TIDMUSY
Unisys Announces 3Q21 Results
Cloud & Infrastructure Revenue Growth Continues; Total Company Gross Profit and
Free Cash Flow Grow Year Over Year; Company Reaffirms FY 2021 Guidance
BLUE BELL, Pa., Nov. 2, 2021 --
* Continued growth in Cloud & Infrastructure Solutions ("C&I"), with segment
revenue up 1.7% YoY
* Total company gross profit grew 5.8% YoY and gross margin increased 180 bps
YoY
* Cash from operations was $65.5M vs. $66.3M in prior-year period; Free cash
flow(7) increased 14.9% YoY to $39.4M; Adjusted free cash flow(8) increased
36.3% YoY to $69.9M
* Company reaffirms FY 2021 guidance of 0 to 2% YoY revenue growth, 9 to 10%
non-GAAP operating profit margin, and 17.25 to 18.25% adjusted EBITDA
margin
* Unisys CFO Mike Thomson to become president and COO
Unisys Corporation (NYSE: UIS) today reported third-quarter 2021 financial
results. "During the third quarter, we made continued progress executing on our
strategy for sustained revenue growth and margin improvement by expanding the
company's solution portfolio and enhancing go-to-market efforts, while
proactively managing the workforce to successfully attract and retain talent in
a competitive labor market," said Unisys Chair and CEO Peter A. Altabef. "We
did this while increasing gross profit, free cash flow and total contract value
year over year."
Summary of Third-Quarter 2021 Results
* Revenue:
+ Revenue was $488.0M vs. $495.2M in 3Q20, down 1.5% YoY
o The company saw continued revenue growth in C&I and Enterprise
Computing Solutions ("ECS") year over year. Digital Workplace
Solutions ("DWS") revenue declined due to exiting some contracts
that were not core to how it plans to grow this business and
impacts related to global supply chain shortages.
* Gross Profit:
+ Gross profit increased 5.8% YoY to $126.9M vs. $119.9M in 3Q20
+ Gross profit margin increased 180 bps YoY to 26.0% vs. 24.2% in 3Q20
* Operating Profit:
+ Operating profit was $25.1M vs. $27.7M in 3Q20
o Non-GAAP operating profit(4) was $28.0M vs. $42.4M in 3Q20
+ Operating profit margin was 5.1% vs. 5.6% in 3Q20
o Non-GAAP operating profit margin was 5.7% vs. 8.6% in 3Q20
+ SG&A increased year over year largely due to increased investments in
the company's go-to-market efforts, primarily related to direct sales
support and increases to non-cash-based compensation.
* Adjusted EBITDA and Net Income:
+ Adjusted EBITDA(5) was $74.6M vs. $82.3M in 3Q20
o Adjusted EBITDA margin was 15.3% vs. 16.6% in 3Q20
+ Net loss from continuing operations was $18.7M vs. a net loss of $13.3M
in 3Q20
o Net income margin of (3.8)% vs. (2.7)% in 3Q20 (110 bps decline)
+ Non-GAAP net income from continuing operations(6) was $6.9M vs. $34.7M
in 3Q20
o Non-GAAP net income margin was 1.4% vs. 7.0% in 3Q20
+ Adjusted EBITDA was driven by the same items that impacted operating
profit, and net income was impacted by higher taxes year over year as a
result of the geographies in which income was earned.
* Earnings Per Share from Continuing Operations:
+ Loss per share from continuing operations of $0.28 vs. a loss of $0.21
in 3Q20, impacted by the profitability items and higher taxes
highlighted above.
+ Non-GAAP diluted earnings per share from continuing operations(6) was
$0.10 vs. $0.51 in 3Q20, also impacted by the noted profitability and
tax-related items.
* Cash Flow:
+ Cash from operations was $65.5M vs. $66.3M in 3Q20
o Cost reduction and other payments increased $13.5M year over year,
in connection with the company's profitability improvement
initiatives, which impacted cash from operations.
