0000028823False00000288232024-05-022024-05-02

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): 5/2/2024
Diebold Nixdorf, Incorporated
 
(Exact name of registrant as specified in its charter)
_________________________________________________ 
Delaware 1-4879 34-0183970
     
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(I.R.S. Employer 
Identification No.)
     
350 Orchard Avenue NE   
North Canton, Ohio44236
     
(Address of principal executive offices)   (Zip Code)
Registrant's telephone number, including area code: (330) 490-4000
Not Applicable
 
Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐      Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, $0.01 par value per shareDBDNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02 Results of Operations and Financial Condition

On May 2, 2024, Diebold Nixdorf, Incorporated (the “Company”) issued a news release announcing its results for the first quarter of 2024 (the "News Release"). The News Release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information in this Item 2.02 shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section and shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.
Item 9.01 Financial Statements and Exhibits
  (d) Exhibits. 
   
Exhibit  
Number Description
104Cover Page Interactive Data File (embedded within the Inline XBRL document)
 
 



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
    
 Diebold Nixdorf, Incorporated
Date:May 02, 2024By:  /s/ James Barna
  Name:  James Barna
  Title:  Executive Vice President and Chief Financial Officer
(Principal Financial Officer)



dnlogo04a.jpg
press release
Media contact:Investor Contact:
Mike Jacobsen, APRChris Sikora
+1 330 490-4498+1 330 490-4242
michael.jacobsen@dieboldnixdorf.com    christopher.sikora@dieboldnixdorf.com

FOR IMMEDIATE RELEASE:
May 2, 2024

Diebold Nixdorf Reports 2024 First Quarter Financial Results
Please visit www.dieboldnixdorf.com/earnings for a presentation and additional content

NORTH CANTON, Ohio - Diebold Nixdorf (NYSE:DBD), a world leader in transforming the way people bank and shop, today reported its first quarter 2024 financial results.

Key Financial Highlights
Three months ended
SuccessorPredecessor
March 31, 2024March 31, 2023% Change
($ in millions, except per share data)
GAAP
Non-GAAP1
GAAP
Non-GAAP1
GAAP Non-GAAP
Total net sales$895.4 $897.1 $858.1 $853.3 4.35.1
Gross profit$208.6 $245.5 $209.3 $209.4 (0.3)17.2
Gross margin23.3 %27.4 %24.4 %24.5 %(110) bps290 bps
Operating profit$23.8 $89.2 $(2.1)$50.0 N/M78.4
Operating margin2.7 %9.9 %(0.2)%5.9 %290 bps400 bps
Net cash used by operating activities$(23.5)$(95.9)75.5
Free cash flow (use)$(36.4)$(100.5)63.8
1 - See Note 1 below for Non-GAAP adjustments to net sales, gross profit and operating expenses, which include selling and administrative expense, research, development and engineering expense, gain/loss on sale of assets.


Management commentary
Octavio Marquez, Diebold Nixdorf president and chief executive officer, said: “We are off to a solid start in 2024. We reported strong results during the first quarter, showing good progress on our financial and operational priorities to expand gross margin and free cash flow. This resulted in another quarter of improved profitability and free cash flow conversion compared to the prior-year period. I am proud of our team, as our continued focus on serving customers with our leading technology and services is clearly reflected in the strength of our first quarter performance."

Marquez continued, “In addition, we are progressing well with the early stages of adopting a continuous improvement mindset across the company. It reinforces for us that while we are pleased with our execution to date, we also realize this is just the beginning of our journey. Our first quarter gives us confidence in our initial financial outlook for the remainder of the year. We continue to be strongly positioned for future success, and are focused on continuing our momentum into the second quarter and beyond.”

Business Highlights
•Addressing customers’ needs with a broad offering of hardware, software, services and as-a-service solutions that improve the consumer experience.
◦Won a deal valued at more than $20 million for DN Series® multifunction ATMs, along with a five-year managed services agreement, with a leading bank in Western Europe.
◦Closed an agreement valued at nearly $10 million with a major U.K.-based retailer to provide installation and maintenance services, in addition to self-checkout and kiosk technology.
◦Signed an agreement valued at more than $4 million to provide the Vynamic® Payments platform for one of the largest banks in Singapore.
Page 1

◦Won a new service contract with a major Portuguese fuel and convenience store chain, valued at more than $3 million.
•Consistent refresh activity as financial institutions replace legacy ATMs to capture the efficiency and cost-management benefits of new, multi-function DN Series cash recyclers.
◦Signed a contract valued at nearly $13 million to provide DN Series for a top-10 global bank’s operations in Mexico.
◦Began the initial ATM fleet refresh cycle with a top-three U.S-based financial institution for a variety of DN Series cash recyclers valued at approximately $12 million.
•Demand for retail self-checkout (SCO) technology continues, driven by retailers' focus on lower operating costs and improved customer and staff journeys.
◦Closed a deal for various store and SCO technology, including Vynamic software, valued at more than $9 million with a global grocery store chain.
◦Signed a contract with a major global QSR chain for kiosks and related maintenance and installation services, valued at nearly $6 million.

