“This quarter we successfully completed the sale of our Digital Banking business and subsequently paid down a significant portion of our outstanding debt and other obligations, which further streamlined our operations and strengthened our balance sheet,” said
Q3 2024 Financial Results
-
GAAP Revenue was
$711 million compared to$809 million in the prior year. -
Normalized Revenue was
$708 million compared to$794 million in the prior year. -
Net loss from continuing operations attributable to NCR Voyix was
$31 million , compared with$266 million in the prior year. -
Adjusted EBITDA was
$93 million compared to$103 million in the prior year. -
Normalized Adjusted EBITDA was
$101 million compared to$133 million in the prior year. -
Diluted EPS from continuing operations was
$(0.24) , non-GAAP diluted EPS was$0.00 . -
Software & Services Revenue was
$517 million compared to$540 million in the prior year. -
Normalized Software & Services Revenue was$516 million compared to$528 million in the prior year. -
Total Segment ARR was
$1.60 billion compared to$1.56 billion in the prior year. -
Software ARR was
$742 million compared to$730 million in the prior year.
|
In millions |
Q3 2024 QTD |
Q3 2023 QTD |
% Change |
|
Q3 2024 YTD |
Q3 2023 YTD |
% Change |
||||||
|
Retail |
|
|
|
|
|
|
|
||||||
|
Revenue |
$ |
487 |
$ |
552 |
(12 |
)% |
|
$ |
1,495 |
$ |
1,633 |
(8 |
)% |
|
Adjusted EBITDA |
$ |
108 |
$ |
123 |
(12 |
)% |
|
|
281 |
|
321 |
(12 |
)% |
|
|
|
|
|
|
|
|
|
||||||
|
Restaurants |
|
|
|
|
|
|
|
||||||
|
Revenue |
$ |
211 |
$ |
229 |
(8 |
)% |
|
$ |
614 |
$ |
663 |
(7 |
)% |
|
Adjusted EBITDA |
$ |
66 |
$ |
52 |
27 |
% |
|
|
183 |
|
147 |
24 |
% |
|
|
|
|
|
|
|
|
|
||||||
Q3 2024 and Recent Highlights
-
On
September 30, 2024 the Company announced the completion of the sale of its Digital Banking business toVeritas Capital for a purchase price of$2.45 billion in cash plus future additional contingent consideration of up to$100 million . -
Following the completion of the Digital Banking sale, the Company announced the total reduction of
$1.84 billion of its outstanding debt and other obligations using a portion of the proceeds from the sale. As a result of these transactions, the Company significantly improved its net leverage ratio at the end of Q3 2024 based on the pro forma 2024 adjusted EBITDA. -
The Company intends to utilize approximately
$100 million of the Digital Banking sale proceeds to complete repurchases of common stock under its existing share repurchase program over the course of the next 12 months. The timing and amount of any repurchases under the share repurchase program will depend upon market conditions.
Financial Outlook
The Company is maintaining its full year 2024 revenue and adjusted EBITDA guidance as follows:
|
|
|
|
|
Full Year |
|
Software & Services Revenue |
|
|
Hardware Revenue |
|
|
Total Revenue |
|
|
Adj. EBITDA (Cont. Ops.) |
|
|
Adj. EBITDA (%) |
12.6% – 13.1% |
In this release, we use certain non-GAAP measures. These non-GAAP measures include “Adjusted EBITDA,” “Adjusted EBITDA Margin,” “Non-GAAP diluted EPS,” “Net Leverage Ratio,” “Normalized Revenue,” “Normalized Adjusted EBITDA,” and “Normalized Adjusted EBITDA Margin,” and others with the words “non-GAAP” or “normalized” in their titles. These non-GAAP measures are listed, described and reconciled for historic periods to their most directly comparable GAAP measures under the heading “Non-GAAP Financial Measures” later in this release. Our Adjusted EBITDA for historic periods after giving effect to the spin-off of NCR Atleos includes certain costs historically allocated to NCR Atleos that do not meet the definition of expenses related to discontinued operations for purposes of GAAP requirements regarding the reporting of discontinued operations. Accordingly, our guidance for Adjusted EBITDA in 2024 is more comparable to our historical Normalized Adjusted EBITDA, which includes an adjustment for these estimated costs. With respect to our Adjusted EBITDA outlook for full year 2024 on an actual and pro forma basis and our pro forma outlook for our Net Leverage Ratio, our Adjusted EBITDA Margin, we do not provide a reconciliation of the GAAP measure because we are not able to predict with reasonable certainty the reconciling items that may affect the GAAP net income from continuing operations and GAAP cash flow provided by (used in) operating activities without unreasonable effort. The reconciling items are primarily the future impact of special tax items, capital structure transactions, restructuring, pension mark-to-market transactions, acquisitions or divestitures, or other events. These reconciling items are uncertain, depend on various factors and could significantly impact, either individually or in the aggregate, the GAAP measures. The Company also believes such reconciliations would imply a degree of precision that could be confusing or misleading to investors.
