Coinstar Reports First Quarter 2001 EBITDA Growth of 53 Percent On Revenue Growth of 29 Percent for Core Business; Completes Initial Phase of Strategic Alternatives Analysis.Business Editors/Technology Writers 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)--May 3, 2001 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, 2001. NORTH AMERICAN North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. CORE BUSINESS Revenues for the North American core business were $27.1 million in the first quarter of 2001, an increase of 29.4 percent from the first quarter of 2000. Comparable revenues (for machines installed in the same location for more than one year) increased 17 percent. Direct contribution increased 35.1 percent to $14.4 million, as the direct contribution margin expanded to 53.0 percent in the first quarter of 2001 from 50.7 percent in the first quarter of 2000. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
The company posted net income from the North American core business of $11,000, or breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations , on a per share basis, compared to a net loss of $1.7 million, or $0.08 per share, in the same period last year. "We were free cash flow positive for the core business in the first quarter, and expect to be so for the remainder of the year," said Diane DIANE Diversified Information and Assistance Network (Tennessee Valley Authority) DIANE Direct Information Access Network for Europe DIANE Digital Integrated Attack and Navigation Equipment Renihan, chief financial officer of Coinstar. "And, for the first time, our core business posted a net profit for the quarter -- ahead of plan. We now expect to be profitable again, on a continuing basis, by the third quarter of 2001." "Our business has never been better," said Rich Stillman Stillman is a surname, and may refer to:
The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of Coinstar. "The first-quarter performance -- including EBITDA growth of 53 percent -- surpassed our own expectations. The strong volumes demonstrate the sustainable benefits of our advertising and promotional programs. Additionally, they provide evidence that the Coinstar service is non-cyclical. The solid direct contribution margin reflects the operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. in our business, as 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. revenues provide substantially higher unit cash flow. And, we have taken several steps to leverage the network through marketing and new product initiatives." Key Developments In April 2001, the company announced its first national promotion of the year for the core business. In conjunction with Radio Disney This article may contain original research or unverified claims. Please help Wikipedia by adding references. See the for details. This article has been tagged since August 2007. , children who process $5 or more through a Coinstar machine will get a chance to win a trip for four to the Walt Disney World Noun 1. Walt Disney World - a large amusement park established in 1971 to the southwest of Orlando Orlando - a city in central Florida; site of Walt Disney World Resort in Orlando, Florida The city of Orlando is a major city in central Florida and is the county seat of Orange County, Florida. According to the 2000 census, the city population was 185,951. A 2006 U.S. . In March 2001, Coinstar also signed a strategic alliance agreement with DataWave Systems (CDNX CDNX See Canadian Venture Exchange (CDNX). :DTV (Digital TeleVision) Transmitting TV using digital signals. The major DTV standards are ATSC (North America), DVB (Europe) and ISDB (Japan). All three use MPEG-2 video compression and Dolby Digital audio compression. DVB and ISDB also include MPEG audio compression. .V)(OTCBB OTCBB See OTC Bulletin Board (OTCBB). :DWVSF) and Michigan National Bank Michigan National Bank was established on 31 December 1940 when Howard J Stoddard consolidatied six Michigan banks: First National Bank and Trust Company of Grand Rapids, First National Trust and Savings Bank of Port Huron, Lansing National Bank, Battle Creek's Security National to begin testing the sale of MasterCard MasterCard Worldwide (NYSE: MA) is a mutinational corporation based in Purchase, NY in the United States. Throughout the world, its principal business is to process payments between the banks of merchants and the banks of purchasers that use its "Mastercard" branded debit- and branded prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. cards
through the Coinstar network. Coinstar plans to begin testing prototypes
of the cash card system in the second quarter of 2001, followed by a
small-scale small-scaleadj. 1. Limited in scope or extent; modest: a small-scale plan. 2. Created on a small scale: pilot later in the year, which could lead to a full-scale full-scale adj. 1. Of actual or full size; not reduced: a full-scale model. 2. Employing all resources; not limited or partial: roll out in 2002. Coins that Count(TM) -- which uses the Coinstar network to accept donations on behalf of nonprofit organizations Nonprofit Organization An association that is given tax-free status. Donations to a non-profit organization are often tax deductible as well. Notes: Examples of non-profit organizations are charities, hospitals and schools. -- continued to expand, raising over $400,000 in contributions in the first quarter of 2001, compared with approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1,300 in the first quarter of 2000. In April 2001, the company announced its partnership with The Leukemia leukemia (l kē`mēə), cancerous disorder of the blood-forming tissues (bone marrow, lymphatics, liver, spleen) characterized by excessive production of immature or mature & Lymphoma lymphoma, a cancer of the tissue of the lymphatic system. There are two categories of lymphomas. One type is termed Hodgkin's disease, the other, non-Hodgkin's lymphoma (see lymphoma, non-Hodgkin's). See also neoplasm. Society, which becomes Coinstar's third national
