Redbox 2011 Annual Report Download - page 9

Special Note Regarding Forward-Looking Statements
This Annual Report on Form 10-K (“Annual Report”) contains forward-looking statements. These statements
relate to future events or our future financial performance. In some cases, you can identify forward-looking
statements by terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,”
“may,” “might,” “plan,” “potential,” “predict,” “should” or “will,” or the negative of such terms. Forward-
looking statements are only predictions and involve known and unknown risks, uncertainties and other factors,
including the risks outlined under Item 1A. Risk Factors and elsewhere in this report, that may cause our, or our
industry’s, actual results, performance or achievements to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking statements. You should not place
undue reliance on these forward-looking statements. Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee future results, performance or achievements. We
undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, unless required by law. Unless the context requires otherwise, the terms
“Coinstar,” the “Company,” “we,” “us” and “our” refer to Coinstar, Inc. and its subsidiaries.
PART I
ITEM 1. BUSINESS
Overview
We were incorporated in Delaware on October 12, 1993 and are a leading provider of automated retail solutions
that offer convenient products and services that benefit consumers and drive incremental retail traffic and
revenue for retailers. Our core offerings in automated retail include our Redbox business, where consumers can
rent or purchase movies and video games from self-service kiosks (“Redbox” segment), and our Coin business,
where consumers can convert their coin to cash or stored value products at self-service coin counting kiosks
(“Coin” segment). Our New Ventures business (“New Ventures” segment) is focused on identifying, evaluating,
building, and developing innovative self-service concepts in the marketplace.
Summary of Recent Divestitures and Acquisitions
The following is a summary of the acquisitions and divestitures that we made during the last five years:
Year Transaction
2008 • We increased our ownership percentage of Redbox Automated Retail, LLC (“Redbox”)
from 47.3% to 51.0% in the first quarter.
• We acquired GroupEx Financial Corporation, JRJ Express Inc., and Kimeco, LLC, part
of our money transfer business (the “Money Transfer Business”) in the first quarter.
2009 • We increased our ownership percentage of Redbox from 51.0% to 100.0% in the first
quarter.
• We sold our subsidiaries comprising our entertainment business in the third quarter.
2010 • We sold our subsidiaries comprising our electronic payment business in the second
quarter.
2011 • We sold our subsidiaries comprising the Money Transfer Business in the second quarter.
On February 3, 2012, Redbox entered into a Limited Liability Company Agreement and related arrangements
with Verizon Ventures IV LLC, a wholly owned subsidiary of Verizon Communications Inc., to form a joint
venture (the “Joint Venture”) for the primary purpose of developing, launching, marketing and operating a
nationwide “over-the-top” video distribution service providing consumers with access to video programming
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