NCR Atleos Announces Fourth Quarter and Full Year 2024 Results
NCR Atleos (NYSE: NATL) reported strong Q4 and full year 2024 financial results, exceeding guidance for cash flow and EPS. Q4 highlights include revenue of $1.1 billion (1% growth), operating cash flow of $80 million, and adjusted free cash flow of $119 million. GAAP EPS reached $0.61 (126% growth) while non-GAAP EPS hit $1.11 (73% growth).
Full year 2024 performance showed revenue of $4.3 billion (3% growth), with recurring revenue of $3.1 billion increasing 5%. Operating cash flow reached $344 million, with adjusted free cash flow of $242 million. The company reported net income of $91 million, a 168% increase from the previous year's loss.
The company highlighted improved ATM solutions platform, strengthened customer relationships, and higher revenue per device through increased transaction volumes and service capture.
NCR Atleos (NYSE: NATL) ha riportato risultati finanziari solidi per il quarto trimestre e per l'intero anno 2024, superando le previsioni per il flusso di cassa e l'EPS. I punti salienti del Q4 includono un fatturato di 1,1 miliardi di dollari (crescita dell'1%), un flusso di cassa operativo di 80 milioni di dollari e un flusso di cassa libero rettificato di 119 milioni di dollari. L'EPS GAAP ha raggiunto 0,61 dollari (crescita del 126%) mentre l'EPS non-GAAP ha toccato 1,11 dollari (crescita del 73%).
Le performance dell'intero anno 2024 hanno mostrato un fatturato di 4,3 miliardi di dollari (crescita del 3%), con un fatturato ricorrente di 3,1 miliardi di dollari in aumento del 5%. Il flusso di cassa operativo ha raggiunto 344 milioni di dollari, con un flusso di cassa libero rettificato di 242 milioni di dollari. L'azienda ha riportato un utile netto di 91 milioni di dollari, un aumento del 168% rispetto alla perdita dell'anno precedente.
L'azienda ha evidenziato il miglioramento della piattaforma delle soluzioni ATM, il rafforzamento delle relazioni con i clienti e un aumento del fatturato per dispositivo grazie all'aumento dei volumi di transazione e alla cattura dei servizi.
NCR Atleos (NYSE: NATL) reportó resultados financieros sólidos para el cuarto trimestre y para todo el año 2024, superando las proyecciones de flujo de efectivo y EPS. Los aspectos destacados del Q4 incluyen ingresos de 1.1 mil millones de dólares (crecimiento del 1%), flujo de caja operativo de 80 millones de dólares y flujo de caja libre ajustado de 119 millones de dólares. El EPS GAAP alcanzó 0.61 dólares (crecimiento del 126%) mientras que el EPS no-GAAP llegó a 1.11 dólares (crecimiento del 73%).
El rendimiento del año completo 2024 mostró ingresos de 4.3 mil millones de dólares (crecimiento del 3%), con ingresos recurrentes de 3.1 mil millones de dólares que aumentaron un 5%. El flujo de caja operativo alcanzó 344 millones de dólares, con un flujo de caja libre ajustado de 242 millones de dólares. La compañía reportó un ingreso neto de 91 millones de dólares, un aumento del 168% en comparación con la pérdida del año anterior.
La compañía destacó la mejora en la plataforma de soluciones de cajeros automáticos, el fortalecimiento de las relaciones con los clientes y un mayor ingreso por dispositivo a través del aumento en los volúmenes de transacciones y la captura de servicios.
NCR Atleos (NYSE: NATL)는 2024년 4분기 및 연간 재무 결과를 발표하며 현금 흐름 및 EPS에 대한 가이드를 초과 달성했습니다. 4분기 주요 사항으로는 11억 달러의 수익(1% 성장), 8천만 달러의 운영 현금 흐름, 1억 1천9백만 달러의 조정된 자유 현금 흐름이 포함됩니다. GAAP EPS는 0.61달러(126% 성장)에 도달했으며 비 GAAP EPS는 1.11달러(73% 성장)를 기록했습니다.
2024년 전체 성과는 43억 달러의 수익(3% 성장)을 보여주었고, 반복 수익은 31억 달러로 5% 증가했습니다. 운영 현금 흐름은 3억 4천4백만 달러에 도달했으며 조정된 자유 현금 흐름은 2억 4천2백만 달러였습니다. 회사는 9천1백만 달러의 순이익을 보고했으며, 이는 전년도의 손실에 비해 168% 증가한 수치입니다.
회사는 개선된 ATM 솔루션 플랫폼, 강화된 고객 관계, 거래량 증가 및 서비스 캡처를 통한 장치당 수익 증가를 강조했습니다.
NCR Atleos (NYSE: NATL) a annoncé de solides résultats financiers pour le quatrième trimestre et l'année entière 2024, dépassant les prévisions concernant le flux de trésorerie et l'EPS. Les points forts du Q4 incluent un chiffre d'affaires de 1,1 milliard de dollars (croissance de 1%), un flux de trésorerie opérationnel de 80 millions de dollars et un flux de trésorerie libre ajusté de 119 millions de dollars. L'EPS GAAP a atteint 0,61 dollar (croissance de 126%) tandis que l'EPS non-GAAP a atteint 1,11 dollar (croissance de 73%).
La performance de l'année 2024 a montré un chiffre d'affaires de 4,3 milliards de dollars (croissance de 3%), avec des revenus récurrents de 3,1 milliards de dollars en hausse de 5%. Le flux de trésorerie opérationnel a atteint 344 millions de dollars, avec un flux de trésorerie libre ajusté de 242 millions de dollars. L'entreprise a annoncé un bénéfice net de 91 millions de dollars, soit une augmentation de 168% par rapport à la perte de l'année précédente.
L'entreprise a souligné l'amélioration de la plateforme de solutions ATM, le renforcement des relations avec les clients et des revenus plus élevés par appareil grâce à l'augmentation des volumes de transactions et à la capture de services.
NCR Atleos (NYSE: NATL) hat starke Finanzzahlen für das vierte Quartal und das gesamte Jahr 2024 veröffentlicht und die Prognosen für Cashflow und EPS übertroffen. Die Highlights des Q4 umfassen einen Umsatz von 1,1 Milliarden Dollar (1% Wachstum), einen operativen Cashflow von 80 Millionen Dollar und einen bereinigten freien Cashflow von 119 Millionen Dollar. Das GAAP EPS erreichte 0,61 Dollar (126% Wachstum), während das non-GAAP EPS 1,11 Dollar (73% Wachstum) betrug.
Die Leistung des gesamten Jahres 2024 zeigte einen Umsatz von 4,3 Milliarden Dollar (3% Wachstum), wobei die wiederkehrenden Einnahmen von 3,1 Milliarden Dollar um 5% stiegen. Der operative Cashflow erreichte 344 Millionen Dollar, mit einem bereinigten freien Cashflow von 242 Millionen Dollar. Das Unternehmen berichtete von einem Nettoergebnis von 91 Millionen Dollar, was einem Anstieg von 168% im Vergleich zum Verlust des Vorjahres entspricht.
