-----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, Vf1vjRAEU3Ieb0mP00PL6VcGf/wI1L0q4t+T+NqgrAqY8LiISxEdzbQOoLgpAQBC bjgJqBdy5ibdJdvdnLQmcQ== 0000950152-05-003300.txt : 20050420 0000950152-05-003300.hdr.sgml : 20050420 20050420094542 ACCESSION NUMBER: 0000950152-05-003300 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20050420 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050420 DATE AS OF CHANGE: 20050420 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: 05760756 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 l13419ae8vk.htm DIEBOLD, INCORPORATED 8-K Diebold, Inc. 8-K
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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): April 20, 2005

(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:

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

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

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

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

 
 

 

TABLE OF CONTENTS

Item 2.02 Results of Operations and Financial Condition
Item 9.01 Financial Statements and Exhibits
SIGNATURES
EXHIBIT INDEX
EX-99.1 News Release of Diebold, Incorporated Dated 4-20-05

Table of Contents

Item 2.02 Results of Operations and Financial Condition

          On April 20, 2005, Diebold, Incorporated issued a news release announcing its results for the first quarter of 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 April 20, 2005.

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: April 20, 2005
  By:   /s/Gregory T. Geswein
       
      Gregory T. Geswein
      Senior Vice President and
      Chief Financial Officer
      (Principal Financial Officer)

2

Table of Contents

EXHIBIT INDEX

     
Exhibit No.   Exhibit Description
99.1
  News Release of Diebold, Incorporated dated April 20, 2005.

