Press Release
NCR Announces First Quarter 2019 Results
NCR Announces First Quarter 2019 Results
May 7, 2019 at 4:05 PM EDT
- Revenue of
$1.54 billion , up 1%as reported and up 4% constant currency - Banking revenue up 5% as reported; Recurring revenue up 3% as reported
- Net income attributable to NCR of
$37 million ; Adjusted EBITDA of$218 million - GAAP diluted EPS of
$0.20 ; Non-GAAP diluted EPS of$0.48 - Program to achieve at least
$100 million cost savings in 2019 is on track - 2019 guidance reaffirmed
“Our first quarter results represent a solid start to the year and keep
us on track to achieve our full year targets,” said
In this release, we use certain non-GAAP measures, including presenting certain measures on a constant currency basis. These non-GAAP measures include “free cash flow” and others with the words “non-GAAP,” or “constant currency” in their titles. These non-GAAP measures are listed, described, and reconciled to their most directly comparable GAAP measures under the heading “Non-GAAP Financial Measures” later in this release.
First Quarter 2019 Operating Results
Revenue
First quarter revenue of
| $ in millions | Q1 2019 | Q1 2018 | % Change |
% Change Constant Currency |
||||||||||||||||||
| Banking | $ | 758 | $ | 721 | 5 | % | 9 | % | ||||||||||||||
| Retail | 511 | 521 | (2 | %) | 1 | % | ||||||||||||||||
| Hospitality | 193 | 204 | (5 | %) | (4 | %) | ||||||||||||||||
| Other | 74 | 71 | 4 | % | 7 | % | ||||||||||||||||
| Total Revenue | $ | 1,536 | $ | 1,517 | 1 | % | 4 | % | ||||||||||||||
| Software | $ | 467 | $ | 460 | 2 | % | 3 | % | ||||||||||||||
| Services | 585 | 601 | (3 | %) | 1 | % | ||||||||||||||||
| Hardware | 484 | 456 | 6 | % | 9 | % | ||||||||||||||||
| ATM | 236 | 195 | 21 | % | 27 | % | ||||||||||||||||
| SCO/POS | 248 | 261 | (5 | %) | (3 | %) | ||||||||||||||||
| Total Revenue | $ | 1,536 | $ | 1,517 | 1 | % | 4 | % | ||||||||||||||
Banking revenue increased 5% due to 21% growth in ATM revenue driven by
higher backlog conversion. The revenue growth was mainly driven by
strength in
Retail revenue decreased 2% driven by a large implementation services project in the prior year partially offset by higher payment processing revenue and strength in self-checkout revenue. Foreign currency fluctuations had an unfavorable impact of 3% on the revenue comparison.
Hospitality revenue decreased 5% driven by lower hardware revenue partially offset by higher cloud and payments revenue. Foreign currency fluctuations had an unfavorable impact of 1% on the revenue comparison.
Gross Margin
First quarter gross margin of
Expenses
First quarter operating expenses of
Operating Income
First quarter income from operations of
Other (Expense)
First quarter other (expense) of
Income Tax Expense (Benefit)
First quarter income tax
expense of
Net Income from Continuing Operations Attributable to NCR
First
quarter net income from continuing operations attributable to NCR of
Cash Flow
First quarter cash used by operating activities of
Restructuring and Transformation Initiatives
Our previously announced transformation and restructuring initiatives
continue to progress. Our services performance and profit improvement
program continues to deliver revenue growth and margin expansion. Our
manufacturing transformation initiatives to move to a variable cost
structure by reducing the number of manufacturing plants and ramping up
production with contract manufacturers is substantially complete.
Additionally, we are executing our spend optimization program to drive
cost savings through operational efficiencies to generate at least
Full Year 2019 Outlook
We are reaffirming our 2019 guidance. Our revenue growth is expected to
be approximately 1% to 2%. Our GAAP diluted earnings per share guidance
is expected to be
2019 First Quarter Earnings Conference Call
A conference call is scheduled for today at
More information on NCR’s Q1 2019 earnings, including additional financial information and analysis, is available on NCR’s Investor Relations website at http://investor.ncr.com/.