Full-year 2024 Outlook (unchanged from previous guidance)
Total Revenue
Low single-digit growth
Adjusted EBITDA 1,2
$410M - $435M
Free Cash Flow Conversion
+25%

1 - See Note 1 below for Non-GAAP adjustments to net sales, gross profit and operating expenses, which include selling and administrative expense, research, development and engineering expense, gain/loss on sale of assets, net, and impairment of assets, and Note 2 for adjusted EBITDA and adjusted net income (loss).

2 - With respect to the company’s adjusted EBITDA and free cash flow conversion (free cash flow / adjusted EBITDA) outlook for 2024, it is not providing reconciliations to the most directly comparable GAAP financial measures because it is unable to predict with reasonable certainty those items that may affect such measures calculated and presented in accordance with GAAP without unreasonable effort. These measures primarily exclude future restructuring and refinancing actions and net non-routine items. These reconciling items are uncertain, depend on various factors and could significantly impact, either individually or in the aggregate, operating profit and net income calculated and presented in accordance with GAAP.

Overview Presentation and Conference call
More information on Diebold Nixdorf's quarterly earnings is available on its Investor Relations website. Octavio Marquez, president and chief executive officer, and Jim Barna, executive vice president and chief financial officer, will discuss the company's financial performance during a conference call today at 8:30 a.m. ET. The call / webcast is available at http://www.dieboldnixdorf.com/earnings. The replay of the webcast can be accessed on the website for up to three months after the call.

About Diebold Nixdorf
Diebold Nixdorf, Incorporated (NYSE:DBD) automates, digitizes and transforms the way people bank and shop. As a partner to the majority of the world’s top 100 financial institutions and top 25 global retailers, our integrated solutions connect digital and physical channels conveniently, securely and efficiently for millions of consumers each day. The company has a presence in more than 100 countries with approximately 21,000 employees worldwide. Visit www.DieboldNixdorf.com for more information.

LinkedIn: www.linkedin.com/company/diebold
X: @DieboldNixdorf
Facebook: www.facebook.com/DieboldNixdorf
YouTube: www.youtube.com/dieboldnixdorf


Page 2

Non-GAAP Financial Measures and Other Information
To supplement our condensed consolidated financial statements presented in accordance with GAAP, the company considers certain financial measures that are not prepared in accordance with GAAP, including Non-GAAP results, adjusted diluted earnings per share, free cash flow (use) and free cash flow conversion, net debt, EBITDA, adjusted EBITDA, and constant currency results. The company calculates constant currency by translating the prior year results at current year exchange rates. The company uses these Non-GAAP financial measures, in addition to GAAP financial measures, to evaluate our operating and financial performance and to compare such performance to that of prior periods and to the performance of our competitors. Also, the company uses these Non-GAAP financial measures in making operational and financial decisions and in establishing operational goals. The company also believes providing these Non-GAAP financial measures to investors, as a supplement to GAAP financial measures, helps investors evaluate our operating and financial performance and trends in our business, consistent with how management evaluates such performance and trends. The company also believes these Non-GAAP financial measures may be useful to investors in comparing its performance to the performance of other companies, although its Non-GAAP financial measures are specific to the company and the Non-GAAP financial measures of other companies may not be calculated in the same manner. We provide EBITDA and Adjusted EBITDA because we believe that investors and securities analysts will find EBITDA and adjusted EBITDA to be useful measures for evaluating our operating performance and comparing our operating performance with that of similar companies that have different capital structures and for evaluating our ability to meet our future debt service, capital expenditure and working capital requirements. We consider free cash flow (use) to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that, after the purchase of property and equipment and capitalized software development, changes in cash of assets held for sale and the use of cash for M&A and the legal settlement for impaired cloud implementation costs, and excluding the use/proceeds of cash for the settlement of foreign exchange derivative instruments, can be used for debt servicing, strategic opportunities, including investing in the business, making strategic acquisitions, strengthening the balance sheet and paying dividends. Free Cash Flow Conversion is a liquidity ratio that measures the company's ability to convert operating profits into free cash flow and is calculated as Free Cash Flow over Adjusted EBITDA. For more information, please refer to the section, "Notes for Non-GAAP Measures."


