Redbox 2004 Annual Report Download - page 28

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Under the terms of our new credit agreement entered into on July 7, 2004, we are permitted and our Board has
authorized us to repurchase up to $3.0 million of our common stock plus proceeds from the issuance of new shares of capital
stock under our employee equity compensation plans. (This authorization is in addition to the 1,233,214 shares repurchased
previous to July 7, 2004 for $22.8 million.) As of December 31, 2004, the cumulative proceeds received from option
exercises or other equity purchases under our equity compensation plans subsequent to July 7, 2004, totaled approximately
$5.0 million bringing the total authorized for purchase under our credit agreement to $8.0 million. We have not made further
share repurchases since entering into our new credit facility on July 7, 2004.
As of December 31, 2004, our deferred income tax assets totaled $34.7 million. In the year ended December 31, 2004,
we recorded $10.2 million in income tax expense, which, as a result of our NOL carryforwards, will not result in cash
payments for income taxes other than those required by some states and alternative minimum taxes.
Off-Balance Sheet Arrangements
As of December 31, 2004, we have no off-balance sheet arrangements.
Contractual Obligations
The tables below summarize our contractual obligations and other commercial commitments as of December 31, 2004:
Payments Due by Period
Contractual Obligations
As of December 31, 2004
Total
Less than 1
year
1 - 3
years
4 - 5
years
After 5
years
(in thousands)
Long-term debt ................................
........
$ 207,908 $ 2,089 $ 4,178 $ 4,178 $ 197,463
Capital lease obligations
..........................
3,414 1,438 1,587 389 —
Operating leases(1) ................................
..
24,044 7,801 11,241 3,759 1,243
Purchase obligations(2)
............................
8,294 8,294 — — —
Total contractual cash obligations
...........
$ 243,660 $ 19,622 $ 17,006 $ 8,326 $ 198,706
(1) One of our lease agreements is a triple net operating lease. Accordingly, we are responsible for other obligations including, but not limited to, taxes, insurance,
utilities and maintenance as incurred.
(2) Purchase obligations consist of outstanding purchase orders issued in the ordinary course of our business.
Amount of Commitment Expiration Per Period
Other Commercial Commitments
As of December 31, 2004 Total
Less than 1
year
1 - 3
years
4 - 5
years
After 5
years
(in thousands)
Letters of credit................................
........................
$ 15,949 $ 15,949 $ — $ — $ —
Total commercial commitments
..............................
$ 15,949 $ 15,949 $ — $ — $ —
With the $81.1 million of net proceeds received from our common stock offering in December 2004, we believe our
existing cash, cash equivalents and amounts available to us under our credit facility will be sufficient to fund our cash
requirements and capital expenditure needs for at least the next 12 months. After that time, the extent of additional financing
needed, if any, will depend on the success of our business. If we significantly increase installations beyond planned levels, or
if coin-counting machine volumes generated or entertainment services machine plays are lower than historical levels, our
cash needs may increase. Furthermore, our future capital requirements will depend on a number of factors, including cash
required by future acquisitions, cash required by or generated by our recently acquired subsidiary, ACMI, our consumer
usage, the timing and number of machine installations, the number of available installable machines held, the type and scope
of service enhancements and the cost of developing potential new product and service offerings and enhancements.