Coinstar Reports Second Quarter 2001 EBITDA Growth of 83 Percent On Revenue Growth of 26 Percent for Core Business; Raises Full Year Guidance.Business Editors, High-Tech high-tech also hi-tech adj. Informal Of, relating to, or resembling high technology. high-tech Adjective same as hi-tech Adj. 1. 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.--August 2, 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 June June: see month. 30, 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 $31.0 million in the second quarter of 2001, an increase of 26.3 percent from the second quarter of 2000. Direct contribution increased 35.5 percent year-over-year to $17.5 million. The direct contribution margin expanded to 56.3 percent in the second quarter of 2001 from 52.4 percent in the second 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 a net loss before discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of $7,000, 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, from the North American core business, compared to a net loss of $2.9 million, or $0.14 per share, in the same period last year. For the second quarter of 2001, the North American core business generated free cash flow (defined as EBITDA less capital expenditures and net interest expense) of $3.9 million. "Continued strong volumes enabled us to leverage our operating costs operating costs npl → gastos mpl operacionales , driving exceptional EBITDA growth," 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. "We plan to maintain our growth momentum through advertising and promotions that drive new usage, installing new machines -- domestically and in the United Kingdom -- and offering new products that leverage the Coinstar network," 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. Key Developments Key developments for the second quarter include the successful launch of Coinstar's prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. 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 pilot. During the quarter,
Coinstar began selling prepaid MasterCards through five of its machines,
making Coinstar the only self-service machine to distribute a major cash
card.On the promotions front, Coinstar will participate in a Valassis and PAX-TV sweepstakes sweepstakes, contest or race, usually a horse race, on which a lottery is run. Prizes are awarded to the holders of winning tickets. In the case of a horse race, the draw is made from the names of all the horses entered in the race and vast numbers of blanks. called "Chance of a Lifetime", which will take place in the third quarter. This promotion will give Coinstar customers the chance to win free groceries gro·cer·y n. pl. gro·cer·ies 1. A store selling foodstuffs and various household supplies. 2. groceries Commodities sold by a grocer. for a year. It will be supported by a national newspaper insert reaching 47 million Americans, dozens of PAX-TV promotional spots, and in-store media. Coinstar also plans to unveil its "instant win" functionality in the third quarter, creating another way to drive traffic to the Coinstar machine, independent of coin processing. Initially, in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. with Nature's Own Beverage, consumers can instantly determine prizes by entering the number found on the beverage's bottle top at a Coinstar machine. "We envision this becoming an important promotional tool with national applications," said Stillman. North American Core Business Outlook For the third quarter of 2001, Coinstar expects revenues for its core business of $33 to $35 million. It also expects to generate a direct contribution margin of 56 to 57 percent and EBITDA growth of 70 to 80 percent, compared with the third quarter of 2000, yielding net income of $1 to $1.5 million. For the second time this year, Coinstar is raising its full-year guidance for its core business. The company expects 2001 revenues of $123 to $126 million, direct contribution of $68 to $70 million, EBITDA of $34 to $36 million, and net income of $1 to $2.5 million. These forecasts translate (1) To change one language into another; for example, assemblers, compilers and interpreters translate source language into machine language. (2) In computer graphics, to move an image on screen without rotating it. to EBITDA growth of 51 to 60 percent on revenue growth of 20 to 23 percent for 2001. SUBSIDIARY OPERATIONS Coinstar International. On May 1, Coinstar announced plans to roll out its service in the U.K. with Asda Stores and Sainsbury's Supermarkets Supermarkets, past and present, include: Transnational Originating (HQ) country first. The rest in alphabetical order.
2. n. 1. Chamber; house; - used in ( ) r>, and ( ) r>. See Legislature. , managing director of Coinstar Ltd. Meals.com. Meals.com was unable to raise additional funds to continue operations. In preparation for the sale of Meals' product lines and an orderly orderly /or·der·ly/ (or´der-le) an attendant in a hospital who works under the direction of a nurse. or·der·ly n. An attendant in a hospital. exit from the business, Coinstar repurchased all outstanding Meals.com securities held by the minority stockholders. The results of Meals.com are appropriately classified as a discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. . 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, Coinstar Inc. reported a net loss of $6.3 million for the second quarter of 2001. The consolidated loss includes the loss from discontinued operations -- which consists of Meals' second quarter loss, all future estimated losses, and the write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of its assets. This compares with a net loss of $5.5 million in the second quarter of 2000. Note: Coinstar will conduct a conference call to discuss second-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 at www.coinstar.com. About Coinstar Inc. Coinstar Inc. 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 8,800 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. 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 press release include statements relating to Coinstar's financial performance during the second half of 2001 and Coinstar's plans to unveil its "instant win" functionality. 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, expenses related to the orderly exit of the Meals.com business, the inability of Coinstar to reach an agreement with 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 and DataWave to effect 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 of prepaid cash cards, the ability to obtain new agreements with potential retail partners for the installation of Coinstar units in North America and the United Kingdom, the successful deployment Installing, setting up, testing and running. This military term, which means the placement of troops and equipment in the field, is widely used with computers as an alternate to the word "implementation. and operation of our coin processing network, and 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. 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.
