Redbox 2003 Annual Report Download - page 5

PART I
Item 1. Business.
Our disclosure and analysis in this Annual Report on Form 10-K contains forward-looking statements
regarding our business, prospects and results of operations that involve risks and uncertainties. Our actual
results could differ materially from the results that may be anticipated by such forward-looking statements and
discussed elsewhere in this report. Factors that could cause or contribute to such differences include, but are not
limited to, those discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations,” as well as those discussed elsewhere in this report. Readers are
cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of
this report. We undertake no obligation to revise any forward-looking statements in order to reflect events or
circumstances that may subsequently arise. Readers are urged to review and consider carefully the various
disclosures made by us in this report and in our other reports filed with the Securities and Exchange Commission
that attempt to advise interested parties of the risks and factors that may affect our business, prospects and
results of operations.
Summary
We were incorporated in the state of Delaware on October 12, 1993. We own and operate the only
multinational fully-automated network of self-service coin-counting machines. Our machines are installed
primarily in supermarkets across the United States, in Canada and in the United Kingdom. We have relationships
with 18 of the 20 largest supermarket chains (excluding mass merchandisers) in the United States and two of the
three largest chains in the United Kingdom, a well-trained field service organization and a sophisticated, highly
secure and scalable two-way, wide-area communications network.
We launched our business in North America with the installation of the first Coinstar®unit in 1993 and in
2001 we began rolling out our coin-counting service in the United Kingdom. Since inception, our business has
counted and processed more than 175 billion coins worth over $8.5 billion in more than 245 million customer
transactions. With over 285 retail partners (including supermarket chains, independent operators and financial
institutions), we currently operate more than 10,700 Coinstar units in 178 regional markets across North America
and in the United Kingdom.
The Coinstar coin-counting unit is highly accurate, durable, easy to use, easy to service and capable of
processing up to 600 coins per minute. Consumers feed loose change into the unit, which sorts and counts the
change and dispenses vouchers that list the dollar value of coins counted, less our transaction fee. The vouchers
may be applied to retail purchases or redeemed for cash at the retail partner’s store. Our coin-counting service
provides consumers with a convenient and reliable means of converting loose coins into spendable cash. Our
service also benefits our retail partners by providing an additional source of revenue, increasing store traffic,
promoting sales and reducing internal coin handling expenses.
Each Coinstar unit is designed to operate as part of a scalable, two-way, wide-area communications
network. Our sophisticated fully-automated network enables us to track each machine 24 hours a day and
provides key financial data and operating statistics to our field service representatives, coin transportation
partners, processing partners, banks and our headquarters for analysis and back-up.
Our internal field service organization of approximately 225 technicians is linked to the Coinstar network,
and each field service technician receives a report every morning via modem detailing which units in his or her
technical service territory require maintenance or repair work. In addition, each technician receives real-time
information throughout the day via wireless paging. The field service organization provides highly responsive
service to our customers and retail partners by performing preventive maintenance and repair on our Coinstar
units which enables us to maintain a system-wide unit availability of greater than 95%.
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