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 | |||
Diebold Nixdorf, Incorporated | |||
October 31, 2017 | By: | /s/ Christopher A. Chapman | |
Name: | Christopher A. Chapman | ||
Title: | Senior Vice President and Chief Financial Officer |
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 $0.47, or earnings of $0.58 on a non-GAAP basis |
• | GAAP operating profit was a loss of $7.6 million, or (0.7)% operating margin; non-GAAP operating profit was $82.4 million, or 7.3% operating margin |
• | Net cash used by continuing operating activities was $49.5 million, an increase in use of $62.9 million from the prior-year period; free cash use was $64.8 million, an increase in use of $65.6 million from the prior-year period |
• | Company updates 2017 guidance |
• | Signed a new, five-year managed services agreement with a large global financial institution for remote management and monitoring of more than 5,000 ATMs across the U.S. and U.K. |
• | Won a new contract to install software licenses for 6,400 ATMs at US Bank and renewed the services agreement for another four years |
• | Significantly expanded our scope of work and value in a new $54 million contract win with Banco do Brazil |
• | Awarded a new services contract worth $40 million with a leading independent ATM deployer in the U.S. |
• | Renewed a $36 million managed services contract with HSH Nordbank in Germany and a $30 million contract with Geldservices Netherlands |
• | Won a new store lifecycle management and point-of-sale contract worth nearly $10 million with a global clothing retailer expanding its presence in Russia |
• | Secured an exclusive contract with Bankomat, Sweden's largest ATM deployer, to automate all cash deposit and withdrawal activities across its network of 1,600 machines |
(Dollars in millions) | Three Months Ended | |||||||||||||
September 30, | ||||||||||||||
2017 | 2016 | % Change | % Change in CC(1) | |||||||||||
Segments | ||||||||||||||
Services | $ | 605.9 | $ | 484.6 | 25.0 | 22.6 | ||||||||
Software | 119.8 | 86.4 | 38.7 | 33.7 | ||||||||||
Systems | 397.0 | 412.3 | (3.7 | ) | (6.5 | ) | ||||||||
Net sales | $ | 1,122.7 | $ | 983.3 | 14.2 | 11.3 | ||||||||
Geographic regions | ||||||||||||||
Americas | $ | 395.1 | $ | 473.0 | (16.5 | ) | (17.1 | ) | ||||||
EMEA | 578.2 | 371.4 | 55.7 | 47.6 | ||||||||||
AP | 149.4 | 138.9 | 7.6 | 6.9 | ||||||||||
Net sales | $ | 1,122.7 | $ | 983.3 | 14.2 | 11.3 | ||||||||
Solutions | ||||||||||||||
Banking | $ | 837.8 | $ | 762.9 | 9.8 | 7.6 | ||||||||
Retail | 284.9 | 220.4 | 29.3 | 24.0 | ||||||||||
Net sales | $ | 1,122.7 | $ | 983.3 | 14.2 | 11.3 |
(Dollars in millions) | Three Months Ended | |||||||||||||
September 30, | ||||||||||||||
2017 | 2016 (2) | % Change | % Change in CC (1) | |||||||||||
Segments | ||||||||||||||