Coinstar, Inc.
Segment Information
Selected Financial Data
(In thousands, except per share data)
(Unaudited)
-------------------------------------------
Three months ended Six months ended
--------------------- -------------------
June 30, June 30, June 30, June 30,
2001 2000 2001 2000
----------- --------- -------- ----------
North American core business(1)
Revenue $ 31,029 $ 24,576 $ 58,159 $ 45,548
Expenses
Direct operating 13,568 11,686 26,325 22,020
-------- -------- -------- --------
Direct contribution(2) 17,461 12,890 31,834 23,528
Regional sales
and marketing 2,535 3,567 2,912 4,060
Product research
and development 945 804 1,860 1,555
Selling, general
and administrative 5,685 3,993 10,627 8,070
-------- -------- -------- --------
EBITDA(2) 8,296 4,526 16,435 9,843
Depreciation and
amortization 6,483 6,021 13,246 11,807
Non-cash stock-based
compensation 29 -- 29 --
-------- -------- -------- --------
Income (loss) from
operations 1,784 (1,495) 3,160 (1,964)
Other income (expense)
Interest income 217 532 864 1,196
Interest expense (2,080) (2,081) (4,159) (4,061)
Other 72 126 139 246
-------- -------- -------- --------
Net income (loss) before
discontinued operations $ (7) $ (2,918) $ 4 $ (4,583)
======== ======== ======== ========
Net income (loss) per
share before discontinued
operations, basic
and diluted $ 0.00 $ (0.14) $ 0.00 $ (0.23)
Weighted shares outstanding,
basic and diluted 20,721 20,239 20,612 20,216
Other Data
Consolidated capital
expenditures
from continuing
operations $ 3,654 $ 6,948 $ 7,767 $ 12,192
International Operations(3)
Revenue $ 242 $ 150 $ 395 $ 248
Total operating
expenses(4) $ 524 $ 358 $ 778 $ 689
(1) North American core business refers to Coinstar's United
States and Canadian operations.
(2) Refer to Coinstar's Annual Report on Form 10-K for discussion
and use of these measures.
(3) International Operations refers to Coinstar's United Kingdom
operations.
(4) Operating expenses exclude depreciation and amortization
charges.
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,
2001 2000 2001 2000
--------- --------- --------- ---------
Revenue $ 31,245 $ 24,671 $ 58,445 $ 45,695
Expenses
Direct operating 13,798 11,733 26,676 22,155
Regional sales
and marketing 2,501 3,567 2,871 4,060
Product research
and development 989 867 1,986 1,674
Selling, general
and administrative 5,946 4,111 10,914 8,251
Depreciation and
amortization 6,483 6,021 13,246 11,807
-------- -------- -------- --------
Income (loss) from operations 1,528 (1,628) 2,752 (2,252)
Other income (expense)
Interest income 203 335 383 817
Interest expense (2,080) (2,081) (4,159) (4,061)
Other 4 64 4 128
-------- -------- -------- --------
Net loss before minority
interest and discontinued
operations (345) (3,310) (1,020) (5,368)
-------- -------- -------- --------
Discontinued Operations:
Loss from discontinued
operations (2,376) (2,148) (5,737) (4,030)
Loss on disposal of
discontinued operations (3,552) -- (3,552) --
-------- -------- -------- --------
Total loss from
discontinued operations (5,928) (2,148) (9,289) (4,030)
-------- -------- -------- --------
Net loss $ (6,273) $ (5,458) $(10,309) $ (9,398)
======== ========= ========= =========
Net loss per share, basic and diluted:
Continuing operations $ (0.02) $ (0.16) $ (0.05) $ (0.27)
Discontinued operations (0.28) (0.11) (0.45) (0.19)
-------- -------- -------- --------
Net loss per share,
basic and diluted $ (0.30) $ (0.27) $ (0.50) $ (0.46)
======== ========= ========= =========
Weighted shares outstanding,
basic and diluted 20,721 20,239 20,612 20,216
======== ========= ========= =========
Coinstar, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
June 30, December 31,
2001 2000
---------- ------------
Assets
Current assets
Cash and cash equivalents $ 86,445 $ 70,684
Prepaid expenses and other current assets 2,323 1,988
Cash and other assets from
discontinued operations, net 527 7,137
-------- --------
Total current assets 89,295 79,809
Property and equipment, net 63,269 68,332
Other assets 1,475 1,497
Assets from discontinued operations 787 6,399
-------- --------
Total assets $154,826 $156,037
