TIDMUSY
Unisys Announces 3Q23 Results
Company Raises Full-Year Guidance for Revenue Growth and Profitability
· Revenue up 0.7% year over year (YoY), or a decline of 1.4% YoY in constant
currency[(1)]
· Excluding License and Support (Ex-L&S)[(14)], revenue growth of 6.2% YoY, or
growth of 4.1% in constant currency
· Ex-L&S pipeline[(3) ]growth of 18% YoY, Next-Gen Solutions[(6)] pipeline
growth of 50% YoY
· Unisys raises full-year guidance for 2023; now expects constant currency
revenue growth of 0% to 1.5%, non-GAAP operating profit[(7)] margin of 5.0% to
6.0% and adjusted EBITDA[(8)] margin of 12.5% to 13.5%
BLUE BELL, Pa., Nov. 7, 2023 -- Unisys (NYSE: UIS) today reported financial
results for the third quarter ended September 30, 2023.
Unisys reported another solid quarter of results. Total revenue grew 0.7% YoY or
a decline of 1.4% in constant currency. Ex-L&S revenue increased by 6.2% YoY, or
4.1% in constant currency and License and Support (L&S)[(13)] revenue was better
than expected due to increased client consumption levels. Ex-L&S solutions
pipeline TCV is 18% higher than a year ago, driven by a 50% increase in Next-Gen
Solutions pipeline.
During the quarter, Unisys unveiled its new quantum-powered solution - Unisys
Logistics Optimization[TM] - that leverages quantum computing, advanced
analytics, and proprietary pre-trained artificial intelligence models to solve
complex logistics optimization challenges in seconds. This cutting-edge solution
enables faster and smarter business decisions that help airlines, freight
forwarders, and ground handlers by giving them an optimal plan for packing,
storing and routing shipments across multiple vehicles more efficiently and cost
effectively.
"We are raising our 2023 guidance ranges based on another solid quarter of
revenue and profit results. We saw increased activity with existing clients in
both Digital Workplace Solutions and Cloud, Applications & Infrastructure
Solutions segments and our License and Support solutions saw increased
consumption levels. Our pipeline is robust, with a significant portion of Next
-Gen Solutions opportunities such as applications, cloud, data and artificial
intelligence, and employee experience. We are also excited by the initial market
reception to our new Unisys Logistics Optimization solution, which we believe
has the potential to advance cargo logistics," said Unisys Chair and CEO Peter
A. Altabef.
Summary of Third 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 $464.6M vs. $461.2M in 3Q22, up 0.7% YoY, or down 1.4% YoY in
constant currency
· Ex-L&S revenue of $397.5M vs. $374.3M in 3Q22, up 6.2% YoY, or up 4.1% YoY
in constant currency, driven by expansion and new scope with existing clients
· Gross Profit:
· Gross profit of $95.3M vs. $104.3M in 3Q22
· Gross profit margin of 20.5% vs. 22.6% in 3Q22, down 210 bps YoY,
primarily due to lower software license renewals, as expected
· Ex-L&S gross profit margin of 14.0% vs. 11.7% in 3Q22, up 230 bps YoY,
primarily driven by additional expenses associated with a contract included in
the prior year period and delivery improvements
· Operating Profit:
· GAAP operating loss of $17.1M vs. $8.0M operating loss in 3Q22
· GAAP operating loss margin of 3.7% vs. 1.7% operating loss margin in 3Q22
· Non-GAAP operating profit of $0.4M vs. $14.1M operating profit in 3Q22
· Non-GAAP operating profit margin of 0.1% vs. 3.1% operating profit margin
in 3Q22
· Net Income/Loss:
· GAAP net loss of $50.0M vs. net loss of $40.1M in 3Q22
· Non-GAAP net loss[(9)] of $22.3M vs. net income of $3.1M in 3Q22
· Adjusted EBITDA:
· Adjusted EBITDA of $37.0M vs. $52.5M in 3Q22
· Adjusted EBITDA margin of 8.0% vs. 11.4% in 3Q22
· Earnings/Loss Per Share:
· Diluted loss per share of $0.73 vs. diluted loss per share of $0.59 in
3Q22
· Non-GAAP diluted loss per share of $0.33 vs. diluted earnings per share of
$0.05 in 3Q22
· Cash Flow:
· Cash used for operations was $4.1M vs. cash provided by $44.5M in 3Q22
· Free cash flow[(10)] was $(25.7)M vs. $23.8M in 3Q22
· Adjusted free cash flow[(12)] was $1.4M vs. $53.1M in 3Q22
· Prior year period benefited from the timing of L&S technology collections
· Pipeline, TCV and Backlog:
· Total company pipeline increased 11% YoY and decreased (5%) quarter over
quarter (QoQ)
· Increase in YoY primarily due to new logo opportunities
· Next-Gen Solutions pipeline increased 50% YoY and decreased (8%) QoQ
· TCV[(4)] decreased (47%) YoY and (31%) QoQ primarily due to the timing of
contract renewals in Ex-L&S
· The company expects strong sequential growth in TCV for the fourth
quarter of 2023, renewals signed in October 2023 exceed total 3Q23 TCV.
