Company declares quarterly cash dividend of 7.75 cents per
share
At its annual meeting of shareholders today, Ursula Burns,
chairman and CEO of Xerox (NYSE:XRX), discussed the company’s
financial performance in 2015. In addition, Burns outlined the
progress the company is making to enhance value for Xerox
shareholders by separating into two public companies while driving
a strategic transformation program to deliver $2.4 billion in
cumulative savings over three years, which includes savings from
ongoing and incremental productivity initiatives.
In her address to shareholders, Burns commented, “Despite the
pressures of operating in an increasingly challenging market
environment in 2015, we delivered on many of our goals and returned
significant capital to our shareholders.”
Burns noted that Xerox delivered value for shareholders in 2015
by:
- Posting $18 billion in revenue
- Delivering adjusted earnings per share
of 98 cents and GAAP earnings per share from continuing operations
of 49 cents
- Delivering $1.6 billion in operating
cash flow
- Returning $1.6 billion to shareholders
through share repurchases and dividends
- Increasing its annual dividend by 11
percent for 2016
Burns added, “In 2015, we continued to optimize and position our
portfolio for the future. By selling our Information Technology
Outsourcing business and restructuring our government healthcare
business, we achieved greater focus on higher margin growth
segments in our Business Process Outsourcing and Document
Outsourcing businesses. Additionally, in Document Technology we
introduced nine new products that reinforced our reputation for
market-leading innovation.
Burns concluded, “One of the most important decisions we made in
2015 was to conduct a comprehensive review of structural options
for the company’s portfolio and capital allocation. This resulted
in our decision in early 2016 to separate Xerox into two
independent, publicly-traded companies – one comprising our
Document Technology and Document Outsourcing businesses, and the
other our Business Process Outsourcing business. Both will be
significant Fortune 500-scale companies and leaders in their
respective markets. With increased strategic focus and resources
aligned to the specific needs of their markets, we can capitalize
on the unique strengths of our Document Technology and BPO
businesses and capture the value-creation opportunities that we see
in each of them.”
During the last few months, the company has made substantial
progress in building strong operational and financial foundations
for both new companies. The company has set a target to file its
initial Form 10 registration statement with the SEC in July, in
line with its goal of completing the separation by year-end. As
announced last month, the separation will be structured as a
tax-free spinoff of the BPO business to current Xerox shareholders.
And Xerox’s Board of Directors announced today that Burns will
serve as chairman of the board of the Document Technology company
following the separation.
Also at the annual meeting, shareholders elected the eight
nominees to the Xerox board of directors by a majority of
the votes cast: Ursula M. Burns, Richard J. Harrington, William
Curt Hunter, Robert J. Keegan, Charles Prince, Ann N.
Reese, Stephen H. Rusckowski and Sara Martinez
Tucker.
In a separate vote, shareholders ratified the selection of
PricewaterhouseCoopers LLP as the company’s independent, registered
public accounting firm for 2016. Shareholders also approved, on an
advisory basis, the 2015 compensation of Xerox’s named executive
officers and approved the 2016 amendment and restatement of the
company’s 2004 performance incentive plan. Shareholders did not
approve a proposal concerning executive compensation metrics.
Dividend Declaration
Today, the company announced that its board of directors
declared a quarterly cash dividend of 7.75 cents per share on Xerox
common stock. The dividend is payable on July 29, 2016 to
shareholders of record on June 30, 2016.
The board also declared a quarterly cash dividend of $20 per
share on Xerox Series A Convertible Perpetual Preferred Stock. The
dividend is payable on July 1, 2016 to shareholders of record on
June 15, 2016.