Services | $ | 605.9 | $ | 620.1 | (2.3 | ) | (4.4 | ) | ||||||
Software | 119.8 | 120.4 | (0.5 | ) | (3.9 | ) | ||||||||
Systems | 397.0 | 540.6 | (26.6 | ) | (28.8 | ) | ||||||||
Net sales | $ | 1,122.7 | $ | 1,281.1 | (12.4 | ) | (14.7 | ) | ||||||
Geographic regions | ||||||||||||||
Americas | $ | 395.1 | $ | 503.3 | (21.5 | ) | (22.2 | ) | ||||||
EMEA | 578.2 | 608.8 | (5.0 | ) | (9.5 | ) | ||||||||
AP | 149.4 | 169.0 | (11.6 | ) | (12.0 | ) | ||||||||
Net sales | $ | 1,122.7 | $ | 1,281.1 | (12.4 | ) | (14.7 | ) | ||||||
Solutions | ||||||||||||||
Banking | $ | 837.8 | $ | 945.4 | (11.4 | ) | (13.4 | ) | ||||||
Retail | 284.9 | 335.7 | (15.1 | ) | (18.3 | ) | ||||||||
Net sales | $ | 1,122.7 | $ | 1,281.1 | (12.4 | ) | (14.7 | ) |
(Dollars in millions) | Nine Months Ended | |||||||||||||
September 30, | ||||||||||||||
2017 | 2016 | % Change | % Change in CC (1) | |||||||||||
Segments | ||||||||||||||
Services | $ | 1,759.3 | $ | 1,131.1 | 55.5 | 53.5 | ||||||||
Software | 337.9 | 139.4 | 142.4 | 135.1 | ||||||||||
Systems | 1,262.2 | 802.4 | 57.3 | 54.6 | ||||||||||
Net sales | $ | 3,359.4 | $ | 2,072.9 | 62.1 | 59.5 | ||||||||
Geographic regions | ||||||||||||||
Americas | $ | 1,181.6 | $ | 1,202.9 | (1.8 | ) | (3.0 | ) | ||||||
EMEA | 1,727.8 | 563.7 | 206.5 | 196.8 | ||||||||||
AP | 450.0 | 306.3 | 46.9 | 47.4 | ||||||||||
Net sales | $ | 3,359.4 | $ | 2,072.9 | 62.1 | 59.5 | ||||||||
Solutions | ||||||||||||||
Banking | $ | 2,501.3 | $ | 1,834.8 | 36.3 | 34.7 | ||||||||
Retail | 858.1 | 238.1 | 260.4 | 245.5 | ||||||||||
Net sales | $ | 3,359.4 | $ | 2,072.9 | 62.1 | 59.5 |
(Dollars in millions) | Nine Months Ended | |||||||||||||
September 30, | ||||||||||||||
2017 | 2016 (2) | % Change | % Change in CC (1) | |||||||||||
Segments | ||||||||||||||
Services | $ | 1,759.3 | $ | 1,856.7 | (5.2 | ) | (5.1 | ) | ||||||
Software | 337.9 | 346.5 | (2.5 | ) | (2.8 | ) | ||||||||
Systems | 1,262.2 | 1,521.9 | (17.1 | ) | (17.3 | ) | ||||||||
Net sales | $ | 3,359.4 | $ | 3,725.1 | (9.8 | ) | (9.9 | ) | ||||||
Geographic regions | ||||||||||||||
Americas | $ | 1,181.6 | $ | 1,400.1 | (15.6 | ) | (16.6 | ) | ||||||
EMEA | 1,727.8 | 1,826.4 | (5.4 | ) | (4.8 | ) | ||||||||
AP | 450.0 | 498.6 | (9.7 | ) | (9.2 | ) | ||||||||
Net sales | $ | 3,359.4 | $ | 3,725.1 | (9.8 | ) | (9.9 | ) | ||||||
Solutions | ||||||||||||||
Banking | $ | 2,501.3 | $ | 2,830.1 | (11.6 | ) | (11.8 | ) | ||||||
Retail | 858.1 | 895.0 | (4.1 | ) | (3.6 | ) | ||||||||
Net sales | $ | 3,359.4 | $ | 3,725.1 | (9.8 | ) | (9.9 | ) |
Previous guidance | Current guidance | |
Total Revenue | ~$4.7B - $4.8B | ~$4.6B |
Net Income (Loss) attributable to Diebold Nixdorf, Inc. | $ (125 million) - $ (110 million) | $ (140 million) - $ (130 million) |
Adjusted EBITDA | $360 million - $380 million | $370 million - $380 million |
