NCR Corporation (NYSE:NCR) Q1 2019 Earnings Conference Call Transcript

May 07, 2019 • 04:30 pm ET

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NCR Corporation (NYSE:NCR) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, and welcome to the NCR Corporation First Quarter Fiscal Year 2019 Earnings Conference. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Michael Nelson, Vice President of Investor Relations. Please go ahead.

Executive
Michael Nelson

Good afternoon and thank you for joining our first quarter earnings call. Joining me on the call today are Mike Hayford, President and CEO, Owen Sullivan CEO, and Andre Fernandez, CFO.

Before we get started, let me remind you that our presentation and discussions will include forward-looking statements. These statements reflect our current expectations and beliefs, but they're subject to risks and uncertainties that could cause actual results to differ materially from those expectations. These risks and uncertainties are described in our earnings release and our periodic filings with the SEC, including our annual report.

On today's call, we will also be discussing certain non-GAAP financial measures. These non-GAAP measures are described and reconciled to their GAAP counterparts in the presentation materials, the press release dated May 7, 2019, and on the Investor Relations page of our website. A replay of this call will be available later today on our website, ncr.com.

With that, I would now like to turn the call over to Mike.

Executive
Michael Dale Hayford

Thanks, Michael. And thank you everyone for joining us today for our first quarter earnings call. I will begin with some of my views on the business before turning it over to Andre, who will review our financial performance, as well as discuss our outlook for 2019. Then Owen, Andre and I will take your questions.

I'll begin on slide 4, an overview of our first quarter performance. The first quarter demonstrated solid performance and we finished in line with our expectations. Second, the hard work we've put into improve execution is generating results and puts us on track to improve our growth profile. Third, we had solid performance in our banking segment where revenues increased 9% on a constant currency basis, fueled by strong ATM revenue growth of 27% on a constant currency basis.

The strong '18 revenue growth was driven by strength in North America across both large and small banks. And fourth, consistent with our strategy to shift our revenue mix, we increased total recurring revenues by 6%, which represented 49% of total revenues in the first quarter, roughly half of the increase in recurring revenues were related to M&A activities.

We define recurring revenue as revenues for services under contract for which revenue is recognized over time. Finally today we are reaffirming our full-year 2019 guidance. Andre will discuss this in greater detail during his remarks.

Moving to slide 5, and an overview of our financial performance in the quarter. Consolidated revenue was $1.54 billion, up 1% as reported and up 4% on a constant currency basis. The primary driver for the solid revenue performance was strength in our banking segment. Adjusted EBITDA was flat and was in line with our expectations. Non-GAAP EPS was $0.48, also in line