Unisys Reiterates Full-Year Guidance and Reports Solid
First Quarter Results
- Revenue increased 15.6% year over year (YoY), or 18.9% YoY
in constant currency(1)
- Excluding License and Support (Ex-L&S)(13),
revenue increased 1.7% YoY, or 4.6% in constant currency
- Gross profit of $159.0M vs.
$87.4M in 1Q22, an increase of 81.9%
YoY
- Operating profit margin of 9.7%, non-GAAP operating
profit(8) margin of 11.6%
- GAAP net loss of $175.4M and
diluted loss per share of $2.58,
includes $183.2M non-cash pension
settlement charge
- Non-GAAP net income(10) of $34.7M and Non-GAAP diluted earnings per share of
$0.51
- Total company pipeline(3) grew 6% YoY and 15%
sequentially
- Next-Gen Solutions (7) pipeline grew 16% YoY and
34% sequentially
BLUE
BELL, Pa., May 2, 2023 /PRNewswire/ -- Unisys
Corporation (NYSE: UIS) today reported financial results for the
first quarter ended March 31, 2023.
Unisys announced year-over-year revenue growth and margin
expansion as strategic initiatives continue to yield results.
In order to best evaluate the progress of our growth initiatives,
we isolate our results excluding the L&S portion of Enterprise
Computing Solutions (ECS), which can be lumpy based on the timing
of license renewals. Ex-L&S revenue grew 1.7%, or 4.6% on a
constant currency basis and gross margin expanded 310 bps.
"We are pleased with the strong start to 2023. The first quarter
demonstrates our continued focus on achieving operational
efficiencies while continuing to invest in the future growth of our
Next-Gen Solutions in Modern Workplace, Digital Platforms &
Applications, Specialized Services & Next-Gen Compute, and
Micro-Market Solutions. We achieved year-over-year growth in TCV
signings led by expanding scope with existing clients, as well as
15% sequential growth in our qualified pipeline," said Unisys
Chair and CEO Peter A. Altabef.
Summary of First Quarter 2023 Results
Please refer to the accompanying financial tables for a
reconciliation of the GAAP to non-GAAP measures presented except
for financial guidance since such a reconciliation is not
practicable without unreasonable effort.
- Revenue:
-
- Revenue of $516.4M vs.
$446.7M in 1Q22, up 15.6% YoY, or up
18.9% in constant currency, primarily due to higher software
license renewals within ECS
- Gross Profit:
-
- Gross profit of $159.0M vs.
$87.4M in 1Q22, an increase of 81.9%
YoY
- Gross profit margin was 30.8% vs. 19.6% in 1Q22, up 1120
bps
- YoY improvement was primarily due to higher software license
renewals within ECS
- Operating Profit:
-
- GAAP operating profit of $49.9M
vs. $23.5M operating loss in
1Q22
- GAAP operating profit margin of 9.7% vs. 5.3% operating loss
margin in 1Q22
- Non-GAAP operating profit of $60.1M vs. $14.1M
operating loss in 1Q22
- Non-GAAP operating profit margin of 11.6% vs. 3.2% operating
loss margin in 1Q22
- Net Income/Loss:
-
- GAAP net loss of $175.4M includes
a one-time, non-cash pension settlement loss of $183.2M related to the purchase of an annuity
contract that reduced pension liabilities vs. a net loss of
$57.3M in 1Q22
- Non-GAAP net income of $34.7M vs.
a net loss of $27.3M in 1Q22
- Adjusted EBITDA:
-
- Adjusted EBITDA(9) of $98.2M vs. $34.2M
in 1Q22, up 187.1%
- Adjusted EBITDA margin of 19.0% vs. 7.7% in 1Q22
- Earnings/Loss Per Share:
-
- Diluted loss per share of $2.58,
which included a one-time, non-cash pension settlement loss noted
above of $2.70 per diluted share vs.
