REG-Unisys Corporation: Unisys Announces 2Q23 Results
02/08/2023 07:15
Next-Gen Solutions Drive Strong Growth in Pipeline; Company Reaffirms
Full-Year Guidance
* Revenue decline of 7.4% year over year (YoY), or a decline of 6.3% YoY in
constant currency((1) )due to anticipated lower License and Support (L&S)
renewals
* Excluding License and Support (Ex-L&S)((14)), revenue growth of 4.9% YoY, or
growth of 6.5% in constant currency
* Gross profit margin of 24.3%, down 450 bps, Ex-L&S gross margin of 16.0%, up
560 bps
* Ex-L&S pipeline((3) )growth of 22% YoY and 15% quarter over quarter (QoQ)
* Next-Gen Solutions((7)) pipeline growth of 55% YoY and 25% QoQ
BLUE BELL, Pa., Aug. 1, 2023 -- Unisys
(https://c212.net/c/link/?t=0&l=en&o=3933827-1&h=84209266&u=https%3A%2F%2Fwww.unisys.com%2F&a=Unisys) (NYSE:
UIS) today reported financial results for the second quarter ended June 30,
2023.
Unisys achieved strong improvement in Ex-L&S revenue and profitability for the
second quarter. Revenue for the quarter declined 7.4% YoY or a decline of 6.3%
YoY in constant currency, and gross profit margin declined 450 bps,
principally due to expected lower software license renewals. Ex-L&S revenue
grew 4.9% YoY, or 6.5% YoY on a constant currency basis and Ex-L&S gross
margin expanded 560 bps YoY.
Double-digit pipeline expansion was driven by new logo opportunities,
especially within Next-Gen Solutions, which include Modern Workplace, Digital
Platforms & Applications, Specialized Services & Next-Gen Compute, and
Micro-Market Solutions. Unisys Next-Gen Solutions pipeline increased 55% YoY
and 25% QoQ.
"Our second quarter results demonstrate continued improvement in the
performance of our Ex-L&S Solutions," said Unisys Chair and CEO Peter A.
Altabef. "These solutions experienced solid growth and margin expansion during
the period. Our growth was driven by continued demand for our Next-Gen
Solutions. These offerings are leading to new opportunities with existing and
prospective clients who are increasingly viewing Unisys as an innovative
solutions partner in employee experience and digital transformation. Our
portfolio of Next-Gen Solutions, engineering capabilities and technology
ecosystem position us to help transform enterprises and organizations and
drive business outcomes using the full potential of data and AI."
Summary of Second 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 $476.8M vs. $515.0M in 2Q22, down 7.4% YoY, or down
6.3% YoY in constant currency, primarily due to lower software license
renewals within ECS
* Ex-L&S revenue of $396.0M vs. $377.4M in 2Q22, up 4.9% YoY, or up 6.5% YoY
in constant currency, driven by growth in Digital Workplace Solutions (DWS)
and Specialized Services and Next-Gen Compute solutions within ECS
* Gross Profit:* Gross profit of $115.8M vs. $148.1M in 2Q22
* Gross profit margin of 24.3% vs. 28.8% in 2Q22, down 450 bps YoY
* Ex-L&S gross margin of 16.0% vs. 10.4% in 2Q22, up 560 bps YoY
* Operating Profit:* GAAP operating profit of $0.1M vs. $33.7M operating
profit in 2Q22
* GAAP operating profit margin of 0.0% vs. 6.5% operating profit margin in
2Q22
* Non-GAAP operating profit((8)) of $16.3M vs. $46.6M operating profit in
2Q22
* Non-GAAP operating profit margin of 3.4% vs. 9.0% operating profit margin in
2Q22
* Net Income/Loss:* GAAP net loss of $40.0M vs. net loss of $17.1M in 2Q22
* Non-GAAP net loss((10)) of $6.1M vs. net income of $16.2M in 2Q22
* Adjusted EBITDA:* Adjusted EBITDA((9)) of $50.3M vs. $90.4M in 2Q22
* Adjusted EBITDA margin of 10.5% vs. 17.6% in 2Q22
* Earnings/Loss Per Share:* Diluted loss per share of $0.59 vs. diluted loss
per share of $0.25 in 2Q22
* Non-GAAP diluted loss per share of $0.09 vs. diluted earnings per share of
$0.24 in 2Q22
* Cash Flow:* Cash provided by operations was $42.5M vs. cash used of $33.7M
