Diebold Reports Fourth Quarter and Full-Year Financial Results
Earnings overview presentation available at www.diebold.com/DBD4Q09.pdf
- Fourth quarter earnings of $0.12 per share, or $0.29 per share on non-GAAP basis
- Continued improvement in working capital; net debt reduced by $191 million from prior year
- Orders up significantly across most geographies
- North America market remains challenging; company restructuring North America operations and corporate functions; to eliminate approximately 350 jobs by mid-February
- 4Q and full-year tax rate higher than expected; impacted by approximately $9 million, or $0.13 per share in estimated tax provision adjustments related to prior years
NORTH CANTON, Ohio, Feb. 3 /PRNewswire-FirstCall/ -- Diebold, Incorporated (NYSE: DBD) today reported fourth quarter 2009 income from continuing operations attributable to Diebold, net of tax, of $7.9 million, or $0.12 per share. These amounts are down 55% and 54%, respectively, from the fourth quarter 2008. Fourth quarter 2009 revenue was $724.9 million, down 8% from fourth quarter 2008.
(Logo: http://www.newscom.com/cgi-bin/prnh/20080725/DIEBOLDLOGO )
Full-year 2009 income from continuing operations attributable to Diebold, net of tax, was $73.1 million, or $1.09 per share, both down 32% and 33% respectively from 2008. Full-year 2009 revenue was $2,718.3 million, down 12% from 2008.
Non-GAAP earnings per share* from continuing operations attributable to Diebold, in the fourth quarter 2009 were $0.29, down 33% from fourth quarter 2008. Full-year 2009 non-GAAP earnings per share* were $1.65, down 39% from the same period in 2008.
Business Review
Management commentary
“We delivered solid operational results during the fourth quarter, despite a number of challenges the financial industry continues to face,” said Thomas W. Swidarski, Diebold president and chief executive officer. “In addition to growth in orders and full-year cash flow, we generated improved service margins during the quarter -- representing our 10th consecutive quarter of year-over-year improved service gross margin.”
Swidarski continued, “While I am encouraged by the strong fourth quarter order growth we generated across most geographies, our business related to bank branch construction in North America remains especially challenging and will likely not return to historical norms in the near future. To improve our ability to invest in key growth initiatives, we are realigning our organization and resources to better support our opportunities in the emerging growth markets. Unfortunately, these changes will result in the elimination of approximately 350 full-time jobs from our North America operations and corporate functions. These reductions will be largely completed by mid-February. As always, these are extremely difficult decisions, but necessary to ensure we’re in a position of strength in our industry.”
Swidarski concluded, “Despite these actions, we will continue to accelerate our investment in developing new solutions and growing our infrastructure in the emerging growth markets as well as in the services business globally. At the same time, North America remains our key market, especially as customers begin planning deposit automation deployment and investing in services that allow them to focus more on their core business. We will maintain our strong leadership position by leveraging our unmatched services capability to deliver higher value solutions in these areas to our customer base.”
Bradley C. Richardson, Diebold executive vice president and chief financial officer, said, “Since joining Diebold in November, our associates have made my transition into the company seamless, which has enabled me to make an immediate impact to several facets of the business. In terms of our fourth quarter performance, I’m pleased with the progress we continued to make on improving our working capital, which has resulted in exceptional year-to-date free cash flow and a significant reduction in net debt. Working capital will continue to be a key point of emphasis for us moving forward, as improvements in this area enhance our ability to invest in future growth opportunities as well as returning cash to shareholders in the form of dividends and modest share repurchases.”
Fourth Quarter Orders (constant currency)
Total product and services orders for financial self-service and security were up more than 20% compared with the prior-year period. Global financial self-service orders increased more than 40% compared with the fourth quarter 2008, and increased nearly 40% sequentially from the third quarter, which positions the company well for the second half of 2010. Orders in Asia Pacific increased more than 50%. In the Americas, financial self-service orders also increased more than 50% with a double digit decline in North America more than offset by significant increases in Brazil and Latin America. Orders in Europe, Middle East and Africa (EMEA) increased more than 20%. Security orders decreased in the low double digit range, but slightly increased sequentially from the third quarter. This is the second consecutive quarter that security orders have increased sequentially demonstrating that the business continues to stabilize.
