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. 6, 2023 /PRNewswire/ -- 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 OptimizationTM - 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
Guidance
|
|
Prior Issued
Guidance
|
Revenue in constant
currency*
|
0% to 1.5%
|
|
(7.0)%
to (3.0)%
|
Non-GAAP operating
profit margin
|
5.0%
to 6.0%
|
|
2.0%
to 4.0%
|
Adjusted EBITDA
margin
|
12.5%
to 13.5%
|
|
9.5%
to 11.5%
|
|
|
|
|
*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 Months
Ended September
30,
|
|
Nine Months
Ended September
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue
|
|
|
|
|
|
|
|
|
Services
|
|
$ 415.2
|
|
$ 395.2
|
|
$
1,236.1
|
|
$
1,187.6
|
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
administrative
|
|
108.1
|
|
106.3
|
|
321.3
|
|
320.3
|
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
taxes
|
|
20.4
|
|
0.7
|
|
55.7
|
|
25.1
|
Consolidated net
loss
|
|
(48.9)
|
|
(39.9)
|
|
(262.9)
|
|
(113.7)
|
Net income attributable
to noncontrolling interests
|
|
1.1
|
|
0.2
|
|
2.5
|
|
0.8
|
Net loss
attributable to Unisys Corporation
|
|
$ (50.0)
|
|
$ (40.1)
|
|
$
(265.4)
|
|
$
(114.5)
|
|
|
|
|
|
|
|
|
|
Loss per share
attributable to Unisys Corporation
|
|
|
|
|
|
|
|
|
Basic
|
|
$ (0.73)
|
|
$ (0.59)
|
|
$ (3.89)
|
|
$ (1.69)
|
Diluted
|
|
$ (0.73)
|
|
$ (0.59)
|
|
$ (3.89)
|
|
$ (1.69)
|
UNISYS
CORPORATION SEGMENT
RESULTS (Unaudited) (Millions)
|
|
|
|
Total
|
|
DWS
|
|
CA&I
|
|
ECS
|
|
Other
|
Three Months Ended
September 30, 2023
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$ 464.6
|
|
$ 140.9
|
|
$ 133.5
|
|
$ 122.2
|
|
$
68.0
|
Gross profit
percent
|
|
20.5 %
|
|
14.8 %
|
|
15.3 %
|
|
50.2 %
|
|
|
Three Months Ended
September 30, 2022
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$ 461.2
|
|
$ 130.1
|
|
$ 122.3
|
|
$ 137.7
|
|
$
71.1
|
Gross profit
percent
|
|
22.6 %
|
|
15.1 %
|
|
5.6 %
|
|
58.7 %
|
|
|
|
|
|
|
Total
|
|
DWS
|
|
CA&I
|
|
ECS
|
|
Other
|
Nine Months Ended
September 30, 2023
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
1,457.8
|
|
$ 406.9
|
|
$ 392.1
|
|
$ 445.0
|
|
$
213.8
|
Gross profit
percent
|
|
25.4 %
|
|
13.5 %
|
|
15.1 %
|
|
58.4 %
|
|
|
Nine Months Ended
September 30, 2022
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
1,422.9
|
|
$ 382.1
|
|
$ 381.5
|
|
$ 444.1
|
|
$
215.2
|
Gross profit
percent
|
|
23.9 %
|
|
13.7 %
|
|
5.5 %
|
|
60.0 %
|
|
|
UNISYS
CORPORATION CONSOLIDATED BALANCE
SHEETS (Unaudited) (Millions)
|
|
|
September 30,
2023
|
|
December 31,
2022
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
385.0
|
|
$
391.8
|
Accounts receivable,
net
|
388.3
|
|
402.5
|
Contract
assets
|
14.7
|
|
28.9
|
Inventories
|
15.6
|
|
14.9
|
Prepaid expenses and
other current assets
|
88.1
|
|
92.3
|
Total current
assets
|
891.7
|
|
930.4
|
Properties
|
401.5
|
|
410.8
|
Less-accumulated
depreciation and amortization
|
330.6
|
|
334.9
|
Properties,
net
|
70.9
|
|
75.9
|
Outsourcing assets,
net
|
39.6
|
|
66.4
|
Marketable software,
net
|
164.2
|
|
165.1
|
Operating lease
right-of-use assets
|
32.6
|
|
42.5
|
Prepaid postretirement
assets
|
121.8
|
|
119.5
|
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
long-term debt
|
$
12.7
|
|
$
17.4
|
Accounts
payable
|
140.1
|
|
160.8
|
Deferred
revenue
|
202.0
|
|
200.7
|
Other accrued
liabilities
|
285.0
