Diebold Nixdorf (DBD) 8 Nov 222022 Q3 Earnings call transcript

Good morning. My name is Charlie, and I’ll be your conference operator today. At this time, I would like to welcome everybody to the Diebold Nixdorf Third Quarter 2022 Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there’ll be a question-and-answer session. you. Thank Instructions] [Operator Ms. now conference may your begin. Marchuska,

we and call. I’m everyone for letter Nixdorf. prepared to welcome and Relations press of to earnings XXXX Diebold remarks, our accompany of quarter the third To posted Christine shareholder Relations our release our Investor Hello, have section will Marchuska, Investor President company. as additional information webcast regarding our corporate investors available encourage of contains would be morning, to review replay progress Investor it of of Later the website. I the this a shareholder Relations letter website. our on the this section Vice

begin, statements. beliefs remind statements, risks to this including materially we cause our the at of reflect our this participants forward-looking call, an could actual to results that statements update on management but to team Before during subject I of they will are related outlook. these and time hear and you call, differ that expectations will uncertainties These all the from

factors in may render Additional SEC. out mindful events subsequent on filings the that Participants information should be to the annual and these of this be with information periodic be company’s can date. found

certain also call. reconciliation can on the hand GAAP Octavio. measures We be to A today’s measures the non-GAAP be And and today’s non-GAAP tables in I’ll now, will between found of discussing release. financial earnings call over

and our our backlog retail main I including of market some during joining that, is success. for banking today. us spend talking us points, like Transaction But for our cover quarter to solutions for you the you, time Christine. positioning And some all and consistent to the thanks Thank Today, I’d Support demand how want to about before recent Agreement.

our a TSA. over contemplated model, Jeff, three-year to and financials Next, progress on and it then share And discuss the brief savings discuss by our we’ll details, to the before I update hand transaction operating plan our model. we’ll financial on

continue at expectations. historic solutions quarter, will backlog in demand delivery the and our in throughout near our third billion in subsequently by said $X.X year, the to As market, its highs generate as approximately banking given product we retail QX, work remains way down we the Backlog and the evidenced consistent trends.

and America. our results demand as the solution Momentum legacy We grow and see recyclers Series also our strong, continue continued business orders to in shift DN DN efforts we retail our remain comprise majority new for from Series as that devices of market and from self-checkout banking strong also is to continues, the vast North Europe. see our continuing outside start of the US expansion in in to cash

seeing also operating from are streamlined our We model. new benefits tangible

more past market. company solutions our deliver equipped to two taken agile, the steps customer-focused strategic better deliberate lean, During quarters, to our and the has to become and

on focus to continuing rigor. are We operational our

are implementing by cost additional million have an and decreasing We considerably To-date, which we redundancies, are as $XXX eliminating savings and efforts efficient approximately of are we improved possible. we our our savings, and are spend. million as executed significantly on creating globally have these $XX modeling more management through efficiently of quickly processes indirect

to economics the between we better a to taking In financial measure unit up deliberate reflects a modeling our provides steps it From our revenue and normalizing footprint regionalizing business. conversion. allows to our highlight addition, further us moving improve are supply such and operations, we key as, revenue, our to discuss believe strong aspects our of We manufacturing how chain forward, perspective, we unit and unit to relationship product wrapping performance and the and will mix. growth volume as drive economics reference correlation

as seen set. solution product demand fundamentals solid stable have consistently our have We we for

have disclosed we points we in October ATMs this the on from and in shift This and October. current XXX elevated our product self-checkout to XXX% sale XX,XXX year. in coverage revenue Form XXth, XX,XXX for X-K for filed the updated provided and model basis of given terminals units report we backlog, As XXXX our expect is

As expect from seeing confident approximately to to achieve billion, be next to as am By end months ago, the approximately our the product our few XXXX, full revenue. what we’re XXXX I Jeff work in we enter still of and I’m units. weeks XX% we to $X.X secures for revenues customers, have the disclosures, part discuss, we which do will TSA A forecast we in our this XXXX our year coming hearing provided backlog our target. demand our as of product From year. backlog

are we our ATMs unit recyclers. of industry-leading DN disclosed, the we sales being Series with XX,XXX As forecasting majority

