NORTH CANTON, Ohio,
July 5, 2017 /PRNewswire/
-- Diebold Nixdorf, Incorporated (NYSE: DBD) today announced
it is adjusting its full-year financial outlook for 2017.
Full-year revenue is now expected to be in the range of
$4.7 billion to $4.8 billion.
Earnings per share on a GAAP basis is now expected to be in the
range of $(1.65)-$(1.45), or
$0.95-$1.15 on a non-GAAP basis. The
company is in the process of closing its books for the second
quarter 2017, and expects orders, revenue and adjusted EBITDA in
the period to be comparable with first quarter results.
As previously disclosed, the company's banking business is
increasingly made up of large, complex projects with higher
software content, resulting in a longer customer decision-making
process and order-to-revenue conversion cycle. As a result,
the timing and volume of orders to date leads the company to adjust
its 2017 guidance.
In addition, the delay in systems rollouts also has a negative
impact on the company's service business. This change in volume,
combined with investments in hiring and training in the service
organization as part of the company's transformation, will pressure
near-term margins.
"We are encouraged by the positive feedback we are receiving
from customers, which demonstrates our strong competitive
position," said Andy W. Mattes,
president and chief executive officer, Diebold Nixdorf. "Clearly, we are
disappointed in our near-term financial performance. That said, we
continue to improve our operating expenses from the prior year and
are taking steps to further accelerate our cost reductions.
As a result, we are increasing our DN2020 net savings target to
$240 million. We are committed to
realizing the full potential of our new company and delivering
results for all our stakeholders."
Investor call information
Diebold Nixdorf plans to release
second quarter 2017 financial results on Wednesday, July 19, 2017, before trading begins
on the New York Stock Exchange. Andy
W. Mattes, president and chief executive officer, and
Christopher A. Chapman, senior vice
president and chief financial officer, will discuss the results
during a conference call scheduled to begin at 8:30 a.m. ET that day. The company will not
provide any further statements regarding its second quarter results
or full-year outlook until the second quarter conference
call.
Information about Diebold
Nixdorf's financial results, including a complete, full-text
press release, supplementary financial data and an earnings
overview presentation, will be accessible by visiting the Investor
Relations section of the company's website at
http://www.dieboldnixdorf.com/earnings on July 19. Live
access to the conference call, as well as the replay, will also be
available on this website. The conference call will last
approximately one hour. Participants should plan to dial in 10
minutes prior to the session. Details on the call are as
follows:
|
Call-in
number
|
Passcode
|
Time/Date
|
Conference
call
|
US/Canada:
888-539-3624
|
6697755
|
8:30 a.m. ET,
7/19/17
|
|
International:
719-325-2190
|
|
|
Updated full-year 2017 outlook(1)
|
Previous
Guidance
|
Current Guidance
|
Total Revenue
|
~$5.0B
|
~$4.7B -
$4.8B
|
Net Income (Loss) attributable to
Diebold Nixdorf, Inc.
|
$(75M) -
$(50M)
|
$(125M) -
$(110M)
|
Adjusted EBITDA
|
$440M
- $470M
|
$360M
- $380M
|
2017 EPS
(GAAP)
|
$(0.95) -
$(0.65)
|
$(1.65) -
$(1.45)
|
Restructuring
|
~0.45
|
~0.85
|
Non-routine
(income)/expense:
|
|
|
Integration
expense
|
~0.65
|
~0.70
|
Legal, Acquisition and
Divestiture expense
|
~0.35
|
~0.30
|
Impairment & Other
Non-routine
|
~0.05
|
~0.05
|
Wincor Nixdorf
purchase price accounting
|
~1.90
|
~1.90
|
Total non-routine
(income)/expense
|
~2.95
|
~2.95
|
Tax impact of
restructuring and non-routine (income)/expense items
|
~(1.05)
|
~(1.20)
|
Total Adjusted EPS
(non-GAAP measure)
|
$1.40 -
$1.70
|
$0.95 -
$1.15
|
(1) - The company expects a non-GAAP effective tax
rate of approximately 30% for the full year. With respect to the
company's non-GAAP tax rate outlook for 2017, the company is not
providing the most directly comparable GAAP financial measure and,
with respect to the company's non-GAAP tax rate and adjusted EBITDA
outlook for 2017, the company is not providing corresponding
reconciliations 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 exclude the future impact of restructuring actions,
net non-routine items, acquisition, divestiture and integration
related expenses and purchase accounting fair value adjustments.
These reconciling items are uncertain, depend on various factors
and could significantly impact, either individually or in the
aggregate, our future period tax rate 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.
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, adjusted diluted earnings per share,
free cash flow/(use), net investment/(debt), EBITDA, adjusted
EBITDA, non-GAAP effective tax rate 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 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 issuance of our
credit agreement and 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 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 finalization of
the company's financial statements for the three and six months
ended June 30, 2017; the
ultimate 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 synergies; the company's ability to successfully launch
and operate its joint ventures in China with the Inspur Group and Aisino Corp.;
the impact of market and economic conditions on the financial
services industry; 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; 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,
2016 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 as of the
date of this press release.
About Diebold Nixdorf
Diebold Nixdorf, Incorporated
(NYSE:DBD) is a world leader in enabling connected commerce for
millions of consumers each day across the financial and retail
industries. Its software-defined solutions bridge the physical and
digital worlds of cash and consumer transactions conveniently,
securely and efficiently. As an innovation partner for nearly all
of the world's top 100 financial institutions and a majority of the
top 25 global retailers, Diebold
Nixdorf delivers unparalleled services and technology that
are essential to evolve in an 'always on' and changing consumer
landscape.
Diebold Nixdorf has a presence in
more than 130 countries with approximately 24,000 employees
worldwide. The organization maintains corporate offices in
North Canton, Ohio, USA and
Paderborn, Germany. Shares are
traded on the New York and
Frankfurt Stock Exchanges under the symbol 'DBD'. Visit
www.DieboldNixdorf.com for more information.
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SOURCE Diebold Nixdorf