2023-03-17 05:50:14 ET
- Diebold Nixdorf ( NYSE: DBD ) shares plunged 23% premarket on Friday after the company cited "near-term pressure on liquidity" in a lender presentation .
- The connected commerce solutions provider warned that the COVID-19 pandemic has adversely affected its operations and financial results and may continue to do so. Financial performance continues to be hurt by longer lead times and delayed-billable inflationary pressures associated with pandemic-related headwinds.
- Near-term pressure on liquidity is stemming from slower-than-expected conversion of inventory into revenue, realized revenue and EBITDA falling below estimates for Q4'22 and Jan'23 and ABL borrowing base availability being below expectations.
- In addition, the firm has continued to operate manufacturing facilities to fulfill existing orders and is currently procuring for 2Q given lead times, resulting in a "steady use of cash" to achieve the demand plan/production forecast
- Going forward, it would like to discuss with lenders a going-concern waiver, immediate solutions to achieve temporary incremental liquidity and long-term considerations regarding capital structure.
- Shares of Diebold Nixdorf ( DBD ) have plummeted 69% over the past year
For further details see:
Diebold Nixdorf stock plunges on liquidity concerns