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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
25 Nov 15 22:58:11
Black Friday $SALE on #stockmarket. Cash-rich, 5.7 EV/EBITDA, $60M stock buyback plan in Q4. Read: https://t.co/qM8kTQH7RQ $RMD $TRLA $OUTR
25 Nov 15 13:23:06
$OUTR: New Insider Transaction on OUTR by President, ecoATM: https://t.co/mZ36vUjccE
Insider Alerts
25 Nov 15 13:22:14
NEW insider transaction on $OUTR reported a moment ago: https://t.co/FMbAVw9lxg
25 Nov 15 12:08:32
RT @KevinBCook: $AMBA Goldman's potential SHORT-SQUEEZE watch list: $GPRO $FIT $LULU $SCTY $DV $ZIOP $GME $OUTR $Z $SUNE $FOSL $GRUB https:…
25 Nov 15 11:17:02
RT @KevinBCook: $AMBA Goldman's potential SHORT-SQUEEZE watch list: $GPRO $FIT $LULU $SCTY $DV $ZIOP $GME $OUTR $Z $SUNE $FOSL $GRUB https:…
Breaking News Now
25 Nov 15 10:21:13
$OUTR: Growth Stock Watch: Outerwall Inc. (NASDAQ:OUTR): https://t.co/NjnG0JiY33
24 Nov 15 13:20:10
$OUTR: Notable Session Mover: Outerwall Inc. (NASDAQ:OUTR): https://t.co/gK8ZzFZxsc
24 Nov 15 09:52:38
RT @KevinBCook: $AMBA Goldman's potential SHORT-SQUEEZE watch list: $GPRO $FIT $LULU $SCTY $DV $ZIOP $GME $OUTR $Z $SUNE $FOSL $GRUB https:…
23 Nov 15 19:35:02
$OUTR: Wall Street analysts bullish on OUTR's earnings growth: https://t.co/IxxJe9nVm2 https://t.co/Rm3KCPvBAJ
US Banking News
23 Nov 15 19:19:22
Outerwall Shares Down 3.1% $OUTR https://t.co/oTikFcgR7p
The Legacy News
23 Nov 15 19:11:29
Outerwall Shares Down 3.1% $OUTR https://t.co/NQOWN1XE9G
Breaking News Now
23 Nov 15 15:43:13
$OUTR: Brokerages Anticipate Outerwall to Post $2.06 Earnings Per Share …: https://t.co/oTeFigkevn
23 Nov 15 15:19:32
$71,000 in ONE TRADE!! By Follwing Their Signals More Info Here https://t.co/8WvnrVmkBS .. $FAST $OUTR $EROC
23 Nov 15 15:03:21
Scan results - Hammer Candlestick today: $VEEV $CVS $NAT $OII $OUTR $RP $TWX $ORAN ... https://t.co/O4rHwsyLcm
23 Nov 15 14:14:33
RT @thebrentadamson: Share count reduction from FY2012 for 49 models uploaded so far...https://t.co/VZhBVn52d5 $OUTR $VIAB $M $FOSL $ABG $A…
23 Nov 15 14:14:06
RT @thebrentadamson: A quick FCF Yield screener https://t.co/OpeyyDWJeY $CAT $FOSL $FXCM $M $OUTR $SORL $VIAB $VIA
23 Nov 15 12:35:01
RT @KevinBCook: $AMBA Goldman's potential SHORT-SQUEEZE watch list: $GPRO $FIT $LULU $SCTY $DV $ZIOP $GME $OUTR $Z $SUNE $FOSL $GRUB https:…
23 Nov 15 12:33:10
RT @KevinBCook: $AMBA Goldman's potential SHORT-SQUEEZE watch list: $GPRO $FIT $LULU $SCTY $DV $ZIOP $GME $OUTR $Z $SUNE $FOSL $GRUB https:…
23 Nov 15 12:18:05
thebrentadamson: Share count reduction from FY2012 for 49 models uploaded so far...https://t.co/ixHnyZtZuj $OUTR $VIAB $M $FOSL $ABG $AAPL …
Brent Adamson
23 Nov 15 12:16:47
Share count reduction from FY2012 for 49 models uploaded so far...https://t.co/VZhBVn52d5 $OUTR $VIAB $M $FOSL $ABG $AAPL $HOG $CALL $PSX
23 Nov 15 06:25:44
RT @KevinBCook: $AMBA Goldman's potential SHORT-SQUEEZE watch list: $GPRO $FIT $LULU $SCTY $DV $ZIOP $GME $OUTR $Z $SUNE $FOSL $GRUB https:…
Lydia Duncan
23 Nov 15 05:40:43
RT @KevinBCook: $AMBA Goldman's potential SHORT-SQUEEZE watch list: $GPRO $FIT $LULU $SCTY $DV $ZIOP $GME $OUTR $Z $SUNE $FOSL $GRUB https:…
Breaking News
23 Nov 15 03:28:03
$OUTR: An Insider James Gaherity Sold 950 shares of Outerwall Inc …: https://t.co/wPHZKyUYM5
Day Trader 007
22 Nov 15 15:23:57
RT @KevinBCook: $AMBA Goldman's potential SHORT-SQUEEZE watch list: $GPRO $FIT $LULU $SCTY $DV $ZIOP $GME $OUTR $Z $SUNE $FOSL $GRUB https:…
22 Nov 15 13:45:03
OUTR Outerwall Inc. Short Sales https://t.co/42Z0oTTyK4 $OUTR $SPWR $CAT $IYR #OUTR #finance #invest
22 Nov 15 13:37:03
ELNK EarthLink, Inc. Ask Size https://t.co/hSoktBeL2R $ELNK $WYNN $PSX $OUTR #ELNK #pennystocks #stock
22 Nov 15 13:36:33
EBIX https://t.co/KaSDepxFS8, Inc. % Change https://t.co/GQQZgn91cy $EBIX $CAT $OZRK $OUTR #EBIX #stockmarket #share
22 Nov 15 12:52:38
RT @KevinBCook: $AMBA Goldman's potential SHORT-SQUEEZE watch list: $GPRO $FIT $LULU $SCTY $DV $ZIOP $GME $OUTR $Z $SUNE $FOSL $GRUB https:…
Breaking News Now
22 Nov 15 12:31:02
$OUTR: Company Shares of Outerwall Inc. (NASDAQ:OUTR) Rally 6.53%: https://t.co/vDrraSbuVE