+ Free cash flow improved 14.9% YoY to $39.4M vs. $34.3M in 3Q20
+ Adjusted free cash flow improved 36.3% YoY to $69.9M vs. $51.3M in 3Q20
* TCV, Pipeline and Backlog:
+ Total contract value(3) was up 13.0% YoY
+ Total company pipeline(2) was up 4.9% sequentially
o The pipelines for proactive experience DWS solutions and cloud
solutions each also grew sequentially, both on a dollar basis and
as a percent of the total company pipeline.
+ Total company backlog(1) of $3.0B vs. $3.3B as of 2Q21
o Total company backlog was impacted by shifting the mix of business
toward higher-growth, higher-margin solutions and exiting some
non-strategic contracts. The duration of contracts in backlog also
shortened in 2021. The types of contracts the company is shifting
toward are less capital intensive and have shorter implementation
times.
* Balance Sheet:
+ The company continued de-risking the balance sheet with the removal of
additional pension liabilities in October through an annuity contract
valued at $235M.
Leadership Changes
The company announced the appointment of Unisys Chief Financial Officer (CFO)
Mike Thomson as president and chief operating officer (COO), effective upon the
hiring of a new CFO. Thomson has driven the financial transformation of the
company since becoming CFO in 2019, including the substantial strengthening of
the company's balance sheet. Thomson has also played an important operational
role in the company, as he currently runs the company's corporate development
efforts and oversees the strategy function. The company has begun the search
for a new CFO.
Thomson will succeed current Unisys President and COO Eric Hutto, who is
stepping down after 6.5 years of service with the company to pursue other
interests. Hutto, who was instrumental in improving the financial performance
of the company in recent years and in the implementation of the company's new
strategy and operating model, will be leaving his current role on November 30.
Chair and CEO Peter Altabef will assume Hutto's responsibilities on an interim
basis until the CFO transition is complete.
Financial Highlights by Segment:
DWS:
* DWS revenue was $141.3M vs. $148.3M in 3Q20, down 4.7% YoY
+ As noted above, as the company exited certain non-strategic contracts
within DWS and also saw some supply chain impacts, both of which
impacted revenue.
* DWS gross profit was $16.8M vs. $21.6M in 3Q20
+ DWS gross margin was 11.9% vs. 14.6% in 3Q20
+ Gross profit and margin were down year over year largely due to the
flow-through impact of the revenue decline noted above.
* During 3Q21, the company signed a new scope contract with a global
commercial real estate services firm to implement a case management system,
which will help the client move to a centralized global model for this
process and technology.
C&I:
* C&I revenue grew 1.7% YoY to $118.9M vs. $116.9M in 3Q20
+ C&I revenue growth supported by 16.9% YoY growth in C&I revenue in the
U.S. & Canada
* C&I gross profit grew 116.3% YoY to $9.3M vs. $4.3M in 3Q20
+ C&I gross margin improved 410 bps YoY to 7.8% vs. 3.7% in 3Q20,
reflecting improvements to margins for both cloud and traditional
infrastructure solutions.
* During 3Q21, the company signed a contract with a leading Mexican insurance
company to design a hybrid environment integrating public and private
clouds and to migrate crucial business information from a conventional data
center to that cloud environment.
ECS:
* ECS revenue grew 1.8% YoY to $149.2M vs. $146.6M in 3Q20
+ YoY revenue growth was supported by higher license renewal revenue than
anticipated
+ ECS services revenue also grew 1% YoY
* ECS gross profit grew 28.8% YoY to $97.0M vs. $75.3M in 3Q20
+ ECS gross margin improved 1360 bps YoY to 65.0% vs. 51.4% in 3Q20
* During 3Q21, the company signed a contract with an Asia Pacific national
government agency to manage IT infrastructure, based on the ClearPath
Forward® platform, that supports systems processing approximately 25
million driver's license and 60 million motor vehicle transactions per
year.
Conference Call
Unisys will hold a conference call November 3 at 8:00 a.m. Eastern Time to
discuss its results. The listen-only webcast, as well as the accompanying
presentation materials, can be accessed on the Unisys Investor website at
www.unisys.com/investor. Following the call, an audio replay of the webcast,
and accompanying presentation materials, can be accessed through the same link.
