Ncr Atleos Corporation · NYSE:NATL
Ncr Atleos — Q1 2024 Earnings Presentation
31 slides from Ncr Atleos's earnings presentation, May 14, 2024
Slide 1: First Quarter 2024 Earnings Call
First Quarter 2024 Earnings Call Tuesday, May 14th, 2024 Tim Oliver, President & Chief Executive Officer Paul Campbell, Chief Financial Officer Stuart Mackinnon, Chief Operating Officer 1
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS NCR Atleos Corporation (“NCR Atleos,” “Atleos” or the “Company”) cautions that comments made during this presentation and in these materials contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
Slide 3: Notes to Investors
NOTES TO INVESTORS NON-GAAP MEASURES. While Atleos reports its results in accordance with generally accepted accounting principles in the United States, or GAAP, comments made during this conference call and in these materials will include or make reference to certain "non-GAAP" measures, including:
Slide 4: Business Update
Business Update Tim Oliver President and Chief Executive Officer 4
Slide 5: Strong Performance and Momentum
Strong Performance and Momentum On Track for a Strong Q1 Great Start to 2024 Successful 2024 Q1 financial results at or above Q2 guidance implies sequential Banks are investing in branches and the high-end of guidance ranges top line and profit growth better consumer experiences, and seeking efficie
Slide 6: Segment Highlights
Segment Highlights Self-Service Banking Network • Recurring revenue grew 7% and accounted for 62% of • Transaction growth, more profitable mix, and significant segment revenue operating leverage drive double digit profit growth • Active ATMaaS unit count increased to ~21K; backlog up • Top line tren
Slide 7: Key Objectives for 2024
Key Objectives for 2024 2024 Objectives 2024 Initiatives Q1 2024 Progress Update Grew ATMaaS active units to ~21K with the backlog and pipeline up sequentially ■ Offer best-in-class solutions and service Launched Tap capability across the US retail Differentiate ■ Leverage existing operations ne
Slide 8: Financial Review
Financial Review Paul Campbell Chief Financial Officer 8
Slide 9: Q1 2024 Consolidated Financial Results
Q1 2024 CONSOLIDATED FINANCIAL RESULTS $ in millions, except percentages and per share amounts ■ First Quarter Non-GAAP Diluted EPS of $0.41 Total Revenue/Recurring Adjusted EBITDA $1,050 $200 $986 $1,000 $162 $146 $763 $710 $100 $500 $0 $0 Q1 23 Q1 24 Q1 23 Q1 24 ■ Q1 '24 Revenue of $1,050M, +6% y/
Slide 10: Self-Service Banking
SELF-SERVICE BANKING $ in millions, except units and percentages Revenue Adjusted EBITDA $650 $628 $150 $139 $134 $606 $575 $75 $500 $0 Q1 23 Q1 24 Q1 23 Q1 24 Key Strategic Metrics Recurring Revenue Mix % ATMaaS Units (in thousands) ARR 65% 25 $1,573 62% $1,600 60% 20.4 20.8 60% 58% 20 17.5 $1,500
Slide 11: Network
NETWORK $ in millions, except units and ARPU Revenue Adjusted EBITDA $350 $120 $300 $310 $86 $75 $250 $60 $150 $0 Q1 23 Q1 24 Q1 23 Q1 24 Key Strategic Metrics Self-Service Banking Terminal Network LTM ARPU (in thousands) (in thousands) $15.4 $15.5 $15.1 $15.0 85 83 $14.3 81 $14.5 80 84 $14.0 75 $13
Slide 12: Segment Results Summary
Segment Results Summary $ in millions Revenue Q1 2024 Q1 2023 % Change Self-Service Banking $628 $606 +4% Network 310 300 +3% Technology & Telecommunications 51 50 +2% Other 61 30 +103% Total Atleos $1,050 $986 +6% Adjusted EBITDA Q1 2024 Q1 2023 % Change Self-Service Banking $134 $139 (4%) Network
Slide 13: Cash Flow and Financial Position
Cash Flow and Financial Position $ in millions Free Cash Flow Q1 2024 Q1 2023 Adjusted EBITDA $162 $146 Less Maintenance capital expenditures(3) ($18) ($23) Less Growth capital expenditures(3) ($7) n/m Less ATMaaS capital expenditures(3) ($5) n/m Cash paid for Taxes ($8) ($17) Cash paid for Interest
Slide 14: 2024 Financial Outlook
2024 Financial Outlook In millions, except per share amounts FY 2024 Targets Q2 2024 Targets Consolidated (Reaffirmed) Range Range Revenue $1,060 - $1,090 $4,200 - $4,400 Adjusted EBITDA $180 - $190 $770 - $800 Fully Diluted EPS $0.63 - $0.73 $2.90 - $3.20 Adj. Free Cash Flow – Unrestricted $0-$25 $
Slide 15: 2024 Segment Financial Outlook
2024 Segment Financial Outlook In millions, except per share amounts Q2 2024 Targets FY 2024 Targets (Reaffirmed) Segments Range Range Revenue Self Service Banking $645 - $660 $2,540 - $2,620 Network $325 - $335 $1,310 - $1,370 Technology &Telecommunications $47 - $50 $185 - $210 Other – Voyix Relat
Slide 16: Takeaways
