-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PIt3smDyBd+7cPs8jtajm+NVFE1I7JnA1eOY99tMoqhzrI5MWpEfbs9TVBtoD35J nXMLDfwGaKZ3/8LqCBmvwQ== 0000950152-04-007491.txt : 20041020 0000950152-04-007491.hdr.sgml : 20041020 20041020091526 ACCESSION NUMBER: 0000950152-04-007491 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20041020 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041020 DATE AS OF CHANGE: 20041020 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DIEBOLD INC CENTRAL INDEX KEY: 0000028823 STANDARD INDUSTRIAL CLASSIFICATION: CALCULATING & ACCOUNTING MACHINES (NO ELECTRONIC COMPUTERS) [3578] IRS NUMBER: 340183970 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-04879 FILM NUMBER: 041086506 BUSINESS ADDRESS: STREET 1: P.O. BOX 3077 STREET 2: 5995 MAYFAIR RD CITY: CANTON STATE: OH ZIP: 44720-8077 BUSINESS PHONE: 3304904000 MAIL ADDRESS: STREET 1: PO BOX 3077 CITY: CANTON STATE: OH ZIP: 44720-8077 8-K 1 l10057ae8vk.htm DIEBOLD, INCORPORATED 8-K Diebold, Incorporated 8-K
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): October 20, 2004

(DIEBOLD LOGO)

DIEBOLD, INCORPORATED

(Exact name of registrant as specified in its charter)
         
Ohio   1-4879   34-0183970
  		 
  		 
 
(State or other jurisdiction
of incorporation) 		  (Commission File Number)   (IRS Employer Identification Number)
     
5995 Mayfair Road, P.O. Box 3077, North Canton, Ohio   44720-8077
  		 
 
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code:          (330) 490-4000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 2.02 Results of Operations and Financial Condition

     On October 20, 2004, Diebold, Incorporated issued a news release describing its results for the third quarter of 2004, expectations for the full year 2004, and the outlook for 2005. The news release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

     The information in this report shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section and shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.

Item 9.01 Financial Statements and Exhibits

(c) Exhibits

     
Exhibit No.   Exhibit Description
99.1
  News Release of Diebold, Incorporated dated October 20, 2004.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

         
      DIEBOLD, INCORPORATED
 
        
Date: October 20, 2004
  By:   /s/Gregory T. Geswein
      Gregory T. Geswein
      Senior Vice President and
      Chief Financial Officer
      (Principal Financial Officer)

2

 

EXHIBIT INDEX

     
Exhibit No.   Exhibit Description
99.1
  News Release of Diebold, Incorporated dated October 20, 2004.