Profit/Loss
Profit/loss summary – 4th quarter comparison (Dollars in millions)
Q4 2009
Rev Gross Profit % of Sales OPEX OP % of Sales
-------------------------------------------------------------------------
GAAP Results $724.9 $176.6 24.4% $148.2 $28.3 3.9%
-------------------------------------------------------------------------
Restructuring 5.8 (9.2) 15.0
Non-rout. Exp - (0.1) 0.1
Non-rout. Inc - - -
Impairment - (2.5) 2.5
-------------------------------------------------------------------------
Non-GAAP Results $724.9 $182.3 25.2% $136.4 $46.0 6.3%
-------------------------------------------------------------------------
Q4 2008
Rev Gross Profit % of Sales OPEX OP % of Sales
-------------------------------------------------------------------------
GAAP Results $791.1 $193.6 24.5% $144.0 $49.7 6.3%
-------------------------------------------------------------------------
Restructuring 5.4 (6.7) 12.1
Non-rout. Exp - (3.3) 3.3
Non-rout. Inc - - -
Impairment - - -
-------------------------------------------------------------------------
Non-GAAP Results $791.1 $199.0 25.2% $134.0 $65.1 8.2%
-------------------------------------------------------------------------
Profit/loss summary – full-year comparison (Dollars in millions)
FY 2009
Rev Gross Profit % of Sales OPEX OP % of Sales
-------------------------------------------------------------------------
GAAP Results $2,718.3 $650.0 23.9% $499.4 $150.6 5.5%
-------------------------------------------------------------------------
Restructuring 12.8 (12.4) 25.2
Non-rout. Exp - (1.5) 1.5
Non-rout. Inc - 11.3 (11.3)
Impairment - (2.5) 2.5
-------------------------------------------------------------------------
Non-GAAP Results $2,718.3 $662.8 24.4% $494.4 $168.4 6.2%
-------------------------------------------------------------------------
FY 2008
Rev Gross Profit % of Sales OPEX OP % of Sales
-------------------------------------------------------------------------
GAAP Results $3,081.8 $774.9 25.1% $592.0 $182.9 5.9%
-------------------------------------------------------------------------
Restructuring 25.6 (15.4) 40.9
Non-rout. Exp - (45.1) 45.1
Non-rout. Inc - - -
Impairment - (4.4) 4.4
-------------------------------------------------------------------------
Non-GAAP Results $3,081.8 $800.5 26.0% $527.1 $273.4 8.9%
-------------------------------------------------------------------------
The company's management believes excluding restructuring charges, non-
routine expenses and income and impairment charges from operating margins
is an indication of the company's baseline performance before gains,
losses, or other charges that are considered by management to be outside
the company's core operating results. The exclusion of these items
permits evaluation and comparison of results for the company's core
business operations and it is on this basis that the company's management
internally assesses the company's performance.
Revenue
Total revenue for the fourth quarter 2009 was down 8%, including a net positive currency impact of 6%. Full-year 2009 revenue was down 12%, including a net negative currency impact of 2%.
Gross Margin
Total gross margin for the fourth quarter 2009 was 24.4%, essentially flat from the fourth quarter of 2008. Full-year 2009 gross margin was 23.9%, a decrease of 1.2 percentage points from the same period of 2008.
Operating Expense
Total operating expense as a percentage of revenue for the fourth quarter 2009 was 20.4%, an increase of 2.2 percentage points from the fourth quarter of 2008.
Total operating expense as a percentage of revenue for full-year 2009 was 18.4%, a decrease of 0.8 percentage points from the same period of 2008.
