Diebold Nixdorf (DBD) Q4 2011 earnings summary

Executive summary

• FY2011 revenue rose 0.4% YoY to $2,835,848; operating profit was $155,594 versus a $1,802 loss in 2010, which included a $168,714 non-cash goodwill impairment.

• Q4 revenue reached $849,987; income from continuing operations was $83,047 versus a $118,657 loss in Q4 2010.

• Strategy centered on a shift toward software-led services, which contributed 54.7% of FY2011 revenue, and integrated customer solutions.

Financial highlights

• FY2011 gross profit increased 2.3% YoY to $735,929; gross margin was 26.0%, versus 25.5% in 2010.

• FY2011 net income attributable to Diebold, Incorporated was $144,815, versus a $20,252 loss in 2010; diluted EPS was $2.24 versus $(0.31).

• FY2011 continuing-operations income attributable to Diebold, Incorporated was $144,292, or $2.23 per diluted share; Brazil’s valuation-allowance release added approximately $28,000 of tax benefit.

• FY2011 operating cash flow was $215,397, down from $273,353 in 2010; capital expenditures were $54,753.

Outlook and guidance

• Management expressed optimism for 2012 growth while noting macroeconomic uncertainty and continuing headwinds in several markets.

• SmartBusiness 300 initiatives target an additional $100,000 in efficiencies by the end of 2013, emphasizing operating-expense reductions.

• EMEA restructuring was expected to incur a further $4,000–$6,000 in 2012 costs.

• Planned 2012 pension contributions were $15,814; minimum statutory U.S. pension funding beyond 2012 could become significant.