5/13/20240001974138false00019741382024-05-132024-05-13

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 13, 2024
NCR ATLEOS CORPORATION
(Exact name of registrant as specified in its charter)
Commission File Number 001-41728
Maryland92-3588560
(State or other jurisdiction of
incorporation or organization)		(I.R.S. Employer
Identification No.)
864 Spring Street NW
Atlanta, GA 30308
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code: (832) 308-4999
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareNATLNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).        Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o


Item 2.02.    Results of Operations and Financial Condition.
On May 13, 2024, NCR Atleos Corporation (the “Company”) issued a press release setting forth its first quarter 2024 financial results and certain other financial information. A copy of the press release is attached hereto as Exhibit 99.1 and hereby incorporated by reference.
Item 7.01.    Regulation FD Disclosure.
On May 14, 2024, the Company will hold its previously announced conference call to discuss its first quarter 2024 financial results. A copy of supplementary materials that will be referred to in the conference call, and which were posted to the Company's website, is attached hereto as Exhibit 99.2.
The information in this report (including Exhibits 99.1 and 99.2) is being furnished pursuant to Item 2.02 and Item 7.01 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act.

Item 9.01.    Financial Statements and Exhibits.
(d)Exhibits:
The following exhibits are attached with this current report on Form 8-K:
Exhibit No.Description
99.1
99.2
104Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
NCR Atleos Corporation
By:/s/ Paul J. Campbell
Paul J. Campbell
Executive Vice President and Chief Financial Officer
Date: May 13, 2024



picture1a.jpg
NEWS RELEASE
NCR Atleos Corporation Reports Strong First Quarter 2024 Results

ATLANTA, May 13, 2024 - NCR Atleos Corporation (NYSE: NATL) (“Atleos”) reported financial results today for the three months ended March 31, 2024. First quarter results and other recent highlights include:

•Strong start to 2024 with financial results at or above the high-end of first quarter guidance
•Revenue grew 6% year-over-year to $1.05 billion; Recurring revenue grew 7% to a record $763 million
•Adjusted EBITDA grew 11% year-over-year to $162 million; Adjusted free cash flow1 of $69 million
•GAAP net loss of $8 million; Operating cash flow of $148 million
•GAAP fully diluted loss per share of $0.11; Non-GAAP fully diluted earnings per share of $0.41
•Company reaffirms full year 2024 guidance; Issues second quarter guidance

“The first quarter of 2024 marked our first full quarter as a separate company and an excellent start to 2024. Financial results were ahead of our projections and our operational execution was outstanding. Our market leading solutions for self-service banking continue to gain appeal with banks, retailers, and their customers, and drove solid top line growth in the quarter. First quarter growth was paced by double digit growth in global withdrawal transactions and strong growth in services revenue,” said Tim Oliver, President and Chief Executive Officer.

Mr. Oliver continued, “Considering the momentum in our businesses, progress on key strategic initiatives, and continued favorable market dynamics for our solutions, we reaffirm our previously published 2024 financial targets. Going forward, Atleos stands ready with its leading position in self-service banking and the largest and most efficient ATM network in the world to advance the transformation of retail banking and facilitate digital to physical transactions for everyone, everywhere.”

First Quarter 2024 Operating Results
The core business segments continue to deliver strong results:
•First quarter revenue was $1.05 billion, including $763 million of recurring revenue, compared to $986 million and $710 million, respectively, in the prior year period.

•First quarter gross profit was $221 million with a gross profit rate of 21.0% on a GAAP basis, compared to $220 million and 22.3%, respectively, in the prior year period. First quarter adjusted gross profit (non-GAAP) was $244 million with an adjusted gross profit rate of 23.2%, compared to $240 million and 24.3%, respectively, in the prior year period.

•First quarter income from operations was $72 million on a GAAP basis, compared to $66 million in the prior year period. First quarter adjusted income from operations (non-GAAP) was $116 million compared to $112 million in the prior year period.

•First quarter net loss attributable to Atleos was $8 million on a GAAP basis, compared to net income attributable to Atleos of $36 million in the prior year period.

•First quarter Adjusted EBITDA was $162 million compared to $146 million in the prior year period.
(1) Adjusted free cash flow-unrestricted, as defined in the section entitled "Non-GAAP Financial Measures"

NCR ATLEOS CORPORATION
REVENUE AND ADJUSTED EBITDA SUMMARY
(Unaudited)
(in millions)
For the Periods Ended March 31
Three Months
20242023% Change
Revenue by segment
Self-Service Banking$628 $606 4%
Network310 300 3%
T&T51 50 2%
Total segment revenue989 956 3%
Other (1)
61 30 103%
Consolidated revenue$1,050 $986 6%
Adjusted EBITDA by segment
Self-Service Banking$134 $139 (4)%
Self-Service Banking Adjusted EBITDA margin %21.3%22.9%
Network86 75 15%
Network Adjusted EBITDA margin %27.7%25.0%
T&T10 10 —%
T&T Adjusted EBITDA margin %19.6%20.0%
Other (1)
410(60)%
Corporate (2)
(72)(88)(18)%
Total Adjusted EBITDA $162$14611%
Total Adjusted EBITDA margin %15.4%14.8%
(1)Other represents certain other immaterial business operations, including commerce-related operations in countries that Voyix exited that are aligned to Atleos, that do not represent a reportable segment. For periods after the separation from Voyix, Other also includes revenues from commercial agreements with Voyix.
(2)Corporate includes income and expenses related to corporate functions and, for periods prior to the separation from Voyix, certain allocations from Voyix that were not specifically attributable to an individual reportable segment.
Notes to Investors
On October 16, 2023, NCR Atleos Corporation (“Atleos”, the “Company”, “we” or “us”) became a standalone publicly traded company, and its financial statements are now presented on a consolidated basis. Prior to the separation from NCR Voyix Corporation (“NCR” or “Voyix”), the Company’s historical combined financial statements were prepared on a standalone carve-out basis and were derived from Voyix’s consolidated financial statements and accounting records. Therefore, financial results for the three month periods ended March 31, 2024 and 2023 may not be meaningfully comparable.
In this release, we use certain non-GAAP measures. These non-GAAP measures include “Adjusted EBITDA,” and others with the words “non-GAAP” in their titles. These non-GAAP measures are listed, described and reconciled to their most directly comparable GAAP measures under the heading “Non-GAAP Financial Measures” later in this release.
With respect to our Adjusted EBITDA, adjusted free cash flow-unrestricted and non-GAAP diluted earnings per share guidance, we do not provide a reconciliation of the respective GAAP measures because we are not able to predict with reasonable certainty the reconciling items that may affect the GAAP net income, GAAP cash flow from operating activities and GAAP diluted earnings per share without unreasonable effort. The reconciling items are primarily the future impact of special tax items, capital structure transactions, restructuring, pension mark-to-market transactions, acquisitions or divestitures, or other events. These reconciling items are uncertain, depend on various factors and could significantly impact, either individually or in the aggregate, the GAAP measures. Refer to the heading “Non-GAAP Financial Measures” for additional information regarding our use of non-GAAP financial measures.
2

