Redbox 2008 Annual Report Download - page 45

Seasonality
We have historically experienced seasonality in our revenues with higher revenues in the second half of the
year than in the first half of the year. Our Coin product line generally experiences its highest revenues in the third
calendar quarter, followed by the fourth calendar quarter, and relatively lower revenues in the first half of the year.
Our DVD product line generates lower revenues in the first half of the year. Our Money Transfer and E-payment
product lines generally provide its highest revenue in the fourth quarter. We have not experienced significant
seasonality in our entertainment services. We expect our results of operations will continue to fluctuate as a result of
seasonal fluctuations and our revenue mix between relatively higher margin Coin and DVD product lines, and
relatively lower margin Money Transfer and E-payment product lines.
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 as of December 31, 2008,
our disclosure controls and procedures were effective to ensure that information required to be disclosed by an
issuer in the reports that it files or submits under the Securities Exchange Act of 1934 is accumulated and
communicated to our management, including our principal executive and principal financial officers, or persons
performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
(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,
2008 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, 2008.
(b) Attestation report of the independent registered public accounting firm.
The attestation report of KPMG LLP, our independent registered public accounting firm, on the effectiveness
of our internal control over financial reporting is set forth on page 50.
(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, 2008 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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