Notably, both agreements included multiyear contracts for security, monitoring and marketing software. We also recently announced a win at one of the largest credit unions in the United States. And we also know that we have ample opportunity relative to accounts payable and turns. /Count 0 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. As a host, you should also make arrangement for water.
/Contents 44 0 R At the same time, we enhanced our execution of the DN Now transformation initiatives and delivered approximately $165 million against our savings targets during the year. Now, we're paying it in the first and third quarter. As it relates to DN Series, as we mentioned in our prepared remarks, we had very solid order activity through the third and fourth quarters, and are entering 2021 with a very strong backlog, specifically related to DN Series. 
And we don't want to lock ourselves into something today because we can. /Type /Page During the fourth quarter, we made a concerted effort to accelerate our transformation expenses and cash payments with the explicit goal to complete all expenses and payments for the DN Now transformation before the end of 2021. Net cash provided by operating activities of $414.8 million in the fourth quarter increased $200.1 million YoY primarily due to improved collections, tight control of DPO and reduced restructuring and transformation spending. We always monitor the market, right. You talked about kind of the first half-second half revenue and EBITDA cadence for Diebold in '21. At the end of 2020, the company's net leverage ratio of 4.4 times was unchanged from the end of 2019 as the increase in EBITDA and our positive free cash flow was offset by payments associated with our debt refinancing, M&A activities and an unfavorable exchange rate on foreign net debt balances. I would now like to hand the conference over to your speaker today, Steve Virostek. Just go through our Coffee Vending Machines Noida collection. >> /C [0.0 0.0 0.0] Slide 9 contains our financial highlights for the quarter and the full year. Our fourth quarter revenue was about 5% better than our recent outlook.
Visit www.DieboldNixdorf.com for more information. First, sustainable supply chain and operations is vital to our customers and suppliers. << /Parent 2 0 R Collectively, these factors contribute to an adjusted EBITDA target for 2023 in excess of 13%. Before we conclude our prepared remarks, I'd like to comment briefly on our longer-term outlook and financial targets on slide 16. 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 expenditure and working capital requirements. >>
/Contents 24 0 R << And we saw a significant release of that pent-up payments in the fourth quarter. stream
/CreationDate (D:20210210143130+00'00') [Speech Overlap] projects as well. I'm pleased to join you today to discuss our investment thesis, our solid 2020 results and our outlook for value creation. Clientele needs differ, while some want Coffee Machine Rent, there are others who are interested in setting up Nescafe Coffee Machine. Slide 2 of today's presentation contains a reminder that our comments will include non-GAAP financial information, which we believe is helpful in assessing the company's performance. /Contents 42 0 R As part of our commitment to sustainable growth, we are also affirming our commitments to be a leader in our sector in environmental, social and governance, or ESG, matters. /Resources 43 0 R I think we're seeing a few phenomena. And quite frankly, we think it's very, very prudent for us to be somewhat conservative as we think about the back half of the year. 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. x\I00bOhw Q%} ,R[g&c KN"c}|]d%pK~b? Our company's tax structure consists of two tax principals, the United States and Germany. /Parent 2 0 R
During the fourth quarter, we received initial orders from our milestone agreement with a pan-European grocer who was refreshing the second largest fleet of self-checkout devices in the world. << >> Despite a tough comparison, we performed exceptionally well. The company has a presence in more than 100 countries with approximately 22,000 employees worldwide. /MediaBox [0.0 0.0 612.0 792.0] Cost basis and return based on previous market day close. Net Debt) And as we have discussed on prior calls, we continue to prioritize the health and safety of our employees through the pandemic through educational, personal protection equipment and specific initiatives supporting employees in the hardest-hit countries. /Type /Pages /Type /Page Jeff Rutherford, Diebold Nixdorf executive vice president and chief financial officer, said: "In the fourth quarter, our operations and supply chain teams performed exceptionally well against a challenging, but slowly improving, supply chain and logistics environment.
endobj We're well north of 600 projects right now. /Resources 35 0 R >> As usual, my prepared remarks today will focus on non-GAAP metrics unless otherwise noted. Good morning. We are entering 2021 with a strong order book, differentiated and well positioned solutions and a detailed operating plan for bringing our DN Now transformation efforts to a successful conclusion. /Creator (Workiva) The machines that we sell or offer on rent are equipped with advanced features; as a result, making coffee turns out to be more convenient, than before. /MediaBox [0.0 0.0 612.0 792.0] /Count 0
And also, due to US limitations on the deductibility of interest payments. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Yeah, sure. This article is a transcript of this conference call produced for The Motley Fool. 15 0 obj And then, just one last question, Gerrard. Switching topics here, can you talk a little bit about your product backlog?