XX,XXX for forecasting ePOS numbers self-checkouts ATMs, sale XXXX be velocity devices include X,XXX approximately deferral XXX,XXX X,XXX chain issues. also recognized point revenue product of due to These and XXXX. units, supply XXXX will in and of X,XXX We’re which versus self-checkouts

and provided self-checkouts XX,XXX point sales a deliver to we XXXX, year XX,XXX full to units. out forecast further XXX of Looking ATMs,

you expect approximately the XXXX, existing that’s service this generate know, forecast business revenue our end this have of $X.X also year. our already And roughly billion, XX% coverage. of we to our in is in $X.X As billion core to operating contract by through secured in approximately services And business. from we shown revenue

another work. our from executed Additionally, that billed the product-related have service professional installations. from another the revenue with through or service work million XX% And remainder coming we expect XX% generates year $XXX we of

and extend And Support insight ago debt two expectation years, TSA, Transaction with multiyear that over finally, our the demand we of progress milestone, we despite financial demonstrates execution have the lenders Given this maturities a we productive additional for announced to believe especially a us and especially and business, our strategic next we operating firmly our that our initiatives our noteholders, around model the operational a obtain we rigorous confident lenders diligence earlier, conversations reflects and We liquidity. financials are operating the mentioned to conducted had as in noteholders our help due the or made near-term Agreement macroeconomic our the strategic confidence and environment. entered the plans our process into savings community’s our model in challenging considering forecasts, this into for and long-term weeks the reach few with solutions. I and

Please loan Form the on company’s additional holders percentage the Form of yesterday, execution details. report X-K in TSA more our As current that party pleased the track I the noteholders current noted approximately respectively. increases have – yesterday initial term to creditors for X-K to agreement, the am the on the to the XXXX senior TSA, of XX%, are filed our joiners and XX% say executed see of report and with that the following which to SEC filed the company’s eligible

TSA in And are towards normalize that will model. from our contemplated by transaction We our work we completing and continue business on December. to the there, to working execute

a with and remain growth and related industry position As accelerate on software, the we solutions, market leap while intend and in do as leader our goals evolution service self-checkout our technology, focused maintaining retail in in build automation ATM also and products and retailers share cloud software to our for next-generation terminal will always, we I acquisitions, opportunities. banking last services. To We on including call so, pursuing and other business. supporting delivering also business and strategic opportunities from to our to address divestitures the committed value-creating earnings want to we our we employees, said partners mergers potential and global questions operations. and in receive remain investors during our services and reiterate customers to what strategy, often leverage about making our momentum investments

look benefit our that continue will our ahead will alternatives to evaluate to forward efforts opportunities constant with our shareholders value. all flexibility. strategic We to that enhanced also shareholder financial capturing We of part as lie maximize

I’d through provides QX as the Jeff work incredible their their and past and dedication process. on worked And for want thank Before recognize our our for hard to employees commitment more detail patience quarters. I we this financials, have customers our to like over

As to a our I will over said it operating we that, will to have leader we goals With remain technology. banking on turn and strategic global now long-term remain in model, confident in Jeff. our to before, I continue execute retail and

you, Octavio. remarks references metrics prepared adjusted My as Thank certain EBITDA. include to non-GAAP will such

operating our in my financial X-K adjusted discussing XXXX current letter. Form report For results the operating TSA. quarter filed spend third time forecast. relative quarter relative XXth performance see prior included forecast were with will October third please a relating of to third line I quarter in EBITDA Today, Total on third and shareholder to periods, the on million million of largely in the included quarter summary our discussion our the of to our year full $XXX $XX revenue

units self-checkout our discussed XX,XXX by ATMs, were are model our were in as X,XXX X,XXX follows. and previously Octavio, economic units. our revenue of which point units, recognized with units unit and forecast line As sale and

third increased we services terms sequential basis to improvement of in see of margin, XXX In the points quarter. gross to continue XX.X%

