Redbox 2014 Annual Report Download - page 3

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Dear Stockholders,
One of my immediate goals when I assumed the role of Outerwall’s Interim CEO was to get to know our businesses
and employees even better than I had during my two-year tenure on the board. As a result, I am further convinced
that no one can do what we do better — successfully deploy, scale and manage automated retail businesses that offer
consumers value and convenience while helping our retail partners drive incremental traffic and revenue. We will
continue to build on those strengths going forward.
In 2014, we successfully executed on our strategy of optimizing our core Redbox and Coinstar businesses, scaling our
ecoATM business, and increasing shareholder returns. Redbox extended existing, or signed new, content agreements
with our studio partners, implemented a price increase for movie and video game rentals, and surpassed four billion
cumulative rentals in November. Coinstar continued to deliver solid results, generating significant cash flow. ecoATM
signed several new retail partner agreements, added more than 1,000 kiosks over the year and has now collected more
than four million devices. We repurchased 30% of outstanding shares and returned 225% of free cash flow to our
shareholders in 2014.
We remain steadfastly focused on maintaining our position as a leader in automated retail,
optimizing our core businesses, gaining efficiencies across the company, and managing
for profitability and free cash flow. In the first quarter of 2015, we discontinued Redbox
Canada since it did not reach our performance targets, reflecting our commitment to
deploy capital to activities that we believe will produce the highest returns. We will
continue to look for opportunities that could leverage our competitive strengths and
grow Outerwall’s top and bottom line.
We continue to maintain our disciplined capital allocation strategy, making investments to achieve the highest returns
and returning 75% to 100% of free cash flow to shareholders. We initiated a new dividend policy, paying the company’s
first quarterly dividend in March 2015, in addition to the board expanding our share repurchase authorization.
We continue to build upon our solid foundation — leading brands with strong consumer engagement, solid relationships
with our retail and studio partners, and a sound financial position — laid through the efforts of our many talented and
dedicated employees. I thank them and you for the continued support.
Regards,
Nora M. Denzel
Interim Chief Executive Officer
April 30, 2015