Redbox 2000 Annual Report Download - page 4

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FELLOW SHAREHOLDERS
During 2000, Coinstar posted strong financial performance and enjoyed tremendous operational
success. Our United States core business continued to grow rapidly and demonstrated its excellent
cash generating ability. In the United Kingdom, our pilots with three major U.K. supermarket retailers
continued to perform well, positioning us for expansion in 2001. And we made significant progress
in the new products area, creating additional growth opportunities for the future.
For our U.S. core business, revenues increased 32 percent on a 22 percent increase in the number
of Coinstar machines installed. Direct contribution expanded 40 percent, while operating cash flow,
as measured by EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), increased
44 percent.
Our U.S. core business achieved two important milestones in 2000: processing more than $1 billion
in coins in a single year and passing the $100 million mark in annual revenues. These milestones
are important because they underscore the capability and expanding size of our nationwide network
of machines.
In November 2000, Dan Gerrity announced his decision to step down as chief executive officer of
Coinstar. During seven years of leadership, Dan made an enormous contribution to the company and
was instrumental in laying the foundation for our current success and bright outlook.
A UNIQUE BUSINESS
Coinstar is a one-of-a-kind business. We own and operate the only national network of coin-counting
machines in the United States. A sophisticated, interactive network links our coast-to-coast system
of more than 8,500 machines. We have strong relationships with over 200 grocery retailers, including
19 of the top 20 in the U.S. And we have a sophisticated logistics operation that processes nearly
three billion coins each month.
Our 471 dedicated, enthusiastic employees make Coinstar run—and run well—day in and day out.
“We care about the quality of our work,” was the response most often heard from our employees in
a survey, conducted by an independent company. This attitude generates huge benefits for Coinstar.
Examples include machine uptime of 98% and coin counting accuracy of 99.9996% as a result of
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