EX-99.2 3 dex992.htm INVESTOR UPDATE AS OF OCTOBER 28, 2010 Investor update as of October 28, 2010
Investor Update
Oct. 28, 2010
Exhibit 99.2
©
2010 Coinstar, Inc. All Rights Reserved


This presentation contains statements considered forward-looking for purposes of the safe harbor
provisions
under
the
Private
Securities
Litigation
Reform
Act
of
1995.
Actual
results
may
differ
materially
from those indicated by these forward-looking statements as a result of various factors, including those
discussed in our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with
the Securities and Exchange Commission. Coinstar, Inc. assumes no obligation and does not intend to
update these forward-looking statements.
Safe Harbor for Forward-Looking Statements
2
©
2010 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc.


3
*Adjusted EBITDA from continuing
operations
is
defined
as
earnings
before
net
interest expense, income taxes, depreciation, amortization and certain other non-
cash charges including the write-off from early retirement of debt, and stock-
based compensation and share-based expenses from continuing operations.
**
Free
cash
flow
from
continuing
operations
is
defined
as
net
cash
provided
by
operating
activities
from
continuing
operations
less
capital
expenditures
from
continuing operations.
2010
Full
Year
Revenue
by
Segment
(in
millions)
DVD
$1,190
-
$1,205
Coin
$270
-
$280
Total
$1,460
-
$1,485
2010 Full Year –
Other
Adjusted EBITDA from continuing
operations* (in millions)
$291
-
$297
EPS from continuing operations
$2.14
-
$2.20
Shares Outstanding (in millions)
31.9
-
32.1
Estimated Effective Tax Rate
39%
-
40%
Free Cash Flow from continuing
operations**  (in millions)
$100
-
$110
2010 Q4 Guidance
Revenue (in millions)
$415
-
$440
Adjusted EBITDA from continuing
operations* (in millions)
$84
-
$90
EPS from continuing operations
$0.79
-
$0.85
2010 Full Year Capital Expenditures
from Continuing Operations (in millions)
DVD
$135
-
$140
Coin –
New
$9
-
$10
Coin –
Maintenance
$11
-
$13
Corporate/Other
$24
-
$25
Total
$179 -
$188
2010 Full Year –
Installations, net
redbox
Kiosks
8,300
-
8,500
DVD Kiosks
7,500
-
7,700
Coin Kiosks
(200)
-
0
2010 Full Year and Q4 Guidance
As of October 28, 2010
©
2010 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc.


Initial View of 2011
As of October 28, 2010
4
2011 Full Year Guidance
Projected Growth
Consolidated revenue (in millions)
$1,800
-
$1,950
21%
-
34%
Adjusted EBITDA from continuing operations*   (in millions)
$350
-
$380
18%
-
31%
EPS from continuing operations
$3.00
-
$3.50
36%
-
64%
Capital expenditures (in millions)   
$180
-
$210
(4%)
-
17%
Free Cash Flow from continuing operations**  (in millions)
$175
-
$200
59
%-
100%
In addition,
we
expect
5,500
to
6,500
net
new
redbox
kiosks
in
2011
©
2010 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc.


Consolidated Revenue
As of Sept. 30, 2010
5
Revenue
(in millions)
* Guidance as of Oct. 28, 2010
$1,460 –
$1,485*
©
2010 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc.


