StockSelector.com
  Research, Select, & Monitor Thursday, October 19, 2017 4:52:11 AM ET  
Trade Ideas The Market Industries Stocks Portfolio

 
Ticker Lookup
NCR Corporation$37.31($.02)(.05%)

  Quote | Ranking | Chart | Valuations | Sentiment | Industry | News | Earnings | Analysts | More...

Your Target?

 NCR Announces Fourth Quarter 2014 Results
   Tuesday, February 10, 2015 4:02:19 PM ET

--Non-pension operating income (NPOI) increased 14% to $251 million; GAAP income from operations decreased 88% to $35 million, primarily related to restructuring and pension expense

--Non-GAAP diluted EPS of $0.88 versus $0.83 in prior year; GAAP diluted EPS of $0.22, lower than prior year by $0.99, primarily due to restructuring and pension expense

--Q4 and FY free cash flow of $229 million and $313 million; Q4 and FY GAAP net cash provided by operating activities of $289 million and $524 million

--2015 full year guidance announced

NCR Corporation (NCR ) reported financial results today for the three months ended December 31, 2014.

"Our fourth quarter and full year results were in-line with our revised expectations," said Chairman and CEO Bill Nuti. "Financial Services finished 2014 with a solid quarter, as global demand for our branch transformation solutions and the impact of Digital Insight drove results. While 2014 had its challenges, particularly in Retail Solutions, we made great progress this year continuing to transform NCR, including progress in executing our software and cloud strategy and ongoing success addressing legacy issues. We also remain positioned at the forefront of consumer transaction technologies across our markets. Looking ahead, we are excited about 2015 and the opportunities for NCR. Our focus is on driving improved execution, with an emphasis on our sales and services organizations, as well as taking the next steps in our reinvention. We will continue to deliver innovative solutions to our customers that help drive their success and make running their businesses easier."

Q4 Financial Summary

                                                                                                            Fourth Quarter
                                                             ---------------------------------------------------------------------------------------------------------------------------------------------------
$ in millions, except per share amounts                       2014         2013        Change
                                                             ------                                                                ------                                                                ------
Revenue                                                      $1,768                                                                $1,670                                                                 6% *
Income from operations **                                      $35                                                                  $297                                                                  (88)%
Non-pension operating income (NPOI)                           $251                                                                  $221                                                                   14%
Diluted earnings per share ***                                $0.22                                                                 $1.21                                                                 (82)%
Non-GAAP diluted earnings per share                           $0.88                                                                 $0.83                                                                  6%

* Revenue growth of 11% on a constant currency basis.

** Income from operations in the fourth quarter of 2014 includes a $33 million charge related to the ongoing restructuring plan and pension expense of $150 million primarily due to a non-cash, mark-to-market charge related to an update in the U.S. mortality table. Income from operations in the fourth quarter of 2013 includes $99 million of pension benefit.

*** Diluted earnings per share in the fourth quarter of 2014 includes $0.10 related to the ongoing restructuring plan and $0.43 related to pension expense. Diluted earnings per share in the fourth quarter of 2013 includes $0.41 related to pension benefit.

In this release, we use the non-GAAP measures non-pension operating income (NPOI), non-GAAP diluted earnings per share, free cash flow and revenue growth on a constant currency basis. These non-GAAP measures are described and reconciled to their most directly comparable GAAP measures elsewhere in this release.

Q4 Supplemental Revenue Information

                                                                                                                  Fourth Quarter
                                                           -------------------------------------------------------------------------------------------------------------------------------------------------------------------
$ in millions                                                2014           2013               Change
                                                           -----------------------------                                           -----------------------------                                           -------------------
Cloud *                                                     $   129                                              $    39                                                        231 %
Software License/Software Maintenance                           189                                                                     171                                                                            11 %
Professional Services                                           159                                                  152                                                          5 %
                                                           -----------------------------                                           -----------------------------
Total Software-Related Revenue                                  477                                                                     362                                                                            32 %
Hardware                                                        714                                                                     715                                                                -- %
Other Services                                                  577                                                  593                                                         (3 %)
                                                           -----------------------------                                           -----------------------------
Total Revenue                                               $ 1,768                                              $ 1,670                                                          6 %
                                                           == ===== ====================                                           == ===== ====================

* Referred to as Software-as-a-Service or SaaS in prior Company earnings releases.

Software-related revenue increased 32% in the fourth quarter, including 231% growth in cloud revenues. Excluding the contribution of Digital Insight, software-related revenue increased 8% and cloud revenue increased 15%.