· Ex-L&S pipeline increased 18% YoY and decreased (6%) QoQ
· Increase in YoY driven by 68% growth in Ex-L&S new logo pipeline, the
majority of which are Next-Gen Solutions opportunities
· Ex-L&S TCV decreased (46%) YoY and (30%) QoQ primarily due to the timing
of contract renewals
· Backlog[(2)] was $2.38B vs. $2.69B in 2Q23 primarily driven by contract
renewal timing
· Balance Sheet:
· As of September 30, 2023, total cash and cash equivalents was $385.0M vs.
$391.8M as of December 31, 2022
3Q23 Financial Highlights by Segment:
Digital Workplace Solutions (DWS):
· Revenue:
· DWS revenue of $140.9M vs. $130.1M in 3Q22, an increase of 8.3% YoY, or an
increase of 6.2% YoY in constant currency, primarily driven by additional scope
with existing clients
· Gross Margin:
· DWS gross profit margin of 14.8% vs. 15.1% in 3Q22, a decrease of 30 bps
YoY
Cloud, Applications & Infrastructure Solutions (CA&I):
· Revenue:
· CA&I revenue $133.5M vs. $122.3M in 3Q22, an increase of 9.2% YoY, or an
increase of 8.7% YoY in constant currency, in part due to new scope with
existing clients
· Gross Margin:
· CA&I gross profit margin of 15.3% vs. 5.6% in 3Q22, an increase of 970 bps
YoY, primarily driven by additional expenses associated with a contract included
in the prior year period as well as delivery improvements in 3Q23
Enterprise Computing Solutions (ECS):
· Revenue:
· ECS revenue of $122.2M vs. $137.7M in 3Q22, a decline of 11.3% YoY, or a
decline of 14.2% YoY in constant currency, due to lower software license
renewals
· Gross Margin:
· ECS gross profit margin was 50.2% vs. 58.7% in 3Q22, a decrease of 850 bps
YoY, primarily due to lower software license renewals
2023 Financial Guidance
The company raises full-year 2023 revenue growth and profitability guidance:
Revised Prior Issued Guidance
Guidance
Revenue in 0% to (7.0)% to (3.0)%
constant 1.5%
currency*
Non-GAAP 5.0% to 2.0% to 4.0%
operating profit 6.0%
margin
Adjusted EBITDA 12.5% to 9.5% to 11.5%
margin 13.5%
*Revised
guidance assumes
Ex-L&S growth of
3.0% to 4.5% and
approximately
$420 million of
L&S revenue
compared to
prior
guidance, which
assumed Ex-L&S
growth of (1.0)%
to 4.0% and
approximately
$350 million of
L&S revenue.
Conference Call
Unisys will hold a conference call with the financial community on Tuesday,
November 7, 2023, at 8 a.m. ET to discuss the results.
The live, listen-only webcast, as well as the accompanying presentation
materials, can be accessed on the Unisys Investor Website at
www.unisys.com/investor. In addition, domestic callers can dial 1-844-695-5518
and international callers can dial 1-412-902-6749 and provide the following
conference passcode: Unisys Corporation Call.
A webcast replay will be available on the Unisys Investor Website shortly
following the conference call. A replay will also be available by dialing 1-877
-344-7529 for domestic callers or 1-412-317-0088 for international callers and
entering access code 5366968 from two hours after the end of the call until
November 20, 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)] 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.
