Ohio | 1-4879 | 34-0183970 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||
5995 Mayfair Road, P.O. Box 3077, North Canton, Ohio | 44720-8077 | |||
(Address of principal executive offices) | (Zip Code) |
Item 2.02 Results of Operations and Financial Condition |
Item 9.01 Financial Statements and Exhibits |
(d) Exhibits. | ||||
Exhibit | ||||
Number | Description | |||
99.1 | News release of Diebold, Incorporated dated April 25, 2012 |
Diebold, Incorporated | ||||
April 25, 2012 | By: | /s/ Bradley C. Richardson | ||
Name: | Bradley C. Richardson | |||
Title: | Executive Vice President and Chief Financial Officer |
Exhibit | ||
Number | Description | |
99.1 | News release of Diebold, Incorporated dated April 25, 2012 |
![]() | ||
Media contact: | Investor contact: | |
Mike Jacobsen, APR | Chris Bast | |
+1 330 490 3796 | +1 330 490 6908 | |
michael.jacobsen@diebold.com | christopher.bast@diebold.com |
• | 1Q EPS from continuing operations of $0.71, or $0.74 non-GAAP* |
• | Total revenue for 1Q 2012 increased 13.7% compared with prior-year period |
• | Improvement in both gross and operating margin |
• | 2012 net debt* decreased $39.3 million to a net debt of $46.6 million; free cash use improved $62.7 million |
• | Company raises guidance for revenue and earnings |
• | Revenue |
Previous Guidance | Current Guidance | |
Total revenue | 3% to 6% | 7% to 10% |
Financial self-service | 5% to 8% | 10% to 13% |
Security | 1% to 4% | 1% to 4% |
Brazil election sys. / lottery | $60 million to $90 million | $60 million to $90 million |
• | Earnings per share |
Previous Guidance | Current Guidance | |
2012 EPS (GAAP) | $2.18 - $2.41 | $2.38 - $2.61 |
Restructuring charges | 0.08 - 0.06 | 0.08 - 0.06 |
Non-routine exp. | 0.04 - 0.03 | 0.04 - 0.03 |
2012 EPS non-GAAP* | $2.30 - $2.50 | $2.50 - $2.70 |
Revenue Summary by Product and Service Solutions | ||||||||||
(In Thousands) | ||||||||||
Q1 2012 | Q1 2011 | % Change | ||||||||
Financial Self-Service | ||||||||||
Service | $ | 299,935 | $ | 264,456 | 13.4 | % | ||||
Product | 261,067 | 198,640 | 31.4 | % | ||||||
Total Fin. self-service | 561,002 | 463,096 | 21.1 | % | ||||||
Security Solutions | ||||||||||
Service | 96,840 | 99,918 | (3.1 | )% | ||||||
Product | 38,033 | 43,413 | (12.4 | )% | ||||||
Total Security | 134,873 | 143,331 | (5.9 | )% | ||||||
Total Fin. self-service & security | 695,875 | 606,427 | 14.8 | % | ||||||
Election systems & lottery | 2,616 | 7,730 | (66.2 | )% | ||||||
Total Revenue | $ | 698,491 | $ | 614,157 | 13.7 | % | ||||
Revenue Summary by Geographic Segment | ||||||||||
Q1 2012 | Q1 2011 | % Change | ||||||||
Diebold North America | $ | 399,920 | $ | 305,964 | 30.7 | % | ||||
Diebold International | ||||||||||
Latin America (incl. Brazil) | 137,668 | 152,888 | (10.0 | )% | ||||||
Asia Pacific | 96,200 | 83,889 | 14.7 | % | ||||||
Europe, Middle East, Africa | 64,703 | 71,416 | (9.4 | )% | ||||||
Total Diebold International | 298,571 | 308,193 | (3.1 | )% | ||||||
Total Revenue | $ | 698,491 | $ | 614,157 | 13.7 | % |
Q1 2012 | Q1 2011 | |||||
Other income/(expense) | $ | (90 | ) | $ | 23 | |
Foreign ex. gain/(loss), net | 545 | (1,046 | ) | |||
Interest expense | (7,608 | ) | (8,673 | ) | ||
Investment income | 11,955 | 10,898 | ||||
Total other income / (expense), net | $ | 4,802 | $ | 1,202 |
1. | Profit/loss summary - 1st quarter comparison (Dollars in millions) |
Q1 2012 | Q1 2011 | |||||||||||||||||||||
Rev | Gross Profit | % of Sales | OPEX | OP | % of Sales | Rev | Gross Profit | % of Sales | OPEX | OP | % of Sales | |||||||||||
$698.5 | $193.2 | 27.7 | % | $138.6 | $54.6 | 7.8 | % | GAAP Results | $614.2 | $149.4 | 24.3 | % | $140.5 | $8.9 | 1.4 | % | ||||||
(0.7 | ) | (2.4 | ) | 1.7 | Restructuring | 6.2 | (5.6 | ) | 11.8 | |||||||||||||
— | (0.9 | ) | 0.9 | Non-rout. Exp | — | (5.8 | ) | 5.8 | ||||||||||||||
— | — | — | Non-rout. Inc | — | — | — | ||||||||||||||||
$698.5 | $192.5 | 27.6 | % | $135.3 | $57.3 | 8.2 | % | Non-GAAP Results | $614.2 | $155.6 | 25.3 | % | $129.2 | $26.4 | 4.3 | % |