3

EX-99.1 2 l13419aexv99w1.txt EX-99.1 NEWS RELEASE OF DIEBOLD, INCORPORATED DATED 4-20-05 [DIEBOLD LOGO] We won't rest. NEWSrelease 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: April 20, 2005 DIEBOLD REPORTS FIRST QUARTER FINANCIAL RESULTS Company generates strong first quarter cash flow NORTH CANTON, Ohio - Diebold, Incorporated (NYSE: DBD) today reported record first quarter 2005 revenue of $540.2 million, up 8.4 percent from the first quarter of 2004. The company reported first quarter net income of $26.7 million, compared to net income of $29.2 million in the first quarter 2004. Diluted earnings per share were $.37, a decline of 7.5 percent and within the previous guidance of $.35 to $.40. Net cash provided by operating activities was $78.4 million, up 389 percent from the prior year, while free cash flow* improved by $59.6 million, moving from a free cash use* of $1.2 million in the first quarter 2004 to free cash flow* of $58.4 million. Included in the first quarter 2005 reported results were restructuring charges of $7.3 million, or approximately $.07 per share*, related primarily to the realignment of the company's operations in Western Europe, consistent with previous guidance. The first quarter 2005 effective tax rate was 32.8 percent, compared with previous guidance of 31.5 percent. The higher first quarter effective tax rate reduced reported earnings per share by approximately $.01. Excluding the impact of both the restructuring charges and the higher effective tax rate, diluted earnings per share in the first quarter would have been $.45, or 12.5 percent higher than the first quarter of 2004. FIRST QUARTER HIGHLIGHTS - Total product orders, excluding election systems, grew in the double-digit range led by double-digit growth in the Europe, Middle East and Africa (EMEA) region and the Americas. - Total Opteva orders were approximately $109 million, an increase of more than 80 percent from the first quarter 2004 as this new platform continues to gain wider market acceptance globally. - Security solutions revenue grew 19.9 percent and 19.6 percent on a fixed exchange-rate basis*. - Asia Pacific total revenue increased 14.2 percent, and 12.5 on a fixed exchange-rate basis*, while total revenue in the Americas, excluding election systems, grew 13.8 percent, and 12.4 percent on a fixed exchange-rate basis*. - Net cash provided by operating activities improved by $62.4 million, or 389 percent; while accounts receivable days sales outstanding improved 13 days, moving from 96 days at March 31, 2004 to 83 days at March 31, 2005. *See accompanying notes for non-GAAP measures. (more) PAGE 2/ DIEBOLD ANNOUNCES FIRST QUARTER RESULTS FINANCIAL RESULTS "We are encouraged by our continued strong order growth in financial self-service, particularly in EMEA, which experienced a double-digit increase as we continue to make progress with Opteva customer certifications," said Walden W. O'Dell, Diebold chairman and chief executive officer. "We achieved strong earnings per share growth, excluding restructuring charges and the higher-than-expected effective tax rate, growing 12.5 percent from a strong first quarter in 2004. We were also pleased that we were able to slightly improve operating profit margins compared to the prior year period, excluding the effect of restructuring charges. In addition, we were very pleased with the strong cash flow performance in the first quarter of 2005, and as a result are raising our full-year free cash flow* guidance to $210 to $250 million, representing a $10 to $20 million improvement over previous guidance. "Financial self-service revenue growth was somewhat less than expected due to disappointing revenue performance in EMEA as we focused on completing much of the restructuring of our operations there. However, with the strong first quarter orders achieved, a solid backlog in place and a fully functioning restructured manufacturing facility, we expect to achieve double-digit second quarter revenue growth in EMEA and meet our previously stated guidance for total financial self-service revenue growth for the year. Our security business continues to perform very well led by strong organic growth as well as the successful integration and strong performance by our recent acquisitions." O'Dell continued, "As we look to the remainder of 2005, we are encouraged by order growth for Opteva, which remains strong globally. We are, however, faced with rising fuel costs, which are expected to impact full-year earnings by $.02 per share. As a result of the impact of fuel prices, a $.02 impact from a higher-than-anticipated tax rate and a $.01 impact of higher restructuring charges, our current expectations for full-year earnings per share are $2.80 to $2.93, including $.09 to $.12 of restructuring charges. This represents a 15 to 19 percent increase in earnings per share over 2004, excluding the impact of restructuring charges." FIXED EXCHANGE-RATE FIRST QUARTER ORDERS Total orders for products and services increased in the double-digit range excluding election systems. Financial self-service orders increased in the high single-digit range, led by double-digit growth in EMEA and the Americas. Asia Pacific order growth was in the mid single-digit range after exceptionally strong order growth in the fourth quarter 2004. Security orders remain strong, increasing in the double-digit range. Orders in election systems declined significantly due to a large order for election equipment in Brazil in the first quarter 2004. *See accompanying notes for non-GAAP measures. (more) PAGE 3/ DIEBOLD ANNOUNCES FIRST QUARTER RESULTS REVENUE Total revenue for the quarter was $540.2 million, up $42.0 million, or 8.4 percent and 6.5 percent on a fixed exchange-rate basis*. Total financial self-service revenue increased 7.4 percent and 4.9 percent on a fixed exchange-rate basis*. Security solutions revenue grew 19.9 percent and 19.6 percent on a fixed exchange-rate basis*. Total financial self-service and security revenue increased by 10.5 percent and 8.6 percent on a fixed exchange-rate basis*. REVENUE SUMMARY BY PRODUCT AND SERVICE SOLUTIONS (IN THOUSANDS -- QUARTER ENDED MAR. 31, 2005)
% CHANGE % CHANGE 2005 2004 GAAP FIXED RATE* ---------- ---------- ---------- ----------- Financial Self-Service Products $ 173,347 $ 154,262 12.4% 10.0% Services 215,156 207,495 3.7% 1.2% ---------- ---------- ---------- ---------- Total Fin. self-service 388,503 361,757 7.4% 4.9% Security solutions Products 62,535 57,415 8.9% 8.4% Services 83,340 64,210 29.8% 29.6% ---------- ---------- ---------- ---------- Total Security 145,875 121,625 19.9% 19.6% ---------- ---------- ---------- ---------- Total Fin. self-service & security 534,378 483,382 10.5% 8.6% Election systems 5,856 14,873 -60.6% -60.6% ---------- ---------- ---------- ---------- Total Revenue $ 540,234 $ 498,255 8.4% 6.5% ========== ========== ========== ==========
REVENUE SUMMARY BY GEOGRAPHIC AREA (IN THOUSANDS -- QUARTER ENDED MAR. 31, 2005 )
% CHANGE % CHANGE 2005 2004 GAAP FIXED RATE* ---------- ---------- ---------- ----------- The Americas Financial self-service solutions $ 286,065 $ 258,156 10.8% 8.9% Security solutions 139,538 115,685 20.6% 20.4% ---------- ---------- ---------- ---------- subtotal 425,603 373,841 13.8% 12.4% Election systems 5,856 14,873 -60.6% -60.6% ---------- ---------- ---------- ---------- Total Americas 431,459 388,714 11.0% 9.6% Asia Pacific Financial self-service solutions 41,379 35,839 15.5% 13.9% Security solutions 6,337 5,940 6.7% 4.3% ---------- ---------- ---------- ---------- Total Asia Pacific 47,716 41,779 14.2% 12.5% Europe, Middle East, Africa Financial self-service solutions 61,059 67,762 -9.9% -14.2% Security solutions - - N/A N/A ---------- ---------- ---------- ---------- Total Europe, Middle East, Africa 61,059 67,762 -9.9% -14.2% ---------- ---------- ---------- ---------- Total Revenue $ 540,234 $ 498,255 8.4% 6.5% ========== ========== ========== ==========
*See accompanying notes for non-GAAP measures. (more) PAGE 4/ DIEBOLD ANNOUNCES FIRST 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 first quarter was approximately $8.9 million or 1.8 percent versus the prior year reported results. GROSS MARGIN Total gross margin for the first quarter was 26.0 percent, a decrease of 2.1 percentage points from 28.1 percent in the first quarter 2004. Included in total cost of sales in the first quarter 2005 was approximately $7.2 million in restructuring charges which adversely impacted total gross margins by 1.3 percentage points. Product gross margin was 28.9 percent, a decrease of 3.6 percentage points from 32.5 percent in the first quarter 2004. Included in product cost of sales in the first quarter of 2005 was approximately $6.8 million in restructuring charges which adversely impacted product gross margins by 2.9 percentage points. The remaining decrease in product gross margins was attributable to weaker international product gross margins, especially in Europe, and lower election system product margins on overall lower voting revenue levels. Service gross margin was 23.7 percent, a decrease of 1.0 percent from 24.7 percent in the first quarter 2004. This decline was a result of continued pricing pressures and increased fuel costs. Included in the service cost of sales in the first quarter of 2005 was approximately $0.4 million in restructuring charges, which adversely impacted service gross margins by 0.1 percentage points. OPERATING EXPENSES Total operating expenses for the quarter as a percent of revenue improved by 0.9 percentage points, moving from 19.3 percent to 18.4 percent in the first quarter 2005. Reduced selling, general and administrative expenses as a percentage of revenue accounted for 0.5 percentage points of the overall improvement to operating expenses. The improved leveraging of selling, general and administrative expenses was achieved due to aggressive controls on personnel costs, including strictly limiting the rate of replacement and new hires, limiting base compensation increases and implementing a corporate-wide efficiency program. Reduced R&D expenses resulting from the ongoing product rationalization created by the Opteva rollout accounted for the balance of the improvement in operating expenses. OPERATING PROFIT Operating profit was 7.6 percent of revenue, down 1.2 percentage points from 8.8 percent in the first quarter of 2004. Included in the financial results was $7.3 million of restructuring charges, which adversely impacted operating profits by 1.3 percentage points. Excluding the impact of these charges*, operating profit margin would have been 8.9 percent in the first quarter 2005, an increase of 0.1 percent from the first quarter 2004. OTHER EXPENSE AND MINORITY INTEREST Other expense and minority interest increased slightly, moving from $0.9 million in expense in the first quarter of 2004 to $1.3 million in expense in the first quarter of 2005. *See accompanying notes for non-GAAP measures (more) PAGE 5/ DIEBOLD ANNOUNCES FIRST QUARTER RESULTS NET INCOME Net income was 4.9 percent of revenue compared to 5.9 percent in the first quarter 2004. The decline in net income as a percent of revenue was mainly the result of $7.3 million in restructuring charges. In addition, the effective tax rate in the first quarter 2005 was 32.8 percent, compared to 32.0 percent in the first quarter 2004. The increase in the effective tax rate in the first quarter 2005 was due to the settlement of a prior-year U.S. state tax issue. BALANCE SHEET AND CASH FLOW HIGHLIGHTS The company's net debt* was $45.6 million at March 31, 2005, compared to net debt* of $60.1 million at March 31, 2004. The $14.5 million decrease in net debt* over the last 12 months was due to the positive impact of $231.0 million in free cash flow*, partially offset by $61.2 million invested in acquisitions, $55.4 million spent to repurchase company stock, $54.5 million in dividend payments, $26.4 million invested in other assets, and $19.0 million in foreign exchange impact. In the first quarter, free cash flow* improved by $59.6 million, moving from a free cash use* of $1.2 million in the first quarter of 2004 to $58.4 million of free cash flow* in the first quarter of 2005. A substantial portion of this improvement was a result of improved trade receivable collections. DSO was 83 days at March 31, 2005, a 13-day improvement from 96 days at March 31, 2004. Inventory turns declined slightly from 5.3 at March 31, 2004 to 5.1 turns at March 31, 2005. 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 No. 123 for the full year 2005, the impact would be approximately $.07 per share. On December 15, 2004, the Financial Accounting Standards Board (FASB) issued Statement 123R, "Share-Based Payment," which now requires companies to measure compensation costs for all share-based payments (including employee stock options) at fair value. This statement would have been effective for non-small business issuers for quarters beginning after June 15, 2005. The Security and Exchange Commission has postponed the effective deadline for adoption of Statement 123R to the first annual period beginning after June 15, 2005. The company is currently studying the new rules but has not yet quantified the impact of adoption nor decided whether it will implement this standard in the third quarter 2005 or wait until the first quarter 2006. The full-year 2005 guidance does not reflect the expensing of stock options. *See accompanying notes for non-GAAP measures. (more) PAGE 6/DIEBOLD ANNOUNCES FIRST 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, or the effect of expensing stock options under the new accounting standard, SFAS Statement No. 123R "Share-Based Payment". SECOND QUARTER 2005 OUTLOOK Expectations for the second quarter 2005 include: - Second quarter revenue is expected to increase 10 to 15 percent on a fixed exchange-rate basis*. - Financial self-service revenue growth of 11 to 14 percent*. - Security revenue growth of 17 to 21 percent*. - Election systems revenue is expected to be $20 to $40 million in the second quarter. - The company anticipates restructuring charges in the range of $.01 to $.02 per share related to the continued realignment of its operations in Western Europe. - Currency exchange is anticipated to be approximately 2 percent favorable versus prior year. - Depreciation and amortization to be approximately $20 million. - An effective tax rate of approximately 32 percent. - An increase in pension expense of approximately $.01 per share versus prior year. - EPS in the range of $.60 to $.66 per share, including the anticipated restructuring charge. This compares to $.60 in the second quarter of 2004. FULL-YEAR 2005 OUTLOOK Expectations for the full-year 2005 include: - Revenue growth of 10 to 13 percent, on a fixed exchange-rate basis*. - Financial self-service revenue growth of 7 to 10 percent*. - Security revenue growth of 17 to 20 percent*. - Election systems revenue is anticipated to be in the range of $85 to $95 million. - Brazilian lottery systems revenue of up to $10 million. - Favorable currency impact of approximately 1 percent versus prior year. - Depreciation and amortization in the range of $75 to $80 million. - An effective tax rate of approximately 32 percent. - Pension expense is expected to be $0.03 per share higher in 2005, moving from $0.05 per share in 2004 to $0.08 per share in 2005. - Research and development expense will be approximately 2.5 percent of revenue, consistent with prior year. - EPS in the range of $2.80 to $2.93, including the anticipated full-year impact of restructuring charges in the range of $.09 to $.12. Excluding the impact of restructuring charges, this represents EPS growth of 15 to 19 percent. - Free cash flow* is expected to be in the range of $210 to $250 million. *See accompanying notes for non-GAAP measures. (more) PAGE 7/DIEBOLD ANNOUNCES FIRST QUARTER RESULTS NOTES FOR NON-GAAP MEASURES 1. Reconciliation of restructuring charges:
Q1 2005 Q1 2005 RESTRUCTURING EXCLUDING AS REPORTED CHARGES RESTRUCTURING ----------- ------------- ------------- Income before taxes $ 39,695 $ 7,302 $ 46,997 Net income $ 26,675 $ 4,907 $ 31,582 Diluted earnings per share $ 0.37 $ 0.07 $ 0.44
The company believes earnings excluding restructuring charges provide meaningful insight into the ongoing performance of its operations. 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:
Q1 2005 Q1 2004 ---------- ---------- Net cash provided by operating activities (GAAP measure) $ 78,430 $ 16,054 Capital expenditures (13,712) (12,785) Rotable spares expenditures (6,322) (4,506) ---------- ---------- Free cash flow/(use) (non-GAAP measure) $ 58,396 $ (1,237) ========== ==========
The company believes that free cash flow is a meaningful indicator of cash generated for discretionary purposes. 4. Net (debt) is calculated as follows:
MARCH 31, DECEMBER 31, MARCH 31, 2005 2004 2004 ------------ ------------ ------------ Cash, cash equivalents and other investments (GAAP measure) $ 180,001 $ 215,699 $ 153,876 Less Industrial development revenue bonds and other (13,500) (13,500) (13,550) Less Notes payable (212,097) (289,510) (200,409) ------------ ------------ ------------ Net (debt) (non-GAAP measure) $ (45,596) $ (87,311) $ (60,083) ============ ============ ============
Given the significant cash, cash equivalents and other investments on the balance sheet, a meaningful debt calculation is to net cash against outstanding debt. 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. (more) PAGE 8/DIEBOLD ANNOUNCES FIRST QUARTER RESULTS 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 14,000 associates with representation in nearly 90 countries worldwide and is headquartered in Canton, Ohio, USA. Diebold reported revenue of $2.4 billion in 2004 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 CONDENSED CONSOLIDATED INCOME STATEMENTS (IN THOUSANDS EXCEPT EARNINGS PER SHARE)
THREE MONTHS ENDED MARCH 31 2005 2004 ------------ ------------ Net Sales Product $ 238,756 $ 219,592 Service 301,478 278,663 ------------ ------------ Total 540,234 498,255 Cost of goods Product 169,711 148,296 Service 230,122 209,932 ------------ ------------ Total 399,833 358,228 Gross Profit 140,401 140,027 Percent of net sales 26.0% 28.1% Operating expenses Selling, general and administrative 84,830 80,659 Research, development and engineering 14,624 15,538 ------------ ------------ Total 99,454 96,197 Percent of net sales 18.4% 19.3% Operating profit 40,947 43,830 Percent of net sales 7.6% 8.8% Other expense and minority interest, net (1,252) (934) ------------ ------------ Income before taxes 39,695 42,896 Percent of net sales 7.3% 8.6% Taxes on income (13,020) (13,727) Effective tax rate 32.8% 32.0% Net Income $ 26,675 $ 29,169 ------------ ------------ Percent of net sales 4.9% 5.9% Basic weighted average shares outstanding 71,661 72,777 Diluted weighted average shares outstanding 72,246 73,371 Basic Earnings Per Share $ 0.37 $ 0.40 Diluted Earnings Per Share $ 0.37 $ 0.40
DIEBOLD, INCORPORATED CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS)
MARCH 31, 2005 DECEMBER 31, 2004 -------------- ----------------- ASSETS Current assets Cash and cash equivalents $ 153,396 $ 184,045 Short-term investments 26,605 31,654 Trade receivables, net 537,763 583,658 Inventories 341,236 322,293 Other current assets 118,111 112,982 -------------- ----------------- Total current assets 1,177,111 1,234,632 Securities and other investments 50,016 52,248 Property, plant and equipment, net 276,138 268,090 Goodwill 405,146 412,625 Other assets 173,489 167,957 -------------- ----------------- $ 2,081,900 $ 2,135,552 -------------- ----------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Notes payable $ 212,097 $ 289,510 Accounts payable 109,675 140,324 Other current liabilities 351,167 298,789 -------------- ----------------- Total current liabilities 672,939 728,623 Long-term liabilities 148,546 146,454 Total shareholders' equity 1,260,415 1,260,475 -------------- ----------------- $ 2,081,900 $ 2,135,552 -------------- -----------------
DIEBOLD, INCORPORATED CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS)
THREE MONTHS ENDED MARCH 31, 2005 MARCH 31, 2004 -------------- -------------- Cash Flow from operating activities: Net Income $ 26,675 $ 29,169 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 19,897 18,903 Deferred income taxes 6,289 547 Loss on sale of assets, net 175 24 Minority share of income 956 1,552 Cash provided (used) by changes in certain assets and liabilities: Trade receivables 43,182 (1,208) Inventories (20,846) (30,346) Accounts payable (29,659) (18,560) Certain other assets and liabilities 31,761 15,973 -------------- -------------- Net cash provided by operating activities 78,430 16,054 Cash flow from investing activities: Payments for acquisitions, net of cash acquired - (979) Net investment activity 6,488 (3,273) Capital expenditures (13,712) (12,785) Rotable spares expenditures (6,322) (4,506) Increase in certain other assets (8,426) (6,617) -------------- -------------- Net cash used by investing activities (21,972) (28,160) Cash flow from financing activities: Dividends paid (14,697) (13,473) Net (payments) borrowings on short term borrowings (71,796) 16,039 Repurchase treasury shares - (16,488) Other financing activities 1,958 2,860 -------------- -------------- Net cash used by financing activities (84,535) (11,062) Effect of exchange rate changes on cash (2,572) (169) -------------- -------------- Decrease in cash and cash equivalents (30,649) (23,337) Cash and cash equivalents at the beginning of the period 184,045 169,951 -------------- -------------- Cash and cash equivalents at the end of the period $ 153,396 $ 146,614 ============== ==============
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