Q4 Operating Segment Results

                                                                                                  Fourth Quarter                                                            
                                       ---------------------------------------------------------------------------------------------------------------------------------------------------------
$ in millions                            2014         2013       % Change         % Change
                                                                                                                                                                                 Constant
                                                                                                                                                                                 Currency
                                       -------  --------------------                      -------  --------------------                      -------- -------------------- -------------------
Revenue by segment
   Financial Services                   $   968                                            $   852                                                 14 %                            20 %
   Retail Solutions                         526                                                536                                                 (2 )%                            2 %
   Hospitality                              172                                                176                                                 (2 )%                           (1 )%
   Emerging Industries                      102                             106                              (4 )%                           (1 )%
                                       -----------------------------                      -----------------------------
Total Revenue                           $ 1,768                         $ 1,670                               6 %                            11 %
                                       == ===== ====================                      == ===== ====================
Operating income by segment
   Financial Services                   $   159                                            $   111
      % of Financial Services Revenue      16.4 %                                             13.0 %
   Retail Solutions                          47                                                 65
      % of Retail Solutions Revenue         8.9 %                                             12.1 %
   Hospitality                               29                                                 26
      % of Hospitality Revenue             16.9 %                                             14.8 %
   Emerging Industries                       16                                                 19
      % of Emerging Industries Revenue     15.7 %                                             17.9 %
                                       -----------------------------                      -----------------------------
Segment operating income                $   251                         $   221  
                                       == ===== ====================                      == ===== ====================
      % of Total Revenue                   14.2 %                                             13.2 %

Revenue increased 6% compared to the prior year led by solid growth in Financial Services where branch transformation revenues continued to increase and Digital Insight contributed $93 million in the fourth quarter of 2014. Retail Solutions was lower than the prior year as we continued to face redirected information technology spending and delayed customer rollouts. Hospitality was lower due to decreased spend by certain global quick-service restaurants. Emerging Industries was lower due to the impact of the travel business. Foreign currency fluctuations negatively impacted total revenue by 5%.

Segment operating income increased 14% compared to the prior year. The increase was led by Financial Services, where growth was driven by a higher mix of software-related revenue. Retail Solutions operating income was as expected, and improved as a percentage of Retail Solutions revenue compared to Q3 2014. Hospitality operating income was higher than the prior year due to a favorable mix of revenue. Emerging Industries operating income was negatively impacted by costs associated with managed services contracts and continued investment in Small Business.

Free Cash Flow

                                                                                          Fourth Quarter                                                                    Full Year
                                                                              -----------------------------------------------------------------------------                     -----------------------------------------------------------------------------
$ in millions                                                                  2014       2013                          2014       2013   
                                                                              ---------------------------                      ---------------------------                      ---------------------------                      ---------------------------
Net cash provided by operating activities                                      $ 289                                            $ 265                                            $ 524                                            $ 281
  Total capital expenditures                                                     (61 )                                            (71 )                                           (258 )                                           (226 )
  Net cash provided by (used in) discontinued operations                         (29 )                                             (1 )                                             (1 )                                            (52 )
    Pension discretionary contributions and settlements                           30                           124                            48                           204  
                                                                              ---------------------------                      ---------------------------                      ---------------------------                      ---------------------------
Free cash flow                                                                 $ 229                         $ 317                         $ 313                         $ 207  
                                                                              == === ====================                      == === ====================                      == === ====================                      == === ====================

Free cash flow decreased in the fourth quarter of 2014 as compared to the fourth quarter of 2013 mainly due to changes in working capital and the timing of cash outflows related to discontinued operations. Free cash flow improved in quarterly linearity in 2014 as compared to 2013 and increased mainly due to working capital improvements and recoveries related to the Fox River environmental matter.

2015 Outlook

The 2015 revenue guidance is expected to be roughly flat on an as-reported basis, and up 4% to 6% on a constant currency basis. We expect revenue growth to be driven by higher value solutions in Financial Services, Retail Solutions and Hospitality. NPOI is expected to be between $830 million and $870 million, primarily due to continued improvements in the software mix across the businesses and the benefit of the restructuring plan, partially offset by approximately $50 million of unfavorable foreign currency impacts. Non-GAAP diluted EPS is expected to be approximately $2.60 to $2.80, due to higher NPOI offset by approximately $0.20 per share of unfavorable foreign currency impacts and a higher effective income tax rate. We expect free cash flow of $325 million to $375 million, which includes restructuring spending of approximately $70 million to $85 million.

$ in millions, except per share amounts             2015                2014
                                                                     Guidance                                                   Actual
                                                               -------------------                                            ---------
Revenue                                                         $6,525 - $6,675 (1)                                           $6,591
Year-over-year revenue growth                                     (1%) to 1%    (1)                                             8%
Constant currency revenue growth                                   4% to 6%                                                     10%
Income from operations (GAAP)                                     $625 - $690   (2)                                            $353  (2)
Non-pension operating income (NPOI)                               $830 - $870                                                  $820
Diluted earnings per share (GAAP)                                $1.80 - $2.10  (2)                                            $1.06 (2)
Non-GAAP Diluted EPS                                             $2.60 - $2.80  (3)                                            $2.74
Net cash provided by operating activities                         $595 - $625                                                  $524
Free cash flow                                                    $325 - $375                                                  $313

(1) Includes 5% of expected unfavorable foreign currency fluctuations.

(2) For 2014, actuarial mark-to-market pension adjustment included; for 2015, actuarial mark-to-market pension adjustments to be determined in Q4 2015 excluded. The impact of the transfer of the UK London pension plan to an insurer expected to occur in 2015 or early 2016 is excluded from the 2015 guidance. The UK London pension plan was approximately $420 million overfunded as of December 31, 2014.