Das Unternehmen hob die verbesserte ATM-Lösungsplattform, die gestärkten Kundenbeziehungen und höhere Einnahmen pro Gerät durch steigende Transaktionsvolumina und Serviceerfassung hervor.
- Revenue growth: Q4 revenue +1%, full year +3%
- Recurring revenue grew 5% to $3.1B
- Q4 GAAP EPS up 126% to $0.61
- Q4 Adjusted EBITDA up 23% to $219M
- Net income improved 168% to $91M
- Strong cash flow: $344M operating cash flow in 2024
- Core revenue growth to 4% in Q4
- Gross margin remains moderate at 28.8%
Insights
NCR Atleos delivered a robust Q4 to cap an impressive first full year as a standalone company, with results exceeding guidance on key metrics. The company demonstrated significant margin expansion with Q4 GAAP gross margin improving to
The dramatic profitability improvement stands out most clearly, with Q4 GAAP EPS surging
While topline growth was modest at
Cash generation metrics were particularly strong, with Q4 operating cash flow of
Management's focus on leverage reduction enhances financial flexibility, though specific 2025 guidance figures weren't detailed in this release. The significant operational improvements achieved in their first full year as an independent entity suggest leadership has successfully implemented efficiency measures while maintaining service quality and customer relationships.
Atleos is successfully executing its specialized ATM solutions strategy in what many perceive as a challenging market segment. Their business model innovation is evident in how they're driving higher revenue per device through increased transaction volumes and improved service capture rates across their global ATM network.
The
The company's ability to grow recurring revenue by
From a technical perspective, their focus on platform enhancement indicates continued investment in modernizing ATM functionality beyond basic cash dispensing. This likely includes integration of more sophisticated banking services and contactless technologies at the ATM interface.
The improved customer service performance metrics mentioned suggest they've overcome typical post-separation operational challenges following the NCR split. Their established global installation base provides both a competitive moat and ongoing revenue opportunities through service contracts and upgrades. Looking forward, their emphasis on "cost and capital efficient growth" indicates a disciplined approach to expansion that should preserve their profitability improvements while pursuing market opportunities.
- Strong fourth quarter drove upside to full year 2024 guidance for cash flow and EPS
-
Operating cash flow of
$80 million $344 million -
Adjusted free cash flow(1) of
$119 million $242 million -
Q4 2024 Revenue of
$1.1 billion 1% ; core business revenue grew4% -
Q4 2024 GAAP fully diluted earnings per share of
$0.61 126% ; Non-GAAP fully diluted earnings per share of$1.11 73% -
Full year 2024 revenue of
$4.3 billion 3% ; recurring revenue of$3.1 billion 5% -
Full year 2024 GAAP fully diluted earnings per share of
$1.23 $3.22
“The fourth quarter was a strong finish to an outstanding first full year for Atleos. Superior focus and execution across the Company enabled us to achieve key objectives for the year and build positive momentum heading into 2025. We enhanced our ATM solutions platform and strengthened relationships with both customers and partners. We generated higher revenue per device on our leading global installed base of ATMs through higher transaction volumes and higher service capture. We advanced key initiatives that elevated customer service performance, improved profitability, and better aligned resources to support our growth strategy. Our strong operational performance translated to impressive 2024 financial results,” said Tim Oliver, President and Chief Executive Officer. “I appreciate the tremendous effort and dedication of the almost 20,000 Atleos employees around the world that made 2024 a success,” Mr. Oliver continued.
“We begin 2025 with optimism. Market fundamentals remain favorable, with banks and retailers continuing to seek outsourced solutions to manage their cash ecosystem, reduce costs, and improve customer experiences. Accelerating customer adoption of our solutions, coupled with our continuous improvement and innovation efforts should drive cost and capital efficient growth while we continue to reduce our leverage and improve strategic flexibility,” concluded Mr. Oliver.
Fourth Quarter and Full Year 2024 Operating Results
-
Fourth quarter revenue was
$1.11 billion $790 million $1.10 billion $777 million -
Fourth quarter gross profit was
$297 million 26.8% on a GAAP basis, compared to$198 million 18.0% in the prior year period. Fourth quarter adjusted gross profit (non-GAAP) was$319 million 28.8% , compared to$272 million 24.8% in the prior year period. -
Fourth quarter income from operations was
$151 million $35 million $187 million $150 million -
Fourth quarter net income attributable to Atleos was
$46 million 128% compared to net loss attributable to Atleos of$165 million -
Fourth quarter Adjusted EBITDA was
$219 million 23% , compared to$178 million -
Full year revenue was
$4.3 billion 3% , compared to$4.2 billion -
Full year net income attributable to Atleos was
$91 million 168% compared to net loss attributable to Atleos of$134 million -
Full year Adjusted EBITDA was
$781 million 7% , compared to$732 million
(1) Adjusted free cash flow-unrestricted, as defined in the section entitled “Non-GAAP Financial Measures.”
