Unisys Announces 4Q and FY22 Results
Solid Fourth Quarter Performance with Expansion in
Next-Gen(7) Solutions
- 4Q revenue increased 3.3% year over year (YoY) and 7.0% in
constant currency(1)
- Full-year revenue declined 3.6% YoY and grew 0.1% in
constant currency
- 4Q GAAP operating profit margin of 9.0%; non-GAAP operating
profit margin(8) of 20.2%
- Full-year GAAP operating profit margin of 2.6%; non-GAAP
operating profit margin of 8.0%
- 4Q total company pipeline(3) growth of 15%
YoY
- Full year book-to-bill(6) of 1.1x in 2022,
up from 0.8x in 2021
- Year-end global GAAP pension deficit improvement of
approximately $210M
- Company issues full-year 2023 guidance of (3.0%) to (7.0%)
YoY constant currency revenue growth, 2.0% to 4.0% non-GAAP
operating margin, and 9.5% to 11.5% adjusted EBITDA margin
- Guidance reflects expectations for (1%) to 4% constant
currency revenue growth excluding License and Support (L&S)
revenue within Enterprise Computing Solutions
BLUE BELL, Pa., Feb. 22, 2023 -- Unisys Corporation (NYSE:
UIS) today reported fourth-quarter and full-year 2022 financial
results.
"We had a solid finish to the year, delivering 7% year-over-year
constant currency revenue growth in the fourth quarter. Our
higher growth and higher margin Next-Gen Solutions are building
momentum in the marketplace, growing total contract
value(5) more than 80% versus the prior year
quarter and more than doubling annual contract
value(4) versus the prior year
quarter. As we start 2023, we believe the new Unisys brand is
resonating with our clients, prospects, third party advisors, and
industry analysts," said Unisys Chair and CEO Peter A. Altabef. "Our pipeline is stronger than
it was a year ago, and our trailing twelve month book-to-bill
expanded year-over-year to 1.1x. Although the light license and
support renewal schedule for 2023 is expected to drive an overall
decline in revenue and profit for the year, we expect revenue and
margin improvement in the remainder of the business."
Summary of Full-Year 2022 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 $1.980B vs.
$2.054B in 2021, down 3.6% YoY; up
0.1% in constant currency
- Gross Profit:
- Gross profit of $529.6M vs.
$572.0M in 2021, down 7.4% YoY
- Gross margin of 26.7% vs. 27.8% in 2021, down 110 bps YoY
- Operating Profit:
- Operating profit of $52.2M vs.
$154.0M in 2021, down 66.1% YoY
primarily driven by charges related to cost-reduction activities
and other non-recurring expenses
- Operating profit margin of 2.6% vs. 7.5% in 2021
- Non-GAAP operating profit of $159.0M vs. $192.8M
in 2021, down 17.5% YoY driven by an increase in marketing expense
related to the launch of the new Unisys brand, the exit of certain
non-strategic contracts and additional expense associated with
certain contracts
- Non-GAAP operating profit margin of 8.0% vs. 9.4% in 2021
- Net Income:
- Net loss of $106.0M driven by
increased charges related to cost-reduction activities and other
non-recurring expenses vs. net loss of $448.5M in 2021, which included $447.9 million of after-tax settlement losses
related to the company's defined benefit pension plans
- Non-GAAP net income(10) of $74.8M vs. $117.5M
in 2021, down 36.3% YoY
- Adjusted EBITDA:
- Adjusted EBITDA(9) of $325.8M vs. $369.9M
in 2021, down 11.9% YoY
- Adjusted EBITDA margin of 16.5% vs. 18.0% in 2021, down 150 bps
YoY
- Earnings/Loss Per Share:
- Loss per diluted share of $1.57
vs. loss per diluted share of $6.75
in 2021, driven by the same factors noted above with respect to
GAAP net loss
- Non-GAAP diluted earnings per share of $1.10 vs. $1.75 in
2021
- Cash Flow:
- Cash from operations of $12.7M
vs. $132.5M in 2021
- Free cash flow(11) of $(73.2)M vs. $32.3M
in 2021, primarily due to lower profitability and lower technology
collections in 2022 vs. 2021
- Adjusted free cash flow(12) of $27.0M vs. $172.2M
in 2021
- Pipeline, ACV, TCV, Book-to-Bill:
- Solid year-over-year growth in pipeline, ACV, and TCV driven by
expansion across our Next-Gen Solutions of Modern Workplace,
Digital Platforms and Applications (DP&A), Specialized Services
and Next-Gen Compute (SS&C) and Micro-Market Solutions
- Pipeline: increased 15% YoY
- ACV: increased 36% YoY
- TCV: increased 28% YoY
- Trailing-twelve-month book-to-bill: 1.1x up from 0.8x in
2021
- Balance Sheet:
- As of December 31, 2022, total
cash and cash equivalents was $391.8M
- Year-end global GAAP pension deficit improvement of
approximately $210M to $543.1M
Full-Year 2022 Financial Highlights by
Segment:
Digital Workplace Solutions (DWS): The company continues
the transformation of its DWS business as clients shift into higher
growth and margin Modern Workplace solutions
- Revenue:
- DWS revenue of $509.9M vs.
