Unisys
Announces Third-Quarter 2016 Financial Results, Reaffirms Full-Year
Guidance
BLUE BELL, Pennsylvania,
Oct. 25, 2016 --
3Q 2016:
-
Operating cash flow increase of $87
million year over year to $43
million; free cash flow(1) increase of
$106 million to $6 million
-
Total Contract Value (TCV)(2) signed increase of 22
percent on a year-to-date basis versus the comparable period last
year, including more than $1.1
billion of TCV signings in the third quarter. Services
backlog of $4.1 billion, up 6.7
percent versus the prior quarter
-
Operating profit margin of (1.4) percent, relative to operating
profit margin of 1.2 percent in 3Q 2015; non-GAAP operating profit
margin(3) of 6.7 percent, relative to 7.2 percent in 3Q
2015
-
Revenue of $683 million, down 7.6
percent, or 5.9 percent on a constant-currency basis(4),
year over year
-
Unisys reaffirms full-year guidance for total company revenue,
non-GAAP operating profit margin and adjusted free cash
flow
Unisys Corporation (NYSE: UIS) today reported third-quarter 2016
results highlighted by strong cash flow growth. Additionally, the
company saw strong contract signings, with Total Contract Value
(TCV) signings up 22 percent on a year-to-date basis versus the
comparable period last year, including more than $1.1 billion in TCV signings in the quarter.
Services backlog of $4.1 billion as
of the end of the third quarter was up 6.7 percent
sequentially.
"Our year-to-date results show progress toward achieving our
goals for 2016 with respect to improving operating profit margin
and cash flow generation. Revenues also continue to track in line
with our full-year guidance for 2016," said Unisys President and
CEO Peter Altabef. "We continue to
execute on the strategy we began in 2015, and we are beginning to
see traction with our vertical go-to-market approach, in addition
to bringing a pervasive security focus to all of our
offerings."
Summary of Third-Quarter 2016 Business Results
Company:
-
Operating cash flow increased by $87
million versus the prior year to $43
million. The company generated free cash flow of
$6 million for the third quarter, an
improvement of $106 million
year-over-year. Adjusted free cash flow(5) in the third
quarter increased $105 million from
the prior year. This represented the fourth consecutive quarter of
positive operating cash flow and adjusted free cash flow.
- The
company saw strong contract signings in the third quarter, with TCV
signed up 22 percent on a year-to-date basis, including more than
$1.1 billion of TCV signings in the
quarter. Services backlog ended the third quarter at $4.1 billion, up 6.7 percent sequentially.
-
Operating profit margin of (1.4) percent includes cost-reduction
and other charges and pension expense. Third-quarter 2016 non-GAAP
operating profit margin was 6.7 percent, down slightly versus the
third quarter 2015. On a year-to-date basis, however, operating
profit margin was 0.6 percent, representing a 380 basis point
increase over the corresponding year-to-date period for 2015,
reflective of the company's ongoing cost-cutting efforts. On a
year-to-date basis, 2016 non-GAAP operating profit margin was 7.0
percent, an increase of 340 basis points relative to the
corresponding year-to-date period in 2015.
-
During the third quarter 2016, the company continued to execute on
its cost-reduction program, largely related to headcount
reductions, that are anticipated to result in $30 million of incremental annualized cost
savings, bringing the total to date to $185
million against a plan of $200
million exiting 2016, with up to another $30 million anticipated in 2017.
-
Revenue of $683 million declined 7.6
percent year over year or 5.9 percent on a constant-currency
basis.
- At
September 30, 2016, the company had
$443 million in cash.
Services:
-
Services revenue, which represented 88 percent of total revenue,
declined by 8.4 percent to $601
million, down 6.7 percent in constant currency.
-
Services gross margin was down 60 basis points year over year.
