Unisys Announces
First-Quarter 2018 Financial Results; Operating Margin Expands
Year-Over-Year; Company Reaffirms Full-Year Financial Guidance
Services backlog
grew year-over-year for second consecutive quarter, up 26
percent
BLUE BELL, Pa., May 1, 2018 --
1Q 2018:
- Total revenue increased 6.6 percent year-over-year; non-GAAP
adjusted revenue(5) declined 1.4 percent
year-over-year
- Operating profit margin increased 1110 basis points
year-over-year to 14.4 percent; non-GAAP operating
profit(6) margin increased 60 basis points
year-over-year to 7.2 percent
- Technology revenue grew 76.6 percent year-over-year;
non-GAAP adjusted Technology revenue(5) grew 9.7 percent
year-over-year
- Total Contract Value(1) ("TCV") and new business
TCV were up 174 percent and 145 percent year-over-year,
respectively
- Services backlog(4) was up 26 percent
year-over-year and 10 percent sequentially, to $4.7 billion
Unisys Corporation (NYSE: UIS) today reported first-quarter 2018
financial results. Total company revenue grew 6.6 percent
year-over-year (2.5 percent in constant currency(3)),
and operating profit margin was up 1110 basis points year-over-year
to 14.4 percent. Non-GAAP adjusted revenue(5) (which is
adjusted for the recent adoption of required accounting changes)
was down 1.4 percent year-over-year, due to a tough compare created
by a large contract re-negotiation in the prior-year period, as
previously disclosed. Non-GAAP operating profit margin expanded to
7.2 percent, up 60 basis points year-over-year, even in light of
the one-time benefit from the same contract re-negotiation.
Technology revenue grew 76.6 percent year-over-year, and non-GAAP
adjusted Technology revenue(5) grew 9.7 percent, marking
the third consecutive quarter of year-over-year growth for this
segment. The company's results of operations for the first quarter
were favorably impacted by the required adoption of ASC
606(5).
The company also reported strong contract signings for the
quarter, including the largest new logo contract signed in over a
decade, based on TCV. Total Contract Value increased 174 percent
year-over-year, with new business TCV up 145 percent. Annual
Contract Value grew 136 percent year-over-year, with new business
ACV up 99 percent. Services backlog(4) was up 26 percent
year-over-year and 10 percent sequentially, to $4.7 billion.
"Our first quarter results mark a strong start to the year
against our goals for 2018," said Unisys Chairman, President and
CEO Peter A. Altabef. "We are
pleased to see continuing momentum on the go-to-market front,
including with the largest new logo contract win the company has
seen in over a decade."
Summary of First-Quarter 2018 Business
Results
Company:
Revenue of $708.4 million grew 6.6
percent year-over-year or 2.5 percent on a constant-currency basis.
Non-GAAP adjusted revenue of $655.4
million was down 1.4 percent year-over-year, due to the
tough compare noted previously.
Operating profit margin was 14.4 percent, up 1110 basis points
year-over-year. Non-GAAP operating margin expanded 60 basis points
year-over-year.
First quarter cash used in operations was $50.2 million versus $41.0
million in the first quarter 2017. First quarter adjusted
free cash flow(12) was $(50.8)
million, versus $(23.3)
million in the first quarter of 2017, due to working capital
timing and capital expenditures associated with a systems-update
project at the company's UK-based check-processing joint venture.
At March 31, 2018, the company had
$656 million in cash and cash
equivalents.
Net income for the first quarter was $40.6 million, versus a net loss of $32.7 million in the first quarter of 2017.
Diluted earnings per share were $0.62, versus a diluted loss per share of
$0.65 in the first quarter of 2017.
Non-GAAP diluted earnings per share(10) was $0.19 versus $0.32
in the prior-year period.
Adjusted EBITDA(9) for the first quarter grew 8.0
percent year-over-year to $92.9
million. Adjusted EBITDA margin for the first quarter
expanded by 130 basis points year-over-year to 14.2 percent.
TCV grew 174 percent year-over-year, and new business TCV grew
145 percent. Total ACV was up 136 percent year-over-year, and new
business ACV was up 99 percent
year-over-year.
