Attached files
| file | filename |
|---|---|
| EX-2.1 - EX-2.1 - DIEBOLD NIXDORF, Inc | ex-21madridassetpurchaseag.htm |
| 8-K - 8-K - DIEBOLD NIXDORF, Inc | madridclosing8k.htm |
Exhibit 99.1
On February 1, 2016, Diebold, Incorporated (“Diebold”) and certain of its affiliates completed its previously announced divestiture of its electronic security business located in the United States and Canada to Securitas Electronic Security, Inc., a wholly owned subsidiary of Securitas AB, and certain of its affiliates, pursuant to the Asset Purchase Agreement (the “Purchase Agreement”) among the parties dated October 25, 2015.
Diebold received cash consideration of $315 million upon the closing of the transaction. The Purchase Agreement also provides for up to a $35 million payment to Diebold contingent and payable over a twelve-month period beginning at closing based on the successful transition of certain customer relationships. Diebold has also agreed to provide certain transition services to Securitas Electronic Security, Inc. after the closing, including providing a $6 million credit for such services.
The closing purchase price is subject to a customary working capital adjustment. The purchase agreement provides for customary representations, warranties, covenants and agreements, including, among others, that each party will use commercially reasonable efforts to complete the transaction expeditiously.
The unaudited pro forma condensed consolidated balance sheet as of September 30, 2015 presents the pro forma effects of the transaction assuming the disposition occurred on September 30, 2015. The unaudited condensed consolidated statements of operations for the nine months ended September 30, 2015 and for the years ended December 31, 2014, 2013 and 2012 present the pro forma effects of the transaction assuming the disposition occurred on January 1, 2012. The following unaudited pro forma condensed combined balance sheet adjustments reflect the elimination of net assets and liabilities and the following unaudited pro forma condensed combined statements of operations adjustments reflect the elimination of sales, costs and expenses related to the electronic security business. The pro forma adjustments related to the disposition are preliminary and are based upon available information and certain assumptions which management believes are reasonable under the circumstances. For the unaudited pro forma condensed combined statements of operations for the year ended December 31, 2014, 2013 and 2012 and the nine months ended September 30, 2015, respectively, a statutory tax rate of 39.0 percent was applied as the disposition is predominately in North America.
The preparation of this unaudited condensed consolidated pro forma financial information requires management to make estimates and assumptions based upon the information known at that time. Actual results could differ from these estimates.
This unaudited pro forma condensed consolidated financial information should be read in conjunction with the historical financial information and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 and the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2015.
DIEBOLD, INCORPORATED AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited
(dollars in millions)
September 30, 2015 | |||||||||||
As Reported | Adjustment | As Adjusted | |||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 198.5 | $ | 3.9 | $ | 202.4 | |||||
Short-term investments | 99.2 | — | 99.2 | ||||||||
Trade receivables, net | 565.6 | (78.9 | ) | 486.7 | |||||||
Inventories | 420.6 | (38.8 | ) | 381.8 | |||||||
Deferred income taxes | 108.2 | — | 108.2 | ||||||||
Prepaid expenses | 24.1 | (0.6 | ) | 23.5 | |||||||
Prepaid income taxes | 42.2 | — | 42.2 | ||||||||
Current assets held for sale | — | 156.4 | 156.4 | ||||||||
Other current assets | 149.8 | (4.8 | ) | 145.0 | |||||||
Total current assets | 1,608.2 | 37.2 | 1,645.4 | ||||||||
Securities and other investments | 82.2 | — | 82.2 | ||||||||
Property, plant and equipment, net | 177.0 | (3.3 | ) | 173.7 | |||||||
Goodwill | 197.4 | (33.9 | ) | 163.5 | |||||||
Deferred income taxes | 85.4 | — | 85.4 | ||||||||
Finance lease receivables | 44.6 | — | 44.6 | ||||||||
Other assets | 80.3 | — | 80.3 | ||||||||
Total assets | $ | 2,275.1 | $ | — | $ | 2,275.1 | |||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities | |||||||||||
Notes payable | $ | 80.9 | $ | — | $ | 80.9 | |||||
Accounts payable | 283.9 | (26.2 | ) | 257.7 | |||||||
Deferred revenue | 231.7 | (20.5 | ) | 211.2 | |||||||
Payroll and other benefits liabilities | 81.0 | (5.4 | ) | 75.6 | |||||||
Current liabilities held for sale | — | 57.9 | 57.9 | ||||||||
Other current liabilities | 289.0 | (5.7 | ) | 283.3 | |||||||
Total current liabilities | 966.5 | 0.1 | 966.6 | ||||||||
Long-term debt | 618.3 | — | 618.3 | ||||||||
Pensions and other benefits | 198.2 | — | 198.2 | ||||||||
Post-retirement and other benefits | 20.9 | — | 20.9 | ||||||||
Deferred income taxes | 14.9 | — | 14.9 | ||||||||
Other long-term liabilities | 29.8 | (0.1 | ) | 29.7 | |||||||
Commitments and contingencies | — | — | — | ||||||||
Equity | |||||||||||
Diebold, Incorporated shareholders' equity | |||||||||||
Preferred shares, no par value, 1,000,000 authorized shares, none issued | — | — | — | ||||||||
Common shares, $1.25 par value, 125,000,000 authorized shares, 79,696,694 and 79,238,759 issued shares, 65,001,602 and 64,632,400 outstanding shares, respectively | 99.6 | — | 99.6 | ||||||||
Additional capital | 431.8 | — | 431.8 | ||||||||
Retained earnings | 746.9 | — | 746.9 | ||||||||
Treasury shares, at cost (14,695,092 and 14,606,359 shares, respectively) | (560.2 | ) | — | (560.2 | ) | ||||||
Accumulated other comprehensive loss | (316.7 | ) | — | (316.7 | ) | ||||||
Total Diebold, Incorporated shareholders' equity | 401.4 | — | 401.4 | ||||||||
Noncontrolling interests | 25.1 | — | 25.1 | ||||||||
Total equity | 426.5 | — | 426.5 | ||||||||
Total liabilities and equity | $ | 2,275.1 | $ | — | $ | 2,275.1 | |||||
DIEBOLD, INCORPORATED AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(in millions, except per share amounts)
Nine months ended September 30, 2015 | |||||||||||
As Reported | Adjustment | As Adjusted | |||||||||
Net sales | |||||||||||
Services | $ | 1,208.5 | $ | (167.6 | ) | $ | 1,040.9 | ||||
Products | 861.3 | (93.3 | ) | 768.0 | |||||||
2,069.8 | (260.9 | ) | 1,808.9 | ||||||||
Cost of sales | |||||||||||
Services | 836.2 | (136.8 | ) | 699.4 | |||||||