$574.5M in 2021, a decline of 11.2%
YoY or a decline of 7.3% in constant currency, primarily due to an
$82.5M impact from non-strategic
contracts exited in 2021
- Excluding these contracts, DWS revenue grew 3.7% YoY, or 8.4%
in constant currency, driven by demand for Modern Workplace
solutions
- Gross Margin:
- DWS gross profit margin of 14.0% vs. 13.8% in 2021
Cloud, Applications & Infrastructure Solutions
(CA&I): Continued expansion of DP&A solutions within
CA&I. The company continues to evolve its portfolio in this
direction.
- Revenue:
- CA&I revenue of $520.3M vs.
$485.6M in 2021, up 7.1% YoY, or 9.4%
in constant currency primarily driven by expansion of DP&A
solutions and our acquired application development solutions
- Gross Margin:
- CA&I gross profit margin of 9.1% vs. 9.7% in 2021, down 60
bps YoY driven by additional expense associated with certain
contract exits and higher labor costs
Enterprise Computing Solutions (ECS): The company is
delivering innovation in industry solutions and next-gen compute
capabilities to reinvigorate new logo growth in ECS
- Revenue:
- ECS revenue of $669.7M vs.
$685.7M in 2021, down 2.3% YoY, or up
0.1% YoY in constant currency
- Gross Margin:
- ECS gross profit margin of 64.5% vs. 63.4% in 2021
Summary of Fourth Quarter 2022
Results
- Revenue:
- Revenue of $557.0M vs.
$539.3M in 4Q21, up 3.3% YoY, or 7.0%
in constant currency
- Growth was driven by strength in CA&I and a strong quarter
of license renewals within ECS, particularly with clients in the
travel and financial services sectors
- Gross Profit:
- Gross profit of $189.8M vs.
$163.7M in 4Q21, up 15.9% YoY
- Gross profit margin of 34.1% vs 30.4% in 4Q21
- 370 bps YoY improvement driven by higher ECS revenue and
improvements to delivery efficiency in DWS and CA&I
- Operating Profit:
- GAAP operating profit of $50.0M
vs. $44.5M in 4Q21, up 12.4% YoY
- GAAP operating profit margin of 9.0% vs 8.3% in 4Q21
- Non-GAAP operating profit of $112.4M vs. $63.3M
in 4Q21, up 77.6% YoY
- Non-GAAP operating profit margin of 20.2% vs. 11.7% in
4Q21
- Net Income:
- GAAP net income of $8.5M vs. a
net loss of $131.2M in 4Q21
- Non-GAAP net income of $82.8M vs.
$34.8M in 4Q21, up 137.9% YoY
- Adjusted EBITDA
- Adjusted EBITDA of $148.7M vs.
$107.0M in 4Q21, up 39.0% YoY
- Adjusted EBITDA margin of 26.7% vs. 19.8% in 4Q21
- Earnings/Loss Per Share:
- Diluted earnings per share of $0.12 vs. diluted loss per share of $1.95 in 4Q21
- Non-GAAP diluted earnings per share of $1.22 vs. $0.51 in
4Q21
- Cash Flow:
- Cash from operations was $34.9M
vs. $68.0M in 4Q21
- Free cash flow was $13.8M vs.
