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Q1 2019 Earnings Call
April 25, 2019 8:00 a.m. ET" data-reactid="23" type="text">Xerox (NYSE: XRX)
Q1 2019 Earnings Call
April 25, 2019 8:00 a.m. ET


  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:


Good morning, and welcome to the Xerox Corporation first-quarter 2019 earnings release conference call, hosted by John Visentin, vice chairman and chief executive officer. He is joined by Bill Osbourn, chief financial officer. During this call, Xerox executives will refer to slides that are available on the web at At the request of Xerox Corporation, today's conference call is being recorded.

Other recording and/or rebroadcasting of this call are prohibited without the express permission of Xerox. After the presentation, there will be a question-and-answer session. [Operator instructions] During this call, Xerox executives will make comments that contain forward-looking statements, which, by their nature, address matters that are in the future and are uncertain. Actual future financial results may be materially different than those expressed herein.

At this time, I would like to turn the meeting over to Mr. Visentin. Mr. Visentin, you may begin.

John Visentin -- Vice Chairman and Chief Executive Officer

Good morning, and thank you for joining our Q1 2019 earnings call. Today, I'm going to give you a progress report on how we are executing on our strategy, starting with our financial highlights. Our transformation initiatives are yielding results which give us confidence to raise our full-year earnings guidance despite revenue declines. We are investing in our core business, as well as new technologies that create value for our stakeholders and position Xerox for the long-term growth.

Overall, we saw improvements in margin. Operating cash flow and earnings per share as compared to the prior-year period. Adjusted operating margin was 11.3%, up 140 basis points year over year. Margin expansion contributed to us delivering adjusted earnings per share of $0.91, up $0.23, or 34% year over year.

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It's my understanding that most of these savings came from the backs of the employees and the consolidation of many Global and Xerox locations.  Yes, Xerox is profitable, but I also know of many xclint sales people that have left the Global (XBS) ranks.  You just can't replace these peeps overnight.

Winners: John Visentin and Xerox shareholders

Losers: Employees

Norwalk-based Xerox jettisoned 400 more jobs in the first quarter of the year while leaving unfilled roughly another 1,100 that opened up as a result of employee attrition.

The reductions took Xerox’s workforce to 30,900 people at the end of March.

Under CEO John Visentin, revenue dropped 9 percent from a year earlier to $2.2 billion, but profits surged to $133 million from $23 million in the first quarter of 2018.

Shares were down 5 percent Thursday to $32.17, but remain up 60 percent on the year.

Xerox paid out $24 million in severance between January and March and another $12 million to cancel existing leases, with the company stating it has another $74 million in restructuring charges budgeted for the coming 12 months.

“We optimized our workforce, and while we don’t ever want to minimize the risk of disruption that’s created by all these changes, ... in each case we made these changes because we know what’s best for Xerox in the long-term,” said Bill Osbourn Jr., chief financial officer of Xerox, speaking Thursday on a conference call with investment analysts. “I personally met with over 300 of our managers, and I can tell you that while there was some disruption, they are all excited about the future because we are investing in the long-term.”

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