(1) Backlog - Represents future revenue associated with contracted work which
has not yet been delivered or performed. Although we believe this backlog is
firm, we may, for commercial reasons, allow the orders to be cancelled, with or
without penalty.
(2) Pipeline - Pipeline represents prospective sale opportunities being pursued
or for which bids have been submitted. There is no assurance that pipeline will
translate into recorded revenue.
(3) Total Contract Value - TCV is the estimated total contractual 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.
Non-GAAP and Other Information
Although appropriate under generally accepted accounting principles ("GAAP"),
the company's results reflect charges that the company believes are not
indicative of its ongoing operations and that can make its profitability and
liquidity results difficult to compare to prior periods, anticipated future
periods, or to its competitors' results. These items consist of certain
portions of post-retirement, debt exchange and extinguishment and
cost-reduction and other expenses. Management believes each of these items can
distort the visibility of trends associated with the company's ongoing
performance. Management also believes that the evaluation of the company's
financial performance can be enhanced by use of supplemental presentation of
its results that exclude the impact of these items in order to enhance
consistency and comparativeness with prior or future period results. The
following measures are often provided and utilized by the company's management,
analysts, and investors to enhance comparability of year-over-year results, as
well as to compare results to other companies in our industry.
(4) Non-GAAP operating profit - The company recorded pretax post-retirement
expense and pretax charges in connection with cost-reduction activities, debt
exchange/extinguishment and other expenses. For the company, non-GAAP operating
profit excluded these items. The company believes that this profitability
measure is more indicative of the company's operating results and aligns those
results to the company's external guidance, which is used by the company's
management to allocate resources and may be used by analysts and investors to
gauge the company's ongoing performance.
(5) EBITDA & adjusted EBITDA - Earnings before interest, taxes, depreciation
and amortization ("EBITDA") is calculated by starting with net income (loss)
from continuing operations attributable to Unisys Corporation common
shareholders and adding or subtracting the following items: net income
attributable to noncontrolling interests, interest expense (net of interest
income), provision for income taxes, depreciation and amortization. Adjusted
EBITDA further excludes post-retirement, debt exchange/extinguishment, and
cost-reduction and other expenses, non-cash share-based expense, and other
(income) expense adjustment. In order to provide investors with additional
understanding of the company's operating results, these charges are excluded
from the adjusted EBITDA calculation.
(6) Non-GAAP net income and non-GAAP diluted earnings per share - The company
has recorded post-retirement expense and charges in connection with debt
exchange/extinguishment and cost-reduction activities and other expenses.
Management believes that investors may have a better understanding of the
company's performance and return to shareholders by excluding these charges
from the GAAP diluted earnings/loss per share calculations. The tax amounts
presented for these items for the calculation of non-GAAP diluted earnings per
share include the current and deferred tax expense and benefits recognized
under GAAP for these amounts.
(7) Free cash flow - The company defines free cash flow as cash flow from
operations less capital expenditures. Management believes this liquidity
measure gives investors an additional perspective on cash flow from on-going
operating activities in excess of amounts used for reinvestment.
(8) Adjusted free cash flow - Because inclusion of the company's
post-retirement contributions, discontinued operations and cost-reduction
charges/reimbursements and other payments in free cash flow may distort the
visibility of the company's ability to generate cash flow from its operations
without the impact of these non-operational costs, management believes that
investors may be interested in adjusted free cash flow, which provides free
cash flow before these payments. This liquidity measure was provided to
analysts and investors in the form of external guidance and is used by
management to measure operating liquidity.
About Unisys
Unisys is a global IT solutions company that delivers successful outcomes for
the most demanding businesses and governments. Unisys offerings include digital
workplace solutions, cloud and infrastructure solutions, enterprise computing
solutions, business process solutions and cybersecurity solutions. For more
information on how Unisys delivers for its clients across the commercial,
financial services and government markets, visit www.unisys.com.