Forward-Looking Statements

This press release may contain statements that are not historical information and are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or forecasts of future events and are not guarantees of future performance. These forward-looking statements include, but are not limited to, projections, statements regarding the Company's expected future performance (including expected results of operations and financial guidance), future financial condition, anticipated operating results, strategy plans, future liquidity and financial position.

Statements can generally be identified as forward looking because they include words such as “believes,” “anticipates,” “expects,” “intends,” “plans,” “will,” “estimates,” “potential,” “target,” “predict,” “project,” “seek,” and variations thereof or “could,” “should” or words of similar meaning. Statements that describe the Company's future plans, objectives or goals are also forward-looking statements, which reflect the current views of the Company with respect to future events and are subject to assumptions, risks and uncertainties that could cause actual results to differ materially. Although the Company believes that these forward-looking statements are based upon reasonable assumptions regarding, among other things, the economy, its knowledge of its business, and key performance indicators that impact the Company, these forward-looking statements involve risks, uncertainties and other factors that may cause actual results to differ materially from those expressed in or implied by the forward-looking statements.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.

The factors that may affect the company's results include, among others:
•the Company's recent emergence from the Chapter 11 Cases and the Dutch Scheme Proceedings, which could adversely affect our business and relationships;
•the significant variance of our actual financial results from the projections that were filed with the U.S. Bankruptcy Court and Dutch Court;
•the overall impact of the global supply chain complexities on the Company and its business, including delays in sourcing key components as well as longer transport times, especially for container ships and U.S. trucking, given the Company’s reliance on suppliers, subcontractors and availability of raw materials and other components;
Page 3

•the Company's ability to generate sufficient cash or have sufficient access to capital resources to service its debt, which, if unsuccessful or insufficient, could force the Company to reduce or delay investments and capital expenditures or to dispose of material assets or operations, seek additional debt or equity capital or restructure or refinance its indebtedness;
•the Company's ability to comply with the covenants contained in the agreements governing its debt;
•the Company’s ability to successfully convert its backlog into sales, including our ability to overcome supply chain and liquidity challenges;
•the ultimate impact of infectious disease outbreaks and other public health emergencies, including further adverse effects to the Company’s supply chain, and maintenance of increased order backlog;
•the Company's ability to successfully meet its cost-reduction goals and continue to achieve benefits from its cost-reduction initiatives and other strategic initiatives;
•the success of the Company’s new products, including its DN Series line and EASY family of retail checkout solutions, and electronic vehicle charging service business;
•the impact of a cybersecurity incident or operational failure on the Company's business;
•the Company’s ability to attract, retain and motivate key employees;
•the Company’s reliance on suppliers, subcontractors and availability of raw materials and other components;
•changes in the Company's intention to further repatriate cash and cash equivalents and short-term investments residing in international tax jurisdictions, which could negatively impact foreign and domestic taxes;
•the Company's success in divesting, reorganizing or exiting non-core and/or non-accretive businesses and its ability to successfully manage acquisitions, divestitures, and alliances;
•the ultimate outcome of the appraisal proceedings initiated in connection with the implementation of the Domination and Profit Loss Transfer Agreement with the former Diebold Nixdorf AG (which was dismissed in the Company's favor at the lower court level in 2022) and the merger/squeeze-out (which was dismissed in the Company's favor in 2023);
•the impact of market and economic conditions, including the bankruptcies, restructuring or consolidations of financial institutions, which could reduce the Company’s customer base and/or adversely affect its customers' ability to make capital expenditures, as well as adversely impact the availability and cost of credit;
•the impact of competitive pressures, including pricing pressures and technological developments;
•risks related to our international operations, including geopolitical instability and wars;
•changes in political, economic or other factors such as currency exchange rates, inflation rates (including the impact of possible currency devaluations in countries experiencing high inflation rates), recessionary or expansive trends, disruption in energy supply, taxes and regulations and laws affecting the worldwide business in each of the Company's operations;
•the Company's ability to maintain effective internal controls;
•unanticipated litigation, claims or assessments, as well as the outcome/impact of any current/pending litigation, claims or assessments;
•the effect of changes in law and regulations or the manner of enforcement in the U.S. and internationally and the Company’s ability to comply with applicable laws and regulations; and
•other factors included in the Company’s filings with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2023.


Except to the extent required by applicable law or regulation, the company undertakes no obligation to update these forward-looking statements to reflect future events or circumstances or to reflect the occurrence of unanticipated events.

