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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
Sandra Matthews
20 Apr 15 11:32:57
RT @Recognia: RT @Recognia_Peter: The most researched U.S. stocks last week according to @Recognia: $MHK $OUTR $PZZA $X $HTZ
Recognia
20 Apr 15 11:26:25
RT @Recognia_Peter: The most researched U.S. stocks last week according to @Recognia: $MHK $OUTR $PZZA $X $HTZ
Peter Ashton
20 Apr 15 11:13:08
The most researched U.S. stocks last week according to @Recognia: $MHK $OUTR $PZZA $X $HTZ
Syed Waqas Nabi
20 Apr 15 11:00:43
A bullish Big MAC (Bullish) has occurred at 12:45 PM Apr 20 at $67.69 on Outerwall Inc (OUTR) $OUTR
LSValue
20 Apr 15 09:27:39
Long-Short Value Watchlist: LONG: $STRT,$GDOT, $FSLR, $TTM, $OUTR, $SLCA, $ONNN: SHORT: $INUV, $NFLX, $CYBR, $MELI, $XOXO, $LL, $ANGI, $Z
Rosner Stocks
18 Apr 15 11:05:21
$EARH Last Trade Click Here: http://t.co/gvgcfRHBDO Also See: $OUTR $ASTVE $BLGO $BRTHY ~
FinPsychDrew
17 Apr 15 15:08:04
$NMBL $MTZ recent new longs, close to adding $BBRY that's right. Not dead yet. Don't understand $NFLX Valuation, $OUTR Now a Bear there too
Derald Muniz
17 Apr 15 09:19:39
BB Sqz supreme in Outerwall with a Gap Fill side order. $OUTR http://t.co/9QtRdRGCgB
Scott Spencer
17 Apr 15 09:12:30
$OUTR $67 Redbox'd #MapsToTheStars for an amazing journey into the lives of bizarre lifeforms in the Hollywood Hills. http://t.co/B8dUrMN6Y9
Sleek Money
17 Apr 15 08:34:32
Analysts Set Outerwall Target Price at $67.20 $OUTR http://t.co/ymlx2tosxi
Woll Street
16 Apr 15 21:36:42
https://t.co/CK46U12jcb $OUTR long consolidation in this range... Set alerts for move over 68.90..
dailystockplays.com
16 Apr 15 14:45:23
CCI Over 100 http://t.co/XMKS7ufXJC $UNH $BTI $AGIO $WAB $VAR $WDAY $NOW $MMP $NAVG $URTH $EZA $SSB $OUTR $FDN $DWRE $VRNT $SPLK
Syed Waqas Nabi
16 Apr 15 09:00:45
A bullish Big MAC (Bullish) has occurred at 11:15 AM Apr 16 at $67.58 on Outerwall Inc (OUTR) $OUTR
moderneconomist.com
16 Apr 15 08:03:33
RT @tymorapro: $OUTR: Exc 1WkHIGH=67.44, hits:2, Rng:4%, ch:+0.1%, allTFs+, lowFlt:16M, HiPctSht[50%:21d], DyVol:90T:0.3x:0.2x, DyRng:0.9%:…
Syed Waqas Nabi
16 Apr 15 08:00:47
A bullish Big MAC (Bullish) has occurred at 10:30 AM Apr 16 at $67.66 on Outerwall Inc (OUTR) $OUTR
Alexander Morris
16 Apr 15 07:57:39
$OUTR: Exc 1WkHIGH=67.44, hits:2, Rng:4%, ch:+0.1%, allTFs+, lowFlt:16M, HiPctSht[50%:21d], DyVol:90T:0.3x:0.2x, DyRng:0.9%:0.7x:0.4x
Kevin Laird
15 Apr 15 20:25:36
RT @BoothLaird: Check out our Q1 2015 newsletter. We discuss new investment idea EnerNOC. $ENOC, $WTW, $WU, $OUTR, $HIG, $OSK http://t.co/w…
Patrick Seitz
15 Apr 15 20:12:16
Teens love iPhones, Netflix, but not hot for Apple Watch. http://t.co/0xqEyQXtYT $AAPL $NFLX $OUTR $GME $MSFT $SNE