Second Quarter and Full Year 2024 Guidance
ConsolidatedQ2 2024 Targets
FY 2024 Targets (Reaffirmed)
Revenue
$1.06 - $1.09 billion
$4.20 - $4.40 billion
Adjusted EBITDA
$180 - $190 million
$770 - $800 million
Non-GAAP Diluted EPS
$0.63 - $0.73
$2.90 - $3.20 (1)
Adjusted free cash flow-unrestricted
$0 - $25 million
$170 - $230 million
(1) Incorporates consensus forward SOFR rates for the year as of April 30, 2024.
2024 First Quarter Earnings Conference Call
A conference call is scheduled for May 14, 2024 at 8:30 a.m. Eastern Time to discuss the first quarter 2024 results. Access to the conference call and accompanying slides, as well as a replay of the call, are available on Atleos’ web site at http://investor.ncratleos.com. Additionally, the live call can be accessed by dialing 800-753-0725 (United States/Canada Toll-free) or 786-460-7170 (International Toll) and entering the participant passcode 2528313. References to Atleos’ website and/or other social media sites or platforms in this release do not incorporate by reference the information on such websites, social media sites, or platforms, and Atleos disclaims any such incorporation by reference.
More information on Atleos’ first quarter earnings, including additional financial information and analysis, is available on Atleos’ Investor Relations website at https://investor.ncratleos.com/.
News Media Contact
Scott Sykes
NCR Atleos Corporation
scott.sykes@ncratleos.com
Investor Contact
Brendan Metrano
NCR Atleos Corporation
brendan.metrano@ncratleos.com

About Atleos

Atleos (NYSE: NATL) is a leader in expanding self-service financial access, with industry-leading ATM expertise and experience, unrivalled operational scale including the largest independently-owned ATM network, always-on global services and constant innovation. Atleos improves operational efficiency for financial institutions, drives footfall for retailers and enables digital-first financial self-service experiences for consumers. Atleos is headquartered in Atlanta, Georgia, with approximately 20,000 employees globally.

Web site: https://www.ncratleos.com
X (Twitter): https://twitter.com/ncratleos
Facebook: https://www.facebook.com/Atleos.NCR/
LinkedIn: https://www.linkedin.com/company/ncratleos
YouTube: https://www.youtube.com/@ncratleos
Instagram: https://www.instagram.com/ncratleos/

Cautionary Statements
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (the “Act”). Forward-looking statements use words such as “expect,” “anticipate,” “outlook,” “intend,” “plan,” “confident,” “believe,” “will,” “should,” “would,” “potential,” “positioning,” “proposed,” “planned,” “objective,” “likely,” “could,” “may,” and words of similar meaning, as well as other words or expressions referencing future events, conditions or circumstances. We intend these forward-looking statements to be
3

covered by the safe harbor provisions for forward-looking statements contained in the Act. Statements that describe or relate to Atleos’ plans, goals, intentions, strategies, or financial outlook, and statements that do not relate to historical or current fact, are examples of forward-looking statements. Examples of forward-looking statements in this release include, without limitation, statements regarding: our expectations of demand for our solutions and execution and the impact thereof on our financial results and our intention to focus our resources on meeting our ATM customers’ needs and extending our leadership position in digital-to-physical transactions following the spin-off. Forward-looking statements are based on our current beliefs, expectations and assumptions, which may not prove to be accurate, and involve a number of known and unknown risks and uncertainties, many of which are out of Atleos’ control. Forward-looking statements are not guarantees of future performance, and there are a number of important factors that could cause actual outcomes and results to differ materially from the results contemplated by such forward-looking statements, including those factors relating to:
•Strategy and Technology: transforming our business model, development and introduction of new solutions; competition in the technology industry, integration of acquisitions and management of alliance activities; our multinational operations;
•Business Operations: domestic and global economic and credit conditions; risks and uncertainties from the payments-related business and industry; disruptions in our data center hosting and public cloud facilities; retention and attraction of key employees; defects, errors, installation difficulties or development delays; failure of third-party suppliers; a major natural disaster or catastrophic event; including the impact of pandemics and geopolitical and macroeconomic challenges; environmental exposures from historical and ongoing manufacturing activities and climate change;
•Data Privacy & Security: impact of data protection, cybersecurity and data privacy including any related issues;
•Finance and Accounting: our level of indebtedness; the terms governing our indebtedness; incurrence of additional debt or similar liabilities or obligations; access or renewal of financing sources; our cash flow sufficiency to service our indebtedness; interest rate risks; the terms governing our trade receivables facility; the impact of certain changes in control relating to acceleration of our future indebtedness; our obligations under other future financing arrangements; or required repurchase of any notes we may issue; any lowering or withdrawal of the ratings assigned to our future debt securities by rating agencies; our pension liabilities and write down of the value of certain significant assets;
•Law and Compliance: allegations or claims by third parties that our products or services infringe on intellectual property rights of others, including claims against our customers and claims by our customers to defend and indemnify them with respect to such claims; protection of our intellectual property; changes to our tax rates and additional income tax liabilities; uncertainties regarding regulations; lawsuits and other related matters; changes to cryptocurrency regulations;
•Governance: actions or proposals from stockholders that do not align with our business strategies or the interests of our other stockholders; and
•Separation: the failure of Atleos to achieve some or all of the expected strategic benefits, synergies or opportunities expected from the spin-off; that Atleos may incur material costs and expenses as a result of the spin-off; that Atleos has limited history operating as an independent, publicly traded company, and Atleos’ historical and pro forma financial information is not necessarily representative of the results that it would have achieved as a separate, publicly traded company and therefore may not be a reliable indicator of its future results; Atleos’ obligation to indemnify NCR pursuant to the agreements entered into in connection with the spin-off (including with respect to material taxes) and the risk NCR may not fulfill any obligations to indemnify Atleos under such agreements; that under applicable tax law, Atleos may be liable for certain tax liabilities of NCR following the spin-off if NCR were to fail to pay such taxes; that agreements binding on Atleos restrict it from taking certain actions after the distribution that could adversely impact the intended U.S. federal income tax treatment of the distribution and related transactions; potential liabilities arising out of state and federal fraudulent conveyance laws; the fact that Atleos may receive worse commercial terms from third-parties for services it presently receives from NCR; that after the spin-off, certain of Atleos’ executive officers and directors may have actual or potential conflicts of interest because of their previous positions at NCR; potential difficulties in maintaining relationships with key personnel; that Atleos will not be able to rely on the earnings, assets or cash flow of NCR and NCR will not provide funds to finance Atleos’ working capital or other cash requirements.

Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those set forth in the forward-looking statements. Additional information concerning these and other factors can be found in the Company’s filings with the U.S. Securities and Exchange Commission, including the Company’s annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made. The Company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
4