diluted loss per share of $0.85 in
1Q22
- Non-GAAP diluted earnings per share of $0.51 vs. diluted loss per share of $0.41 in 1Q22
- Cash Flow:
-
- Cash from operations was $12.8M
vs. cash used of $33.0M in 1Q22
- Free cash flow(11) was $(7.5)M vs. $(51.7)M in 1Q22
- Adjusted free cash flow(12) was $20.1M vs. $(27.0)M
in 1Q22
- YoY improvement in free cash flow primarily due to higher
technology collections in 2023 vs. 2022
- Pipeline, ACV, TCV and Backlog:
-
- Total company pipeline increased 6% YoY
- ACV(4) decreased 18% YoY
-
- Primarily driven by the mix of L&S contracts signings;
excluding L&S, ACV decreased 5%
- TCV(5) increased 2% YoY; excluding L&S, TCV
increased 9%
- Backlog(2) was $2.79B
vs. $2.92B in 4Q22
-
- Balance Sheet:
-
- As of March 31, 2023, total cash
and cash equivalents was $391.9M
- The company continued its pension liability-reduction
initiatives during the quarter with the purchase of an annuity
contract valued at approximately $265
million relating to one of its U.S. pension plans. This
action resulted in a one-time, non-cash pension settlement loss of
$183.2 million.
1Q23 Financial Highlights by Segment:
1Q revenue growth in DWS and ECS with YoY margin expansion in
CA&I
Digital Workplace Solutions (DWS):
- Revenue:
-
- DWS revenue of $131.0M vs.
$124.8M in 1Q22, an increase of 5.0%
YoY, or 7.7% in constant currency, primarily due to the timing of
the revenue ramp from recent contract signings
- Gross Margin:
-
- DWS gross profit margin of 11.9% vs. 12.8% in 1Q22, a decrease
of 90 bps due primarily to incremental labor costs in support of
recent contract signings
Cloud, Applications & Infrastructure Solutions
(CA&I):
- Revenue:
-
- CA&I revenue $126.0M vs.
$129.1M in 1Q22, a decline of 2.4%
YoY, or 1.4% YoY in constant currency, due to YoY decline in
traditional infrastructure revenue
- Gross Margin:
-
- CA&I gross profit margin of 13.0% vs. 5.4% in 1Q22, an
increase of 760 bps primarily driven by additional expenses
associated with certain contracts included in 1Q22 as well as
delivery improvements
Enterprise Computing Solutions (ECS):
- Revenue:
-
- ECS revenue of $188.2M vs.
$120.6M in 1Q22, an increase of 56.1%
YoY, or 60.1% in constant currency, due to higher software license
renewals and growth in Specialized Services and Next-Gen
Compute
- Gross Margin:
-
- ECS gross profit margin was 66.7% vs. 52.1% in 1Q22, an
increase of 1460 bps, primarily due to higher software license
renewals
2023 Financial Guidance
The company reiterates full-year 2023 revenue and profitability
guidance. Constant currency revenue growth is expected to be in the
range of (3%) to (7%) YoY, which assumes Ex-L&S revenue in the
range of (1%) to +4% YoY. The company anticipates that non-GAAP
operating profit margin will be in the range of 2% to 4% and
adjusted EBITDA margin in the range of 9.5% to 11.5%.
"It was a solid start to the year, positioning us to meet our
full-year guidance despite the YoY declines we expect in License
and Support revenue over the next three quarters. We continue to
expect YoY improvement in our underlying Ex-L&S solutions,
demonstrating progress with our growth and margin initiatives,"
said Chief Financial Officer Deb
McCann.
Conference Call
Unisys will hold a conference call with the financial community
on Wednesday, May 3 at 8 a.m. Eastern Time to discuss the results.
The live, listen-only webcast, as well as the accompanying
presentation materials, can be accessed on the Unisys Investor
Website at www.unisys.com/investor. In addition, domestic callers
can dial 1-844-695-5518 and international callers can dial
1-412-902-6749 and provide the following conference passcode:
Unisys Corporation Call.
