Diebold Nixdorf (DBD) Q4 2021 earnings summary

Executive summary

• FY21 net sales were $3,905.2M, up 0.1% reported but down $71.1M at constant currency; operating profit rose to $137.1M, while net loss narrowed to $78.1M.

• Retail growth offset weaker Banking sales; operating profit improvement largely reflected lower DN Now restructuring and transformation charges.

• DN Now concluded in Q4 2021; supply-chain disruption, freight and input inflation remained significant pressures on results.

Financial highlights

• Revenue: $3,905.2M vs. $3,902.3M in 2020; constant-currency sales declined $71.1M, including $59.8M from divested businesses.

• Gross profit was $1,043.4M vs. $1,035.0M; operating profit was $137.1M vs. $24.0M, a $113.1M increase.

• Net loss improved to $78.1M from $267.8M; attributable loss per share was $1.01 vs. $3.47.

• Excluding non-routine and restructuring charges, services gross margin increased 100 bps; product gross margin declined 300 bps, mainly from logistics costs and raw-material inflation.

• Operating cash flow was $123.3M vs. $18.0M; cash and total cash availability were $388.9M and $734.7M, respectively, at year-end.

Outlook and guidance

• 2022 capital expenditures and capitalized software development costs expected at $55.0M for product-line improvements and infrastructure investment.

• Raw-material and freight costs were not expected to improve materially through Q3 2022; mitigation plans included supply-chain optimization and price increases.

• Expected demand tailwinds include customers’ continued interest in devices, services and software, with markets shifting toward self-service automation.

• Management expected available capital resources to cover planned working capital, R&D, facility and equipment investment, and pension contributions for at least the next 12 months.