Next-Gen Solutions Drive Strong Growth in Pipeline;
Company Reaffirms Full-Year Guidance
- Revenue decline of 7.4% year over year (YoY), or a decline
of 6.3% YoY in constant currency(1) due to anticipated
lower License and Support (L&S) renewals
- Excluding License and Support (Ex-L&S)(14),
revenue growth of 4.9% YoY, or growth of 6.5% in constant
currency
- Gross profit margin of 24.3%, down 450 bps, Ex-L&S gross
margin of 16.0%, up 560 bps
- Ex-L&S pipeline(3) growth of 22% YoY and 15%
quarter over quarter (QoQ)
- Next-Gen Solutions(7) pipeline growth of 55% YoY
and 25% QoQ
BLUE
BELL, Pa., Aug. 1, 2023 /PRNewswire/ -- Unisys (NYSE:
UIS) today reported financial results for the second quarter ended
June 30, 2023.
Unisys achieved strong improvement in Ex-L&S revenue and
profitability for the second quarter. Revenue for the quarter
declined 7.4% YoY or a decline of 6.3% YoY in constant currency,
and gross profit margin declined 450 bps, principally due to
expected lower software license renewals. Ex-L&S revenue grew
4.9% YoY, or 6.5% YoY on a constant currency basis and Ex-L&S
gross margin expanded 560 bps YoY.
Double-digit pipeline expansion was driven by new logo
opportunities, especially within Next-Gen Solutions, which include
Modern Workplace, Digital Platforms & Applications, Specialized
Services & Next-Gen Compute, and Micro-Market Solutions. Unisys
Next-Gen Solutions pipeline increased 55% YoY and
25% QoQ.
"Our second quarter results demonstrate continued improvement in
the performance of our Ex-L&S Solutions," said Unisys Chair and
CEO Peter A. Altabef. "These
solutions experienced solid growth and margin expansion during the
period. Our growth was driven by continued demand for our Next-Gen
Solutions. These offerings are leading to new opportunities with
existing and prospective clients who are increasingly viewing
Unisys as an innovative solutions partner in employee experience
and digital transformation. Our portfolio of Next-Gen
Solutions, engineering capabilities and technology ecosystem
position us to help transform enterprises and organizations and
drive business outcomes using the full potential of data and
AI."
Summary of Second 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 $476.8M vs.
$515.0M in 2Q22, down 7.4% YoY,
or down 6.3% YoY in constant currency, primarily due to lower
software license renewals within ECS
- Ex-L&S revenue of $396.0M vs.
$377.4M in 2Q22, up 4.9% YoY, or up
6.5% YoY in constant currency, driven by growth in Digital
Workplace Solutions (DWS) and Specialized Services and Next-Gen
Compute solutions within ECS
- Gross Profit:
-
- Gross profit of $115.8M vs.
$148.1M in 2Q22
- Gross profit margin of 24.3% vs. 28.8% in 2Q22, down
450 bps YoY
- Ex-L&S gross margin of 16.0% vs. 10.4% in 2Q22, up
560 bps YoY
- Operating Profit:
-
- GAAP operating profit of $0.1M
vs. $33.7M operating profit in
2Q22
- GAAP operating profit margin of 0.0% vs. 6.5% operating profit
margin in 2Q22
- Non-GAAP operating profit(8) of $16.3M vs. $46.6M
operating profit in 2Q22
- Non-GAAP operating profit margin of 3.4% vs. 9.0% operating
profit margin in 2Q22
- Net Income/Loss:
-
- GAAP net loss of $40.0M vs. net
loss of $17.1M in 2Q22
- Non-GAAP net loss(10) of $6.1M vs. net income of $16.2M in 2Q22
- Adjusted EBITDA:
-
- Adjusted EBITDA(9) of $50.3M vs. $90.4M
in 2Q22
- Adjusted EBITDA margin of 10.5% vs. 17.6% in 2Q22
- Earnings/Loss Per Share:
-
- Diluted loss per share of $0.59
vs. diluted loss per share of $0.25
in 2Q22
- Non-GAAP diluted loss per share of $0.09 vs. diluted earnings per share of
$0.24 in 2Q22
- Cash Flow:
-
- Cash provided by operations was $42.5M vs. cash used of $33.7M in 2Q22
- Free cash flow(11) was $24.7M vs. $(59.1)M
in 2Q22
- Adjusted free cash flow(13) was $68.1M vs. $(38.5)M
in 2Q22
- YoY improvement in free cash flow primarily due to the timing
of technology collections in 2023 vs. 2022
- Pipeline, TCV and Backlog:
-
- Total company pipeline increased 18% YoY and 12% QoQ
-
- Next-Gen Solutions pipeline increased 55% YoY and 25%
QoQ
- TCV(5) decreased 20% YoY
-
- Primarily due to the timing of L&S renewals
- Ex-L&S pipeline increased 22% YoY and 15% QoQ
- Ex-L&S TCV decreased 4%
-
- Primarily due to lower new logo signings and the timing of
renewals within the year
- Backlog(2) was $2.69B
vs. $2.79B in 1Q23
-
- Primarily driven by contract renewal timing
- Balance Sheet:
-
- As of June 30, 2023, total cash
and cash equivalents was $423.2M
2Q23 Financial Highlights by Segment:
Digital Workplace Solutions (DWS):
- Revenue:
-
- DWS revenue of $135.0M vs.
