Redbox 2005 Annual Report Download - page 9

locations representing a variety of channels including supermarkets, mass merchants, drug stores, convenience
stores, truck stops, and restaurants. A new channel that we expect to grow in the coming year is banks and credit
unions. This is a natural extension for our coin-counting business and is a prime channel for consumers to adopt
our service. With our vast distribution network, we also continue to focus on cross-selling opportunities. We
believe that combining our coin, e-payment and entertainment sales teams and our 4th Wall product portfolio
positions us to see continued results from our cross-selling efforts.
Stronger customer relationships. We continue strengthening existing and building new relationships with
retail customers through our 4th Wall category management program. We believe our unique program and
category management expertise clearly sets us apart from other suppliers at the front end of the store. Our 4th
Wall strategy gives us the ability to work closely with our customer base to consolidate and introduce new
services, while increasing store profits for the retailer. We believe the 4th Wall of retail locations has long been
under-utilized and believe our 4th Wall strategy is a competitive advantage that will drive our growth in the retail
environment for years to come.
International growth. During 2005, we expanded in Puerto Rico with our coin-counting business and in
Mexico with our entertainment services. We continue to grow in these regions as well as in the United Kingdom,
one of our more established international markets. In 2006, we expect to continue exploring opportunities in
countries where we currently have distribution, as well as other countries where we see opportunities for growth,
including Asia Pacific and Europe.
Grow through acquisitions. We continue to explore opportunities to acquire companies and assets in
order to strengthen our position in existing markets and to add complementary products and services to offer to
both our retail partners and consumers. We believe that future acquisitions may enable us to further leverage our
field service team and existing retail relationships thereby improving margins and expanding the geographic
reach of our products and services.
Financial Information About Segments and Geographic Areas
The segment and geographic information required herein is contained in Note 16 to our Consolidated
Financial Statements “Business Segment Information” in Part IV, Item 15(A) of this Annual Report on
Form 10-K.
Where You Can Get Information We File with the SEC
We file annual, quarterly and current reports (including amendments), as well as registration and proxy
statements and other information, with the SEC. These documents are available free of charge on our website at
www.coinstar.com under: About Us—Investor Relations—SEC Filings. In addition, copies of these reports and
other information may be obtained at prescribed rates from the Public Reference Section of the SEC, 450 Fifth
Street, N.W., Washington, D.C. 20549. You can get further information about the SEC’s Public Reference Room
by calling 1-800-SEC-0330. The SEC also maintains a website at http://www.sec.gov that contains reports,
registration statements and other information regarding registrants like us that file electronically with the SEC.
Item 1A. Risk Factors
Factors That May Affect Our Business, Future Operating Results and Financial Condition
You should carefully consider the risks described below before making an investment decision. The risks
and uncertainties described below are not the only risks facing our company. Additional risks and uncertainties
not presently known to us or that we currently deem immaterial also may impair our business operations. If any
of the following risks actually occur, our business could be harmed, the trading price of our common stock could
decline and you could lose all or part of your investment.
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