REG-Unisys Corp: Unisys Announces 4Q and FY22 Results
23/02/2023 07:15
Unisys Announces 4Q and FY22 Results
Solid Fourth Quarter Performance with Expansion in Next-Gen((7)) Solutions
* 4Q revenue increased 3.3% year over year (YoY) and 7.0% in constant
currency((1))
* Full-year revenue declined 3.6% YoY and grew 0.1% in constant currency
* 4Q GAAP operating profit margin of 9.0%; non-GAAP operating profit
margin((8)) of 20.2%
* Full-year GAAP operating profit margin of 2.6%; non-GAAP operating profit
margin of 8.0%
* 4Q total company pipeline((3)) growth of 15% YoY
* Full year book-to-bill((6)) of 1.1x in 2022, up from 0.8x in 2021
* Year-end global GAAP pension deficit improvement of approximately $210M
* Company issues full-year 2023 guidance of (3.0%) to (7.0%) YoY constant
currency revenue growth, 2.0% to 4.0% non-GAAP operating margin, and 9.5% to
11.5% adjusted EBITDA margin
* Guidance reflects expectations for (1%) to 4% constant currency revenue
growth excluding License and Support (L&S) revenue within Enterprise Computing
Solutions
BLUE BELL, Pa., Feb. 22, 2023 -- Unisys Corporation (NYSE: UIS) today
reported fourth-quarter and full-year 2022 financial results.
"We had a solid finish to the year, delivering 7% year-over-year constant
currency revenue growth in the fourth quarter. Our higher growth and higher
margin Next-Gen Solutions are building momentum in the marketplace, growing
total contract value((5)) more than 80% versus the prior year quarter and
more than doubling annual contract value((4) ) versus the prior year
quarter. As we start 2023, we believe the new Unisys brand is resonating
with our clients, prospects, third party advisors, and industry analysts,"
said Unisys Chair and CEO Peter A. Altabef. "Our pipeline is stronger than it
was a year ago, and our trailing twelve month book-to-bill expanded
year-over-year to 1.1x. Although the light license and support renewal
schedule for 2023 is expected to drive an overall decline in revenue and
profit for the year, we expect revenue and margin improvement in the remainder
of the business."
Summary of Full-Year 2022 Results
Please refer to the accompanying financial tables for a reconciliation of the
GAAP to non-GAAP measures presented except for financial guidance since such a
reconciliation is not practicable without unreasonable effort.
* Revenue: * Revenue of $1.980B vs. $2.054B in 2021, down 3.6% YoY; up 0.1% in
constant currency
* Gross Profit: * Gross profit of $529.6M vs. $572.0M in 2021, down 7.4% YoY
* Gross margin of 26.7% vs. 27.8% in 2021, down 110 bps YoY
* Operating Profit: * Operating profit of $52.2M vs. $154.0M in 2021, down
66.1% YoY primarily driven by charges related to cost-reduction activities and
other non-recurring expenses * Operating profit margin of 2.6% vs. 7.5% in
2021
* Non-GAAP operating profit of $159.0M vs. $192.8M in 2021, down 17.5% YoY
driven by an increase in marketing expense related to the launch of the new
Unisys brand, the exit of certain non-strategic contracts and additional
expense associated with certain contracts * Non-GAAP operating profit margin
of 8.0% vs. 9.4% in 2021
* Net Income: * Net loss of $106.0M driven by increased charges related to
cost-reduction activities and other non-recurring expenses vs. net loss of
$448.5M in 2021, which included $447.9 million of after-tax settlement losses
related to the company's defined benefit pension plans
* Non-GAAP net income((10)) of $74.8M vs. $117.5M in 2021, down 36.3% YoY
* Adjusted EBITDA: * Adjusted EBITDA((9) ) of $325.8M vs. $369.9M in 2021,
down 11.9% YoY
* Adjusted EBITDA margin of 16.5% vs. 18.0% in 2021, down 150 bps YoY
