– моментальные уведомления о рынке акций
– моментальные уведомления о рынке акций
Company sees improving page volumes and record backlog; profits impacted by rising costs
Financial Summary
$1.67 billion of revenue, down 2.5 percent year-over-year or 0.7 percent in constant currency.
GAAP (loss) earnings per share (EPS) of $(0.38), down $0.56 year-over-year, and adjusted (loss) per share of $(0.12), down $0.34 year-over-year.
Pre-tax margin of (5.3) percent, down 840 basis points, and adjusted operating margin of (0.2) percent, down 540 basis points year-over-year.
$66 million of operating cash flow, down $51 million year-over-year.
$50 million of free cash flow, down $50 million year-over-year.
NORWALK, Conn.--(BUSINESS WIRE)--Xerox Holdings Corporation (NASDAQ: XRX) today announced its 2022 first-quarter results.
“Revenue was in line with expectations this quarter despite an increasingly volatile operating environment,” said Xerox Vice Chairman and CEO John Visentin. “Underlying demand for our products and services remains strong, as indicated by our growing backlog and growth in post-sale revenue. Broad-based inflationary pressure and increased logistics costs from supply chain disruption resulted in an operating loss, but we expect to offset most of these cost increases over time with price actions and additional Project Own It savings. We remain focused on executing the strategic roadmap presented at our Investor Day in February and are committed to monetizing our investments in new businesses in ways that maximize shareholder value.”
First-Quarter Key Financial Results
(in millions, except per share data) |
Q1 2022 |
Q1 2021 |
B/(W)
|
% Change
|
Revenue |
$1,668 |
$1,710 |
$(42) |
(2.5) % AC
|
Gross Margin |
31.8% |
35.7% |
(390) bps |
|
RD&E % |
4.7% |
4.3% |
(40) bps |
|
SAG % |
27.3% |
26.2% |
(110) bps |
|
Pre-Tax (Loss) Income |
$(89) |
$53 |
$(142) |
NM |
Pre-Tax (Loss) Income Margin |
(5.3)% |
3.1% |
(840) bps |
|
Operating (Loss) Income - Adjusted1 |
$(3) |
$89 |
$(92) |
NM |
Operating (Loss) Income Margin - Adjusted1 |
(0.2)% |
5.2% |
(540) bps |
|
GAAP (Loss) Earnings per Share |
$(0.38) |
$0.18 |
$(0.56) |
NM |
(Loss) Earnings Per Share - Adjusted1 |
$(0.12) |
$0.22 |
$(0.34) |
NM |
| ___________ |
| (1) Refer to the “Non-GAAP Financial Measures” section of this release for a discussion of these non-GAAP measures and their reconciliation to the reported GAAP measures. |
Beginning in the first quarter of 2022, the Company made a change to its reportable segments from one reportable segment to two reportable segments - Print and Other, and Financing (FITTLE). The Financing segment reporting is partly the result of the stand-up of this business in 2021.
First-Quarter Segment Results
(in millions) |
Q1 2022 |
Q1 2021 |
B/(W)
|
% Change
|
Revenue |
|
|
|
|
Print and Other |
$1,550 |
$1,581 |
$(31) |
(2.0)% |
Financing (FITTLE) |
158 |
180 |
(22) |
(12.2)% |
Intersegment Elimination1 |
(40) |
(51) |
11 |
(21.6)% |
Total Revenue |
$1,668 |
$1,710 |
$(42) |
(2.5)% |
(Loss) Profit |
|
|
|
|
Print and Other |
$(20) |
$71 |
$(91) |
NM |
Financing (FITTLE) |
17 |
18 |
(1) |
(5.6)% |
Total (Loss) Profit |
$(3) |
$89 |
$(92) |
NM |
| ___________ |
| (1) Reflects net revenue, primarily commissions and other payments, made by the Financing segment (FITTLE) to the Print and Other Segment for the lease of Xerox equipment placements. |
We are maintaining our revenue and cash flow guidance for 2022. Our guidance assumes that in the second half of the year supply chain disruption will begin to subside and return to office trends will continue to improve. Our free cash flow guidance excludes payments associated with this quarter’s one-time product supply contract termination charge.
Non-GAAP Measures
This release refers to the following non-GAAP financial measures:
Refer to the “Non-GAAP Financial Measures” section of this release for a discussion of these non-GAAP measures and their reconciliation to the reported GAAP measures.
Forward Looking Statements
This release, and other written or oral statements made from time to time by management contain “forward looking statements” as defined in the Private Securities Litigation Reform Act of 1995. The words “anticipate”, “believe”, “estimate”, “expect”, “intend”, “will”, “should”, “targeting”, “projecting”, “driving” and similar expressions, as they relate to us, our performance and/or our technology, are intended to identify forward-looking statements. These statements reflect management’s current beliefs, assumptions and expectations and are subject to a number of factors that may cause actual results to differ materially.
Such factors include but are not limited to: the effects pandemics, such as the COVID-19 pandemic, on our and our customers' businesses and the duration and extent to which this will impact our future results of operations and overall financial performance; our ability to address our business challenges in order to reverse revenue declines, reduce costs and increase productivity so that we can invest in and grow our business; our ability to successfully develop new products, technologies and service offerings and to protect our intellectual property rights; reliance on third parties, including subcontractors, for manufacturing of products and provision of services and the shared service arrangements entered into by us as part of Project Own It; our ability to attract and retain key personnel; the risk that confidential and/or individually identifiable information of ours, our customers, clients and employees could be inadvertently disclosed or disclosed as a result of a breach of our security systems due to cyber attacks or other intentional acts or that cyberattacks could result in a shutdown of our systems; the risk that partners, subcontractors and software vendors will not perform in a timely, quality manner; actions of competitors and our ability to promptly and effectively react to changing technologies and customer expectations; our ability to obtain adequate pricing for our products and services and to maintain and improve cost efficiency of operations, including savings from restructuring and transformation actions; our ability to manage changes in the printing environment like the decline in the volume of printed pages and extension of equipment placements; changes in economic and political conditions, trade protection measures, licensing requirements and tax laws in the United States and in the foreign countries in which we do business; the risk that multi-year contracts with governmental entities could be terminated prior to the end of the contract term and that civil or criminal penalties and administrative sanctions could be imposed on us if we fail to comply with the terms of such contracts and applicable law; interest rates, cost of borrowing and access to credit markets; the imposition of new or incremental trade protection measures such as tariffs and import or export restrictions; funding requirements associated with our employee pension and retiree health benefit plans; changes in foreign currency exchange rates; the risk that our operations and products may not comply with applicable worldwide regulatory requirements, particularly environmental regulations and directives and anti-corruption laws; the outcome of litigation and regulatory proceedings to which we may be a party; and any impacts resulting from the restructuring of our relationship with Fujifilm Holdings Corporation. Additional risks that may affect Xerox’s operations and other factors are set forth in the “Risk Factors” section, the “Legal Proceedings” section, the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section and other sections of Xerox Holdings Corporation's and Xerox Corporations combined 2021 Annual Report on Form 10-K and combined Quarterly Reports on Form 10-Q, as well as in Xerox Holdings Corporation’s and Xerox Corporation’s Current Reports on Form 8-K filed with the Securities and Exchange Commission.
These forward-looking statements speak only as of the date of this release or as of the date to which they refer, and Xerox assumes no obligation to update any forward-looking statements as a result of new information or future events or developments, except as required by law.
Note: To receive RSS news feeds, visit https://www.news.xerox.com. For open commentary, industry perspectives and views, visit http://www.linkedin.com/company/xerox, http://twitter.com/xerox, http://www.facebook.com/XeroxCorp, https://www.instagram.com/xerox/, http://www.youtube.com/XeroxCorp.
Xerox® is a trademark of Xerox in the United States and/or other countries.
XEROX HOLDINGS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME (UNAUDITED) |
||||||||
|
|
Three Months Ended March 31, |
||||||
(in millions, except per-share data) |
|
|
2022 |
|
|
|
2021 |
|
Revenues |
|
|
|
|
||||
Sales |
|
$ |
592 |
|
|
$ |
602 |
|
Services, maintenance and rentals |
|
|
1,023 |
|
|
|
1,053 |
|
Financing |
|
|
53 |
|
|
|
55 |
|
Total Revenues |
|
|
1,668 |
|
|
|
1,710 |
|
Costs and Expenses |
|
|
|
|
||||
Cost of sales |
|
|
435 |
|
|
|
420 |
|
Cost of services, maintenance and rentals |
|
|
679 |
|
|
|
651 |
|
Cost of financing |
|
|
24 |
|
|
|
28 |
|
Research, development and engineering expenses |
|
|
78 |
|
|
|
74 |
|
Selling, administrative and general expenses |
|
|
455 |
|
|
|
448 |
|
Restructuring and related costs, net |
|
|
18 |
|
|
|
17 |
|
Amortization of intangible assets |
|
|
11 |
|
|
|
15 |
|
Other expenses, net |
|
|
57 |
|
|
|
4 |
|
Total Costs and Expenses |
|
|
1,757 |
|
|
|
1,657 |
|
(Loss) Income before Income Taxes & Equity Income(1) |
|
|
(89 |
) |
|
|
53 |
|
Income tax (benefit) expense |
|
|
(31 |
) |
|
|
14 |
|
Equity in net income of unconsolidated affiliates |
|
|
1 |
|
|
|
— |
|
Net (Loss) Income |
|
|
(57 |
) |
|
|
39 |
|
Less: Net loss attributable to noncontrolling interests |
|
|
(1 |
) |
|
|
— |
|
Net (Loss) Income Attributable to Xerox Holdings |
|
$ |
(56 |
) |
|
$ |
39 |
|
|
|
|
|
|
||||
Basic (Loss) Earnings per Share |
|
$ |
(0.38 |
) |
|
$ |
0.18 |
|
Diluted (Loss) Earnings per Share |
|
$ |
(0.38 |
) |
|
$ |
0.18 |
|
| ___________________________ |
| (1) Referred to as “Pre-Tax (Loss) Income” throughout the remainder of this document. |
XEROX HOLDINGS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (UNAUDITED) |
||||||||
|
|
Three Months Ended March 31, |
||||||
(in millions) |
|
|
2022 |
|
|
|
2021 |
|
Net (Loss) Income |
|
$ |
(57 |
) |
|
$ |
39 |
|
Less: Net loss attributable to noncontrolling interests |
|
|
(1 |
) |
|
|
— |
|
Net (Loss) Income Attributable to Xerox Holdings |
|
|
(56 |
) |
|
|
39 |
|
|
|
|
|
|
||||
Other Comprehensive (Loss) Income, Net |
|
|
|
|
||||
Translation adjustments, net |
|
|
(72 |
) |
|
|
(51 |
) |
Unrealized losses, net |
|
|
(11 |
) |
|
|
(7 |
) |
Changes in defined benefit plans, net |
|
|
39 |
|
|
|
55 |
|
Other Comprehensive Loss, Net Attributable to Xerox Holdings |
|
|
(44 |
) |
|
|
(3 |
) |
|
|
|
|
|
||||
Comprehensive (Loss) Income, Net |
|
|
(101 |
) |
|
|
36 |
|
Less: Comprehensive loss, net attributable to noncontrolling interests |
|
|
(1 |
) |
|
|
— |
|
Comprehensive (Loss) Income, Net Attributable to Xerox Holdings |
|
$ |
(100 |
) |
|
$ |
36 |
|
XEROX HOLDINGS CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
||||||||
(in millions, except share data in thousands) |
|
March 31, 2022 |
|
December 31, 2021 |
||||
Assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
1,681 |
|
|
$ |
1,840 |
|
Accounts receivable (net of allowance of $63 and $58, respectively) |
|
|
807 |
|
|
|
818 |
|
Billed portion of finance receivables (net of allowance of $3 and $4, respectively) |
|
|
89 |
|
|
|
94 |
|
Finance receivables, net |
|
|
1,023 |
|
|
|
1,042 |
|
Inventories |
|
|
732 |
|
|
|
696 |
|
Other current assets |
|
|
234 |
|
|
|
211 |
|
Total current assets |
|
|
4,566 |
|
|
|
4,701 |
|
Finance receivables due after one year (net of allowance of $117 and $114, respectively) |
|
|
1,893 |
|
|
|
1,934 |
|
Equipment on operating leases, net |
|
|
254 |
|
|
|
253 |
|
Land, buildings and equipment, net |
|
|
350 |
|
|
|
358 |
|
Intangible assets, net |
|
|
240 |
|
|
|
211 |
|
Goodwill |
|
|
3,300 |
|
|
|
3,287 |
|
Deferred tax assets |
|
|
528 |
|
|
|
519 |
|
Other long-term assets |
|
|
1,951 |
|
|
|
1,960 |
|
Total Assets |
|
$ |
13,082 |
|
|
$ |
13,223 |
|
Liabilities and Equity |
|
|
|
|
||||
Short-term debt and current portion of long-term debt |
|
$ |
1,450 |
|
|
$ |
650 |
|
Accounts payable |
|
|
1,183 |
|
|
|
1,069 |
|
Accrued compensation and benefits costs |
|
|
258 |
|
|