2017 EPS (GAAP) | $(1.65) - $(1.45) | $(1.80) - $(1.70) |
Restructuring | ~0.85 | ~0.70 |
Non-routine (income)/expense: | ||
Integration expense | ~0.70 | ~0.90 |
Legal, Acquisition and Divestiture expense | ~0.30 | ~0.25 |
Impairment & Other Non-routine | ~0.05 | ~0.05 |
Wincor Nixdorf purchase price accounting | ~1.90 | ~2.10 |
Total non-routine (income)/expense | ~2.95 | ~3.30 |
Tax impact of restructuring and non-routine (income)/expense items | ~(1.20) | ~(1.15) |
Total Adjusted EPS (non-GAAP measure) | $0.95 - $1.15 | $1.05 - $1.15 |
Q3 2017 | Q3 2016 | YTD 9/30/2017 | YTD 9/30/2016 | |||||||||||||
Net sales | ||||||||||||||||
Services and software | $ | 725.7 | $ | 571.0 | $ | 2,097.2 | $ | 1,270.5 | ||||||||
Systems | 397.0 | 412.3 | 1,262.2 | 802.4 | ||||||||||||
Total | 1,122.7 | 983.3 | 3,359.4 | 2,072.9 | ||||||||||||
Cost of sales | ||||||||||||||||
Services and software | 553.7 | 400.0 | 1,595.6 | 867.7 | ||||||||||||
Systems | 328.0 | 385.7 | 1,042.5 | 713.7 | ||||||||||||
Total | 881.7 | 785.7 | 2,638.1 | 1,581.4 | ||||||||||||
Gross profit | 241.0 | 197.6 | 721.3 | 491.5 | ||||||||||||
Gross margin | 21.5 | % | 20.1 | % | 21.5 | % | 23.7 | % | ||||||||
Operating expenses | ||||||||||||||||
Selling and administrative expense | 208.8 | 253.5 | 692.6 | 506.4 | ||||||||||||
Research, development and engineering expense | 34.2 | 31.3 | 114.4 | 67.4 | ||||||||||||
Impairment of assets | — | — | 3.1 | — | ||||||||||||
(Gain) loss on sale of assets, net | 5.6 | (0.5 | ) | (2.5 | ) | (0.2 | ) | |||||||||
Total | 248.6 | 284.3 | 807.6 | 573.6 | ||||||||||||
Percent of net sales | 22.1 | % | 28.9 | % | 24.0 | % | 27.7 | % | ||||||||
Operating profit (loss) | (7.6 | ) | (86.7 | ) | (86.3 | ) | (82.1 | ) | ||||||||
Operating margin | (0.7 | )% | (8.8 | )% | (2.6 | )% | (4.0 | )% | ||||||||
Other income (expense) | ||||||||||||||||
Interest income | 4.3 | 5.3 | 15.8 | 16.5 | ||||||||||||
Interest expense | (27.7 | ) | (32.4 | ) | (90.7 | ) | (68.2 | ) | ||||||||
Foreign exchange gain (loss), net | 3.2 | 2.0 | (4.5 | ) | (1.6 | ) | ||||||||||
Miscellaneous, net | (1.5 | ) | (4.2 | ) | 1.7 | 3.6 | ||||||||||
Total other income (expense) | (21.7 | ) | (29.3 | ) | (77.7 | ) | (49.7 | ) | ||||||||
Income (loss) from continuing operations before taxes | (29.3 | ) | (116.0 | ) | (164.0 | ) | (131.8 | ) | ||||||||
Income tax (benefit) expense | (0.5 | ) | (18.8 | ) | (59.4 | ) | (34.5 | ) | ||||||||
Income (loss) from continuing operations, net of tax | (28.8 | ) | (97.2 | ) | (104.6 | ) | (97.3 | ) | ||||||||
Income (loss) from discontinued operations, net of tax | — | (4.6 | ) | — | 143.7 | |||||||||||
Net income (loss) | (28.8 | ) | (101.8 | ) | (104.6 | ) | 46.4 | |||||||||
Net income attributable to noncontrolling interests | 6.6 | 0.5 | 20.2 | 1.6 | ||||||||||||
