Unisys Announces
First-Quarter 2017 Financial Results, Re-affirms Full-Year
Financial Guidance
BLUE BELL, Pa., April 24, 2017 --
1Q 2017:
- Operating profit margin was (0.4) percent, up 370 basis
points year over year
- Non-GAAP operating profit(4) margin was 6
percent, up 340 basis points year over year
- Revenue was roughly flat year over year at $665 million versus $667
million in the prior-year period
- Net loss attributable to Unisys Corporation common
shareholders was $(33) million,
relative to $(40) million in the
prior-year period
- Adjusted EBITDA(5) was $84
million, an increase of 41 percent year over year; Adjusted
EBITDA margin was 13 percent, an increase of 370 basis points year
over year
- Diluted loss per share of $(0.65), versus $(0.80) in the prior-year period; Non-GAAP
diluted earnings per share(7) of $0.30 versus $0.11
in the prior-year period
- Unisys reaffirms full-year guidance for revenue of
$2.65-2.75 billion, non-GAAP
operating profit margin of 7.25-8.25 percent and adjusted free cash
flow of $130-170 million
Unisys Corporation (NYSE: UIS) today reported first-quarter 2017
financial results. Operating profit margin was up year over year,
and revenue was relatively flat versus the prior-year period.
Additionally, the company saw strong contract signings during the
quarter, with Total Contract Value(1) (TCV)
signed up 26 percent year over year.
"Our first-quarter results indicate continued progress executing
against our strategic and financial goals, including margin
expansion and improvement of revenue trends via our vertical
go-to-market strategy," said Unisys President and CEO Peter Altabef. "We intend to continue our
disciplined financial focus over the remainder of the year but are
pleased with our strong start in the first quarter. We are also
pleased to have enhanced our liquidity position by recently raising
$440 million in a senior secured
notes offering."
Summary of First-Quarter 2017 Business
Results
Company:
Revenue for the quarter of $665
million was roughly flat relative to $667 million in the first quarter 2016 and was
also roughly flat year over year on a
constant-currency(2) basis.
First-quarter 2017 operating profit margin of (0.4) percent,
which includes cost-reduction and other charges and pension
expense, was up 370 basis points year over year. Non-GAAP operating
profit margin was 6 percent, up 340 basis points versus the first
quarter 2016.
Net loss attributable to Unisys Corporation common shareholders
for the quarter was $(33) million, an
improvement relative to $(40) million
in the prior-year period. Adjusted EBITDA for the quarter was
$84 million, which was up 41 percent
year over year. Adjusted EBITDA margin for the quarter was 13
percent, up 370 basis points year over year.
In the first quarter 2017, operating cash flow decreased by
$67 million year over year to
$(41) million. The company generated
free cash flow(3) of $(76)
million for the quarter, a reduction of $66 million year over year. Adjusted free cash
flow(6) for the quarter of $(26) million decreased $66 million from the prior-year period.
Reductions in cash flow year over year were largely due to a
$40 million payment from a client
received in the first quarter of 2016 that had been due in the
fourth quarter of 2015, along with several other timing issues
related to the collection of receivables.
At March 31, 2017, the company had
$302 million in cash. In April 2017, the company raised $440 million of capital through a high-yield
notes offering. The company has paid the trustee the amount
necessary to discharge the remaining portion of Senior Notes due
2017 outstanding at the time of the offering and expects to redeem
them by May 6, 2017. Pro forma for
the offering and redemption, the company would have had
$635 million in cash as of
March 31, 2017.
Services:
Services revenue, which represented 88 percent of first-quarter
total revenue, declined by 2 percent as reported and in constant
currency to $585 million. Services
backlog ended the quarter at $3.7
billion, versus $3.9 billion
last quarter. Services gross margin was up 400 basis points versus
the first quarter 2016 at 18 percent, reflecting ongoing efforts to
enhance the efficiency of the Services business and helped by a
particularly profitable transaction. Services operating profit
margin was up 400 basis points to 5 percent.
Technology:
Technology revenue, which represented 12 percent of total
revenue, was up 10 percent year over year to $79 million, up 7 percent in constant currency.
Technology gross margin was down slightly to 47 percent from 49
percent in the prior-year period. Technology operating profit
margin was down to 15 percent from 18 percent in the prior-year
period.
Continued Execution on Business
Strategy
The company in the first quarter entered into several key
contracts in each of its sectors of focus:
- U.S. Federal: The U.S. Internal Revenue Service (IRS) selected
Unisys to continue its work updating, operating and maintaining the
system used by the U.S. government to verify and monitor excise
fuel tax filings.
