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Outerwall Cuts Staff, Nixes Three Ventures as Part of Restructuring

By  +Follow December 10, 2013 9:47AM
Tickers Mentioned:

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
18 Dec 14 22:00:07
All-Time Highs: $ALE $TGT $IRM $MKTX $KRFT $FTNT $XPO $OUTR $ADBE $MHLD $TSCO $RH $ISIS $ESRT $GPK http://t.co/TRx9EnjwT5 #investing #dow
18 Dec 14 21:00:11
Annual Highs: $WPC $CBG $ACOR $QLGC $PGNX $SYY $RHP $ORCL $KRFT $WCG $XPO $DF $OUTR $MTSN $ANGO http://t.co/Vv2VEnpBuv #stock #mkt #stocks
18 Dec 14 13:14:50
Outerwall Hurt Given News Story (NASDAQ: $OUTR) #OUTR http://t.co/Awd0AtiflL
18 Dec 14 11:35:46
RT @samsa91: One more on $OUTR: probably no more bullets in the gun. Cable cos can choose to lower VOD prices at any time
18 Dec 14 10:00:06
All-Time Highs: $TGT $IRM $MKTX $KRFT $FTNT $XPO $OUTR $ADBE $MHLD $TSCO $RH $ISIS $ESRT $GPK $DERM http://t.co/Vv2VEnpBuv #stocks #mkt
Activist Corner
18 Dec 14 09:58:21
Outerwall: Positioned To Be The Next Retail Buyout With 33% Upside $OUTR | Seeking Alpha http://t.co/h7a3AYqTZE #janapartners
Sam Sa
18 Dec 14 09:26:11
Of course old news on $OUTR is the price increase. Fwd outlook all depends on your vol assumptions and secular / seasonality breakout
Sam Sa
18 Dec 14 09:08:42
$OUTR trading at 52-week highs post-Jana. Been hiring media guys for content negotiations
18 Dec 14 09:00:10
Annual Highs: $PGNX $SYY $RHP $ORCL $KRFT $WCG $XPO $DF $OUTR $MTSN $ANGO $DECK $TNK $ADBE $PFE http://t.co/Vv2VEnpBuv #analytics #trading
Alexander Morris
18 Dec 14 08:26:55
$OUTR: Exc 1YrHIGH=74.77, hits:2, AllTimeHigh, Rng:32%, ch:+5.3%, News, FltBO+, 25:5Accel+, allTFs+, lowFlt:14M, HiPctSht[49%:10d]
Derald Muniz
18 Dec 14 08:18:58
$OUTR continues to look great. Recent price increases will show up in the Revenue #s
Counter Hedge
18 Dec 14 08:14:39
$OUTR is having a good day.
18 Dec 14 07:13:06
$OUTR: Stock Watch: Outerwall Inc (NASDAQ:OUTR) http://t.co/fJtJ6ziZtL http://t.co/VtyS9lEOie
17 Dec 14 22:00:07
All-Time Highs: $OUTR $ADBE $MHLD $TSCO $RH $ISIS $ESRT $GPK $DERM $PCG $BDC $BMS $WST $PZZA $BXP http://t.co/Vv2VEnpBuv #stocks #analyst
Stock Signaling
17 Dec 14 21:31:08
Yesterday's All-Time Highs: $DOC $TUBE $OUTR $MOH $OCR $ZLTQ $TJX $ADBE $REXR $JACK $TSCO $JAH $UPS $HSNI $RH http://t.co/S9oPUZ8PN3 #stocks
17 Dec 14 21:00:10
Annual Highs: $DF $OUTR $MTSN $ANGO $DECK $TNK $ADBE $PFE $GPT $HWAY $IRC $MHLD $EVC $PLD $RH http://t.co/TRx9EnjwT5 #analyst #spy #finance
17 Dec 14 14:18:57
$ECIG buyout target of $0.50. 400% upside. Positive EBITDA and $200MM revenue in 2015 $HBI $OUTR $WLK traders read: http://t.co/xi3978GuDs
17 Dec 14 13:14:57
OUTR -1.79% Stock Charts $OUTR Outerwall Inc. (NASDAQ) Last Updated: 12/17/2014 15:14:55 OUTR Stock Chart - 1 http://t.co/t7VEJrqA1k
Asif Suria
17 Dec 14 12:01:46
@PhilipEtienne @LDrogen Good point. Yet Redbox, Netflix and Amazon prime continue to do well. $NFLX $AMZN $OUTR
17 Dec 14 10:00:06
All-Time Highs: $OUTR $ADBE $MHLD $TSCO $RH $ISIS $ESRT $GPK $DERM $PCG $BDC $BMS $WST $PZZA $BXP http://t.co/TRx9EnjwT5 #swingtrading #spy
Alysia Sarkisian
17 Dec 14 09:25:53
RT @SeekingAlpha: Outerwall: Positioned To Be The Next Retail Buyout With 33% Upside http://t.co/qgr9p7IY8k $OUTR
Seeking Alpha
17 Dec 14 09:19:04
Outerwall: Positioned To Be The Next Retail Buyout With 33% Upside http://t.co/qgr9p7IY8k $OUTR
Anmol Singh
17 Dec 14 09:08:53
$OUTR looks like a swing long, strong stock in a weak market
17 Dec 14 09:00:10
Annual Highs: $OUTR $MTSN $ANGO $DECK $TNK $ADBE $PFE $GPT $HWAY $IRC $MHLD $EVC $PLD $RH $ISIS http://t.co/Vv2VEnpBuv #stocks #wallstreet
Scott Hall
