REG-Unisys Corp: Unisys Announces First-Quarter 2018 Financial Results
02/05/2018 07:05
Unisys Announces First-Quarter 2018 Financial Results; Operating Margin
Expands Year-Over-Year; Company Reaffirms Full-Year Financial Guidance
Services backlog grew year-over-year for second consecutive quarter, up 26
percent
BLUE BELL, Pa., May 1, 2018 --
1Q 2018:
* Total revenue increased 6.6 percent year-over-year; non-GAAP adjusted
revenue((5)) declined 1.4 percent year-over-year
* Operating profit margin increased 1110 basis points year-over-year to 14.4
percent; non-GAAP operating profit((6)) margin increased 60 basis points
year-over-year to 7.2 percent
* Technology revenue grew 76.6 percent year-over-year; non-GAAP adjusted
Technology revenue((5)) grew 9.7 percent year-over-year
* Total Contract Value((1)) ("TCV") and new business TCV were up 174 percent
and 145 percent year-over-year, respectively
* Services backlog((4)) was up 26 percent year-over-year and 10 percent
sequentially, to $4.7 billion
Unisys Corporation (http://www.unisys.com/) (NYSE: UIS) today reported
first-quarter 2018 financial results. Total company revenue grew 6.6 percent
year-over-year (2.5 percent in constant currency((3))), and operating profit
margin was up 1110 basis points year-over-year to 14.4 percent. Non-GAAP
adjusted revenue((5)) (which is adjusted for the recent adoption of required
accounting changes) was down 1.4 percent year-over-year, due to a tough
compare created by a large contract re-negotiation in the prior-year period,
as previously disclosed. Non-GAAP operating profit margin expanded to 7.2
percent, up 60 basis points year-over-year, even in light of the one-time
benefit from the same contract re-negotiation. Technology revenue grew 76.6
percent year-over-year, and non-GAAP adjusted Technology revenue((5)) grew 9.7
percent, marking the third consecutive quarter of year-over-year growth for
this segment. The company's results of operations for the first quarter were
favorably impacted by the required adoption of ASC 606((5)).
The company also reported strong contract signings for the quarter, including
the largest new logo contract signed in over a decade, based on TCV. Total
Contract Value increased 174 percent year-over-year, with new business TCV up
145 percent. Annual Contract Value grew 136 percent year-over-year, with new
business ACV up 99 percent. Services backlog((4)) was up 26 percent
year-over-year and 10 percent sequentially, to $4.7 billion.
"Our first quarter results mark a strong start to the year against our goals
for 2018," said Unisys Chairman, President and CEO Peter A. Altabef. "We are
pleased to see continuing momentum on the go-to-market front, including with
the largest new logo contract win the company has seen in over a decade."
Summary of First-Quarter 2018 Business Results
Company:
Revenue of $708.4 million grew 6.6 percent year-over-year or 2.5 percent on a
constant-currency basis. Non-GAAP adjusted revenue of $655.4 million was down
1.4 percent year-over-year, due to the tough compare noted previously.
Operating profit margin was 14.4 percent, up 1110 basis points year-over-year.
Non-GAAP operating margin expanded 60 basis points year-over-year.
First quarter cash used in operations was $50.2 million versus $41.0 million
in the first quarter 2017. First quarter adjusted free cash flow((12)) was
$(50.8) million, versus $(23.3) million in the first quarter of 2017, due to
working capital timing and capital expenditures associated with a
systems-update project at the company's UK-based check-processing joint
venture. At March 31, 2018, the company had $656 million in cash and cash
equivalents.
Net income for the first quarter was $40.6 million, versus a net loss of $32.7
million in the first quarter of 2017. Diluted earnings per share were $0.62,
versus a diluted loss per share of $0.65 in the first quarter of 2017.
Non-GAAP diluted earnings per share((10)) was $0.19 versus $0.32 in the
prior-year period.
Adjusted EBITDA((9)) for the first quarter grew 8.0 percent year-over-year to
$92.9 million. Adjusted EBITDA margin for the first quarter expanded by 130
basis points year-over-year to 14.2 percent.
TCV grew 174 percent year-over-year, and new business TCV grew 145 percent.
Total ACV was up 136 percent year-over-year, and new business ACV was up 99
percent year-over-year.
The company reaffirms full-year 2018 guidance for non-GAAP adjusted revenue of
$2.7-2.825 billion (GAAP revenue of $2.75-2.875 billion), non-GAAP operating
margin of 7.75-8.75 percent (GAAP operating margin of 9.5-10.5 percent) and
adjusted EBITDA margin of 13.7-14.9 percent.