$127.2M in 2Q22, an increase of 6.1%
YoY, or an increase of 7.7% YoY in constant currency, primarily
driven by recent contract signings and additional scope with
existing clients
- Gross Margin:
-
- DWS gross profit margin of 13.6% vs. 13.0% in 2Q22, an increase
of 60 bps YoY
Cloud, Applications & Infrastructure Solutions
(CA&I):
- Revenue:
-
- CA&I revenue $132.6M vs.
$130.1M in 2Q22, an increase of
1.9% YoY, or an increase of 2.6% YoY in constant currency
- Gross Margin:
-
- CA&I gross profit margin of 16.9% vs. 5.5% in 2Q22, an
increase of 1140 bps YoY, primarily driven by additional
expenses associated with certain contracts included in the prior
year period as well as delivery improvements in 2Q23
Enterprise Computing Solutions (ECS):
- Revenue:
-
- ECS revenue of $134.6M vs.
$185.8M in 2Q22, a decline of 27.6%
YoY, or a decline of 27.0% YoY in constant currency, due to lower
software license renewals
- Gross Margin:
-
- ECS gross profit margin was 54.1% vs. 66.2% in 2Q22, a decrease
of 1,210 bps YoY, primarily due to lower 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 will be in the range of 9.5% to 11.5%.
Conference Call
Unisys will hold a conference call with the financial community
on Wednesday, August 2, 2023, at
8 a.m. ET 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 webcast replay 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
4842656 from two hours after the end of the call until August 16, 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
canceled, 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 the 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.
(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 (loss) and non-GAAP
diluted earnings (loss) 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 (loss) 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) Pre-pension free cash flow – Represents
free cash flow before postretirement contributions
(13) Adjusted free cash flow – Represents
free cash flow less cash used for postretirement funding and
cost-reduction activities and other payments.
(14) Excluding License and Support
(Ex-L&S) – These measures exclude revenue, gross profit
and gross profit margin 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 significant and
impactful based on timing, and related support services in order to
evaluate the company's business outside of these areas.
Forward-Looking Statements
This release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
Section 21E of the Securities Exchange Act of 1934, as amended, and
the Private Securities Litigation Reform Act of 1995. Unisys
cautions readers that the assumptions forming the basis for
forward-looking statements include many factors that are beyond
Unisys' ability to control or estimate precisely, such as estimates
of future market conditions, the behavior of other market
participants and that ACV and TCV are based, in part, on the
assumption that each of those contracts will continue for their
full contracted term. Words such as "anticipates," "estimates,"
"expects," "projects," "may," "will," "intends," "plans,"
"believes," "should" and similar expressions may identify
forward-looking statements and such forward-looking statements are
made based upon management's current expectations, assumptions and
beliefs as of this date concerning future developments and their
potential effect upon Unisys. There can be no assurance that future
developments will be in accordance with management's expectations,
assumptions and beliefs or that the effect of future developments
on Unisys will be those anticipated by management. Forward-looking
statements in this release and the accompanying presentation
include, but are not limited to, any projections or expectations of
revenue growth, margin expansion, achievement of operational
efficiencies and savings, future growth of our Next-Gen solutions,
ACV and TCV, backlog, pipeline, book-to-bill, full-year 2023
revenue and profitability guidance, including constant currency
revenue and ex-L&S revenue growth, non-GAAP operating profit
margin and adjusted EBITDA margin, our pension liability and
statements regarding future economic conditions or
performance.
