NCR Corporation (NCR) Bundle
A Brief History of NCR Corporation
NCR Corporation, a leader in consumer transaction technologies, has undergone significant transformations and growth since its inception. Established in 1884, NCR initially focused on manufacturing mechanical cash registers. Over the years, the company expanded its product line to include automated teller machines (ATMs), point-of-sale systems, and software solutions for various industries.
Recent Developments and Financial Performance as of 2024
As of September 30, 2023, NCR reported total revenue of $2.017 billion for the third quarter, an increase from $1.972 billion in the same period of the previous year. For the nine months ended September 30, 2023, total revenue was $5.894 billion compared to $5.835 billion in 2022, reflecting a modest growth of 1% year-over-year.
| Financial Metric | Q3 2023 | Q3 2022 | YTD 2023 | YTD 2022 |
|---|---|---|---|---|
| Total Revenue | $2.017 billion | $1.972 billion | $5.894 billion | $5.835 billion |
| Net Income (Loss) | $(124) million | $69 million | $(95) million | $77 million |
| Adjusted EBITDA | $404 million | $380 million | $1.095 billion | $990 million |
| Earnings Per Share (Diluted) | $(0.91) | $0.46 | $(0.77) | $0.45 |
Key Financial Metrics
For the nine months ended September 30, 2023, NCR's Adjusted EBITDA reached $1.095 billion, up from $990 million in the previous year, showcasing a growth of 11%. However, net income from continuing operations showed a loss of $95 million compared to a profit of $71 million in the same period of 2022, indicating challenges in profitability.
Debt and Capital Structure
NCR's long-term debt as of September 30, 2023, amounted to $7.416 billion, reflecting a significant increase from $5.561 billion at the end of 2022. The company's interest expense for the third quarter of 2023 was $85 million, up from $74 million in Q3 2022, primarily due to higher variable interest rates on its debt obligations.
| Debt Structure | Amount Outstanding | Maturity |
|---|---|---|
| Senior Secured Credit Facility | $1.801 billion | 2028 |
| 5.125% Senior Unsecured Notes | $1.2 billion | 2029 |
| 6.125% Senior Unsecured Notes | $500 million | 2029 |
Market Position and Strategic Initiatives
NCR continues to capitalize on its leadership in the self-service banking and retail sectors. The company reported a 4% increase in Self-Service Banking revenue for the third quarter of 2023, driven by recurring ATM as-a-Service arrangements. Additionally, the company is focusing on cost optimization and enhancing its service offerings to improve margins.
Research and Development
Investment in research and development remains a priority for NCR, with R&D expenses totaling $175 million for the nine months ended September 30, 2023, compared to $164 million in the previous year. This investment reflects NCR's commitment to innovation and maintaining its competitive edge in the technology sector.
Conclusion
NCR Corporation's trajectory reflects a blend of historical legacy and modern innovation. Despite facing financial challenges, the company's strategic focus on technology and service solutions positions it for future growth in an evolving market landscape.
A Who Owns NCR Corporation (NCR)
Major Shareholders
As of 2024, the ownership structure of NCR Corporation includes a mix of institutional and individual investors. The largest shareholders are typically institutional investors, which hold significant stakes in the company.
| Shareholder Type | Shareholder Name | Percentage Ownership | Number of Shares |
|---|---|---|---|
| Institutional | BlackRock, Inc. | 8.5% | 11.9 million |
| Institutional | The Vanguard Group, Inc. | 7.2% | 10.2 million |
| Institutional | State Street Corporation | 5.1% | 7.3 million |
| Institutional | Wellington Management Group LLP | 4.8% | 6.8 million |
| Individual | Mark Benjamin (CEO) | 0.5% | 0.7 million |
| Individual | Other Individual Investors | 74.9% | 106.4 million |
Institutional Ownership Trends
Institutional ownership of NCR Corporation has fluctuated over the past year, with a gradual increase in shares held by major funds. As of September 30, 2023, the total institutional ownership was approximately 25.1% of total shares outstanding.
| Quarter Ended | Total Institutional Ownership (%) | Number of Institutional Shares (Millions) |
|---|---|---|
| Q1 2023 | 24.5% | 34.8 |
| Q2 2023 | 25.0% | 35.5 |
| Q3 2023 | 25.1% | 35.7 |
Preferred Stockholders
NCR Corporation also has Series A Convertible Preferred Stock, which carries certain rights and obligations. As of September 30, 2023, the redemption value of the Series A Preferred Stock was approximately $276 million.
| Type of Preferred Stock | Shares Outstanding | Redemption Value | Dividend Rate |
|---|---|---|---|
| Series A Convertible Preferred | 0.3 million | $276 million | 5.5% per annum |
Recent Ownership Developments
In recent months, NCR Corporation has undergone significant restructuring, including a Spin-Off that has affected its ownership distribution. The Spin-Off has allowed for the creation of a new entity, Atleos, further diversifying the ownership landscape.
| Event | Date | Impact on Ownership |
|---|---|---|
| Spin-Off of Atleos | October 16, 2023 | Increased liquidity and potential new share offerings |
Conclusion on Ownership Structure
The ownership of NCR Corporation is characterized by a significant presence of institutional investors, along with a substantial portion of shares held by individual investors. The recent changes in corporate structure and market conditions are likely to influence future ownership trends.
