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Coinstar Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: October 27, 2011 04:38PM
Coinstar Inc. (CSTR) filed Quarterly Report for the period ended 2011-09-30. Coinstar Inc. has a market cap of $1.67 billion; its shares were traded at around $54.2 with a P/E ratio of 19.5 and P/S ratio of 1.1. Coinstar Inc. had an annual average earning growth of 17% over the past 10 years. GuruFocus rated Coinstar Inc. the business predictability rank of 4-star.
Highlight of Business Operations:We also review same store sales which we calculate for our segments on a location basis. Most of our locations have a single kiosk, but in locations with high-performing kiosks, we may add additional kiosks to drive incremental revenue and provide a broader product offering. Same store sales reflects the change in revenue from locations that have been open for more than 13 months by the end of the reporting period compared with the same locations in the same period of the prior year.
$0.5 million and $0.9 million increases in depreciation and amortization expense and general and administrative expenses, respectively, due to higher allocated expenses from our shared service support function to support overall business growth and strengthening of our infrastructure.
$0.7 million and $1.5 million increase in depreciation and amortization expense and general and administrative expenses, respectively, due to higher allocated expenses from our shared service support function to support overall business growth and strengthening of our infrastructure and expense related to an international tax assessment; and a
Our effective tax rate from continuing operations was 38.4% and 40.3% for the nine months ended September 30, 2011 and 2010, respectively. The decrease in our effective tax rate was attributable primarily to higher levels of federal and state research and general business credits.
We believe our existing cash, cash equivalents and amounts available to us under our new credit facility will be sufficient to fund our cash requirements and capital expenditure needs for at least the next 12 months. After that time, the extent of additional financing needed, if any, will depend on the success of our business. If we significantly increase installations beyond planned levels or if coin-counting kiosk or DVD kiosk volumes generated are lower than historical levels, our cash needs may increase. Furthermore, our future capital requirements will depend on a number of factors, including consumer use of our services, the timing and number of machine installations, the number of available installable machines, the type and scope of service enhancements and the cost of developing potential new product service offerings and enhancements and cash required to fund future acquisitions.
Stocks Discussed: CSTR,