Redbox 2004 Annual Report Download - page 2

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Fellow shareholders:
Innovation and core values have led Coinstar, Inc.’s growth over the past 13 years.
This drive for innovation has never been more evident than in 2004. This past year
Coinstar was transformed from a coin-counting business to a multidimensional business,
creating growth opportunities in a variety of market areas.
In 2004 we focused on creating additional revenue opportunities for our customers
and fortifying our leadership position in the marketplace. Through key acquisitions, added
functionality on our coin-counting machines, important strategic alliances and extended
customer relationships, we built a strong foundation for future growth.
Diversified Business
We significantly broadened our product offerings and lines of
business through a number of key acquisitions. In July of 2004,
we more than doubled the size of our business by acquiring
American Coin Merchandising, Inc. (ACMI), a leader in entertainment
services. The ACMI product line includes skill crane machines,
bulk vending and kiddie rides found at thousands of retail locations
in North America, adding a number of new distribution channels
for Coinstar. The acquisition of CellCards of Illinois, L.L.C. and
Telesouth Communications dramatically broadened our product
portfolio and increased our e-payment services business to thousands
of convenience and drug store locations. In addition to our self-service
kiosks, we now offer retailers an in-lane delivery option.
Increased Distribution
Our retail locations grew from 10,700 at the beginning of the year, to more than
44,000 at the close of 2004. We exceeded our installation plan for new coin-counting
kiosks, ending the year with over 12,000 machines. We added an additional 17,000
e-payment locations, including point-of-sale terminals and kiosks, by year-end.
We strengthened relationships with many of our key customers adding
services, locations and distribution channels. The ACMI acquisition brought
18,000 locations, including mass merchants, warehouse clubs, restaurants,
entertainment centers and truck stops, most of which were new to Coinstar.
Coinstar Centers, U.S. Coinstar Centers, U.K.