lower a note banking that approximately in delays the banking percentage product we product in in self-checkout gross profile. In quarter, overall margin margin retail. units to XX% quarter the will product both retail, as In to and units an represented second due cash gross second the in dispensers approximately for ATM You of unfavorable XX% quarter quarter. resulted in versus compared and see delivery did third mix decline

incentive plan operating provisions compensation as our and to costs we restructuring expenses million quarter dropped to lower harvest $XXX continue approximately Third from programs. for from

will point X,XXX expenses in million units. XX,XXX per operating to ATMs, for the fourth improving. continue be are We and operating as forward. of forecasts Overall chain quarter, $XXX sale material full range supply quarterly the and million forecasted logistics going XX,XXX $XXX that believe The year availability revenue XXXX units units to are self-checkout normalized our

normalization experiencing. However, of currently our models assumed are than quicker relationships supplier we a

more as Noting in $XX much conversion worth conversion of a to our to EBITDA, with recognition million backlog this short-term customer depending noting is the product challenging, see its including to quarter, unit be the will working as and that XX% software. continue of it fourth and seek our capital $XXX units in and However, and services would XX% revenue equate geography, attached normalize management, supplier as in we mix. revenue and adjusted on could relationships. variance is to In to we corresponding respect million challenge approximately to also of risk revenue a approximately

letter Form on This directly current incremental related we’d operating free the use to provided million like report unlevered TSA. XXXX our related strategic forecast. shift mentioned in see three-year our We in free for shareholder expect recognized that flow liquidity in XXXX. the model. our to our will forecasted forecast are previously Please our cash included operating $XXX X-K moment year a operating and two of is We full And that main October cash flow take use fourth XXth discuss cash and available the units revenue to of quarter to not to areas.

the of structure assure stringently contemplated First, normalize the best needed payments. the our revised sets structure, actions to debt such the resulted under which we less in favorable capital. the opportunity stretching us manage Under debt our in normalization supply supplier success the TSA, capital Under will for compliance, capital working capital working which previous as than in covenant to supplier XXXX. relationships for we chain implementation including up turn ABL, certain of

usage TSA. the the be The contemplated over And of of approximately the to associated the transactions with cash by operator call the turn will I second that, fees payment million will $XX now Q&A. with area the for for is

ahead. [Operator D.A. Davidson. your line you. comes question Matt from Summerville of go open. first is Instructions] Matt, Our Please Thank

up. fourth in has has given of I course, we that disclosure, many newer appreciate. quarter, big help you ship frame a a if ATMs? the XX,XXX lot And recent looking in heard pretty don’t guys history you in of Diebold guys. happen for Again, been ATMs, has Jeff, It’s a XX,XXX a number. to unit to have with that units we you which, period history What Thanks. be where to ship you’re seems right, which But just shipped quarter? there to

quarter. finished here’s approximately units goods And to a we the there’s of we’re see XX,XXX Matt. those the number going see and customers carrying that we delivery end of But yet. to are inventory. third been, that the units and relative at That has – for are you’re – XX-Q high when XX-Q, the There waiting to haven’t filed

So goods finished we’re high inventory inventory. in and

out that you with recognition. the begin into converted ready XX,XXX revenue inventory So be to fact units of there’s

delivered. deliver significant number your for a So you that that’s the X,XXX XX,XXX? and customers. how built, get of to portion you normalized incremental question, you that then it’s inventory and to already back convert answer of do to waiting produced an You to have hit a delivery be it more And

out them to coming hit shipping we’re Germany, we shipments we’re very of to in Now, about soon. about window order the have the one have for of that Yeah, to why is Germany units transit. fairly to we potential in have – of That’s out risk, numbers. any things are America, soon those when the closes have by North talking

are able the the the risk recognition. get but with just that being Many being to is sitting units associated delivery the for recognize miss of – if revenue revenue those recognition and to didn’t is those that we If customers So quarter, means revenue to produce, those not customers, revenue units. waiting and of installation. units, point our the our in able for fourth

installed end So variable. that’s get is the before always we Can an area them year? that the of

And from you’re maybe you a bit by do both standpoint? a incoming you. And helpful. retail, bit just of little Okay, more thank would dissect region maybe little rate can you. and ATMs great. and be a that seeing just what Octavio bit little deeper if order then detail, a dive. on Thank maybe an That across That’s

Sure, Matt.