Catalyst Trader
22 Nov 15 11:42:33
H. J.
22 Nov 15 11:16:06
RT @KevinBCook: $AMBA Goldman's potential SHORT-SQUEEZE watch list: $GPRO $FIT $LULU $SCTY $DV $ZIOP $GME $OUTR $Z $SUNE $FOSL $GRUB https:…
Brent Adamson
22 Nov 15 11:03:46
A quick FCF Yield screener https://t.co/OpeyyDWJeY $CAT $FOSL $FXCM $M $OUTR $SORL $VIAB $VIA
22 Nov 15 11:01:22
We calculated 63-day Expected Return of $OUTR for you: 12.51% https://t.co/UyMlRumv8q
22 Nov 15 10:51:22
Unicorn Bay rating for $OUTR is 3.80 out of 5. https://t.co/sNdP4yQZcW
22 Nov 15 10:20:22
We calculated 21-day Expected Return of $OUTR for you: 10.71% https://t.co/UyMlRumv8q
Warren of Wall St
22 Nov 15 09:59:51
$OUTR trading at a 32.0% discount for a reason? https://t.co/D4HtLarg05 https://t.co/TodhDjO2lQ
Kevin Brent Cook
22 Nov 15 08:16:24
$AMBA Goldman's potential SHORT-SQUEEZE watch list: $GPRO $FIT $LULU $SCTY $DV $ZIOP $GME $OUTR $Z $SUNE $FOSL $GRUB https://t.co/VyG8huxni5
Luis A
22 Nov 15 06:51:06
@fundiescapital Home Alone will probably turn this thing around $OUTR https://t.co/gNyvzT0HFI
21 Nov 15 18:11:02
$OUTR: Wall Street analysts bullish on OUTR's earnings growth: https://t.co/IxxJe9nVm2 https://t.co/PcRziVflZa
20 Nov 15 11:44:33
OUTR Outerwall Inc. % Change https://t.co/CcMemTN8NX $OUTR $SSO $LOW $UNG #OUTR #invest #stockmarket
20 Nov 15 11:36:54
IHNewsDesk: AAPL Apple, Inc. Day High https://t.co/fpLai5B1sM $AAPL $HSU.TO $OUTR $CSCO #AAPL #stock #invest
IH News Desk
20 Nov 15 11:32:35
AAPL Apple, Inc. Day High https://t.co/xjEiRzulhe $AAPL $HSU.TO $OUTR $CSCO #AAPL #stock #invest
19 Nov 15 15:08:31
19 Nov 15 13:04:01
PIRS DD 4 investors.Read here: https://t.co/vD9rNW2f06 $JOEZ $OUTR $HIG $TINY $LAMR $MMC $MLR $EVC
19 Nov 15 10:31:26
Right now OUTR is number 225 for the largest percentage gain out of 243 stocks. $OUTR OUTR is up +5.77% in the https://t.co/yVsUyJJ7gi
19 Nov 15 09:09:20
RT @PatientValue101: $sune $chk $outr note to self: stop buying shit
19 Nov 15 09:00:22
$sune $chk $outr note to self: stop buying shit
Alexander Morris
19 Nov 15 07:13:39
$OUTR: Exc 1DyHIGH=66.12, hits:1, ch:+0.2%, AtgPivH3, tf:1111101, lowFlt:15M, HiPctSht[49%:16d], DyVol:19T:0x:0x, DyRng:1.1%:0.5x:0.4x
19 Nov 15 06:04:09
$OUTR: Price Target Update on Outerwall Inc. (NASDAQ:OUTR): https://t.co/WWfsaobIF1
Analyst Actions
19 Nov 15 05:05:02
$OUTR: Analyst action by Roth Capital on Outerwall: https://t.co/ovkqDyJzzS https://t.co/VrbpFG42de
By  +Follow December 10, 2013 9:47AM



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