$44.3M in 4Q21
- Adjusted free cash flow was $39.3M vs. $72.2M
in 4Q21
- Year-over-year decline in free cash flow primarily due to lower
technology collections in 2022 vs. 2021
- ACV, TCV & Backlog:
- 4Q ACV: increased 58% YoY
- 4Q TCV: increased 55% YoY
- Driven by strength across Next-Gen Solutions and higher renewal
levels in DWS
- Backlog(2): $2.92B from $2.69B
in 3Q22, a $230M expansion
quarter-over-quarter
Fourth Quarter 2022 Financial
Highlights by Segment:
Strong 4Q constant currency growth and margin expansion in
CA&I and ECS
DWS:
- Revenue:
- DWS revenue of $127.8M vs.
$140.0M in 4Q21, down 8.7% YoY, or
down 3.0% in constant currency due to a $12M impact from the exit of several
non-strategic accounts in 2021
- Gross Profit Margin:
- DWS gross profit margin of 15.1% vs. 14.0% in 4Q21, up 110 bps
YoY driven by increased delivery efficiency
CA&I:
- Revenue:
- CA&I revenue of $138.8M vs.
$127.3M in 4Q21, up 9.0% YoY, or
11.6% in constant currency
- Gross Profit Margin:
- CA&I gross profit margin of 19.0% vs. 13.4% in 4Q21, up 560
bps YoY primarily due to expansion of DP&A solutions and our
acquired application development solutions
ECS:
- Revenue:
- ECS revenue of $225.6M vs.
$193.6M in 4Q21, up 16.5% YoY, or
16.8% in constant currency
- Gross Profit Margin:
- ECS gross profit margin of 73.3% vs. 65.3% in 4Q21, up 800 bps
YoY due to flow through from higher license renewal levels during
the quarter
2023 Financial Guidance
The company has issued full-year 2023 revenue and profitability
guidance. Constant currency revenue growth is expected to be in the
range of (3.0%) to (7.0%) YoY. The company anticipates that
non-GAAP operating profit margin will be in the range of 2.0% to
4.0% and adjusted EBITDA margin in the range of 9.5% to 11.5%.
Conference Call
Unisys will hold a conference call with the financial community
on Thursday, February 23 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
5843310 from two hours after the end of the call until March 9, 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 recorded 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 post-retirement expenses 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 expenses 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.
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.: 0222/9898
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
December 31, |
|
Year Ended
December 31, |
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
| Revenue |
|
|
|
|
|
|
|
|
| Services |
|
$ 409.7 |
|
$ 430.5 |
|
$ 1,597.3 |
|
$ 1,699.3 |
| Technology |
|
147.3 |
|
108.8 |
|
382.6 |
|
355.1 |
|
|
557.0 |
|
539.3 |
|
1,979.9 |
|
2,054.4 |
| Costs and expenses |
|
|
|
|
|
|
|
|
| Cost of revenue: |
|
|
|
|
|
|
|
|
| Services |
|
324.3 |
|
339.0 |
|
1,285.9 |
|
1,358.7 |
| Technology |
|
42.9 |
|
36.6 |
|
164.4 |
|
123.7 |
|
|
367.2 |
|
375.6 |
|
1,450.3 |
|
1,482.4 |
| Selling, general and administrative |
|
132.9 |
|
109.8 |
|
453.2 |
|
389.5 |
| Research and development |
|
6.9 |
|
9.4 |
|
24.2 |
|
28.5 |
|
|
507.0 |
|
494.8 |
|
1,927.7 |
|
1,900.4 |
| Operating income |
|
50.0 |
|
44.5 |
|
52.2 |