We will include capitalized software development and capital expenditures in our free cash flow definition going forward, while continuing to exclude the impact of M&A related activities and cash element of non-operating hedging derivatives. You might have broken up a little bit. It's Gerrard Schmid. 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 operating results, future liquidity and financial position. We ensure that you get the cup ready, without wasting your time and effort. We also expect to deliver ongoing operational efficiencies and gross margin expansion in our services business through widespread deployment of our All Collect Data Engine, which underpins our gross service margin target range of 32% to 33%. endobj Yeah. /Parent 2 0 R /Kids [5 0 R 6 0 R 7 0 R 8 0 R 9 0 R 10 0 R 11 0 R 12 0 R 13 0 R 14 0 R The data presented on this page does not represent the view of Diebold Nixdorf and its employees or that of Zippia. We also won a new contract to install 1,000 new DN Series cash recycling modules and our IoT-enabled All Connect Data Engine with the largest private bank in Brazil. I appreciate the questions. /Parent 2 0 R So, we did that specifically. "Looking forward, we are providing the following 2022 outlook: The company expects total revenue of $4.0 billion to $4.2 billion, which reflects approximately $150 million in revenue deferral from 2021 to 2022, and organic and pricing growth partially offset by modeled divestitures and terminated low-profit service contracts and potential ongoing logistics and supply chain disruptions. For more information, please refer to the section, "Notes for Non-GAAP Measures.". 1 - With respect to the company's adjusted EBITDA and Return on Invested Capital (ROIC) outlook for 2022, 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. 8 0 obj But you're right, that $50 million is key to our free cash flow conversion in 2021. So, that's going to have an effect on us. Good morning, Paul. Our solution leverages an API-enabled micro-services approach, which provides distinct competitive advantages for our company, including the ability to transform the banks payment operations, a flexible and future proof approach to support multiple payment types and channels, giving banks the flexibility to adapt to changing regulations, schemes, payment types and channels and the ability to quickly scale to billions of transactions. So, what the key for us is, and way we built the model, right, is to leverage the enablement functions. Or do you think that leverage increases after 2021? You already know how simple it is to make coffee or tea from these premixes. Most importantly, they help you churn out several cups of tea, or coffee, just with a few clicks of the button.
Jeff Harlib -- Barclays Capital -- Analyst. The net result of our efforts will drive a strong sequential step up in free cash flow, which is anticipated to be in the range of $140 million to $170 million for the year. Invest better with The Motley Fool. << So, net-net, we think we're in an interesting period of self-checkout expansion across multiple customer bases. As part of our global citizenship actions, the Diebold Nixdorf Foundation has committed to $0.5 million to expand financial literacy in underserved populations through an organization called Operation HOPE. /Contents 40 0 R The company calculates constant currency by translating the prior year results at current year exchange rates. That would be our goal. Summary Financial Results($ in millions, except per share data), Net cash provided (used) by operating activities (GAAP measure), Excluding the impact of changes in cash of assets held for sale and, Excluding the (proceeds)/use of cash for the settlement of foreign, Excluding the termination of certain interest rate swaps due to debt, Proceeds from the surrender of company-owned life insurance policies, Unlevered free cash flow (non-GAAP measure). As we start to transition into '22 and '23, the mix starts to shift more in favor of software and services related growth, areas like managed services and Vynamic Payments that I made reference to. Cboe BZX HUDSON, Ohio - Diebold Nixdorf (NYSE:DBD) today reported its 2021 fourth quarter and full-year financial results. /Type /Page
Divestitures, which have already been completed, are expected to result in a headwind of approximately $50 million to services revenue, with the majority impacting our first half results. << We invite you to learn more about our overall efforts by reviewing our recently released corporate sustainability report, a link of which is available through our slide deck or on our website. Can you remind us what the average time [Technical Issues] and revenue. Moving on to our free cash flow outlook. More information on Diebold Nixdorf's quarterly earnings is available on its Investor Relations website. With two years of solid execution in the books, our path to higher profitability is well under way. /Contents 30 0 R And then, does your guidance kind of assume the pandemic continues for most of the year or are you baking in possible acceleration in the second half?