* Earnings/Loss Per Share: * Loss per diluted share of $1.57 vs. loss per
diluted share of $6.75 in 2021, driven by the same factors noted above with
respect to GAAP net loss
* Non-GAAP diluted earnings per share of $1.10 vs. $1.75 in 2021
* Cash Flow: * Cash from operations of $12.7M vs. $132.5M in 2021
* Free cash flow((11)) of $(73.2)M vs. $32.3M in 2021, primarily due to lower
profitability and lower technology collections in 2022 vs. 2021
* Adjusted free cash flow((12)) of $27.0M vs. $172.2M in 2021
* Pipeline, ACV, TCV, Book-to-Bill: * Solid year-over-year growth in pipeline,
ACV, and TCV driven by expansion across our Next-Gen Solutions of Modern
Workplace, Digital Platforms and Applications (DP&A), Specialized Services and
Next-Gen Compute (SS&C) and Micro-Market Solutions
* Pipeline: increased 15% YoY
* ACV: increased 36% YoY
* TCV: increased 28% YoY
* Trailing-twelve-month book-to-bill: 1.1x up from 0.8x in 2021
* Balance Sheet: * As of December 31, 2022, total cash and cash equivalents
was $391.8M
* Year-end global GAAP pension deficit improvement of approximately $210M to
$543.1M
Full-Year 2022 Financial Highlights by Segment:
Digital Workplace Solutions (DWS): The company continues the transformation
of its DWS business as clients shift into higher growth and margin Modern
Workplace solutions
* Revenue: * DWS revenue of $509.9M vs. $574.5M in 2021, a decline of 11.2%
YoY or a decline of 7.3% in constant currency, primarily due to an $82.5M
impact from non-strategic contracts exited in 2021
* Excluding these contracts, DWS revenue grew 3.7% YoY, or 8.4% in constant
currency, driven by demand for Modern Workplace solutions
* Gross Margin: * DWS gross profit margin of 14.0% vs. 13.8% in 2021
Cloud, Applications & Infrastructure Solutions (CA&I): Continued expansion of
DP&A solutions within CA&I. The company continues to evolve its portfolio in
this direction.
* Revenue: * CA&I revenue of $520.3M vs. $485.6M in 2021, up 7.1% YoY, or 9.4%
in constant currency primarily driven by expansion of DP&A solutions and our
acquired application development solutions
* Gross Margin: * CA&I gross profit margin of 9.1% vs. 9.7% in 2021, down 60
bps YoY driven by additional expense associated with certain contract exits
and higher labor costs
Enterprise Computing Solutions (ECS): The company is delivering innovation in
industry solutions and next-gen compute capabilities to reinvigorate new logo
growth in ECS
* Revenue: * ECS revenue of $669.7M vs. $685.7M in 2021, down 2.3% YoY, or up
0.1% YoY in constant currency
* Gross Margin: * ECS gross profit margin of 64.5% vs. 63.4% in 2021
Summary of Fourth Quarter 2022 Results
* Revenue: * Revenue of $557.0M vs. $539.3M in 4Q21, up 3.3% YoY, or 7.0% in
constant currency
* Growth was driven by strength in CA&I and a strong quarter of license
renewals within ECS, particularly with clients in the travel and financial
services sectors
* Gross Profit: * Gross profit of $189.8M vs. $163.7M in 4Q21, up 15.9% YoY
* Gross profit margin of 34.1% vs 30.4% in 4Q21
* 370 bps YoY improvement driven by higher ECS revenue and improvements to
delivery efficiency in DWS and CA&I
* Operating Profit: * GAAP operating profit of $50.0M vs. $44.5M in 4Q21, up
12.4% YoY
* GAAP operating profit margin of 9.0% vs 8.3% in 4Q21
* Non-GAAP operating profit of $112.4M vs. $63.3M in 4Q21, up 77.6% YoY
* Non-GAAP operating profit margin of 20.2% vs. 11.7% in 4Q21
* Net Income: * GAAP net income of $8.5M vs. a net loss of $131.2M in 4Q21
* Non-GAAP net income of $82.8M vs. $34.8M in 4Q21, up 137.9% YoY
* Adjusted EBITDA * Adjusted EBITDA of $148.7M vs. $107.0M in 4Q21, up 39.0%
YoY