You should consider these factors carefully in evaluating forward-looking statements and are cautioned not to place undue reliance on such statements.
Page 4


Summary Financial Results
Three months ended
SuccessorPredecessor
March 31, 2024March 31, 2023% Change
($ in millions, except per share data)
GAAP
Non-GAAP1
GAAP
Non-GAAP1
GAAPNon-GAAP
Total net sales$895.4 $897.1 $858.1 $853.3 4.35.1
Gross profit$208.6 $245.5 $209.3 $209.4 (0.3)17.2
Gross margin23.3 %27.4 %24.4 %24.5 %(110) bps290 bps
Selling and administrative expense$161.6 $135.0 $183.8 $135.8 (12.1)(0.6)
Research, development and engineering expense$24.2 $21.3 $26.4 $23.6 (8.3)(9.7)
Operating profit (loss)$23.8 $89.2 $(2.1)$50.0 N/M78.4
Operating margin2.7 %9.9 %(0.2)%5.9 %290 bps400 bps
Net income (loss)$(14.0)$45.2 $(111.5)$(67.6)87.4166.9
Adjusted EBITDA$103.3 $63.7 62.2

SuccessorPredecessor
($ in millions)Q1 2024Q1 2023% Change
Net cash used by operating activities$(23.5)$(95.9)75.5 
Excluding the impact of changes in cash of assets held for sale— 6.5 (100.0)
Capital expenditures(6.7)(5.7)(17.5)
Capitalized software development(6.2)(5.4)(14.8)
Free cash flow (use) (Non-GAAP measure)$(36.4)$(100.5)63.8 

1 - See Note 1 under Notes for Non-GAAP adjustments to net sales, gross profit and operating expenses, which include selling and administrative expense, research, development and engineering expense, gain/loss on sale of assets, net, and impairment of assets and Note 2 for adjusted EBITDA and net income (loss).






Page 5



Financial Results of Operations and Segments

Revenue Summary by Reportable Segment & Business Line - Unaudited
Three months ended March 31,
20242023
2023 in CC3
($ in millions)SuccessorPredecessorPredecessor% Change% Change in CC
Banking
Services$386.6 $381.1 $385.0 1.4 %0.4 %
Products262.2 211.8 213.4 23.8 %22.9 %
Total Banking Revenue$648.8 $592.9 $598.4 9.4 %8.4 %
Retail
Services$138.2 $135.3 $137.5 2.1 %0.5 %
Products108.4 129.9 132.2 (16.6)%(18.0)%
Total Retail Revenue$246.6 $265.2 $269.7 (7.0)%(8.6)%
Total by Business Line
Services$524.8 $516.4 $522.5 1.6 %0.4 %
Products370.6 341.7 345.6 8.5 %7.2 %
Total Revenue$895.4 $858.1 $868.1 4.3 %3.1 %
3 - The company calculates constant currency (CC) by translating the prior-year period results at current year exchange rates.

Page 6

Operating Profit Summary - Unaudited
Three months ended
SuccessorPredecessor
March 31, 2024March 31, 2023Change
($ in millions)GAAP
Non-GAAP5,6 Results
GAAP Results
Non-GAAP4,5 Results
GAAPNon-GAAP Results
Services$524.8 $524.8$516.4 $514.3$8.4$10.5
Products370.6 372.3341.7 339.028.933.3
Total net sales$895.4 $897.1$858.1 $853.3$37.3$43.8
Services$116.1 $147.0$153.4 $154.6$(37.3)$(7.6)
Products92.5 98.655.9 54.836.643.8
Total gross profit$208.6 $245.6$209.3 $209.4$(0.7)$36.2
Services22.1 %28.0 %29.7 %30.1 %(760) bps(210) bps
Products25.0 %26.5 %16.4 %16.2 %860  bps1,030  bps
Total gross margin23.3 %27.4 %24.4 %24.5 %(110) bps290  bps
Selling and administrative expense161.6 135.0 183.8 $135.8 (22.2)(0.8)
Research, development and engineering expense24.2 21.3 26.4 $23.6 (2.2)(2.3)
Other operating expenses(1.0)— 1.2 — (2.2)— 
Operating expenses$184.8 $156.3 $211.4 $159.4 $(26.6)$(3.1)
Operating profit$23.8 $89.2 $(2.1)$50.0 $25.9$39.2
Operating margin2.7 %9.9 %(0.2)%5.9 %290  bps400  bps
4 - See Note 1 below for GAAP to Non-GAAP adjustments to net sales, gross profit and operating expenses, which include selling and administrative expense, research, development and engineering expense, gain/loss on sales of assets, net, and impairment of assets.
5- Refer to Note 1 below for further information regarding adjustments for Non-GAAP which excludes the results of the non-core European retail business that was sold in September 2023.