So let retail. me start with

know So our if during QX, expectation. our you see was our you clearly below QX unit deliveries and comparisons the for self-checkout and

order for strong intake However, to be self-checkout. continues

again disclosed for And normalize as that we of that a supplier were modeling, there relationships from we information inflow were material be faster the probably as we modeling once sure honest, making hoping a as feel is costs. we adequate. we it’s normalization said of before, were So retail see self-checkout product improve our relationships confident in that, of side, what than help I we And demand opportunity on But minimize we’ve macroeconomic customer our I’ve fairly had. environment, regardless still self-checkout. supplier and journeys solution ample the to

starting continuing of those And So self-checkout there grow will now for you know in strong Europe chance us good we’re deployments significant been units. always be, have I but us, very think, a in are has you is demonstrate our which to and self-checkout us to we’re the most groceries, US progress how US, help which the in the will there. challenging know – market probably also every solutions capable and significant making as world,

I the On very strong. across continues HCM the that would side, Americas to demand be tell you

that in down financial to with now know, major institutions, banks the say, institutions – large quickly start trend the common install and large would the across market. as US a I very the the is once the rest So recyclers all you all trickles to is, financial technology installing of

Latin long-awaited So strong we see continues the would technology strong. as to cycle be very US entering be this America, where you know, and recycling you mainstream. become know very Brazil continues to

it’s – the trend that fleets. multiple from Europe remains being So clearly volume Europe, consolidation to and key of say across – have service market service one in Americas are I that strong perspective, strong and the know Americas. for profitability reasons, is see would that strong attach and the we you them continue the we we our the of

that of instances first countries the seeing now in France. like We’re

it We don’t also So it shrink. grow. a overall, to Europe market. to remain that expect expect don’t we continue see will flattish to I Again,

you And a our have we is Asia flattish Pacific XX% of market less with revenue should than it filled market. remain is a know, that opportunities. as So fairly where

growth really more can and got it’s contract address we currently a in address. we’re one of redoubling ago manufacturing and what our reasons than years some That’s India market efforts to know four in opportunity of we producing area. that starting why the in some exited had start you market some India, So that that

all the ability what’s But the into revenue future. where our general view our that’s that remain to So It’s is orders backlog would really say, terms, I driving of general the that’s, – stable. overview. that turn now in

that venture India India, on is Pacific strategy? can in make what the make bit manufacturing about can in idea if market. more reentering talk broader your mean in just you. going India, this to squeeze you’re for that Thank India that there. To detail base – of it’s if more Asia joint a that follow-up for your the little China? the you Is or a Octavio, point latter, in does I in for And there the

Yeah.

you brief offline and in take cost you markets for first with to India and probably product. beneficial. that is So and But of if world, as actions, will believe initially, ATM We going of for want. a and structure in some this a some we’re require do can the India the manufacturing cost very build different but components can core we know we Series, be I’ll step, also be cost different one the in of just the you of DN later, biggest Matt, address India those

knows. that Indian just the this and the expand planning India test who – we And short-term, we’re something elsewhere. initially, in to market building market. be that decide a maybe exclusively Indian for the of it’s is then for we But this So it’s

you, guys. Thank it. Got

Sure, Matt.

Thank you.

Chung line go question of Please next comes Our JPMorgan. from your Paul, Paul is open. ahead.

