Revenue up 21% and Strong Momentum in Strategic Initiatives
ATLANTA--(BUSINESS WIRE)--NCR Corporation (NYSE: NCR) reported financial results today for the three months ended March 31, 2022. First quarter and other recent highlights include:
“Our first quarter results represent strong execution with good momentum across our strategic growth initiatives despite significant macroeconomic and geopolitical challenges,” said Michael Hayford, Chief Executive Officer. “As a global company, a confluence of external factors impacted NCR. Inflation skyrocketed to the highest level in over 40 years, interest rates increased more rapidly, a war broke out in Eastern Europe and the Omicron variant spread. The multitude of headwinds negatively impacted revenue and costs. Despite these unprecedented challenges, we made substantial progress on the strategic growth initiatives that are transforming NCR into a software-led as-a-service company with a higher mix of recurring revenue streams. Demand and order activity for our software platform and payments solutions are strong and we remain confident in the transformation of our company.”
Mr. Hayford continued, “We continue to actively review, with the assistance of our advisors, paths to potentially pursue as we progress our board-led strategic review process and continue to evaluate strategic alternatives to enhance shareholder value.”
In this release, we use certain non-GAAP measures. These non-GAAP measures include “free cash flow,” “Adjusted EBITDA,” and others with the words “non-GAAP” in their titles. These non-GAAP measures are listed, described and reconciled to their most directly comparable GAAP measures under the heading “Non-GAAP Financial Measures” later in this release.
First Quarter 2022 Operating Results
Effective January 1, 2022, the Company realigned its reportable segments to correspond with changes to its operating model, management structure and organizational responsibilities. Prior periods have been reclassified in order to conform to current period presentation.
First quarter revenue of $1,866 million increased 21% year over year. The following table shows revenue for the first quarter:
$ in millions |
Q1 2022 |
|
Q1 2021 |
|
% Increase
|
|||||
Payments & Network (1) |
$ |
299 |
|
|
$ |
22 |
|
|
1,259 |
% |
Digital Banking |
|
136 |
|
|
|
123 |
|
|
11 |
% |
Self-Service Banking |
|
611 |
|
|
|
628 |
|
|
(3 |
) % |
Retail |
|
546 |
|
|
|
520 |
|
|
5 |
% |
Hospitality |
|
211 |
|
|
|
179 |
|
|
18 |
% |
Other |
|
68 |
|
|
|
77 |
|
|
(12 |
) % |
Eliminations (2) |
|
(8 |
) |
|
|
(5 |
) |
|
60 |
% |
Total segment revenue |
$ |
1,863 |
|
|
$ |
1,544 |
|
|
21 |
% |
Other adjustment (3) |
|
3 |
|
|
|
— |
|
|
|
|
Total revenue |
$ |
1,866 |
|
|
$ |
1,544 |
|
|
21 |
% |
|
|
|
|
|
|
|||||
Recurring Revenue |
$ |
1,179 |
|
|
$ |
874 |
|
|
35 |
% |
Recurring Revenue % |
|
63 |
% |
|
|
57 |
% |
|
|
|
(1) |
First quarter 2022 revenue includes the results of the Cardtronics business, which was acquired on June 21, 2021, and the results of the LibertyX business, which was acquired January 5, 2022. |
|
(2) |
Eliminations includes revenues from contracts with customers and the related costs that are reported in the Payments & Network segment as well as in the Retail or Hospitality segments, including merchant acquiring services that are monetized via payments. |
|
(3) |
Other adjustment reflects the revenue attributable to the Company's operations in Russia for the three months ending March 31, 2022 that were excluded from management's measure of revenue due to our announcement to suspend sales to Russia and anticipated orderly wind down of our operations in Russia. The revenue attributable to the Russia operations for the prior period of $8 million are included in the respective segments. Refer to the section entitled “Non-GAAP Financial Measures” for additional information. |
Our first quarter results were negatively impacted by the unprecedented confluence of another virus wave disruption, a war in Eastern Europe and dramatic cost inflation. These external factors collectively caused revenue reduction or delays of more than $90 million and Adjusted EBITDA reduction of more than $70 million due to both the lower revenue and dramatically higher costs for components, freight, fuel, and interest. We currently expect financial performance to improve sequentially in each of the remaining three quarters of this year assuming the external environment does not worsen, and as we implement further price increases and cost productivity actions. We do not currently expect the operating challenges we are facing to distract our focus on further advancing our strategic growth initiatives and the ongoing transformation of NCR into a software-led, as-a-service company.
We are adjusting our full year guidance down to reflect both the shortfall in first quarter results and the expected net residual impact across the remainder of the year. We now expect the following:
|
Current Guidance |
|
Prior Guidance |
|
|
|
|
|
|
Revenue |
~ $8 billion |
|
$8.0 - $8.2 billion |
|
Adjusted EBITDA |
$1.4 - $1.5 billion |
|
$1.5 - $1.575 billion |
|
Free Cash Flow |
$400 - $500 million |
|
$500 - $600 million |
|
Non-GAAP Diluted EPS |
$2.70 - $3.20 |
|
$3.25 - $3.55 |
|
With respect to our Adjusted EBITDA, Free Cash Flow and non-GAAP diluted earnings per share guidance, we do not provide a reconciliation of the respective GAAP measures because we are not able to predict with reasonable certainty the reconciling items that may affect the GAAP net income from continuing operations, GAAP cash flow from operating activities and GAAP diluted earnings per share from continuing operations without unreasonable effort. The reconciling items are primarily the future impact of special tax items, capital structure transactions, restructuring, pension mark-to-market transactions, acquisitions or divestitures, or other events. These reconciling items are uncertain, depend on various factors and could significantly impact, either individually or in the aggregate, the GAAP measures. Refer to the heading “Non-GAAP Financial Measures” for additional information regarding our use of non-GAAP financial measures.
Strategic Review
The NCR Board of Directors continues to pursue a comprehensive strategic review process, which will evaluate a full range of strategic alternatives available to NCR to enhance value for all shareholders. BofA Securities, Inc., Goldman Sachs & Co. LLC, and Evercore Group L.L.C. are serving as financial advisors to NCR.
Those strategic alternatives could include a disposition of a material business or assets of the Company, a spin-off, merger or sale of the Company, other structural changes, changes to branding or geographic footprint, or other transactions or alternatives.
The board-led strategic review process is ongoing. The Board has not set a timeline for the conclusion of its review of strategic alternatives. NCR does not intend to comment further on the strategic review process unless and until NCR has determined that further disclosure is beneficial or required by law.
Shareholders are advised that there can be no certainty that the strategic review will result in a transaction, or if a transaction is pursued that such a transaction will be completed.
2022 First Quarter Earnings Conference Call
A conference call is scheduled for today at 4:30 p.m. Eastern Time to discuss the first quarter 2022 results. Access to the conference call and accompanying slides, as well as a replay of the call, are available on NCR's web site at http://investor.ncr.com. Additionally, the live call can be accessed by dialing 888-820-9413 (United States/Canada Toll-free) or 786-460-7169 (International Toll) and entering the participant passcode 2623877.
More information on NCR’s first quarter earnings, including additional financial information and analysis, is available on NCR’s Investor Relations website at http://investor.ncr.com/.
About NCR Corporation
NCR Corporation (NYSE: NCR) is a leading enterprise technology provider that runs stores, restaurants and self-directed banking. NCR is headquartered in Atlanta, Ga., with 38,000 employees globally. NCR is a trademark of NCR Corporation in the United States and other countries.
Website: www.ncr.com Twitter: @NCRCorporation Facebook: www.facebook.com/ncrcorp LinkedIn: https://www.linkedin.com/company/ncr-corporation YouTube: www.youtube.com/user/ncrcorporation
Cautionary Statements
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (the “Act”). Forward-looking statements use words such as “expect,” “anticipate,” “outlook,” “intend,” “plan,” “confident,” “believe,” “will,” “should,” “would,” “potential,” “positioning,” “proposed,” “objective,” “could,” “may,” and words of similar meaning, as well as other words or expressions referencing future events, conditions or circumstances. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Act. Statements that describe or relate to NCR’s plans, goals, intentions, strategies, or financial outlook, and statements that do not relate to historical or current fact, are examples of forward-looking statements. Examples of forward-looking statements in this release include, without limitation, statements regarding: macroeconomic and geopolitical challenges and the impact thereof including, but not limited to, inflationary pressures for components, freight, fuel, and interest, the war in Eastern Europe, increase in interest rates and continued waves of the COVID-19 pandemic; NCR’s focus on advancing our strategic growth initiatives and transforming NCR into a software-led as-a-service company; expectations regarding demand and order activity for our software platform and payments solutions and our long-term prospects; NCR's full year 2022 financial forecast and expectations and assumptions regarding financial performance in 2022 (including the section titled “2022 Outlook”); and a comprehensive strategic review to evaluate strategic alternatives (which could include a disposition of a material business or assets of the Company, a spin-off, merger or sale of the Company, other structural changes, changes to branding or geographic footprint or other transactions or alternatives). Forward-looking statements are based on our current beliefs, expectations and assumptions, which may not prove to be accurate, and involve a number of known and unknown risks and uncertainties, many of which are out of NCR’s control. Forward-looking statements are not guarantees of future performance, and there are a number of important factors that could cause actual outcomes and results to differ materially from the results contemplated by such forward-looking statements, including those factors relating to:
Additional information concerning these and other factors can be found in the Company’s filings with the U.S. Securities and Exchange Commission, including the Company’s most recent annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made. The Company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Non-GAAP Financial Measures
Non-GAAP Financial Measures. While NCR reports its results in accordance with Generally Accepted Accounting Principles in the United States, or GAAP, in this release NCR also uses the non-GAAP measures listed and described below.