Forward-Looking Statements
Any statements contained in this release that are not historical facts are
forward-looking statements as defined in the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include, but are not limited to,
any projections or expectations of earnings, revenues, annual contract value,
total contract value, new business ACV or TCV, backlog, pipeline or other
financial items; any statements of the company's plans, strategies or
objectives for future operations; statements regarding future economic
conditions or performance; and any statements of belief or expectation. All
forward-looking statements rely on assumptions and are subject to various risks
and uncertainties that could cause actual results to differ materially from
expectations. In particular, statements concerning annual and total contract
value are based, in part, on the assumption that each of those contracts will
continue for their full contracted term. Risks and uncertainties that could
affect the company's future results include, but are not limited to, the
following: uncertainty of the magnitude, duration and spread of the novel
coronavirus ("COVID-19") pandemic and the impact of COVID-19 and governments'
responses to it on the global economy and our business, growth, reputation,
projections, prospects, financial condition, operations, cash flows and
liquidity, our ability to attract, motivate and retain experienced personnel in
key positions; our ability to grow revenue and expand margin in our Digital
Workplace Solutions and Cloud and Infrastructure businesses; our ability to
maintain our installed base and sell new solutions; the potential adverse
effects of aggressive competition in the information services and technology
marketplace; our ability to effectively anticipate and respond to volatility
and rapid technological innovation in our industry; our ability to retain
significant clients; our contracts may not be as profitable as expected or
provide the expected level of revenues; our ability to develop or acquire the
capabilities to enhance the company's solutions; the potential adverse effects
of the concentration of the company's business in the global commercial sector
of the information technology industry; our significant pension obligations and
required cash contributions and the possibility that we may be required to make
additional significant cash contributions to our defined benefit pension plans;
our ability to use our net operating loss carryforwards and certain other tax
attributes may be limited; the risks of doing business internationally when a
significant portion of our revenue is derived from international operations;
the business and financial risk in implementing future acquisitions or
dispositions; cybersecurity breaches could result in significant costs and
could harm our business and reputation; the performance and capabilities of
third parties with whom we have commercial relationships; a failure to meet
standards or expectations with respect to the company's environmental, social
and governance practices; our ability to access financing markets; a reduction
in our credit rating; the adverse effects of global economic conditions, acts
of war, terrorism, natural disasters or the widespread outbreak of infectious
diseases; the impact of Brexit could adversely affect the company's operations
in the United Kingdom as well as the funded status of the company's U.K.
pension plans; a significant disruption in our IT systems could adversely
affect our business and reputation; we may face damage to our reputation or
legal liability if our clients are not satisfied with our services or products;
the 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; and the company's consideration of all available information
following the end of the quarter and before the filing of the Form 10-Q and the