The company reaffirms full-year 2018 guidance for non-GAAP
adjusted revenue of $2.7-2.825
billion (GAAP revenue of $2.75-2.875
billion), non-GAAP operating margin of 7.75-8.75 percent (GAAP
operating margin of 9.5-10.5 percent) and adjusted EBITDA margin of
13.7-14.9 percent.
Services:
Services revenue of $568.5 million,
which represented 80 percent of total first quarter revenue, was
down 2.9 percent year-over-year, or 6.5 percent in
constant-currency, due to the tough compare created by the benefit
of the previously-noted contract re-negotiation in the first
quarter of 2017. Services backlog grew 26 percent year-over-year
and 10 percent sequentially to end the first quarter at
$4.7 billion. Services gross margin
was down 160 basis points year-over-year, to 16.6 percent, and
Services operating profit margin was down 170 basis points
year-over-year to 3.0 percent, due in both cases to the
previously-noted tough compare.
Technology:
Technology revenue in the first quarter grew 76.6 percent
year-over-year as reported and 69.6 percent in constant currency to
$139.9 million, which represented 20
percent of total first quarter revenue. Non-GAAP adjusted
Technology revenue grew 9.7 percent year-over-year to $86.9 million. Technology gross margin for the
first quarter was up 2230 basis points year-over-year to 68.9
percent. Non-GAAP adjusted Technology gross margin(7)
expanded 530 basis points to 51.9 percent. Technology operating
profit grew 531 percent year-over-year, and Technology operating
margin was up 3930 basis points year-over-year to 54.7 percent.
Non-GAAP adjusted Technology operating margin(8)
expanded 1450 basis points to 29.9 percent.
Key First-Quarter Contract Signings:
In the first quarter, the company entered into several key
contracts in each of its sectors including the following:
- U.S. Federal: The U.S. Navy's Space and Naval Warfare Systems
Command awarded a contract to Unisys to develop, maintain and
sustain the Nuclear Command, Control and Communications Navy
Modernized Hybrid Solution messaging software. This
mission-critical message handling software is used by Navy computer
and telecommunications personnel to receive, validate, store and
forward messages from military commanders to tactical military
forces.
- Public: The Australian Department of Home Affairs has signed a
multi-year contract with Unisys to design and implement the new
Enterprise Biometric Identification Services (EBIS) system, which
will leverage Unisys Stealth® multi-factor identity
management and authentication to match face images and fingerprints
of people wishing to travel to Australia.
- Commercial: Unisys won a significant new logo contract to
provide field engineering and technical services for a major
enterprise information technology company. The services will be
provided in the United States and
Canada, and Latin America. The contract leverages Unisys'
world-class field engineering and technical support capabilities
and furthers the confidence that major technology providers have in
Unisys to provide critical, customer-facing services. This was the
largest new logo contract Unisys has signed in over a decade, based
on TCV.
- Financial Services: A leading bank in Argentina, expanded the scope of its work with
Unisys to include a migration to Unisys' Elevate™ omnichannel
banking platform. This includes a suite of applications supporting
real-time transactions across all channels including online, mobile
and in-branch. The solution will also help the bank support and
meet local regulatory needs.
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 website 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.
(1) Total Contract Value – TCV is the
estimated total contractual revenue related to contracts signed in
the period including option years (Federal contracts only) and
without regard for cancellation terms. New business TCV represents
TCV attributable to new scope for existing clients and new logo
contracts.
(2) Annual Contract Value – ACV represents the
revenue expected to be recognized during the first twelve months
following the signing of a contract in the period.
(3) 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.
(4) Services Backlog – Services Backlog is the
balance of contracted services revenue not yet recognized,
including only the funded portion of services contracts with the
U.S. Federal government.
Non-GAAP and Other Information
Although appropriate under generally accepted accounting principles
("GAAP"), the company's results reflect revenue and charges that
the company believes are not indicative of its ongoing operations
and that can make its revenue, profitability and liquidity results
difficult to compare to prior periods, anticipated future periods,
or to its competitors' results. These items consist of certain
portions of revenue, post-retirement 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.