Non-GAAP Diluted Earnings Per Share (EPS), Gross Margin (non-GAAP), Gross Margin Rate (non-GAAP), Operating Income (non-GAAP), and Net Income from Continuing Operations Attributable to NCR (non-GAAP). NCR’s non-GAAP diluted EPS, gross margin (non-GAAP), gross margin rate (non-GAAP), operating income (non-GAAP), and net income from continuing operations attributable to NCR (non-GAAP) are determined by excluding, as applicable, pension mark-to-market adjustments, pension settlements, pension curtailments and pension special termination benefits, as well as other special items, including amortization of acquisition related intangibles and transformation and restructuring activities, from NCR’s GAAP earnings per share, gross margin, gross margin rate, expenses, income from operations, operating margin rate, other (expense), income tax expense, effective income tax rate and net income from continuing operations attributable to NCR, respectively. Due to the non-operational nature of these pension and other special items, NCR's management uses these non-GAAP measures to evaluate year-over-year operating performance. NCR believes these measures are useful for investors because they provide a more complete understanding of NCR's underlying operational performance, as well as consistency and comparability with NCR's past reports of financial results.
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA). NCR determines Adjusted EBITDA for a given period based on its GAAP net income from continuing operations attributable to NCR plus interest expense, net; plus income tax expense (benefit); plus depreciation and amortization; plus stock-based compensation expense; plus other income (expense); plus pension mark-to-market adjustments, pension settlements, pension curtailments and pension special termination benefits and other special items, including amortization of acquisition related intangibles and restructuring charges, among others. NCR uses Adjusted EBITDA to manage and measure the performance of its business segments. NCR also uses Adjusted EBITDA to manage and determine the effectiveness of its business managers and as a basis for incentive compensation. NCR believes that Adjusted EBITDA provides useful information to investors because it is an indicator of the strength and performance of the Company's ongoing business operations, including its ability to fund discretionary spending such as capital expenditures, strategic acquisitions and other investments.
Adjusted EBITDA margin is calculated based on Adjusted EBITDA as a percentage of total revenue.
Special Item Related to Russia The war in Eastern Europe and related sanctions imposed on Russia and related actors by the United States and other jurisdictions required us to orderly wind down our operations in Russia beginning in the first quarter of 2022. As a result, for the three months ending March 31, 2022, our non-GAAP presentation of the measures described above exclude the impact of our operating results in Russia, as well as the impact of impairments taken to write down the carrying value of assets and liabilities, severance charges, and the assessment of collectability on revenue recognition. We consider this to be a special item and management has reviewed the results of its business segments excluding these impacts. We have not adjusted the presentation of the prior year period due to the immaterial impact of Russia to income from continuing operations for the three months ended March 31, 2021.
Free Cash Flow. NCR defines free cash flow as net cash provided by (used in) operating activities less capital expenditures for property, plant and equipment, less additions to capitalized software, plus/minus restricted cash settlement activity, plus acquisition-related items, less the impact from the initial sale of trade accounts receivables under the agreement entered into during the 3rd quarter of 2021, and plus pension contributions and pension settlements. NCR's management uses free cash flow to assess the financial performance of the Company and believes it is useful for investors because it relates the operating cash flow of the Company to the capital that is spent to continue and improve business operations. In particular, free cash flow indicates the amount of cash generated after capital expenditures, which can be used for, among other things, investment in the Company's existing businesses, strategic acquisitions, strengthening the Company's balance sheet, repurchase of Company stock and repayment of the Company's debt obligations. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other nondiscretionary expenditures that are not deducted from the measure. Free cash flow does not have uniform definitions under GAAP and, therefore, NCR's definitions may differ from other companies' definitions of these measures.
NCR's definitions and calculations of these non-GAAP measures may differ from similarly-titled measures reported by other companies and cannot, therefore, be compared with similarly-titled measures of other companies. These non-GAAP measures should not be considered as substitutes for, or superior to, results determined in accordance with GAAP.
Use of Certain Terms
Recurring revenue includes all revenue streams from contracts where there is a predictable revenue pattern that will occur at regular intervals with a relatively high degree of certainty. This includes hardware and software maintenance revenue, cloud revenue, payment processing revenue, interchange and network revenue, and certain professional services arrangements, as well as term-based software license arrangements that include customer termination rights.
Reconciliation of Gross Margin (GAAP) to Gross Margin (Non-GAAP) |
|||||
$ in millions |
Q1 2022 |
|
Q1 2021 |
||
Gross Margin (GAAP) |
$ |
411 |
|
$ |
414 |
Transformation and restructuring costs |
|
5 |
|
|
4 |
Acquisition-related amortization of intangibles |
|
19 |
|
|
7 |
Russia |
|
14 |
|
|
— |
Gross Margin (Non-GAAP) |
$ |
449 |
|
$ |
425 |
Reconciliation of Gross Margin Rate (GAAP) to Gross Margin Rate (Non-GAAP) |
|||||
|
Q1 2022 |
|
Q1 2021 |
||
Gross Margin Rate (GAAP) |
22.0 |
% |
|
26.8 |
% |
Transformation and restructuring costs |
0.3 |
% |
|
0.3 |
% |
Acquisition-related amortization of intangibles |
1.0 |
% |
|
0.4 |
% |
Russia |
0.8 |
% |
|
— |
% |
Gross Margin Rate (Non-GAAP) |
24.1 |
% |
|
27.5 |
% |
Reconciliation of Income from Operations (GAAP) to Operating Income (Non-GAAP) |
|||||
$ in millions |
Q1 2022 |
|
Q1 2021 |
||
Income (Loss) from Operations (GAAP) |
$ |
33 |
|
$ |
110 |
Transformation and restructuring costs |
|
27 |
|
|
8 |
Acquisition-related amortization of intangibles |
|
41 |
|
|
20 |
Acquisition-related costs |
|
5 |
|
|
10 |
Russia |
|
18 |
|
|
— |
Operating Income (Non-GAAP) |
$ |
124 |
|
$ |
148 |
Reconciliation of Net Income from Continuing Operations Attributable to NCR (GAAP) to Earnings Before Interest,
|
|||||||
$ in millions |
Q1 2022 |
|
Q1 2021 |
||||
Net Income (Loss) from Continuing Operations Attributable to NCR (GAAP) |
$ |
(33 |
) |
|
$ |
30 |
|
Transformation and restructuring costs |
|
27 |
|
|
|
8 |
|
Acquisition-related amortization of intangibles |
|
41 |
|
|
|
20 |
|
Acquisition-related costs |
|
5 |
|
|
|
27 |
|