(3) NCR expects approximately $215 million to $220 million of other expense, net including interest expense in 2015 and that its full-year 2015 effective income tax rate will be approximately 25% compared to 22% in 2014.

Related to the ongoing restructuring plan, NCR expects to incur a pre-tax charge of approximately $200 million to $225 million that will be included in income from continuing operations, with $163 million recorded in 2014 and the remainder recorded in 2015. The estimate includes both severance and asset related charges. The cash impact of the restructuring plan is expected to be approximately $100 million to $115 million, with $29 million incurred in 2014 and the remainder in 2015. Savings are expected to be approximately $70 million in 2015 and $105 million in 2016, with about 50% of the savings benefiting NPOI.

Q1 2015 Outlook

For the first quarter of 2015, the Company expects non-pension operating income (NPOI) to be in the range of $140 million to $150 million, compared to $155 million in the first quarter of 2014, and income from operations to be in the range of $90 million to $100 million, compared to $108 million in the first quarter of 2014. NCR expects its first quarter 2015 effective income tax rate to be approximately 23% and other expense, net including interest expense to be approximately $55 million.

2014 Fourth Quarter Earnings Conference Call

A conference call is scheduled for today at 4:30 p.m. (EST) to discuss the fourth quarter 2014 results and guidance for first quarter and full-year 2015. Access to the conference call and accompanying slides, as well as a replay of the call, are available on NCR’s web site at http://investor.ncr.com/ . Additionally, the live call can be accessed by dialing 888-710-4011 and entering the participant passcode 6260857.

More information on NCR’s Q4 2014 earnings, including additional financial information and analysis, is available on NCR’s Investor Relations website at http://investor.ncr.com/ .

About NCR Corporation

NCR Corporation (NCR ) is the global leader in consumer transaction technologies, turning everyday interactions with businesses into exceptional experiences. With its software, hardware, and portfolio of services, NCR enables nearly 550 million transactions daily across the financial, retail, hospitality, travel, telecom and technology industries. NCR solutions run the everyday transactions that make your life easier.

NCR is headquartered in Duluth, Georgia with over 30,000 employees and does business in 180 countries. NCR is a trademark of NCR Corporation in the United States and other countries. NCR encourages investors to visit its web site which is updated regularly with financial and other important information about NCR.

Web site: www.ncr.com Twitter: @NCRCorporation Facebook: www.facebook.com/ncrcorp LinkedIn: http://linkd.in/ncrgroup YouTube: www.youtube.com/user/ncrcorporation

Note to Investors This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements use words such as "expect," "anticipate," "outlook," "intend," "believe," "will," "should," "would," "could" and words of similar meaning. Statements that describe or relate to NCR’s future plans, goals, intentions, strategies or financial outlook, and statements that do not relate to historical or current fact, are examples of forward-looking statements. The forward-looking statements in this release include statements about expected trends, and market and economic conditions affecting NCR and its business; the reinvention of NCR’s business and expectations for NCR’s growth; ongoing success addressing legacy issues and improved execution; NCR’s ongoing restructuring plan and its costs, expected benefits and results; the impact of actions related to NCR’s pension plans; and NCR’s 2015 financial outlook (including in the sections entitled "2015 Outlook" and "Q1 2015 Outlook"). Forward-looking statements are based on our current beliefs, expectations and assumptions, which may not prove to be accurate, and involve a number of known and unknown risks and uncertainties, many of which are out of NCR’s control. 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: domestic and global economic and credit conditions including, in particular, market conditions in the retail industry; the impact of our indebtedness and its terms on our financial and operating activities; our ability to successfully introduce new solutions and compete in the information technology industry; the transformation of our business model and our ability to sell higher-margin software and services; our ability to improve execution in our sales and services organizations; defects or errors in our products; manufacturing disruptions; the historical seasonality of our sales; foreign currency fluctuations; the availability and success of acquisitions, divestitures and alliances, including the acquisition of Digital Insight; our pension strategy and underfunded pension obligation; the success of our ongoing restructuring plan; tax rates; compliance with data privacy and protection requirements; reliance on third party suppliers; development and protection of intellectual property; workforce turnover and the ability to attract and retain skilled employees; environmental exposures from our historical and ongoing manufacturing activities; and uncertainties with regard to regulations, lawsuits, claims and other matters across various jurisdictions. Additional information concerning these and other factors can be found in the Company’s filings with the U.S. Securities and Exchange Commission, including the Company’s most recent annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made. 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.

Non-GAAP Financial Measures While NCR reports its results in accordance with Generally Accepted Accounting Principles in the United States, or GAAP, in this release NCR also uses the non-GAAP measures listed and described below.