[(5)] Book-to-bill - Represents total contract value booked divided by revenue
in a given period.
[(6)] 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. The company uses estimated Next-Gen Solutions metrics to
provide insight into the company's progress in shifting the revenue mix towards
solutions that are generally higher-growth and higher-margin.
[(7)] Non-GAAP operating profit - This measure excludes pretax postretirement
expense and pretax charges in connection with cost-reduction activities and
other expenses.
[(8)] 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.
[(9)] 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.
[(10)] Free cash flow - Represents cash flow from operations less capital
expenditures.
[(11)] Pre-pension free cash flow - Represents free cash flow before
postretirement contributions
[(12)] Adjusted free cash flow - Represents free cash flow less cash used for
postretirement funding and cost-reduction activities and other payments.
[(13)] License and Support (L&S) - Represents software license and related
support revenue within the company's ECS segment.
[(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 TCV is 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, TCV, backlog, pipeline, book-to-bill, full-year 2023
revenue growth and profitability guidance, including constant currency revenue,
non-GAAP operating profit margin and adjusted EBITDA margin, our pension
liability and statements regarding future economic conditions or performance.
Additional information and factors that could cause actual results to differ
materially from Unisys' expectations are contained in Unisys' filings with the
U.S. Securities and Exchange Commission (SEC), including Unisys' Annual Reports
on Form 10-K and subsequent Quarterly Reports on Form 10-Q, recent Current
Reports on Form 8-K, and other SEC filings, which are available at the SEC's web
site, http://www.sec.gov. Information included in this release is representative
as of the date of this release only and while Unisys periodically reassesses
material trends and uncertainties affecting Unisys' results of operations and
financial condition in connection with its preparation of management's
discussion and analysis of results of operations and financial condition
contained in its Quarterly and Annual Reports filed with the SEC, Unisys does
not, by including this statement, assume any obligation to review or revise any
particular forward-looking statement referenced herein in light of future
events.
Non-GAAP Information
This release includes certain non-GAAP financial measures that exclude certain
items such as postretirement expense and cost-reduction activities and other
expenses that the company believes are not indicative of its ongoing operations,
as they may be unusual or non-recurring. The inclusion of such items in
financial measures can make the company's profitability and liquidity results
difficult to compare to prior periods or anticipated future periods and can
distort the visibility of trends associated with the company's ongoing
performance. Management also believes that non-GAAP measures are useful to
investors because they provide supplemental information about the company's
financial performance and liquidity, as well as greater transparency into
management's view and assessment of the company's ongoing operating performance.
Non-GAAP financial measures are often provided and utilized by the company's
management, analysts, and investors to enhance comparability of year-over-year
results and to isolate in some instances the impact of software license
renewals, which tend to be lumpy, and related support services in order to
evaluate the company's business outside of these areas. These items are
uncertain, depend on various factors, and could have a material impact on the
company's GAAP results for the applicable period. These measures should not be
relied upon as substitutes for, or considered in isolation from, measures
calculated in accordance with U.S. GAAP. A reconciliation of these non-GAAP
financial measures to the most directly comparable financial measures calculated
and reported in accordance with GAAP can be found below except for financial
guidance and other forward-looking information since such a reconciliation is
not practicable without unreasonable efforts as the company is unable to
reasonably forecast certain amounts that are necessary for such reconciliation.
This information has been provided pursuant to the requirements of SEC
Regulation G.
About Unisys
Unisys is a global technology solutions company that powers breakthroughs for
the world's leading organizations. Our solutions - digital workplace; cloud,
applications & infrastructure; enterprise computing; and business process - help
our clients challenge the status quo and create new possibilities. To learn how
we deliver breakthroughs for our clients - and have been pushing the possible
for 150 years - visit unisys.com and follow us on LinkedIn.
