TIDMUSY
Next-Gen Solutions Drive Strong Growth in Pipeline; Company Reaffirms Full-Year
Guidance
· Revenue decline of 7.4% year over year (YoY), or a decline of 6.3% YoY in
constant currency[(1) ]due to anticipated lower License and Support (L&S)
renewals
· Excluding License and Support (Ex-L&S)[(14)], revenue growth of 4.9% YoY, or
growth of 6.5% in constant currency
· Gross profit margin of 24.3%, down 450 bps, Ex-L&S gross margin of 16.0%, up
560 bps
· Ex-L&S pipeline[(3) ]growth of 22% YoY and 15% quarter over quarter (QoQ)
· Next-Gen Solutions[(7)] pipeline growth of 55% YoY and 25% QoQ
BLUE BELL, Pa., Aug. 1, 2023 -
- Unisys (https://c212.net/c/link/?t=0&l=en&o=3933827
-1&h=84209266&u=https%3A%2F%2Fwww.unisys.com%2F&a=Unisys) (NYSE: UIS) today
reported financial results for the second quarter ended June 30, 2023.
Unisys achieved strong improvement in Ex-L&S revenue and profitability for the
second quarter. Revenue for the quarter declined 7.4% YoY or a decline of 6.3%
YoY in constant currency, and gross profit margin declined 450 bps, principally
due to expected lower software license renewals. Ex-L&S revenue grew 4.9% YoY,
or 6.5% YoY on a constant currency basis and Ex-L&S gross margin expanded 560
bps YoY.
Double-digit pipeline expansion was driven by new logo opportunities, especially
within Next-Gen Solutions, which include Modern Workplace, Digital Platforms &
Applications, Specialized Services & Next-Gen Compute, and Micro-Market
Solutions. Unisys Next-Gen Solutions pipeline increased 55% YoY and 25% QoQ.
"Our second quarter results demonstrate continued improvement in the performance
of our Ex-L&S Solutions," said Unisys Chair and CEO Peter A. Altabef. "These
solutions experienced solid growth and margin expansion during the period. Our
growth was driven by continued demand for our Next-Gen Solutions. These
offerings are leading to new opportunities with existing and prospective clients
who are increasingly viewing Unisys as an innovative solutions partner in
employee experience and digital transformation. Our portfolio of Next-Gen
Solutions, engineering capabilities and technology ecosystem position us to help
transform enterprises and organizations and drive business outcomes using the
full potential of data and AI."
Summary of Second Quarter 2023 Results
Please refer to the accompanying financial tables for a reconciliation of the
GAAP to non-GAAP measures presented except for financial guidance since such a
reconciliation is not practicable without unreasonable effort.
· Revenue:
· Revenue of $476.8M vs. $515.0M in 2Q22, down 7.4% YoY, or down 6.3% YoY in
constant currency, primarily due to lower software license renewals within ECS
· Ex-L&S revenue of $396.0M vs. $377.4M in 2Q22, up 4.9% YoY, or up 6.5% YoY
in constant currency, driven by growth in Digital Workplace Solutions (DWS) and
Specialized Services and Next-Gen Compute solutions within ECS
· Gross Profit:
· Gross profit of $115.8M vs. $148.1M in 2Q22
· Gross profit margin of 24.3% vs. 28.8% in 2Q22, down 450 bps YoY
· Ex-L&S gross margin of 16.0% vs. 10.4% in 2Q22, up 560 bps YoY
· Operating Profit:
· GAAP operating profit of $0.1M vs. $33.7M operating profit in 2Q22
· GAAP operating profit margin of 0.0% vs. 6.5% operating profit margin in
2Q22
· Non-GAAP operating profit[(8)] of $16.3M vs. $46.6M operating profit in
2Q22
· Non-GAAP operating profit margin of 3.4% vs. 9.0% operating profit margin
in 2Q22
· Net Income/Loss:
· GAAP net loss of $40.0M vs. net loss of $17.1M in 2Q22
· Non-GAAP net loss[(10)] of $6.1M vs. net income of $16.2M in 2Q22
· Adjusted EBITDA:
· Adjusted EBITDA[(9)] of $50.3M vs. $90.4M in 2Q22
· Adjusted EBITDA margin of 10.5% vs. 17.6% in 2Q22
· Earnings/Loss Per Share:
· Diluted loss per share of $0.59 vs. diluted loss per share of $0.25 in
2Q22
· Non-GAAP diluted loss per share of $0.09 vs. diluted earnings per share of
$0.24 in 2Q22
· Cash Flow:
· Cash provided by operations was $42.5M vs. cash used of $33.7M in 2Q22
· Free cash flow[(11)] was $24.7M vs. $(59.1)M in 2Q22
· Adjusted free cash flow[(13)] was $68.1M vs. $(38.5)M in 2Q22
· YoY improvement in free cash flow primarily due to the timing of
technology collections in 2023 vs. 2022
· Pipeline, TCV and Backlog:
· Total company pipeline increased 18% YoY and 12% QoQ
· Next-Gen Solutions pipeline increased 55% YoY and 25% QoQ
· TCV[(5)] decreased 20% YoY
· Primarily due to the timing of L&S renewals
· Ex-L&S pipeline increased 22% YoY and 15% QoQ
· Ex-L&S TCV decreased 4%
· Primarily due to lower new logo signings and the timing of renewals
within the year
· Backlog[(2)] was $2.69B vs. $2.79B in 1Q23
· Primarily driven by contract renewal timing
· Balance Sheet:
· As of June 30, 2023, total cash and cash equivalents was $423.2M
2Q23 Financial Highlights by Segment:
Digital Workplace Solutions (DWS):
· Revenue:
· DWS revenue of $135.0M vs. $127.2M in 2Q22, an increase of 6.1% YoY, or an
increase of 7.7% YoY in constant currency, primarily driven by recent contract
signings and additional scope with existing clients
· Gross Margin:
· DWS gross profit margin of 13.6% vs. 13.0% in 2Q22, an increase of 60 bps
YoY
Cloud, Applications & Infrastructure Solutions (CA&I):
· Revenue:
· CA&I revenue $132.6M vs. $130.1M in 2Q22, an increase of 1.9% YoY, or an
increase of 2.6% YoY in constant currency
· Gross Margin:
· CA&I gross profit margin of 16.9% vs. 5.5% in 2Q22, an increase of
1140 bps YoY, primarily driven by additional expenses associated with certain
contracts included in the prior year period as well as delivery improvements in
2Q23
Enterprise Computing Solutions (ECS):
· Revenue:
· ECS revenue of $134.6M vs. $185.8M in 2Q22, a decline of 27.6% YoY, or a
decline of 27.0% YoY in constant currency, due to lower software license
renewals
· Gross Margin:
· ECS gross profit margin was 54.1% vs. 66.2% in 2Q22, a decrease of 1,210
bps YoY, primarily due to lower software license renewals
2023 Financial Guidance
The company reiterates full-year 2023 revenue and profitability guidance.