|
154.0 |
| Interest expense |
|
7.8 |
|
8.4 |
|
32.4 |
|
35.4 |
| Other (expense), net |
|
(16.2) |
|
(145.7) |
|
(82.4) |
|
(580.3) |
| Earnings (loss) before income taxes |
|
26.0 |
|
(109.6) |
|
(62.6) |
|
(461.7) |
| Provision (benefit) for income taxes |
|
17.2 |
|
21.9 |
|
42.3 |
|
(11.9) |
| Consolidated net earnings (loss) |
|
8.8 |
|
(131.5) |
|
(104.9) |
|
(449.8) |
| Net income (loss) attributable to noncontrolling
interests |
|
0.3 |
|
(0.3) |
|
1.1 |
|
(1.3) |
| Net income (loss) attributable to Unisys
Corporation |
|
$ 8.5 |
|
$
(131.2) |
|
$
(106.0) |
|
$
(448.5) |
| Earnings (loss) per common share attributable
to Unisys Corporation |
|
|
|
|
|
|
|
|
| Basic |
|
$ 0.13 |
|
$
(1.95) |
|
$
(1.57) |
|
$
(6.75) |
| Diluted |
|
$ 0.12 |
|
$
(1.95) |
|
$
(1.57) |
|
$
(6.75) |
UNISYS
CORPORATION
SEGMENT RESULTS
(Unaudited)
(Millions) |
|
|
|
Total |
|
DWS |
|
CA&I |
|
ECS |
|
Other |
| Three Months Ended December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
| Customer revenue |
|
$ 557.0 |
|
$ 127.8 |
|
$ 138.8 |
|
$ 225.6 |
|
$ 64.8 |
| Intersegment |
|
— |
|
— |
|
— |
|
— |
|
— |
| Total revenue |
|
$ 557.0 |
|
$ 127.8 |
|
$ 138.8 |
|
$ 225.6 |
|
$ 64.8 |
| Gross profit percent |
|
34.1 % |
|
15.1 % |
|
19.0 % |
|
73.3 % |
|
|
| Three Months Ended December 31, 2021 |
|
|
|
|
|
|
|
|
|
|
| Customer revenue |
|
$ 539.3 |
|
$ 140.0 |
|
$ 127.3 |
|
$ 193.6 |
|
$ 78.4 |
| Intersegment |
|
— |
|
— |
|
— |
|
— |
|
— |
| Total revenue |
|
$ 539.3 |
|
$ 140.0 |
|
$ 127.3 |
|
$ 193.6 |
|
$ 78.4 |
| Gross profit percent |
|
30.4 % |
|
14.0 % |
|
13.4 % |
|
65.3 % |
|
|
|
|
|
|
Total |
|
DWS |
|
CA&I |
|
ECS |
|
Other |
| Year Ended December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
| Customer revenue |
|
$ 1,979.9 |
|
$ 509.9 |
|
$ 520.3 |
|
$ 669.7 |
|
$ 280.0 |
| Intersegment |
|
— |
|
— |
|
— |
|
— |
|
— |
| Total revenue |
|
$ 1,979.9 |
|
$ 509.9 |
|
$ 520.3 |
|
$ 669.7 |
|
$ 280.0 |
| Gross profit percent |
|
26.7 % |
|
14.0 % |
|
9.1 % |
|
64.5 % |
|
|
| Year Ended December 31, 2021 |
|
|
|
|
|
|
|
|
|
|
| Customer revenue |
|
$ 2,054.4 |
|
$ 574.5 |
|
$ 485.6 |
|
$ 685.7 |
|
$ 308.6 |
| Intersegment |
|
— |
|
— |
|
— |
|
1.4 |
|
(1.4) |
| Total revenue |
|
$ 2,054.4 |
|
$ 574.5 |
|
$ 485.6 |
|
$ 687.1 |
|
$ 307.2 |
| Gross profit percent |
|
27.8 % |
|
13.8 % |
|
9.7 % |
|
63.4 % |
|
|
UNISYS
CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Millions) |
|
|
December 31,
2022 |
|
December 31,
2021 |
| Assets |
|
|
|
| Current assets |
|
|
|
| Cash and cash equivalents |
$
391.8 |
|
$
552.9 |
| Accounts receivable, net |
402.5 |
|
451.7 |
| Contract assets |
28.9 |
|
42.0 |
| Inventories |
14.9 |
|
7.6 |
| Prepaid expenses and other current assets |
92.3 |
|
78.8 |
| Total current assets |
930.4 |
|
1,133.0 |
| Properties |
410.8 |
|
468.0 |
| Less – Accumulated depreciation and
amortization |
334.9 |
|
381.5 |
| Properties, net |
75.9 |
|
86.5 |
| Outsourcing assets, net |
66.4 |
|
124.6 |
| Marketable software, net |
165.1 |
|
176.2 |
| Operating lease right-of-use assets |
42.5 |
|
62.7 |
| Prepaid postretirement assets |
119.5 |
|
159.7 |
