DGAP Post-admission Duties announcement: Diebold Nixdorf, Incorporated / Third country release according to Article 50
Para. 1, No. 2 of the WpHG [the German Securities Trading Act]
Diebold Nixdorf, Incorporated: Release according to Article 50 of the WpHG [the German Securities Trading Act] with the
objective of Europe-wide distribution
2021-07-29 / 15:30
Dissemination of a Post-admission Duties announcement according to Article 50 Para. 1, No. 2 WpHG transmitted by DGAP -
a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
Media contact: Investor contact:
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FOR IMMEDIATE RELEASE:
July 29, 2021
Diebold Nixdorf Reports 2021 Second Quarter Financial Results
NORTH CANTON, Ohio - Diebold Nixdorf (NYSE:DBD) today reported its second quarter 2021 financial results.
Key highlights . Strongest demand in four years drives product order growth of 40% YoY . Total company revenue growth of 6.0% YoY . Company adjusts 2021 profit and free cash flow outlook to reflect supply chain inflation
Gerrard Schmid, Diebold Nixdorf president and chief executive officer, said: "Product demand accelerated during the quarter, fueled by market share gains for next-generation DN Series EASY(TM) self-checkout solutions and DN Series(TM) ATMs. By delivering our strongest quarterly order book in four years, we are clearly leveraging our differentiated banking and retail solutions. Additionally, we are experiencing strong uptake for our AllConnect? Data Engine capabilities, which increase service levels and enable meaningful operating efficiencies. Total revenue increased during the quarter, led by very strong retail growth of 38%. Late in the quarter, we experienced some revenue delays from longer procurement and transport lead times due to developing global supply chain complexities. A tightening supply chain also drove higher freight costs.
"Looking to the second half of the year, we expect solid demand for our solutions and are reiterating our full-year revenue forecast of 3% to 5% growth. At the same time, higher-than-expected inflation for components and logistics lead us to adjust our 2021 outlook for profit and free cash flow. We will continue to work closely with our suppliers to manage global supply chain volatility, execute our cost reduction initiatives and leverage the operating rigor we have developed during our DN Now transformation. We remain committed to delivering strong free cash flow growth as we conclude our DN Now restructuring payments."
Business updates . Expanding market share in Banking, led by DN Series ATMs
? Expanded our global business partnership with Santander Group to deliver customer innovation and operating
efficiencies with more than 3,000 new ATMs, including DN Series, and maintenance services in the U.S., Brazil,
Mexico, Spain, Argentina and Chile . Displaced a competitor's ATMs with more than 500 cash recyclers for a client in Brazil . Booked sizable wins in Egypt -- collectively valued at nearly USD27 million -- for DN Series, Vynamic(TM) software
licenses and maintenance services; one with National Bank of Egypt to support its expansion plans, and with Egypt
National Post to further its self-service capabilities . Supplanted a competitor with orders for over 700 DN Series ATMs at a top 10 and top 25 bank in the U.S. . Continuing growth for Retail self-checkout (SCO) solutions
? Signed a contract to replace a competitor's SCO solution at a multinational clothing and home products retailer
located in the U.K.
? Won an initial award at a major European discount apparel and household product retailer to furnish more than
400 SCO devices and maintenance services at locations in Spain and Austria . Securing additional, recurring revenue agreements for Managed Services and Software solutions
? Booked a five-year Managed Services contract with a large European bank valued at USD24 million
? Secured an agreement with A.S. Watson, the world's largest international health and beauty retailer, to deliver
new managed mobility software and services for more than 10,000 inventory devices in stores across Asia and
? Signed an agreement valued at nearly USD4 million with a large multinational retailer in Sweden to automate
checkout and reduce fraud at the SCO counter using artificial intelligence and image recognition
Full-year 2021 Outlook1
Previous outlook Current outlook
Total Revenue USD4.0B - USD4.1B USD4.0B - USD4.1B
Adjusted EBITDA (non-GAAP measure)2 USD480M - USD500M USD455M - USD475M
Free cash flow (non-GAAP measure)3 USD140M - USD170M USD120M - USD140M
Return on Invested Capital (non-GAAP measure)2,4 18% 17%
Summary Financial Results
Three Months Ended
June 30, 2021 June 30, 2020 % Change
(USD in millions, except per share data) GAAP Non-GAAP5 GAAP Non-GAAP5 GAAP Non-GAAP
Total net sales USD 943.5 USD 943.5 USD 890.5 USD 890.5 6.0 6.0
Gross profit USD 251.9 USD 261.8 USD 247.6 USD 264.0 1.7 (0.8)
Operating profit USD 12.9 USD 63.1 USD 20.5 USD 98.2 (37.1) (35.7)
Operating margin 1.4 % 6.7 % 2.3 % 11.0 % (90) bps (430) bps
Net income (loss) USD (30.3) USD 8.0 USD (23.1) USD 31.3 (31.2) (74.4)
Diluted earnings/(loss) per share6 USD (0.39) USD 0.10 USD (0.31) USD 0.38 (25.8) (73.7)
Adjusted EBITDA USD 86.3 USD 122.4 (29.5) . Total net sales increased 6.0%, or USD53.0 million YoY, due to Retail growth across all lines of business. . Non-GAAP operating profit declined 35.7% to USD63.1 million and non-GAAP operating profit margin decreased 430 bps to
6.7% due primarily to expense benefits from the prior year which did not recur, as well as revenue delays, higher
freight costs and investments to support the company's growth initiatives. . GAAP diluted loss per share during the quarter was USD(0.39), primarily reflecting lower operating profit.
Q2 2021 Q2 2020 YTD 6/30/ YTD 6/30/ TTM 6/30/
2021 2020 2021
Net cash (used) provided by operating activities (GAAP USD (78.5) USD (89.7) USD (143.7) USD (167.9) USD 42.2
Excluding the impact of changes in cash of assets held 8.2 5.0 7.6 27.6 4.6
for sale and the use of cash for M&A activities
Excluding the use of cash for the settlement of foreign 0.1 15.8 4.5 18.8 18.0
exchange derivative instruments
Excluding the termination of certain interest rate - - - - 10.3
swaps due to debt refinancing
Proceeds from the surrender of company-owned life - 7.7 - 7.7 8.4
Capital expenditures (3.7) (3.4) (6.2) (8.8) (24.9)
Capitalized software development (5.3) (3.8) (11.2) (8.9) (19.5)
Free cash flow/(use) (non-GAAP measure)3 USD (79.2) USD (68.4) USD (149.0) USD (131.5) USD 39.1 . Free cash use of USD79.2 million in the quarter was unfavorable by USD10.8 million versus the prior year reflecting the
cash used for inventory purchases as a result of longer lead times and strong order entry.
1 - The company's 2021 outlook includes the impact of deconsolidating the company's joint venture in China and the divestitures of Diebold Nixdorf Portavis GmbH, the company's Brazil online fraud protection business and its electronic security business in Asia.
2 - With respect to the company's adjusted EBITDA and Return on Invested Capital (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.
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