Non-GAAP Financial Measures
Non-GAAP Financial Measures. While Atleos reports its results in accordance with Generally Accepted Accounting Principles in the United States, or GAAP, in this release Atleos also uses the non-GAAP measures listed and described below.
Adjusted Gross Profit (Non-GAAP), Adjusted Gross Profit Rate (Non-GAAP), Adjusted Income from Operations (Non-GAAP), Non-GAAP Diluted Earnings per Share. Atleos’ Adjusted Gross Profit (non-GAAP), Adjusted Gross Profit Rate (non-GAAP), Adjusted Income from Operations (non-GAAP), and Non-GAAP Diluted Earnings per Share are determined by excluding, as applicable, acquisition-related costs; pension mark-to-market adjustments, pension settlements, pension curtailments and pension special termination benefits; separation-related costs; amortization of acquisition-related intangibles; stock-based compensation expense; transformation and restructuring charges (which includes integration, severance and other exit and disposal costs); and other special (expense) income items from Atleos’ GAAP gross profit, expenses, income from operations, interest and other income (expense), income tax expense, effective income tax rate, net income (loss) attributable to Atleos, and earnings per share, respectively. Due to the non-recurring or non-operational nature of these pension and other special items, Atleos’ management uses these non-GAAP measures to evaluate year-over-year operating performance. Atleos believes these measures are useful for investors because they provide a more complete understanding of Atleos’ underlying operational performance, as well as consistency and comparability with Atleos’ past reports of financial results.
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA). Atleos’ management uses the non-GAAP measure Adjusted EBITDA because it provides useful information to investors as an indicator of performance of the Company’s ongoing business operations. Atleos determines Adjusted EBITDA based on GAAP Net income (loss) attributable to Atleos plus interest expense, net; plus income tax expense (benefit); plus depreciation and amortization; plus acquisition-related costs; plus pension mark-to-market adjustments, pension settlements, pension curtailments and pension special termination benefits; plus separation-related costs; plus transformation and restructuring charges (which includes integration, severance and other exit and disposal costs); plus stock-based compensation expense; plus other special (expense) income items. These adjustments are considered non-operational or non-recurring in nature and are excluded from the Adjusted EBITDA metric utilized by our chief operating decision maker (“CODM”) in evaluating segment performance and are separately delineated to reconcile back to total reported income attributable to Atleos. This format is useful to investors because it allows analysis and comparability of operating trends. It also includes the same information that is used by Atleos management to make decisions regarding our segments and to assess our financial performance. Refer to the table below for the reconciliations of Net income (loss) attributable to Atleos (GAAP) to Adjusted EBITDA (non-GAAP).
Adjusted EBITDA margin is calculated based on Adjusted EBITDA as a percentage of total revenue. Adjusted EBITDA margin by segment is calculated based on segment Adjusted EBITDA divided by the related component of revenue. This measure is used by Atleos’ management for the reasons referenced above.
Adjusted free cash flow-unrestricted. Atleos defines Adjusted free cash flow-unrestricted as net cash provided by operating activities less capital expenditures for property, plant and equipment, less additions to capitalized software, plus/minus the change in restricted cash settlement activity, plus/minus net reductions or reinvestment in the trade receivables facility established in the fourth quarter of 2023 due to fluctuations in the outstanding balance of receivables sold, plus/minus financing payments/receipts of owned ATM capital expenditures, and plus pension contributions and settlements. Restricted cash settlement activity represents the net change in amounts collected on behalf of, but not yet remitted to, certain of the Company’s merchant customers or third-party service providers that are pledged for a particular use or restricted to support these obligations. These amounts can fluctuate significantly period to period based on the number of days for which settlement to the merchant has not yet occurred or day of the week on which a reporting period ends. We believe Adjusted free cash flow-unrestricted information is useful for investors because it indicates the amount of cash available after these adjustments for, among other things, investments in Atleos’ existing businesses, strategic acquisitions, and repayment of debt obligations. Adjusted free cash flow-unrestricted does not represent the residual cash flow available, since there may be other non-discretionary expenditures that are not deducted from the measure. Adjusted free cash flow-unrestricted does not have a uniform definition under GAAP, and therefore Atleos’ definition may differ from other companies’ definitions of this measure. This non-GAAP measure should not be considered a substitute for, or superior to, cash flows from operating activities under GAAP.
Atleos’ definitions and calculations of these non-GAAP measures may differ from similarly-titled measures reported by other companies and cannot, therefore, be compared with similarly-titled measures of other companies. These non-GAAP measures should not be considered as substitutes for, or superior to, results determined in accordance with GAAP.
5

Use of Certain Terms
Recurring revenue All revenue streams from contracts where there is a predictable revenue pattern that will occur at regular intervals with a relatively high degree of certainty. This includes hardware and software maintenance revenue, processing revenue, interchange and network revenue, Bitcoin-related revenue, and certain professional services arrangements, as well as term-based software license arrangements that include customer termination rights.

NCR ATLEOS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the Periods Ended March 31
Three Months
($ in millions, except per share amounts)20242023
Revenue
Product revenue$240 $234 
Service revenue810 752 
Total revenue1,050 986 
Cost of products212 195 
Cost of services617 571 
Total gross profit221 220 
% of Revenue21.0 %22.3 %
Selling, general and administrative expenses132 136 
Research and development expenses17 18 
Income from operations72 66 
% of Revenue6.9 %6.7 %
Interest expense(79)— 
Related party interest expense, net— (4)
Other income (expense), net3 — 
Total interest and other expense, net(76)(4)
Income (loss) before income taxes(4)62 
% of Revenue(0.4)%6.3 %
Income tax expense (benefit)4 25 
Net income (loss)(8)37 
Net income (loss) attributable to noncontrolling interests— 1 
Net income (loss) attributable to Atleos$(8)$36 
Net income (loss) per share attributable to Atleos common stockholders - basic and diluted$(0.11)$0.51 
Weighted average basic and diluted common shares outstanding (1)
71.670.6
(1)On October 16, 2023, the date of Separation, 70.6 million shares of Atleos' Common Stock, par value $0.01 per share, were distributed to Voyix shareholders of record as of October 2, 2023, the Record Date. This share amount is utilized for the calculation of basic and diluted earnings per share for all periods presented prior to the Separation. For the three months ended March 31, 2023, these shares are treated as issued and outstanding for purposes of calculating historical earnings per share. For periods prior to the Separation, it is assumed that there are no dilutive equity instruments as there were no equity awards of Atleos outstanding prior to the Separation.

6

CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in millions, except per share amounts)March 31, 2024December 31, 2023
Assets
Current assets
Cash and cash equivalents$343 $339 
Accounts receivable, net of allowances of $19 and $14 as of March 31, 2024 and December 31, 2023, respectively
742 714 
Inventories330 333 
Restricted cash256 238 
Other current assets312 271 
Total current assets1,983 1,895 
Property, plant and equipment, net461 470 
Goodwill1,951 1,952 
Intangibles, net606 635 
Operating lease right of use assets140 144 
Prepaid pension cost215 218 
Deferred income taxes253 254 
Other assets167 173 
Total assets$5,776 5,741 
Liabilities and stockholders’ equity
Current liabilities
Short-term borrowings80 76 
Accounts payable530 500 
Payroll and benefits liabilities132 151 
Contract liabilities332 325 
Settlement liabilities244 218 
Other current liabilities565 477 
Total current liabilities1,883 1,747 
Long-term borrowings2,857 2,938 
Pension and indemnity plan liabilities388 389 
Postretirement and postemployment benefits liabilities59 60 
Income tax accruals36 36 
Operating lease liabilities105 109 
Deferred income tax liability29 34 
Other liabilities132 141 
Total liabilities5,489 5,454 
Stockholders' equity
Atleos stockholders' equity:
Preferred stock: par value $0.01 per share, 50.0 shares authorized, no shares issued
— — 
Common stock: par value $0.01 per share, 350.0 shares authorized, 72.1 and 70.9 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively
1 1 
Paid-in capital14 16 
Retained earnings165 181 
Accumulated other comprehensive income103 86 
Total Atleos stockholders' equity283 284 
Noncontrolling interests in subsidiaries4 3 
Total stockholders' equity287 287 
Total liabilities and stockholders' equity$5,776 $5,741 
7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Periods Ended March 31
Three Months
(in millions)20242023
Operating activities
Net income (loss)$(8)$37 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation expense37 28 
Amortization expense 36 32 
Stock-based compensation expense10 14 
Deferred income taxes— (8)
Loss (gain) on disposal of property, plant and equipment2 — 
Changes in assets and liabilities:
Receivables(38)(3)
Related party receivables and payables — (12)
Inventories(30)(35)
Settlement Assets(24)5 
Current payables and accrued expenses5 17 
Contract liabilities1 52 
Employee benefit plans(14)(3)
Other assets and liabilities171 (4)
Net cash provided by operating activities$148 $120 
Investing activities
Expenditures for property, plant and equipment$(24)$(15)
Additions to capitalized software(6)(8)
Amounts advanced for related party notes receivable— (5)
Repayments received from related party notes receivable— 3 
Other investing activities, net(1)— 
Net cash used in investing activities$(31)$(25)
Financing activities
Payments on related party borrowings$— $(25)
Payments on term credit facilities(18)— 
Borrowings on revolving credit facilities74 — 
Payments on revolving credit facilities(136)— 
Net transfers (to) from NCR Corporation— (66)
Tax withholding payments on behalf of employees(6)— 
Other financing activities(1)— 
Net cash used in financing activities$(87)$(91)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(9)12 
Increase (decrease) in cash, cash equivalents, and restricted cash$21 $16 
Cash, cash equivalents and restricted cash at beginning of period586 499 
Cash, cash equivalents, and restricted cash at end of period$607 $515 