About Xerox
Xerox is helping change the way the world works. By applying our
expertise in imaging, business process, analytics, automation and
user-centric insights, we engineer the flow of work to provide
greater productivity, efficiency and personalization. Our employees
create meaningful innovations and provide business process
services, printing equipment, software and solutions that make
a real difference for our clients and their customers in 180
countries. On January 29, 2016, Xerox announced that it plans to
separate into two independent, publicly-traded companies: a
business process outsourcing company and a document technology
company. Xerox expects to complete the separation by year-end
2016. Learn more at www.xerox.com.
Non- GAAP Measures
This release refers to the non-GAAP financial measure “adjusted
earnings per share” for full-year 2015, which excludes the
amortization of intangible assets of $0.18, the second-quarter 2015
software impairment of $0.08 and the third-quarter 2015 Health
Enterprise (HE) charge of $0.23.
Forward-Looking Statements
This Release contains "forward-looking statements" as defined in
the Private Securities Litigation Reform Act of 1995. The words
“anticipate,” “believe,” “estimate,” “expect,” “intend,” “will,”
“should” and similar expressions, as they relate to us, are
intended to identify forward looking statements. These statements
reflect Management's current beliefs, assumptions and expectations
and are subject to a number of factors that may cause actual
results to differ materially. Such factors include, but are not
limited to: changes in economic conditions, political conditions,
trade protection measures, licensing requirements and tax matters
in the United States and in the foreign countries in which we do
business; changes in foreign currency exchange rates; our ability
to successfully develop new products, technologies and service
offerings and to protect our intellectual property rights; the risk
that multi-year contracts with governmental entities could be
terminated prior to the end of the contract term and that civil or
criminal penalties and administrative sanctions could be imposed on
us if we fail to comply with the terms of such contracts and
applicable law; the risk that our bids do not accurately estimate
the resources and costs required to implement and service very
complex, multi-year governmental and commercial contracts, often in
advance of the final determination of the full scope and design of
such contracts or as a result of the scope of such contracts being
changed during the life of such contracts; the risk that
subcontractors, software vendors and utility and network providers
will not perform in a timely, quality manner; service
interruptions; actions of competitors and our ability to promptly
and effectively react to changing technologies and customer
expectations; our ability to obtain adequate pricing for our
products and services and to maintain and improve cost efficiency
of operations, including savings from restructuring actions and the
relocation of our service delivery centers; the risk that
individually identifiable information of customers, clients and
employees could be inadvertently disclosed or disclosed as a result
of a breach of our security systems; the risk in the hiring and
retention of qualified personnel; the risk that unexpected costs
will be incurred; our ability to recover capital investments; the
risk that our Services business could be adversely affected if we
are unsuccessful in managing the start-up of new contracts; the
collectibility of our receivables for unbilled services associated
with very large, multiyear contracts; reliance on third parties,
including subcontractors, for manufacturing of products and
provision of services; our ability to expand equipment placements;
interest rates, cost of borrowing and access to credit markets; the
risk that our products may not comply with applicable worldwide
regulatory requirements, particularly environmental regulations and
directives; the outcome of litigation and regulatory proceedings to
which we may be a party; the possibility that the proposed
separation of the Business Process Outsourcing (BPO) business from
the Document Technology and Document Outsourcing business will not
be consummated within the anticipated time period or at all,
including as the result of regulatory, market or other factors; the
potential for disruption to our business in connection with the
proposed separation; the potential that BPO and Document Technology
and Document Outsourcing do not realize all of the expected
benefits of the separation, and other factors that are set forth in
the “Risk Factors” section, the “Legal Proceedings” section, the
“Management's Discussion and Analysis of Financial Condition and
Results of Operations” section and other sections of our Quarterly
Report on Form 10-Q for the quarter ended March 31, 2016 and our
2015 Annual Report on Form 10-K filed with the Securities and
Exchange Commission. Xerox assumes no obligation to update any
forward-looking statements as a result of new information or future
events or developments, except as required by law.
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Xerox® and Xerox and Design® are trademarks of Xerox in the
United States and/or other countries.
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version on businesswire.com: http://www.businesswire.com/news/home/20160520005845/en/
XeroxSean Collins, +1-310-497-9205Sean.Collins2@xerox.comorBill
McKee, +1-585-423-4436Bill.McKee@xerox.com
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