Depreciation and amortization (excluding acquisition-related amortization of intangibles) |
|
103 |
|
|
|
70 |
|
Interest expense |
|
63 |
|
|
|
45 |
|
Interest income |
|
(1 |
) |
|
|
(3 |
) |
Income tax expense (benefit) |
|
13 |
|
|
|
17 |
|
Stock-based compensation expense |
|
34 |
|
|
|
44 |
|
Russia |
|
19 |
|
|
|
— |
|
Adjusted EBITDA (Non-GAAP) |
$ |
271 |
|
|
$ |
258 |
|
Reconciliation of Diluted Earnings Per Share from Continuing Operations (GAAP) to
|
||||||
|
Q1 2022 |
|
Q1 2021 |
|||
Diluted Earnings Per Share from Continuing Operations (GAAP) (1) |
$ |
(0.27 |
) |
|
$ |
0.19 |
Transformation and restructuring costs |
|
0.15 |
|
|
|
0.04 |
Acquisition-related amortization of intangibles |
|
0.23 |
|
|
|
0.11 |
Acquisition-related costs |
|
0.03 |
|
|
|
0.15 |
Russia |
|
0.13 |
|
|
|
— |
Diluted Earnings Per Share from Continuing Operations (Non-GAAP) (1) |
$ |
0.33 |
|
|
$ |
0.51 |
(1) |
Non-GAAP diluted EPS is determined using the conversion of the Series A Convertible Preferred Stock into common stock in the calculation of weighted average diluted shares outstanding. GAAP EPS is determined using the most dilutive measure, either including the impact of dividends or deemed dividends on the Company's Series A Convertible Preferred Stock in the calculation of net income or loss available to common stockholders or including the impact of the conversion of the Series A Convertible Preferred Stock into common stock in the calculation of the weighted average diluted shares outstanding. Therefore, GAAP diluted EPS and non-GAAP diluted EPS may not mathematically reconcile. |
Reconciliation of Net Cash Provided by Operating Activities (GAAP) to Free Cash Flow (Non-GAAP) |
|||||||
$ in millions |
Q1 2022 |
|
Q1 2021 |
||||
Net cash provided by (used in) operating activities |
$ |
38 |
|
|
$ |
155 |
|
Total capital expenditures |
|
(80 |
) |
|
|
(61 |
) |
Restricted cash settlement activity |
|
28 |
|
|
|
(5 |
) |
Pension contributions |
|
4 |
|
|
|
4 |
|
Free cash flow |
$ |
(10 |
) |
|
$ |
93 |
|
NCR CORPORATION |
|
||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
Schedule A |
||||
(Unaudited) |
|||||
(in millions, except per share amounts) |
|
For the Periods Ended March 31 |
||||||
|
2022 |
|
2021 |
||||
Revenue |
|
|
|
||||
Product |
$ |
516 |
|
|
$ |
482 |
|
Service |
|
1,350 |
|
|
|
1,062 |
|
Total Revenue |
|
1,866 |
|
|
|
1,544 |
|
Cost of products |
|
492 |
|
|
|
408 |
|
Cost of services |
|
963 |
|
|
|
722 |
|
Total gross margin |
|
411 |
|
|
|
414 |
|
% of Revenue |
|
22.0 |
% |
|
|
26.8 |
% |
Selling, general and administrative expenses |
|
313 |
|
|
|
238 |
|
Research and development expenses |
|
65 |
|
|
|
66 |
|
Income (loss) from operations |
|
33 |
|
|
|
110 |
|
% of Revenue |
|
1.8 |
% |
|
|
7.1 |
% |
Interest expense |
|
(63 |
) |
|
|
(45 |
) |
Other income (expense), net |
|
9 |
|
|
|
(17 |
) |
Total interest and other expense, net |
|
(54 |
) |
|
|
(62 |
) |
Income (loss) from continuing operations before income taxes |
|
(21 |
) |
|
|
48 |
|
% of Revenue |
|
(1.1 |
) % |
|
|
3.1 |
% |
Income tax expense (benefit) |
|
13 |
|
|
|
17 |
|
Income (loss) from continuing operations |
|
(34 |
) |
|
|
31 |
|
Loss from discontinued operations, net of tax |
|
(1 |
) |
|
|
— |
|
Net income (loss) |
|
(35 |
) |
|
|
31 |
|
Net income (loss) attributable to noncontrolling interests |
|
(1 |
) |
|
|
1 |
|
Net income (loss) attributable to NCR |
$ |
(34 |
) |
|
$ |
30 |
|
Amounts attributable to NCR common stockholders: |
|
|
|
||||
Income (loss) from continuing operations |
$ |
(33 |
) |
|
$ |
30 |
|
Dividends on convertible preferred stock |
|
(4 |
) |
|
|
(4 |
) |
Income (loss) from continuing operations attributable to NCR common stockholders |
|
(37 |
) |
|
|
26 |
|
Loss from discontinued operations, net of tax |
|
(1 |
) |
|
|
— |
|
Net income (loss) attributable to NCR common stockholders |
$ |
(38 |
) |
|
$ |
26 |
|
Income (loss) per share attributable to NCR common stockholders: |
|
|
|
||||
Income (loss) per common share from continuing operations |
|
|
|
||||
Basic |
$ |
(0.27 |
) |
|
$ |
0.20 |
|
Diluted (1) |
$ |
(0.27 |
) |
|
$ |
0.19 |
|
Net income (loss) per common share |
|
|
|
||||
Basic |
$ |
(0.28 |
) |
|
$ |
0.20 |
|
Diluted (1) |
$ |
(0.28 |
) |
|
$ |
0.19 |
|
Weighted average common shares outstanding |
|
|
|
||||
Basic |
|
135.7 |
|
|
|
130.0 |
|
Diluted (1) |
|
135.7 |
|
|
|
134.7 |
|
(1) |
Diluted EPS is determined using the most dilutive measure, either including the impact of the dividends and deemed dividends on NCR's Series A Convertible Preferred Shares in the calculation of net income or loss per common share from continuing operations and net income or loss per common share or including the impact of the conversion of such preferred stock into common stock in the calculation of the weighted average diluted shares outstanding. |
NCR CORPORATION |
|
||||
REVENUE AND ADJUSTED EBITDA SUMMARY |
Schedule B |
||||
(Unaudited) |
|||||
(in millions) |
|
For the Periods Ended March 31 |
|||||||||
|
2022 |
|
2021 |
|
% Change |
|||||
Revenue by segment |
|
|
|
|
|
|||||
Payments & Network |
$ |
299 |
|
|
$ |
22 |
|
|
1,259 |
% |
Digital Banking |
|
136 |
|
|
|
123 |
|
|
11 |
% |
Self-Service Banking |
|
611 |
|
|
|
628 |
|
|
(3 |
) % |
Retail |
|
546 |
|
|
|
520 |
|
|
5 |
% |
Hospitality |
|
211 |
|
|
|
179 |
|
|
18 |
% |
Other |
|
68 |
|
|
|
77 |
|
|
(12 |
) % |
Eliminations |
|
(8 |
) |
|
|
(5 |
) |
|
60 |
% |
Total segment revenue |
$ |
1,863 |
|
|
$ |
1,544 |
|
|
21 |
% |
Other adjustment |
|
3 |
|
|
|
— |
|
|
|
|
Total revenue |
$ |
1,866 |
|
|
$ |
1,544 |
|
|
21 |
% |
|
|
|
|
|
|
|||||
Adjusted EBITDA by segment |
|
|
|
|
|
|||||
Payments & Network |
$ |
98 |
|
|
$ |
3 |
|
|
3,167 |
% |
Payments & Network Adjusted EBITDA margin % |
|
32.8 |
% |
|
|
13.6 |
% |
|
|
|
Digital Banking |
|
56 |
|
|
|
54 |
|
|
4 |
% |
Digital Banking Adjusted EBITDA margin % |
|
41.2 |
% |
|
|
43.9 |
% |
|
|
|
Self-Service Banking |
|
112 |
|
|
|
137 |
|
|
(18 |
) % |
Self-Service Banking Adjusted EBITDA margin % |
|
18.3 |
% |
|
|
21.8 |
% |
|
|
|
Retail |
|
67 |
|
|
|
98 |
|
|
(32 |
) % |
Retail Adjusted EBITDA margin % |
|
12.3 |
% |
|
|
18.8 |
% |
|
|
|
Hospitality |
|
41 |
|
|
|
36 |
|
|
14 |
% |
Hospitality Adjusted EBITDA margin % |
|
19.4 |
% |
|
|
20.1 |
% |
|
|
|
Corporate and Other (1) |
|
(97 |
) |
|
|
(67 |
) |
|
45 |
% |
Eliminations |
|
(6 |
) |
|
|
(3 |
) |
|
100 |
% |
Total Adjusted EBITDA |
$ |
271 |
|
|
$ |
258 |
|
|
5 |
% |
Total Adjusted EBITDA margin % |
|
14.5 |
% |
|
|
16.7 |
% |
|
|
(1) |
Corporate and Other includes income and expenses related to corporate functions that are not specifically attributable to an individual reportable segment along with any immaterial operating segment(s). |
NCR CORPORATION |
|
||||
CONSOLIDATED BALANCE SHEETS |
Schedule C |
||||
(Unaudited) |
|||||
(in millions, except per share amounts) |
|
March 31, 2022 |
|
December 31, 2021 |
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
412 |
|
|
$ |
447 |
|
Accounts receivable, net of allowances of $28 and $24 as of March 31, 2022 and December 31, 2021, respectively |
|
1,071 |
|
|
|
959 |
|
Inventories |
|
805 |
|
|
|
754 |
|
Restricted cash |
|
273 |
|
|
|
295 |
|
Other current assets |
|
415 |
|
|
|
421 |
|
Total current assets |
|
2,976 |
|
|
|
2,876 |
|
Property, plant and equipment, net |
|
680 |
|
|
|
703 |
|