Non-Pension Operating Income and Non-GAAP Diluted Earnings Per Share. NCR’s non-pension operating income and non-GAAP diluted earnings per share are determined by excluding pension expense and special items, including amortization of acquisition related intangibles, from NCR’s GAAP income (loss) from operations. Due to the significant change in its pension expense from year to year and the non-operational nature of pension expense and these special items, NCR’s management uses non-pension operating income and non-GAAP diluted earnings per share to evaluate year-over-year operating performance, to manage and determine the effectiveness of its business managers and as a basis for incentive compensation. NCR believes these measures are useful for investors because they provide a more complete understanding of NCR’s underlying operational performance, as well as consistency and comparability with NCR’s past reports of financial results.

Free Cash Flow. NCR defines free cash flow as net cash provided by/used in operating activities and cash flow provided by/used in discontinued operations less capital expenditures for property, plant and equipment, additions to capitalized software, discretionary pension contributions and settlements. NCR’s management uses free cash flow to assess the financial performance of the Company and believes it is useful for investors because it relates the operating cash flow of the Company to the capital that is spent to continue and improve business operations. In particular, free cash flow indicates the amount of cash generated after capital expenditures which can be used for, among other things, investment in the Company’s existing businesses, strategic acquisitions, strengthening the Company’s balance sheet, repurchase of Company stock and repayment of the Company’s debt obligations. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other nondiscretionary expenditures that are not deducted from the measure. Free cash flow does not have a uniform definition under GAAP and, therefore, NCR’s definition may differ from other companies’ definitions of this measure.

Revenue Growth on a Constant Currency Basis. NCR’s period-over-period revenue growth on a constant currency basis excludes the effects of foreign currency translation. Due to the variability of foreign exchange rates from period to period, NCR’s management uses revenue on a constant currency basis to evaluate period-over-period operating performance. Revenue growth on a constant currency basis is calculated by translating prior period revenue at current period monthly average exchange rates.

NCR’s definitions and calculations of these non-GAAP measures may differ from similarly-titled measures reported by other companies and cannot, therefore, be compared with similarly-titled measures of other companies. These non-GAAP measures should not be considered as substitutes for, or superior to, results determined in accordance with GAAP. These non-GAAP measures are reconciled to their most directly comparable GAAP measures in the tables below or, in the case of free cash flow, in the body of this release.

Reconciliation of Diluted Earnings Per Share (GAAP) to Non-GAAP Diluted Earnings Per Share (non-GAAP)

                                                                 Q4 2014                                  Q4 2013                    2015 Guidance                   2014
                                                                                    Actual                                                                         Actual                                                                                                                                                   Actual
                                                                     ----------------------------------                                             ----------------------------------                                             -------------- --------------------                                           ---------------------------
Diluted EPS (GAAP)                                                         $    0.22                                                                      $    1.21                                                                 $1.80 - $2.10                                                   $                 1.06
Pension (benefit) expense                                                       0.43                                                                          (0.41 )                                                                        0.01                                                                                        0.38
Restructuring plan                                                              0.10                                                                 --                                                                   0.18 - 0.28                                                                                        0.68
Acquisition-related costs                                                       0.01                                                                           0.03                                                                          0.04                                                                                        0.12
Acquisition-related amortization of intangibles                                 0.11                                                                           0.07                                                                          0.47                                                                                        0.47
Acquisition-related purchase price adjustments                        --                                                                           0.01                                                                --                                                                                        0.02
OFAC and FCPA Investigations (1)                                                0.01                                                                           0.01                                                                --                                                                                        0.01
Japan valuation reserve release                                       --                                                       (0.09 )                                                              --                                                           --
                                                                     ------------------------------------                                           ------------------------------------                                                          --------------------                                           -----------------------------
Non- GAAP Diluted EPS                                                      $    0.88                                                   $    0.83                                              $2.60 - $2.80                                                   $                 2.74
                                                                     ======= ======= ====================                                           ======= ======= ====================                                           ============== ====================                                           ======= ====================
                                                                                                                                                                                                                                                                                                                          

Reconciliation of Income from Operations (GAAP) to Non-pension Operating Income (non-GAAP)

$ in millions                                                    Q4 2014                                Q4 2013                      2015                      2014                  Q1 2015                       Q1 2014
                                                                                    Actual                                                    Actual                                        Guidance                                                         Actual                                   Guidance                                                             Actual
                                                                     ----------------------------------                        ----------------------------------                        -------------- --------------------                      -------------------------                        -------------- --------------------                      ----------------------------------
Income from Operations (GAAP)                                              $      35                                                 $     297                                              $625 - $690                         $ 353                                               $90 - $100                              $     108
Pension (benefit) expense                                                        150                                                       (99 )                                                      4                                              152                                                        1                                                        (1 )
Restructuring plan                                                                33                                            --                                                  39 - 64                                              160                                                       15                                            --
Acquisition-related costs                                                          2                                                         2                                                       10                                               27                                                        2                                                        14
Acquisition-related amortization of intangibles                                   30                                                        17                                                      127                                              119                                                       32                                                        30
Acquisition-related purchase price adjustments                        --                                                         3                                           --                                                6                                           --                                                         3
OFAC and FCPA Investigations (1)                                                   1                                      1                        --                             3                        --                                      1  
                                                                     ------------------------------------                      ------------------------------------                      -------------- --------------------                      ---------------------------                      -------------- --------------------                      ------------------------------------
Non-pension Operating Income (non-GAAP)                                    $     251                              $     221                           $830 - $870                         $ 820                           $140 - $150                              $     155  
                                                                     ======= ======= ====================                      ======= ======= ====================                      ============== ====================                      == === ====================                      ============== ====================                      ======= ======= ====================
                                                                                                                                                                                                                                                                                                                                                                             