Services:
Services revenue of $568.5 million, which represented 80 percent of total
first quarter revenue, was down 2.9 percent year-over-year, or 6.5 percent in
constant-currency, due to the tough compare created by the benefit of the
previously-noted contract re-negotiation in the first quarter of 2017.
Services backlog grew 26 percent year-over-year and 10 percent sequentially to
end the first quarter at $4.7 billion. Services gross margin was down 160
basis points year-over-year, to 16.6 percent, and Services operating profit
margin was down 170 basis points year-over-year to 3.0 percent, due in both
cases to the previously-noted tough compare.
Technology:
Technology revenue in the first quarter grew 76.6 percent year-over-year as
reported and 69.6 percent in constant currency to $139.9 million, which
represented 20 percent of total first quarter revenue. Non-GAAP adjusted
Technology revenue grew 9.7 percent year-over-year to $86.9 million.
Technology gross margin for the first quarter was up 2230 basis points
year-over-year to 68.9 percent. Non-GAAP adjusted Technology gross margin((7))
expanded 530 basis points to 51.9 percent. Technology operating profit grew
531 percent year-over-year, and Technology operating margin was up 3930 basis
points year-over-year to 54.7 percent. Non-GAAP adjusted Technology operating
margin((8)) expanded 1450 basis points to 29.9 percent.
Key First-Quarter Contract Signings:
In the first quarter, the company entered into several key contracts in each
of its sectors including the following:
* U.S. Federal: The U.S. Navy's Space and Naval Warfare Systems Command
awarded a contract to Unisys to develop, maintain and sustain the Nuclear
Command, Control and Communications Navy Modernized Hybrid Solution messaging
software. This mission-critical message handling software is used by Navy
computer and telecommunications personnel to receive, validate, store and
forward messages from military commanders to tactical military forces.
* Public: The Australian Department of Home Affairs has signed a multi-year
contract with Unisys to design and implement the new Enterprise Biometric
Identification Services (EBIS) system, which will leverage Unisys Stealth(®)
multi-factor identity management and authentication to match face images and
fingerprints of people wishing to travel to Australia.
* Commercial: Unisys won a significant new logo contract to provide field
engineering and technical services for a major enterprise information
technology company. The services will be provided in the United States and
Canada, and Latin America. The contract leverages Unisys' world-class field
engineering and technical support capabilities and furthers the confidence
that major technology providers have in Unisys to provide critical,
customer-facing services. This was the largest new logo contract Unisys has
signed in over a decade, based on TCV.
* Financial Services: A leading bank in Argentina, expanded the scope of its
work with Unisys to include a migration to Unisys' Elevate™ omnichannel
banking platform. This includes a suite of applications supporting real-time
transactions across all channels including online, mobile and in-branch. The
solution will also help the bank support and meet local regulatory needs.
Conference Call
Unisys will hold a conference call today at 5:30 p.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)) Total Contract Value – TCV is the estimated total contractual revenue
related to contracts signed in the period including option years (Federal
contracts only) and without regard for cancellation terms. New business TCV
represents TCV attributable to new scope for existing clients and new logo
contracts.
((2)) Annual Contract Value – ACV represents the revenue expected to be
recognized during the first twelve months following the signing of a contract
in the period.
((3)) Constant currency – The company refers to 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 results at a consistent rate.
((4)) Services Backlog – Services Backlog is the balance of contracted
services revenue not yet recognized, including only the funded portion of
services contracts with the U.S. Federal government.
Non-GAAP and Other Information
Although appropriate under generally accepted accounting principles ("GAAP"),
the company's results reflect revenue and charges that the company believes
are not indicative of its ongoing operations and that can make its revenue,
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 revenue, post-retirement and cost-reduction and
other expense. 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.
((5)) Non-GAAP adjusted revenue – For the first quarter of 2018, the
company's non-GAAP results will include an adjustment to exclude certain
revenue. The company has excluded revenue of $53 million. This is revenue from
software license extensions and renewals which were contracted for in the
fourth quarter of 2017 and properly recorded as revenue at that time under the
revenue recognition rules then in effect (ASC 605). Upon adoption of the new
revenue recognition rules (ASC 606) on January 1, 2018, and since the company
adopted ASC 606 under the modified retrospective method whereby prior periods
were not restated, the company was required to include this $53 million in the
cumulative effect adjustment to retained earnings on January 1, 2018. ASC 606
requires revenue related to software license renewals or extensions to be
recorded when the new license term begins, which in the case of the $53
million is January 1, 2018. The company has excluded revenue and related
profit for these software licenses in its non-GAAP results since it has been
previously reported in 2017. This is a one-time adjustment and it will not
reoccur in future periods. However, in its quarterly financial statements on
Form 10-Q for all of 2018, the company is required to report what its
financial statements would have been if it had not adopted ASC 606. The $53
million is included in those adjustments. There are additional adjustments
being made, but they do not represent previously recorded revenue. Those
adjustments represent other differences between ASC 605 and ASC 606,
principally extended payment term software licenses and short-term software
licenses both of which are recorded at the inception of the license term under
ASC 606 but were required to be recognized ratably over the software license
term under ASC 605.
