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Diebold Reports Fourth Quarter and Full-Year Financial Results

NORTH CANTON, Ohio, Feb. 13, 2012 /PRNewswire/ --

Earnings overview presentation available at http://www.diebold.com/DBD4Q11.pdf

  • 4Q EPS from cont.ops. of $1.26, or $1.40 non-GAAP*; FY EPS of $2.23, or $2.74 non-GAAP*, which includes a $0.43 benefit from the release of a Brazil tax valuation allowance
  • Total revenue for 4Q 2011 increased 7.5%; FY revenue flat compared with prior-year period
  • Company generates improvement in both gross and operating margin; EMEA profitable in 4Q
  • 2011 Net debt* increased $42.9 million to a net debt of $7.7 million; FY free cash flow* of $161 million
  • Company establishes 2012 non-GAAP* EPS guidance of $2.30 to $2.50

Diebold, Incorporated (NYSE: DBD) today reported fourth quarter 2011 net income from continuing operations attributable to Diebold, net of tax, of $79.8 million, or $1.26 per share, an increase of $199.6 million and $3.09 per share, respectively, from the fourth quarter 2010. Fourth quarter 2010 included a non-cash goodwill impairment charge of $169 million related to the company's EMEA business. Fourth-quarter 2011 revenue was $850.0 million, up 7.5% from the fourth quarter 2010.

Non-GAAP earnings per share* from continuing operations attributable to Diebold, net of tax, in the fourth quarter 2011 were $1.40 per share, up $.67 per share from the fourth quarter 2010.  

Business Review

Management commentary

"We closed 2011 on a winning note with strong performance in the fourth quarter," said Thomas W. Swidarski, Diebold president and chief executive officer.  "We delivered on the commitments we made in several key areas, including revenue and earnings growth, free cash flow and fourth-quarter profitability in EMEA.  Our strategy to leverage our capabilities in services, software and innovation is beginning to pay dividends, and is meeting the needs of our rapidly evolving markets.

"In addition, Diebold delivered significant growth in revenue and generated more than $250 million in free cash flow* during the fourth quarter," Swidarski continued.  "Our global financial self-service orders grew 17 percent during the quarter, with growth in every region in the world. The North America market continued to grow at an impressive rate, as demand remains strong and an increasing number of financial institutions are seeing the benefits of our integrated services offering."

Swidarski concluded, "As we look to 2012, I am encouraged by how our financial self-service business is growing, and we are developing new innovations to help drive further growth.  In addition, we continue to invest in repositioning our security business to return to growth in the second half of the year.  We will once again step up our R&D investments in new solutions in 2012 that will help financial institutions reduce their operating expenses while attracting new customers."

Fourth Quarter Orders (constant currency)

Total global product and services orders increased 6% compared with the prior-year period. Excluding Brazil election systems and lottery, total global orders increased 13%. North America orders benefitted from strong financial self-service growth in both national and regional U.S. accounts.  Asia Pacific orders increased mainly due to the expected year-end seasonality in China.  Orders increased in EMEA, primarily due to strength in certain markets in Western Europe and Africa.   Excluding Brazil election systems and lottery, Latin America orders increased 8%. Security orders declined slightly.


Orders by Solution (Q4 2011 vs. Q4 2010)


% Change

Financial self-service solutions


17%

Security solutions


-2%

      Total FSS & security


13%

Brazil election systems & lottery


-57%




Total Global Order Entry


6%





Orders by Geography (Q4 2011 vs. Q4 2010)

% Change

Diebold North America

14%

Total Diebold International

Flat

Latin America (incl. Brazil)

-13%

Asia Pacific

21%

Europe, Middle East, and Africa

6%

Total Global Order Entry

6%




Results of Operations

Profit/loss summary – 4th quarter comparison (Dollars in millions)














Q4 2011


Q4 2010

Rev

Gross
Profit

% of
Sales

OPEX

OP

% of
Sales


Rev

Gross
Profit

% of
Sales

OPEX

OP

% of
Sales

$850.0

$222.7

26.2%

$155.4

$67.2

7.9%

GAAP Results

$791.0

$189.5

24.0%

$331.1

($141.6)