Third Quarter 2024 Earnings Conference Call
NCR Voyix management will host a conference call and webcast today at
More information on the Company’s third quarter earnings is available on the NCR Voyix Investor Relations section of the Company’s website at https://investor.ncrvoyix.com.
About NCR Voyix
Website: https://investor.ncrvoyix.com
Twitter: https://www.x.com/ncr_voyix/
Facebook: https://www.facebook.com/ncrcorp
Instagram: https://www.instagram.com/ncrvoyix/
LinkedIn: https://www.linkedin.com/company/ncrvoyix/
YouTube: https://www.youtube.com/@ncrvoyix
Cautionary Statements
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (the “Act”). Forward-looking statements use words such as “expect,” “target,” “anticipate,” “outlook,” “guidance,” “intend,” “plan,” “confident,” “believe,” “will,” “should,” “would,” “potential,” “positioning,” “proposed,” “planned,” “objective,” “likely,” “could,” “may,” and words of similar meaning, as well as other words or expressions referencing future events, conditions or circumstances. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Act. Statements that describe or relate to the Company’s plans, goals, intentions, strategies, or financial outlook, and statements that do not relate to historical or current fact, are examples of forward-looking statements. Examples of forward-looking statements in this release include, without limitation, statements regarding: our expectations regarding our growth strategy, our expectations regarding the transition of our hardware business to an outsourced design and manufacturing model, our expected use of proceeds from the Digital Banking sale, our expectations regarding our share repurchase program and our anticipated future performance and financial outlook. Forward-looking statements are not guarantees of future performance, and there are a number of important factors that could cause actual outcomes and results to differ materially from the results contemplated by such forward-looking statements, including those factors relating to: our ability to achieve the expected benefits of the Digital Banking sale; the impact of the Digital Banking sale, including disruption of the Company's business in connection with the provision of transition services following the sale; our ability to realize the anticipated cost savings and other benefits related to the transition of our hardware business to an outsourced design and manufacturing model; challenges with transforming and growing our business, including our ability to attract new customers, increase use of our platform by existing customers and cross-sell additional products and solutions; development and introduction of new, competitive solutions on a timely, cost-effective basis; our ability to compete effectively against new and existing competitors; our ability to maintain a consistently high level of customer service; our ability to successfully manage our profitability and cost reduction initiatives; integration of acquisitions and management of other strategic transactions; the potential strategic benefits, synergies or opportunities expected from the Spin-Off may not be realized or may take longer to realize than expected; any unforeseen tax liabilities or impacts resulting from the Spin-Off, requests, requirements or penalties imposed by any governmental authorities related to certain existing liabilities; domestic and global economic and credit conditions; downturn or consolidation in the financial services industry; difficulties and risks associated with developing and selling complex new solutions and enhancements, including those using artificial intelligence; risks and uncertainties associated with our payments-related business; disruptions in our data center hosting and public cloud facilities; any failures or delays in our efforts to modernize our information technology infrastructure; retention and attraction of key employees; defects, errors, installation difficulties or development delays; failure of third-party suppliers; a major natural disaster or catastrophic event; geopolitical and macroeconomic challenges or events or acts of terrorism; environmental exposures from historical manufacturing activities; the impact of cybersecurity incidents on our business, including the
Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those set forth in the forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made and should not be relied upon as representing our plans and expectations as of any subsequent date. The Company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Non-GAAP Financial Measures
Non-GAAP Financial Measures. While the Company reports its results in accordance with Generally Accepted Accounting Principles in
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) and Adjusted EBITDA margin. The Company determines Adjusted EBITDA for a given period based on its GAAP net income from continuing operations attributable to NCR Voyix plus interest expense, net; plus income tax expense (benefit); plus depreciation and amortization (excluding acquisition-related amortization of intangibles); plus stock-based compensation expense; plus other income (expense); plus pension mark-to-market adjustments and other special items, including amortization of acquisition-related intangibles, separation-related costs, cyber ransomware incident recovery costs (net of insurance recoveries), fraudulent ACH disbursements costs, transformation and restructuring charges (which includes integration, severance and other exit and disposal costs), acquisition-related costs, foreign currency devaluation related costs, and strategic initiative costs, among others. Separation-related costs include costs incurred as a result of the spin-off. Professional and other fees to effect the spin-off including separation management, organizational design, and legal fees have been classified within discontinued operations through
Normalized Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Normalized Adjusted EBITDA) and Normalized Revenue. The Company determines Normalized Adjusted EBITDA for a given period by further adjusting its Adjusted EBITDA for estimated costs historically allocated to NCR Atleos that do not meet the definition of expenses related to discontinued operations for purposes of GAAP requirements regarding the reporting of discontinued operations. Normalized Adjusted EBITDA and Normalized Revenue also removes revenue and for Normalized Adjusted EBITDA the costs associated with the transfer or pending transfer of NCR Atleos-related operations in all foreign countries that have not occurred by
Non-GAAP Diluted Earnings Per Share (EPS). The Company determines Non-GAAP EPS by excluding, as applicable, pension mark-to-market adjustments, pension settlements, pension curtailments and pension special termination benefits, as well as other special items, including amortization of acquisition related intangibles, stock-based compensation expense, separation-related costs, cyber ransomware incident recovery costs, fraudulent ACH disbursements costs, strategic initiative costs, foreign currency devaluation costs, costs related to the disposal of businesses, and transformation and restructuring activities, from the Company’s GAAP earnings per share. Due to the non-operational nature of these pension and other special items, the Company’s management uses these non-GAAP measures to evaluate year-over-year operating performance. The Company believes this measure is useful for investors because it provides a more complete understanding of the Company’s underlying operational performance, as well as consistency and comparability with the Company’s past reports of financial results.
