Redbox 2006 Annual Report Download - page 5

PART I
Special Note Regarding Forward-Looking Statements
This Annual Report on Form 10-K (“Annual Report”) contains forward-looking statements. These
statements relate to future events or our future financial performance. In some cases, you can identify forward-
looking statements by terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,”
“intend,” “may,” “might,” “plan,” “potential,” “predict,” “should” or “will,” or the negative of such terms.
Forward-looking statements are only predictions and involve known and unknown risks, uncertainties and other
factors, including the risks outlined under Item 1A, Risk Factors and elsewhere in this report, that may cause our
or our industry’s actual results, performance or achievements to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking statements. You should not place
undue reliance on these forward-looking statements. Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee future results, performance or achievements. We
undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, unless required by law. Unless the context requires otherwise, the terms
“Coinstar,” the “Company,” “we,” “us” and “our” refer to Coinstar, Inc. and its subsidiaries.
Item 1. Business.
Summary
We are a multi-national company offering a range of solutions for retailers’ storefronts consisting of self-
service coin counting; entertainment services such as skill-crane machines, bulk vending machines and kiddie
rides; and e-payment services such as prepaid wireless products, stored value cards, payroll cards, prepaid debit
cards and money transfer services. In addition, through our strategic investments in Redbox Automated Retail,
LLC (“Redbox”) and Video Vending New York, Inc. (d.b.a. “DVDXpress”), we offer self-service DVD kiosks
where consumers can rent or purchase movies. We also offer a range of point-of-sale terminals, stand-alone
e-payment kiosks and e-payment enabled coin-counting machines in drugstores, universities, shopping malls,
supermarkets and convenience stores in the United States, the United Kingdom and other countries.
We launched our business in North America with the installation of the first Coinstar®coin-counting
machine in the early 1990s and in 2001 we began offering our coin services in the United Kingdom. Since
inception, our coin-counting machines have counted and processed more than 300 billion coins worth more than
$15.5 billion in more than 435 million transactions. We own and operate more than 13,500 coin-counting
machines in the United States, Canada, Puerto Rico and the United Kingdom, of which approximately 8,200 are
e-payment enabled, and more than 300,000 entertainment services machines in the United States and Mexico.
We also utilize more than 14,000 point-of-sale terminals for e-payment services in the United States and the
United Kingdom.
Our 2004 acquisition of ACMI Holdings, Inc. and its subsidiaries (collectively, “ACMI”), our 2005
acquisition of The Amusement Factory L.L.C. (“Amusement Factory”), our strategic investments with Redbox
and DVDXpress, as well as our 2006 acquisition of Travelex Money Transfer Limited (now known as “Coinstar
Money Transfer” or “CMT”) have significantly broadened our base of existing and potential retailers and the
depth and reach of our sales and field service forces, providing greater opportunity to cross-sell our coin,
entertainment and e-payment services. We have more than 1,100 field service employees throughout the United
States and internationally, who have broadened our geographic reach to develop and maintain strong
relationships with retailers. With the combination of coin, entertainment and e-payment services, we are
positioned as a single-source supplier for retailers to capitalize on the 4th Wall™, an area between the cash
registers and front door of retail locations, that in the past has generally not been managed to optimize revenue
per square foot.
We are headquartered in Bellevue, Washington, where we maintain most of our sales, marketing, research
and development, quality control, customer service operations and administration. In addition, our main
3