About
Website: www.ncr.com
Twitter:
@NCRCorporation
LinkedIn:
https://www.linkedin.com/company/ncr-corporation
Note to Investors This release contains forward-looking
statements. Forward-looking statements use words such as “expect,”
“anticipate,” “outlook,” “intend,” “plan,” “believe,” “will,” “should,”
“would,” “could,” and words of similar meaning. Statements that describe
or relate to NCR’s plans, goals, intentions, strategies, or financial
outlook, and statements that do not relate to historical or current
fact, are examples of forward-looking statements. The forward-looking
statements in this release include statements about NCR’s financial
guidance and outlook (including the section entitled “Full Year 2019
Outlook” and the tables entitled “Reconciliation of Diluted Earnings Per
Share from Continuing Operations (GAAP) to Non-GAAP Diluted Earnings Per
Share from Continuing Operations (non-GAAP)” and “Reconciliation of Net
Income for Continuing Operations Attributable to NCR (GAAP) to Earnings
Before Interest, Depreciation, Taxes and Amortization (Adjusted
EBITDA)”; NCR’s areas of focus on strategic growth and expected results
and impact of its spend optimization program in 2019; NCR’s expected
areas of focus to drive growth and create long-term stockholder value;
NCR’s cost savings program and its expected benefits in 2019; NCR’s
expected free cash flow generation and capital allocation strategy;
earnings per share; the effective tax rate in 2019; and the expected
impact of NCR’s previously announced restructuring and transformation
activities. Forward-looking statements are based on our current beliefs,
expectations and assumptions, which may not prove to be accurate, and
involve a number of known and unknown risks and uncertainties, many of
which are out of NCR’s control. Forward-looking statements are not
guarantees of future performance, and there are a number of important
factors that could cause actual outcomes and results to differ
materially from the results contemplated by such forward-looking
statements, including those factors relating to: the strength of demand
and pricing for ATMs and other financial services hardware and its
effect on the results of our businesses and reportable segments;
domestic and global economic and credit conditions including, in
particular, those resulting from the imposition or threat of
protectionist trade policies or import or export tariffs, global and
regional market conditions and spending trends in the financial services
and retail industries, new comprehensive U.S. tax legislation, modified
or new global or regional trade agreements, the determination by the
Non-GAAP Financial Measures
Non-GAAP Financial Measures. While NCR reports its results in
accordance with Generally Accepted Accounting Principles in
Non-GAAP Diluted Earnings Per Share (EPS), Gross Margin (non-GAAP), Gross Margin Rate (non-GAAP), Operating Expenses (non-GAAP), Operating Income (non-GAAP), Operating Margin Rate (non-GAAP), Other (Expense) (non-GAAP), Income Tax Expense (non-GAAP), Effective Income Tax Rate (non-GAAP), and Net Income from Continuing Operations Attributable to NCR (non-GAAP). NCR’s non-GAAP diluted EPS, gross margin (non-GAAP), gross margin rate (non-GAAP), operating expenses (non-GAAP), operating income (non-GAAP), operating margin rate (non-GAAP), other (expense) (non-GAAP), income tax expense (non-GAAP), effective income tax rate (non-GAAP), and net income from continuing operations attributable to NCR (non-GAAP) are determined by excluding, as applicable, pension mark-to-market adjustments, pension settlements, pension curtailments and pension special termination benefits and other special items, including amortization of acquisition related intangibles, from NCR’s GAAP earnings per share, gross margin, gross margin rate, expenses, income from operations, operating margin rate, other (expense), income tax expense, effective income tax rate and net income from continuing operations attributable to NCR, respectively. Due to the non-operational nature of these pension and other special items, NCR’s management uses these non-GAAP measures to evaluate year-over-year operating performance. NCR also uses operating income (non-GAAP) and diluted EPS (non-GAAP), to manage and determine the effectiveness of its business managers and as a basis for incentive compensation. NCR believes these measures are useful for investors because they provide a more complete understanding of NCR’s underlying operational performance, as well as consistency and comparability with NCR’s past reports of financial results.
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) NCR believes that Adjusted EBITDA (adjusted earnings before interest, taxes, depreciation and amortization) provides useful information to investors because it is an indicator of the strength and performance of the Company’s ongoing business operations, including its ability to fund discretionary spending such as capital expenditures, strategic acquisitions and other investments. NCR determines Adjusted EBITDA for a given period based on its GAAP net income attributable to NCR plus interest expense, net; plus income tax expense (benefit); plus depreciation and amortization; plus other income (expense); plus pension mark-to-market adjustments, pension settlements, pension curtailments and pension special termination benefits and other special items, including amortization of acquisition related intangibles.
