Diebold Nixdorf, Incorporated
Diebold Nixdorf, Incorporated: Release according to Article 50 of the WpHG [the German Securities Trading Act] with the objective of Europe-wide distribution
Diebold Nixdorf, Incorporated
/ Third country release according to Article 50 Para. 1, No. 2 of the WpHG [the German Securities Trading Act]
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K/A CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of Earliest Event Reported): February 10, 2021 Diebold Nixdorf, Incorporated
(Exact name of registrant as specified in its charter) _________________________________________________
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:
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. ☐
Explanatory Note
On February 10, 2021, Diebold Nixdorf, Incorporated (the “Company”) furnished a Current Report on Form 8-K under Item 2.02 thereof (the “Original Report”). The Company is furnishing this Current Report on Form 8-K/A (the “Amended Report”) for the sole purpose of correcting a typographical error in the press release included as Exhibit 99.1 to the Original Report. The second main bullet of the Business Updates section of Exhibit 99.1 should read “Growing faster than the retail self-checkout (SCO) industry as shipments grew approximately 200% in Q4 and approximately 90% in 2020.”
Other than correcting this error, all other information included in the Original Report is unchanged. A corrected version of the press release is being furnished as Exhibit 99.1 hereto and is incorporated into this Amended Report by reference.
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.
Exhibit 99.1
FOR IMMEDIATE RELEASE: Feb. 10, 2021
Diebold Nixdorf Reports 2020 Fourth Quarter and Full-Year Financial Results Company delivers strong results that exceeded expectations for 2020, issues 2021 outlook for revenue, profitability and free cash flow growth, and establishes 2023 financial targets
NORTH CANTON, Ohio – Diebold Nixdorf (NYSE:DBD) today reported its fourth quarter and full-year 2020 financial results.
Key highlights *Expanded non-GAAP gross profit margins, non-GAAP operating profit margins and adjusted EBITDA margins for the fourth quarter and full-year 2020 *Generated Q4 net cash from operations of $214.7 million and free cash flow of $185.8 million *Delivered product order growth of 17% and product backlog growth of 23% versus the prior-year period Gerrard Schmid, Diebold Nixdorf president and chief executive officer, said: “We exited 2020 with momentum and delivered stronger-than-expected revenue, profitability and free cash flow as we continue to transform our business model to create value. Banking orders were stronger during the quarter as our customers seek out innovative and digitally enabled self-service solutions. We expanded our existing global partnership with Citibank for DN Series ATMs and development of our Vynamic software suite across 15 countries, helping standardize Citi’s customer experience while reducing complexity, cost and security risk. In addition, we substantially improved customer satisfaction across our global Banking business for the third consecutive year. These are tremendous accomplishments, resulting from the tireless efforts of our teams, increased customer centricity and our resilience during the global pandemic.
“Executing our DN Now initiatives has forged a stronger operating rigor for reducing costs and improving productivity. We took a major step toward our three-year, $500 million cost reduction program by realizing approximately $165 million of gross cost savings during 2020. Our leadership team is committed to deliver incremental cost reductions of $160 million and concluding restructuring and related payments in 2021.
“With the benefit of lower restructuring payments and higher profits, we are targeting significantly higher free cash flow of $140 million to $170 million in 2021, which represents approximately 30% of our expected adjusted EBITDA. Achieving this ratio will be an important stepping stone to our 2023 goal of converting approximately 50% of adjusted EBITDA to levered free cash flow. Our outlook for 2021 also includes a balance of top-line growth, margin expansion from continued cost reductions with additional investments in our people and solutions.”