3

EX-99.1 2 l10057aexv99w1.txt EX-99.1 NEWS RELEASE OF DIEBOLD DATED 10-20-04 EXHIBIT 99.1 Media contact: Investor contact: Mike Jacobsen John Kristoff +1 330 490 3796 +1 330 490 5900 jacobsm1@diebold.com kristoj@diebold.com FOR IMMEDIATE RELEASE: October 20, 2004 DIEBOLD REPORTS THIRD QUARTER EARNINGS PER SHARE Company reports record orders and improved cash flow NORTH CANTON, Ohio - Diebold, Incorporated (NYSE: DBD) today reported third quarter 2004 net income of $48,319,000 and diluted earnings per share of $.67, compared to diluted earnings per share of $.66 in the third quarter of 2003. Included in the third quarter 2004 earnings per share were previously disclosed product recertification, legal and other costs related to the pending civil action in the state of California, which adversely impacted quarterly earnings by approximately $.05 per share. Diebold also achieved record third quarter revenue of $613,393,000, 7.6 percent higher than the third quarter 2003 revenue of $570,239,000. Diluted earnings per share grew 1.5 percent, driven by strong performance in the financial self-service and security businesses. Earnings were adversely affected by the election systems business, which was dilutive by $.04 per share in the third quarter of 2004 but was $.06 accretive in the third quarter of 2003. Excluding the election systems business, the third quarter 2004 diluted earnings per share would have increased by 18.3 percent*. THIRD QUARTER HIGHLIGHTS - ------------------------ - Record total orders for products and services increased in the double-digit range excluding election systems - Security solutions revenue grew 17.0 percent and 16.9 percent on a fixed exchange rate basis* as a result of recent acquisitions and internal growth - Free cash flow* improved by $92.4 million, moving from a cash use of $39.9 million in the third quarter of 2003 to free cash flow of $52.5 million in the third quarter of 2004 - 400,000 shares of Diebold stock were repurchased *See accompanying notes for non-GAAP measures. (more) PAGE 2/ DIEBOLD ANNOUNCES THIRD QUARTER RESULTS FINANCIAL RESULTS - ----------------- "We are very encouraged by our continued strong order growth during the quarter," said Walden W. O'Dell, Diebold chairman and chief executive officer. "We also achieved strong earnings per share growth in our financial self-service and security businesses, growing more than 18 percent. "As previously reported, election systems issues in California had a negative impact on earnings and margins during the third quarter," O'Dell continued. "However, we expect that the modernizing of voting systems in the United States will continue in 2005 and beyond, and we should have better visibility of the direction of the U.S. election systems market after the November election. "While we are very pleased with the significant improvements in U.S. product and service margins excluding election systems, we still have opportunities for improvement internationally, particularly in western Europe where Opteva has not fully completed customer certifications. We continue to face rising commodity costs globally, and while Opteva has allowed us to overcome those challenges in the United States, we have not yet achieved significant Opteva volume levels in some key international regions. However, we are making significant progress in obtaining certifications globally and expect Opteva to increase market penetration in these key international regions in 2005." FIXED EXCHANGE RATE THIRD QUARTER ORDERS - ---------------------------------------- Total orders for product and service increased in the double-digit range excluding election systems. Financial self-service orders increased in the single-digit range, led by strong double-digit growth in Asia-Pacific and modest growth in the Americas, compared to a particularly strong 2003 third quarter. These financial self-service order gains were slightly offset by a low single-digit decline in EMEA, where the market remains competitive and Opteva is not fully certified by all customers. Security orders remain strong, increasing in the double-digit range. Orders in election systems declined due to the expected slowing of orders in 2004 in advance of the U.S. presidential election and a large order with the state of Maryland in 2003. SIGNIFICANT ORDERS FOR THE QUARTER INCLUDED: - Total Opteva orders of approximately $110 million - Opteva orders from three major financial