Free Cash Flow. NCR defines free cash flow as net cash provided by/used in operating activities and cash flow provided by/used in discontinued operations less capital expenditures for property, plant and equipment, additions to capitalized software, discretionary pension contributions and pension settlements. NCR’s management uses free cash flow to assess the financial performance of the Company and believes it is useful for investors because it relates the operating cash flow of the Company to the capital that is spent to continue and improve business operations. In particular, free cash flow indicates the amount of cash generated after capital expenditures, which can be used for, among other things, investment in the Company’s existing businesses, strategic acquisitions, strengthening the Company’s balance sheet, repurchase of Company stock and repayment of the Company’s debt obligations. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other nondiscretionary expenditures that are not deducted from the measure. Free cash flow does not have uniform definitions under GAAP and, therefore, NCR’s definitions may differ from other companies’ definitions of these measures.
Constant Currency. NCR presents certain financial measures, such as period-over-period revenue growth, on a constant currency basis, which excludes the effects of foreign currency translation by translating prior period results at current period monthly average exchange rates. Due to the overall variability of foreign exchange rates from period to period, NCR’s management uses constant currency measures to evaluate period-over-period operating performance on a more consistent and comparable basis. NCR’s management believes that presentation of financial measures without this result is more representative of the company’s period-over-period operating performance, and provides additional insight into historical and/or future performance, which may be helpful for investors.
NCR’s definitions and calculations of these non-GAAP measures may differ from similarly-titled measures reported by other companies and cannot, therefore, be compared with similarly-titled measures of other companies. These non-GAAP measures should not be considered as substitutes for, or superior to, results determined in accordance with GAAP. These non-GAAP measures are reconciled to their most directly comparable GAAP measures in the tables below.
|
Reconciliation of Gross Margin (GAAP) to Gross Margin (non-GAAP) |
|||||||||||||
| $ in millions | Q1 2019 | Q1 2018 | |||||||||||
| Gross Margin (GAAP) | $ | 411 | $ | 420 | |||||||||
| Transformation and restructuring costs | 8 | 4 | |||||||||||
| Acquisition-related amortization of intangibles | 6 | 7 | |||||||||||
| Gross Margin (Non-GAAP) | $ | 425 | $ | 431 | |||||||||
|
Reconciliation of Gross Margin Rate (GAAP) to Gross Margin Rate (non-GAAP) |
|||||||||||||
| Q1 2019 | Q1 2018 | ||||||||||||
| Gross Margin Rate (GAAP) | 26.8 | % | 27.7 | % | |||||||||
| Transformation and restructuring costs | 0.5 | % | 0.2 | % | |||||||||
| Acquisition-related amortization of intangibles | 0.4 | % | 0.5 | % | |||||||||
| Gross Margin Rate (Non-GAAP) | 27.7 | % | 28.4 | % | |||||||||
|
Reconciliation of Operating Expenses (GAAP) to Operating Expenses (non-GAAP) |
|||||||||||||
| $ in millions | Q1 2019 | Q1 2018 | |||||||||||
| Operating Expenses (GAAP) | $ | 311 | $ | 311 | |||||||||
| Transformation and restructuring costs | (18 | ) | (12 | ) | |||||||||
| Acquisition-related amortization of intangibles | (15 | ) | (16 | ) | |||||||||
| Operating Expenses (Non-GAAP) | $ | 278 | $ | 283 | |||||||||
|
Reconciliation of Income from Operations (GAAP) to Operating Income (non-GAAP) |
|||||||||||||
| $ in millions | Q1 2019 | Q1 2018 | |||||||||||
| Income from Operations (GAAP) | $ | 100 | $ | 109 | |||||||||