| Deferred income taxes |
118.6 |
|
125.3 |
| Goodwill |
287.1 |
|
315.0 |
| Intangible assets, net |
52.4 |
|
34.9 |
| Restricted cash |
10.9 |
|
7.7 |
| Assets held-for-sale |
6.4 |
|
20.0 |
| Other long-term assets |
190.4 |
|
173.9 |
| Total assets |
$
2,065.6 |
|
$
2,419.5 |
| Total liabilities and equity (deficit) |
|
|
|
| Current liabilities: |
|
|
|
| Current maturities of long-term debt |
$
17.4 |
|
$
18.2 |
| Accounts payable |
160.8 |
|
180.2 |
| Deferred revenue |
200.7 |
|
253.2 |
| Other accrued liabilities |
271.6 |
|
300.9 |
| Total current liabilities |
650.5 |
|
752.5 |
| Long-term debt |
495.7 |
|
511.2 |
| Long-term postretirement liabilities |
714.6 |
|
976.2 |
| Long-term deferred revenue |
122.3 |
|
150.7 |
| Long-term operating lease liabilities |
29.7 |
|
46.1 |
| Other long-term liabilities |
31.0 |
|
47.2 |
| Commitments and contingencies |
|
|
|
| Total Unisys Corporation stockholders'
deficit |
(14.7) |
|
(113.7) |
| Noncontrolling interests |
36.5 |
|
49.3 |
| Total equity (deficit) |
21.8 |
|
(64.4) |
| Total liabilities and equity (deficit) |
$
2,065.6 |
|
$
2,419.5 |
UNISYS
CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Millions) |
|
|
|
Year Ended
December 31, |
|
|
2022 |
|
2021 |
| Cash flows from operating activities |
|
|
|
|
| Consolidated net loss |
|
$
(104.9) |
|
$
(449.8) |
| Adjustments to reconcile consolidated net loss to
net cash provided by operating activities: |
|
|
|
|
| Foreign currency losses |
|
6.8 |
|
2.6 |
| Non-cash interest expense |
|
1.3 |
|
1.8 |
| Employee stock compensation |
|
20.0 |
|
18.8 |
| Depreciation and amortization of properties |
|
50.2 |
|
30.5 |
| Depreciation and amortization of outsourcing
assets |
|
64.5 |
|
68.0 |
| Amortization of marketable software |
|
58.7 |
|
71.9 |
| Amortization of intangible assets |
|
10.1 |
|
3.0 |
| Other non-cash operating activities |
|
0.3 |
|
(0.6) |
| Loss on disposal of capital assets |
|
6.6 |
|
2.2 |
| Postretirement contributions |
|
(43.7) |
|
(56.4) |
| Postretirement expense |
|
45.3 |
|
552.0 |
| Deferred income taxes, net |
|
(8.3) |
|
(59.2) |
| Changes in operating assets and liabilities,
excluding the effects of acquisitions: |
|
|
|
|
| Receivables, net and contract assets |
|
15.5 |
|
47.4 |
| Inventories |
|
(8.0) |
|
6.0 |
| Other assets |
|
(2.6) |
|
8.0 |
| Accounts payable and other accrued
liabilities |
|
(103.8) |
|
(149.4) |
| Other liabilities |
|
4.7 |
|
35.7 |
| Net cash provided by operating
activities |
|
12.7 |
|
132.5 |
| Cash flows from investing activities |
|
|
|
|
| Proceeds from investments |
|
3,336.1 |
|
4,148.2 |
| Purchases of investments |
|
(3,380.4) |
|
(4,168.1) |
| Capital additions of properties |
|
(31.0) |
|
(27.3) |
| Capital additions of outsourcing assets |
|
(8.6) |
|
(18.5) |
| Investment in marketable software |
|
(46.3) |
|
(54.4) |
| Purchases of businesses, net of cash acquired |
|
(0.3) |
|
(239.3) |
| Other |
|
(0.9) |
|
(0.9) |
| Net cash used for investing activities |
|
(131.4) |
|
(360.3) |
| Cash flows from financing activities |
|
|
|
|
| Payments of long-term debt |
|
(17.8) |
|
(103.1) |