Page 7

Operating Profit by Segment - Unaudited
Three months ended
March 31, 2024March 31, 2023
($ in millions)Banking
Retail6
Banking
Retail6
Services$386.6 $138.2 $381.1 $133.2 
Products262.2 108.4 211.8 127.2 
Total net sales$648.8 $246.6 $592.9 $260.4 
Services$105.9 $41.1 $112.5 $42.1 
Products74.6 23.9 28.3 26.5 
Total gross profit$180.5 $65.0 $140.8 $68.6 
Services27.4 %29.7 %29.5 %31.6 %
Products28.5 %22.0 %13.4 %20.8 %
Total gross margin27.8 %26.4 %23.7 %26.3 %
Selling and administrative expense$49.0 $23.3 $44.2 $22.6 
Research, development and engineering expense15.1 6.0 16.7 6.9 
Segment operating expenses
$64.1 $29.3 $60.9 $29.5 
Operating profit$116.4 $35.7 $79.9 $39.1 
Operating margin17.9 %14.5 %13.5 %15.0 %
Segment operating profit$152.1 $119.0 
Corporate charges7
62.9 69.0 
Consolidated Non-GAAP operating profit$89.2 $50.0 
6 - Excludes the results of the non-core European retail business that was sold during September 2023, and certain other non-recurring, non-operational charges detailed in the notes for Non-GAAP measures. Refer to Note 1 for further information.
7- Corporate charges are not reflected in the segment operating results, as these expenses are managed separately and not included in the segment results used to manage the business and assess performance. The unassigned corporate charges consist primarily of finance, IT, HR and legal expenditures.
Page 8

DIEBOLD NIXDORF, INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED
(in millions)
Successor
 3/31/202412/31/2023
ASSETS
Current assets
Cash, cash equivalents, and restricted cash$388.1 $592.3 
Short-term investments19.2 13.4 
Trade receivables, less allowances for doubtful accounts660.7 721.8 
Inventories636.1 589.8 
Other current assets268.2 236.6 
Total current assets1,972.3 2,153.9 
Securities and other investments6.6 6.5 
Property, plant and equipment, net153.1 159.0 
Deferred income taxes61.6 71.4 
Goodwill606.2 616.7 
Customer relationships, net525.0 543.0 
Other intangible assets, net333.1 348.3 
Other assets285.1 263.2 
Total assets$3,943.0 $4,162.0 
    
LIABILITIES AND EQUITY   
Current liabilities   
Notes payable$0.5 $0.3 
Accounts payable536.6 529.0 
Deferred revenue381.5 376.2 
Other current liabilities499.5 515.5 
Total current liabilities1,418.1  1,421.0 
   
Long-term debt1,109.7 1,252.4 
Other liabilities389.5 409.4 
Total Diebold Nixdorf, Incorporated shareholders' equity 1,013.1 1,063.8 
Noncontrolling interests12.6 15.4 
Total equity 1,025.7 1,079.2 
Total liabilities and equity$3,943.0 $4,162.0 
 

Page 9

DIEBOLD NIXDORF, INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
(in millions, except per share amounts)
Three months
SuccessorPredecessor
 Three Months Ended
March 31, 2024		Three Months Ended
March 31, 2023
Net sales
Services$524.8 $516.4 
Products370.6 341.7 
Total895.4 858.1 
Cost of sales
Services408.7 363.0 
Products278.1 285.8 
Total686.8 648.8 
Gross profit208.6 209.3 
Gross margin23.3 %24.4 %
Operating expenses  
Selling and administrative expense161.6 183.8 
Research, development and engineering expense24.2 26.4 
(Gain) loss on sale of assets, net(1.0)0.3 
Impairment of assets— 0.9 
Total184.8 211.4 
Percent of net sales20.6 %24.6 %
Operating profit (loss)23.8 (2.1)
Operating margin2.7 %(0.2)%
Other income (expense)
Interest income4.2 1.7 
Interest expense(43.6)(81.9)
Foreign exchange gain (loss), net0.4 (10.6)
Miscellaneous gain, net1.0 2.6 
Total other income (expense)(38.0)(88.2)
Loss before taxes(14.2)(90.3)
Income tax (benefit) expense(3.1)21.1 
Equity in earnings (loss) of unconsolidated subsidiaries, net(2.9)(0.1)
Net loss(14.0)(111.5)
Net (loss) income attributable to noncontrolling interests0.6 (0.4)
Net loss attributable to Diebold Nixdorf, Incorporated$(14.6)$(111.1)
 