| Transformation and restructuring costs | 26 | 16 | |||||||||||
| Acquisition-related amortization of intangibles | 21 | 23 | |||||||||||
| Operating Income (Non-GAAP) | $ | 147 | $ | 148 | |||||||||
|
Reconciliation of Income Tax Expense (GAAP) to Income Tax Expense (non-GAAP) |
|||||||||||||
| $ in millions | Q1 2019 | Q1 2018 | |||||||||||
| Income Tax Expense (GAAP) | $ | 9 | $ | 7 | |||||||||
| Transformation and restructuring costs | 6 | 4 | |||||||||||
| Acquisition-related amortization of intangibles | 5 | 5 | |||||||||||
| Income Tax Expense (Non-GAAP) | $ | 20 | $ | 16 | |||||||||
|
Reconciliation of Net Income from Continuing Operations
Attributable to NCR (GAAP) to |
|||||||||||||
| $ in millions | Q1 2019 | Q1 2018 | |||||||||||
| Net Income from Continuing Operations Attributable to NCR (GAAP) | $ | 37 | $ | 55 | |||||||||
| Transformation and restructuring costs | 20 | 12 | |||||||||||
| Acquisition-related amortization of intangibles | 16 | 18 | |||||||||||
| Net Income from Continuing Operations Attributable to NCR (Non-GAAP) | $ | 73 | $ | 85 | |||||||||
|
Reconciliation of Diluted Earnings Per Share from Continuing
Operations (GAAP) to |
||||||||||||||||
|
Q1 2019 Actual |
Q1 2018 Actual |
2019 Guidance(2) |
||||||||||||||
| Diluted Earnings Per Share (GAAP) (1) | $ | 0.20 | $ | 0.35 | $ | 1.91 - $2.01 | ||||||||||
| Transformation & restructuring costs | 0.13 | 0.08 | 0.31 | |||||||||||||
| Acquisition-related amortization of intangibles | 0.11 | 0.12 | 0.48 | |||||||||||||
| Acquisition-related costs | — | — | 0.05 | |||||||||||||
| Diluted Earnings Per Share (non-GAAP) (1) | $ | 0.48 | $ | 0.56 | $ | 2.75 - $2.85 | ||||||||||
|
(1) |
Non-GAAP diluted EPS is determined using the conversion of the Series A Convertible Preferred Stock into common stock in the calculation of weighted average diluted shares outstanding. GAAP EPS is determined using the most dilutive measure, either including the impact of dividends or deemed dividends on the Company's Series A Convertible Preferred Stock in the calculation of net income or loss available to common stockholders or including the impact of the conversion of the Series A Convertible Preferred Stock into common stock in the calculation of the weighted average diluted shares outstanding. Therefore, GAAP diluted EPS and non-GAAP diluted EPS may not mathematically reconcile. | |
|
(2) |
Except for the adjustments noted herein, this guidance does not include the effects of any future acquisitions/divestitures, pension mark-to-market adjustments, taxes or other events, which are difficult to predict and may or may not be significant. |
|
Reconciliation of Net Income from Continuing Operations
Attributable to NCR (GAAP) to Earnings Before Interest, |
|||||||||||
| $ in millions | Q1 2019 Actual | 2019 Guidance | |||||||||
| Net Income Attributable to NCR (GAAP) | $ | 37 | $290 - $305 | ||||||||
| Transformation and restructuring costs | 26 | 60 | |||||||||
| Acquisition-related amortization of intangibles | 21 | 95 | |||||||||
| Acquisition-related costs | — | 10 | |||||||||
| Interest, net | 44 | 180 - 195 | |||||||||
| Taxes | 9 | 85 - 95 | |||||||||
| Depreciation & Amortization (excluding acquisition-related amortization of intangibles) | 58 | 240 | |||||||||
| Stock Compensation | 23 | 80 | |||||||||
| Adjusted EBITDA (Non-GAAP) | $ | 218 | $1,040 - $1,080 | ||||||||
|
Reconciliation of Net Cash Provided by Operating Activities (GAAP) to Free Cash Flow (non-GAAP) |
||||||||||||
| $ in millions |
Q1 2019 QTD |
Q1 2018 QTD |
||||||||||
| Net cash used by operating activities | $ | (16 | ) | $ | (24 | ) | ||||||
| Total capital expenditures | (65 | ) | (71 | ) | ||||||||
| Net cash used in discontinued operations | (6 | ) | (4 | ) | ||||||||
| Free cash flow | $ | (87 | ) | $ | (99 | ) | ||||||
|
Reconciliation of Revenue Growth % (GAAP) to |
||||||||||||