But that doesn't rule out that we'll continue to monitor the marketplace. It was great to see the guidance, in particular the free cash flow confidence both for '21 and into '23. /Resources 25 0 R Against this backdrop, our 2021 outlook is for revenue of approximately $4 billion to $4.1 billion or 3% to 5% growth, adjusted EBITDA of $480 million to $500 million which translates to 6% to 10% growth, and significant free cash flow growth to a range of $140 million to $170 million. And good morning, everyone. /MediaBox [0.0 0.0 612.0 792.0] /C [0.0 0.0 0.0] So, find out what your needs are, and waste no time, in placing the order. For the quarter, we had spent $72 million of restructuring and transformation expenditures and paid approximately $60 million in cash. In addition, we are supporting our customers' efficiency agendas through offering pre-configured managed services solutions for those customers who want the most comprehensive ATM solutions, performance levels and capabilities. /Parent 2 0 R << My comments will focus on the quarterly numbers. Coffee premix powders make it easier to prepare hot, brewing, and enriching cups of coffee.
Diebold Nixdorf Reports 2021 Fourth Quarter and Full-Year Financial Results, Please visit http://www.dieboldnixdorf.com/earnings for a comprehensive shareholder letter and additional content. /Type /Page And then, I have a follow-up.
Our impact on local communities is also important to us. First, maybe Gerrard, can you address how you guys are framing up the TAM for Vynamic Payments? Your next question comes from Kartik Mehta with Northcoast Research. Over the next three years, we will generate stronger free cash flow due to the elimination of restructuring payments, continued strong management of net working capital investments and incremental profitability. Since we are nearing the end of DN Now restructuring, we have scheduled all necessary severance spend. But then you have high coupon callable bonds in '22. Key contributions are expected from top line growth and $160 million of DN Now savings, primarily from higher mix of DN Series, software excellence and greater efficiencies from our service organization and All Connect Data Engine. /MediaBox [0.0 0.0 612.0 792.0] endobj /Contents 20 0 R /MediaBox [0.0 0.0 612.0 792.0] Sure. /Title (EX-99.1 Q4 2020 ER) For our services business, we are leveraging the IoT and machine learning capabilities of our All Connect Data Engine to enhance availability for customers and improve our own efficiency.
Thanks for your question. And that's why we beat our model in the fourth quarter, is that we had very, very good cash collections. We're reconciling to the most directly comparable GAAP metric in the supplemental schedules of our slides and in the tables of today's earnings release. On slide 12, retail revenue of $312 million was 1% lower year-over-year after adjusting for a $12 million foreign currency benefit. And then, on your free cash flow, nice guide for '21, a bit more than we expected. We are focused on high quality revenue growth, which will be accretive to the company. We are expecting revenue in the range of $4 billion to $4.1 billion, which translates to a 3% to 5% growth. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. We also booked a new logo in Egypt for 500 DN Series in support of this bank's expansion initiatives. Since 2018, our focus has been on transforming our business model to generate strong free cash flow. What we don't want to get into is, as we grow the business, that we grow enablement functions. As we increase our profitability and use excess cash to pay down debt, we expect to reduce our leverage ratio to less than 3 times net debt to trailing 12 months adjusted EBITDA. Maybe just the mix of how you get to that 2% to 4%? 9 0 obj /Resources 29 0 R /Type /Page /Type /Page This is Jeff. The remainder of the revenue decrease is the result of supply chain delays which have delayed revenue recognition into 2022. The distribution subsidiaries pay the principals for products and related services. In the face of revenue headwinds, we continued to execute our DN Now initiatives and deliver greater profitability. And I previously mentioned our strong fourth quarter free cash flow performance and now total $57 million for the year. So, let me answer that second question first. I will shortly describe our cloud native Vynamic Payments offering and the market opportunity on the next slide. /Type /Outlines Gerrard, can you maybe give a little bit more detail on the revenue growth targets you've established through 2023. /Parent 2 0 R When we did the refinancing, obviously, we were right on the issues relative to the pandemic and the election disruptions. And welcome to the Diebold Nixdorf 2020 earnings call. Foreign currency was favorable by approximately $18 million and divestitures were unfavorable by $36 million. We will have, as you know, in the first quarter, with incentive comp payments and so forth, that will be our -- expected to be our lowest free cash flow, which would be a slight spend, right, in the first quarter. And then secondly, with the strong free cash flow outlook, to what extent does that open you to think about things like tuck-in acquisitions that might supplement the growth areas, which I think you've been constrained from in the recent past because of the free cash flow performance? Yeah. Assume you'll be investing a bit in inventory for the DN Series. Second of all, I think we are seeing some catch-up from the weakness of Q2 of 2020 as we're starting to see