Hi. Thanks question. for taking my

you could you seeing. impact mix on expand you’re the if kind So product know of

you mentioned lower America quarter. in units and the know here You North LatAm in margin some

do of how Is can if And mix into kind our think in kind talk kind kind year? made locked the backlog? the of as or of backlog next the backlog the about and margins higher we also of non-cancelable up orders result? of and know to You firm you and ASP product a mix about the year end

Yeah.

was looking So Kartik, at thanks, that’s – sorry, queue. the Paul. I question

Sorry, Paul, that. about

of is and ratios. just across quarter, So, quarters, about be again, several that QX this Paul differ product think of our cash coming know versus unit in and that you manufacturing into the turned type being particularly our time, we’re itself given any seeing low-XXs from that trend is from than into in converting in the high-value unit the little our a Asian over basically a the we what should appropriate slower up it dispensers might That other, deliver goal recyclers you have In the know over and recyclers know dispensers have the different dispensers, one you mid-XXs the cash you is know recyclers. you fairly different quarter, the we know QX think Germany I hitting that In but cash is primarily significant in mix mix both should high, down the And return think variables, cash appropriate or is one of more where long-term, during of unit markets you globe think might our how you cash mix one a know bit stabilize should you cycle we shipments go dispensers Again, to revenue. about know of you think coming the is we of normalized it’s revenue. to mix. you low-XXs time any I it those stable. should know

As at been to units challenge now the chain supply us, they’ve their a remarks. far know, anything orders our Because, of and firm we’ve our as we customer and get working biggest customers, honest, the to why with that’s thank PO. that very them prepared as normalize don’t installation you delivery all with remember, schedules, be had customers working schedules. my we towards wanted I end our The without patient manufacture right their is to accommodating

our have with schedules to is continued very our customers I self-checkout adjusting ATMs schedule. once meet think they Series everybody devices. us And to again, DN work thankful you our our that delivery that their I’m know happy or have

doing cancellations. our any we in you haven’t we We and work seen backlog. – have continue that. we But adjusting we our seen will order continue customers and So with we very no know could to-date, closely continue our schedules, working cancellations have –

important it’s think reiterate I just me Paul, for falls. to Yeah. that

that say the to in the there’s just want that, risk the not is remember just I demand. supply thing chain, to in So

in hit because It’s still So revenue inventory XXXX. do projections our recognition in quarter. not and up early They’ll unit if we for because revenue in could XXXX, to in there. time It’s XXXX. not They’re produce of them then and not end recognize in to probably the we fourth them very and demand. get

cuts the your firm here. just Got post-Wincor follow-up, over five quite past some areas about cost-cutting mean a just initiatives can you. know And incremental talking then been acquisition. you the where have find for years I a aggressive on cost

out kind of of any model. know and longer-term think you And redundancies? model operating seeing So know also in comments normalized lingering the you the where just about we level then you OpEx And are right to the longer-term kind you’ve as what’s kind gross of absolute start margins of there? laid

Yeah.

Let me start, and then Octavio can in. fill

mean get significantly for And I outsourced digital-first, a side, to an we OpEx that’s as relates back digital where from manual help transactional operational to And especially the versus opportunities. indirect be heading perspective, areas solution doing on we’re that in we’re to being us. want always So processing. spend. And going for looking what

put in incremental rigor to waste. We know have at you eliminating bid some – spend, and third-party relative indirect we looking processes spend,

So we efficient And know about we – have opportunity from people perspective, it’s of systems spend. you with and people the a then continued use process. have indirect being in person –

when we So being think will model little be our said, all goal, our goal we OpEx. a aggressive is in than that our we reach more where

number, We a million $XXX million are annualized a quarter. $XXX targeting OpEx

right, strategic it’s those you inflation. And into processes, haven’t – our once that, don’t ultimate you digital goal. identified but operating wage that experience We operating model, not in that’s get then so

important to So us as forward. that’s we go

of looking So a year we’re directly, $XXX million to answer a $XXX for OpEx or question a quarter. your million

That’s helpful. go free Thanks. know – then you And cash really lastly ahead.

Go ahead, Paul.

Sorry. Go ahead.

