|[November 13, 2012]
Xerox CEO to Investors: Services Growth, Document Technology Leadership to Deliver 2013 Earnings Expansion, Strong Operating Cash
NEW YORK --(Business Wire)--
At its annual investor conference to be held here today, Xerox
(NYSE: XRX) is detailing its strategy to expand earnings and deliver
long-term value for shareholders through continued growth in services,
market leadership in document technology
and its annuity-based business model.
"Transforming Xerox to a services-led business - now accounting for more
than half of our revenue - is creating a strong foundation for Xerox's
future," said Ursula
Burns, chairman and chief executive officer. "Our diverse services
portfolio, deep industry expertise and integrated document solutions
give our company a competitive advantage and give our clients
unparalleled value in simplifying the complex ways work gets done.
"Our investments are aligned with areas of greatest growth opportunity
and we're differentiated through our respected strength in innovation,"
she added. "With a clear view on the market trends in our industries,
our focus is on delivering operational improvements that expand margins,
increasing our base of recurring revenue and generating strong operating
cash - all of which deliver long-term value for shareholders and
sustainable success for Xerox."
Building Shareholder Value: 2013 Financial Performance Expectations
During the conference, the company will provide details on its
expectations for 2013 financial performance, including approximately 10
percent earnings expansion and revenue in the range of flat to up 2
percent. Full-year 2013 GAAP earnings per share are expected to be in
the range of $0.94 to $1.00. Adjusted earnings per share are expected to
be $1.09 to $1.15.
Through its cash-generating annuity revenue, Xerox expects operating
cash flow of $2.1 billion to $2.4 billion in 2013. Building on its share
repurchase plan, the company's board
of directors approved a $1 billion increase to the current
authorization. Xerox expects to allocate at least $400 million in cash
for share repurchase next year, adding to the $900 million to $1.1
billion in stock buyback planned for this year.
In addition, subject to approval from its board of directors, the
company will increase its dividend by 35 percent to 5.75 cents per
quarter, beginning with the dividend payable on April 30, 2013.
Fourth-Quarter 2012 Earnings Guidance Includes Restructuring Charge
As stated last month when Xerox announced its third-quarter earnings,
the company plans to take a restructuring charge in the fourth quarter,
which is estimated to be $100 million or 5 cents a share. The
restructuring is primarily focused on improving cost efficiencies in the
company's services business. Including the restructuring charge, Xerox
now expects fourth-quarter 2012 GAAP earnings per share of 24 to 26
cents or adjusted earnings per share of 28 to 30 cents.
Xerox will host the live video webcast of this year's conference at 9
a.m. ET at http://event.xfactorcom.com/xerox/20121113/.
A replay will be available after 5 p.m. ET, Tuesday, Nov. 13.
The declaration and payment of future dividends is subject to the
approval by the company's board of directors, in its sole discretion,
after considering various factors, including the Company's financial
condition, historical and forecast operating results, and available cash
flow, as well as any applicable laws and contractual covenants and any
other relevant factors. The Company's practice regarding payment of
dividends may be modified at any time and from time to time.
During this meeting, Xerox Executives will make "forard-looking
statements" as defined in the Private Securities Litigation Reform Act
of 1995. The words "anticipate," "believe," "estimate," "expect,"
"intend," "will," "should" and similar expressions, as they relate to
us, are intended to identify forward-looking statements. These
statements reflect management's current beliefs, assumptions and
expectations and are subject to a number of factors that may cause
actual results to differ materially. These factors include but are not
limited to: changes in economic conditions, political conditions, trade
protection measures, licensing requirements and tax matters in the
United States and in the foreign countries in which we do business;
changes in foreign currency exchange rates; actions of competitors; our
ability to obtain adequate pricing for our products and services and to
maintain and improve cost efficiency of operations, including savings
from restructuring actions; the risk that unexpected costs will be
incurred; our ability to expand equipment placements; the risk that
subcontractors, software vendors and utility and network providers will
not perform in a timely, quality manner; the risk that individually
identifiable information of customers, clients and employees could be
inadvertently disclosed or disclosed as a result of a breach of our
security; our ability to recover capital investments; development of new
products and services; our ability to protect our intellectual property
rights; interest rates, cost of borrowing and access to credit markets;
the risk that multi-year contracts with governmental entities could be
terminated prior to the end of the contract term; reliance on third
parties for manufacturing of products and provision of services; our
ability to drive the expanded use of color in printing and copying; the
outcome of litigation and regulatory proceedings to which we may be a
party; and other factors that are set forth in the "Risk Factors"
section, the "Legal Proceedings" section, the "Management's Discussion
and Analysis of Financial Condition and Results of Operations" section
and other sections of our Quarterly Reports on Form 10-Q for the
quarters ended March 31, 2012, June 30, 2012 and September 30, 2012 and
our 2011 Annual Report on Form 10-K filed with the Securities and
Exchange Commission. The Company assumes no obligation to update any
forward-looking statements as a result of new information or future
events or developments, except as required by law.
With sales approaching $23 billion, Xerox
(NYSE: XRX) is the world's leading enterprise for business
process and document
management. Its technology, expertise and services
enable workplaces - from small businesses to large global enterprises -
to simplify the way work gets done so they operate more effectively and
focus more on what matters most: their real
business. Headquartered in Norwalk, Conn., Xerox offers business
process outsourcing and IT
outsourcing services, including data processing, healthcare
benefits management, finance
solutions, and customer
relationship management services for commercial and government
organizations worldwide. The company also provides extensive
technology, services, software
Xerox supplies for graphic
communication and office
printing environments of any size. The 140,000 people of Xerox serve
clients in more than 160 countries. For more information, visit http://www.xerox.com,
For investor information, visit http://www.xerox.com/investor.
This release refers to the non-GAAP financial measure adjusted EPS
(earnings per share) - fourth-quarter 2012 and full-year 2013 guidance
excludes the amortization of intangible assets.
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