Unisys Announces
Fourth-Quarter and Full Year 2015 Financial Results
BLUE BELL, Pennsylvania,
Jan. 28, 2016 -- Unisys
Corporation (NYSE: UIS) today reported fourth quarter and full year
2015 results.
4Q 2015:
- Revenue of $790
million
- Operating profit margin of 2.0 percent; 12.1
percent(1) before cost reduction charges and other
expense of $53 million and pension
expense of $27 million
- Diluted earnings per share of $0.02
- Non-GAAP diluted earnings per share(2) of
$1.58
Full Year 2015:
- Revenue of $3,015
million
- Operating profit margin of (1.8) percent; 5.8 percent before
cost reduction charges and other expense of $123 million and pension expense of $109 million
- Diluted loss per share of ($2.20)
- Non-GAAP diluted earnings per share of $2.26
"Our progress as a provider of higher-value, industry-focused IT
solutions continues," said Unisys President and CEO Peter Altabef. "Our efforts to reduce costs,
sharpen our market focus and enhance our offerings continued to
improve our competitiveness and positioning in the marketplace. In
the fourth quarter, services revenue continued to grow in constant
currency, our non-GAAP operating profitability improved, we made a
number of critical leadership additions, and our Stealth offering
continued to gain traction."
Summary of Business Results
- Fourth quarter 2015
- Company:
- Revenue of $790 million declined
13 percent year-over-year; down 6 percent in constant
currency(3) as Services revenue growth in constant
currency was offset by lower Technology revenue.
- Overall operating profit margin of 2.0 percent includes cost
reduction charges and other expense and pension expense. Fourth
quarter 2015 non-GAAP operating profit margin was 12.1 percent, an
increase of 100 basis points from the prior year.
- Services:
- Service revenue, which represented 82 percent of total revenue,
declined by 6 percent, growing 2 percent in constant currency; the
fourth consecutive quarter of year-over-year growth in constant
currency principally reflected higher Application Services
revenue.
- Services operating profit margin was 3.6 percent, an increase
of 20 basis points from the prior year, reflecting the benefit of
cost reduction actions taken in 2015.
- Technology:
- Technology revenue, which represented 18 percent of total
revenue, declined 35 percent, down 30 percent in constant currency,
reflecting reduced ClearPath Forward™ revenue, which
can vary significantly from quarter-to-quarter based on the timing
of license renewals, and lower sales of low-margin third party
equipment.
- Operating profit margin improved to 46.8 percent from 36.1
percent in the prior year due to a higher proportion of software
revenue and the benefit of operating cost reductions.
- Full Year 2015
- Company:
- Revenue of $3,015 million
declined 10 percent year-over-year; down 2 percent in constant
currency, reflecting lower Technology revenue.
- Overall operating profit margin of (1.8) percent includes cost
reduction charges and other expense and pension expense.
- Services:
- Services revenue, which represented 86 percent of total
revenue, declined by 6 percent, growing 2 percent in constant
currency. The growth in constant currency principally reflected
higher Application Services revenue.
- Services operating profit margin was 2.3 percent, a decrease of
110 basis points from the prior year, reflecting the impact of
currency, which offset the benefit of cost reduction actions taken
in 2015.
- Technology:
- Technology revenue, which represented 14 percent of total
revenue, declined 28 percent, down 22 percent in constant currency,
reflecting reduced ClearPath Forward™ revenue and lower
sales of low-margin third party equipment.
- Technology operating profit margin improved to 24.8 percent
from 21.9 percent in the prior year due to operating cost
reductions.
Cash Flow
- Fourth quarter 2015 free cash flow(4) of
$63 million rose 73 percent
year-over-year due principally to lower capital expenditures.
Adjusted free cash flow(5) in fourth quarter 2015
doubled from the prior year to $117
million.
- Full year 2015 free cash flow usage of $213 million, an increase of $121 million from 2014, included $59 million in cost reduction payments and the
impact of $48 million in delayed
receivable payments from a large Public Sector client, which were
not received until January 2016.
Adjusted free cash flow usage of $6
million in 2015 declined $98
million from 2014.
- The company ended 2015 with $365
million in cash.
2016 Outlook
- Unisys will discuss the 2016 outlook during the quarterly
earnings conference call.
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 Web site 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.