Net Debt and Net Leverage Ratio. NCR Voyix management uses non-GAAP measures called “net debt” and “net leverage ratio” to assess the financial performance of the Company. We define net debt as total debt minus cash and cash equivalents. NCR Voyix’s management considers net debt to be an important measure of liquidity and an indicator of our ability to meet ongoing obligations. Net leverage ratio is calculated as net debt divided by last-twelve-months Adjusted EBITDA. NCR Voyix’s management considers net leverage ratio to be an important indicator of the Company’s indebtedness in relation to its operating performance. The Company’s definition of net debt and net leverage ratio may differ from other companies’ definitions of each measure, and each measure should not be considered a substitute for, or superior to, comparable GAAP metrics.
Non-GAAP Pro Forma Outlook. The supplemental non-GAAP pro forma financial outlook in this press release is not necessarily indicative of the operating results of the Company were the divestiture of the Digital Banking business and the application of the proceeds from the sale to pay off outstanding indebtedness, the ongoing expense reduction actions and the transition of the Company’s POS and SCO hardware businesses to an ODM model effected as of or before
Use of Certain Terms
The term “recurring revenue” includes all revenue streams from contracts where there is a predictable revenue pattern that will occur at regular intervals with a relatively high degree of certainty. This includes hardware and software maintenance revenue, cloud revenue, payment processing revenue, and certain professional services arrangements, as well as term-based software license arrangements that include customer termination rights. NCR Voyix's management considers recurring revenue, and the other metrics derived therefrom, to be an important indicator of the predictability of revenue and part of our strategic plan.
The term “annual recurring revenue” or “ARR” is recurring revenue, excluding software licenses (SWL) sold as a subscription, for the last three months times four. In addition, plus the rolling four quarters of term-based SWL arrangements that include customer termination rights.
The term “Software ARR” includes recurring software license revenue, software maintenance revenue, SaaS revenue, standalone hosted contract revenue, professional services recurring revenue and payments revenue.
The term “Software & Services Revenue” includes all software, services and payments revenue and excludes hardware revenue.
The term “platform sites” includes all sites for which we bill for use of our Commerce platform.
The term “payment sites” includes all sites which utilizes NCR Voyix’s payment processing capabilities.
|
Reconciliation of Net Income from Continuing Operations Attributable to NCR Voyix (GAAP) to Adjusted Earnings Before Interest, Depreciation, Taxes and Amortization (Adjusted EBITDA) |
|||||||||||||||
|
$ in millions |
Q3 2024
|
|
Q3 2023
|
|
Q3 2024
|
|
Q3 2023
|
||||||||
|
Net Income (Loss) from Continuing Operations Attributable to NCR Voyix (GAAP) |
$ |
(31 |
) |
|
$ |
(266 |
) |
|
$ |
(193 |
) |
|
$ |
(457 |
) |
|
Depreciation and amortization (excluding acquisition-related amortization of intangibles) |
|
53 |
|
|
|
49 |
|
|
|
153 |
|
|
|
140 |
|
|
Acquisition-related amortization of intangibles |
|
7 |
|
|
|
11 |
|
|
|
22 |
|
|
|
31 |
|
|
Interest expense |
|
40 |
|
|
|
83 |
|
|
|
120 |
|
|
|
257 |
|
|
Interest income |
|
(2 |
) |
|
|
(5 |
) |
|
|
(5 |
) |
|
|
(11 |
) |
|
Acquisition-related costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
