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: Mongo2116 who wrote (56)	12/9/1997 11:00:00 PM
From: Gerald Thomas	of 351

A couple of things... The cost of the machine was approx. 23,000 in 1993 and is now currently approx. 12,000. As to the 3% I don't know if that is the same agreement all stores sign... interesting. I was under the impression that coinstar paid a small fee for the space that the machine took up...That they were bringing in new business and cash flow to the business .. will have to do the math ... They have amored services picking up coins when their wide area network that all machines are hooked up to say the machine is full... also the deals they sign are area by area so they fill a market and as it fills their costs come down because they use the same service more efficiently when concentrations of machines are next to each other... The thing that I like about this company is that revenues are almost pyramid like with 150 new machines each month and as machines age their weekly volumes increase. Also they estimate that including costs of servicing,collecting coins and everything to do with machines they pay for themselves in approx.3 years... Lastly about the profit... I have seen projections from 2 companies... revenues are 25 million 1997 and between 57 and 64 million in 1998... and every quarter in 1998 and 1999 (all 8) are sequencially better than the prior quarter ... Not a bad business huh?

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