple times. I prefer to profit, woe is me!
well.. star and i have been milking this too.
What does feel crunchy now mean? Lol. Wow dude. You know how Im feeling? Im feeling like someone that made a sizeable profit on this stock. And it wasnt the first time. Thats how Im feeling.
You dude, do you feel crunchy now? We touched mid $67. This stock short numbers is a powder keg. Did you watch NUS?
LOL...not for these guys
OXBT 2.81 87.33% 16298648 Top Gainers
NYNY 6.64 25.28% 1391507 Top Gainers
BBSI 85.95 24.22% 176796 Top Gainers
ARCW 17.10 23.47% 198436 Top Gainers
NUVA 31.39 22.33% 3644230 Top Gainers
PRAN 4.40 19.89% 4189751 Top Gainers
Followers
|
15
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
849
|
Created
|
11/05/02
|
Type
|
Free
|
Moderators |
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |