DGAP-Ad-hoc: Diebold Nixdorf, Incorporated / Key word(s): Half Year Results
Diebold Nixdorf Reports 2018 Second Quarter Financial Results and Revises
Outlook
01-Aug-2018 / 13:00 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation
(EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
*Diebold Nixdorf, Incorporated*
*North Canton, Ohio, United States of America*
*Public Disclosure of Inside Information pursuant to Article 17 MAR*
*Diebold Nixdorf Reports 2018 Second Quarter Financial Results and Revises
Outlook*
*August 1, 2018 - North Canton, Ohio, United States of America -* Diebold
Nixdorf, Incorporated (the "Company") today reported its second quarter 2018
financial results and announced it is adjusting its full-year financial
outlook for 2018.
The Company recorded revenues of approximately $1.1 billion in the second
quarter 2018, a decrease of around 2.5% on an as-reported basis. GAAP loss
per share at the end of the period was $(1.82), inclusive of a $1.18
non-cash goodwill impairment, or $(0.21) on a non-GAAP basis. GAAP operating
loss amounted to $(131.5) million in the second quarter 2018, or (11.9)%
operating margin loss, non-GAAP operating profit was $5.9 million, or 0.5%
operating margin. Net cash used by operating activities was $114.3 million,
a decrease in use of $5.1 million from the prior-year period; free cash use
was $124.7 million, a decrease in use of $9.0 million from the prior-year
period and cash and cash equivalents at the end of the period stood at
$299.0 million, down from $451.3 million in the prior-year period.
Based on a backlog position that is nearly the same as last year the Company
expects full-year revenue of approximately $4.5 billion for 2018. Due to
higher-than-expected service and delivery costs coupled with its revenue
outlook, the Company now expects lower adjusted EBITDA for 2018 in the range
of $280 million to $320 million. Full-year net loss is now expected to be in
the range of $(365) million to $(325) million (previous guidance: net loss
of $(95) million to $(75) million).
While the Company is currently in compliance with its debt covenants, the
Company aims to amend the Company's credit agreement with its lenders as a
result of its revised financial outlook.
As previously disclosed, during the second quarter the Company began
implementing a plan called 'DN Now' which is aimed at delivering greater,
more sustainable profitability and includes the implementation of a new,
customer-centric operating model with targeted savings of around $100
million as well as divestitures of non-core businesses amounting to
approximately 5 to 10 percent of total revenue, with the expectation of
using the proceeds to reduce debt.
*Financial Results of Operations and Segments*
Due to the implementation of a new operating model, the Company has changed
its reportable operating segments to Eurasia Banking, Americas Banking, and
Retail. This change is effective for the period ending June 30, 2018.
Revenue Summary by Reportable Segments - Unaudited
_Three months ended June 30, 2018 compared to June 30, 2017_
(Dollars in millions) *Three Months Ended June 30,
2018 2017 % Change % Change in CC(1)*
Segments Eurasia Banking
Services and software $ 285.0 $ 281.4 1.3 (3.6)
Products 152.5 192.1 (20.6) (23.4)
Total Eurasia Banking 437.5 473.5 (7.6) (11.6)
Americas Banking
Services and software 269.0 259.6 3.6 4.7
Products 101.6 110.8 (8.3) (5.9)
Total Americas Banking 370.6 370.4 0.1 1.6
Retail
Services and software 162.3 146.9 10.5 4.4
Products 135.2 143.1 (5.5) (10.6)
Total Retail 297.5 290.0 2.6 (3.0)
Total net sales $ 1,105.6 $ 1,133.9 (2.5) (5.2)
_Six months ended June 30, 2018 compared to June 30, 2017_
(Dollars in millions) *Six Months Ended June 30,
2018 2017 % Change % Change in CC(1)*
Segments Eurasia Banking
Services and software $ 572.9 $ 552.0 3.8 (4.3)
Products 299.7 359.5 (16.6) (22.4)
Total Eurasia Banking 872.6 911.5 (4.3) (11.4)
Americas Banking
Services and software 530.0 535.1 (1.0) (0.5)
Products 174.3 216.9 (19.6) (18.5)
Total Americas Banking 704.3 752.0 (6.3) (5.6)
Retail
Services and software 325.1 284.4 14.3 4.7
Products 267.8 288.8 (7.3) (15.3)
Total Retail 592.9 573.2 3.4 (5.4)
Total net sales $ 2,169.8 $ 2,236.7 (3.0) (8.0)
(1) - The Company calculates constant currency by translating the prior-year
period results at the current year exchange rate.
Full-year 2018 outlook(1)
*Previous guidance* *Current guidance*
*Total Revenue* *$4.5B - $4.7B* *$4.5B*
*Net Income (Loss)* *$(95 million) - $(75 *$(365 million) -
million)* $(325 million)*
*Adjusted EBITDA* *$380 million - $410 *$280 million - $320
million* million*
(1) - With respect to the Company's non-GAAP adjusted EBITDA outlook for
2018, it is not providing the most directly comparable GAAP financial
measure because it is unable to predict with reasonable certainty those
items that may affect such measures calculated and presented in accordance
with GAAP without unreasonable effort. These measures primarily exclude the
future impact of restructuring actions, net non-routine items, acquisition,
divestiture and integration-related expenses, purchase accounting fair value
adjustments and impairment. These reconciling items are uncertain, depend on
various factors and could significantly impact, either individually or in
the aggregate, net income calculated and presented in accordance with GAAP.
*Non-GAAP Financial Measures and Other Information*
To supplement its condensed consolidated financial statements presented in
accordance with GAAP, the Company considers certain financial measures that
are not prepared in accordance with GAAP, including non-GAAP results,
adjusted diluted earnings per share, free cash flow/(use), net debt, EBITDA,
adjusted EBITDA and constant currency results. The Company calculates
constant currency by translating the prior year results at the current year
exchange rate. The Company uses these non-GAAP financial measures, in
addition to GAAP financial measures, to evaluate its operating and financial
performance and to compare such performance to that of prior periods and to
the performance of its competitors. Also, the Company uses these non-GAAP
financial measures in making operational and financial decisions and in
establishing operational goals. The Company also believes providing these
non-GAAP financial measures to investors, as a supplement to GAAP financial
measures, helps investors evaluate its operating and financial performance
and trends in its business, consistent with how management evaluates such
performance and trends. The Company also believes these non-GAAP financial
measures may be useful to investors in comparing its performance to the
performance of other companies, although its non-GAAP financial measures are
specific to the Company and the non- GAAP financial measures of other
companies may not be calculated in the same manner. We provide EBITDA and
Adjusted EBITDA because the Company believes that investors and securities
analysts will find EBITDA and adjusted EBITDA to be useful measures for
evaluating its operating performance and comparing its operating performance
with that of similar companies that have different capital structures and
for evaluating the Company's ability to meet its future debt service,
capital expenditures, and working capital requirements. The Company is also
providing EBITDA and adjusted EBITDA in light of its credit agreement and
the issuance of its 8.5% senior notes due 2024.
North Canton, August 1, 2018
Diebold Nixdorf, Incorporated
Notifying Person:
Stephen A. Virostek
Vice President, Investor Relations
Telephone +1 (330) 490-6319
Facsimile +1 (330) 490-3794
stephen.virostek@dieboldnixdorf.com
*Forward-Looking Statements*
This ad hoc release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995, including
statements regarding anticipated adjusted revenue growth, adjusted internal
revenue growth, adjusted diluted earnings per share, and adjusted earnings
per share growth. Statements can generally be identified as forward-looking
because they include words such as "believes", "anticipates", "expects",
"could", "should" or words of similar meaning. Statements that describe the
Company's future plans, objectives or goals are also forward-looking
statements. Forward-looking statements are subject to assumptions, risks and
uncertainties that may cause actual results to differ materially from those
contemplated by such forward-looking statements. The factors that may affect
the Company's results include, among others: the impact of the domination
and profit and loss transfer agreement with Diebold Nixdorf AG ("DPLTA") and
the outcome of the appraisal proceedings initiated in connection with the
implementation of the DPLTA; the ultimate outcome and results of integrating
the operations of the Company and Diebold Nixdorf AG; the ultimate outcome
of the Company's pricing, operating and tax strategies applied to Diebold
Nixdorf AG and the ultimate ability to realize cost reductions and
synergies; the Company's ability to successfully operate its strategic
alliances in China; the 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 the impact of the Tax Act; the
Company's reliance on suppliers and any potential disruption to the
Company's global supply chain; the impact of market and economic conditions
on the financial services and retail industries; the capacity of the
Company's technology to keep pace with a rapidly evolving marketplace;
pricing and other actions by competitors; the effect of legislative and
regulatory actions in the United States and internationally; the Company's
ability to comply with government regulations; the impact of a security
breach or operational failure on the Company's business; the Company's
ability to successfully integrate acquisitions into its operations; the
impact of the Company's strategic initiatives, including DN Now; the
Company's success in divesting, reorganizing or exiting non-core businesses;
and other factors included in the Company's filings with the SEC, including
its Annual Report on Form 10-K for the year ended December 31, 2017 and in
other documents that the Company files with the SEC. You should consider
these factors carefully in evaluating forward-looking statements and are
cautioned not to place undue reliance on such statements. The Company
assumes no obligation to update any forward-looking statements, which speak
only to the date of this ad hoc release.
01-Aug-2018 CET/CEST The DGAP Distribution Services include Regulatory
Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de
Language: English
Company: Diebold Nixdorf, Incorporated
5995 Mayfair Road
44720 North Canton, OH
United States
Phone: +1 330 490 6855
Fax: +1 330 490 4450
E-mail: mary.swann@diebold.com
Internet: www.dieboldnixdorf.com
ISIN: US2536511031
WKN: 856244
Listed: Regulated Market in Frankfurt; Regulated Unofficial Market in
Berlin, Munich, Stuttgart, Tradegate Exchange; NYSE
End of Announcement DGAP News Service
709963 01-Aug-2018 CET/CEST
(END) Dow Jones Newswires
August 01, 2018 07:00 ET (11:00 GMT)