* Adjusted EBITDA margin of 26.7% vs. 19.8% in 4Q21
* Earnings/Loss Per Share: * Diluted earnings per share of $0.12 vs. diluted
loss per share of $1.95 in 4Q21
* Non-GAAP diluted earnings per share of $1.22 vs. $0.51 in 4Q21
* Cash Flow: * Cash from operations was $34.9M vs. $68.0M in 4Q21
* Free cash flow was $13.8M vs. $44.3M in 4Q21
* Adjusted free cash flow was $39.3M vs. $72.2M in 4Q21
* Year-over-year decline in free cash flow primarily due to lower technology
collections in 2022 vs. 2021
* ACV, TCV & Backlog: * 4Q ACV: increased 58% YoY
* 4Q TCV: increased 55% YoY * Driven by strength across Next-Gen Solutions and
higher renewal levels in DWS
* Backlog((2): ) $2.92B from $2.69B in 3Q22, a $230M expansion
quarter-over-quarter
Fourth Quarter 2022 Financial Highlights by Segment:
Strong 4Q constant currency growth and margin expansion in CA&I and ECS
DWS:
* Revenue: * DWS revenue of $127.8M vs. $140.0M in 4Q21, down 8.7% YoY, or
down 3.0% in constant currency due to a $12M impact from the exit of several
non-strategic accounts in 2021
* Gross Profit Margin: * DWS gross profit margin of 15.1% vs. 14.0% in 4Q21,
up 110 bps YoY driven by increased delivery efficiency
CA&I:
* Revenue: * CA&I revenue of $138.8M vs. $127.3M in 4Q21, up 9.0% YoY, or
11.6% in constant currency
* Gross Profit Margin: * CA&I gross profit margin of 19.0% vs. 13.4% in 4Q21,
up 560 bps YoY primarily due to expansion of DP&A solutions and our acquired
application development solutions
ECS:
* Revenue: * ECS revenue of $225.6M vs. $193.6M in 4Q21, up 16.5% YoY, or
16.8% in constant currency
* Gross Profit Margin: * ECS gross profit margin of 73.3% vs. 65.3% in 4Q21,
up 800 bps YoY due to flow through from higher license renewal levels during
the quarter
2023 Financial Guidance
The company has issued full-year 2023 revenue and profitability guidance.
Constant currency revenue growth is expected to be in the range of (3.0%) to
(7.0%) YoY. The company anticipates that non-GAAP operating profit margin will
be in the range of 2.0% to 4.0% and adjusted EBITDA margin in the range of
9.5% to 11.5%.
Conference Call
Unisys will hold a conference call with the financial community on Thursday,
February 23 at 8 a.m. Eastern Time to discuss the results.
The live, listen-only webcast, as well as the accompanying presentation
materials, can be accessed on the Unisys Investor Website at
www.unisys.com/investor. In addition, domestic callers can dial 1-844-695-5518
and international callers can dial 1-412-902-6749 and provide the following
conference passcode: Unisys Corporation Call.
A replay of the webcast will be available on the Unisys Investor Website
shortly following the conference call. A replay will also be available by
dialing 1-877-344-7529 for domestic callers or 1-412-317-0088 for
international callers and entering access code 5843310 from two hours after
the end of the call until March 9, 2023.
((1)) Constant currency – A significant amount of the company's revenue is
derived from international operations. As a result, the company's revenue has
been and will continue to be affected by changes in the U.S. dollar against
major international currencies. The company refers to revenue growth rates in
constant currency or on a constant currency basis so that the business results
can be viewed without the impact of fluctuations in foreign currency exchange
rates to facilitate comparisons of the company's business performance from one
period to another. Constant currency is calculated by retranslating current
and prior-period revenue at a consistent exchange rate rather than the actual
exchange rates in effect during the respective periods.
