Coinstar Announces First Quarter Revenue of $43.1 Million and $0.21 Per Fully Diluted Share.Business Editors 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.--(BUSINESS WIRE)--April 29, 2004 Coinstar Inc. (Nasdaq: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-month period ended March 31, 2004. Highlights for the first quarter of 2004 were as follows: -- Quarterly revenue - $43.1 million -- 16.1% same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of growth -- 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 (1) - $15.3 million (see Appendix A) -- Free cash flow(2) - $9.1 million (see Appendix A) For the first quarter of 2004, Coinstar Inc. achieved revenue of $43.1 million and net income of $4.6 million or $0.21 per 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. First quarter results compare favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to first quarter 2003 revenue of $38.0 million and net income of $3.9 million or $0.18 per fully diluted share. "We're we're Contraction of we are. we're we are certainly pleased that our first quarter results exceeded expectations. We saw steady progress in each of our four growth planks as evidenced by a solid increase in same store sales and continued acceptance of offerings in the prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. category," stated
Dave Cole, Chief Executive Officer of Coinstar Inc. "Earnings for
the quarter were positively impacted because of our decision to move
approximately $600,000 of marketing expenses from the first quarter to
the second quarter. By moving this expense, we are able to closely tie
our advertising to new product introductions in specific geographical
regions."
Recent Events During the first quarter, the Company entered into a new multi-year agreement with Albertson's, Inc. (NYSE NYSE See: New York Stock Exchange :ABS (Automatic Backup System) See backup program. ). Under the terms, Coinstar will offer coin counting and additional services in nearly all Albertsons Albertsons is a brand name currently used by two separate companies due to the 2006 split of Albertsons, Inc.:
Incremental cost is additional or increased cost of an item or service apart from its actual cost. installations in traditional Albertsons supermarkets and 400 installations in Albertsons' OscoDrug and Savon drug stores. Also during the quarter Coinstar further extended its e-payment and prepaid offerings by the acquisition of CellCards of Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. , LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control . CellCards offers a broad set of prepaid products through an in-lane solution including wireless and long distance, select bill payment capabilities for common services and has multi-year agreements with national drugstore retailers including CVS (1) (Concurrent Versions System) A version control system for Unix that was initially developed as a series of shell scripts in the mid-1980s. CVS maintains the changes between one source code version and another and stores all the changes in one file. , Eckerd Eckerd may refer to:
Rich Stillman Stillman is a surname, and may refer to:
2004 Expectations Based on the current outlook, the Company is providing guidance for the quarter ending June June: see month. 30, 2004, as follows: -- Revenue - $43.5 to $45.5 million -- Fully diluted, fully taxed earnings per share - $0.17 to $0.21 Conference Call Coinstar Inc. announced that a conference call to discuss the first quarter 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 29, 2004, at 4:30 p.m. Eastern time. The Webcast will be hosted at the Investor section of Coinstar's Web site at www.coinstar.com. About Coinstar Inc. Coinstar Inc. owns and operates a network of nearly 11,000 automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. self-service coin-counting machines that provide consumers with a convenient means to convert loose coins into cash. Acquisitions during the past year have laid the foundation for distribution of various prepaid products through point-of-sale point of sale n. pl. points of sale A business or place where a product or service can be purchased. Also called point of purchase. point and non-coin-counting kiosks in over 13,000 drugstores, universities, shopping malls and convenience stores The following is a list of convenience stores organized by geographical location. Stores are grouped by the lowest heading that contains all locales in which the brands have significant presence. bringing the total to nearly 25,000 distribution points throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of and the United Kingdom. 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 that involve a number of risks and uncertainties. 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," "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 significantly from the results expressed or implied in such statements. Differences may result from actions taken by Coinstar, Inc., as well as from risks and uncertainties beyond the Company's control. Factors that could cause or contribute to such differences include, but are not limited to, the ability to bring new and repeat customers to Coinstar(R) machines, the ability to obtain new agreements with potential retail partners for the installation of Coinstar units and the retention of the current agreements with our existing retail partners on terms that are not materially adverse to the company, additional potential competitors, 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 prepaid services), including but not limited to the ability to attract customers and reach agreements with retail and other partners. 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 the most recent reports filed with the Securities and Exchange Commission by Coinstar, Inc. These forward-looking statements reflect Coinstar, Inc.'s expectations as of April 29, 2004. 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 with accounting principles generally accepted in the
United States of America ("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 calculated in accordance with GAAP. Our non
GAAP measures may be different from the presentation of financial
information by other companies.