|
239 |
|
Accrued expenses and other current liabilities |
|
|
878 |
|
|
|
871 |
|
Total current liabilities |
|
|
3,769 |
|
|
|
2,829 |
|
Long-term debt |
|
|
2,821 |
|
|
|
3,596 |
|
Pension and other benefit liabilities |
|
|
1,359 |
|
|
|
1,373 |
|
Post-retirement medical benefits |
|
|
247 |
|
|
|
277 |
|
Other long-term liabilities |
|
|
473 |
|
|
|
481 |
|
Total Liabilities |
|
|
8,669 |
|
|
|
8,556 |
|
|
|
|
|
|
||||
Noncontrolling Interests |
|
|
10 |
|
|
|
10 |
|
|
|
|
|
|
||||
Convertible Preferred Stock |
|
|
214 |
|
|
|
214 |
|
|
|
|
|
|
||||
Common stock |
|
|
156 |
|
|
|
168 |
|
Additional paid-in capital |
|
|
1,560 |
|
|
|
1,802 |
|
Treasury stock, at cost |
|
|
(32 |
) |
|
|
(177 |
) |
Retained earnings |
|
|
5,532 |
|
|
|
5,631 |
|
Accumulated other comprehensive loss |
|
|
(3,032 |
) |
|
|
(2,988 |
) |
Xerox Holdings shareholders’ equity |
|
|
4,184 |
|
|
|
4,436 |
|
Noncontrolling interests |
|
|
5 |
|
|
|
7 |
|
Total Equity |
|
|
4,189 |
|
|
|
4,443 |
|
Total Liabilities and Equity |
|
$ |
13,082 |
|
|
$ |
13,223 |
|
|
|
|
|
|
||||
Shares of common stock issued |
|
|
156,358 |
|
|
|
168,069 |
|
Treasury stock |
|
|
(1,508 |
) |
|
|
(8,675 |
) |
Shares of Common Stock Outstanding |
|
|
154,850 |
|
|
|
159,394 |
|
XEROX HOLDINGS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
||||||||
|
|
Three Months Ended March 31, |
||||||
(in millions) |
|
|
2022 |
|
|
|
2021 |
|
Cash Flows from Operating Activities |
|
|
|
|
||||
Net (loss) income |
|
$ |
(57 |
) |
|
$ |
39 |
|
|
|
|
|
|
||||
Adjustments required to reconcile Net (loss) income to Cash flows from operating activities |
|
|
|
|
||||
Depreciation and amortization |
|
|
72 |
|
|
|
86 |
|
Provisions |
|
|
19 |
|
|
|
20 |
|
Stock-based compensation |
|
|
15 |
|
|
|
16 |
|
Restructuring and asset impairment charges |
|
|
20 |
|
|
|
21 |
|
Payments for restructurings |
|
|
(7 |
) |
|
|
(27 |
) |
Non-service retirement-related costs |
|
|
(7 |
) |
|
|
(20 |
) |
Contributions to retirement plans |
|
|
(38 |
) |
|
|
(41 |
) |
Decrease in accounts receivable and billed portion of finance receivables |
|
|
13 |
|
|
|
92 |
|
Increase in inventories |
|
|
(31 |
) |
|
|
(18 |
) |
Increase in equipment on operating leases |
|
|
(36 |
) |
|
|
(28 |
) |
Decrease in finance receivables |
|
|
41 |
|
|
|
37 |
|
(Increase) decrease in other current and long-term assets |
|
|
(1 |
) |
|
|
18 |
|
Increase (decrease) in accounts payable |
|
|
111 |
|
|
|
(31 |
) |
Increase (decrease) in accrued compensation |
|
|
22 |
|
|
|
(10 |
) |
Decrease in other current and long-term liabilities |
|
|
(43 |
) |
|
|
(35 |
) |
Net change in income tax assets and liabilities |
|
|
(39 |
) |
|
|
6 |
|
Net change in derivative assets and liabilities |
|
|
7 |
|
|
|
3 |
|
Other operating, net |
|
|
5 |
|
|
|
(11 |
) |
Net cash provided by operating activities |
|
|
66 |
|
|
|
117 |
|
Cash Flows from Investing Activities |
|
|
|
|
||||
Cost of additions to land, buildings, equipment and software |
|
|
(16 |
) |
|
|
(17 |
) |
Acquisitions, net of cash acquired |
|
|
(54 |
) |
|
|
— |
|
Other investing, net |
|
|
(5 |
) |
|
|
— |
|
Net cash used in investing activities |
|
|
(75 |
) |
|
|
(17 |
) |
Cash Flows from Financing Activities |
|
|
|
|
||||
Net proceeds (payments) on debt |
|
|
22 |
|
|
|
(95 |
) |
Dividends |
|
|
(46 |
) |
|
|
(54 |
) |
Payments to acquire treasury stock, including fees |
|
|
(113 |
) |
|
|
(162 |
) |
Other financing, net |
|
|
(12 |
) |
|
|
(7 |
) |
Net cash used in financing activities |
|
|
(149 |
) |
|
|
(318 |
) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
10 |
|
|
|
(12 |
) |
Decrease in cash, cash equivalents and restricted cash |
|
|
(148 |
) |
|
|
(230 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
|
1,909 |
|
|
|
2,691 |
|
Cash, Cash Equivalents and Restricted Cash at End of Period |
|
$ |
1,761 |
|
|
$ |
2,461 |
|
First Quarter 2022 Overview
During the first quarter 2022, our business faced several challenges. Supply constraints continued to inhibit our ability to fulfill demand, resulting in the growth of our backlog1 to $422 million, a 21% sequential increase and nearly three times prior year period's levels. As demand and backlog grow, we are focused on maintaining our levels of client satisfaction. We continue to expect supply chain constraints to begin easing in the second half of the year. We did see slight improvements in page volumes and volume-driven post sale revenue in the first quarter 2022, particularly in March as the Omicron variant waned and more employees returned back to the office. Third-party2 data points to gathering momentum in return to office trends. We expect progressive improvement in workplace attendance each month and a broader return of employees to the office in the second half of the year. Lastly, in the first quarter 2022, we also saw an acceleration of inflationary pressure on costs throughout our business, particularly for logistics and labor. We have enacted a series of price increases and currently expect to offset these inflation-related cost increases over time as we enforce price adjustments within our contractual business and further rationalize our cost base. With respect to the war in Ukraine, we halted shipments to Russia when sanctions were imposed. The resulting financial impact has thus far been minimal. The Eurasian region in total comprised a low single digit percentage of our revenue and operating profits in 2021. Despite these uncertainties, we are maintaining our revenue and cash flow outlook, as we continue to expect supply chain constraints and return to office trends to improve in the second half of the year, and we are implementing counteractive measures in response to geopolitical uncertainty and inflationary pressures.
Reportable Segment Change
Beginning in the first quarter of 2022, the Company made a change to its reportable segments from one reportable segment to two reportable segments - Print and Other, and Financing (FITTLE) to align with a change in how the Chief Operating Decision Maker (CODM), our Chief Executive Officer (CEO), allocates resources and assesses performance against the Company’s key growth strategies. As such, prior period reportable segment results and related disclosures have been conformed to reflect the Company’s current reportable segments.
| __________________________ | ||
(1) |
|
Order backlog is measured as the value of unfulfilled sales orders, shipped and non-shipped, received from our customers waiting to be installed, including orders with future installation dates. It includes printing devices as well as IT hardware associated with our IT services offerings. First quarter 2022 backlog of $422 million excludes sales orders from Russia and Powerland Computers, Ltd., which was acquired in the first quarter of 2022. |
(2) |
|
Third party data is from Kastle Systems U.S. offices badge swipe data metric. |
Financial Review Revenues |
||||||||||||||||
|
|
Three Months Ended March 31, |
|
|
|
|
|
% of Total Revenue |
||||||||
(in millions) |
|
|
2022 |
|
|
|
2021 |
|
|
%
|
|
CC %
|
|
2022 |
|
2021 |
Equipment sales |
|
$ |
314 |
|
|
$ |
381 |
|
|
(17.6)% |
|
(16.1)% |
|
19% |
|
22% |
Post sale revenue |
|
|
1,354 |
|
|
|
1,329 |
|
|
1.9% |
|
3.7% |
|
81% |
|
78% |
Total Revenue |
|
$ |
1,668 |
|
|
$ |
1,710 |
|
|
(2.5)% |
|
(0.7)% |
|
100% |
|
100% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reconciliation to Condensed Consolidated Statements of (Loss) Income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Sales |
|
$ |
592 |
|
|
$ |
602 |
|
|
(1.7)% |
|
0.1% |
|
|
|
|
Less: Supplies, paper and other sales |
|
|
(278 |
) |
|
|
(221 |
) |
|
25.8% |
|
28.0% |
|
|
|
|
Equipment Sales |
|
$ |
314 |
|
|
$ |
381 |
|
|
(17.6)% |
|
(16.1)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Services, maintenance and rentals |
|
$ |
1,023 |
|
|
$ |
1,053 |
|
|
(2.8)% |
|
(1.1)% |
|
|
|
|
Add: Supplies, paper and other sales |
|
|
278 |
|
|
|
221 |
|
|
25.8% |
|
28.0% |
|
|
|
|
Add: Financing |
|
|
53 |
|
|
|
55 |
|
|
(3.6)% |
|
(2.5)% |
|
|
|
|
Post Sale Revenue |
|
$ |
1,354 |
|
|
$ |
1,329 |
|
|
1.9% |
|
3.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Segments |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Print and Other |
|
$ |
1,550 |
|
|
$ |
1,581 |
|
|
(2.0)% |
|
|
|
93% |
|
92% |
Financing (FITTLE) |
|
|
158 |
|
|
|
180 |
|
|
(12.2)% |
|
|
|
9% |
|
11% |
Intersegment elimination (1) |
|
|
(40 |
) |
|
|
(51 |
) |
|
(21.6)% |
|
|
|
(2)% |
|
(3)% |
Total Revenue(2) |
|
$ |
1,668 |
|
|
$ |
1,710 |
|
|
(2.5)% |
|
|
|
100% |
|
100% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Go-to-Market Operations |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Americas |
|
$ |
1,071 |
|
|
$ |
1,076 |
|
|
(0.5)% |
|
(0.4)% |
|
64% |
|
63% |
EMEA |
|
|
554 |
|
|
|
587 |
|
|
(5.6)% |
|
(0.8)% |
|
33% |
|
34% |
Other |
|
|
43 |
|
|
|
47 |
|
|
(8.5)% |
|
(8.5)% |
|
3% |
|
3% |
Total Revenue(2) |
|
$ |
1,668 |
|
|
$ |
1,710 |
|
|
(2.5)% |
|
(0.7)% |
|
100% |
|
100% |
| ____________________________ | |
CC - |
See "Constant Currency" in the Non-GAAP Financial Measures section for a description of constant currency. |
(1) |
Reflects net revenue, primarily commissions and other payments, made by the Financing segment (FITTLE) to the Print and Other segment for the lease of Xerox equipment placements. |
(2) |
Refer to Appendix II, Reportable Segments and Geographic Sales Channels, for definitions. |
Costs, Expenses and Other Income Summary of Key Financial Ratios
The following is a summary of key financial ratios used to assess our performance:
|
|
Three Months Ended March 31, |
|||||||||||
(in millions) |
|
|
2022 |
|
|
2021 |
|
B/(W) |
|||||
Gross Profit |
|
$ |
530 |
|
|
$ |
611 |
|
|
$ |
(81 |
) |
|
RD&E |
|
|
78 |
|
|
|
74 |
|
|
|
(4 |
) |
|
SAG |
|
|
455 |
|
|
|
448 |
|
|
|
(7 |
) |
|
|
|
|
|
|
|
|
|
||||||
Equipment Gross Margin |
|
|
20.4 |
% |
|
|
27.9 |
% |
|
|
(7.5 |
) |
pts. |
Post sale Gross Margin |
|
|
34.4 |
% |
|
|
38.0 |
% |
|
|
(3.6 |
) |
pts. |
Total Gross Margin |
|
|
31.8 |
% |
|
|
35.7 |
% |
|
|
(3.9 |
) |
pts. |
RD&E as a % of Revenue |
|
|
4.7 |
% |
|
|
4.3 |
% |
|
|
(0.4 |
) |
pts. |
SAG as a % of Revenue |
|
|
27.3 |
% |
|
|
26.2 |
% |
|
|
(1.1 |
) |
pts. |
|
|
|
|
|
|
|
|
||||||
Pre-tax (Loss) Income |
|
$ |
(89 |
) |
|
$ |
53 |
|
|
$ |
(142 |
) |
|
Pre-tax (Loss) Income Margin |
|
|
(5.3 |
)% |
|
|
3.1 |
% |
|
|
(8.4 |
) |
pts. |
|
|
|
|
|
|
|
|
||||||
Adjusted(1) Operating (Loss) Profit |
|
$ |
(3 |
) |
|
$ |
89 |
|
|
$ |
(92 |
) |
|
Adjusted(1) Operating (Loss) Income Margin |
|
|
(0.2 |
)% |
|
|
5.2 |
% |
|
|
(5.4 |
) |
pts. |
| ____________________________ |
| (1) Refer to the Non-GAAP Financial Measures section for an explanation of the non-GAAP financial measure. |
Other Expenses, Net |
||||||||
|
|
Three Months Ended March 31, |
||||||
(in millions) |
|
|
2022 |
|
|
|
2021 |
|
Non-financing interest expense |
|
$ |
29 |
|
|
$ |
24 |
|
Interest income |
|
|
(1 |
) |
|
|
(1 |
) |
Non-service retirement-related costs |
|
|
(7 |
) |
|
|
(20 |
) |
Currency losses, net |
|
|
— |
|
|
|
2 |
|
Contract termination costs - product supply |
|
|
33 |
|
|
|
— |
|
All other expenses, net |
|
|
3 |
|
|
|
(1 |
) |
Other expenses, net |
|
$ |
57 |
|
|
$ |
4 |
|
Segment Review |
|||||||||||||||||||||||
|
|
Three Months Ended March 31, |
|||||||||||||||||||||
(in millions) |
|
External Net
|
|
Intersegment
|
|
Total
|
|
% of Total
|
|
Segment
|
|
Segment
|
|
||||||||||
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Print and Other |
|
$ |
1,513 |
|
$ |
37 |
|
$ |
1,550 |
|
91 |
% |
|
$ |
(20 |
) |
|
(1.3 |
)% |
|
|||
Financing (FITTLE) |
|
|
155 |
|
|
3 |
|
|
158 |
|
9 |
% |
|
|
17 |
|
|
11.0 |
% |
|
|||
Total |
|
$ |
1,668 |
|
$ |
40 |
|
$ |
1,708 |
|
100 |
% |
|
$ |
(3 |
) |
|
(0.2 |
)% |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Print and Other |
|
$ |
1,533 |
|
$ |
48 |
|
$ |
1,581 |
|
90 |
% |
|
$ |
71 |
|
|
4.6 |
% |
|
|||
Financing (FITTLE) |
|
|
177 |
|
|
3 |
|
|
180 |
|
10 |
% |
|
|
18 |
|
|
10.2 |
% |
|
|||
Total |
|
$ |
1,710 |
|
$ |
51 |
|
$ |
1,761 |
|
100 |
% |
|
$ |
89 |
|
|
5.2 |
% |
|
|||
| _____________ | ||
(1) |
|
Reflects net revenue, primarily commissions and other payments, made by the Financing segment (FITTLE) to the Print and Other segment for the lease of Xerox equipment placements. |
(2) |
|
Segment margin based on external net revenue only. |
Print and Other
Print and Other includes the design, development and sale of document management systems, solutions and services as well as associated technology offerings including IT and software products and services.