| Three months ended March 31, 2019 | ||||||||||||
|
Revenue Growth % (GAAP) |
Favorable (unfavorable) FX impact |
Revenue Growth Constant Currency % (non-GAAP) |
||||||||||
| Banking | 5% | (4)% | 9% | |||||||||
| Retail | (2)% | (3)% | 1% | |||||||||
| Hospitality | (5)% | (1)% | (4)% | |||||||||
| Other | 4% | (3)% | 7% | |||||||||
| Total Revenue | 1% | (3)% | 4% | |||||||||
| Three months ended March 31, 2019 | ||||||||||||
|
Revenue Growth % (GAAP) |
Favorable (unfavorable) FX impact |
Revenue Growth Adjusted Constant Currency % (non-GAAP) |
||||||||||
| Software | 2% | (1)% | 3% | |||||||||
| Services | (3)% | (4)% | 1% | |||||||||
| Hardware | 6% | (3)% | 9% | |||||||||
| ATM | 21% | (6)% | 27% | |||||||||
| SCO/POS | (5)% | (2)% | (3)% | |||||||||
| Total Revenue | 1% | (3)% | 4% | |||||||||
|
Schedule A |
|||||||||
|
NCR CORPORATION |
|||||||||
| For the Periods Ended March 31 | |||||||||
| Three Months | |||||||||
| 2019 | 2018 | ||||||||
| Revenue | |||||||||
| Products | $ | 539 | $ | 526 | |||||
| Services | 997 | 991 | |||||||
| Total Revenue | 1,536 | 1,517 | |||||||
| Cost of products | 453 | 420 | |||||||
| Cost of services | 672 | 677 | |||||||
| Total gross margin | 411 | 420 | |||||||
| % of Revenue | 26.8 | % | 27.7 | % | |||||
| Selling, general and administrative expenses | 252 | 245 | |||||||
| Research and development expenses | 59 | 66 | |||||||
| Income from operations | 100 | 109 | |||||||
| % of Revenue | 6.5 | % | 7.2 | % | |||||
| Interest expense | (45 | ) | (41 | ) | |||||
| Other expense, net | (8 | ) | (5 | ) | |||||
| Total other expense, net | (53 | ) | (46 | ) | |||||
| Income from continuing operations before income taxes | 47 | 63 | |||||||
| % of Revenue | 3.1 | % | 4.2 | % | |||||
| Income tax expense | 9 | 7 | |||||||
| Income from continuing operations | 38 | 56 | |||||||
| Loss from discontinued operations, net of tax | — | (35 | ) | ||||||
| Net income | 38 | 21 | |||||||
| Net income attributable to noncontrolling interests | 1 | 1 | |||||||
| Net income attributable to NCR | $ | 37 | $ | 20 | |||||
| Amounts attributable to NCR common stockholders: | |||||||||
| Income from continuing operations | $ | 37 | $ | 55 | |||||
| Dividends on convertible preferred stock | (13 | ) | (12 | ) | |||||
| Income from continuing operations attributable to NCR common stockholders | 24 | 43 | |||||||
| Loss from discontinued operations, net of tax | — | (35 | ) | ||||||
| Net income attributable to NCR common stockholders | $ | 24 | $ | 8 | |||||
| Income per share attributable to NCR common stockholders: | |||||||||
| Income per common share from continuing operations | |||||||||
| Basic | $ | 0.20 | $ | 0.36 | |||||
| Diluted (1) | $ | 0.20 | $ | 0.35 | |||||
| Net income per common share | |||||||||
| Basic | $ | 0.20 | $ | 0.07 | |||||
| Diluted (1) | $ | 0.20 | $ | 0.06 | |||||
| Weighted average common shares outstanding | |||||||||
| Basic | 119.3 | 119.2 | |||||||
| Diluted (1) | 122.2 | 123.8 | |||||||
|
(1) Diluted EPS is determined using the most dilutive measure, either including the impact of the dividends and deemed dividends on NCR's Series A Convertible Preferred Shares in the calculation of net income or loss per common share from continuing operations and net income or loss per common share or including the impact of the conversion of such preferred stock into common stock in the calculation of the weighted average diluted shares outstanding. |
|||||||||
|
Schedule B |
|||||||||||||||||||||
|
NCR CORPORATION |
|||||||||||||||||||||
| For the Periods Ended March 31 | |||||||||||||||||||||
| Three Months | |||||||||||||||||||||
| 2019 | 2018 | % Change |
% Change Constant Currency |
||||||||||||||||||
| Revenue by segment | |||||||||||||||||||||
| Banking | $ | 758 | $ | 721 | 5 | % | 9 | % | |||||||||||||
| Retail | 511 | 521 | (2 | )% | 1 | % | |||||||||||||||
