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) |
Exhibit | ||
Number | Description | |
99.1
|
News release of Diebold, Incorporated dated April 27, 2011 |
Diebold, Incorporated |
||||
April 27, 2011 | 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 27, 2011 |
![]() |
pressrelease |
Media contact: Mike Jacobsen, APR +1 330 490 3796 michael.jacobsen@diebold.com FOR IMMEDIATE RELEASE: April 27, 2011 |
Investor contact: Chris Bast +1 330 490 6908 christopher.bast@diebold.com |
| 1Q EPS from continuing operations of $0.04, or $0.23 non-GAAP* | ||
| Total revenue for 1Q 2011 down 1% | ||
| Balance sheet remains strong; 1Q 2011 net debt* decreased $92.1 million from 1Q 2010 | ||
| Higher-than-expected 1Q non-GAAP* tax rate of 40%; estimated FY tax rate remains 28%* | ||
| Recovery in North America accelerates; company reaffirms prior FY non-GAAP* EPS guidance of $2.00 to $2.20 |
Orders by Solution (Q1 2011 vs. Q1 2010) | %Change | |||
Financial self-service solutions |
-1 | % | ||
Security solutions |
-6 | % | ||
Total FSS & security |
-2 | % | ||
Brazil election systems & lottery |
n/m | |||
Total Global Order Entry |
-1 | % |
Orders by Geography (Q1 2011 vs. Q1 2010) | %Change | |||
Diebold North America |
5 | % | ||
Total Diebold International |
-9 | % | ||
Latin America (incl. Brazil) |
-30 | % | ||
Asia Pacific |
-17 | % | ||
Europe, Middle East, and Africa |
44 | % | ||
Total Global Order Entry |
-1 | % |
Q1 2011 | Q1 2010 | |||||||||||||||||||||||||||||||||||||||||||||||
Rev | Gross Profit |
% of Sales |
OPEX | OP | % of Sales |
Rev | Gross Profit |
% of Sales |
OPEX | OP | % of Sales |
|||||||||||||||||||||||||||||||||||||
$614.2 |
$ | 149.4 | 24.3 | % | $ | 140.5 | $ | 8.9 | 1.4 | % | GAAP Results | $ | 619.0 | $ | 158.0 | 25.5 | % | $ | 117.4 | $ | 40.6 | 6.6 | % | |||||||||||||||||||||||||
6.2 | (5.6 | ) | 11.8 | Restructuring | 0.1 | (1.0 | ) | 1.1 | ||||||||||||||||||||||||||||||||||||||||
| (5.8 | ) | 5.8 | Non-rout. Exp | | | | |||||||||||||||||||||||||||||||||||||||||
| | | Non-rout. Inc | | 4.1 | (4.1 | ) | |||||||||||||||||||||||||||||||||||||||||
$614.2 |
$ | 155.6 | 25.3 | % | $ | 129.2 | $ | 26.4 | 4.3 | % | Non-GAAP Results | $ | 619.0 | $ | 158.1 | 25.5 | % | $ | 120.5 | $ | 37.6 | 6.1 | % | |||||||||||||||||||||||||
| Revenue |
Previous Guidance | Current Guidance | |||||||
Total revenue |
3% to 6% | 3% to 6% | ||||||
Financial self-service |
5% to 8% | 5% to 8% | ||||||
Security |
4% to 7% | 4% to 7% | ||||||
Brazil election sys. / lottery |
$90 million to $100 million | $90 million to $100 million |
| Earnings per share |
Previous Guidance | Current Guidance | |||||||
2011 EPS (GAAP) |
$ | 1.66 - $1.92 | $ | 1.50 - $1.78 | ||||
Restructuring charges |
.12 - .09 | .28 - .23 | ||||||
Non-routine exp. |
.22 - .19 | .22 - .19 | ||||||
2011 EPS non-GAAP* |
$ | 2.00 - $2.20 | $ | 2.00 - $2.20 |
Q1 2011 | Q1 2010 | % Change | ||||||||||
Financial Self-Service |
||||||||||||
Products |
$ | 198,640 | $ | 203,700 | -2 | % | ||||||
Services |
264,456 | 267,808 | -1 | % | ||||||||
Total Fin. self-service |
463,096 | 471,508 | -2 | % | ||||||||
Security solutions |
||||||||||||
Products |
43,413 | 51,450 | -16 | % | ||||||||
Services |
99,918 | 93,441 | 7 | % | ||||||||
Total Security |
143,331 | 144,891 | -1 | % | ||||||||
Total Fin. self-service & security |
606,427 | 616,399 | -2 | % | ||||||||
Election Systems & Lottery |
||||||||||||
Products |
7,730 | 2,595 | n/m | |||||||||
Services |
| 5 | n/m | |||||||||
Total Election Systems & Lottery |
7,730 | 2,600 | n/m | |||||||||
Total Revenue |
$ | 614,157 | $ | 618,999 | -1 | % | ||||||
Q1 2011 | Q1 2010 | % Change | ||||||||||
Diebold North America |
