Diebold, Incorporated (NYSE:DBD) Q4 2019 Earnings Conference Call - Final Transcript
Feb 11, 2020 • 08:30 am ET
Good day, and welcome to the Diebold Nixdorf Hosted Fourth Quarter 2019 Earnings Call. At this time, I would like to turn the conference over to Mr. Steve Virostek. Please go ahead, sir.
Thank you, Britney, and welcome to all our listeners. This is the Diebold Fourth Quarter Earnings Call for 2019. Joining me today are Gerrard Schmid, President and Chief Executive Officer and Jeff Rutherford, our Chief Financial Officer.
For your benefit, we posted slides, which will accompany our discussion today. And our slides are available on the Investor Relations page of dieboldnixdorf.com. Later today, we'll post a replay of our webcast to this IR website.
On Slide 2 of the presentation, we're reminding all listeners that today's comments 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.
Over on Slide 3, we remind all participants that certain comments may be characterized as forward-looking statements and there are a number of factors which could cause actual results to differ materially from these statements. Additional information on these factors can be found in the Company's SEC filings.
Please keep in mind that our forward-looking information is current as of today, and subsequent events may render this information out of date.
And now, I'll pass the mic to Gerrard.
Thanks, Steve. Good morning and thank you to everyone for joining our fourth quarter earnings call. 2019 was a good year for the Company as we executed on our DN Now transformation initiatives and delivered financial results which were in-line or better than our expectations.
To set the stage a bit, I want to reflect for a moment on where we were one year ago. We were in the early stages of streamlining our operating model and simplifying our portfolio, and we have had clear goals for strengthening our balance sheet. Fast forward to today, after year one of DN, Now and we have met or exceeded on every commitment we made and are on track for future targets.
As shown on Slide 3, we reported total revenue of just over $4.4 billion, which was within our initial range and our results also included substantial currency headwinds of approximately $150 million. We delivered adjusted EBITDA of $401 million, which was within our initial outlook from February of 2019, and which represents a 25% increase over 2018 and also included a foreign exchange impact of approximately $7 million.
Most importantly, we exceeded our free cash flow target, generating $93 million versus our initial expectation of breakeven. In line with our focus, these results demonstrate meaningful improvements in profitability and cash flow. We increased our non-GAAP gross margin by 280 basis points to 25.2% with strong margin expansion in all three segments and business lines.
Our progress enabled DN to boost its adjusted EBITDA margin by 210 basis points to 9.1%. Free cash flow increased by $256 million and