Diebold, Incorporated (NYSE:DBD) Q4 2018 Earnings Conference Call Transcript

Feb 13, 2019 • 08:30 am ET


Diebold, Incorporated (NYSE:DBD) Q4 2018 Earnings Conference Call Transcript


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Good day, and welcome to the Diebold Incorporated Hosted Fourth Quarter and Full year 2018 Earnings Call. At this time, I'd like to turn the conference over to Steve Virostek. Please go ahead, sir.

Stephen A. Virostek

Thank you, Brandon. Welcome to Diebold Nixdorf's fourth quarter earnings call for 2018. Joining me today are Gerrard Schmid, President and Chief Executive Officer; and Jeff Rutherford, Chief Financial Officer. For your benefit, we have posted slides to accompany our discussion and these slides are available on the Investor Relations page of dieboldnixdorf.com. Later today, we will post a replay of our webcast to this IR website.

On Slide two of the presentation, we have a reminder that our comments today will include non-GAAP financial information, which we believe is helpful in assessing the company's performance. In the supplemental schedules of our slides, we have reconciled each non-GAAP metric to its most directly comparable GAAP metric.

On Slide three, we remind everyone that certain comments may be characterized as forward-looking statements and that there are a number of factors that could cause actual results to differ materially from these statements. You may find additional information on these factors in the company's SEC filings. I'd like to remind our listeners that this forward-looking information is current as of today and subsequent events may render this information out of date.

And with that, I will turn the call over to Gerrard.

Gerrard B. Schmid

Good morning, everyone. I'm pleased to join you today for a discussion of our solid fourth quarter results, as I marked my third full quarter as CEO. I'll also discuss the company's improved financial outlook, which is underpinned by our value-creating DN Now program.

The company's fourth quarter performance is summarized on Slide three, and it demonstrates both the ability of our team to execute on our priorities as well as the stickiness of our offerings with customers. Total orders increased 10% in constant currency during the quarter versus one-year ago, led by strong growth in Americas Banking and solid growth in Retail. More specifically, our success in the Americas Banking was underpinned by orders from more than $100 million of Windows 10 capable machines during the quarter. Contributing to the success was a $21 million contract from a large US regional bank for integrated hardware and software and a new five-year managed services contract.

In Latin America, we signed an agreement with Banco do Brasil, the largest bank in Brazil to deliver nearly 6,000 cash recyclers and maintenance services. In Mexico, we displaced an incumbent hardware provider with a $16 million contract win at Banco Azteca, which extends DN's market leadership in that country. On the service front, we achieved a very strong renewal rate including a three-year maintenance service contract with BBVA Bancomer in Mexico covering more than 7,600 ATMs. In Eurasia Banking, orders in Asia Pacific moderated as we continued our bidding discipline and focus on profitable opportunities. Orders in Europe, the Middle East and Africa grew modestly.

Important wins in the quarter included an