Takeaways Strong First Quarter Results at high-end of Guidance Solid Revenue growth in all Atleos Core businesses Launched Strategic actions for a strong 2024 Full Year 2024 Guidance Reaffirmed; Issued Q2 Guidance 16
Slide 17: Supplementary Materials
SUPPLEMENT MATERIALS Sx was \
Slide 18: Non-GAAP Measures
NON-GAAP MEASURES While Atleos reports its results in accordance with generally accepted accounting principles (GAAP) in the United States, comments made during this conference call and in these materials will include non-GAAP measures. These measures are included to provide additional useful inform
Slide 19: Non-GAAP Measures
NON-GAAP MEASURES Net Debt. Atleos determines Net Debt based on its total debt less cash and cash equivalents, with total debt being defined as total short-term borrowings plus total long-term debt as presented on the face of the Condensed Consolidated Balance Sheets plus deferred financing fees and
Slide 20: Non-GAAP Measures
NON-GAAP MEASURES With respect to our Adjusted EBITDA, adjusted free cash flow-unrestricted and non-GAAP diluted earnings per share forward-looking guidance, we do not provide a reconciliation of the respective GAAP measures because we are not able to predict with reasonable certainty the reconcilin
Slide 21: Q1 2024 GAAP Results
Q1 2024 GAAP RESULTS $ in millions, except per share amounts Q1 2024 Q1 2023 % Change Revenue $1,050 $986 6% Gross Margin 221 220 —% Gross Margin Rate 21.0% 22.3% Operating Expenses 149 154 (3)% % of Revenue 14.2% 15.6% Operating Income 72 66 9% % of Revenue 6.9% 6.7% Interest and other expense, net
Slide 22: Q1 2024 Operational Results (Non-GAAP)
Q1 2024 OPERATIONAL RESULTS (Non-GAAP) $ in millions, except per share amounts Q1 2024 Q1 2023 % Change Revenue $1,050 $986 6% Adjusted Gross Margin (non-GAAP) 244 240 2% Adjusted Gross Margin Rate (non-GAAP) 23.2% 24.3% Adjusted Operating Expenses (non-GAAP) 128 128 —% % of Revenue 12.2% 13.0% Adju
Slide 23: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION $ in millions Q1 2024 Q1 2023 Net (Loss) Income Attributable to Atleos (GAAP) $ (8) $ 36 Transformation & Restructuring Costs 1 — Acquisition-Related Amortization of Intangibles 25 25 Separation Costs 9 7 Interest Expense 79 4 Interest Income (2) — Depreciation and Am
Slide 24: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION $ in millions Q1 2024 Q1 2023 Income from Operations (GAAP) $ 72 $ 66 Transformation and restructuring costs 1 — Stock-based compensation expense 10 14 Acquisition-related amortization of intangibles 25 25 Separation costs 8 7 Depreciation and Amortization 44 35 Other
Slide 25: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION Q1 2024 $ in millions, except per share amounts Interest & Income Other Income Tax Effective Net Income Diluted Gross Gross Operating (loss) from Expense Income Tax attributable Earnings per Margin Margin rate Expenses Expenses, operations Net (Benefit) Rate to Atleos
Slide 26: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION Q1 2023 $ in millions, except per share amounts Interest & Income (loss) Income Tax Effective Net Income Gross Margin Operating Other Earnings per Gross Margin rate Expenses from Expenses, Expense Income Tax attributable Share(1) operations Net (Benefit) Rate to Atleo
Slide 27: Q1 2024 Segment Results - GAAP
Q1 2024 SEGMENT RESULTS - GAAP $ in millions Self-Service Network T&T Other(1) Corporate(2) Total Banking Unallocated Product Revenue $190 $17 $2 $31 $— $240 Service Revenue $438 $293 $49 $30 $— $810 Total Revenue $628 $310 $51 $61 $— $1,050 Cost of Products $150 $16 $2 $29 $15 $212 Cost of Services
Slide 28: Q1 2024 Segment Results - Non-GAAP
Q1 2024 SEGMENT RESULTS - NON-GAAP $ in millions Self-Service Network T&T Other(1) Corporate(2) Total Banking Unallocated Product Revenue $190 $17 $2 $31 $— $240 Service Revenue $438 $293 $49 $30 $— $810 Total Revenue $628 $310 $51 $61 $— $1,050 Adjusted Cost of Products (non-GAAP) $150 $16 $2 $29 $
Slide 29: Q1 2024 GAAP to Non-GAAP Segment Reconciliation
Q1 2024 GAAP TO NON-GAAP Segment Reconciliation $ in millions Acquisition Related Stock Based Amortization of GAAP Transformation Costs Compensation Separation Costs Non-GAAP Intangibles Self Service Banking $ 308 $ — $ — $ (1) $ — $ 307 Network 227 — — (21) — 206 T&T 33 — — — — 33 Other 26 — — — —
Slide 30: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION $ in millions Q1 2024 Q1 2023 Cash provided by operating activities $148 $120 Total capital expenditures $(30) $(23) Pension contributions $1 $1 Restricted cash settlement activity $(18) $(27) Temporary transfer of funds from Voyix $(32) $— Adjusted Free Cash Flow-Unr
Slide 31: Thank You
THANK YOU 31