A replay of the webcast will be available on the Unisys Investor
Website shortly following the conference call. A replay will also
be available by dialing 1-877-344-7529 for domestic callers or
1-412-317-0088 for international callers and entering access code
2483053 from two hours after the end of the call until May 10, 2023.
(1) Constant currency – A significant
amount of the company's revenue is derived from international
operations. As a result, the company's revenue has been and will
continue to be affected by changes in the U.S. dollar against major
international currencies. The company refers to revenue growth
rates in constant currency or on a constant currency basis so that
the business results can be viewed without the impact of
fluctuations in foreign currency exchange rates to facilitate
comparisons of the company's business performance from one period
to another. Constant currency is calculated by retranslating
current and prior-period revenue at a consistent exchange rate
rather than the actual exchange rates in effect during the
respective periods.
(2) Backlog – Represents future
revenue associated with contracted work which has not yet been
delivered or performed. Although the company believes this revenue
will be recognized, it may, for commercial reasons, allow the
orders to be cancelled, with or without penalty.
(3) Pipeline – Represents qualified
prospective sale opportunities for which bids have been submitted
or vetted prospective sales opportunities which are being actively
pursued. There is no assurance that pipeline will translate into
revenue.
(4) Annual Contract Value (ACV) –
Represents the revenue expected to be recognized during the first
12 months following the signing of a contract.
(5) Total Contract Value (TCV) –
Represents the estimated revenue related to contracts signed in the
period without regard for cancellation terms. New business TCV
represents TCV attributable to new scope for existing clients and
new logo contracts.
(6) Book-to-bill – Represents total
contract value booked divided by revenue in a given period.
(7) Next-Gen Solutions – Includes our
Modern Workplace solutions within DWS, Digital Platforms and
Applications (DP&A) solutions within CA&I, Specialized
Services and Next-Gen Compute (SS&C) solutions within ECS, as
well as Micro-Market solutions.
Non-GAAP Information
Certain financial information is presented in this release under
both a U.S. generally accepted accounting basis (GAAP) and a
non-GAAP basis. Non-GAAP financial measures exclude certain items
such as postretirement expense and cost-reduction activities and
other expenses that the company believes are not indicative of its
ongoing operations, as they may be unusual or non-recurring. The
inclusion of such items in financial measures can make the
company's profitability and liquidity results difficult to compare
to prior periods or anticipated future periods and can distort the
visibility of trends associated with the company's ongoing
performance. Management also believes that non-GAAP measures are
useful to investors because they provide supplemental information
about the company's financial performance and liquidity, as well as
greater transparency into management's view and assessment of the
company's ongoing operating performance. The following measures are
often provided and utilized by the company's management, analysts,
and investors to enhance comparability of year-over-year results.
These measures should not be relied upon as substitutes for, or
considered in isolation from, measures calculated in accordance
with U.S. GAAP.
(8) Non-GAAP operating profit – This
measure excludes pretax postretirement expense and pretax charges
in connection with cost-reduction activities and other
expenses.
(9) EBITDA & adjusted EBITDA –
Earnings before interest, taxes, depreciation and amortization
(EBITDA) is calculated by starting with net income (loss)
attributable to Unisys Corporation common shareholders and adding
or subtracting the following items: net income (loss) attributable
to noncontrolling interests, interest expense (net of interest
income), provision for (benefit from) income taxes, depreciation
and amortization. Adjusted EBITDA further excludes
postretirement expense and cost-reduction activities and other
expenses, non-cash share-based expense, and other (income) expense
adjustments.
(10) Non-GAAP net income and non-GAAP diluted
earnings per share – These measures excluded
postretirement expense and charges in connection with
cost-reduction activities and other expenses. The tax amounts
related to these items for the calculation of non-GAAP diluted
earnings per share include the current and deferred tax expense and
benefits recognized under GAAP for these items.
(11) Free cash flow – Represents cash
flow from operations less capital expenditures.
(12) Adjusted free cash flow – Represents
free cash flow less cash used for postretirement funding and
cost-reduction activities and other payments.
(13) Excluding License and Support
(Ex-L&S) – These measures exclude revenue and gross
profit in connection with software license and support revenue
within the company's ECS segment. The company provides these
measures to allow investors to isolate the impact of software
license renewals, which tend to be lumpy, and related support
services in order to evaluate the company's business outside of
these areas.
About Unisys
Unisys is a global technology solutions company that powers
breakthroughs for the world's leading organizations. Our solutions
– digital workplace; cloud, applications & infrastructure;
enterprise computing; and business process – help our clients
challenge the status quo and create new possibilities. To learn how
we deliver breakthroughs for our clients, visit unisys.com.
Forward-Looking Statements
Any statements contained in this release that are not historical
facts are forward-looking statements as defined in the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements include, but are not limited to, any projections or
expectations of earnings, revenues, non-GAAP operating profit
margin, adjusted EBITDA margin, annual contract value, total
contract value, new business ACV or TCV, backlog, pipeline or other
financial items; any statements of our plans, strategies or
objectives for future operations; statements regarding future
economic conditions or performance; and any statements of belief or
expectation. All forward-looking statements rely on assumptions and
are subject to various risks and uncertainties that could cause
actual results to differ materially from expectations. In
particular, statements concerning annual and total contract value
are based, in part, on the assumption that each of those contracts
will continue for their full contracted term. Risks and
uncertainties that could affect our future results include, but are
not limited to, the following: our ability to grow revenue and
expand margin in our Digital Workplace Solutions and Cloud,
Applications & Infrastructure Solutions businesses; our ability
to maintain our installed base and sell new solutions and related
services; our ability to attract and retain experienced personnel
in key positions; the potential adverse effects of aggressive
competition; our ability to effectively anticipate and respond to
rapid technological innovation in our industry; our ability to
retain significant clients and attract new clients; our contracts
may not be as profitable as expected or provide the expected level
of revenues; the business and financial risk in implementing
acquisitions or dispositions; we have significant underfunded
pension obligations; cybersecurity incidents could result in
incurring significant costs and could harm our business and
reputation; our failure to remediate material weaknesses in our
disclosure controls and procedures and internal controls over
financial reporting or any other material weaknesses in the future
could result in material misstatements in our financial statements;
our ability to access financing markets; the risks of doing
business internationally when a significant portion of our revenue
is derived from international operations; the adverse effects of
global economic conditions, acts of war, terrorism, natural
disasters or the widespread outbreak of infectious diseases; a
reduction in our credit rating; a significant disruption in our IT
systems could adversely affect our business and reputation; the
performance and capabilities of third parties with whom we have
commercial relationships; we may face damage to our reputation or
legal liability if our clients are not satisfied with our services
or products; the potential for intellectual property infringement
claims to be asserted against us or our clients; the possibility
that legal proceedings could affect our results of operations or
cash flow or may adversely affect our business or reputation; a
potential impairment of goodwill or intangible assets; a failure to
meet standards or expectations with respect to our environmental,
social and governance practices; and our ability to use our net
operating loss carryforwards and certain other tax attributes may
be limited. Additional discussion of factors that could affect our
future results is contained in our periodic filings with the
Securities and Exchange Commission. We assume no obligation to
update any forward-looking statements. While included under
the definition of forward-looking statements, for the avoidance of
doubt, any specific guidance or color that we may provide from time
to time regarding our expected future financial performance is
effective only on the date given. We generally will not update,
reaffirm or otherwise comment on any such information except as we
deem necessary, and then only in a manner that complies with
Regulation FD.
RELEASE NO.: 0502/9905
Unisys and other Unisys products and services mentioned herein,
as well as their respective logos, are trademarks or registered
trademarks of Unisys Corporation. Any other brand or product
referenced herein is acknowledged to be a trademark or registered
trademark of its respective holder.
UIS-Q
UNISYS
CORPORATION
CONSOLIDATED
STATEMENTS OF INCOME (LOSS)
(Unaudited)
(Millions, except
per share data)
|
|
|
|
Three Months
Ended
March
31,
|
|
|
2023
|
|
2022
|
Revenue
|
|
|
|
|
Services
|
|
$ 403.9
|
|
$ 392.1
|
Technology
|
|
112.5
|
|
54.6
|
|
|
516.4
|
|
446.7
|
Costs and
expenses
|
|
|
|
|
Cost of
revenue
|
|
|
|
|
Services
|
|
316.1
|
|
321.3
|
Technology
|
|
41.3
|
|
38.0
|
|
|
357.4
|
|
359.3
|
Selling, general and
administrative
|
|
102.9
|
|
104.4
|
Research and
development
|
|
6.2
|
|
6.5
|
|
|
466.5
|
|
470.2
|
Operating income
(loss)
|
|
49.9
|
|
(23.5)
|
Interest
expense
|
|
7.6
|
|
8.4
|
Other (expense),
net
|
|
(196.9)
|
|
(21.0)
|
Loss before income
taxes
|
|
(154.6)
|
|
(52.9)
|
Provision for income
taxes
|
|
19.9
|
|
4.1
|
Consolidated net
loss
|
|
(174.5)
|
|
(57.0)
|
Net income attributable
to noncontrolling interests
|
|
0.9
|
|
0.3
|
Net loss
attributable to Unisys Corporation
|
|
$
(175.4)
|
|
$ (57.3)
|
|
|
|
|
|
Loss per share
attributable to Unisys Corporation
|
|
|
|
|
Basic
|
|
$ (2.58)
|
|
$ (0.85)
|
Diluted
|
|
$ (2.58)
|
|
$ (0.85)
|
UNISYS
CORPORATION
SEGMENT
RESULTS
(Unaudited)
(Millions)
|
|
|
|
Total
|
|
DWS
|
|
CA&I
|
|
ECS
|
|
Other
|
Three Months Ended
March 31, 2023
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$ 516.4
|
|
$ 131.0
|
|
$ 126.0
|
|
$ 188.2
|
|
$
71.2
|
Gross profit
percent
|
|
30.8 %
|
|
11.9 %
|
|
13.0 %
|
|
66.7 %
|
|
|
Three Months Ended
March 31, 2022
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$ 446.7
|
|
$ 124.8
|
|
$ 129.1
|
|
$ 120.6
|
|
$
72.2
|
Gross profit
percent
|
|
19.6 %
|
|
12.8 %
|
|
5.4 %
|
|
52.1 %
|
|
|
UNISYS
CORPORATION
CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(Millions)
|
|
|
March 31,
2023
|
|
December 31,
2022
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
391.9
|
|
$
391.8
|
Accounts receivable,
net
|
443.8
|
|
402.5
|
Contract
assets
|
17.2
|
|
28.9
|
Inventories
|
15.9
|
|
14.9
|
Prepaid expenses and
other current assets
|
108.9
|
|
92.3
|
Total current
assets
|
977.7
|
|
930.4
|
Properties
|
397.9
|
|
410.8
|
Less-accumulated
depreciation and amortization
|
324.6
|
|
334.9
|
Properties,
net
|
73.3
|
|
75.9
|
Outsourcing assets,
net
|
58.7
|
|
66.4
|
Marketable software,
net
|
164.9
|
|
165.1
|
Operating lease
right-of-use assets
|
39.0
|
|
42.5
|
Prepaid postretirement
assets
|
115.5
|
|
119.5
|
Deferred income
taxes
|
113.5
|
|
118.6
|
Goodwill
|
287.2
|
|
287.1
|
Intangible assets,
net
|
49.9
|
|
52.4
|
Restricted
cash
|
8.6
|
|
10.9
|
Assets
held-for-sale
|
6.4
|
|
6.4
|
Other long-term
assets
|
171.7
|
|
190.4
|
Total
assets
|
$
2,066.4
|
|
$
2,065.6
|
Total liabilities
and equity
|
|
|
|
Current
liabilities:
|
|
|
|
Current maturities of