Okay.

know where also free moving I cash finding as flow so are but mean, do working free there? this well? know big outlook what yeah very estimates you structure, are cap? any ‘XX. there’s some kind a you that flow in backlog for on cash have levered key, cap get on jump conversion pieces Thanks. free unlevered cash in of inventory Just have And but and in How longer-term. you is I I efficiencies large you just flow some of

Yeah.

with I’ll unlevered. So start

modeled still with about $XX restructuring million. ‘XX, is to mid-XXXX to get We goal So have XX be when transformation. done our we – by

restructuring million free restructuring latest it information see our the ‘XX, approximately of through midyear in our want of be modeled world pick still be we would of to get to up then million in to for know out reconciliation world. cash flow $XX is, working documents, $XX quarter, and million. leaves that $XX we to are transformation you there out then disclosed want be non-GAAP That more we And cleansing to third the XXXX. normalized us Where in GAAP transformation can we’ll the when You relative the capital.

days, back the by We we’re stressed have, and normalize accounts TSA, to necessity going to payable get that’s in ‘XX. finalizing conjunction with hitting what’s

So as to working ‘XX, go we expect into be more relative capital. to we normalized

can disclosures. our You in see it

in have gets We capital. that into in of will some cash EBITDA take model that us to – From and obviously, be a ‘XX the debt, transformation on but up, an an little believe ‘XX, normalized in and restructuring we’ll bit out free the of incremental are we including of We’ll business greater an will unlevered increase going be of going what inventory rates a than flow interest at as XX%. TSA. level percentage we perspective, are payment working

We’re modeling into as interest ‘XX. [$XXX [ph] move payments in somewhere we million] the

Thanks. Very helpful.

you. Thank

comes question Northcoast next Our of Kartik from Research. Mehta

about – This that believe end the behalf questions that? that. cadence of answered Could just color some you working the that expect of planned you how of Boyle little Kartik. Northcoast million that? future view maybe you Good rate question bit I the of that how through forward? more that? you about morning, on calling be back through expect to $XXX I kind everybody. backlog, a for backlog I we Or with around work had to kind you should to Or on that of through going had working Research, the give us, Jack by of you regarding stated but know us a already is quickly year, do Is

Yeah.

we’re – how decisions an in you let and So in the solidify question want I to me let through changes walk the the of but why to we’re long-term post, run. making it’s our making interesting business of And the that you be short-term company. that some to order try me

would and way predictable. a you we’re for our working manufacture what our That manufacturing past an units cash down of delivering at – about always next makes XX,XXX it ideal year, would reality inventories if units of the and of quarter. with know be little help we installations, at it beginning to structure, end that, our year, more we ramping think on you ideal If flow, the XX,XXX planning the year. constrained were world, be planning deliver, at capital our is should be would would help us up The it with life based every the the

of made that So Matt for end year. – at I My asked somebody numbers to is the you know start think bigger then know slower starts that. the the and you goal year, us, then to to normalize

will we to start XX,XXX probably But now Probably and on? some work be down still if down start working be into cadence, working that from it’s units know it getting to need it quarter easy will not. backlog It the You every very done. predictively.

over the a very almost quarter in velocity our we to Once quarter way backlog or if roughly you we That next a product Right with is, hands would high we will is normalized improve as start is velocity a is five quarters year having than what demand listen say revenue or back revenue things chain. XX% we I future, backlog, of in the you – that probably for would my we you having number. of XX% it have our backlog So to know have time. be of you and little we need year’s now, That is of normalize quarters keep down our probably or the we know working to our a get our supply rather know to three the – six end given books we said. into to going foreseeable the that rate. Remember, in-house. at my of goal three any months in from the having what accelerate of goal customers. there,

So helpful. I was hope that

Yeah.

that muted and an that was go Sorry, more I an missed detail. maybe you just in to you it Maybe Was appreciate there. of can know issue? flat. detail was a little perhaps why it I I issue And be to additional continuing chain as supply

Why you remember yeah. backlog backlog – it’s was Again, know flat?

So much didn’t orders combination coming quarter, during we it’s converted. revenue we a we convert being the you again, that were for it know and just in more what as and hoping meant of than have orders revenue as

us allow So the they around math to down didn’t that, ramp the backlog.

ability more accelerate revenue. less orders yeah, backlog into combination conversion and So a the of to of it’s

Yeah, entry for quarter exceeded for recognition every units. ‘XX, order in revenue has

that’s So And building XX,XXX and been modeled inventory. why in in have that’s we – we’re that’s carrying the why that we what’s backlog. units

So produced in the what revenue to has. of model amount inventory is convert have what know that X,XXX that certain to those fourth plus coming to units would and through And down quarter work and recognized. units and you a the needs happen That’s revenue backlog.

in we’re why units. our and down, produce remains ability that’s So recognized high exceeded the be to backlog projecting revenue demand for but the has to

Thank right. you, both. All Appreciate.