Constant currency revenue growth is expected to be in the range of (3%) to (7%)
YoY, which assumes Ex-L&S revenue in the range of (1%) to +4% YoY. The company
anticipates that non-GAAP operating profit margin will be in the range of 2% to
4% and adjusted EBITDA margin will be in the range of 9.5% to 11.5%.
Conference Call
Unisys will hold a conference call with the financial community on Wednesday,
August 2, 2023, at 8 a.m. ET to discuss the results.
The live, listen-only webcast, as well as the accompanying presentation
materials, can be accessed on the Unisys Investor Website
at www.unisys.com/investor (https://c212.net/c/link/?t=0&l=en&o=3933827
-1&h=1114066237&u=https%3A%2F%2Fwww.unisys.com%2Finvestor&a=www.unisys.com%2Finve
stor). In addition, domestic callers can dial 1-844-695-5518 and international
callers can dial 1-412-902-6749 and provide the following conference passcode:
Unisys Corporation Call.
A webcast replay will be available on the Unisys Investor Website shortly
following the conference call. A replay will also be available by dialing 1-877
-344-7529 for domestic callers or 1-412-317-0088 for international callers and
entering access code 4842656 from two hours after the end of the call until
August 16, 2023.
[(1)] Constant currency - A significant amount of the company's revenue is
derived from international operations. As a result, the company's revenue has
been and will continue to be affected by changes in the U.S. dollar against
major international currencies. The company refers to revenue growth rates in
constant currency or on a constant currency basis so that the business results
can be viewed without the impact of fluctuations in foreign currency exchange
rates to facilitate comparisons of the company's business performance from one
period to another. Constant currency is calculated by retranslating current and
prior-period revenue at a consistent exchange rate rather than the actual
exchange rates in effect during the respective periods.
[(2) ]Backlog - Represents future revenue associated with contracted work which
has not yet been delivered or performed. Although the company believes this
revenue will be recognized, it may, for commercial reasons, allow the orders to
be canceled, with or without penalty.
[(3) ]Pipeline - Represents qualified prospective sale opportunities for which
bids have been submitted or vetted prospective sales opportunities which are
being actively pursued. There is no assurance that the pipeline will translate
into revenue.
[(4)] Annual Contract Value (ACV) - Represents the revenue expected to be
recognized during the first 12 months following the signing of a contract.
[(5)] Total Contract Value (TCV) - Represents the estimated revenue related to
contracts signed in the period without regard for cancellation terms. New
business TCV represents TCV attributable to new scope for existing clients and
new logo contracts.
[(6)] Book-to-bill - Represents total contract value booked divided by revenue
in a given period.
[(7)] Next-Gen Solutions - Includes our Modern Workplace solutions within DWS,
Digital Platforms and Applications (DP&A) solutions within CA&I, Specialized
Services and Next-Gen Compute (SS&C) solutions within ECS, as well as Micro
-Market solutions.
[(8)] Non-GAAP operating profit - This measure excludes pretax postretirement
expense and pretax charges in connection with cost-reduction activities and
other expenses.
[(9)] EBITDA & adjusted EBITDA - Earnings before interest, taxes, depreciation
and amortization (EBITDA) is calculated by starting with net income (loss)
attributable to Unisys Corporation common shareholders and adding or subtracting
the following items: net income (loss) attributable to noncontrolling interests,
interest expense (net of interest income), provision for (benefit from) income
taxes, depreciation and amortization. Adjusted EBITDA further excludes
postretirement expense and cost-reduction activities and other expenses, non
-cash share-based expense, and other (income) expense adjustments.
[(10)] Non-GAAP net income (loss) and non-GAAP diluted earnings (loss) per
share - These measures excluded postretirement expense and charges in connection
with cost-reduction activities and other expenses. The tax amounts related to
these items for the calculation of non-GAAP diluted earnings (loss) per share
include the current and deferred tax expense and benefits recognized under GAAP
for these items.
[(11)] Free cash flow - Represents cash flow from operations less capital
expenditures.
[(12)] Pre-pension free cash flow - Represents free cash flow before
postretirement contributions
[(13)] Adjusted free cash flow - Represents free cash flow less cash used for
postretirement funding and cost-reduction activities and other payments.
[(14)] Excluding License and Support (Ex-L&S) - These measures exclude revenue,
gross profit and gross profit margin in connection with software license and
support revenue within the company's ECS segment. The company provides these
measures to allow investors to isolate the impact of software license renewals,
which tend to be significant and impactful based on timing, and related support
services in order to evaluate the company's business outside of these areas.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, Section 21E of the Securities
Exchange Act of 1934, as amended, and the Private Securities Litigation Reform
Act of 1995. Unisys cautions readers that the assumptions forming the basis for
forward-looking statements include many factors that are beyond Unisys' ability
to control or estimate precisely, such as estimates of future market conditions,
the behavior of other market participants and that ACV and TCV are based, in
part, on the assumption that each of those contracts will continue for their
full contracted term. Words such as "anticipates," "estimates," "expects,"
"projects," "may," "will," "intends," "plans," "believes," "should" and similar
expressions may identify forward-looking statements and such forward-looking
statements are made based upon management's current expectations, assumptions
and beliefs as of this date concerning future developments and their potential
effect upon Unisys. There can be no assurance that future developments will be
in accordance with management's expectations, assumptions and beliefs or that
the effect of future developments on Unisys will be those anticipated by
management. Forward-looking statements in this release and the accompanying
presentation include, but are not limited to, any projections or expectations of
revenue growth, margin expansion, achievement of operational efficiencies and
savings, future growth of our Next-Gen solutions, ACV and TCV, backlog,
pipeline, book-to-bill, full-year 2023 revenue and profitability guidance,
including constant currency revenue and ex-L&S revenue growth, non-GAAP
operating profit margin and adjusted EBITDA margin, our pension liability and
statements regarding future economic conditions or performance.
