BELLEVUE, Wash., Jan. 20, 2015 /PRNewswire/ -- Outerwall
Inc. (Nasdaq: OUTR) today announced that Nora M. Denzel,
a member of Outerwall's Board of Directors since 2013, has been
appointed by the Board to serve as interim chief executive officer
and that J. Scott Di Valerio has
stepped down as Outerwall's chief executive officer and resigned
from the Board.
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"On behalf of the company, we want to thank Scott for his many
contributions to Outerwall. We believe the company is
well-positioned due to its strong operating and financial
foundation and a deep and talented team of employees.
Outerwall continues to capitalize on its market-leading brands to
drive profitability and deliver value for shareholders, partners
and customers," said Nelson Chan,
chair of Outerwall's Board of Directors. "To accelerate the
progress we are making, the Board believes that now is the right
time for a leadership change.
"We are pleased that Nora has agreed to serve as interim CEO and
share her significant technology experience and expertise in this
role," continued Chan. "Nora has been an active and valuable
contributor to the Outerwall Board since she joined in 2013,
including service on the Audit and Compensation Committees.
She has a deep understanding of our business, operations and
the strategies we are implementing to drive results."
"I look forward to continuing to work alongside the Outerwall
Board and management team in this expanded role," said Nora M. Denzel, interim CEO of Outerwall.
"With the support of our management team and dedicated employees, I
am confident that we will continue to successfully execute on our
business priorities."
The Outerwall Board will immediately initiate a search process
to identify the next CEO.
Company Narrows Fourth Quarter 2014 Guidance Ranges
Outerwall currently expects consolidated revenue for the fourth
quarter of 2014 to be approximately $598 million to
$602 million. Core adjusted
EBITDA from continuing operations is expected to be approximately
$140 million to $142 million, and
core diluted EPS from continuing operations is expected to be
between $2.40 and $2.52. In
addition, Outerwall expects free cash flow for the full-year 2014
to be between $235 million and $240
million.
Outerwall will provide 2015 annual guidance on its upcoming
fourth quarter 2014 earnings conference call. The company
currently expects low single-digit revenue growth and core adjusted
EBITDA from continuing operations to be approximately in-line with
expected 2014 actuals.
FOURTH QUARTER 2014 EARNINGS CONFERENCE CALL
On February 5, 2015, Outerwall
will report its fourth quarter and full-year 2014 financial results
after the market close. The company's earnings press release and
prepared remarks will be available in the Investor Relations
section of Outerwall's website at www.outerwall.com.
Outerwall also will host a conference call on February 5, 2015, at 2:30
p.m. PST (5:30 EST) to discuss
fourth quarter and full-year 2014 results and full-year 2015
guidance in more detail. The conference call will be webcast live
and archived in the Investor Relations section of Outerwall's
website at www.outerwall.com.
ABOUT NORA M. DENZEL
Nora M. Denzel has been a
Director of Outerwall since February
2013. From February 2008
through August 2012, Denzel held
various management positions at Intuit Inc., including senior vice
president of marketing, big data and social product design, and
senior vice president and general manager of QuickBooks employee
management business unit. Previously, Denzel served as senior
vice president of the global software business unit and the storage
and consulting divisions at Hewlett-Packard Company from
August 2000 to February 2006. Denzel has also worked at
Legato Systems Inc., a data storage management software company,
and International Business Machines Corporation.
ABOUT OUTERWALL INC.
Outerwall Inc. (Nasdaq: OUTR) has more than 20 years of
experience creating some of the most profitable spaces for their
retail partners. Outerwall delivers breakthrough kiosk
experiences that delight consumers and generate revenue for
retailers. As the company that brought consumers Redbox®
entertainment, Coinstar® money services, and
ecoATM® electronics recycling kiosks, Outerwall is leading the
next generation of automated retail and paving the way for
inventive, scalable businesses. Outerwall™ kiosks are in
neighborhood grocery stores, drug stores, mass merchants, malls,
and other retail locations in the United
States, Canada,
Puerto Rico, the United Kingdom, and Ireland. Learn more at www.outerwall.com.
SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS
Certain statements in this press release are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. The words "believe," "estimate,"
"expect," "forecast," "intend," "anticipate," "goals," "guidance,"
variations of such words, and similar expressions identify
forward-looking statements, but their absence does not mean that
the statement is not forward-looking. The forward-looking
statements in this release include, among other things, statements
regarding Outerwall Inc.'s management changes and certain financial
information, including updated guidance. Forward-looking
statements are not guarantees of performance and actual results may
vary materially from the results expressed or implied in such
statements. Differences may result from actions taken by
Outerwall Inc., as well as from risks and uncertainties beyond
Outerwall Inc.'s control. Such risks and uncertainties
include, but are not limited to,
- execution and integration of management changes,
- actions by Outerwall Inc.'s board and management,
- changes resulting from completing our financial statements and
guidance analysis process,
- changes in rental prices,
- competition from other entertainment providers,
- the ability to achieve the strategic and financial objectives
for our entry into new businesses, including ecoATM and
SAMPLEit,
- our ability to repurchase stock and the availability of an open
trading window,
- the termination, non-renewal or renegotiation on materially
adverse terms of our contracts with our significant retailers and
suppliers,
- payment of increased fees to retailers, suppliers and other
third-party providers, including financial service providers,
- the timing of new DVD releases and the inability to receive
delivery of DVDs on the date of their initial releases to the
general public, or shortly thereafter, or in sufficient quantity,
for home entertainment viewing,
- the effective management of our content library,
- the timing of the release slate and the relative attractiveness
of titles in a particular quarter or year,
- the ability to attract new retailers, penetrate new markets and
distribution channels and react to changing consumer demands,
- the ability to generate sufficient cash flow to timely and
fully service indebtedness and adhere to certain covenants and
restrictions,
- the ability to adequately protect our intellectual property,
and
- the application of substantial federal, state, local and
foreign laws and regulations specific to our business.
The foregoing list of risks and uncertainties is illustrative,
but by no means exhaustive. For more information on factors that
may affect performance (including future results), please review
"Risk Factors" described in our most recent Annual Report on Form
10-K and any subsequent Quarterly Reports on Form 10-Q filed with
the Securities and Exchange Commission. These forward-looking
statements reflect Outerwall Inc.'s expectations as of the date of
this press release. Outerwall Inc. undertakes no obligation
to update the information provided herein.
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SOURCE Outerwall Inc.