Business updates *Experiencing growing demand for DN Series(TM) ATMs and cash recycling technology ◦Signed contracts to deliver 1,800 ATMs to one of the largest banks in Saudi Arabia, and 500 ATMs to a new, growth-oriented customer in Egypt. Both financial institutions also purchased Vynamic security, monitoring and marketing software ◦Secured two new contracts in the Netherlands valued at approximately $11 million ◦Won a deal for 1,000 cash recyclers and DN AllConnectSM Data Engine with a large private bank in Brazil *Growing faster than the retail self-checkout (SCO) industry as shipments grew approximately 200% in Q4 and approximately 90% in 2020 ◦Booked initial orders under a milestone agreement with the owner of the world’s 2nd-largest SCO fleet ◦Signed a $7 million contract with a large grocery store in Poland to deploy SCO and Vynamic iScan(TM) *Won a new, four-year ATM monitoring and services contract covering approximately 2,400 ATMs in North America *Secured new, multi-year contracts with BP to extend our managed service agreement for fuel and convenience stores in the United States, nine European nations, Australia and South Africa 1 of 13
Full-year 2021 Outlook1 and 2023 Financial Targets
Summary Financial Results ($ in millions, except per share data)
*Total net sales decreased 4.0%, or $45.7 million YoY, due to approximately $39 million of unplanned reductions including COVID-19 pandemic delays, $36 million from divestitures, a $14 million benefit from incremental business and $18 million of foreign currency tailwinds *Non-GAAP operating profit improved 4.2% YoY to $104.7 million and non-GAAP operating profit margin increased 80 basis points YoY to 9.5% as the result of gross margin expansion of ~50 basis points and the realization of savings from its DN Now initiatives
*Net cash provided by operating activities of $214.7 million in the fourth quarter increased $86.3 million YoY primarily due to improved collections *Free cash flow of $185.8 million for the fourth quarter increased $79.5 million YoY primarily due to improved collections and lower interest payments
1 – The company’s 2021 outlook includes the impact of divesting Diebold Nixdorf Portavis GmbH, deconsolidating the company’s joint venture in China, and the divestiture of the company’s Brazil online fraud protection business, all of which were finalized in 2020. 2 – With respect to the company’s adjusted EBITDA and ROIC outlook for 2021, it is not providing a reconciliation to the most directly comparable GAAP financial measures 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, operating profit and 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. 3 – Free cash flow is a non-GAAP financial measure defined as net cash provided by operating activities from continuing operations less capital expenditures, less cash used for capitalized software development, and excluding the impact of changes in cash of assets held for sale and the use of cash for M&A activities, and excluding the use of cash for the settlement of foreign exchange derivative instruments, and excluding the use of cash for the termination of certain interest rate swaps due to the debt refinancing in Q3 2020, and including the proceeds from the surrender of company-owned life insurance policies. With respect to the company’s non-GAAP free cash flow outlook for 2021, 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 measure calculated and presented in accordance with GAAP without unreasonable effort. This measure primarily excludes the future impact of changes in cash of assets held for sale, cash used for M&A activities and the settlement of foreign exchange derivative instruments. These reconciling items are uncertain, depend on various factors and could significantly impact, either individually or in the aggregate, net cash provided (used) by operating activities 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. 4 – ROIC is defined as tax-effected adjusted operating profit (NOPAT), utilizing an estimated 30% effective tax rate, divided by average invested capital for the period. 5 – See note 1 for GAAP to Non-GAAP adjustments to gross profit; operating expenses, which include selling and administrative expense and research, development and engineering expense; note 2 for adjusted EBITDA; and note 3 for adjusted net income/loss and adjusted EPS. 2 of 13
Financial Results of Operations and Segments ($ in millions) Revenue Summary by Reportable Segments – Unaudited Three months ended December 31, 2020 compared to December 31, 2019
Year ended December 31, 2020 compared to December 31, 2019
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GAAP and Non-GAAP Profit/Loss Summary Three months ended December 31, 2020 compared to December 31, 2019
Year ended December 31, 2020 compared to December 31, 2019
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Overview Presentation and Conference Call More information on Diebold Nixdorf’s quarterly earnings is available on its Investor Relations website. Gerrard Schmid, president and chief executive officer, and Jeffrey Rutherford, chief financial officer, will discuss the company’s financial performance during a conference call today at 8:30 a.m. (ET). Both the presentation and access to the call / webcast are available at http://www.dieboldnixdorf.com/earnings. The replay of the webcast can be accessed on the web site for up to three months after the call.
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 22,000 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 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 debt, EBITDA, adjusted EBITDA and constant currency results. The company calculates constant currency by translating the prior year results at current year exchange rates. 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 our credit agreement and the issuance of our secured and unsecured senior notes. We consider free cash flow (use) to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that, after the purchase of property and equipment and changes in cash of assets held for sale and the use of cash for M&A activities, and excluding the use of cash for the settlement of foreign exchange derivative instruments, can be used for debt servicing, strategic opportunities, including investing in the business, making strategic acquisitions, strengthening the balance sheet and paying dividends. For more information, please refer to the section, “Notes for Non-GAAP Measures.” 5 of 13
Forward-Looking Statements This press release contains statements that are not historical information are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding potential impact of the ongoing coronavirus (COVID-19) pandemic, anticipated revenue, future liquidity and financial position.
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 ongoing COVID-19 pandemic; *the outcome of the appraisal proceedings initiated in connection with the implementation of the DPLTA with the former Diebold Nixdorf AG and the merger/squeeze-out; *the Company’s ability to continue 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; *the success of the Company’s new products, including its DN Series line; *the Company’s ability to comply with the covenants contained in the agreements governing its debt; *the ultimate outcome of the Company’s pricing, operating and tax strategies applied to former Diebold Nixdorf AG and the ultimate ability to realize cost reductions and synergies; *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; *the Company’s reliance on suppliers and any potential disruption to the Company’s global supply chain; *the impact of market and economic conditions, 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; *interest rate and foreign currency exchange rate fluctuations, including the impact of possible currency devaluations in countries experiencing high inflation rates; *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 U.S. 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 other acquisitions into its operations; *the Company’s success in divesting, reorganizing or exiting non-core and/or non-accretive businesses; *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; *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; and *the amount and timing of repurchases of the Company’s common shares, if any.
