DIEBOLD NIXDORF, Inc - FORM 8-K - EX-99.1 - August 6, 2014

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pressrelease
 
 
 
Media contact:    
 
Investor contact:
Mike Jacobsen, APR
 
Jamie Finefrock
+1 330 490 3796
 
+1 330 490 6319
michael.jacobsen@diebold.com    
 
jamie.finefrock@diebold.com

FOR IMMEDIATE RELEASE:    
 
Aug. 6, 2014
 
DIEBOLD REPORTS 2014 SECOND QUARTER FINANCIAL RESULTS
Earnings overview presentation available at http://www.diebold.com/earnings

•
Q2 GAAP EPS attributable to Diebold was $0.64; non-GAAP* EPS was $0.47
•
Total revenue for Q2 2014 increased 3.7% compared with the prior-year period, or 5.5% on constant currency
•
Free cash flow (use)* for Q2 2014 was $(71.3) million compared with $(40.5) million in Q2 2013
•
Net debt* at June 30, 2014 was $177.8 million, a $127.0 million increase from December 31, 2013
•
Company reaffirms 2014 non-GAAP* EPS guidance of $1.65-$1.85

NORTH CANTON, Ohio - Diebold, Incorporated (NYSE: DBD) today reported second quarter 2014 net income attributable to Diebold of $41.6 million, or $0.64 per share. This compares with second quarter 2013 net loss of $(105.0) million, or $(1.65) per share. Second quarter 2014 results include a gain of $12.7 million net of tax, or $0.20 per share, related to the company's divestiture of its Diebold Eras check and payment processing subsidiary. Second quarter 2014 revenue was $733.5 million, up 3.7% from the second quarter 2013, or 5.5% on a constant currency basis.

Non-GAAP* income attributable to Diebold in the second quarter 2014 was $0.47 per share compared with a net loss of $(0.35) per share in the second quarter 2013, which included a valuation allowance on Brazil deferred tax assets of $(0.61) per share.

Management Commentary
“We delivered strong performance during the second quarter, with solid revenue growth in line with our expectations,” said Andy W. Mattes, Diebold president and chief executive officer. “In our services business, the positive performance trend continued as gross margin improved over the prior-year period. In addition, net cost savings were higher than expected, as the rate of our reinvestments in the business will be weighted more toward the second half of 2014. This resulted in higher-than-anticipated earnings during the quarter. Finally, I’m encouraged with our order book, as we’re seeing positive growth in virtually every region across the globe.”

Mattes continued, “We’re pleased with our performance in the first half of the year and will accelerate the pace of our investments in innovation, IT infrastructure, back-office transformation, service, sales and marketing, in the second half of 2014. In addition, we've seen upward pressure on our non-GAAP effective tax rate year to date. Taking all these items into consideration, we are reaffirming our full-year revenue and earnings guidance.

“We feel good about the progress we’re making in our Diebold 2.0 transformation,” Mattes concluded. “While we remain in the ‘crawl’ phase of our ‘crawl, walk, run’ journey, we are meeting our near-term objectives and remain confident in our long-term outlook.”
 
-more-

*See accompanying notes for non-GAAP measures.





PAGE 2/ DIEBOLD REPORTS 2014 SECOND QUARTER FINANCIAL RESULTS

Results of Operations
Gross Margin
Total gross margin for the second quarter 2014 was 25.5%, an increase of 3.2 percentage points from the second quarter of 2013, with service margin reflecting a 7.5 percentage point improvement and product margin decreasing 2.2 percentage points. The service margin improvement was primarily attributable to the company's global service transformation efforts. The product gross margin decrease was primarily the result of geographic mix.

Operating Expenses
Total operating expenses were $129.6 million, or 17.7% of revenue, for the second quarter 2014, compared with $181.0 million, or 25.6% of revenue, in the second quarter of 2013. Operating expenses in the second quarter 2014 included a net benefit of $11.6 million in restructuring and net non-routine income, mainly from a gain on sale of $13.7 million related to the company's divestiture of its Diebold Eras subsidiary. Operating expenses in the second quarter 2013 included $49.2 million in restructuring and non-routine charges, comprised primarily of $28.0 million in additional losses related to the settlement of the Foreign Corrupt Practices Act (FCPA) investigation and $17.5 million for the settlement of the securities class action.

