BELLEVUE, Wash., March 14, 2016 /PRNewswire/ -- Outerwall
Inc. (Nasdaq: OUTR) today announced that its Board of Directors has
initiated a process to explore strategic and financial alternatives
to maximize shareholder value. Outerwall has retained Morgan
Stanley & Co. LLC as its financial advisor, and Perkins Coie
LLP as its legal advisor to assist in this process.
In addition, the Company today reaffirmed the Board and
management team's commitment to managing Outerwall's businesses for
profitability and cash flow and focusing on expense management,
operational efficiencies and network optimization, with the
continued goal of returning significant free cash flow to investors
with a preference for dividends and opportunistic debt
retirement.
Consistent with the Company's focus on returning excess cash to
investors and its expectations for cash flow generation in the
coming years, the Board also announced today that it has declared
an increase in the quarterly dividend payable to its shareholders
to $0.60 per share, from $0.30 per share, representing an increase of 100
percent. This dividend is expected to be paid on June 21, 2016 to shareholders of record at the
close of business on June 7,
2016.
"The increase of our quarterly dividend to this sustainable
level, and the decision to explore strategic and financial
alternatives both clearly demonstrate that the Outerwall Board of
Directors and management team are committed to acting in the best
interests of the Company and all shareholders," said Erik E. Prusch, Outerwall's Chief Executive
Officer. "The Board and management team will evaluate all
options thoughtfully and carefully with the support of our
advisors. Throughout the review process, Outerwall will
remain focused on executing on our operational plans, managing our
businesses for profitability and cash flow, and continuing to align
costs with revenue to create operational efficiencies, while
returning significant capital to our investors."
The Company noted that there can be no assurance that the
Board's exploration of strategic and financial alternatives will
result in any particular action or any transaction being pursued,
entered into or consummated, or the timing of any action or
transaction. The Company does not intend to discuss or disclose
developments with respect to this process unless and until the
Board has approved a definitive course of action or the process is
otherwise concluded.
ABOUT OUTERWALL
Outerwall Inc. (Nasdaq: OUTR) has more than 20 years of
experience creating some of the most profitable spaces for their
retail partners. The company 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.
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. Words indicating future events,
performance, results and actions, such as "will" and "expect," and
variations of such words, and similar expressions identify
forward-looking statements, but their absence does not mean that a
statement is not forward-looking. The forward-looking
statements in this press release include, among others, statements
regarding Company actions relating to exploration of strategic and
financial alternatives and related transactions or actions,
management of the business, repurchase of equity and debt, and
payment of dividends. Forward-looking statements are not
guarantees of future actions, events or performance, which may vary
materially from those expressed or implied in such
statements. Differences may result from, among other things,
actions taken by the Company or investors or other third parties,
including those beyond the Company's control. Such risks and
uncertainties include, but are not limited to, results and timing
of the Company's exploration of strategic and financial
alternatives, including related transactions or other actions,
actions by the Company's Board and management and its investors,
continuation of or changes in strategic and financial objectives,
the Company's ability to make equity and debt repurchases and
declare and pay dividends under then applicable circumstances, and
the ability to attract new or maintain retailer and provider
relationships, penetrate or maintain markets and distribution
channels, and react to changing consumer demands. The
foregoing list of risks and uncertainties is illustrative, but by
no means exhaustive. For more information on factors that may
affect future performance, results or actions, please review "Risk
Factors" described in our most recent Annual Report on Form 10-K
and subsequent Quarterly Reports on Form 10-Q filed with the
Securities and Exchange Commission ("SEC"), as well as other public
filings with the SEC. These forward-looking statements
reflect the Company's expectations as of the date hereof. The
Company undertakes no obligation to update the information provided
herein.
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SOURCE Outerwall Inc.