Dec. 08--Redbox Automated Retail's president is leaving as the parent company behind those familiar red movie and game kiosks slashes its outlook.
In a filing with the Securities and Exchange Commission late Monday, Redbox parent Outerwall said Mark Horak would leave the company. Until a new president is appointed, Outerwall CEO Erik Prusch will serve in that role.
Outerwall said a separation agreement with Horak, who was hired in March 2014, has not been completed.
The company, in its filing, also said Redbox's performance has not met expectations and "continues to remain challenged by the historically low box office during the third quarter, which was the worst theatrical box office in Redbox kiosks in four years."
For the full year, the company said it now expects Redbox revenue to total $1.75 billion to $1.765 billion, compared with a previously expected $1.79 billion to $1.815 billion. As a result of issues at Redbox and other businesses, projected earnings per share have been trimmed to between $7.65 and $8.15, compared with a prior range of $8.82 to $9.52 a share.
In the three months that ended in September, Outerwall's revenue decreased by $37.8 million, or 6.9 percent. A $39.7 million decline at Redbox was partially offset by small increases at its Coinstar business and its electronic device recycling business.
In April, Redbox disclosed plans to dramatically pare its headquarters space in Oakbrook Terrace as it sought to cut costs and move more operations to Los Angeles.
Art Pettigrue, an Outerwall spokesman, did not respond to a request for comment.
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