Coinstar Announces 74% Growth in Revenue and 308% Improvement in EBITDA On Record Installs for the Second Quarter
BELLEVUE, Wash.--(BUSINESS WIRE)--July 27, 1999--Coinstar Inc. (Nasdaq:CSTR - news), a retail- based coin counting and e-services company, today announced record results for the second quarter ended June 30, 1999.
Coinstar reported record revenue of $18.3 million for the second quarter of 1999, an increase of 74% from $10.5 million for the same period of 1998. For the first six months of 1999, the Company reported revenue of $34.0 million, up 76% from $19.3 million reported for the same period of last year. The significant growth in revenue was primarily the result of increased customer use of Coinstar's coin processing units, continued expansion of Coinstar's network and an increase in its service fee.
For the second quarter of 1999, Coinstar's earnings before interest, tax, depreciation and amortization (EBITDA) was a record $3.3 million or 18% of revenue, up $4.9 million from a loss of $1.6 million for the second quarter of 1998, and up 48% from $2.2 million or 14% of revenue in the previous quarter. The significant improvement in EBITDA was primarily the result of increased revenue and continued improvement in operating leverage and efficiencies gained from investments made in the Coinstar network and back office infrastructure.
For the three months ended June 30, 1999, the Company achieved a record direct contribution of $9.1 million or 50% of revenue, up 112% from $4.3 million or 41% of revenue for the second quarter of 1998. The growth in direct contribution, defined as revenue less direct operating expenses, can be primarily attributed to increased revenue as well as continued improvements in Coinstar's operating leverage.
The Company's positive EBITDA was offset by non-cash items such as depreciation, amortization and interest expense. For the second quarter of 1999, the net loss was $4.1 million or $0.26 per share, compared to a net loss of $6.9 million or $0.46 per share for the same period a year ago. For the first six months of 1999, the net loss was $8.7 million or $0.56 per share, compared to a loss of $14.4 million or $0.95 per share for the same period of last year.
During the second quarter, the Company installed 547 units, an all-time record, resulting in 5,788 units in operation as of June 30, 1999, a 44% increase compared to 4,032 units in operation at the end of the second quarter of 1998. For the three months ended June 30, 1999 the Coinstar network processed coins worth a total of $205 million, up from $139 million in the same period of 1998. To date, the network has processed approximately $1.5 billion.
Coinstar, Inc.
Selected Financial and Other Data
(Dollars In thousands, except per share and per unit data)
Three months ended Six months ended
-------------------------------------
June 30, June 30 June 30, June 30,
-------------------------------------
1999 1998 1999 1998
Statement of Operations Data:
Revenue $18,258 $10,472 $34,049 $ 19,295
Expenses
Direct operating 9,176 6,142 17,114 11,966
Regional sales and marketing 1,012 854 2,331 1,771
Product research and
development 1,155 1,329 2,095 2,739
Selling, general and
administrative 3,628 3,726 7,009 7,002
Depreciation and amortization 4,580 3,120 8,682 5,933
Loss from operations (1,293) (4,699) (3,182) (10,116)
Other income (expense)
Interest income 118 386 280 887
Interest expense (2,993) (2,661) (5,844) (5,231)
Other 19 64 62 103
Net loss $(4,149) $(6,910) $(8,684) $(14,357)
Net Loss per share, basic and
diluted $ (0.26) $ (0.46) $ (0.56) $ (0.95)
Weighted shares outstanding,
basic and diluted 15,852 15,116 15,607 15,098
Other Data:
Number of new Coinstar units
installed in period 547 501 975 828
Installed base of Coinstar units
at end of period 5,788 4,032 5,788 4,032
Number of regional markets 74 49 74 49
Dollar volume of coins
processed (millions) $ 205.1 $ 139.2 $ 382.6 $ 256.7
Capital expenditures (millions)$ 8.4 $ 6.7 $ 13.4 $ 11.4
Direct contribution (millions) $ 9.1 $ 4.3 $ 16.9 $ 7.3
EBITDA(1) (millions) $ 3.3 $ (1.6) $ 5.5 $ (4.2)
International development
costs(1) (thousands) $ 406.3 $ 240.8 $ 681.4 $ 268.7
Internet development costs
(thousands) $ 312.8 $ 377.2
Annualized revenue per average
installed unit(2) $13,343 $11,048(3) $13,047 $ 10,837
Annualized direct contribution
per average installed unit(2) $ 6,637 $ 4,568 $ 6,498 $ 4,116
Average units installed 5,474 3,792 5,219 3,561
Average age of network for the
period (months) 20.0 14.8 19.6 14.1
1 Refer to the Company's Annual Report on 10-K for discussion and
use of these measures.