in 2Q22
* Free cash flow((11)) was $24.7M vs. $(59.1)M in 2Q22
* Adjusted free cash flow((13)) was $68.1M vs. $(38.5)M in 2Q22
* YoY improvement in free cash flow primarily due to the timing of technology
collections in 2023 vs. 2022
* Pipeline, TCV and Backlog:* Total company pipeline increased 18% YoY and
12% QoQ* Next-Gen Solutions pipeline increased 55% YoY and 25% QoQ
* TCV((5)) decreased 20% YoY* Primarily due to the timing of L&S renewals
* Ex-L&S pipeline increased 22% YoY and 15% QoQ
* Ex-L&S TCV decreased 4%* Primarily due to lower new logo signings and the
timing of renewals within the year
* Backlog((2)) was $2.69B vs. $2.79B in 1Q23* Primarily driven by contract
renewal timing
* Balance Sheet:* As of June 30, 2023, total cash and cash equivalents was
$423.2M
2Q23 Financial Highlights by Segment:
Digital Workplace Solutions (DWS):
* Revenue:* DWS revenue of $135.0M vs. $127.2M in 2Q22, an increase of 6.1%
YoY, or an increase of 7.7% YoY in constant currency, primarily driven by
recent contract signings and additional scope with existing clients
* Gross Margin:* DWS gross profit margin of 13.6% vs. 13.0% in 2Q22, an
increase of 60 bps YoY
Cloud, Applications & Infrastructure Solutions (CA&I):
* Revenue:* CA&I revenue $132.6M vs. $130.1M in 2Q22, an increase of
1.9% YoY, or an increase of 2.6% YoY in constant currency
* Gross Margin:* CA&I gross profit margin of 16.9% vs. 5.5% in 2Q22, an
increase of 1140 bps YoY, primarily driven by additional expenses associated
with certain contracts included in the prior year period as well as delivery
improvements in 2Q23
Enterprise Computing Solutions (ECS):
* Revenue:* ECS revenue of $134.6M vs. $185.8M in 2Q22, a decline of 27.6%
YoY, or a decline of 27.0% YoY in constant currency, due to lower software
license renewals
* Gross Margin:* ECS gross profit margin was 54.1% vs. 66.2% in 2Q22, a
decrease of 1,210 bps YoY, primarily due to lower software license renewals
2023 Financial Guidance
The company reiterates full-year 2023 revenue and profitability guidance.
Constant currency revenue growth is expected to be in the range of (3%) to
(7%) YoY, which assumes Ex-L&S revenue in the range of (1%) to +4% YoY. The
company anticipates that non-GAAP operating profit margin will be in the range
of 2% to 4% and adjusted EBITDA margin will be in the range of 9.5% to 11.5%.
Conference Call
Unisys will hold a conference call with the financial community on Wednesday,
August 2, 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 4842656 from two hours after the end of the
call until August 16, 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)) 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.
((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 expense and cost-reduction activities
and other expenses, non-cash share-based expense, and other (income) expense
adjustments.
((10)) 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.
((11)) Free cash flow – Represents cash flow from operations less capital
expenditures.
((12)) Pre-pension free cash flow – Represents free cash flow before
postretirement contributions
((13)) Adjusted free cash flow – Represents free cash flow less cash used
for postretirement funding and cost-reduction activities and other payments.
((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 ACV and TCV are
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, ACV and TCV, backlog, pipeline, book-to-bill, full-year 2023
revenue and profitability guidance, including constant currency revenue and
ex-L&S revenue growth, 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
(https://c212.net/c/link/?t=0&l=en&o=3933827-1&h=4256094400&u=https%3A%2F%2Fwww.unisys.com%2F&a=unisys.com) and
follow us on LinkedIn
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#Unisys150.