NCR Corporation (NCR) Mission Statement
Overview of Mission Statement
The mission statement of NCR Corporation emphasizes its commitment to delivering innovative technology solutions that empower businesses in the retail, restaurant, and banking sectors. NCR aims to enhance customer experiences and drive operational efficiency through its advanced software and hardware solutions.
Core Values
- Innovation: Continuous improvement and development of technology.
- Customer Focus: Prioritizing customer needs and satisfaction.
- Integrity: Conducting business ethically and transparently.
- Collaboration: Working together as a team to achieve common goals.
Financial Performance
As of September 30, 2023, NCR Corporation reported the following financial metrics:
| Metric | Q3 2023 (in millions) | Q3 2022 (in millions) | Change (%) |
|---|---|---|---|
| Total Revenue | $2,017 | $1,972 | 2.3% |
| Net Income (Loss) | $(124) | $69 | (280.0%) |
| Adjusted EBITDA | $404 | $380 | 6.3% |
| Recurring Revenue | $1,305 | $1,222 | 6.8% |
Business Segments
NCR operates through several key segments, each contributing to its mission of providing tailored solutions:
- Retail: Focused on enhancing customer engagement and operational efficiency.
- Restaurant: Providing solutions that streamline operations and improve customer service.
- Digital Banking: Offering innovative financial solutions to enhance banking experiences.
Recent Developments
In October 2023, NCR announced a significant organizational restructuring, following its spin-off of Atleos. This move aims to sharpen its focus on core business operations while enhancing service delivery across its segments.
Market Position
NCR holds a strong position in its industry, leveraging its technology to serve a diverse customer base globally. As of September 30, 2023, NCR's geographic revenue distribution was as follows:
| Region | Q3 2023 Revenue (in millions) | Q3 2022 Revenue (in millions) |
|---|---|---|
| United States | $1,179 | $1,127 |
| Americas (excluding U.S.) | $194 | $193 |
| Europe, Middle East, and Africa | $444 | $403 |
| Asia Pacific | $200 | $249 |
Future Outlook
NCR's strategic focus on innovation and customer-centric solutions positions it well for future growth. The company plans to continue enhancing its product offerings and expanding its market reach in the coming years.
Conclusion
The mission statement of NCR Corporation encapsulates its dedication to innovation and customer service, underpinned by strong financial performance and strategic market positioning.
How NCR Corporation (NCR) Works
Business Model
NCR Corporation operates primarily in the technology sector, focusing on providing solutions in the areas of self-service banking, digital banking, and payment processing. The company generates revenue through a mix of product sales and service agreements, with a notable emphasis on recurring revenue streams.
Financial Overview
As of the third quarter of 2023, NCR reported total revenue of $2,017 million for the three months ended September 30, 2023, compared to $1,972 million in the same period of 2022, reflecting a year-over-year increase of 2%. For the nine months ended September 30, 2023, the total revenue reached $5,894 million, up from $5,835 million in 2022, also representing a 1% increase.
| Financial Metrics | Q3 2023 (in millions) | Q3 2022 (in millions) | Change (%) |
|---|---|---|---|
| Total Revenue | $2,017 | $1,972 | 2% |
| Net Income (Loss) | $(124) | $69 | (280%) |
| Adjusted EBITDA | $404 | $380 | 6% |
| Recurring Revenue | $1,305 | $1,222 | 7% |
Revenue Breakdown
NCR's revenue is segmented into various categories, with service revenue accounting for a significant portion. For the nine months ended September 30, 2023, service revenue was $4,237 million, representing 71.9% of total revenue, while product revenue accounted for $1,657 million, or 28.1%.
| Revenue Type | Q3 2023 (in millions) | Q3 2022 (in millions) | Change (%) |
|---|---|---|---|
| Product Revenue | $560 | $590 | (5%) |
| Service Revenue | $1,457 | $1,382 | 5% |
Segment Performance
NCR operates through several key segments, including Payments & Network, Self-Service Banking, and Digital Banking. As of the latest financial reports, the segment revenues showed the following performance:
| Segment | Q3 2023 Revenue (in millions) | Q3 2022 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Payments & Network | $357 | $336 | 6% |
| Self-Service Banking | $666 | $640 | 4% |
| Digital Banking | $58 | $60 | (3%) |
Cash Flow and Liquidity
For the nine months ended September 30, 2023, NCR reported net cash provided by operating activities of $728 million, compared to $245 million for the same period in 2022. This improvement reflects enhanced operational efficiency and cash management strategies.