Goodwill |
|
4,570 |
|
|
|
4,519 |
|
Intangibles, net |
|
1,309 |
|
|
|
1,316 |
|
Operating lease assets |
|
395 |
|
|
|
419 |
|
Prepaid pension cost |
|
294 |
|
|
|
300 |
|
Deferred income taxes |
|
716 |
|
|
|
732 |
|
Other assets |
|
775 |
|
|
|
776 |
|
Total assets |
$ |
11,715 |
|
|
$ |
11,641 |
|
Liabilities and stockholders’ equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Short-term borrowings |
$ |
83 |
|
|
$ |
57 |
|
Accounts payable |
|
901 |
|
|
|
826 |
|
Payroll and benefits liabilities |
|
229 |
|
|
|
389 |
|
Contract liabilities |
|
625 |
|
|
|
516 |
|
Settlement liabilities |
|
235 |
|
|
|
263 |
|
Other current liabilities |
|
757 |
|
|
|
757 |
|
Total current liabilities |
|
2,830 |
|
|
|
2,808 |
|
Long-term debt |
|
5,516 |
|
|
|
5,505 |
|
Pension and indemnity plan liabilities |
|
773 |
|
|
|
789 |
|
Postretirement and postemployment benefits liabilities |
|
119 |
|
|
|
119 |
|
Income tax accruals |
|
115 |
|
|
|
116 |
|
Operating lease liabilities |
|
375 |
|
|
|
388 |
|
Other liabilities |
|
388 |
|
|
|
383 |
|
Total liabilities |
|
10,116 |
|
|
|
10,108 |
|
Series A convertible preferred stock: par value $0.01 per share, 3.0 shares authorized, 0.3 issued and outstanding as of March 31, 2022 and December 31, 2021, respectively; redemption amount and liquidation preference of $276 as of March 31, 2022 and December 31, 2021, respectively |
|
274 |
|
|
|
274 |
|
Stockholders' equity |
|
|
|
||||
NCR stockholders' equity: |
|
|
|
||||
Preferred stock: par value $0.01 per share, 100.0 shares authorized, no shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively |
|
— |
|
|
|
— |
|
Common stock: par value $0.01 per share, 500.0 shares authorized, 136.3 and 132.2 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively |
|
1 |
|
|
|
1 |
|
Paid-in capital |
|
602 |
|
|
|
515 |
|
Retained earnings |
|
993 |
|
|
|
1,031 |
|
Accumulated other comprehensive loss |
|
(273 |
) |
|
|
(291 |
) |
Total NCR stockholders' equity |
|
1,323 |
|
|
|
1,256 |
|
Noncontrolling interests in subsidiaries |
|
2 |
|
|
|
3 |
|
Total stockholders' equity |
|
1,325 |
|
|
|
1,259 |
|
Total liabilities and stockholders' equity |
$ |
11,715 |
|
|
$ |
11,641 |
|
NCR CORPORATION |
|||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
Schedule D |
||||
(Unaudited) |
|||||
(in millions) |
|
For the Periods Ended March 31 |
||||||
|
Three Months |
||||||
|
2022 |
|
2021 |
||||
Operating activities |
|
|
|
||||
Net income (loss) |
$ |
(35 |
) |
|
$ |
31 |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
||||
Loss from discontinued operations |
|
1 |
|
|
|
— |
|
Depreciation and amortization |
|
147 |
|
|
|
92 |
|
Stock-based compensation expense |
|
34 |
|
|
|
44 |
|
Deferred income taxes |
|
4 |
|
|
|
7 |
|
Gain (loss) on disposal of property, plant and equipment |
|
2 |
|
|
|
— |
|
Changes in assets and liabilities: |
|
|
|
||||
Receivables |
|
(129 |
) |
|
|
(91 |
) |
Inventories |
|
(77 |
) |
|
|
(17 |
) |
Current payables and accrued expenses |
|
(63 |
) |
|
|
34 |
|
Contract liabilities |
|
105 |
|
|
|
74 |
|
Employee benefit plans |
|
(8 |
) |
|
|
(10 |
) |
Other assets and liabilities |
|
57 |
|
|
|
(9 |
) |
Net cash provided by operating activities |
$ |
38 |
|
|
$ |
155 |
|
Investing activities |
|
|
|
||||
Expenditures for property, plant and equipment |
$ |
(15 |
) |
|
$ |
(10 |
) |
Additions to capitalized software |
|
(65 |
) |
|
|
(51 |
) |
Business acquisitions, net of cash acquired |
|
(1 |
) |
|
|
(157 |
) |
Purchases of short-term investments |
|
— |
|
|
|
(5 |
) |
Proceeds from sales of short-term investments |
|
— |
|
|
|
5 |
|
Other investing activities, net |
|
(5 |
) |
|
|
— |
|
Net cash used in investing activities |
$ |
(86 |
) |
|
$ |
(218 |
) |
Financing activities |
|
|
|
||||
Short term borrowings, net |
$ |
2 |
|
|
$ |
— |
|
Payments on term credit facilities |
|
(2 |
) |
|
|
(8 |
) |
Payments on revolving credit facilities |
|
(279 |
) |
|
|
(318 |
) |
Borrowings on revolving credit facilities |
|
312 |
|
|
|
448 |
|
Debt issuance costs and bridge commitment fees |
|
— |
|
|
|
(1 |
) |
Cash dividend paid for Series A preferred shares dividends |
|
(4 |
) |
|
|
(4 |
) |
Proceeds from employee stock plans |
|
6 |
|
|
|
8 |
|
Tax withholding payments on behalf of employees |
|
(36 |
) |
|
|
(22 |
) |
Net change in client funds obligations |
|
6 |
|
|
|
— |
|
Principal payments for finance lease obligations |
|
(4 |
) |
|
|
(4 |
) |
Other financing activities |
|
— |
|
|
|
(1 |
) |
Net cash provided by (used in) financing activities |
$ |
1 |
|
|
$ |
98 |
|
Cash flows from discontinued operations |
|
|
|
||||
Net cash provided by (used in) discontinued operations |
|
(4 |
) |
|
|
(44 |
) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
(6 |
) |
|
|
(6 |
) |
Increase (decrease) in cash, cash equivalents, and restricted cash |
$ |
(57 |
) |
|
$ |
(15 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
749 |
|
|
|
406 |
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
692 |
|
|
$ |
391 |
|
Рост выручки на 21% и сильный импульс в реализации Стратегических инициатив
АТЛАНТА -- (BUSINESS WIRE)--Корпорация NCR (NYSE: NCR) сообщила сегодня о финансовых результатах за три месяца, закончившихся 31 марта 2022 года. Первый квартал и другие недавние события включают:
“Наши результаты за первый квартал свидетельствуют о высокой эффективности и хорошей динамике наших стратегических инициатив по росту, несмотря на значительные макроэкономические и геополитические проблемы”, - сказал Майкл Хейфорд, главный исполнительный директор. “Как глобальная компания, стечение внешних факторов повлияло на NCR. Инфляция взлетела до самого высокого уровня более чем за 40 лет, процентные ставки росли быстрее, в Восточной Европе разразилась война, и распространился вариант Омикрона. Множество встречных ветров негативно сказалось на доходах и расходах. Несмотря на эти беспрецедентные проблемы, мы добились существенного прогресса в реализации стратегических инициатив по росту, которые превращают NCR в компанию "Программное обеспечение как услуга" с более широким спектром повторяющихся потоков доходов. Спрос и активность заказов на нашу программную платформу и платежные решения высоки, и мы по-прежнему уверены в трансформации нашей компании”.
Г-н Хейфорд продолжил: “Мы продолжаем активно анализировать, с помощью наших консультантов, возможные пути продвижения по мере продвижения нашего процесса стратегического анализа под руководством Совета директоров и продолжаем оценивать стратегические альтернативы для повышения акционерной стоимости”.
В этом выпуске мы используем определенные показатели, не относящиеся к GAAP. Эти показатели, не относящиеся к GAAP, включают “свободный денежный поток”, “Скорректированную EBITDA” и другие со словами “не относящиеся к GAAP” в их названиях. Эти показатели, не относящиеся к GAAP, перечислены, описаны и сверены с их наиболее непосредственно сопоставимыми показателями GAAP в разделе “Финансовые показатели, не относящиеся к GAAP” далее в этом выпуске.
Операционные результаты за Первый квартал 2022 года
С 1 января 2022 года Компания перестроила свои отчетные сегменты в соответствии с изменениями в своей операционной модели, структуре управления и организационных обязанностях. Предыдущие периоды были реклассифицированы в соответствии с представлением за текущий период.
Выручка за первый квартал в размере $1,866 млн увеличилась на 21% в годовом исчислении. В следующей таблице показана выручка за первый квартал:
$ in millions |
Q1 2022 |
|
Q1 2021 |
|
% Increase
|
|||||
Payments & Network (1) |
$ |
299 |
|
|
$ |
22 |
|
|
1,259 |
% |
Digital Banking |
|
136 |
|
|
|
123 |
|
|
11 |
% |
Self-Service Banking |
|
611 |
|
|
|
628 |
|
|
(3 |
) % |
Retail |
|
546 |
|
|
|
520 |
|
|
5 |
% |
Hospitality |
|
211 |
|
|
|
179 |
|
|
18 |
% |
Other |
|
68 |
|
|
|
77 |
|
|
(12 |
) % |
Eliminations (2) |
|
(8 |
) |
|
|
(5 |
) |
|
60 |
% |
Total segment revenue |
$ |
1,863 |
|
|
$ |
1,544 |
|
|
21 |
% |
Other adjustment (3) |
|
3 |
|
|
|
— |
|
|
|
|
Total revenue |
$ |
1,866 |
|
|
$ |
1,544 |
|
|
21 |
% |
|
|
|
|
|
|
|||||
Recurring Revenue |
$ |
1,179 |
|
|
$ |
874 |
|
|
35 |
% |
Recurring Revenue % |
|
63 |
% |
|
|
57 |
% |
|
|
|
(1) |
First quarter 2022 revenue includes the results of the Cardtronics business, which was acquired on June 21, 2021, and the results of the LibertyX business, which was acquired January 5, 2022. |
|
(2) |
Eliminations includes revenues from contracts with customers and the related costs that are reported in the Payments & Network segment as well as in the Retail or Hospitality segments, including merchant acquiring services that are monetized via payments. |
|
(3) |
Other adjustment reflects the revenue attributable to the Company's operations in Russia for the three months ending March 31, 2022 that were excluded from management's measure of revenue due to our announcement to suspend sales to Russia and anticipated orderly wind down of our operations in Russia. The revenue attributable to the Russia operations for the prior period of $8 million are included in the respective segments. Refer to the section entitled “Non-GAAP Financial Measures” for additional information. |
На наши результаты за первый квартал негативно повлияло беспрецедентное сочетание очередной вирусной волны, войны в Восточной Европе и резкого роста расходов. Эти внешние факторы в совокупности привели к сокращению выручки или задержкам более чем на 90 миллионов долларов и снижению скорректированной EBITDA более чем на 70 миллионов долларов как из-за снижения выручки, так и из-за резкого увеличения затрат на компоненты, перевозку, топливо и проценты. В настоящее время мы ожидаем последовательного улучшения финансовых показателей в каждом из оставшихся трех кварталов этого года при условии, что внешние условия не ухудшатся, а также по мере дальнейшего повышения цен и повышения эффективности затрат. В настоящее время мы не ожидаем, что операционные проблемы, с которыми мы сталкиваемся, отвлекут наше внимание от дальнейшего продвижения наших стратегических инициатив по росту и продолжающейся трансформации NCR в компанию, ориентированную на программное обеспечение и предоставляющую услуги.
Мы корректируем наши прогнозы на весь год в сторону понижения, чтобы отразить как снижение результатов за первый квартал, так и ожидаемое чистое остаточное воздействие на оставшуюся часть года. Теперь мы ожидаем следующего:
|
Current Guidance |
|
Prior Guidance |
|
|
|
|
|
|
Revenue |
~ $8 billion |
|
$8.0 - $8.2 billion |
|
Adjusted EBITDA |
$1.4 - $1.5 billion |
|
$1.5 - $1.575 billion |
|
Free Cash Flow |
$400 - $500 million |
|
$500 - $600 million |
|
Non-GAAP Diluted EPS |
$2.70 - $3.20 |
|
$3.25 - $3.55 |
|
Что касается наших Скорректированных показателей EBITDA, Свободного денежного потока и разводненной прибыли на акцию, не относящихся к GAAP, мы не предоставляем сверку соответствующих показателей GAAP, поскольку мы не можем с достаточной степенью уверенности прогнозировать выверку статей, которые могут повлиять на чистую прибыль по GAAP от продолжающейся деятельности, денежный поток по GAAP от операционной деятельности деятельности и разводненной прибыли на акцию по ОПБУ от продолжения деятельности без необоснованных усилий. Выверяемые статьи - это, прежде всего, будущие последствия специальных налоговых статей, операций со структурой капитала, реструктуризации, операций с пенсионными накоплениями, приобретений или отчуждений или других событий. Эти выверяющие статьи являются неопределенными, зависят от различных факторов и могут существенно повлиять, как по отдельности, так и в совокупности, на показатели GAAP. Обратитесь к разделу “Финансовые показатели, не относящиеся к GAAP” для получения дополнительной информации об использовании нами финансовых показателей, не относящихся к GAAP.
Стратегический обзор
Совет директоров NCR продолжает проводить всеобъемлющий процесс стратегического анализа, в ходе которого будет оценен весь спектр стратегических альтернатив, доступных NCR, для повышения ценности для всех акционеров. BofA Securities, Inc., Goldman Sachs & Co. LLC и Evercore Group L.L.C. выступают в качестве финансовых консультантов NCR.
Эти стратегические альтернативы могут включать отчуждение существенного бизнеса или активов Компании, выделение, слияние или продажу Компании, другие структурные изменения, изменения в брендинге или географическом местоположении или другие сделки или альтернативы.
Процесс стратегического обзора под руководством правления продолжается. Правление не установило сроки завершения своего обзора стратегических альтернатив. NCR не намерена комментировать процесс стратегического анализа до тех пор, пока NCR не определит, что дальнейшее раскрытие информации является выгодным или требуется по закону.
Акционерам сообщается, что не может быть уверенности в том, что стратегический обзор приведет к совершению сделки, или, если сделка будет продолжена, что такая сделка будет завершена.
Конференц-связь по доходам за Первый квартал 2022 года
На сегодня в 4:30 вечера по восточному времени запланировано селекторное совещание для обсуждения результатов первого квартала 2022 года. Доступ к конференц-звонку и сопровождающим его слайдам, а также к воспроизведению разговора доступны на веб-сайте NCR по адресу http://investor .NCR.com . Кроме того, прямой вызов можно получить, набрав 888-820-9413 (бесплатный звонок в США / Канаде) или 786-460-7169 (международный звонок) и введя пароль участника 2623877.
Более подробная информация о доходах NCR за первый квартал, включая дополнительную финансовую информацию и анализ, доступна на веб-сайте NCR по связям с инвесторами по адресу http://investor .NCR.com /.
О корпорации NCR
NCR Corporation (NYSE: NCR) - ведущий поставщик корпоративных технологий, который управляет магазинами, ресторанами и самостоятельным банковским обслуживанием. Штаб-квартира NCR находится в Атланте, штат Джорджия, и насчитывает 38 000 сотрудников по всему миру. NCR является товарным знаком корпорации NCR в Соединенных Штатах и других странах.
Веб-сайт: www.NCR.com Твиттер: @NCRCorporation Facebook: www.facebook.com/ncrcorp LinkedIn: https://www.linkedin.com/company/NCR-corporation YouTube: www.youtube.com/user/ncrcorporation
Предостерегающие заявления
Настоящий релиз содержит “заявления прогнозного характера” по смыслу Раздела 27A Закона о ценных бумагах 1933 года с внесенными в него поправками и Раздела 21E Закона о ценных бумагах и биржах 1934 года с внесенными в него поправками в соответствии с положениями о безопасной гавани Закона о реформе судебных разбирательств по частным ценным бумагам 1995 года (“Закон”). В прогнозных заявлениях используются такие слова, как “ожидать”, “предвидеть”, “прогноз”, “намереваться”, “планировать”, “уверен”, “верю”, “будет”, “должен”, “хотел бы”, “потенциал”, “позиционирование”, “предлагается”, “цель”, “может”, “может” и слова с аналогичным значением, а также другие слова или выражения, относящиеся к будущим событиям, условиям или обстоятельствам. Мы намерены, чтобы эти прогнозные заявления подпадали под действие положений Закона о безопасной гавани для прогнозных заявлений, содержащихся в Законе. Заявления, которые описывают или касаются планов, целей, намерений, стратегий или финансовых перспектив NCR, а также заявления, которые не относятся к историческим или текущим фактам, являются примерами прогнозные заявления. Примеры прогнозных заявлений в этом выпуске включают, помимо прочего, заявления относительно: макроэкономических и геополитических проблем и их последствий, включая, но не ограничиваясь, инфляционное давление на компоненты, фрахт, топливо и проценты, война в Восточной Европе, повышение процентных ставок и продолжающиеся волны COVIDпандемия -19; NCR сосредоточена на продвижении наших стратегических инициатив по росту и преобразовании NCR в компанию, предоставляющую программное обеспечение как услугу; ожидания относительно спроса и активности заказов на нашу программную платформу и платежные решения, а также наши долгосрочные перспективы; финансовый прогноз NCR на весь 2022 год, а также ожидания и предположения относительно финансовые показатели в 2022 году (включая раздел, озаглавленный “Перспективы на 2022 год”); и всеобъемлющий стратегический обзор для оценки стратегических альтернатив (которые могут включать продажу существенного бизнеса или активов Компании, выделение, слияние или продажу Компании, другие структурные изменения, изменения в брендинге или географический охват или другие операции или альтернативы). Прогнозные заявления основаны на наших текущих убеждениях, ожиданиях и предположениях, которые могут оказаться неточными и связаны с рядом известных и неизвестных рисков и неопределенностей, многие из которых находятся вне контроля NCR. Прогнозные заявления не являются гарантией будущих результатов, и существует ряд важных факторов, которые могут привести к тому, что фактические результаты и результаты будут существенно отличаться от результатов, предусмотренных такими прогнозными заявлениями, включая факторы, связанные с:
Дополнительную информацию об этих и других факторах можно найти в заявках Компании в Комиссию по ценным бумагам и биржам США, включая последний годовой отчет Компании по форме 10-K, квартальные отчеты по форме 10-Q и текущие отчеты по Форме 8-K. Любое прогнозное заявление относится только к дате, на которую оно сделано. Компания не берет на себя никаких обязательств по публичному обновлению или пересмотру любых прогнозных заявлений, будь то в результате новой информации, будущих событий или иным образом, за исключением случаев, предусмотренных законом.