Additional information and factors that could cause actual results to differ
materially from Unisys' expectations are contained in Unisys' filings with the
U.S. Securities and Exchange Commission (SEC), including Unisys' Annual Reports
on Form 10-K and subsequent Quarterly Reports on Form 10-Q, recent Current
Reports on Form 8-K, and other SEC filings, which are available at the SEC's web
site, http://www.sec.gov. Information included in this release is representative
as of the date of this release only and while Unisys periodically reassesses
material trends and uncertainties affecting Unisys' results of operations and
financial condition in connection with its preparation of management's
discussion and analysis of results of operations and financial condition
contained in its Quarterly and Annual Reports filed with the SEC, Unisys does
not, by including this statement, assume any obligation to review or revise any
particular forward-looking statement referenced herein in light of future
events.
Non-GAAP Information
This release includes certain non-GAAP financial measures that exclude certain
items such as postretirement expense and cost-reduction activities and other
expenses that the company believes are not indicative of its ongoing operations,
as they may be unusual or non-recurring. The inclusion of such items in
financial measures can make the company's profitability and liquidity results
difficult to compare to prior periods or anticipated future periods and can
distort the visibility of trends associated with the company's ongoing
performance. Management also believes that non-GAAP measures are useful to
investors because they provide supplemental information about the company's
financial performance and liquidity, as well as greater transparency into
management's view and assessment of the company's ongoing operating performance.
Non-GAAP financial measures are often provided and utilized by the company's
management, analysts, and investors to enhance comparability of year-over-year
results and to isolate in some instances the impact of software license
renewals, which tend to be lumpy, and related support services in order to
evaluate the company's business outside of these areas. These items are
uncertain, depend on various factors, and could have a material impact on the
company's GAAP results for the applicable period. These measures should not be
relied upon as substitutes for, or considered in isolation from, measures
calculated in accordance with U.S. GAAP. A reconciliation of these non-GAAP
financial measures to the most directly comparable financial measures calculated
and reported in accordance with GAAP can be found below except for financial
guidance and other forward-looking information since such a reconciliation is
not practicable without unreasonable efforts as the company is unable to
reasonably forecast certain amounts that are necessary for such reconciliation.
This information has been provided pursuant to the requirements of SEC
Regulation G.
About Unisys
Unisys is a global technology solutions company that powers breakthroughs for
the world's leading organizations. Our solutions - digital workplace; cloud,
applications & infrastructure; enterprise computing; and business process - help
our clients challenge the status quo and create new possibilities. To learn how
we deliver breakthroughs for our clients - and have been pushing the possible
for 150 years - visit unisys.com (https://c212.net/c/link/?t=0&l=en&o=3933827
-1&h=4256094400&u=https%3A%2F%2Fwww.unisys.com%2F&a=unisys.com) and follow us
on LinkedIn (https://c212.net/c/link/?t=0&l=en&o=3933827
-1&h=2220519086&u=https%3A%2F%2Fwww.linkedin.com%2Fcompany%2Funisys%2Fabout%2F&a=
LinkedIn). #Unisys150.
RELEASE NO.: 0801/9916
Unisys and other Unisys products and services mentioned herein, as well as their
respective logos, are trademarks or registered trademarks of Unisys Corporation.
Any other brand or product referenced herein is acknowledged to be a trademark
or registered trademark of its respective holder.
UIS-Q
+------------------------++------++------------++------------++------------+
|UNISYS CORPORATION |
|CONSOLIDATED STATEMENTS |
|OF INCOME (LOSS) |
|(Unaudited) |
|(Millions, except per |
|share data) |
+------------------------++------++------------++------------++------------+
| |
+------------------------++------++------------++------------++------------+
| ||Three ||Six Months Ended |
| ||Months ||June 30, |
| ||Ended || |
| ||June || |
| ||30, || |
+------------------------++------++------------++------------++------------+
| ||2023 ||2022 ||2023 ||2022 |
+------------------------++------++------------++------------++------------+
|Revenue || || || || |
+------------------------++------++------------++------------++------------+
|Services ||$ ||$ 400.3 ||$ 820.9 ||$ 792.4 |
| ||417.0 || || || |
+------------------------++------++------------++------------++------------+
|Technology ||59.8 ||114.7 ||172.3 ||169.3 |
+------------------------++------++------------++------------++------------+
| ||476.8 ||515.0 ||993.2 ||961.7 |
+------------------------++------++------------++------------++------------+
|Costs and expenses || || || || |
+------------------------++------++------------++------------++------------+
|Cost of revenue || || || || |
+------------------------++------++------------++------------++------------+
|Services ||323.5 ||322.1 ||639.6 ||643.4 |
+------------------------++------++------------++------------++------------+
|Technology ||37.5 ||44.8 ||78.8 ||82.8 |
+------------------------++------++------------++------------++------------+
| ||361.0 ||366.9 ||718.4 ||726.2 |
+------------------------++------++------------++------------++------------+
|Selling, general and ||110.3 ||109.6 ||213.2 ||214.0 |
|administrative || || || || |
+------------------------++------++------------++------------++------------+
|Research and development||5.4 ||4.8 ||11.6 ||11.3 |
+------------------------++------++------------++------------++------------+
| ||476.7 ||481.3 ||943.2 ||951.5 |
+------------------------++------++------------++------------++------------+
