Redbox 2011 Annual Report Download - page 85

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In thousands
Year Ended December 31, 2010 Redbox Coin
New
Ventures
Corporate
Unallocated Total
Revenue ................................. $1,159,709 $275,982 $ 730 $ — $1,436,421
Expenses:
Direct operating ....................... 859,774 138,985 1,493 689 1,000,941
Marketing ............................ 14,231 9,082 505 18 23,836
Research and development .............. — 6,159 1,037 241 7,437
General and administrative .............. 94,854 20,060 5,918 7,797 128,629
Litigation settlement ................... — 5,379 — — 5,379
Segment operating income (loss) ............. 190,850 96,317 (8,223) (8,745) 270,199
Less: depreciation and amortization ....... (93,445) (29,721) (3,826) — (126,992)
Operating income (loss) .................... 97,405 66,596 (12,049) (8,745) 143,207
Foreign currency and other, net ........... — — — 424 424
Interest income ....................... — — — 159 159
Interest expense ....................... — — — (34,864) (34,864)
Income (loss) from continuing operations before
income taxes ........................... $ 97,405 $ 66,596 $(12,049) $(43,026) $ 108,926
In thousands
Year Ended December 31, 2009 Redbox Coin
New
Ventures
Corporate
Unallocated Total
Revenue ................................... $773,430 $258,516 $ 677 $ — $1,032,623
Expenses:
Direct operating ......................... 585,192 128,997 1,343 509 716,041
Marketing .............................. 8,177 7,214 63 25 15,479
Research and development ................. 0 5,120 0 192 5,312
General and administrative ................. 78,490 14,576 1,352 6,680 101,098
Segment operating income (loss) ................ 101,571 102,609 (2,081) (7,406) 194,693
Less: depreciation and amortization .......... (60,688) (28,007) (1,286) — (89,981)
Operating income (loss) ....................... 40,883 74,602 (3,367) (7,406) 104,712
Foreign currency and other, net ............. — — — 31 31
Interest income .......................... — — — — —
Interest expense ......................... — — — (34,248) (34,248)
Loss on early retirement of debt ............. (1,082) (1,082)
Income (loss) from continuing operations before
income taxes .............................. $ 40,883 $ 74,602 $(3,367) $(42,705) $ 69,413
Significant Retailer Relationships
Our Redbox and Coin kiosks are primarily located within retailers. The following retailers accounted for 10% or
more of our consolidated revenue from continuing operations:
Year Ended December 31,
2011 2010 2009
Wal-Mart Stores Inc. ......................................... 17.5% 19.6% 22.3%
Walgreen Co. ............................................... 16.0% 13.7% 10.8%
The Kroger Company ........................................ 11.2% 10.6% 6.5%
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