-17.9%















6.3


(2.2)

8.5


Restructuring


1.1


(0.3)

1.4



-


(0.2)

0.2


Non-rout. Exp


-


(16.7)

16.7



-


-

-


Non-rout. Inc


-


-

-



-


-

-


Impairment


-


(168.8)

168.8















$850.0

$228.9

26.9%

$153.1

$75.8

8.9%

Non-GAAP Results

$791.0

$190.6

24.1%

$145.4

$45.2

5.7%



Profit/loss summary – full-year comparison (Dollars in millions)














2011


2010

Rev

Gross
Profit

% of
Sales

OPEX

OP

% of
Sales


Rev

Gross
Profit

% of
Sales

OPEX

OP

% of
Sales

$2,835.8

$735.9

26.0%

$580.3

$155.6

5.5%

GAAP Results

$2,823.8

$719.6

25.5%

$721.4

($1.8)

-0.1%















14.6


(11.6)

26.2


Restructuring


1.7


(2.5)

4.2



-


(13.2)

13.2


Non-rout. Exp


-


(20.4)

20.4



-


-

-


Non-rout. Inc


-


4.1

(4.1)



-


(3.0)

3.0


Impairment


-


(175.8)

175.8















$2,835.8

$750.5

26.5%

$552.5

$198.0

7.0%

Non-GAAP Results

$2,823.8

$721.3

25.5%

$526.8

$194.5

6.9%



The company's management believes excluding restructuring charges, non-routine expenses/income and impairment charges from operating results is an indication of the company's baseline performance.  The exclusion of these items permits evaluation and comparison of results for the company's core business operations and it is on this basis that the company's management internally assesses the company's performance.

Revenue

Total revenue for the fourth quarter 2011 was up 7.5% compared with the fourth quarter 2010, including a net negative currency impact of approximately 2%.  

Gross Margin

Total gross margin for the fourth quarter 2011 was 26.2%, an increase of 2.2 percentage points from the fourth quarter of 2010, due to further improvements in service efficiency as well as more favorable customer and geographic mix.

Operating Expenses

Total operating expenses as a percentage of revenue for the fourth quarter 2011 were 18.3%, a decrease of 23.6 percentage points from the fourth quarter of 2010.  Operating expenses in the fourth quarter 2011 included $2.2 million of net restructuring charges primarily associated with restructuring efforts in EMEA, and an adjustment of ($2.2) million from the previously accrued settlement and legal fees related to a prior employment class-action lawsuit.  Fourth quarter 2011 operating expenses also included non-routine expenses of $2.4 million for legal, consultative, and audit costs related to the previously disclosed Foreign Corrupt Practices Act (FCPA) investigation.

Operating expenses in fourth quarter 2010 included a net $0.3 million of restructuring charges, which includes a gain on a real estate sale of $0.9 million.  Non-routine expenses of $16.7 million include $9.8 million for the settlement and legal fees related to a previously disclosed employment class-action lawsuit and $6.9 million in higher legal, consultative, audit and severance costs related to the previously disclosed FCPA investigation.  Also included in the fourth quarter 2010 operating expenses is a non-cash goodwill impairment charge of approximately $169 million before tax, associated with the company's EMEA business.

Operating Profit

Operating margin was 7.9% of net sales in the fourth quarter 2011, an increase of 25.8 percentage points from the fourth quarter 2010. Non-GAAP operating profit* in the fourth quarter 2011 was $75.8 million, or 8.9% of sales, and $45.2 million, or 5.7% of sales, in the fourth quarter 2010 excluding applicable restructuring charges, non-routine expenses and impairment charges.  

Taxes on Income from Continuing Operations

Fourth quarter 2011 income tax benefit on continuing operations was $11.0 million.  This was primarily the result of the release of a $27.7 million valuation allowance in Brazil.  Sustained improvement in operating results, combined with a more favorable outlook for business in Brazil, triggered the release of a valuation allowance on deferred tax assets. The fourth quarter income tax rate was -15.2% on a GAAP basis and -11.5% on a non-GAAP basis*. Year-to-date taxes on income from continuing operations were $12.8 million. This resulted in a full-year 2011 income tax rate of 7.8% on a GAAP basis and 11.4% on a non-GAAP basis*.

