Redbox 2009 Annual Report Download - page 57

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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.
Three Month Periods Ended
Dec. 31,
2009(2)
Sept. 30,
2009(1)
June 30,
2009
March 31,
2009(2)
Dec. 31,
2008
Sept. 30,
2008
June 30,
2008(2)
March 31,
2008(3)
(in thousands, except per share data)
(unaudited)
Consolidated Statement of Operations:
Revenue ............................$328,005 $295,970 $282,048 $238,768 $227,864 $203,452 $184,071 $146,294
Expenses:
Direct operating .................. 234,390 203,650 193,941 161,463 150,079 134,342 117,592 92,298
Marketing ....................... 6,152 5,833 5,671 5,101 5,251 7,372 3,788 2,786
Research and development ......... 1,396 1,360 1,299 1,257 1,180 1,157 1,175 1,246
General and administrative ......... 31,771 32,570 32,379 30,313 28,503 22,997 23,554 19,238
Depreciation and other ............. 24,994 23,432 22,844 20,588 19,472 15,384 14,130 12,483
Amortization of intangible assets .... 1,971 2,029 1,961 1,951 1,983 2,041 2,068 2,114
Proxy, write-off of acquisition costs,
and litigation settlement .......... 3,500 — — 1,262 — — 3,084 —
Goodwill impairment loss .......... 7,371 — — — — — — —
Income from operations ................ 16,460 27,096 23,953 16,833 21,396 20,159 18,680 16,129
Foreign currency (loss) gain and other,
net .......................... (585) (270) 93 (162) (1,153) (717) (895) (1,163)
Interest income ................... 24 30 46 108 155 180 625 258
Interest expense .................. (9,821) (9,372) (8,628) (6,510) (5,453) (5,394) (5,847) (4,832)
Income (loss) from equity investments
and other ..................... — — — — 1 (1) 243 (580)
Early retirement of debt ............ — (1,082) — — — — — —
Income from continuing operations before
income taxes ...................... 6,078 16,402 15,464 10,269 14,946 14,227 12,806 9,812
Income taxes .................... (2,719) (6,761) (6,510) (2,960) (5,018) (6,357) (3,856) (3,059)
Income from continuing operations ....... 3,359 9,641 8,954 7,309 9,928 7,870 8,950 6,753
Income (loss) from discontinued operations,
netoftax ......................... — 31,722 (1,996) (1,719) (2,061) (12) (2,001) (879)
Net income .......................... 3,359 41,363 6,958 5,590 7,867 7,858 6,949 5,874
Less: Net income attributable to
non-controlling interests ............. — — — (3,627) (3,647) (3,347) (4,269) (3,173)
Net income attributable to Coinstar, Inc . . . $ 3,359 $ 41,363 $ 6,958 $ 1,963 $ 4,220 $ 4,511 $ 2,680 $ 2,701
Earnings per share attributable to Coinstar,
Inc:
Basic ..............................$ 0.11 $ 1.36 $ 0.23 $ 0.07 $ 0.15 $ 0.16 $ 0.10 $ 0.10
Diluted .............................$ 0.11 $ 1.34 $ 0.23 $ 0.07 $ 0.15 $ 0.16 $ 0.09 $ 0.10
(1) In the third quarter of 2009 we sold the Entertainment Business, which is included in discontinued operations above for all periods
presented.
(2) Proxy, write-off of acquisition costs, and litigation settlement in the fourth quarter of 2009 related to $3.5 million recognized for a
litigation settlement. In the first quarter of 2009 we wrote off acquisition costs of $1.3 million. In the second quarter of 2008, we
recognized $3.1 million in expense related to a proxy contest, the write-off of in-process acquisition costs and a litigation settlement.
(3) In the first quarter of 2008, we acquired GroupEx and the majority ownership interest of Redbox.
Seasonality
We have historically experienced seasonality in our revenue with higher revenue in the second half of the
year than in the first half of the year. Our Coin product line generally experiences its highest revenue in the
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