((6)) Non-GAAP operating profit - The company recorded pretax post-retirement
expense and pretax charges in connection with cost-reduction activities 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. In the first quarter of 2018, the company included the
ASC 606 adjustment discussed in (5) above.
((7) ) Non-GAAP adjusted Technology gross margin – In the first quarter of
2018, the company included the ASC 606 adjustment discussed in (5) above.
((8)) Non-GAAP adjusted Technology operating margin – In the first quarter
of 2018, the company included the ASC 606 adjustment discussed in (5) above.
((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 attributable to
noncontrolling interests, interest expense (net of interest income), provision
for income taxes, depreciation and amortization. Adjusted EBITDA further
excludes post-retirement expense, cost-reduction and other expense, 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. In
the first quarter of 2018, the company included the ASC 606 adjustment
discussed in (5) above.
((10)) Non-GAAP diluted earnings per share - The company has recorded
post-retirement expense and charges in connection with 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. In the first
quarter of 2018, the company included the ASC 606 adjustment discussed in (5)
above.
((11)) 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.
((12)) Adjusted free cash flow - Because inclusion of the company's
post-retirement contributions and cost-reduction 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 information technology company that builds
high-performance, security-centric solutions for the most digitally demanding
businesses and governments on Earth. Unisys offerings include security
software and services; digital transformation and workplace services; industry
applications and services; and innovative software operating environments for
high-intensity enterprise computing. For more information on how Unisys builds
better outcomes securely for its clients across the Government, Financial
Services and Commercial 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 of earnings, revenues, annual contract value, total
contract value, new business ACV or TCV, backlog 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 all options of the contracts (Federal only)
included in the calculation of such value will be exercised and 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: our ability to improve revenue and margins in
our services business; our ability to maintain our installed base and sell new
solutions in our technology business; our ability to effectively anticipate
and respond to volatility and rapid technological innovation in our industry;
our ability to retain significant clients; the potential adverse effects of
aggressive competition in the information services and technology marketplace;
cybersecurity breaches could result in significant costs and could harm our
business and reputation; our significant pension obligations and required cash
contributions and requirements to make additional significant cash
contributions to our defined benefit pension plans; our ability to attract,
motivate and retain experienced and knowledgeable personnel in key positions;
the risks of doing business internationally when a significant portion of our
revenue is derived from international operations; our contracts may not be as
profitable as expected or provide the expected level of revenues; our ability
to access financing markets; contracts with U.S. governmental agencies may
subject us to audits, criminal penalties, sanctions and other expenses and
fines; 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
performance and capabilities of third parties with whom we have commercial
relationships; an involuntary termination of the company's U.S. qualified
defined benefit pension plan; the potential for intellectual property
infringement claims to be asserted against us or our clients; the business and
financial risk in implementing future acquisitions or dispositions; the
adverse effects of global economic conditions, acts of war, terrorism or
natural disasters; the possibility that pending litigation could affect our
results of operations or cash flow; 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.: 0501/9586
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
(Unaudited)
(Millions, except per share data)
Three Months Ended
March 31,
2018 2017
Revenue
Services $ 568.5 $ 585.3
Technology 139.9 79.2
708.4 664.5
Costs and expenses
Cost of revenue:
Services 470.9 486.4 *
Technology 36.3 39.5 *
507.2 525.9 *
Selling, general and administrative 90.9 105.0 *
Research and development 8.5 11.8 *
606.6 642.7 *
Operating profit 101.8 21.8 *
Interest expense 16.6 5.7
Other income (expense), net (22.6) (32.9) *
Income (loss) before income taxes 62.6 (16.8)
Provision for income taxes 20.9 12.9
Consolidated net income (loss) 41.7 (29.7)
Net income attributable to noncontrolling interests 1.1 3.0
Net income (loss) attributable to Unisys Corporation common shareholders $ 40.6 $ (32.7)
Earnings (loss) per share attributable to Unisys Corporation
Basic $ 0.80 $ (0.65)
Diluted $ 0.62 $ (0.65)
Shares used in the per share computations (in thousands):
Basic 50,748 50,256
Diluted 72,943 50,256
*Certain amounts have been reclassified to conform to the current-year presentation.