NCR ATLEOS CORPORATION |
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REVENUE AND ADJUSTED EBITDA SUMMARY |
|||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||
(in millions) |
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|
For the Periods Ended December 31 |
||||||||||||||||||||
|
Three Months |
Twelve Months |
|||||||||||||||||||
|
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
||||||||||
Revenue by segment |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Self-Service Banking |
$ |
718 |
|
|
$ |
665 |
|
|
8 |
% |
|
$ |
2,696 |
|
|
$ |
2,581 |
|
|
4 |
% |
Network |
|
317 |
|
|
|
323 |
|
|
(2 |
)% |
|
|
1,285 |
|
|
|
1,267 |
|
|
1 |
% |
T&T |
|
46 |
|
|
|
48 |
|
|
(4 |
)% |
|
|
194 |
|
|
|
196 |
|
|
(1 |
)% |
Total segment revenue |
|
1,081 |
|
|
|
1,036 |
|
|
4 |
% |
|
|
4,175 |
|
|
|
4,044 |
|
|
3 |
% |
Other (1) |
|
27 |
|
|
|
62 |
|
|
(56 |
)% |
|
|
142 |
|
|
|
147 |
|
|
(3 |
)% |
Consolidated revenue |
$ |
1,108 |
|
|
$ |
1,098 |
|
|
1 |
% |
|
$ |
4,317 |
|
|
$ |
4,191 |
|
|
3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA by segment |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Self-Service Banking |
$ |
181 |
|
|
$ |
146 |
|
|
24 |
% |
|
$ |
640 |
|
|
$ |
630 |
|
|
2 |
% |
Self-Service Banking Adjusted EBITDA margin % |
|
25.2 |
% |
|
|
22.0 |
% |
|
|
|
|
23.7 |
% |
|
|
24.4 |
% |
|
|
||
Network |
|
114 |
|
|
|
100 |
|
|
14 |
% |
|
|
404 |
|
|
|
379 |
|
|
7 |
% |
Network Adjusted EBITDA margin % |
|
36.0 |
% |
|
|
31.0 |
% |
|
|
|
|
31.4 |
% |
|
|
29.9 |
% |
|
|
||
T&T |
|
8 |
|
|
|
7 |
|
|
14 |
% |
|
|
35 |
|
|
|
33 |
|
|
6 |
% |
T&T Adjusted EBITDA margin % |
|
17.4 |
% |
|
|
14.6 |
% |
|
|
|
|
18.0 |
% |
|
|
16.8 |
% |
|
|
||
Other (1) |
|
(2 |
) |
|
|
8 |
|
|
(125 |
)% |
|
|
8 |
|
|
|
34 |
|
|
(76 |
)% |
Corporate (2) |
|
(82 |
) |
|
|
(83 |
) |
|
(1 |
)% |
|
|
(306 |
) |
|
|
(344 |
) |
|
(11 |
)% |
Total Adjusted EBITDA |
$ |
219 |
|
|
$ |
178 |
|
|
23 |
% |
|
$ |
781 |
|
|
$ |
732 |
|
|
7 |
% |
Total Adjusted EBITDA margin % |
|
19.8 |
% |
|
|
16.2 |
% |
|
|
|
|
18.1 |
% |
|
|
17.5 |
% |
|
|
||
(1) |
Other represents certain other immaterial business operations, including commerce-related operations in countries that Voyix exited that are aligned to Atleos, that do not represent a reportable segment. For periods after the separation from Voyix, Other also includes revenues from commercial agreements with Voyix. |
(2) |
Corporate includes income and expenses related to corporate functions and, for periods prior to the separation from Voyix, certain allocations from Voyix that are not specifically attributable to an individual reportable segment. |
Notes to Investors
On October 16, 2023, NCR Atleos Corporation (“Atleos”, the “Company”, “we” or “us”) became a standalone publicly traded company, and its financial statements are now presented on a consolidated basis. Prior to the separation from NCR Voyix Corporation (“NCR” or “Voyix”), the Company’s historical combined financial statements were prepared on a standalone carve-out basis and were derived from Voyix’s consolidated financial statements and accounting records. Therefore, financial results for the twelve-month periods ended December 31, 2024 and 2023 may not be meaningfully comparable.
In this release, we use certain non-GAAP measures. These non-GAAP measures include “Adjusted EBITDA,” and others with the words “non-GAAP” in their titles. These non-GAAP measures are listed, described and reconciled to their most directly comparable GAAP measures under the heading “Non-GAAP Financial Measures” later in this release.
With respect to our Adjusted EBITDA, adjusted free cash flow-unrestricted and non-GAAP diluted earnings per share guidance, we do not provide a reconciliation of the respective GAAP measures because we are not able to predict with reasonable certainty the reconciling items that may affect the GAAP net income, GAAP cash flow from operating activities and GAAP diluted earnings per share without unreasonable effort. The reconciling items are primarily the future impact of special tax items, capital structure transactions, restructuring, pension mark-to-market transactions, acquisitions or divestitures, or other events. These reconciling items are uncertain, depend on various factors and could significantly impact, either individually or in the aggregate, the GAAP measures. Refer to the heading “Non-GAAP Financial Measures” for additional information regarding our use of non-GAAP financial measures.
Full Year 2025 Guidance
FY 2025 Targets |
2024 Base |
2025 Guidance |
Core Revenue (excludes Voyix) |
|
|
Total Revenue |
|
|
Total Adjusted EBITDA (1) |
|
|
Non-GAAP Diluted EPS (2) |
|
|
Adjusted free cash flow-unrestricted |
|
|
| (1) |
Our Adjusted EBITDA calculation previously included certain amounts reported in Other income (expense), net. Beginning in 2025, we will exclude total Other income (expense), net from our Adjusted EBITDA calculation, which in 2024 would have resulted in Adjusted EBITDA of approximately |
| (2) | Incorporates consensus average SOFR rates for the year in interest expense. |
2024 Fourth Quarter Earnings Conference Call
A conference call is scheduled for March 4, 2025 at 8:30 a.m. Eastern Time to discuss the fourth quarter and full year 2024 results. Access to the conference call and accompanying slides, as well as a replay of the call, are available on Atleos’ web site at http://investor.ncratleos.com. Additionally, the live call can be accessed by dialing 800-753-0725 (
More information on Atleos’ fourth quarter earnings, including additional financial information and analysis, is available on Atleos’ Investor Relations website at https://investor.ncratleos.com/.
About Atleos
Atleos (NYSE: NATL) is a leader in expanding self-service financial access, with industry-leading ATM expertise and experience, unrivalled operational scale including the largest independently-owned ATM network, always-on global services and constant innovation. Atleos improves operational efficiency for financial institutions, drives footfall for retailers and enables digital-first financial self-service experiences for consumers. Atleos is headquartered in
Web site: https://www.ncratleos.com
X (Twitter): https://twitter.com/ncratleos
Facebook: https://www.facebook.com/Atleos.NCR/
LinkedIn: https://www.linkedin.com/company/ncratleos
YouTube: https://www.youtube.com/@ncratleos
Instagram: https://www.instagram.com/ncratleos/
Cautionary Statements
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (the “Act”). Forward-looking statements use words such as “expect,” “anticipate,” “outlook,” “intend,” “plan,” “confident,” “believe,” “will,” “should,” “would,” “potential,” “positioning,” “proposed,” “planned,” “objective,” “likely,” “could,” “may,” and words of similar meaning, as well as other words or expressions referencing future events, conditions or circumstances. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Act. Statements that describe or relate to Atleos’ plans, goals, intentions, strategies, or financial outlook, and statements that do not relate to historical or current fact, are examples of forward-looking statements. Examples of forward-looking statements in this release include, without limitation, statements regarding: our business and financial strategy; our future plans relating to our workforce talent; expectations regarding our cash flow generation and liquidity; our expectations of demand for our solutions and execution and the impact thereof on our financial results; our focus on advancing our strategic growth initiatives and transforming Atleos into a software-led as a service company with a higher mix of recurring revenue streams; and our expectations of Atleos’ ability to deliver increased value to customers and stockholders. 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 Atleos’ 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:
- Strategy and Technology: transforming our business model, development and introduction of new solutions; competition in the technology industry, integration of acquisitions and management of alliance activities; and our multinational operations;
- Business Operations: domestic and global economic and credit conditions; tariffs and other trade measures; risks and uncertainties from the payments-related business and industry; maintenance of a significant amount of vault cash involves risk of loss and is subject to cost fluctuations based on interest rate movements; retention and attraction of key employees; defects, errors, installation difficulties or development delays; failure of third-party suppliers; a major natural disaster or catastrophic event, including the impact of pandemics and geopolitical and macroeconomic challenges; environmental exposures from historical and ongoing manufacturing activities and climate change; and the impact of data protection, cybersecurity and data privacy including any related issues;