| Hospitality | 193 | 204 | (5 | )% | (4 | )% | |||||||||||||||
| Other | 74 | 71 | 4 | % | 7 | % | |||||||||||||||
| Total Revenue | $ | 1,536 | $ | 1,517 | 1 | % | 4 | % | |||||||||||||
| Operating income by segment | |||||||||||||||||||||
| Banking | $ | 95 | $ | 84 | |||||||||||||||||
| Banking operating income margin % | 12.5 | % | 11.7 | % | |||||||||||||||||
| Retail | 26 | 35 | |||||||||||||||||||
| Retail operating income margin % | 5.1 | % | 6.7 | % | |||||||||||||||||
| Hospitality | 16 | 19 | |||||||||||||||||||
| Hospitality operating income margin % | 8.3 | % | 9.3 | % | |||||||||||||||||
| Other | 10 | 10 | |||||||||||||||||||
| All Other operating income margin % | 13.5 | % | 14.1 | % | |||||||||||||||||
| Subtotal-segment operating income | $ | 147 | $ | 148 | |||||||||||||||||
| Total Revenue operating income margin % | 9.6 | % | 9.8 | % | |||||||||||||||||
| Other adjustments (1) | 47 | 39 | |||||||||||||||||||
| Total income from operations | $ | 100 | 109 | ||||||||||||||||||
|
(1) The following table presents the other adjustments for NCR: |
|||||||||||||||||||||
| For the Periods Ended March 31 | |||||||||||
| Three Months | |||||||||||
| In millions | 2019 | 2018 | |||||||||
| Transformation and restructuring costs | $ | 26 | $ | 16 | |||||||
| Acquisition-related amortization of intangible assets | 21 | 23 | |||||||||
| Total other adjustments | $ | 47 | $ | 39 | |||||||
|
Schedule C |
||||||||||||
|
NCR CORPORATION (in millions, except per share amounts)
|
||||||||||||
|
March 31, 2019 |
December 31, 2018 |
|||||||||||
| Assets | ||||||||||||
| Current assets | ||||||||||||
| Cash and cash equivalents | $ | 414 | $ | 464 | ||||||||
| Accounts receivable, net | 1,335 | 1,356 | ||||||||||
| Inventories | 874 | 806 | ||||||||||
| Other current assets | 393 | 397 | ||||||||||
| Total current assets | 3,016 | 3,023 | ||||||||||
| Property, plant and equipment, net | 373 | 359 | ||||||||||
| Goodwill | 2,705 | 2,692 | ||||||||||
| Intangibles, net | 573 | 595 | ||||||||||
| Operating lease assets | 433 | — | ||||||||||
| Prepaid pension cost | 148 | 140 | ||||||||||
| Deferred income taxes | 453 | 448 | ||||||||||
| Other assets | 497 | 504 | ||||||||||
| Total assets | $ | 8,198 | $ | 7,761 | ||||||||
| Liabilities and stockholders’ equity | ||||||||||||
| Current liabilities | ||||||||||||
| Short-term borrowings | $ | 297 | $ | 185 | ||||||||
| Accounts payable | 788 | 897 | ||||||||||
| Payroll and benefits liabilities | 184 | 238 | ||||||||||
| Contract liabilities | 566 | 461 | ||||||||||
| Other current liabilities | 546 | 501 | ||||||||||
| Total current liabilities | 2,381 | 2,282 | ||||||||||
| Long-term debt | 2,914 | 2,980 | ||||||||||
| Pension and indemnity plan liabilities | 760 | 759 | ||||||||||
| Postretirement and postemployment benefits liabilities | 120 | 118 | ||||||||||
| Income tax accruals | 93 | 91 | ||||||||||
| Operating lease liabilities | 406 | — | ||||||||||
| Other liabilities | 184 | 259 | ||||||||||
| Total liabilities | 6,858 | 6,489 | ||||||||||
| Redeemable noncontrolling interests | 14 | 14 | ||||||||||
| Series A convertible preferred stock: par value $0.01 per share, 3.0 shares authorized, 0.9 and 0.9 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively; redemption amount and liquidation preference of $883 and $871 as of March 31, 2019 and December 31, 2018, respectively | 872 | 859 | ||||||||||
| Stockholders' equity | ||||||||||||
| NCR stockholders' equity: | ||||||||||||
| Preferred stock: par value $0.01 per share, 100.0 shares authorized, no shares issued and outstanding as of March 31, 2019 and December 31, 2019, respectively | — | — | ||||||||||
| Common stock: par value $0.01 per share, 500.0 shares authorized, 119.8 and 118.7 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively | 1 | 1 | ||||||||||
| Paid-in capital | 48 | 34 | ||||||||||