Impairment items
A pre-tax $2.5 million, or $0.02 per share non-cash impairment charge was recorded during the 2009 fourth quarter related to the write off of an intangible asset associated with the discontinuation of the brand name “Firstline Inc.” In the first quarter of 2008, the company incurred a pre-tax impairment charge of $4.4 million, or $0.05 per share, related to the write down of intangible assets from the 2004 acquisition of TFE Technology.
Operating Profit
Operating profit was 3.9% of net sales in the fourth quarter 2009, a decrease of 2.4 percentage points from the fourth quarter 2008.
Full-year 2009 operating profit was 5.5% of revenue, a decrease of 0.4 percentage points from the comparable period of 2008.
Income from Continuing Operations, net of tax (attributable to Diebold)
Income from continuing operations, net of tax, was $7.9 million or 1.1% of revenue in the fourth quarter 2009, a decrease of 55%, or 1.1 percentage points from the fourth quarter 2008. Included in the 2009 results are after-tax restructuring charges of $9.8 million and after-tax, non-routine and impairment charges of $1.7 million. Income from continuing operations in the fourth quarter of 2008 included after-tax restructuring charges of $8.6 million, and after-tax, non-routine charges of $2.4 million.
Full-year 2009 income from continuing operations, net of tax, was $73.1 million, or 2.7% of revenue, and $107.8 million, or 3.5% of revenue, in the comparable period of 2008. Full-year 2009 income from continuing operations, net of tax, includes the $25 million reserve related to the agreement in principle with the staff of the SEC, $8.2 million in expense recovery and reimbursement from the company’s D&O insurance carriers, as well as after-tax restructuring charges of $17.4 million and $2.7 million in non-routine and impairment charges. Full-year 2008 income from continuing operations, net of tax, included $32.9 million in after-tax restructuring charges, and after-tax, non-routine and impairment charges of $39.2 million.
Taxes on Income from continuing operations attributable to Diebold
Fourth quarter taxes on income from continuing operations attributable to Diebold were $22.7 million, resulting in a higher-than-expected fourth quarter tax rate of 74%, and a full-year tax rate of 37%. The fourth quarter taxes included approximately $9 million in estimated tax provision adjustments related to prior-year periods. In addition, results also included additional deferred tax asset valuation allowance of approximately $6 million related to one of our legal entities in Brazil.
Due to the complex nature of the tax adjustments reflected in its fourth quarter results, the company has not had adequate time to finalize the tax adjustments described above. Accordingly, the amounts included above are estimates and subject to change upon completion of the company’s financial statements prior to filing the 2009 annual report on form 10-K.
Balance Sheet, Cash Flow and Liquidity
The company’s net debt* was $62.9 million at December 31, 2009, a reduction of $191.3 million from December 31, 2008. The company’s net debt to capital ratio was 6% at December 31, 2009 and 21% at December 31, 2008. For the full-year of 2009, net cash provided by operating activities was $300.9 million at December 31, 2009, an increase of $16.2 million from December 31, 2008. Free cash flow* in the fourth quarter 2009 was $162.3 million, a decrease of $35.3 million from the fourth quarter 2008. For the full-year of 2009, free cash flow* was $256.6 million, an increase of $29.8 million from the full-year of 2008.
Restructuring charges and discontinued operations
The company incurred restructuring charges of $9.8 million, or $0.15 per share, in the fourth quarter of 2009. These charges were largely related to severance costs from the previously mentioned reorganization of the company’s North America and corporate functions. As part of this effort, Diebold has realigned its leadership and organizational structure to better position the company to execute on profitable growth opportunities globally. A number of leadership changes associated with this restructuring have been previously announced.
Full-year 2009 restructuring charges were $17.4 million, or $0.27 per share.
All results from operations reported today, including prior periods, reflect Premier Election Solutions as a discontinued operation. As previously disclosed, in September, the company sold its U.S.-based elections systems business. Likewise the company closed its EMEA-based enterprise security operations during the fourth quarter 2008. As a result, the company recorded a fourth quarter 2009 loss from discontinued operations of ($1.9) million net of tax and a tax benefit on the sale of the U.S.-based elections systems business of $10.7 million net of tax. This compares to a loss from discontinued operations of ($16.3) million, net of tax, in the fourth quarter 2008. Losses from discontinued operations for the full-year, net of tax were ($10.7) million and ($19.2) million in 2009 and 2008, respectively. For the full-year 2009, the company has also recorded a loss on the sale of the U.S.-based elections systems business of ($20.8) million net of tax.
