Seeking Alpha

Outerwall flies after results, guidance, Redbox hire

  • Redbox gets a new president with the addition of Mark Horak, most recently president of the Americas at Warner Bros. Home Entertainment.
  • Press release
  • After completing $100M in share repurchases during Q4, company tomorrow plans to launch a $350M Dutch auction tender offer for more stock. The auction is expected to brgin with a price range based on a 5-20% premium to today's close of $63.64.The repurchase authorization last week was lifted to $650M from $500M.
  • Turning to Q4 operations, Redbox revenue of $496.4M up 1.7% from a year ago. Operating income of $111.3M up 39.2%. Gross margin of 58.5% up 460 basis points.
  • Coinstar revenue of $80.7M up 8.4%, with same store sales up 5.9%. Operating income of $30.8M up 17.2%.
  • New Ventures revenue of $16.6M up from $300K a year ago, thanks to ecoATM acquisition.
  • Free cash flow of $142.6M compares to $77.3M a year ago.
  • FY2014 core EPS guidance of $5.16-$5.76 on revenue of $2.358B-$2.498B. Free cash flow between $200M-$240M compares to $166.4M in 2013.
  • Press release, Q4 results
  • CC at 5 ET
  • OUTR +9.6% AH
Comments (2)
  • pat45
    , contributor
    Comments (292) | Send Message
     
    I am so putting my stock into the tender. Can I sell OUTR if it drops while I have it in tender or does that lock the shares?
    6 Feb, 05:26 PM Reply Like
  • Joseph Poma
    , contributor
    Comments (437) | Send Message
     
    LOL...Jim Chanos cover his shorts yet? Guy tought the DVD was going to die, and maybe it will, but not for another 5 - 10 years at least.
    10 Feb, 09:11 AM Reply Like
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