((2)) Backlog – Represents future revenue associated with contracted work
which has not yet been delivered or performed. Although the company believes
this revenue will be recognized, it may, for commercial reasons, allow the
orders to be cancelled, with or without penalty.
((3)) Pipeline – Represents qualified prospective sale opportunities for
which bids have been submitted or vetted prospective sales opportunities which
are being actively pursued. There is no assurance that pipeline will translate
into recorded revenue.
((4)) Annual Contract Value (ACV) – Represents the revenue expected to be
recognized during the first 12 months following the signing of a contract.
((5)) Total Contract Value (TCV) – Represents the estimated revenue
related to contracts signed in the period without regard for cancellation
terms. New business TCV represents TCV attributable to new scope for existing
clients and new logo contracts.
((6)) Book-to-bill – Represents total contract value booked divided by
revenue in a given period.
((7)) Next-Gen Solutions – Includes our Modern Workplace solutions
within DWS, Digital Platforms and Applications (DP&A) solutions within CA&I,
Specialized Services and Next-Gen Compute (SS&C) solutions within ECS, as well
as Micro-Market solutions.
Non-GAAP Information
Certain financial information is presented in this release under both a U.S.
generally accepted accounting basis (GAAP) and a non-GAAP basis. Non-GAAP
financial measures exclude certain items such as post-retirement expenses and
cost-reduction activities and other expenses that the company believes are not
indicative of its ongoing operations, as they may be unusual or non-recurring.
The inclusion of such items in financial measures can make the company's
profitability and liquidity results difficult to compare to prior periods or
anticipated future periods and can distort the visibility of trends associated
with the company's ongoing performance. Management also believes that non-GAAP
measures are useful to investors because they provide supplemental information
about the company's financial performance and liquidity, as well as greater
transparency into management's view and assessment of the company's ongoing
operating performance. The following measures are often provided and utilized
by the company's management, analysts, and investors to enhance comparability
of year-over-year results. These measures should not be relied upon as
substitutes for, or considered in isolation from, measures calculated in
accordance with U.S. GAAP.
((8)) Non-GAAP operating profit – This measure excludes pretax
postretirement expense and pretax charges in connection with cost-reduction
activities and other expenses.
((9)) EBITDA & adjusted EBITDA – Earnings before interest, taxes,
depreciation and amortization (EBITDA) is calculated by starting with net
income (loss) attributable to Unisys Corporation common shareholders and
adding or subtracting the following items: net income (loss) attributable to
noncontrolling interests, interest expense (net of interest income), provision
for (benefit from) income taxes, depreciation and amortization. Adjusted
EBITDA further excludes postretirement expenses and cost-reduction activities
and other expenses, non-cash share-based expense, and other (income) expense
adjustments.
((10)) Non-GAAP net income and non-GAAP diluted earnings per share – These
measures excluded postretirement expense and charges in connection with
cost-reduction activities and other expenses. The tax amounts related to
these items for the calculation of non-GAAP diluted earnings per share include
the current and deferred tax expense and benefits recognized under GAAP for
these items.
((11)) Free cash flow – Represents cash flow from operations less capital
expenditures.
((12)) Adjusted free cash flow – Represents free cash flow less cash used
for postretirement funding and cost-reduction activities and other payments.
About Unisys
Unisys is a global technology solutions company that powers breakthroughs for
the world's leading organizations. Our solutions – digital workplace; cloud,
applications & infrastructure; enterprise computing; and business process –
help our clients challenge the status quo and create new possibilities. To
learn how we deliver breakthroughs for our clients, visit unisys.com.
