Bellevue-based Outerwall, best known for its Redbox DVD-rental kiosks and Coinstar coin-counting machines, said today that it’s shutting down its Redbox operations in Canada.
Redbox is pulling out of Canada.
Bellevue-based Outerwall, best known for its Redbox DVD-rental kiosks and Coinstar coin-counting machines, said Thursday it’s shutting down its Redbox operations in Canada.
The business there “is not meeting the company’s performance expectations,” Outerwall said in its fourth-quarter earnings results, released Thursday.
The last day for DVD rentals in Canada will be Feb. 13, and most of the 1,400 kiosks and their contents will be sent to the U.S. by the end of March, according to the Toronto-based newspaper The Globe and Mail.
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The company announced it will take a $1.5 million charge in the fourth quarter related to the closure, and an additional write-off in the first quarter as the Canada business winds down.
Outerwall said Thursday its Redbox segment logged $494 million in sales in the fourth quarter, down slightly from $496.4 million a year ago, despite raising DVD rental rates in December.
Overall, Outerwall reported fourth-quarter sales of $600.6 million and earnings per share of $2.35 for its continuing operations, up from $593.7 million and $1.55 in the year-ago quarter.
For the year, the company logged sales of $2.30 billion and earnings per share of $5.19, down from $2.31 billion and $7.33 a year ago.
Outerwall also said it would be paying its first-ever quarterly dividend — 30 cents per share — on March 18. The company’s board also approved an additional share-repurchase authorization of up to $250 million.