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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
29 Jan 15 11:51:05
$OUTR: Outerwall Downgraded by Zacks to Neutral (OUTR): http://t.co/5F5vEFTZPK
Sleek Money
29 Jan 15 11:50:44
Outerwall Downgraded by Zacks to Neutral $OUTR http://t.co/Ynk6kpAvIC
US Banking News
29 Jan 15 11:45:07
Zacks Lowers Outerwall to Neutral $OUTR http://t.co/jun4XEtStz
Media Sentiment
29 Jan 15 11:33:11
$OUTR received a new alert. Find out why at http://t.co/5lwmDm2SCs #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 410
US Consumer News
29 Jan 15 11:31:03
Outerwall downgraded by Zacks to neutral. $79.80 PT. http://t.co/1nFaxylrkX $OUTR #OUTR
Analyst Ratings
29 Jan 15 11:31:00
Outerwall downgraded by Zacks to neutral. $79.80 PT. http://t.co/e2n6kOq3Zu $OUTR #OUTR
The Legacy News
29 Jan 15 11:27:09
Outerwall Downgraded by Zacks to “Neutral” $OUTR http://t.co/o77JU5Y5y1
29 Jan 15 11:15:41
J.P. Morgan's Applied Technologies Stocks to Sell http://t.co/67KojxhAww $DBD $FLIR $GRMN $IRBT $OUTR #InvestWall
Steady Option Income
29 Jan 15 07:35:33
$OUTR Feb 60 Put premium 1.4/1.8. Earnings 2/5. http://t.co/gX7k59VHJL
Sleek Money
29 Jan 15 07:12:35
Outerwall Receives Consensus Recommendation of “Hold” from Brokerages $OUTR http://t.co/xU0eqFWXIc
26 Jan 15 16:43:03
mad max
26 Jan 15 12:57:18
@Couzin_Vinny what's your take on $OUTR?thx
Melissa S Waligora
26 Jan 15 10:34:47
@cvpayne #askpayne Charles are you still a fan of $outr ? Thinking of buying here......
26 Jan 15 09:42:08
Some long ideas- $EIG, $KIRK, $NEWT, $BIIB. Short ideas- $NSC, $NSM, $OUTR, $ANN. Always use stops. Do YOUR due dilly silly..
Alexander Morris
26 Jan 15 09:20:28
$OUTR: Exc 1DyHIGH=64.38, hits:2, ch:+0.8%, 3:1Accel+, tf:0111101, lowFlt:14M, HiPctSht[47%:4d], DyVol:247T:0.5x:0.2x, DyRng:1.8%:0.9x:0.4x
Baker Vail
26 Jan 15 08:19:15
$OUTR Breaking out today? Watch $64.60. Could become a short squeeze.
Alexander Morris
26 Jan 15 07:44:08
$OUTR: Exc 1DyHIGH=64.38, hits:1, ch:+0.8%, 0phNewHi, 1mMv:+3, 4:1Accel+, tf:0111111, lowFlt:14M, HiPctSht[47%:4d], DyVol:92T:0.2x:0.1x
26 Jan 15 07:30:09
Gap Downs: $ARRS $IRE $COL $MNTA $OTIC $VTAE $TKC $SLM $XON $ALNY $ACTG $TPUB $OUTR $BJRI $RNDY http://t.co/Vv2VEnpBuv #daytrading #mkt
26 Jan 15 04:16:04
$BRP $OUTR: Stocks Underperform for the Week: Brookfield Residential Properties ...: http://t.co/g8XV6O4vPX
Penny Stock Secret
26 Jan 15 00:26:52
This Guy Turned $100 into over $10,000 In Just 30 Days! http://t.co/vezCDY95do .. $FAST $OUTR $EROC
John Allen
25 Jan 15 20:01:59
.@ndenzel is so fresh on the new CEO job at $OUTR, she hasn’t even had a chance to update her Twitter profile yet. Congrats!
25 Jan 15 19:30:08
Gap Downs: $ARRS $IRE $COL $MNTA $OTIC $VTAE $TKC $SLM $XON $ALNY $ACTG $TPUB $OUTR $BJRI $RNDY http://t.co/TRx9EnjwT5 #wallstreet #nasdaq
John Allen
25 Jan 15 19:23:27
Wow, $OUTR — giving the word cannibal a whole new meaning.