(5) Non-GAAP adjusted revenue – For the
first quarter of 2018, the company's non-GAAP results will include
an adjustment to exclude certain revenue. The company has excluded
revenue of $53 million. This is
revenue from software license extensions and renewals which were
contracted for in the fourth quarter of 2017 and properly recorded
as revenue at that time under the revenue recognition rules then in
effect (ASC 605). Upon adoption of the new revenue recognition
rules (ASC 606) on January 1, 2018,
and since the company adopted ASC 606 under the modified
retrospective method whereby prior periods were not restated, the
company was required to include this $53
million in the cumulative effect adjustment to retained
earnings on January 1, 2018. ASC 606
requires revenue related to software license renewals or extensions
to be recorded when the new license term begins, which in the case
of the $53 million is January 1, 2018. The company has excluded revenue
and related profit for these software licenses in its non-GAAP
results since it has been previously reported in 2017. This is a
one-time adjustment and it will not reoccur in future periods.
However, in its quarterly financial statements on Form 10-Q for all
of 2018, the company is required to report what its financial
statements would have been if it had not adopted ASC 606. The
$53 million is included in those
adjustments. There are additional adjustments being made, but they
do not represent previously recorded revenue. Those adjustments
represent other differences between ASC 605 and ASC 606,
principally extended payment term software licenses and short-term
software licenses both of which are recorded at the inception of
the license term under ASC 606 but were required to be recognized
ratably over the software license term under ASC 605.
(6) Non-GAAP operating profit - The company
recorded pretax post-retirement expense and pretax charges in
connection with cost-reduction activities and other expenses. For
the company, non-GAAP operating profit excluded these items. 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. In the first
quarter of 2018, the company included the ASC 606 adjustment
discussed in (5) above.
(7) Non-GAAP adjusted Technology gross
margin – In the first quarter of 2018, the company included the
ASC 606 adjustment discussed in (5) above.
(8) Non-GAAP adjusted Technology operating
margin – In the first quarter of 2018, the company included the
ASC 606 adjustment discussed in (5) above.
(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 attributable to noncontrolling
interests, interest expense (net of interest income), provision for
income taxes, depreciation and amortization. Adjusted EBITDA
further excludes post-retirement 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. In the first quarter
of 2018, the company included the ASC 606 adjustment discussed in
(5) above.
(10) Non-GAAP diluted earnings per share - The
company has recorded post-retirement expense and charges in
connection with cost-reduction activities and other expenses.
Management believes that investors may have a better understanding
of the company's performance and return to shareholders by
excluding these charges from the GAAP diluted earnings/loss per
share calculations. The tax amounts presented for 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 amounts. In the first quarter of 2018, the company
included the ASC 606 adjustment discussed in (5) above.
(11) Free cash flow - The company 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 used for reinvestment.
(12) Adjusted free cash flow - Because
inclusion of the company's post-retirement contributions and
cost-reduction and other 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. This liquidity measure was provided to analysts and
investors in the form of external guidance and is used by