|
|
271.6
|
Total current
liabilities
|
639.8
|
|
650.5
|
Long-term
debt
|
487.0
|
|
495.7
|
Long-term
postretirement liabilities
|
661.6
|
|
714.6
|
Long-term deferred
revenue
|
102.0
|
|
122.3
|
Long-term operating
lease liabilities
|
19.8
|
|
29.7
|
Other long-term
liabilities
|
54.5
|
|
31.0
|
Commitments and
contingencies
|
|
|
|
Total Unisys
Corporation stockholders' deficit
|
(32.4)
|
|
(14.7)
|
Noncontrolling
interests
|
38.6
|
|
36.5
|
Total
equity
|
6.2
|
|
21.8
|
Total liabilities
and equity
|
$
1,970.9
|
|
$
2,065.6
|
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 properties
|
|
20.9
|
|
29.3
|
Depreciation and
amortization of outsourcing assets
|
|
37.5
|
|
48.8
|
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 activities
|
|
51.2
|
|
(22.2)
|
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 acquired
|
|
—
|
|
(0.3)
|
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, cash equivalents and restricted
cash
|
|
0.4
|
|
(30.6)
|
Decrease in cash,
cash equivalents and restricted cash
|
|
(8.8)
|
|
(195.6)
|
Cash, cash
equivalents and restricted cash, beginning of period
|
|
402.7
|
|
560.6
|
Cash, cash
equivalents and restricted cash, end of period
|
|
$
393.9
|
|
$
365.0
|
UNISYS
CORPORATION RECONCILIATIONS OF SELECTED GAAP MEASURES TO
NON-GAAP MEASURES (Unaudited) (Millions,
except per share data)
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
GAAP net loss
attributable to Unisys Corporation
|
|
$ (50.0)
|
|
$ (40.1)
|
|
$
(265.4)
|
|
$
(114.5)
|
|
|
|
|
|
|
|
|
|
|
Postretirement
expense:
|
pretax
|
|
10.3
|
|
11.4
|
|
214.1
|
|
34.1
|
|
tax
|
|
(0.2)
|
|
0.2
|
|
(0.6)
|
|
0.4
|
|
net of tax
|
|
10.5
|
|
11.2
|
|
214.7
|
|
33.7
|
|
|
|
|
|
|
|
|
|
|
Cost reduction and
other expenses:
|
pretax
|
|
17.6
|
|
32.0
|
|
57.7
|
|
72.9
|
|
tax
|
|
0.4
|
|
—
|
|
0.7
|
|
0.1
|
|
net of tax
|
|
17.2
|
|
32.0
|
|
57.0
|
|
72.8
|
|
noncontrolling
interest
|
|
—
|
|
—
|
|
—
|
|
—
|
|
net of noncontrolling
interest
|
|
17.2
|
|
32.0
|
|
57.0
|
|
72.8
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net (loss)
income attributable to Unisys
Corporation
|
|
$ (22.3)
|
|
$
3.1
|
|
$
6.3
|
|
$
(8.0)
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
(thousands)
|
|
68,381
|
|
67,787
|
|
68,205
|
|
67,623
|
Plus incremental shares
from assumed conversion:
|
|
|
|
|
|
|
|
|
Employee stock
plans
|
|
—
|
|
339
|
|
805
|
|
—
|
Non-GAAP adjusted
weighted average shares
|
|
68,381
|
|
68,126
|
|
69,010
|
|
67,623
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
|
|
|
|
|
|
|
|
GAAP
basis
|
|
|
|
|
|
|
|
|
GAAP net loss
attributable to Unisys Corporation for diluted loss
per share
|
|
$ (50.0)
|
|
$ (40.1)
|
|
$
(265.4)
|
|
$
(114.5)
|
Divided by weighted
average shares
|
|
68,381
|
|
67,787
|
|
68,205
|
|
67,623
|
GAAP diluted loss
per share
|
|
$ (0.73)
|
|
$ (0.59)
|
|
$ (3.89)
|
|
$ (1.69)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
basis
|
|
|
|
|
|
|
|
|
Non-GAAP net (loss)
income attributable to Unisys Corporation
for diluted (loss) earnings per share
|
|
$ (22.3)
|
|
$
3.1
|
|
$
6.3
|
|
$
(8.0)
|
Divided by Non-GAAP
adjusted weighted average shares
|
68,381
|
|
68,126
|
|
69,010
|
|
67,623
|
Non-GAAP diluted
(loss) earnings per share
|
$ (0.33)
|
|
$
0.05
|
|
$
0.09
|
|
$ (0.12)
|
UNISYS
CORPORATION RECONCILIATIONS OF GAAP TO