institutions in North America totaling $11.9 million - Financial self-service orders from a bank in China totaling $11.7 million - Physical security orders from a bank in North America totaling $4.6 million - A large financial self-service order in Mexico totaling $4.1 million - A financial self-service order in Brazil for $3.5 million - An Opteva order from an eastern European financial institution totaling $2.9 million - A $2.6 million order for Opteva from the Middle East - An Opteva order in Italy for $2.3 million (more) PAGE 3/ DIEBOLD ANNOUNCES THIRD QUARTER RESULTS REVENUE - ------- Total revenue for the quarter was $613.4 million, up $43.2 million, or 7.6 percent and 6.4 percent on a fixed exchange rate basis*. Total financial self-service revenue increased 8.6 percent and 7.0 percent on a fixed exchange rate basis*. Security solutions revenue grew 17.0 percent and 16.9 percent on a fixed exchange rate basis*. Total financial self-service and security revenue increased by 10.8 percent and 9.5 percent on a fixed exchange rate basis*. REVENUE SUMMARY BY PRODUCT AND SERVICE SOLUTIONS (In Thousands -- Quarter Ended September 30)
% Change % Change 2004 2003 GAAP fixed rate* --------------- -------------- -------------- ----------------- Financial Self-Service - ---------------------- Products $200,020 $177,162 12.9% 11.1% Services 218,393 208,014 5.0% 3.5% --------------- -------------- -------------- ----------------- Total Fin. self-service 418,413 385,176 8.6% 7.0% Security solutions - ------------------ Products 73,438 70,800 3.7% 3.6% Services 87,108 66,393 31.2% 31.1% --------------- -------------- -------------- ----------------- Total Security 160,546 137,193 17.0% 16.9% --------------- -------------- -------------- ----------------- Total Fin. self-service & security 578,959 522,369 10.8% 9.5% Election systems 34,434 47,870 -28.1% -28.1% --------------- -------------- -------------- ----------------- Total Revenue $613,393 $570,239 7.6% 6.4% =============== ============== ============== =================
Revenue Summary by Geographic Area (In Thousands -- Quarter Ended September 30) % Change % Change 2004 2003 GAAP fixed rate* ------------------- ------------------ ----------------- ---------------- The Americas - ------------ Financial self-service solutions $ 278,457 $ 258,674 7.6% 7.7% Security solutions subtotal 154,442 136,501 13.1% 13.1% ------------------- ------------------ ----------------- ---------------- 432,899 395,175 9.5% 9.5% Election systems 34,434 47,870 -28.1% -28.1% ------------------- ------------------ ----------------- ---------------- Total Americas 467,333 443,045 5.5% 5.5% Asia-Pacific - ------------ Financial self-service solutions 54,940 44,445 23.6% 22.6% Security solutions 6,097 683 N/A N/A ------------------- ------------------ ----------------- ---------------- Total Asia Pacific 61,037 45,128 35.3% 34.0% Europe, Middle East, Africa - --------------------------- Financial self-service solutions 85,016 82,057 3.6% -3.1% Security solutions 7 9 N/A N/A ------------------- ------------------ ----------------- ---------------- Total Europe, Middle East, Africa 85,023 82,066 3.6% -3.1% ------------------- ------------------ ----------------- ---------------- Total Revenue $ 613,393 $ 570,239 7.6% 6.4% =================== ================== ================= ================
*See accompanying notes for non-GAAP measures. (more) PAGE 4/ DIEBOLD ANNOUNCES THIRD QUARTER RESULTS CURRENCY IMPACT - --------------- During the quarter, revenue was positively impacted by the year-over-year strengthening of the euro and certain other currencies. The positive currency impact in the third quarter was approximately $6.1 million or 1.1 percent versus the prior year reported results. GROSS MARGIN - ------------ Total gross margin for the third quarter was 28.0 percent, a decrease of 1.4 percentage points from 29.4 percent in the third quarter 2003. Product gross margin was 31.1 percent, a decrease of 2.0 percentage points from 33.1 percent in the third quarter 2003. The majority of this decline was attributable to the election systems business, which was adversely impacted by lower overall revenue volume and California recertification costs. In addition, while there was continued margin weakness in Europe, product margins in the United States, excluding election systems, improved. This improvement in U.S. margins was a result of increased Opteva