Sure.

Thank you.

line from Ana go Goshko is Bank open. Our America. Please next of of question comes Ana, ahead. your

Thanks Hi. much. very

think fair? the really to Is kind your listening kind maybe the the the of that for correctly, is million, hearing and aspirational case million So that new comments. takeaway of to I’m expectations set quarter now. know $XXX I is just from base And you $XXX is EBITDA fourth the just

operating operating cleansing was wasn’t – What our was forecast. with forecast. we it our TSA documents $XXX So the in million It guidance. provided the is the

So that’s where we’re operating to.

conversions where is the What $XXX to provided their product. shipping We’re look in at potential today million. units closed window as risk to a was we the we’re relative operating

that but targets, changed really high we but XX%. to could risk the And our the ATMs we’re that relates unit providing. to targets, saying and in potential as it closing. there’s So we’re time be those for as is is haven’t There’s the what achieve window still risk

potential So today’s we’re those units in call. providing to the risk

the regard the the And kind of of Okay, quarter. term headwinds thank facing a to so conversion in supplier of you. lot with then usage there’s you’re or fourth problems relationships

Or Is know you supplier of really behind about a what So can is more you the component? is it be issue that? concrete a it – specific couple relationships?

about us is this wanted didn’t to The under that a talked where to wanted get something we a we have liquidity is ABL, when close liquidity. put of able access in year a have restrictive position and to structure, get being to old probably we to we is, capital issue now even covenants an for to point not we’ve our

in So especially we’re situation the when that in to happened us, now.

related But the think why our increasing now puts liquidity, to increasing puts on So we’re it inventory point pressure pressure payable. accounts of significant is XX,XXX of need last because units which – inventory, would really really put covenant right, we those have leverage move to situation on have up. is in we that, historically, the in is compliance

current when would ended – But month, supplier higher, we right, would we what lot and suppliers. We Historically, XXXs the as we pushing So And facility, restraints even in the pay mid-month, in spend, really we – a then vendors. pay those up XXs, push the put payments, of indirect doing credit we’re payments. pressure of that our stretching starts up into twice high would as of XXXs. supplier hitting under dependent timing. month and critical a on it on the is, maybe end but DPOs XXs component old be that’s the

So a shipment. requiring or shipment when get to point limiting they getting where hit, component then payment they’re were suppliers before right,

a don’t and we that. TSA So XX that to and process, to need it’s within where get we electronic us out do, all DPO back back mean – of has normalized the to component that is If were of want that, caused we suppliers. just critical we And that’s to – key XX to component – interruptions allows payment and what get that issues to interruptions the I we one. do component chain. not our it’s have supplier these supply get

Okay, got it.

improve supply less the with suppliers it’s that trying more to of your a really and have sort So with that industry issue touch – chain related relationships you’re to of you

let on it expand let so Ana, at said. what me let Ana, put me you Well, know, on expand – as Jeff yeah, me

battled the we’ve So throughout year, challenges. different

in constrained of go the as the we else just components we’re were the everybody world. same core still know you if the So of back you to know on year, we beginning availability

As the that progressed, year has components. of improved availability we’ve

them with as work condition achieve in normalize a normalize availability that, that we for us payments. we We we’re And need relationships. efforts, as our to those and us a payments, which need it’s things the trying those that steady the around have why suppliers, materials that other normalize important so product to steady predictable flow cadence know material in allows to you order shipments, is shipments, so to that, there, all because relationships with is our to to Those However, that to we payment normalize it there. conclude way. of have the of of terms. raw have we is now that, conditions. are two refinancing conclude a that’s we is And One,

is first solve overall the the is part itself. equation, of starting So in which market to availability the

relationships Now you of steady internal are we’re a we steady situation our our normalizing working we to suppliers. know to them as suppliers, to seen thing. them still have with those know of – disclosures with a Others, state. in some solve again, need get you multiple now they’ve them unique And