2 Based on actual quarterly results annualized divided by the
monthly averages of units in operation over the applicable
period.
Coinstar, Inc.
Condensed Balance Sheets
(Dollars in thousands, except per share and per unit data)
(Unaudited)
June 30, December 31,
1999 1998
Assets
Current Assets:
Cash and cash equivalents $117,249 $37,688
Short term investments available for sale 5,821 4,183
Prepaid expenses and other current assets 1,525 1,043
-------- -------
Total current assets 124,595 42,914
Property and equipment, net 58,893 53,350
Other assets 3,727 2,569
-------- -------
Total $187,215 $98,833
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Liabilities and Stockholders' Equity (Deficit)
Current Liabilities:
Accounts payable $ 4,724 $ 3,828
Accrued liabilities 32,658 26,987
Current portion of long-term debt 1,443 2,021
-------- -------
Total current liabilities 38,825 32,836
Long-term obligations 91,120 86,036
Total stockholders' equity (deficit) 57,270 (20,039)
Total $187,215 $98,833
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Coinstar, Inc.
Selected Quarterly Financial Data
(Dollars in thousands except per unit data)
Three Months Ended
------------------------------------------------
Sept. 30, Dec. 31, March 31, June 30,
1997 1997 1998 1998
Number of new Coinstar
units installed in
period 400 469 327 501
Installed Base of
Coinstar units at end
of period 2,735 3,204 3,531 4,032
Average age of network
for the period
(months) 10.6 11.7 13.4 14.8
Dollar volume of coins
processed $ 103,442 $ 105,692 $ 117,298 $ 139,227
Revenue $ 7,762 $ 7,957 $ 8,823 $ 10,472
Annualized revenue per
average installed
unit $ 12,284 $ 10,907 $ 10,597 $ 11,048(2)
Direct Contribution $ 2,486 $ 2,749 $ 3,000 $ 4,330
Direct Contribution
Margin(%) 32% 35% 34% 41%
Annualized direct
contribution per
average installed
unit $ 3,935 $ 3,768 $ 3,601 $ 4,568
EBITDA(1) $ (2,618) $ (2,836) $ (2,603) $ (1,579)
As a percent of
revenue (34%) (36%) (30%) (15%)
Depreciation and
Amortization $ 2,297 $ 2,539 $ 2,813 $ 3,120
Interest Expense, net $ 1,789 $ 1,966 $ 2,031 $ 2,211
Net Loss $ (6,704) $ (7,341) $ (7,447) $ (6,910)
As percent of
revenue (86%) (92%) (84%) (66%)
Three Months Ended
------------------------------------------------
Sept. 30, Dec. 31, March 31, June 30,
1998 1998 1999 1999
Number of new Coinstar
units installed in
period 405 376 428 547
Installed Base of
Coinstar units at end
of period 4,437 4,813 5,241 5,788
Average age of network
for the period
(months) 15.8 17.5 19.2 20.0
Dollar volume of coins
processed $ 180,600 $ 186,166 $ 177,248 $ 205,143
Revenue $ 13,576 $ 14,802 $ 15,791 $ 18,258
Annualized revenue per
average installed
unit $ 12,703 $ 12,937 $ 12,721(2) $ 13,343
Direct Contribution $ 6,435 $ 7,344 $ 7,852 $ 9,082
Direct Contribution
Margin(%) 47% 50% 50% 50%
Annualized direct
contribution per
average installed
unit $ 6,021 $ 6,405 $ 6,331 $ 6,637
EBITDA(1) $ 1,107 $ 1,550 $ 2,213 $ 3,286
As a percent of
revenue 8% 10% 14% 18%
Depreciation and
Amortization $ 3,635 $ 3,669 $ 4,102 $ 4,580
Interest Expense, net $ 2,426 $ 2,543 $ 2,645 $ 2,856
Net Loss $ (4,954) $ (4,662) $ (4,534) $ (4,149)
As percent of
revenue (36%) (31%) (29%) (23%)
(1) Refer to the Company's Annual Report on form 10-K for discussion
and use of these measures.
(2) Restated from previously released data.
(3) Restated from previously released data.
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Contact:
Coinstar, Inc.
Kirk Collamer, 425/943-8220
or
Cathy Corley, 425/943-8242
Tuesday July 27, 4:16 pm Eastern Time
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