17 Dec 14 08:42:42
$OUTR coin co. & $CZR have the same biz model. Idiots put $1 in their machines to get $0.90 back out. At least with $CZR you can hit jackpot
16 Dec 14 22:00:07
All-Time Highs: $OUTR $ADBE $MHLD $TSCO $RH $ISIS $ESRT $GPK $DERM $PCG $BDC $BMS $WST $PZZA $BXP http://t.co/Vv2VEnpBuv #spy #stockpicks
Stock Signaling
16 Dec 14 21:31:08
Yesterday's All-Time Highs: $TUBE $OUTR $MOH $OCR $ZLTQ $TJX $ADBE $REXR $JACK $TSCO $JAH $UPS $HSNI $RH $ISIS http://t.co/S9oPUZ8PN3 #stock
16 Dec 14 21:00:11
Annual Highs: $OUTR $MTSN $ANGO $DECK $TNK $ADBE $PFE $GPT $HWAY $IRC $MHLD $EVC $PLD $RH $ISIS http://t.co/Vv2VEnpBuv #analyst #nyse #mkt
16 Dec 14 15:07:06
Scan results - Stochastic Sell Signal today: $RWT $WAG $DG $OUTR $HA $IMPV $ED $AZO $FTNT $RCL ... http://t.co/elgTWcH48n
16 Dec 14 15:02:22
Scan results - New 52 Week High today: $CVS $JCOM $FDS $SPLS $SCG $WM $PEB $CHSP $BMS $OUTR ... http://t.co/2yOTO7YOiS
Analyst Ratings
16 Dec 14 12:31:46
Get the latest news and updates for $PETX $PE $COTY $RNA $OUTR automatically with ARN Daily http://t.co/nSJuDtP5Bv
Paul R. La Monica
16 Dec 14 12:00:50
Drugs. (But no cigarettes!) Food. DVD rentals. Beer. $CVS, $KR, Redbox parent $OUTR & $SAM are among the few stocks at all-time highs today.
16 Dec 14 10:00:06
All-Time Highs: $OUTR $ADBE $MHLD $TSCO $RH $ISIS $ESRT $GPK $DERM $PCG $BDC $BMS $WST $PZZA $BXP http://t.co/TRx9EnjwT5 #finance #trading
16 Dec 14 09:00:10
Annual Highs: $OUTR $MTSN $ANGO $DECK $TNK $ADBE $PFE $GPT $HWAY $IRC $MHLD $EVC $PLD $RH $ISIS http://t.co/TRx9EnjwT5 #investing #finance
Counter Hedge
16 Dec 14 07:57:55
30% short float and it's breaking out to higher highs. $OUTR #squeeze
16 Dec 14 07:06:42
$outr hitting all time highs http://t.co/eodsgpdfWS
16 Dec 14 02:58:51
Target Hit Huge Profits What is Next $SPY $FIVE $LULU $OUTR $PCLN: http://t.co/86VeDHwOZ0 via @YouTube
15 Dec 14 22:00:06
All-Time Highs: $OUTR $ADBE $MHLD $TSCO $RH $ISIS $ESRT $GPK $DERM $PCG $BDC $BMS $WST $PZZA $BXP http://t.co/Vv2VEnpBuv #analyst #markets
15 Dec 14 21:00:09
Annual Highs: $OUTR $MTSN $ANGO $DECK $TNK $ADBE $PFE $GPT $HWAY $IRC $MHLD $EVC $PLD $RH $ISIS http://t.co/Vv2VEnpBuv #nyse #analytics
15 Dec 14 16:54:54
Huge List Alert Tomorrow $SPY $FIVE $LULU $OUTR $PCLN: http://t.co/UFJT9HYHWE via @YouTube
News Box
15 Dec 14 16:33:02
$OUTR: Outerwall Sets New 52-Week High at $74.47 (OUTR) http://t.co/MbcaZEz3D7 http://t.co/9xZDZwJaDI
Anmol Singh
15 Dec 14 15:32:19
$OUTR Strong stock in a weak market. Looks good to continue higher http://t.co/WDVlS1SNW9
15 Dec 14 15:00:34
Play with the pros working for you $SPY $FIVE $LULU $OUTR $PCLN: http://t.co/UFJT9HYHWE via @YouTube
15 Dec 14 13:28:30
MUST WATCH!!! Target Hit Huge Profits What is Next $SPY $FIVE $LULU $OUTR $PCLN https://t.co/KbxkQ9ufMY
15 Dec 14 13:28:14
MUST WATCH! Target Hit Huge Profits What is Next $SPY $FIVE $LULU $OUTR $PCLN https://t.co/SVgqnjVssT
15 Dec 14 13:25:05
Target Hit Huge Profits What is Next $SPY $FIVE $LULU $OUTR $PCLN: http://t.co/TXrQ6O6vyk via @YouTube
15 Dec 14 13:24:04
Target Hit Huge Profits What is Next $SPY $FIVE $LULU $OUTR $PCLN: http://t.co/UFJT9HYHWE via @YouTube
15 Dec 14 03:30:03
Outerwall : Electronics recycling company pursuing LEED Gold Certification, furthering sustainability effor... http://t.co/C3pf1GnIu7 $OUTR
14 Dec 14 15:37:18
Price alerts set for $OUTR, $MRGE, $QLYS, $RDWR, $RP, $SABR >> daily charts >> http://t.co/Exbj0I6gTx
12 Dec 14 20:55:48
Is It Time to Roll the Closing Credits on the DVD? http://t.co/ufS2jZGzHf via @daily_finance $OUTR $NFLX $OUTR
By  +Follow December 10, 2013 9:47AM



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