Operating Profit / (Loss)
Operating profit of $57.2 million, or 7.8% of revenue, was realized in the second quarter 2014, compared with an operating loss of $(23.6) million, or (3.3)% of revenue, in the second quarter 2013. Non-GAAP operating profit* in the second quarter 2014 was $45.8 million, or 6.2% of revenue, compared with $30.1 million, or 4.3% of revenue, in the second quarter 2013.

Income Tax
The effective tax rate on continuing operations for the three months ended June 30, 2014 was 29.5%, compared with (307.6)% for the same period of 2013. The second quarter 2014 tax rate benefited from a $2.4 million release of a valuation allowance against excess capital losses due to the divestiture of its Diebold Eras subsidiary. The second quarter 2013 tax rate was primarily the result of deferred tax expense of $42.8 million related to the repatriation of undistributed foreign earnings and the establishment of a valuation allowance of $39.1 million on certain Brazil deferred tax assets.

Net Income / (Loss) Attributable to Diebold
Net income attributable to Diebold was $41.6 million, or 5.7% of revenue, in the second quarter 2014, compared with net loss of $(105.0) million, or (14.9)% of revenue, in the second quarter 2013. Included in the second quarter 2014 net of tax results was a gain of $12.7 million related to the company's divestiture of its Diebold Eras subsidiary. Included in the second quarter 2013 net of tax results were deferred tax expense of $42.8 million related to the repatriation of undistributed foreign earnings, $39.1 million for the establishment of a valuation allowance on certain Brazil deferred tax assets, $23.2 million in additional losses related to the settlement of the FCPA investigation and $11.0 million for the settlement of the securities class action.

Balance Sheet, Cash Flow and Liquidity
The company's net debt* was $177.8 million at June 30, 2014, an increase in net debt of $127.0 million from the net debt* position at December 31, 2013. The company's net debt to capital ratio was 15% at June 30, 2014, 5% at December 31, 2013 and 12% at June 30, 2013.

Free cash flow (use)* in the second quarter 2014 was $(71.3) million, compared with $(40.5) million in the second quarter 2013.

-more-









*See accompanying notes for non-GAAP measures.




PAGE 3/ DIEBOLD REPORTS 2014 SECOND QUARTER FINANCIAL RESULTS

Full-year 2014 Outlook
The following 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 significant currency fluctuations, future mergers, acquisitions, disposals or other business combinations, the Brazil tax assessment or related indirect tax reserves.

The company is maintaining its outlook for full-year 2014 revenue to grow in the mid-single digits and reaffirms EPS in the range of $1.65 to $1.85 on a non-GAAP* basis. Diebold is focused on executing its transformation initiatives and increasing investment levels in the areas of development, sales and marketing, information technology and back-end office support.
 
Previous Guidance
Current Guidance
Total Revenue
Up mid-single digits

Up mid-single digits
2014 EPS (GAAP)
$1.30 - $1.55

$1.55 - $1.80
  Restructuring charges & net non-routine income/expense
0.35 - 0.30

0.10 - 0.05
Total EPS (non-GAAP* measure)
$1.65 - $1.85

$1.65 - $1.85

Overview Presentation and Conference Call
More information on Diebold's quarterly earnings, including additional financial analysis and an earnings overview presentation, is available on Diebold's Investor Relations website. Andy W. Mattes, president and chief executive officer, and Christopher A. Chapman, senior vice president and 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 are available at http://investors.diebold.com. The replay can also be accessed on the site for up to three months after the call.

Revenue Summary by Service, Product and Segment
Revenue Summary by Service and Product Solutions
 
 
 
 
 
 
 
 
 
 
(In Thousands)
 
 
 
 
 
 
 
 
 
 
 
 
Q2 2014
 
Q2 2013
 
% Change
 
YTD 6/30/2014
 
YTD 6/30/2013
 
% Change
Financial Self-Service
 
 
 
 
 
 
 
 
 
 
 
Services
$
306,182

 
$
303,171

 
1.0
 %
 
$
591,137

 
$
583,454

 
1.3
 %
Products
236,691

 
241,825

 
(2.1
)%
 
418,268

 
447,943

 
(6.6
)%
      Total Financial Self-Service
542,873

 
544,996

 
(0.4
)%
 
1,009,405

 
1,031,397

 
(2.1
)%
Security Solutions
 
 
 
 
 
 
 
 
 
 
 
