Redbox 2013 Annual Report Download - page 23

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the services of one or more of our current executives or key employees or if one or more of our current or former executives or
key employees joins a competitor or otherwise leaves or competes with us, it could harm our business and our ability to
successfully implement our business plan. Additionally, if we are unable to timely hire qualified replacements for our executive
and other key positions, our ability to execute our business plan could be harmed. Even if we can timely hire qualified
replacements, we would expect to experience operational disruptions and inefficiencies during any transition.
Our stock price has been, and may continue to be, volatile.
Our stock price has fluctuated substantially since our initial public offering in July 1997. For example, during the year ended
December 31, 2013, the closing price of our common stock ranged from $46.29 to $68.99 per share. Our stock price may
fluctuate significantly in response to a number of factors, including:
• the termination, non-renewal or re-negotiation of one or more retailer, supplier, distributor, or other third-party
relationships;
• trends and fluctuations in the use of our different lines of business;
• operating results below market expectations and changes in, or our failure to meet, financial estimates of securities
analysts or our own guidance;
• acquisition, merger, investment and disposition activities;
• period-to-period fluctuations in our financial results;
• share repurchases;
• announcements of technological innovations or new products or services by us or our competitors;
• announcements regarding the establishment, modification or termination of relationships regarding the development of
new or enhanced products and services;
• release of analyst reports;
• the level of demand for our stock, including the amount of short interest in our stock;
• economic or other external factors, for example, those relating to the current economic environment and fluctuations
in the trading price of stocks generally;
• ineffective internal controls; and;
• industry developments.
In addition, the securities markets have experienced significant price and volume fluctuations that are unrelated to the operating
performance of particular companies. These market fluctuations may also seriously harm the market price of our common
stock.
Our anti-takeover mechanisms may affect the price of our common stock and make it harder for a third party to
acquire us without the consent of our board of directors.
We have implemented anti-takeover provisions that may discourage takeover attempts and depress the market price of our
stock. Provisions in our certificate of incorporation and bylaws could make it more difficult for a third party to acquire us, even
if doing so would be beneficial to our stockholders. Delaware law also imposes some restrictions on mergers and other business
combinations between us and any acquirer of 15% or more of our outstanding common stock. Furthermore, Washington law
may impose additional restrictions on mergers and other business combinations between us and any acquirer of 10% or more of
our outstanding common stock. These provisions may make it harder for a third party to acquire us without the consent of our
board of directors, even if the offer from a third party may be considered beneficial by some stockholders.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
We are headquartered in Bellevue, Washington. Our corporate administrative, marketing and product development facility in
Bellevue, Washington is located in three office buildings, totaling 118,712 square feet under three leases, two of which expire