Net income (loss) attributable to Diebold Nixdorf, Incorporated | $ | (35.4 | ) | $ | (102.3 | ) | $ | (124.8 | ) | $ | 44.8 | |||||
Basic weighted-average shares outstanding | 75.5 | 70.9 | 75.4 | 67.0 | ||||||||||||
Diluted weighted-average shares outstanding | 75.5 | 70.9 | 75.4 | 67.6 | ||||||||||||
Amounts attributable to Diebold Nixdorf, Incorporated | ||||||||||||||||
Loss before discontinued operations, net of tax | $ | (35.4 | ) | $ | (97.7 | ) | $ | (124.8 | ) | $ | (98.9 | ) | ||||
Income (loss) from discontinued operations, net of tax | — | (4.6 | ) | — | 143.7 | |||||||||||
Net income (loss) attributable to Diebold Nixdorf, Incorporated | $ | (35.4 | ) | $ | (102.3 | ) | $ | (124.8 | ) | $ | 44.8 | |||||
Basic earnings (loss) per share | ||||||||||||||||
Loss from continuing operations, net of tax | $ | (0.47 | ) | $ | (1.38 | ) | $ | (1.66 | ) | $ | (1.48 | ) | ||||
Income (loss) from discontinued operations, net of tax | — | (0.06 | ) | — | 2.15 | |||||||||||
Net income (loss) attributable to Diebold Nixdorf, Incorporated | $ | (0.47 | ) | $ | (1.44 | ) | $ | (1.66 | ) | $ | 0.67 | |||||
Diluted earnings (loss) per share | ||||||||||||||||
Loss from continuing operations, net of tax | $ | (0.47 | ) | $ | (1.38 | ) | $ | (1.66 | ) | $ | (1.46 | ) | ||||
Income (loss) from discontinued operations, net of tax | — | (0.06 | ) | — | 2.12 | |||||||||||
Net income (loss) attributable to Diebold Nixdorf, Incorporated | $ | (0.47 | ) | $ | (1.44 | ) | $ | (1.66 | ) | $ | 0.66 | |||||
Common dividends declared and paid per share | $ | 0.1000 | $ | 0.2875 | $ | 0.3000 | $ | 0.8625 |
9/30/2017 | 12/31/2016 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 380.7 | $ | 652.7 | ||||
Short-term investments | 64.0 | 64.1 | ||||||
Trade receivables, less allowances for doubtful accounts | 911.9 | 835.9 | ||||||
Inventories | 807.8 | 737.7 | ||||||
Other current assets | 411.9 | 329.2 | ||||||
Total current assets | 2,576.3 | 2,619.6 | ||||||
Securities and other investments | 92.5 | 94.7 | ||||||
Property, plant and equipment, net | 367.7 | 387.0 | ||||||
Goodwill | 1,105.9 | 998.3 | ||||||
Intangible assets, net | 793.5 | 772.9 | ||||||
Other assets | 425.5 | 397.8 | ||||||
Total assets | $ | 5,361.4 | $ | 5,270.3 | ||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | ||||||||
Current liabilities | ||||||||
Notes payable | $ | 71.9 | $ | 106.9 | ||||
Accounts payable | 579.1 | 560.5 | ||||||
Deferred revenue | 369.4 | 404.2 | ||||||
Other current liabilities | 737.9 | 752.9 | ||||||
Total current liabilities | 1,758.3 | 1,824.5 | ||||||
Long-term debt | 1,834.5 | 1,691.4 | ||||||
Long-term liabilities | 671.2 | 685.5 | ||||||
Redeemable noncontrolling interests | 485.7 | 44.1 | ||||||
Total Diebold Nixdorf, Incorporated shareholders' equity | 572.2 | 591.4 | ||||||