8

The following table presents the recurring revenue and all other products and services that is recognized at a point in time:

In millions
Three months ended March 31
20242023
Recurring revenue$763 $710 
All other products and services287 276 
Total revenue$1,050 $986 
Recurring revenue as a percent of revenue73 %72 %

Reconciliation of Net Income (Loss) Attributable to Atleos (GAAP) to Adjusted Net Income Attributable to Atleos (Non-GAAP) and Non-GAAP Diluted Earnings Per Share
Three months ended March 31, 2024
$ in millions, except per share amountsGross profit Gross profit rateIncome from operationsNet income (loss) attributable to Atleos
Diluted earnings (loss) per share (1)
GAAP Results$221 21.0 %$72 $(8)$(0.11)
Plus: Special Items
Transformation and restructuring— — %1 1 0.01
Stock-based compensation expense1 0.1 %10 9 0.12
Acquisition-related amortization of intangibles22 2.1 %25 18 0.25
Separation costs — — %8 7 0.10
Other tax adjustments— — %— 3 0.04
Non-GAAP Adjusted Results$244 23.2 %$116 $30 $0.41 
(1)For the three months ended March 31, 2024, due to the net loss attributable to Atleos common stockholders, potential common shares that would have caused dilution, such as restricted stock units and stock options, have been excluded from the GAAP diluted share count of 71.6 million because their effect would have been anti-dilutive. The dilutive impact of these shares are included in the dilutive share count of 73.1 million used in the calculation of non-GAAP diluted EPS. Therefore, GAAP diluted EPS and non-GAAP diluted EPS may not mathematically reconcile.

9

Reconciliation of Net Income Attributable to Atleos (GAAP) to Adjusted Net Income Attributable to Atleos (Non-GAAP) and Non-GAAP Diluted Earnings Per Share
For the three months ended March 31, 2023
$ in millions, except per share amountsGross profit Gross profit rateIncome from operationsNet income attributable to Atleos
Diluted earnings (loss) per share (1)
GAAP Results$220 22.3 %$66 $36 $0.51 
Plus: Special Items
Stock-based compensation expense5 0.5 %14 13 0.18
Acquisition-related amortization of intangibles15 1.5 %25 19 0.27
Separation costs — — %7 6 0.09
Non-GAAP Adjusted Results$240 24.3 %$112 $74 $1.05 
(1)On October 16, 2023, the date of Separation, 70.6 million shares of Atleos' Common Stock, par value $0.01 per share, were distributed to Voyix shareholders of record as of October 2, 2023, the Record Date. This share amount is utilized for the calculation of basic and diluted earnings per share for all periods presented prior to the Separation. For the three months ended March 31, 2023, these shares are treated as issued and outstanding for purposes of calculating historical earnings per share. For periods prior to the Separation, it is assumed that there are no dilutive equity instruments as there were no equity awards of Atleos outstanding prior to the Separation.
Reconciliation of Net Income (Loss) Attributable to Atleos (GAAP) to Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) (Non-GAAP)
$ in millionsQ1 2024Q1 2023
Net income (loss) attributable to Atleos (GAAP)$(8)$36 
Interest expense, net (1)
79 4 
Interest income(2)— 
Income tax expense4 25 
Depreciation and amortization expense44 35 
Acquisition-related amortization of intangibles25 25 
Stock-based compensation expense10 14 
Separation costs9 7 
Transformation and restructuring1 — 
Adjusted EBITDA (Non-GAAP) $162 $146 
(1) Includes Related party interest expense, net, as presented in the Condensed Consolidated Statements of Operations.

Reconciliation of Net Cash Provided by Operating Activities (GAAP) to Adjusted Free Cash Flow-Unrestricted (Non-GAAP)
$ in millionsQ1 2024Q1 2023
Net cash provided by operating activities$148 $120 
Total capital expenditures(30)(23)
Restricted cash settlement activity(18)(27)
Pension contributions1 1 
Temporary transfer of funds from Voyix(32)— 
Adjusted free cash flow-unrestricted$69 $71 
10
1 First Quarter 2024 Earnings Call Tuesday, May 14th, 2024 Tim Oliver, President & Chief Executive Officer Paul Campbell, Chief Financial Officer Stuart Mackinnon, Chief Operating Officer

 
FORWARD-LOOKING STATEMENTS NCR Atleos Corporation (“NCR Atleos,” “Atleos” or the “Company”) cautions that comments made during this presentation and in these materials contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (the “Act”). Forward-looking statements use words such as “estimate,” “expect,” “target,” “anticipate,” “outlook,” “intend,” “plan,” “confident,” “believe,” “will,” “would,” “potential,” “positioned,” “may,” and words of similar meaning, as well as other words or expressions referencing future events, conditions or circumstances. We intend for these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Act. Statements that describe or relate to the Company's plans, targets, goals, intentions, strategies, or financial outlook, and statements that do not relate to historical or current fact, are examples of forward-looking statements. Examples of forward-looking statements in these materials include, without limitation, statements regarding the future commercial or financial performance of the Company following the separation from NCR Voyix Corporation (“Voyix”), and value creation and ability to innovate and drive growth generally as a result of such transaction; the expected financial performance of the Company for 2024; the Company's net leverage ratio targets for year-end 2024 and long-term; our expected areas of focus and strategy to drive growth and profitability and create long-term stockholder value, including key performance indicator targets and expectations for 2024; the Company's focus on advancing strategic growth initiatives and transforming the Company into a software-led ATM-as-a-service company with a higher mix of recurring revenue streams, including the Company's focus on driving efficiencies and standardizing cloud-native service offerings; statements regarding redeployment priorities, and future capital allocation priorities and our expected free cash flow for 2024; and our expectations of NCR Atleos' ability to deliver increased value to customers and stockholders. Forward-looking statements are based on our current beliefs, expectations and assumptions, which may not prove to be accurate, and involve a number of known and unknown risks and uncertainties, many of which are out of the Company's control, including the failure of NCR Atleos to achieve some or all of the expected strategic benefits or opportunities expected from the spin-off, that NCR Atleos may incur material costs and expenses as a result of the spin-off, that NCR Atleos has no pre-spin operating history as an independent, publicly traded company, and NCR Atleos' historical and pro forma financial information is not necessarily representative of the results that it would have achieved as a separate, publicly traded company and therefore may not be a reliable indicator of its future results, NCR Atleos' obligation to indemnify NCR Voyix pursuant to the agreements entered into connection with the spin-off (including with respect to material taxes) and the risk NCR Voyix may not fulfill any obligations to indemnify NCR Atleos under such agreements, that under applicable tax law, NCR Atleos may be liable for certain tax liabilities of NCR Voyix following the spin-off if NCR Voyix were to fail to pay such taxes, that agreements binding on NCR Atleos restrict it from taking certain actions after the distribution that could adversely impact the intended U.S. federal income tax treatment of the distribution and related transactions, potential liabilities arising out of state and federal fraudulent conveyance laws, the fact that NCR Atleos may receive worse commercial terms from third-parties for services it presently receives from NCR Voyix, that after the spin-off, certain of NCR Atleos' executive officers and directors may have actual or potential conflicts of interest because of their previous positions at NCR Voyix, potential difficulties in maintaining relationships with key personnel, NCR Atleos will not be able to rely on the earnings, assets or cash flow of NCR Voyix and NCR Voyix will not provide funds to finance NCR Atleos' working capital or other cash requirements. Forward-looking statements are not guarantees of future performance, and there are a number of important factors that could cause actual outcomes and results to differ materially from the results contemplated by such forward-looking statements. As you read and consider this presentation, you should understand that these statements are not guarantees of performance or results. Although the Company believes that assumptions underlying the forward-looking statements contained herein are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, any of these statements included herein may prove to be inaccurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the results or conditions described in such statements or our objectives and plans will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties. Additional information concerning these and other factors can be found in the Company's filings with the U.S. Securities and Exchange Commission (“SEC”), including the Company's registration statement on Form 10 and amendments thereto, the final information statement, included as an exhibit to the Company's current report on Form 8-K filed with the SEC on August 15, 2023, the Company’s annual report on Form 10-K filed with the SEC on March 26, 2024, quarterly reports on Form 10-Q and current reports on Form 8-K. These materials are dated May 13, 2024, and Atleos does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. 2