UNISYS CORPORATION
SEGMENT RESULTS
(Unaudited)
(Millions)
Total Eliminations Services Technology
Three Months Ended March 31, 2018
Customer revenue $ 708.4 $ — $ 568.5 $ 139.9
Intersegment — (10.0) — 10.0
Total revenue $ 708.4 $ (10.0) $ 568.5 $ 149.9
Gross profit percent 28.4 % 16.6 % 68.9 %
Operating profit percent 14.4 % 3.0 % 54.7 %
Three Months Ended March 31, 2017
Customer revenue $ 664.5 $ — $ 585.3 $ 79.2
Intersegment — (5.3) — 5.3
Total revenue $ 664.5 $ (5.3) $ 585.3 $ 84.5
Gross profit percent 20.9 % * 18.2 % 46.6 %
Operating profit percent 3.3 % * 4.7 % 15.4 %
*Certain amounts have been reclassified to conform to the current-year presentation.
UNISYS CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Millions)
March 31, 2018 December 31, 2017
Assets
Current assets:
Cash and cash equivalents $ 656.4 $ 733.9
Accounts receivable, net 492.5 503.3
Contract assets 46.4 —
Inventories:
Parts and finished equipment 11.5 13.6
Work in process and materials 10.7 12.5
Prepaid expenses and other current assets 115.3 126.2
Total current assets 1,332.8 1,389.5
Properties 906.6 898.8
Less-Accumulated depreciation and amortization 769.7 756.3
Properties, net 136.9 142.5
Outsourcing assets, net 213.4 202.3
Marketable software, net 142.6 138.3
Prepaid postretirement assets 157.3 148.3
Deferred income taxes 116.0 119.9
Goodwill 181.0 180.8
Restricted cash 26.6 30.2
Other long-term assets 207.1 190.6
Total assets $ 2,513.7 $ 2,542.4
Liabilities and deficit
Current liabilities:
Current maturities of long-term-debt $ 10.6 $ 10.8
Accounts payable 214.5 241.8
Deferred revenue 324.8 327.5
Other accrued liabilities 344.4 391.5
Total current liabilities 894.3 971.6
Long-term debt 636.2 633.9
Long-term postretirement liabilities 1,973.2 2,004.4
Long-term deferred revenue 184.9 159.0
Other long-term liabilities 95.9 100.0
Commitments and contingencies
Total deficit (1,270.8) (1,326.5)
Total liabilities and deficit $ 2,513.7 $ 2,542.4
UNISYS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Millions)
Three Months Ended
March 31,
2018 2017
Cash flows from operating activities
Consolidated net income (loss) $ 41.7 $ (29.7)
Adjustments to reconcile consolidated net (income) loss to net cash used for operating activities:
Foreign currency transaction losses 3.3 5.3
Non-cash interest expense 2.6 2.0
Employee stock compensation 4.0 3.7
Depreciation and amortization of properties 11.2 10.1
Depreciation and amortization of outsourcing assets 16.1 12.9
Amortization of marketable software 14.7 15.7
Other non-cash operating activities (0.9) (1.1)
Loss on disposal of capital assets 0.2 3.8
Postretirement contributions (30.9) (31.7) *
Postretirement expense 19.3 26.2 *
Decrease in deferred income taxes, net 6.0 2.2
Changes in operating assets and liabilities:
Receivables, net (28.0) 0.1
Inventories 0.8 0.1
Accounts payable and other accrued liabilities (130.1) (50.0)
Other liabilities 21.2 (9.2) *
Other assets (1.4) (1.4)
Net cash used for operating activities (50.2) (41.0)
Cash flows from investing activities
Proceeds from investments 1,222.7 1,218.9
Purchases of investments (1,208.7) (1,211.5)
Investment in marketable software (19.0) (13.8)
Capital additions of properties (5.1) (8.5)
Capital additions of outsourcing assets (24.4) (12.9)
Other (0.4) (0.3)
Net cash used for investing activities (34.9) (28.1)
Cash flows from financing activities
Payments of long-term debt (0.7) (0.7)
Other (2.1) (2.1)
Net cash used for financing activities (2.8) (2.8)
Effect of exchange rate changes on cash, cash equivalents and restricted cash 6.8 6.3
Decrease in cash, cash equivalents and restricted cash (81.1) (65.6)
Cash, cash equivalents and restricted cash, beginning of period 764.1 401.1
Cash, cash equivalents and restricted cash, end of period $ 683.0 $ 335.5
* Certain amounts have been reclassified to conform to the current-year presentation.