Full-year 2010 outlook
The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. These statements do not include the potential impact of any future acquisitions, disposals or other business combinations.
Expectations for continuing operations for the full year 2010 include:
- Revenue
Current Guidance
----------------
Total revenue 4% to 9%
------------- --------
Financial self-service 2% to 6%
---------------------- --------
Security -1% to -6%
-------- ----------
Brazilian Election
systems /lottery $105 million to $115 million
------------------ ----------------------------
- Earnings per share
Current Guidance
----------------
2010 EPS (GAAP) $1.87 - $2.10
--------------- -------------
Restructuring charges .03 - .05
--------------------- ---------
2010 EPS (non-GAAP*) $1.90 - $2.15
-------------------- -------------
Overview presentation and conference call
More information on Diebold’s quarterly earnings, including additional financial analysis and an earnings overview presentation, is available on Diebold’s Investor Relations website. Thomas W. Swidarski and Bradley C. Richardson will discuss the company’s financial performance during a conference call today at 10:00 a.m. (ET). Both the presentation and access to the call are available at http://investors.diebold.com. The replay can also be accessed on the site for up to three months after the call.
Revenue Summary by Product, Service and Geographic Area
Revenue Summary by Product and Service Solutions
(In Thousands)
Q4 Q4 % FY FY %
2009 2008 Change 12/31/2009 12/31/2008 Change
---- ---- ------ ---------- ---------- ------
Financial Self-
Service
---------------
Products $263,255 $314,388 -16% $985,275 $1,127,120 -13%
Services 285,600 268,717 6% 1,083,875 1,113,450 -3%
-------- -------- --- --------- ---------- ---
Total Fin.
self-service 548,855 583,105 -6% 2,069,150 2,240,570 -8%
Security
solutions
----------
Products 70,516 91,603 -23% 247,518 319,493 -23%
Services 103,990 116,041 -10% 396,071 455,909 -13%
-------- -------- --- --------- ---------- ---
Total Security 174,506 207,644 -16% 643,589 775,402 -17%
-------- -------- --- --------- ---------- ---
Total Fin.
self-service
& security 723,361 790,749 -9% 2,712,739 3,015,972 -10%
Brazil election
systems
---------------
Products - 19 -100% - 60,935 -100%
Services 118 -100% 623 -100%
-------- -------- --- --------- ---------- ---
Total Brazil
election
systems - 137 -100% - 61,558 -100%
Brazil lottery
systems 1,562 261 498% 5,553 4,308 29%
-------- -------- --- --------- ---------- ---
Total Revenue $724,923 $791,147 -8% $2,718,292 $3,081,838 -12%
======== ======== === ========== ========== ===
Revenue Summary by Geographic Segment
Q4 Q4 % FY FY %
2009 2008 Change 12/31/2009 12/31/2008 Change
---- ---- ------ ---------- ---------- ------
The Americas $503,753 $575,258 -12% $1,985,010 $2,211,346 -10%
Asia Pacific 106,357 83,635 27% 387,119 400,558 -3%
Europe, Middle East,
Africa 114,813 132,254 -13% 346,163 469,934 -26%
-------- -------- --- --------- ---------- ---
Total Revenue $724,923 $791,147 -8% $2,718,292 $3,081,838 -12%
======== ======== === ========== ========== ===
*See accompanying notes for non-GAAP measures.