RELEASE NO.: 1106/9929
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 Nine
Months Months
Ended Ended
September September
30, 30,
2023 2022 2023 2022
Revenue
Services $ $ $ $ 1,187.6
415.2 395.2 1,236.1
Technology 49.4 66.0 221.7 235.3
464.6 461.2 1,457.8 1,422.9
Costs and expenses
Cost of revenue
Services 324.0 318.2 963.6 961.6
Technology 45.3 38.7 124.1 121.5
369.3 356.9 1,087.7 1,083.1
Selling, general and 108.1 106.3 321.3 320.3
administrative
Research and development 4.3 6.0 15.9 17.3
481.7 469.2 1,424.9 1,420.7
Operating (loss) income (17.1) (8.0) 32.9 2.2
Interest expense 7.8 7.9 22.9 24.6
Other (expense), net (3.6) (23.3) (217.2) (66.2)
Loss before income taxes (28.5) (39.2) (207.2) (88.6)
Provision for income 20.4 0.7 55.7 25.1
taxes
Consolidated net loss (48.9) (39.9) (262.9) (113.7)
Net income attributable 1.1 0.2 2.5 0.8
to noncontrolling
interests
Net loss attributable to $ $ $ $ (114.5)
Unisys Corporation (50.0) (40.1) (265.4)
Loss per share
attributable to Unisys
Corporation
Basic $ $ $ $ (1.69)
(0.73) (0.59) (3.89)
Diluted $ $ $ $ (1.69)
(0.73) (0.59) (3.89)
UNISYS CORPORATION
SEGMENT RESULTS
(Unaudited)
(Millions)
Total DWS CA&I ECS Other
Three Months Ended
September 30, 2023
Revenue $ $ $ $ $ 68.0
464.6 140.9 133.5 122.2
Gross profit 20.5 % 14.8 % 15.3 % 50.2 %
percent
Three Months Ended
September 30, 2022
Revenue $ $ $ $ $ 71.1
461.2 130.1 122.3 137.7
Gross profit 22.6 % 15.1 % 5.6 % 58.7 %
percent
Total DWS CA&I ECS Other
Nine Months Ended
September 30, 2023
Revenue $ $ $ $ $ 213.8
1,457.8 406.9 392.1 445.0
Gross profit 25.4 % 13.5 % 15.1 % 58.4 %
percent
Nine Months Ended
September 30, 2022
Revenue $ $ $ $ $ 215.2
1,422.9 382.1 381.5 444.1
Gross profit 23.9 % 13.7 % 5.5 % 60.0 %
percent
UNISYS CORPORATION
CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(Millions)
September 30, December 31,
2023 2022
Assets
Current assets:
Cash and cash $ 385.0 $ 391.8
equivalents
Accounts receivable, 388.3 402.5
net
Contract assets 14.7 28.9
Inventories 15.6 14.9
Prepaid expenses and 88.1 92.3
other current assets
Total current assets 891.7 930.4
Properties 401.5 410.8
Less-accumulated 330.6 334.9
depreciation and
amortization
Properties, net 70.9 75.9
Outsourcing assets, net 39.6 66.4
Marketable software, 164.2 165.1
net
Operating lease right 32.6 42.5
-of-use assets
Prepaid postretirement 121.8 119.5
assets
Deferred income taxes 102.7 118.6
Goodwill 287.1 287.1
Intangible assets, net 45.1 52.4
Restricted cash 8.9 10.9
Assets held-for-sale 6.4 6.4
Other long-term assets 199.9 190.4
Total assets $ 1,970.9 $ 2,065.6
Total liabilities and
equity
Current liabilities:
Current maturities of $ 12.7 $ 17.4
long-term debt
Accounts payable 140.1 160.8
Deferred revenue 202.0 200.7
Other accrued 285.0 271.6
liabilities
Total current 639.8 650.5
liabilities
Long-term debt 487.0 495.7
Long-term 661.6 714.6
postretirement
liabilities
Long-term deferred 102.0 122.3
revenue
Long-term operating 19.8 29.7
lease liabilities
Other long-term 54.5 31.0
liabilities
Commitments and
contingencies
Total Unisys (32.4) (14.7)
Corporation
stockholders' deficit
Noncontrolling 38.6 36.5
interests
Total equity 6.2 21.8
Total liabilities and $ 1,970.9 $ 2,065.6
equity
UNISYS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Millions)
Nine Months Ended
