Coinstar Reports Record Revenue, Direct Contribution and Cash Flow for the First Quarter.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 27, 1999-- 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 record results for the first quarter ended March 31, 1999. Coinstar reported record revenue of $15.8 million for the first quarter of 1999, an increase of 79% from $8.8 million for the same period of 1998. The significant growth in revenue was primarily the result of increased customer use of Coinstar's coin processing units, continued expansion of Coinstar's network and an increase in its service fee. For the first quarter, Coinstar's earnings before interest, tax, depreciation and amortization (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 ) was a record $2.2 million or 14% of revenue, up $4.8 million from a loss of $2.6 million for the first quarter of 1998 and up 43% from $1.6 million or 10% of revenue in the previous quarter. The significant improvement in EBITDA was the result of revenue growth, continued improvement in 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. and efficiencies gained from investments made in Coinstar's network and back-office infrastructure. In the quarter, the Company also achieved a record direct contribution of $7.9 million or 50% of revenue, up 163% from $3.0 million or 34% of revenue for the first quarter of 1998. The growth in direct contribution, defined as revenue less direct operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , can be primarily attributed to continued revenue growth, as well as continued improvements in Coinstar's operating leverage. The Company's positive EBITDA was offset by non-cash items such as depreciation, amortization and interest expense. For the first quarter, the net loss was $4.5 million or $.30 per share, compared to a net loss of $7.4 million or $0.49 per share for the first quarter of 1998. During the quarter, the Company installed 428 units, resulting in 5,241 units in operation as of March 31, 1999, a 48% increase compared to 3,531 units at the end of the first quarter of 1998. The Coinstar network processed coins worth a total of $177.2 million during the first quarter, up from $117.3 million in the same period of 1998. To date, the network has processed over $1.2 billion. Coinstar expanded its network during the first quarter, resulting in a presence in 64 regional markets, up from 42 at the end of the first quarter of 1998. This expansion added 31 new retail distribution partners, bringing the total to 149 partners at the end of March, 1999. The Company's expansion included new installations in Safeway Safeway is a brand name used by several companies around the world: Supermarket chains
Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. and Albertson's stores in Idaho Idaho (ī`dəhō), one of the Rocky Mt. states in the NW United States. It is bordered by Montana and Wyoming (E), Utah and Nevada (S), Oregon and Washington (W), and the Canadian province of British Columbia (N). , Texas and Louisiana Louisiana (ləwē'zēăn`ə, l ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. , as well as the two leading British supermarket supermarketLarge retail store operated on a self-service basis, selling groceries, produce, meat, bakery and dairy products, and sometimes nonfood goods. Supermarkets were first established in the U.S. during the 1930s as no-frills retail stores offering low prices. chains, Sainsbury's and Tesco, the first Coinstar installs outside 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. . "We are very pleased with our record operating performance in the first quarter, which historically has been our weakest quarter of the year," said Jens JENS Japan Enhanced Network Services Molbak, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Coinstar, Inc. "Our contribution margin and EBITDA continued to improve and revenue growth continued to exceed the growth of installed units." "This was another exciting quarter for us. We continued to grow the network, surpassing 5,000 total installations, including expansion with Safeway and Albertson's and extending our network into the European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. marketplace. Our partnerships with Sainsbury's and Tesco, two premier supermarkets Supermarkets, past and present, include: Transnational Originating (HQ) country first. The rest in alphabetical order.
"In addition, we unveiled the Coinstar Shopper(tm) prototype Prototype A first or original model of hardware or software. Prototyping involves the production of functionally useful and trustworthy systems through experimentation with evolving systems. , a multifunction in-store 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 service designed to help consumers save time and money at the grocery store, and help grocery retailers increase customer loyalty by Turning web traffic into store traffic(tm). Coinstar continues to explore new ways to leverage our intelligent network and better service our customers." Coinstar Inc. and its subsidiaries provide consumers and retailers with value-added services A value-added service (VAS) is a telecommunications industry term for non-core services or, in short, all services beyond standard voice calls and fax transmissions. that increase customer loyalty and retailer profitability. The Coinstar network currently delivers the company's self-service coin counting product to more than 5,300 leading supermarkets in 38 U.S. States A U.S. state is any one of the fifty subnational entities of the United States, although four states use the official title "commonwealth". The separate state governments and the federal government share sovereignty, in that an American is a citizen both of the federal entity and , the United Kingdom and 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 . The company's new Coinstar shopper product is designed to bridge the gap between the Internet and the store. Coinstar has 301 full-time full-time adj. Employed for or involving a standard number of hours of working time: a full-time administrative assistant. full employees and is headquartered in Bellevue, Washington Bellevue is a rapidly growing city in King County, Washington, U.S., across Lake Washington from Seattle. Long known as a suburb or satellite city of Seattle,[1] it is now categorized as an edge city or a boomburb. . Consumers can call 1-800-928-CASH, or visit http://www.coinstar.com for the location of the nearest Coinstar machine. In addition to historical information contained herein, this news 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. that involve risks and uncertainties. The Company's future actual results could differ materially from the forward-looking statements discussed herein. Factors that could cause or contribute to such differences include, but are not limited to, success in the timely deployment of a substantial number of additional Coinstar units, consumer awareness and demand for the Company's coin processing service, success in expanding its network and managing its growth and the Company's ability to protect its patents and proprietary rights as well as other risks discussed under "Risk Factors" included in the Company's Registration Statement, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , on Form S-1 (NO. 333-26843), Registration Statement, as amended, on Form S-4 (NO. 333-33233), the Company's 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. and the Company's other reports filed with the Securities and Exchange Commission. (Tables to follow) -0-
Coinstar, Inc.
