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 February 11, 2016 |
Diebold, Incorporated | ||||
February 11, 2016 | By: | /s/ Christopher A. Chapman | ||
Name: | Christopher A. Chapman | |||
Title: | Senior Vice President and Chief Financial Officer |
Exhibit | ||
Number | Description | |
99.1 | News release of Diebold, Incorporated dated February 11, 2016 |
![]() | pressrelease | |
Media contact: | Investor contact: | |
Mike Jacobsen, APR | Steve Virostek | |
+1 330 490 3796 | +1 330 490 6319 | |
michael.jacobsen@diebold.com | stephen.virostek@diebold.com |
• | Q4 GAAP EPS attributable to Diebold was $0.54, or $0.78 per share on a non-GAAP basis |
• | Full-year GAAP EPS attributable to Diebold was $1.17, or $1.88 on a non-GAAP basis |
• | Gross margin for the fourth quarter 2015 increased 120 basis points to 28.7% from the prior-year period, up 190 basis points on a non-GAAP basis |
• | Company introduces revenue and earnings outlook for 2016 |
• | Won a contract with a top-three U.S. bank for more than 1,500 full-function Diebold series ATMs, supporting its branch transformation efforts. |
• | Signed a product and services agreement with Barclays in the United Kingdom to modernize its fleet with new Diebold ATMs. |
• | Entered into an agreement with Unicredit to deploy 400 recycling units and 700 cash dispensers over the next three years across Europe. |
• | Partnered with the largest bank in Singapore to help drive financial inclusion by delivering the first ATMs in the country capable of providing services to visually impaired consumers. |
• | Received an order from Davivienda for 300 new ATMs and an accompanying integrated services contract for branch locations in El Salvador, Honduras and Costa Rica. |
• | Made inroads by closing our first three software contracts for Phoenix solutions in the U.S. regional bank space. |
Current Guidance | |
Total Revenue | Relatively flat (up 2% to 4% in constant currency) |
2016 EPS (GAAP) | $1.15 - $1.35 |
Restructuring charges & non-routine expense | $0.40 - $0.35 |
Total EPS (non-GAAP measure) | $1.55 - $1.70 |
(Dollars In Millions) | % Change | % Change Constant Currency | ||||||||||||
Q4 2015 | Q4 2014 | |||||||||||||
Financial self-service | ||||||||||||||
Services | $ | 306.7 | $ | 318.5 | (3.7 | )% | 3.6 | % | ||||||
Products | 234.5 | 319.4 | (26.6 | )% | (19.1 | )% | ||||||||
Total financial self-service | 541.2 | 637.9 | (15.2 | )% | (7.6 | )% | ||||||||
Security | ||||||||||||||
Services | 51.6 | 55.7 | (7.4 | )% | (5.0 | )% | ||||||||
Products | 22.0 | 36.3 | (39.4 | )% | (38.9 | )% | ||||||||
Total security | 73.6 | 92.0 | (20.0 | )% | (18.5 | )% | ||||||||
Total financial self-service and security | 614.8 | 729.9 | (15.8 | )% | (9.1 | )% | ||||||||
Brazil other | 0.6 | 48.7 | (98.8 | )% | (98.1 | )% | ||||||||
Total revenue | $ | 615.4 | $ | 778.6 | (21.0 | )% | (13.1 | )% | ||||||
Revenue summary by segment | % Change | % Change Constant Currency | ||||||||||||
Q4 2015 | Q4 2014 | |||||||||||||
NA | $ | 267.7 | $ | 300.1 | (10.8 | )% | (9.6 | )% | ||||||
AP | 112.2 | 138.8 | (19.2 | )% | (14.6 | )% | ||||||||
EMEA | 110.6 | 118.8 | (6.9 | )% | 7.8 | % | ||||||||
LA | 124.9 | 220.9 | (43.5 | )% | (29.9 | )% | ||||||||
Total revenue | $ | 615.4 | $ | 778.6 | (21.0 | )% | (13.1 | )% |
(Dollars In Millions) | % Change | % Change Constant Currency | ||||||||||||
YTD 12/31/2015 | YTD 12/31/2014 | |||||||||||||
Financial self-service | ||||||||||||||
Services | $ | 1,190.0 | $ | 1,219.9 | (2.5 | )% | 4.5 | % | ||||||
Products | 923.7 | 977.3 | (5.5 | )% | 2.9 | % | ||||||||
Total financial self-service | 2,113.7 | 2,197.2 | (3.8 | )% | 3.8 | % | ||||||||
Security | ||||||||||||||
Services | 209.3 | 212.9 | (1.7 | )% | 0.7 | % | ||||||||
Products | 83.5 | 99.5 | (16.1 | )% | (15.2 | )% | ||||||||
Total security | 292.8 | 312.4 | (6.3 | )% | (4.4 | )% | ||||||||
Total financial self-service and security | 2,406.5 | 2,509.6 | (4.1 | )% | 2.7 | % | ||||||||
Brazil other | 17.8 | 225.2 | (92.1 | )% | (89.0 | )% | ||||||||
Total revenue | $ | 2,424.3 | $ | 2,734.8 | (11.4 | )% | (3.2 | )% | ||||||
Revenue summary by segment | % Change | % Change Constant Currency | ||||||||||||
YTD 12/31/2015 | YTD 12/31/2014 | |||||||||||||
NA | $ | 1,099.5 | $ | 1,091.4 | 0.7 | % | 1.4 | % | ||||||
AP | 439.6 | 500.3 | (12.1 | )% | (8.6 | )% | ||||||||
EMEA | 393.1 | 421.2 | (6.7 | )% | 10.9 | % | ||||||||
LA | 492.1 | 721.9 | (31.8 | )% | (15.9 | )% | ||||||||
Total revenue | $ | 2,424.3 | $ | 2,734.8 | (11.4 | )% | (3.2 | )% |
Q4 2015 | Q4 2014 | YTD 12/31/2015 | YTD 12/31/2014 | |||||||||||||
Net sales | ||||||||||||||||
Services | $ | 358.3 | $ | 374.2 | $ | 1,399.2 | $ | 1,432.8 | ||||||||
Products | 257.1 | 404.4 | 1,025.1 | 1,302.0 | ||||||||||||
Total | 615.4 | 778.6 | 2,424.3 | 2,734.8 | ||||||||||||
Cost of sales | ||||||||||||||||
Services | 233.5 | 252.5 | 932.8 | 974.8 | ||||||||||||
Products | 205.3 | 312.1 | 834.5 | 1,033.8 | ||||||||||||
Total | 438.8 | 564.6 | 1,767.3 | 2,008.6 | ||||||||||||
Gross profit | 176.6 | 214.0 | 657.0 | 726.2 | ||||||||||||
Gross margin | 28.7 | % | 27.5 | % | 27.1 | % | 26.6 | % | ||||||||
Operating expenses | ||||||||||||||||
Selling and administrative expense | 125.0 | 135.0 | 488.2 | 478.4 | ||||||||||||
Research, development and engineering expense | 20.6 | 27.4 | 86.9 | 93.6 | ||||||||||||
Impairment of assets | — | 2.1 | 18.9 | 2.1 | ||||||||||||
Loss (gain) on sale of assets, net | 0.8 | 0.2 | (0.6 | ) | (12.9 | ) | ||||||||||
Total | 146.4 | 164.7 | 593.4 | 561.2 | ||||||||||||
Percent of net sales | 23.8 | % | 21.2 | % | 24.5 | % | 20.5 | % | ||||||||
Operating profit | 30.2 | 49.3 | 63.6 | 165.0 | ||||||||||||
Operating margin | 4.9 | % | 6.3 | % | 2.6 | % | 6.0 | % | ||||||||
Other income (expense) | ||||||||||||||||
Investment income | 5.4 | 7.9 | 26.0 | 34.5 | ||||||||||||
Interest expense | (8.4 | ) | (8.3 | ) | (32.5 | ) | (31.4 | ) | ||||||||
Foreign exchange (loss), net | (0.7 | ) | (1.4 | ) | (10.0 | ) | (11.8 | ) | ||||||||
Miscellaneous, net | 5.4 | (2.1 | ) | 3.7 | (1.6 | ) | ||||||||||
Other income (expense), net | 1.7 | (3.9 | ) | (12.8 | ) | (10.3 | ) | |||||||||
Income from continuing operations before taxes | 31.9 | 45.4 | 50.8 | 154.7 | ||||||||||||
Income tax (benefit) expense | (2.9 | ) | 14.1 | (11.8 | ) | 47.4 | ||||||||||
Income (loss) from continuing operations, net of tax | 34.8 | 31.3 | 62.6 | 107.3 | ||||||||||||
Income (loss) from discontinued operations, net of tax | 2.6 | 2.8 | 15.9 | 9.7 | ||||||||||||
Net income | 37.4 | 34.1 | 78.5 | 117.0 | ||||||||||||
Income attributable to noncontrolling interests, net of tax | 1.7 | 4.1 | 1.7 | 2.6 | ||||||||||||
Net income attributable to Diebold, Incorporated | $ | 35.7 | $ | 30.0 | $ | 76.8 | $ | 114.4 | ||||||||
Basic weighted-average shares outstanding | 65.0 | 64.6 | 64.9 | 64.5 | ||||||||||||
Diluted weighted-average shares outstanding | 65.7 | 65.4 | 65.6 | 65.2 | ||||||||||||
Amounts attributable to Diebold, Incorporated | ||||||||||||||||
Income (loss) before discontinued operations, net of tax | $ | 33.1 | $ | 27.2 | $ | 60.9 | $ | 104.7 | ||||||||
Income (loss) from discontinued operations, net of tax | 2.6 | 2.8 | 15.9 | 9.7 | ||||||||||||
Net income (loss) attributable to Diebold, Incorporated | $ | 35.7 | $ | 30.0 | $ | 76.8 | $ | 114.4 | ||||||||
Basic earnings (loss) per share | ||||||||||||||||
Income (loss) before discontinued operations, net of tax | $ | 0.51 | $ | 0.42 | $ | 0.94 | $ | 1.62 | ||||||||
Income (loss) from discontinued operations, net of tax | 0.04 | 0.04 | 0.24 | 0.15 | ||||||||||||
Net Income (loss) attributable to Diebold, Incorporated | $ | 0.55 | $ | 0.46 | $ | 1.18 | $ | 1.77 | ||||||||
Diluted earnings (loss) per share | ||||||||||||||||
Income (loss) before discontinued operations, net of tax | $ | 0.50 | $ | 0.42 | $ | 0.93 | $ | 1.61 | ||||||||
Income (loss) from discontinued operations, net of tax | 0.04 | 0.04 | 0.24 | 0.15 | ||||||||||||
Net Income (loss) attributable to Diebold, Incorporated | $ | 0.54 | $ | 0.46 | $ | 1.17 | $ | 1.76 | ||||||||
Cash dividends declared and paid per share | $ | 0.2875 | $ | 0.2875 | $ | 1.15 | $ | 1.15 |
12/31/2015 | 12/31/2014 | ||||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 313.6 | $ | 326.1 | |||
Short-term investments | 39.9 | 136.7 | |||||
Trade receivables, less allowances for doubtful accounts | 417.3 | 403.3 | |||||
Inventories | 369.3 | 374.7 | |||||
Assets held for sale | 148.2 | 106.2 | |||||
Other current assets | 358.7 | 308.5 | |||||
Total current assets | 1,647.0 | 1,655.5 | |||||
Securities and other investments | 85.2 | 83.6 | |||||
Property, plant and equipment, net | 175.3 | 165.7 | |||||
Goodwill | 161.5 | 138.1 | |||||
Other assets | 181.8 | 299.2 | |||||
Total assets | $ | 2,250.8 | $ | 2,342.1 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities | |||||||
Notes payable | $ | 32.0 | $ | 25.6 | |||
Accounts payable | 281.7 | 248.6 | |||||
Liabilities held for sale | 49.4 | 39.1 | |||||
Other current liabilities | 591.1 | 714.5 | |||||
Total current liabilities | 954.2 | 1,027.8 | |||||
Long-term debt | 613.1 | 479.8 | |||||
Long-term liabilities | 244.9 | 279.7 | |||||
Total Diebold, Incorporated shareholders' equity | 415.5 | 531.5 | |||||
Noncontrolling interests | 23.1 | 23.3 | |||||
Total equity | 438.6 | 554.8 | |||||
Total liabilities and equity | $ | 2,250.8 | $ | 2,342.1 |
YTD 12/31/2015 | YTD 12/31/2014 | |||||||
Cash flow from operating activities | ||||||||
Net income | $ | 78.5 | $ | 117.0 | ||||
Income from discontinued operations, net of tax | 15.9 | 9.7 | ||||||
Income from continuing operations, net of tax | 62.6 | 107.3 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 64.0 | 73.4 | ||||||
Impairment of assets | 18.9 | 2.1 | ||||||
Devaluation of Venezuela balance sheet | 7.5 | 12.1 | ||||||
Other | 11.3 | 8.1 | ||||||
Cash flow from changes in certain assets and liabilities | ||||||||
Trade receivables | (59.8 | ) | (38.2 | ) | ||||
Inventories | (51.2 | ) | (42.8 | ) | ||||
Accounts payable | 57.6 | 55.2 | ||||||
Prepaid income taxes | (6.3 | ) | 9.6 | |||||
Deferred revenue | (16.3 | ) | 50.7 | |||||
Deferred income taxes | (38.2 | ) | (11.3 | ) | ||||
Certain other assets and liabilities | (18.5 | ) | (37.1 | ) | ||||
Net cash provided by operating activities - continuing operations | 31.6 | 189.1 | ||||||
Net cash provided by (used in) operating activities - discontinued operations | 5.1 | (2.2 | ) | |||||
Net cash provided by operating activities | 36.7 | 186.9 | ||||||
Cash flow from investing activities | ||||||||
Payments for acquisitions, net of cash acquired | (59.4 | ) | (11.7 | ) | ||||
Net investment activity | 50.6 | 88.3 | ||||||
Capital expenditures | (52.3 | ) | (60.1 | ) | ||||
Increase in certain other assets | (1.3 | ) | (1.4 | ) | ||||
Net cash (used in) provided by investing activities - continuing operations | (62.4 | ) | 15.1 | |||||
Net cash used in investing activities - discontinued operations | (2.5 | ) | (1.3 | ) | ||||
Net cash (used in) provided by investing activities | (64.9 | ) | 13.8 | |||||
Cash flow from financing activities | ||||||||
Dividends paid | (75.6 | ) | (74.9 | ) | ||||
Net debt borrowings | 116.9 | (17.3 | ) | |||||
Repurchase of common shares | (3.0 | ) | (1.9 | ) | ||||
Other | 3.9 | 12.9 | ||||||
Net cash provided by (used in) financing activities - continuing operations | 42.2 | (81.2 | ) | |||||
Net cash provided by (used in) financing activities - discontinued operations | — | — | ||||||
Net cash provided by (used in) financing activities | 42.2 | (81.2 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | (23.9 | ) | (28.2 | ) | ||||
Decrease (increase) in cash and cash equivalents | (9.9 | ) | 91.3 | |||||
Add: Cash overdraft included in assets held for sale at beginning of year | (4.1 | ) | (0.6 | ) | ||||
Less: Cash overdraft included in assets held for sale at end of year | (1.5 | ) | (4.1 | ) | ||||
Cash and cash equivalents at the beginning of the period | 326.1 | 231.3 | ||||||
Cash and cash equivalents at the end of the period | $ | 313.6 | $ | 326.1 |
1. | Profit/loss summary (Dollars in millions): |
Q4 2015 | Q4 2014 | |||||||||||||||||||||||||
Rev | Gross Profit | % of Sales | OPEX | OP | % of Sales | Rev | Gross Profit | % of Sales | OPEX | OP | % of Sales | |||||||||||||||
GAAP results | $615.4 | $176.6 | 28.7 | % | $146.4 | $30.2 | 4.9 | % | $778.6 | $214.0 | 27.5 | % | $164.7 | $49.3 | 6.3 | % | ||||||||||
Restructuring | 0.5 | (3.0 | ) | 3.5 | 0.6 | (4.4 | ) | 5.0 | ||||||||||||||||||
Non-routine income/expense: | ||||||||||||||||||||||||||
Legal, indemnification and professional fees | — | (4.2 | ) | 4.2 | — | (3.0 | ) | 3.0 | ||||||||||||||||||
Acquisition/divestiture fees | — | (18.5 | ) | 18.5 | — | — | — | |||||||||||||||||||
Brazil indirect tax | (0.7 | ) | — | (0.7 | ) | (5.8 | ) | — | (5.8 | ) | ||||||||||||||||
Other | — | — | — | — | — | — | ||||||||||||||||||||
Total non-routine income/expense | — | (0.7 | ) | (22.7 | ) | 22.0 | — | (5.8 | ) | (3.0 | ) | (2.8 | ) | |||||||||||||
Non-GAAP results | $615.4 | $176.4 | 28.7 | % | $120.7 | $55.7 | 9.1 | % | $778.6 | $208.8 | 26.8 | % | $157.3 | $51.5 | 6.6 | % |
YTD 12/31/2015 | YTD 12/31/2014 | |||||||||||||||||||||||||