- Finance and Accounting: our level of indebtedness; the terms governing our indebtedness; incurrence of additional debt or similar liabilities or obligations; access or renewal of financing sources; our cash flow sufficiency to service our indebtedness; interest rate risks; the terms governing our trade receivables facility; any lowering or withdrawal of the ratings assigned to our debt securities by rating agencies; our pension liabilities; and the write down of the value of certain significant assets;
- Law and Compliance: allegations or claims by third parties that our products or services infringe on intellectual property rights of others, including claims against our customers and claims by our customers to defend and indemnify them with respect to such claims; changes to our tax rates and additional income tax liabilities; uncertainties regarding regulations, lawsuits and other related matters; changes to cryptocurrency regulations;
-
Separation: the perceived reliability of Atleos’ financial statements if Atleos is unable to satisfy the requirements of Section 404 of the Sarbanes-Oxley Act; the failure of Voyix to perform under various transaction agreements; that Atleos may incur material costs and expenses as a result of the spin-off; Atleos’ obligation to indemnify NCR Voyix Corporation (“Voyix”) pursuant to the agreements entered into in connection with the spin-off (including with respect to material taxes) and the risk Voyix may not fulfill any obligations to indemnify Atleos under such agreements; that under applicable tax law, Atleos may be liable for certain tax liabilities of Voyix following the spin-off if Voyix were to fail to pay such taxes; that agreements binding on Atleos restrict it from taking certain actions after the distribution that could adversely impact the intended
U.S. federal income tax treatment of the distribution and related transactions; potential liabilities arising out of state and federal fraudulent conveyance laws; the fact that Atleos may receive worse commercial terms from third-parties for services it previously received from Voyix; that after the spin-off, certain of Atleos’ executive officers and directors may have actual or potential conflicts of interest because of their previous positions at NCR; and potential difficulties in maintaining relationships with key personnel; and - Our Common Stock: Atleos’ stock price may fluctuate significantly; substantial sales in the public market may cause the price of Atleos’ common stock to decline; timing, amount or payment of dividends; dilution of ownership percentages; certain provisions in Atleos’ governing documents may prevent or delay an acquisition; the exclusive forum provision in Atleos’ bylaws could limit a stockholder’s ability to bring a claim against Atleos; and actions or proposals from stockholders that do not align with our business strategies or the interests of our other stockholders.
Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those set forth in the forward-looking statements. Atleos may not be able to realize any of the potential strategic benefits, synergies or opportunities as a result of these actions, nor may stockholders achieve any particular level of stockholder returns. The separation may not enhance value for stockholders, nor may Atleos be commercially successful in the future, nor achieve any particular credit rating or financial results. Additional information concerning these and other factors can be found in the Company’s filings with the
Non-GAAP Financial Measures
Non-GAAP Financial Measures. While Atleos reports its results in accordance with Generally Accepted Accounting Principles in
Adjusted Gross Profit (Non-GAAP), Adjusted Gross Margin (Non-GAAP), Adjusted Income from Operations (Non-GAAP), Non-GAAP Diluted Earnings per Share. Atleos’ Adjusted Gross Profit (non-GAAP), Adjusted Gross Margin (non-GAAP), Adjusted Income from Operations (non-GAAP), and Non-GAAP Diluted Earnings per Share are determined by excluding, as applicable, acquisition-related costs; pension mark-to-market adjustments, pension settlements, pension curtailments and pension special termination benefits; separation-related costs; amortization of acquisition-related intangibles; stock-based compensation expense; transformation and restructuring charges (which includes integration, severance and other exit and disposal costs); Voyix legal and environmental indemnification expense, and other special (expense) income items from Atleos’ GAAP gross profit, expenses, income from operations, interest and other income (expense), income tax expense, effective income tax rate, net income (loss) attributable to Atleos, and earnings per share, respectively. Due to the nature of these special items, Atleos’ management uses these non-GAAP measures to evaluate year-over-year operating performance. Atleos believes these measures are useful for investors because they provide a more complete understanding of Atleos’ underlying operational performance, as well as consistency and comparability with Atleos’ past reports of financial results.
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA). Atleos’ management uses the non-GAAP measure Adjusted EBITDA because it provides useful information to investors as an indicator of performance of the Company’s ongoing business operations. Atleos determines Adjusted EBITDA based on GAAP Net income (loss) attributable to Atleos plus interest expense, net; plus income tax expense (benefit); plus depreciation and amortization; plus acquisition-related costs; plus pension mark-to-market adjustments, pension settlements, pension curtailments and pension special termination benefits; plus separation-related costs; plus transformation and restructuring charges (which includes integration, severance and other exit and disposal costs); plus stock-based compensation expense; plus Voyix legal and environmental indemnification expense; plus other special (expense) income items. These adjustments are considered non-operational or non-recurring in nature and are excluded from the Adjusted EBITDA metric utilized by our chief operating decision maker (“CODM”) in evaluating segment performance and are separately delineated to reconcile back to total reported income attributable to Atleos. This format is useful to investors because it allows analysis and comparability of operating trends. It also includes the same information that is used by Atleos management to make decisions regarding our segments and to assess our financial performance. Refer to the table below for the reconciliation of Net income (loss) attributable to Atleos (GAAP) to Adjusted EBITDA (non-GAAP).
Adjusted EBITDA margin is calculated based on Adjusted EBITDA as a percentage of total revenue. Adjusted EBITDA margin by segment is calculated based on segment Adjusted EBITDA divided by the related component of revenue. This measure is used by Atleos’ management for the reasons referenced above.
Adjusted free cash flow-unrestricted. Atleos defines Adjusted free cash flow-unrestricted as net cash provided by operating activities less capital expenditures for property, plant and equipment, less additions to capitalized software, plus/minus the change in restricted cash settlement activity, plus/minus net reductions or reinvestment in the trade receivables facility established in the fourth quarter of 2023 due to fluctuations in the outstanding balance of receivables sold, plus/minus financing payments/receipts of owned ATM capital expenditures, plus pension contributions and settlements, and plus legal and environmental indemnification payments made to Voyix. Restricted cash settlement activity represents the net change in amounts collected on behalf of, but not yet remitted to, certain of the Company’s merchant customers or third-party service providers that are pledged for a particular use or restricted to support these obligations. These amounts can fluctuate significantly period to period based on the number of days for which settlement to the merchant has not yet occurred or day of the week on which a reporting period ends. We believe Adjusted free cash flow-unrestricted information is useful for investors because it indicates the amount of cash available after these adjustments for, among other things, investments in Atleos’ existing businesses, strategic acquisitions, and repayment of debt obligations. Adjusted free cash flow-unrestricted does not represent the residual cash flow available, since there may be other non-discretionary expenditures that are not deducted from the measure. Adjusted free cash flow-unrestricted does not have a uniform definition under GAAP, and therefore Atleos’ definition may differ from other companies’ definitions of this measure. This non-GAAP measure should not be considered a substitute for, or superior to, cash flows from operating activities under GAAP.