Additional information and factors that could cause actual
results to differ materially from Unisys' expectations are
contained in Unisys' filings with the U.S. Securities and Exchange
Commission (SEC), including Unisys' Annual Reports on Form 10-K and
subsequent Quarterly Reports on Form 10-Q, recent Current Reports
on Form 8-K, and other SEC filings, which are available at the
SEC's web site, http://www.sec.gov. Information included in this
release is representative as of the date of this release only and
while Unisys periodically reassesses material trends and
uncertainties affecting Unisys' results of operations and financial
condition in connection with its preparation of management's
discussion and analysis of results of operations and financial
condition contained in its Quarterly and Annual Reports filed with
the SEC, Unisys does not, by including this statement, assume any
obligation to review or revise any particular forward-looking
statement referenced herein in light of future events.
Non-GAAP Information
This release includes certain non-GAAP financial measures that
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.
Non-GAAP financial measures are often provided and utilized by
the company's management, analysts, and investors to enhance
comparability of year-over-year results and to isolate in some
instances 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. These items are
uncertain, depend on various factors, and could have a material
impact on the company's GAAP results for the applicable period.
These measures should not be relied upon as substitutes for, or
considered in isolation from, measures calculated in accordance
with U.S. GAAP. A reconciliation of these non-GAAP financial
measures to the most directly comparable financial measures
calculated and reported in accordance with GAAP can be found below
except for financial guidance and other forward-looking information
since such a reconciliation is not practicable without unreasonable
efforts as the company is unable to reasonably forecast certain
amounts that are necessary for such reconciliation. This
information has been provided pursuant to the requirements of SEC
Regulation G.
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 – and have been pushing
the possible for 150 years – visit unisys.com and follow us on
LinkedIn. #Unisys150.
RELEASE NO.: 0801/9916
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 June
30,
|
|
Six Months
Ended June
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue
|
|
|
|
|
|
|
|
|
Services
|
|
$ 417.0
|
|
$ 400.3
|
|
$ 820.9
|
|
$ 792.4
|
Technology
|
|
59.8
|
|
114.7
|
|
172.3
|
|
169.3
|
|
|
476.8
|
|
515.0
|
|
993.2
|
|
961.7
|
Costs and
expenses
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
|
|
|
|
|
|
Services
|
|
323.5
|
|
322.1
|
|
639.6
|
|
643.4
|
Technology
|
|
37.5
|
|
44.8
|
|
78.8
|
|
82.8
|
|
|
361.0
|
|
366.9
|
|
718.4
|
|
726.2
|
Selling, general and
administrative
|
|
110.3
|
|
109.6
|
|
213.2
|
|
214.0
|
Research and
development
|
|
5.4
|
|
4.8
|
|
11.6
|
|
11.3
|
|
|
476.7
|
|
481.3
|
|
943.2
|
|
951.5
|
Operating
income
|
|
0.1
|
|
33.7
|
|
50.0
|
|
10.2
|
Interest
expense
|
|
7.5
|
|
8.3
|
|
15.1
|
|
16.7
|
Other (expense),
net
|
|
(16.7)
|
|
(21.9)
|
|
(213.6)
|
|
(42.9)
|
(Loss) earnings
before income taxes
|
|
(24.1)
|
|
3.5
|
|
(178.7)
|
|
(49.4)
|
Provision for income
taxes
|
|
15.4
|
|
20.3
|
|
35.3
|
|
24.4
|
Consolidated net
loss
|
|
(39.5)
|
|
(16.8)
|
|
(214.0)
|
|
(73.8)
|
Net income attributable
to noncontrolling interests
|
|
0.5
|
|
0.3
|
|
1.4
|
|
0.6
|
Net loss
attributable to Unisys Corporation
|
|
$ (40.0)
|
|
$ (17.1)
|
|
$
(215.4)
|
|
$ (74.4)
|
|
|
|
|
|
|
|
|
|
Loss per share
attributable to Unisys Corporation
|
|
|
|
|
|
|
|
|
Basic
|
|
$ (0.59)
|
|
$ (0.25)
|
|
$ (3.16)
|
|
$ (1.10)
|
Diluted
|
|
$ (0.59)
|
|
$ (0.25)
|
|
$ (3.16)
|
|
$ (1.10)
|
UNISYS
CORPORATION SEGMENT
RESULTS (Unaudited) (Millions)
|
|
|
|
Total
|
|
DWS
|
|
CA&I
|
|
ECS
|
|
Other
|
Three Months Ended
June 30, 2023
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$ 476.8
|
|
$ 135.0
|
|
$ 132.6
|
|
$ 134.6
|
|
$
74.6
|
Gross profit
percent
|
|
24.3 %
|
|
13.6 %
|
|
16.9 %
|
|
54.1 %
|
|
|
Three Months Ended
June 30, 2022
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$ 515.0
|
|
$ 127.2
|
|
$ 130.1
|
|
$ 185.8
|
|
$
71.9
|
Gross profit
percent
|
|
28.8 %
|
|
13.0 %
|
|
5.5 %
|
|
66.2 %
|
|
|
|
|
Total
|
|
DWS
|
|
CA&I
|
|
ECS
|
|
Other
|
Six Months Ended
June 30, 2023
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$ 993.2
|
|
$ 266.0
|
|
$ 258.6
|
|
$ 322.8
|
|
$
145.8
|
Gross profit
percent
|
|
27.7 %
|
|
12.8 %
|
|
15.0 %
|
|
61.4 %
|
|
|
Six Months Ended
June 30, 2022
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$ 961.7
|
|
$ 252.0
|
|
$ 259.2
|
|
$ 306.4
|
|
$
144.1
|
Gross profit
percent
|
|
24.5 %
|
|
12.9 %
|
|
5.4 %
|
|
60.6 %
|
|
|
UNISYS
CORPORATION CONSOLIDATED BALANCE
SHEETS (Unaudited) (Millions)
|
|
|
June 30,
2023
|
|
December 31,
2022
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
423.2
|
|
$
391.8
|
Accounts receivable,
net
|
377.2
|
|
402.5
|
Contract
assets
|
16.5
|
|
28.9
|
Inventories
|
21.0
|
|
14.9
|
Prepaid expenses and
other current assets
|
112.6
|
|
92.3
|
Total current
assets
|
950.5
|
|
930.4
|
Properties
|
406.6
|
|
410.8
|
Less-accumulated
depreciation and amortization
|
332.9
|
|
334.9
|
Properties,
net
|
73.7
|
|
75.9
|
Outsourcing assets,
net
|
46.5
|
|
66.4
|
Marketable software,
net
|
164.6
|
|
165.1
|
Operating lease
right-of-use assets
|
38.6
|
|
42.5
|
Prepaid postretirement
assets
|
120.9
|
|
119.5
|
Deferred income
taxes
|
112.5
|
|
118.6
|
Goodwill
|
287.3
|
|
287.1
|
Intangible assets,
net
|
47.5
|
|
52.4
|
Restricted
cash
|
9.0
|
|
10.9
|
Assets
held-for-sale
|
6.4
|
|
6.4
|
Other long-term
assets
|
175.2
|
|
190.4
|
Total
assets
|
$
2,032.7
|
|
$
2,065.6
|
Total liabilities
and equity
|
|
|
|
Current
liabilities:
|
|
|
|
Current maturities of
long-term debt
|
$
14.5
|
|
$
17.4
|
Accounts
payable
|
150.4
|
|
160.8
|
Deferred
revenue
|
219.8
|
|
200.7
|
Other accrued
liabilities
|
256.3
|
|
271.6
|
Total current
liabilities
|
641.0
|
|
650.5
|
Long-term
debt
|
488.5
|
|
495.7
|
Long-term
postretirement liabilities
|
683.0
|
|
714.6
|
Long-term deferred
revenue
|
113.0
|
|
122.3
|
Long-term operating
lease liabilities
|
24.8
|
|
29.7
|
Other long-term
liabilities
|
33.1
|
|
31.0
|
Commitments and
contingencies
|
|
|
|
Total Unisys
Corporation stockholders' equity (deficit)
|
11.4
|
|
(14.7)
|
Noncontrolling
interests
|
37.9
|
|
36.5
|
Total
equity
|
49.3
|
|
21.8
|
Total liabilities
and equity
|
$
2,032.7
|
|
$
2,065.6
|
UNISYS
CORPORATION CONSOLIDATED STATEMENTS OF CASH
FLOWS (Unaudited) (Millions)
|
|
|
|
Six Months
Ended June
30,
|
|
|
2023
|
|
2022
|
Cash flows from
operating activities
|
|
|
|
|
Consolidated net
loss
|
|
$ (214.0)
|
|
$
(73.8)
|
Adjustments to
reconcile consolidated net loss to net cash provided by (used for)
operating activities:
|
|
|
|
|
Foreign currency
(gains) losses
|
|
(0.5)
|
|
0.4
|
Non-cash interest
expense
|
|
0.6
|
|
0.7
|
Employee stock
compensation
|
|
8.9
|
|
10.3
|
Depreciation and
amortization of properties
|
|
13.7
|
|
19.2
|
Depreciation and
amortization of outsourcing assets
|
|
25.1
|
|
36.0
|
Amortization of
marketable software
|
|
24.5
|
|
29.6
|
Amortization of
intangible assets
|
|
4.9
|
|
5.3
|
Other non-cash
operating activities
|
|
0.4
|
|
0.2
|
Loss on disposal of
capital assets
|
|
0.1
|
|
0.6
|
Postretirement
contributions
|
|
(31.1)
|
|
(25.1)
|
Postretirement
expense
|
|
203.8
|
|
22.7
|
Deferred income taxes,
net
|
|
9.3
|
|
3.1
|
Changes in operating
assets and liabilities, excluding the effect of
acquisitions:
|
|
|
|
|
Receivables, net and
contract assets
|
|
71.0
|
|
22.7
|
Inventories
|
|
(5.7)
|
|
(5.4)
|
Other
assets
|
|
(16.1)
|
|
(9.3)
|
Accounts payable and
current liabilities
|
|
(37.6)
|
|
(108.2)
|
Other
liabilities
|
|
(2.0)
|
|
4.3
|
Net cash provided by
(used for) operating activities
|
|
55.3
|
|
(66.7)
|
Cash flows from
investing activities
|
|
|
|
|
Proceeds from
investments
|
|
1,485.4
|
|
1,668.0
|
Purchases of
investments
|
|
(1,470.4)
|
|
(1,697.6)
|
Investment in
marketable software
|
|
(21.3)
|
|
(23.6)
|
Capital additions of
properties
|
|
(11.9)
|
|
(14.0)
|
Capital additions of
outsourcing assets
|
|
(4.9)
|
|
(6.5)
|
Purchase of
businesses, net of cash acquired
|
|
—
|
|
(0.3)
|
Other
|
|
(0.4)
|
|
(0.4)
|
Net cash used for
investing activities
|
|
(23.5)
|
|
(74.4)
|
Cash flows from
financing activities
|
|
|
|
|
Payments of long-term
debt
|
|
(10.6)
|
|
(11.2)
|
Other
|
|
(0.4)
|
|
(3.8)
|
Net cash used for
financing activities
|
|
(11.0)
|
|
(15.0)
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
|
8.7
|
|
(15.2)
|
Increase (decrease)
in cash, cash equivalents and restricted cash
|
|
29.5
|
|
(171.3)
|
Cash, cash
equivalents and restricted cash, beginning of period
|
|
402.7
|
|
560.6
|
Cash, cash
equivalents and restricted cash, end of period