Coins that Count(TM) partner, joining the U.S. Fund for UNICEF UNICEF (y`nĭsĕf'), the United Nations Children's Fund, an affiliated agency of the United Nations. and the
American Red Cross American Red Cross: see Red Cross. .North American Core Business Outlook For the second quarter of 2001, the company expects revenues for its core business of $29 to $30 million, representing year-over-year growth of 18 to 22 percent. It also expects to generate a direct contribution margin of 54 to 55 percent and EBITDA growth of 60 to 70 percent, compared with the second quarter of 2000. For the full year, Coinstar is raising guidance for its core business. The company now expects revenues of $119 to $125 million, direct contribution of $64 to $69 million, EBITDA of $31 to $35 million, and net income between a loss of $1 million and a profit of $3 million. SUBSIDIARY OPERATIONS Coinstar International. First quarter 2001 revenues for the United Kingdom operation nearly tripled. As announced on May 1, Coinstar plans to expand its service in the U.K. after reaching rollout agreements with two of the country's largest supermarket retailers: Asda Stores, a subsidiary of Wal-Mart  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. , and Sainsbury's Supermarkets."The U.K. represents an exciting expansion opportunity that leverages our existing infrastructure in 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. ," said Stillman. "Coinstar has attracted two excellent partners with a combined market share of 40 percent. With their support, we fully expect to repeat the success Coinstar has enjoyed in the United States." Meals.com. Coinstar's 89 percent-owned subsidiary, Meals.com, posted revenues of $335,000 in the first quarter of 2001, compared with $14,000 in the year-ago period. Meals' cash balance as of March 31, 2001 was $4.5 million. During the first quarter, Meals has continued to demonstrate its ability to help retailers and packaged goods Noun 1. packaged goods - groceries that are packaged for sale foodstuff, grocery - (usually plural) consumer goods sold by a grocer plural, plural form - the form of a word that is used to denote more than one manufacturers increase sales and profits. Using the Meals system, Ukrop's Super Markets This article needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. has experienced 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 increases of approximately one percent, which translates to about $1 of incremental profit per household, per month. CONSOLIDATED con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: RESULTS On a consolidated basis, revenues increased 30.8 percent to $27.5 million in the first quarter of 2001. EBITDA increased 51.3 percent year-over-year. The company reported a net loss of $4.0 million, or $0.20 per share, compared with a net loss of $3.9 million, or $0.20 per share, in the first quarter of 2000. Note: Coinstar will conduct a conference call to discuss first-quarter results today at 11:00 a.m. eastern/8:00 a.m. pacific time. The call will be simulcast Simulcast is a portmanteau of "simultaneous broadcast", and refers to programs or events broadcast across more than one medium, or more than one service on the same medium, at the same time. on the company's Web site, www.coinstar.com. STRATEGIC ALTERNATIVES ANALYSIS Coinstar's board of directors has completed the initial phase of its strategic alternatives analysis with J.P. Morgan Morgan, American family of financiers and philanthropists. Junius Spencer Morgan, 1813–90, b. West Springfield, Mass., prospered at investment banking. . Based on a number of factors, including Coinstar's strong operating performance and the analysis provided by J.P. Morgan, the board has determined that the long term interests of Coinstar shareholders are best served by Coinstar continuing as an independent public company executing management's strategic plan. J.P. Morgan will continue to work on Coinstar's behalf to consider strategic alternatives for Coinstar's Meals.com subsidiary. About Coinstar Inc. Coinstar Inc. (Nasdaq:CSTR) owns and operates the only nationwide network of supermarket-based machines that offer coin counting and other electronic services. Linked by a sophisticated interactive network, the company has more than 8,500 machines throughout 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. , as well as in the United Kingdom. Meals.com, the company's majority-owned subsidiary majority-owned subsidiary A firm in which more than 50% of outstanding voting stock is owned by the parent company. , is an infrastructure provider that helps supermarket retailers and packaged goods manufacturers communicate directly to consumers through the use of online and in-store technologies. 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 for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. . Forward looking statements in this release include, without limitation, statements with respect to the Company's financial performance for the remainder of the 2001 fiscal year, Coinstar's plans to expand its service in the United Kingdom, and the ability of Coinstar to effect a full-scale roll out of prepaid cash cards. Actual results may vary significantly 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. Factors that could cause or contribute to such varying results include, but are not limited to, the continued consolidation of Meals.com's losses, the ability to obtain new agreements with potential retail partners for the installation of Coinstar units, the successful deployment and operation of our coin processing network, customer utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be of our service, and the inability of Coinstar to reach an agreement with Michigan National Bank and DataWave to effect a full-scale roll out of its prepaid cash cards. 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., including its 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. .