Basic and diluted weighted-average shares outstanding37.6 79.3 
Net loss attributable to Diebold Nixdorf, Incorporated
Basic and diluted loss per share$(0.39)$(1.40)








Page 10


DIEBOLD NIXDORF, INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED
(in millions)
SuccessorPredecessor
Three months endedThree months ended
 March 31, 2024March 31, 2023
Cash flow from operating activities
Net loss$(14.0)$(111.5)
Adjustments to reconcile net loss to cash flow used by operating activities:
Depreciation and amortization9.1 11.7 
Amortization of fair value intangible assets24.2 17.7 
Amortization of deferred financing costs into interest expense0.4 13.6 
Share-based compensation1.9 1.3 
Debt prepayment costs2.0 — 
(Gain) loss on sale of assets, net(1.0)0.3 
Deferred income taxes(2.2)2.9 
Impairment of assets— 0.9 
Other(0.1)0.8 
Changes in certain assets and liabilities:
Trade receivables49.1 (4.4)
Inventories(56.1)(39.6)
Accounts payable16.1 15.4 
Income taxes(11.9)(2.8)
Deferred revenue10.9 25.5 
Certain other assets and liabilities(51.9)(27.7)
Net cash used by operating activities(23.5)(95.9)
Cash flow from investing activities
Capital expenditures(6.7)(5.7)
Capitalized software development(6.2)(5.4)
Net short-term investment activity(6.0)9.4 
Proceeds from sale of assets0.9 — 
Net cash used by investing activities(18.0)(1.7)
Cash flow from financing activities
Debt issuance costs(4.6)— 
Revolving credit facility borrowings, net50.0 22.7 
Other debt borrowings0.2 2.3 
Other debt repayments(200.1)(2.1)
Debt prepayment costs(2.0)— 
Other(1.5)(1.8)
Net cash (used), provided by financing activities(158.0)21.1 
Effect of exchange rate changes on cash, cash equivalents and restricted cash(4.7)1.9 
Change in cash, cash equivalents and restricted cash(204.2)(74.6)
Add: Cash included in assets held for sale at beginning of period— 2.8 
Less: Cash included in assets held for sale at end of period— 0.9 
Cash, cash equivalents and restricted cash at the beginning of the period592.3 319.1 
Cash, cash equivalents and restricted cash at the end of the period$388.1 $246.4 
Page 11

Notes for Non-GAAP Measures
To supplement our condensed consolidated financial statements presented in accordance with GAAP, the company utilizes certain financial measures that are not prepared in accordance with GAAP, including Non-GAAP results, EBITDA and Adjusted EBITDA, adjusted earnings per share, free cash flow (use) and net debt.

Note 1. Profit and loss summary ($ in millions):

Q1 2024
Successor
Service SalesProduct SalesNet SalesCOS - serviceCOS -productCOSGross Profit% of SalesSG&AR&DOther OPEXOP% of Sales
GAAP$524.8 $370.6 $895.4 $408.7 $278.1 $686.8 $208.6 23.3 %$161.6 $24.2 $(1.0)$23.8 2.7 %
Restructuring and transition - personnel— — — (16.3)(0.6)(16.9)16.9 (11.0)(3.0)— 30.9 
Transformation - other— — — — — — — (5.8)— — 5.8 
Financial restructuring costs— — — — — — — (7.0)— 0.1 6.9 
Amortization of fair valued assets— — — (14.6)(5.8)(20.4)20.4 (2.6)0.1 — 22.9 
Non-routine income/expense:
Divestitures and asset sales— — — — — — — — — 0.9 (0.9)
Legal deal matters— 1.7 1.7 — 1.0 1.0 0.7 (0.2)— — 0.9 
Other— — — — 1.1 1.1 (1.1)— — — (1.1)
Non-routine (income) expenses, net— 1.7 1.7 — 2.1 2.1 (0.4)(0.2)— 0.9 (1.1)
Non-GAAP Adjusted results$524.8 $372.3 $897.1 $377.8 $273.8 $651.6 $245.5 27.4 %$135.0 $21.3 $— $89.2 9.9 %
Q1 2023
Predecessor
Service SalesProduct SalesNet SalesCOS - serviceCOS -productCOSGross Profit% of SalesSelling, G&AR, D & EOther OPEXOP% of Sales
GAAP$516.4 $341.7 $858.1 $363.0 $285.8 $648.8 $209.3 24.4 %$183.8 $26.4 $1.2 $(2.1)(0.2)%
Restructuring and transition - personnel— — — (0.6)— (0.6)0.6 (6.6)(0.6)— 7.8 
Transformation - other— — — (0.3)(0.3)0.3 (6.4)— (0.5)7.2 
Refinancing related costs— — — — — — — (14.1)— — 14.1 
Held for sale non-core European retail business(2.1)(2.7)(4.8)(2.9)(1.3)(4.2)(0.6)(2.1)(2.2)— 3.7 
Amortization of intangible assets— — — — — — — (17.7)— — 17.7 
Non-routine income/expense:
Legal/deal expense— — — — — — — (0.2)— — 0.2 
Other— — — 0.2 — 0.2 (0.2)(0.9)— 0.2 0.5 
Other impairment— — — — — — — — — (0.9)0.9 
Non-routine (income) expenses, net— — — 0.2 — 0.2 (0.2)(1.1)— (0.7)1.6 
Non-GAAP Adjusted results$514.3 $339.0 $853.3 $359.7 $284.2 $643.9 $209.4 24.5 %$135.8 $23.6 $— $50.0 5.9 %