|Operating income ||0.1 ||33.7 ||50.0 ||10.2 |
+------------------------++------++------------++------------++------------+
|Interest expense ||7.5 ||8.3 ||15.1 ||16.7 |
+------------------------++------++------------++------------++------------+
|Other (expense), net ||(16.7)||(21.9) ||(213.6) ||(42.9) |
+------------------------++------++------------++------------++------------+
|(Loss) earnings before ||(24.1)||3.5 ||(178.7) ||(49.4) |
|income taxes || || || || |
+------------------------++------++------------++------------++------------+
|Provision for income ||15.4 ||20.3 ||35.3 ||24.4 |
|taxes || || || || |
+------------------------++------++------------++------------++------------+
|Consolidated net loss ||(39.5)||(16.8) ||(214.0) ||(73.8) |
+------------------------++------++------------++------------++------------+
|Net income attributable ||0.5 ||0.3 ||1.4 ||0.6 |
|to noncontrolling || || || || |
|interests || || || || |
+------------------------++------++------------++------------++------------+
|Net loss attributable to||$ ||$ (17.1)||$ (215.4)||$ (74.4)|
|Unisys Corporation ||(40.0)|| || || |
+------------------------++------++------------++------------++------------+
| || || || || |
+------------------------++------++------------++------------++------------+
|Loss per share || || || || |
|attributable to Unisys || || || || |
|Corporation || || || || |
+------------------------++------++------------++------------++------------+
|Basic ||$ ||$ (0.25)||$ (3.16)||$ (1.10)|
| ||(0.59)|| || || |
+------------------------++------++------------++------------++------------+
|Diluted ||$ ||$ (0.25)||$ (3.16)||$ (1.10)|
| ||(0.59)|| || || |
+------------------------++------++------------++------------++------------+
+--------------++------++------++-----------++-----------++---------------+
|UNISYS |
|CORPORATION |
|SEGMENT RESULTS |
|(Unaudited) |
|(Millions) |
+--------------++------++------++-----------++-----------++---------------+
| |
+--------------++------++------++-----------++-----------++---------------+
| ||Total ||DWS ||CA&I ||ECS ||Other |
+--------------++------++------++-----------++-----------++---------------+
|Three Months || || || || || |
|Ended June 30,|| || || || || |
|2023 || || || || || |
+--------------++------++------++-----------++-----------++---------------+
|Revenue ||$ ||$ ||$ 132.6||$ 134.6||$ 74.6|
| ||476.8 ||135.0 || || || |
+--------------++------++------++-----------++-----------++---------------+
|Gross profit ||24.3 %||13.6 %||16.9 % ||54.1 % || |
|percent || || || || || |
+--------------++------++------++-----------++-----------++---------------+
|Three Months || || || || || |
|Ended June 30,|| || || || || |
|2022 || || || || || |
+--------------++------++------++-----------++-----------++---------------+
|Revenue ||$ ||$ ||$ 130.1||$ 185.8||$ 71.9|
| ||515.0 ||127.2 || || || |
+--------------++------++------++-----------++-----------++---------------+
|Gross profit ||28.8 %||13.0 %||5.5 % ||66.2 % || |
|percent || || || || || |
+--------------++------++------++-----------++-----------++---------------+
+--------------++------++-----------++-----------++-----------++--------------+
| ||Total ||DWS ||CA&I ||ECS ||Other |
+--------------++------++-----------++-----------++-----------++--------------+
|Six Months || || || || || |
|Ended June 30,|| || || || || |
|2023 || || || || || |
+--------------++------++-----------++-----------++-----------++--------------+
|Revenue ||$ ||$ 266.0||$ 258.6||$ 322.8||$ 145.8|
| ||993.2 || || || || |
+--------------++------++-----------++-----------++-----------++--------------+
|Gross profit ||27.7 %||12.8 % ||15.0 % ||61.4 % || |
|percent || || || || || |
+--------------++------++-----------++-----------++-----------++--------------+
|Six Months || || || || || |
|Ended June 30,|| || || || || |
|2022 || || || || || |
+--------------++------++-----------++-----------++-----------++--------------+
|Revenue ||$ ||$ 252.0||$ 259.2||$ 306.4||$ 144.1|
| ||961.7 || || || || |
+--------------++------++-----------++-----------++-----------++--------------+
|Gross profit ||24.5 %||12.9 % ||5.4 % ||60.6 % || |
|percent || || || || || |
+--------------++------++-----------++-----------++-----------++--------------+
+---------------------------+------------------++------------------+
|UNISYS CORPORATION |
|CONSOLIDATED BALANCE |
|SHEETS |
|(Unaudited) |
|(Millions) |
+---------------------------+------------------++------------------+
| |
+---------------------------+------------------++------------------+
| |June 30, 2023 ||December 31, |
| | ||2022 |
+---------------------------+------------------++------------------+
|Assets | || |
+---------------------------+------------------++------------------+
|Current assets: | || |
+---------------------------+------------------++------------------+
|Cash and cash equivalents |$ 423.2||$ 391.8|
+---------------------------+------------------++------------------+
|Accounts receivable, net |377.2 ||402.5 |
+---------------------------+------------------++------------------+
|Contract assets |16.5 ||28.9 |
+---------------------------+------------------++------------------+
|Inventories |21.0 ||14.9 |
+---------------------------+------------------++------------------+
|Prepaid expenses and other |112.6 ||92.3 |
|current assets | || |
+---------------------------+------------------++------------------+
|Total current assets |950.5 ||930.4 |
+---------------------------+------------------++------------------+
|Properties |406.6 ||410.8 |
+---------------------------+------------------++------------------+
|Less-accumulated |332.9 ||334.9 |
|depreciation and | || |
|amortization | || |
+---------------------------+------------------++------------------+
|Properties, net |73.7 ||75.9 |
+---------------------------+------------------++------------------+
|Outsourcing assets, net |46.5 ||66.4 |
+---------------------------+------------------++------------------+
|Marketable software, net |164.6 ||165.1 |
+---------------------------+------------------++------------------+
|Operating lease right-of |38.6 ||42.5 |
|-use assets | || |