Products | 703.5 | (74.3 | ) | 629.2 | |||||||
1,539.7 | (211.1 | ) | 1,328.6 | ||||||||
Gross profit | 530.1 | (49.8 | ) | 480.3 | |||||||
Selling and administrative expense | 392.5 | (29.3 | ) | 363.2 | |||||||
Research, development and engineering expense | 66.2 | — | 66.2 | ||||||||
Impairment of assets | 18.9 | — | 18.9 | ||||||||
Gain on sale of assets, net | (1.4 | ) | — | (1.4 | ) | ||||||
476.2 | (29.3 | ) | 446.9 | ||||||||
Operating profit | 53.9 | (20.5 | ) | 33.4 | |||||||
Other income (expense) | |||||||||||
Investment income | 20.6 | — | 20.6 | ||||||||
Interest expense | (24.1 | ) | — | (24.1 | ) | ||||||
Foreign exchange loss, net | (9.2 | ) | — | (9.2 | ) | ||||||
Miscellaneous, net | (1.7 | ) | — | (1.7 | ) | ||||||
Income from continuing operations before taxes | 39.5 | (20.5 | ) | 19.0 | |||||||
Income tax benefit | (1.7 | ) | (8.0 | ) | (9.7 | ) | |||||
Income from continuing operations | 41.2 | (12.5 | ) | 28.7 | |||||||
Income from discontinued operations, net of tax | — | 12.5 | 12.5 | ||||||||
Net income | 41.2 | — | 41.2 | ||||||||
Net income attributable to noncontrolling interests | 0.1 | — | 0.1 | ||||||||
Net income attributable to Diebold, Incorporated | $ | 41.1 | $ | — | $ | 41.1 | |||||
Basic weighted-average shares outstanding | 64.9 | 64.9 | 64.9 | ||||||||
Diluted weighted-average shares outstanding | 65.5 | 65.5 | 65.5 | ||||||||
Basic earnings (loss) per share | |||||||||||
Income from continuing operations, net of tax | $ | 0.63 | $ | (0.19 | ) | $ | 0.44 | ||||
Income from discontinued operations, net of tax | — | 0.19 | 0.19 | ||||||||
Net income attributable to Diebold, Incorporated | $ | 0.63 | $ | — | $ | 0.63 | |||||
Diluted earnings (loss) per share | |||||||||||
Income from continuing operations, net of tax | $ | 0.63 | $ | (0.19 | ) | $ | 0.44 | ||||
Income from discontinued operations, net of tax | — | 0.19 | 0.19 | ||||||||
Net income attributable to Diebold, Incorporated | $ | 0.63 | $ | — | $ | 0.63 | |||||
Common dividends declared and paid per share | $ | 0.8625 | $ | — | $ | 0.8625 | |||||
DIEBOLD, INCORPORATED AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(in millions, except per share amounts)
Year ended December 31, 2014 | |||||||||||
As Reported | Adjustment | As Adjusted | |||||||||
Net sales | |||||||||||
Services | $ | 1,637.6 | $ | (204.8 | ) | $ | 1,432.8 | ||||
Products | 1,413.4 | (111.4 | ) | 1,302.0 | |||||||
3,051.0 | (316.2 | ) | 2,734.8 | ||||||||
Cost of sales | |||||||||||
Services | 1,147.4 | (172.6 | ) | 974.8 | |||||||
Products | 1,124.3 | (90.5 | ) | 1,033.8 | |||||||
2,271.7 | (263.1 | ) | 2,008.6 | ||||||||
Gross profit | 779.3 | (53.1 | ) | 726.2 | |||||||
Selling and administrative expense | 515.6 | (37.2 | ) | 478.4 | |||||||
Research, development and engineering expense | 93.6 | — | 93.6 | ||||||||
Impairment of assets | 2.1 | — | 2.1 | ||||||||
Gain on sale of assets, net | (12.9 | ) | — | (12.9 | ) | ||||||
598.4 | (37.2 | ) | 561.2 | ||||||||
Operating profit | 180.9 | (15.9 | ) | 165.0 | |||||||
Other income (expense) | |||||||||||
Investment income | 34.5 | — | 34.5 | ||||||||
Interest expense | (31.4 | ) | — | (31.4 | ) | ||||||
Foreign exchange loss, net | (11.8 | ) | — | (11.8 | ) | ||||||