| Retained earnings | 630 | 606 | ||||||||||
| Accumulated other comprehensive loss | (230 | ) | (246 | ) | ||||||||
| Total NCR stockholders' equity | 449 | 395 | ||||||||||
| Noncontrolling interests in subsidiaries | 5 | 4 | ||||||||||
| Total stockholders' equity | 454 | 399 | ||||||||||
| Total liabilities and stockholders' equity | $ | 8,198 | $ | 7,761 | ||||||||
|
Schedule D |
||||||||||||
|
NCR CORPORATION |
||||||||||||
| For the Periods Ended March 31 | ||||||||||||
| Three Months | ||||||||||||
| 2019 | 2018 | |||||||||||
| Operating activities | ||||||||||||
| Net income | $ | 38 | $ | 21 | ||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
| Loss from discontinued operations | — | 35 | ||||||||||
| Depreciation and amortization | 81 | 86 | ||||||||||
| Stock-based compensation expense | 23 | 14 | ||||||||||
| Deferred income taxes | (5 | ) | 4 | |||||||||
| Changes in assets and liabilities: | ||||||||||||
| Receivables | 21 | (114 | ) | |||||||||
| Inventories | (68 | ) | (42 | ) | ||||||||
| Current payables and accrued expenses | (192 | ) | (77 | ) | ||||||||
| Contract liabilities | 100 | 75 | ||||||||||
| Employee benefit plans | (4 | ) | (3 | ) | ||||||||
| Other assets and liabilities | (10 | ) | (23 | ) | ||||||||
| Net cash used in operating activities | (16 | ) | (24 | ) | ||||||||
| Investing activities | ||||||||||||
| Expenditures for property, plant and equipment | (22 | ) | (29 | ) | ||||||||
| Additions to capitalized software | (43 | ) | (42 | ) | ||||||||
| Business acquisition, net | (6 | ) | — | |||||||||
| Other investing activities, net | 3 | (3 | ) | |||||||||
| Net cash used in investing activities | (68 | ) | (74 | ) | ||||||||
| Financing activities | ||||||||||||
| Short term borrowings, net | 7 | (1 | ) | |||||||||
| Payments on term credit facilities | (17 | ) | (34 | ) | ||||||||
| Payments on revolving credit facilities | (375 | ) | (498 | ) | ||||||||
| Borrowings on revolving credit facilities | 430 | 613 | ||||||||||
| Repurchases of Company common stock | — | (165 | ) | |||||||||
| Proceeds from employee stock plans | 4 | 5 | ||||||||||
| Tax withholding payments on behalf of employees | (13 | ) | (11 | ) | ||||||||
| Net cash provided by (used in) financing activities | 36 | (91 | ) | |||||||||
| Cash flows from discontinued operations | ||||||||||||
| Net cash used in discontinued operations | (6 | ) | (4 | ) | ||||||||
| Effect of exchange rate changes on cash and cash equivalents | 1 | 5 | ||||||||||
| Decrease in cash, cash equivalents, and restricted cash | (53 | ) | (188 | ) | ||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 476 | 543 | ||||||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 423 | $ | 355 | ||||||||
|
Schedule E |
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|
NCR CORPORATION |
|||||||||||||||||||||||||||
| 2018 | |||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | Total | |||||||||||||||||||||||
| Revenue by segment | |||||||||||||||||||||||||||
| Banking | $ | 721 | $ | 725 | $ | 795 | $ | 942 | $ | 3,183 | |||||||||||||||||
| Retail | 521 | 537 | 483 | 556 | 2,097 | ||||||||||||||||||||||
| Hospitality | 204 | 198 | 193 | 222 | 817 | ||||||||||||||||||||||
| Other | 71 | 77 | 79 | 81 | 308 | ||||||||||||||||||||||
| Total Revenue | $ | 1,517 | $ | 1,537 | $ | 1,550 | $ | 1,801 | $ | 6,405 | |||||||||||||||||
| Operating income by segment | |||||||||||||||||||||||||||
| Banking | $ | 84 | $ | 94 | $ | 102 | $ | 132 | $ | 412 | |||||||||||||||||
| Banking operating income margin % | 11.7 | % | 13.0 | % | 12.8 | % | 14.0 | % | 12.9 | % | |||||||||||||||||
| Retail | 35 | 41 | 29 | 37 | 142 | ||||||||||||||||||||||
| Retail operating income margin % | 6.7 | % | 7.6 | % | 6.0 | % | 6.7 | % | 6.8 | % | |||||||||||||||||
| Hospitality | 19 | 19 | 15 | 32 | 85 | ||||||||||||||||||||||