+---------------------------+------------------++------------------+
|Prepaid postretirement |120.9 ||119.5 |
|assets | || |
+---------------------------+------------------++------------------+
|Deferred income taxes |112.5 ||118.6 |
+---------------------------+------------------++------------------+
|Goodwill |287.3 ||287.1 |
+---------------------------+------------------++------------------+
|Intangible assets, net |47.5 ||52.4 |
+---------------------------+------------------++------------------+
|Restricted cash |9.0 ||10.9 |
+---------------------------+------------------++------------------+
|Assets held-for-sale |6.4 ||6.4 |
+---------------------------+------------------++------------------+
|Other long-term assets |175.2 ||190.4 |
+---------------------------+------------------++------------------+
|Total assets |$ 2,032.7 ||$ 2,065.6 |
+---------------------------+------------------++------------------+
|Total liabilities and | || |
|equity | || |
+---------------------------+------------------++------------------+
|Current liabilities: | || |
+---------------------------+------------------++------------------+
|Current maturities of long |$ 14.5||$ 17.4|
|-term debt | || |
+---------------------------+------------------++------------------+
|Accounts payable |150.4 ||160.8 |
+---------------------------+------------------++------------------+
|Deferred revenue |219.8 ||200.7 |
+---------------------------+------------------++------------------+
|Other accrued liabilities |256.3 ||271.6 |
+---------------------------+------------------++------------------+
|Total current liabilities |641.0 ||650.5 |
+---------------------------+------------------++------------------+
|Long-term debt |488.5 ||495.7 |
+---------------------------+------------------++------------------+
|Long-term postretirement |683.0 ||714.6 |
|liabilities | || |
+---------------------------+------------------++------------------+
|Long-term deferred revenue |113.0 ||122.3 |
+---------------------------+------------------++------------------+
|Long-term operating lease |24.8 ||29.7 |
|liabilities | || |
+---------------------------+------------------++------------------+
|Other long-term liabilities|33.1 ||31.0 |
+---------------------------+------------------++------------------+
|Commitments and | || |
|contingencies | || |
+---------------------------+------------------++------------------+
|Total Unisys Corporation |11.4 ||(14.7) |
|stockholders' equity | || |
|(deficit) | || |
+---------------------------+------------------++------------------+
|Noncontrolling interests |37.9 ||36.5 |
+---------------------------+------------------++------------------+
|Total equity |49.3 ||21.8 |
+---------------------------+------------------++------------------+
|Total liabilities and |$ 2,032.7 ||$ 2,065.6 |
|equity | || |
+---------------------------+------------------++------------------+
+---------------------------------------------++--------------++---------------+
|UNISYS CORPORATION |
|CONSOLIDATED STATEMENTS OF CASH FLOWS |
|(Unaudited) |
|(Millions) |
+---------------------------------------------++--------------++---------------+
| |
+---------------------------------------------++--------------++---------------+
| ||Six Months Ended |
| ||June 30, |
+---------------------------------------------++--------------++---------------+
| ||2023 ||2022 |
+---------------------------------------------++--------------++---------------+
|Cash flows from operating activities || || |
+---------------------------------------------++--------------++---------------+
|Consolidated net loss ||$ (214.0)||$ (73.8)|
+---------------------------------------------++--------------++---------------+
|Adjustments to reconcile consolidated net || || |
|loss to net cash provided by (used for) || || |
|operating activities: || || |
+---------------------------------------------++--------------++---------------+
|Foreign currency (gains) losses ||(0.5) ||0.4 |
+---------------------------------------------++--------------++---------------+
|Non-cash interest expense ||0.6 ||0.7 |
+---------------------------------------------++--------------++---------------+
|Employee stock compensation ||8.9 ||10.3 |
+---------------------------------------------++--------------++---------------+
|Depreciation and amortization of properties ||13.7 ||19.2 |
+---------------------------------------------++--------------++---------------+
|Depreciation and amortization of outsourcing ||25.1 ||36.0 |
|assets || || |
+---------------------------------------------++--------------++---------------+
|Amortization of marketable software ||24.5 ||29.6 |
+---------------------------------------------++--------------++---------------+
|Amortization of intangible assets ||4.9 ||5.3 |
+---------------------------------------------++--------------++---------------+
|Other non-cash operating activities ||0.4 ||0.2 |
+---------------------------------------------++--------------++---------------+
|Loss on disposal of capital assets ||0.1 ||0.6 |
+---------------------------------------------++--------------++---------------+
|Postretirement contributions ||(31.1) ||(25.1) |
+---------------------------------------------++--------------++---------------+
|Postretirement expense ||203.8 ||22.7 |
+---------------------------------------------++--------------++---------------+
|Deferred income taxes, net ||9.3 ||3.1 |
+---------------------------------------------++--------------++---------------+
|Changes in operating assets and liabilities, || || |
|excluding the effect of acquisitions: || || |
+---------------------------------------------++--------------++---------------+
|Receivables, net and contract assets ||71.0 ||22.7 |
+---------------------------------------------++--------------++---------------+
|Inventories ||(5.7) ||(5.4) |
+---------------------------------------------++--------------++---------------+
|Other assets ||(16.1) ||(9.3) |
+---------------------------------------------++--------------++---------------+
|Accounts payable and current liabilities ||(37.6) ||(108.2) |
+---------------------------------------------++--------------++---------------+