Services
103,637

 
110,054

 
(5.8
)%
 
202,061

 
211,989

 
(4.7
)%
Products
49,455

 
39,551

 
25.0
 %
 
93,406

 
74,868

 
24.8
 %
      Total Security
153,092

 
149,605

 
2.3
 %
 
295,467

 
286,857

 
3.0
 %
Total Financial Self-Service & Security
695,965

 
694,601

 
0.2
 %
 
1,304,872

 
1,318,254

 
(1.0
)%
Brazil Other
37,492

 
12,512

 
199.6
 %
 
116,878

 
22,370

 
422.5
 %
Total Revenue
$
733,457

 
$
707,113

 
3.7
 %
 
$
1,421,750

 
$
1,340,624

 
6.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
Revenue Summary by Segment
 
 
 
 
 
 
 
 
 
 
 
Q2 2014
 
Q2 2013
 
% Change
 
YTD 6/30/2014
 
YTD 6/30/2013
 
% Change
North America
$
345,978

 
$
368,386

 
(6.1
)%
 
$
663,473

 
$
699,241

 
(5.1
)%
Asia Pacific
119,355

 
118,375

 
0.8
 %
 
226,491

 
230,558

 
(1.8
)%
Europe, Middle East, Africa
118,341

 
84,549

 
40.0
 %
 
202,455

 
150,617

 
34.4
 %
Latin America
43,490

 
58,591

 
(25.8
)%
 
92,440

 
104,283

 
(11.4
)%
Brazil
106,293

 
77,212

 
37.7
 %
 
236,891

 
155,925

 
51.9
 %
Total Customer Revenue
$
733,457

 
$
707,113

 
3.7
 %
 
$
1,421,750

 
$
1,340,624

 
6.1
 %

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*See accompanying notes for non-GAAP measures.




PAGE 4/ DIEBOLD REPORTS 2014 SECOND QUARTER FINANCIAL RESULTS

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, adjusted earnings per share, free cash flow/(use) and net investment/(debt). 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.

1.
Profit/loss summary - 2nd quarter comparison (Dollars in millions)
 
 
Q2 2014
 
Q2 2013
 
 
Rev
Gross Profit
% of Sales
 OPEX
OP
% of Sales
 
Rev
Gross Profit
% of Sales
 OPEX
OP
% of Sales
GAAP Results
 
$733.5
$186.8
25.5
%
$129.6
$57.2
7.8
%
 
$707.1
$157.4
22.3
%
$181.0
$(23.6)
(3.3
)%
Restructuring
 
—

0.2

 
(0.5
)
0.7

 
 
 
4.3

 
(3.2
)
7.5

 
Non-routine
income/expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FCPA settlement
 
—

—

 
—

—

 
 
—

—

 
(28.0
)
28.0

 
Securities class action settlement
 
—

—

 
—

—

 
 
—

—

 
(17.5
)
17.5

 
Legal, indemnification and professional fees
 
—

—

 
(1.6
)
1.6

 
 
—

—

 
—

—

 
Gain on sale of Eras
 
—

—

 
13.7

(13.7
)
 
 
—

—

 
—

—

 
Other
 
—

—

 
—

—

 
 
—

0.3

 
(0.4
)
0.7

 
Total non-routine
income/expense
 
—

—

 
12.1

(12.1
)
 
 
—

0.3

 
(45.9
)
46.2

 
Non-GAAP Results
 
$733.5
$187.0
25.5
%
$141.3
$45.8
6.2
%
 
$707.1
$162.0
22.9
%
$131.9
$30.1
4.3
 %
 
 
YTD 6/30/2014
 
YTD 6/30/2013
 
 
Rev
Gross Profit
% of Sales
 OPEX
OP
% of Sales
 
Rev
Gross Profit
% of Sales
 OPEX
OP
% of Sales
GAAP Results
 
$1,421.8
$350.9
24.7
%
$270.4
$80.5
5.7
%
 
$1,340.6
$287.4
21.4
%
$325.0
$(37.5)
(2.8
)%
Restructuring
 
 
0.9

 
(4.9
)
5.8

 
 
 
7.1

 
(10.0
)
17.1

 
Non-routine
income/expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FCPA settlement
 
—

—

 
—

—

 
 
—

—

 
(28.0
)
28.0

 
Securities class action settlement
 
—

—

 
—

—

 
 
—

—

 
(17.5
)
17.5

 
Legal, indemnification and professional fees
 
—

—

 
(2.6
)
2.6

 
 
—

—

 
—

—

 
Gain on sale of Eras
 
—

—

 
13.7

(13.7
)
 
 
—

—

 
—

—

 
Executive severance
 
—

—

 
—

—

 
 
—

—

 
(9.3
)
9.3

 
Other
 
—

—

 
—

—

 
 
