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Outerwall Cuts Staff, Nixes Three Ventures as Part of Restructuring

By  +Follow December 10, 2013 9:47AM
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Outwall Inc. ($OUTR), the company formerly known as CoinStar, on Tuesday elaborated on previously announced restructuring initiatives, saying that it is expanding its credit facility, firing employees, shuttering certain new ventures and making a change in Redbox management.  Outerwall has been under pressure to make moves since activist investor Barry Rosenstein’s Jana Partners disclosed in October that it has taken a 13.5-percent stake in the company.  Rosenstein said at that time that everything was on the table at Outerwall, including a possible sale of the company.

Out With the New

Outerwall said that it is discontinuing venture concepts Rubi (a coffee kiosk), Crisp Market (a kiosk selling prepared foods) and Star Studio (a photo booth).  The unwinding of the three programs is expected to be substantially completed by the end of Q1 2014 and result in a one-time charge of $26 million to $29 million in the fourth quarter.  The abandoned ventures are being put on the shelf with Orango, an automated retail concept that provides consumers deals on electronics through kiosks that was discontinued earlier this year.

The company will continue to invest in ecoATM, a kiosk that gives users cash for electronics like cell phones and tablets, as well as SAMPLEit, a kiosk that lets people sample a brand before buying the full-size product.  With SAMPLEit, consumers pay $1 to try versions of skincare products, snacks, cosmetics and other items and receive a coupon towards the purchase of a full-size version of the product.

Out With the Old

With the latest moves, Redbox president Anne Saunders has stepped down after just over a year at the position.   No reason was given for Saunders exit.  Outerwall CEO J. Scott Di Valerio will oversee the existing management team filling the void in duties left by Saunders until a permanent replace can be found.

Leaving with Saunders were 251 employees, or 8.5% of Outwall’s staff, as part of the venture closures and addition expense reductions.

In With the New

Outerwall increased its existing senior secured credit facility to provide an additional $350 million of debt to meet its target net leverage range of 1.75x to 2.25x net debt to care adjusted EBITDA in Q1 2014.

Jana has been pushing Outerwall to return a portion of its cash horde to shareholders and is making an impact with its wishes.  Outerwall said it plans to repurchase $195 million of its stock this year, exceeding its target by returning more than 100 percent of its free cash flow in 2013.  $50 million more in repurchases is expected by the end of January 2014.

The company also provided new guidance, raising its full-year adjusted earnings outlook to a range of $5.44 - $5.59 per share from a previously guided range of $4.89 - $5.04 per share.  The new forecast sailed past analyst expectations of $4.85 per share.

Shares of Outerwall have opened the day trading higher by more than 2 percent at $66.33.  Through Monday’s close, shares of OUTR were up about 25 percent this year.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for OUTR
Common King
27 Feb 15 13:50:30
Watch List/Sales (continued): $GMCR, $T, $OUTR http://t.co/AojRmbchgq
Syed Waqas Nabi
27 Feb 15 12:00:37
A bullish Big MAC (Bullish) has occurred at 2:15 PM Feb 27 at $64.83 on Outerwall Inc (OUTR) $OUTR
Wallstreetmomos
27 Feb 15 07:17:05
Closing $OUTR (short) @ 63.63 for a profit of $ 0.76/share. Called live in my trading room. #daytraders #daytrading #swingtrading #stocktips
OptionCast
27 Feb 15 06:12:04
Short Squeeze Alerts $OUTR $GPRO $INSY $Z $GDP $WUBA $CONN $ESI $CLF http://t.co/GyP8KfMSf8
Va_Beachguy
27 Feb 15 04:14:18
$OUTR still has another 10 points to the downside to go http://t.co/6gSfGXj18A
BreakingStocksNews
27 Feb 15 00:46:03
$OUTR: Analyst Rating Update on Outerwall Inc: http://t.co/SFNKF8Hs2Z
BreakingStocksNews
26 Feb 15 13:49:02
$OUTR: New Insider Transaction on OUTR by Chief Legal Officer: http://t.co/btZ0P5MlUO
Insider Alerts
26 Feb 15 13:48:06
NEW insider transaction on $OUTR reported a moment ago: http://t.co/0OUVFimbcu
4-traders.com
26 Feb 15 10:57:15
#Outerwall : E-Waste Recycling Kiosks Continue to Catch On http://t.co/htar1g2hlA $OUTR
Wallstreetmomos
26 Feb 15 10:32:16
TRADER ALERT: $OUTR (short) @ 64.45. Called live in my trading room #daytraders #daytrading #alerts #stocks #investors #stockalerts #chart
Wilson Wang
26 Feb 15 09:07:21
Are short sellers stuck in $OUTR and can't get out? Why would anyone want to be short a stock that illiquid?
Syed Waqas Nabi
26 Feb 15 09:00:24
A bullish Moving out of Oversold has occurred at 11:00 AM Feb 26 at $64.34 on Outerwall Inc (OUTR) $OUTR
Syed Waqas Nabi
26 Feb 15 08:00:48
A bullish Moving out of Oversold has occurred at 10:00 AM Feb 26 at $64.39 on Outerwall Inc (OUTR) $OUTR
Syed Waqas Nabi
26 Feb 15 08:00:23
A bullish Moving out of Oversold has occurred at 10:00 AM Feb 26 at $64.39 on Outerwall Inc (OUTR) $OUTR
StockNewsWires
26 Feb 15 06:51:06
$OUTR: Outerwall Inc to Issue Special Dividend of $0.30 on March 18th ...: http://t.co/IpQonbTqQt
Sleek Money
26 Feb 15 06:50:54
Outerwall Inc to Issue Special Dividend of $0.30 on March 18th $OUTR http://t.co/ehpOQgBCsc
Penny Stock Secret
26 Feb 15 01:25:59
This Guy Turned $100 Into Over $10,000 In Just 30 Days!!! http://t.co/NovWYe2RAx ... $FAST $OUTR $EROC
Max Vision
25 Feb 15 19:45:27
@BluegrassCap @SculpinCap Good Q, I said, in theory, $CBI is/could be a good one. $OUTR, $GME--both come to mind...but not great. Insurance?
Ophir Gottlieb
25 Feb 15 15:57:29
$OUTR Return on Equity Trend --> http://t.co/Ceu8RkQ09u #GreenbackBoogie http://t.co/j1bsTk0CLN
Ophir Gottlieb
25 Feb 15 11:18:20
$OUTR Return on Equity (ROE) http://t.co/Ceu8RkQ09u A fantastic look at massively improving returns http://t.co/sz9Px5jnVM
Syed Waqas Nabi
25 Feb 15 10:00:40
A bullish Big MAC (Bullish) has occurred at 12:15 PM Feb 25 at $66.31 on Outerwall Inc (OUTR) $OUTR
ProVesting
25 Feb 15 08:33:09
$OUTR: The Honorable Willie Brown, Jr. Joins ecoATM Advisory Board: http://t.co/e498ZxiSww
ProVesting
25 Feb 15 08:32:12
$OUTR: The Honorable Willie Brown, Jr. Joins ecoATM Advisory Board: http://t.co/nkVwi8OOkj
ProTradersNews
25 Feb 15 08:31:09
$OUTR: The Honorable Willie Brown, Jr. Joins ecoATM Advisory Board: http://t.co/oQqCZXcHlp
NASDAQ
25 Feb 15 08:02:01
$OUTR - The Honorable Willie Brown, Jr. Joins ecoATM Advisory Board http://t.co/TgcELpGhfe
4-traders.com
25 Feb 15 08:01:04
#Outerwall : The Honorable Willie Brown, Jr. Joins ecoATM Advisory Board http://t.co/VKvOna5Py8 $OUTR
NASDAQ
24 Feb 15 13:19:04
$OUTR - Statement of Changes in Beneficial Ownership (4) http://t.co/YExt5tyx1Q
NASDAQ
24 Feb 15 13:18:06
$OUTR - Statement of Changes in Beneficial Ownership (4) http://t.co/uqedhEfJPC
Breaking News
24 Feb 15 13:14:03
$OUTR: New Insider Transaction on OUTR by Chief Financial Officer: http://t.co/mnm1GA9SUB
Insider Alerts
24 Feb 15 13:13:07
NEW insider transaction on $OUTR reported a moment ago: http://t.co/8HPKbqpgiZ
Syed Waqas Nabi
24 Feb 15 13:00:26
A bullish Big MAC (Bullish) has occurred at 3:15 PM Feb 24 at $66.15 on Outerwall Inc (OUTR) $OUTR
Breaking News Now
24 Feb 15 10:06:03
$OUTR: Why Wall Street Hates Outerwall: http://t.co/wKUMLCtmYY
DailyStockPicks
24 Feb 15 09:48:48
$EYES is up 20% today after successfully restoring vision to blind patients. $25+ tgt $RMD $TRLA $OUTR investors read http://t.co/OSr6rq0DgY
Dakota Financial
24 Feb 15 07:43:37
Insider Selling: Outerwall insider Sells $75,847.36 in Stock $OUTR http://t.co/KK11nQFoq0
ValueWalk
24 Feb 15 07:37:26
Allan Mecham Unloads Berkshire; Bets On Outerwall http://t.co/b5u19r5Vce $BRK.A $BRK.B $OUTR
iHangout
24 Feb 15 06:25:39
chartguy89: 2015 Trending Stocks: OUTR -1.59% Stock Charts $OUTR Outerwall Inc. http://t.co/jfeeuJdtDt
ProVesting
23 Feb 15 08:46:05
$OUTR: Zacks Rating Update on Outerwall Inc: http://t.co/WTG09wWjDH
HotKeyTrading
23 Feb 15 08:30:07
Price Declines: $FLT $ICE $SINA $HRS $JACK $CMG $BIIB $SODA $DXCM $YELP $SMCI $KN $CTCT $OUTR $RE http://t.co/kl3VGOukhn #spy #investing
Ticker Report
23 Feb 15 07:41:31
Insider Selling: James S. Pinckney Sells 1,126 Shares of Outerwall Stock $OUTR http://t.co/35YSHblZZ7
Saibus Research
23 Feb 15 07:08:59
Commented on: "Outerwall Inc.: Undervalued Due To Leadership Uncertainty, But Wort... http://t.co/NCKGWGIwh8 $OUTR
Alexander Morris
23 Feb 15 06:37:58
$OUTR: Exc 1DyHIGH=67.29, hits:1, ch:+0.6%, 9:3Accel+, allTFs+, lowFlt:14M, HiPctSht[49%:10d], goPop+[+0.9%], DyVol:8T:0x:0x
ProTradersNews
22 Feb 15 18:26:02
$OUTR: Company Shares of Outerwall Inc Drops by -1.64%: http://t.co/R4R1AtQSeN
GGrewal
22 Feb 15 15:56:35
RT @valuewalk: Allan Mecham On The Bullish Case For Sony And Alleghany http://t.co/EFM5KZlmpD $SNE $Y $OUTR $CMPR $XPO
Forex News & Tips
22 Feb 15 08:42:08
RT @valuewalk: Allan Mecham On The Bullish Case For Sony And Alleghany http://t.co/EFM5KZlmpD $SNE $Y $OUTR $CMPR $XPO
ValueWalk
22 Feb 15 08:35:35
Allan Mecham On The Bullish Case For Sony And Alleghany http://t.co/EFM5KZlmpD $SNE $Y $OUTR $CMPR $XPO
John M.
21 Feb 15 20:45:58
@bret_eubank I don't know a ton about it, but the symbol is $OUTR
				
				
By  +Follow December 10, 2013 9:47AM
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