- Public: New Zealand Transport Agency (NZTA) has renewed with
Unisys to support their driver and vehicle registry platform.
- Commercial: Unisys announced a contract with Catholic Health
Initiatives (CHI), the nation's third-largest nonprofit health
system, to provide service support and end-user services for CHI's
90,000-plus employees across the United
States. It was Unisys' largest contract of the quarter.
- Financial Services: Unisys signed a new agreement with the
largest financial services group in Latin
America, to provide automation services for its branch
network, as well as maintenance and support services for the bank's
ATMs throughout Brazil. It was
Unisys' largest financial services contract of the quarter.
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.
(1) Total Contract Value - TCV is the
estimated total contractual revenue related to signed contracts
including option years and without regard for cancellation.
(2) 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.
Non-GAAP and Other Information
Although appropriate under generally accepted accounting
principles (GAAP), the company's results reflect charges that the
company believes are not indicative of its ongoing operations and
that can make its profitability and liquidity results difficult to
compare to prior periods, anticipated future periods, or to its
competitors' results. These items consist of pension 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.
(3) 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 required for reinvestment.
(4) Non-GAAP operating profit - The company
recorded pretax pension 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.
(5) 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 pension 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.
(6) Adjusted free cash flow - Because
inclusion of the company's pension contributions and cost-reduction
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 and is more
indicative of its on-going operations. This liquidity measure was
provided to analysts and investors in the form of external guidance
and is used by management to measure operating liquidity.
(7) Non-GAAP diluted earnings per share
- The company has recorded pension 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.
About Unisys
Unisys is a global information technology company that
specializes in providing industry-focused solutions integrated with
leading-edge security to clients in the government, financial
services and commercial markets. Unisys offerings include security
solutions, advanced data analytics, cloud and infrastructure
services, application services and application and server software.
For more information, 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, total contract value 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 total contract value are based, in part, on the
assumption that all options of the contracts 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 the company's ability to effectively anticipate and respond
to volatility and rapid technological innovation in its industry;
the company's ability to improve margins in its services business;
the company's ability to sell new products while maintaining its
installed base in its technology business; the company's ability to
access financing markets to refinance its outstanding debt; the
company's ability to realize anticipated cost savings and to
successfully implement its cost reduction initiatives 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; the
company's ability to attract, motivate and retain experienced and