Nearly two-thirds of this is attributable to some favorable
contracts in 2015 within the Federal business. Excluding this and
ongoing investments in additional solutions capabilities, the
margins for the remaining services business would have been up year
over year. Services operating profit margin was down 220 basis
points to 2.6 percent (also due in part to ongoing investments at
the gross margin and SG&A level). Services operating profit
margin saw an increase of 50 basis points sequentially relative to
the prior quarter and represented the strongest quarterly operating
margin for Services in 2016.
Technology:
-
Technology revenue, which represented 12 percent of total revenue,
was roughly flat year-over-year, at $82
million versus $83 million in
the same quarter last year.
-
Technology operating profit margin improved to 32.3 percent from
20.7 percent in the prior year, reflective of the cost-reduction
program.
Continued Execution on Business Strategy
The company recently entered into several key contracts in each of
its sectors of focus:
- U.S.
Federal Sector: Unisys was selected by U.S. Customs and Border
Protection, part of the Department of Homeland Security, to
modernize the agency's technology for identifying people and
vehicles entering and exiting the U.S.
-
Public Sector: Unisys was awarded a contract by the Philippine
Statistics Authority to design and operate phase 2 of its Civil
Registry System modernization project. Under the 12-year contract,
which was the largest contract the company entered into in the
third quarter, Unisys will deliver digital government services to
modernize the Civil Registry System and manage the end-to-end
process to originate, authenticate, secure and issue civil registry
documents such as birth certificates to citizens.
-
Financial Services Sector: In financial services, Unisys grew its
long-standing relationship with Prudential Plc., a British
multinational life insurance and financial services company
headquartered in London. In
addition to Prudential's use of the company's ClearPath Forward
technology to support its core Life & Pensions business
applications, Unisys is now also providing a fast, automated
disaster recovery solution to ensure uninterrupted service.
-
Commercial Sector: Unisys has entered into a contract with
TravelSky, the leading provider of information technology solutions
for China's aviation and travel
industry, to provide expanded processing power for their
reservation and distribution systems that run on the company's
ClearPath Forward technology. This work will build on the momentum
of Unisys' recent success with TravelSky toward migrating their
passenger sales and service applications to the company's AirCore
next-generation passenger system.
Conference Call
Unisys will hold a conference call today at 5:30 p.m. Eastern Time to discuss its results.
The listen-only Webcast, as well as the accompanying presentation
materials, can be accessed on the Unisys Investor Web site at
www.unisys.com/investor. Following the call, an audio replay of the
Webcast, and accompanying presentation materials, can be accessed
through the same link.
Non-GAAP and Other Information
Although appropriate under generally accepted accounting principles
(GAAP), the company's results reflect charges that the company
believes are not indicative of its ongoing operations and that can
make its profitability and liquidity results difficult to compare
to prior periods, anticipated future periods, or to its
competitors' results. These items consist of pension and
cost-reduction and other expense. Management believes each of these
items can distort the visibility of trends associated with the
company's ongoing performance. Management also believes that the
evaluation of the company's financial performance can be enhanced
by use of supplemental presentation of its results that exclude the
impact of these items in order to enhance consistency and
comparativeness with prior or future period results. The
following measures are often provided and utilized by the company's
management, analysts, and investors to enhance comparability of
year-over-year results, as well as to compare results to other
companies in our industry.
(1) Free cash flow – The defines free cash
flow as cash flow from operations less capital expenditures.
Management believes this liquidity measure gives investors an
additional perspective on cash flow from on-going operating
activities in excess of amounts required for reinvestment.
(2) Total Contract Value – TCV is the
estimated total contractual revenue related to signed
contracts.
(3) Non-GAAP operating profit – Unisys
recorded pretax pension expense and a pretax charge in connection
with cost-reduction and other expense. The company believes that
this profitability measure is more indicative of the company's
operating results and aligns those results to the company's
external guidance which is used by the company's management to
allocate resources and may be used by analysts and investors to
gauge the company's ongoing performance.
(4) Constant currency – The company refers to
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 results at a consistent rate.
(5) Adjusted free cash flow – Because
inclusion of the company's pension contributions and cost-reduction
payments in free cash flow may distort the visibility of the
company's ability to generate cash flow from its operations without
the impact of these non-operational costs, management believes that
investors may be interested in adjusted free cash flow, which
provides free cash flow before these payments and is more
indicative of its on-going operations. This liquidity measure was
provided to analysts and investors in the form of external guidance
and is used by management to measure operating liquidity.
(6) Non-GAAP diluted earnings per share –
Unisys recorded pension expense and a charge in connection with
cost-reduction and other expense. Management believes that
investors may have a better understanding of the company's
performance and return to shareholders by excluding these charges
from the non-GAAP diluted earnings/loss per share calculations. The
tax amounts presented for pension expense and cost-reduction and
other expense for the calculation of non-GAAP diluted earnings per
share include the current and deferred tax expense and benefits
recognized under GAAP for pension expense, cost-reduction and other
expense.
(7) 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 attributable to noncontrolling
interests, interest expense (net of interest income) provision for
income taxes, depreciation and amortization. Adjusted EBITDA
further excludes pension expense, cost-reduction and other expense,
non-cash share-based expense, and other (income) expense
adjustment. In order to provide investors with additional
understanding of the company's operating results, these charges are
excluded from the adjusted EBITDA calculation.
About Unisys
Unisys is a global information technology company that works with
many of the world's largest companies and government organizations
to solve their most pressing IT and business challenges. Unisys
specializes in providing integrated, leading-edge solutions to
clients in the government, financial services and commercial
markets. With more than 20,000 employees serving clients around the
world, Unisys offerings include cloud and infrastructure services,
application services, security solutions, and high-end server
technology. For more information, visit http://www.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 of
earnings, revenues, total contract value or other financial items;
any statements of the company's 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 total contract value are based, in part, on the
assumption that all options of the contracts included in the
calculation of such value will be exercised and that each of those
contracts will continue for their full contracted term. Risks and
uncertainties that could affect the company's future results
include the company's ability to effectively anticipate and respond
to volatility and rapid technological innovation in its industry;
the company's ability to improve margins in its services business;
the company's ability to sell new products while maintaining its
installed base in its technology business; the company's ability to
access financing markets to refinance its outstanding debt; the
company's ability to realize anticipated cost savings and to
successfully implement its cost reduction initiatives to drive
efficiencies across all of its operations; the company's
significant pension obligations and requirements to make
significant cash contributions to its defined benefit plans; the
company's ability to attract, motivate and retain experienced and
knowledgeable personnel in key positions; the risks of doing
business internationally when a significant portion of the
company's revenue is derived from international operations; the
potential adverse effects of aggressive competition in the
information services and technology marketplace; the company's
ability to retain significant clients; the company's contracts may
not be as profitable as expected or provide the expected level of
revenues; cybersecurity breaches could result in significant costs
and could harm the company's business and reputation; a significant
disruption in the company's IT systems could adversely affect the
company's business and reputation; the company may face damage to
its reputation or legal liability if its clients are not satisfied
with its services or products; the performance and capabilities of
third parties with whom the company has commercial relationships;
the adverse effects of global economic conditions, acts of war,
terrorism or natural disasters; contracts with U.S. governmental
agencies may subject the company to audits, criminal penalties,
sanctions and other expenses and fines; the potential for
intellectual property infringement claims to be asserted against
the company or its clients; the possibility that pending litigation
could affect the company's results of operations or cash flow; the
business and financial risk in implementing future dispositions or
acquisitions; and the company's consideration of all available
information following the end of the quarter and before the filing
of the Form 10-Q and the possible impact of this subsequent event
information on its financial statements for the reporting period.
Additional discussion of factors that could affect the company's
future results is contained in its periodic filings with the
Securities and Exchange Commission. The company assumes no
obligation to update any forward-looking statements.