Notes for Non-GAAP Measures
1. Reconciliation of diluted GAAP EPS to non-GAAP EPS from continuing
operations measures:
Q4 2009 Q4 2008 FY 12/31/09 FY 12/31/08
-------- -------- ----------- -----------
Total EPS from
continuing operations
(GAAP measure) $0.12 $0.26 $1.09 $1.62
---------------------- ----- ----- ----- -----
Restructuring charges 0.15 0.13 0.27 0.50
--------------------- ---- ---- ---- ----
Non-routine expenses -- 0.04 0.39 0.54
-------------------- --- ---- ---- ----
Non-routine income -- -- (0.12) --
------------------ --- --- ----- ---
Impairment 0.02 -- 0.02 0.05
---------- ---- --- ---- ----
Total EPS (non-GAAP
measure) $0.29 $0.43 $1.65 $2.71
------------------- ----- ----- ----- -----
Prior-year tax
adjustments $0.13 $0.13
-------------- ----- -----
The company’s management believes excluding restructuring charges, non-
routine expenses and income and impairment charges is useful to investors
because it provides an overall understanding of the company’s historical
financial performance and future prospects. Management believes EPS (non-
GAAP) from continuing operations is an indication of the company’s base-
line performance before gains, losses or other charges that are considered
by management to be outside the company’s core operating results.
Exclusion of these items permits evaluation and comparison of results for
the company’s core business operations, and it is on this basis that
management internally assesses the company’s performance. The non-GAAP EPS
does not include the impact of the prior year tax adjustments.
2. Free cash flow is calculated as follows:
Q4 2009 Q4 2008 YTD 12/31/09 YTD 12/31/08
------- ------- ------------ ------------
Net cash provided by
operating activities
(GAAP measure) $178,129 $222,845 $300,852 $284,691
--------------------- -------- -------- -------- --------
Capital expenditures (15,873) (25,295) (44,287) (57,932)
-------------------- ------- ------- ------- -------
Free cash flow (non-
GAAP measure) $162,256 $197,550 $256,565 $226,759
-------------------- -------- -------- -------- --------
The company’s management believes that free cash flow is useful to
investors because it is a meaningful indicator of cash generated from
operating activities that is available for the execution of its business
strategy, including service of debt principal, dividends, share repurchase
and acquisitions. (Free cash flow is utilized to fund our dividends, as
well as mandatory debt payments and other investment opportunities.)is not
an indicator of residual cash available for discretionary spending,
because it does not take into account mandatory debt service or other non-
discretionary spending requirements that are deducted in the calculation
of free cash flow.
3. Net (debt) is calculated as follows:
12/31/2009 12/31/2008 9/30/2009
---------- ---------- ---------
Cash, cash equivalents and
short-term investments
(GAAP measure) $505,868 $362,823 $385,022
--------------------------- -------- -------- --------
Less Industrial development
revenue bonds (11,900) (11,900) (11,900)
--------------------------- -------- -------- --------
Less Notes payable (556,915) (605,184) (581,458)
--------------------------- -------- -------- --------
Net (debt) (non-GAAP measure) $(62,947) $(254,261) $(208,336)
--------------------------- -------- -------- --------
The company’s management believes that given the net debt, the significant
cash, cash equivalents and other investments on its balance sheet, that
net cash against outstanding debt is a meaningful debt calculation.