knowledgeable personnel in key positions; the risks of doing
business internationally when a significant portion of the
company's revenue is derived from international operations; 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 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 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.: 0424/9499
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, |
|
|
2017 |
|
2016 |
Revenue |
|
|
|
|
Services |
|
$ 585.3 |
|
$ 595.1 |
Technology |
|
79.2 |
|
71.7 |
|
|
664.5 |
|
666.8 |
Costs and expenses |
|
|
|
|
Cost of revenue: |
|
|
|
|
Services |
|
504.5 |
|
533.7 |
Technology |
|
39.8 |
|
34.6 |
|
|
544.3 |
|
568.3 |
Selling, general and administrative |
|
109.1 |
|
110.1 |
Research and development |
|
13.8 |
|
16.0 |
|
|
667.2 |
|
694.4 |
Operating profit (loss) |
|
(2.7) |
|
(27.6) |
Interest expense |
|
5.7 |
|
4.4 |
Other income (expense), net |
|
(8.4) |
|
(1.2) |
Income (loss) before income taxes |
|
(16.8) |
|
(33.2) |
Provision for income taxes |
|
12.9 |
|
5.5 |
Consolidated net income (loss) |
|
(29.7) |
|
(38.7) |
Net income attributable to noncontrolling
interests |
|
3.0 |
|
1.2 |
Net income (loss) attributable to Unisys
Corporation common shareholders |
|
$(32.7) |
|
$ (39.9) |
Earnings (loss) per share attributable to Unisys
Corporation |
|
|
|
|
Basic |
|
$ (0.65) |
|
$ (0.80) |
Diluted |
|
$ (0.65) |
|
$ (0.80) |
Shares used in the per share computations (in
thousands) |
|
|
|
|
Basic |
|
50,256 |
|
50,004 |
Diluted |
|
50,256 |
|
50,004 |
UNISYS
CORPORATION |
SEGMENT
RESULTS |
(Unaudited) |
(Millions) |
|
|
|
|
|
|
|
|
|
|
|
Total |
|
Eliminations |
|
Services |
|
Technology |
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 |
|
18.1 % |
|
|
|
18.2 % |
|
46.6 % |
Operating profit (loss) percent |
|
(0.4)% |
|
|
|
4.7 % |
|
15.4 % |
Three Months Ended March 31, 2016 |
|
|
|
|
|
|
|
|
Customer revenue |
|
$ 666.8 |
|
|
|
$ 595.1 |
|
$ 71.7 |
Intersegment |
|
|
|
$
(5.6) |
|
— |
|
5.6 |
Total revenue |
|
$ 666.8 |
|
$ (5.6) |
|
$ 595.1 |
|
$ 77.3 |
Gross profit percent |
|
14.8 % |
|
|
|
14.2 % |
|
48.6 % |
Operating profit (loss) percent |
|
(4.1)% |
|
|
|
0.7 % |
|
18.1 % |
UNISYS
CORPORATION |
CONSOLIDATED BALANCE
SHEETS |
(Unaudited) |
(Millions) |
|
|
|
|
|
|
March 31, 2017 |
|
December 31, 2016 |
|
Assets |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
$ 302.0 |
|
$ 370.6 |
|
Accounts and notes receivable, net |
504.9 |
|
505.8 |
|
Inventories: |
|
|
|
|
Parts and finished equipment |
18.5 |
|
14.0 |
|
Work in process and materials |
10.9 |
|
15.0 |
|
Prepaid expenses and other current assets |
121.8 |
|
121.9 |
* |
Total |
958.1 |
|
1,027.3 |
* |
Properties |
902.5 |
|
886.6 |
|
Less-Accumulated depreciation and amortization |
749.2 |
|
741.3 |
|
Properties, net |
153.3 |
|
145.3 |
|
Outsourcing assets, net |
164.8 |
|
172.5 |
|
Marketable software, net |
135.1 |
|
137.0 |
|
Prepaid postretirement assets |
36.7 |
|
33.3 |
|
Deferred income taxes |
144.0 |
|
146.1 |
* |
Goodwill |
179.5 |
|
178.6 |
|
Restricted Cash |
33.5 |
|
30.5 |
* |
Other long-term assets |
157.3 |
|
151.0 |
* |
Total |
$ 1,962.3 |
|
$ 2,021.6 |
* |
Liabilities and deficit |
|
|
|
|
Current liabilities |
|
|
|
|
Current maturities of long-term-debt |
$ 106.3 |
|
$ 106.0 |
|
Accounts payable |
200.1 |
|
189.0 |
|
Deferred revenue |
333.3 |
|
337.4 |
|
Other accrued liabilities |
299.1 |
|
349.2 |
* |
Total |
938.8 |
|
981.6 |
* |
Long-term debt |
195.1 |
|
194.0 |
* |
Long-term postretirement liabilities |
2,258.5 |
|
2,292.6 |
|
Long-term deferred revenue |
110.6 |
|
117.6 |
|
Other long-term liabilities |
86.0 |
|
83.2 |
* |