Forward-Looking Statements
Any statements contained in this release that are not historical facts are
forward-looking statements as defined in the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include, but are not limited
to, any projections or expectations of earnings, revenues, non-GAAP operating
profit margin, adjusted EBITDA margin, annual contract value, total contract
value, new business ACV or TCV, backlog, pipeline or other financial items;
any statements of our plans, strategies or objectives for future operations;
statements regarding future economic conditions or performance; and any
statements of belief or expectation. All forward-looking statements rely on
assumptions and are subject to various risks and uncertainties that could
cause actual results to differ materially from expectations. In particular,
statements concerning annual and total contract value are based, in part, on
the assumption that each of those contracts will continue for their full
contracted term. Risks and uncertainties that could affect our future results
include, but are not limited to, the following: our ability to grow revenue
and expand margin in our Digital Workplace Solutions and Cloud, Applications &
Infrastructure Solutions businesses; our ability to maintain our installed
base and sell new solutions and related services; our ability to attract and
retain experienced personnel in key positions; the potential adverse effects
of aggressive competition; our ability to effectively anticipate and respond
to rapid technological innovation in our industry; our ability to retain
significant clients and attract new clients; our contracts may not be as
profitable as expected or provide the expected level of revenues; the business
and financial risk in implementing acquisitions or dispositions; we have
significant underfunded pension obligations; cybersecurity incidents could
result in incurring significant costs and could harm our business and
reputation; our failure to remediate material weaknesses in our disclosure
controls and procedures and internal controls over financial reporting or any
other material weaknesses in the future could result in material misstatements
in our financial statements; our ability to access financing markets; the
risks of doing business internationally when a significant portion of our
revenue is derived from international operations; the adverse effects of
global economic conditions, acts of war, terrorism, natural disasters or the
widespread outbreak of infectious diseases; a reduction in our credit rating;
a significant disruption in our IT systems could adversely affect our business
and reputation; the performance and capabilities of third parties with whom we
have commercial relationships; we may face damage to our reputation or legal
liability if our clients are not satisfied with our services or products; the
potential for intellectual property infringement claims to be asserted against
us or our clients; the possibility that legal proceedings could affect our
results of operations or cash flow or may adversely affect our business or
reputation; a potential impairment of goodwill or intangible assets; a failure
to meet standards or expectations with respect to our environmental, social
and governance practices; and our ability to use our net operating loss
carryforwards and certain other tax attributes may be limited. Additional
discussion of factors that could affect our future results is contained in our
periodic filings with the Securities and Exchange Commission. We assume no
obligation to update any forward-looking statements. While included under
the definition of forward-looking statements, for the avoidance of doubt, any
specific guidance or color that we may provide from time to time regarding our
expected future financial performance is effective only on the date given. We
generally will not update, reaffirm or otherwise comment on any such
information except as we deem necessary, and then only in a manner that
complies with Regulation FD.
RELEASE NO.: 0222/9898
Unisys and other Unisys products and services mentioned herein, as well as
their respective logos, are trademarks or registered trademarks of Unisys
Corporation. Any other brand or product referenced herein is acknowledged to
be a trademark or registered trademark of its respective holder.