RELEASE NO.: 0801/9916
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 Six Months Ended
June 30, June 30,
2023 2022 2023 2022
Revenue
Services $ 417.0 $ 400.3 $ 820.9 $ 792.4
Technology 59.8 114.7 172.3 169.3
476.8 515.0 993.2 961.7
Costs and expenses
Cost of revenue
Services 323.5 322.1 639.6 643.4
Technology 37.5 44.8 78.8 82.8
361.0 366.9 718.4 726.2
Selling, general and administrative 110.3 109.6 213.2 214.0
Research and development 5.4 4.8 11.6 11.3
476.7 481.3 943.2 951.5
Operating income 0.1 33.7 50.0 10.2
Interest expense 7.5 8.3 15.1 16.7
Other (expense), net (16.7) (21.9) (213.6) (42.9)
(Loss) earnings before income taxes (24.1) 3.5 (178.7) (49.4)
Provision for income taxes 15.4 20.3 35.3 24.4
Consolidated net loss (39.5) (16.8) (214.0) (73.8)
Net income attributable to noncontrolling interests 0.5 0.3 1.4 0.6
Net loss attributable to Unisys Corporation $ (40.0) $ (17.1) $ (215.4) $ (74.4)
Loss per share attributable to Unisys Corporation
Basic $ (0.59) $ (0.25) $ (3.16) $ (1.10)
Diluted $ (0.59) $ (0.25) $ (3.16) $ (1.10)
UNISYS CORPORATION
SEGMENT RESULTS
(Unaudited)
(Millions)
Total DWS CA&I ECS Other
Three Months Ended June 30, 2023
Revenue $ 476.8 $ 135.0 $ 132.6 $ 134.6 $ 74.6
Gross profit percent 24.3 % 13.6 % 16.9 % 54.1 %
Three Months Ended June 30, 2022
Revenue $ 515.0 $ 127.2 $ 130.1 $ 185.8 $ 71.9
Gross profit percent 28.8 % 13.0 % 5.5 % 66.2 %
Total DWS CA&I ECS Other
Six Months Ended June 30, 2023
Revenue $ 993.2 $ 266.0 $ 258.6 $ 322.8 $ 145.8
Gross profit percent 27.7 % 12.8 % 15.0 % 61.4 %
Six Months Ended June 30, 2022
Revenue $ 961.7 $ 252.0 $ 259.2 $ 306.4 $ 144.1
Gross profit percent 24.5 % 12.9 % 5.4 % 60.6 %
UNISYS CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Millions)
June 30, 2023 December 31,
2022
Assets
Current assets:
Cash and cash equivalents $ 423.2 $ 391.8
Accounts receivable, net 377.2 402.5
Contract assets 16.5 28.9
Inventories 21.0 14.9
Prepaid expenses and other current assets 112.6 92.3
Total current assets 950.5 930.4
Properties 406.6 410.8
Less-accumulated depreciation and amortization 332.9 334.9
Properties, net 73.7 75.9
Outsourcing assets, net 46.5 66.4
Marketable software, net 164.6 165.1
Operating lease right-of-use assets 38.6 42.5
Prepaid postretirement assets 120.9 119.5
Deferred income taxes 112.5 118.6
Goodwill 287.3 287.1
Intangible assets, net 47.5 52.4
Restricted cash 9.0 10.9
Assets held-for-sale 6.4 6.4
Other long-term assets 175.2 190.4
Total assets $ 2,032.7 $ 2,065.6
Total liabilities and equity
Current liabilities:
Current maturities of long-term debt $ 14.5 $ 17.4
Accounts payable 150.4 160.8
Deferred revenue 219.8 200.7
Other accrued liabilities 256.3 271.6
Total current liabilities 641.0 650.5
Long-term debt 488.5 495.7
Long-term postretirement liabilities 683.0 714.6
Long-term deferred revenue 113.0 122.3
Long-term operating lease liabilities 24.8 29.7
Other long-term liabilities 33.1 31.0
Commitments and contingencies
Total Unisys Corporation stockholders' equity (deficit) 11.4 (14.7)
Noncontrolling interests 37.9 36.5
Total equity 49.3 21.8
Total liabilities and equity $ 2,032.7 $ 2,065.6
UNISYS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Millions)
Six Months Ended
June 30,
2023 2022
Cash flows from operating activities