| Proceeds from issuance of long-term debt |
|
— |
|
1.5 |
| Proceeds from exercise of stock options |
|
— |
|
4.5 |
| Other |
|
(3.8) |
|
(8.4) |
| Net cash used for financing activities |
|
(21.6) |
|
(105.5) |
| Effect of exchange rate changes on cash, cash
equivalents and restricted cash |
|
(17.6) |
|
(12.8) |
| Decrease in cash, cash equivalents and
restricted cash |
|
(157.9) |
|
(346.1) |
| Cash, cash equivalents and restricted cash,
beginning of period |
|
560.6 |
|
906.7 |
| Cash, cash equivalents and restricted cash, end
of period |
|
$ 402.7 |
|
$ 560.6 |
UNISYS
CORPORATION
RECONCILIATIONS OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(Unaudited)
(Millions, except per share data) |
|
|
|
|
Three Months
Ended |
|
Year Ended |
|
|
|
December
31, |
|
December
31, |
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
| GAAP net income (loss) attributable
to Unisys Corporation |
|
$ 8.5 |
|
$
(131.2) |
|
$
(106.0) |
|
$
(448.5) |
| Postretirement expense: |
pretax |
|
11.2 |
|
144.3 |
|
45.3 |
|
552.0 |
|
tax |
|
0.1 |
|
0.4 |
|
0.5 |
|
53.2 |
|
net of tax |
|
11.1 |
|
143.9 |
|
44.8 |
|
498.8 |
| Cost reduction and other expenses |
pretax |
|
66.6 |
|
22.1 |
|
139.5 |
|
67.8 |
|
tax |
|
3.4 |
|
— |
|
3.5 |
|
0.6 |
|
net of tax |
|
63.2 |
|
22.1 |
|
136.0 |
|
67.2 |
|
noncontrolling interest |
|
— |
|
— |
|
— |
|
— |
|
net of noncontrolling interest |
|
63.2 |
|
22.1 |
|
136.0 |
|
67.2 |
|
|
|
|
|
|
|
|
|
|
| Non-GAAP net income attributable to
Unisys Corporation |
|
$ 82.8 |
|
$ 34.8 |
|
$ 74.8 |
|
$
117.5 |
|
|
|
|
|
|
|
|
|
|
| Weighted average shares
(thousands) |
|
67,793 |
|
67,170 |
|
67,665 |
|
66,451 |
| Plus incremental shares from assumed
conversion: |
|
|
|
|
|
|
|
|
Employee stock plans |
|
331 |
|
914 |
|
481 |
|
871 |
| Non-GAAP adjusted weighted average
shares |
|
68,124 |
|
68,084 |
|
68,146 |
|
67,322 |
| Diluted earnings (loss) per
share |
|
|
|
|
|
|
|
|
| GAAP basis |
|
|
|
|
|
|
|
|
| GAAP net income (loss) attributable to
Unisys Corporation |
|
$ 8.5 |
|
$ (131.2) |
|
$ (106.0) |
|
$ (448.5) |
| Divided by weighted average
shares |
|
68,124 |
|
67,170 |
|
67,665 |
|
66,451 |
| GAAP diluted earnings (loss)
per share |
|
$ 0.12 |
|
$
(1.95) |
|
$
(1.57) |
|
$
(6.75) |
| Non-GAAP basis |
|
|
|
|
|
|
|
|
| Non-GAAP net income attributable to
Unisys Corporation for diluted earnings per share |
|
$ 82.8 |
|
$ 34.8 |
|
$ 74.8 |
|
$ 117.5 |
| Divided by Non-GAAP adjusted weighted
average shares |
68,124 |
|
68,084 |
|
68,146 |
|
67,322 |
| Non-GAAP diluted earnings per
share |
$ 1.22 |
|
$ 0.51 |
|
$ 1.10 |
|
$ 1.75 |
UNISYS
CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP
(Unaudited)
(Millions) |
|
| FREE CASH
FLOW |
|
|
|
|
Three Months
Ended |
|
Year Ended |
|
|
|
December
31, |
|
December
31, |
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
| Cash provided by
operations |
|
$ 34.9 |
|
$ 68.0 |
|
$ 12.7 |
|
$
132.5 |
| Additions to marketable software |
|
(11.1) |
|
(12.3) |
|
(46.3) |
|
(54.4) |
| Additions to properties |
|
(9.5) |
|
(7.6) |
|
(31.0) |
|
(27.3) |
| Additions to outsourcing assets |
|
(0.5) |
|
(3.8) |
|
(8.6) |
|
(18.5) |
