Redbox 2006 Annual Report Download - page 37

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of operations will continue to fluctuate as a result of seasonal fluctuations and our revenue mix between
relatively higher margin coin and e-payment services and relatively lower margin entertainment services.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
None.
Item 9A. Controls and Procedures.
(i) Disclosure Controls and Procedures.
Our Chief Executive Officer and Chief Financial Officer conducted an evaluation of the effectiveness of our
disclosure controls and procedures (as defined under Rule 13a-15(e) of the Securities Exchange Act of 1934).
Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure
controls and procedures were effective as of December 31, 2006.
(ii) Internal Control Over Financial Reporting.
(a) Management’s report on internal control over financial reporting.
Our management is responsible for establishing and maintaining adequate internal control over financial
reporting, as such term is defined in the Securities Exchange Act of 1934 Rule 13a-15(f). Under the supervision
and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer,
we conducted an evaluation of the effectiveness of our internal control over financial reporting as of
December 31, 2006 as required by the Securities Exchange Act of 1934 Rule 13a-15(c). In making this
assessment, we used the criteria set forth in the framework in Internal Control-Integrated Framework issued by
the Committee of Sponsoring Organizations of the Treadway Commission. Based on our evaluation under the
framework in Internal Control-Integrated Framework, our management concluded that our internal control over
financial reporting was effective as of December 31, 2006.
We acquired CMT during 2006. Management excluded CMT from its assessment of the effectiveness of our
internal control over financial reporting as of December 31, 2006, including the internal control over financial
reporting associated with CMT, which had total assets of $55.8 million, and total revenue of $9.0 million, which
were included in our consolidated financial statements as of and for the year ended December 31, 2006.
Our management’s assessment of the effectiveness of our internal control over financial reporting as of
December 31, 2006 has been audited by KPMG LLP, an independent registered public accounting firm, as stated
in their attestation report which appears on page 42.
(b) Attestation report of the registered public accounting firm.
The attestation report of KPMG, LLP, our independent registered public accounting firm, on management’s
assessment of the effectiveness of our internal control over financial reporting and the effectiveness of our
internal control over financial reporting is set forth on page 42.
(c) Changes in internal control over financial reporting.
There was no change in our internal control over financial reporting during our fourth fiscal quarter ended
December 31, 2006 that has materially affected, or is reasonably likely to materially affect, our internal control
over financial reporting.
Item 9B. Other Information.
None.
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