sales, which carry a higher margin and more than offset continued increases in fuel and steel prices. Service gross margin was 25.1 percent, a slight decrease from 25.5 percent in the third quarter of 2003. This decline was a result of continued pricing pressures and higher fuel costs. This negative impact was partially offset by improved service margins in the United States, where the company benefited from the continued rollout of productivity improvement initiatives. OPERATING EXPENSES - ------------------ Total operating expenses for the quarter as a percent of revenue were 15.8 percent, down from 16.9 percent in the third quarter 2003. This significant improvement was achieved despite absorbing higher legal and other expenses related to the pending civil action in the state of California. OPERATING PROFIT - ---------------- Operating profit was 12.2 percent of revenue, down slightly from 12.5 percent in the third quarter of 2003. The decrease in operating profit margin was due to lower gross margins in election systems, partially offset by the positive leveraging of operating expenses in the financial self-service and security businesses. OTHER INCOME/(EXPENSE) AND MINORITY INTEREST - -------------------------------------------- Other income/(expense) and minority interest increased by $3.8 million of additional expense in the third quarter of 2004 versus the third quarter of 2003. This increase was primarily due to costs incurred as a result of the pending civil action in the state of California and higher interest expense resulting from increased debt levels. NET INCOME - ---------- Net income was 7.9 percent of revenue compared to 8.5 percent in the third quarter 2003. The decline in net income as a percent of revenue was mainly the result of lower operating profit in the election systems business and higher other income/(expense) and minority interest, partially offset by lower operating expenses as a percent of revenue. (more) PAGE 5/ DIEBOLD ANNOUNCES THIRD QUARTER RESULTS BALANCE SHEET AND CASH FLOW HIGHLIGHTS - -------------------------------------- The company's net debt* was $210.9 million at September 30, 2004, compared to net debt* of $53.2 million at September 30, 2003. The $157.7 million increase in net debt* over the last 12 months was due to $72.9 million spent to repurchase company stock, $58.7 million invested in acquisitions, and higher working capital levels. The increased working capital is a result of the rapid growth of the company as well as requirements in the election systems business. In the third quarter, free cash flow* improved by $92.4 million, moving from a cash use of $39.9 million in the third quarter of 2003 to free cash flow* of $52.5 million in the third quarter of 2004. A substantial portion of this improvement was a result of improved trade receivable collections. DSO was 83 days at September 30, 2004, a nine-day sequential improvement from 92 days at June 30, 2004. The 12-month moving average inventory turns decreased slightly from 5.2 at September 30, 2003, to 4.9 at September 30, 2004. This decrease was due in part to the impact of transitioning to the new Opteva product solution and the phase out of legacy products, as well as the buildup for an anticipated strong 2004 fourth quarter. STOCK OPTION AND RESTRICTED STOCK EXPENSE - ----------------------------------------- As permitted under SFAS No. 123, "Accounting for Stock-Based Compensation," the company provides quarterly and annual disclosures of the impact to earnings per share if stock options were expensed. The company estimates that if stock options were expensed in accordance with SFAS 123, the full year impact in 2004 and 2003 would be approximately $.06 per share. On October 13, 2004, the Financial Accounting Standards Board (FASB) concluded that Statement 123R, "Share-Based Payment," which would require all companies to measure compensation costs for all share-based payments (including employee stock options) at fair value, would be in effect for public companies for quarters beginning after June 15, 2005. The FASB's current plan is to issue a final Statement on or around December 15, 2004. Also as previously disclosed, in the interest of more directly linking associate rewards to corporate performance, in 2004 the company granted restricted stock units in lieu of stock options to a select group of key associates. The impact from this transition to grants of restricted stock