Atleos’ 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.
Use of Certain Terms
Recurring revenue. All revenue streams from contracts where there is a predictable revenue pattern that will occur at regular intervals with a relatively high degree of certainty. This includes hardware and software maintenance revenue, processing revenue, interchange and network revenue, Bitcoin-related revenue, and certain professional services arrangements, as well as term-based software license arrangements that include customer termination rights.
NCR ATLEOS CORPORATION |
|||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
For the Periods Ended December 31 |
||||||||||||||
|
Three Months |
|
Twelve Months |
||||||||||||
($ in millions, except per share amounts) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenue |
|
|
|
|
|
|
|
||||||||
Product revenue |
$ |
273 |
|
|
$ |
282 |
|
|
$ |
995 |
|
|
$ |
1,030 |
|
Service revenue |
|
835 |
|
|
|
816 |
|
|
|
3,322 |
|
|
|
3,161 |
|
Total revenue |
|
1,108 |
|
|
|
1,098 |
|
|
|
4,317 |
|
|
|
4,191 |
|
Cost of products |
|
216 |
|
|
|
227 |
|
|
|
839 |
|
|
|
846 |
|
Cost of services |
|
595 |
|
|
|
673 |
|
|
|
2,445 |
|
|
|
2,412 |
|
Total gross profit |
|
297 |
|
|
|
198 |
|
|
|
1,033 |
|
|
|
933 |
|
% of Revenue |
|
26.8 |
% |
|
|
18.0 |
% |
|
|
23.9 |
% |
|
|
22.3 |
% |
Selling, general and administrative expenses |
|
127 |
|
|
|
140 |
|
|
|
518 |
|
|
|
585 |
|
Research and development expenses |
|
19 |
|
|
|
23 |
|
|
|
66 |
|
|
|
77 |
|
Income from operations |
|
151 |
|
|
|
35 |
|
|
|
449 |
|
|
|
271 |
|
% of Revenue |
|
13.6 |
% |
|
|
3.2 |
% |
|
|
10.4 |
% |
|
|
6.5 |
% |
Loss on extinguishment of debt |
|
(20 |
) |
|
|
— |
|
|
|
(20 |
) |
|
|
— |
|
Interest expense |
|
(72 |
) |
|
|
(75 |
) |
|
|
(309 |
) |
|
|
(77 |
) |
Related party interest expense, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(13 |
) |
Other income (expense), net |
|
15 |
|
|
|
(80 |
) |
|
|
19 |
|
|
|
(74 |
) |
Total interest and other expense, net |
|
(77 |
) |
|
|
(155 |
) |
|
|
(310 |
) |
|
|
(164 |
) |
Income before income taxes |
|
74 |
|
|
|
(120 |
) |
|
|
139 |
|
|
|
107 |
|
% of Revenue |
|
6.7 |
% |
|
|
(10.9 |
)% |
|
|
3.2 |
% |
|
|
2.6 |
% |
Income tax expense |
|
25 |
|
|
|
44 |
|
|
|
47 |
|
|
|
239 |
|
Net income (loss) |
|
49 |
|
|
|
(164 |
) |
|
|
92 |
|
|
|
(132 |
) |
Net income attributable to noncontrolling interests |
|
3 |
|
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
Net income (loss) attributable to Atleos |
$ |
46 |
|
|
$ |
(165 |
) |
|
$ |
91 |
|
|
$ |
(134 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share attributable to Atleos common stockholders |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.63 |
|
|
$ |
(2.34 |
) |
|
$ |
1.26 |
|
|
$ |
(1.90 |
) |
Diluted |
$ |
0.61 |
|
|
$ |
(2.34 |
) |
|
$ |
1.23 |
|
|
$ |
(1.90 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding |
|
|
|
|
|
|
|
||||||||
Basic |
|
72.5 |
|
|
|
70.6 |
|
|
|
72.2 |
|
|
|
70.6 |
|
Diluted |
|
75.0 |
|
|
|
70.6 |
|
|
|
74.2 |
|
|
|
70.6 |
|
CONSOLIDATED BALANCE SHEETS |
|||||||
(Unaudited) |
|||||||
($ in millions, except per share amounts) |
December 31, 2024 |
|
December 31, 2023 |
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
419 |
|
|
$ |
339 |
|
Accounts receivable, net of allowances of |
|
588 |
|
|
|
710 |
|
Inventories |
|
307 |
|
|
|
333 |
|
Restricted cash |
|
210 |
|
|
|
238 |
|
Other current assets |
|
242 |
|
|
|
254 |
|
Total current assets |
|
1,766 |
|
|
|
1,874 |
|
Property, plant and equipment, net |
|
474 |
|
|
|
468 |
|
Goodwill |
|
1,950 |
|
|
|
1,952 |
|
Intangibles, net |
|
550 |
|
|
|
635 |
|
Operating lease right of use assets |
|
144 |
|
|
|
144 |
|
Prepaid pension cost |
|
227 |
|
|
|
219 |
|
Deferred income tax assets |
|
285 |
|
|
|
254 |
|
Other assets |
|
156 |
|
|
|
169 |
|
Total assets |
$ |
5,552 |
|
|
$ |
5,715 |
|
Liabilities and stockholders’ equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Short-term borrowings |
$ |
81 |
|
|
$ |
76 |
|
Accounts payable |
|
562 |
|
|
|
505 |
|
Payroll and benefits liabilities |
|
147 |
|
|
|
149 |
|
Contract liabilities |
|
315 |
|
|
|
325 |
|
Settlement liabilities |
|
156 |
|
|
|
218 |
|
Other current liabilities |
|
441 |
|
|
|
486 |
|
Total current liabilities |
|
1,702 |
|
|
|
1,759 |
|
Long-term borrowings |
|
2,855 |
|
|
|
2,938 |
|
Pension and indemnity plan liabilities |
|
343 |
|
|
|
389 |
|
Postretirement and postemployment benefits liabilities |
|
81 |
|
|
|
60 |
|
Income tax accruals |
|
37 |
|
|
|
36 |
|
Operating lease liabilities |
|
110 |
|
|
|
109 |
|
Deferred income tax liabilities |
|
40 |
|
|
|
34 |
|
Other liabilities |
|
120 |
|
|
|
141 |
|
Total liabilities |
|
5,288 |
|
|
|
5,466 |
|
Stockholders’ equity |
|
|
|
||||
Atleos stockholders’ equity: |
|
|
|
||||
Preferred stock: par value |
|
— |
|
|
|
— |
|
Common stock: par value |
|
1 |
|
|
|
1 |
|
Paid-in capital |
|
47 |
|
|
|
12 |
|
Retained earnings |
|
231 |
|
|
|
147 |
|
Accumulated other comprehensive income (loss) |
|
(19 |
) |
|
|
86 |
|
