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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
Breaking News
29 May 15 14:38:01
$OUTR: Outerwall Inc. to Present at the Morgan Stanley Leveraged Finance ...: http://t.co/OKHgxJ7P6F
Stocks Creamun
29 May 15 07:45:06
RT @adibmoti: Weren't $GME , $OUTR supposed to be dead years ago ?
John Huber
29 May 15 07:33:52
RT @adibmoti: Weren't $GME , $OUTR supposed to be dead years ago ?
Options Chris
29 May 15 06:46:37
I don't get pissed too often, but I'm out of my mind with these partial fills. Missed some serious coin because of them $SPLK $DATA $OUTR
US Banking News
29 May 15 06:24:44
Investment Analysts’ Weekly Ratings Changes for Outerwall $OUTR http://t.co/UDpiGngoBi
Ticker Report
29 May 15 06:11:36
Investment Analysts’ Weekly Ratings Changes for Outerwall $OUTR http://t.co/xVG5GEhdvO
Dakota Financial
29 May 15 06:09:35
Investment Analysts’ Weekly Ratings Changes for Outerwall $OUTR http://t.co/cYzzytjeG5
WKRB News
29 May 15 05:58:23
Insider Selling: Galen C. Smith Sells 4,112 Shares of Outerwall Stock $OUTR http://t.co/mCMmMcace5
ProVesting
29 May 15 05:53:06
$OUTR: Insider Selling: Galen C. Smith Sells 4112 Shares of Outerwall Stock ...: http://t.co/fPpV5bMHZC
ProTradersNews
29 May 15 04:47:02
$OUTR: Surging Earnings Estimates Signal Good News for Outerwall (OUTR): http://t.co/JLCadDU6eU
Adib Motiwala
28 May 15 18:58:19
Weren't $GME , $OUTR supposed to be dead years ago ?
The Legacy News
28 May 15 09:58:14
Insider Selling: Outerwall CFO Galen C. Smith Sells 4,112 Shares of Stock $OUTR http://t.co/DhHIHoxC3u
ProTradersNews
28 May 15 09:53:03
$OUTR: Insider Selling: Outerwall CFO Galen C. Smith Sells 4112 Shares of ...: http://t.co/1CZOjmfpd4
Ticker Report
28 May 15 04:56:53
Insider Selling: Galen C. Smith Sells 4,112 Shares of Outerwall Stock $OUTR http://t.co/dPTwPyRDBy
Dakota Financial
28 May 15 04:54:10
Insider Selling: Galen C. Smith Sells 4,112 Shares of Outerwall Stock $OUTR http://t.co/As6oD0Fe8x
ProTradersNews
28 May 15 01:48:04
$OUTR: Large Inflow of Money Witnessed in Outerwall Inc.: http://t.co/Zt2K8NZ0Fb
Fundamental Investor
27 May 15 20:59:39
@Find_Me_Value @BrattleStCap @ApexHurley - $OUTR price increase and future increases (pricing umbrella) not well understood IMHO.
Fundamental Investor
27 May 15 20:58:55
@Find_Me_Value @BrattleStCap @ApexHurley - $OUTR thesis - same thing @apexH was talking about re: IBM about a week ago. identical really.
C
27 May 15 19:08:42
@BrattleStCap I was encouraged to look at $OUTR after his recent letter, but just couldn't find myself to buying it due to biz decline
TalkMarkets
27 May 15 17:09:03
Triple-Play Miracle #Stocks For Your Portfolio $CALM $OUTR $ORBK http://t.co/TxUEuajhYM
ProVesting
27 May 15 14:58:05
$OUTR: Insider Selling at Outerwall Inc (OUTR) : Galen C Smith Sells 4112 ...: http://t.co/5C6ysB4BTM
SwingTradeBot
27 May 15 14:36:31
Scan results - Slingshot Bullish today: $WDAY $PANW $PLAY $DANG $OUTR $VEEV $FTNT $MSCI $PPC $TSLA ... http://t.co/FcfHR07N2E
Large Void Bot
27 May 15 13:40:39
$OUTR May 26, CFO Sells 4112 (-225 Net) Shrs; Net: -105.23k; Acq'd: 4112 53.53/s; Disp'd: 4337 75.02/s
Insider Filings
27 May 15 13:34:25
$OUTR: Smith Galen C sold a net $105,226 in OUTERWALL INC. http://t.co/pSwb742D2G
ProVesting
27 May 15 13:34:02
$OUTR: New Insider Transaction on OUTR by Chief Financial Officer: http://t.co/K8F8D5pblS
Insider Alerts
27 May 15 13:33:07