—

0.6

 
1.0

(0.4
)
 
Total non-routine
income/expense
 
—

—

 
11.1

(11.1
)
 
 
—

0.6

 
(53.8
)
54.4

 
Non-GAAP Results
 
$1,421.8
$351.8
24.7
%
$276.6
$75.2
5.3
%
 
$1,340.6
$295.1
22.0
%
$261.2
$33.9
2.5
 %

Restructuring expenses relate to the multi-year realignment focused on globalizing the company's service organization and creating a unified center-led global organization for research and development, as well as transforming the company's general and administrative cost structure. Legal, indemnification and professional fees include amounts paid by the company in connection with ongoing obligations related to prior regulatory settlements.


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PAGE 5/ DIEBOLD REPORTS 2014 SECOND QUARTER FINANCIAL RESULTS

2. Reconciliation of diluted GAAP EPS to non-GAAP EPS from continuing operations measures:
 
Q2 2014
 
Q2 2013
 
YTD 6/30/2014
 
YTD 6/30/2013
Total EPS from continuing operations
(GAAP measure)
$
0.64

 
$
(1.65
)
 
$
0.79

 
$
(1.87
)
Restructuring
0.01

 
0.08

 
0.06

 
0.17

Non-routine (income)/expense:
 
 
 
 
 
 
 
FCPA settlement
—

 
0.36

 
—

 
0.36

Securities class action settlement
—

 
0.17

 
—

 
0.17

Legal, indemnification and professional fees
0.02

 
—

 
0.03

 
—

Gain on sale of Eras
(0.20
)
 
—

 
(0.20
)
 
—

Executive severance
—

 
—

 
—

 
0.09

Other
—

 
0.02

 
—

 
0.01

Total non-routine (income)/expense
(0.18
)
 
0.55

 
(0.17
)
 
0.63

Tax expense on foreign cash repatriation
—

 
0.67

 
0.03

 
0.67

Total adjusted EPS (non-GAAP measure)
$
0.47

 
$
(0.35
)
 
$
0.71

 
$
(0.40
)
Valuation allowance on Brazil deferred tax assets
—

 
0.61

 
—

 
0.62

Total adjusted EPS (non-GAAP measure) excluding valuation allowance on Brazil deferred tax assets
$
0.47

 
$
0.26

 
$
0.71

 
$
0.22


Restructuring expenses relate to the multi-year realignment focused on globalizing the company's service organization and creating a unified center-led global organization for research and development, as well as transforming the company's general and administrative cost structure. Legal, indemnification and professional fees include amounts paid by the company in connection with ongoing obligations related to prior regulatory settlements.
    
3.
Free cash flow/(use) is calculated as follows:        
 
Q2 2014
 
Q2 2013
 
YTD 6/30/2014
 
YTD 6/30/2013
Net cash provided by/(used in) operating activities
(GAAP measure)
$
(60,219
)
 
$
(31,695
)
 
$
(91,775
)
 
$
(63,425
)
Capital expenditures
(11,034
)
 
(8,828
)
 
(18,350
)
 
(18,156
)
Free cash flow/(use) (non-GAAP measure)
$
(71,253
)
 
$
(40,523
)
 
$
(110,125
)
 
$
(81,581
)

We define free cash flow/(use) as net cash provided by operating activities minus capital expenditures. We consider free cash flow 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, can be used for strategic opportunities, including investing in the business, making strategic acquisitions, strengthening the balance sheet, and paying dividends.

4.
Net investment/(debt) is calculated as follows:
 
6/30/2014
 
12/31/2013
 
6/30/2013
Cash, cash equivalents and short-term investments
(GAAP measure)
$
375,833

 
$
473,697

 
$
526,008

Debt instruments
(553,615
)
 
(524,459
)
 
(682,366
)
Net investment/(debt)
(non-GAAP measure)
$
(177,782
)
 
$
(50,762
)
 
$
(156,358
)

The company's management believes that given the significant cash, cash equivalents and other investments on its balance sheet that net cash against outstanding debt is a meaningful net debt calculation. Between 97% to 99% of the company's cash and cash equivalents and short-term investments reside in international tax jurisdictions for all periods presented.

