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Non-Tech : Outerwall (OUTR), formerly Coinstar (CSTR) -- Ignore unavailable to you. Want to Upgrade?

To: Mongo2116 who wrote (85)	12/30/1997 10:48:00 PM
From: Gerald Thomas	Respond to of 351

Glad to hear that it's an active machine... We could probably spend 100's of hours disecting the financials of this company partly because it's such an amazingly well defined cash business... I think it all boils down to 1 small fact that was posted a couple of posts ago... FY (millions) Q1 Q2 Q3 Q4 --------------------------------------------------------- 1995 2.2 3.0 4.9 7.6 1996 12.3 20.7 37.6 44.8 1997 52.7 70.6 103.4 As you can see coin volumes are growing at incredible percents... so whether they get 5% or 7.5 % or whatever ,that's that percent of a number which is in some cases growing 35-50% quarter over quarter this isn't rocket science...Q3 of 97 grew close to 50% above Q2 ... So the key here is x percent of WHAT... and when you are dealing with hundreds of millions of dollars and revenues expected to grow 90% per year over 5 years... with next years 4 quarters revenues forcasted as: 1998( millions) Q1 Q2 Q3 Q4 10.9 13.2 15.7 17.6 This is revenues to the company ..... and evidently the costs go down as each market matures because sinergies are realized with armored companies collecting many stores each... If the question is how do they make money... this should shed some light...