Redbox 2011 Annual Report Download - page 11

We estimate that, at any one time, there is $7.0 billion to $10.0 billion worth of coin sitting idle in households in
the U.S. In 2011, consumers processed more than $3.0 billion worth of coin through our Coin kiosks. Since
inception, our Coin kiosks have counted and processed more than 533.1 billion coins worth more than $30.3
billion in more than 813.7 million self-service coin-counting transactions.
New Ventures
Within our New Ventures segment, we identify, evaluate, build and develop innovative new self-service concepts
in the automated retail space through organic growth and external investment. Our New Ventures segment
consists primarily of our coffee, refurbished electronics and photo self-service concepts.
We generate revenue primarily through fees charged for products and services offered to consumers in select test
markets where we are testing business concepts.
Seasonality
We have historically experienced seasonality in our revenue from our Redbox segment. The summer months
have historically been high rental months followed by lower revenue in September and October, due, in part, to
the beginning of the school year and the introduction of the new television season. However, we have recently
entered into licensing agreements with certain studios that contain delayed rental windows. This has shifted the
availability of certain titles relative to historic patterns, most notably certain titles have shifted from the fourth
quarter holiday season into the first quarter of the following year. Despite this shift, for 2012, we expect our
highest quarterly revenue and earnings in the fourth quarter, however, any seasonal affects may be minimized by
the relative attractiveness of movie titles in a particular quarter or year. Our Coin segment generally experiences
its highest revenue in the second half of the year due to increased retailer foot traffic and holiday shopping in the
fourth quarter and an increase in consumers’ desire for disposable income in the summer months.
Employees
As of December 31, 2011, we had approximately 2,676 employees. Included in this total were more than 1,896
field service employees throughout the U.S. and internationally who have broadened our geographic reach to
develop and maintain strong relationships with retailers and service our kiosks.
Additional Business Information
See Note 14: Business Segments and Enterprise-Wide Information in our Notes to Consolidated Financial
Statements as well as Item 1A. Risk Factors for additional information related to our segments, intellectual
property, competition, limited or sole source suppliers, content, and geographic and significant business
relationship information.
Where You Can Get More Information
We meet information-reporting requirements of the Securities and Exchange Act of 1934 by filing and furnishing
to the Securities and Exchange Commission (“SEC”) reports, including annual reports on Form 10-K, quarterly
reports on Form 10-Q, and current reports on Form 8-K, as well as amendments thereto. These reports and
related materials are available at the SEC website, www.sec.gov, and the SEC’s Public Reference Room at 100 F
Street, N.E., Washington, DC 20549. Information on the operation of the SEC’s Public Reference Room may be
obtained by calling the SEC at 1-800-SEC-0330. We make these reports and related materials available, as soon
as reasonably practicable after we electronically deliver such materials to the SEC, free of charge on the Investor
Relations section of our website, www.coinstarinc.com.
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