Redbox 1999 Annual Report Download - page 8
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This has been a year of tremendous growth for
Coinstar, and our financial performance reflects
the rapid development of the company. In 1999,
our network of Coinstar machines increased
44%, while revenue grew 63%, direct contri-
bution increased by 84% and our operating
cash flow (as measured by EBITDA) increased
$13.4 million.
We achieved several milestones throughout the
year. We processed our 50 millionth customer
transaction and reached the $2 billion mark for
total coins processed through our network,
including $873 million in 1999 alone.
Additionally, we expanded our service
internationally and established an exciting e-
services subsidiary to continue building our
platform for growth.
Our progress in 1999 sets the stage for growth
in future years. In general, as each Coinstar
machine ages, volume per unit climbs and as
more machines are installed, service cost per
unit drops. As a result, we were able to increase
our direct contribution margin from
approximately 44% to 50% during the year,
even though we deployed a record 2,139 units
and opened 27 new markets.
Dear Shareholders
Dan Gerrity (left)
President and CEO
Jens H. Molbak (right)
Founder and Chairman of the
Board