======== ========
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable $ 4,617 $ 4,045
Accrued liabilities 58,303 50,582
Current portion of long-term obligations 944 920
-------- --------
Total current liabilities 63,864 55,547
Long-term obligations 61,723 61,815
Minority interest related to
convertible preferred stock -- 3,833
Total stockholders' equity 29,239 34,842
-------- --------
Total liabilities and
stockholders' equity $154,826 $156,037
======== ========
Coinstar North American Core Business(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, June 30,
1999 1999 1999 2000 2000
-------- --------- -------- -------- --------
Number of new
Coinstar units
installed 546 668 495 430 337
Installed base of
Coinstar units
at end of period 5,780 6,448 6,934 7,373 7,710
Designated marketing
areas 97 102 104 106 110
Average age of
network (months) 19.8 20.3 21.4 22.9 24.5
Average units
installed 5,468 6,130 6,709 7,146 7,510
Dollar volume of
coins processed $204,864 $243,550 $245,703 $235,594 $276,073
Revenue $ 18,235 $ 21,679 $ 21,871 $ 20,972 $ 24,576
Annualized revenue
per average
installed unit $ 13,339 $ 14,146 $ 13,041 $ 11,740 $ 13,091
Direct
contribution(2) $ 9,100 $ 10,936 $ 10,973 $ 10,638 $ 12,890
Direct contribution
margin (%) 49.9% 50.4% 50.2% 50.7% 52.4%
Annualized direct
contribution per
average
installed unit $ 6,657 $ 7,136 $ 6,543 $ 5,955 $ 6,866
Regional sales and
marketing $ 1,013 $ 1,293 $ 2,756 $ 493 $ 3,567
Product research and
development $ 838 $ 1,643 $ 919 $ 751 $ 804
Selling, general and
administrative $ 3,185 $ 3,100 $ 3,172 $ 4,077 $ 3,993
EBITDA(2) $ 4,064 $ 4,900 $ 4,126 $ 5,317 $ 4,526
EBITDA margin (%) 22% 23% 19% 25% 18%
Depreciation and
amortization $ 4,483 $ 5,570 $ 5,588 $ 5,786 $ 6,021
Non-cash stock-based
compensation -- -- -- -- --
Interest and other
expense, net $ 2,765 $ 2,617 $ 4,737 $ 1,196 $ 1,423
Net income (loss) $ (3,184) $ (3,287) $ (6,199) $ (1,665) $ (2,918)
Net income (loss)
per share, basic
and diluted $ (0.20) $ (0.16) $ (0.31) $ (0.08) $ (0.14)
(1) North American core business refers to the Company's United
States and Canadian operations.
(2) Refer to the Company's Annual Report on Form 10-K for
discussion and use of these measures.
Coinstar North American Core Business(1)
Selected Quarterly Financial Data
(In thousands, except per share and unit data)
(Unaudited)
--------------------------------------------
Three months ended
--------------------------------------------
Sept. 30, Dec. 31, Mar. 31, June 30,
2000 2000 2001 2001
--------- --------- --------- ---------
Number of new Coinstar
units installed 359 413 95 193
Installed base of
Coinstar units at
end of period 8,069 8,482 8,577 8,770
Designated marketing
areas 118 122 123 123
Average age of
network (months) 26.2 27.6 29.7 31.9
Average units installed 7,878 8,288 8,521 8,609
Dollar volume of
coins processed $320,655 $315,715 $303,799 $348,255
Revenue $ 28,546 $ 28,107 $ 27,130 $ 31,029
Annualized revenue per
average installed unit $ 14,495 $ 13,565 $ 12,696 $ 14,406
Direct contribution(2) $ 15,569 $ 15,195 $ 14,373 $ 17,461
Direct contribution
margin (%) 54.5% 54.1% 53.0% 56.3%
Annualized direct
contribution per average
installed unit $ 7,906 $ 7,333 $ 6,708 $ 8,102
Regional sales
and marketing $ 4,906 $ 2,402 $ 377 $ 2,535
Product research and
development $ 825 $ 886 $ 915 $ 945
Selling, general and
administrative $ 4,281 $ 4,789 $ 4,942 $ 5,685
EBITDA(2) $ 5,557 $ 7,118 $ 8,139 $ 8,296
EBITDA margin (%) 19% 25% 30% 27%
Depreciation and
amortization $ 6,017 $ 6,635 $ 6,763 $ 6,483
Non-cash stock-based
compensation -- $ 505 -- $ 29
Interest and other
expense, net $ 1,389 $ 1,655 $ 1,365 $ 1,791
Net income (loss) $ (1,849) $ (1,677) $ 11 $ (7)
Net income (loss)
per share, basic
and diluted $ (0.09) $ (0.08) $ 0.00 $ 0.00
(1) North American core business refers to the Company's United States and Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. operations. (2) Refer to 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. for discussion and use of these measures. |
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