RELEASE NO.: 1025/9461
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 |
(Unaudited) |
(Millions, except
per share data) |
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months
Ended
September 30, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Revenue |
|
|
|
|
|
|
|
|
Services |
|
$ 600.9 |
|
$ 656.0 |
|
$ 1,809.8 |
|
$ 1,956.5 |
Technology |
|
82.4 |
|
83.2 |
|
289.2 |
|
268.7 |
|
|
683.3 |
|
739.2 |
|
2,099.0 |
|
2,225.2 |
Costs and expenses |
|
|
|
|
|
|
|
Cost of revenue: |
|
|
|
|
|
|
|
Services |
531.3 |
|
564.7 |
|
1,594.1 |
|
1,714.7 |
Technology |
30.4 |
|
33.9 |
|
106.5 |
|
128.6 |
|
|
561.7 |
|
598.6 |
|
1,700.6 |
|
1,843.3 |
Selling, general and administrative |
120.0 |
|
115.4 |
|
345.8 |
|
389.6 |
Research and development |
11.4 |
|
16.6 |
|
40.5 |
|
63.2 |
|
|
693.1 |
|
730.6 |
|
2,086.9 |
|
2,296.1 |
Operating profit (loss) |
(9.8) |
|
8.6 |
|
12.1 |
|
(70.9) |
Interest expense |
7.7 |
|
3.0 |
|
19.9 |
|
8.3 |
Other income (expense), net |
2.3 |
|
1.7 |
|
3.7 |
|
8.0 |
Income (loss) before income
taxes |
(15.2) |
|
7.3 |
|
(4.1) |
|
(71.2) |
Provision for income taxes |
9.9 |
|
14.9 |
|
34.2 |
|
33.3 |
Consolidated net income (loss) |
(25.1) |
|
(7.6) |
|
(38.3) |
|
(104.5) |
Net income attributable to noncontrolling
interests |
3.1 |
|
2.0 |
|
8.2 |
|
6.5 |
Net income (loss) attributable to
Unisys Corporation |
$
(28.2) |
|
$
(9.6) |
|
$
(46.5) |
|
$
(111.0) |
Earnings (loss) per share attributable
to Unisys Corporation |
|
|
|
|
|
|
|
Basic |
|
$ (0.56) |
|
$
(0.19) |
|
$ (0.93) |
|
$ (2.22) |
Diluted |
|
$ (0.56) |
|
$ (0.19) |
|
$ (0.93) |
|
$ (2.22) |
Shares used in the per share computations
(in thousands) |
|
|
|
|
|
|
|
Basic |
|
50,082 |
|
49,934 |
|
50,052 |
|
49,894 |
Diluted |
|
50,082 |
|
49,934 |
|
50,052 |
|
49,894 |
|
|
|
|
|
|
|
|
|
UNISYS
CORPORATION |
SEGMENT
RESULTS |
(Unaudited) |
(Millions) |
|
|
|
|
|
|
|
|
|
|
|
Total |
|
Eliminations |
|
Services |
|
Technology |
Three Months Ended September 30,
2016 |
|
|
|
|
|
|
|
Customer revenue |
|
$
683.3 |
|
|
|
$
600.9 |
|
$
82.4 |
Intersegment |
|
|
|
$
(5.8) |
|
— |
|
5.8 |
Total revenue |
|
$ 683.3 |
|
$
(5.8) |
|
$ 600.9 |
|
$ 88.2 |
Gross profit percent |
|
17.8 % |
|
|
|
16.7 % |
|
59.8 % |
Operating profit (loss) percent |
(1.4)% |
|
|
|
2.6 % |
|
32.3 % |
Three Months Ended September 30,
2015 |
|
|
|
|
|
|
|
Customer revenue |
|
$ 739.2 |
|
|
|
$ 656.0 |
|
$ 83.2 |
Intersegment |
|
|
|
$ (11.9) |
|
— |
|
11.9 |
Total revenue |
|
$ 739.2 |
|
$ (11.9) |
|
$ 656.0 |
|
$ 95.1 |
Gross profit percent |
|
19.0 % |
|
|
|
17.3 % |
|
55.0 % |
Operating profit (loss) percent |
1.2 % |
|
|
|
4.8 % |
|
20.7 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
Eliminations |
|