Income from Continuing Operations, net of tax (attributable to Diebold)

Income from continuing operations, net of tax, was $79.8 million, or 9.4% of revenue in the fourth quarter 2011, an increase of 24.5 percentage points from the fourth quarter 2010. Included in the fourth quarter 2011 net of tax results are restructuring charges of $6.5 million, and $2.4 million in net non-routine expenses. Included in the fourth quarter 2010 net of tax results are restructuring charges of $1.2 million and $167.5 million in net non-routine and impairment charges.

Full-year 2011 income from continuing operations, net of tax, was $144.3 million, or 5.1% of revenue, compared with ($20.5) million, or (0.7%) of revenue, in 2010.  Full-year 2011 income from continuing operations, net of tax, includes after-tax restructuring charges of $20.7 million and $12.5 million in net non-routine and impairment charges.  Full-year 2010 income from continuing operations, net of tax, includes after-tax restructuring charges of $3.3 million and $172.3 million in net non-routine and impairment charges.

Balance Sheet, Cash Flow and Liquidity

The company's net debt* was $7.7 million at December 31, 2011, an increase in net debt of $42.9 million from the net investment* position at December 31, 2010.  The company's net debt to capital ratio was 1% at December 31, 2011, and -4% at December 31, 2010.  

For the full-year 2011, net cash provided by operating activities was $215.4 million, a decrease of $58.0 million from December 31, 2010.  Free cash flow* in the fourth quarter 2011 was $253.8 million, an increase of $44.8 million from the fourth quarter 2010.  For the full-year 2011, free cash flow* was $160.6 million, a decrease of $61.4 million from the full-year of 2010.  

In the fourth quarter 2011, Diebold repurchased approximately 250,000 of its common shares for about $7 million under its repurchase plan. For the full-year 2011, Diebold repurchased approximately 3.6 million shares of its common shares for approximately $108 million under its repurchase plan.

Restructuring, non-routine expenses, and impairment charges

The company incurred restructuring charges, net of tax, of $6.5 million, or $0.10 per share in the fourth quarter of 2011.  The majority of these charges were associated with restructuring efforts in EMEA.  In addition, in the fourth quarter 2011, the company incurred non-routine expenses, net of  tax, of $2.4 million, or $0.04 per share, related to the previously disclosed FCPA investigation and for the adjustment of accrued settlement and legal fees related to a previously disclosed employment class-action lawsuit.

In the fourth quarter 2010, the company incurred restructuring charges, net of tax, of $1.2 million, or $0.02 per share.  In addition, in the fourth quarter 2010, the company incurred non-routine expenses, net of  tax, of $14.2 million, or $0.21 per share, related to the settlement and legal fees of a previously disclosed employment class-action lawsuit and for higher legal, consultative, audit and severance costs related to a previously disclosed FCPA investigation. Diebold also recorded a non-cash goodwill impairment charge of approximately $169 million pre-tax, which represented all of the goodwill associated with the company's EMEA business.  

Full-year 2011 restructuring charges net of tax were $20.7 million, or $0.32 per share, compared with full-year 2010 restructuring charges net of tax of $3.3 million, or $0.05 per share.

Foreign Corrupt Practices Act review

Diebold conducted a global internal review and continues to monitor its compliance with the FCPA.  The company excludes costs related to this review from its non-GAAP operating results as it provides a better overall understanding of the company's historical financial performance and future prospects. The company is also continuing its cooperation with the DOJ and SEC in their ongoing inquiries.  Diebold cannot predict the length, scope or results of these ongoing inquiries, or the impact, if any, on its results of operations.