Income tax expense (benefit) |
|
(1 |
) |
|
|
187 |
|
|
|
3 |
|
|
|
200 |
|
|
Stock-based compensation expense |
|
9 |
|
|
|
19 |
|
|
|
32 |
|
|
|
65 |
|
|
Transformation and restructuring costs |
|
16 |
|
|
|
1 |
|
|
|
90 |
|
|
|
5 |
|
|
Separation costs |
|
1 |
|
|
|
10 |
|
|
|
9 |
|
|
|
18 |
|
|
Loss (gain) on disposal of businesses |
|
— |
|
|
|
(3 |
) |
|
|
(14 |
) |
|
|
(10 |
) |
|
Foreign currency devaluation |
|
— |
|
|
|
— |
|
|
|
15 |
|
|
|
— |
|
|
Fraudulent ACH disbursements |
|
(2 |
) |
|
|
5 |
|
|
|
(4 |
) |
|
|
10 |
|
|
Cyber ransomware incident recovery costs |
|
(1 |
) |
|
|
12 |
|
|
|
(5 |
) |
|
|
23 |
|
|
Strategic initiatives |
|
12 |
|
|
|
— |
|
|
|
18 |
|
|
|
— |
|
|
Loss on debt extinguishment |
|
(8 |
) |
|
|
— |
|
|
|
(8 |
) |
|
|
— |
|
|
Adjusted EBITDA (Non-GAAP) |
$ |
93 |
|
|
$ |
103 |
|
|
$ |
233 |
|
|
$ |
272 |
|
|
Less: Divestitures(1) |
|
— |
|
|
|
(5 |
) |
|
|
— |
|
|
|
(18 |
) |
|
Less: NCR Atleos delayed country transfers |
|
2 |
|
|
|
(1 |
) |
|
|
4 |
|
|
|
(3 |
) |
|
Plus: Estimated costs historically allocated to NCR Atleos |
|
— |
|
|
|
31 |
|
|
|
— |
|
|
|
69 |
|
|
Plus: Estimated costs historically allocated to Digital Banking |
|
6 |
|
|
|
5 |
|
|
|
14 |
|
|
$ |
16 |
|
|
Normalized Adjusted EBITDA (Non-GAAP) |
$ |
101 |
|
|
$ |
133 |
|
|
$ |
251 |
|
|
$ |
336 |
|
|
(1)2023 Divestiture amounts shown in table represent the quarterly impact of the non-core payments and |
|||||||||||||||
|
Reconciliation of Revenue to Normalized Revenue |
|||||||||||||||
|
$ in millions |
Q3 2024
|
|
Q3 2023
|
|
Q3 2024
|
|
Q3 2023
|
||||||||
|
Revenue |
$ |
711 |
|
|
$ |
809 |
|
|
$ |
2,144 |
|
|
$ |
2,382 |
|
|
Less: Divestitures(1) |
|
— |
|
|
|
(12 |
) |
|
|
— |
|
|
|
(41 |
) |
|
Less: NCR Atleos delayed country transfers |
|
(3 |
) |
|
|
(3 |
) |
|
|
(4 |
) |
|
|
(9 |
) |
|
Normalized Revenue |
$ |
708 |
|
|
$ |
794 |
|
|
$ |
2,140 |
|
|
$ |
2,332 |
|
|
(1)2023 Divestiture amounts shown in table represent the quarterly impact of the non-core payments and |
|||||||||||||||
|
Reconciliation of Software & Services Revenue to |
|||||||||||||||
|
$ in millions |
Q3 2024
|
|
Q3 2023
|
|
Q3 2024
|
|
Q3 2023
|
||||||||
|
Software & Services Revenue |
$ |
517 |
|
|
$ |
540 |
|
|
|
1,534 |
|
|
|
1,585 |
|
|
Less: Divestitures(1) |
|
— |
|
|
|
(10 |
) |
|
|
— |
|
|
|
(34 |
) |
|
Less: NCR Atleos delayed country transfers |
|
(1 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
|
|
(6 |
) |
|
|
$ |
516 |
|
|
$ |
528 |
|
|
$ |
1,532 |
|
|
$ |
1,545 |
|
|
(1)2023 Divestiture amounts shown in table represent the quarterly impact of the non-core payments and |
|||||||||||||||
|
Reconciliation of Diluted Earnings Per Share from Continuing Operations (GAAP) to Non-GAAP Diluted Earnings Per Share from Continuing Operations (Non-GAAP) |
|||||||
|
|
Q3 2024
|
|
Q3 2024
|
||||
|
Diluted Earnings Per Share from Continuing Operations (GAAP)(1) |
$ |
(0.24 |
) |
|
$ |
(1.42 |
) |
|
Acquisition-related amortization of intangibles |
|
0.04 |
|
|
|
0.11 |
|
|
Stock-based compensation expense |
|
0.06 |
|
|
|
0.20 |
|
|
Transformation and restructuring costs |
|
0.09 |
|
|
|
0.46 |
|
|
Separation costs |
|
0.01 |
|
|
|
0.05 |
|
|
Loss (gain) on disposal of businesses |
|
— |
|
|
|
(0.07 |
) |
|
Foreign currency devaluation |
|
— |
|
|
|
0.08 |
|
|
Fraudulent ACH disbursements |
|
(0.01 |
) |
|
|
(0.02 |
) |
|
Cyber ransomware incident recovery costs |
|
(0.01 |
) |
|
|
(0.02 |
) |
|
Strategic initiatives |
|
0.06 |
|
|
|
0.09 |
|
|
Debt refinancing |
|
(0.04 |
) |
|
|
(0.04 |
) |
|
Diluted Earnings Per Share from Continuing Operations (Non-GAAP)(1) |