Services |
|
Technology |
Nine Months Ended September 30,
2016 |
|
|
|
|
|
|
|
Customer revenue |
|
$ 2,099.0 |
|
|
|
$ 1,809.8 |
|
$ 289.2 |
Intersegment |
|
|
|
$ (17.3) |
|
— |
|
17.3 |
Total revenue |
|
$ 2,099.0 |
|
$ (17.3) |
|
$ 1,809.8 |
|
$ 306.5 |
Gross profit percent |
|
19.0 % |
|
|
|
15.9 % |
|
60.2 % |
Operating profit (loss) percent |
|
0.6 % |
|
|
|
1.8 % |
|
36.0 % |
Nine Months Ended September 30,
2015 |
|
|
|
|
|
|
|
Customer revenue |
|
$ 2,225.2 |
|
|
|
$ 1,956.5 |
|
$ 268.7 |
Intersegment |
|
|
|
$ (40.6) |
|
0.1 |
|
40.5 |
Total revenue |
|
$ 2,225.2 |
|
$ (40.6) |
|
$ 1,956.6 |
|
$ 309.2 |
Gross profit percent |
|
17.2 % |
|
|
|
15.7 % |
|
49.0 % |
Operating profit (loss) percent |
(3.2)% |
|
|
|
1.9 % |
|
14.2 % |
|
|
|
|
|
|
|
|
|
UNISYS
CORPORATION |
CONSOLIDATED BALANCE
SHEETS |
(Unaudited) |
(Millions) |
|
|
|
|
|
|
September 30, 2016 |
|
December 31, 2015 |
|
Assets |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
$
442.7 |
|
$
365.2 |
|
Accounts and notes receivable, net |
532.5 |
|
581.6 |
|
Inventories: |
|
|
|
|
Parts and finished equipment |
25.3 |
|
20.9 |
|
Work in process and materials |
14.2 |
|
22.9 |
|
Prepaid expenses and other current assets |
119.0 |
|
120.9 |
* |
Total |
1,133.7 |
|
1,111.5 |
* |
Properties |
889.2 |
|
876.6 |
|
Less-Accumulated depreciation and amortization |
746.2 |
|
722.8 |
|
Properties, net |
143.0 |
|
153.8 |
|
Outsourcing assets, net |
183.0 |
|
182.0 |
|
Marketable software, net |
137.7 |
|
138.5 |
|
Prepaid postretirement assets |
79.3 |
|
45.1 |
|
Deferred income taxes |
117.5 |
|
127.4 |
* |
Goodwill |
180.1 |
|
177.4 |
|
Other long-term assets |
201.8 |
|
194.3 |
* |
Total |
$
2,176.1 |
|
$
2,130.0 |
* |
Liabilities and deficit |
|
|
|
|
Current liabilities |
|
|
|
|
Notes payable |
$
— |
|
$
65.8 |
|
Current maturities of long-term-debt |
220.4 |
|
11.0 |
|
Accounts payable |
175.5 |
|
219.3 |
|
Deferred revenue |
318.9 |
|
335.1 |
|
Other accrued liabilities |
353.1 |
|
329.9 |
* |
Total |
1,067.9 |
|
961.1 |
* |
Long-term debt |
201.2 |
|
233.7 |
* |
Long-term postretirement liabilities |
1,943.9 |
|
2,111.3 |
|
Long-term deferred revenue |
142.2 |
|
123.3 |
|
Other long-term liabilities |
79.0 |
|
79.2 |
* |
Commitments and contingencies |
|
|
|
|
Total deficit |
(1,258.1) |
|
(1,378.6) |
|
Total |
$
2,176.1 |
|
$
2,130.0 |
* |
|
|
|
|
|
* Certain amounts have been
reclassified to conform to the current-year presentation. |
|
|
|
|
|
UNISYS
CORPORATION |
CONSOLIDATED
STATEMENTS OF CASH FLOWS |
(Unaudited) |
(Millions) |
|
|
|
|
|
|
|
Nine Months
Ended
September 30, |
|
|
2016 |
|
2015 |
Cash flows from operating activities |
|
|
|
|
Consolidated net income (loss) |
|
$
(38.3) |
|
$
(104.5) |