NON-GAAP (Unaudited)
(Millions)
|
|
FREE CASH
FLOW
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Cash provided by
(used for) operations
|
|
$
(4.1)
|
|
$
44.5
|
|
$
51.2
|
|
$ (22.2)
|
Additions to marketable
software
|
|
(11.6)
|
|
(11.6)
|
|
(32.9)
|
|
(35.2)
|
Additions to
properties
|
|
(3.5)
|
|
(7.5)
|
|
(15.4)
|
|
(21.5)
|
Additions to
outsourcing assets
|
|
(6.5)
|
|
(1.6)
|
|
(11.4)
|
|
(8.1)
|
Free cash
flow
|
|
(25.7)
|
|
23.8
|
|
(8.5)
|
|
(87.0)
|
Postretirement
funding
|
|
10.2
|
|
8.8
|
|
41.3
|
|
33.9
|
Pre-pension free
cash flow
|
|
(15.5)
|
|
32.6
|
|
32.8
|
|
(53.1)
|
Cost reduction and
other payments, net
|
|
16.9
|
|
20.5
|
|
56.7
|
|
40.8
|
Adjusted free cash
flow
|
|
$
1.4
|
|
$
53.1
|
|
$
89.5
|
|
$ (12.3)
|
UNISYS
CORPORATION RECONCILIATIONS OF GAAP TO
NON-GAAP (Unaudited)
(Millions)
|
|
EBITDA
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net loss
attributable to Unisys Corporation
|
|
$ (50.0)
|
|
$ (40.1)
|
|
$
(265.4)
|
|
$
(114.5)
|
Net income attributable
to noncontrolling interests
|
|
1.1
|
|
0.2
|
|
2.5
|
|
0.8
|
Interest expense, net
of interest income of $6.9, $2.9, $20.0 and $8.8,
respectively*
|
|
0.9
|
|
5.0
|
|
2.9
|
|
15.8
|
Provision for income
taxes
|
|
20.4
|
|
0.7
|
|
55.7
|
|
25.1
|
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 and
other expenses**
|
|
15.2
|
|
27.3
|
|
50.5
|
|
60.2
|
Non-cash share based
expense
|
|
3.8
|
|
4.7
|
|
12.5
|
|
14.7
|
Other expense, net
adjustment***
|
|
0.1
|
|
4.9
|
|
9.3
|
|
12.4
|
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 Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue
|
|
$ 464.6
|
|
$ 461.2
|
|
$ 1,457.8
|
|
$ 1,422.9
|
Net loss attributable
to Unisys Corporation as a percentage of
revenue
|
(10.8) %
|
|
(8.7) %
|
|
(18.2) %
|
|
(8.0) %
|
Non-GAAP net (loss)
income attributable to Unisys Corporation as
a percentage of revenue
|
(4.8) %
|
|
0.7 %
|
|
0.4 %
|
|
(0.6) %
|
Adjusted EBITDA as a
percentage of revenue
|
8.0 %
|
|
11.4 %
|
|
12.7 %
|
|
12.4 %
|
UNISYS
CORPORATION RECONCILIATIONS OF GAAP TO
NON-GAAP (Unaudited)
(Millions)
|
|
OPERATING
PROFIT
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
GAAP operating
(loss) profit
|
|
$
(17.1)
|
|
$
(8.0)
|
|
$
32.9
|
|
$ 2.2
|
Cost reduction and
other expenses*
|
|
17.1
|
|
21.6
|
|
42.8
|
|
42.8
|
Postretirement
expense**
|
|
0.4
|
|
0.5
|
|
1.1
|
|
1.6
|
Non-GAAP operating
profit
|
|
$ 0.4
|
|
$
14.1
|
|
$
76.8
|
|
$
46.6
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$ 464.6
|
|
$ 461.2
|
|
$ 1,457.8
|
|
$ 1,422.9
|
|
|
|
|
|
|
|
|
|
GAAP operating (loss)
profit percent
|
|
(3.7) %
|
|
(1.7) %
|
|
2.3 %
|
|
0.2 %
|
Non-GAAP operating
profit percent
|
|
0.1 %
|
|
3.1 %
|
|
5.3 %
|
|
3.3 %
|
|
|
|
|
|
|
|
|
|
*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
revenue
|
|
$
397.5
|
|
$
374.3
|
|
$
1,173.0
|
|
$
1,125.0
|
|
|
|
|
|
|
|
|
|
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
gross profit
|
|
$
55.7
|
|
$
43.8
|
|
$
171.6
|
|
$
123.1
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
percent
|
|
20.5 %
|
|
22.6 %
|
|
25.4 %
|
|
23.9 %
|
Ex-L&S Non-GAAP
gross profit percent
|
|
14.0 %
|
|
11.7 %
|
|
14.6 %
|
|
10.9 %
|
View original
content:https://www.prnewswire.com/news-releases/unisys-announces-3q23-results-301979102.html
SOURCE Unisys Corporation