Page 12

Q1 2024Q1 2023
SuccessorPredecessor
ServicesProductsTotalServicesProductsTotal
Gross Profit$116.1 $92.5 $208.6 $153.4 $55.9 $209.3 
Restructuring and transition - personnel16.3 0.6 16.9 0.6 0.6 
Transformation - other— — — 0.3 0.3 
Financial restructuring costs— — — — 
Held for sale non-core business— — — 0.8 (1.4)(0.6)
Amortization of fair valued assets14.6 5.8 20.4 — 
Non-routine income/expense:— 
Legal deal matters— 0.7 0.7 — 
Other— (1.1)(1.1)(0.2)(0.2)
Non-routine (income) expenses, net— (0.4)(0.4)(0.2)— (0.2)
Non-GAAP Adjusted Gross profit$147.0 $98.5 $245.5 $154.6 $54.8 $209.4 

Restructuring and transition - personnel expenses incurred during 2024 and 2023 relate to the cost savings initiative focused on operational simplification and automation of processes, and include severance and payroll of employees transitioning out of the organization. Costs of third-parties assisting with the execution of the program are categorized as Transformation - other. Financial restructuring costs incurred in 2024 and 2023 are advisor fees for the Company's restructuring process to optimize the capital structure that do not qualify for capitalization. Held for sale business are the results of a formerly majority-owned business that the Company sold in Q3 2023 that are excluded from the metrics used to evaluate the core business and assign resources. Amortization of fair valued assets expense is taken against the intangible assets established in purchase accounting as management believes that this is useful information which were eliminated upon application of Fresh Start Accounting. Legal deal matters primarily relates to third-party expenses and fees paid by the company for M&A activity and in Q1 2024 vendor adjustments in a foreign jurisdiction.

Page 13

Note 2. Reconciliation of Combined net loss to EBITDA and Adjusted EBITDA (Non-GAAP measures) ($ in millions):
SuccessorPredecessor
Three months endedThree months ended
March 31, 2024March 31, 2023
Net loss$(14.0)$(111.5)
Income tax expense(3.1)21.1 
Interest income(4.2)(1.7)
Interest expense43.6 81.9 
Depreciation and amortization33.3 29.4 
EBITDA55.6 19.2 
Share-based compensation1.9 1.3 
Amortization of cloud-based software implementation costs1.8 0.8 
Foreign exchange loss (gain), net(0.4)10.6 
Miscellaneous gain, net(1.0)(2.6)
Equity in earnings (loss) of unconsolidated subsidiaries, net2.9 0.1 
Restructuring and transformation expenses36.7 15.0 
Refinancing related costs6.9 14.1 
Non-routine (income) expense, net(1.1)1.6 
Held for sale non-core European retail business— 3.6 
Adjusted EBITDA$103.3 $63.7 
   Adjusted EBITDA as a % of revenue11.5 %7.5 %


The company defines EBITDA as net loss excluding income tax benefit/expense, net interest expense, and depreciation and amortization expense. Adjusted EBITDA is EBITDA excluding the effects of the following items: share-based compensation, amortization of cloud-based software implementation costs, foreign exchange gain/loss net, miscellaneous net, equity in earnings of unconsolidated subsidiaries, restructuring and transformation expenses, refinancing related costs, non-routine expenses, the adjusted EBITDA loss of our held for sale non-core European retail business, and reorganization items, net as outlined in Note 1 of the Non-GAAP measures.

