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
2020-07-30 / 14:16
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.
*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): *July 30, 2020
*Diebold Nixdorf, Incorporated*
(Exact name of registrant as specified in its charter)
=-----------------------------------------------------
Ohio 1-4879 34-0183970
(State or
other
jurisdicti (I.R.S.
on (Commission Employer
of
incorporat Identification
ion) File Number) No.)
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
Not Applicable
Former name or former address, if changed since last report
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))
Securities registered pursuant to Section 12(b) of the Act:
*Name
of
each
exchan
ge on
which
*Title of each *Trading regist
class* Symbol* ered*
*New
York
Stock
*Common shares, $1.25 par value per Exchan
share* *DBD* ge*
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933
(§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company -
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. -
*Item 2.02 Results of Operations and Financial Condition*
On July 30, 2020, Diebold Nixdorf, Incorporated (the 'Company') issued a news release announcing its results for the second
quarter of 2020 (the 'News Release'). The News Release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information in this Item 2.02 shall not be deemed 'filed' for the purposes of Section 18 of the Securities Exchange Act of
1934, as amended (the 'Exchange Act'), 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*
*(d) Exhibits.*
*Exhibit*
*Number* *Description*
News release of Diebold Nixdorf, Incorporated
99.1 dated July 30, 2020
Cover Page Interactive Data File (embedded
104 within the Inline XBRL document)
*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 hereunto duly authorized.
Diebold Nixdorf, Incorporated
Date: July 30,
2020 By: _/s/ Jeffrey Rutherford_
Name: Jeffrey Rutherford
Senior Vice President
and Chief Financial
Title: Officer
(Principal Financial
Officer)
*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 ourbusiness 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.
1 of 13
*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*
(MORE TO FOLLOW) Dow Jones Newswires
July 30, 2020 08:16 ET (12:16 GMT)
*%
Change
*% in
*2020* *2019* Change* CC**1*
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
*% in
*2020* *2019* Change* CC**1*
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
net 1,801. 2,178
sales $ 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.
2 of 13
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-GAAP**2* *GAAP* *Non-GAAP**2* *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.
Sales $ 890.5 $ 890.5 $ 2 $ 1,150.2 $ (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
_Six months ended June 30,
2020 compared to June 30,
2019_
(Dollars
in
millions) *Six Months Ended*
*June 30, 2020* *June 30, 2019* *Change*
*GAAP* *Non-GAAP**2* *GAAP* *Non-GAAP**2* *GAAP* *Non-GAAP*
1,110.
Services $ 972.3 $ 972.3 $ 2 $ 1,110.2 $ (137.9) $ (137.9)
Products 611.9 611.9 845.9 845.9 (234.0) (234.0)
Software 217.0 217.0 222.2 222.2 (5.2) (5.2)
Total Net 1,801. 1,801 2,178.
Sales $ 2 $ .2 $ 3 $ 2,178.3 $ (377.1) $ (377.1)
Services $ 249.0 $ 279.9 $ 277.6 $ 281.8 $ (28.6) $ (1.9)
Products 137.2 145.5 183.0 178.2 (45.8) (32.7)
Software 88.2 92.8 64.7 70.4 23.5 22.4
Total
gross
profit $ 474.4 $ 518.2 $ 525.3 $ 530.4 $ (50.9) $ (12.2)
28.8
Services 25.6 % % 25.0 % 25.4 % 60 bps 340 bps
23.8
Products 22.4 % % 21.6 % 21.1 % 80 bps 270 bps
42.8
Software 40.6 % % 29.1 % 31.7 % 1,150 bps 1,110 bps
Total
gross 28.8
margin 26.3 % % 24.1 % 24.3 % 220 bps 450 bps
Total
operating
expenses $ 479.9 $ 357.0 $ 542.5 $ 429.3 $ (62.6) $ (72.3)
Operating
profit $ (5.5) $ 161.2 $ (17.2) $ 101.1 $ 11.7 $ 60.1
Operating
margin (0.3)% 8.9 % (0.8)% 4.6 % 50 bps 430 bps
Adjusted
EBITDA $ 88.0 $ 211.9 $ 83.8 $ 171.9 $ 4.2 $ 40.0
Adjusted
EBITDA 11.8
margin 4.9 % % 3.8 % 7.9 % 110 bps 390 bps
1) - See footnote 1 for GAAP to Non-GAAP adjustments 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.
3 of 13
*Full-year 2020 Outlook**3*
*2020 Outlook*
Total Revenue $3.7B - $3.9B
Adjusted EBITDA4 $400M - $440M
Net cash provided by operating activities $45M - $55M
Capital expenditures $25M
Free cash flow $20M - $30M
1) - The company's 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.
1) - With respect to the company's non-GAAP adjusted EBITDA outlook for 2020, it 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 'Non-GAAP Financial Measures and Other Information' for additional information regarding our
use of non-GAAP financial measures.
*Overview Presentation and Conference Call*
More information on Diebold Nixdorf's quarterly earnings is available on its Investor Relations website. Gerrard Schmid, president
(MORE TO FOLLOW) Dow Jones Newswires
July 30, 2020 08:16 ET (12:16 GMT)