|Other liabilities ||(2.0) ||4.3 |
+---------------------------------------------++--------------++---------------+
|Net cash provided by (used for) operating ||55.3 ||(66.7) |
|activities || || |
+---------------------------------------------++--------------++---------------+
|Cash flows from investing activities || || |
+---------------------------------------------++--------------++---------------+
|Proceeds from investments ||1,485.4 ||1,668.0 |
+---------------------------------------------++--------------++---------------+
|Purchases of investments ||(1,470.4) ||(1,697.6) |
+---------------------------------------------++--------------++---------------+
|Investment in marketable software ||(21.3) ||(23.6) |
+---------------------------------------------++--------------++---------------+
|Capital additions of properties ||(11.9) ||(14.0) |
+---------------------------------------------++--------------++---------------+
|Capital additions of outsourcing assets ||(4.9) ||(6.5) |
+---------------------------------------------++--------------++---------------+
|Purchase of businesses, net of cash acquired ||- ||(0.3) |
+---------------------------------------------++--------------++---------------+
|Other ||(0.4) ||(0.4) |
+---------------------------------------------++--------------++---------------+
|Net cash used for investing activities ||(23.5) ||(74.4) |
+---------------------------------------------++--------------++---------------+
|Cash flows from financing activities || || |
+---------------------------------------------++--------------++---------------+
|Payments of long-term debt ||(10.6) ||(11.2) |
+---------------------------------------------++--------------++---------------+
|Other ||(0.4) ||(3.8) |
+---------------------------------------------++--------------++---------------+
|Net cash used for financing activities ||(11.0) ||(15.0) |
+---------------------------------------------++--------------++---------------+
|Effect of exchange rate changes on cash, cash||8.7 ||(15.2) |
|equivalents and restricted cash || || |
+---------------------------------------------++--------------++---------------+
|Increase (decrease) in cash, cash equivalents||29.5 ||(171.3) |
|and restricted cash || || |
+---------------------------------------------++--------------++---------------+
|Cash, cash equivalents and restricted cash, ||402.7 ||560.6 |
|beginning of period || || |
+---------------------------------------------++--------------++---------------+
|Cash, cash equivalents and restricted cash, ||$ 432.2||$ 389.3 |
|end of period || || |
+---------------------------------------------++--------------++---------------+
+--------------+--------------++-------++-------++-------++------------+
|UNISYS |
|CORPORATION |
|RECONCILIATIONS |
|OF SELECTED GAAP |
|MEASURES TO NON |
|-GAAP MEASURES |
|(Unaudited) |
|(Millions, except |
|per share data) |
+--------------+--------------++-------++-------++-------++------------+
| |
+--------------+--------------++-------++-------++-------++------------+
| | ||Three ||Six |
| | ||Months ||Months |
| | ||Ended ||Ended |
+--------------+--------------++-------++-------++-------++------------+
| | ||June ||June |
| | ||30, ||30, |
+--------------+--------------++-------++-------++-------++------------+
| | ||2023 ||2022 ||2023 ||2022 |
+--------------+--------------++-------++-------++-------++------------+
|GAAP net loss ||$ ||$ ||$ ||$ (74.4)|
|attributable to ||(40.0) ||(17.1) ||(215.4)|| |
|Unisys || || || || |
|Corporation || || || || |
+--------------+--------------++-------++-------++-------++------------+
| | || || || || |
+--------------+--------------++-------++-------++-------++------------+
|Postretirement|pretax ||10.6 ||12.5 ||203.8 ||22.7 |
|expense: | || || || || |
+--------------+--------------++-------++-------++-------++------------+
| |tax ||(0.2) ||- ||(0.4) ||0.2 |
+--------------+--------------++-------++-------++-------++------------+
| |net of tax ||10.8 ||12.5 ||204.2 ||22.5 |
+--------------+--------------++-------++-------++-------++------------+
| | || || || || |
+--------------+--------------++-------++-------++-------++------------+
|Cost reduction|pretax ||23.4 ||20.8 ||40.1 ||40.9 |
|and other | || || || || |
|expenses: | || || || || |
+--------------+--------------++-------++-------++-------++------------+
| |tax ||0.3 ||- ||0.3 ||0.1 |
+--------------+--------------++-------++-------++-------++------------+
| |net of tax ||23.1 ||20.8 ||39.8 ||40.8 |
+--------------+--------------++-------++-------++-------++------------+
| |noncontrolling||- ||- ||- ||- |
| |interest || || || || |
+--------------+--------------++-------++-------++-------++------------+
| |net of ||23.1 ||20.8 ||39.8 ||40.8 |
| |noncontrolling|| || || || |
| |interest || || || || |
+--------------+--------------++-------++-------++-------++------------+
| | || || || || |
+--------------+--------------++-------++-------++-------++------------+
|Non-GAAP net ||$ ||$ ||$ ||$ (11.1)|
|(loss) income ||(6.1) ||16.2 ||28.6 || |
|attributable to || || || || |
|Unisys || || || || |
|Corporation || || || || |
+--------------+--------------++-------++-------++-------++------------+
| | || || || || |
+--------------+--------------++-------++-------++-------++------------+
|Weighted average ||68,289 ||67,694 ||68,116 ||67,541 |
|shares || || || || |
|(thousands) || || || || |
+--------------+--------------++-------++-------++-------++------------+
|Plus incremental | || || || |
|shares from | || || || |
|assumed | || || || |
|conversion: | || || || |
+--------------+--------------++-------++-------++-------++------------+
| |Employee stock||- ||418 ||646 ||- |
| |plans || || || || |
+--------------+--------------++-------++-------++-------++------------+
|Non-GAAP adjusted ||68,289 ||68,112 ||68,762 ||67,541 |
|weighted average || || || || |
|shares || || || || |
+--------------+--------------++-------++-------++-------++------------+
| | || || || || |
+--------------+--------------++-------++-------++-------++------------+
|Diluted earnings || || || || |
|(loss) per share || || || || |
+--------------+--------------++-------++-------++-------++------------+
