Redbox 2014 Annual Report Download - page 32

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24
Recent Events
Subsequent Events
• On January 20, 2015, the Board of Directors of Outerwall Inc. announced that Nora M. Denzel, a director of the
Company, was appointed by the Board to serve as Interim Chief Executive Officer of the Company, effective
January 18, 2015, and that J. Scott Di Valerio stepped down as the Company’s Chief Executive Officer, effective
January 18, 2015, and resigned from the Board, effective January 19, 2015.
• On January 23, 2015, we made the decision to shut down our Redbox operations in Canada as the business was not
meeting the company's performance expectations. As a result, we updated certain estimates used in the preparation of
the financial statements and recognized an additional after-tax expense of $1.5 million in the fourth quarter of 2014
related to accelerated recognition of content library and capitalized installation costs on property and equipment. The
remaining value of the content library and capitalized installation costs will be amortized over an expected three-
month wind-down period ending March 31, 2015. Following the final shutdown of the operations in Canada, we
expect Redbox Canada results will be reported as a discontinued operation.
• On February 3, 2015, the Board approved an additional stock repurchase authorization of up to $250.0 million of its
common stock plus the cash proceeds received from the exercise of stock options by the Company's directors and
employees, bringing the total available for repurchases to approximately $413.7 million.
• On February 3, 2015, our board of directors approved a dividend policy and declared a quarterly cash dividend of
$0.30 per share to be paid on March 18, 2015, to all stockholders of record as of the close of business on March 3,
2015. Future quarterly dividend payments will be subject to approval by our board of directors.
Q4 2014 Events
• On November 24, 2014, Redbox announced that, effective December 2, 2014, the rental price for DVDs would
increase by 30 cents to $1.50 a day, and the price for Blu-ray Discs would increase by 50 cents to $2.00 a day; and
that, effective January 6, 2015, the rental price for video games would increase by $1.00 to $3.00 a day.
• On November 20, 2014 Redbox announced a contract extension with Paramount Home Entertainment under the
existing terms. The one-year extension maintains day-and-date access for our customers to Paramount titles through
the end of 2015.
• On October 27, 2014, Redbox entered into an amended and restated content license agreement with Lions Gate Films,
Inc. which extends the term of the existing agreement through September 30, 2016 and can be extended for an
additional year under certain circumstances.
• On October 19, 2014, Redbox, Verizon, the Joint Venture and Verizon Corporate Services Group, Inc. entered into a
Withdrawal and Extinguishment of Rights Agreement pursuant to which Redbox withdrew as a member of the Joint
Venture effective on October 20, 2014. The Joint Venture ceased operation of its consumer service effective October 7,
2014.