Diebold Nixdorf, Incorporated (DBD) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $77.80 million, or $ 1.04 a share in the quarter, against a net profit of $32.60 million, or $0.50 a share in the last year period. On an adjusted basis, earnings per share were at $0.32 for the quarter compared with $0.74 in the same period last year.
Revenue during the quarter surged 103.70 percent to $1,243.40 million from $610.40 million in the previous year period. Gross margin for the quarter contracted 960 basis points over the previous year period to 18.51 percent. Operating margin for the quarter stood at negative 6.25 percent as compared to a positive 4.13 percent for the previous year period.
Operating loss for the quarter was $77.70 million, compared with an operating income of $25.20 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $105.30 million compared with $67.90 million in the prior year period. At the same time, adjusted EBITDA margin contracted 266 basis points in the quarter to 8.47 percent from 11.12 percent in the last year period.
"Our fourth quarter profits were in line with our previous guidance. Additionally, I'm pleased with our strong free cash flow performance during the period, which is a testament to our collaborative teamwork during the first full quarter for our newly combined company," said Andy W. Mattes, chief executive officer, Diebold Nixdorf. "Reflecting on 2016, it was a year of tremendous strategic achievements, in which we took major steps to accelerate our transformation and reshape our business portfolio while increasing our scale, power to innovate, geographic footprint and customer reach."
For financial year 2017, Diebold Nixdorf, Incorporated forecasts revenue to be in the range of $5,000 million to $5,100 million. It projects net loss to be in the range of $55 million to $30 million. It expects diluted loss per share to be in the range of $0.70 to $0.40. It expects diluted earnings per share to be in the range of $1.40 to $1.70 on adjusted basis for the same period.
Operating cash flow declines
Diebold Nixdorf, Incorporated has generated cash of $28.40 million from operating activities during the year, down 22.62 percent or $8.30 million, when compared with the last year.
The company has spent $561.40 million cash to meet investing activities during the year as against cash outgo of $64.90 million in the last year.
Cash flow from financing activities was $881.60 million for the year, up 1,989.10 percent or $839.40 million, when compared with the last year.
Cash and cash equivalents stood at $652.70 million as on Dec. 31, 2016, up 108.13 percent or $339.10 million from $313.60 million on Dec. 31, 2015.
Working capital increases
Diebold Nixdorf, Incorporated has recorded an increase in the working capital over the last year. It stood at $795.10 million as at Dec. 31, 2016, up 15.60 percent or $107.30 million from $687.80 million on Dec. 31, 2015. Current ratio was at 1.44 as on Dec. 31, 2016, down from 1.72 on Dec. 31, 2015.
Debt increases substantially
Diebold Nixdorf, Incorporated has witnessed an increase in total debt over the last one year. It stood at $1,798.30 million as on Dec. 31, 2016, up 181.78 percent or $1,160.10 million from $638.20 million on Dec. 31, 2015. Total debt was 34.12 percent of total assets as on Dec. 31, 2016, compared with 28.37 percent on Dec. 31, 2015. Debt to equity ratio was at 1.75 as on Dec. 31, 2016, up from 1.47 as on Dec. 31, 2015.
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