Consolidated net loss $ (214.0) $ (73.8)
Adjustments to reconcile consolidated net loss to net cash provided by (used for) operating activities:
Foreign currency (gains) losses (0.5) 0.4
Non-cash interest expense 0.6 0.7
Employee stock compensation 8.9 10.3
Depreciation and amortization of properties 13.7 19.2
Depreciation and amortization of outsourcing assets 25.1 36.0
Amortization of marketable software 24.5 29.6
Amortization of intangible assets 4.9 5.3
Other non-cash operating activities 0.4 0.2
Loss on disposal of capital assets 0.1 0.6
Postretirement contributions (31.1) (25.1)
Postretirement expense 203.8 22.7
Deferred income taxes, net 9.3 3.1
Changes in operating assets and liabilities, excluding the effect of acquisitions:
Receivables, net and contract assets 71.0 22.7
Inventories (5.7) (5.4)
Other assets (16.1) (9.3)
Accounts payable and current liabilities (37.6) (108.2)
Other liabilities (2.0) 4.3
Net cash provided by (used for) operating activities 55.3 (66.7)
Cash flows from investing activities
Proceeds from investments 1,485.4 1,668.0
Purchases of investments (1,470.4) (1,697.6)
Investment in marketable software (21.3) (23.6)
Capital additions of properties (11.9) (14.0)
Capital additions of outsourcing assets (4.9) (6.5)
Purchase of businesses, net of cash acquired — (0.3)
Other (0.4) (0.4)
Net cash used for investing activities (23.5) (74.4)
Cash flows from financing activities
Payments of long-term debt (10.6) (11.2)
Other (0.4) (3.8)
Net cash used for financing activities (11.0) (15.0)
Effect of exchange rate changes on cash, cash equivalents and restricted cash 8.7 (15.2)
Increase (decrease) in cash, cash equivalents and restricted cash 29.5 (171.3)
Cash, cash equivalents and restricted cash, beginning of period 402.7 560.6
Cash, cash equivalents and restricted cash, end of period $ 432.2 $ 389.3
UNISYS CORPORATION
RECONCILIATIONS OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(Unaudited)
(Millions, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2023 2022 2023 2022
GAAP net loss attributable to Unisys Corporation $ (40.0) $ (17.1) $ (215.4) $ (74.4)
Postretirement expense: pretax 10.6 12.5 203.8 22.7
tax (0.2) — (0.4) 0.2
net of tax 10.8 12.5 204.2 22.5
Cost reduction and other expenses: pretax 23.4 20.8 40.1 40.9
tax 0.3 — 0.3 0.1
net of tax 23.1 20.8 39.8 40.8
noncontrolling interest — — — —
net of noncontrolling interest 23.1 20.8 39.8 40.8
Non-GAAP net (loss) income attributable to Unisys $ (6.1) $ 16.2 $ 28.6 $ (11.1)
Corporation
Weighted average shares (thousands) 68,289 67,694 68,116 67,541
Plus incremental shares from assumed conversion:
Employee stock plans — 418 646 —
Non-GAAP adjusted weighted average shares 68,289 68,112 68,762 67,541
Diluted earnings (loss) per share
GAAP basis
GAAP net loss attributable to Unisys Corporation for diluted loss $ (40.0) $ (17.1) $ (215.4) $ (74.4)
per share
Divided by weighted average shares 68,289 67,694 68,116 67,541
GAAP diluted loss per share $ (0.59) $ (0.25) $ (3.16) $ (1.10)
Non-GAAP basis
Non-GAAP net (loss) income attributable to Unisys Corporation $ (6.1) $ 16.2 $ 28.6 $ (11.1)
for diluted (loss) earnings per share
Divided by Non-GAAP adjusted weighted average shares 68,289 68,112 68,762 67,541
Non-GAAP diluted (loss) earnings per share $ (0.09) $ 0.24 $ 0.42 $ (0.16)
