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

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Results for OUTR
4 Aug 15 14:00:40
ERIK PRUSCH Chief Executive Officer Buys $899,981 Worth of $OUTR Outerwall Inc. - #Form4 #InsiderTrading - http://t.co/9YZQHIMAoV
4 Aug 15 14:00:03
$OUTR: New Insider Transaction on OUTR by Chief Executive Officer: http://t.co/aXfy4tbwjf
Insider Alerts
4 Aug 15 13:59:15
NEW insider transaction on $OUTR reported a moment ago: http://t.co/Y4SkCHBTA1
Breaking News Now
4 Aug 15 10:04:06
$OUTR: Q2 Earnings of $1.64 Anticipated for Outerwall Inc. (NASDAQ:OUTR): http://t.co/a4ccxUQwLi
Dakota Financial
3 Aug 15 12:54:31
Outerwall Sees Large Volume Increase After Dividend Announcement $OUTR http://t.co/t3Z924XDv0
3 Aug 15 12:44:37
OUTR Outerwall Inc. Current Price http://t.co/AQhv7lM6L6 $OUTR $AAL $MDY $MDY #OUTR #pennystocks #share
3 Aug 15 12:44:37
OUTR Outerwall Inc. % Change http://t.co/qSyu91Zxb9 $OUTR $HZNP $C $BAC #OUTR #stock #stock
Lucky Jimmy
3 Aug 15 12:44:35
QCOM QUALCOMM Inc. Ideas http://t.co/YHuWOFr5za $QCOM $FMX $DIG $OUTR #QCOM #nasdaq #share
3 Aug 15 12:41:12
KITE Kite Pharma, Inc. EOD Data http://t.co/1VbZBTuav1 $KITE $OUTR $XOP $SSO #KITE #share #pennystocks
3 Aug 15 12:32:13
BABA Alibaba Group Holding Ltd. Open http://t.co/6PEZLa6Za8 $BABA $TZA $OUTR $C #BABA #investing #stock
IH News Desk
3 Aug 15 12:32:10
AVXL Anavex Life Sciences Corp. News http://t.co/2FL1MvoX76 $AVXL $ERX $LCI $OUTR #AVXL #stocks #stockmarket
Rosner Stocks
3 Aug 15 12:32:07
ARYC Arrayit Corp. News http://t.co/cUJNFhTQQ7 $ARYC $UVXY $ZIOP $OUTR #ARYC #invest #stocks
IB Traders' Insight
3 Aug 15 11:55:54
The Market Has Written Off This Highly Profitable Business. http://t.co/khPTqhJehB @NewConstructs #stocks $OUTR $NFLX http://t.co/RjdGNITXpb
Gregory Shea
3 Aug 15 11:09:53
RT @maxvision33: $OUTR at 66.50 before earnings 3 months ago, post-earnings hit 85, now at 68. The difference between a compounder and a c…
Max Vision
3 Aug 15 10:23:04
$OUTR at 66.50 before earnings 3 months ago, post-earnings hit 85, now at 68. The difference between a compounder and a cigar butt
BNK Invest
3 Aug 15 10:00:12
Outerwall Breaks Below 200-Day Moving Average - Notable for $OUTR $PMR #stocks http://t.co/uIq64pLjHa
3 Aug 15 09:47:33
UPRO ProShares UltraPro S&P 500 Bid Size http://t.co/jPvvyV71AF $UPRO $IBM $OUTR $OUTR #UPRO #stocks #stockmarket
Lucky Jimmy
3 Aug 15 09:45:38
SLW Silver Wheaton Corp. Day High http://t.co/fP4c6HsDls $SLW $OUTR $TLT $LCI #SLW #share #finance
3 Aug 15 09:44:44
SH ProShares Short S&P 500 Fund Short Sales http://t.co/Hz1Nur696u $SH $UVXY $UNP $OUTR #SH #finance #pennystocks
Stock Forums
3 Aug 15 09:44:10
PFE Pfizer, Inc. Change http://t.co/19mNtuaCvK $PFE $FV $OUTR $ECIG #PFE #nasdaq #stock
Investors Hangout
3 Aug 15 09:43:28
OUTR Outerwall Inc. Day High http://t.co/URmVaoMhNO $OUTR $VTI $SPXL $CAT #OUTR #stockmarket #finance
3 Aug 15 09:43:13
ODFL Old Dominion Freight Line, Inc. Message Board Posts http://t.co/uPXknxCJgG $ODFL $OUTR $JDST $GDX #ODFL #stock #share
3 Aug 15 09:42:46
OUTR Outerwall Inc. Yield http://t.co/Y3XL8a98rd $OUTR $LNKD $LNKD $XLU #OUTR #share #finance
Rosner Stocks
3 Aug 15 09:41:36
MYL Mylan N.V. Dividend http://t.co/Xl6Z3HVZHs $MYL $KBE $CDE $OUTR #MYL #share #invest
3 Aug 15 09:41:28
MEET MeetMe, Inc. Day High http://t.co/Vaz8UyWsS0 $MEET $TASR $BABA $OUTR #MEET #stock #invest