Breaking News
15 Apr 15 09:49:29
$OUTR: Outerwall Inc. (NASDAQ:OUTR) Given a $70.666 Price Target ...: http://t.co/XG75gSUNQB
OptionCast
15 Apr 15 06:53:24
Short Squeeze Alerts $Z $SAFM $LNN $WRLD $OUTR $GBX $WUBA $INSY $SCTY http://t.co/GyP8KfMSf8
Venky Srinivasan
14 Apr 15 20:58:26
$OUTR possible gap fill candidate. @evanmedeiros RSI/MACD bullish. STO curling up. http://t.co/xEGsYJtboy
Club retreats
14 Apr 15 14:58:50
RT @cvpayne: .@club_retreats wild ride but think its a buy here...thanks for watching $OUTR
Charles V Payne
14 Apr 15 12:03:03
.@club_retreats wild ride but think its a buy here...thanks for watching $OUTR
Club retreats
14 Apr 15 11:53:56
@cvpayne #askpayne Any updates or advice on $OUTR? I am holding it Always a great show. I enjoyed hearing Rubios speak last night too Thanks
Syed Waqas Nabi
14 Apr 15 10:00:36
A bullish Big MAC (Bullish) has occurred at 12:15 PM Apr 14 at $66.79 on Outerwall Inc (OUTR) $OUTR
Syed Waqas Nabi
14 Apr 15 08:01:14
A bullish Moving out of Oversold has occurred at 10:15 AM Apr 14 at $65.42 on Outerwall Inc (OUTR) $OUTR
Syed Waqas Nabi
14 Apr 15 08:00:56
A bullish Moving out of Oversold has occurred at 10:15 AM Apr 14 at $65.42 on Outerwall Inc (OUTR) $OUTR
Syed Waqas Nabi
14 Apr 15 08:00:42
A bullish Moving out of Oversold has occurred at 10:15 AM Apr 14 at $65.42 on Outerwall Inc (OUTR) $OUTR
Syed Waqas Nabi
14 Apr 15 08:00:30
A bullish Moving out of Oversold has occurred at 10:15 AM Apr 14 at $65.42 on Outerwall Inc (OUTR) $OUTR
Ticker Report
14 Apr 15 07:26:53
Outerwall Given Consensus Recommendation of “Hold” by Analysts $OUTR http://t.co/3r9CdS3uEI
OptionCast
14 Apr 15 06:12:14
Short Squeeze Alerts $Z $SAFM $WRLD $LNN $OUTR $GBX $INSY $SCTY $WUBA http://t.co/GyP8KfMSf8
W. Brett Mason
13 Apr 15 21:15:02
RT @BoothLaird: Check out our Q1 2015 newsletter. We discuss new investment idea EnerNOC. $ENOC, $WTW, $WU, $OUTR, $HIG, $OSK http://t.co/w…
Booth-Laird
13 Apr 15 13:27:58
Check out our Q1 2015 newsletter. We discuss new investment idea EnerNOC. $ENOC, $WTW, $WU, $OUTR, $HIG, $OSK http://t.co/wFnuoaxh9T
StockNewsWires
13 Apr 15 12:53:04
$OUTR: Wall Street Places $70.666 Price Target on Outerwall Inc. (NASDAQ ...: http://t.co/yVOPd6Dfep
Stock Trade Alerts
13 Apr 15 09:47:49
Price Action Alert $OUTR - OUTERWALL INC #stocks #intraday ~ via #AlertTrade
Alexander Morris
13 Apr 15 07:32:53
$OUTR: Exc 1DyHIGH=66.20, hits:2, ch:+0.9%, AtPivR2, 7:3Accel+, tf:0011111, lowFlt:16M, HiPctSht[50%:18d], DyVol:29T:0.2x:0.1x
Zero Filter
13 Apr 15 05:05:24
BOCA ROAD TRIP OBSERVATION #4: $OUTR new placement @redbox units rest stops along #I95 smart move drive business/loyalty @jimcramer $NFLX
				
				
By  +Follow December 10, 2013 9:47AM
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