| Free cash flow |
|
13.8 |
|
44.3 |
|
(73.2) |
|
32.3 |
| Postretirement funding |
|
9.8 |
|
12.8 |
|
43.7 |
|
56.4 |
| Cost reduction and other payments |
|
15.7 |
|
15.1 |
|
56.5 |
|
83.5 |
| Adjusted free cash flow |
|
$ 39.3 |
|
$ 72.2 |
|
$ 27.0 |
|
$
172.2 |
UNISYS
CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP
(Unaudited)
(Millions) |
|
| EBITDA |
|
|
|
|
Three Months
Ended |
|
Year Ended |
|
|
|
December
31, |
|
December
31, |
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
| Net income (loss) attributable to
Unisys Corporation |
|
$ 8.5 |
|
$
(131.2) |
|
$
(106.0) |
|
$
(448.5) |
| Net income (loss) attributable to
noncontrolling interests |
|
0.3 |
|
(0.3) |
|
1.1 |
|
(1.3) |
| Interest expense, net of interest
income of $3.7, $2.4, $12.4, $7.8 respectively* |
|
4.1 |
|
6.0 |
|
20.0 |
|
27.6 |
| Provision (benefit) for income
taxes |
|
17.2 |
|
21.9 |
|
42.3 |
|
(11.9) |
| Depreciation |
|
36.6 |
|
24.5 |
|
114.7 |
|
98.5 |
| Amortization |
|
18.4 |
|
22.3 |
|
68.8 |
|
74.9 |
| EBITDA |
|
$ 85.1 |
|
$
(56.8) |
|
$
140.9 |
|
$
(260.7) |
|
|
|
|
|
|
|
|
|
| Postretirement expense |
|
$ 11.2 |
|
$ 144.3 |
|
$ 45.3 |
|
$ 552.0 |
| Cost reduction and other
expenses** |
|
43.6 |
|
16.3 |
|
103.8 |
|
57.3 |
| Non-cash share based expense |
|
4.3 |
|
2.7 |
|
19.0 |
|
14.2 |
| Other expense, net adjustment*** |
|
4.5 |
|
0.5 |
|
16.8 |
|
7.1 |
| Adjusted EBITDA |
|
$
148.7 |
|
$
107.0 |
|
$
325.8 |
|
$
369.9 |
|
|
|
|
|
|
|
|
|
|
| *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 |
|
Year Ended |
|
|
|
December
31, |
|
December
31, |
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
| Revenue |
|
|
$ 557.0 |
|
$ 539.3 |
|
$ 1,979.9 |
|
$ 2,054.4 |
| Net earnings (loss) attributable to
Unisys Corporation as a percentage of revenue |
|
1.5 % |
|
(24.3) % |
|
(5.4) % |
|
(21.8) % |
| Non-GAAP net income attributable to
Unisys Corporation as a percentage of revenue |
|
14.9 % |
|
6.5 % |
|
3.8 % |
|
5.7 % |
| Adjusted EBITDA as a percentage of
revenue |
|
26.7 % |
|
19.8 % |
|
16.5 % |
|
18.0 % |
UNISYS
CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP
(Unaudited)
(Millions) |
|
| OPERATING
PROFIT |
|
|
|
Three Months
Ended |
|
Year Ended |
|
|
December
31, |
|
December
31, |
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
| GAAP operating profit |
|
$
50.0 |
|
$
44.5 |
|
$
52.2 |
|
$ 154.0 |
| Cost reduction and other
expenses* |
|
61.9 |
|
18.0 |
|
104.7 |
|
35.3 |
| Postretirement expense** |
|
0.5 |
|
0.8 |
|
2.1 |
|
3.5 |
| Non-GAAP operating profit |
|
$ 112.4 |
|
$
63.3 |
|
$ 159.0 |
|
$ 192.8 |
|
|
|
|
|
|
|
|
|
| Revenue |
|
$ 557.0 |
|
$ 539.3 |
|
$ 1,979.9 |
|
$ 2,054.4 |
|
|
|
|
|
|
|
|
|
| GAAP operating profit
percent |
|
9.0 % |
|
8.3 % |
|
2.6 % |
|
7.5 % |
| Non-GAAP operating profit
percent |
|
20.2 % |
|
11.7 % |
|
8.0 % |
|
9.4 % |
|
|
|
|
|
|
|
|
|
| *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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contacts: For Investors: Michaela
Pewarski, Unisys, +1 215-274-1254, Investor@unisys.com; For
Press: Patricia Gonzalez, Unisys, +1
817-846-7662, Patricia.Gonzalez@unisys.com