September 30,
2023 2022
Cash flows from operating activities
Consolidated net loss $ (262.9) $ (113.7)
Adjustments to reconcile consolidated net
loss to net cash provided by (used for)
operating activities:
Foreign currency (gains) losses (2.1) 6.3
Non-cash interest expense 0.9 1.0
Employee stock compensation 12.9 15.2
Depreciation and amortization of 20.9 29.3
properties
Depreciation and amortization of 37.5 48.8
outsourcing assets
Amortization of marketable software 37.7 42.7
Amortization of intangible assets 7.3 7.7
Other non-cash operating activities 0.4 0.2
Loss on disposal of capital assets 0.3 1.6
Postretirement contributions (41.3) (33.9)
Postretirement expense 214.1 34.1
Deferred income taxes, net 14.5 (6.5)
Changes in operating assets and
liabilities, excluding the effect of
acquisitions:
Receivables, net and contract assets 58.3 48.4
Inventories (0.6) (5.6)
Other assets (24.8) (2.5)
Accounts payable and current liabilities (33.7) (101.5)
Other liabilities 11.8 6.2
Net cash provided by (used for) operating 51.2 (22.2)
activities
Cash flows from investing activities
Proceeds from investments 2,044.3 2,441.0
Purchases of investments (2,030.0) (2,499.4)
Investment in marketable software (32.9) (35.2)
Capital additions of properties (15.4) (21.5)
Capital additions of outsourcing assets (11.4) (8.1)
Purchase of businesses, net of cash - (0.3)
acquired
Other (0.9) (0.9)
Net cash used for investing activities (46.3) (124.4)
Cash flows from financing activities
Payments of long-term debt (13.7) (14.6)
Other (0.4) (3.8)
Net cash used for financing activities (14.1) (18.4)
Effect of exchange rate changes on cash, 0.4 (30.6)
cash equivalents and restricted cash
Decrease in cash, cash equivalents and (8.8) (195.6)
restricted cash
Cash, cash equivalents and restricted 402.7 560.6
cash, beginning of period
Cash, cash equivalents and restricted $ 393.9 $ 365.0
cash, end of period
UNISYS
CORPORATION
RECONCILIATIONS
OF SELECTED GAAP
MEASURES TO NON
-GAAP MEASURES
(Unaudited)
(Millions, except
per share data)
Three Nine
Months Months
Ended Ended
September September
30, 30,
2023 2022 2023 2022
GAAP net loss $ $ $ $
attributable to (50.0) (40.1) (265.4) (114.5)
Unisys
Corporation
Postretirement pretax 10.3 11.4 214.1 34.1
expense:
tax (0.2) 0.2 (0.6) 0.4
net of tax 10.5 11.2 214.7 33.7
Cost reduction pretax 17.6 32.0 57.7 72.9
and other
expenses:
tax 0.4 - 0.7 0.1
net of tax 17.2 32.0 57.0 72.8
noncontrolling - - - -
interest
net of 17.2 32.0 57.0 72.8
noncontrolling
interest
Non-GAAP net $ $ $ $
(loss) income (22.3) 3.1 6.3 (8.0)
attributable to
Unisys
Corporation
Weighted average 68,381 67,787 68,205 67,623
shares
(thousands)
Plus incremental
shares from
assumed
conversion:
Employee stock - 339 805 -
plans
Non-GAAP adjusted 68,381 68,126 69,010 67,623
weighted average
shares
Diluted earnings
(loss) per share
GAAP basis
GAAP net loss $ $ $ $
attributable to (50.0) (40.1) (265.4) (114.5)
Unisys
Corporation for
diluted loss
per share
Divided by 68,381 67,787 68,205 67,623
weighted average
shares
GAAP diluted loss $ $ $ $
per share (0.73) (0.59) (3.89) (1.69)
Non-GAAP basis
Non-GAAP net $ $ $ $
(loss) income (22.3) 3.1 6.3 (8.0)
attributable to
Unisys
Corporation
for diluted
(loss) earnings
per share
Divided by Non 68,381 68,126 69,010 67,623
