Coinstar Turns Cash Flow Positive On Record Revenue and Direct Contribution Margin Growth for the Third Quarter.BELLEVUE, Wash.--(BUSINESS WIRE)--Oct. 20, 1998--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 third quarter ended September 30, 1998. Coinstar reported record revenue of $13.6 million for the third quarter of 1998, an increase of 74% from $7.8 million for the same period of 1997. For the first nine months of 1998, the Company reported revenue of $32.9 million, up 92% from $17.1 million for the same period of last year. The significant growth in revenue was a result of both increased customer use of Coinstar's coin processing units and continued expansion of Coinstar's network. For the first time since the Company began deploying its network, Coinstar generated positive cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses as measured by 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 ). EBITDA was $1.1 million or 8% of revenue in the third quarter, up 142% from a loss of $2.6 million or 34% of revenue in the same period of 1997. The significant improvement in EBITDA was a result of continued improvement in 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. , including efficiencies gained from investments made in the network and the Company's back office infrastructure. In the quarter, the Company also achieved a record direct contribution of $6.4 million or 47% of revenue, up from $2.5 million or 32% of revenue for the third quarter of 1997. The 156% growth in direct contribution can be attributed to continued revenue growth as well as continued improvements in Coinstar's operating leverage. Direct contribution is 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. . During the quarter, Coinstar installed 405 units. This resulted in 4,437 units in operation as of September 30, 1998, a 62% increase compared to 2,735 units at the end of the third quarter of 1997. The Coinstar network processed coins worth a total of $186.3 million during the third quarter, up from $103.4 million in the same period of 1997. To date, the network has processed over $929.9 million. Coinstar expanded its network into 8 new regional markets during the third quarter, which resulted in a presence in 57 regional markets, up from 35 at the end of the third quarter of 1997. This expansion added 2 new retail distribution partners, bringing the total to 107 partners at the end of June 1998. The Company's expansion included new installations in Kroger Stores in Dallas, Texas “Dallas” redirects here. For other uses, see Dallas (disambiguation). The City of Dallas (pronounced [ˈdæl.əs] or [ˈdæl. ; Stop & Shop supermarkets in Connecticut and Rhode Island Rhode Island, island, United States Rhode Island, island, 15 mi (24 km) long and 5 mi (8 km) wide, S R.I., at the entrance to Narragansett Bay. It is the largest island in the state, with steep cliffs and excellent beaches. ; H.E. Butt stores in San Antonio, Texas “San Antonio” redirects here. For other uses, see San Antonio (disambiguation). San Antonio is the second most populous city in Texas, the third most populous metropolitan area in Texas, and is the seventh most populous city in the United States. As of the 2006 U.S. ; Lucky Stores Lucky Stores is an American grocery chain founded in Alameda County, California in 1935. Lucky is currently operated by Supervalu in Southern California and Nevada and by Save Mart in Northern California. in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, ; and BI-LO stores in various southeastern markets. The Company's positive EBITDA was offset by non-cash items such as depreciation, amortization and interest expense. For the third quarter, the net loss was $5.0 million or $0.33 per share, compared to a net loss of $6.7 million or $0.47 per share for the third quarter of 1997. Thechine to remove dirt and debris from the coins prior to discrimination. The technology is critical for the quick and reliable processing of coins. "In the third quarter we achieved a major milestone for the Company by generating posery day. At the same time, we have improved our operating leverage even faster than anticipated, resulting in a stronger contribution margin and positive operating cash s 270 full-time employees and is headquartered in Bellevue, WA. In addition to historical information contained herein, this news release contains forward-looking sas well as other risks discussed under "Risk Factors" included in the Company's Registration Statement, as ata (In thousands, except per share and other data) Three months ended Nine months ended Sept. 30, Smarketing 930 798 2,701 2,400 Product research and development 867 1,637 3,606 4,717 Selling, general and administrative 3,531 2,669 10,533 7,827 Depreciation and amortizatioer share, basic and diluted ($0.33)lions) 6,435 2,486 13,76 4,275 2,527 3,798 2,119 company uses direct contribution (loss) as a minterest expense, interest income, income taxesure of performance under GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . (3) Based nvestments available for sale 12,664 36,603 Prepaid expenses and other currrent assets 42,425 57----- Total ties 29,161 23,103 Long-term obligations 83,934 77,333 Total stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. (deficit) (15,375) 3,110 -------- -------- Total $97,720 $103,546 ========= ========= |
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