Q4 2011 Earnings Call Transcript

Transcript Call Date 02/06/2012

Operator: Good day, ladies and gentlemen, and welcome to the 2011 Fourth Quarter Coinstar, Incorporated Earnings Conference Call. My name is Jeff and I'll be your coordinator for today. At this time all participants are in a listen-only mode. Later we will facilitate a question-and-answer session. As a reminder this conference is being recorded for replay purposes.

I will now turn the conference to your host for today, Ms. Rosemary Moothart, Director of Investor Relations. You have the floor, ma'am.

Rosemary Moothart - Director of IR: Thank you, Jeff. Good afternoon and welcome to Coinstar's fourth quarter earnings call. Our call today will be hosted by CEO, Paul Davis; and our CFO, Scott Di Valerio, Paul and Scott will make brief remarks and then the majority of our time will be allotted to Q&A.

In our earnings press release, we noted that we had provided prepared remarks from Paul and Scott that include additional information related to 2011 results, 2012 initiatives and 2012 guidance. The prepared remarks are posted on the Investor Relations section of Coinstar website at

During this call, Paul and Scott may reference non-GAAP financial measures. A reconciliation of differences between GAAP and non-GAAP financial measures is provided in the appendix of the earnings release which is also posted on the Investor Relations website.

During this call various remarks we make about future expectations, plans and prospects of the Company constitute forward-looking statements for the purposes of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from expectations, plans and prospects contemplated in these forward-looking statements as a result of various factors including those discussed in our latest 10-K and 10-Q filings with the SEC.

Now, I'll turn the call over to Paul.

Paul Davis - CEO: Thanks Rosemary. I'd like to thank each of you for joining us today. Really what an exciting day for Coinstar and Redbox, and we're glad that we can share with you. We had great results today that I believe reflect terrific execution both across the organization for not only quarter, but for the entire year, particularly excited about the announcement of the Verizon joint venture. You think about it both Verizon and Coinstar two really innovative companies with great brands. Each of these companies bring unique assets to the table with our Redbox brand. We are the leader in DVD rentals. We've been that for the last two quarters. In fact, for the year, we've gained 10.4 share points year-over-year with 37.8, both of our key competitors in the space have lost share over the same timeframe.

Redbox also brings nearly 30 million consumers to the table. As you know, we talk every quarter about our e-mail address and we are at $36 million. We continue to pick up a lot each quarter. We have a terrific national footprint of our kiosk over 35,000 kiosk and 29,000 plus locations. So, we are today within a five-minute drive of 68% of U.S. population. So, the Redbox brand and all of the visibility and impressions we have each quarter, it’s a very, very powerful brand in the entertainment space.

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