2010
$  15,994
$  26,466
$  26,986
-
-
-
-
-
-
-
-
$    69,450
2009
$  22,488
$  25,786
$  26,919
$  26,673
$  101,866
2008
$  24,736
$  26,217
$  27,523
$  26,300
$  104,776
6
Segment Information (in thousands)
As of Sept. 30, 2010
DVD
Coin
2010
$  44,431
$  39,049
$  53,677
-
-
-
-
-
-
-
-
$ 137,152
2009
$  20,899
$  24,157
$  27,391
$  29,461
$ 101,908
2008
$    8,258
$  10,533
$  12,779
$  18,599
$   50,169
Operating Profit:
2010
$ 59,993
$ 70,427
$ 74,717
-
-
-
-
-
-
-
-
$ 205,137
2009
$ 58,056
$ 64,919
$ 69,641
$ 66,497
$ 259,113
2008
$ 59,329
$ 64,585
$ 71,104
$ 66,608
$ 261,626
2007
$ 54,915
$ 62,523
$ 67,513
$ 66,365
$ 251,316
2006
$ 50,683
$ 57,408
$ 61,610
$ 60,789
$ 230,490
DVD (from acquisition date)
Coin
Revenue:
2010
$ 263,130
$ 271,929
$ 305,470
-
-
-
-
-
-
-
-
$ 840,528
2009
$ 154,697
$ 188,925
$ 198,085
$ 231,804
$ 773,511
2008
$   60,513
$   89,956
$ 104,192
$ 133,792
$ 388,453
2007
$     2,602
$     3,063
$     1,649
$     2,216
$     9,530
2006
$        281
$        876
$        891
$     2,405
$     4,453
2010
$ 10,509
$   7,706
$   7,376
-
-
-
-
-
-
-
-
$  25,591
2009
$   6,981
$   7,437
$   7,434
$   7,398
$  29,250
2008
$   6,723
$   6,018
$   6,329
$   6,746
$  25,816
DVD
Coin
2010
$ 22,171
$ 23,906
$ 24,006
-
-
-
-
-
-
-
-
$  70,083
2009
$ 13,169
$ 14,738
$ 15,541
$ 17,283
$  60,731
2008
$   5,468
$   7,719
$    8,655
$ 12,332
$  34,174
Depreciation, Amortization and Other:
Q1
Q2
Q3
Q4
YTD
Q1
Q2
Q3
Q4
YTD
Q1
Q2
Q3
Q4
YTD
Q1
Q2
Q3
Q4
YTD
Q1
Q2
Q3
Q4
YTD
Q1
Q2
Q3
Q4
YTD
©
2010 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc.


2010
19,100
19,000
18,900
-
-
-
-
-
-
-
2009
18,400
18,400
18,800
19,200
2008
15,500
16,500
17,500
18,400
2007
13,800
14,200
14,500
15,400
2006
13,000
13,100
13,100
13,500
7
Installations and Same Store Sales
As of Sept. 30, 2010
DVD Kiosks
(rounded)
2010
24,800
26,900
28,500
-
-
-
-
-
-
-
2009
15,400
17,900
20,600
22,400
2008
7,900
9,600
11,800
13,700
2007
3,000
4,300
5,700
7,000
2006
1,000
1,500
1,700
2,200
Coin Kiosks  (rounded)
Coin Kiosk Same Store Sales
2010
0.5%
7.9%
7.9%
-
-
-
-
-
-
-
2009
-5.0%
-4.3%
-5.4%
-3.9%
2008
-0.2%
-3.2%
-1.8%
-5.0%
2007
4.3%
4.4%
3.7%
1.7%
2006
7.8%
7.6%
7.0%
6.2%
DVD Kiosk Same Store Sales
2010
21.0%
3.5%
17.2%
-
-
-
-
-
-
-
2009
35.0%
33.0%
26.0%
21.0%
2008
37.4%
63.2%
40.6%
64.3%
©
2010 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc.
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4


2010
59.0%
56.4%
59.7%
-
-
-
-
-
-
-
-
58.4%
2009
59.6%
57.4%
58.1%
54.0%
57.0%
2008
65.2%
63.0%
62.5%
62.2%
62.9%
2010
$ 31,517
$ 52,822
$ 48,135
-
-
-
-
-
-
-
-
$ 132,474
2009
$ 34,987
$ 38,288
$ 28,647
$ 46,545
$ 148,467
2008
$ 28,182
$ 34,653
$ 47,692
$ 33,442
$ 143,969
2007
$   7,495
$ 11,926
$ 15,375
$ 15,047
$   49,843
2006
$   1,725
$   4,159
$   3,727
$ 13,197
$   22,808
8
Other Information
As of Sept. 30, 2010
DVD Gross Margin
Consolidated Capital Expenditures for Continuing Operations (in thousands)
Q1
Q2
Q3
Q4
YTD
Q1
Q2
Q3
Q4
YTD
©
2010 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc.


Top 5 Customers* –
DVD and Coin Lines of Business
and Consolidated Company
As of Sept. 30, 2010
9
*  As measured by revenue.
** All Walmart
related companies, including Sam’s Club and ASDA.
DVD
Walmart**
Walgreens
Kroger
McDonald’s
7-Eleven
Coin
Kroger
Walmart**
Supervalu
Delhaize
Ahold
All LOBs
Walmart**
Walgreens
Kroger
Supervalu
McDonald’s
©
2010 Coinstar, Inc. All Rights Reserved. These materials may not be reproduced, altered or distributed without the express written consent of Coinstar, Inc.