Redbox 2008 Annual Report Download - page 67

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2008, and assuming no subsequent impairment of the underlying assets, the annual estimated amortization expense
will be as follows:
(In thousands)
2009 ............................................................. $ 496
2010 ............................................................. 415
2011 ............................................................. 192
2012 ............................................................. 192
2013 ............................................................. 121
$1,416
The following unaudited pro forma information represents the results of operations for Coinstar, Inc. inclusive
of Redbox for the years ended December 31, 2008 and December 31, 2007, as if the acquisition had been
consummated as of January 1, 2008 and January 1, 2007. Such pro forma information is not provided for our
GroupEx acquisition as the impact to our consolidated financial statements is not material. This pro forma
information is unaudited and does not purport to be indicative of what may occur in the future:
2008 2007
Year Ended December 31,
(In thousands)
Revenue ................................................... $922,910 $680,412
Net income (loss) ............................................ $ 14,123 $ (23,348)
Net income (loss) per share
Basic ..................................................... $ 0.50 $ (0.84)
Diluted .................................................... $ 0.50 $ (0.84)
Shares:
Basic ..................................................... 28,041 27,805
Diluted .................................................... 28,464 27,805
See Note 18 subsequent event regarding Redbox.
NOTE 4: PROPERTY AND EQUIPMENT
Property and equipment, net (including coin-counting, entertainment, e-payment and DVD machines)
consisted of the following as of December 31:
2008 2007
(In thousands)
Machines ................................................. $612,583 $ 364,564
Computers ................................................ 32,277 15,238
Office furniture and equipment ................................. 20,715 10,119
Vehicles .................................................. 14,098 24,655
Leasehold improvements . . . ................................... 3,715 2,548
683,388 417,124
Accumulated depreciation and amortization ........................ (330,635) (271,083)
$ 352,753 $ 146,041
In February 2008, we reached an agreement with Wal-Mart to significantly expand our coin-counting
machines and our DVD kiosks installed at Wal-Mart locations. In conjunction with the expansion, we have
removed approximately 50% of our cranes, bulk heads and kiddie rides from our existing Wal-Mart locations. This
decision, along with other contract terminations or decisions to scale-back the number of entertainment machines
with other retail partners as well as macro-economic trends negatively affecting the entertainment service industry,
65