units will adversely impact 2004 earnings by approximately $.01 per share. *See accompanying notes for non-GAAP measures. (more) PAGE 6/DIEBOLD ANNOUNCES THIRD QUARTER RESULTS OUTLOOK - ------- The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. These statements do not include the potential impact of any future mergers, acquisitions, disposals or other business combinations. FOURTH QUARTER AND FULL-YEAR 2004 OUTLOOK - ----------------------------------------- Expectations for the fourth quarter 2004 include: - Fourth quarter revenue is expected to increase 9 to 11 percent on a fixed exchange rate basis*. - Financial self-service revenue growth of 11 to 14 percent, fixed rate*. - Security growth of 23 to 26 percent, fixed rate*. - Election systems revenue is expected to be $7 to $10 million for the fourth quarter. - Currency exchange is anticipated to be slightly favorable versus prior year. - Depreciation and amortization to be approximately $19 million. - An effective tax rate of approximately 31 to 32 percent. - An increase in pension expense of approximately $.01 per share in the fourth quarter of 2004 as compared to the fourth quarter of 2003. - EPS in the range of $.87 to $.92. This compares to $.81 in the fourth quarter of 2003. Election systems business is expected to be $0.03 dilutive in the fourth quarter 2004, including approximately $0.01 of additional cost related to the pending civil action in California as previously disclosed. This compares to election systems being approximately $.03 accretive in the fourth quarter 2003. Expectations for the full year 2004 include: - Revenue growth of 11 to 12 percent, on a fixed exchange rate basis*. - Financial self-service revenue growth of 11 to 12 percent, fixed rate*. - Security growth of 16 to 18 percent, fixed rate*. - Election systems revenue, which includes voting revenue from Brazil, is now anticipated to be in the range of $83 to $86 million. - Favorable currency impact of 1.5 to 1.8 percent versus prior year. - Depreciation and amortization of approximately $72 million. - An effective tax rate of approximately 31.5 to 32 percent. - Pension expense is expected to be $0.04 per share higher in 2004, moving from $0.01 per share in 2003 to $0.05 per share in 2004. - Research and development will be approximately 3 percent of revenue. - EPS in the range of $2.54 to $2.59. - Free cash flow* is expected to be in the range of $170 to $200 million. *See accompanying notes for non-GAAP measures. (more) PAGE 7/DIEBOLD ANNOUNCES THIRD QUARTER RESULTS 2005 OUTLOOK - ------------ Looking forward to 2005, while business unit forecasts have yet to be finalized and visibility is difficult given uncertain global economic conditions, management believes that through continued focus on speed, global efficiencies, and creative solutions to customer needs, the company will continue to gain market share. The following expectations do not include any potential impact of any future mergers, acquisitions, disposals or other business combinations, restructurings, or the expensing of stock options. Given these factors management has the following expectations: - 2005 revenue growth of 10 to 12 percent. - Depreciation and amortization in the range of $75 to $80 million. - Pension expense will be approximately $0.08 per share compared to $0.05 per share in 2004. - 2005 earnings per share are expected to increase 18 to 20 percent. NOTES FOR NON-GAAP MEASURES - --------------------------- 1. Diluted earnings per share (EPS) excluding election systems business:
Q3 2004 Q3 2003 % INCREASE ------- ------- ---------- Diluted EPS (GAAP measure) $0.67 $ 0.66 1.5% Dilution/(Accretion) to diluted EPS from election 0.04 (0.06) N/A systems business Diluted EPS excluding election systems business $0.71 $ 0.60 18.3% (non-GAAP measure) ====== ====== ====
The company believes that this non-GAAP measure provides meaningful performance data for the remaining business, which represent 94.3 percent of third quarter 2004 total revenue. 2. Fixed exchange rate is used to depict order and GAAP revenue growth in local currency without the benefit or detriment occurring from currency fluctuations. 3. Free cash flow is calculated as follows:
