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
2020-07-30 / 13:42
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.
*Exhibit 99.1*
*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:*
July 30, 2020
*DIEBOLD NIXDORF REPORTS 2020 SECOND QUARTER FINANCIAL RESULTS*
_Company delivers strong year-over-year improvements to profitability -- driven by continued execution of DN Now transformation initiatives and
resiliency of the company's business model _
NORTH CANTON, Ohio - Diebold Nixdorf (NYSE:DBD) today reported its second quarter 2020 financial results.
*Key highlights *
? Reported record levels for quarterly non-GAAP gross margin, non-GAAP operating profit margin & adjusted EBITDA margin
? Maintaining 2020 outlook for revenue and adjusted EBITDA, with improved outlook for free cash flow
? Successful $1.1 billion debt refinancing in July materially extends maturities
*Gerrard Schmid, Diebold Nixdorf president and chief executive officer, said:* 'Our second quarter financial results demonstrate the resiliency of
our business during the COVID-19 pandemic as well as solid execution of our DN Now transformation initiatives. As the second quarter progressed,
business activity picked up and the conversion rate to profitability was strong. For the quarter, GAAP operating margin expanded 170 basis points
to 2.3% while non-GAAP operating margin increased 460 basis points to 11.0%. We are also pleased with the strong level of investor support for our
recent refinancing, which further strengthened our balance sheet.
'While overall macroeconomic conditions remain uncertain, our execution and improving visibility enables the company to reiterate its 2020 outlook
for revenue and adjusted EBITDA. Additionally, our outlook for net cash provided by operating activities and free cash flow has improved. Looking
forward, we remain focused on operating margin expansion through our DN Now work streams, further optimizing our capital structure and continuing
to differentiate our solutions to pursue growth opportunities.'
*Financial results compared with Q2 2019*
? Revenue of $890.5M decreased 22.6%, or $260M YoY, reflecting approximately $108M of net unplanned reductions primarily related to COVID-19
pandemic delays, net planned reductions of approximately $113M including previously concluded divestitures and deliberate reductions in
low-margin business, and foreign currency headwinds of approximately $39M
? GAAP operating profit increased 181% to $20.5M; non-GAAP operating profit improved 32.7% to $98.2M
? Net loss of $23.1M improved by 58.2% YoY
? Adjusted EBITDA of $122.4M improved 14.6%; adjusted EBITDA margin improved 440 basis points to 13.7% on a non-GAAP basis
? Net cash used by operating activities increased $80M YoY to $90.8M; free cash use increased $57M to $73.3M primarily due to the effects of the
COVID-19 pandemic
? GAAP loss per share of $0.31 during the quarter improved versus the $0.66 loss per share in the prior year; on a non-GAAP basis, earnings of
$0.38 per share improved versus $0.06 per share in the prior year
*Other business updates*
? Made significant progress with next-generation DN Series ATMs including new orders with a top 10 and a top 25 financial institution in the
United States. Also secured a new contract in Egypt for 350 DN Series ATMs plus remote monitoring and cash deposit software. Globally, DN Series
certification projects nearly doubled since the beginning of the year to 475.
? Continued to lead the Americas region in deposit automation technology with a $13 million contract for cash recycling ATMs and related
services at one of the largest financial institutions in Latin America.
? Signed a three-year product and managed services contract with A.S. Watson, the world's largest international health and beauty retailer with
over 15,700 stores across 25 markets, to support its digital transformation strategy.
? Secured a new $17 million contract to deliver managed services, new point-of-sale and self-checkout solutions across several European
countries with one of the world's largest home furnishing retailers.
? Extended a strategic relationship with Accenture to accelerate digital transformation and cloud migration activities.
*Financial Results of Operations and Segments*
Revenue Summary by Reportable Segments - Unaudited
_Three months ended June 30, 2020 compared to June 30, 2019_
(Dollars
in
millions
) *Three Months Ended*
*June 30, 2020*
*% *% Change
*2020* *2019* Change* in CC1*
Segments
Eurasia
Banking
Services $ 163.8 $ 217.3 (24.6) (22.2)
Products 136.9 170.2 (19.6) (17.4)
Software 37.0 42.7 (13.3) (10.8)
Total
Eurasia
Banking 337.7 430.2 (21.5) (19.2)
Americas
Banking
Services 210.1 233.1 (9.9) (7.5)
Products 88.4 157.6 (43.9) (40.0)
Software 32.9 29.2 12.7 18.3
Total
Americas
Banking 331.4 419.9 (21.1) (17.6)
Retail
Services 94.6 115.6 (18.2) (15.6)
Products 86.1 142.4 (39.5) (37.9)
Software 40.7 42.1 (3.3) (0.2)
Total
Retail 221.4 300.1 (26.2) (24.1)
Total
net 1,150.
sales $ 890.5 $ 2 (22.6) (19.9)
_Six months ended June 30, 2020 compared to June 30, 2019_
(Dollars
in
millions
) *Six Months Ended*
*June 30, 2020*
*%
*% Change
*2020* *2019* Change* in CC1*
Segments
Eurasia
Banking
Services 343.0 429.6 (20.2) (17.9)
Products 235.2 298.0 (21.1) (18.9)
Software 70.0 85.2 (17.8) (15.6)
Total
Eurasia
Banking 648.2 812.8 (20.3) (18.0)
Americas
Banking
Services 427.1 455.2 (6.2) (4.3)
Products 181.6 266.1 (31.8) (28.6)
Software 67.4 61.3 10.0 15.8
Total
Americas
Banking 676.1 782.6 (13.6) (10.9)
Retail
Services 202.2 225.4 (10.3) (7.6)
Products 195.1 281.8 (30.8) (29.0)
Software 79.6 75.7 5.2 8.4
Total
Retail 476.9 582.9 (18.2) (15.9)
Total 2,1
net 1,80 78.
sales $ 1.2 $ 3 (17.3) (14.9)
1 - The company calculates constant currency by
translating the prior-year period results at the
current year exchange rate.
GAAP and Non-GAAP Profit/Loss Summary
_Three months ended June 30, 2020 compared to June 30, 2019_
(Dollars
in
millions) *Three Months Ended*
*June 30, 2020* *June 30, 2019* *Change*
*GAAP* *Non-GAAP2* *GAAP* *Non-GAAP2* *GAAP* *Non-GAAP*
Services $ 468.5 $ 468.5 $ 566.0 $ 566.0 $ (97.5) $ (97.5)
Products 311.4 311.4 470.2 470.2 (158.8) (158.8)
Software 110.6 110.6 114.0 114.0 (3.4) (3.4)
Total Net 1,150 1,150
Sales $ 890.5 $ 890.5 $ .2 $ .2 $ (259.7) $ (259.7)
Services $ 131.1 $ 143.7 $ 144.2 $ 147.2 $ (13.1) $ (3.5)
Products 70.4 71.6 99.3 96.3 (28.9) (24.7)
Software 46.1 48.7 35.7 39.4 10.4 9.3
Total
gross
profit $ 247.6 $ 264.0 $ 279.2 $ 282.9 $ (31.6) $ (18.9)
Services 28.0 % 30.7 % 25.5 % 26.0 % 250 bps 470 bps
Products 22.6 % 23.0 % 21.1 % 20.5 % 150 bps 250 bps
Software 41.7 % 44.0 % 31.3 % 34.6 % 1,040 bps 940 bps
Total
gross
margin 27.8 % 29.6 % 24.3 % 24.6 % 350 bps 500 bps
Total
operating
expenses $ 227.1 $ 165.8 $ 271.9 $ 208.9 $ (44.8) $ (43.1)
Operating
profit $ 20.5 $ 98.2 $ 7.3 $ 74.0 $ 13.2 $ 24.2
Operating
margin 2.3 % 11.0 % 0.6 % 6.4 % 170 bps 460 bps
Adjusted
EBITDA $ 65.2 $ 122.4 $ 54.0 $ 106.8 $ 11.2 $ 15.6
Adjusted
EBITDA
margin 7.3 % 13.7 % 4.7 % 9.3 % 260 bps 440 bps
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