Total Atleos stockholders’ equity |
|
260 |
|
|
|
246 |
|
Noncontrolling interests in subsidiaries |
|
4 |
|
|
|
3 |
|
Total stockholders’ equity |
|
264 |
|
|
|
249 |
|
Total liabilities and stockholders’ equity |
$ |
5,552 |
|
|
$ |
5,715 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
For the Periods Ended December 31 |
||||||||||||||
|
Three Months |
|
Twelve Months |
||||||||||||
($ in millions) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Operating activities |
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
49 |
|
|
$ |
(164 |
) |
|
$ |
92 |
|
|
$ |
(132 |
) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
||||||||
Depreciation expense |
|
35 |
|
|
|
36 |
|
|
|
139 |
|
|
|
126 |
|
Amortization expense |
|
34 |
|
|
|
35 |
|
|
|
148 |
|
|
|
128 |
|
Stock-based compensation expense |
|
10 |
|
|
|
23 |
|
|
|
38 |
|
|
|
68 |
|
Deferred income taxes |
|
(10 |
) |
|
|
(19 |
) |
|
|
(19 |
) |
|
|
74 |
|
Loss on disposal of property, plant and equipment and other assets |
|
(3 |
) |
|
|
3 |
|
|
|
2 |
|
|
|
3 |
|
Bargain purchase gain from acquisition |
|
— |
|
|
|
— |
|
|
|
(5 |
) |
|
|
— |
|
Loss from equity investments |
|
1 |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
Loss on debt extinguishment |
|
20 |
|
|
|
— |
|
|
|
20 |
|
|
|
— |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
||||||||
Receivables |
|
23 |
|
|
|
(91 |
) |
|
|
102 |
|
|
|
(52 |
) |
Related party receivables and payables |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(22 |
) |
Inventories |
|
— |
|
|
|
88 |
|
|
|
(77 |
) |
|
|
53 |
|
Settlement assets |
|
13 |
|
|
|
1 |
|
|
|
14 |
|
|
|
(7 |
) |
Current payables and accrued expenses |
|
23 |
|
|
|
115 |
|
|
|
100 |
|
|
|
140 |
|
Contract liabilities |
|
18 |
|
|
|
— |
|
|
|
(6 |
) |
|
|
— |
|
Employee benefit plans |
|
(46 |
) |
|
|
(157 |
) |
|
|
(69 |
) |
|
|
(170 |
) |
Other assets and liabilities |
|
(87 |
) |
|
|
138 |
|
|
|
(138 |
) |
|
|
146 |
|
Net cash provided by operating activities |
$ |
80 |
|
|
$ |
8 |
|
|
$ |
344 |
|
|
$ |
355 |
|
Investing activities |
|
|
|
|
|
|
|
||||||||
Expenditures for property, plant and equipment |
$ |
(18 |
) |
|
$ |
(38 |
) |
|
$ |
(87 |
) |
|
$ |
(108 |
) |
Additions to capitalized software |
|
(13 |
) |
|
|
(9 |
) |
|
|
(39 |
) |
|
|
(24 |
) |
Business acquisitions, net of cash acquired |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
Purchase of investments |
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(10 |
) |
Proceeds from sale of investments |
|
5 |
|
|
|
— |
|
|
|
5 |
|
|
|
— |
|
Purchase of intellectual property |
|
— |
|
|
|
— |
|
|
|
(13 |
) |
|
|
— |
|
Proceeds from divestiture |
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
Amounts advanced for related party notes receivable |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(217 |
) |
Repayments received from related party notes receivable |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
44 |
|
Other investing activities, net |
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
Net cash used in investing activities |
$ |
(25 |
) |
|
$ |
(47 |
) |
|
$ |
(135 |
) |
|
$ |
(316 |
) |
Financing activities |
|
|
|
|
|
|
|
||||||||
Proceeds from related party borrowings |
|
— |
|
|
|
253 |
|
|
|
— |
|
|
|
412 |
|
Payments on related party borrowings |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(314 |
) |
Proceeds from issuance of senior secured notes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,333 |
|
Proceeds from borrowings on term credit facilities |
|
300 |
|
|
|
835 |
|
|
|
300 |
|
|
|
1,561 |
|
Payments on term credit facilities |
|
(418 |
) |
|
|
— |
|
|
|
(473 |
) |
|
|
— |
|
Borrowings on revolving credit facilities |
|
185 |
|
|
|
330 |
|
|
|
1,104 |
|
|
|
330 |
|
Payments on revolving credit facilities |
|
(140 |
) |
|
|
(175 |
) |
|
|
(1,034 |
) |
|
|
(175 |
) |
Payments on other financing arrangements |
|
(1 |
) |
|
|
(1 |
) |
|
|
(3 |
) |
|
|
(1 |
) |
Debt issuance costs |
|
(2 |
) |
|
|
(51 |
) |
|
|
(2 |
) |
|
|
(51 |
) |
Call premium paid on debt extinguishment |
|
(7 |
) |
|
|
— |
|
|
|
(7 |
) |
|
|
— |
|
Principal payments for finance lease obligations |
|
(3 |
) |
|
|
— |
|
|
|
(4 |
) |
|
|
(1 |
) |
Proceeds from employee stock plans |
|
1 |
|
|
|
— |
|
|
|
4 |
|
|
|
— |
|
Payments on acquisition holdback |
|
— |
|
|
|
— |
|
|
|
(5 |
) |
|
|
— |
|
Tax withholding payments on behalf of employees |
|
— |
|
|
|
(7 |
) |
|
|
(14 |
) |
|
|
(7 |
) |
Net transfers (to) from NCR Corporation |
|
— |
|
|
|
(286 |
) |
|
|
— |
|
|
|
(60 |
) |
Consideration paid to NCR Corporation in connections with the Separation |
|
— |
|
|
|
(2,996 |
) |
|
|
— |
|
|
|
(2,996 |
) |
Net cash provided by (used in) financing activities |
$ |
(85 |
) |
|
$ |
(2,098 |
) |
|
$ |
(134 |
) |
|
$ |
31 |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
(13 |
) |
|
|
(7 |
) |
|
|
(20 |
) |
|
|
17 |
|
Increase (decrease) in cash, cash equivalents and restricted cash |
$ |
(43 |
) |
|
$ |
(2,144 |
) |
|
$ |
55 |
|
|
$ |
87 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