NINE MONTHS NINE MONTHS Q3 2004 Q3 2003 ENDED 2004 ENDED 2003 ------- ------- ---------- ---------- Net cash provided by operating activities (GAAP $ 66,897 $ (29,285) $ 71,958 $133,007 measure) Capital expenditures (12,212) (7,537) (35,507) (40,015) Rotable spares expenditures (2,167) (3,092) (7,307) (21,676) -------- --------- -------- -------- Free cash flow (non-GAAP measure) $ 52,518 $ (39,914) $ 29,144 $ 71,316 ======== ========= ======== ========
The company believes that free cash flow is a meaningful indicator of cash generated for discretionary purposes. 4. Net (debt)/investment is calculated as follows:
SEPT. 30, DECEMBER 31, SEPT. 30, 2004 2003 2003 --------- ------------ --------- Cash, cash equivalents and other investments (GAAP $ 124,540 $ 176,101 $ 147,098 measure) Less Industrial development revenue bonds and other (13,500) (13,550) (13,550) Less Notes payable (321,926) (190,172) (186,712) ----------- ---------- ---------- Net (debt)/investment (non-GAAP measure) $ (210,886) $ (27,621) $ (53,164) =========== ========== ==========
Given the significant cash, cash equivalents and other investments on the balance sheet, a meaningful debt calculation is to net cash against outstanding debt. (more) PAGE 8/DIEBOLD ANNOUNCES THIRD QUARTER RESULTS FINANCIAL INFORMATION - --------------------- Walden W. O'Dell and Senior Vice President and Chief Financial Officer Gregory T. Geswein will discuss the company's financial performance during a conference call today at 10:00 a.m. (ET). Access is available from Diebold's Web site at www.diebold.com. The replay can also be accessed on the site for up to three months after the call. FORWARD-LOOKING STATEMENT - ------------------------- In the company's written or oral statements, the use of the words "believes," "anticipates," "expects" and similar expressions is intended to identify forward-looking statements that have been made and may in the future be made by or on behalf of the company, including statements concerning future operating performance, the company's share of new and existing markets, and the company's short- and long-term revenue and earnings growth rates. Although the company believes that its outlook is based upon reasonable assumptions regarding the economy, its knowledge of its business, and on key performance indicators, which impact the company, there can be no assurance that the company's goals will be realized. The company is not obligated to report changes to its outlook. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The company's uncertainties could cause actual results to differ materially from those anticipated in forward-looking statements. These include, but are not limited to: - 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; - acceptance of the company's product and technology introductions in the marketplace; - unanticipated litigation, claims or assessments; - ability to reduce costs and expenses and improve internal operating efficiencies; - variations in consumer demand for financial self-service technologies, products and services; - challenges raised about reliability and security of the company's election systems products, including the risk that such products will not be certified for use or will be decertified; - changes in laws regarding the company's election systems products and services; and - potential security violations to the company's information technology systems. Diebold, Incorporated is a global leader in providing integrated self-service delivery and security systems and services. Diebold employs more than 13,000 associates with representation in more than 88 countries worldwide and is headquartered in Canton, Ohio, USA. Diebold reported revenue of $2.11 billion in 2003 and is publicly traded on the New York Stock Exchange under the symbol `DBD.' For more information, visit the company's Web site at www.diebold.com. # # # DIEBOLD, INCORPORATED INCOME STATEMENT (IN THOUSANDS EXCEPT EARNINGS PER SHARE)
Three Months Ended September 30 2004 2003 --------- --------- Net Sales Product $ 302,177 $ 292,203 Service 311,216 278,036 --------- --------- Total 613,393 570,239 Cost of goods Product 208,177 195,607 Service 233,193 207,179 --------- --------- Total 441,370 402,786 Gross Profit 172,023 167,453 Percent of net sales 28.0% 29.4% Operating expenses Selling, general and administrative 82,155 81,154 Research, development and engineering 14,733 15,035 --------- --------- Total 96,888 96,189 Percent of net sales 15.8% 16.9% Operating profit 75,135 71,264 Percent of net sales 12.2% 12.5% Other expense and minority interest, net (4,077) (251) --------- --------- Income before taxes 71,058 71,013 Percent of net sales 11.6% 12.5% Taxes on income (22,739) (22,724) Effective tax rate 32.0% 32.0% Net Income $ 48,319 $ 48,289 --------- --------- Percent of net sales 7.9% 8.5% Basic weighted average shares outstanding 71,571 72,533 Diluted weighted average shares outstanding 72,056 73,097 Basic Earnings Per Share $ 0.68 $ 0.67 Diluted Earnings Per Share $ 0.67 $ 0.66