UIS-Q
UNISYS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited)
(Millions, except per share data)
Three Months Ended December 31, Year Ended December 31,
2022 2021 2022 2021
Revenue
Services $ 409.7 $ 430.5 $ 1,597.3 $ 1,699.3
Technology 147.3 108.8 382.6 355.1
557.0 539.3 1,979.9 2,054.4
Costs and expenses
Cost of revenue:
Services 324.3 339.0 1,285.9 1,358.7
Technology 42.9 36.6 164.4 123.7
367.2 375.6 1,450.3 1,482.4
Selling, general and administrative 132.9 109.8 453.2 389.5
Research and development 6.9 9.4 24.2 28.5
507.0 494.8 1,927.7 1,900.4
Operating income 50.0 44.5 52.2 154.0
Interest expense 7.8 8.4 32.4 35.4
Other (expense), net (16.2) (145.7) (82.4) (580.3)
Earnings (loss) before income taxes 26.0 (109.6) (62.6) (461.7)
Provision (benefit) for income taxes 17.2 21.9 42.3 (11.9)
Consolidated net earnings (loss) 8.8 (131.5) (104.9) (449.8)
Net income (loss) attributable to noncontrolling interests 0.3 (0.3) 1.1 (1.3)
Net income (loss) attributable to Unisys Corporation $ 8.5 $ (131.2) $ (106.0) $ (448.5)
Earnings (loss) per common share attributable to Unisys Corporation
Basic $ 0.13 $ (1.95) $ (1.57) $ (6.75)
Diluted $ 0.12 $ (1.95) $ (1.57) $ (6.75)
UNISYS CORPORATION
SEGMENT RESULTS
(Unaudited)
(Millions)
Total DWS CA&I ECS Other
Three Months Ended December 31, 2022
Customer revenue $ 557.0 $ 127.8 $ 138.8 $ 225.6 $ 64.8
Intersegment — — — — —
Total revenue $ 557.0 $ 127.8 $ 138.8 $ 225.6 $ 64.8
Gross profit percent 34.1 % 15.1 % 19.0 % 73.3 %
Three Months Ended December 31, 2021
Customer revenue $ 539.3 $ 140.0 $ 127.3 $ 193.6 $ 78.4
Intersegment — — — — —
Total revenue $ 539.3 $ 140.0 $ 127.3 $ 193.6 $ 78.4
Gross profit percent 30.4 % 14.0 % 13.4 % 65.3 %
Total DWS CA&I ECS Other
Year Ended December 31, 2022
Customer revenue $ 1,979.9 $ 509.9 $ 520.3 $ 669.7 $ 280.0
Intersegment — — — — —
Total revenue $ 1,979.9 $ 509.9 $ 520.3 $ 669.7 $ 280.0
Gross profit percent 26.7 % 14.0 % 9.1 % 64.5 %
Year Ended December 31, 2021
Customer revenue $ 2,054.4 $ 574.5 $ 485.6 $ 685.7 $ 308.6
Intersegment — — — 1.4 (1.4)
Total revenue $ 2,054.4 $ 574.5 $ 485.6 $ 687.1 $ 307.2
Gross profit percent 27.8 % 13.8 % 9.7 % 63.4 %
UNISYS CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Millions)
December 31, December 31,
2022 2021
Assets
Current assets
Cash and cash equivalents $ 391.8 $ 552.9
Accounts receivable, net 402.5 451.7
Contract assets 28.9 42.0
Inventories 14.9 7.6
Prepaid expenses and other current assets 92.3 78.8
Total current assets 930.4 1,133.0
Properties 410.8 468.0
Less – Accumulated depreciation and amortization 334.9 381.5
Properties, net 75.9 86.5
Outsourcing assets, net 66.4 124.6
Marketable software, net 165.1 176.2
Operating lease right-of-use assets 42.5 62.7
Prepaid postretirement assets 119.5 159.7
Deferred income taxes 118.6 125.3
Goodwill 287.1 315.0
Intangible assets, net 52.4 34.9
Restricted cash 10.9 7.7
Assets held-for-sale 6.4 20.0
Other long-term assets 190.4 173.9
Total assets $ 2,065.6 $ 2,419.5
Total liabilities and equity (deficit)
Current liabilities:
Current maturities of long-term debt $ 17.4 $ 18.2
Accounts payable 160.8 180.2
Deferred revenue 200.7 253.2
Other accrued liabilities 271.6 300.9
Total current liabilities 650.5 752.5
Long-term debt 495.7 511.2
Long-term postretirement liabilities 714.6 976.2
Long-term deferred revenue 122.3 150.7
Long-term operating lease liabilities 29.7 46.1
Other long-term liabilities 31.0 47.2
Commitments and contingencies
