Coinstar Announces First Quarter Financial Results.BELLEVUE Bellevue (bĕl`vy  ).1 City (1990 pop. 30,982), Sarpy co., E Nebr., a suburb of Omaha, on the Missouri River; inc. 1855. , Wash. -- Coinstar, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CSTR CSTR Centre for Speech Technology Research CSTR Canister CSTR Continually Stirred Tank Reactor CSTR Center for Software Testing Research (Florida Tech) CSTR Combat System Trial Rehearsal (US DoD) ) today announced results for the three-months ended March 31, 2006. Highlights for the first quarter were as follows: --Revenue -- $126 million --EBITDA -- $25.1 million (see Appendix A) --Free cash flow -- $15.6 million (see Appendix A) --Adjusted earnings per fully taxed, fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share -- $0.22 (see reconciliation below) --Net income -- $4.2 million Included in GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net income for the quarter were certain non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. including $1.3 million in amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. , $429,000 in amortization of financing fees, $1.4 million in non-cash stock based compensation, and our portion of the non-cash losses associated with our investments in DVD DVD: see digital versatile disc. DVD in full digital video disc or digital versatile disc Type of optical disc. The DVD represents the second generation of compact-disc (CD) technology. kiosk kiosk Originally, in Islamic architecture, an open circular pavilion consisting of a roof supported by pillars. The word has been applied to a Turkish summer garden pavilion and a type of early Persian mosque. companies totaling $252,000. Excluding these items, net of taxes, Coinstar, Inc. reported adjusted net income of $6.1 million. A reconciliation of GAAP earnings per share to adjusted earnings per share is as follows:
Quarter ended 3/31/06
---------------------
GAAP earnings per fully taxed, fully diluted share $0.15
Amortization of intangibles, net of tax 0.03
Amortization of financing fees, net of tax 0.01
Stock based compensation expense, net of tax 0.03
Non-cash losses in DVD kiosk companies 0.00
---------------------
Adjusted earnings per fully taxed, fully diluted
share $0.22
=====================
At March 31, 2006, Coinstar, Inc. had approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $97 million in cumulative net operating loss carryforwards Net operating loss carryforwards Application of losses to offset earnings in future years. . Although Coinstar recorded $3.1 million in tax expense for the first quarter, cash paid for taxes during the three-month period ended March 31, 2006, totaled only $165,000 as a result of these net operating loss carryforwards. "We achieved several integration objectives during the quarter, and we're we're Contraction of we are. we're we are pleased to have done so while generating financial performance in-line In-line Used in the context of general equities. (1) An order or market in a specific security within the inside market; 2) any announcement (earnings) that adheres closely to Wall Street analysts' expectations. with expectations. Specifically, we continued integrating field operations, cash management systems and supply chain management processes," said Dave Cole, Chief Executive Officer of Coinstar, Inc. "As for strategic progress during the period, our asset portfolio and 4th Wall(TM) management solution continues to gain market share, to drive convenience and satisfaction for the consumer and profitability for our retail customers."
Other Information
Quarter ended Quarter ended
------------- -------------
03/31/06 03/31/05
-------- --------
Cash paid for capital expenditures
(in thousands) $7,417 $13,809
Installed Base
Coin 13,000 12,200
- Coin to card or
e-certificate enabled 6,100 150
- E-payment enabled 3,500 3,000
Crane 30,000 20,000
Bulk heads and other 266,000 151,000
POSA terminals 19,500 16,500
Second Quarter Expectations Management estimates that revenue for the second quarter ending June June: see month. 30, 2006, will range from $125 million to $135 million. As of January January: see month. 1, 2006, the Company adopted SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 123(R) Share Based Payment. The impact of the adoption of SFAS 123(R) on our results may vary greatly depending on a number of factors. However, we currently estimate that stock based compensation expense will be approximately $0.03 to $0.04 of GAAP earnings per share in the second quarter. With the SFAS 123(R) expense in our results, we estimate that GAAP earnings per fully taxed, fully diluted share will range from $0.11 to $0.17 for the second quarter. Management further estimates that adjusted fully taxed, fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of will range from $0.20 to $0.26. Conference Call Coinstar, Inc. announced that a conference call to discuss the first quarter results will be broadcast live over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the today, Thursday Thursday: see week. , April 27, 2006, at 4:30 p.m. Eastern time. The Webcast will be hosted at the About Us - Investor Relations Investor relations The process by which the corporation communicates with its investors. section of Coinstar's Web site at www.coinstar.com. About Coinstar, Inc. Coinstar, Inc. (Nasdaq:CSTR) is a multi-national company offering a range of 4th Wall(TM) solutions for the retailers' front of store consisting of self-service coin counting, electronic payment solutions, entertainment services and self-service DVD rental. The company's products and services can be found at retail locations including supermarkets Supermarkets, past and present, include: Transnational Originating (HQ) country first. The rest in alphabetical order.