(1) EBITDA 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 or pay down
indebtedness 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,
2004
Net cash provided by operating activities $ 5,937
Changes in operating assets and liabilities 8,938
Other non-cash items(a) (9)
Net interest expense 210
Cash paid for taxes 236
--------
EBITDA $ 15,312
========
(a) other non-cash items generally consist of non-cash stock-based
compensation
(2) We believe 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 our common
stock. Free cash flow may be reconciled from net cash provided by
operations, the most directly comparable GAAP measure, as follows:
Quarter ended March 31,
2004
Net cash provided by operating activities $ 5,937
Changes in operating assets and liabilities 8,938
Capital expenditures (5,819)
-------
Free cash flow $ 9,056
=======
Coinstar, Inc.
Consolidated Statements of Operations(1)
(in thousands, except per share data)
(unaudited)
Three months ended
-----------------------
March 31, March 31,
2004 2003
-----------------------
Revenue $ 43,052 $ 37,997
Expenses:
Direct operating 20,218 17,694
Sales and marketing 573 704
Product research and development 1,441 1,293
Selling, general and administrative 5,541 5,423
Depreciation, amortization and other 7,968 6,380
---------------------
Income from operations 7,311 6,503
Other income (expense):
Interest income 36 71
Interest expense (246) (358)
Other 33 61
---------------------
Income before income taxes 7,134 6,277
Income taxes (2,517) (2,335)
---------------------
Net income $ 4,617 $ 3,942
=====================
Net income per share:
Basic $ 0.22 $ 0.18
Diluted $ 0.21 $ 0.18
Weighted shares outstanding:
Basic 21,290 21,766
Diluted 21,533 22,148
Capital Expenditures $ 5,819 $ 6,569
(1) These consolidated statements of operations are prepared in
accordance with accounting principles generally accepted in the
United States of America.
Coinstar, Inc.
Consolidated Balance Sheets
(in thousands)
(unaudited)
March 31, December 31,
2004 2003
----------------------
Assets
Current assets:
Cash and cash equivalents $ 39,033 $ 38,882
Cash being processed 53,202 60,782
Trade accounts receivable, net of
allowance for doubtful accounts of
$87 in 2004 2,455 --
Inventory 2,891 --
Deferred income taxes 7,337 10,161
Prepaid expenses and other current assets 5,848 3,043
----------------------
Total current assets 110,766 112,868
Property and equipment:
Coinstar units 181,031 176,329
Computers 9,158 9,197
Office furniture and equipment 1,403 1,382
Leased vehicles 4,412 3,957
Leasehold improvements 723 705
----------------------
Total property and equipment 196,727 191,570
Accumulated depreciation (136,437) (130,800)
----------------------
Total property and equipment, net 60,290 60,770
Deferred income taxes 29,061 28,665
Other assets 653 699
Goodwill 3,979 454
Intangible assets, net of accumulated
amortization of $192 in 2004 and $138
in 2003 1,494 618
----------------------
Total assets $ 206,243 $ 204,074
======================
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 8,038 $ 2,128
Accrued liabilities payable to retailers 53,202 60,782
Accrued liabilities 9,940 9,513
Current portion of long-term debt and
capital lease obligations 11,006 14,188
----------------------
Total current liabilities 82,186 86,611
Long-term debt and capital lease obligations 3,354 3,273
----------------------
Total liabilities 85,540 89,884
Stockholders' equity:
Common stock 193,090 191,370
Accumulated deficit (51,181) (55,798)
Treasury stock (22,783) (22,783)
Accumulated other comprehensive income 1,577 1,401
----------------------
Total stockholders' equity 120,703 114,190
----------------------
Total liabilities and stockholders' equity $ 206,243 $ 204,074
======================
(1) These consolidated balance sheets are prepared in accordance with
accounting principles generally accepted in the United States of
America.
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