Forward-Looking Statements
In this press release, statements that are not reported financial results or other historical information 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 relate to, among other things, the company’s future operating performance, the tax adjustments noted in this press release, the company's share of new and existing markets, the company's short- and long-term revenue and earnings growth rates, and the company’s implementation of cost-reduction initiatives and measures to improve pricing, including the optimization of the company’s manufacturing capacity. The use of the words “will,” “believes,” “anticipates,” “expects,” “intends” and similar expressions is intended to identify forward- looking statements that have been made and may in the future be made by or on behalf of the company. 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 on 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. The company is not obligated to update forward-looking statements, whether as a result of new information, future events or otherwise.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Some of the risks, uncertainties and other factors that could cause actual results to differ materially from those expressed in or implied by the forward-looking statements include, but are not limited to:
- ability to reach definitive agreements with the SEC and DOJ regarding their respective investigations;
- finalization of the tax adjustments noted in this press release;
- competitive pressures, including pricing pressures and technological developments;
- changes in the company's relationships with customers, suppliers, distributors and/or partners in its business ventures;
- changes in political, economic or other factors such as currency exchange rates, inflation rates, recessionary or expansive trends, taxes and regulations and laws affecting the worldwide business in each of the company's operations, including Brazil, where a significant portion of the company's revenue is derived;
- the continuing effects of the recent economic downturn and the disruptions in the financial markets, including the bankruptcies, restructurings or consolidations of financial institutions, which could reduce our customer base and/or adversely affect our customers’ ability to make capital expenditures, as well as adversely impact the availability and cost of credit;
- acceptance of the company's product and technology introductions in the marketplace;
- the amount of cash and non-cash charges in connection with the restructuring of the company’s North America operations and corporate functions, and the closure of both the company's Newark, Ohio facility and its EMEA-based enterprise security operations;
- unanticipated litigation, claims or assessments;
- variations in consumer demand for financial self-service technologies, products and services;
- potential security violations to the company's information technology systems;
- the investment performance of our pension plan assets, which could require us to increase our pension contributions;
- the company’s ability to successfully defend challenges raised to the sale of U.S. elections business; and
- the company’s ability to achieve benefits from its cost-reduction initiatives and other strategic changes.
About Diebold
Diebold, Incorporated is a global leader in providing integrated self-service delivery and security systems and services. Diebold employs more than 16,000 associates with representation in nearly 90 countries worldwide and is headquartered in Canton, Ohio, USA. Diebold is publicly traded on the New York Stock Exchange under the symbol ‘DBD.’ For more information, visit the company’s Web site at www.diebold.com, or visit www.diebold.com/150 to learn more about Diebold’s 150-year history.
DIEBOLD, INCORPORATED
CONDENSED CONSOLIDATED INCOME STATEMENTS -UNAUDITED
(IN THOUSANDS EXCEPT EARNINGS PER SHARE)
Three months ended Twelve months ended
December 31, December 31,
2009 2008 2009 2008
---- ---- ---- ----
Net Sales
Product $335,333 $406,271 $1,238,346 $1,511,856
Service 389,590 384,876 1,479,946 1,569,982
------- ------- --------- ---------
Total 724,923 791,147 2,718,292 3,081,838
Cost of goods
Product 254,951 301,259 944,090 1,098,633
Service 293,418 296,248 1,124,202 1,208,328
------- ------- --------- ---------
Total 548,369 597,507 2,068,292 2,306,961
Gross Profit 176,554 193,640 650,000 774,877
Percent of net sales 24.4% 24.5% 23.9% 25.1%
Operating expenses
Selling, general and
administrative 123,893 124,444 424,882 514,557
Research, development
and engineering 21,823 19,506 72,026 73,034
Impairment of assets 2,500 - 2,500 4,376
------- ------- --------- ---------
Total 148,216 143,950 499,408 591,967
Percent of net sales 20.4% 18.2% 18.4% 19.2%
Operating profit 28,338 49,690 150,592 182,910
Percent of net sales 3.9% 6.3% 5.5% 5.9%
Other income/
(expense), net 5,165 (15,046) (26,785) (26,593)
----- ------- ------- -------
Income from
continuing
operations before
taxes 33,503 34,644 123,807 156,317
Taxes on income (23,520) (15,565) (44,477) (41,496)
------- ------- ------- -------
Income from
continuing
operations 9,983 19,079 79,330 114,821
Loss from
discontinued
operations -net of
tax (1,872) (16,345) (10,714) (19,198)
Income/(Loss) sale
of discontinued ops
-net of tax 10,660 - (20,778) -
------ --- ------- ---
Net income 18,771 2,734 47,838 95,623
Less: Net Income
Attrib to Noncontrol
interest (2,084) (1,676) (6,228) (7,040)
------ ------ ------ ------
Net income
Attributable to
Diebold, Inc. $16,687 $1,058 $41,610 $88,583
======= ====== ======= =======
Basic weighted
average shares
outstanding 66,318 66,106 66,257 66,081
Diluted weighted
average shares
outstanding 67,057 66,651 66,867 66,492
Basic Earnings Per
Share:
------------------
Income from
continuing
operations $0.12 $0.27 $1.10 $1.63
Income/(Loss) from
discontinued
operations 0.13 (0.25) (0.47) (0.29)
---- ----- ----- -----
Net income $0.25 $0.02 $0.63 $1.34
===== ===== ===== =====
Diluted Earnings Per
Share:
--------------------
Income from
continuing
operations $0.12 $0.26 $1.09 $1.62
Income/(Loss) from
discontinued
operations 0.13 (0.25) (0.47) (0.29)
---- ----- ----- -----
Net income $0.25 $0.01 $0.62 $1.33
===== ===== ===== =====
Amounts Attributable
to Diebold, Inc.