$ | 305,964 | $ | 296,200 | 3 | % | ||||||
Diebold International |
||||||||||||
Latin America (incl. Brazil) |
152,888 | 149,527 | 2 | % | ||||||||
Asia Pacific |
83,889 | 98,442 | -15 | % | ||||||||
Europe, Middle East, Africa |
71,416 | 74,830 | -5 | % | ||||||||
Total Diebold International |
308,193 | 322,799 | -5 | % | ||||||||
Total Revenue |
$ | 614,157 | $ | 618,999 | -1 | % | ||||||
Q1 2011 | Q1 2010 | |||||||
Other income/(expense) |
$ | 23 | $ | 709 | ||||
Foreign ex. gain/(loss), net |
(1,046 | ) | (4,641 | ) | ||||
Interest expense |
(8,673 | ) | (9,055 | ) | ||||
Investment income |
10,898 | 7,471 | ||||||
Total other income / (expense), net |
$ | 1,202 | ($5,516 | ) | ||||
1. | Reconciliation of diluted GAAP EPS to non-GAAP EPS from continuing operations measures: |
Q1 2011 | Q1 2010 | |||||||
Total EPS from continuing operations (GAAP
measure) |
$ | 0.04 | $ | 0.37 | ||||
Restructuring charges |
0.14 | 0.01 | ||||||
Non-routine expenses |
0.05 | | ||||||
Non-routine income |
| (0.04 | ) | |||||
Total EPS (non-GAAP measure) |
$ | 0.23 | $ | 0.34 |
The companys management believes excluding restructuring charges and non-routine expenses and income is useful to investors because it provides an overall understanding of the companys historical financial performance and future prospects. Management believes non-GAAP EPS from continuing operations is an indication of the companys base-line performance. Exclusion of these items permits evaluation and comparison of results for the companys core business operations, and it is on this basis that management internally assesses the companys performance. |
2. | Free cash flow (use) is calculated as follows: |
Q1 2011 | Q1 2010 | |||||||
Net cash provided / (used) by operating
activities (GAAP measure) |
$ | (90,151 | ) | $ | (56,223 | ) | ||
Capital expenditures |
(10,902 | ) | (11,103 | ) | ||||
Free cash flow / (use) (non-GAAP measure) |
$ | (101,053 | ) | $ | (67,326 | ) |
The companys management believes that free cash flow is useful to investors because it is a meaningful indicator of cash generated from operating activities that is available for the execution of its business strategy, including service of debt principal, dividends, share repurchase and acquisitions. Free cash flow is utilized to fund our dividends, as well as mandatory debt payments and other investment opportunities. Free cash flow is not an indicator of residual cash available for discretionary spending, because it does not take into account mandatory debt service or other non-discretionary spending requirements that are deducted in the calculation of free cash flow. |
3. | Net investment/(debt) is calculated as follows: |
3/31/2011 | 12/31/2010 | 3/31/2010 | ||||||||||
Cash, cash equivalents and
short-term
investments (GAAP
measure) |
$ | 552,206 | $ | 601,781 | $ | 427,570 | ||||||
Debt instruments |
(638,090 | ) | (566,632 | ) | (605,591 | ) | ||||||
Net investment/(debt)
(non-GAAP measure) |
$ | (85,884 | ) | $ | 35,149 | $ | (178,021 | ) |
The companys management believes that given the significant cash, cash equivalents and other investments on its balance sheet that net cash against outstanding debt is a meaningful net debt calculation. |
4. | Reconciliation of GAAP Operating Margin to non-GAAP measures |
Q1 2011 | Q1 2010 | |||||||
GAAP Operating Profit |
$ | 8,869 | $ | 40,585 | ||||
GAAP Operating Profit % |
1.4 | % | 6.6 | % | ||||
Restructuring |
11,801 | 1,116 | ||||||
Non-routine Expenses |
5,771 | 17 | ||||||
Non-routine Income |
| (4,097 | ) | |||||
Non GAAP Operating Profit |
$ | 26,441 | $ | 37,621 | ||||
Non GAAP Operating Profit % |
4.3 | % | 6.1 | % |