Full-year 2012 outlook

The following statements are based on current expectations. Guidance assumes a higher full-year tax rate, as well as increased pension expenses and lower election systems revenue from Brazil. These statements are forward-looking and actual results may differ materially. These statements do not include the potential impact of any future mergers, acquisitions, disposals or other business combinations.  Expectations for the full year 2012 are as follows:

  • Revenue


Current Guidance

Total revenue

3% to 6%

 Financial self-service

5% to 8%

 Security

1% to 4%

 Brazil election sys. / lottery

$60 million to $90 million



  • Earnings per share


Current Guidance

2012 EPS (GAAP)

$2.18 - $2.41

 Restructuring charges

0.08 - 0.06

 Non-routine exp.

0.04 - 0.03

2012 EPS non-GAAP*

$2.30 - $2.50



*See accompanying notes for non-GAAP measures.

Overview presentation and conference call

More information on Diebold's quarterly earnings, including additional financial analysis and an earnings overview presentation, is available on Diebold's Investor Relations website.  Thomas W. Swidarski and Bradley C. Richardson will discuss the company's financial performance during a conference call today at 10:00 a.m. (ET). Both the presentation and access to the call are available at http://investors.diebold.com.  The replay can also be accessed on the site for up to three months after the call.

Revenue Summary by Product, Service and Geographic Area

Revenue Summary by Product and Service Solutions

(In Thousands )



Q4 2011


Q4 2010


% Change


FY 12/31/2011


FY 12/31/2010


% Change

Financial Self-Service













Products


$         337,360


$         314,693


7%


$          996,673


$          959,820


4%

Services


302,903


280,264


8%


1,140,872


1,086,569


5%

    Total Fin. self-service


640,263


594,957


8%


2,137,545


2,046,389


4%














Security solutions













Products


63,583


73,969


-14%


194,028


223,514


-13%

Services


107,144


108,587


-1%


411,474


406,831


1%

    Total Security


170,727


182,556


-6%


605,502


630,345


-4%














Total Fin. self-service & security


810,990


777,513


4%


2,743,047


2,676,734


2%



























Election systems & lottery


38,997


13,481


189%


92,801


147,059


-37%



























Total Revenue


$         849,987


$         790,994


7%


$       2,835,848


$       2,823,793


0%
















Revenue Summary by Geographic Segment













Q4 2011


Q4 2010


% Change


FY 12/31/2011


FY 12/31/2010


% Change

Diebold North America


$         396,918


$          352,074


13%


$       1,405,018


$       1,320,581


6%

Diebold International













  Latin America (incl. Brazil)


215,310


196,714


9%


662,805


770,691


-14%

  Asia Pacific


140,987


123,721


14%


422,491


380,970


11%

  Europe, Middle East, Africa


96,772


118,485


-18%


345,534


351,551


-2%

Total Diebold International


453,069


438,920


3%


1,430,830


1,503,212


-5%














Total Revenue


$         849,987


$          790,994


7%


$       2,835,848


$       2,823,793


0%
















Other income/(expense), net summary:


Q4 2011

Q4 2010

FY 12/31/11

FY 12/31/10

  Other income/(expense)

($2,514)

$32

($1,504)

$4,048

  Foreign ex. gain/(loss), net

2,998

(1,535)

3,095

(1,301)

  Interest expense

(8,158)

(9,900)

(34,456)

(37,887)

  Investment income

12,558

10,569

1,663

34,545

Total other income / (expense), net

$4,884

($834)

$8,798

($595)



Notes for Non-GAAP Measures

1. Reconciliation of diluted GAAP EPS to non-GAAP EPS from continuing operations measures:




Q4  2011


Q4  2010


FY 12/31/11


FY 12/31/10

Total EPS from continuing operations (GAAP measure)

$1.26

($1.83)

$2.23

($0.31)

   Restructuring charges

0.10

0.02

0.32

0.05

   Non-routine expenses

0.06

0.21

0.18

0.25

   Non-routine income

(0.02)

--

(0.02)

(0.05)

   Impairment charges

--

2.33

0.03

2.38

Total adjusted EPS (non-GAAP measure)

$1.40

$0.73

$2.74

$2.33

Brazil valuation allowance tax benefit

0.44

0.10

0.43

0.10




The sums of the quarterly figures do not equal year-to-date figures due to rounding or differences in the weighted-average number of shares outstanding during the respective periods.