spend accelerate from several institutions. There seems to be a pretty good demand for self-checkout. [Operator Instructions]. We expect to generate $140 million to $170 million in 2021, representing an EBITDA to free cash flow conversion rate of approximately 30%, up from 12% in 2020. Good morning, Kartik. I didn't quite hear. /MediaBox [0.0 0.0 612.0 792.0] Our key initiatives are summarized on slide 17. It's like largely driven by your EBITDA conversion. In addition, we are seeing some competitive takeaways in our favor and we've commented on those in the past. Now, the second thing I'd say is, when we think about the spend by bank for these opportunities, they run in the tens of millions of dollars from a software perspective. With respect to diversity and inclusion, we have formed a CARE Council to promote inclusive values where we're considerate, aware, responsible and empathetic toward one another. Fortunately, we had the return on invested capital that's greater than that. So, previously, we had communicated 550 projects. /Pages 2 0 R
2020 was a good year for us, especially when considering the challenges of navigating a global pandemic. Here's what I'd say on taxes. Thank you. In addition to enhancing the free cash flow generation from our operating model, we are targeting growth in areas where we have competitive differentiation. And so, I think we're being a little bit circumspect with regards to our outlook through H2 until we see and get more visibility around how lockdowns unfold and how accessibility to a broad vaccine plays itself out because we have to keep reminding ourselves that this pandemic continues to be a very, very complex situation that can change outcomes fairly quickly. /MediaBox [0.0 0.0 612.0 792.0] I guess, first off, I just wanted to delve into when you spoke to at the tail end of your prepared remarks, Gerrard. Couple of questions. And relative to working capital, I will say that, if you look at our working capital performance in 2020, it was impacted by COVID-19 and in particular in cash collections and customer behaviors. So, certainly, that should happen by the end of '21 and early '22, but we'll monitor it all the way through. endobj So, we need to work on that balance between distribution subsidiaries and principals. Statements can generally be identified as forward looking because they include words such as "believes," "anticipates," "expects," "could," "should" or words of similar meaning. In fact, I'll even go as far to say, is with the systems, the digital systems implementations that we're going through now, our expectation would be that we would see a decline in the percentage of enablement costs to revenue as we move forward through 2023. Irrespective of the kind of premix that you invest in, you together with your guests will have a whale of a time enjoying refreshing cups of beverage. So, clearly, the back half of the year will be more influenced by sales momentum through the next quarter or so. So, typically, we look at a product backlog as that would generate revenue in the next 12 to 18 months' time period. Kartik, so in my prepared remarks, I mentioned that, from a shipment perspective, 2020 was a very, very good year. /F 2
Copyright 2022 Surperformance. Since 2015, we have systematically reduced our carbon emissions by 16,500 metric tons, and we report our results in the Carbon Disclosure Project. And happy to.
On slide 3, we remind all participants that certain comments may be characterized as forward-looking statements, and that there are a number of risk factors which could cause actual results to differ materially from these statements. The next three slides contains financial highlights for our three segments adjusted for currency and divestitures. All rights reserved. And thirdly, from a cash recycling perspective, we're seeing much more heightened interest from banks in Americas, in particular, for our fourth generation cash recycling technology. We're also pleased that our customers are further validating our progress as customer satisfaction further improved as Net Promoter Scores from our banking customers increased substantially for a third consecutive year. However, R&D expense was slightly higher as we continue to invest in future solutions. Besides renting the machine, at an affordable price, we are also here to provide you with the Nescafe coffee premix. /Contents 38 0 R Continued strong gross margin results in the quarter were offset by the revenue decline, resulting in a $7 million decline in gross profit versus the prior-year period. endobj During the fourth quarter, non-routine expenses were approximately $8 million and we expect these adjustments have largely concluded, with the exception of divestiture-related costs. And what can kind of drive some additional upside in the second half. Here also, we are willing to provide you with the support that you need. Our cloud native solution offers a path for banks to address these pain points.
Either way, you can fulfil your aspiration and enjoy multiple cups of simmering hot coffee. Please go ahead, sir. As Jeff said, as we look at 2021, we think that product activity, both in retail and in banking, will fuel most of the top line growth, fueled by strong backlog and sales momentum that we're seeing in the first half of this year. Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Is it sort of catch-up from weakness during the early parts of COVID? Your next question comes from Matt Summerville with D.A. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.