 
NON-GAAP MEASURES. While Atleos reports its results in accordance with generally accepted accounting principles in the United States, or GAAP, comments made during this conference call and in these materials will include or make reference to certain "non-GAAP" measures, including: adjusted gross margin rate (non-GAAP); diluted earnings per share (non-GAAP); adjusted free cash flow-unrestricted; adjusted gross margin (non- GAAP); net debt; adjusted EBITDA; adjusted EBITDA growth; adjusted EBITDA margin; the ratio of net debt to adjusted EBITDA or Net Leverage Ratio; adjusted income from operations (non-GAAP); adjusted interest and other expense (non-GAAP); adjusted income tax expense (non-GAAP); effective income tax rate (non-GAAP); and adjusted net income attributable to Atleos (non-GAAP). These measures are included to provide additional useful information regarding Atleos' financial results, and are not a substitute for their comparable GAAP measures. Explanations of these non-GAAP measures, and reconciliations of these non-GAAP measures to their directly comparable GAAP measures, are included in the accompanying "Supplementary Materials" and are available on the Investor Relations page of Atleos' website at www.ncratleos.com. Descriptions of many of these non-GAAP measures are also included in Atleos' SEC reports. TRADEMARKS. All trademarks, service marks and trade names appearing in this presentation are, to our knowledge, the property of their respective owners. We do not intend our use or display of other companies’ trademarks, service marks, copyrights or trade names to imply a relationship with, or endorsement or sponsorship of us by, any other companies. USE OF CERTAIN TERMS. As used in these materials: (i) the term "recurring revenue" includes all revenue streams from contracts where there is a predictable revenue pattern that will occur at regular intervals with a relatively high degree of certainty. This includes hardware and software maintenance revenue, processing revenue, interchange and network revenue, Bitcoin-related revenue, and certain professional services arrangements, as well as term-based software license arrangements that include customer termination rights. (ii) the term "annual recurring revenue" or "ARR" is recurring revenue, excluding software license sold as a subscription, for the last three months times four, plus the rolling four quarters for term-based software license arrangements that include customer termination rights. (iii) the term "LTM" means last twelve months. (iv) the term "ARPU" means average revenue per unit. (v) the term "ATMaaS" means ATM as a Service, our turnkey, end-to-end ATM platform solution. These presentation materials and the associated remarks made during this conference call are integrally related and are intended to be presented and understood together. Websites referenced in this presentation are not incorporated by reference into the presentation. NOTES TO INVESTORS 3

 
Tim Oliver President and Chief Executive Officer Business Update 4

 
Strong Q1 Great Start to 2024 On Track for a Successful 2024 Q2 guidance implies sequential top line and profit growth Network Utility banking continues to gain momentum with key renewals and new business Strategic and operating initiatives are underway with positive early indications Completed filing of Form 10-K, establishing sound base for future financial reporting Q1 financial results at or above the high-end of guidance ranges Revenue up 6%; recurring revenue up 7% and 73% of total revenue Solid top line trends in Self Service Banking and Network; positive developments with customers and partners Adjusted EBITDA grew 11% y/y; free-cash-flow of ~$69 million was above expectations Banks are investing in branches and better consumer experiences, and seeking efficiency Sales funnel is developing well in all markets, reinforcing our key strategy pillars led by ATMaaS Continuous improvement on track to deliver targeted productivity savings Reaffirmed 2024 financial targets Strong Performance and Momentum 5

 
Segment Highlights • Recurring revenue grew 7% and accounted for 62% of segment revenue • Active ATMaaS unit count increased to ~21K; backlog up sequentially and included expansion to Hong Kong • Traditional business model fundamentals remain strong; the Atleos value proposition continues to win in the market • Emphasis on execution drove improved service levels and cost savings • Transaction growth, more profitable mix, and significant operating leverage drive double digit profit growth • Top line trends were positive in most markets led by ASDA in the UK and double-digit growth in Allpoint surcharge free withdrawals in the U.S. • Renewed 3 financial institution partners to the Allpoint network, including expanded services • Renewed key retail partner relationships & added new partnerships Self-Service Banking Network 6 7-ELEVEN CANADA INC.

 
Key Objectives for 2024 7 2024 Objectives 2024 Initiatives Q1 2024 Progress Update Differentiate & Grow ■ Offer best-in-class solutions and service ■ Leverage existing operations ■ Expand markets and transaction sets ■ Advance ATMaaS model  Grew ATMaaS active units to ~21K with the backlog and pipeline up sequentially  Launched Tap capability across the US retail network increasing transaction speed, convenience and security  In US, added a top 10 bank & Navy Federal; launched first deposit solution in UK Optimize Resource Allocation ■ Establish a culture of continuous improvement ■ Identify and realize efficiency opportunities ■ Apply disciplined approach to investment ■ Allocate capital to enhance shareholder value  Reorganization of customer service and business operations is underway  Launched 6 productivity initiatives that contributed 14% of expected annual productivity savings Complete Separation ■ Complete the transfer of operations in certain markets that remained after transaction close ■ Wind down TSA agreements  Transferred 4 stranded markets from Voyix to date; 3 left and expected to transfer by Q3  60% of total TSA’s have been wound down 7

 
Paul Campbell Chief Financial Officer Financial Review 8

 
9 $0 $100 $200 Q1 23 Q1 24 $0 $500 $1,000 Q1 23 Q1 24 $ in millions, except percentages and per share amounts $986 $146 $1,050 $162 $710 $763 ■ Q1 '24 Revenue of $1,050M, +6% y/y ■ Q1 '24 Recurring Revenue of $763M, +7% y/y ■ Q1 '24 Adjusted EBITDA of $162M, +11% y/y ■ Adjusted EBITDA margin 15.4%, +60 bps y/y ■ $69M of Adjusted free cash flow ■ First Quarter Non-GAAP Diluted EPS of $0.41 Q1 2024 CONSOLIDATED FINANCIAL RESULTS Adjusted EBITDATotal Revenue/Recurring

