Redbox 2007 Annual Report Download - page 36

assumptions, including an immediate, across-the-board increase or decrease in the level of interest rates with no
other subsequent changes for the remainder of the periods.
We are further subject to the risk of foreign exchange rate fluctuation in the normal course of business as a
result of our operations in the United Kingdom, Europe, Canada and Mexico.
Item 8. Financial Statements and Supplementary Data.
See Item 15 for an index to the financial statements and supplementary data required by this item, which are
included as a separate section on page 36 and which are incorporated herein by reference.
Supplemental Quarterly Financial Information
The following table sets forth selected unaudited quarterly financial information for the last eight quarters.
This information has been prepared on the same basis as our audited Consolidated Financial Statements and
includes, in the opinion of management, all normal and recurring adjustments that management considers necessary
for a fair presentation of the quarterly results for the periods. The operating results for any quarter are not
necessarily indicative of the results for future periods. Certain reclassifications have been made to the prior period
balances to conform with the current year presentation.
Dec. 31,
2007(1)
Sept. 30,
2007(2)
June 30,
2007
March 31,
2007
Dec. 31,
2006
Sept. 30,
2006
June 30,
2006(3)
March 31,
2006
Three Month Periods Ended
(In thousands, except per share data)
(unaudited)
Consolidated Statement of
Operations:
Revenue . .................. $133,314 $143,291 $137,356 $132,336 $138,047 $140,036 $130,327 $126,032
Expenses:
Direct operating ............ 83,166 96,209 89,941 89,192 90,856 88,943 84,932 84,874
Operating taxes, net . . ........ 1,946 (9,488) 2,629 2,447 1,936 2,446 2,722 2,825
Marketing . . . ............. 2,009 5,650 2,614 1,626 5,481 4,626 3,389 924
Research and development . . . . . 1,070 1,397 1,345 1,341 1,155 1,457 1,393 1,241
General and administrative . . . . . 13,857 15,685 13,404 12,247 13,033 13,984 12,594 11,366
Depreciation and other ........ 14,724 15,100 14,549 14,468 13,272 13,410 13,295 12,859
Amortization of intangible
assets ................. 1,962 1,813 1,817 1,739 1,722 1,661 1,510 1,327
Impairment and excess inventory
charges . . . ............. 65,220 — — — — — — —
(Loss) income from operations . . . . (50,640) 16,925 11,057 9,276 10,592 13,509 10,492 10,616
Interest income and other, net . . . . . 292 1,808 173 75 165 487 420 471
Interest expense . ............. (4,605) (4,365) (4,125) (3,974) (3,910) (4,120) (3,986) (3,732)
Income (loss) from equity
investments and other ......... 472 2,217 (1,101) (255) (118) (443) 304 191
Early retirement of debt . ........ (1,794) — — — — — — (238)
(Loss) income before income
taxes . .................. (56,275) 16,585 6,004 5,122 6,729 9,433 7,230 7,308
Income tax benefit (expense) . . . . 19,053 (7,520) (2,656) (2,566) (1,689) (4,144) (3,111) (3,129)
Net (loss) income ............. $(37,222) $ 9,065 $ 3,348 $ 2,556 $ 5,040 $ 5,289 $ 4,119 $ 4,179
Net (loss) income per share:
Basic . .................. $ (1.34) $ 0.33 $ 0.12 $ 0.09 $ 0.18 $ 0.19 $ 0.15 $ 0.15
Diluted .................. $ (1.34) $ 0.32 $ 0.12 $ 0.09 $ 0.18 $ 0.19 $ 0.15 $ 0.15
(1) In the fourth quarter of 2007, we recorded an impairment and excess inventory charge which is more fully described in Note 2 to our
Consolidated Financial Statements.
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