Coinstar Clarifies 2003 and 2004 Guidance; Responds to Investor Questions.Business Editors BELLEVUE, Wash.--(BUSINESS WIRE)--Nov. 20, 2002 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) ) responded to investor questions raised by its guidance release, issued earlier today. The company also announced that it will conduct a conference call on Thursday, November 21, 2002, at 4:00 p.m Eastern/1:00 p.m. Pacific time, to answer additional questions. "There appears to be some confusion with regard to our 2003 and 2004 guidance release, issued this morning," said Diane Renihan, chief financial officer of Coinstar. "Let me respond to the most frequently asked questions." 1. What share count are you assuming in your 2003 guidance? We are assuming weighted average 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. shares outstanding of 23.4 million in 2003. Over the years, we have seen a slow, steady rise in the share count, due to the effect of option grants. We are assuming a continuation of this trend. We did not assume a share buyback in our analysis, although it remains an option in the future. 2. What is the impact of the $4 to $5 million of spending related to your new product development program? We are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the opportunities to develop new products and services that leverage our existing infrastructure. As such, we are planning for success and expect to spend $4 to $5 million in 2003 to fund current and new pilots, and our business development program. This represents incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. spending of approximately $2 million, or $0.09 per share, compared with 2002 levels. 3. What is your earnings per share estimate on a consolidated basis? Assuming 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 at the mid-point in the guidance range for the United Kingdom in 2003, we would expect consolidated earnings per share of $1.31 to $1.52 for 2003. Once again, this assumes no share buy back in the calculation of average diluted shares outstanding as well as increased spending on new product development--as discussed above. Note: Coinstar will conduct a conference call on Thursday, November 21, 2002, at 4:00 p.m. Eastern/1:00 p.m. Pacific time to discuss its 2003 and 2004 guidance. The call will be simulcast on the company's Web site at www.coinstar.com, and available for one week. About Coinstar Inc. Coinstar Inc. owns and operates the only network of supermarket-based machines that offer coin counting and other electronic services. The company has more than 10,000 machines linked by a sophisticated interactive network 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. , as well as in Canada 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'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," variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. Forward-looking statements in this press release include statements relating to Coinstar's financial performance for 2002, 2003, and 2004. Actual results may vary significantly from the results expressed or implied in such statements. Factors that could cause or contribute to such varying results include, but are not limited to, 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 in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and the United Kingdom, the successful deployment and operation of our coin processing network, customer utilization of our service, and additional potential competitors. These and other risks are more fully described under the caption "Risk Factors" included in the most recent reports filed with the Securities and Exchange Commission by Coinstar Inc. Coinstar undertakes no duty or obligation to update the information provided herein. These forward-looking statements reflect Coinstar's expectations as of November 20, 2002. |
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