The company's management believes excluding restructuring charges, non-routine expenses/income, and impairment charges is useful to investors because it provides an overall understanding of the company's historical financial performance and future prospects.  Exclusion of these items, as well as the benefit from the Brazil valuation allowance, permits evaluation and comparison of results for the company's core business operations, and it is on this basis that management internally assesses the company's performance.    

2. Free cash flow (use) is calculated as follows:



Q4 2011

Q4 2010

FY 12/31/11

FY 12/31/10

Net cash provided / (used) by operating activities (GAAP measure)

$270,061

$222,280

$215,397

$273,353

Capital expenditures

(16,297)

(13,307)

(54,753)

(51,298)

Free cash flow / (use)  (non-GAAP measure)

$253,764

$208,973

$160,644

$222,055




The company's management believes that free cash flow is useful to investors because it is a meaningful indicator of cash generated from operating activities that is available for the execution of its business strategy, including service of debt principal, dividends, share repurchase and acquisitions.  Free cash flow is utilized to fund our dividends, as well as mandatory debt payments and other investment opportunities. Free cash flow is not an indicator of residual cash available for discretionary spending, because it does not take into account mandatory debt service or other non-discretionary spending requirements that are deducted in the calculation of free cash flow.  

3. Net investment/(debt) is calculated as follows:



12/31/2011

12/31/2010

9/30/2011

Cash, cash equivalents and short-term investments (GAAP measure)

$620,773

$601,781

$472,210

Debt instruments

(628,503)

(566,632)

(704,436)

Net  investment/(debt) (non-GAAP measure)

$(7,730)

$ 35,149

$ (232,226)




The company's management believes that given the significant cash, cash equivalents and other investments on its balance sheet that net cash against outstanding debt is a meaningful net debt calculation. Between 96% and 98% of the Company's cash and cash equivalents and short-term investments reside in international tax jurisdictions for all periods presented.

4. Reconciliation of GAAP Operating Margin to non-GAAP measures


Q4 2011

Q4 2010

FY 12/31/2011

FY 12/31/2010

GAAP Operating Profit (Loss)

$            67,211

$          (141,621)

$           155,594

$             (1,802)

GAAP Operating Profit %

7.9%

-17.9%

5.5%

-0.1%

Restructuring Charges

8,458

1,391

26,182

4,183

Non-routine Expenses

167

16,714

13,231

20,382

Non-routine Income

-

-

-

(4,148)

Impairment Charges

-

168,753

2,962

175,849

Non GAAP Operating Profit

$            75,836

$            45,237

$           197,969

$           194,464

Non GAAP Operating Profit %

8.9%

5.7%

7.0%

6.9%



The company's management believes excluding restructuring charges, non-routine expenses/income and impairment charges from operating margins is an indication of the company's baseline performance.  The exclusion of these items permits evaluation and comparison of results for the company's core business operations and it is on this basis that the company's management internally assesses the company's performance.  

Forward-Looking Statements

In this press release, statements that are not reported financial results or other historical information are "forward-looking statements".  Forward-looking statements give current expectations or forecasts of future events and are not guarantees of future performance.  These forward-looking statements relate to, among other things, the company's future operating performance, the company's share of new and existing markets, the company's short- and long-term revenue and earnings growth rates, and the company's implementation of cost-reduction initiatives and measures to improve pricing, including the optimization of the company's manufacturing capacity.  

The use of the words "will," "believes," "anticipates," "expects," "intends" and similar expressions is intended to identify forward-looking statements that have been made and may in the future be made by or on behalf of the company. Although the company believes that these forward-looking statements are based upon reasonable assumptions regarding, among other things, the economy, its knowledge of its business, and on key performance indicators that impact the company, these forward-looking statements involve risks, uncertainties and other factors that may cause actual results to differ materially from those expressed in or implied by the forward-looking statements. The company is not obligated to update forward-looking statements, whether as a result of new information, future events or otherwise.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Some of the risks, uncertainties and other factors that could cause actual results to differ materially from those expressed in or implied by the forward-looking statements include, but are not limited to:

  • competitive pressures, including pricing pressures and technological developments;
  • changes in the company's relationships with customers, suppliers, distributors and/or partners in its business ventures;
  • changes in political, economic or other factors such as currency exchange rates, inflation rates, recessionary or expansive trends, taxes and regulations and laws affecting the worldwide business in each of the company's operations, including Brazil, where a significant portion of the company's revenue is derived;
  • the amount of cash and non-cash charges in connection with the restructuring of the company's EMEA operations
  • global economic conditions, including any additional deterioration and disruption in the financial markets, including the bankruptcies, restructurings or consolidations of financial institutions, which could reduce our customer base and/or adversely affect our customers' ability to make capital expenditures, as well as adversely impact the availability and cost of credit;
  • acceptance of the company's product and technology introductions in the marketplace;
  • the company's ability to maintain effective internal controls;
  • changes in the company's intention to repatriate cash and cash equivalents and short-term investments residing in international tax jurisdictions could negatively impact foreign and domestic taxes;
  • unanticipated litigation, claims or assessments, as well as the impact of any current/pending lawsuits;
  • variations in consumer demand for financial self-service technologies, products and services;
  • potential security violations to the company's information technology systems;
  • the investment performance of our pension plan assets, which could require us to increase our pension contributions, and significant changes in health care costs, including those that may result from government action;
  • the amount and timing of repurchases of the company's common shares, if any;
  • the outcome of the company's global FCPA review and any actions taken by government agencies in connection with the company's self disclosure, including the pending SEC investigation; and
  • the company's ability to achieve benefits from its cost-reduction initiatives and other strategic changes, including its restructuring actions.

About Diebold

Diebold, Incorporated is a global leader in providing integrated self-service delivery and security systems and services.  Diebold employs approximately 16,000 associates with representation in nearly 90 countries worldwide and is headquartered in Canton, Ohio, USA.  Diebold is publicly traded on the New York Stock Exchange under the symbol 'DBD.'  For more information, visit the company's website at www.diebold.com.

DIEBOLD, INCORPORATED

CONDENSED CONSOLIDATED  STATEMENTS OF OPERATIONS - UNAUDITED

(IN THOUSANDS EXCEPT EARNINGS PER SHARE)












Three months ended


Twelve months ended



December 31,


December 31,



2011


2010


2011


2010

Net Sales









Product


$        439,940


$        402,143


$        1,283,490


$     1,330,368

Service


410,047


388,851


1,552,358


1,493,425

Total


849,987


790,994


2,835,848


2,823,793










Cost of goods









Product


330,696


310,162


961,706


1,003,923

Service


296,642


291,315


1,138,213


1,100,305

Total


627,338


601,477


2,099,919


2,104,228










Gross Profit


222,649


189,517


735,929


719,565

Percent of net sales


26.2%


24.0%


26.0%


25.5%










Operating expenses









Selling, general and administrative


134,595


142,100


499,265


471,293

Research, development and engineering


20,843


20,285


78,108


74,225

Impairment of assets


-


168,753


2,962


175,849

Total


155,438


331,138


580,335


721,367

Percent of net sales


18.3%


41.9%


20.5%


25.5%










Operating profit (loss)


67,211


(141,621)


155,594


(1,802)

Percent of net sales


7.9%


-17.9%


5.5%


-0.1%










Other income (expense), net


4,884


(834)


8,798


(595)

Income (loss) from continuing operations before taxes


72,095


(142,455)


164,392


(2,397)

Taxes on income


10,952


23,798


(12,815)


(14,561)

Income (loss) from continuing operations


83,047


(118,657)


151,577


(16,958)

Income (loss) from discontinued operations, net of tax


5


(115)


523


275

Net income (loss)


83,052


(118,772)


152,100


(16,683)

Less: net income attributable to noncontrolling interest


(3,297)


(1,240)


(7,285)


(3,569)

Net income (loss) attributable to Diebold, Inc.