Revenue |
||||||||||
|
|
Three Months Ended March 31, |
|
|
||||||
(in millions) |
|
|
2022 |
|
|
2021 |
|
%
|
||
Equipment sales |
|
$ |
309 |
|
$ |
373 |
|
(17.2)% |
||
Post-sale revenue |
|
|
1,204 |
|
|
1,160 |
|
3.8% |
||
Intersegment net revenue (1) |
|
|
37 |
|
|
48 |
|
(22.9)% |
||
Total Print and Other Revenue |
|
$ |
1,550 |
|
$ |
1,581 |
|
(2.0)% |
||
| ___________________________ | ||
(1) |
|
Reflects net revenue, primarily commissions and other payments, made by the Financing segment (FITTLE) to the Print and Other segment for the lease of Xerox equipment placements. |
Detail by product group is shown below.
|
|
Three Months Ended March 31, |
|
|
|
|
|
% of Equipment Sales |
||||||||
(in millions) |
|
|
2022 |
|
|
|
2021 |
|
|
%
|
|
CC %
|
|
2022 |
|
2021 |
Entry |
|
$ |
61 |
|
$ |
68 |
|
(10.3)% |
|
(7.6)% |
|
19% |
|
18% |
||
Mid-range |
|
|
194 |
|
|
238 |
|
(18.5)% |
|
(17.1)% |
|
62% |
|
63% |
||
High-end |
|
|
54 |
|
|
70 |
|
(22.9)% |
|
(21.0)% |
|
17% |
|
18% |
||
Other |
|
|
5 |
|
|
5 |
|
—% |
|
—% |
|
2% |
|
1% |
||
Equipment Sales (1),(2) |
|
$ |
314 |
|
$ |
381 |
|
(17.6)% |
|
(16.1)% |
|
100% |
|
100% |
||
| _____________ | |
CC - |
See "Constant Currency" in the Non-GAAP Financial Measures section for a description of constant currency. |
(1) |
Refer to Appendix II, Reportable Segments and Geographic Sales Channels, for definitions. |
(2) |
Includes $5 million of equipment sales related to the Financing (FITTLE) segment. |
Financing (FITTLE)
Financing (FITTLE) represents a global financing solutions business, primarily enabling the sale of our equipment and services.
Revenue |
||||||||||
|
|
Three Months Ended March 31, |
|
|
||||||
(in millions) |
|
|
2022 |
|
|
|
2021 |
|
|
%
|
Equipment sales |
|
$ |
5 |
|
$ |
8 |
|
(37.5)% |
||
Financing |
|
|
53 |
|
|
55 |
|
(3.6)% |
||
Other Post-sale revenue (1) |
|
|
97 |
|
|
117 |
|
(17.1)% |
||
Intersegment net revenue |
|
|
3 |
|
|
— |
|
NM |
||
Total Financing (FITTLE) Revenue |
|
$ |
158 |
|
$ |
180 |
|
(12.2)% |
||
| ___________________________ | ||
(1) |
|
Other Post-sale revenue includes operating lease/rental revenues as well as lease renewal and fee income. |
2021 Segment Review
The following are our 2021 results that correspond, for comparison purposes, to the new segment reporting in 2022.
(in millions) |
|
External Net
|
|
Intersegment
|
|
Total
|
|
% of Total
|
|
Segment
|
|
Segment
|
||||||||||
Q1 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Print and Other |
|
$ |
1,533 |
|
$ |
48 |
|
$ |
1,581 |
|
90 |
% |
|
$ |
71 |
|
4.6 |
% |
||||
Financing (FITTLE) |
|
|
177 |
|
|
3 |
|
|
180 |
|
10 |
% |
|
|
18 |
|
10.2 |
% |
||||
Total |
|
$ |
1,710 |
|
$ |
51 |
|
$ |
1,761 |
|
100 |
% |
|
$ |
89 |
|
5.2 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Q2 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Print and Other |
|
$ |
1,619 |
|
$ |
53 |
|
$ |
1,672 |
|
90 |
% |
|
$ |
111 |
|
6.9 |
% |
||||
Financing (FITTLE) |
|
|
174 |
|
|
3 |
|
|
177 |
|
10 |
% |
|
|
15 |
|
8.6 |
% |
||||
Total |
|
$ |
1,793 |
|
$ |
56 |
|
$ |
1,849 |
|
100 |
% |
|
$ |
126 |
|
7.0 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Q3 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Print and Other |
|
$ |
1,590 |
|
$ |
46 |
|
$ |
1,636 |
|
91 |
% |
|
$ |
50 |
|
3.1 |
% |
||||
Financing (FITTLE) |
|
|
168 |
|
|
3 |
|
|
171 |
|
9 |
% |
|
|
24 |
|
14.3 |
% |
||||
Total |
|
$ |
1,758 |
|
$ |
49 |
|
$ |
1,807 |
|
100 |
% |
|
$ |
74 |
|
4.2 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Q4 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Print and Other |
|
$ |
1,613 |
|
$ |
46 |
|
$ |
1,659 |
|
91 |
% |
|
$ |
61 |
|
3.8 |
% |
||||
Financing (FITTLE) |
|
|
164 |
|
|
3 |
|
|
167 |
|
9 |
% |
|
|
25 |
|
15.2 |
% |
||||
Total |
|
$ |
1,777 |
|
$ |
49 |
|
$ |
1,826 |
|
100 |
% |
|
$ |
86 |
|
4.8 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Print and Other |
|
$ |
6,355 |
|
$ |
193 |
|
$ |
6,548 |
|
90 |
% |
|
$ |
293 |
|
4.6 |
% |
||||
Financing (FITTLE) |
|
|
683 |
|
|
12 |
|
|
695 |
|
10 |
% |
|
|
82 |
|
12.0 |
% |
||||
Total |
|
$ |
7,038 |
|
$ |
205 |
|
$ |
7,243 |
|
100 |
% |
|
$ |
375 |
|
5.3 |
% |
||||
| _____________ | ||
(1) |
|
Reflects net revenue, primarily commissions and other payments, made by the Financing segment (FITTLE) to the Print and Other segment for the lease of Xerox equipment placements. |
(2) |
|
Segment margin based on external net revenue only. |
Forward-Looking Statements
This release, and other written or oral statements made from time to time by management contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. The words “anticipate”, “believe”, “estimate”, “expect”, “intend”, “will”, “should”, “targeting”, “projecting”, “driving” and similar expressions, as they relate to us, our performance and/or our technology, are intended to identify forward-looking statements. These statements reflect management’s current beliefs, assumptions and expectations and are subject to a number of factors that may cause actual results to differ materially.
Such factors include but are not limited to: the effects pandemics, such as the COVID-19 pandemic, on our and our customers' businesses and the duration and extent to which this will impact our future results of operations and overall financial performance; our ability to address our business challenges in order to reverse revenue declines, reduce costs and increase productivity so that we can invest in and grow our business; our ability to successfully develop new products, technologies and service offerings and to protect our intellectual property rights; reliance on third parties, including subcontractors, for manufacturing of products and provision of services and the shared service arrangements entered into by us as part of Project Own It; our ability to attract and retain key personnel; the risk that confidential and/or individually identifiable information of ours, our customers, clients and employees could be inadvertently disclosed or disclosed as a result of a breach of our security systems due to cyber attacks or other intentional acts or that cyberattacks could result in a shutdown of our systems; the risk that partners, subcontractors and software vendors will not perform in a timely, quality manner; actions of competitors and our ability to promptly and effectively react to changing technologies and customer expectations; our ability to obtain adequate pricing for our products and services and to maintain and improve cost efficiency of operations, including savings from restructuring and transformation actions; our ability to manage changes in the printing environment like the decline in the volume of printed pages and extension of equipment placements; changes in economic and political conditions, trade protection measures, licensing requirements and tax laws in the United States and in the foreign countries in which we do business; the risk that multi-year contracts with governmental entities could be terminated prior to the end of the contract term and that civil or criminal penalties and administrative sanctions could be imposed on us if we fail to comply with the terms of such contracts and applicable law; interest rates, cost of borrowing and access to credit markets; the imposition of new or incremental trade protection measures such as tariffs and import or export restrictions; funding requirements associated with our employee pension and retiree health benefit plans; changes in foreign currency exchange rates; the risk that our operations and products may not comply with applicable worldwide regulatory requirements, particularly environmental regulations and directives and anti-corruption laws; the outcome of litigation and regulatory proceedings to which we may be a party; and any impacts resulting from the restructuring of our relationship with Fujifilm Holdings Corporation.
Additional risks that may affect Xerox’s operations and other factors are set forth in the “Risk Factors” section, the “Legal Proceedings” section, the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section and other sections of Xerox Holdings Corporation's and Xerox Corporations combined 2021 Annual Report on Form 10-K and combined Quarterly Reports on Form 10-Q, as well as in Xerox Holdings Corporation’s and Xerox Corporation’s Current Reports on Form 8-K filed with the Securities and Exchange Commission.
These forward-looking statements speak only as of the date of this release or as of the date to which they refer, and Xerox assume no obligation to update any forward-looking statements as a result of new information or future events or developments, except as required by law.
Non-GAAP Financial Measures
We have reported our financial results in accordance with generally accepted accounting principles (GAAP). In addition, we have discussed our financial results using the non-GAAP measures described below. We believe these non-GAAP measures allow investors to better understand the trends in our business and to better understand and compare our results. Accordingly, we believe it is necessary to adjust several reported amounts, determined in accordance with GAAP, to exclude the effects of certain items as well as their related income tax effects.
A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are set forth below as well as in the first quarter 2022 presentation slides available at www.xerox.com/investor.
These non-GAAP financial measures should be viewed in addition to, and not as a substitute for, the Company’s reported results prepared in accordance with GAAP.
Adjusted Earnings Measures
The above measures were adjusted for the following items:
We believe the exclusion of these items allows investors to better understand and analyze the results for the period as compared to prior periods and expected future trends in our business.
Adjusted Operating (Loss) Income and Margin
We calculate and utilize adjusted operating (loss) income and margin measures by adjusting our reported pre-tax income and margin amounts. In addition to the costs and expenses noted as adjustments for our adjusted earnings measures, adjusted operating income and margin also exclude the remaining amounts included in Other expenses, net, which are primarily non-financing interest expense and certain other non-operating costs and expenses. We exclude these amounts in order to evaluate our current and past operating performance and to better understand the expected future trends in our business.
Constant Currency
To better understand trends in our business, we believe that it is helpful to adjust revenue to exclude the impact of changes in the translation of foreign currencies into U.S. dollars. We refer to this adjusted revenue as “constant currency.” This impact is calculated by translating current period activity in local currency using the comparable prior year period's currency translation rate. This impact is calculated for all countries where the functional currency is not the U.S. dollar. Management believes the constant currency measure provides investors an additional perspective on revenue trends. Currency impact can be determined as the difference between actual growth rates and constant currency growth rates.
To better understand trends in our business, we believe that it is helpful to adjust operating cash flows by subtracting amounts related to capital expenditures. Management believes this measure gives investors an additional perspective on cash flow from operating activities in excess of amounts required for reinvestment. It provides a measure of our ability to fund acquisitions, dividends and share repurchase.