-GAAP adjusted
weighted average
shares
Non-GAAP diluted $ $ $ $
(loss) earnings (0.33) 0.05 0.09 (0.12)
per share
UNISYS
CORPORATION
RECONCILIATIONS
OF GAAP TO NON
-GAAP
(Unaudited)
(Millions)
FREE CASH FLOW
Three Nine
Months Months
Ended Ended
September September
30, 30,
2023 2022 2023 2022
Cash provided $ $ $ $
by (used for) (4.1) 44.5 51.2 (22.2)
operations
Additions to (11.6) (11.6) (32.9) (35.2)
marketable
software
Additions to (3.5) (7.5) (15.4) (21.5)
properties
Additions to (6.5) (1.6) (11.4) (8.1)
outsourcing
assets
Free cash flow (25.7) 23.8 (8.5) (87.0)
Postretirement 10.2 8.8 41.3 33.9
funding
Pre-pension (15.5) 32.6 32.8 (53.1)
free cash flow
Cost reduction 16.9 20.5 56.7 40.8
and other
payments, net
Adjusted free $ $ $ $
cash flow 1.4 53.1 89.5 (12.3)
UNISYS
CORPORATION
RECONCILIATIONS
OF GAAP TO NON
-GAAP
(Unaudited)
(Millions)
EBITDA
Three Nine
Months Months
Ended Ended
September September
30, 30,
2023 2022 2023 2022
Net loss $ $ $ $
attributable to (50.0) (40.1) (265.4) (114.5)
Unisys
Corporation
Net income 1.1 0.2 2.5 0.8
attributable to
noncontrolling
interests
Interest 0.9 5.0 2.9 15.8
expense, net of
interest income
of $6.9, $2.9,
$20.0 and $8.8,
respectively*
Provision for 20.4 0.7 55.7 25.1
income taxes
Depreciation 19.6 22.9 58.4 78.1
Amortization 15.6 15.5 45.0 50.4
EBITDA $ $ $ $
7.6 4.2 (100.9) 55.7
Postretirement $ $ $ $
expense 10.3 11.4 214.1 34.1
Cost reduction 15.2 27.3 50.5 60.2
and other
expenses**
Non-cash share 3.8 4.7 12.5 14.7
based expense
Other expense, 0.1 4.9 9.3 12.4
net
adjustment***
Adjusted EBITDA $ $ $ $
37.0 52.5 185.5 177.1
*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 Nine
Months Months
Ended Ended
September September
30, 30,
2023 2022 2023 2022
Revenue $ 464.6 $ 461.2 $ 1,457.8 $ 1,422.
9
Net loss (10.8) % (8.7) % (18.2) % (8.0) %
attributable
to Unisys
Corporation
as a
percentage
of
revenue
Non-GAAP net (4.8) % 0.7 % 0.4 % (0.6) %
(loss)
income
attributable
to Unisys
Corporation
as
a percentage
of revenue
Adjusted 8.0 % 11.4 % 12.7 % 12.4 %
EBITDA as a
percentage
of revenue
UNISYS CORPORATION
RECONCILIATIONS OF
GAAP TO NON-GAAP
(Unaudited)
(Millions)
OPERATING PROFIT
Three Nine
Months Months
Ended Ended
September September
30, 30,
2023 2022 2023 2022
GAAP operating $ (17.1) $ $ 32.9 $ 2.2
(loss) profit (8.0)
Cost reduction and 17.1 21.6 42.8 42.8
other expenses*
Postretirement 0.4 0.5 1.1 1.6
expense**
Non-GAAP operating $ 0.4 $ $ 76.8 $ 46.6
profit 14.1
Revenue $ 464.6 $ 461.2 $ 1,457.8 $ 1,422.9
GAAP operating (3.7) % (1.7) % 2.3 % 0.2 %
(loss) profit
percent
Non-GAAP operating 0.1 % 3.1 % 5.3 % 3.3 %
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 Nine Months Ended
September 30, September 30,
2023 2022 2023 2022
GAAP revenue $ 464.6 $ 461.2 $ 1,457.8 $ 1,422.9
L&S revenue 67.1 86.9 284.8 297.9
Ex-L&S Non-GAAP $ 397.5 $ 374.3 $ 1,173.0 $ 1,125.0
revenue
GAAP gross profit $ 95.3 $ 104.3 $ 370.1 $ 339.8
L&S gross profit 39.6 60.5 198.5 216.7
Ex-L&S Non-GAAP $ 55.7 $ 43.8 $ 171.6 $ 123.1
gross profit
GAAP gross profit 20.5 % 22.6 % 25.4 % 23.9 %
percent
Ex-L&S Non-GAAP 14.0 % 11.7 % 14.6 % 10.9 %
gross profit
percent
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
November 07, 2023 02:00 ET (07:00 GMT)
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