* Coinstar Announces Record Revenue and Direct Contribution for the Third
Quarter
1349 Words
10315 Characters
10/28/97
16:17
Business Wire
(Copyright (c) 1997, Business Wire)
* BELLEVUE, Wash.--(BUSINESS WIRE)--Oct. 28, 1997--Coinstar, Inc.
(NASDAQ:CSTR) today announced its results for the quarter ended September 30,
1997.
* For the third quarter of 1997, Coinstar reported revenue of $7.8 million, an
increase of 174% from $2.8 million in revenue for the third quarter of 1996.
* For the first nine months of 1997, Coinstar reported revenue of $17.1 million,
up from $5.0 million in revenue for the same period of 1996.
The significant growth in revenue was a result of both increased customer
* use of Coinstar's coin processing units and expansion of Coinstar's network.
As of September 30, 1997, the Company had 2,735 units in operation, an
increase of 126% from 1,209 units in operation as of September 30, 1996.
* During the quarter, Coinstar expanded its network into two new regional
markets, which resulted in a presence in 35 regional markets, up from 22 as of
September 30, 1996. The Company's expansion during the quarter included
installations in Dominicks Finer Foods in Chicago, Stater Brothers in Southern
California, Kash N' Karry in Tampa and Acme Markets in Philadelphia under the
new agreement with American Stores Company.
* While Coinstar continues to install new coin processing units, the average
age of the units in service increased to 11 months for the third quarter, up
from approximately six months at the same time in 1996. For the quarter, the
* Coinstar network processed coins worth a total of $103.4 million, up from
$37.6 million in the third quarter of 1996. For the third quarter of 1997,
the average revenue per unit on an annualized basis was $12,284 compared to
$11,021 for the same period in 1996.
In general, coin processing volumes per unit have increased with the length
of time that a unit is in operation. Unit volumes may also be affected by
other factors, including public relations, advertising and other promotional
activities, as well as variations in consumer traffic in the stores and
seasonality.
As a result of increased customer usage, growth in coin processing volumes
and improved operating leverage, the Company's direct contribution margin
improved to $2.5 million or 32% of total revenue, up from $720,000 or 25% for
the third quarter of 1996.
For the third quarter, the net loss was $6.7 million or $0.47 per share,
compared to a net loss of $3.5 million or $0.34 per share for the same period
of 1996. The net loss for the first nine months was $22.3 million or $1.96
per share, compared to a net loss of $8.9 million or $0.85 per share for the
same period of the previous year. The Company's losses reflect increased
expenditures for its network operations and infrastructure to support its
growth, as well as the growth of its sales and marketing efforts, and
increased depreciation and non-cash interest expense.
"We are pleased with our growth and continuing improvement in operating
performance during the third quarter," said Jens Molbak, President and Chief
Executive Officer. "We are also encouraged that the longer our network is in
* operation, consumer awareness of Coinstar grows stronger and use of our
service increases. While consumer awareness is still low, our increased
penetration of the top 100 metropolitan areas and focused marketing efforts
have been effective.
"We continue to have strong demand and support from our supermarket
partners. We have also begun initial installations in new channels of
distribution, such as financial institutions and mass merchandisers."
"Increased customer utilization, along with improved operating efficiencies,
has strengthened our overall operating leverage and cash flow from
operations," said Kirk Collamer, Vice President and Chief Financial Officer.
"Over half of our net loss is generated from non-cash items such as
depreciation and interest expense. With over $50 million in cash on hand and
short-term investments as of September 30, 1997, we are in a strong financial
* position to continue to expand the Coinstar network."
* Coinstar develops, owns and operates a network of automated, self-service
coin counting and processing machines that provide consumers with a convenient
means to convert loose coins into cash. The Company currently has over 2,800
* units operating in supermarkets throughout the U.S. Coinstar has 295
employees and is headquartered in Bellevue, WA.
In addition to historical information contained herein, this news release
contains forward-looking statements that involve risks and uncertainties. The
Company's future actual results could differ materially from the
forward-looking statements discussed herein. Factors that could cause or
contribute to such differences include, but are not limited to, success in the
* timely deployment of a substantial number of additional Coinstar units,
consumer awareness and demand for the Company's coin processing service,
success in expanding its network and managing its growth and the Company's
ability to protect its patents and proprietary rights as well as other risks
discussed under "Risk Factors" included in the Company's Registration
Statement on form S-1 (No. 333-26843).