long-term debt
|
$
16.0
|
|
$
17.4
|
Accounts
payable
|
151.1
|
|
160.8
|
Deferred
revenue
|
231.6
|
|
200.7
|
Other accrued
liabilities
|
254.1
|
|
271.6
|
Total current
liabilities
|
652.8
|
|
650.5
|
Long-term
debt
|
490.1
|
|
495.7
|
Long-term
postretirement liabilities
|
697.3
|
|
714.6
|
Long-term deferred
revenue
|
115.3
|
|
122.3
|
Long-term operating
lease liabilities
|
25.6
|
|
29.7
|
Other long-term
liabilities
|
31.3
|
|
31.0
|
Commitments and
contingencies
|
|
|
|
Total Unisys
Corporation stockholders' equity (deficit)
|
16.7
|
|
(14.7)
|
Noncontrolling
interests
|
37.3
|
|
36.5
|
Total
equity
|
54.0
|
|
21.8
|
Total liabilities
and equity
|
$
2,066.4
|
|
$
2,065.6
|
UNISYS
CORPORATION
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
(Millions)
|
|
|
|
Three Months
Ended
March
31,
|
|
|
2023
|
|
2022
|
Cash flows from
operating activities
|
|
|
|
|
Consolidated net
loss
|
|
$ (174.5)
|
|
$
(57.0)
|
Adjustments to
reconcile consolidated net loss to net cash provided by (used for)
operating activities:
|
|
|
|
|
Foreign currency
gains
|
|
(3.7)
|
|
(2.2)
|
Non-cash interest
expense
|
|
0.3
|
|
0.4
|
Employee stock
compensation
|
|
4.7
|
|
6.6
|
Depreciation and
amortization of properties
|
|
9.2
|
|
10.4
|
Depreciation and
amortization of outsourcing assets
|
|
12.2
|
|
18.3
|
Amortization of
marketable software
|
|
12.0
|
|
15.8
|
Amortization of
intangible assets
|
|
2.5
|
|
2.4
|
Other non-cash
operating activities
|
|
0.2
|
|
0.4
|
Loss on disposal of
capital assets
|
|
—
|
|
0.5
|
Postretirement
contributions
|
|
(16.4)
|
|
(16.2)
|
Postretirement
expense
|
|
193.2
|
|
10.2
|
Deferred income taxes,
net
|
|
6.3
|
|
(3.7)
|
Changes in operating
assets and liabilities, excluding the effect of
acquisitions:
|
|
|
|
|
Receivables, net and
contract assets
|
|
(1.1)
|
|
94.2
|
Inventories
|
|
(0.8)
|
|
(5.4)
|
Other
assets
|
|
(12.2)
|
|
(26.4)
|
Accounts payable and
current liabilities
|
|
(15.3)
|
|
(79.0)
|
Other
liabilities
|
|
(3.8)
|
|
(2.3)
|
Net cash provided by
(used for) operating activities
|
|
12.8
|
|
(33.0)
|
Cash flows from
investing activities
|
|
|
|
|
Proceeds from
investments
|
|
830.2
|
|
939.0
|
Purchases of
investments
|
|
(821.0)
|
|
(941.3)
|
Investment in
marketable software
|
|
(10.3)
|
|
(11.1)
|
Capital additions of
properties
|
|
(7.3)
|
|
(5.2)
|
Capital additions of
outsourcing assets
|
|
(2.7)
|
|
(2.4)
|
Purchase of
businesses, net of cash acquired
|
|
—
|
|
(0.3)
|
Other
|
|
(0.4)
|
|
(0.4)
|
Net cash used for
investing activities
|
|
(11.5)
|
|
(21.7)
|
Cash flows from
financing activities
|
|
|
|
|
Payments of long-term
debt
|
|
(7.2)
|
|
(7.7)
|
Other
|
|
(0.4)
|
|
(3.5)
|
Net cash used for
financing activities