Calculated by Time-Weighted Return since 2002. We focus on clientele satisfaction. 2 0 obj And that's an area of continued focus for us. << Diebold Nixdorf Poised for Improved Results Amid Macro Woes, Wedbush Says in Upgrade; S.. Diebold Nixdorf, Incorporated Announces Termination of Ulrich Nher,Executive Vice Pres.. Wedbush Upgrades Diebold Nixdorf to Outperform From Neutral, Citing Backlog Levels; $5 .. DA Davidson Adjusts Price Target for Diebold Nixdorf to $5 From $7, Maintains Buy Ratin.. Wedbush Lowers Diebold Nixdorf's Price Target to $5 from $10 After 'Another Difficult Q.. NIDEC CHAUN-CHOUNG TECHNOLOGY CORPORATION, President, Chief Executive Officer & Director, Senior VP, Chief Financial & Accounting Officer, Chief Operating Officer & Executive Vice President. It really swings on working capital. Perfect. Gross profit increased to $73 million during the quarter as our mix of products was more favorable due to the rising self-checkout shipments and our DN Now initiatives positively impacting services and software margins. We don't expect that to repeat at the end of 2021. So, I'm starting with that comment just to manage everyone's expectations around the pace of customer wins. And then, the fourth quarter, it all releases, especially now that we don't have a big bond payment in fourth quarter. Due to high restructuring, transformation and interest payments, the combined tax principals reported a pre-tax loss, but paid approximately $7 million of income taxes due primarily to tax loss pertaining to the US foreign source income alignment, or in tax jargon, if you prefer that, the Global Intangible Low Tax Income, GILTI provisions and Subpart F provisions of the US tax code.
Moving to slide 11, Americas Banking revenue of $375 million declined 7% versus the prior quarter, excluding a $13 million foreign currency headwind, primarily reflecting non-recurring projects in North America as well as COVID-19 related project delays. So, we're seeing an expansion of the number of ATMs per institution in those markets. /Contents 26 0 R Depending on your choice, you can also buy our Tata Tea Bags. And then, as far as investments, that's not built into that free cash flow forecast that we provided, but certainly, relative to value creation, it's not off the table. And welcome everyone to Diebold Nixdorf's fourth quarter and year-end 2020 earnings call. And now, it's heavily centered in the US, which drive the US and the lawsuits. Stronger profitability, substantially lower restructuring costs and more efficient net working capital management are key levers toward our goal of improving the conversion of adjusted EBITDA to levered free cash flow. Joining me on today' call are Gerrard Schmid, President and Chief Executive Officer, and Jeff Rutherford, our Chief Financial Officer. The Motley Fool has a disclosure policy. Furthermore, we believe the company can generate a return on invested capital of greater than 20%.
You can see that the next material debt maturity date is November of 2023, which provides the company with ample time to complete our transformation, strengthen our credit profile and execute on our growth initiatives. And your first question comes from Paul Chung with J.P. Morgan. My comments will focus on fourth quarter trends. LinkedIn: www.linkedin.com/company/diebold, Facebook: www.facebook.com/DieboldNixdorf. Diebold Nixdorf peak revenue was $4.6B in 2017. As more technologies proliferate within our retail customer environments, they are also turning to Diebold Nixdorf to support them with our comprehensive managed services offering to generate greater operating efficiencies and more integrated store operations. The Motley Fool has no position in any of the stocks mentioned. We are proud to offer the biggest range of coffee machines from all the leading brands of this industry. And now, I will hand the call back to Gerrard for comments on our 2023 financial targets and our ESG initiatives. And you probably picked up from my prepared remarks the imbalance between our distribution subsidiaries and our principals, right? And thanks, Jeff. 2020 was a very strong year for Diebold Nixdorf from a self-checkout shipments perspective as we delivered growth of approximately 90% in the fourth quarter and just over 2% for the full year. Would you mind repeating that? Marla, as I said in my prepared remarks, we have very good visibility for the first half of the year. Uses of cash include the following approximate amounts. Statements that describe the company's future plans, objectives or goals are also forward-looking statements. We automate, digitize and transform the way people bank and shop. And as it relates to self-checkout, I know both ourselves and others have talked about the strength of the self-checkout market. endobj endobj So, in all the three major areas of working capital, we see opportunity to harvest cash in 2021. Matt Summerville -- D.A. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. 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. This is very, very robust sophisticated technologies. Thank you. Vending Services (Noida)Shop 8, Hans Plaza (Bhaktwar Mkt. /Contents 36 0 R
Are you looking at doing -- as you look at things now, are you looking at wholesale refinancing some time in '22 or could you look at parts of the structure before that? Our focus is on reducing our carbon footprint, promoting recycling and using environmentally sustainable materials, and we are applying all these principles in the design and production of our new product lines, such as DN Series ATMs, DN Series EASY and BEETLE point-of-sale.
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