3 Aug 15 07:26:37
Pre-Market Stocks Highlights: http://t.co/ZJxD50TO0x $MJN $XCO $OUTR $DRYS
Option Runners
3 Aug 15 06:31:30
$OUTR through last month's low >> http://t.co/udz0xef8ei
3 Aug 15 06:28:12
Are DVDs Really a Thing of the Past? $OUTR http://t.co/PGwPp6ckAP http://t.co/uBOegkr952
Breaking News Now
3 Aug 15 04:10:02
$MJN $XCO $OUTR: Pre-Market Stocks Highlights: Mead Johnson Nutrition CO (NYSE ...: http://t.co/QwyrGsjsYu
2 Aug 15 21:07:02
$OUTR: Wall Street analysts bullish on OUTR's earnings growth: http://t.co/IxxJe9nVm2 http://t.co/y1z1N6Z3Ju
2 Aug 15 10:26:23
RT @chessNwine: $OUTR Daily. Good example of how earnings event can trump technicals--Solid chart in uptrend then slammed post EPS http://t…
2 Aug 15 09:45:16
RT @chessNwine: $OUTR Daily. Good example of how earnings event can trump technicals--Solid chart in uptrend then slammed post EPS http://t…
Ani Anirudhan
2 Aug 15 09:38:50
RT @chessNwine: $OUTR Daily. Good example of how earnings event can trump technicals--Solid chart in uptrend then slammed post EPS http://t…
2 Aug 15 09:31:14
$OUTR Daily. Good example of how earnings event can trump technicals--Solid chart in uptrend then slammed post EPS http://t.co/vcQLvgWEPC
The Legacy News
2 Aug 15 08:00:33
Outerwall Downgraded by Zacks $OUTR http://t.co/bEj5gIP6fQ
Breaking News
2 Aug 15 07:30:02
$OUTR: Analysts Set Outerwall Price Target at $80.70 (NASDAQ:OUTR): http://t.co/6DoMDiCUxy
Sleek Money
2 Aug 15 07:20:35
Analysts Set Outerwall Price Target at $80.70 $OUTR http://t.co/JPZqNO3x7w
2 Aug 15 01:42:05
OUTR Pandora Media, Inc. Quotes http://t.co/uLHA23gmLR $OUTR $SINA $TMXN $RXL #OUTR #tradeideas #share
James DiPlata
2 Aug 15 01:07:56
RT @clayton_dd: AAPL Apple, Inc. Current Price http://t.co/uoFokng6l7 $AAPL $BABA $ROIC $OUTR #AAPL #tradeideas #stock
Investors Hangout
2 Aug 15 00:47:06
TASR TASER Intl Inc. 52Wk Low http://t.co/PVhALI43iI $TASR $OUTR $QSR.TO $AMAT #TASR #investing #stocks
2 Aug 15 00:45:34
RIG Transocean, Inc. Investor Opinions http://t.co/c9VkU1pJx4 $RIG $CPXX $OUTR $GDXJ #RIG #finance #stockmarket
2 Aug 15 00:44:15
OUTR Outerwall Inc. Tick http://t.co/S3iTjmXBCq $OUTR $IBB $SCL.TO $XLP #OUTR #stock #stockmarket
2 Aug 15 00:44:13
OUTR Outerwall Inc. Last Trade http://t.co/iH1aDtua6g $OUTR $NLNK $AAPL $AAXJ #OUTR #invest #stocks
2 Aug 15 00:43:04
OUTR Outerwall Inc. Prev Close http://t.co/75mwwoLkvw $OUTR $XLU $CROX $NORD #OUTR #pennystocks #stocks
2 Aug 15 00:43:04
MEIP MEI Pharma, Inc. Open http://t.co/tYVBZzwkGN $MEIP $EEM $OUTR $XLF #MEIP #invest #pennystocks
2 Aug 15 00:42:41
KSM Deutsche Strategic Municipal Income Trust P/E Ratio http://t.co/YYxvy4aZwl $KSM $SSO $EOG $OUTR #KSM #stocks #stockmarket
2 Aug 15 00:42:36
OUTR Outerwall Inc. Day Low http://t.co/hPWO9OY4lY $OUTR $CPX.L $ITEK $BND #OUTR #nasdaq #pennystocks
2 Aug 15 00:42:02
KITE Kite Pharma, Inc. Ask Size http://t.co/lOqEBdDdnG $KITE $GOSY $PFE $OUTR #KITE #tradeideas #stockmarket
2 Aug 15 00:36:51
EUM ProShares Short MSCI Emerging Markets P/E Ratio http://t.co/0MpZasVgsY $EUM $ARDX $OUTR $RENN #EUM #stockmarket #stocks
Investors Hangout
2 Aug 15 00:36:48
EWU United Kingdom iShares Message Board Posts http://t.co/fLydwZjh3c $EWU $VPCO $OUTR $HTZ #EWU #share #stock
By  +Follow December 10, 2013 9:47AM



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