Add (deduct) items to
reconcile consolidated net loss to net cash provided by
(used for) operating activities: |
|
|
|
Foreign currency transaction losses |
|
0.4 |
|
8.0 |
Non-cash interest expense |
|
4.9 |
|
— |
Employee stock compensation |
|
7.7 |
|
7.9 |
Depreciation and amortization of properties |
|
28.6 |
|
34.1 |
Depreciation and amortization of outsourcing
assets |
|
39.7 |
|
41.2 |
Amortization of marketable software |
|
48.0 |
|
50.3 |
Other non-cash operating activities |
|
1.4 |
|
1.8 |
Loss on disposal of capital assets |
|
2.0 |
|
6.1 |
Pension contributions |
|
(104.0) |
|
(115.6) |
Pension expense |
|
63.0 |
|
81.5 |
Increase in deferred income taxes, net |
|
(2.7) |
|
(2.8) |
Decrease in receivables, net |
|
59.9 |
|
11.7 |
Decrease (increase) in inventories |
|
5.5 |
|
(7.7) |
Decrease in accounts payable and other accrued
liabilities |
|
(45.3) |
|
(121.4) |
Increase (decrease) in other liabilities |
|
10.5 |
|
(8.3) |
Decrease in other assets |
|
20.0 |
|
9.2 |
Net cash provided by (used for) operating
activities |
|
101.3 |
|
(108.5) |
Cash flows from investing activities |
|
|
|
|
Proceeds from investments |
|
3,307.3 |
|
2,904.0 |
Purchases of investments |
|
(3,331.6) |
|
(2,884.2) |
Investment in marketable software |
|
(47.1) |
|
(46.8) |
Capital additions of properties |
|
(18.3) |
|
(40.2) |
Capital additions of outsourcing assets |
|
(41.4) |
|
(80.4) |
Other |
|
(1.3) |
|
6.1 |
Net cash used for investing activities |
|
(132.4) |
|
(141.5) |
Cash flows from financing activities |
|
|
|
|
Proceeds from issuance of long-term debt |
|
213.5 |
|
31.8 |
Payments for capped call transactions |
|
(27.3) |
|
— |
Issuance costs relating to long-term debt |
|
(7.3) |
|
— |
Payments of long-term debt |
|
(2.1) |
|
(1.3) |
Proceeds from exercise of stock options |
|
— |
|
3.7 |
Net (payments) proceeds from short-term
borrowings |
|
(65.8) |
|
55.0 |
Financing fees |
|
— |
|
(0.2) |
Net cash provided by financing activities |
|
111.0 |
|
89.0 |
Effect of exchange rate changes on cash
and cash equivalents |
(2.4) |
|
(40.2) |
Increase (decrease) in cash and cash
equivalents |
|
77.5 |
|
(201.2) |
Cash and cash equivalents, beginning of
period |
|
365.2 |
|
494.3 |
Cash and cash equivalents, end of period |
|
$ 442.7 |
|
$ 293.1 |
|
|
|
|
|
UNISYS
CORPORATION |
RECONCILIATION OF
SELECTED GAAP MEASURES TO NON-GAAP MEASURES |
(Unaudited) |
(Millions, except
per share data) |
|
|
|
|
|
|
|
|
|
Three
Months |
|
Nine Months |
|
Ended September
30 |
|
Ended September
30 |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
GAAP net income (loss) attributable to
Unisys
Corporation common shareholders |
$
(28.2) |
|
$
(9.6) |
|
$
(46.5) |
|
$
(111.0) |
|
|
|
|
|
|
|
|
|