| Cash Flow Metrics | 2023 (in millions) | 2022 (in millions) |
|---|---|---|
| Net Cash Provided by Operating Activities | $728 | $245 |
| Net Cash Used in Investing Activities | $(305) | $(298) |
| Net Cash Provided by Financing Activities | $1,879 | $93 |
Debt Obligations
As of September 30, 2023, NCR's total long-term debt stood at $7,416 million, with a weighted average interest rate of 7.65%. This is an increase from $5,561 million in long-term debt at the end of 2022.
| Debt Type | Amount (in millions) | Weighted Average Interest Rate (%) |
|---|---|---|
| Short-Term Borrowings | $113 | 7.47% |
| Long-Term Debt | $7,416 | 7.65% |
Stock Performance
NCR's stock performance has been affected by its financial results, with a reported diluted earnings per share of $(0.91) for Q3 2023, compared to $0.46 for Q3 2022.
| Stock Metrics | Q3 2023 | Q3 2022 |
|---|---|---|
| Diluted Earnings Per Share | $(0.91) | $0.46 |
| Weighted Average Shares Outstanding | 140.9 million | 137.0 million |
Conclusion on Operations
NCR continues to adapt its business model to meet changing market demands, focusing on technology-driven solutions while navigating challenges in maintaining profitability amidst rising costs and market competition.
How NCR Corporation (NCR) Makes Money
Revenue Overview
NCR Corporation generates revenue through two primary segments: Product revenue and Service revenue. For the nine months ended September 30, 2023, total revenue was $5.894 billion, an increase of 1% compared to $5.835 billion in the same period in 2022.
| Revenue Component | Q3 2023 (in millions) | Q3 2022 (in millions) | Change (%) |
|---|---|---|---|
| Product Revenue | $1,657 | $1,720 | (4%) |
| Service Revenue | $4,237 | $4,115 | 3% |
| Total Revenue | $5,894 | $5,835 | 1% |
Product Revenue Streams
NCR's product revenue primarily includes sales from hardware, software licenses, and related services. As of Q3 2023, product revenue decreased by 4% year-over-year, driven by declines in ATM, Self-Service Checkout (SCO), and Point of Sale (POS) hardware sales. However, this was partially offset by growth in software licenses and Bitcoin-related revenue.
Service Revenue Streams
Service revenue encompasses a variety of recurring revenue streams, including:
- Recurring banking services
- Payments processing
- Software maintenance
- Professional services
For the nine months ended September 30, 2023, service revenue increased by 3%, reflecting the strategic shift towards recurring service arrangements, particularly in Retail and Self-Service Banking segments.
Recurring Revenue Growth
Recurring revenue plays a significant role in NCR's overall revenue structure, accounting for approximately 64.4% of total revenue for the nine months ended September 30, 2023. This includes:
| Category | Q3 2023 (in millions) | Q3 2022 (in millions) | Change (%) |
|---|---|---|---|
| Recurring Revenue | $3,796 | $3,618 | 5% |
| All Other Products and Services | $2,098 | $2,217 | (5%) |
Segment Analysis
NCR operates through several segments, each contributing differently to overall revenue. For the nine months ended September 30, 2023, segment revenue was as follows:
| Segment | Revenue (in millions) | Change (%) |
|---|---|---|
| Retail | $1,696 | 1% |
| Hospitality | $696 | 1% |
| Digital Banking | $423 | 5% |
| Payments & Network | $1,013 | 5% |
| Self-Service Banking | $1,940 | 1% |
Cost Structure and Profitability
NCR's cost of products sold for the nine months ended September 30, 2023, was $1.399 billion, while the cost of services was $2.864 billion. The gross margins for these segments were:
| Segment | Gross Margin (in millions) | Percentage of Revenue |
|---|---|---|
| Product | $258 | 15.6% |
| Service | $1,373 | 32.4% |
Adjusted EBITDA
For the nine months ended September 30, 2023, NCR reported an Adjusted EBITDA of $1.095 billion, representing an 11% increase from the previous year. The Adjusted EBITDA by segment was as follows:
| Segment | Adjusted EBITDA (in millions) | Change (%) |
|---|---|---|
| Retail | $352 | 18% |
| Hospitality | $172 | 25% |
| Digital Banking | $160 | (7%) |
| Payments & Network | $302 | (2%) |
| Self-Service Banking | $476 | 18% |
Debt Obligations and Financial Position
As of September 30, 2023, NCR's total debt stood at $7.65 billion, with cash and cash equivalents of $675 million. The company had a borrowing capacity under its Revolving Credit Facility of approximately $833 million.
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