 
15 20 25 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 $1,400 $1,500 $1,600 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 55% 60% 65% Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 $0 $75 $150 Q1 23 Q1 24 $500 $575 $650 Q1 23 Q1 24 $ in millions, except units and percentages SELF-SERVICE BANKING $606 Recurring Revenue Mix % ATMaaS Units (in thousands) ARR 60% $139 17.5 $1,450 58% $628 $134 20.4 $1,532 10 62% 20.8 $1,573 Revenue Adjusted EBITDA Key Strategic Metrics Up 200 bps y/y • Growth in Software and Services • ATMaaS gaining traction Up 19% y/y • Q1 ATMaaS activations in most regions • ATMaaS backlog up to 4,000+ units Up 8% y/y • Growth in Software and Services

 
$13.5 $14.0 $14.5 $15.0 $15.5 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 75 80 85 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 $0 $60 $120 Q1 23 Q1 24 $150 $250 $350 Q1 23 Q1 24 $ in millions, except units and ARPU NETWORK $300 Self-Service Banking Terminal Network (in thousands) LTM ARPU (in thousands) 84 $75 $310 $86 $15.1 83 $14.3 11 $15.4 81 Revenue Adjusted EBITDA Key Strategic Metrics Down 4% y/y • Continued Optimization of ATM portfolio Up 8% y/y • Global withdrawal volumes up 11% y/y • Surcharge free transactions up 14% y/y

 
Segment Results Summary 12 Revenue Q1 2024 Q1 2023 % Change Self-Service Banking $628 $606 +4% Network 310 300 +3% Technology & Telecommunications 51 50 +2% Other 61 30 +103% Total Atleos $1,050 $986 +6% Adjusted EBITDA Q1 2024 Q1 2023 % Change Self-Service Banking $134 $139 (4%) Network 86 75 +15% Technology & Telecommunications 10 10 0% Other 4 10 (60%) Corporate (72) (88) (18%) Total Atleos $162 $146 +11% $ in millions Adjusted EBITDA Margin Q1 2024 Q1 2023 bps Change Self-Service Banking 21.3% 22.9% -160 bps Network 27.7% 25.0% +270 bps Technology & Telecommunications 19.6% 20.0% -40 bps Other 6.6% 33.3% n/m Corporate n/m n/m n/m Total Atleos 15.4% 14.8% +60 bps

 
Cash Flow and Financial Position (1) Cash and cash equivalents as presented on our Condensed Consolidated Balance Sheets. (2) Refer to the definitions in the supplementary section of the presentation. (3) Reflects management’s assessment for Q1 2024 capital expenditures. Balance Sheet & Liquidity March 31, 2024 December 31, 2023 Liquidity $725 $676 Revolving Credit Availability $382 $337 Cash (unrestricted)1 $343 $339 Total Debt $2,937 $3,014 Net Debt2 $2,594 $2,675 Net Leverage Ratio2 3.47X 3.65X 13 $ in millions Free Cash Flow Q1 2024 Q1 2023 Adjusted EBITDA $162 $146 Less Maintenance capital expenditures(3) ($18) ($23) Less Growth capital expenditures(3) ($7) n/m Less ATMaaS capital expenditures(3) ($5) n/m Cash paid for Taxes ($8) ($17) Cash paid for Interest ($19) n/m Change in Working Capital $24 ($35) Other items ($60) $0 Adj. Free Cash Flow – Unrestricted $69 $71

 
2024 Financial Outlook In millions, except per share amounts Q2 2024 Targets FY 2024 Targets (Reaffirmed)Consolidated Range Range Revenue $1,060 - $1,090 $4,200 - $4,400 Adjusted EBITDA $180 - $190 $770 - $800 Fully Diluted EPS $0.63 - $0.73 $2.90 - $3.20 Adj. Free Cash Flow – Unrestricted $0-$25 $170 - $230 Interest Expense $75 - $80 ~$290 Effective Tax Rate (non-GAAP) ~20% ~26% Fully Diluted Share Count (non-GAAP) ~73.5 ~75.3 14

 
2024 Segment Financial Outlook In millions, except per share amounts Q2 2024 Targets FY 2024 Targets (Reaffirmed) Segments Range Range Revenue Self Service Banking $645 - $660 $2,540 - $2,620 Network $325 - $335 $1,310 - $1,370 Technology &Telecommunications $47 - $50 $185 - $210 Other – Voyix Related $43 - $45 $165 - $200 Total Consolidated Revenue $1,060 - $1,090 $4,200 - $4,400 Adjusted EBITDA Self Service Banking $145 - $155 $655 - $695 Network $93 - $97 $355 - $375 Technology &Telecommunications $8 - $10 $37 - $43 Other – Voyix Related $3 - $7 $18 - $22 Corporate – Overhead & OIE $(69) - $(79) $(295) - $(335) Total Consolidated Adj EBITDA $180 - $190 $770 - $800 15

 
Takeaways Strong First Quarter Results at high-end of Guidance Solid Revenue growth in all Atleos Core businesses Launched Strategic actions for a strong 2024 Full Year 2024 Guidance Reaffirmed; Issued Q2 Guidance 16

 
SUPPLEMENTARY MATERIALS 17

 
While Atleos reports its results in accordance with generally accepted accounting principles (GAAP) in the United States, comments made during this conference call and in these materials will include non-GAAP measures. These measures are included to provide additional useful information regarding Atleos' financial results, and are not a substitute for their comparable GAAP measures. Non-GAAP Diluted Earnings Per Share (EPS), Adjusted Gross Margin (non-GAAP), Adjusted Gross Margin Rate (non-GAAP), Adjusted Operating Expenses (non-GAAP), Adjusted Income from Operations (non-GAAP), Adjusted Operating Margin Rate (non-GAAP), Adjusted Interest and Other (Expense) (non- GAAP), Adjusted Income Tax Expense (non-GAAP), Adjusted Effective Income Tax Rate (non-GAAP), and Adjusted Net Income from Continuing Operations Attributable to Atleos (non-GAAP). Atleos’ non-GAAP diluted EPS, adjusted gross margin (non-GAAP), adjusted gross margin rate (non-GAAP), adjusted operating expenses (non-GAAP), operating income (non-GAAP), operating margin rate (non-GAAP), interest and other (expense) (non-GAAP), income tax expense (non-GAAP), adjusted effective income tax rate (non-GAAP), and adjusted net income from continuing operations attributable to Atleos (non-GAAP) are determined by excluding, as applicable, pension mark-to-market adjustments, pension settlements, pension curtailments and pension special termination benefits, as well as other special items, including separation-related costs, amortization of acquisition related intangibles, stock-based compensation expense, and transformation and restructuring activities, from Atleos’ GAAP earnings per share, gross margin, gross margin rate, expenses, income from operations, operating margin rate, interest and other income (expense), income tax expense, effective income tax rate and net income from continuing operations attributable to Atleos, respectively. Due to the non-operational nature of these pension and other special items, Atleos' management uses these non-GAAP measures to evaluate year-over-year operating performance. Atleos believes these measures are useful for investors because they provide a more complete understanding of Atleos' underlying operational performance, as well as consistency and comparability with Atleos' past reports of financial results. Adjusted Free Cash Flow-Unrestricted (FCF). Atleos defines adjusted free cash flow-unrestricted as net cash provided by (used in) operating activities less capital expenditures for property, plant and equipment, less additions to capitalized software, plus/minus the change in restricted cash settlement activity, plus/minus net reductions or reinvestment in the trade receivables facility established in the fourth quarter of 2023 due to fluctuations in the outstanding balance of receivables sold, plus/minus financing payments/receipts of owned ATM capital expenditures, and plus pension contributions and pension settlements. Restricted cash settlement activity represents the net change in amounts collected on behalf of, but not yet remitted to, certain of the Company’s merchant customers or third-party service providers that are pledged for a particular use or restricted to support these obligations. These amounts can fluctuate significantly period to period based on the number of days for which settlement to the merchant has not yet occurred or day of the week on which a reporting period ends. Atleos' management uses adjusted free cash flow-unrestricted to assess the financial performance of the Company and believes it is useful for investors because it relates the operating cash flow of the Company to the capital that is spent to continue and improve business operations. In particular, adjusted free cash flow-unrestricted indicates the amount of cash generated after capital expenditures, which can be used for, among other things, investment in the Company's existing businesses, strategic acquisitions, strengthening the Company's balance sheet, repurchase of Company stock and repayment of the Company's debt obligations. Adjusted free cash flow-unrestricted does not represent the residual cash flow available for discretionary expenditures since there may be other non-discretionary expenditures that are not deducted from the measure. Adjusted free cash flow-unrestricted does not have uniform definitions under GAAP and, therefore, Atleos' definitions may differ from other companies' definitions of these measures. NON-GAAP MEASURES 18