Non-GAAP Information
Unisys reports its results in accordance with Generally Accepted
Accounting Principles (GAAP) in the
United States. However, in an effort to provide investors
with additional perspective regarding the company's results as
determined by GAAP, the company also discusses, in its earnings
press release and/or earnings presentation materials, non-GAAP
information which management believes provides useful information
to investors. Management uses supplemental non-GAAP financial
measures internally to understand, manage and evaluate the business
and assess operational alternatives.
Non-GAAP measures are not intended to be considered in isolation
or as substitutes for results determined in accordance with GAAP
and should be read only in conjunction with our consolidated
financial statements prepared in accordance with GAAP. (See GAAP to
non-GAAP reconciliations attached.)
(1) Non-GAAP operating profit – During the
fourth quarter and full year 2015, Unisys recorded pretax pension
expense and a pretax charge in connection with cost reduction
actions and other expense. In order to provide investors with
additional understanding of the company's operating results, these
changes are excluded from the operating profit.
(2) Non-GAAP diluted earnings per share
– During the fourth quarter and full year 2015, Unisys recorded
pension expense, net of tax, and a charge, net of tax, in
connection with cost reduction actions and other expense. In an
effort to provide investors with a perspective on the company's
earnings without these charges, they are excluded from the non-GAAP
diluted earnings/loss per share calculations.
(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) Free cash flow – The company defines free
cash flow as cash flow from operations less capital expenditures.
Management believes this measure gives investors an additional
perspective on cash flow from operating activities in excess of
amounts required for reinvestment.
(5) Adjusted free cash flow – Adjusted free
cash flow provides free cash flow before the company's pension
contributions or cost reduction payments in an effort to provide
investors with a perspective on the company's free cash flow
generation before these items.
About Unisys
Unisys is a global information technology company that works with
many of the world's largest companies and government organizations
to solve their most pressing IT and business challenges. Unisys
specializes in providing integrated, leading-edge solutions to
clients in the government, financial services and commercial
markets. With more than 20,000 employees serving clients around the
world, Unisys offerings include cloud and infrastructure services,
application services, security solutions, and high-end server
technology. For more information, visit http://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, 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. Risks and uncertainties that could affect the
company's future results include the company's ability to
effectively anticipate and respond to volatility and rapid
technological innovation in its industry; the company's ability to
maintain and grow its technology business; the company's ability to
improve margins in its services business; the company's ability to
drive efficiencies across all of its operations; the company's
significant pension obligations and requirements to make
significant cash contributions to its defined benefit plans;
financial market conditions that may inhibit the company's ability
to access capital and credit markets to address its liquidity
needs; the company's ability to attract, motivate and retain
experienced and knowledgeable personnel in key positions; the
potential adverse effects of aggressive competition in the
information services and technology marketplace; the company's
ability to retain significant clients; the company's contracts may
not be as profitable as expected or provide the expected level of
revenues; cybersecurity breaches could result in significant costs
and could harm the company's business and reputation; a significant
disruption in the company's IT systems could adversely affect the
company's business and reputation; the company may face damage to
its reputation or legal liability if its clients are not satisfied
with its services or products; the performance and capabilities of
third parties with whom the company has commercial relationships;
the adverse effects of global economic conditions, acts of war,
terrorism or natural disasters; contracts with U.S. governmental
agencies may subject the company to audits, criminal penalties,
sanctions and other expenses and fines; the risks of doing business
internationally when a significant portion of the company's revenue
is derived from international operations; the potential for
intellectual property infringement claims to be asserted against
the company or its clients; the possibility that pending litigation
could affect the company's results of operations or cash flow; the
business and financial risk in implementing future dispositions or
acquisitions; and the company's consideration of all available
information following the end of the year and before the filing of
the Form 10-K 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.: 0128/9388
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.