DIEBOLD, INCORPORATED INCOME STATEMENT (IN THOUSANDS EXCEPT EARNINGS PER SHARE)
Nine Months Ended September 30 ------------------------------ 2004 2003 ----------- ----------- Net Sales Product $ 788,541 $ 669,271 Service 875,150 791,992 ----------- ----------- Total 1,663,691 1,461,263 Cost of goods Product 528,693 440,179 Service 657,691 587,844 ----------- ----------- Total 1,186,384 1,028,023 Gross Profit 477,307 433,240 Percent of net sales 28.7% 29.6% Operating expenses Selling, general and administrative 247,000 220,279 Research, development and engineering 45,064 44,225 ----------- ----------- Total 292,064 264,504 Percent of net sales 17.6% 18.1% Operating profit 185,243 168,736 Percent of net sales 11.1% 11.5% Other income / (expense) and minority interest, net (7,073) 1,166 ----------- ----------- Income before taxes 178,170 169,902 Percent of net sales 10.7% 11.6% Taxes on income (57,015) (54,369) Effective tax rate 32.0% 32.0% Net Income $ 121,155 $ 115,533 ----------- ----------- Percent of net sales 7.3% 7.9% Basic weighted average shares outstanding 72,172 72,343 Diluted weighted average shares outstanding 72,700 72,766 Basic Earnings Per Share $ 1.68 $ 1.60 Diluted Earnings Per Share $ 1.67 $ 1.59
DIEBOLD, INCORPORATED CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS)
September 30, 2004 December 31, 2003 ------------------ ----------------- ASSETS - ------ Current assets Cash and cash equivalents $ 101,454 $ 169,951 Short-term investments 23,086 6,150 Trade receivables, net 595,743 558,161 Inventories 336,089 262,039 Other current assets 132,098 108,858 ---------- ---------- Total current assets 1,188,470 1,105,159 Securities and other investments 49,450 47,386 Property, plant and equipment, net 258,554 253,155 Goodwill 384,737 331,646 Other assets 190,181 163,156 ---------- ---------- $2,071,392 $1,900,502 ---------- ---------- LIABILITIES AND SHAREHOLDERS' EQUITY - ------------------------------------ Current liabilities Notes payable $ 321,926 $ 190,172 Accounts payable 123,973 115,133 Other current liabilities 335,950 313,348 ---------- ---------- Total current liabilities 781,849 618,653 Long-term liabilities 127,466 133,611 Total shareholders' equity 1,162,077 1,148,238 ---------- ---------- $2,071,392 $1,900,502 ---------- ----------
DIEBOLD, INCORPORATED CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS)
Nine Months Ending September 30, 2004 September 30, 2003 ------------------ ------------------ Cash Flow from operating activities: Net Income $ 121,155 $ 115,533 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 53,110 51,598 Deferred income taxes (2,018) 412 Loss on sale of assets, net 531 1,071 Minority share of income 3,912 5,082 Cash provided (used) by changes in certain assets and liabilities: Trade receivables (22,408) (88,111) Inventories (73,316) (21,580) Accounts payable 4,679 11,419 Certain other assets and liabilities (13,687) 57,583 --------- --------- Net cash provided by operating activities 71,958 133,007 Cash flow from investing activities: Payments for acquisitions, net of cash acquired (58,668) (10,611) Net investment activity (19,903) (10,002) Capital expenditures (35,507) (40,015) Rotable spares expenditures (7,307) (21,676) Increase in certain other assets (2,790) (10,895) --------- --------- Net cash used by investing activities (124,175) (93,199) Cash flow from financing activities: Dividends paid (40,019) (36,896) Net borrowings (payments) on short term borrowings 129,742 (50,830) Net payments from securitization (37,639) (19,759) Repurchase treasury shares (71,897) (1,708) Other financing activities 3,968 13,994 --------- --------- Net cash used by financing activities (15,845) (95,199) Effect of exchange rate changes on cash (435) 4,676 --------- --------- Decrease in cash and cash equivalents (68,497) (50,715) Cash and cash equivalents at the beginning of the period 169,951 155,446 --------- --------- Cash and cash equivalents at the end of the period $ 101,454 $ 104,731 ========= =========
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