The companys management believes excluding restructuring charges, and non-routine expenses and income from operating margins is an indication of the companys baseline performance. The exclusion of these items permits evaluation and comparison of results for the companys core business operations and it is on this basis that the companys management internally assesses the companys performance. |
| competitive pressures, including pricing pressures and technological developments; | |
| changes in the companys 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 companys operations, including Brazil, where a significant portion of the companys revenue is derived; | |
| the amount of cash and non-cash charges in connection with the restructuring of the companys EMEA operations | |
| the companys ability to take actions to mitigate the effect of the Venezuelan currency devaluation, further devaluation, actions of the Venezuelan government, and economic conditions in Venezuela; | |
| the continuing effects of the economic downturn and the disruptions 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 companys product and technology introductions in the marketplace; | |
| the companys ability to maintain effective internal controls; | |
| changes in the companys 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 companys 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 such as the recently enacted U.S health care legislation; | |
| the amount and timing of repurchases of the companys common shares, if any; | |
| the outcome of the companys global FCPA review and any actions taken by government agencies in connection with the companys self disclosure, including the pending SEC investigation; and | |
| the companys ability to achieve benefits from its cost-reduction initiatives and other strategic changes. |
Three months ended | ||||||||
March 31, | ||||||||
2011 | 2010 | |||||||
Net Sales |
||||||||
Product |
$ | 249,783 | $ | 257,745 | ||||
Service |
364,374 | 361,254 | ||||||
Total |
614,157 | 618,999 | ||||||
Cost of goods |
||||||||
Product |
188,863 | 192,277 | ||||||
Service |
275,890 | 268,712 | ||||||
Total |
464,753 | 460,989 | ||||||
Gross Profit |
149,404 | 158,010 | ||||||
Percent of net sales |
24.3 | % | 25.5 | % | ||||
Operating expenses |
||||||||
Selling, general and administrative |
121,111 | 98,977 | ||||||
Research, development and engineering |
19,424 | 18,448 | ||||||
Total |
140,535 | 117,425 | ||||||
Percent of net sales |
22.9 | % | 19.0 | % | ||||
Operating profit |
8,869 | 40,585 | ||||||
Percent of net sales |
1.4 | % | 6.6 | % | ||||
Other income / (expense), net |
1,202 | (5,516 | ) | |||||
Income from continuing operations before taxes |
10,071 | 35,069 | ||||||
Taxes on income |
(5,925 | ) | (9,877 | ) | ||||
Income from continuing operations |
4,146 | 25,192 | ||||||
Loss from discontinued operations net of tax |
(11 | ) | (970 | ) | ||||
Net Income |
4,135 | 24,222 | ||||||
Less: Net Income attrib to noncontrol interest |
(1,634 | ) | (298 | ) | ||||
Net Income attributable to Diebold, Inc. |
$ | 2,501 | $ | 23,924 | ||||
Basic weighted average shares outstanding |
65,762 | 66,298 | ||||||
Diluted weighted average shares outstanding |
66,230 | 66,776 | ||||||
Basic Earnings Per Share: |
||||||||
Income from continuing operations |
$ | 0.04 | $ | 0.38 | ||||
Loss from discontinued operations |
(0.00 | ) | (0.02 | ) | ||||
Net Income |
$ | 0.04 | $ | 0.36 | ||||
Diluted Earnings Per Share: |
||||||||
Income from continuing operations |
$ | 0.04 | $ | 0.37 | ||||
Loss from discontinued operations |
(0.00 | ) | (0.01 | ) | ||||
Net Income |
$ | 0.04 | $ | 0.36 | ||||
Amounts Attributable to Diebold, Inc. |
||||||||
