Xerox Releases Fourth-Quarter and Full-Year Results
Xerox has released financial results for its fourth quarter and full-year results. Here are the highlights:
- $1.78 billion of revenue in Q4, down 7.9% year-over-year, or down 7.4% in constant currency; $7.04 billion of FY revenue, up 0.2% year-over-year, or down 1.4% in constant currency.
- Q4 and FY GAAP (loss)/earnings per share (EPS) of $(3.97) and $(2.56), down $4.33 and $3.40 year-over-year, respectively. Both Q4 and FY GAAP EPS include an after-tax non-cash goodwill impairment charge of $750 million or $4.38 and $4.08 per share, respectively.
- Q4 and FY adjusted EPS of $0.34 and $1.51, down $0.24 and up $0.10 year-over-year, respectively.
- Q4 adjusted operating margin of 4.8%, down 470 basis points year-over-year; FY adjusted operating margin of 5.3%, down 130 basis points year-over-year.
- $198 million of operating cash flow in Q4, down $37 million year-over-year; $629 million of FY operating cash flow, up $81 million year-over-year.
- $182 million of free cash flow in Q4, down $39 million year-over-year; $561 million of FY free cash flow, up $87 million year-over-year.
- Delivered $375 million of targeted 2021 gross cost savings through Project Own It, or $1.8 billion since inception.
- Returned more than $1 billion to shareholders, close to double FY 2021 free cash flow.
“Our team’s focus and dedication drove improved results in 2021 despite ongoing challenges caused by the pandemic and global supply chain disruptions,” said Xerox vice chairman and CEO John Visentin. “Our ability to increase free cash flow, while investing for sustainable, long-term growth and improving our operations, highlights the quality of our team and strategy. We stood up Xerox Financial Services, CareAR and Innovation (PARC), while laying the foundation for growth in print, digital solutions and IT services. We look forward to sharing more detail about our long-term plans and strategies for monetizing our investments in growth at our Investor Day in February.”
The company expects to grow revenue in 2022. Guidance assumes supply chain and pandemic-related disruptions persist through the first half of the year. The company also expects to generate at least $400 million of free cash flow, inclusive of incremental cash investments in new businesses.
- Revenue of at least $7.1 billion in actual currency
- Free cash flow of at least $400 million
- Return at least 50% of free cash flow to shareholders
Xerox Acquires Canadian IT Services Provider, Powerland, to Grow Presence in IT Services Market
Xerox Holdings Corporation announced on February 2 that it has acquired Powerland, a leading IT services provider in Canada, for cash. The acquisition strengthens Xerox’s IT services offerings in North America, which include cloud, cyber security, end user computing and managed services.
Powerland serves customers throughout Canada and provides a wide array of technology solutions and services including cloud, hybrid cloud, cyber security, and end-user computing solutions based on individual business needs. Powerland recently earned 2021 industry accolades including Nvidia Partner of the Year, Dell Marketing Partner of the Year North America, HPE Service Partner of the Year and Tech Data Circle of Excellence.
“Today, the ability to quickly adapt to change and remain competitive requires a strong IT partner,” said Martin Bachant, president, Xerox Canada. “Combining the talented teams of Powerland and Xerox IT Services provides a greater value proposition for customers with support, information security expertise and technology solutions from major IT manufacturers. We manage our customers’ technology so they can manage their business.”
Recent research shows that SMBs will increase their investments in key IT solutions such as cloud infrastructure, managed IT services, collaboration solutions and cyber security. The addition of Powerland will enable Xerox to expand reach in North America to offer increased value to customers throughout Canada.
This acquisition continues Xerox’s commitment to expand its IT services business. Xerox acquired both ITEC Connect, a leader in IT services in the UK, and Digitex, an IT services provider in Canada, in March 2020. Xerox acquired Competitive Computing (C2), a Vermont based IT services company, in October 2021. The global IT services market is sized at more than $680 billion annually according to Techaisle.