684 |
|
|
|
2,730 |
|
|
|
586 |
|
|
|
499 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
641 |
|
|
$ |
586 |
|
|
$ |
641 |
|
|
$ |
586 |
|
The following table presents the recurring revenue and all other products and services that is recognized at a point in time:
($ in millions) |
Three months ended December 31 |
|
Twelve months ended December 31 |
||||||||||||
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Recurring revenue |
$ |
790 |
|
|
$ |
777 |
|
|
$ |
3,136 |
|
|
$ |
2,982 |
|
All other products and services |
|
318 |
|
|
|
321 |
|
|
|
1,181 |
|
|
|
1,209 |
|
Total revenue |
$ |
1,108 |
|
|
$ |
1,098 |
|
|
$ |
4,317 |
|
|
$ |
4,191 |
|
Recurring revenue as a percent of revenue |
|
71 |
% |
|
|
71 |
% |
|
|
73 |
% |
|
|
71 |
% |
Reconciliation of Net Income Attributable to Atleos (GAAP) to Adjusted Net Income Attributable to Atleos (Non-GAAP) and Non-GAAP Diluted Earnings Per Share |
||||||||||||||
|
Three months ended December 31, 2024 |
|||||||||||||
($ in millions, except per share amounts) |
Gross profit |
Gross margin |
Income (loss) from operations |
Net income attributable to Atleos |
Diluted earnings (loss) per share (1) |
|||||||||
GAAP Results |
$ |
297 |
|
26.8 |
% |
$ |
151 |
|
$ |
46 |
|
$ |
0.61 |
|
Plus: Special Items |
|
|
|
|
|
|||||||||
Transformation and restructuring |
|
2 |
|
0.2 |
% |
|
4 |
|
|
7 |
|
|
0.09 |
|
Stock-based compensation expense |
|
2 |
|
0.2 |
% |
|
10 |
|
|
10 |
|
|
0.13 |
|
Acquisition-related amortization of intangibles |
|
19 |
|
1.7 |
% |
|
23 |
|
|
20 |
|
|
0.27 |
|
Separation costs |
|
(1 |
) |
(0.1 |
)% |
|
(1 |
) |
|
— |
|
|
— |
|
Voyix environmental indemnification expense |
|
— |
|
— |
% |
|
— |
|
|
9 |
|
|
0.12 |
|
Loss on Debt Extinguishment |
|
— |
|
— |
% |
|
— |
|
|
20 |
|
|
0.27 |
|
Pension mark-to-market adjustments |
|
— |
|
— |
% |
|
— |
|
|
(29 |
) |
|
(0.38 |
) |
Non-GAAP Adjusted Results |
$ |
319 |
|
28.8 |
% |
$ |
187 |
|
$ |
83 |
|
$ |
1.11 |
|
| (1) | Based upon weighted average dilutive shares of 75.0 million for the three months ended December 31, 2024 |
Reconciliation of Net Income Attributable to Atleos (GAAP) to Adjusted Net Income Attributable to Atleos (Non-GAAP) and Non-GAAP Diluted Earnings Per Share (Continued) |
||||||||||||
|
Twelve months ended December 31, 2024 |
|||||||||||
($ in millions, except per share amounts) |
Gross profit |
Gross margin |
Income (loss) from operations |
Net Income (Loss) attributable to Atleos |
Diluted Earnings per Share (1) |
|||||||
GAAP Results |
$ |
1,033 |
23.9 |
% |
$ |
449 |
$ |
91 |
|
$ |
1.23 |
|
Plus: Special Items |
|
|
|
|
|
|||||||
Transformation and restructuring |
|
7 |
0.2 |
% |
|
18 |
|
20 |
|
|
0.27 |
|
Stock-based compensation expense |
|
5 |
0.1 |
% |
|
38 |
|
35 |
|
|
0.47 |
|
Acquisition-related amortization of intangibles |
|
80 |
1.9 |
% |
|
95 |
|
74 |
|
|
0.99 |
|
Acquisition-related costs |
|
— |
— |
% |
|
1 |
|
(4 |
) |
|
(0.05 |
) |
Separation costs |
|
— |
— |
% |
|
18 |
|
16 |
|
|
0.21 |
|
Voyix environmental indemnification expense |
|
— |
— |
% |
|
— |
|
11 |
|
|
0.15 |
|
Valuation allowance and other tax adjustments |
|
— |
— |
% |
|
— |
|
5 |
|
|
0.07 |
|
Loss on Debt Extinguishment |
|
— |
— |
% |
|
— |
|
20 |
|
|
0.27 |
|
Pension mark-to-market adjustments |
|
— |
— |
% |
|
— |
|
(29 |
) |
|
(0.39 |
) |
Non-GAAP Adjusted Results |
$ |
1,125 |
26.1 |
% |
$ |
619 |
$ |
239 |
|
$ |
3.22 |
|
| (1) | Based upon weighted average dilutive shares of 74.2 million for the twelve months ended December 31, 2024. |
Reconciliation of Net Income Attributable to Atleos (GAAP) to Adjusted Net Income Attributable to Atleos (Non-GAAP) and Non-GAAP Diluted Earnings Per Share (Continued) |
||||||||||||
|
Three months ended December 31, 2023 |
|||||||||||
($ in millions, except per share amounts) |
Gross profit |
Gross margin |
Income (loss) from operations |
Net Income (Loss) attributable to Atleos |
Diluted earnings per share (1) |
|||||||
GAAP Results |
$ |
198 |
18.0 |
% |
$ |
35 |
$ |
(165 |
) |
$ |
(2.34 |
) |
Plus: Special Items |
|
|
|
|
|
|||||||
Transformation and restructuring |
|
1 |
0.1 |
% |
|
3 |
|
22 |
|
|
0.30 |
|
Stock-based compensation expense |
|
2 |
0.2 |
% |
|
23 |
|
21 |
|
|
0.29 |
|
Acquisition-related amortization of intangibles |
|
20 |
1.8 |
% |
|
24 |
|
18 |
|
|
0.25 |
|
Separation costs |
|
51 |
4.7 |
% |
|
65 |
|
81 |
|
|
1.10 |
|
Valuation allowance and other tax adjustments |
|
— |
— |
% |
|
— |
|
42 |
|
|
0.57 |
|
Pension mark-to-market adjustments |
|
— |
— |
% |
|
— |
|
28 |
|
|
0.38 |
|
Non-GAAP Adjusted Results |
$ |
272 |
24.8 |
% |
$ |
150 |
$ |
47 |
|
$ |
0.64 |
|
| (1) | For the three months ended December 31, 2023, due to the net loss attributable to Atleos common stockholders, potential common shares that would have caused dilution, such as restricted stock units and stock options, have been excluded from the GAAP diluted share count because their effect would have been anti-dilutive. The dilutive impact of these shares is included in the calculation of non-GAAP diluted EPS, which is based upon weighted average dilutive shares of 73.4 million. Therefore, GAAP diluted EPS and non-GAAP diluted EPS may not mathematically reconcile. |