Rev | Gross Profit | % of Sales | OPEX | OP | % of Sales | Rev | Gross Profit | % of Sales | OPEX | OP | % of Sales | |||||||||||||||
GAAP results | $2,424.3 | $657.0 | 27.1 | % | $593.4 | $63.6 | 2.6 | % | $2,734.8 | $726.2 | 26.6 | % | $561.2 | $165.0 | 6.0 | % | ||||||||||
Restructuring | 4.6 | (16.7 | ) | 21.3 | 1.9 | (9.7 | ) | 11.6 | ||||||||||||||||||
Non-routine income/expense: | ||||||||||||||||||||||||||
Software impairment | — | (9.1 | ) | 9.1 | — | — | — | |||||||||||||||||||
Venezuela divestiture | — | (9.7 | ) | 9.7 | — | — | — | |||||||||||||||||||
Legal, indemnification and professional fees | — | (14.7 | ) | 14.7 | — | (9.2 | ) | 9.2 | ||||||||||||||||||
Acquisition/divestiture fees | — | (21.1 | ) | 21.1 | — | — | — | |||||||||||||||||||
Gain on sale of Eras | — | — | — | — | 13.7 | (13.7 | ) | |||||||||||||||||||
Brazil indirect tax | 0.2 | — | 0.2 | (5.8 | ) | — | (5.8 | ) | ||||||||||||||||||
Other | — | (0.5 | ) | 0.5 | — | — | — | |||||||||||||||||||
Total non-routine income/expense | — | 0.2 | (55.1 | ) | 55.3 | — | (5.8 | ) | 4.5 | (10.3 | ) | |||||||||||||||
Non-GAAP results | $2,424.3 | $661.8 | 27.3 | % | $521.6 | $140.2 | 5.8 | % | $2,734.8 | $722.3 | 26.4 | % | $556.0 | $166.3 | 6.1 | % |
Q4 2015 | Q4 2014 | YTD 12/31/2015 | YTD 12/31/2014 | ||||||||||||
Total diluted EPS before discontinued operations, net of tax (GAAP measure) | $ | 0.50 | $ | 0.42 | $ | 0.93 | $ | 1.61 | |||||||
Restructuring | 0.04 | 0.05 | 0.24 | 0.12 | |||||||||||
Non-routine (income)/expense: | |||||||||||||||
Software impairment | — | — | 0.09 | — | |||||||||||
Venezuela divestiture | (0.01 | ) | — | 0.07 | — | ||||||||||
Venezuela devaluation | — | — | 0.07 | — | |||||||||||
Legal, indemnification and professional fees | 0.04 | 0.03 | 0.14 | 0.09 | |||||||||||
Gain on sale of Eras | — | — | — | (0.19 | ) | ||||||||||
Acquisition/divestiture fees | 0.18 | — | 0.21 | — | |||||||||||
Acquisition related hedging (income)/expense | (0.11 | ) | — | (0.11 | ) | — | |||||||||
Brazil indirect tax | (0.01 | ) | (0.06 | ) | — | (0.06 | ) | ||||||||
Other (inclusive of allocation of discrete tax items) | 0.11 | — | — | 0.01 | |||||||||||
Total non-routine (income)/expense | 0.20 | (0.03 | ) | 0.47 | (0.15 | ) | |||||||||
Total adjusted EPS (non-GAAP measure) | $ | 0.74 | $ | 0.44 | $ | 1.64 | $ | 1.58 | |||||||
Discontinued Operations | $ | 0.04 | $ | 0.04 | $ | 0.24 | $ | 0.15 | |||||||
Total adjusted EPS with Discontinued Operations (non-GAAP measure) | $ | 0.78 | $ | 0.48 | $ | 1.88 | $ | 1.73 |
3. | Free cash flow/(use) including discontinued operations is calculated as follows (Dollars in millions): |
Q4 2015 | Q4 2014 | YTD 12/31/2015 | YTD 12/31/2014 | ||||||||||||
Net cash provided by (used in) operating activities (GAAP measure) | $ | 156.8 | $ | 297.6 | $ | 36.7 | $ | 186.9 | |||||||
Capital expenditures | (11.9 | ) | (27.9 | ) | (54.8 | ) | (61.5 | ) | |||||||
Free cash Flow / (use) (non-GAAP measure) | $ | 144.9 | $ | 269.7 | $ | (18.1 | ) | $ | 125.4 |
4. | Net debt from continuing operations is calculated as follows (Dollars in millions): |
12/31/2015 | 12/31/2014 | ||||||
Cash, cash equivalents and short-term investments (GAAP measure) | $ | 353.5 | $ | 462.8 | |||
Debt instruments | (645.1 | ) | (505.4 | ) | |||
Net debt (non-GAAP measure) | $ | (291.6 | ) | $ | (42.6 | ) |
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