2. | Reconciliation of diluted GAAP EPS to non-GAAP EPS from continuing operations measures: |
Q1 2012 | Q1 2011 | |||||
Total EPS from continuing operations (GAAP measure) | $ | 0.71 | $ | 0.04 | ||
Restructuring charges | 0.02 | 0.14 | ||||
Non-routine expenses | 0.01 | 0.05 | ||||
Non-routine income | — | — | ||||
Total adjusted EPS (non-GAAP measure) | $ | 0.74 | $ | 0.23 |
3. | Free cash flow / (use) is calculated as follows: |
Q1 2012 | Q1 2011 | |||||
Net cash used by operating activities (GAAP measure) | $ | (26,021 | ) | $ | (90,151 | ) |
Capital expenditures | (12,297 | ) | (10,902 | ) | ||
Free cash flow / (use) (non-GAAP measure) | $ | (38,318 | ) | $ | (101,053 | ) |
4. | Net investment/(debt) is calculated as follows: |
3/31/2012 | 12/31/2011 | 3/31/2011 | |||||||
Cash, cash equivalents and short-term investments (GAAP measure) | $ | 611,488 | $ | 620,773 | $ | 552,206 | |||
Debt instruments | (658,108 | ) | (628,503 | ) | (638,090 | ) | |||
Net investment/(debt) (non-GAAP measure) | $ | (46,620 | ) | $ | (7,730 | ) | $ | (85,884 | ) |
• | competitive pressures, including pricing pressures and technological developments; |
• | changes in the company's relationships with customers, suppliers, distributors and/or partners in its business ventures; |
• | changes in political, economic or other factors such as currency exchange rates, inflation rates, recessionary or expansive trends, taxes and regulations and laws affecting the worldwide business in each of the company's operations, including Brazil, where a significant portion of the company's revenue is derived; |
• | global economic conditions, including any additional deterioration and disruption in the financial markets, including the bankruptcies, restructurings or consolidations of financial institutions, which could reduce our customer base and/or adversely affect our customers' ability to make capital expenditures, as well as adversely impact the availability and cost of credit; |
• | acceptance of the company's product and technology introductions in the marketplace; |
• | the company's ability to maintain effective internal controls; |
• | changes in the company's intention to repatriate cash and cash equivalents and short-term investments residing in international tax jurisdictions could negatively impact foreign and domestic taxes; |
• | unanticipated litigation, claims or assessments, as well as the impact of any current/pending lawsuits; |
• | variations in consumer demand for financial self-service technologies, products and services; |
• | potential security violations to the company's information technology systems; |
• | the investment performance of our pension plan assets, which could require us to increase our pension contributions, and significant changes in health care costs, including those that may result from government action; |
• | the amount and timing of repurchases of the company's common shares, if any; |
• | the outcome of the company's global FCPA review and any actions taken by government agencies in connection with the company's self disclosure, including the pending SEC investigation; and |
• | the company's ability to achieve benefits from its cost-reduction initiatives and other strategic changes, including its restructuring actions. |
Three months ended | |||||||
March 31, | |||||||
2012 | 2011 | ||||||
Net Sales | |||||||
Service | $ | 396,865 | $ | 364,374 | |||
Product | 301,626 | 249,783 | |||||
Total | 698,491 | 614,157 | |||||
Cost of goods | |||||||
Service | 285,396 | 275,890 | |||||
Product | 219,855 | 188,863 | |||||
Total | 505,251 | 464,753 | |||||
Gross Profit | 193,240 | 149,404 | |||||
Percent of net sales | 27.7 | % | 24.3 | % | |||
Operating expenses | |||||||
Selling, general and administrative | 119,795 | 121,111 | |||||
Research, development and engineering | 18,801 | 19,424 | |||||
Total | 138,596 | 140,535 | |||||
Percent of net sales | 19.8 | % | 22.9 | % | |||
Operating profit | 54,644 | 8,869 | |||||
Percent of net sales | 7.8 | % | 1.4 | % | |||