Reconciliation of Net Cash Provided by Operating Activities (GAAP) to Free Cash Flow (non-GAAP)

$ in millions                                              2015 Guidance
                                                       --------------------
Net cash provided by operating activities                   $595 - $625
Total capital expenditures                                 (215) - (235)
Net cash provided by (used in) discontinued operations         (35)
Pension discretionary contributions and settlements       --
                                                       --------------------
Free cash flow                                              $325 - $375
                                                       ====================
                                                        

Reconciliation of Revenue Growth (GAAP) to Revenue Growth on a Constant Currency Basis (non-GAAP)

                       Revenue Growth %            Favorable           Constant Currency
                                               (GAAP)                                                                      (unfavorable) FX                                                                 Revenue Growth %
                                                                                                                                impact                                                                         (non-GAAP)
                                         ----------------                                                                 ----------------                                                                 ----------------
Financial Services                             14 %                                                                             (6 )%                                                                            20 %
Retail Solutions                               (2 )%                                                                            (4 )%                                                                             2 %
Hospitality                                    (2 )%                                                                            (1 )%                                                                            (1 )%
Emerging Industries                            (4 )%                                                                            (3 )%                                                                            (1 )%
Total Revenue                                   6 %                                                                             (5 )%                                                                            11 %

(1) Estimated expenses for 2015 will be affected by, among other things, the status and progress of these matters. There can be no assurance that the Company will not be subject to fines or other remedial measures as a result of OFAC’s, the SEC’s or the DOJ’s investigations.

                                                                                                                          NCR CORPORATION
                                                                                                               CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                                                                            (Unaudited)
                                                                                                              (in millions, except per share amounts)
                                                                                                                                                                                                                                                       Schedule A
                                                               
                                                                                                                                                For the Periods Ended December 31
                                                              ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   Three Months                                                                              Twelve Months
                                                              ---------------------------------------------------------------------------------------                     ----------------------------------------------------------------------------------------
                                                                2014            2013                               2014             2013       
                                                              ----------------------------                      ------------------------------------                      -----------------------------                      ------------------------------------
Revenue
Products                                                       $  815                                                 $     801                                            $ 2,892                                                 $   2,912
Services                                                          953                                    869                           3,699                                  3,211  
                                                              ----------------------------                      ------------------------------------                      -----------------------------                      ------------------------------------
Total Revenue                                                   1,768                                                     1,670                                              6,591                                                     6,123
Cost of products                                                  599                                                       575                                              2,153                                                     2,152
Cost of services                                                  737                                    565                           2,706                                  2,231  
                                                              ----------------------------                      ------------------------------------                      -----------------------------                      ------------------------------------
Total gross margin                                                432                                                       530                                              1,732                                                     1,740
% of Revenue                                                     24.4 %                                                    31.7 %                                             26.3 %                                                    28.4 %
Selling, general and administrative expenses                      288                                                       193                                              1,012                                                       871
Research and development expenses                                  77                                                        40                                                263                                                       203
Restructuring-related charges                                      32                         --                             104                         --  
                                                              ----------------------------                      ------------------------------------                      -----------------------------                      ------------------------------------
Income from operations                                             35                                                       297                                                353                                                       666
% of Revenue                                                      2.0 %                                                    17.8 %                                              5.4 %                                                    10.9 %
Interest expense                                                  (46 )                                                     (33 )                                             (181 )                                                    (103 )
Other (expense) income, net                                       (11 )                                                      (5 )                                              (35 )                                                      (9 )
                                                              ----------------------------                      ------------------------------------                      -----------------------------                      ------------------------------------
Total other (expense), net                                        (57 )                                                     (38 )                                             (216 )                                                    (112 )
(Loss) income before income taxes and discontinued operations     (22 )                                                     259                                                137                                                       554
% of Revenue                                                     (1.2 )%                                                   15.5 %                                              2.1 %                                                     9.0 %
Income tax (benefit) expense                                      (62 )                                                      54                             (48 )                                                      98  
                                                              ----------------------------                      ------------------------------------                      -----------------------------                      ------------------------------------
Income from continuing operations                                  40                                                       205                                                185                                                       456
(Loss) income from discontinued operations, net of tax             (5 )                                                      (8 )                                               10                                     (9 )
                                                              ----------------------------                      ------------------------------------                      -----------------------------                      ------------------------------------
Net Income                                                         35                                                       197                                                195                                                       447
Net income (loss) attributable to noncontrolling interests          2                                     (1 )                                                4                                      4  
                                                              ----------------------------                      ------------------------------------                      -----------------------------                      ------------------------------------
Net income attributable to NCR                                 $   33                              $     198                         $   191                              $     443  
                                                              == ==== ====================                      ======= ======= ====================                      == ===== ====================                      ======= ======= ====================
Amounts attributable to NCR common stockholders:
   Income from continuing operations                           $   38                                                 $     206                                            $   181                                                 $     452
   (Loss) income from discontinued operations, net of tax          (5 )                                                      (8 )                                               10                                     (9 )
                                                              ----------------------------                      ------------------------------------                      -----------------------------                      ------------------------------------
                                                               $   33                              $     198                         $   191                              $     443  
     Net income
                                                              == ==== ====================                      ======= ======= ====================                      == ===== ====================                      ======= ======= ====================
Net income per share attributable to NCR common stockholders:
Net income per common share from continuing operations
Basic                                                          $ 0.23                              $    1.24                         $  1.08                              $    2.73  
                                                              == ==== ====================                      ======= ======= ====================                      == ===== ====================                      ======= ======= ====================
Diluted                                                        $ 0.22                              $    1.21                         $  1.06                              $    2.67  
                                                              == ==== ====================                      ======= ======= ====================                      == ===== ====================                      ======= ======= ====================
Net income per common share
Basic                                                          $ 0.20                              $    1.19                         $  1.14                              $    2.68  
                                                              == ==== ====================                      ======= ======= ====================                      == ===== ====================                      ======= ======= ====================
Diluted                                                        $ 0.19                              $    1.16                         $  1.12                              $    2.62  
                                                              == ==== ====================                      ======= ======= ====================                      == ===== ====================                      ======= ======= ====================
Weighted average common shares outstanding
Basic                                                           168.5                                                     166.5                                              167.9                                                     165.4
Diluted                                                         171.3                                                     170.8                                              171.2                                                     169.3
                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                              
                                                                                                                                    NCR CORPORATION
                                                                                                                         REVENUE AND OPERATING INCOME SUMMARY
                                                                                                                                      (Unaudited)
                                                                                                                                     (in millions)
                                                                                                                                                                                                                                                                       Schedule B
                                   
