TIDMUSY
Unisys Announces 4Q and FY21 Results
Company Achieves All 2021 Guidance Metrics and is Free Cash Flow-Positive for
Full Year
BLUE BELL, Pa., Feb. 21, 2022 --
FY21:
* Revenue grew 1.4% year over year ("YoY"), in line with guidance
* Operating profit grew 77.0% YoY; operating profit margin increased 320 bps
YoY
+ FY21 Non-GAAP operating profit(5) grew 25.6% YoY; non-GAAP operating
profit margin increased 180 bps YoY to 9.4%, in line with guidance
* Adjusted EBITDA(6) grew 15.3% YoY to $369.9M; adjusted EBITDA margin
increased 220 bps YoY to 18.0%, in line with guidance
* Cash from operations increased $813.7M to $132.5M; free cash flow(8)
increased $843.6M YoY to $32.3M; Adjusted free cash flow(9) increased
$129.6M YoY to $172.2M
* Company guides to revenue growth of 5 to 7% YoY, non-GAAP operating profit
margin of 9.5 to 10.5%, and adjusted EBITDA margin of 18.0 to 19.0% for
FY22
Unisys Corporation (NYSE: UIS) today reported fourth-quarter and full-year 2021
financial results. "We made advances on revenue, profit and cash flow during
2021," said Unisys Chair and CEO Peter A. Altabef. "In addition, our
investments in solutions, go-to-market, and workforce management planning
helped us achieve our financial goals in 2021 and have positioned us to advance
our momentum in 2022."
Summary of Full-Year 2021 Results
* Revenue:
+ Revenue grew 1.4% YoY to $2.054B vs. $2.026B in 2020, in line with
guidance
* Gross Profit:
+ Gross profit increased 18.4% YoY to $572.0M vs. $483.0M in 2020
+ Gross profit margin increased 400 bps YoY to 27.8% vs. 23.8% in 2020
* Operating Profit:
+ Operating profit increased 77.0% YoY to $154.0M vs. $87.0M in 2020
o Non-GAAP operating profit increased 25.6% YoY to $192.8M vs.
$153.5M in 2020
+ Operating profit margin increased 320 bps YoY to 7.5% vs. 4.3% in 2020
o Non-GAAP operating profit margin increased 180 bps to 9.4% (in line
with guidance) vs. 7.6% in 2020
* Adjusted EBITDA and Net Income:
+ Adjusted EBITDA increased 15.3% YoY to $369.9M vs. $320.8M in 2020
o Adjusted EBITDA margin increased 220 bps to 18.0% (in line with
guidance) vs. 15.8% in 2020
+ During 2021, the company undertook a number of liability management
initiatives that in combination reduced gross pension liabilities by
$1.2B, which required approximately $500M in total non-cash pre-tax
settlement charges. As a result, the company recorded a net loss from
continuing operations in the amount of $448.5M vs. a net loss of
$317.7M in 2020 (which included $142.1M of non-cash pre-tax settlement
charges)
o Net income margin was (21.8)% vs. (15.7)% in 2020, as a result of
the same non-cash charges
+ Non-GAAP net income from continuing operations increased 55.8%(7) YoY
to $117.5M vs. $75.4M in 2020
o Non-GAAP net income margin increased 200 bps YoY to 5.7% vs. 3.7%
in 2020
* Earnings Per Share from Continuing Operations:
+ The non-cash settlement charges referenced above related to reducing
gross pension liabilities amounted to $6.77 per share and resulted in a
loss per share from continuing operations in the amount of $6.75 vs. a
loss of $5.05 in 2020
+ Non-GAAP diluted earnings per share from continuing operations
increased 54.9% YOY to $1.75 vs. $1.13 in 2020.