$ |
— |
|
|
$ |
(0.35 |
) |
|
(1) Non-GAAP diluted EPS is determined using the conversion of the Series A Convertible Preferred Stock into common stock in the calculation of weighted average diluted shares outstanding. GAAP EPS is determined using the most dilutive measure, either including the impact of dividends or deemed dividends on the Company’s Series A Convertible Preferred Stock in the calculation of net income or loss available to common stockholders or including the impact of the conversion of the Series A Convertible Preferred Stock into common stock in the calculation of the weighted average diluted shares outstanding. Therefore, GAAP diluted EPS and non-GAAP diluted EPS may not mathematically reconcile. |
|||||||
|
$ in millions |
Q3 2024
|
|
Q3 2024
|
|
Q3 2024
|
|
Q3 2024
|
|||||||
|
Income (loss) from continuing operations attributable to NCR Voyix common stockholders |
|
|
|
|
|
|
|
|||||||
|
Income (loss) from continuing operations (attributable to NCR Voyix) |
$ |
(31 |
) |
|
$ |
— |
|
$ |
(193 |
) |
|
$ |
(57 |
) |
|
Dividends on convertible preferred shares |
|
(4 |
) |
|
|
— |
|
|
(12 |
) |
|
|
— |
|
|
Income (loss) from continuing operations attributable to NCR Voyix common stockholders |
$ |
(35 |
) |
|
$ |
— |
|
$ |
(205 |
) |
|
$ |
(57 |
) |
|
Weighted average outstanding shares: |
|
|
|
|
|
|
|
|||||||
|
Weighted average diluted shares outstanding |
|
145.4 |
|
|
|
148.6 |
|
|
144.6 |
|
|
|
147.6 |
|
|
Weighted as-if converted preferred shares |
|
— |
|
|
|
15.9 |
|
|
— |
|
|
|
15.9 |
|
|
Total shares used in diluted earnings per share |
|
145.4 |
|
|
|
164.5 |
|
|
144.6 |
|
|
|
163.5 |
|
|
Diluted earnings per share from continuing operations |
$ |
(0.24 |
) |
|
$ |
— |
|
$ |
(1.42 |
) |
|
$ |
(0.35 |
) |
|
|
NCR VOYIX CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in millions, except per share amounts) |
Schedule A |
|
|
For the Period Ended |
||||||||||||||
|
|
Three Months |
|
Nine Months |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Revenue |
|
|
|
|
|
|
|
||||||||
|
Product |
$ |
219 |
|
|
$ |
296 |
|
|
$ |
684 |
|
|
$ |
875 |
|
|
Service |
|
492 |
|
|
|
513 |
|
|
|
1,460 |
|
|
|
1,507 |
|
|
Total Revenue |
|
711 |
|
|
|
809 |
|
|
|
2,144 |
|
|
|
2,382 |
|
|
Cost of products |
|
185 |
|
|
|
253 |
|
|
|
594 |
|
|
|
771 |
|
|
Cost of services |
|
360 |
|
|
|
361 |
|
|
|
1,120 |
|
|
|
1,053 |
|
|
Total gross margin |
|
166 |
|
|
|
195 |
|
|
|
430 |
|
|
|
558 |
|
|
% of Revenue |
|
23.3 |
% |
|
|
24.1 |
% |
|
|
20.1 |
% |
|
|
23.4 |
% |
|
Selling, general and administrative expenses |
|
113 |
|
|
|
142 |
|
|
|
340 |
|
|
|
427 |
|
|
Research and development expenses |
|
38 |
|
|
|
29 |
|
|
|
129 |
|
|
|
98 |
|
|
Income (loss) from operations |
|
15 |
|
|
|
24 |
|
|
|
(39 |
) |
|
|
33 |
|
|
% of Revenue |
|
2.1 |
% |
|
|
3.0 |
% |
|
|
(1.8 |
)% |
|
|
1.4 |
% |
|
Interest expense |
|
(40 |
) |
|
|
(83 |
) |
|
|
(120 |
) |
|
|
(257 |
) |
|
Other income (expense), net |
|
(15 |
) |
|
|
(20 |
) |
|
|
(40 |
) |
|
|
(33 |
) |
|
Total interest and other expense, net |
|
(47 |
) |
|
|
(103 |
) |
|
|
(152 |
) |
|
|
(290 |
) |
|
Income (loss) from continuing operations before income taxes |
|
(32 |
) |
|
|
(79 |
) |
|
|
(191 |
) |
|
|
(257 |
) |
|
% of Revenue |
|
(4.5 |
)% |
|
|
(9.8 |
)% |
|
|
(8.9 |
)% |
|
|
(10.8 |
)% |
|
Income tax expense (benefit) |
|
(1 |
) |
|
|
187 |
|
|
|
3 |
|
|
|
200 |
|
|
Income (loss) from continuing operations |
|
(31 |
) |
|
|
(266 |
) |
|
|
(194 |
) |
|
|
(457 |
) |
|
Income (loss) from discontinued operations, net of tax |
|
1,113 |
|
|
|
138 |
|
|
|
1,162 |
|
|
|
353 |