                                                                                                                                            For the Periods Ended December 31
                                  ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    Three Months                                                                                                      Twelve Months
                                  ----------------------------------------------------------------------------------------------------------------                     ----------------------------------------------------------------------------------------------------------------
                                    2014         2013        % Change                        2014         2013        % Change
                                  -----------------------------                      -----------------------------                                                     -----------------------------                      -----------------------------
Revenue by segment
   Financial Services              $   968                                            $   852                                             14 %                          $ 3,561                                            $ 3,115                                             14 %
   Retail Solutions                    526                                                536                                             (2 )%                           2,008                                              2,034                                             (1 )%
   Hospitality                         172                                                176                                             (2 )%                             659                                                626                                              5 %
   Emerging Industries                 102                             106                          (4 )%                             363                             348                           4 %
                                  -----------------------------                      -----------------------------                                                     -----------------------------                      -----------------------------
Total Revenue                      $ 1,768                         $ 1,670                           6 %                          $ 6,591                         $ 6,123                           8 %
                                  -- ----- --------------------                      -- ----- --------------------                                                     -- ----- --------------------                      -- ----- --------------------
Operating income by segment
   Financial Services              $   159                                            $   111                                                                           $   543                                            $   356
     % of Revenue                     16.4 %                                             13.0 %                                                                            15.2                    %                          11.4                    %
   Retail Solutions                     47                                                 65                                                                               155                                                205
     % of Revenue                      8.9 %                                             12.1 %                                                                             7.7                    %                          10.1                    %
   Hospitality                          29                                                 26                                                                                91                                                100
     % of Revenue                     16.9 %                                             14.8 %                                                                            13.8                    %                          16.0                    %
   Emerging Industries                  16                                                 19                                                                                31                                                 56
     % of Revenue                     15.7 %                                             17.9 %                                                                             8.5                    %                          16.1                    %
                                  -----------------------------                      -----------------------------                                                     -----------------------------                      -----------------------------
Subtotal-segment operating income  $   251                         $   221                                                        $   820                         $   717  
                                  -- ----- --------------------                      -- ----- --------------------                                                     -- ----- --------------------                      -- ----- --------------------
     % of Revenue                     14.2 %                                             13.2 %                                                                            12.4                    %                          11.7                    %
Pension expense (benefit)              150                                                (99 )                                                                             152                                                (78 )
Other adjustments (1)                   66                              23                                                            315                             129  
                                  -----------------------------                      -----------------------------                                                     -----------------------------                      -----------------------------
Total income from operations       $    35                         $   297                                                        $   353                         $   666  
                                  == ===== ====================                      == ===== ====================                                                     == ===== ====================                      == ===== ====================

(1) The following table presents the other adjustments for NCR:

                                                                                                                                       For the periods ended December 31
                                                                           -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                     Three months                                                                           Twelve months
                                                                           -------------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------
In millions                                                                      2014                 2013                               2014                2013
                                                                           ------------------------------------                      --------------------------------------                      ---------------------------                      ------------------------
Restructuring plan                                                               $      33                         $ --                                            $ 160                         $       --
Acquisition-related amortization of intangible assets                                   30                                                          17                                              119                                                                65
Acquisition-related costs                                                                2                                                           2                                               27                                                                46
Acquisition-related purchase price adjustments                              --                                                           3                                                6                                                                15
OFAC and FCPA investigations                                                             1                                        1                             3                                              3
                                                                           ------------------------------------                      --------------------------------------                      ---------------------------                      ------------------------
Total other adjustments                                                          $      66                         $             23                         $ 315                         $                  129
                                                                           ======= ======= ====================                      == ============== ====================                      == === ====================                      == ====================
                                                                                                                                                                                                                                                      
                                                                                                                  NCR CORPORATION
                                                                                                            CONSOLIDATED BALANCE SHEETS
                                                                                                                    (Unaudited)
                                                                                                      (in millions, except per share amounts)
                                                                                                                                                                                                                     Schedule C
                                                                                                                                                                       
                                                                                                      December 31,                                              September 30,                                             December 31,
                                                                                                          2014                                                      2014                                                      2013
                                                                                          ----------------------------------                        ----------------------------------                        ----------------------------------
Assets
   Current assets
      Cash and cash equivalents                                                                 $     511                                                 $     424                                                 $     528
      Restricted cash                                                                      --                                            --                                                     1,114
      Accounts receivable, net                                                                      1,404                                                     1,454                                                     1,339
      Inventories                                                                                     669                                                       777                                                       790
      Other current assets                                                                            504                                    557                                    568  
                                                                                          ------------------------------------                      ------------------------------------                      ------------------------------------
   Total current assets                                                                             3,088                                  3,212                                  4,339  
                                                                                          ------------------------------------                      ------------------------------------                      ------------------------------------
   Property, plant and equipment, net                                                                 396                                                       398                                                       352
   Goodwill                                                                                         2,760                                                     2,773                                                     1,534
   Intangibles, net                                                                                   926                                                       962                                                       494
   Prepaid pension cost                                                                               551                                                       506                                                       478
   Deferred income taxes                                                                              349                                                       245                                                       441
   Other assets                                                                                       537                                    514                                    470  
                                                                                          ------------------------------------                      ------------------------------------                      ------------------------------------
Total assets                                                                                    $   8,607                              $   8,610                              $   8,108  
                                                                                          ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================
Liabilities and stockholders’ equity
   Current liabilities
      Short-term borrowings                                                                     $      91                                                 $      85                                                 $      34
      Accounts payable                                                                                712                                                       705                                                       670
      Payroll and benefits liabilities                                                                196                                                       203                                                       191
      Deferred service revenue and customer deposits                                                  494                                                       529                                                       525
      Other current liabilities                                                                       481                                    486                                    461  
                                                                                          ------------------------------------                      ------------------------------------                      ------------------------------------
   Total current liabilities                                                                        1,974                                  2,008                                  1,881  
                                                                                          ------------------------------------                      ------------------------------------                      ------------------------------------
   Long-term debt                                                                                   3,568                                                     3,660                                                     3,320
   Pension and indemnity plan liabilities                                                             705                                                       513                                                       532
   Postretirement and postemployment benefits liabilities                                             170                                                       172                                                       169
   Income tax accruals                                                                                181                                                       189                                                       189
   Environmental liabilities                                                                           44                                                        48                                                       121
   Other liabilities                                                                                   67                                     76                                     99  
                                                                                          ------------------------------------                      ------------------------------------                      ------------------------------------
Total liabilities                                                                                   6,709                                  6,666                                  6,311  
                                                                                          ------------------------------------                      ------------------------------------                      ------------------------------------
Redeemable noncontrolling interests                                                                    15                                                        12                                                        14
Stockholders’ equity
NCR stockholders’ equity:
                                                                                           --                                            --                                            --
   Preferred stock: par value $0.01 per share, 100.0 shares
   authorized,
   no shares issued and outstanding as of December
   31, 2014,
   September 30, 2014, and December 31, 2013,
   respectively
                                                                                                        2                                                         2                                                         2
   Common stock: par value $0.01 per share, 500.0 shares authorized,
   168.6,
   168.4, and 166.6 shares issued and outstanding as of
   December
   31, 2014, September 30, 2014, and December 31, 2013, respectively
   Paid-in capital                                                                                    442                                                       446                                                       433
   Retained earnings                                                                                1,563                                                     1,530                                                     1,372
   Accumulated other comprehensive loss                                                              (136 )                                                     (60 )                                                     (38 )
                                                                                          ------------------------------------                      ------------------------------------                      ------------------------------------
Total NCR stockholders’ equity                                                                      1,871                                                     1,918                                                     1,769
Noncontrolling interests in subsidiaries                                                               12                                     14                                     14  
                                                                                          ------------------------------------                      ------------------------------------                      ------------------------------------
Total stockholders’ equity                                                                          1,883                                  1,932                                  1,783  
                                                                                          ------------------------------------                      ------------------------------------                      ------------------------------------
Total liabilities and stockholders’ equity                                                      $   8,607                              $   8,610                              $   8,108  
                                                                                          ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================
                                                                                                                                                                                                                               