Commitments and contingencies |
|
|
|
|
Total deficit |
(1,626.7) |
|
(1,647.4) |
|
Total |
$ 1,962.3 |
|
$ 2,021.6 |
* |
|
|
|
|
|
* Certain amounts have been reclassified to
conform to the current-year presentation. |
UNISYS
CORPORATION |
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS |
|
(Unaudited) |
|
(Millions) |
|
|
|
|
|
|
|
|
|
Three Months
Ended
March 31, |
|
|
|
2017 |
|
2016 * |
|
Cash flows from operating activities |
|
|
|
|
|
Consolidated net income (loss) |
|
$ (29.7) |
|
$ (38.7) |
|
Add (deduct) items to reconcile consolidated net loss
to net cash provided by
(used for) operating activities: |
|
|
|
|
|
Foreign currency transaction losses |
|
5.3 |
|
0.1 |
|
Non-cash interest expense |
|
2.0 |
|
0.7 |
|
Employee stock compensation |
|
3.7 |
|
3.2 |
|
Depreciation and amortization of properties |
|
10.1 |
|
9.6 |
|
Depreciation and amortization of outsourcing
assets |
|
12.9 |
|
11.1 |
|
Amortization of marketable software |
|
15.7 |
|
16.4 |
|
Other non-cash operating activities |
|
(1.1) |
|
0.3 |
|
Loss on disposal of capital assets |
|
3.8 |
|
0.3 |
|
Pension contributions |
|
(28.9) |
|
(31.6) |
|
Pension expense |
|
24.5 |
|
20.3 |
|
Decrease (increase) in deferred income taxes, net |
|
2.2 |
|
(6.9) |
|
(Increase) decrease in receivables, net |
|
0.1 |
|
69.4 |
|
Decrease (increase) in inventories |
|
0.1 |
|
(1.9) |
|
Decrease in accounts payable and other accrued
liabilities |
|
(50.0) |
|
(34.8) |
* |
(Decrease) increase in other liabilities |
|
(10.3) |
|
3.4 |
|
(Increase) Decrease in other assets |
|
(1.4) |
|
5.0 |
* |
Net cash (used for) provided by operating
activities |
|
(41.0) |
|
25.9 |
* |
Cash flows from investing activities |
|
|
|
|
|
Proceeds from investments |
|
1,218.9 |
|
1,365.0 |
|
Purchases of investments |
|
(1,211.5) |
|
(1,367.8) |
|
Investment in marketable software |
|
(13.8) |
|
(14.3) |
|
Capital additions of properties |
|
(8.5) |
|
(6.6) |
|
Capital additions of outsourcing assets |
|
(12.9) |
|
(15.1) |
|
Other |
|
(0.3) |
|
(0.2) |
* |
Net cash used for investing activities |
|
(28.1) |
|
(39.0) |
* |
Cash flows from financing activities |
|
|
|
|
|
Proceeds from issuance of long-term debt |
|
— |
|
190.0 |
|
Payments for capped call transactions |
|
— |
|
(24.3) |
|
Issuance costs relating to long-term debt |
|
— |
|
(6.2) |
|
Payments of long-term debt |
|
(0.7) |
|
(0.7) |
|
Other |
|
(2.1) |
|
(0.4) |
* |
Net cash provided by financing activities |
|
(2.8) |
|
158.4 |
* |
Effect of exchange rate changes on cash, cash
equivalents and restricted cash |
|
6.3 |
|
5.5 |
* |
Increase (decrease) in cash, cash equivalents and
restricted cash |
|
(65.6) |
|
150.8 |
* |
Cash, cash equivalents and restricted cash,
beginning of period |
|
401.1 |
|
396.8 |
* |
Cash, cash equivalents and restricted cash, end of
period |
|
$ 335.5 |
|
$ 547.6 |
* |
|
* Certain amounts have been reclassified to conform
with the 2017 presentation. |
UNISYS
CORPORATION |
RECONCILIATION OF
SELECTED GAAP MEASURES TO NON-GAAP MEASURES |
(Unaudited) |
(Millions, except
per share data) |
|
|
|
|
|
|
|
|
|
Three
Months |
|
|
|
Ended March
31, |
|
|
|
2017 |
|
2016 |
GAAP net income (loss) attributable to Unisys
Corporation common
shareholders |
|
$ (32.7) |
|
$ (39.9) |
|
|
|
|
|
|
Cost reduction and other expense: |
pretax |
|
25.4 |
|
26.9 |
|
tax provision (benefit) |
|
(0.5) |
|
(2.2) |
|
net of tax |
|
24.9 |
|
24.7 |
|
|
|
|
|
|
Pension Expense: |
pretax |
|
24.5 |
|
20.3 |
|
tax provision (benefit) |
|
0.2 |
|
0.3 |
|
net of tax |
|
24.7 |
|
20.6 |
|
|
|
|
|
|
Non-GAAP net income (loss) attributable to Unisys
Corporation common
shareholders |