|
|
(7.6)
|
|
(11.2)
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
|
4.1
|
|
6.2
|
Decrease in cash,
cash equivalents and restricted cash
|
|
(2.2)
|
|
(59.7)
|
Cash, cash
equivalents and restricted cash, beginning of period
|
|
402.7
|
|
560.6
|
Cash, cash
equivalents and restricted cash, end of period
|
|
$
400.5
|
|
$
500.9
|
UNISYS
CORPORATION
RECONCILIATIONS OF
SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(Unaudited)
(Millions, except
per share data)
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
|
2023
|
|
2022
|
GAAP net loss
attributable to Unisys Corporation
|
|
$
(175.4)
|
|
$ (57.3)
|
|
|
|
|
|
|
Postretirement
expense:
|
pretax
|
|
193.2
|
|
10.2
|
|
tax
|
|
(0.2)
|
|
0.2
|
|
net of tax
|
|
193.4
|
|
10.0
|
|
|
|
|
|
|
Cost reduction and
other expenses:
|
pretax
|
|
16.7
|
|
20.1
|
|
tax
|
|
—
|
|
0.1
|
|
net of tax
|
|
16.7
|
|
20.0
|
|
noncontrolling
interest
|
|
—
|
|
—
|
|
net of noncontrolling
interest
|
|
16.7
|
|
20.0
|
|
|
|
|
|
|
Non-GAAP net income
(loss) attributable to Unisys Corporation
|
|
$
34.7
|
|
$ (27.3)
|
|
|
|
|
|
|
Weighted average shares
(thousands)
|
|
67,943
|
|
67,387
|
Plus incremental shares
from assumed conversion:
|
|
|
|
|
Employee stock
plans
|
|
391
|
|
—
|
Non-GAAP adjusted
weighted average shares
|
|
68,334
|
|
67,387
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
|
|
|
|
GAAP
basis
|
|
|
|
|
GAAP net loss
attributable to Unisys Corporation for diluted loss per
share
|
|
$
(175.4)
|
|
$ (57.3)
|
Divided by weighted
average shares
|
|
67,943
|
|
67,387
|
GAAP diluted loss
per share
|
|
$ (2.58)
|
|
$ (0.85)
|
|
|
|
|
|
|
Non-GAAP
basis
|
|
|
|
|
Non-GAAP net income
(loss) attributable to Unisys Corporation for diluted earnings
(loss) per share
|
|
$ 34.7
|
|
$ (27.3)
|
Divided by Non-GAAP
adjusted weighted average shares
|
68,334
|
|
67,387
|
Non-GAAP diluted
earnings (loss) per share
|
$
0.51
|
|
$ (0.41)
|
UNISYS
CORPORATION
RECONCILIATIONS OF
GAAP TO NON-GAAP
(Unaudited)
(Millions)
|
|
FREE CASH
FLOW
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
|
2023
|
|
2022
|
Cash provided by
(used for) operations
|
|
$
12.8
|
|
$ (33.0)
|
Additions to marketable
software
|
|
(10.3)
|
|
(11.1)
|
Additions to
properties
|
|
(7.3)
|
|
(5.2)
|
Additions to
outsourcing assets
|
|
(2.7)
|
|
(2.4)
|
Free cash
flow
|
|
(7.5)
|
|
(51.7)
|
Postretirement
funding
|
|
16.4
|
|
16.2
|
Cost reduction and
other payments, net
|
|
11.2
|
|
8.5
|
Adjusted free cash
flow
|
|
$
20.1
|
|
$ (27.0)
|
UNISYS
CORPORATION
RECONCILIATIONS OF
GAAP TO NON-GAAP
(Unaudited)
(Millions)
|
|
EBITDA
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
|
2023
|
|
2022
|
Net loss
attributable to Unisys Corporation
|
|
$
(175.4)
