DJ DGAP-CMS: Diebold Nixdorf, Incorporated: Release according to Article 50 of the WpHG [the German Securities Trading Act] with the objective of Europe-wide distribution
DGAP Post-admission Duties announcement: Diebold Nixdorf, Incorporated / Third country release according to Article 50 Para. 1, No. 2 of the
WpHG [the German Securities Trading Act]
Diebold Nixdorf, Incorporated: Release according to Article 50 of the WpHG [the German Securities Trading Act] with the objective of
Europe-wide distribution
2020-06-22 / 13:37
Dissemination of a Post-admission Duties announcement according to Article 50 Para. 1, No. 2 WpHG transmitted by DGAP - a service of EQS Group
AG.
The issuer is solely responsible for the content of this announcement.
*Press Release*
_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
*FOR IMMEDIATE RELEASE:*
June 22, 2020
*DIEBOLD NIXDORF REPORTS PRELIMINARY FINANCIAL RESULTS THROUGH MAY; RE-ESTABLISHES FULL-YEAR FINANCIAL OUTLOOK FOR 2020*
_Strong year-over-year improvements to profitability resulting from continued execution of DN Now transformation initiatives and resiliency of
the company's business model_
NORTH CANTON, Ohio - Diebold Nixdorf (NYSE:DBD), a global leader in driving connected commerce for the banking and retail industries, today
reported preliminary financial results through May and re-established full-year 2020 financial guidance.
*Gerrard Schmid, Diebold Nixdorf president and chief executive officer, said: *'Our year-to-date results through May demonstrate the
resiliency of our business during the COVID-19 pandemic and solid execution of our DN Now transformation initiatives. In this challenging
environment, non-GAAP operating profit of $107 million increased $52 million versus the same period of 2019. This strong performance provides
the confidence to re-establish financial guidance for 2020 as we prepare to meet with a number of investors this week. Our outlook includes
growth in adjusted EBITDA to a range of $400 million to $440 million and we expect to maintain adequate liquidity with break-even free cash
flow.'
*Year-to-date financial highlights through May 31, 2020*
? Non-GAAP operating profit of $106.9 million increased $51.5 million, or 93.3% YoY, as a result of higher-quality revenue and the positive
effects of DN Now transformation initiatives. Gross margins increased YoY for all three segments and business lines. The company reduced
operating expense by 16.0%, or $58 million YoY. Non-GAAP operating profit margin increased approximately 420 basis points YoY to 7.4%.
? Adjusted EBITDA of $149.7 million increased $34.0 million, or 29.4% YoY. Adjusted EBITDA margin increased approximately 380 basis points
to 10.4%.
? Free cash use of $176 million increased by $22 million as compared with free cash use of $154 million in the prior-year period.
? Revenue of $1.4 billion declined by 17.4%, or $303 million, YoY resulting primarily from approximately $124 million of net unplanned
reductions related to COVID-19 delays and approximately $98 million of net planned reductions. The strength of the U.S. dollar resulted in a
foreign currency headwind of approximately $53 million YoY, while divestitures reduced revenue by approximately $28 million YoY.
*Outlook for full-year 2020**1**:*
? Revenue of $3.7 billion - $3.9 billion which includes YoY foreign currency headwinds of approximately $120 million2 and divestiture
impacts of approximately $80 million.
? Adjusted EBITDA3 in the range of $400 million - $440 million, an increase of up to 10% versus 2019 results.
? The company continues to target approximately $130 million in gross savings from its DN Now transformation initiatives, plus incremental
cost savings of $80 million - $100 million which is comprised of both recurring and one-time savings.
? Break-even free cash flow.
Also, Diebold Nixdorf has posted a new investor presentation containing additional information on the company's financial position, results of
operations, DN Now initiatives and industry statistics on its investors website at
https://investors.dieboldnixdorf.com/events-and-presentations [1].
1 - The company's full year outlook for 2020 is based on the current book of business as well as information available today regarding the
potential effect of the coronavirus and the current recession. There are a number of factors, including the potential for a second wave of
virus infections and related business implications, that we may not be able to accurately predict. In addition, the 2020 outlook includes the
impact of deconsolidating our joint venture in China, which was finalized in the second quarter 2020, and the divestiture of Diebold Nixdorf
Portavis GmbH, which was finalized in the first quarter 2020. Collectively, these two businesses generated approximately $110 million of
revenue in 2019 are expected to generate approximately $80 million of revenue in 2020.
2 - The foreign currency impact is estimated based on exchange rates as of May 31, 2020.
