Redbox gets a new president with the addition of Mark Horak, most recently president of the Americas at Warner Bros. Home Entertainment.
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
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