management to measure operating liquidity.
About Unisys
Unisys is a global information technology company that builds
high-performance, security-centric solutions for the most digitally
demanding businesses and governments on Earth. Unisys offerings
include security software and services; digital transformation and
workplace services; industry applications and services; and
innovative software operating environments for high-intensity
enterprise computing. For more information on how Unisys builds
better outcomes securely for its clients across the Government,
Financial Services and Commercial markets, visit
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, annual contract value, total contract value,
new business ACV or TCV, backlog 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 annual and total contract value are based, in part, on
the assumption that all options of the contracts (Federal only)
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, but are not limited to, the
following: our ability to improve revenue and margins in our
services business; our ability to maintain our installed base and
sell new solutions in our technology business; our ability to
effectively anticipate and respond to volatility and rapid
technological innovation in our industry; our ability to retain
significant clients; the potential adverse effects of aggressive
competition in the information services and technology marketplace;
cybersecurity breaches could result in significant costs and could
harm our business and reputation; our significant pension
obligations and required cash contributions and requirements to
make additional significant cash contributions to our defined
benefit pension plans; our ability to attract, motivate and retain
experienced and knowledgeable personnel in key positions; the risks
of doing business internationally when a significant portion of our
revenue is derived from international operations; our contracts may
not be as profitable as expected or provide the expected level of
revenues; our ability to access financing markets; contracts with
U.S. governmental agencies may subject us to audits, criminal
penalties, sanctions and other expenses and fines; a significant
disruption in our IT systems could adversely affect our business
and reputation; we may face damage to our reputation or legal
liability if our clients are not satisfied with our services or
products; the performance and capabilities of third parties with
whom we have commercial relationships; an involuntary termination
of the company's U.S. qualified defined benefit pension plan; the
potential for intellectual property infringement claims to be
asserted against us or our clients; the business and financial risk
in implementing future acquisitions or dispositions; the adverse
effects of global economic conditions, acts of war, terrorism or
natural disasters; the possibility that pending litigation could
affect our results of operations or cash flow; 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.: 0501/9586
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
March 31, |
|
|
|
2018 |
|
2017 |
|
Revenue |
|
|
|
|
|
Services |
|
$ 568.5 |
|
$ 585.3 |
|
Technology |
|
139.9 |
|
79.2 |
|
|
|
708.4 |
|
664.5 |
|
Costs and expenses |
|
|
|
|
|
Cost of revenue: |
|
|
|
|
|
Services |
|
470.9 |
|
486.4 |
* |
Technology |
|
36.3 |
|
39.5 |
* |
|
|
507.2 |
|
525.9 |
* |
Selling, general and administrative |
|
90.9 |
|
105.0 |
* |
Research and development |
|
8.5 |
|
11.8 |
* |
|
|
606.6 |
|
642.7 |
* |
Operating profit |
|
101.8 |
|
21.8 |
* |
Interest expense |
|
16.6 |
|
5.7 |
|
Other income (expense), net |
|
(22.6) |
|
(32.9) |
* |
Income (loss) before income taxes |
|
62.6 |
|
(16.8) |
|
Provision for income taxes |
|
20.9 |
|
12.9 |
|
Consolidated net income (loss) |
|
41.7 |
|
(29.7) |
|
Net income attributable to noncontrolling