Total Unisys Corporation stockholders' deficit (14.7) (113.7)
Noncontrolling interests 36.5 49.3
Total equity (deficit) 21.8 (64.4)
Total liabilities and equity (deficit) $ 2,065.6 $ 2,419.5
UNISYS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Millions)
Year Ended December 31,
2022 2021
Cash flows from operating activities
Consolidated net loss $ (104.9) $ (449.8)
Adjustments to reconcile consolidated net loss to net cash provided by operating activities:
Foreign currency losses 6.8 2.6
Non-cash interest expense 1.3 1.8
Employee stock compensation 20.0 18.8
Depreciation and amortization of properties 50.2 30.5
Depreciation and amortization of outsourcing assets 64.5 68.0
Amortization of marketable software 58.7 71.9
Amortization of intangible assets 10.1 3.0
Other non-cash operating activities 0.3 (0.6)
Loss on disposal of capital assets 6.6 2.2
Postretirement contributions (43.7) (56.4)
Postretirement expense 45.3 552.0
Deferred income taxes, net (8.3) (59.2)
Changes in operating assets and liabilities, excluding the effects of acquisitions:
Receivables, net and contract assets 15.5 47.4
Inventories (8.0) 6.0
Other assets (2.6) 8.0
Accounts payable and other accrued liabilities (103.8) (149.4)
Other liabilities 4.7 35.7
Net cash provided by operating activities 12.7 132.5
Cash flows from investing activities
Proceeds from investments 3,336.1 4,148.2
Purchases of investments (3,380.4) (4,168.1)
Capital additions of properties (31.0) (27.3)
Capital additions of outsourcing assets (8.6) (18.5)
Investment in marketable software (46.3) (54.4)
Purchases of businesses, net of cash acquired (0.3) (239.3)
Other (0.9) (0.9)
Net cash used for investing activities (131.4) (360.3)
Cash flows from financing activities
Payments of long-term debt (17.8) (103.1)
Proceeds from issuance of long-term debt — 1.5
Proceeds from exercise of stock options — 4.5
Other (3.8) (8.4)
Net cash used for financing activities (21.6) (105.5)
Effect of exchange rate changes on cash, cash equivalents and restricted cash (17.6) (12.8)
Decrease in cash, cash equivalents and restricted cash (157.9) (346.1)
Cash, cash equivalents and restricted cash, beginning of period 560.6 906.7
Cash, cash equivalents and restricted cash, end of period $ 402.7 $ 560.6
UNISYS CORPORATION
RECONCILIATIONS OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(Unaudited)
(Millions, except per share data)
Three Months Ended Year Ended
December 31, December 31,
2022 2021 2022 2021
GAAP net income (loss) attributable to Unisys Corporation $ 8.5 $ (131.2) $ (106.0) $ (448.5)
Postretirement expense: pretax 11.2 144.3 45.3 552.0
tax 0.1 0.4 0.5 53.2
net of tax 11.1 143.9 44.8 498.8
Cost reduction and other expenses pretax 66.6 22.1 139.5 67.8
tax 3.4 — 3.5 0.6
net of tax 63.2 22.1 136.0 67.2
noncontrolling interest — — — —
net of noncontrolling interest 63.2 22.1 136.0 67.2
Non-GAAP net income attributable to Unisys Corporation $ 82.8 $ 34.8 $ 74.8 $ 117.5
Weighted average shares (thousands) 67,793 67,170 67,665 66,451
Plus incremental shares from assumed conversion:
Employee stock plans 331 914 481 871
Non-GAAP adjusted weighted average shares 68,124 68,084 68,146 67,322
Diluted earnings (loss) per share
GAAP basis
GAAP net income (loss) attributable to Unisys Corporation $ 8.5 $ (131.2) $ (106.0) $ (448.5)
Divided by weighted average shares 68,124 67,170 67,665 66,451
GAAP diluted earnings (loss) per share $ 0.12 $ (1.95) $ (1.57) $ (6.75)