possible impact of this subsequent event information on its financial
statements for the reporting period. Additional discussion of factors that
could affect the company's future results is contained in its periodic filings
with the Securities and Exchange Commission. The company assumes no obligation
to update any forward-looking statements.
RELEASE NO.: 1102/9854
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 Nine Months Ended
Ended September 30,
September 30,
2021 2020 2021 2020
Revenue
Services $417.9 $426.0 $1,268.8 $1,247.9
Technology 70.1 69.2 246.3 201.5
488.0 495.2 1,515.1 1,449.4
Costs and expenses
Cost of revenue:
Services 343.1 345.9 1,019.7 1,061.6
Technology 18.0 29.4 87.1 79.9
361.1 375.3 1,106.8 1,141.5
Selling, general and administrative 95.1 85.5 279.7 252.5
Research and development 6.7 6.7 19.1 16.1
462.9 467.5 1,405.6 1,410.1
Operating income 25.1 27.7 109.5 39.3
Interest expense 8.5 2.4 27.0 20.9
Other (expense), net (24.2) (32.5) (434.6) (134.3)
Loss from continuing operations before (7.6) (7.2) (352.1) (115.9)
income taxes
Provision for (benefit from) income taxes 10.9 6.1 (33.8) 26.6
Consolidated loss from continuing operations (18.5) (13.3) (318.3) (142.5)
Net income (loss) attributable to 0.2 - (1.0) 0.5
noncontrolling interests
Net loss from continuing operations (18.7) (13.3) (317.3) (143.0)
attributable to Unisys Corporation
Income from discontinued operations, net of - 0.4 - 1,066.8
tax
Net (loss) income attributable to Unisys $ $ $ $
Corporation (18.7) (12.9) (317.3) 923.8
Earnings (loss) per share attributable to
Unisys Corporation
Basic
Continuing Operations $ $ $ $
(0.28) (0.21) (4.79) (2.27)
Disontinued Operations - 0.01 - 16.96
Total $ $ $ $
(0.28) (0.20) (4.79) 14.69
Diluted
Continuing Operations $ $ $ $
(0.28) (0.21) (4.79) (2.27)
Disontinued Operations - 0.01 - 16.96
Total $ $ $ $
(0.28) (0.20) (4.79) 14.69
UNISYS CORPORATION
SEGMENT RESULTS
(Unaudited)
(Millions)
Total DWS C&I ECS Other
Three Months Ended September 30,
2021
Customer revenue $ 488.0 $141.3 $118.9 $149.2 $ 78.6
Intersegment - - - - -
Total revenue $ 488.0 $141.3 $118.9 $149.2 $ 78.6
Gross profit percent 26.0 % 11.9 % 7.8 % 65.0 %
Three Months Ended September 30,
2020
Customer revenue $ 495.2 $148.3 $116.9 $146.6 $ 83.4
Intersegment - - - - -
Total revenue $ 495.2 $148.3 $116.9 $146.6 $ 83.4
Gross profit percent 24.2 % 14.6 % 3.7 % 51.4 %
Total DWS C&I ECS Other
Nine Months Ended September 30, 2021
Customer revenue $1,515.1 $428.9 $366.6 $486.3 $233.3
Intersegment - - - 1.4 (1.4)
Total revenue $1,515.1 $428.9 $366.6 $487.7 $231.9
Gross profit percent 26.9 % 13.5 % 10.1 % 62.4 %
Nine Months Ended September 30, 2020
Customer revenue $1,449.4 $442.0 $334.1 $439.2 $234.1
Intersegment - - - 0.1 (0.1)
Total revenue $1,449.4 $442.0 $334.1 $439.3 $234.0
Gross profit percent 21.2 % 8.6 % 2.2 % 52.9 %
UNISYS CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Millions)
September 30, December 31,
2021 2020
Assets
Current assets:
Cash and cash equivalents $ $
615.4 898.5
Accounts receivable, net 356.0 460.5
Contract assets 51.3 44.3
Inventories 11.2 13.4
Prepaid expenses and other current assets 91.5 89.3
Total current assets 1,125.4 1,506.0
Properties 616.4 727.0
Less-accumulated depreciation and 530.2 616.5
amortization
Properties, net 86.2 110.5
Outsourcing assets, net 136.8 173.9
Marketable software, net 184.8 193.6
Operating lease right-of-use assets 62.9 79.3
Prepaid postretirement assets 123.0 187.5
Deferred income taxes 147.0 136.2
Goodwill 242.9 108.6
Intangible assets, net 16.5 -
Restricted cash 9.1 8.2
Assets held for sale 20.0 -
Other long-term assets 166.8 204.1
Total assets $ $
2,321.4 2,707.9
Liabilities and deficit
Current liabilities:
Current maturities of long-term-debt $ $
18.8 102.8
Accounts payable 119.7 223.2