interests |
|
1.1 |
|
3.0 |
|
Net income (loss) attributable to Unisys
Corporation common shareholders |
|
$
40.6 |
|
$ (32.7) |
|
Earnings (loss) per share attributable to
Unisys Corporation |
|
|
|
|
|
Basic |
|
$
0.80 |
|
$ (0.65) |
|
Diluted |
|
$
0.62 |
|
$ (0.65) |
|
Shares used in the per share computations (in
thousands): |
|
|
|
|
|
Basic |
|
50,748 |
|
50,256 |
|
Diluted |
|
72,943 |
|
50,256 |
|
|
|
|
|
|
|
*Certain amounts have been
reclassified to conform to the current-year presentation. |
UNISYS
CORPORATION |
SEGMENT
RESULTS |
(Unaudited) |
(Millions) |
|
|
|
|
|
|
|
|
|
|
|
Total |
|
Eliminations |
|
Services |
|
Technology |
Three Months Ended March 31, 2018 |
|
|
|
|
|
|
|
|
Customer revenue |
|
$ 708.4 |
|
$
— |
|
$ 568.5 |
|
$ 139.9 |
Intersegment |
|
— |
|
(10.0) |
|
— |
|
10.0 |
Total revenue |
|
$ 708.4 |
|
$ (10.0) |
|
$ 568.5 |
|
$ 149.9 |
Gross profit percent |
|
28.4 % |
|
|
|
16.6 % |
|
68.9 % |
Operating profit percent |
|
14.4 % |
|
|
|
3.0 % |
|
54.7 % |
Three Months Ended March 31, 2017 |
|
|
|
|
|
|
|
|
Customer revenue |
|
$ 664.5 |
|
$
— |
|
$ 585.3 |
|
$
79.2 |
Intersegment |
|
— |
|
(5.3) |
|
— |
|
5.3 |
Total revenue |
|
$ 664.5 |
|
$
(5.3) |
|
$ 585.3 |
|
$
84.5 |
Gross profit percent |
|
20.9 % |
* |
|
|
18.2 % |
|
46.6 % |
Operating profit percent |
|
3.3 % |
* |
|
|
4.7 % |
|
15.4 % |
|
|
|
|
|
|
|
|
|
*Certain amounts have been
reclassified to conform to the current-year presentation. |
UNISYS
CORPORATION |
CONSOLIDATED BALANCE
SHEETS |
(Unaudited) |
(Millions) |
|
|
|
|
|
|
March 31, 2018 |
|
December 31, 2017 |
|
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
$
656.4 |
|
$
733.9 |
|
Accounts receivable, net |
492.5 |
|
503.3 |
|
Contract assets |
46.4 |
|
— |
|
Inventories: |
|
|
|
|
Parts and finished equipment |
11.5 |
|
13.6 |
|
Work in process and materials |
10.7 |
|
12.5 |
|
Prepaid expenses and other current assets |
115.3 |
|
126.2 |
|
Total current assets |
1,332.8 |
|
1,389.5 |
|
Properties |
906.6 |
|
898.8 |
|
Less-Accumulated depreciation and
amortization |
769.7 |
|
756.3 |
|
Properties, net |
136.9 |
|
142.5 |
|
Outsourcing assets, net |
213.4 |
|
202.3 |
|
Marketable software, net |
142.6 |
|
138.3 |
|
Prepaid postretirement assets |
157.3 |
|
148.3 |
|
Deferred income taxes |
116.0 |
|
119.9 |
|
Goodwill |
181.0 |
|
180.8 |
|
Restricted cash |
26.6 |
|
30.2 |
|
Other long-term assets |
207.1 |
|
190.6 |
|
Total assets |
$
2,513.7 |
|
$
2,542.4 |
|
Liabilities and deficit |
|
|
|
|
Current liabilities: |
|
|
|
|
Current maturities of long-term-debt |
$
10.6 |
|
$
10.8 |
|
Accounts payable |
214.5 |
|
241.8 |
|
Deferred revenue |
324.8 |
|
327.5 |
|
Other accrued liabilities |
344.4 |
|
391.5 |
|
Total current liabilities |
894.3 |
|
971.6 |
|
Long-term debt |
636.2 |
|
633.9 |
|
Long-term postretirement liabilities |
1,973.2 |
|
2,004.4 |
|
Long-term deferred revenue |
184.9 |
|
159.0 |
|
Other long-term liabilities |
95.9 |
|
100.0 |
|
Commitments and contingencies |
|
|
|
|
Total deficit |
(1,270.8) |
|
(1,326.5) |
|
Total liabilities and deficit |
$
2,513.7 |
|
$
2,542.4 |
|
UNISYS
CORPORATION |
CONSOLIDATED
STATEMENTS OF CASH FLOWS |
(Unaudited) |
(Millions) |
|
|
|
|
|
|
|
|
Three Months
Ended
March 31, |
|
|
|
2018 |
|
2017 |
|
Cash flows from operating activities |
|
|
|
|
|
Consolidated net income (loss) |
|
$ 41.7 |
|
$ (29.7) |
|
Adjustments to reconcile consolidated net (income)
loss to net cash used for operating activities: |
|
|
|
|
|
Foreign currency transaction losses |
|
3.3 |
|
5.3 |
|
Non-cash interest expense |
|
2.6 |
|
2.0 |
|
Employee stock compensation |
|
4.0 |
|
3.7 |
|
Depreciation and amortization of properties |
|
11.2 |
|
10.1 |
|
Depreciation and amortization of outsourcing
assets |
|
16.1 |
|
12.9 |
|
Amortization of marketable software |
|
14.7 |
|
15.7 |
|
Other non-cash operating activities |
|