Selected Financial and Other Data
(Dollars In thousands, except per share and per unit data)
Three months ended
------------ -----------
Mar. 31 Mar. 31
------------- ---------
1999 1998
Statement of Operations Data:
Revenue $ 15,791 $ 8,823
Expenses
Direct operating 7,939 5,823
Regional sales and marketing 1,318 917
Product research and development 940 1,410
Selling, general and administrative 3,381 3,276
Depreciation and amortization 4,102 2,813
Loss from operations (1,889) (5,416)
Other income (expense)
Interest income 163 501
Interest expense (2,850) (2,571)
Other Income 42 39
Net loss $ (4,534) $ (7,447)
Net Loss per share, basic and diluted ($ .30) ($ 0.49)
Weighted shares outstanding,
basic and diluted 15,358 15,080
Other Data:
Number of new Coinstar units
installed in period 428 327
Installed base of Coinstar units
at end of period 5,241 3,531
Number of regional markets 64 42
Dollar volume of coins processed $ 177,248 $ 117,298
Capital expenditures $ 4,987 $ 4,736
Direct contribution/1 $ 7,852 $ 3,000
EBITDA/1 $ 2,213 ($ 2,603)
International development costs/3 $ 275 $ 28
Annualized revenue per average
installed unit/3 $ 12,699 $ 10,597
Annualized direct contribution
per average installed unit/2 $ 6,331 $ 3,601
Average units installed 4,969 3,331
Average age of network
for the period (months) 19.2 13.4
(1) Refer to the Company's Annual Report on form 10-K for
discussion and use of these measures.
(2) Based on actual quarterly results annualized divided by the
monthly averages of units in operation over the applicable period.
(3) International development costs incurred by Coinstar
International related to the exploration of the international
expansion.
Coinstar, Inc.
Balance Sheets
(Unaudited)
March 31, March 31,
1999 1998
Assets
Current Assets:
Cash and cash equivalents $ 37,865 $ 17,058
Short term investments
available for sale 2,099 31,968
Prepaid expenses and other
current assets 1,582 1,110
-------- --------
Total current assets 41,546 50,136
Property and equipment, net 54,676 45,117
Other assets 3,063 2,690
-------- --------
Total $ 99,285 $ 97,943
========
88,163 79,472
Total stockholders' (deficit) (23,073) (3,907)
-------- --------
Total er unit data)
Three Months Ended
-------------------------------------------------------------
June Sep Dec Mar June Sep Dec Mar
30, 30, 31, 31, 30, 30, 31, 31,
1997 1997 1997 1998 1998 1998 1998 1999
Number
of new
Coinstar
units
installed in
period talled
Base of
Coinstar
units at
end of
unit 9,939 12,284 10,907 10,597 11,195 % 50% 50%
Annualized
direct
contribution
per average
installed
unit 2,494 3,935 3,768 3,601 4,568 6,021 6,405 6,331
EBITDA
/1 (3,914) (2,618) (2,836) (2,603) (1,579) 1,107 1,550 2,213
As a
percent
of
revenue(74%) (34%) (36%) (30%) (15%) 8% 10% 14%
Depreciation
and
Amorti-
zation 2,158 2,297 2,539 2,813 3,120 3,635 3,669 4,102
Interest
(Income)
Expense,
Other
Income
net 1,975 1,789 1,966 2,031 2,211 2,426 2,543 2,645
Net
Loss (8,047) (6,704) (7,341) (7,447) (6,910) (4,954) (4,662) (4,534)
As
percent
of
rev-
enue (152%) (86%) (92%) (84%) (66%) (36%) (31%) (29%)
(1) Refer to the Company's Annual Report on form 10-K for discussion and use of these measures. |
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