|
|
Net income (loss) |
|
1,082 |
|
|
|
(128 |
) |
|
|
968 |
|
|
|
(104 |
) |
|
Net income (loss) attributable to noncontrolling interests |
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
Net income (loss) attributable to noncontrolling interests of discontinued operations |
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
Net income (loss) attributable to NCR Voyix |
$ |
1,082 |
|
|
$ |
(129 |
) |
|
$ |
969 |
|
|
$ |
(105 |
) |
|
Amounts attributable to NCR Voyix common stockholders: |
|
|
|
|
|
|
|
||||||||
|
Income (loss) from continuing operations |
$ |
(31 |
) |
|
$ |
(266 |
) |
|
$ |
(193 |
) |
|
$ |
(457 |
) |
|
Dividends on convertible preferred stock |
|
(4 |
) |
|
|
(4 |
) |
|
|
(12 |
) |
|
|
(12 |
) |
|
Income (loss) from continuing operations attributable to NCR Voyix common stockholders |
|
(35 |
) |
|
|
(270 |
) |
|
|
(205 |
) |
|
|
(469 |
) |
|
Income (loss) from discontinued operations, net of tax |
|
1,113 |
|
|
|
137 |
|
|
|
1,162 |
|
|
|
352 |
|
|
Net income (loss) attributable to NCR Voyix common stockholders |
$ |
1,078 |
|
|
$ |
(133 |
) |
|
$ |
957 |
|
|
$ |
(117 |
) |
|
Income (loss) per share attributable to NCR Voyix common stockholders: |
|
|
|
|
|
|
|
||||||||
|
Income (loss) per common share from continuing operations |
|
|
|
|
|
|
|
||||||||
|
Basic |
$ |
(0.24 |
) |
|
$ |
(1.92 |
) |
|
$ |
(1.42 |
) |
|
$ |
(3.34 |
) |
|
Diluted (1) |
$ |
(0.24 |
) |
|
$ |
(1.92 |
) |
|
$ |
(1.42 |
) |
|
$ |
(3.34 |
) |
|
Net income (loss) per common share |
|
|
|
|
|
|
|
||||||||
|
Basic |
$ |
7.41 |
|
|
$ |
(0.94 |
) |
|
$ |
6.62 |
|
|
$ |
(0.83 |
) |
|
Diluted (1) |
$ |
7.41 |
|
|
$ |
(0.94 |
) |
|
$ |
6.62 |
|
|
$ |
(0.83 |
) |
|
Weighted average common shares outstanding |
|
|
|
|
|
|
|
||||||||
|
Basic |
|
145.4 |
|
|
|
140.9 |
|
|
|
144.6 |
|
|
|
140.3 |
|
|
Diluted (1) |
|
145.4 |
|
|
|
140.9 |
|
|
|
144.6 |
|
|
|
140.3 |
|
|
(1) Diluted EPS is determined using the most dilutive measure, either including the impact of the dividends and deemed dividends on the Company’s Series A Convertible Preferred Shares in the calculation of net income or loss per common share from continuing operations and net income or loss per common share or including the impact of the conversion of such preferred stock into common stock in the calculation of the weighted average diluted shares outstanding. |
|||||||||||||||
|
|
NCR VOYIX CORPORATION REVENUE AND ADJUSTED EBITDA SUMMARY (Unaudited) (in millions) |
Schedule B |
|
|
For the Period Ended |
||||||||||||||||||||
|
|
Three Months |
|
Nine Months |
||||||||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
%
|
|
|
2024 |
|
|
|
2023 |
|
|
%
|
||
|
Revenue by segment |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Retail |
$ |
487 |
|
|
$ |
552 |
|
|
(12 |
)% |
|
$ |
1,495 |
|
|
$ |
1,633 |
|
|
(8 |
)% |
|
Restaurants |
|
211 |
|
|
|
229 |
|
|
(8 |
)% |
|
|
614 |
|
|
|
663 |
|
|
(7 |
)% |
|
Corporate and Other(1) |
|
13 |
|
|
|
28 |
|
|
(54 |
)% |
|
|
35 |
|
|
|
86 |
|
|
(59 |
)% |
|
Total revenue |
$ |
711 |
|
|
$ |
809 |
|
|
(12 |
)% |
|
$ |
2,144 |
|
|
$ |
2,382 |
|
|
(10 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Adjusted EBITDA by segment |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Retail |
$ |
108 |
|
|
$ |
123 |
|
|
(12 |
)% |
|
$ |
281 |
|
|
$ |
321 |
|
|
(12 |
)% |
|
Retail Adjusted EBITDA margin % |
|
22.2 |
% |
|
|
22.3 |
% |
|
|
|
|
18.8 |
% |
|
|
19.7 |
% |
|
|
||
|
Restaurants |
|
66 |
|
|
|
52 |
|
|
27 |
% |
|
|
183 |
|
|
|
147 |
|
|
24 |
% |
|
Restaurants Adjusted EBITDA margin % |
|
31.3 |
% |
|
|
22.7 |
% |
|
|
|
|
29.8 |
% |
|
|
22.2 |
% |
|
|