* Cash Flow:
+ Cash from operations increased $813.7M YoY to $132.5M vs. $(681.2)M in
2020
+ Free cash flow increased $843.6M YoY to $32.3M vs. $(811.3)M in 2020
+ Adjusted free cash flow increased $129.6M YoY to $172.2M vs. $42.6M in
2020
* Pipeline, ACV and Backlog:
+ Total company pipeline(2) increased 5% YoY and was roughly flat
sequentially at $4.8B
+ Annual contract value ("ACV")(3) increased 11% YoY
+ Total company backlog(1) was flat sequentially at $3.0B
* Balance Sheet:
+ Net leverage(4) as of December 31, 2021 was 0.6x
+ As of December 31, 2021, total cash and cash equivalents was $553M
+ Based on calculations and actuarial assumptions as of December 31,
2021, no future cash contributions are required to the qualified U.S.
pension plans for at least the next 10 years; approximately $35M in
annual contributions required to all other plans from 2022 to 2026
+ The global GAAP pension deficit decreased by $283M as of December 31,
2021 to $753M vs. $1,036M as of December 31, 2020
FY21 Financial Highlights by Segment:
Digital Workplace Solutions ("DWS"), transforming digital workplaces and
end-user experiences:
* In 2021 the company evolved its DWS solution portfolio, expanding
user-experience offerings and exiting certain non-strategic contracts that
were not aligned to its targeted margin profile. This resulted in a decline
in revenue, but gross profit and gross margin increased for the year.
* DWS revenue was $567.0M vs. $588.3M in 2020, down 3.6% YoY
* DWS gross profit increased 38.0% YoY to $76.3M vs. $55.3M in 2020
+ DWS gross margin increased 410 bps YoY to 13.5% vs. 9.4% in 2020
Cloud and Infrastructure Solutions ("C&I"), driving modern IT service platforms
and cloud application development:
* C&I revenue grew 6.7% YoY to $496.5M vs. $465.2M in 2020
* C&I gross profit grew 144.0% YoY to $56.6M vs. $23.2M in 2020
+ C&I gross margin improved 640 bps YoY to 11.4% vs. 5.0% in 2020,
reflecting improvements to margins for both cloud and traditional
infrastructure solutions
Enterprise Computing Solutions ("ECS"), enabling digital services through
software-defined operating environments:
* ECS revenue grew 2.7% YoY to $677.5M vs. $659.7M in 2020
* ECS gross profit grew 14.1% YoY to $428.6M vs. $375.7M in 2020
+ ECS gross margin increased 620 bps YoY to 63.1% vs. 56.9% in 2020
Summary of Q4 2021 Results
* 4Q21 revenue faced a difficult compare with 4Q20, including as a result of
the ECS license renewal schedule which was more concentrated in the fourth
quarter of 2020, but results were in line with internal expectations, as
evidenced by achievement of FY21 revenue guidance.
+ Revenue was $539.3M vs. $576.9M in 2020, down 6.5% YoY
* The ECS license renewal schedule also resulted in lower profitability YoY
in the quarter, but as with revenue, overall profitability results were in
line with or slightly ahead of internal expectations, as evidenced by
achievement of non-GAAP operating profit margin and adjusted EBITDA margin
guidance for FY21
+ Gross Profit:
o Gross profit was $163.7M vs. $175.1M in 4Q20
o Gross profit margin was flat YoY at 30.4%
+ Operating Profit:
o Operating profit was $44.5M vs. $47.7M in 4Q20
# Non-GAAP operating profit was $63.3M vs. $80.9M in 4Q20
o Operating profit margin was flat YoY at 8.3%
# Non-GAAP operating profit margin was 11.7% vs. 14.0% in 4Q20
+ Adjusted EBITDA and Net Income:
o Adjusted EBITDA was $107.0M vs. $124.2M in 4Q20
# Adjusted EBITDA margin was 19.8% vs. 21.5% in 4Q20
o During the fourth quarter, as part of the pension liability
reductions noted above, the company completed a transfer of gross
pension liabilities through the purchase of a $235M annuity
contract. As a result, the company recorded a $130.1M non-cash,
pre-tax settlement charge, which resulted in a net loss from
continuing operations in 4Q21 of $131.2M vs. a net loss of $174.7M
in 4Q20 (which included a $142.1M non-cash, pre-tax settlement
charge)
# Net income margin of (24.3)% vs. (30.3)% in 4Q20, impacted by
the same charge
o Non-GAAP net income from continuing operations was $34.8M vs.