Hung Tran, MS, MD
25 Jan 15 16:50:16
What is up with Redbox and Outerwall? $OUTR https://t.co/hIjXe4IgaM
Derald Muniz
25 Jan 15 10:11:58
Outerwall follow up: You can still do any of the 3 listed Trade Ideas http://t.co/pmxkffkhkL $OUTR #Options
25 Jan 15 07:30:09
Gap Downs: $ARRS $IRE $COL $MNTA $OTIC $VTAE $TKC $SLM $XON $ALNY $ACTG $TPUB $OUTR $BJRI $RNDY http://t.co/TRx9EnjwT5 #finance #watchlist
James DiPlata
24 Jan 15 19:35:32
RT @HotKeyTrading: Gap Downs: $ARRS $IRE $COL $MNTA $OTIC $VTAE $TKC $SLM $XON $ALNY $ACTG $TPUB $OUTR $BJRI $RNDY http://t.co/TRx9EnjwT5 #…
24 Jan 15 19:30:08
Gap Downs: $ARRS $IRE $COL $MNTA $OTIC $VTAE $TKC $SLM $XON $ALNY $ACTG $TPUB $OUTR $BJRI $RNDY http://t.co/TRx9EnjwT5 #watchlist #spy #dow
Blake Cassidy
24 Jan 15 14:41:51
My favorite stocks at the moment: $WHR and $BIDU. Other positions include: $AAL $AAPL $MU $OUTR
24 Jan 15 07:30:08
Gap Downs: $IRE $COL $MNTA $OTIC $VTAE $TKC $SLM $XON $ALNY $ACTG $TPUB $OUTR $BJRI $RNDY $ALGN http://t.co/TRx9EnjwT5 #mkt #stockmarket
Tim Gannon
24 Jan 15 05:25:20
RT @OptionCast: Short Squeeze Alerts $ESI $PVA $KING $GBX $ALJ $OUTR $WLT $CHGG $HLF http://t.co/UrAj7j0U90
Vinita Minshull
24 Jan 15 02:51:50
RT @weavenow: $OUTR gonna need to break its piggy bank for coins and run down to get some quick cash soon......
23 Jan 15 19:30:08
Gap Downs: $IRE $COL $MNTA $OTIC $VTAE $TKC $SLM $XON $ALNY $ACTG $TPUB $OUTR $BJRI $RNDY $ALGN http://t.co/Vv2VEnpBuv #nasdaq #daytrader
Robert Borowski
23 Jan 15 09:50:22
RT @last_financier: $OUTR competition from likes of $NFLX will destroy much more value than company's share repurchases http://t.co/i3BwYZI…
23 Jan 15 07:30:08
Gap Downs: $OTIC $VTAE $TKC $SLM $XON $ALNY $ACTG $TPUB $OUTR $BJRI $RNDY $ALGN $SWIR $IBKR $RGC http://t.co/Vv2VEnpBuv #stock #stockmarket
23 Jan 15 06:47:36
RT @last_financier: $OUTR competition from likes of $NFLX will destroy much more value than company's share repurchases http://t.co/i3BwYZI…
The Last Financier
23 Jan 15 06:44:52
$OUTR competition from likes of $NFLX will destroy much more value than company's share repurchases http://t.co/i3BwYZI3Fn
US Banking News
23 Jan 15 01:46:01
Weekly Analysts’ Ratings Changes for Outerwall $OUTR http://t.co/T2Z0wAbZNw
23 Jan 15 01:36:03
$OUTR: Weekly Analysts' Ratings Changes for Outerwall (OUTR): http://t.co/qQSDzk35AU
Sleek Money
23 Jan 15 01:35:39
Weekly Analysts’ Ratings Changes for Outerwall $OUTR http://t.co/EC6SQsmowL
22 Jan 15 19:30:08
Gap Downs: $TKC $SLM $XON $ALNY $ACTG $TPUB $OUTR $BJRI $RNDY $ALGN $SWIR $IBKR $RGC $TUBE $EHTH http://t.co/Vv2VEnpBuv #daytrading #nyse
22 Jan 15 12:23:37
$OUTR Ammended SC 13G filed by: Blackrock Inc., subject: Outerwall Inc, Percent: 9.0% http://t.co/1xmaoZC0NH
22 Jan 15 11:55:39
$OUTR, 13G filed by Blackrock Inc. http://t.co/9yKez1dGIh
22 Jan 15 11:34:18
$OUTR - Amended Statement of Ownership (sc 13g/a) http://t.co/YDKzlNj4I2
Breaking News
22 Jan 15 11:27:08
$OUTR: New SEC Filing for OUTR: Form SC 13G/A, No. 0001086364-15-000550 http://t.co/KciJGIeEKE http://t.co/8nzJDGzf8Q
Alexander Morris
22 Jan 15 08:59:15
$OUTR: Exc 1DyHIGH=63.87, hits:3, ch:+3.8%, 7:3Accel+, tf:0011111, lowFlt:14M, HiPctSht[49%:3d], PrvClGap+[+0.6%], DyVol:260T:0.2x:0.1x
22 Jan 15 08:20:44
$OUTR Outerwall CEO Di Valerio steps down, prices fall to Nov '13 support. buy the dip or further slip? short ratio > 10
22 Jan 15 07:30:08
Gap Downs: $ALNY $ACTG $TPUB $OUTR $BJRI $RNDY $ALGN $SWIR $IBKR $RGC $TUBE $EHTH $SVU $NEWM $STLD http://t.co/Vv2VEnpBuv #stockmarket #mkt
Media Sentiment
22 Jan 15 06:56:57
$OUTR received a new alert. Find out why at http://t.co/5lwmDm2SCs #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 190
22 Jan 15 06:53:56
Short Squeeze Alerts $ESI $PVA $KING $GBX $ALJ $OUTR $WLT $CHGG $HLF http://t.co/UrAj7j0U90
By  +Follow December 10, 2013 9:47AM



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