* Coinstar, Inc.
Selected Financial and Other Data
(in thousands except for per share and other data)
Three months ended Nine months ended
Sept. 30, Sept. 30,
1997 1996 1997 1996
Statement of Operations Data:
Revenue $ 7,762 $ 2,830 $17,051 $ 4,963
Expenses
Direct Operating 5,276 2,110 12,691 4,318
Regional sales
and marketing 798 396 2,400 1,010
Product research and
development 1,637 1,014 4,717 2,436
Selling, general
and administrative 2,669 1,425 7,827 3,365
Depreciation and
amortization 2,297 1,098 6,140 2,393
Loss from operations (4,915) (3,213) (16,724) (8,559)
Other income (expense)
Interest income 710 22 1,730 277
Interest expense (2,499) (335) (7,258) (590)
Net Loss (6,704) (3,526) (22,252) (8,872)
Net Loss per share(1) ($0.47) ($0.34) ($1.96) ($0.85)
Weighted shares
outstanding 14,200 10,460 11,371 10,460
Other Data:
* Number of new Coinstar
units installed in
period 400 413 1,235 946
Installed base of
* Coinstar units at end
of period 2,735 1,209 2,735 1,209
Number of regional
markets 35 22 35 22
Dollar volume of coins
processed
(thousands) $103,442 $37,637 $226,842 $70,635
Capital expenditures
(thousands) 8,040 5,493 23,432 15,144
Direct contribution
(thousands)(2) 2,486 720 4,359 645
Annualized revenue
per average installed
unit 12,284 11,021 10,729 10,027
Annualized direct
contribution per
average installed
unit 3,935 2,804 2,743 1,303
Average units
installed 2,527 1,027 2,119 660
Average age of network
for the period
(months) 10.6 6.1 9.4 6.3
1996 1996 1996 1996 1997 1997 1997
Number of new Coinstar
units installed in
period 169 364 413 292 428 406 400
* Installed Base of Coinstar
units at end
of period 432 796 1,209 1,501 1,929 2,335 2,735
Average age of network
for the period
(months) 6.6 6.4 6.1 7.0 8.3 9.3 10.6
Dollar volume of coins
processed $12,306 $20,692 $37,637 $44,841 $52,724 $70,626 $103,442
Revenue $ 746 $ 1,388 $ 2,830 $ 3,349 $ 3,995 $ 5,294 $ 7,762
Annualized revenue
per average installed
unit $ 8,449 $ 9,269 $11,021 $ 9,623 $ 9,433 $ 9,939 $ 12,284
Direct
Contribution ($142) $ 67 $ 720 $ 409 $ 545 $ 1,328 $ 2,487
Direct Contribution
Margin (%) (19%) 5% 25% 12% 14% 25% 32%
Annualized direct
contribution per average
installed
unit ($1,612) $449 $2,804 $1,175 $1,287 $2,494 $3,935
EBITDA(1) ($1,883)($2,169)($2,115)($3,605)($4,054)($3,914) ($2,617)
As a percent
of revenue (253%) (156%) (75%) (108%) (101%) (74%) (34%)
Depreciation and
Amortization $499 $796 $1,098 $1,741 $1,684 $2,158 $2,297
Interest (Income)
Expense, net ($ 73) $ 73 $ 313 $1,500 $1,764 $1,975 $1,789
Net Loss ($2,310)($3,037)($3,526)($7,094)($7,502)($8,047) ($6,704)
As percent
of revenue (310%) (219%) (125%) (212%) (188%) (152%) (86%)
(1) EBITDA is defined as earnings before interest expense,
interest income, income taxes, depreciation, amortization and other
income/expense. The Company uses EBITDA as a measure of operating
performance to assist in understanding its operating results. EBITDA
is not a measure of financial performance under generally accepted
accounting principles ("GAAP") and should not be considered in
isolation or an alternative to income (loss) from operations, cash
flow from operations, net income (loss) or and other measure of
performance under GAAP.
* CONTACT: Coinstar, Inc. Fi.Comm
Kirk Collamer Cathy Corley
CFO Investor Relations
425/943-8220 206/467-6732
16:02 EST OCTOBER 28, 1997
I0607 * End of document. |