Reconciliation of Net Income Attributable to Atleos (GAAP) to Adjusted Net Income Attributable to Atleos (Non-GAAP) and Non-GAAP Diluted Earnings Per Share (Continued) |
||||||||||||
|
Twelve months ended December 31 2023 |
|||||||||||
($ in millions, except per share amounts) |
Gross profit |
Gross margin |
Income (loss) from operations |
Net Income (Loss) attributable to Atleos |
Diluted Earnings per Share (1) |
|||||||
GAAP Results |
$ |
933 |
22.3 |
% |
$ |
271 |
$ |
(134 |
) |
$ |
(1.90 |
) |
Plus: Special Items |
|
|
|
|
|
|||||||
Transformation and restructuring |
|
1 |
— |
% |
|
9 |
|
27 |
|
|
0.37 |
|
Stock-based compensation expense |
|
20 |
0.5 |
% |
|
68 |
|
63 |
|
|
0.86 |
|
Acquisition-related amortization of intangibles |
|
65 |
1.5 |
% |
|
98 |
|
74 |
|
|
1.01 |
|
Separation costs |
|
51 |
1.2 |
% |
|
151 |
|
268 |
|
|
3.65 |
|
Valuation allowance and other tax adjustments |
|
— |
— |
% |
|
— |
|
42 |
|
|
0.57 |
|
Pension mark-to-market adjustments |
|
— |
— |
% |
|
— |
|
24 |
|
|
0.33 |
|
Non-GAAP Adjusted Results |
$ |
1,070 |
25.5 |
% |
$ |
597 |
$ |
364 |
|
$ |
4.96 |
|
| (1) | For the twelve months ended December 31, 2023, due to the net loss attributable to Atleos common stockholders, potential common shares that would have caused dilution, such as restricted stock units and stock options, have been excluded from the GAAP diluted share count because their effect would have been anti-dilutive. The dilutive impact of these shares is included in the calculation of non-GAAP diluted EPS, which is based upon weighted average dilutive shares of 73.4 million. Therefore, GAAP diluted EPS and non-GAAP diluted EPS may not mathematically reconcile. |
Reconciliation of Net Income Attributable to Atleos (GAAP) to Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) (Non-GAAP) |
|||||||||||||||||||||||
($ in millions) |
Q4 2024 |
% of Revenue |
|
Q4 2023 |
% of Revenue |
|
FY 2024 |
% of Revenue |
|
FY 2023 |
% of Revenue |
||||||||||||
Net income (loss) attributable to Atleos (GAAP) |
$ |
46 |
|
4.2 |
% |
|
$ |
(165 |
) |
(15.0 |
)% |
|
$ |
91 |
|
2.1 |
% |
|
$ |
(134 |
) |
(3.2 |
)% |
Interest expense, net (1) |
|
72 |
|
6.5 |
% |
|
|
75 |
|
6.8 |
% |
|
|
309 |
|
7.2 |
% |
|
|
90 |
|
2.2 |
% |
Interest income |
|
(2 |
) |
(0.2 |
)% |
|
|
(5 |
) |
(0.5 |
)% |
|
|
(7 |
) |
(0.2 |
)% |
|
|
(5 |
) |
(0.1 |
)% |
Income tax expense |
|
25 |
|
2.2 |
% |
|
|
44 |
|
4.0 |
% |
|
|
47 |
|
1.1 |
% |
|
|
239 |
|
5.7 |
% |
Depreciation and amortization expense |
|
44 |
|
4.0 |
% |
|
|
43 |
|
3.9 |
% |
|
|
176 |
|
4.1 |
% |
|
|
151 |
|
3.6 |
% |
Acquisition-related amortization of intangibles |
|
23 |
|
2.1 |
% |
|
|
24 |
|
2.2 |
% |
|
|
95 |
|
2.2 |
% |
|
|
98 |
|
2.3 |
% |
Stock-based compensation expense |
|
10 |
|
0.9 |
% |
|
|
23 |
|
2.1 |
% |
|
|
38 |
|
0.9 |
% |
|
|
68 |
|
1.6 |
% |
Separation costs |
|
(1 |
) |
(0.1 |
)% |
|
|
84 |
|
7.7 |
% |
|
|
19 |
|
0.4 |
% |
|
|
170 |
|
4.1 |
% |
Acquisition-related costs |
|
— |
|
— |
% |
|
|
— |
|
— |
% |
|
|
(5 |
) |
(0.1 |
)% |
|
|
— |
|
— |
% |
Transformation and restructuring |
|
8 |
|
0.7 |
% |
|
|
22 |
|
2.0 |
% |
|
|
22 |
|
0.5 |
% |
|
|
28 |
|
0.7 |
% |
Loss on debt extinguishment |
|
20 |
|
1.8 |
% |
|
|
— |
|
— |
% |
|
|
20 |
|
0.5 |
% |
|
|
— |
|
— |
% |
Pension mark-to-market adjustments |
|
(38 |
) |
(3.4 |
)% |
|
|
33 |
|
3.0 |
% |
|
|
(38 |
) |
(0.9 |
)% |
|
|
27 |
|
0.6 |
% |
Voyix environmental indemnification expense |
|
12 |
|
1.1 |
% |
|
|
— |
|
— |
% |
|
|
14 |
|
0.3 |
% |
|
|
— |
|
— |
% |
Adjusted EBITDA (Non-GAAP) |
$ |
219 |
|
19.8 |
% |
|
$ |
178 |
|
16.2 |
% |
|
$ |
781 |
|
18.1 |
% |
|
$ |
732 |
|
17.5 |
% |
| (1) | Includes Related party interest expense, net, as presented in the Consolidated Statement of Operations in the twelve months ended December 31, 2023. |
Reconciliation of Net Cash Provided by Operating Activities (GAAP) to Adjusted Free Cash Flow-Unrestricted (Non-GAAP) |
|||||||||||||||
($ in millions) |
Q4 2024 |
|
Q4 2023 |
|
FY 2024 |
|
FY 2023 |
||||||||
Net cash provided by (used in) operating activities |
$ |
80 |
|
|
$ |
8 |
|
|
$ |
344 |
|
|
$ |
355 |
|
Total capital expenditures |
|
(31 |
) |
|
|
(47 |
) |
|
|
(126 |
) |
|
|
(132 |
) |
Change in restricted cash settlement activity |
|
69 |
|
|
|
(8 |
) |
|
|
21 |
|
|
|
(27 |
) |
Initial sale of trade accounts receivable |
|
— |
|
|
|
(166 |
) |
|
|
— |
|
|
|
(166 |
) |
Pension contributions |
|
1 |
|
|
|
145 |
|
|
|
3 |
|
|
|
154 |
|
Adjusted free cash flow-unrestricted |
$ |
119 |
|
|
$ |
(68 |
) |
|
$ |
242 |
|
|
$ |
184 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250303943341/en/
News Media Contact
Scott Sykes
NCR Atleos Corporation
scott.sykes@ncratleos.com
Investor Contact
Brendan Metrano
NCR Atleos Corporation
brendan.metrano@ncratleos.com
Source: NCR Atleos Corporation
FAQ
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