UNISYS CORPORATION
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(Unaudited)
(Millions, except per share data)
Three Months
Ended March 31,
2018 2017
GAAP net income (loss) attributable to Unisys Corporation common $ 40.6 $ (32.7)
shareholders
Topic 606 adjustment: pretax (53.0) —
tax provision 5.3 —
net of tax (47.7) —
Postretirement expense: pretax 19.3 26.2 *
tax provision 0.3 0.2
net of tax 19.6 26.4 *
Cost reduction and other expense: pretax (2.9) 25.4
tax provision 0.1 (0.5)
net of tax (2.8) 24.9
Non-GAAP net income attributable to Unisys Corporation common 9.7 18.6 *
shareholders
Add interest expense on convertible notes — 4.7
Non-GAAP net income attributable to Unisys Corporation for diluted $ 9.7 $ 23.3 *
earnings per share
Weighted average shares (thousands) 50,748 50,256
Plus incremental shares from assumed conversion:
Employee stock plans 327 387
Convertible notes — 21,868
Non-GAAP adjusted weighted average shares 51,075 72,511
Diluted earnings (loss) per share
GAAP basis
GAAP net income (loss) attributable to Unisys Corporation for diluted earnings per share $ 45.4 $ (32.7)
Divided by adjusted weighted average shares 72,943 50,256
GAAP diluted earnings (loss) per share $ 0.62 $ (0.65)
Non-GAAP basis
Non-GAAP net income attributable to Unisys Corporation for diluted earnings per share $ 9.7 $ 23.3 *
Divided by Non-GAAP adjusted weighted average shares 51,075 72,511
Non-GAAP diluted earnings per share $ 0.19 $ 0.32 *
* Certain amounts have been reclassified to conform to the current-year presentation.
UNISYS CORPORATION
RECONCILIATION OF GAAP OPERATING PROFIT TO NON-GAAP OPERATING PROFIT
(Unaudited)
(Millions)
Three Months
Ended March 31,
2018 2017
GAAP operating profit $ 101.8 $ 21.8 *
Topic 606 adjustment (53.0) —
Postretirement expense 1.0 1.7 *
Cost reduction and other expense (2.9) 20.1
Non-GAAP operating profit $ 46.9 $ 43.6 *
GAAP customer revenue $ 708.4 $ 664.5
Non-GAAP adjusted customer revenue 655.4 664.5
GAAP operating profit % 14.4 % 3.3 % *
Non-GAAP operating profit % 7.2 % 6.6 % *
* Certain amounts have been reclassified to conform to the current-year presentation.
UNISYS CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP
(Unaudited)
(Millions)
FREE CASH FLOW
Three Months
Ended March 31,
2018 2017
Cash used for operations $ (50.2) $ (41.0)
Additions to marketable software (19.0) (13.8)
Additions to properties (5.1) (8.5)
Additions to outsourcing assets (24.4) (12.9)
Free cash flow (98.7) (76.2)
Postretirement funding 30.9 31.7 *
Cost reduction and other payments 17.0 21.2
Adjusted free cash flow $ (50.8) $ (23.3) *
* Certain amounts have been reclassified to conform to the current-year presentation.
UNISYS CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP
(Unaudited)
(Millions)
EBITDA
Three Months
Ended March 31,
2018 2017
Net income (loss) attributable to Unisys Corporation common shareholders $ 40.6 $ (32.7)
Net income attributable to noncontrolling interests 1.1 3.0
Interest expense, net of interest income of $3.2, $2.4, respectively** 13.4 3.3
Provision for income taxes 20.9 12.9
Depreciation 27.3 23.0
Amortization 14.7 15.7
EBITDA $ 118.0 $ 25.2
Topic 606 adjustment (53.0) —
Postretirement expense 19.3 26.2 *
Cost reduction and other expense (2.9) 25.4
Non-cash share based expense 4.0 3.7
Other (income) expense adjustment*** 7.5 5.5
Adjusted EBITDA $ 92.9 $ 86.0 *
*Certain amounts have been reclassified to conform to the current-year presentation.
** Included in other (income) expense, net on the consolidated statements of income
*** Other (income) expense, net as reported on the consolidated statements of income less postretirement expense, interest income and items included in cost reduction and other expense
SOURCE Unisys Corporation
CONTACT: Investors: Courtney Holben, Unisys, 215-986-3379,
courtney.holben@unisys.com; Media: John Clendening, Unisys, 214-403-1981,
john.clendening@unisys.com
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