||
|
Segment Adjusted EBITDA |
$ |
174 |
|
|
$ |
175 |
|
|
(1 |
)% |
|
$ |
464 |
|
|
$ |
468 |
|
|
(1 |
)% |
|
Segment Adjusted EBITDA margin % |
|
24.9 |
% |
|
|
22.4 |
% |
|
|
|
|
22.0 |
% |
|
|
20.4 |
% |
|
|
||
|
Corporate and Other(1) |
|
(81 |
) |
|
|
(72 |
) |
|
13 |
% |
|
|
(231 |
) |
|
|
(196 |
) |
|
18 |
% |
|
Total Adjusted EBITDA |
$ |
93 |
|
|
$ |
103 |
|
|
(10 |
)% |
|
$ |
233 |
|
|
$ |
272 |
|
|
(14 |
)% |
|
Total Adjusted EBITDA margin % |
|
13.1 |
% |
|
|
12.7 |
% |
|
|
|
|
10.9 |
% |
|
|
11.4 |
% |
|
|
||
|
(1) Corporate and Other includes income and expenses related to corporate functions that are not specifically attributable to any of our two individual reportable segments along with certain non-strategic businesses that are considered immaterial operating segment(s) and certain countries which are expected to transfer to NCR Atleos during the remainder of 2024, as well as commercial agreements with NCR Atleos. |
|||||||||||||||||||||
|
|
NCR VOYIX CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited) (in millions, except per share amounts) |
Schedule C |
|
In millions, except per share amounts |
|
|
|
||||
|
Assets |
|
|
|
||||
|
Current assets |
|
|
|
||||
|
Cash and cash equivalents |
$ |
795 |
|
|
$ |
259 |
|
|
Accounts receivable, net of allowances of |
|
623 |
|
|
|
414 |
|
|
Inventories |
|
208 |
|
|
|
250 |
|
|
Restricted cash |
|
26 |
|
|
|
21 |
|
|
Prepaid and other current assets |
|
173 |
|
|
|
178 |
|
|
Current assets of discontinued operations |
|
— |
|
|
|
84 |
|
|
Total current assets |
|
1,825 |
|
|
|
1,206 |
|
|
Property, plant and equipment, net |
|
193 |
|
|
|
207 |
|
|
|
|
1,521 |
|
|
|
1,519 |
|
|
Intangibles, net |
|
102 |
|
|
|
123 |
|
|
Operating lease assets |
|
236 |
|
|
|
231 |
|
|
Prepaid pension cost |
|
44 |
|
|
|
43 |
|
|
Deferred income taxes |
|
225 |
|
|
|
237 |
|
|
Other assets |
|
528 |
|
|
|
532 |
|
|
Noncurrent assets of discontinued operations |
|
— |
|
|
$ |
892 |
|
|
Total assets |
$ |
4,674 |
|
|
$ |
4,990 |
|
|
Liabilities and stockholders’ equity (deficit) |
|
|
|
||||
|
Current liabilities |
|
|
|
||||
|
Short-term borrowings |
$ |
— |
|
|
$ |
15 |
|
|
Accounts payable |
|
400 |
|
|
|
440 |
|
|
Payroll and benefits liabilities |
|
119 |
|
|
|
126 |
|
|
Contract liabilities |
|
186 |
|
|
|
157 |
|
|
Settlement liabilities |
|
40 |
|
|
|
39 |
|
|
Other current liabilities |
|
782 |
|
|
|
421 |
|
|
Current liabilities of discontinued operations |
|
— |
|
|
|
135 |
|
|
Total current liabilities |
|
1,527 |
|
|
|
1,333 |
|
|
Long-term debt |
|
1,098 |
|
|
|
2,563 |
|
|
Pension and indemnity plan liabilities |
|
165 |
|
|
|
160 |
|
|
Postretirement and postemployment benefits liabilities |
|
38 |
|
|
|
43 |
|
|
Income tax accruals |
|
59 |
|
|
|
64 |
|
|
Operating lease liabilities |
|
253 |
|
|
|
251 |
|
|
Other liabilities |
|
247 |
|
|
|
253 |
|
|
Noncurrent liabilities of discontinued operations |
|
— |
|
|
|
22 |
|
|
Total liabilities |
|
3,387 |
|
|
|
4,689 |
|
|
Commitments and Contingencies (Note 10) |
|
|
|
||||
|
Series A convertible preferred stock: par value |
|
276 |
|
|
|
276 |
|
|
Stockholders’ equity (deficit) |
|
|
|
||||
|
NCR Voyix stockholders’ equity (deficit) |
|
|
|
||||
|
Preferred stock: par value |
|
— |
|
|
|
— |
|
|
Common stock: par value |
|
1 |
|
|
|
1 |
|
|
Paid-in capital |
|
911 |
|
|
|
874 |
|
|
Retained earnings (deficit) |
|
561 |
|
|
|
(421 |
) |
|
Accumulated other comprehensive loss |
|
(460 |
) |
|
|
(429 |
) |
|
Total NCR Voyix stockholders’ equity (deficit) |
|
1,013 |
|
|
|
25 |
|
|
Noncontrolling interests in subsidiaries |
|
(2 |
) |
|
|
— |
|