Deferred revenue 224.2 257.1
Other accrued liabilities 299.1 352.0
Total current liabilities 661.8 935.1
Long-term debt 514.1 527.1
Long-term postretirement liabilities 1,144.5 1,286.1
Long-term deferred revenue 153.0 137.9
Long-term operating lease liabilities 47.9 62.4
Other long-term liabilities 50.2 71.4
Commitments and contingencies
Total Unisys Corporation stockholders' (294.3) (356.8)
deficit
Noncontrolling interests 44.2 44.7
Total deficit (250.1) (312.1)
Total liabilities and deficit $ $
2,321.4 2,707.9
UNISYS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Millions)
Nine Months Ended
September 30,
2021 2020
Cash flows from operating activities
Consolidated net loss from continuing operations $ $
(318.3) (142.5)
Income from discontinued operations, net of tax - 1,066.8
Adjustments to reconcile consolidated net loss to net cash
provided by (used for) operating activities:
Gain on sale of U.S. Federal business - (1,057.7)
Loss on debt extinguishment - 28.5
Foreign currency losses 3.2 14.3
Non-cash interest expense 1.5 3.5
Employee stock compensation 11.5 11.1
Depreciation and amortization of properties 23.2 22.0
Depreciation and amortization of outsourcing assets 50.8 48.9
Amortization of marketable software 50.9 50.2
Amortization of intangible assets 1.7 -
Other non-cash operating activities (0.1) 0.6
Loss on disposal of capital assets 1.5 3.3
Postretirement contributions (43.6) (344.5)
Postretirement expense 407.7 72.8
Deferred income taxes, net (65.3) (16.9)
Changes in operating assets and liabilities, net of
acquisitions
Receivables, net and contract assets 135.0 12.4
Inventories 2.2 1.5
Other assets (4.1) 0.4
Accounts payable and current liabilities (229.6) (127.7)
Other liabilities 36.3 27.2
Net cash provided by (used for) operating activities 64.5 (325.8)
Cash flows from investing activities
Purchase of business (150.4) -
Net proceeds from sale of U.S. Federal business - 1,162.9
Proceeds from investments 3,286.4 2,550.2
Purchases of investments (3,294.6) (2,561.7)
Investments in marketable software (42.1) (54.8)
Capital additions of properties (19.7) (16.7)
Capital additions of outsourcing assets (14.7) (23.6)
Other (0.9) (0.5)
Net cash (used for) provided by investing activities (236.0) 1,055.8
Cash flows from financing activities
Proceeds from issuance of long-term debt 1.5 7.1
Payments of long-term debt (99.1) (451.0)
Cash paid for debt extinguishment - (23.7)
Proceeds from exercise of stock options 4.5 -
Other (7.7) (4.8)
Net cash used for financing activities (100.8) (472.4)
Effect of exchange rate changes on cash, cash equivalents (9.9) (25.3)
and restricted cash
(Decrease) increase in cash, cash equivalents and (282.2) 232.3
restricted cash
Cash, cash equivalents and restricted cash, beginning of 906.7 551.8
period
Cash, cash equivalents and restricted cash, end of period $ 624.5 $ 784.1
UNISYS CORPORATION
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(Unaudited)
(Millions, except per share data)
Three Months Nine Months
Ended Ended
September 30, September 30,
2021 2020 2021 2020
GAAP net loss from continuing operations $ $ $ $
attributable to Unisys Corporation (18.7) (13.3) (317.3) (143.0)
Postretirement expense: pretax 13.0 24.4 407.7 72.8
tax 0.4 0.4 52.8 1.1
net of tax 12.6 24.0 354.9 71.7
Cost reduction and other pretax 13.0 23.8 45.7 98.4
expenses:
tax - (0.2) 0.6 0.9
net of tax 13.0 24.0 45.1 97.5
noncontrolling - - - -
interest
net of noncontrolling 13.0 24.0 45.1 97.5
interest
Non-GAAP net income from continuing operations 6.9 34.7 82.7 26.2
attributable to Unisys Corporation
Add interest expense on convertible notes - 2.1 - 6.2
Non-GAAP net income attributable to Unisys $ $ 36.8 $ $
Corporation for diluted earnings per share 6.9 82.7 32.4
Weighted average shares (thousands) 67,131 63,032 66,211 62,897
Plus incremental shares from assumed