|GAAP basis || || || || |
+--------------+--------------++-------++-------++-------++------------+
|GAAP net loss ||$ ||$ ||$ ||$ (74.4)|
|attributable to ||(40.0) ||(17.1) ||(215.4)|| |
|Unisys || || || || |
|Corporation for || || || || |
|diluted loss || || || || |
|per share || || || || |
+--------------+--------------++-------++-------++-------++------------+
|Divided by ||68,289 ||67,694 ||68,116 ||67,541 |
|weighted average || || || || |
|shares || || || || |
+--------------+--------------++-------++-------++-------++------------+
|GAAP diluted loss ||$ ||$ ||$ ||$ (1.10)|
|per share ||(0.59) ||(0.25) ||(3.16) || |
+--------------+--------------++-------++-------++-------++------------+
| | || || || || |
+--------------+--------------++-------++-------++-------++------------+
|Non-GAAP basis || || || || |
+--------------+--------------++-------++-------++-------++------------+
|Non-GAAP net ||$ ||$ ||$ ||$ (11.1)|
|(loss) income ||(6.1) ||16.2 ||28.6 || |
|attributable to || || || || |
|Unisys || || || || |
|Corporation || || || || |
|for diluted || || || || |
|(loss) earnings || || || || |
|per share || || || || |
+--------------+--------------++-------++-------++-------++------------+
|Divided by Non |68,289 ||68,112 ||68,762 ||67,541 |
|-GAAP adjusted | || || || |
|weighted average | || || || |
|shares | || || || |
+--------------+--------------++-------++-------++-------++------------+
|Non-GAAP diluted |$ ||$ ||$ ||$ (0.16)|
|(loss) earnings |(0.09) ||0.24 ||0.42 || |
|per share | || || || |
+--------------+--------------++-------++-------++-------++------------+
++-------------++-------++------++-------++------------+
|UNISYS |
|CORPORATION |
|RECONCILIATIONS |
|OF GAAP TO NON |
|-GAAP |
|(Unaudited) |
|(Millions) |
++-------------++-------++------++-------++------------+
|FREE CASH FLOW |
++-------------++-------++------++-------++------------+
| |
++-------------++-------++------++-------++------------+
|| ||Three ||Six |
|| ||Months ||Months |
|| ||Ended ||Ended |
++-------------++-------++------++-------++------------+
|| ||June ||June |
|| ||30, ||30, |
++-------------++-------++------++-------++------------+
|| ||2023 ||2022 ||2023 ||2022 |
++-------------++-------++------++-------++------------+
|Cash provided ||$ ||$ ||$ ||$ (66.7)|
|by (used for) ||42.5 ||(33.7)||55.3 || |
|operations || || || || |
++-------------++-------++------++-------++------------+
|Additions to ||(11.0) ||(12.5)||(21.3) ||(23.6) |
|marketable || || || || |
|software || || || || |
++-------------++-------++------++-------++------------+
|Additions to ||(4.6) ||(8.8) ||(11.9) ||(14.0) |
|properties || || || || |
++-------------++-------++------++-------++------------+
|Additions to ||(2.2) ||(4.1) ||(4.9) ||(6.5) |
|outsourcing || || || || |
|assets || || || || |
++-------------++-------++------++-------++------------+
|Free cash flow||24.7 ||(59.1)||17.2 ||(110.8) |
++-------------++-------++------++-------++------------+
|Postretirement||14.7 ||8.9 ||31.1 ||25.1 |
|funding || || || || |
++-------------++-------++------++-------++------------+
|Pre-pension ||39.4 ||(50.2)||48.3 ||(85.7) |
|free cash flow|| || || || |
++-------------++-------++------++-------++------------+
|Cost reduction||28.7 ||11.7 ||39.9 ||20.3 |
|and other || || || || |
|payments, net || || || || |
++-------------++-------++------++-------++------------+
|Adjusted free ||$ ||$ ||$ ||$ (65.4)|
|cash flow ||68.1 ||(38.5)||88.2 || |
++-------------++-------++------++-------++------------+
++--------------++---------++-------++-------++-------+
|UNISYS |
|CORPORATION |
|RECONCILIATIONS |
|OF GAAP TO NON |
|-GAAP |
|(Unaudited) |
|(Millions) |
++--------------++---------++-------++-------++-------+
| |
++--------------++---------++-------++-------++-------+
|EBITDA |
++--------------++---------++-------++-------++-------+
| |
++--------------++---------++-------++-------++-------+
|| ||Three ||Six |
|| ||Months ||Months |
|| ||Ended ||Ended |
++--------------++---------++-------++-------++-------+
|| ||June 30, ||June |
|| || ||30, |
++--------------++---------++-------++-------++-------+
|| ||2023 ||2022 ||2023 ||2022 |
++--------------++---------++-------++-------++-------+
|Net loss ||$ ||$ ||$ ||$ |
|attributable to||(40.0) ||(17.1) ||(215.4)||(74.4) |
|Unisys || || || || |
|Corporation || || || || |
++--------------++---------++-------++-------++-------+
|Net income ||0.5 ||0.3 ||1.4 ||0.6 |
|attributable to|| || || || |
|noncontrolling || || || || |
|interests || || || || |
++--------------++---------++-------++-------++-------+
|Interest ||1.0 ||4.9 ||1.9 ||10.9 |
|expense, net of|| || || || |
|interest income|| || || || |
|of $6.5, $3.4, || || || || |
|$13.2 and $5.8,|| || || || |
|respectively* || || || || |
++--------------++---------++-------++-------++-------+
|Provision for ||15.4 ||20.3 ||35.3 ||24.4 |
|income taxes || || || || |
++--------------++---------++-------++-------++-------+
|Depreciation ||17.4 ||26.5 ||38.8 ||55.2 |
++--------------++---------++-------++-------++-------+
|Amortization ||14.9 ||16.7 ||29.4 ||34.9 |
++--------------++---------++-------++-------++-------+
|EBITDA ||$ ||$ ||$ ||$ |
| ||9.2 ||51.6 ||(108.6)||51.6 |
++--------------++---------++-------++-------++-------+
| || || || || |
++--------------++---------++-------++-------++-------+
|Postretirement ||$ ||$ ||$ ||$ |
|expense ||10.6 ||12.5 ||203.8 ||22.7 |
++--------------++---------++-------++-------++-------+
|Cost reduction ||21.0 ||17.9 ||35.3 ||32.9 |
|and other || || || || |
|expenses** || || || || |
++--------------++---------++-------++-------++-------+
|Non-cash share ||4.1 ||3.5 ||8.7 ||10.0 |
|based expense || || || || |
++--------------++---------++-------++-------++-------+
|Other expense, ||5.4 ||4.9 ||9.3 ||7.4 |
|net || || || || |
|adjustment*** || || || || |
++--------------++---------++-------++-------++-------+
|Adjusted EBITDA||$ ||$ ||$ ||$ |
| ||50.3 ||90.4 ||148.5 ||124.6 |
++--------------++---------++-------++-------++-------+
|| || || || || |
++--------------++---------++-------++-------++-------+
|*Included in |
|other |
|(expense), net |
|on the |