(0.9) |
|
(1.1) |
|
Loss on disposal of capital assets |
|
0.2 |
|
3.8 |
|
Postretirement contributions |
|
(30.9) |
|
(31.7) |
* |
Postretirement expense |
|
19.3 |
|
26.2 |
* |
Decrease in deferred income taxes, net |
|
6.0 |
|
2.2 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
Receivables, net |
|
(28.0) |
|
0.1 |
|
Inventories |
|
0.8 |
|
0.1 |
|
Accounts payable and other accrued
liabilities |
|
(130.1) |
|
(50.0) |
|
Other liabilities |
|
21.2 |
|
(9.2) |
* |
Other assets |
|
(1.4) |
|
(1.4) |
|
Net cash used for operating activities |
|
(50.2) |
|
(41.0) |
|
Cash flows from investing activities |
|
|
|
|
|
Proceeds from investments |
|
1,222.7 |
|
1,218.9 |
|
Purchases of investments |
|
(1,208.7) |
|
(1,211.5) |
|
Investment in marketable software |
|
(19.0) |
|
(13.8) |
|
Capital additions of properties |
|
(5.1) |
|
(8.5) |
|
Capital additions of outsourcing assets |
|
(24.4) |
|
(12.9) |
|
Other |
|
(0.4) |
|
(0.3) |
|
Net cash used for investing activities |
|
(34.9) |
|
(28.1) |
|
Cash flows from financing activities |
|
|
|
|
|
Payments of long-term debt |
|
(0.7) |
|
(0.7) |
|
Other |
|
(2.1) |
|
(2.1) |
|
Net cash used for financing activities |
|
(2.8) |
|
(2.8) |
|
Effect of exchange rate changes on cash, cash
equivalents and restricted cash |
|
6.8 |
|
6.3 |
|
Decrease in cash, cash equivalents and
restricted cash |
|
(81.1) |
|
(65.6) |
|
Cash, cash equivalents and restricted cash,
beginning of period |
|
764.1 |
|
401.1 |
|
Cash, cash equivalents and restricted cash, end
of period |
|
$ 683.0 |
|
$ 335.5 |
|
|
|
|
|
|
|
* Certain amounts have been
reclassified to conform to the current-year presentation. |
|
UNISYS
CORPORATION |
RECONCILIATION OF
SELECTED GAAP MEASURES TO NON-GAAP MEASURES |
(Unaudited) |
(Millions, except
per share data) |
|
|
|
|
|
|
|
|
|
|
Three
Months |
|
|
|
|
Ended March
31, |
|
|
|
|
2018 |
|
2017 |
|
GAAP net income (loss) attributable
to Unisys Corporation common
shareholders |
|
$
40.6 |
|
$ (32.7) |
|
|
|
|
|
|
|
|
Topic 606 adjustment: |
pretax |
|
(53.0) |
|
— |
|
|
tax provision |
|
5.3 |
|
— |
|
|
net of tax |
|
(47.7) |
|
— |
|
|
|
|
|
|
|
|
Postretirement expense: |
pretax |
|
19.3 |
|
26.2 |
* |
|
tax provision |
|
0.3 |
|
0.2 |
|
|
net of tax |
|
19.6 |
|
26.4 |
* |
|
|
|
|
|
|
|
Cost reduction and other expense: |
pretax |
|
(2.9) |
|
25.4 |
|
|
tax provision |
|
0.1 |
|
(0.5) |
|
|
net of tax |
|
(2.8) |
|
24.9 |
|
|
|
|
|
|
|
|
Non-GAAP net income attributable to
Unisys Corporation common
shareholders |
|
9.7 |
|
18.6 |
* |
|
|
|
|
|
|
|
Add interest expense on convertible
notes |
|
— |
|
4.7 |
|
|
|
|
|
|
|
|
Non-GAAP net income attributable to
Unisys Corporation for diluted
earnings per share |
|
$
9.7 |
|
$
23.3 |
* |
|
|
|
|
|
|
|
Weighted average shares
(thousands) |
|
50,748 |
|
50,256 |
|
|
|
|
|
|
|
|
Plus incremental shares from assumed
conversion: |
|
|
|
|
|
Employee stock plans |
|
327 |
|
387 |
|
|
Convertible notes |
|
— |
|
21,868 |
|
|
|
|
|
|
|
|
Non-GAAP adjusted weighted average
shares |
|
51,075 |
|
72,511 |
|
|
|
|
|
|
|
|
Diluted earnings (loss) per
share |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP basis |
|
|
|
|
|
GAAP net income (loss) attributable to
Unisys Corporation for diluted earnings per share |
|
$ 45.4 |
|
$ (32.7) |
|
|
|
|
|
|
|
|
Divided by adjusted weighted average
shares |
|
72,943 |
|
50,256 |
|
|
|
|
|
|
|
|
GAAP diluted earnings (loss) per
share |
|
$
0.62 |
|
$ (0.65) |
|
|
|
|
|
|
|
|
Non-GAAP basis |
|
|
|
|
|
Non-GAAP net income attributable to
Unisys Corporation for diluted earnings per share |
|
$ 9.7 |
|
$ 23.3 |
* |
|
|
|
|
|
|
|
Divided by Non-GAAP adjusted weighted
average shares |
|
51,075 |
|
72,511 |
|
|
|
|
|
|
|
|
Non-GAAP diluted earnings per
share |
|
$
0.19 |
|
$
0.32 |
* |
|
|
|
|
|
|
|
* Certain amounts have been
reclassified to conform to the current-year presentation.