The company excluded the amortization of Fresh Start fair valued assets and Wincor Nixdorf purchase accounting intangible assets from non-routine expenses, net in the Adjusted EBITDA reconciliation. Deferred financing fee amortization is included in interest expense; as a result, the company excluded from the depreciation and amortization caption. Depreciation and amortization expense was excluded from Held for sale non-core European retail business. Amortization of cloud-based software implementation represents amortization of capitalized implementation costs related to cloud-based software arrangements that are included in selling and administrative expenses but are not considered GAAP depreciation and amortization. Reorganization items, net includes all income, expenses, gains, or losses that are incurred or realized as a result of the restructuring proceedings.
These are Non-GAAP financial measures used by management to enhance the understanding of our operating results. EBITDA and Adjusted EBITDA are key measures we use to evaluate our operational performance. We provide EBITDA and Adjusted EBITDA because we believe that investors and securities analysts will find EBITDA and Adjusted EBITDA to be useful measures for evaluating our operating performance and comparing our operating performance with that of similar companies that have different capital structures and for evaluating our ability to meet our future debt service, capital expenditures, and working capital requirements. However, EBITDA and Adjusted EBITDA should not be considered as alternatives to net income as a measure of operating results or as alternatives to cash flows from operating activities as a measure of liquidity in accordance with GAAP.

Note 3. Net debt is calculated as follows ($ in millions):
March 31, 2024December 31, 2023March 31, 2023
SuccessorSuccessorPredecessor
Cash, cash equivalents, restricted cash and short-term investments (GAAP measure)$407.3 $605.7 $263.0 
Cash included in assets held for sale— — 0.9 
Debt instruments(1,110.2)(1,252.7)(2,655.4)
Net debt (Non-GAAP measure)$(702.9)$(647.0)$(2,391.5)

We believe that cash, cash equivalents, restricted cash, and short-term investments on the balance sheet that net cash against outstanding debt, presented as net debt above, is a meaningful measure.

Page 14

Note 4. Reconciliation of GAAP net loss and net loss attributable to Diebold Nixdorf, Incorporated to Non-GAAP net income (loss) attributable to Diebold Nixdorf, Incorporated:
Q1 2024Q1 2023
($ in millions, except per share data)Successorper sharePredecessorper share
Net income (loss)$(14.0)$(0.37)$(111.5)$(1.41)
Net (loss) income attributable to noncontrolling interests0.6 0.02 (0.4)(0.01)
Net loss attributable to Diebold Nixdorf, Incorporated$(14.6)$(0.39)$(111.1)$(1.40)
Restructuring and transformation expenses36.7 0.98 15.0 0.19 
Refinancing related costs6.9 0.18 14.1 0.18 
Held for sale non-core European retail business— — 3.7 0.05 
Amortization of fair value intangibles22.9 0.61 17.7 0.22 
Non-routine (income) expense:
Divestitures and asset sales gain(0.9)(0.02)— — 
Legal/deal expense0.9 0.02 0.2 — 
Other(1.1)(0.03)0.5 0.01 
Other Impairment— — 0.9 0.01 
Non-routine (income) expense, net(1.1)(0.03)1.6 0.02 
Tax impact (inclusive of allocation of discrete tax items)(6.2)(0.16)(8.2)(0.10)
Net (loss) income (Non-GAAP)$45.2 $1.20 $(67.6)$(0.86)
Net (loss) income attributable to noncontrolling interests0.6 0.02 (0.4)(0.01)
Total adjusted net income (loss) attributable to Diebold Nixdorf, Incorporated (Non-GAAP measure)$44.6 $1.19 $(67.2)$(0.85)


Refer to Note 1 for additional information on non-routine (income) expense for the periods presented.





PR_24-4126
Page 15
v3.24.1.u1
Cover
May 02, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date May 02, 2024
Entity Registrant Name Diebold Nixdorf, Incorporated
Entity Incorporation, State or Country Code DE
Entity File Number 1-4879
Entity Tax Identification Number 34-0183970
Entity Address, Address Line One 350 Orchard Avenue NE
Entity Address, City or Town North Canton,
Entity Address, State or Province OH
Entity Address, Postal Zip Code 44236
City Area Code 330
Local Phone Number 490-4000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.01 par value per share
Trading Symbol DBD
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0000028823
Amendment Flag false
Diebold Nixdorf (PK) (USOTC:DBDQQ)
Historical Stock Chart
From Apr 2024 to May 2024 Click Here for more Diebold Nixdorf (PK) Charts.
Diebold Nixdorf (PK) (USOTC:DBDQQ)
Historical Stock Chart
From May 2023 to May 2024 Click Here for more Diebold Nixdorf (PK) Charts.