|
|
$
432.2
|
|
$
389.3
|
UNISYS
CORPORATION RECONCILIATIONS OF SELECTED GAAP MEASURES TO
NON-GAAP MEASURES (Unaudited) (Millions,
except per share data)
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
GAAP net loss
attributable to Unisys Corporation
|
|
$ (40.0)
|
|
$ (17.1)
|
|
$
(215.4)
|
|
$ (74.4)
|
|
|
|
|
|
|
|
|
|
|
Postretirement
expense:
|
pretax
|
|
10.6
|
|
12.5
|
|
203.8
|
|
22.7
|
|
tax
|
|
(0.2)
|
|
—
|
|
(0.4)
|
|
0.2
|
|
net of tax
|
|
10.8
|
|
12.5
|
|
204.2
|
|
22.5
|
|
|
|
|
|
|
|
|
|
|
Cost reduction and
other expenses:
|
pretax
|
|
23.4
|
|
20.8
|
|
40.1
|
|
40.9
|
|
tax
|
|
0.3
|
|
—
|
|
0.3
|
|
0.1
|
|
net of tax
|
|
23.1
|
|
20.8
|
|
39.8
|
|
40.8
|
|
noncontrolling
interest
|
|
—
|
|
—
|
|
—
|
|
—
|
|
net of noncontrolling
interest
|
|
23.1
|
|
20.8
|
|
39.8
|
|
40.8
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net (loss)
income attributable to Unisys
Corporation
|
|
$
(6.1)
|
|
$
16.2
|
|
$
28.6
|
|
$ (11.1)
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
(thousands)
|
|
68,289
|
|
67,694
|
|
68,116
|
|
67,541
|
Plus incremental shares
from assumed conversion:
|
|
|
|
|
|
|
|
|
Employee stock
plans
|
|
—
|
|
418
|
|
646
|
|
—
|
Non-GAAP adjusted
weighted average shares
|
|
68,289
|
|
68,112
|
|
68,762
|
|
67,541
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
|
|
|
|
|
|
|
|
GAAP
basis
|
|
|
|
|
|
|
|
|
GAAP net loss
attributable to Unisys Corporation for diluted loss
per share
|
|
$ (40.0)
|
|
$ (17.1)
|
|
$
(215.4)
|
|
$ (74.4)
|
Divided by weighted
average shares
|
|
68,289
|
|
67,694
|
|
68,116
|
|
67,541
|
GAAP diluted loss
per share
|
|
$ (0.59)
|
|
$ (0.25)
|
|
$ (3.16)
|
|
$ (1.10)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
basis
|
|
|
|
|
|
|
|
|
Non-GAAP net (loss)
income attributable to Unisys Corporation
for diluted (loss) earnings per share
|
|
$
(6.1)
|
|
$ 16.2
|
|
$ 28.6
|
|
$ (11.1)
|
Divided by Non-GAAP
adjusted weighted average shares
|
68,289
|
|
68,112
|
|
68,762
|
|
67,541
|
Non-GAAP diluted
(loss) earnings per share
|
$ (0.09)
|
|
$
0.24
|
|
$
0.42
|
|
$ (0.16)
|
UNISYS
CORPORATION RECONCILIATIONS OF GAAP TO
NON-GAAP (Unaudited)
(Millions)
|
FREE CASH
FLOW
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Cash provided by
(used for) operations
|
|
$
42.5
|
|
$ (33.7)
|
|
$
55.3
|
|
$ (66.7)
|
Additions to marketable
software
|
|
(11.0)
|
|
(12.5)
|
|
(21.3)
|
|
(23.6)
|
Additions to
properties
|
|
(4.6)
|
|
(8.8)
|
|
(11.9)
|
|
(14.0)
|
Additions to
outsourcing assets
|
|
(2.2)
|
|
(4.1)
|
|
(4.9)
|
|
(6.5)
|
Free cash
flow
|
|
24.7
|
|
(59.1)
|
|
17.2
|
|
(110.8)
|
Postretirement
funding
|
|
14.7
|
|
8.9
|
|
31.1
|
|
25.1
|
Pre-pension free
cash flow
|
|
39.4
|
|
(50.2)
|
|
48.3
|
|
(85.7)
|
Cost reduction and
other payments, net
|
|
28.7
|
|
11.7
|
|
39.9
|
|
20.3
|
Adjusted free cash
flow
|
|
$
68.1
|
|
$ (38.5)
|
|
$
88.2
|
|
$ (65.4)
|
UNISYS
CORPORATION RECONCILIATIONS OF GAAP TO
NON-GAAP (Unaudited)
(Millions)
|
|
EBITDA
