NORTH CANTON, Ohio,
Feb. 28, 2017 /PRNewswire/ -- In
advance of its Investor Day meeting today in New York, Diebold
Nixdorf, Incorporated (NYSE: DBD) is reaffirming its
full-year 2017 financial guidance. The company is also
introducing its multi-year business integration and cost-savings
program, named DN2020, and providing key financial targets for
2020.
For 2017, the company continues to expect full-year revenue to
be in the range of $5.0 billion to $5.1
billion, net loss in the range of $55
million to $30 million, and adjusted EBITDA in the range of
$440 million to $470 million. The
company also expects earnings per share of approximately
$(0.70) to $(0.40), or $1.40 to $1.70 on a non-GAAP basis, and a
non-GAAP effective tax rate1 of approximately 30 percent
for the full year. Restructuring charges and non-routine
expense include M&A and legal fees.
In addition, Diebold Nixdorf
today is introducing its multi-year business integration roadmap,
DN2020. The plan will align the company's employees around
executing common strategies and goals linked to six key areas over
the next three years:
- Further developing the company's strategy around Connected
Commerce
- Achieving financial excellence;
- Continued success in integration;
- Implementing operational excellence around services,
manufacturing and supply chain;
- Building a performance-based culture while continuing to
attract and retain top talent;
- And establishing sales excellence
Associated with this program for 2020, the company is targeting
a net cost improvement target of $200
million. Also for 2020, Diebold Nixdorf is targeting revenue of
approximately $5.5 billion, operating
profit of more than 9 percent, adjusted EBITDA of approximately
$650 million and non-GAAP earnings
per share of approximately $3.50
2.
As previously announced, Diebold
Nixdorf is hosting its Investor Day meeting in New York today, beginning at 9:00 a.m. ET. The presentation will be
webcast live (audio only) and accessible on the company's website
at http://investors.dieboldnixdorf.com/. Investors are
encouraged to listen to the webcast as it will contain new
information about the company's integration progress, targets and
future operating plans.
The previous statements are based on current expectations.
These statements are forward-looking and actual results may differ
materially. These statements do not include the potential impact of
any future mergers, acquisitions, disposals, currency fluctuations
or other business combinations. Please refer to the tables
below for additional information.
|
2017
Outlook
|
Total
Revenue
|
$5.0B -
$5.1B
|
Net Income
(Loss)
|
$(55 million) -
$(30 million)
|
Adjusted
EBITDA
|
$440 million -
$470 million
|
2017 EPS
(GAAP)
|
$(0.70) -
$(0.40)
|
Restructuring
|
~ 0.45
|
Non-routine
(income)/expense
|
|
Acquisition,
divestiture and integration fees
|
~ 0.65
|
Wincor Nixdorf
purchase accounting adjustments
|
~ 1.90
|
Total non-routine
(income)/expense
|
~ 2.55
|
Tax impact of
restructuring and non-routine
(income)/expense items
|
~ (0.90)
|
Total Adjusted EPS
(non-GAAP measure)
|
$1.40 -
$1.70
|
1 - With respect to the company's non-GAAP tax rate
outlook for 2017, we are not providing the most directly comparable
GAAP financial measure or corresponding reconciliation because we
are unable to predict with reasonable certainty those items that
may affect such measures calculated and presented in accordance
with GAAP without unreasonable effort. Our expected non-GAAP tax
rate excludes primarily 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.
2 - Based on 30% non-GAAP effective tax rate.
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. With respect to
the company's financial targets for 2020, the inability to predict
the amount and timing of future items makes a detailed
reconciliation of these projections impracticable.
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 ultimate impact and
outcome of the review of the business combination with Diebold Nixdorf, AG by the Competition and
Markets Authority in the United
Kingdom; the implementation and ultimate impact of the
domination and profit and loss transfer agreement with Diebold Nixdorf, AG; 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.;
changes in political, economic or other factors such as 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; global economic conditions,
including any additional deterioration and disruption in the
financial 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;
competitive pressures, including pricing pressures and
technological developments; changes in the company's relationships
with customers, suppliers, distributors and/or partners in its
business ventures; the effect of legislative and regulatory actions
in the United States and
internationally and 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; the company's ability to maintain
effective internal controls; 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; unanticipated
litigation, claims or assessments, as well as the outcome/impact of
any current/pending litigation, claims or assessments, including
but not limited to the company's Brazil tax dispute; potential security
violations to the company's information technology systems; the
investment performance of our pension plan assets, which could
require us to increase our 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; and the company's ability to
achieve benefits from its cost-reduction initiatives and other
strategic changes, including its multi-year realignment plan and
other restructuring actions, as well as its business process
outsourcing initiative; 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, the
Registration Statement on Form S-4 filed in connection with the
business combination with Wincor Nixdorf (now known as Diebold Nixdorf, AG) 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 25,000 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