Cost reduction and other expense: |
pretax |
34.6 |
|
17.4 |
|
71.7 |
|
70.0 |
|
tax provision (benefit) |
(2.6) |
|
(1.0) |
|
(4.7) |
|
(5.0) |
|
net of tax |
32.0 |
|
16.4 |
|
67.0 |
|
65.0 |
|
|
|
|
|
|
|
|
Pension Expense: |
pretax |
21.2 |
|
27.2 |
|
63.0 |
|
81.5 |
|
tax provision (benefit) |
0.3 |
|
(0.6) |
|
0.9 |
|
(1.6) |
|
net of tax |
21.5 |
|
26.6 |
|
63.9 |
|
79.9 |
|
|
|
|
|
|
|
|
Non-GAAP net income (loss) attributable
to Unisys
Corporation common shareholders |
25.3 |
|
33.4 |
|
84.4 |
|
33.9 |
|
|
|
|
|
|
|
|
|
Add interest expense on convertible
notes |
4.6 |
|
— |
|
9.9 |
|
— |
|
|
|
|
|
|
|
|
|
Non-GAAP net income
(loss) attributable to Unisys
Corporation for diluted earnings per share |
$ 29.9 |
|
$ 33.4 |
|
$ 94.3 |
|
$ 33.9 |
|
|
|
|
|
|
|
|
|
Weighted average shares (thousands) |
|
50,082 |
|
49,934 |
|
50,052 |
|
49,894 |
|
|
|
|
|
|
|
|
|
Plus incremental shares from assumed
conversion: |
|
|
|
|
|
|
|
|
Employee stock plans |
226 |
|
114 |
|
175 |
|
163 |
|
Convertible notes |
21,868 |
|
— |
|
15,685 |
|
— |
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted weighted average
shares |
72,176 |
|
50,048 |
|
65,912 |
|
50,057 |
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per
share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP basis |
|
|
|
|
|
|
|
|
GAAP net income (loss) attributable to
Unisys Corporation
for diluted earnings per share |
$ (28.2) |
|
$ (9.6) |
|
$ (46.5) |
|
$ (111.0) |
|
|
|
|
|
|
|
|
|
Divided by adjusted weighted average
shares |
50,082 |
|
49,934 |
|
50,052 |
|
49,894 |
|
|
|
|
|
|
|
|
|
GAAP diluted earnings (loss) per
share |
$ (0.56) |
|
$ (0.19) |
|
$ (0.93) |
|
$ (2.22) |
|
|
|
|
|
|
|
|
|
Non-GAAP basis |
|
|
|
|
|
|
|
|
Non-GAAP net income (loss)
attributable to Unisys
Corporation for diluted earnings per share |
$ 29.9 |
|
$ 33.4 |
|
$ 94.3 |
|
$ 33.9 |
|
|
|
|
|
|
|
|
|
Divided by Non-GAAP adjusted weighted
average shares |
72,176 |
|
50,048 |
|
65,912 |
|
50,057 |
|
|
|
|
|
|
|
|
|
Non-GAAP diluted
earnings (loss) per share |
$ 0.41 |
|
$ 0.67 |
|
$ 1.43 |
|
$ 0.68 |
|
|
|
|
|
|
|
|
|
|
|
UNISYS
CORPORATION |
RECONCILIATION OF
GAAP OPERATING PROFIT TO NON-GAAP OPERATING PROFIT |
(Unaudited) |
(Millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months |
|
Nine Months |
|
|
|
Ended September
30 |
|
Ended September
30 |
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
GAAP operating profit (loss) |
$
(9.8) |
|
$
8.6 |
|
$
12.1 |
|
$
(70.9) |
|
|
|
|
|
|
|
|
|
|
Cost reduction and other expense |
34.6 |
|
17.4 |
|
71.7 |
|
70.0 |
|
|
|
|
|
|
|
|
|
|
FAS87 pension expense |
|
21.2 |
|
27.2 |
|
63.0 |
|
81.5 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating profit
(loss) |
$ 46.0 |
|