This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Coinstar, Inc.'s anticipated growth and future operating results. These are forward-looking statements for purposes of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The words "believe," "estimate," "expect," "intend," "anticipate," "goals," variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. . The forward-looking statements are not guarantees of future performance and actual results may vary materially from the results expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. in such statements. Differences may result from actions taken by Coinstar, Inc., as well as from risks and uncertainties beyond Coinstar, Inc.'s control. Such risks and uncertainties include, but are not limited to, the effect of and financing of the acquisition of American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Coin Merchandising merchandising Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. , Inc. (n/k/a Coinstar Entertainment Services Inc.) and The Amusement Amusement is the state of experiencing humorous and usually entertaining events or situations, and is associated with enjoyment, happiness, laughter and pleasure. Amusement may also be experienced through the recollection of events which have given rise to amusement in the past. Factory, L.L.C., the ability to successfully integrate acquired businesses, the ability to bring new and repeat customers to Coinstar(R) machines, the ability to obtain new agreements with potential retailers for the installation of Coinstar machines and the retention of the current agreements with our existing retailers on terms that are not materially adverse to Coinstar, Inc., additional potential competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. , legal or governmental regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. action and uncertainties relating to the ultimate success of new business initiatives (including e-payment services). The foregoing list of risks and uncertainties is illustrative il·lus·tra·tive adj. Acting or serving as an illustration. il·lus  tra·tive·ly adv.Adj. 1. , but by no means exhaustive. For more information on factors that may affect future performance, please review Item 1A "Risk Factors" described in our most recent annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission. These forward-looking statements reflect Coinstar, Inc.'s expectations as of April 27, 2006. Coinstar, Inc. undertakes no obligation to update the information provided herein.
Appendix A
(in thousands unless otherwise noted)
Non GAAP measures Non GAAP measures are provided as a complement to results provided in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with accounting principles generally accepted in the United States of America UNITED STATES OF AMERICA. The name of this country. The United States, now thirty-one in number, are Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Hampshire, ("GAAP"). Non GAAP measures are not a substitute for measures computed in accordance with GAAP. Definitions of such non GAAP measurements are provided below. These definitions are provided to allow the reader to reconcile non GAAP data to that presented in accordance with GAAP. Our non GAAP measures may be different from the presentation of financial information by other companies. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become represents earnings before net interest expense, income taxes, depreciation, and amortization. We believe EBITDA is an important non GAAP measure as it provides useful cash flow information regarding our ability to service, incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. or pay down indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. and for purposes of calculating certain debt covenants. In addition, management uses such non GAAP measures internally to evaluate the Company's performance and manage its operations. See below for reconciliation of most comparable GAAP measurements to EBITDA.
Quarter ended March 31, 2006
----------------------------
Net income $4,179
Depreciation and other 12,859
Amortization of intangibles 1,327
Interest expense, net 3,351
Early retirement of debt 238
Income taxes 3,129
-------
EBITDA $25,083
=======
Free cash flow is an important non GAAP measure as it provides useful cash flow information regarding our ability to service, incur or pay down indebtedness and repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. our common stock. We use free cash flow as a measure to reflect cash available to service our debt as well as to fund our discretionary and non-discretionary expenditures. Free cash flow may be reconciled rec·on·cile v. rec·on·ciled, rec·on·cil·ing, rec·on·ciles v.tr. 1. To reestablish a close relationship between. 2. To settle or resolve. 3. from net cash provided by operating activities, the most directly comparable GAAP measure, as follows:
Quarter ended March 31, 2006
----------------------------
Net cash provided by operating
activities $4,699
Changes in operating assets and
liabilities, net of acquisitions 18,291
Cash paid for capital expenditures (7,417)
-------
Free cash flow $15,573
=======
Adjusted earnings per share is an important non GAAP measure as it provides useful information about our results from operations excluding certain non-cash charges. We believe this measure provides an important comparison to prior period earnings and is representative of our operating results. Income from operations before stock based compensation expense is a financial measure we use to evaluate the underlying results and operating performance of our business. The difference between income from operations (the most comparable GAAP measure) and income from operations before stock based compensation expense (the non GAAP measure) reflects the impact of adopting SFAS 123(R) on the current period results. We believe income from operations before stock based compensation expense is a useful measure that allows investors to draw comparisons between operating results reported prior to adoption of SFAS 123(R) and the current period which may mask mask, cover or partial cover for the face or head used as a disguise or protection. Masks have been worn from time immemorial throughout the world. They are used by primitive peoples chiefly to impersonate supernatural beings or animals in religious and magical underlying trends and make it difficult to give investors perspective on underlying business results.
Coinstar, Inc.
Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
---------------------
Three months ended
---------------------
March 31, March 31,
2006 2005
---------------------
REVENUE $126,032 $105,585
EXPENSES:
Direct operating 86,299 72,880
Marketing 924 957
Research and development 1,241 1,309
General and administrative 12,766 8,592
Depreciation and other 12,859 10,806
Amortization of intangible assets 1,327 1,031
---------------------
Income from operations 10,616 10,010
OTHER INCOME (EXPENSE):
Interest income and other, net 471 326
Interest expense (3,732) (2,850)
Income from equity investments 191 162
Early retirement of debt (238) --
---------------------
Income before income taxes 7,308 7,648
Income taxes (3,129) (2,980)
---------------------
NET INCOME $ 4,179 $ 4,668
=====================
NET INCOME PER SHARE:
Basic $ 0.15 $ 0.18
Diluted $ 0.15 $ 0.18
WEIGHTED SHARES OUTSTANDING:
Basic 27,716 25,272
Diluted 27,987 25,665
CASH PAID FOR CAPITAL EXPENDITURES $ 7,417 $ 13,809
Coinstar, Inc.
Non GAAP Consolidated Statements of Operations
Excluding Stock Based Compensation Expense
(in thousands, except per share data)
(unaudited)
Income from operations before stock based compensation expense is a
financial measure we use to evaluate the underlying results and
operating performance of our business. The difference between income
from operations (the most comparable GAAP measure) and income from
operations before stock based compensation expense (the non GAAP
measure) reflects the impact of adopting SFAS 123(R) on the current
period results. We believe income from operations before stock based
compensation expense is a useful measure that allows investors to draw
comparisons between operating results reported prior to adoption of
SFAS 123(R) and the current period which may mask underlying trends
and make it difficult to give investors perspective on underlying
business results.
Three months ended March 31, 2006 Three
--------------------------------- months
Stock Based ended
GAAP Compensation Pro Forma March 31,
Results Expense Results 2005
--------------------------------- -------------
REVENUE $126,032 $ $126,032 $ 105,585
EXPENSES:
Direct operating 86,299 (254) 86,045 72,880
Marketing 924 (33) 891 957
Research and
development 1,241 (82) 1,159 1,309
General and
administrative 12,766 (1,019) 11,747 8,592
Depreciation and
other 12,859 12,859 10,806
Amortization of
intangible assets 1,327 1,327 1,031
--------------------------------- ------------
Income from
operations 10,616 1,388 12,004 10,010
OTHER INCOME (EXPENSE):
Interest income
and other, net 471 471 326
Interest expense (3,732) (3,732) (2,850)
Income from equity
investments 191 191 162
Early retirement
of debt (238) (238) --
--------------------------------- -------------
Income before
income taxes 7,308 1,388 8,696 7,648
Income taxes (3,129) (387) (3,516) (2,980)
-------------------------------- -------------
NET INCOME $ 4,179 $ 1,001 $ 5,180 $ 4,668
================================= =============
NET INCOME PER SHARE:
Basic $ 0.15 $0.03 $ 0.19 $ 0.18
Diluted $ 0.15 $0.03 $ 0.19 $ 0.18
Coinstar, Inc.
Consolidated Balance Sheets
(in thousands)
(unaudited)
March 31, December 31,
2006 2005
-----------------------
CURRENT ASSETS:
Cash and cash equivalents $ 40,717 $ 45,365
Cash in machine or in transit 54,572 60,070
Cash being processed 57,177 69,832
Trade accounts receivable, net of allowance
for doubtful accounts of $630 and $469 at
March 31, 2006 and December 31, 2005,
respectively 9,407 9,046
Inventory 32,755 31,234
Deferred income taxes 17,329 17,330
Prepaid expenses and other current assets 9,125 11,020
-----------------------
Total current assets 221,082 243,897
PROPERTY AND EQUIPMENT, NET 153,256 148,811
DEFERRED INCOME TAXES 2,444 5,385
OTHER ASSETS 5,130 5,392
EQUITY INVESTMENTS 19,904 19,966
INTANGIBLE ASSETS, NET 38,821 40,139
GOODWILL 184,265 179,811
-----------------------
TOTAL ASSETS $624,902 $643,401
=======================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 35,455 $ 34,760
Accrued liabilities payable to retailers 64,509 77,175
Other accrued liabilities 23,129 26,941
Current portion of long-term debt and
capital lease obligations 7,331 3,850
-----------------------
Total current liabilities 130,424 142,726
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS 194,419 206,628
-----------------------
Total liabilities 324,843 349,354
STOCKHOLDERS' EQUITY:
Common stock 330,961 328,951
Accumulated deficit (8,979) (13,158)
Treasury stock (23,165) (22,783)
Accumulated other comprehensive income 1,242 1,037
-----------------------
Total stockholders' equity 300,059 294,047
-----------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $624,902 $643,401
=======================
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion