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 Nixdorf, Incorporated dated May 4, 2017 |
Diebold Nixdorf, Incorporated | |||
May 4, 2017 | 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 Nixdorf, Incorporated dated May 4, 2017 |
![]() | pressrelease | |
Media contact: | Investor contact: | |
Mike Jacobsen, APR | Steve Virostek | |
+1 330 490 3796 | +1 330 490 6319 | |
michael.jacobsen@dieboldnixdorf.com | steve.virostek@dieboldnixdorf.com |
• | GAAP revenue of $1.1 billion |
• | GAAP EPS from continuing operations was a loss of $0.78, or earnings of $0.08 on a non-GAAP basis |
• | GAAP operating profit was a loss of $48.6 million, or (4.4)% operating margin; non-GAAP operating profit was $41.7 million, or 3.7% operating margin |
• | Net cash used by continuing operating activities was $66.4 million, an improvement of $43.5 million from the prior year period; free cash use was $78.5 million, an improvement of $36.1 million from the prior year period. |
• | Significant outsourcing renewals with TD Bank and Hamburger Sparkasse (Haspa) for nearly 6,000 automated teller machines (ATMs) |
• | New outsourcing contract with a Spanish retailer encompassing retail IT equipment in 1,000 locations |
• | Branch automation project with Banco Santander in Mexico, including 1,200 ATMs and cash recycling units |
• | Won three-year services contract for 8,000 ATMs and other IT equipment with the largest private bank in Brazil |
• | Connected commerce solutions enabled for consumers of Ziraat Bank, the largest financial institution in Turkey, with advanced software and professional services for 7,000 ATMs |
• | Momentum building for cash recycling systems and software, with new wins for 5,000 units in Asia and Eastern Europe |
• | Won contract for 1,000 self-checkout systems and four years of service with COOP stores in Switzerland |
• | Driving new innovations in miniaturization with the Extreme self-checkout and Essence ATM concepts |
(Dollars in millions) | Three Months Ended | |||||||||||
March 31, | ||||||||||||
2017 | 2016 | % Change | % Change in CC (1) | |||||||||
Segments | ||||||||||||
Services | $ | 573.2 | $ | 318.7 | 79.9 | 77.8 | ||||||
Software | 110.4 | 22.4 | 392.9 | 373.8 | ||||||||
Systems | 419.2 | 168.5 | 148.8 | 146.0 | ||||||||
Net Sales | $ | 1,102.8 | $ | 509.6 | 116.4 | 113.7 | ||||||
Geographic Regions | ||||||||||||
Americas | $ | 396.2 | $ | 342.5 | 15.7 | 12.8 | ||||||
EMEA | 562.0 | 85.9 | 554.2 | 559.6 | ||||||||
AP | 144.6 | 81.2 | 78.1 | 81.4 | ||||||||
Net Sales | $ | 1,102.8 | $ | 509.6 | 116.4 | 113.7 | ||||||
Solutions | ||||||||||||
Banking | $ | 819.6 | $ | 507.6 | 61.5 | 59.5 | ||||||
Retail | 283.2 | 2.0 | N/M | N/M | ||||||||
Net Sales | $ | 1,102.8 | $ | 509.6 | 116.4 | 113.7 |
(Dollars in millions) | Three Months Ended | |||||||||||||
March 31, | ||||||||||||||
2017 | 2016 (2) | % Change | % Change in CC (1) | |||||||||||
Segments | ||||||||||||||
Services | $ | 573.2 | $ | 603.0 | (4.9 | ) | (4.0 | ) | ||||||
Software | 110.4 | 105.1 | 5.0 | 6.3 | ||||||||||
Systems | 419.2 | 446.3 | (6.1 | ) | (5.1 | ) | ||||||||
Net Sales | $ | 1,102.8 | $ | 1,154.4 | (4.5 | ) | (3.5 | ) | ||||||
Geographic Regions | ||||||||||||||
Americas | $ | 396.2 | $ | 424.4 | (6.6 | ) | (8.6 | ) | ||||||
EMEA | 562.0 | 569.4 | (1.3 | ) | 2.0 | |||||||||
AP | 144.6 | 160.6 | (10.0 | ) | (8.5 | ) | ||||||||
Net Sales | $ | 1,102.8 | $ | 1,154.4 | (4.5 | ) | (3.5 | ) | ||||||
Solutions | ||||||||||||||
Banking | $ | 819.6 | $ | 886.1 | (7.5 | ) | (7.3 | ) | ||||||
Retail | 283.2 | 268.3 | 5.6 | 9.4 | ||||||||||
Net Sales | $ | 1,102.8 | $ | 1,154.4 | (4.5 | ) | (3.5 | ) |
Previous Guidance | Current Guidance | |
Total Revenue | $5.0B - $5.1B | ~$5.0B |
Net Income (Loss) attributable to Diebold Nixdorf, Inc. | $ (55 million) - $ (30 million) | $ (75 million) - $ (50 million) |
Adjusted EBITDA | $440 million - $470 million | $440 million - $470 million |
2017 EPS (GAAP) | $(0.70) - $(0.40) | $(0.95) - $(0.65) |
Restructuring | ~0.45 | ~0.45 |
Non-routine (income)/expense: | ||
Integration expense | ~0.65 | ~0.65 |
Legal, Acquisition and Divestiture expense | — | ~0.35 |
Impairment & Other Non-routine | — | ~0.05 |
Wincor Nixdorf purchase price accounting | ~1.90 | ~1.90 |
Total non-routine (income)/expense | ~2.55 | ~2.95 |
Tax impact of restructuring and non-routine (income)/expense items | ~(0.90) | ~(1.05) |
Total Adjusted EPS (non-GAAP measure) | $1.40 - $1.70 | $1.40 - $1.70 |
Q1 2017 | Q1 2016 | |||||||
Net sales | ||||||||
Services and software | $ | 683.6 | $ | 341.1 | ||||
Systems | 419.2 | 168.5 | ||||||
Total | 1,102.8 | 509.6 | ||||||
Cost of sales | ||||||||
Services and software | 505.5 | 230.9 | ||||||
Systems | 354.8 | 139.9 | ||||||
Total | 860.3 | 370.8 | ||||||
Gross profit | 242.5 | 138.8 | ||||||
Gross margin | 22.0 | % | 27.2 | % | ||||
Operating expenses | ||||||||
Selling and administrative expense | 247.0 | 125.6 | ||||||
Research, development and engineering expense | 41.4 | 18.5 | ||||||
Impairment of assets | 3.1 | — | ||||||
(Gain) loss on sale of assets, net | (0.4 | ) | 0.4 | |||||
Total | 291.1 | 144.5 | ||||||
Percent of net sales | 26.4 | % | 28.4 | % | ||||
Operating profit (loss) | (48.6 | ) | (5.7 | ) | ||||
Operating margin | (4.4 | )% | (1.1 | )% | ||||
Other income (expense) | ||||||||
Interest income | 6.4 | 4.9 | ||||||
Interest expense | (30.8 | ) | (11.5 | ) | ||||
Foreign exchange gain (loss), net | (3.1 | ) | (2.4 | ) | ||||
Miscellaneous, net | 1.3 | 34.6 | ||||||
Total other income (expense) | (26.2 | ) | 25.6 | |||||
Income (loss) from continuing operations before taxes | (74.8 | ) | 19.9 | |||||
Income tax (benefit) expense | (22.6 | ) | (0.8 | ) | ||||
Income (loss) from continuing operations, net of tax | (52.2 | ) | 20.7 | |||||
Income (loss) from discontinued operations, net of tax | — | 147.8 | ||||||
Net income (loss) | (52.2 | ) | 168.5 | |||||
Net income attributable to noncontrolling interests | 6.6 | 0.3 | ||||||
Net income (loss) attributable to Diebold Nixdorf, Incorporated | $ | (58.8 | ) | $ | 168.2 | |||
Basic weighted-average shares outstanding | 75.3 | 65.1 | ||||||
Diluted weighted-average shares outstanding | 75.3 | 65.7 | ||||||
Amounts attributable to Diebold Nixdorf, Incorporated | ||||||||
Income (loss) before discontinued operations, net of tax | $ | (58.8 | ) | $ | 20.4 | |||
Income (loss) from discontinued operations, net of tax | — | 147.8 | ||||||
Net income (loss) attributable to Diebold Nixdorf, Incorporated | $ | (58.8 | ) | $ | 168.2 | |||
Basic earnings (loss) per share | ||||||||
Income (loss) from continuing operations, net of tax | $ | (0.78 | ) | $ | 0.31 | |||
Income (loss) from discontinued operations, net of tax | — | 2.27 | ||||||
Net income (loss) attributable to Diebold Nixdorf, Incorporated | $ | (0.78 | ) | $ | 2.58 | |||
Diluted earnings (loss) per share | ||||||||
Income (loss) from continuing operations, net of tax | $ | (0.78 | ) | $ | 0.31 | |||
Income (loss) from discontinued operations, net of tax | — | 2.25 | ||||||
Net income (loss) attributable to Diebold Nixdorf, Incorporated | $ | (0.78 | ) | $ | 2.56 | |||
Common dividends declared and paid per share | $ | 0.1000 | $ | 0.2875 |
3/31/2017 | 12/31/2016 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 490.1 | $ | 652.7 | ||||
Short-term investments | 77.7 | 64.1 | ||||||
Trade receivables, less allowances for doubtful accounts | 880.6 | 835.9 | ||||||
Inventories | 761.1 | 737.7 | ||||||
Other current assets | 392.0 | 329.2 | ||||||
Total current assets | 2,601.5 | 2,619.6 | ||||||
Securities and other investments | 94.5 | 94.7 | ||||||
Property, plant and equipment, net | 382.2 | 387.0 | ||||||
Goodwill | 1,011.7 | 998.3 | ||||||
Intangible assets, net | 753.5 | 772.9 | ||||||
Other assets | 401.2 | 397.8 | ||||||
Total assets | $ | 5,244.6 | $ | 5,270.3 | ||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | ||||||||
Current liabilities | ||||||||
Notes payable | $ | 77.7 | $ | 106.9 | ||||
Accounts payable | 541.2 | 560.5 | ||||||
Other current liabilities | 1,227.3 | 1,157.1 | ||||||
Total current liabilities | 1,846.2 | 1,824.5 | ||||||
Long-term debt | 1,689.7 | 1,691.4 | ||||||
Long-term liabilities | 690.9 | 685.5 | ||||||
Redeemable noncontrolling interests | 449.9 | 44.1 | ||||||
Total Diebold Nixdorf, Incorporated shareholders' equity | 533.1 | 591.4 | ||||||
Noncontrolling interests | 34.8 | 433.4 | ||||||
Total equity | 567.9 | 1,024.8 | ||||||
Total liabilities, redeemable noncontrolling interests and equity | $ | 5,244.6 | $ | 5,270.3 |
YTD 3/31/2017 | YTD 3/31/2016 | |||||||
Cash flow from operating activities | ||||||||
Net income (loss) | $ | (52.2 | ) | $ | 168.5 | |||
Income (loss) from discontinued operations, net of tax | — | 147.8 | ||||||
Income (loss) from continuing operations, net of tax | (52.2 | ) | 20.7 | |||||
Adjustments to reconcile net income (loss) to cash flow used by operating activities: | ||||||||
Depreciation and amortization | 58.6 | 15.0 | ||||||
Impairment of assets | 3.1 | — | ||||||
Gain on foreign currency option contracts, net | — | (36.5 | ) | |||||
Other | 7.1 | 6.0 | ||||||
Changes in certain assets and liabilities | ||||||||
Trade receivables | (36.8 | ) | (36.6 | ) | ||||
Inventories | (16.9 | ) | (31.9 | ) | ||||
Accounts payable | (22.4 | ) | (37.3 | ) | ||||
Prepaid income taxes | (37.2 | ) | (13.3 | ) | ||||
Deferred revenue | 82.0 | 3.8 | ||||||
Deferred income taxes | (8.7 | ) | 4.6 | |||||
Certain other assets and liabilities | (43.0 | ) | (4.4 | ) | ||||
Net cash used by operating activities - continuing operations | (66.4 | ) | (109.9 | ) | ||||
Net cash used by operating activities - discontinued operations | — | (5.3 | ) | |||||
Net cash used by operating activities | (66.4 | ) | (115.2 | ) | ||||
Cash flow from investing activities | ||||||||
Net investment activity | (10.2 | ) | (4.4 | ) | ||||
Capital expenditures | (12.1 | ) | (4.7 | ) | ||||
Increase in certain other assets | (6.7 | ) | (4.7 | ) | ||||
Net cash used by investing activities - continuing operations | (29.0 | ) | (13.8 | ) | ||||
Net cash provided by investing activities - discontinued operations | — | 365.1 | ||||||
Net cash provided (used) by investing activities | (29.0 | ) | 351.3 | |||||
Cash flow from financing activities | ||||||||
Dividends paid | (7.6 | ) | (18.8 | ) | ||||
Restricted cash, net | — | (116.1 | ) | |||||
Net debt borrowings | (44.9 | ) | (108.4 | ) | ||||
Repurchase of common shares | (4.6 | ) | (1.7 | ) | ||||
Other | (15.3 | ) | (2.0 | ) | ||||
Net cash used by financing activities | (72.4 | ) | (247.0 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | 5.2 | 3.4 | ||||||
Increase (decrease) in cash and cash equivalents | (162.6 | ) | (7.5 | ) | ||||
Add: Cash overdraft included in assets held for sale at beginning of period | — | (1.5 | ) | |||||
Cash and cash equivalents at the beginning of the period | 652.7 | 313.6 | ||||||
Cash and cash equivalents at the end of the period | $ | 490.1 | $ | 304.6 |
1. | Profit/loss summary (Dollars in millions): |
Q1 2017 | Q1 2016 | |||||||||||||||||||||||||||||||||
Net Sales | Gross Profit | % of Sales | OPEX | OP | % of Sales | Net Sales | Gross Profit | % of Sales | OPEX | OP | % of Sales | |||||||||||||||||||||||
GAAP Results | $ | 1,102.8 | $ | 242.5 | 22.0 | % | $ | 291.1 | $ | (48.6 | ) | (4.4 | )% | $ | 509.6 | $ | 138.8 | 27.2 | % | $ | 144.5 | $ | (5.7 | ) | (1.1 | )% | ||||||||
Restructuring | 3.6 | (9.3 | ) | 12.9 | 0.3 | (0.1 | ) | 0.4 | ||||||||||||||||||||||||||
Impairment | — | (3.1 | ) | 3.1 | — | — | — | |||||||||||||||||||||||||||
Legal / Acquisition and divestiture expense | 0.6 | (18.3 | ) | 18.9 | — | (13.8 | ) | 13.8 | ||||||||||||||||||||||||||
Acquisition integration | 0.6 | (12.3 | ) | 12.9 | — | — | — | |||||||||||||||||||||||||||
Wincor Nixdorf purchase accounting adjustments | 10.4 | 23.2 | (19.0 | ) | 42.2 | — | — | — | ||||||||||||||||||||||||||