| Hospitality operating income margin % | 9.3 | % | 9.6 | % | 7.8 | % | 14.4 | % | 10.4 | % | |||||||||||||||||
| Other | 10 | 11 | 15 | 13 | 49 | ||||||||||||||||||||||
| Other operating income margin % | 14.1 | % | 14.3 | % | 19.0 | % | 16.0 | % | 15.9 | % | |||||||||||||||||
| Subtotal-segment operating income | $ | 148 | $ | 165 | $ | 161 | $ | 214 | $ | 688 | |||||||||||||||||
| Total operating income margin % | 9.8 | % | 10.7 | % | 10.4 | % | 11.9 | % | 10.7 | % | |||||||||||||||||
| Other adjustments (1) | 39 | 271 | 36 | 151 | 497 | ||||||||||||||||||||||
| Total income from operations | $ | 109 | $ | (106 | ) | $ | 125 | $ | 63 | $ | 191 | ||||||||||||||||
|
(1) The following table presents the other adjustments for NCR: |
|||||||||||||||||||||||||||
| 2018 | |||||||||||||||||||||||||||
| In millions | Q1 | Q2 | Q3 | Q4 | Total | ||||||||||||||||||||||
| Restructuring and transformation costs | $ | 16 | $ | 66 | $ | 16 | $ | 125 | $ | 223 | |||||||||||||||||
| Asset impairment charges | — | 183 | — | — | 183 | ||||||||||||||||||||||
| Acquisition-related amortization of intangible assets | 23 | 21 | 20 | 21 | 85 | ||||||||||||||||||||||
| Acquisition-related costs | — | 1 | — | 5 | 6 | ||||||||||||||||||||||
| Total other adjustments | $ | 39 | $ | 271 | $ | 36 | $ | 151 | 497 | ||||||||||||||||||
|
Schedule F |
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|
NCR CORPORATION |
|||||||||||||||||||||||||||
| 2017 | |||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | Total | |||||||||||||||||||||||
| Revenue by segment | |||||||||||||||||||||||||||
| Banking | $ | 704 | $ | 764 | $ | 828 | $ | 879 | $ | 3,175 | |||||||||||||||||
| Retail | 509 | 544 | 528 | 588 | 2,169 | ||||||||||||||||||||||
| Hospitality | 195 | 210 | 230 | 243 | 878 | ||||||||||||||||||||||
| Other | 70 | 75 | 77 | 72 | 294 | ||||||||||||||||||||||
| Total Revenue | $ | 1,478 | $ | 1,593 | $ | 1,663 | $ | 1,782 | $ | 6,516 | |||||||||||||||||
| Operating income by segment | |||||||||||||||||||||||||||
| Banking | $ | 68 | $ | 105 | $ | 123 | $ | 125 | $ | 421 | |||||||||||||||||
| Banking operating income margin % | 9.7 | % | 13.7 | % | 14.9 | % | 14.2 | % | 13.3 | % | |||||||||||||||||
| Retail | 49 | 61 | 57 | 64 | 231 | ||||||||||||||||||||||
| Retail operating income margin % | 9.6 | % | 11.2 | % | 10.8 | % | 10.9 | % | 10.7 | % | |||||||||||||||||
| Hospitality | 32 | 34 | 38 | 36 | 140 | ||||||||||||||||||||||
| Hospitality operating income margin % | 16.4 | % | 16.2 | % | 16.5 | % | 14.8 | % | 15.9 | % | |||||||||||||||||
| Other | 9 | 12 | 16 | 11 | 48 | ||||||||||||||||||||||
| Other operating income margin % | 12.9 | % | 16.0 | % | 20.8 | % | 15.3 | % | 16.3 | % | |||||||||||||||||
| Subtotal-segment operating income | $ | 158 | $ | 212 | $ | 234 | $ | 236 | $ | 840 | |||||||||||||||||
| Total operating income margin % | 10.7 | % | 13.3 | % | 14.1 | % | 13.2 | % | 12.9 | % | |||||||||||||||||
| Other adjustments (1) | 43 | 37 | 35 | 34 | 149 | ||||||||||||||||||||||
| Total income from operations | $ | 115 | $ | 175 | $ | 199 | $ | 202 | $ | 691 | |||||||||||||||||
|
(1) The following table presents the other adjustments for NCR: |
|||||||||||||||||||||||||||
| 2017 | |||||||||||||||||||||||||||
| In millions | Q1 | Q2 | Q3 | Q4 | Total | ||||||||||||||||||||||
| Restructuring and transformation costs | $ | 13 | $ | 8 | $ | 5 | $ | 3 | $ | 29 | |||||||||||||||||
| Acquisition-related amortization of intangible assets | 29 | 28 | 29 | 29 | 115 | ||||||||||||||||||||||
| Acquisition-related costs | 1 | 1 | 1 | 2 | 5 | ||||||||||||||||||||||
| Total other adjustments | $ | 43 | $ | 37 | $ | 35 | $ | 34 | $ | 149 | |||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20190507006025/en/
Source:
News Media Contact
Scott Sykes
NCR Corporation
212.589.8428
scott.sykes@ncr.com
Investor Contact
Michael Nelson
NCR Corporation
678.808.6995
michael.nelson@ncr.com