|consolidated |
|statements of |
|income (loss) |
++--------------++---------++-------++-------++-------+
|**Reduced for |
|depreciation |
|and |
|amortization |
|included above |
++--------------++---------++-------++-------++-------+
|***Other |
|expense, net as |
|reported on the |
|consolidated |
|statements of |
|income (loss) |
|less |
|postretirement |
|expense, |
|interest income |
|and |
|items included |
|in cost |
|reduction and |
|other expenses |
++--------------++---------++-------++-------++-------+
+-------+----+-------++-------++--------++-------+
| | |Three ||Six |
| | |Months ||Months |
| | |Ended ||Ended |
+-------+----+-------++-------++--------++-------+
| | |June ||June 30, |
| | |30, || |
+-------+----+-------++-------++--------++-------+
| | |2023 ||2022 ||2023 ||2022 |
+-------+----+-------++-------++--------++-------+
|Revenue| |$ 476.8||$ 515.0||$ 993.2 ||$ 961.7|
+-------+----+-------++-------++--------++-------+
|Net loss |(8.4) %||(3.3) %||(21.7) %||(7.7) %|
|attributable| || || || |
|to Unisys | || || || |
|Corporation | || || || |
|as a | || || || |
|percentage | || || || |
|of revenue | || || || |
+-------+----+-------++-------++--------++-------+
|Non-GAAP net|(1.3) %||3.1 % ||2.9 % ||(1.2) %|
|(loss) | || || || |
|income | || || || |
|attributable| || || || |
|to Unisys | || || || |
|Corporation | || || || |
|as | || || || |
|a percentage| || || || |
|of revenue | || || || |
+-------+----+-------++-------++--------++-------+
|Adjusted |10.5 % ||17.6 % ||15.0 % ||13.0 % |
|EBITDA as a | || || || |
|percentage | || || || |
|of revenue | || || || |
+-------+----+-------++-------++--------++-------+
+----------------++-------++------++-------++--------+
|UNISYS |
|CORPORATION |
|RECONCILIATIONS |
|OF GAAP TO NON |
|-GAAP |
|(Unaudited) |
|(Millions) |
+----------------++-------++------++-------++--------+
| |
+----------------++-------++------++-------++--------+
|OPERATING PROFIT |
+----------------++-------++------++-------++--------+
| |
+----------------++-------++------++-------++--------+
| ||Three ||Six |
| ||Months ||Months |
| ||Ended ||Ended |
+----------------++-------++------++-------++--------+
| ||June ||June |
| ||30, ||30, |
+----------------++-------++------++-------++--------+
| ||2023 ||2022 ||2023 ||2022 |
+----------------++-------++------++-------++--------+
|GAAP operating ||$ ||$ ||$ ||$ 10.2|
|profit ||0.1 ||33.7 ||50.0 || |
+----------------++-------++------++-------++--------+
|Cost reduction ||15.8 ||12.3 ||25.7 ||21.2 |
|and other || || || || |
|expenses* || || || || |
+----------------++-------++------++-------++--------+
|Postretirement ||0.4 ||0.6 ||0.7 ||1.1 |
|expense** || || || || |
+----------------++-------++------++-------++--------+
|Non-GAAP ||$ ||$ ||$ ||$ 32.5|
|operating profit||16.3 ||46.6 ||76.4 || |
+----------------++-------++------++-------++--------+
| || || || || |
+----------------++-------++------++-------++--------+
|Revenue ||$ 476.8||$ 515.||$ 993.2||$ 961.7 |
| || ||0 || || |
+----------------++-------++------++-------++--------+
| || || || || |
+----------------++-------++------++-------++--------+
|GAAP operating ||0.0 % ||6.5 % ||5.0 % ||1.1 % |
|profit percent || || || || |
+----------------++-------++------++-------++--------+
|Non-GAAP ||3.4 % ||9.0 % ||7.7 % ||3.4 % |
|operating profit|| || || || |
|percent || || || || |
+----------------++-------++------++-------++--------+
| || || || || |
+----------------++-------++------++-------++--------+
|*Included in cost |
|of revenue, |
|selling, general |
|and |
|administrative |
|and research and |
|development on |
|the consolidated |
|statements |
|of income (loss) |
+----------------++-------++------++-------++--------+
|**Included in |
|selling, general |
|and |
|administrative on |
|the consolidated |
|statements of |
|income (loss) |
+----------------++-------++------++-------++--------+
+------------------------------------++---------++---------++--------++--------
-+
|EXCLUDING LICENSE AND SUPPORT (EX-L&S) REVENUE AND GROSS PROFIT
|
+------------------------------------++---------++---------++--------++--------
-+
| |
+------------------------------------++---------++---------++--------++--------
-+
| ||Three Months Ended ||Six Months Ended
|
+------------------------------------++---------++---------++--------++--------
-+
| ||June 30, ||June 30,
|
+------------------------------------++---------++---------++--------++--------
-+
| ||2023 ||2022 ||2023 ||2022
|
+------------------------------------++---------++---------++--------++--------
-+
|GAAP revenue ||$ 476.8 ||$ 515.0 ||$ 993.2||$ 961.7
|
+------------------------------------++---------++---------++--------++--------
-+
|L&S revenue ||80.8 ||137.6 ||217.7 ||211.0
|
+------------------------------------++---------++---------++--------++--------
-+
|Ex-L&S Non-GAAP revenue ||$ 396.0 ||$ 377.4 ||$ 775.5||$ 750.7
|
+------------------------------------++---------++---------++--------++--------
-+
| || || || ||
|
+------------------------------------++---------++---------++--------++--------
-+
|GAAP gross profit ||$ 115.8 ||$ 148.1 ||$ 274.8||$ 235.5
|
+------------------------------------++---------++---------++--------++--------
-+
|L&S gross profit ||52.4 ||108.8 ||158.9 ||156.2
|
+------------------------------------++---------++---------++--------++--------
-+
|Ex-L&S Non-GAAP gross profit ||$ 63.4||$ 39.3||$ 115.9||$
79.3|
+------------------------------------++---------++---------++--------++--------
-+
| || || || ||
|
+------------------------------------++---------++---------++--------++--------
-+
|GAAP gross profit percent ||24.3 % ||28.8 % ||27.7 % ||24.5 %
|
+------------------------------------++---------++---------++--------++--------
-+
|Ex-L&S Non-GAAP gross profit percent||16.0 % ||10.4 % ||14.9 % ||10.6 %
|
+------------------------------------++---------++---------++--------++--------
-+
CONTACT: 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
This information was brought to you by Cision http://news.cision.com
END
(END) Dow Jones Newswires
August 02, 2023 02:00 ET (06:00 GMT)
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