News

Coinstar, Safeway end relationship

July 10, 2003

BELLEVUE, Wash. -- Coinstar Inc. and Safeway Inc., unable to reach an agreement on terms, will terminate their nine-year relationship. The decision prompted Coinstar to cut its year earnings guidance.

The company reiterated its guidance for the second quarter ended June 30, according to a report by Dow Jones Newswire.

The relationship accounted for 10 percent of revenue for Coinstar, which provides self-service coin-processing kiosks.

Company officials said based on the "de-installation" schedule, it expects 2003 earnings of 74 cents to 85 cents a share on revenue of $170 million to $175 million. The company also expects full-year earnings before interest, taxes, depreciation and amortization of $53 million to $57.5 million.

The company had expected to earn 83 cents to 97 cents a share on revenue of $176 million to $184 million, the report said.

A survey of five analysts by Thomson First Call projects the company will earn 96 cents a share on revenue of $179.3 million in 2003. See related story, "FSV launches payroll debit card through Coinstar."

Coinstar officials were not available to describe the company's de-installation schedule.