Management believes that all of these non-GAAP financial measures provide an additional means of analyzing the current period’s results against the corresponding prior period’s results. However, these non-GAAP financial measures should be viewed in addition to, and not as a substitute for, the Company’s reported results prepared in accordance with GAAP. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our Condensed Consolidated Financial Statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on these non-GAAP measures.
A reconciliation of these non-GAAP financial measures and the most directly comparable measures calculated and presented in accordance with GAAP are set forth on the following tables:
Net (Loss) Income and EPS reconciliation: |
||||||||||||||||
|
|
Three Months Ended March 31, 2022 |
|
Three Months Ended March 31, 2021 |
||||||||||||
(in millions, except per share amounts) |
|
Net Loss |
|
EPS |
|
Net Income |
|
EPS |
||||||||
Reported(1) |
|
$ |
(56 |
) |
|
$ |
(0.38 |
) |
|
$ |
39 |
|
|
$ |
0.18 |
|
Adjustments: |
|
|
|
|
|
|
|
|
||||||||
Restructuring and related costs, net |
|
|
18 |
|
|
|
|
|
17 |
|
|
|
||||
Amortization of intangible assets |
|
|
11 |
|
|
|
|
|
15 |
|
|
|
||||
Non-service retirement-related costs |
|
|
(7 |
) |
|
|
|
|
(20 |
) |
|
|
||||
Contract termination costs - product supply |
|
|
33 |
|
|
|
|
|
— |
|
|
|
||||
Income tax on adjustments(2) |
|
|
(13 |
) |
|
|
|
|
(4 |
) |
|
|
||||
Adjusted |
|
$ |
(14 |
) |
|
$ |
(0.12 |
) |
|
$ |
47 |
|
|
$ |
0.22 |
|
|
|
|
|
|
|
|
|
|
||||||||
Dividends on preferred stock used in adjusted EPS calculation(3) |
|
|
|
$ |
4 |
|
|
|
|
$ |
4 |
|||||
Weighted average shares for adjusted EPS(3) |
|
|
|
|
156 |
|
|
|
|
|
198 |
|||||
Fully diluted shares at end of period(4) |
|
|
|
|
155 |
|
|
|
|
|
||||||
| ____________________________ | ||
(1) |
|
Net (loss) income and EPS attributable to Xerox Holdings. |
(2) |
|
Refer to Effective Tax Rate reconciliation. |
(3) |
|
For those periods that include the preferred stock dividend, the average shares for the calculations of diluted EPS exclude the 7 million shares associated with Xerox Holdings Corporation's Series A Convertible preferred stock. |
(4) |
|
Represents common shares outstanding at March 31, 2022 and excludes potential dilutive common shares used for the calculation of adjusted diluted EPS for the first quarter 2022 as well as shares associated with our Series A convertible preferred stock, all of which were anti-dilutive for the first quarter 2022. |
Effective Tax Rate reconciliation: |
||||||||||||||||||||||
|
|
Three Months Ended March 31, 2022 |
|
Three Months Ended March 31, 2021 |
||||||||||||||||||
(in millions) |
|
Pre-Tax Loss |
|
Income Tax
|
|
Effective Tax
|
|
Pre-Tax
|
|
Income Tax
|
|
Effective Tax
|
||||||||||
Reported(1) |
|
$ |
(89 |
) |
|
$ |
(31 |
) |
|
34.8 |
% |
|
$ |
53 |
|
$ |
14 |
|
26.4 |
% |
||
Non-GAAP Adjustments(2) |
|
|
55 |
|
|
|
13 |
|
|
|
|
|
12 |
|
|
4 |
|
|
||||
Adjusted(3) |
|
$ |
(34 |
) |
|
$ |
(18 |
) |
|
52.9 |
% |
|
$ |
65 |
|
$ |
18 |
|
27.7 |
% |
||
| ____________________________ | ||
(1) |
|
Pre-tax (loss) income and income tax (benefit) expense. |
(2) |
|
Refer to Net (Loss) Income and EPS reconciliation for details. |
(3) |
|
The tax impact on Adjusted Pre-Tax (Loss) Income is calculated under the same accounting principles applied to the Reported Pre-Tax (Loss) Income under ASC 740, which employs an annual effective tax rate method to the results. |
Operating (Loss) Income and Margin reconciliation: |
||||||||||||||||||||||
|
|
Three Months Ended March 31, 2022 |
|
Three Months Ended March 31, 2021 |
||||||||||||||||||
(in millions) |
|
Loss |
|
Revenue |
|
Margin |
|
Profit |
|
Revenue |
|
Margin |
||||||||||
Reported(1) |
|
$ |
(89 |
) |
|
$ |
1,668 |
|
(5.3 |
)% |
|
$ |
53 |
|
$ |
1,710 |
|
3.1 |
% |
|||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Restructuring and related costs, net |
|
|
18 |
|
|
|
|
|
|
|
17 |
|
|
|
|
|||||||
Amortization of intangible assets |
|
|
11 |
|
|
|
|
|
|
|
15 |
|
|
|
|
|||||||
Other expenses, net |
|
|
57 |
|
|
|
|
|
|
|
4 |
|
|
|
|
|||||||
Adjusted |
|
$ |
(3 |
) |
|
$ |
1,668 |
|
(0.2 |
)% |
|
$ |
89 |
|
$ |
1,710 |
|
5.2 |
% |
|||
| ___________________________ | |
(1) |
Pre-tax (loss) income. |
Free Cash Flow reconciliation: |
||||||||
|
|
Three Months Ended March 31, |
||||||
(in millions) |
|
|
2022 |
|
|
|
2021 |
|
Reported(1) |
|
$ |
66 |
|
|
$ |
117 |
|
Less: capital expenditures |
|
|
(16 |
) |
|
|
(17 |
) |
Free Cash Flow |
|
$ |
50 |
|
|
$ |
100 |
|
| ____________________________ | ||
(1) |
Net cash provided by operating activities. |
|
Cash Flow |
||
(in millions) |
|
FY 2022 |
Operating Cash Flow (1) |
|
At least $475 |
Less: capital expenditures |
|
(75) |
Free Cash Flow |
|
At least $400 |
| ____________________________ | ||
(1) |
|
Net cash provided by operating activities. |
|
|
NOTE: Free cash flow guidance excludes payments associated with a first quarter 2022 contract termination charge. |
Xerox Holdings Corporation (Loss) Earnings per Common Share |
||||||||
(in millions, except per-share data, shares in thousands) |
|
Three Months Ended March 31, |
||||||
|
|
|
2022 |
|
|
|
2021 |
|
Basic (Loss) Earnings per Share: |
|
|
|
|
||||
Net (loss) income attributable to Xerox Holdings |
|
$ |
(56 |
) |
|
$ |
39 |
|
Accrued dividends on preferred stock |
|
|
(4 |
) |
|
|
(4 |
) |
Adjusted net (loss) income available to common shareholders |
|
$ |
(60 |
) |
|
$ |
35 |
|
Weighted average common shares outstanding |
|
|
156,362 |
|
|
|
195,985 |
|
|
|
|
|
|
||||
Basic (Loss) Earnings per Share |
|
$ |
(0.38 |
) |
|
$ |
0.18 |
|
|
|
|
|
|
||||
Diluted (Loss) Earnings per Share: |
|
|
|
|
||||
Net (Loss) Income attributable to Xerox Holdings |
|
$ |
(56 |
) |
|
$ |
39 |
|
Accrued dividends on preferred stock |
|
|
(4 |
) |
|
|
(4 |
) |
Adjusted net (loss) income available to common shareholders |
|
$ |
(60 |
) |
|
$ |
35 |
|
Weighted average common shares outstanding |
|
|
156,362 |
|
|
|
195,985 |
|
Common shares issuable with respect to: |
|
|
|
|
||||
Stock Options |
|
|
— |
|
|
|
— |
|
Restricted stock and performance shares |
|
|
— |
|
|
|
2,181 |
|
Convertible preferred stock |
|
|
— |
|
|
|
— |
|
Adjusted weighted average common shares outstanding |
|
|
156,362 |
|
|
|
198,166 |
|
|
|
|
|
|
||||
Diluted (Loss) Earnings per Share |
|
$ |
(0.38 |
) |
|
$ |
0.18 |
|
|
|
|
|
|
||||
The following securities were not included in the computation of diluted earnings per share as they were either contingently issuable shares or shares that if included would have been anti-dilutive: |
||||||||
Stock options |
|
|
612 |
|
|
|
693 |
|
Restricted stock and performance shares |
|
|
6,470 |
|
|
|
5,327 |
|
Convertible preferred stock |
|
|
6,742 |
|
|
|
6,742 |
|
Total Anti-Dilutive Securities |
|
|
13,824 |
|
|
|
12,762 |
|
|
|
|
|
|
||||
Dividends per Common Share |
|
$ |
0.25 |
|
|
$ |
0.25 |
|
Xerox Holdings Corporation Reportable Segments and Geographic Sales Channels
Our business is organized to ensure we focus on efficiently managing operations while serving our customers and the markets in which we operate.
During 2021 we progressed with the standing up of three new businesses: Software (CareAR), Financing (FITTLE) and Innovation (PARC). As a result of this effort, in first quarter 2022, we reassessed our operating and reportable segments and determined that based on the financial information reviewed by our chief operating decision maker (CODM), who is the Chief Executive Officer (CEO), as well as the CEO’s management and assessment of the Company’s operations, we had two operating and reportable segments.
Reportable Segments - Our reportable segments are aligned to our primary business operations and consist of the following:
We also determined that the other businesses, Software and Innovation, did not meet the requirements to be considered separate operating segments largely due to their continued management through the Print and Other segment as well as their immateriality to our results at this stage. Accordingly, those groups will continue to be reported as part of the Print and Other segment.
Product Groups - Our Equipment Sale groupings are as follows:
Sales Channels - We also operate a matrix organization that includes a geographic focus that is primarily organized from a sales perspective on the basis of “go-to-market” (GTM) sales channels. These sales channels consist of the following:
These GTM sales channels are structured to serve a range of customers for our products and services, including financing. Accordingly, we will continue to provide information, primarily revenue related, with respect to our principal GTM sales channels.
Компания видит увеличение объема страниц и отставания в записи; на прибыль влияют растущие затраты
Финансовая сводка
Выручка составила 1,67 миллиарда долларов, что на 2,5 процента меньше по сравнению с аналогичным периодом прошлого года или на 0,7 процента в постоянной валюте.
Прибыль на акцию (убыток) по GAAP (EPS) составила $(0,38), снизившись на $0,56 в годовом исчислении, а скорректированный (убыток) на акцию составил $(0,12), снизившись на $0,34 в годовом исчислении.
Маржа до налогообложения составила (5,3) процента, снизившись на 840 базисных пунктов, а скорректированная операционная маржа составила (0,2) процента, снизившись на 540 базисных пунктов в годовом исчислении.
Операционный денежный поток составил 66 миллионов долларов, что на 51 миллион долларов меньше по сравнению с аналогичным периодом прошлого года.
Свободный денежный поток в размере 50 миллионов долларов снизился на 50 миллионов долларов в годовом исчислении.
НОРУОЛК, Коннектикут.-- (BUSINESS WIRE)--Корпорация Xerox Holdings (NASDAQ: XRX) сегодня объявила о своих результатах за первый квартал 2022 года.
“Выручка в этом квартале соответствовала ожиданиям, несмотря на все более нестабильную операционную среду”, - сказал вице-председатель и генеральный директор Xerox Джон Визентин. “Основной спрос на наши продукты и услуги остается высоким, о чем свидетельствует наше растущее отставание и рост выручки после продажи. Широкомасштабное инфляционное давление и увеличение затрат на логистику из-за сбоев в цепочке поставок привели к операционным убыткам, но мы ожидаем, что со временем большая часть этого увеличения затрат будет компенсирована за счет изменения цен и дополнительной экономии на собственных ИТ-ресурсах Проекта. Мы по-прежнему сосредоточены на выполнении стратегической дорожной карты, представленной на нашем Дне инвестора в феврале, и стремимся монетизировать наши инвестиции в новые предприятия таким образом, чтобы максимизировать акционерную стоимость”.
Основные финансовые результаты за Первый квартал
(in millions, except per share data) |
Q1 2022 |
Q1 2021 |
B/(W)
|
% Change
|
Revenue |
$1,668 |
$1,710 |
$(42) |
(2.5) % AC
|
Gross Margin |
31.8% |
35.7% |
(390) bps |
|
RD&E % |
4.7% |
4.3% |
(40) bps |
|
SAG % |
27.3% |
26.2% |
(110) bps |
|
Pre-Tax (Loss) Income |
$(89) |
$53 |
$(142) |
NM |
Pre-Tax (Loss) Income Margin |
(5.3)% |
3.1% |
(840) bps |
|
Operating (Loss) Income - Adjusted1 |
$(3) |
$89 |
$(92) |
NM |
Operating (Loss) Income Margin - Adjusted1 |
(0.2)% |
5.2% |
(540) bps |
|
GAAP (Loss) Earnings per Share |
$(0.38) |
$0.18 |
$(0.56) |
NM |
(Loss) Earnings Per Share - Adjusted1 |
$(0.12) |
$0.22 |
$(0.34) |
NM |
| ___________ |
| (1) Refer to the “Non-GAAP Financial Measures” section of this release for a discussion of these non-GAAP measures and their reconciliation to the reported GAAP measures. |
Начиная с первого квартала 2022 года Компания изменила свои отчетные сегменты с одного отчетного сегмента на два отчетных сегмента - Печать и прочее, а также Финансирование (FITTLE). Отчетность финансового сегмента частично является результатом остановки этого бизнеса в 2021 году.
