Outerwall (OUTR), formerly Coinstar (CSTR) Message Board

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Non-Tech : Outerwall (OUTR), formerly Coinstar (CSTR)

OUTR 52.00

0.0%

Sep 28 5:00 PM EST

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To: Chuck Martin who wrote (230)	7/15/1999 3:14:00 PM
From: Chuck Martin	Read Replies (1) of 351

CSTR CFO says company should be profitable by 2000. Kirk Collamer, the Coinstar CFO, was interviewed today by Dow Jones Newswires. It's a copyrighted story, so I'll paraphrase it. Collamer said that, based on current projections, Coinstar should be profitable in 2000. "Analysts have us next year showing a net income, and we're currently comfortable with that," Collamer said. He went on to say that while he's comfortable with Wall Street estimates the company will earn a mean of 17 cents a share next year, it will continue to lose money in 1999. On a different note, he said that CSTR's internet strategy is to combine its machines with programs targeted at frequent shoppers at its host stores. Some potential services include coupons, recipes, and internet shopping for items not stocked by the host store. Collamer said that they raised their commission from 7.5% to 8.9% last December, but it's too early too tell how much this affected volumes (it may be 3% to 5%). It looks to me like they are expecting to make up the difference by increasing the number of machines - Chuck M. Collamer says that they are planning on adding 1500-1800 new machines this year. He says that existing markets are still underserved and that the company is eying expansion in the Southeast, including Miami and Orlando. He said margins have increased from 44% in 1998 to 50% at the end of the first quarter. The company's goal is 57%-58%. Pilot programs in Canada and the UK are going well, he said. He expects that margins will be higher overseas. He also sees great potential in Europe when they fully convert to the Euro.

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