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Coinstar Completes NCR Buy, Lowers FY Guidance

by Staff Reporter
Posted On: 7/3/2012

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vending, vending machine, vending business, kiosk, automated retailing, Coinstar Inc., Redbox, NCR Corp., DVD rental kiosks

BELLEVUE, WA -- Coinstar Inc. reported in late June that it completed its $100 million acquisition of NCR Corp.'s DVD rental kiosks and allied assets. Under terms of the agreement, Coinstar also assumed certain NCR liabilities related to the assets and entered into a supplier agreement to buy products and services from NCR.

The addition of NCR's automated movie rental business will allow Coinstar to extend its Redbox DVD rental kiosks to new retail partners. The Bellevue, WA, firm said that while it expects to initially incur extra costs as it swaps out the acquired kiosks with new Redbox units, the acquisition should begin boosting its profits sometime in 2013.

For the full year, Coinstar said it expects the deal to reduce its profit by 40¢ to 50¢ a share and increase its capital expenditures by between $40 million and $45 million.

Coinstar Inc. will report financial results for the 2012 second quarter on Thursday, July 26, after the market closes. Coinstar's earnings press release and prepared remarks reviewing the company's financial results and guidance will be available on the investor relations section of the company's website. At 2 p.m. PDT (5 p.m. EDT) on the same day, Coinstar chief executive Paul Davis and chief financial officer J. Scott Di Valerio will host a conference call to answer questions related to the company's performance and guidance.