Dieboldorporated Earnings Call Nuggets: Retention Programs and Gaining Share on a Global Basis

Diebold Incorporated (NYSE:DBD) recently reported its fourth quarter earnings and discussed the following topics in its earnings conference call.

Retention Programs

Ryan Augustitus – Northcoast Research: Have there been any retention programs put in place to keep management personal?

Henry D.G. Wallace – Executive Chairman: Ryan, this is Henry Wallace, I will answer that. The answer is no. Our view is on retention that the best way to retain our people is to get the business moving forward and upwards and that’s what we are focused on as a team. That doesn’t mean to say we might not loss one or two people, that’s always a risk but paying people to stay when the mindset is to go because they are unhappy with the company isn’t a good strategy. So, our aim is clearly to get this business moving upwards and onwards a place where people get up in the morning and want to come and work because it is a company that’s going places and that’s our real focus here.

Ryan Augustitus – Northcoast Research: And then one more question. What is the current environment like for acquiring the electronic security businesses?

Bradley C. Richardson – EVP and CFO: Ryan, it is Brad here. Certainly as you are aware we’ve looked at several opportunities, we’ve gotten very fair along in those opportunities in one particular we ran into evaluation issue. So, I think the point being is there are lots of opportunity out there. We are focused clearly on looking in the electronic security space to acquire a beach head. Again there are multiple opportunities. These are tucked away in private equity portfolios or they are family-owned and we see good opportunity. We require a beachhead and then have several bolt-ons thereafter. So, again there is lots of opportunity out there. I would just also make the point, that again, as Henry mentioned as I mentioned, I mean we have strong balance sheet capacity. This is a core strategy that’s been reviewed with the Board and so this is something that we will move forward with ahead of a CEO coming on board as the opportunities come to fruition.

Gaining Share on a Global Basis

Gil Luria – Wedbush Securities: So, I think you went through the fact that last year you actually gained share on a global basis. Going forward, especially, as you think of the emerging markets, Middle East, Africa, Asia Pacific, do you have an opportunity to gain share? You went through some issues a couple of years ago around FCPA and divesting and strategically aligning the European business. Going forward into the next couple years, do you now have an opportunity to possibly gain some shares as your big U.S. based competitors going through the same issues?

George S. Mayes, Jr. – EVP and COO: Yes, this is George. I think when you look at our ability to gain share, we’re very excited about our new next-generation ATM. We believe that we will be able to differentiate ourselves in a market based on total cost of ownership, reliability and some of our advanced security features as well as if you look at the success that we’re having with our Flex ATM units around the globe. We think there is additional runway there as well as emerging markets move towards deposit automation.

Gil Luria – Wedbush Securities: Then in terms of electronic security, giving you more of recurring revenue. Of you service component within security, what portion of that is recurring maintenance mongering type revenue versus the one ton oriented installation professional services type revenue. ‘

Bradley C. Richardson – EVP and CFO: Gil, it’s Brad. I mean the electronic security business profile that we have is very similar to the total company with about half of the revenues of the total security business being services locked up under typical type maintenance type agreements and monitoring agreements.

A Closer LookDieboldorporated Earnings Cheat Sheet>>