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net loss
attributable to Unisys Corporation
|
|
$ (40.0)
|
|
$ (17.1)
|
|
$
(215.4)
|
|
$ (74.4)
|
Net income attributable
to noncontrolling interests
|
|
0.5
|
|
0.3
|
|
1.4
|
|
0.6
|
Interest expense, net
of interest income of $6.5, $3.4, $13.2 and $5.8,
respectively*
|
|
1.0
|
|
4.9
|
|
1.9
|
|
10.9
|
Provision for income
taxes
|
|
15.4
|
|
20.3
|
|
35.3
|
|
24.4
|
Depreciation
|
|
17.4
|
|
26.5
|
|
38.8
|
|
55.2
|
Amortization
|
|
14.9
|
|
16.7
|
|
29.4
|
|
34.9
|
EBITDA
|
|
$
9.2
|
|
$
51.6
|
|
$
(108.6)
|
|
$
51.6
|
|
|
|
|
|
|
|
|
|
Postretirement
expense
|
|
$ 10.6
|
|
$ 12.5
|
|
$ 203.8
|
|
$ 22.7
|
Cost reduction and
other expenses**
|
|
21.0
|
|
17.9
|
|
35.3
|
|
32.9
|
Non-cash share based
expense
|
|
4.1
|
|
3.5
|
|
8.7
|
|
10.0
|
Other expense, net
adjustment***
|
|
5.4
|
|
4.9
|
|
9.3
|
|
7.4
|
Adjusted
EBITDA
|
|
$
50.3
|
|
$
90.4
|
|
$ 148.5
|
|
$ 124.6
|
|
|
|
|
|
|
|
|
|
|
*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
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue
|
|
$ 476.8
|
|
$ 515.0
|
|
$ 993.2
|
|
$ 961.7
|
Net loss attributable
to Unisys Corporation as a percentage of revenue
|
(8.4) %
|
|
(3.3) %
|
|
(21.7) %
|
|
(7.7) %
|
Non-GAAP net (loss)
income attributable to Unisys Corporation as
a percentage of revenue
|
(1.3) %
|
|
3.1 %
|
|
2.9 %
|
|
(1.2) %
|
Adjusted EBITDA as a
percentage of revenue
|
10.5 %
|
|
17.6 %
|
|
15.0 %
|
|
13.0 %
|
UNISYS
CORPORATION RECONCILIATIONS OF GAAP TO
NON-GAAP (Unaudited)
(Millions)
|
|
OPERATING
PROFIT
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
GAAP operating
profit
|
|
$ 0.1
|
|
$
33.7
|
|
$
50.0
|
|
$
10.2
|
Cost reduction and
other expenses*
|
|
15.8
|
|
12.3
|
|
25.7
|
|
21.2
|
Postretirement
expense**
|
|
0.4
|
|
0.6
|
|
0.7
|
|
1.1
|
Non-GAAP operating
profit
|
|
$
16.3
|
|
$
46.6
|
|
$
76.4
|
|
$
32.5
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$ 476.8
|
|
$ 515.0
|
|
$ 993.2
|
|
$ 961.7
|
|
|
|
|
|
|
|
|
|
GAAP operating profit
percent
|
|
0.0 %
|
|
6.5 %
|
|
5.0 %
|
|
1.1 %
|
Non-GAAP operating
profit percent
|
|
3.4 %
|
|
9.0 %
|
|
7.7 %
|
|
3.4 %
|
|
|
|
|
|
|
|
|
|
*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
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
GAAP
revenue
|
|
$
476.8
|
|
$
515.0
|
|
$
993.2
|
|
$
961.7
|
L&S
revenue
|
|
80.8
|
|
137.6
|
|
217.7
|
|
211.0
|
Ex-L&S Non-GAAP
revenue
|
|
$
396.0
|
|
$
377.4
|
|
$
775.5
|
|
$
750.7
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
|
$
115.8
|
|
$
148.1
|
|
$
274.8
|
|
$
235.5
|
L&S gross
profit
|
|
52.4
|
|
108.8
|
|
158.9
|
|
156.2
|
Ex-L&S Non-GAAP
gross profit
|
|
$
63.4
|
|
$
39.3
|
|
$
115.9
|
|
$
79.3
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
percent
|
|
24.3 %
|
|
28.8 %
|
|
27.7 %
|
|
24.5 %
|
Ex-L&S Non-GAAP
gross profit percent
|
|
16.0 %
|
|
10.4 %
|
|
14.9 %
|
|
10.6 %
|
View original
content:https://www.prnewswire.com/news-releases/unisys-announces-2q23-results-301890868.html
SOURCE Unisys Corporation