Non-GAAP basis
Non-GAAP net income attributable to Unisys Corporation for diluted earnings per share $ 82.8 $ 34.8 $ 74.8 $ 117.5
Divided by Non-GAAP adjusted weighted average shares 68,124 68,084 68,146 67,322
Non-GAAP diluted earnings per share $ 1.22 $ 0.51 $ 1.10 $ 1.75
UNISYS CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP
(Unaudited)
(Millions)
FREE CASH FLOW
Three Months Ended Year Ended
December 31, December 31,
2022 2021 2022 2021
Cash provided by operations $ 34.9 $ 68.0 $ 12.7 $ 132.5
Additions to marketable software (11.1) (12.3) (46.3) (54.4)
Additions to properties (9.5) (7.6) (31.0) (27.3)
Additions to outsourcing assets (0.5) (3.8) (8.6) (18.5)
Free cash flow 13.8 44.3 (73.2) 32.3
Postretirement funding 9.8 12.8 43.7 56.4
Cost reduction and other payments 15.7 15.1 56.5 83.5
Adjusted free cash flow $ 39.3 $ 72.2 $ 27.0 $ 172.2
UNISYS CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP
(Unaudited)
(Millions)
EBITDA
Three Months Ended Year Ended
December 31, December 31,
2022 2021 2022 2021
Net income (loss) attributable to Unisys Corporation $ 8.5 $ (131.2) $ (106.0) $ (448.5)
Net income (loss) attributable to noncontrolling interests 0.3 (0.3) 1.1 (1.3)
Interest expense, net of interest income of $3.7, $2.4, $12.4, $7.8 respectively* 4.1 6.0 20.0 27.6
Provision (benefit) for income taxes 17.2 21.9 42.3 (11.9)
Depreciation 36.6 24.5 114.7 98.5
Amortization 18.4 22.3 68.8 74.9
EBITDA $ 85.1 $ (56.8) $ 140.9 $ (260.7)
Postretirement expense $ 11.2 $ 144.3 $ 45.3 $ 552.0
Cost reduction and other expenses** 43.6 16.3 103.8 57.3
Non-cash share based expense 4.3 2.7 19.0 14.2
Other expense, net adjustment*** 4.5 0.5 16.8 7.1
Adjusted EBITDA $ 148.7 $ 107.0 $ 325.8 $ 369.9
*Included in other (expense), net on the consolidated statements of income (loss)
**Reduced for depreciation and amortization included above
***Other expense, net as reported on the consolidated statements of income (loss) less postretirement expense, interest income and items included in cost reduction and other expenses
Three Months Ended Year Ended
December 31, December 31,
2022 2021 2022 2021
Revenue $ 557.0 $ 539.3 $ 1,979.9 $ 2,054.4
Net earnings (loss) attributable to Unisys Corporation as a percentage of revenue 1.5 % (24.3) % (5.4) % (21.8) %
Non-GAAP net income attributable to Unisys Corporation as a percentage of revenue 14.9 % 6.5 % 3.8 % 5.7 %
Adjusted EBITDA as a percentage of revenue 26.7 % 19.8 % 16.5 % 18.0 %
UNISYS CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP
(Unaudited)
(Millions)
OPERATING PROFIT
Three Months Ended Year Ended
December 31, December 31,
2022 2021 2022 2021
GAAP operating profit $ 50.0 $ 44.5 $ 52.2 $ 154.0
Cost reduction and other expenses* 61.9 18.0 104.7 35.3
Postretirement expense** 0.5 0.8 2.1 3.5
Non-GAAP operating profit $ 112.4 $ 63.3 $ 159.0 $ 192.8
Revenue $ 557.0 $ 539.3 $ 1,979.9 $ 2,054.4
GAAP operating profit percent 9.0 % 8.3 % 2.6 % 7.5 %
Non-GAAP operating profit percent 20.2 % 11.7 % 8.0 % 9.4 %
*Included in cost of revenue, selling, general and administrative and research and development on the consolidated statements of income (loss)
**Included in selling, general and administrative on the consolidated statements of income (loss)
Contacts: For Investors: Michaela Pewarski, Unisys, +1 215-274-1254,
Investor@unisys.com; For Press: Patricia Gonzalez, Unisys, +1 817-846-7662,
Patricia.Gonzalez@unisys.com
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