Noncontrolling interests | 39.5 | 433.4 | ||||||
Total equity | 611.7 | 1,024.8 | ||||||
Total liabilities, redeemable noncontrolling interests and equity | $ | 5,361.4 | $ | 5,270.3 |
YTD 9/30/2017 | YTD 9/30/2016 | |||||||
Cash flow from operating activities | ||||||||
Net income (loss) | $ | (104.6 | ) | $ | 46.4 | |||
Income (loss) from discontinued operations, net of tax | — | 143.7 | ||||||
Income (loss) from continuing operations, net of tax | (104.6 | ) | (97.3 | ) | ||||
Adjustments to reconcile net income (loss) to cash flow used by operating activities: | ||||||||
Depreciation and amortization | 185.4 | 74.3 | ||||||
Other | 27.8 | 4.7 | ||||||
Changes in certain assets and liabilities, net of the effects of acquisitions | ||||||||
Trade receivables | (57.5 | ) | (85.3 | ) | ||||
Inventories | (48.8 | ) | (18.9 | ) | ||||
Income taxes | (46.8 | ) | (90.3 | ) | ||||
Accounts payable | 10.0 | 14.2 | ||||||
Deferred revenue | (43.3 | ) | (42.9 | ) | ||||
Deferred income taxes | (36.3 | ) | (58.5 | ) | ||||
Certain other assets and liabilities | (121.2 | ) | 113.6 | |||||
Net cash used by operating activities - continuing operations | (235.3 | ) | (186.4 | ) | ||||
Net cash used by operating activities - discontinued operations | — | (8.2 | ) | |||||
Net cash used by operating activities | (235.3 | ) | (194.6 | ) | ||||
Cash flow from investing activities | ||||||||
Payment for acquisitions | (5.6 | ) | (890.6 | ) | ||||
Net investment activity | (11.2 | ) | 24.7 | |||||
Capital expenditures | (41.7 | ) | (23.9 | ) | ||||
Restricted cash | (7.9 | ) | — | |||||
Increase in certain other assets | (12.3 | ) | 10.8 | |||||
Net cash used by investing activities - continuing operations | (78.7 | ) | (879.0 | ) | ||||
Net cash provided by investing activities - discontinued operations | — | 361.9 | ||||||
Net cash used by investing activities | (78.7 | ) | (517.1 | ) | ||||
Cash flow from financing activities | ||||||||
Dividends paid | (22.9 | ) | (57.0 | ) | ||||
Net debt borrowings | 66.4 | 1,199.3 | ||||||
Repurchase of common shares | (4.8 | ) | (2.1 | ) | ||||
Other | (16.0 | ) | (1.8 | ) | ||||
Net cash provided by financing activities | 22.7 | 1,138.4 | ||||||
Effect of exchange rate changes on cash and cash equivalents | 19.3 | 9.4 | ||||||
(Decrease) increase in cash and cash equivalents | (272.0 | ) | 436.1 | |||||
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 | $ | 380.7 | $ | 748.2 |
1. | Profit/loss summary (Dollars in millions): |
Q3 2017 | Q3 2016 | |||||||||||||||||||||||||||||||||
Net Sales | Gross Profit | % of Sales | OPEX | OP | % of Sales | Net Sales | Gross Profit | % of Sales | OPEX | OP | % of Sales | |||||||||||||||||||||||