Coinstar Business Segments
Selected Financial and Other Data
(In thousands, except share and per share data)
(Unaudited)
------------------------------
Three months ended
------------------------------
March 31, March 31,
2001 2000
------------------------------
North American Operations(1)
Revenue $ 27,130 $ 20,972
Expenses
Direct operating 12,757 10,334
------------------------------
Direct contribution(2) 14,373 10,638
Regional sales and marketing 377 493
Product research and development 915 751
Selling, general and administrative 4,942 4,077
------------------------------
EBITDA(2) 8,139 5,317
Depreciation and amortization 6,763 5,786
------------------------------
Income (loss) from operations 1,376 (469)
Other income (expense)
Interest income 647 664
Interest expense (2,079) (1,980)
Other 67 120
------------------------------
Net income (loss) $ 11 $(1,665)
==============================
Net income (loss) per share,
basic and diluted $0.00 $(0.08)
Weighted shares outstanding,
basic and diluted 20,502 20,193
===================================================================
Other Data
Consolidated capital expenditures $ 4,230 $ 5,268
Subsidiary Results
International -- 100% owned subsidiary(3)
Revenue $ 153 $ 51
Total operating expenses(4) $ 254 $ 268
Meals.com -- 89% owned subsidiary
Revenue $ 335 $ 14
Total operating expenses(4) $ 3,397 $ 1,841
--------------------------------------------
(1) North American Operations refers to the Company's United States
and Canadian businesses.
(2) Refer to the Company's Annual Report on Form 10-K for discussion
and use of these measures.
(3) International refers to the Company's United Kingdom business.
(4) Operating expenses exclude depreciation and amortization charges.
Consolidated Statements of Operations
and Condensed Balance Sheets
(In thousands, except share and per share data)
(Unaudited)
-------------------------------
Three months ended
-------------------------------
March 31, March 31,
2001 2000
-------------------------------
Statements of Operations
Revenue $27,528 $21,038
Expenses
Direct operating 12,878 10,422
Regional sales and marketing 370 493
Product research and development 2,088 1,732
Selling, general and administrative 7,146 5,057
Depreciation and amortization 7,751 6,166
-------------------------------
Loss from operations (2,705) (2,832)
Other income (expense)
Interest income 267 558
Interest expense (2,080) (1,980)
Other 1 63
-------------------------------
Loss before minority interest (4,517) (4,191)
Minority interest related to
convertible preferred stock 481 250
-------------------------------
Net loss $(4,036) $(3,941)
===============================
Net loss per share,
basic and diluted $(0.20) $(0.20)
Weighted shares outstanding,
basic and diluted 20,502 20,193
====================================================================
March 31, December 31,
2001 2000
-------------------------------
Balance Sheets
Assets
Current assets
Cash and cash equivalents $77,797 $78,674
Prepaid expenses and other
current assets 2,213 2,886
--------------------------
Total current assets 80,010 81,560
Property and equipment, net 67,475 69,901
Other assets 5,699 6,327
--------------------------
Total assets $153,184 $157,788
=========== ============
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable $2,908 $4,883
Accrued liabilities 51,528 51,494
Current portion of long-term
obligations 929 921
--------------------------
Total current liabilities 55,365 57,298
Long-term obligations 61,815 61,815
Minority interest related to
convertible preferred stock 3,352 3,833
Total stockholders' equity 32,652 34,842
--------------------------
Total liabilities and
stockholders' equity $153,184 $157,788
=========== ============