3 - With respect to the company's non-GAAP adjusted EBITDA outlook for 2020, the company is not providing a reconciliation to 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 and net non-routine items. 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. Please see 'Use of Non-GAAP
Financial Measures' for additional information regarding our use of non-GAAP financial measures.
*Financial Results of Operations*
GAAP and Non-GAAP Profit/Loss Summary - Unaudited
(Dollars
in *Preliminary*
millions) *April and May, 2020* *April and May, 2019* *Change*
*GAAP* *Non-GAAP(4)* *GAAP* *Non-GAAP(4)* *GAAP* *Non-GAAP*
Services $ 303.1 $ 303.1 $ 367.4 $ 367.4 $ (64.3 ) $ (64.3 )
Products 157.1 157.1 276.1 276.1 (119.0 ) (119.0 )
Software 66.3 66.3 69.0 69.0 (2.7 ) (2.7 )
Total net
sales $ 526.5 $ 526.5 $ 712.5 $ 712.5 $ (186.0 ) $ (186.0 )
Services $ 77.4 $ 93.4 $ 88.9 $ 91.6 $ (11.5 ) $ 1.8
Products 33.2 34.2 62.5 61.7 (29.3 ) (27.5 )
Software 26.4 27.5 13.3 14.6 13.1 12.9
Total
gross
profit $ 137.0 $ 155.1 $ 164.7 $ 167.9 $ (27.7 ) $ (12.8 )
Services 25.5 % 30.8 % 24.2 % 24.9 % 130 bps 590 bps
) )
Products 21.1 % 21.8 % 22.6 % 22.3 % (150 bps (50 bps
Software 39.8 % 41.5 % 19.3 % 21.2 % 2,050 bps 2,030 bps
Total
gross
margin 26.0 % 29.5 % 23.1 % 23.6 % 290 bps 590 bps
Total
operating
expenses $ 151.1 $ 111.2 $ 171.3 $ 139.6 $ (20.2 ) $ (28.4 )
Operating
profit $ (14.1 ) $ 43.9 $ (6.6 ) $ 28.3 $ (7.5 ) $ 15.6
Operating )
margin (2.7 )% 8.3 % (0.9 )% 4.0 % (180 bps 430 bps
Adjusted
EBITDA $ 10.8 $ 60.2 $ 21.9 $ 50.6 $ (11.1 ) $ 9.6
Adjusted
EBITDA )
margin 2.1 % 11.4 % 3.1 % 7.1 % (100 bps 430 bps
4 - See footnote 1 for GAAP to Non-GAAP reconciliations for gross profit/gross margin; selling and administrative expense; research,
development and engineering expense; and other operating income/expense and footnote 2 for Adjusted EBITDA.
(Dollars
in *Preliminary YTD*
millions) *May 31, 2020* *YTD May 31, 2019* *Change*
*GAAP* *Non-GAAP(5)* *GAAP* *Non-GAAP(5)* *GAAP* *Non-GAAP*
Services $ 806.9 $ 806.9 $ 911.6 $ 911.6 $ (104.7 ) $ (104.7 )
Products 457.6 457.6 651.8 651.8 (194.2 ) (194.2 )
Software 172.7 172.7 177.2 177.2 (4.5 ) (4.5 )
Total net 1,437 1,437 1,740 1,740
sales $ .2 $ .2 $ .6 $ .6 $ (303.4 ) $ (303.4 )
Services $ 195.3 $ 229.6 $ 222.3 $ 226.2 $ (27.0 ) $ 3.4
Products 100.0 108.0 146.2 143.5 (46.2 ) (35.5 )
Software 68.5 71.6 42.3 45.6 26.2 26.0
Total
gross
profit $ 363.8 $ 409.2 $ 410.8 $ 415.3 $ (47.0 ) $ (6.1 )
)
(MORE TO FOLLOW) Dow Jones Newswires
June 22, 2020 07:37 ET (11:37 GMT)
DJ DGAP-CMS: Diebold Nixdorf, Incorporated: Release -2-
Services 24.2 % 28.5 % 24.4 % 24.8 % (20 bps 370 bps
)
Products 21.9 % 23.6 % 22.4 % 22.0 % (50 bps 160 bps
Software 39.7 % 41.5 % 23.9 % 25.7 % 1,580 bps 1,580 bps
Total
gross
margin 25.3 % 28.5 % 23.6 % 23.9 % 170 bps 460 bps
Total
operating
expenses $ 403.9 $ 302.3 $ 441.9 $ 359.9 $ (38.0 ) $ (57.6 )
Operating
profit $ (40.1 ) $ 106.9 $ (31.1 ) $ 55.4 $ (9.0 ) $ 51.5
Operating )
margin (2.8 )% 7.4 % (1.8 )% 3.2 % (100 bps 420 bps
Adjusted
EBITDA $ 33.6 $ 149.7 $ 51.7 $ 115.7 $ (18.1 ) $ 34.0
Adjusted
EBITDA )
margin 2.3 % 10.4 % 3.0 % 6.6 % (70 bps 380 bps
5 - See footnote 1 for GAAP to Non-GAAP reconciliations for gross profit/gross margin; selling and administrative expense; research,
development and engineering expense; and other operating income/expense and footnote 2 for Adjusted EBITDA.