Miscellaneous, net | (1.6 | ) | — | (1.6 | ) | ||||||
Income from continuing operations before taxes | 170.6 | (15.9 | ) | 154.7 | |||||||
Income tax expense | 53.6 | (6.2 | ) | 47.4 | |||||||
Income from continuing operations | 117.0 | (9.7 | ) | 107.3 | |||||||
Income from discontinued operations, net of tax | — | 9.7 | 9.7 | ||||||||
Net income | 117.0 | — | 117.0 | ||||||||
Net income attributable to noncontrolling interests | 2.6 | — | 2.6 | ||||||||
Net income attributable to Diebold, Incorporated | $ | 114.4 | $ | — | $ | 114.4 | |||||
Basic weighted-average shares outstanding | 64.5 | 64.5 | 64.5 | ||||||||
Diluted weighted-average shares outstanding | 65.2 | 65.2 | 65.2 | ||||||||
Basic earnings (loss) per share | |||||||||||
Income from continuing operations, net of tax | $ | 1.77 | $ | (0.15 | ) | $ | 1.62 | ||||
Income from discontinued operations, net of tax | — | 0.15 | 0.15 | ||||||||
Net income attributable to Diebold, Incorporated | $ | 1.77 | $ | — | $ | 1.77 | |||||
Diluted earnings (loss) per share | |||||||||||
Income from continuing operations, net of tax | $ | 1.76 | $ | (0.15 | ) | $ | 1.61 | ||||
Income from discontinued operations, net of tax | — | 0.15 | 0.15 | ||||||||
Net income attributable to Diebold, Incorporated | $ | 1.76 | $ | — | $ | 1.76 | |||||
Common dividends declared and paid per share | $ | 1.15 | $ | — | $ | 1.15 | |||||
DIEBOLD, INCORPORATED AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(in millions, except per share amounts)
Year ended December 31, 2013 | |||||||||||
As Reported | Adjustment | As Adjusted | |||||||||
Net sales | |||||||||||
Services | $ | 1,637.1 | $ | (216.3 | ) | $ | 1,420.8 | ||||
Products | 1,220.4 | (58.6 | ) | 1,161.8 | |||||||
2,857.5 | (274.9 | ) | 2,582.6 | ||||||||
Cost of sales | |||||||||||
Services | 1,222.7 | (174.5 | ) | 1,048.2 | |||||||
Products | 994.4 | (46.1 | ) | 948.3 | |||||||
2,217.1 | (220.6 | ) | 1,996.5 | ||||||||
Gross profit | 640.4 | (54.3 | ) | 586.1 | |||||||
Selling and administrative expense | 596.7 | (32.3 | ) | 564.4 | |||||||
Research, development and engineering expense | 92.3 | — | 92.3 | ||||||||
Impairment of assets | 72.0 | — | 72.0 | ||||||||
Gain on sale of assets, net | (2.4 | ) | — | (2.4 | ) | ||||||
758.6 | (32.3 | ) | 726.3 | ||||||||
Operating loss | (118.2 | ) | (22.0 | ) | (140.2 | ) | |||||
Other income (expense) | |||||||||||
Investment income | 27.6 | — | 27.6 | ||||||||
Interest expense | (29.2 | ) | — | (29.2 | ) | ||||||
Foreign exchange gain, net | 0.2 | — | 0.2 | ||||||||
Miscellaneous, net | (0.2 | ) | — | (0.2 | ) | ||||||
Loss from continuing operations before taxes | (119.8 | ) | (22.0 | ) | (141.8 | ) | |||||
Income tax expense | 56.7 | (8.6 | ) | 48.1 | |||||||
Loss from continuing operations | (176.5 | ) | (13.4 | ) | (189.9 | ) | |||||
Income from discontinued operations, net of tax | — | 13.4 | 13.4 | ||||||||
Net loss | (176.5 | ) | — | (176.5 | ) | ||||||
Net income attributable to noncontrolling interests | 5.1 | — | 5.1 | ||||||||
Net loss attributable to Diebold, Incorporated | $ | (181.6 | ) | $ | — | $ | (181.6 | ) | |||
Basic weighted-average shares outstanding | 63.7 | 63.7 | 63.7 | ||||||||
Diluted weighted-average shares outstanding | 63.7 | 63.7 | 63.7 | ||||||||