Coinstar North American Operations(1)
Selected Quarterly Financial Data
(In thousands, except per share and unit data)
(Unaudited)
--------------------------------------------------
Three Months Ended
--------------------------------------------------
Mar. 31, June 30, Sept. 30, Dec. 31, Mar. 31,
1999 1999 1999 1999 2000
--------------------------------------------------
Number of new
Coinstar units
installed 421 546 668 495 430
Installed base of
Coinstar units at
end of period 5,234 5,780 6,448 6,934 7,373
Designated marketing
areas 92 97 102 104 106
Average age of
network (months) 19.0 19.8 20.3 21.4 22.9
Average units
installed 4,968 5,468 6,130 6,709 7,146
Dollar volume of
coins processed $177,401 $204,864 $243,550 $245,703 $235,594
Revenue $15,790 $18,235 $21,679 $21,871 $20,972
Annualized revenue
per average
installed unit $12,715 $13,339 $14,146 $13,041 $11,740
Direct contribution(2) $7,869 $9,100 $10,936 $10,973 $10,638
Direct contribution
margin (%) 49.8% 49.9% 50.4% 50.2% 50.7%
Annualized direct
contribution per
average installed
unit $6,336 $6,657 $7,136 $6,543 $5,955
Regional sales and
marketing $1,319 $1,013 $1,293 $2,756 $493
Research and
development $779 $838 $1,643 $919 $751
Selling, general and
administrative $3,190 $3,185 $3,100 $3,172 $4,077
EBITDA(2) $2,581 $4,064 $4,900 $4,126 $5,317
EBITDA margin (%) 16% 22% 23% 19% 25%
Depreciation and
amortization $4,103 $4,483 $5,570 $5,588 $5,786
Non-cash stock-based
compensation --- --- --- --- ---
Interest and other
expense, net $2,584 $2,765 $2,617 $4,737 $1,196
Net income (loss) $(4,106) $(3,184) $(3,287) $(6,199) $(1,665)
Net income (loss)
per share, basic
and diluted $(0.27) $(0.20) $(0.16) $(0.31) $(0.08)
----------------------------------------
(1) North American Operations refers to the Company's United States
and Canadian businesses.
(2) Refer to the Company's Annual Report on Form 10-K for discussion
and use of these measures.
Coinstar North American Operations(1)
Selected Quarterly Financial Data
(In thousands, except per share and unit data)
(Unaudited)
--------------------------------------------------
Three Months Ended
--------------------------------------------------
June 30, Sept. 30, Dec. 31, Mar. 31,
2000 2000 2000 2001
--------------------------------------------------
Number of new
Coinstar units
installed 337 359 413 95
Installed base of
Coinstar units at
end of period 7,710 8,069 8,482 8,577
Designated marketing
areas 110 118 122 123
Average age of
network (months) 24.5 26.2 27.6 29.7
Average units
installed 7,510 7,878 8,288 8,521
Dollar volume of
coins processed $276,073 $320,655 $315,715 $303,799
Revenue $24,576 $28,546 $28,107 $27,130
Annualized revenue
per average
installed unit $13,091 $14,495 $13,565 $12,696
Direct contribution(2) $12,890 $15,569 $15,195 $14,373
Direct contribution
margin (%) 52.4% 54.5% 54.1% 53.0%
Annualized direct
contribution per
average installed
unit $6,866 $7,906 $7,333 $6,747
Regional sales and
marketing $3,567 $4,906 $2,402 $377
Research and
development $804 $825 $886 $915
Selling, general and
administrative $3,993 $4,281 $4,789 $4,942
EBITDA(2) $4,526 $5,557 $7,118 $8,139
EBITDA margin (%) 18% 19% 25% 30%
Depreciation and
amortization $6,021 $6,017 $6,635 $6,763
Non-cash stock-based
compensation --- --- $505 ---
Interest and other
expense, net $1,423 $1,389 $1,655 $1,365
Net income (loss) $(2,918) $(1,849) $(1,677) $11
Net income (loss)
per share, basic
and diluted $(0.14) $(0.09) $(0.08) $0.00
-------------------------
(1) North American Operations refers to the Company's United States
and Canadian businesses.
(2) Refer to the Company's Annual Report on Form 10-K for discussion
and use of these measures.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion