NORTH CANTON, Ohio,
Dec. 12, 2019 /PRNewswire/
-- Diebold Nixdorf (NYSE: DBD), a global leader in
driving connected commerce for the banking and retail
industries, announced today that it is reaffirming its 2019
financial outlook, while providing guidance for 2020 and targets
for 2021.
For 2019, the company's reaffirmed outlook is as follows:
- Total revenue of approximately $4.4
billion;
- Adjusted EBITDA of $400 million
to $410 million, which represents 25%
to 28% growth over 2018;
- Net cash provided by operating activities of $120 million to $150
million;
- Capital expenditures of approximately $50 million; and
- Free cash flow of $70 million to
$100 million.
For 2020, the company's guidance is:
- $4.2 billion to $4.3 billion of revenue, approximately flat on a
constant currency basis and after accounting for an approximate
$100 million reduction from
divestitures;
- Adjusted EBITDA of $430 million
to $470 million, which includes a
modest impact from divestitures;
- Net cash provided by operating activities of $170 million to $200
million, representing growth of approximately 30% to 40%
from the 2019 outlook;
- Capital expenditures of approximately $70 million, including growth capital and
internal systems investments;
- Free cash flow of $100 million to
$130 million; and
- Leverage ratio in the mid-3x's by the end of 2020, a decrease
from the mid-4x's at year-end 2019.
For 2021, the company is targeting:
- Revenue growth towards the low end of its previously announced
range of 2% - 4%;
- Adjusted EBITDA margin is now in excess of 12%;
- Free cash flow of greater than $200
million; and
- Leverage ratio of less than 3x and return on invested capital
in the mid-teens.
"By executing on our DN Now transformation, the company has
strengthened its financial position by delivering substantial
improvements in profitability and free cash flow while reducing its
financial leverage," said Gerrard
Schmid, Diebold Nixdorf
president and chief executive officer. "We've made solid progress
during year one of our three-year transformation, demonstrating a
cohesive team effort towards delivering on our shared vision."
Schmid continued, "Looking forward, we expect sustained progress
on our operating efficiency initiatives, with significant
reductions in selling, general and administrative expenses through
our finance transformation plan and other activities. At the same
time, we expect increased sales of our distinctive DN
Series™, retail self-checkout solutions and managed
services offerings."
The company expects to report its 2019 fourth quarter and
full-year financial results in mid-February
2020.
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 23,000 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
Non-GAAP Financial Measures and Other Information
With
respect to the company's non-GAAP adjusted EBITDA outlook for 2019
and 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.
For 2020 adjusted EBITDA, the company expects its DN Now
transformation initiatives to yield approximately $130 million of gross savings. Partially
offsetting these gains in 2020, the company expects typical
inflation, certain non-recurring items and a modest impact from
near-term divestitures and related actions. In addition, the
2020 outlook includes incremental investments in future revenue
growth opportunities.
Free cash flow is a non-GAAP financial measure defined as net
cash provided by operating activities less capital
expenditures. The leverage ratio is a non-GAAP financial
measure defined as net debt to trailing 12 months adjusted
EBITDA. Return on invested capital (ROIC) is a non-GAAP
financial measure defined as tax-affected non-GAAP operating profit
divided by invested capital.
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. 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 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 of the remaining shareholders of Diebold Nixdorf AG;
the ultimate outcome and results of integrating the operations of
the company and former Diebold Nixdorf AG; the changes in
political, economic or other factors such as interest rates,
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; changes in the company's relationships with
customers, suppliers, distributors and/or partners in its business
ventures; the impact of market and economic conditions on the
financial services and retail industries, 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; the acceptance of the company's product and technology
introductions in the marketplace; the capacity of the company's
technology to keep pace with a rapidly evolving marketplace;
competitive pressures, including pricing pressures and
technological developments; 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 achieve benefits from its cost-reduction initiatives and
other strategic initiatives, such as DN Now, including its planned
restructuring actions, as well as its business process outsourcing
initiative; unanticipated litigation, claims or assessments, as
well as the outcome/impact of any current/pending litigation,
claims or assessments; the company's success in divesting,
reorganizing or exiting non-core and/or non-accretive businesses;
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; the company's ability to maintain
effective internal controls; the company's ability to comply with
covenants contained in the agreements governing its debt; 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; the company's
ability to successfully refinance its debt when necessary or
desirable; 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, 2018 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 release.
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SOURCE Diebold Nixdorf