News

Outerwall CEO resigns

Outerwall Inc. announced a leadership change as former chief executive officer J. Scott Valerio stepped down from his position and resigned from the Board.

January 22, 2015

Outerwall Inc. announced a leadership change as former chief executive officer J. Scott Valerio stepped down from his position and resigned from the Board. 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. Denzel served as Director of Outerwall since 2013.

"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, in the announcement. "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," Chan said. "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."

The Outerwall Board will immediately initiate a search process to identify the next CEO, the company said in the announcement.   

Outerwall's also announced  its fourth quarter earnings conference call. The company's consolidated revenue for the fourth quarter of 2014 is expected 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 predicted to be between $2.40 and $2.52. The company forecasted cash flow for the full-year 2014 to be between $235 million and $240 million.

Outerwall will provide 2015 annual guidance during its upcoming earnings call. The company is predicting low single-digit revenue growth and core adjusted EBITDA from continuing operations to be in-line with expected 2014 actuals.

The fourth quarter earnings call will take place February 5, 2015 at 2:30 p.m. PST (5:30 p.m. EST). The company will report its fourth quarter and full year 2014 financial results after the market close. To participate, visit the Outerwall website's Investor Relations section at www.outerwall.com.