 
Net Debt. Atleos determines Net Debt based on its total debt less cash and cash equivalents, with total debt being defined as total short-term borrowings plus total long-term debt as presented on the face of the Condensed Consolidated Balance Sheets plus deferred financing fees and discounts. Atleos believes that Net Debt provides useful information to investors because Atleos’ management reviews Net Debt as part of its management of overall liquidity, financial flexibility, capital structure and leverage. In addition, certain debt rating agencies, creditors and credit analysts monitor Atleos’ Net Debt as part of their assessments of Atleos’ business. Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA). Atleos determines Adjusted EBITDA based on GAAP Net income attributable to Atleos plus interest expense, net; plus income tax expense (benefit); plus depreciation and amortization; plus acquisition-related costs; plus pension mark-to-market adjustments, pension settlements, pension curtailments and pension special termination benefits; plus separation-related costs; plus transformation and restructuring charges (which includes integration, severance and other exit and disposal costs); plus stock-based compensation expense; plus other special (expense) income items. These adjustments are considered non-operational or non-recurring in nature and are excluded from the Adjusted EBITDA metric utilized by our chief operating decision maker (“CODM”) in evaluating segment performance and are separately delineated to reconcile back to total reported income attributable to Atleos. Atleos uses Adjusted EBITDA to manage and measure the performance of its business segments. Atleos also uses Adjusted EBITDA to manage and determine the effectiveness of its business managers and as a basis for incentive compensation. Atleos believes that Adjusted EBITDA provides useful information to investors because it is an indicator of the strength and performance of the Company's ongoing business operations, including its ability to fund discretionary spending such as capital expenditures, strategic acquisitions and other investments. Adjusted EBITDA margin is calculated based on Adjusted EBITDA as a percentage of total revenue. Net Leverage Ratio. Atleos believes that its ratio of Net Debt to Adjusted EBITDA, or Net Leverage Ratio, provides useful information to investors because it is an indicator of the Company's ability to meet its future financial obligations. In addition, the Net Debt to Adjusted EBITDA ratio is a measure frequently used by investors and credit rating agencies. The Net Debt to Adjusted EBITDA ratio is calculated by dividing Net Debt by trailing twelve-month Adjusted EBITDA. NON-GAAP MEASURES 19

 
With respect to our Adjusted EBITDA, adjusted free cash flow-unrestricted and non-GAAP diluted earnings per share forward-looking guidance, we do not provide a reconciliation of the respective GAAP measures because we are not able to predict with reasonable certainty the reconciling items that may affect the GAAP net income, GAAP cash flow from operating activities and GAAP diluted earnings per share without unreasonable effort. The reconciling items are primarily the future impact of special tax items, capital structure transactions, restructuring, pension mark-to-market transactions, acquisitions or divestitures, or other events. These reconciling items are uncertain, depend on various factors and could significantly impact, either individually or in the aggregate, the GAAP measures. Atleos management's definitions and calculations of these non-GAAP measures may differ from similarly-titled measures reported by other companies and cannot, therefore, be compared with similarly-titled measures of other companies. These non-GAAP measures should not be considered as substitutes for, or superior to, results determined in accordance with GAAP. These non-GAAP measures are reconciled to their corresponding GAAP measures in the following slides and elsewhere in these materials. These reconciliations and other information regarding these non-GAAP measures are also available on the Investor Relations page of Atleos' website at www.ncratleos.com. NON-GAAP MEASURES 20

 
Q1 2024 Q1 2023 % Change Revenue $1,050 $986 6% Gross Margin 221 220 —% Gross Margin Rate 21.0% 22.3% Operating Expenses 149 154 (3)% % of Revenue 14.2% 15.6% Operating Income 72 66 9% % of Revenue 6.9% 6.7% Interest and other expense, net (76) (4) 1,800% Income Tax Expense (Benefit) 4 25 Effective Income Tax Rate (100.0)% 40.3% Net Income (Loss) attributable to Atleos $(8) $36 (122)% Diluted EPS attributable to Atleos $(0.11) $0.51 (122)% $ in millions, except per share amounts Q1 2024 GAAP RESULTS 21

 
Q1 2024 Q1 2023 % Change Revenue $1,050 $986 6% Adjusted Gross Margin (non-GAAP) 244 240 2% Adjusted Gross Margin Rate (non-GAAP) 23.2% 24.3% Adjusted Operating Expenses (non-GAAP) 128 128 —% % of Revenue 12.2% 13.0% Adjusted Income from Operations (non-GAAP) 116 112 4% % of Revenue (Adjusted Operating Margin Rate) 11.0% 11.4% Adjusted Interest and other expense (non-GAAP) (75) (4) 1,775% Adjusted Income Tax Expense (non-GAAP) 11 33 (67)% Adjusted Effective Income Tax Rate (non-GAAP) 26.8% 30.6% Adjusted Net Income (Loss) attributable to Atleos (non-GAAP) $30 $74 (59)% Diluted EPS attributable to Atleos (non-GAAP) $0.41 $1.05 (61)% $ in millions, except per share amounts Q1 2024 OPERATIONAL RESULTS (Non-GAAP) 22

 
Q1 2024 Q1 2023 Net (Loss) Income Attributable to Atleos (GAAP) $ (8) $ 36 Transformation & Restructuring Costs 1 — Acquisition-Related Amortization of Intangibles 25 25 Separation Costs 9 7 Interest Expense 79 4 Interest Income (2) — Depreciation and Amortization 44 35 Income Taxes 4 25 Stock-Based Compensation Expense 10 14 Adjusted EBITDA (non-GAAP) $ 162 $ 146 GAAP TO NON-GAAP RECONCILIATION $ in millions 23

 
Q1 2024 Q1 2023 Income from Operations (GAAP) $ 72 $ 66 Transformation and restructuring costs 1 — Stock-based compensation expense 10 14 Acquisition-related amortization of intangibles 25 25 Separation costs 8 7 Depreciation and Amortization 44 35 Other income (expense), net 2 — Non-Controlling Interest — (1) Adjusted EBITDA (non-GAAP) $ 162 $ 146 GAAP TO NON-GAAP RECONCILIATION $ in millions 24

