Coinstar Announces Second Quarter Revenue of $109.8 Million.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-month period ended June June: see month. 30, 2005. Highlights for the second quarter are as follows: --Revenue - $109.8 million --EBITDA - $23.5 million (see Appendix A) --Free cash flow - $9.3 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 of $0.24 (see reconciliation below) --Net income of $5.3 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. primarily related to past acquisitions including $1.1 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. , $204,000 in amortization of financing fees and $84,000 in amortization of compensation expense. Excluding these items, net of taxes, Coinstar reported adjusted net income of $6.1 million. A reconciliation of GAAP earnings per share to Adjusted earnings per share is as follows:
GAAP fully taxed, fully diluted earnings per share $ 0.21
Amortization of intangibles, net of tax 0.03
Amortization of financing fees, net of tax 0.00
Amortization of compensation, net of tax 0.00
--------
Adjusted fully taxed, fully diluted earnings per share $ 0.24
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At June 30, 2005, Coinstar, Inc. had approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $113.9 million in cumulative net operating loss carryforwards Net operating loss carryforwards Application of losses to offset earnings in future years. . Although Coinstar recorded $3.4 million in tax expense for the second quarter, cash paid for taxes during the three-month period ended June 30, 2005, totaled only $188,000 as a result of these net operating loss carryforwards. "We are pleased that second quarter results once again met expectations. Our performance was characterized char·ac·ter·ize tr.v. character·ized, character·iz·ing, character·iz·es 1. To describe the qualities or peculiarities of: characterized the warden as ruthless. 2. by solid comparable sales and new unit growth in coin processing, strategic progress in e-payments and lower than expected performance in entertainment," said Dave Cole, Chief Executive Officer of Coinstar, Inc. "As we enter the second half of 2005 we will continue to focus on integrating field operations and work to position Coinstar for market leadership while leveraging our integrated sales force. It is this approach, combined with our ability to manage our customers' front-of-store needs, that will drive long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. value for our retail partners and our shareholder base." Third Quarter Expectations Management estimates that revenue for the third quarter ending September September: see month. 30, 2005, will range from $115 to $121 million. Management estimates that for the third quarter ending September 30, 2005, GAAP earnings per fully diluted, fully taxed, share will range from $0.23 to $0.29 and Adjusted fully diluted, fully taxed earnings per share will range from $0.26 to $0.32. Conference Call Coinstar, Inc. announced that a conference call to discuss the second 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. , July July: see month. 28, 2005, at 5:00 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 products and services consisting of coin counting, electronic payment solutions, and entertainment services 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," "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 ACMI ACMI Aircraft, Crew, Maintenance and Insurance (wet lease) ACMI Art & Creative Materials Institute ACMI Air Combat Maneuvering Instrumentation ACMI American College of Medical Informatics ACMI Australian Center for the Moving Image , 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 the "Factors That May Affect Our Business, Future Operating Results and Financial Condition" described in each of our recent annual reports 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. and quarterly reports on Form 10-Q Form 10-Q See 10-Q. filed with the Securities and Exchange Commission. These forward-looking statements reflect Coinstar, Inc.'s expectations as of July 28, 2005. 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
presented in accordance with GAAP. Our non GAAP measures may be
different from the presentation of financial information by other
companies.
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 June 30,
2005
Net income $ 5,265
Depreciation, amortization and other 12,062
Interest expense, net 2,757
Income taxes 3,378
---------
EBITDA $ 23,462
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Free cash flow: 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. 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 from
net cash provided by operating activities, the most directly
comparable GAAP measure, as follows:
Quarter ended June 30,
2005
Net cash provided by operating activities $ 22,751
Changes in operating assets and liabilities,
net of acquisitions (2,319)
Capital expenditures (11,176)
--------------
Free cash flow $ 9,256
==============
Adjusted earnings per share: we believe adjusted earnings per
share is an important non GAAP measure as it provides useful
information about our results from operations excluding non-cash
charges. We believe this measure provides an important comparison to
prior period earnings and is more representative of our operating
results.
Coinstar, Inc.
Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three months ended Six months ended
------------------------------------
June 30, June 30, June 30, June 30,
2005 2004 2005 2004
----------------------------------
REVENUE $109,840 $47,825 $215,425 $90,877
EXPENSES:
Direct operating 74,389 23,093 147,269 43,311
Sales and marketing 1,975 3,666 2,932 4,716
Research and development 1,516 1,556 2,825 2,997
General and administrative 8,687 4,890 17,279 9,954
Depreciation and other 10,958 7,450 21,764 15,365
Amortization of intangible assets 1,104 84 2,135 137
----------------------------------
Income from operations 11,211 7,086 21,221 14,397
OTHER INCOME (EXPENSE):
Interest income and other,
net 532 61 1,020 130
Interest expense (3,100) (126) (5,950) (372)
----------------------------------
Income before income taxes 8,643 7,021 16,291 14,155
Income taxes (3,378) (2,470) (6,358) (4,987)
----------------------------------
NET INCOME $ 5,265 $ 4,551 $ 9,933 $ 9,168
==================================
NET INCOME PER SHARE:
Basic $ 0.21 $ 0.21 $ 0.39 $ 0.43
Diluted $ 0.21 $ 0.21 $ 0.39 $ 0.43
WEIGHTED SHARES OUTSTANDING:
Basic 25,354 21,357 25,313 21,325
Diluted 25,561 21,593 25,613 21,565
CAPITAL EXPENDITURES $ 11,176 $ 8,696 $ 24,985 $14,515
Coinstar, Inc.
Consolidated Balance Sheets
(in thousands)
(unaudited)
June 30, December 31,
2005 2004
------------ ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 99,598 $ 94,640
Cash being processed 63,120 62,147
Trade accounts receivable, net of
allowance for doubtful accounts
of $582 in 2005 and $481 in 2004,
respectively 9,700 5,283
Inventory 27,245 25,877
Deferred income taxes 19,687 18,833
Prepaid expenses and other current
assets 8,516 11,626
-------- --------
Total current assets 227,866 218,406
PROPERTY AND EQUIPMENT, NET 136,957 131,267
DEFERRED INCOME TAXES 9,836 15,880
OTHER ASSETS 5,888 6,200
INTANGIBLE ASSETS, NET 35,015 35,033
GOODWILL 144,813 140,348
-------- --------
TOTAL ASSETS $560,375 $547,134
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 25,591 $ 23,661
Accrued liabilities payable to retailers 64,517 63,504
Other accrued liabilities 22,388 22,904
Current portion of long-term debt and
capital lease obligations 3,406 3,350
-------- --------
Total current liabilities 115,902 113,419
LONG-TERM DEBT AND CAPITAL LEASE
OBLIGATIONS 206,581 207,569
-------- --------
Total liabilities 322,483 320,988
STOCKHOLDERS' EQUITY:
Common stock 284,682 282,046
Accumulated deficit (25,497) (35,430)
Treasury stock (22,783) (22,783)
Accumulated other comprehensive income 1,490 2,313
-------- --------
Total stockholders' equity 237,892 226,146
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $560,375 $547,134
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