UNISYS
CORPORATION |
CONSOLIDATED
STATEMENTS OF INCOME |
(Unaudited) |
(Millions, except
per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months |
|
Year |
|
|
|
|
Ended December
31 |
|
Ended December
31 |
|
|
|
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
Revenue |
|
|
|
|
|
|
|
|
|
Services |
|
$649.1 |
|
$688.7 |
* |
$2,605.6 |
|
$2,785.7 |
* |
Technology |
|
140.8 |
|
217.1 |
* |
409.5 |
|
570.7 |
* |
|
|
|
789.9 |
|
905.8 |
|
3,015.1 |
|
3,356.4 |
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
Services |
|
592.0 |
|
573.9 |
* |
2,306.7 |
|
2,337.8 |
* |
Technology |
|
38.9 |
|
87.2 |
* |
167.5 |
|
240.8 |
* |
|
|
|
630.9 |
|
661.1 |
|
2,474.2 |
|
2,578.6 |
|
Selling, general and
administrative |
|
130.0 |
|
144.0 |
|
519.6 |
|
554.1 |
|
Research and development |
|
13.2 |
|
18.3 |
|
76.4 |
|
68.8 |
|
|
|
|
774.1 |
|
823.4 |
|
3,070.2 |
|
3,201.5 |
|
Operating profit (loss) |
|
15.8 |
|
82.4 |
|
(55.1) |
|
154.9 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
3.6 |
|
2.6 |
|
11.9 |
|
9.2 |
|
Other income (expense), net |
|
0.2 |
|
8.8 |
|
8.2 |
|
(0.2) |
|
Income (loss) before income
taxes |
|
12.4 |
|
88.6 |
|
(58.8) |
|
145.5 |
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
11.1 |
|
23.9 |
|
44.4 |
|
86.2 |
|
Consolidated net income
(loss) |
|
1.3 |
|
64.7 |
|
(103.2) |
|
59.3 |
|
Net income attributable to |
|
|
|
|
|
|
|
|
|
|
noncontrolling interests |
|
0.2 |
|
2.9 |
|
6.7 |
|
12.6 |
|
Net income (loss) attributable to
Unisys |
|
|
|
|
|
|
|
|
|
Corporation |
|
1.1 |
|
61.8 |
|
(109.9) |
|
46.7 |
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock dividend |
|
- |
|
- |
|
- |
|
2.7 |
|
Net income (loss) attributable to
Unisys |
|
|
|
|
|
|
|
|
|
Corporation common shareholders |
|
$1.1 |
|
$61.8 |
|
($109.9) |
|
$44.0 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common
share |
|
|
|
|
|
|
|
|
|
|
attributable to Unisys Corporation |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ .02 |
|
$ 1.24 |
|
($ 2.20) |
|
$ .89 |
|
|
Diluted |
|
$ .02 |
|
$ 1.24 |
|
($ 2.20) |
|
$ .89 |
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in the per share
computations (thousands): |
|
|
|
|
|
|
|
Basic |
|
49,937 |
|
49,689 |
|
49,905 |
|
49,280 |
|
Diluted |
|
50,049 |
|
49,948 |
|
49,905 |
|
49,584 |
|
|
|
|
|
|
|
|
|
|
|
|
* Changed to conform with the 2015
presentation. |
|
|
|
|
|
|
|
|
UNISYS
CORPORATION |
SEGMENT
RESULTS |
(Unaudited) |
(Millions) |
|
|
|
|
|
|
|
|
|
Total |
|
Eliminations |
|
Services |
|
Technology |
Three Months Ended |
|
|
|
|
|
|
|
December 31, 2015 |
|
|
|
|
|
|
|
Customer revenue |
$789.9 |
|
|
|
$649.1 |
|
$140.8 |
Intersegment |
|
|
($8.4) |
|
- |
|
8.4 |
Total revenue |
$789.9 |
|
($8.4) |
|
$649.1 |
|
$149.2 |
|
|
|
|
|
|
|
|
Gross profit percent |
20.1% |
|
|
|
16.2% |
|
68.4% |
Operating profit percent |
2.0% |
|
|
|
3.6% |
|
46.8% |
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
December 31, 2014 * |
|
|
|
|
|
|
|
Customer revenue |
$905.8 |
|
|
|
$688.7 |
|
$217.1 |
Intersegment |
|
|
($35.5) |
|
- |
|
35.5 |