 
GAAP TO NON-GAAP RECONCILIATION $ in millions, except per share amounts Gross Margin Gross Margin rate Operating Expenses Income (loss) from operations Interest & Other Expenses, Net Income Tax Expense (Benefit) Effective Income Tax Rate Net Income attributable to Atleos Diluted Earnings per Share(1) GAAP Results $221 21.0% $149 $72 $(76) $4 (100.0)% $(8) $(0.11) Plus: Special Items Transformation and restructuring costs — —% (1) 1 — — 1 0.01 Stock-based compensation expense 1 0.1% (9) 10 — 1 9 0.12 Acquisition-related amortization of intangibles 22 2.1% (3) 25 — 7 18 0.25 Separation costs — —% (8) 8 1 2 7 0.10 Valuation allowance and other tax adjustments — —% — — (3) 3 0.04 Non-GAAP Adjusted Results $244 23.2% $128 $116 $(75) $11 26.8% $30 $0.41 Q1 2024 25 (1) For the three months ended March 31, 2024, due to the net loss attributable to Atleos common stockholders, potential common shares that would have caused dilution, such as restricted stock units and stock options, have been excluded from the GAAP diluted share count because their effect would have been anti-dilutive. The dilutive impact of these shares are included in the calculation of non-GAAP diluted EPS. Therefore, GAAP diluted EPS and non-GAAP diluted EPS may not mathematically reconcile.

 
GAAP TO NON-GAAP RECONCILIATION $ in millions, except per share amounts Gross Margin Gross Margin rate Operating Expenses Income (loss) from operations Interest & Other Expenses, Net Income Tax Expense (Benefit) Effective Income Tax Rate Net Income attributable to Atleos Earnings per Share(1) GAAP Results $220 22.3% $154 $66 $(4) $25 40.3% $36 $0.51 Plus: Special Items Transformation and restructuring costs — —% — — — — — — Stock-based compensation expense 5 0.5% (9) 14 — 1 13 0.18 Acquisition-related amortization of intangibles 15 1.5% (10) 25 — 6 19 0.27 Separation costs — —% (7) 7 — 1 6 0.09 Non-GAAP Adjusted Results $240 24.3% $128 $112 $(4) $33 30.6% $74 $1.05 Q1 2023 26 (1) On October 16, 2023, the date of Separation, 70.6 million shares of Atleos' Common Stock, par value $0.01 per share, were distributed to Voyix shareholders of record as of October 2, 2023, the Record Date. This share amount is utilized for the calculation of basic and diluted earnings per share for all periods presented prior to the Separation. For the three months ended March 31, 2023, these shares are treated as issued and outstanding for purposes of calculating historical earnings per share. For periods prior to the Separation, it is assumed that there are no dilutive equity instruments as there were no equity awards of Atleos outstanding prior to the Separation.

 
Self-Service Banking Network T&T Other(1) Corporate(2) Unallocated Total Product Revenue $190 $17 $2 $31 $— $240 Service Revenue $438 $293 $49 $30 $— $810 Total Revenue $628 $310 $51 $61 $— $1,050 Cost of Products $150 $16 $2 $29 $15 $212 Cost of Services $308 $227 $33 $26 $23 $617 SG&A and R&D Expenses(3) $50 $32 $6 $2 $59 $149 Income from Operations $120 $35 $10 $4 $(97) $72 Q1 2024 SEGMENT RESULTS - GAAP $ in millions 27 (1) Other represents certain other immaterial business operations, including commerce-related operations in countries that Voyix exited that are aligned to Atleos, that do not represent a reportable segment. For periods after the separation from Voyix, Other also includes revenues from commercial agreements with Voyix. (2) Corporate includes income and expenses related to corporate functions that are not specifically attributable to an individual reportable segment. (3) Selling, general and administrative expenses is presented as "SG&A" and research and development expenses is presented as "R&D" above.

 
Self-Service Banking Network T&T Other(1) Corporate(2) Unallocated Total Product Revenue $190 $17 $2 $31 $— $240 Service Revenue $438 $293 $49 $30 $— $810 Total Revenue $628 $310 $51 $61 $— $1,050 Adjusted Cost of Products (non-GAAP) $150 $16 $2 $29 $15 $212 Adjusted Cost of Services (non-GAAP) $307 $206 $33 $26 $22 $594 Adjusted SG&A and R&D Expenses(3) (non-GAAP) $50 $29 $6 $2 $41 $128 Adjusted Income from Operations (non-GAAP) $121 $59 $10 $4 $(78) $116 Adjusted EBITDA (non- GAAP) $134 $86 $10 $4 $(72) $162 Q1 2024 SEGMENT RESULTS - NON-GAAP $ in millions 28 (1) Other represents certain other immaterial business operations, including commerce-related operations in countries that Voyix exited that are aligned to Atleos, that do not represent a reportable segment. For periods after the separation from Voyix, Other also includes revenues from commercial agreements with Voyix. (2) Corporate includes income and expenses related to corporate functions that are not specifically attributable to an individual reportable segment. (3) Selling, general and administrative expenses is presented as "SG&A" and research and development expenses is presented as "R&D" above.

 
GAAP Transformation Costs Stock Based Compensation Acquisition Related Amortization of Intangibles Separation Costs Non-GAAP Self Service Banking $ 308 $ — $ — $ (1) $ — $ 307 Network 227 — — (21) — 206 T&T 33 — — — — 33 Other 26 — — — — 26 Corporate Unallocated 23 — (1) — — 22 Total Cost of Services 617 — (1) (22) — 594 Self Service Banking 50 — — — — 50 Network 32 — — (3) — 29 T&T 6 — — — — 6 Other 2 — — — — 2 Corporate Unallocated 59 (1) (9) — (8) 41 Total SG&A and R&D Expenses 149 (1) (9) (3) (8) 128 Self Service Banking 120 — — 1 — 121 Network 35 — — 24 — 59 T&T 10 — — — — 10 Other 4 — — — — 4 Corporate Unallocated (97) 1 10 — 8 (78) Total Income from Operations $ 72 $ 1 $ 10 $ 25 $ 8 $ 116 Q1 2024 GAAP TO NON-GAAP Segment Reconciliation $ in millions 29

 
Q1 2024 Q1 2023 Cash provided by operating activities $148 $120 Total capital expenditures $(30) $(23) Pension contributions $1 $1 Restricted cash settlement activity $(18) $(27) Temporary transfer of funds from Voyix $(32) $— Adjusted Free Cash Flow-Unrestricted $69 $71 $ in millions GAAP TO NON-GAAP RECONCILIATION 30

 
THANK YOU 31

 
v3.24.1.1.u2
Document and Entity Information
May 13, 2024
Document and Entity Information  
Document Type 8-K
Document Period End Date May 13, 2024
Entity Registrant Name NCR ATLEOS CORPORATION
Entity File Number 001-41728
Entity Incorporation, State or Country Code MD
Entity Tax Identification Number 92-3588560
Entity Address, Address Line One 864 Spring Street NW
Entity Address, City or Town Atlanta
Entity Address, State or Province GA
Entity Address, Postal Zip Code 30308
City Area Code 832
Local Phone Number 308-4999
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.01 per share
Trading Symbol NATL
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0001974138
Amendment Flag false
National Interstate (NYSE:NATL)
Historical Stock Chart
From May 2024 to Jun 2024 Click Here for more National Interstate Charts.
National Interstate (NYSE:NATL)
Historical Stock Chart
From Jun 2023 to Jun 2024 Click Here for more National Interstate Charts.