NCR Corporation (NYSE:NCR) Q3 2019 Earnings Conference Call Transcript

Nov 07, 2019 • 04:30 pm ET

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NCR Corporation (NYSE:NCR) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, and welcome to the NCR Corporation Third Quarter Fiscal Year 2019 Earnings Call. [Operator Instructions]

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 third quarter earnings call. Joining me on the call today are Mike Hayford President and CEO; Owen Sullivan COO; 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 November 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 Hayford

Thanks Michael, and thank you everyone for joining us today for our third quarter earnings call. I will begin with an overview of our third quarter performance and an update on our progress executing against our strategic initiatives before turning it over to Andre who will review our financial performance as well as discuss our updated outlook for 2019. Then Owen Andre and I will take your questions. I'll begin on slide four with the highlights from the third quarter. Our third quarter results marked the continuation of several key trends including improved execution and a strong top line growth. During the quarter revenues increased 17% on a constant currency basis. Growth was once again led by our banking segment with 21% constant currency growth and ATM revenues up 60% constant currency but it also included diversified sales growth as each of our business segments generated double-digit gains. We are building on the momentum in our core business through the further advancement of our strategic growth platform. While we remain in the early stage of our rollout customer response thus far has been positive. I'll provide an update on our strategic growth platforms in a few minutes as well as our broader payments integration which also remains on track. We took multiple strategic steps this past quarter to simplify our capital structure and improve our liquidity and financial flexibility including refinancing our debt to extend our debt maturities and retiring 57% of our preferred stock. This enhanced financial position is critical as we continue to invest in organic and inorganic opportunities to accelerate our growth and advance our recurring revenue strategy.

Finally we are again raising our full year 2019 revenue outlook and reaffirming our earnings and cash flow guidance. Andre will discuss this in greater