Coinstar Falls After Hours on Management Shake-Up
Coinstar (NASDAQ: CSTR), the operator of RedBox DVD kiosks, announced on Thursday afternoon that its CEO, Paul Davis, will be retiring on March 31.
Davis will be replaced by Coinstar's current chief financial officer J. Scott Di Valerio who will also join the company's board of directors. The company's Chairman of the Board Deborah Bevier said that Di Valerio's move up to CEO “is a direct result of the Board's long-time focus on developing a deep management team.”
Davis has been with the company for nearly four years. Coinstar also announced that Galen Smith, senior vice president of finance at RedBox Automated Retail, LLC, will succeed Di Valerio has chief financial officer. Along with announcing the management changes, Coinstar also backed its prior guidance for full year revenue and core adjusted EBITDA from continuing operations which was provided on October 25, 2012.
The company added that its core diluted EPS from continuing operations is trending at or above the high end of the previously provided range as a result primarily of lower G&A expenses and certain tax benefits for RedBox. In Thursday's after hours trading session, Coinstar traded down nearly four percent.
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