Total revenue |
$905.8 |
|
($35.5) |
|
$688.7 |
|
$252.6 |
|
|
|
|
|
|
|
|
Gross profit percent |
27.0% |
|
|
|
17.9% |
|
58.2% |
Operating profit percent |
9.1% |
|
|
|
3.4% |
|
36.1% |
|
|
|
|
|
|
|
|
Year Ended |
|
|
|
|
|
|
|
December 31, 2015 |
|
|
|
|
|
|
|
Customer revenue |
$3,015.1 |
|
|
|
$2,605.6 |
|
$409.5 |
Intersegment |
|
|
($49.0) |
|
0.1 |
|
48.9 |
Total revenue |
$3,015.1 |
|
($49.0) |
|
$2,605.7 |
|
$458.4 |
|
|
|
|
|
|
|
|
Gross profit percent |
17.9% |
|
|
|
15.8% |
|
55.3% |
Operating profit (loss) percent |
(1.8%) |
|
|
|
2.3% |
|
24.8% |
|
|
|
|
|
|
|
|
Year Ended |
|
|
|
|
|
|
|
December 31, 2014 * |
|
|
|
|
|
|
|
Customer revenue |
$3,356.4 |
|
|
|
$2,785.7 |
|
$570.7 |
Intersegment |
|
|
($58.4) |
|
0.3 |
|
58.1 |
Total revenue |
$3,356.4 |
|
($58.4) |
|
$2,786.0 |
|
$628.8 |
|
|
|
|
|
|
|
|
Gross profit percent |
23.2% |
|
|
|
17.4% |
|
55.3% |
Operating profit percent |
4.6% |
|
|
|
3.4% |
|
21.9% |
|
|
|
|
|
|
|
|
* Changed to conform with the 2015
presentation. |
|
|
|
|
|
|
UNISYS
CORPORATION |
CONSOLIDATED BALANCE
SHEETS |
(Unaudited) |
(Millions) |
|
|
|
|
|
|
|
|
December
31, |
|
December
31, |
|
|
|
2015 |
|
2014 |
|
Assets |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
|
$365.2 |
|
$494.3 |
|
Accounts and notes receivable,
net |
|
581.6 |
|
619.3 |
|
Inventories |
|
|
|
|
|
|
Parts and finished equipment |
|
20.9 |
|
22.2 |
|
|
Work in process and materials |
|
22.9 |
|
24.5 |
|
Deferred income taxes |
|
24.1 |
|
16.4 |
|
Prepaid expense and other current
assets |
|
121.0 |
|
140.6 |
|
Total |
|
1,135.7 |
|
1,317.3 |
|
|
|
|
|
|
|
Properties |
|
876.6 |
|
1,059.4 |
|
Less accumulated depreciation and
amortization |
|
722.8 |
|
890.7 |
|
Properties, net |
|
153.8 |
|
168.7 |
|
Outsourcing assets, net |
|
182.0 |
|
150.9 |
|
Marketable software, net |
|
138.5 |
|
144.1 |
|
Prepaid postretirement assets |
|
45.1 |
|
19.9 |
|
Deferred income taxes |
|
114.5 |
|
154.6 |
|
Goodwill |
|
177.4 |
|
183.9 |
|
Other long-term assets |
|
196.2 |
|
209.3 |
|
Total |
|
$2,143.2 |
|
$2,348.7 |
|
|
|
|
|
|
|
Liabilities and deficit |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Notes payable |
|
$65.8 |
|
$0.0 |
|
Current maturities of long-term
debt |
|
11.0 |
|
1.8 |
|
Accounts payable |
|
219.3 |
|
262.5 |
|
Deferred revenue |
|
335.1 |
|
348.3 |
|
Other accrued liabilities |
|
339.3 |
|
385.1 |
|
Total |
|
970.5 |
|
997.7 |
|
|
|
|
|
|
|
Long-term debt |
|
235.5 |
|
222.2 |
|
Long-term postretirement
liabilities |
|
2,111.3 |
|
2,369.9 |
|
Long-term deferred revenue |
|
123.3 |
|
119.5 |
|
Other long-term liabilities |
|
81.2 |
|
91.8 |
|
Commitments and contingencies |
|
|
|
|
|
Total deficit |
|
(1,378.6) |
|
(1,452.4) |
|
Total |
|
$2,143.2 |
|
$2,348.7 |
|
|
|
|
|
|
|
UNISYS
CORPORATION |
CONSOLIDATED
STATEMENTS OF CASH FLOWS |
(Unaudited) |
(Millions) |
|
|
|
|
|
|
|
|
Year
Ended |
|
|
|
December
31 |
|
|
|
2015 |
|
2014 |
|
Cash flows from operating
activities |
|
|
|
|
|
Consolidated net (loss) income |
|
($103.2) |
|
$59.3 |
|
Add (deduct) items to reconcile
consolidated net (loss) |
|
|
|
|
|
|
income to net cash provided by operating
activities: |
|
|
|
|
|
Foreign currency transaction loss |
|
8.4 |
|
7.4 |
|
Employee stock compensation |
|
9.4 |
|
10.4 |
|
Depreciation and amortization of
properties |
|
57.5 |
|
52.0 |
|
Depreciation and amortization of
outsourcing assets |
|
55.7 |
|
58.1 |
|
Amortization of marketable
software |
|
66.9 |
|
58.5 |
|
Other non-cash operating
activities |
|
4.6 |
|
7.8 |
|
Disposals of capital assets |
|
9.7 |
|
1.8 |
|
Gain on sale of business |
|
- |
|
(0.7) |
|
Pension contributions |
|
(148.3) |
|
(183.4) |
|
Pension expense |
|
108.7 |
|
73.8 |
|
Decrease in deferred income taxes,
net |
|
1.2 |
|
24.8 |
|
Increase in receivables, net |
|
(11.5) |
|
(14.3) |
|
(Increase) decrease in
inventories |
|
(3.7) |
|
6.3 |
|
(Decrease) increase in accounts
payable and other accrued liabilities |
|
(61.1) |
|
14.4 |
|
Decrease in other liabilities |
|
(7.5) |
|
(31.1) |
|
Decrease (increase) in other
assets |
|
14.4 |
|
(23.7) |
|
Net cash provided by operating
activities |
|
1.2 |
|
121.4 |
|
|
|
|
|
|
|
Cash flows from investing
activities |
|
|
|
|
|
|
Proceeds from investments |
|
3,831.6 |
|
5,654.0 |
|
|
Purchases of investments |
|
(3,806.2) |
|
(5,640.3) |
|
|
Investment in marketable software |
|
(62.1) |
|
(73.6) |
|
|
Capital additions of properties |
|
(49.6) |
|
(53.3) |
|
|
Capital additions of outsourcing assets |
|
(102.0) |
|
(85.9) |
|
|
Other |
|
10.4 |
|
3.8 |
|
Net cash used for investing
activities |
|
(177.9) |
|
(195.3) |
|
|
|
|
|
|
|
Cash flows from financing
activities |
|
|
|
|
|
|
Purchases of common stock |
|
- |
|
(35.7) |
|
|
Payments of long-term debt |
|
(10.4) |
|
- |
|
|
Dividends paid on preferred shares |
|
- |
|
(4.0) |
|
|
Proceeds from exercise of stock options |
|
3.7 |
|
3.4 |
|
|
Proceeds from issuance of long-term debt |
|
31.8 |
|
- |
|
|
Net proceeds from short-term borrowings |
|
65.8 |
|
- |
|
|
Financing fees |
|
(0.3) |
|
(0.6) |
|
Net cash provided by (used for)
financing activities |
|
90.6 |
|
(36.9) |
|
|
|
|
|
|
|
Effect of exchange rate changes on
cash and cash equivalents |
|
(43.0) |
|
(34.7) |
|
|
|
|
|
|
|
Decrease in cash and cash
equivalents |
|
(129.1) |
|
(145.5) |
|
Cash and cash equivalents,
beginning of period |
|
494.3 |
|
639.8 |
|
Cash and cash equivalents, end of
period |
|
$365.2 |
|
$494.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
( 1 ) |
UNISYS
CORPORATION |
RECONCILIATION OF
SELECTED GAAP MEASURES TO NON-GAAP MEASURES |
(Unaudited) |
(Millions, except
per share data) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
|
December 31, 2015 |
|
December 31, 2015 |
GAAP net income (loss) |
|
|
|
|
attributable to Unisys
Corporation |
|
|
|
|
common shareholders |
|
$1.1 |
|
($109.9) |
|
|
|
|
|
|
Cost reduction and other expense, net
of tax |
51.5 |
|
116.5 |
|
|
|
|
|
|
Pension expense, net of tax |
|
26.7 |
|
106.6 |
|
|
|
|
|
|
Non-GAAP net income |
|
|
|
|
attributable to Unisys
Corporation |
|
|
|
|
common shareholders |
|
79.3 |
|
113.2 |
|
|
|
|
|
|
Add preferred stock dividend |
|
0.0 |
|
0.0 |
|
|
|
|
|
|
Non-GAAP net income |
|
|
|
|
attributable to Unisys
Corporation |
|
|
|
|
for diluted earnings per
share |
|
$79.3 |
|
$113.2 |
|
|
|
|
|
|
Weighted average shares
(thousands) |
|
49,937 |
|
49,905 |
|
|
|
|
|
|
Plus incremental shares from assumed
conversion: |
|
|
|
|
Employee stock plans |
|
112 |
|
150 |
|
Preferred stock |
|
0 |
|
0 |
|
|
|
|
|
|
GAAP adjusted weighted average
shares |
|
50,049 |
|
50,055 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share |
|
|
|
|
|
|
|
|
|
|
GAAP basis |
|
|
|
|
GAAP net income (loss) |
|
|
|
|
attributable to Unisys
Corporation |
|
|
|
|
for diluted earnings per
share |
|
$1.1 |
|
($109.9) |
|
|
|
|
|
|
Divided by adjusted weighted average
shares |
50,049 |
|
49,905 |
|
|
|
|
|
|
GAAP earnings (loss) per diluted
share |
|
$ .02 |
|
($ 2.20) |
|
|
|
|
|
|
Non-GAAP basis |
|
|
|
|
Non-GAAP net income |
|
|
|
|
attributable to Unisys
Corporation |
|
|
|
|
for diluted earnings per
share |
|
$79.3 |
|
$113.2 |
|
|
|
|
|
|
Divided by Non-GAAP adjusted weighted
average shares |
50,049 |
|
50,055 |
|
|
|
|
|
|
Non-GAAP earnings per diluted
share |
|
$ 1.58 |
|
$ 2.26 |
|
|
|
|
|
|
(2) |
UNISYS
CORPORATION |
RECONCILIATION OF
GAAP OPERATING PROFIT TO NON-GAAP OPERATING PROFIT |
(Unaudited) |
(Millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months |
|
Year |
|
|
|
Ended December
31 |
|
Ended December
31 |
|
|
|
2015 |
|
2014 |
|
2015 |
|
2014 |
GAAP operating profit
(loss) |
|
$15.8 |
|
$82.4 |
|
($55.1) |
|
$154.9 |
|
|
|
|
|
|
|
|
|
|
Cost reduction and other expense |
|
52.5 |
|
0.0 |
|
122.5 |
|
0.0 |
|
|
|
|
|
|
|
|
|
|
FAS87 pension expense |
|
27.2 |
|
18.3 |
|
108.7 |
|
73.8 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating profit |
|
$95.5 |
|
$100.7 |
|
$176.1 |
|
$228.7 |
|
|
|
|
|
|
|
|
|
|
Customer Revenue |
|
$789.9 |
|
$905.8 |
|
$3,015.1 |
|
$3,356.4 |
GAAP operating profit (loss)
% |
|
2.0% |
|
9.1% |
|
(1.8%) |
|
4.6% |
Non-GAAP operating profit
% |
|
12.1% |
|
11.1% |
|
5.8% |
|
6.8% |
|
|
|
|
|
|
|
|
|
|
(3) |
UNISYS
CORPORATION |
RECONCILIATION OF
GAAP TO NON-GAAP |
(Unaudited) |
(Millions) |
|
|
|
|
|
|
|
|
|
|
FREE CASH FLOW |
|
|
|
Three
Months |
|
Year |
|
|
|
Ended December
31 |
|
Ended December
31 |
|
|
|
2015 |
|
2014 |
|
2015 |
|
2014 |
Cash provided by operations |
|
$109.7 |
|
$105.5 |
|
$1.2 |
|
$121.4 |
Additions to marketable software |
|
(15.3) |
|
(17.5) |
|
(62.1) |
|
(73.6) |
Additions to properties |
|
(9.4) |
|
(11.4) |
|
(49.6) |
|
(53.3) |
Additions to outsourcing assets |
|
(21.6) |
|
(40.0) |
|
(102.0) |
|
(85.9) |
Free cash flow |
|
63.4 |
|
36.6 |
|
(212.5) |
|
(91.4) |
Pension funding |
|
32.7 |
|
22.1 |
|
148.3 |
|
183.4 |
Cost reduction funding |
|
20.9 |
|
- |
|
58.5 |
|
- |
Free cash flow before pension &
cost reduction funding |
|
$117.0 |
|
$58.7 |
|
($5.7) |
|
$92.0 |
SOURCE: Unisys Corporation
CONTACT: Investor Contact: Niels Christensen,
215-986-6651, Niels.Christensen@unisys.com; or Media Contact:
Bruce Hight, 512-944-2032,
bruce.hight@hkstrategies.com