Basic (loss) earnings per share | |||||||||||
Loss from continuing operations, net of tax | $ | (2.85 | ) | $ | (0.21 | ) | $ | (3.06 | ) | ||
Income from discontinued operations, net of tax | — | 0.21 | 0.21 | ||||||||
Net loss attributable to Diebold, Incorporated | $ | (2.85 | ) | $ | — | $ | (2.85 | ) | |||
Diluted (loss) earnings per share | |||||||||||
Loss from continuing operations, net of tax | $ | (2.85 | ) | $ | (0.21 | ) | $ | (3.06 | ) | ||
Income from discontinued operations, net of tax | — | 0.21 | 0.21 | ||||||||
Net loss attributable to Diebold, Incorporated | $ | (2.85 | ) | $ | — | $ | (2.85 | ) | |||
Common dividends declared and paid per share | $ | 1.15 | $ | — | $ | 1.15 | |||||
DIEBOLD, INCORPORATED AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(in millions, except per share amounts)
Year ended December 31, 2012 | |||||||||||
As Reported | Adjustment | As Adjusted | |||||||||
Net sales | |||||||||||
Services | $ | 1,626.5 | $ | (206.2 | ) | $ | 1,420.3 | ||||
Products | 1,365.2 | (61.2 | ) | 1,304.0 | |||||||
2,991.7 | (267.4 | ) | 2,724.3 | ||||||||
Cost of sales | |||||||||||
Services | 1,215.7 | (171.9 | ) | 1,043.8 | |||||||
Products | 1,046.4 | (46.0 | ) | 1,000.4 | |||||||
2,262.1 | (217.9 | ) | 2,044.2 | ||||||||
Gross profit | 729.6 | (49.5 | ) | 680.1 | |||||||
Selling and administrative expense | 527.7 | (26.5 | ) | 501.2 | |||||||
Research, development and engineering expense | 85.9 | — | 85.9 | ||||||||
Impairment of assets | 15.8 | — | 15.8 | ||||||||
Gain on sale of assets, net | (1.2 | ) | — | (1.2 | ) | ||||||
628.2 | (26.5 | ) | 601.7 | ||||||||
Operating profit | 101.4 | (23.0 | ) | 78.4 | |||||||
Other income (expense) | |||||||||||
Investment income | 37.6 | — | 37.6 | ||||||||
Interest expense | (30.3 | ) | — | (30.3 | ) | ||||||
Foreign exchange gain, net | 2.7 | — | 2.7 | ||||||||
Miscellaneous, net | (0.5 | ) | — | (0.5 | ) | ||||||
Income from continuing operations before taxes | 110.9 | (23.0 | ) | 87.9 | |||||||
Income tax expense | 28.2 | (9.0 | ) | 19.2 | |||||||
Income from continuing operations | 82.7 | (14.0 | ) | 68.7 | |||||||
Income (loss) from discontinued operations, net of tax | (3.1 | ) | 14.0 | 10.9 | |||||||
Net income | 79.6 | — | 79.6 | ||||||||
Net income attributable to noncontrolling interests | 6.0 | — | 6.0 | ||||||||
Net income attributable to Diebold, Incorporated | $ | 73.6 | $ | — | $ | 73.6 | |||||
Basic weighted-average shares outstanding | 63.1 | 63.1 | 63.1 | ||||||||
Diluted weighted-average shares outstanding | 63.9 | 63.9 | 63.9 | ||||||||
Basic earnings (loss) per share | |||||||||||
Income from continuing operations, net of tax | $ | 1.22 | $ | (0.22 | ) | $ | 1.00 | ||||
Income (loss) from discontinued operations, net of tax | (0.05 | ) | 0.22 | 0.17 | |||||||
Net income attributable to Diebold, Incorporated | $ | 1.17 | $ | — | $ | 1.17 | |||||
Diluted earnings (loss) per share | |||||||||||
Income from continuing operations, net of tax | $ | 1.20 | $ | (0.22 | ) | $ | 0.98 | ||||
Income (loss) from discontinued operations, net of tax | (0.05 | ) | 0.22 | 0.17 | |||||||
Net income attributable to Diebold, Incorporated | $ | 1.15 | $ | — | $ | 1.15 | |||||
Common dividends declared and paid per share | $ | 1.14 | $ | — | $ | 1.14 | |||||