$          79,755


$       (120,012)


$           144,815


$         (20,252)










Basic weighted average shares outstanding


62,599


65,686


64,244


65,907

Diluted weighted average shares outstanding


63,300


65,686


64,792


65,907










Basic Earnings Per Share:









Income (loss) from continuing operations


$              1.27


$             (1.83)


$                 2.24


$             (0.31)

Income (loss) from discontinued operations


  -


  -


0.01


  -

Net income (loss)


$              1.27


$             (1.83)


$                 2.25


$             (0.31)










Diluted Earnings Per Share:









Income (loss) from continuing operations


$              1.26


$             (1.83)


$                 2.23


$             (0.31)

Income (loss) from discontinued operations


  -


  -


0.01


  -

Net income (loss)


$              1.26


$             (1.83)


$                 2.24


$             (0.31)










Amounts Attributable to Diebold, Inc.









Income (loss) from continuing operations


$          79,750


$       (119,897)


$           144,292


$         (20,527)

Income (loss) from discontinued operations


5


(115)


523


275

   Net income (loss) attributable to Diebold, Inc.


$          79,755


$       (120,012)


$           144,815


$         (20,252)












DIEBOLD, INCORPORATED

CONDENSED CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS)








December 31,


December 31,



2011


2010



(Unaudited)



ASSETS





Current assets





Cash and cash equivalents


$               333,920


$            328,658

Short-term investments


286,853


273,123

Trade receivables, net


414,969


404,501

Inventories


440,900


444,575

Other current assets


255,713


263,179

Total current assets


1,732,355


1,714,036






Securities and other investments


74,869


76,138

Property, plant and equipment, net


192,694


203,462

Goodwill


253,063


269,398

Other assets


264,462


256,756

Total assets


$            2,517,443


$         2,519,790






LIABILITIES AND EQUITY





Current liabilities





Notes payable


$                 21,722


$              15,038

Accounts payable


221,964


214,288

Other current liabilities


580,531


580,439

Total current liabilities


824,217


809,765






Long-term debt


606,154


550,368

Long-term liabilities


228,812


169,843






Total Diebold, Inc. shareholders' equity


826,986


961,155

Noncontrolling Interests


31,274


28,659

Total equity


858,260


989,814






Total liabilities and equity


$            2,517,443


$         2,519,790








DIEBOLD, INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED

(IN THOUSANDS)



Twelve months ended December 31,



2011


2010

Cash flow from operating activities:





Net income (loss)


$              152,100


$             (16,683)

Adjustments to reconcile net income to cash





provided by operating activities:





Devaluation of Venezuelan balance sheet


-


5,148

Depreciation and amortization


79,855


79,253

Impairment of assets


2,962


175,849

Other


8,865


7,470






Cash flow from changes in





certain assets and liabilities:





Trade receivables


(22,790)


(69,377)

Inventories


(12,602)


3,136

Accounts payable


11,741


65,768

Refundable income taxes


5,187


74,253

Certain other assets and liabilities


(9,921)


(51,464)

Net cash provided by operating activities


215,397


273,353






Cash flow from investing activities:





Net investment activity


(44,917)


(86,714)

Capital expenditures


(54,753)


(51,298)

Purchase of finance receivables, net of cash collections


22,245


(9,865)

Increase in certain other assets & other


(13,281)


(16,879)

Net cash used in investing activities


(90,706)


(164,756)






Cash flow from financing activities:





Dividends paid


(72,901)


(71,900)

Net borrowings (repayments)


63,191


(15,963)

Repurchase of common shares


(111,815)


(25,769)

Other


(2,010)


2,532

Net cash used in financing activities


(123,535)


(111,100)






Effect of exchange rate changes on cash


4,106


2,735






Increase in cash and cash equivalents


5,262


232

Cash and cash equivalents at the beginning of the period


328,658


328,426

Cash and cash equivalents at the end of the period


$              333,920


$             328,658







(Logo:  http://photos.prnewswire.com/prnh/20080725/DIEBOLDLOGO )

SOURCE Diebold, Incorporated

Media, Mike Jacobsen, APR, +1-330-490-3796, michael.jacobsen@diebold.com or Investors, Chris Bast, +1-330-490-6908, christopher.bast@diebold.com