$ 53.2 |
|
$ 146.8 |
|
$
80.6 |
|
|
|
|
|
|
|
|
|
|
Customer Revenue |
|
$ 683.3 |
|
$ 739.2 |
|
$ 2,099.0 |
|
$ 2,225.2 |
GAAP operating profit (loss) % |
(1.4)% |
|
1.2 % |
|
0.6 % |
|
(3.2)% |
Non-GAAP operating
profit (loss) % |
6.7 % |
|
7.2 % |
|
7.0 % |
|
3.6 % |
|
|
|
|
|
|
|
|
|
|
UNISYS
CORPORATION |
RECONCILIATION OF
GAAP TO NON-GAAP |
(Unaudited) |
(Millions) |
|
|
|
|
|
|
|
|
|
|
FREE CASH
FLOW |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months |
|
Nine Months |
|
|
|
Ended September
30 |
|
Ended September
30 |
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Cash provided by (used for)
operations |
$ 42.5 |
|
$ (44.1) |
|
$ 101.3 |
|
$ (108.5) |
Additions to marketable software |
(16.9) |
|
(13.4) |
|
(47.1) |
|
(46.8) |
Additions to properties |
|
(7.3) |
|
(15.5) |
|
(18.3) |
|
(40.2) |
Additions to outsourcing assets |
(12.6) |
|
(27.7) |
|
(41.4) |
|
(80.4) |
Free cash flow |
|
5.7 |
|
(100.7) |
|
(5.5) |
|
(275.9) |
Pension funding |
|
39.9 |
|
39.9 |
|
104.0 |
|
115.6 |
Cost reduction payments |
|
23.1 |
|
24.4 |
|
62.3 |
|
37.6 |
Adjusted free cash flow |
$ 68.7 |
|
$ (36.4) |
|
$ 160.8 |
|
$ (122.7) |
|
|
|
|
|
|
|
|
|
|
UNISYS
CORPORATION |
RECONCILIATION OF
GAAP TO NON-GAAP |
(Unaudited) |
(Millions) |
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months |
|
Nine Months |
|
|
|
Ended September
30 |
|
Ended September
30 |
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Net income (loss) attributable to
Unisys
Corporation common shareholders |
$
(28.2) |
|
$
(9.6) |
|
$
(46.5) |
|
$
(111.0) |
Net income attributable to noncontrolling
interests |
3.1 |
|
2.0 |
|
8.2 |
|
6.5 |
Interest expense, net of interest income
of $2.9, $3,
$8.5, $6.7 respectively* |
4.8 |
|
— |
|
11.4 |
|
1.6 |
Provision for income taxes |
9.9 |
|
14.9 |
|
34.2 |
|
33.3 |
Depreciation |
23.3 |
|
26.5 |
|
68.3 |
|
75.3 |
Amortization |
15.6 |
|
17.4 |
|
48.0 |
|
50.3 |
EBITDA |
$ 28.5 |
|
$ 51.2 |
|
$ 123.6 |
|
$ 56.0 |
|
|
|
|
|
|
|
|
|
Pension Expense |
|
21.2 |
|
27.2 |
|
63.0 |
|
81.5 |
Cost reduction and other expense |
34.6 |
|
17.4 |
|
71.7 |
|
70.0 |
Non-cash share based expense |
2.4 |
|
1.7 |
|
7.7 |
|
7.9 |
Other (income) expense adjustment** |
0.6 |
|
1.3 |
|
4.8 |
|
(1.3) |
Adjusted EBITDA |
$ 87.3 |
|
$ 98.8 |
|
$ 270.8 |
|
$ 214.1 |
|
|
|
|
|
|
|
|
|
|
* Included in Other (income) expense, net
on the Consolidated Statements of Income |
** Other (income) expense, net as
reported on the Consolidated Statements of Income less Interest
income |
|
|
|
|
|
|
|
|
|
|
SOURCE: Unisys Corporation
CONTACT: Investors: Courtney
Holben, Unisys, 215-986-3379, courtney.holben@unisys.com, or
Media: John Clendening, Unisys,
214-403-1981, john.clendening@unisys.com