Финансовые показатели, Не относящиеся к ОПБУ
Финансовые показатели, Не относящиеся к ОПБУ. В то время как NCR сообщает о своих результатах в соответствии с общепринятыми принципами бухгалтерского учета в Соединенных Штатах или GAAP, в этом выпуске NCR также использует показатели, не относящиеся к GAAP, перечисленные и описанные ниже.
Разводненная прибыль на акцию (EPS), Валовая прибыль (не по GAAP), Ставка валовой прибыли (не по GAAP), Операционная прибыль (не по GAAP) и Чистая прибыль от Продолжающейся деятельности, относящаяся к NCR (не по GAAP). Разводненная прибыль на акцию NCR не по GAAP, валовая прибыль (не по GAAP), ставка валовой прибыли (не по GAAP), операционный доход (не по GAAP) и чистый доход от продолжающейся деятельности, относящийся к NCR (не по GAAP), определяются путем исключения, если применимо, пенсионной надбавки к-корректировки рынка, пенсионные выплаты, сокращение пенсий и специальные пенсионные пособия при прекращении, а также другие специальные статьи, включая амортизацию нематериальных активов, связанных с приобретением, и деятельность по преобразованию и реструктуризации, из прибыли на акцию по ОПБУ NCR, валовой прибыли, ставки валовой прибыли, расходов, доходов от операций, ставки операционной маржи, прочего (расходы), расходы по налогу на прибыль, эффективная ставка налога на прибыль и чистый доход от продолжающейся деятельности, относящийся к NCR, соответственно. Из-за неоперативного характера этих пенсионных и других специальных статей руководство NCR использует эти показатели, не относящиеся к GAAP, для оценки операционных показателей за год. NCR считает, что эти показатели полезны для инвесторов, поскольку они обеспечивают более полное понимание основных операционных показателей NCR, а также согласованность и сопоставимость с прошлыми отчетами NCR о финансовых результатах.
Скорректированная Прибыль до вычета процентов, Налогов, Износа и Амортизации (Скорректированная EBITDA). NCR определяет скорректированную EBITDA за данный период на основе чистой прибыли по ОПБУ от продолжающейся деятельности, относящейся к NCR, плюс процентные расходы, нетто; плюс расходы по налогу на прибыль (льготы); плюс износ и амортизация; плюс расходы на компенсацию на основе акций; плюс прочие доходы (расходы); плюс пенсионная надбавка к рынку корректировки, пенсионные выплаты, сокращение пенсий и специальные пенсионные пособия при прекращении службы и другие специальные статьи, включая амортизацию нематериальных активов, связанных с приобретением, и расходы на реструктуризацию, среди прочего. NCR использует скорректированную EBITDA для управления и оценки эффективности своих бизнес-сегментов. NCR также использует скорректированную EBITDA для управления и определения эффективности своих бизнес-менеджеров и в качестве основы для поощрительной компенсации. NCR считает, что Скорректированный показатель EBITDA предоставляет полезную информацию инвесторам, поскольку он является показателем силы и эффективности текущих бизнес-операций Компании, включая ее способность финансировать дискреционные расходы, такие как капитальные затраты, стратегические приобретения и другие инвестиции.
Скорректированная рентабельность по EBITDA рассчитывается на основе скорректированной EBITDA в процентах от общей выручки.
Специальный пункт, связанный с Россией Война в Восточной Европе и связанные с ней санкции, введенные против России и связанных с ней субъектов Соединенными Штатами и другими юрисдикциями, потребовали от нас упорядоченного сворачивания наших операций в России, начиная с первого квартала 2022 года. В результате за три месяца, закончившихся 31 марта 2022 года, наше представление описанных выше мер, не относящихся к GAAP, исключает влияние наших операционных результатов в России, а также влияние обесценения, предпринятого для списания балансовой стоимости активов и обязательств, выходных пособий и оценки возможность получения при признании выручки. Мы считаем это особым пунктом, и руководство пересмотрело результаты своих бизнес-сегментов, исключив эти воздействия. Мы не корректировали представление за предыдущий год из-за несущественного влияния России на доходы от продолжающейся деятельности за три месяца, закончившихся 31 марта 2021 года.
Свободный Денежный Поток. NCR определяет свободный денежный поток как чистые денежные средства, полученные от (использованные в) операционной деятельности, за вычетом капитальных затрат на основные средства, за вычетом дополнений к капитализированному программному обеспечению, плюс / минус ограниченная деятельность по расчетам наличными, плюс статьи, связанные с приобретением, за вычетом влияния от первоначальной продажи торговой дебиторской задолженности по соглашению вступила в силу в течение 3-го квартала 2021 года, а также плюс пенсионные взносы и пенсионные выплаты. Руководство NCR использует свободный денежный поток для оценки финансовых показателей Компании и считает, что это полезно для инвесторов, поскольку оно связывает операционный денежный поток Компании с капиталом, который расходуется на продолжение и улучшение бизнес-операций. В частности, свободный денежный поток указывает на сумму денежных средств, полученных после капитальных затрат, которые могут быть использованы, среди прочего, для инвестиций в существующие предприятия Компании, стратегических приобретений, укрепления баланса Компании, выкупа акций Компании и погашения долговых обязательств Компании. Свободный денежный поток не представляет собой остаточный денежный поток, доступный для дискреционных расходов, поскольку могут существовать другие недискреционные расходы, которые не вычитаются из показателя. Свободный денежный поток не имеет единообразных определений в соответствии с GAAP, и, следовательно, определения NCR могут отличаться от определений этих показателей другими компаниями.
Определения и расчеты NCR этих показателей, не относящихся к GAAP, могут отличаться от показателей с аналогичным названием, сообщаемых другими компаниями, и поэтому не могут быть сопоставлены с аналогичными показателями других компаний. Эти показатели, не относящиеся к GAAP, не должны рассматриваться как заменяющие или превосходящие результаты, определенные в соответствии с GAAP.
Использование определенных терминов
Повторяющийся доход включает в себя все потоки доходов от контрактов, по которым существует предсказуемая структура доходов, которая будет происходить через регулярные промежутки времени с относительно высокой степенью уверенности. Сюда входят доходы от обслуживания оборудования и программного обеспечения, доходы от облачных вычислений, доходы от обработки платежей, доходы от обмена и сети, а также определенные соглашения о профессиональных услугах, а также соглашения о предоставлении лицензий на программное обеспечение на основе сроков, которые включают права клиента на расторжение договора.