NEW insider transaction on $OUTR reported a moment ago: http://t.co/lTVTDrwIkN
Quantified Alpha
27 May 15 11:40:03
Stocks we like in the consumer discretionary sector: $FRS $PTRY $SCVL $MCS $OMC $OUTR $SCHL $KSS $M $PENN http://t.co/Zpr4vgCFho
TalkMarkets Recap
27 May 15 11:09:04
Triple-Play Miracle #Stocks For Your Portfolio $CALM $OUTR $ORBK http://t.co/hKQTC0ahYP
Virendra singh
27 May 15 07:19:20
RT @amigobulls: $OUTR $CALM $ORBK Are these really Miracle stocks? http://t.co/NB5x1AdQ64
Breaking News
27 May 15 07:08:07
$OUTR: Are Tablets Falling Out of Favor?: http://t.co/gqsfgfcp9Y
Amigobulls
27 May 15 06:26:53
$OUTR $CALM $ORBK Are these really Miracle stocks? http://t.co/NB5x1AdQ64
Bret Jensen
27 May 15 05:39:36
Triple-Play Miracle Stocks For Your Portfolio $CALM $OUTR $ORBK http://t.co/hwktfkCAnq
Julian Close
27 May 15 05:35:21
PriceWatch Alerts for $WPRT, $OUTR, $CALM, $OPK & $TWC from InvestorsObserver today: http://t.co/wvrN7r8BsS #OptionsTrading #CoveredCalls
Investors Observer
27 May 15 05:35:21
PriceWatch Alerts for $WPRT, $OUTR, $CALM, $OPK & $TWC from InvestorsObserver today: http://t.co/oD26SajBG0 #OptionsTrading #CoveredCalls
TalkMarkets
27 May 15 04:31:35
Triple-Play Miracle #Stocks For Your Portfolio $CALM $OUTR $ORBK http://t.co/TxUEuajhYM
Penny Stock Secret
27 May 15 01:06:20
Don't Wait Untill 2016 To Realize This POWERFUL Stock Alert Service! $240,000 GAINS! http://t.co/NovWYe2RAx .. $FAST $OUTR $EROC
Cyni Capital
26 May 15 16:42:52
RT @QuantifiedAlpha: My "Short Squeeze" Screen... High Short Interest + High 14-day RSI... $CONN $OUTR $JAKK $SRPT $HLF $EBIX http://t.co/w…
dailystockplays.com
26 May 15 15:31:10
Lizard Bearish http://t.co/tTyatGUh7H $NKTR $HAS $DATE $DSKX $LXRX $GMF $RYAAY $AIR $HMST $JFR $OUTR $CRUS $BJRI $APPS $COVS $FCAM $SSH
SwingTradeBot
26 May 15 14:31:41
Scan results - New 52 Week High today: $TWC $TMUS $MOMO $LYV $CVC $CTRP $DE $OUTR $SAGE $RELY ... http://t.co/vfZ3ijeNOS
Breaking News
26 May 15 13:28:04
$OUTR: Notable Session Mover: Outerwall Inc. (NASDAQ:OUTR): http://t.co/drz4zBkLoT
Quantified Alpha
26 May 15 11:06:38
My "Short Squeeze" Screen... High Short Interest + High 14-day RSI... $CONN $OUTR $JAKK $SRPT $HLF $EBIX http://t.co/wcaIFc0dp8
Large Void Bot
26 May 15 10:00:28
Popular: $JBLU, $NQ, $BLUE, $JMEI, $NCLH, $CYH, $KANG, $SGMO, $TMUS, $OUTR, $ULTA, $CLUB, $JWN
Trader Daily
26 May 15 09:16:40
Insider Trading Alert - OUTR, DLX And ALOG Traded By Insiders $OUTR http://t.co/SrW8QevntO
Syed Waqas Nabi
26 May 15 08:00:50
A bullish Big MAC (Bullish) has occurred at 10:00 AM May 26 at $79.20 on Outerwall Inc (OUTR) $OUTR
Breaking News Now
26 May 15 01:41:02
$OUTR: Outerwall Inc (OUTR) Insider Selling : James Gaherity Sells 300 ...: http://t.co/3Pn1YiaBK4
FinBUZZ Just-IN
25 May 15 01:02:08
Tickers trending on TWTR in last 1 hour $OUTR $CTL $ANGI $AMBA $KPTI http://t.co/O86TTIhTJi
lookn4wins
25 May 15 00:47:07
TASR TASER Intl Inc. Stock Forum http://t.co/dEKNWdy7pb $TASR $NUGT $OUTR $DAL #TASR #share #nasdaq
Rosner Stocks
25 May 15 00:45:39
OUTR Pall Corp. Tick http://t.co/Cko7xb5pQl $OUTR $OUTR $WFC $CSL #OUTR #stocks #invest
Emylers
25 May 15 00:45:36
OUTR Pall Corp. Prev Close http://t.co/nO6DL2yWRQ $OUTR $SWKS $STZ $OUTR #OUTR #share #stocks
IH News Desk
25 May 15 00:45:19
NOV Omnicare, Inc. Summary http://t.co/kID0ku2SHY $NOV $AMRN $OUTR $DXJ #NOV #share #invest
				
				
By  +Follow December 10, 2013 9:47AM
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