Other income (expense), net | 4,802 | 1,202 | |||||
Income from continuing operations before taxes | 59,446 | 10,071 | |||||
Taxes on income | (13,481 | ) | (5,925 | ) | |||
Income from continuing operations | 45,965 | 4,146 | |||||
Loss from discontinued operations, net of tax | — | (11 | ) | ||||
Net income | 45,965 | 4,135 | |||||
Less: net income attributable to noncontrolling interest | (802 | ) | (1,634 | ) | |||
Net income attributable to Diebold, Inc. | $ | 45,163 | $ | 2,501 | |||
Basic weighted average shares outstanding | 62,725 | 65,762 | |||||
Diluted weighted average shares outstanding | 63,333 | 66,230 | |||||
Basic Earnings Per Share: | |||||||
Income from continuing operations | $ | 0.72 | $ | 0.04 | |||
Loss from discontinued operations | — | — | |||||
Net income | $ | 0.72 | $ | 0.04 | |||
Diluted Earnings Per Share: | |||||||
Income from continuing operations | $ | 0.71 | $ | 0.04 | |||
Loss from discontinued operations | — | — | |||||
Net income | $ | 0.71 | $ | 0.04 | |||
Amounts Attributable to Diebold, Inc. | |||||||
Income from continuing operations | $ | 45,163 | $ | 2,512 | |||
Loss from discontinued operations | — | (11 | ) | ||||
Net income attributable to Diebold, Inc. | $ | 45,163 | $ | 2,501 |
March 31, 2012 | December 31, 2011 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 311,437 | $ | 333,920 | |||
Short-term investments | 300,051 | 286,853 | |||||
Trade receivables, net | 447,949 | 414,969 | |||||
Inventories | 493,831 | 440,900 | |||||
Other current assets | 282,629 | 255,713 | |||||
Total current assets | 1,835,897 | 1,732,355 | |||||
Securities and other investments | 74,876 | 74,869 | |||||
Property, plant and equipment, net | 192,511 | 192,694 | |||||
Goodwill | 257,374 | 253,063 | |||||
Other assets | 270,734 | 264,462 | |||||
Total assets | $ | 2,631,392 | $ | 2,517,443 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities | |||||||
Notes payable | $ | 39,425 | $ | 21,722 | |||
Accounts payable | 231,478 | 221,964 | |||||
Other current liabilities | 596,420 | 580,531 | |||||
Total current liabilities | 867,323 | 824,217 | |||||
Long-term debt | 618,095 | 606,154 | |||||
Long-term liabilities | 220,971 | 228,812 | |||||
Total Diebold, Inc. shareholders' equity | 894,047 | 826,986 | |||||
Noncontrolling Interests | 30,956 | 31,274 | |||||
Total equity | 925,003 | 858,260 | |||||
Total liabilities and equity | $ | 2,631,392 | $ | 2,517,443 |
Three months ended | |||||||
March 31, | |||||||
2012 | 2011 | ||||||
Cash flow from operating activities: | |||||||
Net income | $ | 45,965 | $ | 4,135 | |||
Adjustments to reconcile net income to cash used in operating activities: | |||||||
Depreciation and amortization | 19,711 | 19,246 | |||||
Other | 2,281 | 1,526 | |||||
Cash flow from changes in certain assets and liabilities: | |||||||
Trade receivables | (26,535 | ) | (8,072 | ) | |||
Inventories | (45,268 | ) | (21,955 | ) | |||
Accounts payable | 7,063 | (29,404 | ) | ||||
Certain other assets and liabilities | (29,238 | ) | (55,627 | ) | |||
Net cash used in operating activities | (26,021 | ) | (90,151 | ) | |||
Cash flow from investing activities: | |||||||
Net investment activity | (5,232 | ) | 9,689 | ||||
Capital expenditures | (12,297 | ) | (10,902 | ) | |||
Increase in certain other assets & other | (2,254 | ) | 3,410 | ||||
Net cash (used in) provided by investing activities | (19,783 | ) | 2,197 | ||||
Cash flow from financing activities: | |||||||
Dividends paid | (18,094 | ) | (18,650 | ) | |||
Net borrowings (repayments) | 29,460 | 71,427 | |||||
Repurchase of common shares | (2,885 | ) | (21,451 | ) | |||
Other | 10,059 | 4,632 | |||||
Net cash provided by financing activities | 18,540 | 35,958 | |||||
Effect of exchange rate changes on cash | 4,781 | 2,900 | |||||
Decrease in cash and cash equivalents | (22,483 | ) | (49,096 | ) | |||
Cash and cash equivalents at the beginning of the period | 333,920 | 328,658 | |||||
Cash and cash equivalents at the end of the period | $ | 311,437 | $ | 279,562 |
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