Reconciliation of Gross Margin (GAAP) to Gross Margin (Non-GAAP) |
|||||
$ in millions |
Q1 2022 |
|
Q1 2021 |
||
Gross Margin (GAAP) |
$ |
411 |
|
$ |
414 |
Transformation and restructuring costs |
|
5 |
|
|
4 |
Acquisition-related amortization of intangibles |
|
19 |
|
|
7 |
Russia |
|
14 |
|
|
— |
Gross Margin (Non-GAAP) |
$ |
449 |
|
$ |
425 |
Reconciliation of Gross Margin Rate (GAAP) to Gross Margin Rate (Non-GAAP) |
|||||
|
Q1 2022 |
|
Q1 2021 |
||
Gross Margin Rate (GAAP) |
22.0 |
% |
|
26.8 |
% |
Transformation and restructuring costs |
0.3 |
% |
|
0.3 |
% |
Acquisition-related amortization of intangibles |
1.0 |
% |
|
0.4 |
% |
Russia |
0.8 |
% |
|
— |
% |
Gross Margin Rate (Non-GAAP) |
24.1 |
% |
|
27.5 |
% |
Reconciliation of Income from Operations (GAAP) to Operating Income (Non-GAAP) |
|||||
$ in millions |
Q1 2022 |
|
Q1 2021 |
||
Income (Loss) from Operations (GAAP) |
$ |
33 |
|
$ |
110 |
Transformation and restructuring costs |
|
27 |
|
|
8 |
Acquisition-related amortization of intangibles |
|
41 |
|
|
20 |
Acquisition-related costs |
|
5 |
|
|
10 |
Russia |
|
18 |
|
|
— |
Operating Income (Non-GAAP) |
$ |
124 |
|
$ |
148 |
Reconciliation of Net Income from Continuing Operations Attributable to NCR (GAAP) to Earnings Before Interest,
|
|||||||
$ in millions |
Q1 2022 |
|
Q1 2021 |
||||
Net Income (Loss) from Continuing Operations Attributable to NCR (GAAP) |
$ |
(33 |
) |
|
$ |
30 |
|
Transformation and restructuring costs |
|
27 |
|
|
|
8 |
|
Acquisition-related amortization of intangibles |
|
41 |
|
|
|
20 |
|
Acquisition-related costs |
|
5 |
|
|
|
27 |
|
Depreciation and amortization (excluding acquisition-related amortization of intangibles) |
|
103 |
|
|
|
70 |
|
Interest expense |
|
63 |
|
|
|
45 |
|
Interest income |
|
(1 |
) |
|
|
(3 |
) |
Income tax expense (benefit) |
|
13 |
|
|
|
17 |
|
Stock-based compensation expense |
|
34 |
|
|
|
44 |
|
Russia |
|
19 |
|
|
|
— |
|
Adjusted EBITDA (Non-GAAP) |
$ |
271 |
|
|
$ |
258 |
|
Reconciliation of Diluted Earnings Per Share from Continuing Operations (GAAP) to
|
||||||
|
Q1 2022 |
|
Q1 2021 |
|||
Diluted Earnings Per Share from Continuing Operations (GAAP) (1) |
$ |
(0.27 |
) |
|
$ |
0.19 |
Transformation and restructuring costs |
|
0.15 |
|
|
|
0.04 |
Acquisition-related amortization of intangibles |
|
0.23 |
|
|
|
0.11 |
Acquisition-related costs |
|
0.03 |
|
|
|
0.15 |
Russia |
|
0.13 |
|
|
|
— |
Diluted Earnings Per Share from Continuing Operations (Non-GAAP) (1) |
$ |
0.33 |
|
|
$ |
0.51 |
(1) |
Non-GAAP diluted EPS is determined using the conversion of the Series A Convertible Preferred Stock into common stock in the calculation of weighted average diluted shares outstanding. GAAP EPS is determined using the most dilutive measure, either including the impact of dividends or deemed dividends on the Company's Series A Convertible Preferred Stock in the calculation of net income or loss available to common stockholders or including the impact of the conversion of the Series A Convertible Preferred Stock into common stock in the calculation of the weighted average diluted shares outstanding. Therefore, GAAP diluted EPS and non-GAAP diluted EPS may not mathematically reconcile. |
Reconciliation of Net Cash Provided by Operating Activities (GAAP) to Free Cash Flow (Non-GAAP) |
|||||||
$ in millions |
Q1 2022 |
|
Q1 2021 |
||||
Net cash provided by (used in) operating activities |
$ |
38 |
|
|
$ |
155 |
|
Total capital expenditures |
|
(80 |
) |
|
|
(61 |
) |
Restricted cash settlement activity |
|
28 |
|
|
|
(5 |
) |
Pension contributions |
|
4 |
|
|
|
4 |
|
Free cash flow |
$ |
(10 |
) |
|
$ |
93 |
|
NCR CORPORATION |
|
||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
Schedule A |
||||
(Unaudited) |
|||||
(in millions, except per share amounts) |
|
For the Periods Ended March 31 |
||||||
|
2022 |
|
2021 |
||||
Revenue |
|
|
|
||||
Product |
$ |
516 |
|
|
$ |
482 |
|
Service |
|
1,350 |
|
|
|
1,062 |
|
Total Revenue |
|
1,866 |
|
|
|
1,544 |
|
Cost of products |
|
492 |
|
|
|
408 |
|
Cost of services |
|
963 |
|
|
|
722 |
|
Total gross margin |
|
411 |
|
|
|
414 |
|
% of Revenue |
|
22.0 |
% |
|
|
26.8 |
% |
Selling, general and administrative expenses |
|
313 |
|
|
|
238 |
|
Research and development expenses |
|
65 |
|
|
|
66 |
|
Income (loss) from operations |
|
33 |
|
|
|
110 |
|
% of Revenue |
|
1.8 |
% |
|
|
7.1 |
% |
Interest expense |
|
(63 |
) |
|
|
(45 |
) |
Other income (expense), net |
|
9 |
|
|
|
(17 |
) |
Total interest and other expense, net |
|
(54 |
) |
|
|
(62 |
) |
Income (loss) from continuing operations before income taxes |
|
(21 |
) |
|
|
48 |
|
% of Revenue |
|
(1.1 |
) % |
|
|
3.1 |
% |
Income tax expense (benefit) |
|
13 |
|
|
|
17 |
|
Income (loss) from continuing operations |
|
(34 |
) |
|
|
31 |
|
Loss from discontinued operations, net of tax |
|
(1 |
) |
|
|
— |
|
Net income (loss) |
|
(35 |
) |
|
|
31 |
|
Net income (loss) attributable to noncontrolling interests |
|
(1 |
) |
|
|
1 |
|
Net income (loss) attributable to NCR |
$ |
(34 |
) |
|
$ |
30 |
|
Amounts attributable to NCR common stockholders: |
|
|
|
||||
Income (loss) from continuing operations |
$ |
(33 |
) |
|
$ |
30 |
|
Dividends on convertible preferred stock |
|
(4 |
) |
|
|
(4 |
) |
Income (loss) from continuing operations attributable to NCR common stockholders |
|
(37 |
) |
|
|
26 |
|
Loss from discontinued operations, net of tax |
|
(1 |
) |
|
|
— |
|
Net income (loss) attributable to NCR common stockholders |
$ |
(38 |
) |
|
$ |
26 |
|
Income (loss) per share attributable to NCR common stockholders: |
|
|
|
||||
Income (loss) per common share from continuing operations |
|
|
|
||||
Basic |
$ |
(0.27 |
) |
|
$ |
0.20 |
|
Diluted (1) |
$ |
(0.27 |
) |
|
$ |
0.19 |
|
Net income (loss) per common share |
|
|
|
||||
Basic |
$ |
(0.28 |
) |
|
$ |
0.20 |
|
Diluted (1) |
$ |
(0.28 |
) |
|
$ |
0.19 |
|
Weighted average common shares outstanding |
|
|
|
||||
Basic |
|
135.7 |
|
|
|
130.0 |
|
Diluted (1) |
|
135.7 |
|
|
|
134.7 |
|
(1) |
Diluted EPS is determined using the most dilutive measure, either including the impact of the dividends and deemed dividends on NCR's Series A Convertible Preferred Shares in the calculation of net income or loss per common share from continuing operations and net income or loss per common share or including the impact of the conversion of such preferred stock into common stock in the calculation of the weighted average diluted shares outstanding. |
NCR CORPORATION |
|
||||
REVENUE AND ADJUSTED EBITDA SUMMARY |
Schedule B |
||||
(Unaudited) |
|||||
(in millions) |
|
For the Periods Ended March 31 |
|||||||||
|
2022 |
|
2021 |
|
% Change |
|||||
Revenue by segment |
|
|
|
|
|
|||||
Payments & Network |
$ |
299 |
|
|
$ |
22 |
|
|
1,259 |
% |
Digital Banking |
|
136 |
|
|
|
123 |
|
|
11 |
% |
Self-Service Banking |
|
611 |
|
|
|
628 |
|
|
(3 |
) % |
Retail |
|
546 |
|
|
|
520 |
|
|
5 |
% |
Hospitality |
|
211 |
|
|
|
179 |
|
|
18 |
% |
Other |
|
68 |
|
|
|
77 |
|
|
(12 |