GAAP Results | $ | 1,122.7 | $ | 241.0 | 21.5 | % | $ | 248.6 | $ | (7.6 | ) | (0.7 | )% | $ | 983.3 | $ | 197.6 | 20.1 | % | $ | 284.3 | $ | (86.7 | ) | (8.8 | )% | ||||||||
Restructuring | — | 15.2 | (2.2 | ) | 17.4 | — | 2.4 | (5.0 | ) | 7.4 | ||||||||||||||||||||||||
Legal / Acquisition and divestiture expense | — | — | (6.1 | ) | 6.1 | — | 0.5 | (64.7 | ) | 65.2 | ||||||||||||||||||||||||
Acquisition integration | — | 0.9 | (18.9 | ) | 19.8 | — | — | (7.3 | ) | 7.3 | ||||||||||||||||||||||||
Wincor Nixdorf purchase accounting adjustments | 9.6 | 22.9 | (23.8 | ) | 46.7 | 4.9 | 43.5 | (10.8 | ) | 54.3 | ||||||||||||||||||||||||
Other | — | — | — | — | — | 0.4 | — | 0.4 | ||||||||||||||||||||||||||
Non-routine expenses, net | 9.6 | 23.8 | (48.8 | ) | 72.6 | 4.9 | 44.4 | (82.8 | ) | 127.2 | ||||||||||||||||||||||||
Non-GAAP Results | $ | 1,132.3 | $ | 280.0 | 24.7 | % | $ | 197.6 | $ | 82.4 | 7.3 | % | $ | 988.2 | $ | 244.4 | 24.7 | % | $ | 196.5 | $ | 47.9 | 4.8 | % |
YTD 2017 | YTD 2016 | |||||||||||||||||||||||||||||||||
Net Sales | Gross Profit | % of Sales | OPEX | OP | % of Sales | Net Sales | Gross Profit | % of Sales | OPEX | OP | % of Sales | |||||||||||||||||||||||
GAAP Results | $ | 3,359.4 | $ | 721.3 | 21.5 | % | $ | 807.6 | $ | (86.3 | ) | (2.6 | )% | $ | 2,072.9 | $ | 491.5 | 23.7 | % | $ | 573.6 | $ | (82.1 | ) | (4.0 | )% | ||||||||
Restructuring | — | 32.4 | (12.3 | ) | 44.7 | — | 4.1 | (8.7 | ) | 12.8 | ||||||||||||||||||||||||
Impairment | — | — | (3.1 | ) | 3.1 | — | — | — | — | |||||||||||||||||||||||||
Legal / Acquisition and divestiture expense | — | 0.6 | (15.5 | ) | 16.1 | — | 0.5 | (95.8 | ) | 96.3 | ||||||||||||||||||||||||
Acquisition integration | — | 2.7 | (52.1 | ) | 54.8 | — | — | (7.8 | ) | 7.8 | ||||||||||||||||||||||||
Wincor Nixdorf purchase accounting adjustments | 30.4 | 68.7 | (63.1 | ) | 131.8 | 4.9 | 43.5 | (10.8 | ) | 54.3 | ||||||||||||||||||||||||
Other | — | 0.4 | — | 0.4 | — | 1.0 | (0.1 | ) | 1.1 | |||||||||||||||||||||||||
Non-routine expenses, net | 30.4 | 72.4 | (133.8 | ) | 206.2 | 4.9 | 45.0 | (114.5 | ) | 159.5 | ||||||||||||||||||||||||
Non-GAAP Results | $ | 3,389.8 | $ | 826.1 | 24.4 | % | $ | 661.5 | $ | 164.6 | 4.9 | % | $ | 2,077.8 | $ | 540.6 | 26.0 | % | $ | 450.4 | $ | 90.2 | 4.3 | % |
2. | Reconciliation of GAAP net income (loss) to EBITDA and Adjusted EBITDA measures (Dollars in millions): |
Q3 2017 | Q3 2016 | YTD 9/30/2017 | YTD 9/30/2016 | |||||||||||||
Net income (loss) | $ | (28.8 | ) | $ | (101.8 | ) | $ | (104.6 | ) | $ | 46.4 | |||||
Income tax benefit | (0.5 | ) | (18.8 | ) | (59.4 | ) | (34.5 | ) | ||||||||
Interest income | (4.3 | ) | (5.3 | ) | (15.8 | ) | (16.5 | ) | ||||||||
Interest expense | 27.7 | 32.4 | 90.7 | 68.2 | ||||||||||||
Depreciation and amortization | 68.8 | 43.4 | 185.4 | 74.3 | ||||||||||||
EBITDA | 62.9 | (50.1 | ) | 96.3 | 137.9 | |||||||||||