Результаты сегмента за Первый квартал
(in millions) |
Q1 2022 |
Q1 2021 |
B/(W)
|
% Change
|
Revenue |
|
|
|
|
Print and Other |
$1,550 |
$1,581 |
$(31) |
(2.0)% |
Financing (FITTLE) |
158 |
180 |
(22) |
(12.2)% |
Intersegment Elimination1 |
(40) |
(51) |
11 |
(21.6)% |
Total Revenue |
$1,668 |
$1,710 |
$(42) |
(2.5)% |
(Loss) Profit |
|
|
|
|
Print and Other |
$(20) |
$71 |
$(91) |
NM |
Financing (FITTLE) |
17 |
18 |
(1) |
(5.6)% |
Total (Loss) Profit |
$(3) |
$89 |
$(92) |
NM |
| ___________ |
| (1) Reflects net revenue, primarily commissions and other payments, made by the Financing segment (FITTLE) to the Print and Other Segment for the lease of Xerox equipment placements. |
Мы сохраняем наши прогнозы по доходам и денежным потокам на 2022 год. Наше руководство предполагает, что во второй половине года нарушения в цепочке поставок начнут ослабевать, а тенденции возвращения в офис продолжат улучшаться. Наше руководство по свободному денежному потоку исключает платежи, связанные с единовременной платой за расторжение контракта на поставку продукции в этом квартале.
Показатели, не относящиеся к GAAP
В этом выпуске рассматриваются следующие финансовые показатели, не относящиеся к ОПБУ:
Обратитесь к разделу “Финансовые показатели, не относящиеся к GAAP” этого выпуска для обсуждения этих показателей, не относящихся к GAAP, и их сверки с указанными показателями GAAP.
Прогнозные Заявления
Настоящий пресс-релиз и другие письменные или устные заявления, время от времени делаемые руководством, содержат “заявления о перспективах”, как это определено в Законе о реформе судебных разбирательств по частным ценным бумагам 1995 года. Слова “предвидеть”, ”верить“, "оценивать”, “ожидать”, “намереваться”, “будет”, “должен”, “нацеливаться”, “прогнозировать”, “управлять” и подобные выражения, поскольку они относятся к нам, нашей работе и /или нашей технологии, являются предназначен для определения прогнозных заявлений. Эти заявления отражают текущие убеждения, предположения и ожидания руководства и зависят от ряда факторов, которые могут привести к существенному отличию фактических результатов.
Такие факторы включают, но не ограничиваются следующим: эффект пандемий, такой как COVID-19 пандемией, наш и наших клиентов бизнесом и, насколько это повлияет на наши будущие результаты деятельности и общие финансовые показатели; наши способности для решения наших бизнес-задач для того, чтобы переломить компания откажется, сократить расходы и повысить производительность, так что мы можем инвестировать и развивать бизнес; нашу способность успешно разрабатывать новые продукты, технологии и услуги, и, чтобы защитить наши права на интеллектуальную собственность; полагаться на третьих лиц, включая субподрядчиков, на производство товаров и оказание услуг, а также общая служба, соглашения, заключенные нами в рамках проекта владеть ею; нашу способность привлекать и удерживать ключевых сотрудников; риск того, что конфиденциальная и/или индивидуально идентифицируемой информации о нас, наших заказчиков, клиентов и сотрудников могут быть нечаянно раскрыта или раскрыта в результате нарушения наших систем безопасности из-за кибер-атаки или другие умышленные действия или, что кибератаки могут привести к блокировке наших систем; риск того, что партнеров, субподрядчиков и поставщиков, не выполнять своевременно, качественно; действия конкурентов, а также нашу способность быстро и эффективно реагировать на изменения технологий и ожиданиям клиентов; нашу способность получать адекватные цены для наших продуктов и услуг, а также для сохранения и улучшения эффективности операций, в том числе экономия от реструктуризации и трансформации действий; нашу способность управлять изменениями в печатной среде, как снижение объема печатных страниц и расширения оборудования мест размещения; изменения в экономических и политических условий, торговля меры защиты, лицензионных требований и налогового законодательства в США и в зарубежных странах, в которых мы занимаемся бизнесом; риск того, что многолетние контракты с государственными ведомствами может быть расторгнут до окончания срока действия договора, а гражданские или уголовные наказания и административные взыскания могут быть наложены на нас, если мы не будем соблюдать условия таких контрактов и действующим законодательством; процентные ставки, стоимости заемных средств и доступа к кредитным рынкам; введение новых или добавочных защитных торговых мер, таких, как тарифы и импортные или экспортные ограничения; потребности в финансировании, связанные с нашим сотрудником пенсионного и здоровья пенсионеров планов; изменение валютных курсов; риск того, что наши операции и товаров может не соответствовать действующим нормативным требованиям во всем мире, особенно экологических норм и директив и антикоррупционного законодательства; решений судебных и контролирующих процедур, к которым мы можем быть участником, а также любые последствия в результате перестройки наших отношений с Fujifilm предприятием корпорации. Дополнительные риски, которые могут повлиять на деятельность Xerox, и другие факторы изложены в разделе “Факторы риска”, разделе “Судебные разбирательства”, разделе “Обсуждение и анализ руководством финансового состояния и результатов деятельности” и других разделах объединенного Годового отчета Xerox Holdings Corporation и Xerox Corporation за 2021 год о Форма 10-K и объединенные квартальные отчеты по форме 10-Q, а также в Текущих отчетах Xerox Holdings Corporation и Xerox Corporation по форме 8-K, поданных в Комиссию по ценным бумагам и биржам.
Эти прогнозные заявления относятся только к дате настоящего выпуска или к дате, на которую они ссылаются, и Xerox не берет на себя никаких обязательств по обновлению каких-либо прогнозных заявлений в результате новой информации или будущих событий или разработок, за исключением случаев, предусмотренных законом.
Примечание: Чтобы получать новостные ленты RSS, посетите https://www.news.xerox.com . Для получения открытых комментариев, отраслевых перспектив и мнений посетите http://www.linkedin.com/company/xerox , http://twitter.com/xerox , http://www.facebook.com/XeroxCorp , https://www.instagram.com/xerox /, http://www.youtube.com/XeroxCorp .
Xerox® является торговой маркой Xerox в Соединенных Штатах и/или других странах.
Xerox Holdings CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME (UNAUDITED) |
||||||||
|
|
Three Months Ended March 31, |
||||||
(in millions, except per-share data) |
|
|
2022 |
|
|
|
2021 |
|
Revenues |
|
|
|
|
||||
Sales |
|
$ |
592 |
|
|
$ |
602 |
|
Services, maintenance and rentals |
|
|
1,023 |
|
|
|
1,053 |
|
Financing |
|
|
53 |
|
|
|
55 |
|
Total Revenues |
|
|
1,668 |
|
|
|
1,710 |
|
Costs and Expenses |
|
|
|
|
||||
Cost of sales |
|
|
435 |
|
|
|
420 |
|
Cost of services, maintenance and rentals |
|
|
679 |
|
|
|
651 |
|
Cost of financing |
|
|
24 |
|
|
|
28 |
|
Research, development and engineering expenses |
|
|
78 |
|
|
|
74 |
|
Selling, administrative and general expenses |
|
|
455 |
|
|
|
448 |
|
Restructuring and related costs, net |
|
|
18 |
|
|
|
17 |
|
Amortization of intangible assets |
|
|
11 |
|
|
|
15 |
|
Other expenses, net |
|
|
57 |
|
|
|
4 |
|
Total Costs and Expenses |
|
|
1,757 |
|
|
|
1,657 |
|
(Loss) Income before Income Taxes & Equity Income(1) |
|
|
(89 |
) |
|
|
53 |
|
Income tax (benefit) expense |
|
|
(31 |
) |
|
|
14 |
|
Equity in net income of unconsolidated affiliates |
|
|
1 |
|
|
|
— |
|
Net (Loss) Income |
|
|
(57 |
) |
|
|
39 |
|
Less: Net loss attributable to noncontrolling interests |
|
|
(1 |
) |
|
|
— |
|
Net (Loss) Income Attributable to Xerox Holdings |
|
$ |
(56 |
) |
|
$ |
39 |
|
|
|
|
|
|
||||
Basic (Loss) Earnings per Share |
|
$ |
(0.38 |
) |
|
$ |
0.18 |
|
Diluted (Loss) Earnings per Share |
|
$ |
(0.38 |
) |
|
$ |
0.18 |
|
| ___________________________ |
| (1) Referred to as “Pre-Tax (Loss) Income” throughout the remainder of this document. |
Xerox Holdings CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (UNAUDITED) |
||||||||
|
|
Three Months Ended March 31, |
||||||
(in millions) |
|
|
2022 |
|
|
|
2021 |
|
Net (Loss) Income |
|
$ |
(57 |
) |
|
$ |
39 |
|
Less: Net loss attributable to noncontrolling interests |
|
|
(1 |
) |
|
|
— |
|
Net (Loss) Income Attributable to Xerox Holdings |
|
|
(56 |
) |
|
|
39 |
|
|
|
|
|
|
||||
Other Comprehensive (Loss) Income, Net |
|
|
|
|
||||
Translation adjustments, net |
|
|
(72 |
) |
|
|
(51 |
) |
Unrealized losses, net |
|
|
(11 |
) |
|
|
(7 |
) |
Changes in defined benefit plans, net |
|
|
39 |
|
|
|
55 |
|
Other Comprehensive Loss, Net Attributable to Xerox Holdings |
|
|
(44 |
) |
|
|
(3 |
) |
|
|
|
|
|
||||
Comprehensive (Loss) Income, Net |
|
|
(101 |
) |
|
|
36 |
|
Less: Comprehensive loss, net attributable to noncontrolling interests |
|
|
(1 |
) |
|
|
— |
|
Comprehensive (Loss) Income, Net Attributable to Xerox Holdings |
|
$ |
(100 |
) |
|
$ |
36 |
|
Xerox Holdings CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
||||||||
(in millions, except share data in thousands) |
|
March 31, 2022 |
|
December 31, 2021 |
||||
Assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
1,681 |
|
|
$ |
1,840 |
|
Accounts receivable (net of allowance of $63 and $58, respectively) |
|
|
807 |
|
|
|
818 |
|
Billed portion of finance receivables (net of allowance of $3 and $4, respectively) |
|
|
89 |
|
|
|
94 |
|
Finance receivables, net |
|
|
1,023 |
|
|
|
1,042 |
|
Inventories |
|
|
732 |
|
|
|
696 |
|
Other current assets |
|
|
234 |
|
|
|
211 |
|
Total current assets |
|
|
4,566 |
|
|
|
4,701 |
|
Finance receivables due after one year (net of allowance of $117 and $114, respectively) |
|
|
1,893 |
|
|
|
1,934 |
|
Equipment on operating leases, net |
|
|
254 |
|
|
|
253 |
|
Land, buildings and equipment, net |
|
|
350 |
|
|
|
358 |
|
Intangible assets, net |
|
|
240 |
|
|
|
211 |
|
Goodwill |
|
|
3,300 |
|
|
|
3,287 |
|
Deferred tax assets |
|
|
528 |
|
|
|
519 |
|
Other long-term assets |
|
|
1,951 |
|
|
|
1,960 |
|
Total Assets |
|
$ |
13,082 |
|
|
$ |
13,223 |
|
Liabilities and Equity |
|
|
|
|
||||
Short-term debt and current portion of long-term debt |
|
$ |
1,450 |
|
|
$ |
650 |
|
Accounts payable |
|
|
1,183 |
|
|
|
1,069 |
|
Accrued compensation and benefits costs |
|
|
258 |
|
|
|
239 |
|
Accrued expenses and other current liabilities |
|
|
878 |
|
|
|
871 |
|
Total current liabilities |
|
|
3,769 |
|
|
|
2,829 |
|
Long-term debt |
|
|
2,821 |
|
|
|
3,596 |
|
Pension and other benefit liabilities |
|
|
1,359 |
|
|
|
1,373 |
|
Post-retirement medical benefits |
|
|
247 |
|
|
|
277 |
|
Other long-term liabilities |
|
|
473 |
|
|
|
481 |
|
Total Liabilities |
|
|
8,669 |
|
|
|
8,556 |
|
|
|
|
|
|
||||
Noncontrolling Interests |
|
|
10 |
|
|
|
10 |
|
|
|
|
|
|
||||
Convertible Preferred Stock |
|
|
214 |
|
|
|
214 |
|
|
|
|
|
|
||||
Common stock |
|
|
156 |
|
|
|
168 |
|
Additional paid-in capital |
|
|
1,560 |
|
|
|
1,802 |
|
Treasury stock, at cost |
|
|
(32 |
) |
|
|
(177 |
) |
Retained earnings |
|
|
5,532 |
|
|
|
5,631 |
|
Accumulated other comprehensive loss |
|
|
(3,032 |
) |
|
|
(2,988 |
) |
Xerox Holdings shareholders’ equity |
|
|
4,184 |
|
|
|
4,436 |
|
Noncontrolling interests |
|
|
5 |
|
|
|
7 |
|
Total Equity |
|
|
4,189 |
|
|
|
4,443 |
|
Total Liabilities and Equity |
|
$ |
13,082 |
|
|
$ |
13,223 |
|
|
|
|
|
|
||||
Shares of common stock issued |
|
|
156,358 |
|
|
|
168,069 |
|
Treasury stock |
|
|
(1,508 |
) |
|
|
(8,675 |
) |
Shares of Common Stock Outstanding |
|
|
154,850 |
|
|
|
159,394 |
|
Xerox Holdings CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
||||||||
|
|
Three Months Ended March 31, |