quarter. came great. so finally, cash unlevered free And target flow below the just know in I then third the that was for what Okay,

put You pressure the Are Is year. issues still year the full going additional meet relationships. target? target that and for the same we’re flow payables your to with that have to full of free cash the any ability unlevered these deciding especially on the supplier

built the of the liquidity into transactions the positions those what’s payable free TSA. the by That cash provided through unlevered is target flow normalizing

being unit us payment, year back moving to So conversions. to put achieve will relative relative our normalized goals that best to in end by to the supplier into those is and possible position goal ‘XX positions

Okay, great. Well thank you very much.

Ana. Sure,

Thank you. Sakon And CreditSights. comes from final of our today from question Peter

I the for Could good and on second order to share and that with most year follow-up gave this you comparable last recent, the product quarter, first year? us you order numbers. the wanted activity to guess, I in morning. entry just Hi, the third quarter

provided third the asking provided for quarter, question. third the order entry I entry. understand the you’re I’m for we’ve We just to information. backlog think For Because the quarter? don’t trying order

they back-end entry. order theoretically, can So

it. Got

And in it fourth, million second in and first X% I second guess $XX in quarter. quarter, down was guess the have quarter. call I the So I it let’s the second

revenue the decline with – So

would I say Yeah, –

[inaudible] is a revenue entry.

So no, we did this not quarter provide in order filing. third entry

– provided through offline entry Christine let’s can that. backlog effectively as walk So the this provides that you I information it take information. Well and we said, the order

that see charging, any longer And Is for focus Fair EV enough. the didn’t no the update. a I company?

So one charging Peter, on leveraging continues those where service you we our EV areas of know are focused footprint.

to that We XX,XXX units have set will we year the up contract. the end under with

think we’re that. on on that I track

goal We’re services other levels require – where same our want EV and know as you distributed where remain availability strict we for my is industries areas you service technology our continue high to leveraging footprint. charging footprint

on So we don’t industries. our based is making everything that what service about a as opportunity to charging. we’re very continues we I you But across want that do That’s make attractive how we footprint want just know different clearly to sure to about continue leverage market better thinking do evolve.

did X, If go we some our to had on the that we shareholder of you EV. in Page wins mention letter

with preparing you Eastern alpitronic. know So six services in now European countries we’re

working the And remain on on we station. to contract XX,XXX a XXXX. meet track of contract chargers service petrol a are We with under Pan-European by end

banking in partner keep see that walk a want yeah, them. that, our you as to you model can how a business – want part do they part unique revenues define actually We that’s of But know shaping a there. mind and service we’re areas details of with Page besides clearly that developing start just letter asset you very would the to we be is It’s want on so X. so shareholder leverage this if and retail be recurring, Christine really is we to market, you can And and EV a their service technologies be the of have. in gladly that are business. details, a have XX% or going other of more the charging doing So we service companies we forecasted. We lot that infrastructure can in you future. an to in for billion more want model we a work I besides it $X.X business our But self-checkout. it’s what other that to to strategic more had know ATMs you know that industry through and still in

also is we’re looking EV charging we’re but one, other options. looking So alternatives the market. at in for those

if through you So you some ideas walk know in. those interested can of Christine, you’re

may. Thanks. What target you do do the transaction? to I date if conditions have new you question, last And need close my closing financing? And a for to the other meet

the Yeah. to be the X-K attention financing upon to it would relative there. we the what From perspective, your provides SEC and based regulations. We the I say filings draw to careful need TSA

point there X-K. is what would to the do just So you we

said But in we you know remarks our as –

end December. of the By

By end the December. of

the end – By of

see in you’ll the document. And that

we have currently time, further you. At this Thank no questions.

Diebold So of I’ll turn to Marquez, over Nixdorf the begin. call to Octavio CEO back

today’s Matt, operator. again. at thanks next during you investor our you participated We And in call. Thank call. conference to who earnings thank and look upcoming seeing our listened everyone you, forward to and

concludes this today’s gentlemen, and Ladies call.

lines. disconnect You may now your