) % |
Eliminations |
|
(8 |
) |
|
|
(5 |
) |
|
60 |
% |
Total segment revenue |
$ |
1,863 |
|
|
$ |
1,544 |
|
|
21 |
% |
Other adjustment |
|
3 |
|
|
|
— |
|
|
|
|
Total revenue |
$ |
1,866 |
|
|
$ |
1,544 |
|
|
21 |
% |
|
|
|
|
|
|
|||||
Adjusted EBITDA by segment |
|
|
|
|
|
|||||
Payments & Network |
$ |
98 |
|
|
$ |
3 |
|
|
3,167 |
% |
Payments & Network Adjusted EBITDA margin % |
|
32.8 |
% |
|
|
13.6 |
% |
|
|
|
Digital Banking |
|
56 |
|
|
|
54 |
|
|
4 |
% |
Digital Banking Adjusted EBITDA margin % |
|
41.2 |
% |
|
|
43.9 |
% |
|
|
|
Self-Service Banking |
|
112 |
|
|
|
137 |
|
|
(18 |
) % |
Self-Service Banking Adjusted EBITDA margin % |
|
18.3 |
% |
|
|
21.8 |
% |
|
|
|
Retail |
|
67 |
|
|
|
98 |
|
|
(32 |
) % |
Retail Adjusted EBITDA margin % |
|
12.3 |
% |
|
|
18.8 |
% |
|
|
|
Hospitality |
|
41 |
|
|
|
36 |
|
|
14 |
% |
Hospitality Adjusted EBITDA margin % |
|
19.4 |
% |
|
|
20.1 |
% |
|
|
|
Corporate and Other (1) |
|
(97 |
) |
|
|
(67 |
) |
|
45 |
% |
Eliminations |
|
(6 |
) |
|
|
(3 |
) |
|
100 |
% |
Total Adjusted EBITDA |
$ |
271 |
|
|
$ |
258 |
|
|
5 |
% |
Total Adjusted EBITDA margin % |
|
14.5 |
% |
|
|
16.7 |
% |
|
|
(1) |
Corporate and Other includes income and expenses related to corporate functions that are not specifically attributable to an individual reportable segment along with any immaterial operating segment(s). |
NCR CORPORATION |
|
||||
CONSOLIDATED BALANCE SHEETS |
Schedule C |
||||
(Unaudited) |
|||||
(in millions, except per share amounts) |
|
March 31, 2022 |
|
December 31, 2021 |
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
412 |
|
|
$ |
447 |
|
Accounts receivable, net of allowances of $28 and $24 as of March 31, 2022 and December 31, 2021, respectively |
|
1,071 |
|
|
|
959 |
|
Inventories |
|
805 |
|
|
|
754 |
|
Restricted cash |
|
273 |
|
|
|
295 |
|
Other current assets |
|
415 |
|
|
|
421 |
|
Total current assets |
|
2,976 |
|
|
|
2,876 |
|
Property, plant and equipment, net |
|
680 |
|
|
|
703 |
|
Goodwill |
|
4,570 |
|
|
|
4,519 |
|
Intangibles, net |
|
1,309 |
|
|
|
1,316 |
|
Operating lease assets |
|
395 |
|
|
|
419 |
|
Prepaid pension cost |
|
294 |
|
|
|
300 |
|
Deferred income taxes |
|
716 |
|
|
|
732 |
|
Other assets |
|
775 |
|
|
|
776 |
|
Total assets |
$ |
11,715 |
|
|
$ |
11,641 |
|
Liabilities and stockholders’ equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Short-term borrowings |
$ |
83 |
|
|
$ |
57 |
|
Accounts payable |
|
901 |
|
|
|
826 |
|
Payroll and benefits liabilities |
|
229 |
|
|
|
389 |
|
Contract liabilities |
|
625 |
|
|
|
516 |
|
Settlement liabilities |
|
235 |
|
|
|
263 |
|
Other current liabilities |
|
757 |
|
|
|
757 |
|
Total current liabilities |
|
2,830 |
|
|
|
2,808 |
|
Long-term debt |
|
5,516 |
|
|
|
5,505 |
|
Pension and indemnity plan liabilities |
|
773 |
|
|
|
789 |
|
Postretirement and postemployment benefits liabilities |
|
119 |
|
|
|
119 |
|
Income tax accruals |
|
115 |
|
|
|
116 |
|
Operating lease liabilities |
|
375 |
|
|
|
388 |
|
Other liabilities |
|
388 |
|
|
|
383 |
|
Total liabilities |
|
10,116 |
|
|
|
10,108 |
|
Series A convertible preferred stock: par value $0.01 per share, 3.0 shares authorized, 0.3 issued and outstanding as of March 31, 2022 and December 31, 2021, respectively; redemption amount and liquidation preference of $276 as of March 31, 2022 and December 31, 2021, respectively |
|
274 |
|
|
|
274 |
|
Stockholders' equity |
|
|
|
||||
NCR stockholders' equity: |
|
|
|
||||
Preferred stock: par value $0.01 per share, 100.0 shares authorized, no shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively |
|
— |
|
|
|
— |
|
Common stock: par value $0.01 per share, 500.0 shares authorized, 136.3 and 132.2 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively |
|
1 |
|
|
|
1 |
|
Paid-in capital |
|
602 |
|
|
|
515 |
|
Retained earnings |
|
993 |
|
|
|
1,031 |
|
Accumulated other comprehensive loss |
|
(273 |
) |
|
|
(291 |
) |
Total NCR stockholders' equity |
|
1,323 |
|
|
|
1,256 |
|
Noncontrolling interests in subsidiaries |
|
2 |
|
|
|
3 |
|
Total stockholders' equity |
|
1,325 |
|
|
|
1,259 |
|
Total liabilities and stockholders' equity |
$ |
11,715 |
|
|
$ |
11,641 |
|
NCR CORPORATION |
|||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
Schedule D |
||||
(Unaudited) |
|||||
(in millions) |
|
For the Periods Ended March 31 |
||||||
|
Three Months |
||||||
|
2022 |
|
2021 |
||||
Operating activities |
|
|
|
||||
Net income (loss) |
$ |
(35 |
) |
|
$ |
31 |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
||||
Loss from discontinued operations |
|
1 |
|
|
|
— |
|
Depreciation and amortization |
|
147 |
|
|
|
92 |
|
Stock-based compensation expense |
|
34 |
|
|
|
44 |
|
Deferred income taxes |
|
4 |
|
|
|
7 |
|
Gain (loss) on disposal of property, plant and equipment |
|
2 |
|
|
|
— |
|
Changes in assets and liabilities: |
|
|
|
||||
Receivables |
|
(129 |
) |
|
|
(91 |
) |
Inventories |
|
(77 |
) |
|
|
(17 |
) |
Current payables and accrued expenses |
|
(63 |
) |
|
|
34 |
|
Contract liabilities |
|
105 |
|
|
|
74 |
|
Employee benefit plans |
|
(8 |
) |
|
|
(10 |
) |
Other assets and liabilities |
|
57 |
|
|
|
(9 |
) |
Net cash provided by operating activities |
$ |
38 |
|
|
$ |
155 |
|
Investing activities |
|
|
|
||||
Expenditures for property, plant and equipment |
$ |
(15 |
) |
|
$ |
(10 |
) |
Additions to capitalized software |
|
(65 |
) |
|
|
(51 |
) |
Business acquisitions, net of cash acquired |
|
(1 |
) |
|
|
(157 |
) |
Purchases of short-term investments |
|
— |
|
|
|
(5 |
) |
Proceeds from sales of short-term investments |
|
— |
|
|
|
5 |
|
Other investing activities, net |
|
(5 |
) |
|
|
— |
|
Net cash used in investing activities |
$ |
(86 |
) |
|
$ |
(218 |
) |
Financing activities |
|
|
|
||||
Short term borrowings, net |
$ |
2 |
|
|
$ |
— |
|
Payments on term credit facilities |
|
(2 |
) |
|
|
(8 |
) |
Payments on revolving credit facilities |
|
(279 |
) |
|
|
(318 |
) |
Borrowings on revolving credit facilities |
|
312 |
|
|
|
448 |
|
Debt issuance costs and bridge commitment fees |
|
— |
|
|
|
(1 |
) |
Cash dividend paid for Series A preferred shares dividends |
|
(4 |
) |
|
|
(4 |
) |
Proceeds from employee stock plans |
|
6 |
|
|
|
8 |
|
Tax withholding payments on behalf of employees |
|
(36 |
) |
|
|
(22 |
) |
Net change in client funds obligations |
|
6 |
|
|
|
— |
|
Principal payments for finance lease obligations |
|
(4 |
) |
|
|
(4 |
) |
Other financing activities |
|
— |
|
|
|
(1 |
) |
Net cash provided by (used in) financing activities |
$ |
1 |
|
|
$ |
98 |
|
Cash flows from discontinued operations |
|
|
|
||||
Net cash provided by (used in) discontinued operations |
|
(4 |
) |
|
|
(44 |
) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
(6 |
) |
|
|
(6 |
) |
Increase (decrease) in cash, cash equivalents, and restricted cash |
$ |
(57 |
) |
|
$ |
(15 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
749 |
|
|
|
406 |
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
692 |
|
|
$ |
391 |
|