|
Total stockholders’ equity (deficit) |
|
1,011 |
|
|
|
25 |
|
|
Total liabilities and stockholders’ equity (deficit) |
$ |
4,674 |
|
|
$ |
4,990 |
|
|
|
NCR VOYIX CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in millions) |
Schedule D |
|
|
|
||||||
|
In millions |
Nine months ended |
||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
Operating activities |
|
|
|
||||
|
Net income (loss) |
$ |
968 |
|
|
$ |
(104 |
) |
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|
|
|
||||
|
Loss (gain) on debt extinguishment |
|
(8 |
) |
|
|
— |
|
|
Depreciation and amortization |
|
237 |
|
|
|
461 |
|
|
Stock-based compensation expense |
|
39 |
|
|
|
98 |
|
|
Deferred income taxes |
|
11 |
|
|
|
201 |
|
|
Gain on terminated interest rate derivative agreements |
|
— |
|
|
|
(103 |
) |
|
Impairment of other assets |
|
5 |
|
|
|
7 |
|
|
Loss (gain) on disposal of property, plant and equipment and other assets |
|
— |
|
|
|
(2 |
) |
|
Loss (gain) on divestiture |
|
(1,560 |
) |
|
|
(10 |
) |
|
Changes in assets and liabilities: |
|
|
|
||||
|
Receivables |
|
49 |
|
|
|
132 |
|
|
Inventories |
|
37 |
|
|
|
(12 |
) |
|
Current payables and accrued expenses |
|
(41 |
) |
|
|
17 |
|
|
Contract liabilities |
|
38 |
|
|
|
(6 |
) |
|
Employee benefit plans |
|
(8 |
) |
|
|
(10 |
) |
|
Other assets and liabilities |
|
271 |
|
|
|
58 |
|
|
Net cash provided by (used in) operating activities |
$ |
38 |
|
|
$ |
727 |
|
|
Investing activities |
|
|
|
||||
|
Expenditures for property, plant and equipment |
$ |
(23 |
) |
|
$ |
(112 |
) |
|
Proceeds from sale of property, plant and equipment and other assets |
|
— |
|
|
|
8 |
|
|
Additions to capitalized software |
|
(155 |
) |
|
|
(194 |
) |
|
Business acquisitions, net of cash acquired |
|
— |
|
|
|
(7 |
) |
|
Proceeds from divestiture, net |
|
2,458 |
|
|
|
10 |
|
|
Proceeds from disposition of corporate-owned life insurance policies |
|
30 |
|
|
|
— |
|
|
Termination of trade receivable facility |
|
(300 |
) |
|
|
— |
|
|
Collections on purchased trade receivables |
|
7 |
|
|
|
— |
|
|
Purchases of short-term investments |
|
— |
|
|
|
(10 |
) |
|
Net cash provided by (used in) investing activities |
$ |
2,017 |
|
|
$ |
(305 |
) |
|
Financing activities |
|
|
|
||||
|
Payments on term credit facilities |
|
(200 |
) |
|
|
(77 |
) |
|
Payments on revolving credit facilities |
|
(693 |
) |
|
|
(2,044 |
) |
|
Payments of senior unsecured notes |
|
(1,177 |
) |
|
|
— |
|
|
Borrowings on term credit facilities |
|
— |
|
|
|
726 |
|
|
Borrowings on revolving credit facilities |
|
595 |
|
|
|
1,959 |
|
|
Proceeds from senior unsecured and other notes |
|
— |
|
|
|
1,333 |
|
|
Payments on other financing arrangements |
|
— |
|
|
|
(2 |
) |
|
Cash dividend paid for Series A preferred shares dividends |
|
(12 |
) |
|
|
(11 |
) |
|
Proceeds from employee stock plans |
|
10 |
|
|
|
23 |
|
|
Tax withholding payments on behalf of employees |
|
(12 |
) |
|
|
(16 |
) |
|
Principal payments for finance lease obligations |
|
(7 |
) |
|
|
(12 |
) |
|
Net cash provided by (used in) financing activities |
$ |
(1,496 |
) |
|
$ |
1,879 |
|
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
(19 |
) |
|
|
(28 |
) |
|
Increase (decrease) in cash, cash equivalents, and restricted cash |
$ |
540 |
|
|
$ |
2,273 |
|
|
Cash, cash equivalents and restricted cash at beginning of period |
|
285 |
|
|
|
740 |
|
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
825 |
|
|
$ |
3,013 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107955895/en/
News Media Contact
media.relations@ncrvoyix.com
Investor Contact
alan.katz@ncrvoyix.com
Source:
