REG-Unisys Corporation: Unisys Announces 2Q24 Results
06/08/2024 07:15
Unisys Announces 2Q24 Results
Unisys Continues Strong Momentum in New Business(6) Signings and Reiterates
Full-Year Guidance
* Revenue growth of 0.3% year over year (YoY), a 0.5% increase in constant
currency(1); Excluding License and Support (Ex-L&S)(15) revenue was flat YoY,
a 0.1% increase in constant currency
* Gross profit margin of 27.2%, an improvement of 290 bps YoY; Ex-L&S gross
profit margin of 18.7%, an increase of 270 bps YoY
* Operating profit margin of 4.9 %; non-GAAP operating profit(8) margin of 6.1
%
* New Business Total Contract Value (TCV)(4) increased 64% YoY and 17%
quarter-over-quarter (QoQ) driven by more than doubling of new logo signings
in both YoY and QoQ
BLUE BELL, Pa., Aug. 5, 2024 -- Unisys Corporation (NYSE: UIS) reported
financial results for the second quarter of 2024.
Logo - https://mma.prnewswire.com/media/2301438/Unisys_Logo.jpg
"Unisys had another strong quarter of new logo signings, which more than
doubled sequentially for the third consecutive quarter," said Unisys Chair and
CEO Peter A. Altabef. "Overall New Business TCV grew double-digit
year-over-year, which we believe signals strong marketplace momentum for our
solution portfolio and recognition of the innovation we are bringing to our
clients. We are also continuing to advance industry solutions that bring
together data, engineering and industry expertise to drive tangible business
value."
Unisys Chief Financial Officer Deb McCann said, "Unisys reported another solid
quarter, with slightly stronger than expected Ex-L&S revenue growth. Our
second quarter Ex-L&S gross profit margin improvement of 270 bps compared to
prior year extends a track record of execution against our plan to improve
profitability. Looking ahead for the second half of the year, we anticipate
sequential revenue growth and operating profit and cash flow improvement as
New Business signings begin to generate revenue and we further benefit from
our operating efficiency initiatives."
Financial Highlights
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.
(In millions, except numbers presented as percentages) 2Q24 2Q23 YTD24 YTD23
Revenue $478.2 $476.8 $966.0 $993.2
YoY revenue growth 0.3 % (2.7) %
YoY revenue growth in constant currency 0.5 % (3.5) %
Ex-L&S revenue $396.1 $396.0 $790.7 $775.5
YoY revenue growth — % 2.0 %
YoY revenue growth in constant currency 0.1 % 1.5 %
License and Support (14) revenue $82.1 $80.8 $175.3 $217.7
YoY revenue growth 1.6 % (19.5) %
YoY revenue growth in constant currency 2.1 % (21.1) %
Gross profit $129.9 $115.8 $265.9 $274.8
Gross profit percent 27.2 % 24.3 % 27.5 % 27.7 %
Ex-L&S gross profit $74.2 $63.4 $145.4 $115.9
Ex-L&S gross profit percent 18.7 % 16.0 % 18.4 % 14.9 %
Operating profit $23.6 $0.1 $41.3 $50.0
Operating profit percent 4.9 % — % 4.3 % 5.0 %
Non-GAAP operating profit $29.3 $16.3 $63.7 $76.4
Non-GAAP operating profit percent 6.1 % 3.4 % 6.6 % 7.7 %
Net loss attributable to Unisys Corporation ($12.0) ($40.0) ($161.5) ($215.4)
Non-GAAP net income (loss) attributable to Unisys Corporation (10) $11.0 ($6.1) $13.7 $28.6
EBITDA $35.6 $9.2 ($68.6) ($108.6)
Adjusted EBITDA (9) $58.4 $50.3 $123.7 $148.5
Adjusted EBITDA as a percentage of revenue 12.2 % 10.5 % 12.8 % 15.0 %
Second Quarter 2024 Results
Revenue growth of 0.3% YoY, a 0.5% increase in constant currency. Ex-L&S
revenue was flat YoY, a 0.1% increase in constant currency.
Gross profit margin improved 290 bps YoY and Ex-L&S gross profit margin
improved 270 bps YoY primarily driven by delivery improvements and an increase
in higher-margin solutions in our New Business signings.
Financial Highlights by Segment
(In millions, except numbers presented as percentages) 2Q24 2Q23 YTD24 YTD23
Digital Workplace Solutions (DWS):
Revenue $132.1 $135.0 $264.4 $266.0
YoY revenue growth (2.1) % (0.6) %
YoY revenue growth in constant currency (2.2) % (1.1) %
Gross profit $21.4 $18.4 $40.4 $34.0
Gross profit percent 16.2 % 13.6 % 15.3 % 12.8 %
Cloud, Applications & Infrastructure Solutions (CA&I):
Revenue $134.3 $132.6 $263.3 $258.6
YoY revenue growth 1.3 % 1.8 %
YoY revenue growth in constant currency 1.3 % 1.8 %
Gross profit $23.9 $22.4 $45.3 $38.8
Gross profit percent 17.8 % 16.9 % 17.2 % 15.0 %
Enterprise Computing Solutions (ECS):
Revenue $137.5 $134.6 $284.5 $322.8
YoY revenue growth 2.2 % (11.9) %
YoY revenue growth in constant currency 2.5 % (13.3) %
Gross profit $76.9 $72.8 $161.9 $198.3
Gross profit percent 55.9 % 54.1 % 56.9 % 61.4 %
Second Quarter 2024 Segment Results
DWS revenue declined 2.1% YoY, a decline of 2.2% in constant currency, but was
better than expected at the beginning of the second quarter, as the decline in
discretionary volume was more modest than anticipated. DWS gross profit margin
was 16.2%, an increase of 260 bps YoY, reflecting results from delivery
modernization and efficiency initiatives as well as higher-margin solutions in
our New Business signings.
CA&I revenue increased 1.3% in both YoY and constant currency. CA&I gross
profit margin was 17.8%, an increase of 90 bps YoY, primarily driven by labor
cost savings initiatives.
ECS revenue increased 2.2% YoY, an increase of 2.5% in constant currency. ECS
gross profit margin was 55.9%, an increase of 180 bps YoY. The increase in
revenue and gross profit margin was primarily driven by the timing of software
license renewals and managed services growth.
Balance Sheet and Cash Flows
(In millions) June 30, 2024 December 31,
2023
Cash and cash equivalents $ 344.9 $ 387.7
(In millions) 2Q24 2Q23 YTD24 YTD23
Cash provided by operations $2.7 $42.5 $26.5 $55.3
Free cash flow (11) ($18.5) $24.7 ($14.6) $17.2
Pre-pension and postretirement free cash flow (12) ($13.8) $39.4 ($2.2) $48.3
Adjusted free cash flow (13) ($8.0) $68.1 $9.3 $88.2
Free cash flow declined by ($43.2) million YoY in the second quarter of 2024
and by ($31.8) million in the six months ended June 30, 2024, primarily due to
the timing of collections and other fluctuations in working capital.
Other Key Performance Metrics
YoY QoQ
Change Change*
TCV
Total company 19 % 25 %
Ex-L&S TCV 10 % 35 %
Pipeline (3)
Total company (25) % (7) %
Ex-L&S pipeline (25) % (8) %
* QoQ - quarter over quarter
TCV improvements reported above were primarily impacted by increased New
Business TCV of 64% YoY and 17% QoQ, primarily driven by new logo signings
more than doubling YoY and QoQ.
Total company and Ex-L&S pipeline declines YoY resulted from strong New
Business conversion and timing of the renewal schedule.
Backlog(2) was $2.79 billion for the second quarter of 2024 compared to $2.69
billion for the second quarter of 2023.
2024 Financial Guidance
The company reiterates full-year 2024 revenue growth and profitability
guidance:
Guidance
Revenue growth in constant currency (1.5)% to 1.5%
Non-GAAP operating profit margin 5.5% to 7.5%
Constant currency revenue guidance implies (1.7)% to 1.3% revenue growth as
reported, based on recent exchange rates, and assumes Ex-L&S full-year revenue
growth of 1.5% to 5.0% and L&S revenue of approximately $375 million.
Conference Call
Unisys will hold a conference call with the financial community on Tuesday,
August 6 at 8 a.m. Eastern Time to discuss the results of the second quarter
of 2024.
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 6869066 from two hours after the end of the
call until August 20, 2024.
(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 pipeline will translate
into recorded 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 expansion and 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) New Business – Represents expansion and new scope for existing clients
and new logo contracts.
(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. 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.
(8) Non-GAAP operating profit – This measure excludes pretax pension and
postretirement expense and pretax charges in connection with certain legal
matters related to professional services and legal fees, including legal
defense costs, associated with certain legal proceedings, and 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 pension and postretirement expense; certain legal
matters related to settlements, professional services and legal fees,
including legal defense costs, associated with certain legal proceedings;
environmental matters related to previously disposed businesses;
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 pension and postretirement expense and
charges or (credits) in connection with certain legal matters related to
settlements, professional services and legal fees, including legal defense
costs, associated with certain legal proceedings; environmental matters
related to previously disposed businesses; 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 and postretirement free cash flow – Represents free cash
flow before pension and postretirement contributions.
(13) Adjusted free cash flow – Represents free cash flow less cash used for
pension and postretirement funding; certain legal matters related to
professional services and legal fees, including legal defense costs,
associated with certain legal proceedings; environmental matters related to
previously disposed businesses; and cost-reduction activities and other
payments.
(14) License and Support (L&S) – Represents software license and related
support revenue within the company's ECS segment.
(15) 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,
statements made in Mr. Altabef's and Ms. McCann's quotations, any projections
or expectations of revenue growth, margin expansion, achievement of
operational efficiencies and savings, future growth of our Next-Gen
Solutions(7), TCV and New Business TCV, the impact of New Logo signings, the
impact of Unisys Logistics Optimization, backlog, pipeline, book-to-bill(5),
full-year 2024 revenue growth and profitability guidance, including constant
currency revenue, Ex-L&S revenue growth, L&S revenue, non-GAAP operating
profit margin, free cash flow generation and the assumptions and other
expectations made in connection with our full-year 2024 financial guidance,
our pension liability, future economic benefits from net operating losses 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; certain legal and other matters related
to professional services and legal fees, including legal defense costs,
associated with certain legal proceedings; environmental matters related to
previously disposed businesses; 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 – cloud, data and AI,
digital workplace, logistics and enterprise computing – help our clients
challenge the status quo and unlock their full potential. To learn how we have
been helping clients push what's possible for more than 150 years, visit
unisys.com and follow us on LinkedIn.
###
RELEASE NO.: 0805/9954
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 June 30, Six Months Ended June 30,
2024 2023 2024 2023
Revenue
Services $ 416.1 $ 417.0 $ 832.9 $ 820.9
Technology 62.1 59.8 133.1 172.3
478.2 476.8 966.0 993.2
Costs and expenses
Cost of revenue
Services 312.1 323.5 627.0 639.6
Technology 36.2 37.5 73.1 78.8
348.3 361.0 700.1 718.4
Selling, general and administrative 101.4 110.3 213.6 213.2
Research and development 4.9 5.4 11.0 11.6
454.6 476.7 924.7 943.2
Operating income 23.6 0.1 41.3 50.0
Interest expense 7.9 7.5 15.8 15.1
Other (expense), net (9.4) (16.7) (151.5) (213.6)
Earnings (loss) before income taxes 6.3 (24.1) (126.0) (178.7)
Provision for income taxes 18.8 15.4 35.8 35.3
Consolidated net loss (12.5) (39.5) (161.8) (214.0)
Net (loss) income attributable to noncontrolling interests (0.5) 0.5 (0.3) 1.4
Net loss attributable to Unisys Corporation $ (12.0) $ (40.0) $ (161.5) $ (215.4)
Loss per share attributable to Unisys Corporation
Basic $ (0.17) $ (0.59) $ (2.34) $ (3.16)
Diluted $ (0.17) $ (0.59) $ (2.34) $ (3.16)
UNISYS CORPORATION
SEGMENT RESULTS
(Unaudited)
(Millions)
Total DWS CA&I ECS Other
Three Months Ended June 30, 2024
Revenue $ 478.2 $ 132.1 $ 134.3 $ 137.5 $ 74.3
Gross profit percent 27.2 % 16.2 % 17.8 % 55.9 %
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 %
Total DWS CA&I ECS Other
Six Months Ended June 30, 2024
Revenue $ 966.0 $ 264.4 $ 263.3 $ 284.5 $ 153.8
Gross profit percent 27.5 % 15.3 % 17.2 % 56.9 %
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 %
UNISYS CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Millions)
June 30, 2024 December 31,
2023
Assets
Current assets:
Cash and cash equivalents $ 344.9 $ 387.7
Accounts receivable, net 432.6 454.5
Contract assets 17.4 11.7
Inventories 16.5 15.3
Prepaid expenses and other current assets 96.5 101.8
Total current assets 907.9 971.0
Properties 395.1 396.4
Less-accumulated depreciation and amortization 334.9 332.1
Properties, net 60.2 64.3
Outsourcing assets, net 26.1 31.6
Marketable software, net 169.6 166.2
Operating lease right-of-use assets 38.3 35.4
Prepaid postretirement assets 41.6 38.0
Deferred income taxes 108.9 114.0
Goodwill 287.2 287.4
Intangible assets, net 38.1 42.7
Restricted cash 7.8 9.0
Assets held-for-sale 4.9 4.9
Other long-term assets 177.2 200.9
Total assets $ 1,867.8 $ 1,965.4
Total liabilities and deficit
Current liabilities:
Current maturities of long-term debt $ 7.2 $ 13.0
Accounts payable 150.2 130.9
Deferred revenue 190.4 198.6
Other accrued liabilities 244.4 308.4
Total current liabilities 592.2 650.9
Long-term debt 489.2 491.2
Long-term postretirement liabilities 772.3 787.7
Long-term deferred revenue 103.7 104.4
Long-term operating lease liabilities 29.7 25.6
Other long-term liabilities 41.3 44.0
Commitments and contingencies
Total Unisys Corporation stockholders' deficit (174.1) (151.8)
Noncontrolling interests 13.5 13.4
Total deficit (160.6) (138.4)
Total liabilities and deficit $ 1,867.8 $ 1,965.4
UNISYS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Millions)
Six Months Ended June 30,
2024 2023
Cash flows from operating activities
Consolidated net loss $ (161.8) $ (214.0)
Adjustments to reconcile consolidated net loss to net cash provided by operating activities:
Foreign currency losses (gains) 12.6 (0.5)
Non-cash interest expense 0.6 0.6
Employee stock compensation 11.4 8.9
Depreciation and amortization of properties 12.1 13.7
Depreciation and amortization of outsourcing assets 12.6 25.1
Amortization of marketable software 24.2 24.5
Amortization of intangible assets 4.6 4.9
Other non-cash operating activities (1.0) 0.4
Loss on disposal of capital assets — 0.1
Pension and postretirement contributions (12.4) (31.1)
Pension and postretirement expense 159.0 203.8
Deferred income taxes, net 0.1 9.3
Changes in operating assets and liabilities, excluding the effect of acquisitions:
Receivables, net and contract assets 31.9 71.0
Inventories (1.7) (5.7)
Other assets (13.4) (16.1)
Accounts payable and current liabilities (59.4) (37.6)
Other liabilities 7.1 (2.0)
Net cash provided by operating activities 26.5 55.3
Cash flows from investing activities
Proceeds from foreign exchange forward contracts 1,519.2 1,485.4
Purchases of foreign exchange forward contracts (1,524.8) (1,470.4)
Investment in marketable software (25.7) (21.3)
Capital additions of properties (7.3) (11.9)
Capital additions of outsourcing assets (8.1) (4.9)
Other (0.1) (0.4)
Net cash used for investing activities (46.8) (23.5)
Cash flows from financing activities
Payments of long-term debt (10.1) (10.6)
Other (1.8) (0.4)
Net cash used for financing activities (11.9) (11.0)
Effect of exchange rate changes on cash, cash equivalents and restricted cash (11.8) 8.7
(Decrease) increase in cash, cash equivalents and restricted cash (44.0) 29.5
Cash, cash equivalents and restricted cash, beginning of period 396.7 402.7
Cash, cash equivalents and restricted cash, end of period $ 352.7 $ 432.2
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,
2024 2023 2024 2023
Net loss attributable to Unisys Corporation $ (12.0) $ (40.0) $ (161.5) $ (215.4)
Pension and postretirement expense pretax 12.4 10.6 159.0 203.8
tax 0.1 (0.2) 0.2 (0.4)
net of tax 12.3 10.8 158.8 204.2
Certain legal matters pretax 6.5 8.7 (1.7) 14.4
tax — — (2.8) —
net of tax 6.5 8.7 1.1 14.4
Environmental matters pretax 0.7 7.5 1.0 17.8
tax — — — —
net of tax 0.7 7.5 1.0 17.8
Cost reduction and other expenses pretax 3.5 7.2 14.6 7.9
tax — 0.3 0.3 0.3
net of tax 3.5 6.9 14.3 7.6
Non-GAAP net income (loss) attributable to Unisys Corporation $ 11.0 $ (6.1) $ 13.7 $ 28.6
Weighted average shares (thousands) 69,275 68,289 68,990 68,116
Plus incremental shares from assumed vesting:
Employee stock plans 1,636 — 1,952 646
Non-GAAP adjusted weighted average shares 70,911 68,289 70,942 68,762
Diluted loss per share
Net loss attributable to Unisys Corporation $ (12.0) $ (40.0) $ (161.5) $ (215.4)
Divided by weighted average shares 69,275 68,289 68,990 68,116
Diluted loss per share $ (0.17) $ (0.59) $ (2.34) $ (3.16)
Non-GAAP basis
Non-GAAP net income (loss) attributable to Unisys Corporation for $ 11.0 $ (6.1) $ 13.7 $ 28.6
diluted earnings (loss) per share
Divided by Non-GAAP adjusted weighted average shares 70,911 68,289 70,942 68,762
Non-GAAP diluted earnings (loss) per share $ 0.16 $ (0.09) $ 0.19 $ 0.42
UNISYS CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP
(Unaudited)
(Millions)
FREE CASH FLOW
Three Months Ended Six Months Ended
June 30, June 30,
2024 2023 2024 2023
Cash provided by operations $ 2.7 $ 42.5 $ 26.5 $ 55.3
Additions to marketable software (12.5) (11.0) (25.7) (21.3)
Additions to properties (5.1) (4.6) (7.3) (11.9)
Additions to outsourcing assets (3.6) (2.2) (8.1) (4.9)
Free cash flow (18.5) 24.7 (14.6) 17.2
Pension and postretirement funding 4.7 14.7 12.4 31.1
Pre-pension and postretirement free cash flow (13.8) 39.4 (2.2) 48.3
Certain legal payments 1.2 10.9 2.6 13.0
Environmental matters payments 2.0 5.0 4.4 10.8
Cost reduction and other payments, net 2.6 12.8 4.5 16.1
Adjusted free cash flow $ (8.0) $ 68.1 $ 9.3 $ 88.2
UNISYS CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP
(Unaudited)
(Millions)
EBITDA
Three Months Ended Six Months Ended
June 30, June 30,
2024 2023 2024 2023
Net loss attributable to Unisys Corporation $ (12.0) $ (40.0) $ (161.5) $ (215.4)
Net (loss) income attributable to noncontrolling interests (0.5) 0.5 (0.3) 1.4
Interest expense, net of interest income of $5.3, $6.5, $11.9 and $13.2, 2.6 1.0 3.9 1.9
respectively (1)
Provision for income taxes 18.8 15.4 35.8 35.3
Depreciation 12.3 17.4 24.7 38.8
Amortization 14.4 14.9 28.8 29.4
EBITDA $ 35.6 $ 9.2 $ (68.6) $ (108.6)
Pension and postretirement expense $ 12.4 $ 10.6 $ 159.0 $ 203.8
Certain legal matters (2) 6.5 8.7 (1.7) 14.4
Environmental matters (1) 0.7 7.5 1.0 17.8
Cost reduction and other expenses (3) 1.3 4.8 10.0 3.1
Non-cash share based expense 4.6 4.1 11.1 8.7
Other (income) expense, net adjustment (4) (2.7) 5.4 12.9 9.3
Adjusted EBITDA $ 58.4 $ 50.3 $ 123.7 $ 148.5
(1) Included in other (expense), net on the consolidated statements of income (loss).
(2) Included in selling, general and administrative expenses and other (expense), net within the consolidated statements of income (loss). For the six months ended June 30, 2024, certain legal matters includes a net gain of $14.9 million related to a favorable judgement received in a Brazilian services tax matter.
(3) Reduced for depreciation and amortization included above.
(4) Other expense, net as reported on the consolidated statements of income (loss) less pension and postretirement expense, interest income and items included in certain legal and environmental matters, cost reduction and other expenses.
Three Months Ended Six Months Ended
June 30, June 30,
2024 2023 2024 2023
Revenue $ 478.2 $ 476.8 $ 966.0 $ 993.2
Net loss attributable to Unisys Corporation as a percentage of revenue (2.5) % (8.4) % (16.7) % (21.7) %
Non-GAAP net income (loss) attributable to Unisys Corporation as a 2.3 % (1.3) % 1.4 % 2.9 %
percentage of revenue
Adjusted EBITDA as a percentage of revenue 12.2 % 10.5 % 12.8 % 15.0 %
UNISYS CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP
(Unaudited)
(Millions)
OPERATING PROFIT
Three Months Ended Six Months Ended
June 30, June 30,
2024 2023 2024 2023
Operating profit $ 23.6 $ 0.1 $ 41.3 $ 50.0
Certain legal matters (1) 3.1 8.7 10.4 14.4
Cost reduction and other expenses (2) 2.3 7.1 11.3 11.3
Pension and postretirement expense (1) 0.3 0.4 0.7 0.7
Non-GAAP operating profit $ 29.3 $ 16.3 $ 63.7 $ 76.4
Revenue $ 478.2 $ 476.8 $ 966.0 $ 993.2
Operating profit percent 4.9 % — % 4.3 % 5.0 %
Non-GAAP operating profit percent 6.1 % 3.4 % 6.6 % 7.7 %
(1) Included in selling, general and administrative on the consolidated statements of income (loss).
(2) Included in cost of revenue, selling, general and administrative and research and development 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,
2024 2023 2024 2023
Revenue $ 478.2 $ 476.8 $ 966.0 $ 993.2
L&S revenue 82.1 80.8 175.3 217.7
Ex-L&S Non-GAAP revenue $ 396.1 $ 396.0 $ 790.7 $ 775.5
Gross profit $ 129.9 $ 115.8 $ 265.9 $ 274.8
L&S gross profit 55.7 52.4 120.5 158.9
Ex-L&S Non-GAAP gross profit $ 74.2 $ 63.4 $ 145.4 $ 115.9
Gross profit percent 27.2 % 24.3 % 27.5 % 27.7 %
Ex-L&S Non-GAAP gross profit percent 18.7 % 16.0 % 18.4 % 14.9 %
SOURCE Unisys Corporation
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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