Diebold, Incorporated (NYSE:DBD) Q1 2019 Earnings Conference Call Transcript

Apr 30, 2019 • 08:30 am ET


Diebold, Incorporated (NYSE:DBD) Q1 2019 Earnings Conference Call Transcript


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Good day, and welcome to the Diebold Inc listed First Quarter 2019 Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Steve Virostek. Ma'am please go ahead.

Steve Virostek

Thank you, Katie and welcome everyone to Diebold Nixdorf's first quarter earnings call for 2019. Joining me today on the call are Gerrard Schmid, President and Chief Executive Officer; and Jeff Rutherford, our Chief Financial Officer.

For your benefit, we've posted presentation slides, which will accompany our prepared remarks on the Investor Relations page of dieboldnixdorf.com. Later this afternoon, an audio replay of today's webcast will also be posted to the IR website.

On Slide 2 of our presentation, we have a reminder that today's comments will include non-GAAP financial information, which we believe is helpful in assessing the Company's performance. In supplemental schedules of our slides, we have reconciled each non-GAAP metric to its most directly comparable GAAP metric.

Moving to Slide 3, we inform all participants that certain comments made today 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 Risk Factors in the Company's SEC filings. Also please keep in mind that forward looking information is current as of today and subsequent events may render this information out of date.

And now, I'll hand the call to Gerrard.

Gerrard B. Schmid

Good morning, everyone. I'm pleased to join you today for a discussion of our first quarter results. An update to our DN Now initiatives, and the reiteration of our outlook for 2019.

On Slide 3, we've highlighted the Company's first quarter performance. Overall, I am pleased with the results, which show our sustained execution against our priorities. Total orders decreased 1% in constant currency during the quarter versus one-year ago. We delivered strong growth in Americas banking where our success was supported by orders for more than $70 million of Windows 10 capable machines.

Key wins included a multi-year agreement with Keybanc to digitally transform more than 1,400 ATMs with dynamic, with DN's Vynamic software, a $5 million contract to provide recyclers and installation services with a Top 5 financial institution in Brazil. A contract with Teachers Credit Union to upgrade their entire feet of ATMs to Windows 10 in Midwestern states. This win indicates we're seeing Win10 demand from financial institutions of all sizes and we renewed a $40 million three-year service contract with one of the top financial institutions in The United States.

Eurasia Banking orders declined modestly in Q1 with very different trends across the sub-regions. Orders from European customers were down slightly, while customer orders increased nicely in the Middle East and Africa. Orders in Asia Specific declined meaningfully year-over-year as we maintained our biding discipline and focused on profitable opportunities. Important wins included an expanded partnership with the major financial institution in Belgium to upgrade more than 2,400 devices, including a large number of