||||||
(in millions) |
|
|
2022 |
|
|
|
2021 |
|
Cash Flows from Operating Activities |
|
|
|
|
||||
Net (loss) income |
|
$ |
(57 |
) |
|
$ |
39 |
|
|
|
|
|
|
||||
Adjustments required to reconcile Net (loss) income to Cash flows from operating activities |
|
|
|
|
||||
Depreciation and amortization |
|
|
72 |
|
|
|
86 |
|
Provisions |
|
|
19 |
|
|
|
20 |
|
Stock-based compensation |
|
|
15 |
|
|
|
16 |
|
Restructuring and asset impairment charges |
|
|
20 |
|
|
|
21 |
|
Payments for restructurings |
|
|
(7 |
) |
|
|
(27 |
) |
Non-service retirement-related costs |
|
|
(7 |
) |
|
|
(20 |
) |
Contributions to retirement plans |
|
|
(38 |
) |
|
|
(41 |
) |
Decrease in accounts receivable and billed portion of finance receivables |
|
|
13 |
|
|
|
92 |
|
Increase in inventories |
|
|
(31 |
) |
|
|
(18 |
) |
Increase in equipment on operating leases |
|
|
(36 |
) |
|
|
(28 |
) |
Decrease in finance receivables |
|
|
41 |
|
|
|
37 |
|
(Increase) decrease in other current and long-term assets |
|
|
(1 |
) |
|
|
18 |
|
Increase (decrease) in accounts payable |
|
|
111 |
|
|
|
(31 |
) |
Increase (decrease) in accrued compensation |
|
|
22 |
|
|
|
(10 |
) |
Decrease in other current and long-term liabilities |
|
|
(43 |
) |
|
|
(35 |
) |
Net change in income tax assets and liabilities |
|
|
(39 |
) |
|
|
6 |
|
Net change in derivative assets and liabilities |
|
|
7 |
|
|
|
3 |
|
Other operating, net |
|
|
5 |
|
|
|
(11 |
) |
Net cash provided by operating activities |
|
|
66 |
|
|
|
117 |
|
Cash Flows from Investing Activities |
|
|
|
|
||||
Cost of additions to land, buildings, equipment and software |
|
|
(16 |
) |
|
|
(17 |
) |
Acquisitions, net of cash acquired |
|
|
(54 |
) |
|
|
— |
|
Other investing, net |
|
|
(5 |
) |
|
|
— |
|
Net cash used in investing activities |
|
|
(75 |
) |
|
|
(17 |
) |
Cash Flows from Financing Activities |
|
|
|
|
||||
Net proceeds (payments) on debt |
|
|
22 |
|
|
|
(95 |
) |
Dividends |
|
|
(46 |
) |
|
|
(54 |
) |
Payments to acquire treasury stock, including fees |
|
|
(113 |
) |
|
|
(162 |
) |
Other financing, net |
|
|
(12 |
) |
|
|
(7 |
) |
Net cash used in financing activities |
|
|
(149 |
) |
|
|
(318 |
) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
10 |
|
|
|
(12 |
) |
Decrease in cash, cash equivalents and restricted cash |
|
|
(148 |
) |
|
|
(230 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
|
1,909 |
|
|
|
2,691 |
|
Cash, Cash Equivalents and Restricted Cash at End of Period |
|
$ |
1,761 |
|
|
$ |
2,461 |
|
Обзор первого квартала 2022 года
В течение первого квартала 2022 года наш бизнес столкнулся с рядом проблем. Ограничения предложения по-прежнему сдерживали нашу способность удовлетворять спрос, что привело к росту нашего отставания1 до 422 миллионов долларов, что на 21% больше и почти в три раза превышает показатели предыдущего года. Поскольку спрос и отставание растут, мы сосредоточены на поддержании нашего уровня удовлетворенности клиентов. Мы по-прежнему ожидаем, что ограничения в цепочке поставок начнут ослабевать во второй половине года. В первом квартале 2022 года мы действительно увидели небольшое улучшение объемов страниц и выручки после продажи, обусловленной объемами продаж, особенно в марте, когда использование Omicron пошло на убыль и все больше сотрудников вернулись в офис. Данные сторонних 2 указывают на то, что набирающий обороты процесс возвращения к офисным тенденциям набирает обороты. Мы ожидаем постепенного улучшения посещаемости рабочих мест с каждым месяцем и более широкого возвращения сотрудников в офис во второй половине года. Наконец, в первом квартале 2022 года мы также наблюдали ускорение инфляционного давления на затраты по всему нашему бизнесу, особенно на логистику и рабочую силу. Мы ввели ряд повышений цен и в настоящее время рассчитываем компенсировать это связанное с инфляцией увеличение затрат с течением времени, поскольку мы применяем корректировку цен в рамках нашего контрактного бизнеса и дополнительно рационализируем нашу базу затрат. Что касается войны на Украине, то мы прекратили поставки в Россию, когда были введены санкции. Результирующие финансовые последствия до сих пор были минимальными. В целом на долю Евразийского региона в 2021 году пришелся низкий однозначный процент нашей выручки и операционной прибыли. Несмотря на эти неопределенности, мы сохраняем наши прогнозы по доходам и денежным потокам, поскольку мы по-прежнему ожидаем, что ограничения в цепочке поставок и тенденции возвращения в офис улучшатся во второй половине года, и мы принимаем контрмеры в ответ на геополитическую неопределенность и инфляционное давление.
Изменение Отчетного сегмента
Начиная с первого квартала 2022 года Компания изменила свои отчетные сегменты с одного отчетного сегмента на два отчетных сегмента - Печать и прочее, а также Финансирование (FITTLE), чтобы соответствовать изменениям в том, как Главный операционный директор (CODM), наш Главный исполнительный директор (CEO), распределяет ресурсов и оценивает эффективность в соответствии с ключевыми стратегиями роста Компании. Таким образом, результаты отчетных сегментов за предыдущий период и соответствующая информация были приведены в соответствие с текущими отчетными сегментами Компании.
| __________________________ | ||
(1) |
|
Order backlog is measured as the value of unfulfilled sales orders, shipped and non-shipped, received from our customers waiting to be installed, including orders with future installation dates. It includes printing devices as well as IT hardware associated with our IT services offerings. First quarter 2022 backlog of $422 million excludes sales orders from Russia and Powerland Computers, Ltd., which was acquired in the first quarter of 2022. |
(2) |
|
Third party data is from Kastle Systems U.S. offices badge swipe data metric. |
Financial Review Revenues |
||||||||||||||||
|
|
Three Months Ended March 31, |
|
|
|
|
|
% of Total Revenue |
||||||||
(in millions) |
|
|
2022 |
|
|
|
2021 |
|
|
%
|
|
CC %
|
|
2022 |
|
2021 |
Equipment sales |
|
$ |
314 |
|
|
$ |
381 |
|
|
(17.6)% |
|
(16.1)% |
|
19% |
|
22% |
Post sale revenue |
|
|
1,354 |
|
|
|
1,329 |
|
|
1.9% |
|
3.7% |
|
81% |
|
78% |
Total Revenue |
|
$ |
1,668 |
|
|
$ |
1,710 |
|
|
(2.5)% |
|
(0.7)% |
|
100% |
|
100% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reconciliation to Condensed Consolidated Statements of (Loss) Income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Sales |
|
$ |
592 |
|
|
$ |
602 |
|
|
(1.7)% |
|
0.1% |
|
|
|
|
Less: Supplies, paper and other sales |
|
|
(278 |
) |
|
|
(221 |
) |
|
25.8% |
|
28.0% |
|
|
|
|
Equipment Sales |
|
$ |
314 |
|
|
$ |
381 |
|
|
(17.6)% |
|
(16.1)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Services, maintenance and rentals |
|
$ |
1,023 |
|
|
$ |
1,053 |
|
|
(2.8)% |
|
(1.1)% |
|
|
|
|
Add: Supplies, paper and other sales |
|
|
278 |
|
|
|
221 |
|
|
25.8% |
|
28.0% |
|
|
|
|
Add: Financing |
|
|
53 |
|
|
|
55 |
|
|
(3.6)% |
|
(2.5)% |
|
|
|
|
Post Sale Revenue |
|
$ |
1,354 |
|
|
$ |
1,329 |
|
|
1.9% |
|
3.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Segments |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Print and Other |
|
$ |
1,550 |
|
|
$ |
1,581 |
|
|
(2.0)% |
|
|
|
93% |
|
92% |
Financing (FITTLE) |
|
|
158 |
|
|
|
180 |
|
|
(12.2)% |
|
|
|
9% |
|
11% |
Intersegment elimination (1) |
|
|
(40 |
) |
|
|
(51 |
) |
|
(21.6)% |
|
|
|
(2)% |
|
(3)% |
Total Revenue(2) |
|
$ |
1,668 |
|
|
$ |
1,710 |
|
|
(2.5)% |
|
|
|
100% |
|
100% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Go-to-Market Operations |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Americas |
|
$ |
1,071 |
|
|
$ |
1,076 |
|
|
(0.5)% |
|
(0.4)% |
|
64% |
|
63% |
EMEA |
|
|
554 |
|
|
|
587 |
|
|
(5.6)% |
|
(0.8)% |
|
33% |
|
34% |
Other |
|
|
43 |
|
|
|
47 |
|
|
(8.5)% |
|
(8.5)% |
|
3% |
|
3% |
Total Revenue(2) |
|
$ |
1,668 |
|
|
$ |
1,710 |
|
|
(2.5)% |
|
(0.7)% |
|
100% |
|
100% |
| ____________________________ | |
CC - |
See "Constant Currency" in the Non-GAAP Financial Measures section for a description of constant currency. |
(1) |
Reflects net revenue, primarily commissions and other payments, made by the Financing segment (FITTLE) to the Print and Other segment for the lease of Xerox equipment placements. |
(2) |
Refer to Appendix II, Reportable Segments and Geographic Sales Channels, for definitions. |
Расходы, Расходы и Прочие доходы Краткое изложение ключевых финансовых показателей
Ниже приводится краткое изложение ключевых финансовых коэффициентов, используемых для оценки нашей деятельности:
|
|
Three Months Ended March 31, |
|||||||||||
(in millions) |
|
|
2022 |
|
|
2021 |
|
B/(W) |
|||||
Gross Profit |
|
$ |
530 |
|
|
$ |
611 |
|
|
$ |
(81 |
) |
|
RD&E |
|
|
78 |
|
|
|
74 |
|
|
|
(4 |
) |
|
SAG |
|
|
455 |
|
|
|
448 |
|
|
|
(7 |
) |
|
|
|
|
|
|
|
|
|
||||||
Equipment Gross Margin |
|
|
20.4 |
% |
|
|
27.9 |
% |
|
|
(7.5 |
) |
pts. |
Post sale Gross Margin |
|
|
34.4 |
% |
|
|
38.0 |
% |
|
|
(3.6 |
) |
pts. |
Total Gross Margin |
|
|
31.8 |
% |
|
|
35.7 |
% |
|
|
(3.9 |
) |
pts. |
RD&E as a % of Revenue |
|
|
4.7 |
% |
|
|
4.3 |
% |
|
|
(0.4 |
) |
pts. |
SAG as a % of Revenue |
|
|
27.3 |
% |
|
|
26.2 |
% |
|
|
(1.1 |
) |
pts. |
|
|
|
|
|
|
|
|
||||||
Pre-tax (Loss) Income |
|
$ |
(89 |
) |
|
$ |
53 |
|
|
$ |
(142 |
) |
|
Pre-tax (Loss) Income Margin |
|
|
(5.3 |
)% |
|
|
3.1 |
% |
|
|
(8.4 |
) |
pts. |
|
|
|
|
|
|
|
|
||||||
Adjusted(1) Operating (Loss) Profit |
|
$ |
(3 |
) |
|
$ |
89 |
|
|
$ |
(92 |
) |
|
Adjusted(1) Operating (Loss) Income Margin |
|
|
(0.2 |
)% |
|
|
5.2 |
% |
|
|
(5.4 |
) |
pts. |
| ____________________________ |
| (1) Refer to the Non-GAAP Financial Measures section for an explanation of the non-GAAP financial measure. |
Other Expenses, Net |
||||||||
|
|
Three Months Ended March 31, |
||||||
(in millions) |
|
|
2022 |
|
|
|
2021 |
|
Non-financing interest expense |
|
$ |
29 |
|
|
$ |
24 |
|
Interest income |
|
|
(1 |
) |
|
|
(1 |
) |
Non-service retirement-related costs |
|
|
(7 |
) |
|
|
(20 |
) |
Currency losses, net |
|
|
— |
|
|
|
2 |
|
Contract termination costs - product supply |
|
|
33 |
|
|
|
— |
|
All other expenses, net |
|
|
3 |
|
|
|
(1 |
) |
Other expenses, net |
|
$ |
57 |
|
|
$ |
4 |
|
Segment Review |
|||||||||||||||||||||||
|
|
Three Months Ended March 31, |
|||||||||||||||||||||
(in millions) |
|
External Net
|
|
Intersegment
|
|
Total
|
|
% of Total
|
|
Segment
|
|
Segment
|
|
||||||||||
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Print and Other |
|
$ |
1,513 |
|
$ |
37 |
|
$ |
1,550 |
|
91 |
% |
|
$ |
(20 |
) |
|
(1.3 |
)% |
|
|||
Financing (FITTLE) |
|
|
155 |
|
|
3 |
|
|
158 |
|
9 |
% |
|
|
17 |
|
|
11.0 |
% |
|
|||
Total |
|
$ |
1,668 |
|
$ |
40 |
|
$ |
1,708 |
|
100 |
% |
|
$ |
(3 |
) |
|
(0.2 |
)% |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Print and Other |
|
$ |
1,533 |
|
$ |
48 |
|
$ |
1,581 |
|
90 |
% |
|
$ |
71 |
|
|
4.6 |
% |
|
|||
Financing (FITTLE) |
|
|
177 |
|
|
3 |
|
|
180 |
|
10 |
% |
|
|
18 |
|
|
10.2 |
% |
|
|||
Total |
|
$ |
1,710 |
|
$ |
51 |
|
$ |
1,761 |
|
100 |
% |
|
$ |
89 |
|
|
5.2 |
% |
|
|||
| _____________ | ||
(1) |
|
Reflects net revenue, primarily commissions and other payments, made by the Financing segment (FITTLE) to the Print and Other segment for the lease of Xerox equipment placements. |
(2) |
|
Segment margin based on external net revenue only. |
Печать и другие
Печать и прочее включает в себя проектирование, разработку и продажу систем, решений и услуг для управления документами, а также связанных с ними технологических предложений, включая ИТ и программные продукты и услуги.
