This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Outerwall Inc. Provides Updated Q3 And FY 2013 Guidance

Stocks in this article: OUTR

BELLEVUE, Wash., Sept. 16, 2013 /PRNewswire/ -- Outerwall Inc. (Nasdaq: OUTR), formerly Coinstar, Inc., today provided an update on its financial guidance for the third quarter and full year 2013.

(Logo: http://photos.prnewswire.com/prnh/20130701/AQ41388LOGO)

Based on preliminary results through the end of August and the Company's outlook for September, Outerwall now expects the following:

For the third quarter 2013*:

  • Consolidated revenue between $569 and $589 million, compared to prior estimates of $604 to $630 million;
  • Core adjusted EBITDA between $101 and $109 million, compared to prior estimates of $129 to $139 million; and
  • Core diluted EPS between $0.82 and $0.94, compared to prior estimates of $1.36 to $1.51.

For the full year 2013*:

  • Consolidated revenue between $2.274 and $2.339 billion, compared to prior estimates of $2.372 to $2.475 billion;
  • Core adjusted EBITDA of $451 to $471 million, compared to prior estimates of $507 to $538 million;
  • Core diluted EPS between $4.72 and $5.12, compared to prior estimates of $5.76 to $6.26; and    
  • Free cash flow of $170 to $188 million, compared to prior estimates of $211 to $227 million, due to lower operating results offset by a reduction in capital expenditures.

*See Appendix A for non-GAAP financial measures.

"Although both rentals and revenue for Redbox increased significantly in July and August over 2012 levels, they were not to our expectations.  In addition, heightened promotional discount activity, which added new customers during the quarter, had an adverse impact on the expected average transaction size and we believe drove consumers toward more single night rentals," said J. Scott Di Valerio, chief executive officer of Outerwall Inc.  "We continue to adjust our Redbox promotional strategy, including a lower level of overall promotion, to better align with anticipated consumer trends, and are also reducing our content and direct operating costs."    

Di Valerio continued, "We remain focused on driving profitable growth, maximizing free cash flow and allocating capital to the highest return opportunities.  To this end, we are accelerating our full review of our New Ventures initiatives, excluding ecoATM, to ensure they provide the appropriate level of risk adjusted returns.  In addition, we are committed to returning a significant portion of free cash flow to shareholders and plan to repurchase an additional $100 million of common stock after the trading window opens in the fourth quarter."  

Redbox Update

Rentals for July and August grew year over year 13.4% and 15.7% respectively, with July representing Redbox's best rental month in its history, with approximately 74 million rentals.  Redbox continues to expect both rentals and revenue per kiosk to increase compared to comparable periods in 2012.  In addition, unique credit and debit cards used in July and August increased 11% year over year, while rental frequency improved in July and August compared to the same periods in 2012.    

1 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs