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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. To read our full disclosure, please go to: http://www.equities.com/disclaimer


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Results for OUTR
Syed Waqas Nabi
1 Apr 15 13:00:43
A bullish Big MAC (Bullish) has occurred at 2:45 PM Apr 01 at $66.71 on Outerwall Inc (OUTR) $OUTR
Syed Waqas Nabi
1 Apr 15 08:00:52
A bullish Big MAC (Bullish) has occurred at 10:15 AM Apr 01 at $67.49 on Outerwall Inc (OUTR) $OUTR
Alexander Morris
1 Apr 15 07:12:14
$OUTR: At 1DyHIGH=67.27, hits:1, ch:+1.7%, 4phNearHi, 3mMv:+4, 8:1Accel+, tf:0111111, lowFlt:16M, HiPctSht[50%:17d], DyVol:56T:0.1x:0.1x
Penny Stock Secret
31 Mar 15 23:24:02
Premium Alerts Ranked #1 For Gains 2834% Last Week http://t.co/NovWYe2RAx .. $FAST $OUTR $EROC
US Banking News
31 Mar 15 17:55:24
Outerwall Earns “Neutral” Rating from B. Riley $OUTR http://t.co/drP7yNdLlE
Ticker Report
31 Mar 15 17:41:36
Outerwall Earns “Neutral” Rating from B. Riley $OUTR http://t.co/ZbV0avJZTa
BNK Invest
31 Mar 15 11:29:44
See How Outerwall Ranks Among Analysts' Top Picks With Strong Buyback Activity $OUTR #stocks http://t.co/horu46Er6Z
LSValue
31 Mar 15 10:17:09
Long-Short Value Watchlist: LONG: $FSLR, $TTM, $OUTR, $EDGW, $QCOM, $SLCA, $ONNN: SHORT: $CYBR, $MELI, $HSTM, $XOXO, $LL, $ANGI, $JMBA, $Z
Syed Waqas Nabi
31 Mar 15 09:00:44
A bullish Big MAC (Bullish) has occurred at 11:15 AM Mar 31 at $66.46 on Outerwall Inc (OUTR) $OUTR
Analyst Ratings
30 Mar 15 22:15:31
Outerwall's neutral rating reiterated at B. Riley. $61.00 PT. http://t.co/F2rcOwh6G2 $OUTR #OUTR
US Consumer News
30 Mar 15 22:15:24
Outerwall's neutral rating reiterated at B. Riley. $61.00 PT. http://t.co/UOmgYDtCrU $OUTR #OUTR
dailystockplays.com
30 Mar 15 13:40:34
Redbox $OUTR,Warner Bros. Enter Two-Year Agreement for New-Release Entertainment
StockNewsWires
30 Mar 15 13:10:03
$OUTR: Redbox (OUTR),Warner Bros. Enter Two-Year Agreement for New ...: http://t.co/ZhzgSaWJ8U
Breaking News Now
30 Mar 15 09:45:04
$TWX $OUTR: Time Warner Inc's (TWX) Warner Bros. Teams Up With Outerwall ...: http://t.co/TDTnThlI7I
ProVesting
30 Mar 15 05:05:05
$OUTR: New SEC Filing for OUTR: Form 8-K (No. 0001193125-15-110488): http://t.co/nI9iEd2Gz5
bored2tears
30 Mar 15 05:04:18
Redbox, Warner Bros.reach new agreement that maintains 28-day DVD/Blu-ray window. http://t.co/xCvDxyEtgF $OUTR $TWX #media
Company SEC Filings
30 Mar 15 05:04:10
NEW SEC Filing for $OUTR filed a moment ago: http://t.co/hbCSxoZymc http://t.co/MEQw2SA0D1
The Daytrade
30 Mar 15 04:59:16
$OUTR Press Release: Redbox, Warner Bros. Announce New 2yr Agreement - interesting watch, out of favor & off the radar name
Breaking News
30 Mar 15 04:57:34
$OUTR Redbox, Warner Bros. Announce New Agreement http://t.co/X1PljjIXTF
NASDAQ
30 Mar 15 04:57:03
$OUTR - Redbox, Warner Bros. Announce New Agreement http://t.co/Qz9vMKWQ1a
Capital Market Labs
29 Mar 15 17:22:18
$OUTR vs. $HIBB vs. $TCS vs. $FIVE Compared Across 9 Critical Measures Chart: http://t.co/IcbD10nAVk
Anuj Kumar
27 Mar 15 17:52:44
@PainCapital I've been following $OUTR for years and it's interesting that it's dying a lot slower than most thought.
Pain Capital
27 Mar 15 15:53:32
And people wonder why DVD sales are tanking. $OUTR $NFLX http://t.co/nPSPgij3Y1
NASDAQ
26 Mar 15 09:54:02
$OUTR - ecoATM Offers Great Trade-in Values: Increases Cash Payouts for Samsung Galaxy S5 and iPhone 6 Prior to http://t.co/2omsqshhX1
Capital Market Labs
25 Mar 15 11:45:23
$FIVE, $BKS, $HIBB, $VSI, $OUTR Revenue Trend Comparison http://t.co/gAmEFaqSAL https://t.co/O7J0gCDLXd
Capital Market Labs
25 Mar 15 08:15:32
$FIVE, $BKS, $HIBB, $VSI, $OUTR Revenue Trend Comparison http://t.co/gAmEFaqSAL https://t.co/O7J0gCDLXd
Capital Market Labs
25 Mar 15 08:03:30
$FIVE, $BKS, $HIBB, $VSI, $OUTR Book Value Trend Comparison http://t.co/oM9O6BVZbB https://t.co/O7J0gCDLXd
Syed Waqas Nabi
25 Mar 15 08:00:40
A bullish Moving out of Oversold has occurred at 10:00 AM Mar 25 at $66.92 on Outerwall Inc (OUTR) $OUTR
				
				
By  +Follow December 10, 2013 9:47AM
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