--------------------
Income From
continuing
Operations -Net of
Tax $7,899 $17,403 $73,102 $107,781
Discontinued
Operations -Net of
Tax 8,788 (16,345) (31,492) (19,198)
----- ------- ------- -------
Net income
attributable to
Diebold, Inc. $16,687 $1,058 $41,610 $88,583
======= ====== ======= =======
DIEBOLD, INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED
(IN THOUSANDS)
December December
31, 31,
2009 2008
---- ----
ASSETS
------
Current assets
Cash and cash equivalents $328,426 $241,436
Short-term investments 177,442 121,387
Trade receivables, net 330,982 447,079
Inventories 448,243 540,971
Other current assets 306,384 263,245
---------- ----------
Total current assets 1,591,477 1,614,118
Securities and other investments 73,989 70,914
Property, plant and equipment, net 204,820 203,594
Goodwill 450,937 408,303
Other assets 249,226 241,007
---------- ----------
Total assets $2,570,449 $2,537,936
---------- ----------
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Current liabilities
Notes payable $16,915 $10,596
Accounts payable 147,496 195,483
Other current liabilities 578,680 529,318
---------- ----------
Total current liabilities 743,091 735,397
Long-term notes payable 540,000 594,588
Long-term liabilities 199,748 243,693
Total shareholders' equity 1,087,610 964,258
---------- ----------
Total liabilities and shareholders'
equity $2,570,449 $2,537,936
---------- ----------
DIEBOLD, INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS -UNAUDITED
(IN THOUSANDS)
Twelve months ended
December 31
--------------------
2009 2008
---- ----
Cash flow from operating
activities:
Net income $47,838 $95,623
Adjustments to reconcile net
income to cash
provided by operating
activities:
Loss on sale of discontinued
operations 20,778 -
Depreciation and amortization 77,693 80,470
Impairment of asset 2,500 21,037
Share-based compensation, 56,510 (10,168)
deferred income taxes, & other
Cash provided by (used in)
changes
in certain assets and
liabilities:
Trade receivables 123,400 10,633
Inventories 76,001 (53,650)
Accounts payable (54,193) 36,480
Certain other assets and
liabilities (49,675) 104,266
------- -------
Net cash provided by operating
activities 300,852 284,691
Cash flow from investing
activities:
Proceeds from sale of
discontinued operations 9,908 -
Payments for acquisitions, net
of cash acquired (5,364) (4,461)
Net investment activity (20,510) (53,681)
Capital expenditures (44,287) (57,932)
Increase in certain other
assets & other (32,981) (26,410)
------- -------
Net cash used in investing
activities (93,234) (142,484)
Cash flow from financing
activities:
Dividends paid (69,451) (66,563)
Net repayments (56,917) (17,771)
Distribution of affiliates'
earnings to
non-controlling interest
holder & other (6,134) (3,355)
------ ------
Net cash used in financing
activities (132,502) (87,689)
Effect of exchange rate changes
on cash 11,874 (19,416)
------ -------
Increase in cash and cash
equivalents 86,990 35,102
Cash and cash equivalents
at the beginning of the period 241,436 206,334
Cash and cash equivalents at
the end of the period $328,426 $241,436
======== ========
SOURCE Diebold, Incorporated
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