Other | 0.2 | (0.1 | ) | 0.3 | 0.3 | — | 0.3 | |||||||||||||||||||||||||||
Non-routine expenses, net | 10.4 | 24.6 | (52.8 | ) | 77.4 | — | 0.3 | (13.8 | ) | 14.1 | ||||||||||||||||||||||||
Non-GAAP Results | $ | 1,113.2 | $ | 270.7 | 24.3 | % | $ | 229.0 | $ | 41.7 | 3.7 | % | $ | 509.6 | $ | 139.4 | 27.4 | % | $ | 130.6 | $ | 8.8 | 1.7 | % |
2. | Reconciliation of GAAP net income (loss) to EBITDA and Adjusted EBITDA measures (Dollars in millions): |
Q1 2017 | Q1 2016 | |||||||
Net income (loss) | $ | (52.2 | ) | $ | 168.5 | |||
Income tax (benefit) expense | (22.6 | ) | (0.8 | ) | ||||
Interest income | (6.4 | ) | (4.9 | ) | ||||
Interest expense | 30.8 | 11.5 | ||||||
Depreciation and amortization | 58.6 | 15.0 | ||||||
EBITDA | 8.2 | 189.3 | ||||||
Income from discontinued operations, net of tax | — | (147.8 | ) | |||||
Share-based compensation | 6.8 | 5.6 | ||||||
Foreign exchange loss, net | 3.1 | 2.4 | ||||||
Miscellaneous, net | (1.3 | ) | (34.6 | ) | ||||
Restructuring expenses | 12.9 | 0.4 | ||||||
Non-routine expenses, net | 45.6 | 14.1 | ||||||
Adjusted EBITDA | $ | 75.3 | $ | 29.4 | ||||
Adjusted EBITDA % revenue | 6.8 | % | 5.8 | % |
3. | Reconciliation of diluted GAAP EPS to non-GAAP EPS: |
Q1 2017 | Q1 2016 | |||||||
Total diluted EPS from the income (loss) from continuing operations, net of tax (GAAP measure) | $ | (0.78 | ) | $ | 0.31 | |||
Restructuring | 0.17 | — | ||||||
Non-routine (income)/expense: | ||||||||
Impairment | 0.04 | — | ||||||
Legal / Acquisition and divestiture expense | 0.25 | 0.27 | ||||||
Acquisition integration | 0.17 | — | ||||||
Acquisition related hedging (income)/expense | — | (0.56 | ) | |||||
Wincor Nixdorf purchase accounting adjustments | 0.55 | — | ||||||
Other | 0.02 | 0.01 | ||||||
Total non-routine (income)/expense | 1.03 | (0.28 | ) | |||||
Tax impact (inclusive of allocation of discrete tax items) | (0.34 | ) | (0.06 | ) | ||||
Total adjusted EPS (non-GAAP measure) | $ | 0.08 | $ | (0.03 | ) | |||
EPS (non-GAAP) - discontinued operations | $ | — | $ | (0.02 | ) | |||
EPS (non-GAAP) - including discontinued operations | $ | 0.08 | $ | (0.05 | ) |
4. | Free cash flow use from continuing operations is calculated as follows (Dollars in millions): |
Q1 2017 | Q1 2016 | |||||||
Net cash used by operating activities (GAAP measure) | $ | (66.4 | ) | $ | (109.9 | ) | ||
Capital expenditures (GAAP measure) | (12.1 | ) | (4.7 | ) | ||||
Free cash flow use (non-GAAP measure) | $ | (78.5 | ) | $ | (114.6 | ) |
5. | Net debt is calculated as follows (Dollars in millions): |
3/31/2017 | 12/31/2016 | 3/31/2016 | |||||||||
Cash, cash equivalents and short-term investments (GAAP measure) | $ | 567.8 | $ | 716.8 | $ | 470.4 | |||||
Debt Instruments | (1,767.4 | ) | (1,798.3 | ) | (532.6 | ) | |||||
Net debt (non-GAAP measure) | $ | (1,199.6 | ) | $ | (1,081.5 | ) | $ | (62.2 | ) |
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