*About Diebold Nixdorf*
Diebold Nixdorf, Incorporated (NYSE: DBD) is a world leader in enabling connected commerce. We automate, digitize and transform the way people
bank and shop. As a partner to the majority of the world's top 100 financial institutions and top 25 global retailers, our integrated
solutions connect digital and physical channels conveniently, securely and efficiently for millions of consumers each day.
The company has a presence in more than 100 countries with approximately 22,000 employees worldwide. Visit www.DieboldNixdorf.com for more
information.
Twitter: @DieboldNixdorf
LinkedIn: www.linkedin.com/company/diebold
Facebook: www.facebook.com/DieboldNixdorf
YouTube: www.youtube.com/dieboldnixdorf
*Year-to-date Financials*
Year-to-date financial results include preliminary results for April and May of 2020 that have been prepared by the company based on currently
available information and have not been reviewed by our independent auditors. Preliminary results require a greater degree of estimation and
assumptions than a typical period end closing process. As a result, second quarter results, and the actual results for April and May of 2020
included therein, may differ materially from the preliminary results presented above due to the finalization of quarterly financial and
accounting procedures. The above preliminary results should not be considered a substitute for the financial statements for the second quarter
ending June 30, 2020 prepared in accordance with GAAP, and investors should not place undue reliance upon the preliminary results.
*Non-GAAP Financial Measures and Other Information*
To supplement our 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, free cash flow/(use), net debt, EBITDA and adjusted
EBITDA. 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 our operating and financial performance and to compare
such performance to that of prior periods and to the performance of our 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 our operating and financial performance
and trends in our 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 we believe that investors and securities analysts will find EBITDA and adjusted EBITDA
to be useful measures for evaluating our operating performance and comparing our operating performance with that of similar companies that
have different capital structures and for evaluating our ability to meet our future debt service, capital expenditures and working capital
requirements. We are also providing EBITDA and adjusted EBITDA in light of our credit agreement and the issuance of our 8.5% senior notes due
2024. For more information, please refer to the section, 'Notes for Non-GAAP Measures.'
*Forward-Looking Statements*
This press release contains statements that are not historical information are 'forward-looking statements' within the meaning of the Private
Securities Litigation Reform Act of 1995, including statements regarding potential impact of the ongoing coronavirus (COVID-19) pandemic,
anticipated revenue and adjusted EBITDA, future liquidity and financial position. 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 finalization of the company's financial statements
for the quarter ending June 30, 2020; the ultimate impact of the ongoing COVID-19 pandemic on the company's business, results of operations,
financial condition and liquidity; the ultimate impact of the appraisal proceedings initiated in connection with the implementation of the
domination and profit and loss transfer agreement with Diebold Nixdorf AG and the merger squeeze-out; the company's ability to achieve
benefits from its cost-reduction initiatives and other strategic initiatives, such as DN Now, including its planned restructuring actions, and
its incremental cost savings actions, as well as its business process outsourcing initiative; the success of the company's new products,
including its DN Series line; the company's ability to comply with the covenants contained in the agreements governing its debt; the company's
ability to successfully refinance its debt when necessary or desirable; the ultimate outcome of the company's pricing, operating and tax
strategies applied to former Diebold Nixdorf AG and the ultimate ability to realize cost reductions and synergies; 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; the company's reliance on suppliers and any potential disruption to the
company's global supply chain; the impact of market and economic conditions, including any additional deterioration and disruption in the
financial and service 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; interest rate and foreign currency exchange rate fluctuations, including the impact of possible currency devaluations in
countries experiencing high inflation rates; the acceptance of the company's product and technology introductions in the marketplace;
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; the effect of legislative and regulatory actions in the United States and
internationally and 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 other acquisitions into its operations; the company's success in
divesting, reorganizing or exiting non-core and/or non-accretive businesses; the company's ability to maintain effective internal controls;
changes in the company's intention to further repatriate cash and cash equivalents and short-term investments residing in international tax
jurisdictions, which could negatively impact foreign and domestic taxes; unanticipated litigation, claims or assessments, as well as the
outcome/impact of any current/pending litigation, claims or assessments; the investment performance of the company's pension plan assets,
which could require the company to increase its pension contributions, and significant changes in healthcare costs, including those that may
result from government action; the amount and timing of repurchases of the company's common shares, if any; 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, 2019, Form 10-Q and in other
documents that the company files with the SEC. You should consider these factors carefully in evaluating forward-looking statements and are
(MORE TO FOLLOW) Dow Jones Newswires
June 22, 2020 07:37 ET (11:37 GMT)
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 release.
*DIEBOLD NIXDORF, INCORPORATED AND SUBSIDIARIES*
*CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED*
*(IN MILLIONS, EXCEPT EARNINGS PER SHARE)*
*Preliminary *Preliminary *YTD*
April and *April and YTD* *May 31,
May, 2020* May, 2019* *May 31, 2020* 2019*
Net sales
1,054.
Services $ 357.8 $ 425.3 $ 945.6 $ 0
Products 168.7 287.2 491.6 686.6
*Total* 526.5 712.5 1,437.2 1,740.6
Cost of sales
Services 258.3 328.1 695.8 799.6
Products 131.2 219.7 377.6 530.2
*Total* 389.5 547.8 1,073.4 1,329.8
*Gross
profit* 137.0 164.7 363.8 410.8
Gross margin 26.0 % 23.1 % 25.3 % 23.6 %
Operating
expenses
Selling and
administrativ
e expense 123.9 151.6 346.0 381.9
Research,
development
and
engineering
expense 21.1 26.2 53.6 63.1
(Gain) loss
on sale of
assets, net 6.1 (6.5 ) 4.3 (3.1 )
Total 151.1 171.3 403.9 441.9
Percent of
net sales 28.7 % 24.0 % 28.1 % 25.4 %
*Operating
profit
(loss)* (14.1 ) (6.6 ) (40.1 ) (31.1 )
Operating
margin (2.7 )% (0.9 )% (2.8 )% (1.8 )%
Other income
(expense)
Interest
income 1.6 1.1 2.7 4.0
Interest
expense (31.3 ) (32.8 ) (79.3 ) (83.7 )
Foreign
exchange
loss, net (4.6 ) (5.6 ) (4.2 ) (2.8 )
Miscellaneous
, net (1.1 ) (0.6 ) (2.0 ) (2.0 )
Total other
income
(expense) (35.4 ) (37.9 ) (82.8 ) (84.5 )
*Loss before
taxes* (49.5 ) (44.5 ) (122.9 ) (115.6 )
Income tax
expense 15.7 8.5 35.7 68.9
Equity in
earnings of
unconsolidate
d
subsidiaries - (0.4 ) - (0.8 )
Net loss (65.2 ) (53.4 ) (158.6 ) (185.3 )
Net (loss)
income
attributable
to
noncontrollin
g interests 0.2 (5.8 ) (0.4 ) (5.0 )
*Net loss
attributable
to Diebold
Nixdorf,
Incorporated* $ (65.4 ) $ (47.6 ) $ (158.2 ) $ (180.3 )
Basic and
diluted
weighted-aver
age shares
outstanding 77.6 76.7 77.4 76.5
*Net loss
attributable
to Diebold
Nixdorf,
Incorporated*
Basic and
diluted loss
per share $ (0.84 ) $ (0.62 ) $ (2.04 ) $ (2.36 )
*DIEBOLD NIXDORF, INCORPORATED AND SUBSIDIARIES*
*CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED*
*(IN MILLIONS)*
*Preliminary*
*May 31, 2020* *December 31, 2019*
ASSETS
Current assets
Cash, cash
equivalents
and restricted
cash $ 382.0 $ 280.9
Short-term
investments 12.3 10.0
Trade
receivables,
less
allowances for
doubtful
accounts 562.3 619.3
Inventories 529.9 466.5
Other current
assets 441.5 515.3
Total current
assets 1,928.0 1,892.0
Securities and
other
investments 19.8 21.4
Property,
plant and
equipment, net 209.5 231.5
Goodwill 738.3 764.0
Customer
relationships,
net 413.1 447.7
Other assets 389.5 434.0
Total assets $ 3,698.2 $ 3,790.6
LIABILITIES,
REDEEMABLE
NONCONTROLLING
INTERESTS AND
EQUITY
Current
liabilities
Notes payable $ 101.0 $ 32.5
Accounts
payable 459.5 471.5
Deferred
revenue 342.8 320.5
Other current
liabilities 648.7 775.1
Total current
liabilities 1,552.0 1,599.6
Long-term debt 2,363.3 2,108.7
Long-term
liabilities 524.0 567.7
Redeemable
noncontrolling
interests 20.6 20.9
Total Diebold
Nixdorf,
Incorporated
shareholders'
equity (779.1 ) (530.3 )
Noncontrolling
interests 17.4 24.0
Total equity (761.7 ) (506.3 )
Total
liabilities,
redeemable
noncontrolling
interests and
equity $ 3,698.2 $ 3,790.6
*DIEBOLD NIXDORF, INCORPORATED AND SUBSIDIARIES*
*CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED*
*(IN MILLIONS)*
*Preliminary YTD May *YTD*
31, 2020* *May 31, 2019*
Cash flow
from
operating
activities
Net loss $ (158.6 ) $ (185.3 )
Adjustments
to reconcile
net loss to
cash flow
used by
operating
activities:
Depreciation
and
amortization 89.3 96.9
Deferred
income taxes (19.8 ) (3.1 )
Other 10.7 10.3
Changes in
certain
assets and
liabilities
Trade
receivables 32.8 64.7
Inventories (81.8 ) (50.0 )
Accounts
payable 2.3 (31.7 )
Income taxes 42.9 46.6
Deferred
revenue 33.3 35.1
Warranty
liability (5.4 ) (2.7 )
Certain other
assets and
liabilities (153.7 ) (116.2 )
*Net cash
used by
operating
activities* (208.0 ) (135.4 )
Cash flow
from
investing
activities
Capital
expenditures (7.6 ) (18.4 )
Proceeds from
divestitures,
net of cash
divested (39.2 ) 7.8
Net
short-term
investment
activity (4.6 ) 26.6
Increase in
certain other
assets (3.6 ) (7.2 )
Net cash used
by investing
activities (55.0 ) 8.8
Cash flow
from
financing
activities
Net debt
borrowings 317.0 21.5
Distributions
and payments
to
noncontrollin
g interest
holders - (99.0 )
Other (5.3 ) (1.5 )
Net cash
provided
(used) by
financing
activities 311.7 (79.0 )
Effect of
exchange rate
changes on
cash and cash
equivalents (12.5 ) (4.0 )
Change in
cash, cash
equivalents
and
restricted
cash 36.2 (209.6 )
Add: Cash
included in
assets held
for sale at
beginning of
period 97.2 7.3
Less: Cash
included in
assets held
for sale at
end of period 32.3 2.6
Cash, cash
equivalents
and
restricted
cash at the
beginning of
the period 280.9 458.4
Cash, cash
equivalents
and
restricted
cash at the
end of the
period $ 382.0 $ 253.5
*Notes for Non-GAAP Measures*
To supplement our 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, EBITDA and Adjusted EBITDA, adjusted earnings per share,
free cash flow/(use) and net debt.
1) Profit/loss summary (Dollars in millions):
*Preliminary April and May, 2020* *April and May, 2019*
*% of *% of
*Net *Gross Sales *% of *Net *Gross Sales *% of
Sales* Profit* * *OPEX* *OP* Sales* Sales* Profit* * *OPEX* *OP* Sales*
GAAP Results $ 526.5 $ 137.0 26.0 % $ 151.1 $ (14.1 ) (2.7 )% $ 712.5 $ 164.7 23.1 % $ 171.3 $ (6.6 ) (0.9 )%
Restructuring
and DN Now
transformatio
n expenses - 0.7 (19.4 ) 20.1 - 0.5 (20.0 ) 20.5
Non-routine
income/expens
e:
Legal/deal
expense - - (2.3 ) 2.3 - - (3.5 ) 3.5
Wincor
Nixdorf
purchase
accounting
adjustments - 2.1 (12.0 ) 14.1 - 2.2 (14.0 ) 16.2
Costs related
to previously
divested
business in
Germany - - - - - - - -
Divestitures
and fixed
asset sales - - (5.9 ) 5.9 - - 6.7 (6.7 )
Loss making
contract
related to
discontinued
offering - 13.5 - 13.5 - - - -
Inventory
charge/gain - - - - - (2.1 ) - (2.1 )
(MORE TO FOLLOW) Dow Jones Newswires
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