|
16.9 |
|
5.4 |
|
|
|
|
|
|
Add interest expense on convertible notes |
|
4.7 |
|
— |
|
|
|
|
|
|
Non-GAAP net income (loss) attributable to Unisys
Corporation for diluted
earnings per share |
|
$ 21.6 |
|
$ 5.4 |
|
|
|
|
|
|
Weighted average shares (thousands) |
|
50,256 |
|
50,004 |
|
|
|
|
|
|
Plus incremental shares from assumed conversion: |
|
|
|
|
Employee stock plans |
|
388 |
|
134 |
|
Convertible notes |
|
21,868 |
|
— |
|
|
|
|
|
|
Non-GAAP adjusted weighted average shares |
|
72,511 |
|
50,138 |
|
|
|
|
|
|
Diluted earnings (loss) per share |
|
|
|
|
|
|
|
|
|
|
GAAP basis |
|
|
|
|
GAAP net income (loss) attributable to Unisys
Corporation for diluted earnings
per share |
|
$ (32.7) |
|
$ (39.9) |
|
|
|
|
|
|
Divided by adjusted weighted average shares |
|
50,256 |
|
50,004 |
|
|
|
|
|
|
GAAP diluted earnings (loss) per share |
|
$ (0.65) |
|
$ (0.80) |
|
|
|
|
|
|
Non-GAAP basis |
|
|
|
|
Non-GAAP net income (loss) attributable to Unisys
Corporation for diluted earnings
per share |
|
$ 21.6 |
|
$ 5.4 |
|
|
|
|
|
|
Divided by Non-GAAP adjusted weighted average
shares |
|
72,511 |
|
50,138 |
|
|
|
|
|
|
Non-GAAP diluted earnings (loss) per share |
|
$ 0.30 |
|
$ 0.11 |
UNISYS
CORPORATION |
RECONCILIATION OF
GAAP OPERATING PROFIT TO NON-GAAP OPERATING PROFIT |
(Unaudited) |
(Millions) |
|
|
|
|
|
|
|
|
|
|
Three
Months |
|
|
|
|
Ended March
31, |
|
|
|
|
2017 |
|
2016 |
|
GAAP operating profit (loss) |
|
$ (2.7) |
|
$ (27.6) |
|
|
|
|
|
|
|
|
Cost reduction and other expense |
|
20.1 |
|
26.9 |
|
|
|
|
|
|
|
|
FAS87 pension expense |
|
24.5 |
|
20.3 |
|
|
|
|
|
|
|
|
Non-GAAP operating profit (loss) |
|
$ 41.9 |
|
$ 19.6 |
|
|
|
|
|
|
|
|
Customer Revenue |
|
$ 664.5 |
|
$666.8 |
|
GAAP operating profit (loss) % |
|
(0.4)% |
|
(4.1)% |
|
Non-GAAP operating profit (loss) % |
|
6.3 % |
|
2.9 % |
|
UNISYS
CORPORATION |
RECONCILIATION OF
GAAP TO NON-GAAP |
(Unaudited) |
(Millions) |
|
|
|
|
|
|
|
FREE CASH
FLOW |
|
|
|
|
|
|
|
|
|
|
Three
Months |
|
|
|
|
Ended March
31, |
|
|
|
|
2017 |
|
2016 |
|
Cash provided by (used for) operations |
|
$ (41.0) |
|
$
25.9 |
|
Additions to marketable software |
|
(13.8) |
|
(14.3) |
|
Additions to properties |
|
(8.5) |
|
(6.6) |
|
Additions to outsourcing assets |
|
(12.9) |
|
(15.1) |
|
Free cash flow |
|
(76.2) |
|
(10.1) |
|
Pension funding |
|
28.9 |
|
31.6 |
|
Cost reduction and other payments |
|
21.2 |
|
18.0 |
|
Adjusted free cash flow |
|
$(26.1) |
|
$ 39.5 |
|
UNISYS
CORPORATION |
RECONCILIATION OF
GAAP TO NON-GAAP |
(Unaudited) |
(Millions) |
|
|
|
|
|
|
|
EBITDA |
|
|
|
|
|
|
|
|
|
|
Three
Months |
|
|
|
|
Ended March
31, |
|
|
|
|
2017 |
|
2016 |
|
Net income (loss) attributable to Unisys
Corporation common shareholders |
|
$ (32.7) |
|
$ (39.9) |
|
Net income attributable to noncontrolling
interests |
|
3.0 |
|
1.2 |
|
Interest expense, net of interest income of $2.4 and
$2.5 respectively * |
|
3.3 |
|
1.9 |
|
Provision for income taxes |
|
12.9 |
|
5.5 |
|
Depreciation |
|
23.0 |
|
20.7 |
|
Amortization |
|
15.7 |
|
16.4 |
|
EBITDA |
|
$ 25.2 |
|
$ 5.8 |
|
|
|
|
|
|
|
Pension Expense |
|
24.5 |
|
20.3 |
|
Cost reduction and other expense |
|
25.4 |
|
26.9 |
|
Non-cash share based expense |
|
3.7 |
|
3.2 |
|
Other (income) expense adjustment** |
|
5.5 |
|
3.7 |
|
Adjusted EBITDA |
|
$ 84.3 |
|
$ 59.9 |
|
|
|
|
|
|
|
|
* 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 Interest income and
items included in cost reduction and other expense |
CONTACT: Investors: Courtney
Holben, Unisys, 215-986-3379, courtney.holben@unisys.com or
Media: John Clendening, Unisys,
214-403-1981, john.clendening@unisys.com