Income from continuing operations net of tax |
$ | 2,512 | $ | 24,894 | ||||
Loss from discontinued operations |
(11 | ) | (970 | ) | ||||
Net Income attributable to Diebold, Inc. |
$ | 2,501 | $ | 23,924 | ||||
March 31, | December 31, | |||||||
2011 | 2010 | |||||||
(Unaudited) | ||||||||
ASSETS |
||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ | 279,562 | $ | 328,658 | ||||
Short-term investments |
272,644 | 273,123 | ||||||
Trade receivables, net |
418,586 | 404,501 | ||||||
Inventories |
474,125 | 444,575 | ||||||
Other current assets |
276,314 | 263,179 | ||||||
Total current assets |
1,721,231 | 1,714,036 | ||||||
Securities and other investments |
73,627 | 76,138 | ||||||
Property, plant and equipment, net |
202,539 | 203,462 | ||||||
Goodwill |
272,394 | 269,398 | ||||||
Other assets |
261,746 | 256,756 | ||||||
Total assets |
$ | 2,531,537 | $ | 2,519,790 | ||||
LIABILITIES AND EQUITY |
||||||||
Current liabilities |
||||||||
Notes payable |
$ | 21,883 | $ | 15,038 | ||||
Accounts payable |
187,682 | 214,288 | ||||||
Other current liabilities |
578,512 | 580,439 | ||||||
Total current liabilities |
788,077 | 809,765 | ||||||
Long-term debt |
615,010 | 550,368 | ||||||
Long-term liabilities |
151,166 | 169,843 | ||||||
Total Diebold, Inc. shareholders equity |
947,030 | 961,155 | ||||||
Noncontrolling Interests |
30,254 | 28,659 | ||||||
Total equity |
977,284 | 989,814 | ||||||
Total liabilities and equity |
$ | 2,531,537 | $ | 2,519,790 | ||||
Three months ended March 31, | ||||||||
2011 | 2010 | |||||||
Cash flow from operating activities: |
||||||||
Net income |
$ | 4,135 | $ | 24,222 | ||||
Adjustments to reconcile net income to cash
provided by operating activities: |
||||||||
Devaluation on Venezuelan balance sheet |
| 5,968 | ||||||
Depreciation and amortization |
19,246 | 19,587 | ||||||
Other |
1,526 | 2,342 | ||||||
Cash (used in) provided by changes
in certain assets and liabilities: |
||||||||
Trade receivables |
(8,072 | ) | (66,657 | ) | ||||
Inventories |
(21,955 | ) | 3,573 | |||||
Accounts payable |
(29,404 | ) | (5,283 | ) | ||||
Certain other assets and liabilities |
(55,627 | ) | (39,975 | ) | ||||
Net cash used in operating activities |
(90,151 | ) | (56,223 | ) | ||||
Cash flow from investing activities: |
||||||||
Proceeds from sale of discontinued operations |
| 1,202 | ||||||
Payments for acquisitions, net of cash acquired |
| | ||||||
Net investment activity |
9,689 | 13,033 | ||||||
Capital expenditures |
(10,902 | ) | (11,103 | ) | ||||
Increase in certain other assets & other |
3,410 | (5,864 | ) | |||||
Net cash provided by (used in) investing activities |
2,197 | (2,732 | ) | |||||
Cash flow from financing activities: |
||||||||
Dividends paid |
(18,650 | ) | (18,095 | ) | ||||
Net borrowings |
71,427 | 34,208 | ||||||
Repurchase of common shares |
(21,451 | ) | (11,355 | ) | ||||
Other |
4,632 | 746 | ||||||
Net cash provided by financing activities |
35,958 | 5,504 | ||||||
Effect of exchange rate changes on cash |
2,900 | (9,102 | ) | |||||
Decrease in cash and cash equivalents |
(49,096 | ) | (62,553 | ) | ||||
Cash and cash equivalents at the beginning of the period |
328,658 | 328,426 | ||||||
Cash and cash equivalents at the end of the period |
$ | 279,562 | $ | 265,873 | ||||
@E?Z`!V.@"<-`#0O@E`KQ=:&P!W#I#R0`!B@P$X,`!BPG$"C0
M!!/@#[%`!BA`$#"P"')P!A7@!YN""CM@!_G@#W[@`]4H$"10`0%`$!.@!V!@
M!UVP*7A@!"TP$*I@`V"0"1_0!"0Y$/2H"?[`!1\@"@E!`&>0![3@#PNP!]W@
M>OZ@#A5P!F5`D0+1`D;@D@,Q`4V@G/X0"HO@E"I0`8GI#]=0!HO0!B_P`P(!
M"X#_$`8\T)P#,0MV\`%GH`(#D0$?P`.Q29(`4`:5P`%MP`%]B1!?]P(5D)D"
MX0X5L`@[60:@8)4"00A[L`.S8`4\L)H"<0P^@`)60`"48`3M,!"'H`?8D`]R
M@`X#`0MYL`=E`)8",0Q&P`Y-%@&@,),"<9U5\`,```H