Redbox 2002 Annual Report Download - page 6

{4}
fellow shareholders
Coinstar is not just about change: quarters, dimes, nickels and pennies. We’re about change: preparing for and meeting future
challenges. The Coinstar team achieved a number of financial and operational goals in 2002 – small milestones that taken in
combination translated into significantly improved results relative to fiscal 2001.
In April 2002 we secured a $90 million Syndicated Senior Credit Facility with Bank of America N.A. as lead agent. The financing
allowed us to retire $36 million of our 13% senior subordinated notes, as well as pay off an existing $15.5 million senior loan.
The attractive terms of the facility provided flexibility and security, which we will require as we grow our business. It also allowed us to
significantly reduce our interest expense. The new financing saved us approximately $2.4 million during the year, and markedly
improved our balance sheet.
Continuing our tradition of double-digit annual revenue growth, consolidated revenue for the full year 2002 increased 21%
to $156 million from $129 million in 2001. This includes a 17% increase in Coinstar North American sales, as well as an impressive
jump in overseas revenue from our United Kingdom operations. We continued to expand the business in 2002, surpassing the
10,000-install milestone and growing the annualized revenue per average unit.
In the second quarter of the year we rolled out the latest Coinstar machine design. The new “backlit” design serves two purposes:
increasing revenue and enabling new products and services. The machine’s bright, translucent panels are lit from behind, providing
greater in-store visibility, which results in an incremental volume lift over time. Additionally, the machine is designed to accept new
hardware, making rapid and cost-effective deployment of new products and services feasible. This is one way we are planning
for success. The Coinstar team achieved its 2002 goal by strategically placing 1,500 backlit units by the end of the year, a telling
measure of our execution capabilities and the progress we continue to make with technological innovation.
During the year we initiated pilots of Coinstar machines installed in locations outside our traditional base of high-traffic supermarkets.
Other pilots involve relationships with third-party service providers. Working with these partners, we hope to find ways to expand
our machine installations in more rural markets, as well as other channels of distribution such as high-traffic drug stores and mass
merchandisers. We believe there could be significant installation growth opportunities resulting from these partnerships.
{ John Reilly }{ Alex Camara }{ Gretchen Marks }
{ Don Rench }{ Mike Doran } { Randy Overturf }