|
|
UNISYS
CORPORATION |
RECONCILIATION OF
GAAP OPERATING PROFIT TO NON-GAAP OPERATING PROFIT |
(Unaudited) |
(Millions) |
|
|
|
|
|
|
|
|
|
|
Three
Months |
|
|
|
|
Ended March
31, |
|
|
|
|
2018 |
|
2017 |
|
GAAP operating profit |
|
$ 101.8 |
|
$
21.8 |
* |
Topic 606 adjustment |
|
(53.0) |
|
— |
|
Postretirement expense |
|
1.0 |
|
1.7 |
* |
Cost reduction and other expense |
|
(2.9) |
|
20.1 |
|
Non-GAAP operating profit |
|
$
46.9 |
|
$
43.6 |
* |
|
|
|
|
|
|
|
GAAP customer revenue |
|
$ 708.4 |
|
$ 664.5 |
|
Non-GAAP adjusted customer
revenue |
|
655.4 |
|
664.5 |
|
GAAP operating profit
% |
|
14.4 % |
|
3.3 % |
* |
Non-GAAP operating profit
% |
|
7.2 % |
|
6.6 % |
* |
|
|
|
|
|
|
|
* Certain amounts have been
reclassified to conform to the current-year presentation. |
|
UNISYS
CORPORATION |
RECONCILIATION OF
GAAP TO NON-GAAP |
(Unaudited) |
(Millions) |
|
|
|
|
|
|
|
FREE CASH
FLOW |
|
|
|
|
|
|
|
|
|
|
Three
Months |
|
|
|
|
Ended March
31, |
|
|
|
|
2018 |
|
2017 |
|
Cash used for operations |
|
$ (50.2) |
|
$ (41.0) |
|
Additions to marketable software |
|
(19.0) |
|
(13.8) |
|
Additions to properties |
|
(5.1) |
|
(8.5) |
|
Additions to outsourcing assets |
|
(24.4) |
|
(12.9) |
|
Free cash flow |
|
(98.7) |
|
(76.2) |
|
Postretirement funding |
|
30.9 |
|
31.7 |
* |
Cost reduction and other payments |
|
17.0 |
|
21.2 |
|
Adjusted free cash flow |
|
$ (50.8) |
|
$ (23.3) |
* |
|
|
|
|
|
|
|
* Certain amounts have been
reclassified to conform to the current-year presentation. |
UNISYS
CORPORATION |
RECONCILIATION OF
GAAP TO NON-GAAP |
(Unaudited) |
(Millions) |
|
|
|
|
|
|
|
EBITDA |
|
|
|
|
|
|
|
|
|
|
Three
Months |
|
|
|
|
Ended March
31, |
|
|
|
|
2018 |
|
2017 |
|
Net income (loss) attributable to
Unisys Corporation common shareholders |
|
$
40.6 |
|
$ (32.7) |
|
Net income attributable to
noncontrolling interests |
|
1.1 |
|
3.0 |
|
Interest expense, net of interest
income of $3.2, $2.4, respectively** |
|
13.4 |
|
3.3 |
|
Provision for income taxes |
|
20.9 |
|
12.9 |
|
Depreciation |
|
27.3 |
|
23.0 |
|
Amortization |
|
14.7 |
|
15.7 |
|
EBITDA |
|
$ 118.0 |
|
$
25.2 |
|
|
|
|
|
|
|
Topic 606 adjustment |
|
(53.0) |
|
— |
|
Postretirement expense |
|
19.3 |
|
26.2 |
* |
Cost reduction and other expense |
|
(2.9) |
|
25.4 |
|
Non-cash share based expense |
|
4.0 |
|
3.7 |
|
Other (income) expense
adjustment*** |
|
7.5 |
|
5.5 |
|
Adjusted EBITDA |
|
$
92.9 |
|
$
86.0 |
* |
|
|
|
|
|
|
|
*Certain amounts have been
reclassified to conform to the current-year
presentation. |
** 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
postretirement expense, interest income and items included in cost
reduction and other expense |
SOURCE Unisys Corporation
CONTACT: Investors: Courtney
Holben, Unisys, 215-986-3379, courtney.holben@unisys.com;
Media: John Clendening, Unisys,
214-403-1981, john.clendening@unisys.com