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PAGE 6/ DIEBOLD REPORTS 2014 SECOND QUARTER FINANCIAL RESULTS

Forward-Looking Statements

In this press release, statements that are not reported financial results or other historical information are “forward-looking statements”. Forward-looking statements give current expectations or forecasts of future events and are not guarantees of future performance. These forward-looking statements relate to, among other things, the company's future operating performance, the company's share of new and existing markets, the company's short- and long-term revenue and earnings growth rates, and the company's implementation of cost-reduction initiatives and measures to improve pricing, including the optimization of the company's manufacturing capacity.

The use of the words “will,” “believes,” “anticipates,” “expects,” “intends” and similar expressions is intended to identify forward-looking statements that have been made and may in the future be made by or on behalf of the company. Although the company believes that these forward-looking statements are based upon reasonable assumptions regarding, among other things, the economy, its knowledge of its business, and on key performance indicators that impact the company, these forward-looking statements involve risks, uncertainties and other factors that may cause actual results to differ materially from those expressed in or implied by the forward-looking statements. The company is not obligated to update forward-looking statements, whether as a result of new information, future events or otherwise.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Some of the risks, uncertainties and other factors that could cause actual results to differ materially from those expressed in or implied by the forward-looking statements include, but are not limited to:

•
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;
•
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, including Brazil, where a significant portion of the company's revenue is derived;
•
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;
•
acceptance of the company's product and technology introductions in the marketplace;
•
the finalization of the company's financial statements for the periods discussed in this release;
•
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 with respect to the company's Brazilian tax dispute;
•
variations in consumer demand for financial self-service technologies, products and services;
•
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;
•
the outcome of the company's assessment of its indirect tax compliance in Brazil; 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 with Accenture.

About Diebold
Diebold, Incorporated (NYSE: DBD) is a global leader in providing innovative self-service technology, security systems and related services. Diebold has approximately 16,000 employees worldwide and is headquartered near Canton, Ohio, USA. Visit Diebold at www.diebold.com or on Twitter: http://twitter.com/DieboldInc.

###




DIEBOLD, INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
[IN THOUSANDS EXCEPT EARNINGS (LOSS) PER SHARE]
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
 
 
2014
 
2013
 
2014
 
2013
Net Sales
 
 
 
 
 
 
 
 
Services
 
$
409,819

 
$
413,216

 
$
793,198

 
$
795,434

Products
 
323,638

 
293,897

 
628,552

 
545,190

Total
 
733,457

 
707,113

 
1,421,750

 
1,340,624

Cost of sales
 
 
 
 
 
 
 
 
Services
 
283,605

 
317,135

 
558,830

 
614,046

Products
 
263,057

 
232,562

 
511,992

 
439,148

Total
 
546,662

 
549,697

 
1,070,822

 
1,053,194

Gross Profit
 
186,795

 
157,416

 
350,928

 
287,430

Percent of net sales
 
25.5
%
 
22.3
 %
 
24.7
%
 
21.4
 %
Operating expenses
 
 
 
 
 
 
 
 
Selling and administrative expense
 
121,006

 
157,205

 
241,298

 
282,718

Research, development and engineering expense
 
21,637

 
23,417

 
41,707

 
44,447

Impairment of assets
 
—

 
642

 
—

 
642

Gain on sale of assets, net
 
(13,050
)
 
(226
)
 
(12,558
)
 
(2,839
)
Total
 
129,593

 
181,038

 
270,447

 
324,968

Percent of net sales
 
17.7
%
 
25.6
 %
 
19.0
%
 
24.2
 %
Operating profit (loss)
 
57,202

 
(23,622
)
 
80,481

 
(37,538
)
Percent of net sales
 
7.8
%
 
(3.3
)%
 
5.7
%
 
(2.8
)%
Other income (expense)
 
 
 
 
 
 
 
 
Investment income
 
9,935

 
6,814

 
18,646

 
14,365

Interest expense
 
(7,840
)
 
(6,766
)
 
(14,758
)
 
(14,109
)
Foreign exchange gain (loss), net
 
596

 
(2,216
)
 
(11,361
)
 
(4,430
)
Miscellaneous, net
 
1,308

 
309

 
(127
)
 
(789
)
Other income (expense), net
 
3,999

 
(1,859
)
 
(7,600
)
 
(4,963
)
Income (loss) before taxes
 
61,201

 
(25,481
)
 
72,881

 
(42,501
)
Income tax expense
 
(18,070
)
 
(78,371
)
 
(24,874
)
 
(75,233
)
Net income (loss)
 
43,131

 
(103,852
)
 
48,007

 
(117,734
)
Less: net (income) loss attributable to noncontrolling interests
 
(1,496
)
 
(1,183
)
 