conversion:
Employee stock plans 764 613 857 504
Convertible notes - 8,625 - 8,625
Non-GAAP adjusted weighted average shares 67,895 72,270 67,068 72,026
Diluted earnings (loss) per share from
continuing operations
GAAP basis
GAAP net loss from continuing operations $ $ $ $
attributable to Unisys Corporation for diluted (18.7) (13.3) (317.3) (143.0)
earnings per share
Divided by weighted average shares 67,131 63,032 66,211 62,897
GAAP diluted loss per share $ $ $ $
(0.28) (0.21) (4.79) (2.27)
Non-GAAP basis
Non-GAAP net income (loss) from continuing $ $ 36.8 $ $
operations attributable to Unisys Corporation 6.9 82.7 32.4
for diluted earnings per share
Divided by Non-GAAP adjusted weighted average 67,895 72,270 67,068 72,026
shares
Non-GAAP diluted earnings (loss) per share $ 0.10 $ 0.51 $ $
1.23 0.45
UNISYS CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP
(Unaudited)
(Millions)
FREE CASH FLOW
Three Months Ended Nine Months Ended
September 30, September 30,
2021 2020 2021 2020
Cash provided by (used for) operations $65.5 $66.3 $ 64.5 $(325.8)
Additions to marketable software (12.4) (18.1) (42.1) (54.8)
Additions to properties (7.7) (6.1) (19.7) (16.7)
Additions to outsourcing assets (6.0) (7.8) (14.7) (23.6)
Free cash flow 39.4 34.3 (12.0) (420.9)
Postretirement funding 11.5 11.5 43.6 344.5
Discontinued operations - - - (9.1)
Cost reduction and other payments 19.0 5.5 68.4 23.5
Adjusted free cash flow $69.9 $51.3 $100.0 $ (62.0)
UNISYS CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP
(Unaudited)
(Millions)
EBITDA
Three Months Nine Months Ended
Ended
September 30, September 30,
2021 2020 2021 2020
Net loss from continuing operations $ $ $ $
attributable to Unisys Corporation (18.7) (13.3) (317.3) (143.0)
Net income (loss) attributable to 0.2 - (1.0) 0.5
noncontrolling interests
Interest expense, net of interest income of 6.5 1.1 21.5 14.9
$2.0, $1.3, $5.5, $6.0, respectively*
Provision for (benefit from) income taxes 10.9 6.1 (33.8) 26.6
Depreciation 25.6 22.6 74.0 70.9
Amortization 17.7 14.2 52.6 50.2
EBITDA $ $ $ $
42.2 30.7 (204.0) 20.1
Postretirement expense $ $ $ $
13.0 24.4 407.7 72.8
Debt extinguishment, cost reduction and 11.8 23.8 41.0 90.2
other expenses**
Non-cash share based expense 4.5 3.1 11.5 11.1
Other expense, net adjustment*** 3.1 0.3 6.7 2.4
Adjusted EBITDA $ $ $ $
74.6 82.3 262.9 196.6
*Included in other (expense), net on the consolidated statements of income
(loss)
**Reduced for depreciation and amortization included above
***Other (income) 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 Nine Months Ended
Ended
September 30, September 30,
2021 2020 2021 2020
Revenue $488.0 $495.2 $1,515.1 $1,449.4
Net loss from continuing operations (3.8)% (2.7)% (20.9)% (9.9)%
attributable to Unisys Corporation as a
percentage of revenue
Adjusted EBITDA as a percentage of revenue 15.3 % 16.6 % 17.4 % 13.6 %
UNISYS CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP
(Unaudited)
(Millions)
OPERATING PROFIT
Three Months Nine Months Ended
Ended
September 30, September 30,
2021 2020 2021 2020
GAAP operating income from continuing $ $ $ $
operations 25.1 27.7 109.5 39.3
Cost reduction and other expenses* 2.1 13.8 17.3 30.8
Postretirement expense** 0.8 0.9 2.7 2.5
Non-GAAP operating profit from continuing $ $ $ $
operations 28.0 42.4 129.5 72.6
Revenue $488.0 $495.2 $1,515.1 $1,449.4
GAAP operating profit percent 5.1 % 5.6 % 7.2 % 2.7 %
Non-GAAP operating profit percent 5.7 % 8.6 % 8.5 % 5.0 %
*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)
SOURCE Unisys Corporation
Contacts: Investors: Courtney Holben, Unisys, 215-986-3379,
courtney.holben@unisys.com, or Media: John Clendening, Unisys, 214-403-1981,
john.clendening@unisys.com
END
(END) Dow Jones Newswires
November 03, 2021 03:00 ET (07:00 GMT)
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