Except to the extent required by applicable law or regulation, the Company undertakes no obligation to update these forward-looking statements to reflect future events or circumstances or to reflect the occurrence of unanticipated events.
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DIEBOLD NIXDORF, INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS – UNAUDITED (IN MILLIONS, EXCEPT EARNINGS PER SHARE)
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DIEBOLD NIXDORF, INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS – UNAUDITED (IN MILLIONS)
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DIEBOLD NIXDORF, INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS – UNAUDITED (IN MILLIONS)
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Notes for Non-GAAP Measures 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, EBITDA and Adjusted EBITDA, adjusted earnings per share, free cash flow/(use) and net debt.
1.Profit/loss summary (Dollars in millions):
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Restructuring and DN Now transformation expenses relate to the business transformation plan focused on driving connected commerce, finance, sales and operational excellence, business integration and global workforce alignment, including GAAP restructuring costs, as well as the third-party costs of the DN Now transformation program and accelerated depreciation. The Wincor Nixdorf intangible asset amortization relates to the intangible assets established in purchase accounting as management believes that this is useful information to investors by highlighting the impact on the company’s operations. An impairment was recorded by the company primarily related to non-core businesses transferred to assets held for sale. Legal and deal expense primarily relates to third-party expenses and fees paid by the company for M&A activity, including the cost of acquisition and real estate tax in connection with the squeeze-out proceedings and related expenses in 2019. The Germany costs relate to a previously divested business. The divestitures and fixed asset sales relates to the divestitures and liquidation of non-core businesses in both 2020 and 2019. The loss making contracts represent charges incurred for expected losses through the contractual service period. The inventory charge/gain relates to the company’s re-assessment of primarily finished goods and service parts due to contract cancellations, and excess and obsolete inventory as a result of streamlining the company’s product portfolio and optimizing its manufacturing footprint. Other includes incremental payments to essential service technicians for their contributions during the COVID-19 pandemic and certain IT projects, as well as certain non-cash balance sheet adjustments in 2019. These impacts were partially offset by subsidies received related to the COVID-19 pandemic.
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2.Reconciliation of GAAP net income (loss) to EBITDA and Adjusted EBITDA (Non-GAAP measures) (Dollars in millions):
The company defines EBITDA as net loss excluding income tax benefit/expense, net interest expense, and depreciation and amortization expense. Consistent with the company’s credit agreement, adjusted EBITDA is EBITDA excluding the effects of the following items: share-based compensation, foreign exchange gain/loss net, miscellaneous net, equity in earnings of unconsolidated subsidiaries, restructuring and DN Now transformation expenses and non-routine expenses net, as outlined in Note 1 of the non-GAAP measures. To remain comparable to the U.S. GAAP depreciation and amortization measures, the company excluded the amortization of Wincor Nixdorf purchase accounting intangible assets from non-routine expenses, net in the adjusted EBITDA reconciliation of $19.7 and $21.5 for the three months ended December 31, 2020 and 2019, respectively, and $82.9 and $93.3 for the twelve months ended December 31, 2020 and 2019, respectively. Additionally, accelerated depreciation expense of $2.8 and $1.9 for the three months ended December 31, 2020 and 2019, respectively, and $14.8 and $1.9 for the twelve months ended December 31, 2020 and 2019, respectively, was excluded from Restructuring and DN Now transformation expenses. Deferred financing fees amortization is included in interest expense and GAAP depreciation and amortization; as a result, the company excluded from the depreciation and amortization caption $4.3 and $5.5 for the three months ended December 31, 2020 and 2019, respectively, and $45.4 and $21.8 for the twelve months ended December 31, 2020 and 2019. Miscellaneous, net primarily consists of a gain recognized on the surrender of company-owned life insurance contracts. These are non-GAAP financial measures used by management to enhance the understanding of our operating results. EBITDA and adjusted EBITDA are key measures we use to evaluate our operational performance. 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. However, EBITDA and adjusted EBITDA should not be considered as alternatives to net income as a measure of operating results or as alternatives to cash flows from operating activities as a measure of liquidity in accordance with GAAP.
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3.Reconciliation of GAAP net loss and net loss attributable to Diebold Nixdorf, Incorporated to non-GAAP net income (loss) and net income (loss) attributable to Diebold Nixdorf, Incorporated, and diluted GAAP EPS to non-GAAP EPS (Dollars in millions, except per share data):
Refer to note 1 for additional information on non-routine (income)/expense for the periods presented.
4.Net debt is calculated as follows (Dollars in millions):
We believe that given the significant cash, cash equivalents, restricted cash and short-term investments on its balance sheet that net cash against outstanding debt is a meaningful measure.
DN-F ###
PR_21-4007 13 of 13
11.02.2021 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. |
Language: | English |
Company: | Diebold Nixdorf, Incorporated |
5995 Mayfair Road | |
44720 North Canton, OH | |
United States | |
Internet: | www.dieboldnixdorf.com |
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