3,434

 
(747
)
Net income (loss) attributable to Diebold, Incorporated
 
$
41,635

 
$
(105,035
)
 
$
51,441

 
$
(118,481
)
 
 
 
 
 
 
 
 
 
Basic weighted-average shares outstanding
 
64,588

 
63,700

 
64,424

 
63,509

Diluted weighted-average shares outstanding
 
65,224

 
63,700

 
65,018

 
63,509

 
 
 
 
 
 
 
 
 
Net income (loss) attributable to Diebold, Incorporated
 
 
 
 
 
 
 
 
Basic earnings (loss) per share
 
$
0.64

 
$
(1.65
)
 
$
0.80

 
$
(1.87
)
Diluted earnings (loss) per share
 
$
0.64

 
$
(1.65
)
 
$
0.79

 
$
(1.87
)
 
 
 
 
 
 
 
 
 
 
 








DIEBOLD, INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED
(IN THOUSANDS)
 
June 30, 2014
 
December 31, 2013
 

 
 
ASSETS
 
 
 
Current assets
 
 
 
Cash and cash equivalents
$
222,863

 
$
230,709

Short-term investments
152,970

 
242,988

Trade receivables, net
546,018

 
447,239

Inventories
481,314

 
376,462

Other current assets
314,832

 
257,952

Total current assets
1,717,997

 
1,555,350

 
 
 
 
Securities and other investments
82,675

 
82,591

Property, plant and equipment, net
158,304

 
160,895

Goodwill
181,850

 
179,828

Other assets
274,082

 
204,827

Total assets
$
2,414,908

 
$
2,183,491

 
 
 
 
LIABILITIES AND EQUITY
 
 
 
Current liabilities
 
 
 
Notes payable
$
63,105

 
$
43,791

Accounts payable
296,724

 
210,399

Other current liabilities
702,263

 
639,546

Total current liabilities
1,062,092

 
893,736

 
 
 
 
Long-term debt
490,432

 
480,242

Long-term liabilities
193,641

 
188,698

 
 
 
 
Total Diebold, Incorporated shareholders' equity
650,838

 
596,764

Noncontrolling interests
17,905

 
24,051

Total equity
668,743

 
620,815

 
 
 
 
Total liabilities and equity
$
2,414,908

 
$
2,183,491

 
 






















DIEBOLD, INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED
(IN THOUSANDS)
 
 
Six Months Ended
 
 
June 30,
 
 
2014
 
2013
Cash flow from operating activities:
 
 
 
 
Net income (loss)
 
$
48,007

 
$
(117,734
)
Adjustments to reconcile net income (loss) to cash flow used in operating activities:
 
 
 
 
Depreciation and amortization
 
36,719

 
42,194

Devaluation of Venezuelan balance sheet
 
12,101

 
1,584

Other
 
(2,434
)
 
8,027

 
 
 
 
 
Cash flow from changes in certain assets and liabilities:
 
 
 
 
Trade receivables
 
(100,600
)
 
(44,757
)
Inventories
 
(101,246
)
 
(62,302
)
Accounts payable
 
87,049

 
23,089

Prepaid income tax
 
3,667

 
(30,257
)
Deferred revenue
 
42,776

 
12,410

Deferred income taxes
 
(18,462
)
 
86,198

Certain other assets and liabilities
 
(99,352
)
 
18,123

Net cash used in operating activities
 
(91,775
)
 
(63,425
)
 
 
 
 
 
Cash flow from investing activities:
 
 
 
 
Net investment activity
 
101,057

 
805

Capital expenditures
 
(18,350
)
 
(18,156
)
Increase in certain other assets & other
 
9,552

 
(87
)
Net cash provided by (used in) investing activities
 
92,259

 
(17,438
)
 
 
 
 
 
Cash flow from financing activities:
 
 
 
 
Dividends paid
 
(37,404
)
 
(36,919
)
Net debt borrowings
 
29,414

 
31,028

Repurchase of common shares
 
(1,555
)
 
(1,967
)
Other
 
12,331

 
6,623

Net cash provided by (used in) financing activities
 
2,786

 
(1,235
)
 
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents
 
(11,116
)
 
(4,125
)
 
 
 
 
 
Decrease in cash and cash equivalents
 
(7,846
)
 
(86,223
)
Cash and cash equivalents at the beginning of the period
 
230,709

 
368,792

Cash and cash equivalents at the end of the period
 
$
222,863

 
$
282,569

 




DIEBOLD NIXDORF, Inc Reports