Earnings Call Excerpt
Diebold, Incorporated (DBD)
Q2 2009 Earnings Call Transcript
August 4, 2009 10:00 am ET
Executives
John Kristoff -- VP and Chief Communications Officer
Tom Swidarski -- President and CEO
Leslie Pierce -- VP, Interim CFO and Corporate Controller
Analysts
Kartik Mehta -- Northcoast Research
Matt Summerville -- KeyBanc
Reik Read -- Robert Baird & Company
Gil Luria -- Wedbush
Zahid Siddique -- Gabelli & Company
Edward Wheeler -- Buckingham Research
Presentation
Operator
Good day, everybody; and welcome to the Diebold Incorporated second quarter financial results conference call. Today's call is being recorded.
At this time, for opening remarks and introductions, I would like to turn the call over to the Vice President and Chief Communications Officer, Mr. John Kristoff. Please go ahead, sir.
John Kristoff
Thank you, Bill. Good morning, everyone; and thank you for joining us for Diebold's second-quarter conference call.
Joining me today are Tom Swidarski, President and Chief Executive Officer; and Leslie Pierce, our Corporate Controller and Interim Chief Financial Officer.
Just a few notes before we get started. In addition to the earnings release, we have provided a supplementary presentation on the Investor page of our website. Tom and Leslie will be walking through this presentation as part of their comments today, and we would encourage you to follow along.
We have also included non-GAAP financial measures throughout our presentation this morning. Specifically, I refer you to slides 24 through 34, which provide our rationale for the use of non-GAAP measures, as well GAAP to non-GAAP reconciliations.
A replay of this conference call will be available later today from our website. And as a reminder, some of the comments today may be considered forward-looking statements. Internal and/or external factors could significantly impact actual results, and as a precaution, we refer you to the more detailed risk factors that have previously been filed with the SEC.
And now, with opening remarks, I'll turn it over to Tom.
Tom Swidarski
Thanks, John. Good morning, everyone.
Let me begin by saying I am pleased with our performance in the second quarter. We outperformed our internal earnings projections, we continue to make progress in lowering our overall cost structure, and stayed on track with our Smart Business 200 cost reduction initiative.
We generated our eighth consecutive quarter of year-over-year improved service gross margins and achieved the highest quarterly service gross margin in nearly 6 years. We also made further progress in working capital management. We generated significant free cash flow and improved our net debt position. Our strong balance sheet and liquidity continues to be a particularly important quality in this environment.
- To read the full transcript on Seeking Alpha, click here »