Revenue |
||||||||||
|
|
Three Months Ended March 31, |
|
|
||||||
(in millions) |
|
|
2022 |
|
|
2021 |
|
%
|
||
Equipment sales |
|
$ |
309 |
|
$ |
373 |
|
(17.2)% |
||
Post-sale revenue |
|
|
1,204 |
|
|
1,160 |
|
3.8% |
||
Intersegment net revenue (1) |
|
|
37 |
|
|
48 |
|
(22.9)% |
||
Total Print and Other Revenue |
|
$ |
1,550 |
|
$ |
1,581 |
|
(2.0)% |
||
| ___________________________ | ||
(1) |
|
Reflects net revenue, primarily commissions and other payments, made by the Financing segment (FITTLE) to the Print and Other segment for the lease of Xerox equipment placements. |
Подробная информация по группам продуктов приведена ниже.
|
|
Three Months Ended March 31, |
|
|
|
|
|
% of Equipment Sales |
||||||||
(in millions) |
|
|
2022 |
|
|
|
2021 |
|
|
%
|
|
CC %
|
|
2022 |
|
2021 |
Entry |
|
$ |
61 |
|
$ |
68 |
|
(10.3)% |
|
(7.6)% |
|
19% |
|
18% |
||
Mid-range |
|
|
194 |
|
|
238 |
|
(18.5)% |
|
(17.1)% |
|
62% |
|
63% |
||
High-end |
|
|
54 |
|
|
70 |
|
(22.9)% |
|
(21.0)% |
|
17% |
|
18% |
||
Other |
|
|
5 |
|
|
5 |
|
—% |
|
—% |
|
2% |
|
1% |
||
Equipment Sales (1),(2) |
|
$ |
314 |
|
$ |
381 |
|
(17.6)% |
|
(16.1)% |
|
100% |
|
100% |
||
| _____________ | |
CC - |
See "Constant Currency" in the Non-GAAP Financial Measures section for a description of constant currency. |
(1) |
Refer to Appendix II, Reportable Segments and Geographic Sales Channels, for definitions. |
(2) |
Includes $5 million of equipment sales related to the Financing (FITTLE) segment. |
Финансирование (FITTLE)
Финансирование (FITTLE) представляет собой глобальный бизнес финансовых решений, в первую очередь позволяющий продавать наше оборудование и услуги.
Revenue |
||||||||||
|
|
Three Months Ended March 31, |
|
|
||||||
(in millions) |
|
|
2022 |
|
|
|
2021 |
|
|
%
|
Equipment sales |
|
$ |
5 |
|
$ |
8 |
|
(37.5)% |
||
Financing |
|
|
53 |
|
|
55 |
|
(3.6)% |
||
Other Post-sale revenue (1) |
|
|
97 |
|
|
117 |
|
(17.1)% |
||
Intersegment net revenue |
|
|
3 |
|
|
— |
|
NM |
||
Total Financing (FITTLE) Revenue |
|
$ |
158 |
|
$ |
180 |
|
(12.2)% |
||
| ___________________________ | ||
(1) |
|
Other Post-sale revenue includes operating lease/rental revenues as well as lease renewal and fee income. |
Обзор сегмента 2021 года
Ниже приведены наши результаты за 2021 год, которые для целей сравнения соответствуют отчетности нового сегмента за 2022 год.
(in millions) |
|
External Net
|
|
Intersegment
|
|
Total
|
|
% of Total
|
|
Segment
|
|
Segment
|
||||||||||
Q1 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Print and Other |
|
$ |
1,533 |
|
$ |
48 |
|
$ |
1,581 |
|
90 |
% |
|
$ |
71 |
|
4.6 |
% |
||||
Financing (FITTLE) |
|
|
177 |
|
|
3 |
|
|
180 |
|
10 |
% |
|
|
18 |
|
10.2 |
% |
||||
Total |
|
$ |
1,710 |
|
$ |
51 |
|
$ |
1,761 |
|
100 |
% |
|
$ |
89 |
|
5.2 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Q2 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Print and Other |
|
$ |
1,619 |
|
$ |
53 |
|
$ |
1,672 |
|
90 |
% |
|
$ |
111 |
|
6.9 |
% |
||||
Financing (FITTLE) |
|
|
174 |
|
|
3 |
|
|
177 |
|
10 |
% |
|
|
15 |
|
8.6 |
% |
||||
Total |
|
$ |
1,793 |
|
$ |
56 |
|
$ |
1,849 |
|
100 |
% |
|
$ |
126 |
|
7.0 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Q3 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Print and Other |
|
$ |
1,590 |
|
$ |
46 |
|
$ |
1,636 |
|
91 |
% |
|
$ |
50 |
|
3.1 |
% |
||||
Financing (FITTLE) |
|
|
168 |
|
|
3 |
|
|
171 |
|
9 |
% |
|
|
24 |
|
14.3 |
% |
||||
Total |
|
$ |
1,758 |
|
$ |
49 |
|
$ |
1,807 |
|
100 |
% |
|
$ |
74 |
|
4.2 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Q4 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Print and Other |
|
$ |
1,613 |
|
$ |
46 |
|
$ |
1,659 |
|
91 |
% |
|
$ |
61 |
|
3.8 |
% |
||||
Financing (FITTLE) |
|
|
164 |
|
|
3 |
|
|
167 |
|
9 |
% |
|
|
25 |
|
15.2 |
% |
||||
Total |
|
$ |
1,777 |
|
$ |
49 |
|
$ |
1,826 |
|
100 |
% |
|
$ |
86 |
|
4.8 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Print and Other |
|
$ |
6,355 |
|
$ |
193 |
|
$ |
6,548 |
|
90 |
% |
|
$ |
293 |
|
4.6 |
% |
||||
Financing (FITTLE) |
|
|
683 |
|
|
12 |
|
|
695 |
|
10 |
% |
|
|
82 |
|
12.0 |
% |
||||
Total |
|
$ |
7,038 |
|
$ |
205 |
|
$ |
7,243 |
|
100 |
% |
|
$ |
375 |
|
5.3 |
% |
||||
| _____________ | ||
(1) |
|
Reflects net revenue, primarily commissions and other payments, made by the Financing segment (FITTLE) to the Print and Other segment for the lease of Xerox equipment placements. |
(2) |
|
Segment margin based on external net revenue only. |
Прогнозные заявления
Настоящий пресс-релиз и другие письменные или устные заявления, время от времени делаемые руководством, содержат “заявления прогнозного характера”, как это определено в Законе о реформе судебных разбирательств по частным ценным бумагам 1995 года. Слова “предвидеть”, ”верить“, "оценивать”, “ожидать”, “намереваться”, “будет”, “должен”, “нацеливаться”, “прогнозировать”, “управлять” и подобные выражения, поскольку они относятся к нам, нашей работе и /или нашей технологии, являются предназначен для определения прогнозных заявлений. Эти заявления отражают текущие убеждения, предположения и ожидания руководства и зависят от ряда факторов, которые могут привести к существенному отличию фактических результатов.
Такие факторы включают, но не ограничиваются следующим: эффект пандемий, такой как COVID-19 пандемией, наш и наших клиентов бизнесом и, насколько это повлияет на наши будущие результаты деятельности и общие финансовые показатели; наши способности для решения наших бизнес-задач для того, чтобы переломить компания откажется, сократить расходы и повысить производительность, так что мы можем инвестировать и развивать бизнес; нашу способность успешно разрабатывать новые продукты, технологии и услуги, и, чтобы защитить наши права на интеллектуальную собственность; полагаться на третьих лиц, включая субподрядчиков, на производство товаров и оказание услуг, а также общая служба, соглашения, заключенные нами в рамках проекта владеть ею; нашу способность привлекать и удерживать ключевых сотрудников; риск того, что конфиденциальная и/или индивидуально идентифицируемой информации о нас, наших заказчиков, клиентов и сотрудников могут быть нечаянно раскрыта или раскрыта в результате нарушения наших систем безопасности из-за кибер-атаки или другие умышленные действия или, что кибератаки могут привести к блокировке наших систем; риск того, что партнеров, субподрядчиков и поставщиков, не выполнять своевременно, качественно; действия конкурентов, а также нашу способность быстро и эффективно реагировать на изменения технологий и ожиданиям клиентов; нашу способность получать адекватные цены для наших продуктов и услуг, а также для сохранения и улучшения эффективности операций, в том числе экономия от реструктуризации и трансформации действий; нашу способность управлять изменениями в печатной среде, как снижение объема печатных страниц и расширения оборудования мест размещения; изменения в экономических и политических условий, торговля меры защиты, лицензионных требований и налогового законодательства в США и в зарубежных странах, в которых мы занимаемся бизнесом; риск того, что многолетние контракты с государственными ведомствами может быть расторгнут до окончания срока действия договора, а гражданские или уголовные наказания и административные взыскания могут быть наложены на нас, если мы не будем соблюдать условия таких контрактов и действующим законодательством; процентные ставки, стоимости заемных средств и доступа к кредитным рынкам; введение новых или добавочных защитных торговых мер, таких, как тарифы и импортные или экспортные ограничения; потребности в финансировании, связанные с нашим сотрудником пенсионного и здоровья пенсионеров планов; изменение валютных курсов; риск того, что наши операции и товаров может не соответствовать действующим нормативным требованиям во всем мире, особенно экологических норм и директив и антикоррупционного законодательства; решений судебных и контролирующих процедур, к которым мы можем быть участником, а также любые последствия в результате перестройки наших отношений с Fujifilm предприятием корпорации.
Дополнительные риски, которые могут повлиять на деятельность Xerox, и другие факторы изложены в разделе “Факторы риска”, разделе “Судебные разбирательства”, разделе “Обсуждение и анализ руководством финансового состояния и результатов деятельности” и других разделах объединенного Годового отчета Xerox Holdings Corporation и Xerox Corporation за 2021 год о Форма 10-K и объединенные квартальные отчеты по форме 10-Q, а также в Текущих отчетах Xerox Holdings Corporation и Xerox Corporation по форме 8-K, поданных в Комиссию по ценным бумагам и биржам.
Эти прогнозные заявления относятся только к дате настоящего выпуска или к дате, на которую они ссылаются, и Xerox не берет на себя никаких обязательств по обновлению каких-либо прогнозных заявлений в результате новой информации или будущих событий или событий, за исключением случаев, предусмотренных законом.
Финансовые показатели, Не относящиеся к ОПБУ
Мы представили отчет о наших финансовых результатах в соответствии с общепринятыми принципами бухгалтерского учета (GAAP). Кроме того, мы обсудили наши финансовые результаты с использованием показателей, не относящихся к GAAP, описанных ниже. Мы считаем, что эти показатели, не относящиеся к GAAP, позволяют инвесторам лучше понять тенденции в нашем бизнесе, а также лучше понять и сравнить наши результаты. Соответственно, мы считаем необходимым скорректировать несколько отчетных сумм, определенных в соответствии с GAAP, чтобы исключить влияние определенных статей, а также связанных с ними последствий по налогу на прибыль.
Сверка этих финансовых показателей, не относящихся к GAAP, с наиболее непосредственно сопоставимыми финансовыми показателями, рассчитанными и представленными в соответствии с GAAP, приведена ниже, а также на слайдах презентации за первый квартал 2022 года, доступных по адресу www.xerox.com/investor .
Эти финансовые показатели, не относящиеся к GAAP, следует рассматривать в дополнение, а не как замену отчетным результатам Компании, подготовленным в соответствии с GAAP.
Скорректированные Показатели Прибыли
Вышеуказанные показатели были скорректированы по следующим статьям:
Мы считаем, что исключение этих статей позволяет инвесторам лучше понять и проанализировать результаты за отчетный период по сравнению с предыдущими периодами и ожидаемые будущие тенденции в нашем бизнесе.
