DIEBOLD NIXDORF, INCORPORATED 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 below 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. ^6 - Represents Diluted earnings/(loss) per share attributable to Diebold Nixdorf, Incorporated. Financial Results of Operations and Segments Revenue Summary by Reportable Segments - Unaudited Three months ended March 31, 2021 compared to March 31, 2020
Three Months Ended
March 31, 2021
(USD in millions) 2021 2020 % Change % Change in CC^7
Segments
Eurasia Banking
Services USD 161.5 USD 179.2 (9.9) (15.6)
Products 131.6 98.3 33.9 25.5
Software 34.7 33.0 5.2 (1.7)
Total Eurasia Banking 327.8 310.5 5.6 (1.1)
Americas Banking
Services 206.3 217.0 (4.9) (3.5)
Products 70.5 93.2 (24.4) (22.4)
Software 34.9 34.5 1.2 2.3
Total Americas Banking 311.7 344.7 (9.6) (8.0)
Retail
Services 114.6 107.6 6.5 (1.6)
Products 143.7 109.0 31.8 23.7
Software 46.1 38.9 18.5 9.8
Total Retail 304.4 255.5 19.1 10.8
Total net sales USD 943.9 USD 910.7 3.6 (0.1)
^7 - The company calculates constant currency by translating the prior-year period results at the current year exchange
rate. Three months ended March 31, 2021 compared to March 31, 2020
Three Months Ended
March 31, 2021 March 31, 2020 Change
(USD in millions) GAAP Non-GAAP^8 GAAP Non-GAAP^8 GAAP Non-GAAP
Services USD 482.4 USD 482.4 USD 503.8 USD 503.8 USD (21.4) USD (21.4)
Products 345.8 345.8 300.5 300.5 45.3 45.3
Software 115.7 115.7 106.4 106.4 9.3 9.3
Total net sales USD 943.9 USD 943.9 USD 910.7 USD 910.7 USD 33.2 USD 33.2
Services USD 142.3 USD 140.7 USD 117.9 USD 136.2 USD 24.4 USD 4.5
Products^9 74.6 75.1 64.2 71.2 10.4 3.9
Software^9 56.3 57.6 44.7 46.7 11.6 10.9
Total gross profit USD 273.2 USD 273.4 USD 226.8 USD 254.1 USD 46.4 USD 19.3
Services 29.5 % 29.2 % 23.4 % 27.0 % 610 bps 220 bps
Products 21.6 % 21.7 % 21.4 % 23.7 % 20 bps (200) bps
Software 48.7 % 49.8 % 42.0 % 43.9 % 670 bps 590 bps
Total gross margin 28.9 % 29.0 % 24.9 % 27.9 % 400 bps 110 bps
Total operating expenses USD 237.0 USD 194.4 USD 252.8 USD 191.1 USD (15.8) USD 3.3
Operating profit USD 36.2 USD 79.0 USD (26.0) USD 63.0 USD 62.2 USD 16.0
Operating margin 3.8 % 8.4 % (2.9) % 6.9 % 670 bps 150 bps
Adjusted EBITDA USD 100.3 USD 89.5 USD 10.8
Adjusted EBITDA margin 10.6 % 9.8 % 80 bps
^8 - See note 1 below for GAAP to Non-GAAP adjustments to gross profit; operating expenses, which include selling and
administrative expense and research, development and engineering expense and note 2 for adjusted EBITDA.
^9 - Certain costs of sales for the three months ended March 31, 2020 have been reclassified from software to
products. 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." Forward-Looking Statements This press release contains statements that are not historical information and 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. (MORE TO FOLLOW) Dow Jones Newswires
May 10, 2021 08:49 ET (12:49 GMT)