UNISYS CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP
(Unaudited)
(Millions)
FREE CASH FLOW
Three Months Ended Six Months Ended
June 30, June 30,
2023 2022 2023 2022
Cash provided by (used for) operations $ 42.5 $ (33.7) $ 55.3 $ (66.7)
Additions to marketable software (11.0) (12.5) (21.3) (23.6)
Additions to properties (4.6) (8.8) (11.9) (14.0)
Additions to outsourcing assets (2.2) (4.1) (4.9) (6.5)
Free cash flow 24.7 (59.1) 17.2 (110.8)
Postretirement funding 14.7 8.9 31.1 25.1
Pre-pension free cash flow 39.4 (50.2) 48.3 (85.7)
Cost reduction and other payments, net 28.7 11.7 39.9 20.3
Adjusted free cash flow $ 68.1 $ (38.5) $ 88.2 $ (65.4)
UNISYS CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP
(Unaudited)
(Millions)
EBITDA
Three Months Ended Six Months Ended
June 30, June 30,
2023 2022 2023 2022
Net loss attributable to Unisys Corporation $ (40.0) $ (17.1) $ (215.4) $ (74.4)
Net income attributable to noncontrolling interests 0.5 0.3 1.4 0.6
Interest expense, net of interest income of $6.5, $3.4, $13.2 and $5.8, 1.0 4.9 1.9 10.9
respectively*
Provision for income taxes 15.4 20.3 35.3 24.4
Depreciation 17.4 26.5 38.8 55.2
Amortization 14.9 16.7 29.4 34.9
EBITDA $ 9.2 $ 51.6 $ (108.6) $ 51.6
Postretirement expense $ 10.6 $ 12.5 $ 203.8 $ 22.7
Cost reduction and other expenses** 21.0 17.9 35.3 32.9
Non-cash share based expense 4.1 3.5 8.7 10.0
Other expense, net adjustment*** 5.4 4.9 9.3 7.4
Adjusted EBITDA $ 50.3 $ 90.4 $ 148.5 $ 124.6
*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 Six Months Ended
June 30, June 30,
2023 2022 2023 2022
Revenue $ 476.8 $ 515.0 $ 993.2 $ 961.7
Net loss attributable to Unisys Corporation as a percentage of revenue (8.4) % (3.3) % (21.7) % (7.7) %
Non-GAAP net (loss) income attributable to Unisys Corporation as (1.3) % 3.1 % 2.9 % (1.2) %
a percentage of revenue
Adjusted EBITDA as a percentage of revenue 10.5 % 17.6 % 15.0 % 13.0 %
UNISYS CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP
(Unaudited)
(Millions)
OPERATING PROFIT
Three Months Ended Six Months Ended
June 30, June 30,
2023 2022 2023 2022
GAAP operating profit $ 0.1 $ 33.7 $ 50.0 $ 10.2
Cost reduction and other expenses* 15.8 12.3 25.7 21.2
Postretirement expense** 0.4 0.6 0.7 1.1
Non-GAAP operating profit $ 16.3 $ 46.6 $ 76.4 $ 32.5
Revenue $ 476.8 $ 515.0 $ 993.2 $ 961.7
GAAP operating profit percent 0.0 % 6.5 % 5.0 % 1.1 %
Non-GAAP operating profit percent 3.4 % 9.0 % 7.7 % 3.4 %
*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)
EXCLUDING LICENSE AND SUPPORT (EX-L&S) REVENUE AND GROSS PROFIT
Three Months Ended Six Months Ended
June 30, June 30,
2023 2022 2023 2022
GAAP revenue $ 476.8 $ 515.0 $ 993.2 $ 961.7
L&S revenue 80.8 137.6 217.7 211.0
Ex-L&S Non-GAAP revenue $ 396.0 $ 377.4 $ 775.5 $ 750.7
GAAP gross profit $ 115.8 $ 148.1 $ 274.8 $ 235.5
L&S gross profit 52.4 108.8 158.9 156.2
Ex-L&S Non-GAAP gross profit $ 63.4 $ 39.3 $ 115.9 $ 79.3
GAAP gross profit percent 24.3 % 28.8 % 27.7 % 24.5 %
Ex-L&S Non-GAAP gross profit percent 16.0 % 10.4 % 14.9 % 10.6 %
CONTACT: For Investors: Michaela Pewarski, Unisys, +1 215-274-1254,
Investor@unisys.com; For Press: Patricia Gonzalez, Unisys, +1 817-846-7662,
Patricia.Gonzalez@unisys.com
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