Income from discontinued operations, net of tax | — | 4.6 | — | (143.7 | ) | |||||||||||
Share-based compensation | 8.1 | 4.1 | 23.1 | 14.2 | ||||||||||||
Foreign exchange (gain) loss, net | (3.2 | ) | (2.0 | ) | 4.5 | 1.6 | ||||||||||
Miscellaneous, net | 1.5 | 4.2 | (1.7 | ) | (3.6 | ) | ||||||||||
Restructuring expenses | 17.4 | 7.4 | 44.7 | 12.8 | ||||||||||||
Non-routine expenses, net | 37.8 | 109.2 | 106.7 | 141.6 | ||||||||||||
Adjusted EBITDA | $ | 124.5 | $ | 77.4 | $ | 273.6 | $ | 160.8 | ||||||||
Adjusted EBITDA % revenue | 11.0 | % | 7.8 | % | 8.1 | % | 7.7 | % |
3. | Reconciliation of diluted GAAP EPS to non-GAAP EPS: |
Q3 2017 | Q3 2016 | YTD 9/30/2017 | YTD 9/30/2016 | |||||||||||||
Total diluted EPS from the income (loss) from continuing operations, net of tax (GAAP measure) | $ | (0.47 | ) | $ | (1.38 | ) | $ | (1.65 | ) | $ | (1.46 | ) | ||||
Restructuring | 0.23 | 0.10 | 0.59 | 0.19 | ||||||||||||
Non-routine (income)/expense: | ||||||||||||||||
Impairment | — | — | 0.04 | — | ||||||||||||
Legal / Acquisition and divestiture expense | 0.08 | 1.06 | 0.25 | 2.00 | ||||||||||||
Acquisition integration | 0.26 | 0.10 | 0.72 | 0.12 | ||||||||||||
Acquisition related hedging (income)/expense | — | 0.05 | — | (0.14 | ) | |||||||||||
Wincor Nixdorf purchase accounting adjustments | 0.61 | 0.76 | 1.73 | 0.80 | ||||||||||||
Other | 0.01 | 0.02 | 0.02 | 0.02 | ||||||||||||
Total non-routine (income)/expense | 0.96 | 1.99 | 2.76 | 2.80 | ||||||||||||
Tax impact (inclusive of allocation of discrete tax items) | (0.14 | ) | (0.37 | ) | (0.96 | ) | (0.77 | ) | ||||||||
Total adjusted EPS (non-GAAP measure) | $ | 0.58 | $ | 0.34 | $ | 0.74 | $ | 0.76 | ||||||||
EPS (non-GAAP) - discontinued operations | $ | — | $ | — | $ | — | $ | (0.02 | ) | |||||||
EPS (non-GAAP) - including discontinued operations | $ | 0.58 | $ | 0.34 | $ | 0.74 | $ | 0.74 |
4. | Free cash flow use from continuing operations is calculated as follows (Dollars in millions): |
Q3 2017 | Q3 2016 | YTD 9/30/2017 | YTD 9/30/2016 | |||||||||||||
Net cash used by operating activities (GAAP measure) | $ | (49.5 | ) | $ | 13.4 | $ | (235.3 | ) | $ | (186.4 | ) | |||||
Capital expenditures (GAAP measure) | (15.3 | ) | (12.6 | ) | (41.7 | ) | (23.9 | ) | ||||||||
Free cash flow use (non-GAAP measure) | $ | (64.8 | ) | $ | 0.8 | $ | (277.0 | ) | $ | (210.3 | ) |
5. | Net debt is calculated as follows (Dollars in millions): |
9/30/2017 | 12/31/2016 | 9/30/2016 | |||||||||
Cash, cash equivalents and short-term investments (GAAP measure) | $ | 444.7 | $ | 716.8 | $ | 788.1 | |||||
Debt instruments | (1,906.4 | ) | (1,798.3 | ) | (2,058.9 | ) | |||||
Net debt (non-GAAP measure) | $ | (1,461.7 | ) | $ | (1,081.5 | ) | $ | (1,270.8 | ) |
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