Home Consumer Goods Xerox spinoff Conduent finished last year $2 billion in debt

Xerox spinoff Conduent finished last year $2 billion in debt

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Conduent, the business process services firm spun off last year from Xerox, announced fourth-quarter and full-year 2016 financial results reflecting its last period as part of Xerox Corp., headquartered in Norwalk.

Fourth quarter adjusted revenues were $1.597 billion, with adjusted earnings per share of 29 cents. The company, now based in Florham Park, N.J., generated $146 million in cash flow from operations during the fourth quarter and ended 2016 with a cash balance of $390 million.

Full-year adjusted revenues were $6.49 billion, with adjusted earnings per share of $1.06. Conduent generated $108 million in cash flow from operations for the full-year 2016.

Total debt was approximately $2 billion as of Dec. 31; that figure included the impact from a goodwill impairment charge of $935 million, $828 million net of income tax, and a NY MMIS charge of $161 million, $98 million net of income tax. The firm noted that it borrowed an additional $100 million on its Term Loan B last month.

“In 2016, we were focused on executing a successful separation from Xerox to become a standalone public company,” Conduent CEO Ashok Vemuri said. “As we move into 2017, we are aligning our go-to-market and capital allocation strategies with the competitive requirements of our industry. Our near-term focus is on strengthening client relationships, completing the buildout of our management structure and continuing the success of our strategic transformation program critical in reaching our margin expansion goals.”

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