|
|
$ (57.3)
|
Net income attributable
to noncontrolling interests
|
|
0.9
|
|
0.3
|
Interest expense, net
of interest income of $6.7 and $2.4, respectively*
|
|
0.9
|
|
6.0
|
Provision for income
taxes
|
|
19.9
|
|
4.1
|
Depreciation
|
|
21.4
|
|
28.7
|
Amortization
|
|
14.5
|
|
18.2
|
EBITDA
|
|
$
(117.8)
|
|
$
—
|
|
|
|
|
|
Postretirement
expense
|
|
$ 193.2
|
|
$ 10.2
|
Cost reduction and
other expenses**
|
|
14.3
|
|
15.0
|
Non-cash share based
expense
|
|
4.6
|
|
6.5
|
Other expense, net
adjustment***
|
|
3.9
|
|
2.5
|
Adjusted
EBITDA
|
|
$
98.2
|
|
$
34.2
|
|
*Included in other
(expense), net on the consolidated statements of income
(loss)
|
**Reduced for
depreciation and amortization included above
|
***Other expense, net
as reported on the consolidated statements of income (loss) less
postretirement expense, interest income
and items included in
cost reduction and other expenses
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
|
2023
|
|
2022
|
Revenue
|
|
|
$ 516.4
|
|
$ 446.7
|
Net loss attributable
to Unisys Corporation as a percentage of revenue
|
|
(34.0) %
|
|
(12.8) %
|
Non-GAAP net income
(loss) attributable to Unisys Corporation as a percentage of
revenue
|
|
6.7 %
|
|
(6.1) %
|
Adjusted EBITDA as a
percentage of revenue
|
|
19.0 %
|
|
7.7 %
|
UNISYS
CORPORATION
RECONCILIATIONS OF
GAAP TO NON-GAAP
(Unaudited)
(Millions)
|
|
OPERATING PROFIT
(LOSS)
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2023
|
|
2022
|
GAAP operating
income (loss)
|
|
$
49.9
|
|
$
(23.5)
|
Cost reduction and
other expenses*
|
|
9.9
|
|
8.9
|
Postretirement
expense**
|
|
0.3
|
|
0.5
|
Non-GAAP operating
profit (loss)
|
|
$
60.1
|
|
$
(14.1)
|
|
|
|
|
|
Revenue
|
|
$ 516.4
|
|
$ 446.7
|
|
|
|
|
|
GAAP operating profit
(loss) percent
|
|
9.7 %
|
|
(5.3) %
|
Non-GAAP operating
profit (loss) percent
|
|
11.6 %
|
|
(3.2) %
|
|
*Included in cost of
revenue, selling, general and administrative and research and
development on the consolidated
statements of income
(loss)
|
**Included in selling,
general and administrative on the consolidated statements of income
(loss)
|
|
EXCLUDING LICENSE
AND SUPPORT (EX-L&S) REVENUE AND GROSS PROFIT
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2023
|
|
2022
|
GAAP
revenue
|
|
$
516.4
|
|
$
446.7
|
L&S
revenue
|
|
136.9
|
|
73.4
|
Ex-L&S Non-GAAP
revenue
|
|
$
379.5
|
|
$
373.3
|
|
|
|
|
|
GAAP gross
profit
|
|
$
159.0
|
|
$
87.4
|
L&S gross
profit
|
|
106.5
|
|
47.4
|
Ex-L&S Non-GAAP
gross profit
|
|
$
52.5
|
|
$
40.0
|
|
|
|
|
|
GAAP gross profit
margin percent
|
|
30.8 %
|
|
19.6 %
|
Ex-L&S Non-GAAP
gross profit margin percent
|
|
13.8 %
|
|
10.7 %
|
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SOURCE Unisys Corporation