                                                                                                                                                                                                                               
                                                                                                                                     NCR CORPORATION
                                                                                                                          CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                                                                       (Unaudited)
                                                                                                                                      (in millions)
                                                                                                                                                                                                                                                                             Schedule D
                                                                      
                                                                                                                                                              For the Periods Ended December 31
                                                                     -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                              Three Months                                                                                     Twelve Months
                                                                     -----------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------
                                                                           2014                2013                                   2014                2013       
                                                                     ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Operating activities
Net income                                                                 $      35                                                 $     197                                                 $     195                                                 $     447
   Adjustments to reconcile net income to net cash provided by
   operating activities:
      Loss from discontinued operations                                            5                                                         8                                                       (10 )                                                       9
      Depreciation and amortization                                               73                                                        59                                                       284                                                       208
      Stock-based compensation expense                                             5                                                         7                                                        31                                                        41
      Deferred income taxes                                                      (97 )                                                      11                                                      (125 )                                                       3
      Gain on sale of property, plant and equipment and other assets              (3 )                                          --                                                        (5 )                                                     (14 )
      Impairment of long-lived and other assets                                    8                                            --                                                        16                                            --
      Changes in assets and liabilities:
         Receivables                                                              47                                                        16                                                       (30 )                                                    (136 )
         Inventories                                                             107                                                        51                                                       121                                                        10
         Current payables and accrued expenses                                     2                                                        45                                                        35                                                        21
         Deferred service revenue and customer deposits                          (36 )                                                      15                                                       (34 )                                                      36
         Employee benefit plans                                                  117                                                      (245 )                                                     105                                                      (397 )
         Other assets and liabilities                                             26                                    101                                    (59 )                                                      53  
                                                                     ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Net cash provided by operating activities                                        289                                    265                                    524                                    281  
                                                                     ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Investing activities
   Expenditures for property, plant and equipment                                (30 )                                                     (36 )                                                    (118 )                                                    (116 )
   Proceeds from sales of property, plant and equipment                            1                                            --                                                         1                                                        10
   Additions to capitalized software                                             (31 )                                                     (35 )                                                    (140 )                                                    (110 )
   Business acquisition, net                                          --                                                       (84 )                                                  (1,647 )                                                    (780 )
   Changes in restricted cash                                         --                                                    (1,114 )                                                   1,114                                                    (1,114 )
   Other investing activities, net                                                (2 )                                          --                                      2                                      5  
                                                                     ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Net cash used in investing activities                                            (62 )                                                  (1,269 )                                                    (788 )                                                  (2,105 )
                                                                     ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Financing activities
   Short term borrowings, net                                                     (2 )                                          --                                            --                                                        (1 )
   Payments on term credit facilities                                            (17 )                                          --                                                       (37 )                                                     (35 )
   Borrowings on term credit facilities                               --                                                        29                                                       250                                                       329
   Payments on revolving credit facilities                                      (522 )                                                    (164 )                                                  (1,050 )                                                  (1,009 )
   Borrowings on revolving credit facilities                                     456                                                       164                                                     1,146                                                     1,009
   Proceeds from bond offerings                                       --                                                     1,100                                            --                                                     1,100
   Debt issuance costs                                                            (2 )                                                     (24 )                                                      (5 )                                                     (36 )
   Proceeds from employee stock plans                                              3                                                         5                                                        13                                                        57
   Purchase of noncontrolling interests                               --                                                       (24 )                                          --                                                       (24 )
   Tax withholding payments on behalf of employees                    --                                                        (2 )                                                     (28 )                                                     (30 )
   Other financing activities                                                     (2 )                                                      (3 )                                                      (5 )                                                      (3 )
                                                                     ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Net cash (used in) provided by financing activities                              (86 )                                                   1,081                                    284                                  1,357  
                                                                     ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Cash flows from discontinued operations
      Net cash provided by (used in) discontinued operations                     (29 )                                                      (1 )                                                      (1 )                                                     (52 )
Effect of exchange rate changes on cash and cash equivalents                     (25 )                                                      (8 )                                                     (36 )                                                     (22 )
                                                                     ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Increase (decrease) in cash and cash equivalents                                  87                                                        68                                                       (17 )                                                    (541 )
Cash and cash equivalents at beginning of period                                 424                                    460                                    528                                  1,069  
                                                                     ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Cash and cash equivalents at end of period                                 $     511                              $     528                              $     511                              $     528  
                                                                     ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20150210006568r1&sid=cmtx6&distro=nx&lang=en

SOURCE: NCR Corporation

News Media Contact 
NCR Corporation 
Lou Casale, 212.589.8415 
lou.casale@ncr.com 
or 
Investor Contact 
NCR Corporation 
Gavin Bell, 212.589.8468 
gavin.bell@ncr.com


Register |  Password |  Feedback |  Copyright |  Usage Agreement |  Privacy Policy |  Advertising |  About Us |  Contact Us |  FAQ 

Past performance is not indicative of future results

StockSelector.com, the StockSelector.com logo, and News Selects are trademarks of StockSelector.com.
Copyright © 1998 - 2017 StockSelector.com. All rights reserved.