Скорректированный Операционный доход (Убыток) и Маржа
Мы рассчитываем и используем скорректированный операционный доход (убыток) и показатели маржи, корректируя наши заявленные суммы дохода и маржи до налогообложения. В дополнение к расходам и расходам, указанным в качестве корректировок для наших скорректированных показателей прибыли, скорректированный операционный доход и маржа также исключают оставшиеся суммы, включенные в состав Прочих расходов, нетто, которые в основном представляют собой нефинансовые процентные расходы и некоторые другие внереализационные расходы и расходы. Мы исключаем эти суммы, чтобы оценить наши текущие и прошлые операционные показатели и лучше понять ожидаемые будущие тенденции в нашем бизнесе.
Постоянная Валюта
Чтобы лучше понять тенденции в нашем бизнесе, мы считаем, что полезно скорректировать выручку, чтобы исключить влияние изменений в пересчете иностранных валют в доллары США. Мы называем этот скорректированный доход ”постоянной валютой". Это влияние рассчитывается путем перевода деятельности за текущий период в местную валюту с использованием сопоставимого курса пересчета валют за предыдущий год. Это влияние рассчитывается для всех стран, где функциональной валютой не является доллар США. Руководство считает, что постоянный валютный показатель дает инвесторам дополнительный взгляд на тенденции доходов. Влияние валюты может быть определено как разница между фактическими темпами роста и постоянными темпами роста валюты.
Чтобы лучше понять тенденции в нашем бизнесе, мы считаем, что полезно скорректировать операционные денежные потоки путем вычитания сумм, связанных с капитальными затратами. Руководство считает, что эта мера дает инвесторам дополнительную перспективу в отношении денежных потоков от операционной деятельности, превышающих суммы, необходимые для реинвестирования. Это позволяет оценить нашу способность финансировать приобретения, дивиденды и выкуп акций.
Руководство считает, что все эти финансовые показатели, не относящиеся к GAAP, предоставляют дополнительные средства для анализа результатов текущего периода по сравнению с результатами соответствующего предыдущего периода. Однако эти финансовые показатели, не относящиеся к GAAP, следует рассматривать в дополнение, а не как замену отчетным результатам Компании, подготовленным в соответствии с GAAP. Наши финансовые показатели, не относящиеся к GAAP, не предназначены для рассмотрения изолированно или в качестве замены сопоставимых показателей GAAP и должны рассматриваться только в сочетании с нашей Сокращенной Консолидированной финансовой отчетностью, подготовленной в соответствии с GAAP. Наше руководство регулярно использует наши дополнительные финансовые показатели, не относящиеся к GAAP, для внутреннего понимания, управления и оценки нашего бизнеса и принятия операционных решений. Эти показатели, не относящиеся к GAAP, являются одними из основных факторов, которые руководство использует при планировании и прогнозировании будущих периодов. Вознаграждение наших руководителей частично основано на результатах нашего бизнеса, основанных на этих показателях, не относящихся к GAAP.
Сверка этих финансовых показателей, не относящихся к GAAP, и наиболее непосредственно сопоставимых показателей, рассчитанных и представленных в соответствии с GAAP, приведена в следующих таблицах:
Net (Loss) Income and EPS reconciliation: |
||||||||||||||||
|
|
Three Months Ended March 31, 2022 |
|
Three Months Ended March 31, 2021 |
||||||||||||
(in millions, except per share amounts) |
|
Net Loss |
|
EPS |
|
Net Income |
|
EPS |
||||||||
Reported(1) |
|
$ |
(56 |
) |
|
$ |
(0.38 |
) |
|
$ |
39 |
|
|
$ |
0.18 |
|
Adjustments: |
|
|
|
|
|
|
|
|
||||||||
Restructuring and related costs, net |
|
|
18 |
|
|
|
|
|
17 |
|
|
|
||||
Amortization of intangible assets |
|
|
11 |
|
|
|
|
|
15 |
|
|
|
||||
Non-service retirement-related costs |
|
|
(7 |
) |
|
|
|
|
(20 |
) |
|
|
||||
Contract termination costs - product supply |
|
|
33 |
|
|
|
|
|
— |
|
|
|
||||
Income tax on adjustments(2) |
|
|
(13 |
) |
|
|
|
|
(4 |
) |
|
|
||||
Adjusted |
|
$ |
(14 |
) |
|
$ |
(0.12 |
) |
|
$ |
47 |
|
|
$ |
0.22 |
|
|
|
|
|
|
|
|
|
|
||||||||
Dividends on preferred stock used in adjusted EPS calculation(3) |
|
|
|
$ |
4 |
|
|
|
|
$ |
4 |
|||||
Weighted average shares for adjusted EPS(3) |
|
|
|
|
156 |
|
|
|
|
|
198 |
|||||
Fully diluted shares at end of period(4) |
|
|
|
|
155 |
|
|
|
|
|
||||||
| ____________________________ | ||
(1) |
|
Net (loss) income and EPS attributable to Xerox Holdings. |
(2) |
|
Refer to Effective Tax Rate reconciliation. |
(3) |
|
For those periods that include the preferred stock dividend, the average shares for the calculations of diluted EPS exclude the 7 million shares associated with Xerox Holdings Corporation's Series A Convertible preferred stock. |
(4) |
|
Represents common shares outstanding at March 31, 2022 and excludes potential dilutive common shares used for the calculation of adjusted diluted EPS for the first quarter 2022 as well as shares associated with our Series A convertible preferred stock, all of which were anti-dilutive for the first quarter 2022. |
Effective Tax Rate reconciliation: |
||||||||||||||||||||||
|
|
Three Months Ended March 31, 2022 |
|
Three Months Ended March 31, 2021 |
||||||||||||||||||
(in millions) |
|
Pre-Tax Loss |
|
Income Tax
|
|
Effective Tax
|
|
Pre-Tax
|
|
Income Tax
|
|
Effective Tax
|
||||||||||
Reported(1) |
|
$ |
(89 |
) |
|
$ |
(31 |
) |
|
34.8 |
% |
|
$ |
53 |
|
$ |
14 |
|
26.4 |
% |
||
Non-GAAP Adjustments(2) |
|
|
55 |
|
|
|
13 |
|
|
|
|
|
12 |
|
|
4 |
|
|
||||
Adjusted(3) |
|
$ |
(34 |
) |
|
$ |
(18 |
) |
|
52.9 |
% |
|
$ |
65 |
|
$ |
18 |
|
27.7 |
% |
||
| ____________________________ | ||
(1) |
|
Pre-tax (loss) income and income tax (benefit) expense. |
(2) |
|
Refer to Net (Loss) Income and EPS reconciliation for details. |
(3) |
|
The tax impact on Adjusted Pre-Tax (Loss) Income is calculated under the same accounting principles applied to the Reported Pre-Tax (Loss) Income under ASC 740, which employs an annual effective tax rate method to the results. |
Operating (Loss) Income and Margin reconciliation: |
||||||||||||||||||||||
|
|
Three Months Ended March 31, 2022 |
|
Three Months Ended March 31, 2021 |
||||||||||||||||||
(in millions) |
|
Loss |
|
Revenue |
|
Margin |
|
Profit |
|
Revenue |
|
Margin |
||||||||||
Reported(1) |
|
$ |
(89 |
) |
|
$ |
1,668 |
|
(5.3 |
)% |
|
$ |
53 |
|
$ |
1,710 |
|
3.1 |
% |
|||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Restructuring and related costs, net |
|
|
18 |
|
|
|
|
|
|
|
17 |
|
|
|
|
|||||||
Amortization of intangible assets |
|
|
11 |
|
|
|
|
|
|
|
15 |
|
|
|
|
|||||||
Other expenses, net |
|
|
57 |
|
|
|
|
|
|
|
4 |
|
|
|
|
|||||||
Adjusted |
|
$ |
(3 |
) |
|
$ |
1,668 |
|
(0.2 |
)% |
|
$ |
89 |
|
$ |
1,710 |
|
5.2 |
% |
|||
| ___________________________ | |
(1) |
Pre-tax (loss) income. |
Free Cash Flow reconciliation: |
||||||||
|
|
Three Months Ended March 31, |
||||||
(in millions) |
|
|
2022 |
|
|
|
2021 |
|
Reported(1) |
|
$ |
66 |
|
|
$ |
117 |
|
Less: capital expenditures |
|
|
(16 |
) |
|
|
(17 |
) |
Free Cash Flow |
|
$ |
50 |
|
|
$ |
100 |
|
| ____________________________ | ||
(1) |
Net cash provided by operating activities. |
|
Cash Flow |
||
(in millions) |
|
FY 2022 |
Operating Cash Flow (1) |
|
At least $475 |
Less: capital expenditures |
|
(75) |
Free Cash Flow |
|
At least $400 |
| ____________________________ | ||
(1) |
|
Net cash provided by operating activities. |
|
|
NOTE: Free cash flow guidance excludes payments associated with a first quarter 2022 contract termination charge. |
Xerox Holdings Corporation (Loss) Earnings per Common Share |
||||||||
(in millions, except per-share data, shares in thousands) |
|
Three Months Ended March 31, |
||||||
|
|
|
2022 |
|
|
|
2021 |
|
Basic (Loss) Earnings per Share: |
|
|
|
|
||||
Net (loss) income attributable to Xerox Holdings |
|
$ |
(56 |
) |
|
$ |
39 |
|
Accrued dividends on preferred stock |
|
|
(4 |
) |
|
|
(4 |
) |
Adjusted net (loss) income available to common shareholders |
|
$ |
(60 |
) |
|
$ |
35 |
|
Weighted average common shares outstanding |
|
|
156,362 |
|
|
|
195,985 |
|
|
|
|
|
|
||||
Basic (Loss) Earnings per Share |
|
$ |
(0.38 |
) |
|
$ |
0.18 |
|
|
|
|
|
|
||||
Diluted (Loss) Earnings per Share: |
|
|
|
|
||||
Net (Loss) Income attributable to Xerox Holdings |
|
$ |
(56 |
) |
|
$ |
39 |
|
Accrued dividends on preferred stock |
|
|
(4 |
) |
|
|
(4 |
) |
Adjusted net (loss) income available to common shareholders |
|
$ |
(60 |
) |
|
$ |
35 |
|
Weighted average common shares outstanding |
|
|
156,362 |
|
|
|
195,985 |
|
Common shares issuable with respect to: |
|
|
|
|
||||
Stock Options |
|
|
— |
|
|
|
— |
|
Restricted stock and performance shares |
|
|
— |
|
|
|
2,181 |
|
Convertible preferred stock |
|
|
— |
|
|
|
— |
|
Adjusted weighted average common shares outstanding |
|
|
156,362 |
|
|
|
198,166 |
|
|
|
|
|
|
||||
Diluted (Loss) Earnings per Share |
|
$ |
(0.38 |
) |
|
$ |
0.18 |
|
|
|
|
|
|
||||
The following securities were not included in the computation of diluted earnings per share as they were either contingently issuable shares or shares that if included would have been anti-dilutive: |
||||||||
Stock options |
|
|
612 |
|
|
|
693 |
|
Restricted stock and performance shares |
|
|
6,470 |
|
|
|
5,327 |
|
Convertible preferred stock |
|
|
6,742 |
|
|
|
6,742 |
|
Total Anti-Dilutive Securities |
|
|
13,824 |
|
|
|
12,762 |
|
|
|
|
|
|
||||
Dividends per Common Share |
|
$ |
0.25 |
|
|
$ |
0.25 |
|
Корпорация Xerox Holdings Отчетные сегменты и Географические каналы продаж
Наш бизнес организован таким образом, чтобы гарантировать, что мы сосредоточены на эффективном управлении операциями, одновременно обслуживая наших клиентов и рынки, на которых мы работаем.
В течение 2021 года мы продвинулись вперед, создав три новых бизнеса: Программное обеспечение (CareAR), Финансирование (FITTLE) и Инновации (PARC). В результате этих усилий в первом квартале 2022 года мы провели переоценку наших операционных и отчетных сегментов и определили это на основе финансовой информации, рассмотренной нашим главным лицом, принимающим операционные решения (CODM), который является Главным исполнительным директором (CEO), а также руководством Генерального директора и оценкой КомпанииЧто касается операций, у нас было два операционных и отчетных сегмента.
Отчетные сегменты - Наши отчетные сегменты соответствуют нашим основным бизнес-операциям и состоят из следующих:
Мы также определили, что другие компании, Программное обеспечение и Инновации, не отвечают требованиям, чтобы считаться отдельными операционными сегментами, в основном из-за их постоянного управления через Печатный и Другой сегмент, а также из-за их несущественности для наших результатов на данном этапе. Соответственно, об этих группах по-прежнему будет сообщаться в рамках сегмента печати и прочего.
Группы товаров - Наши группы по продаже оборудования следующие:
Каналы продаж - Мы также используем матричную организацию, включающую географическую направленность, которая в первую очередь организована с точки зрения продаж на основе каналов продаж “выход на рынок” (GTM). Эти каналы продаж состоят из следующих:
Эти каналы продаж GTM структурированы таким образом, чтобы обслуживать широкий круг потребителей наших продуктов и услуг, включая финансирование. Соответственно, мы продолжим предоставлять информацию, в первую очередь связанную с доходами, в отношении наших основных каналов продаж GTM.
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