$49.2M in 4Q20
# Non-GAAP net income margin was 6.5% vs. 8.5% in 4Q20
+ Earnings Per Share from Continuing Operations:
o The non-cash settlement charge related to gross pension liability
reduction noted above translated to $1.94 per share, which drove
the loss per share from continuing operations of $1.95 vs. a loss
of $2.77 in 4Q20
o Non-GAAP diluted earnings per share from continuing operations was
$0.51 vs. $0.73 in 4Q20
+ Cash Flow:
o Cash from operations was $68.0M vs. $(355.4)M in 4Q20
o Free cash flow was $44.3M vs. $(390.4)M in 4Q20
o Adjusted free cash flow was $72.2M vs. $104.6M in 4Q20
+ ACV:
o 4Q21 represented the strongest ACV quarter of the year, up 54%
sequentially (although down 12% YoY, due to the ECS license renewal
schedule).
Fourth-Quarter Financial Highlights by Segment:
As noted above for total company results, 4Q21 faced a difficult compare with
4Q20 at the segment level, as well, including as a result of the ECS license
renewal schedule. However, overall results were in line with or slightly ahead
of internal expectations, as evidenced by achievement of guidance on all
metrics for FY21.
DWS:
* As a result of exiting certain non-strategic contracts that were not
aligned to the company's targeted margin profile in the third quarter, 4Q21
DWS revenue declined YoY. However, 4Q21 DWS gross profit and gross margin
increased YoY.
* DWS revenue was $138.1M vs. $146.3M in 4Q20
* DWS gross profit was up 6.9% YoY to $18.6M vs. $17.4M in 4Q20
+ DWS gross profit margin was up 160 bps YoY to 13.5% vs. 11.9% in 4Q20
C&I:
* 4Q21 C&I revenue was expected to decrease YoY due to a revenue timing issue
that benefitted the company in the fourth quarter of 2020. However, 4Q20 C&
I gross profit and gross margin increased YoY.
* C&I revenue of $129.9M vs. $131.1M in 4Q20
* C&I gross profit increased 24.7% YoY to $19.7M vs. $15.8M in 4Q20
+ C&I gross profit margin increased 310 bps YoY to 15.2% vs. 12.1% in
4Q20
ECS:
* 4Q21 ECS revenue was expected to be lower YoY as a result of the license
renewal schedule, which was more concentrated in the fourth quarter of
2020. The flow-through of this revenue impact was also expected to drive
lower gross profit and gross margin.
* ECS revenue was $191.2M vs. $220.5M in 4Q20
* ECS gross profit was $124.3M vs. $143.5M in 4Q20
+ ECS gross margin was roughly flat YoY at 65.0% vs. 65.1% in 4Q20
Conference Call
Unisys will hold a conference call February 22nd at 8:00 a.m. Eastern Time to
discuss its results. The listen-only webcast, as well as the accompanying
presentation materials, can be accessed on the Unisys Investor website at
www.unisys.com/investor. Following the call, an audio replay of the webcast,
and accompanying presentation materials, can be accessed through the same link.
(1) Backlog - Represents future revenue associated with contracted work which
has not yet been delivered or performed. Although we believe this backlog is
firm, we may, for commercial reasons, allow the orders to be cancelled, with or
without penalty.
(2) Pipeline - Pipeline represents prospective sale opportunities being pursued
or for which bids have been submitted. There is no assurance that pipeline will
translate into recorded revenue.
(3) Annual Contract Value - The revenue expected to be recognized during the
first twelve months following the signing of a contract.
(4) Net Leverage - Net leverage excludes the deficit associated with the
qualified U.S. pension plans, given that based on calculations and actuarial
assumptions as of December 31, 2021, no future cash contributions are required
to the qualified U.S. pension plans for at least the next 10 years. Net
leverage includes the deficit from all other pension plans, given the remaining
contributions required to those plans.
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 certain
portions of post-retirement, debt exchange and extinguishment and
cost-reduction and other expenses. Management believes each of these items can
distort the visibility of trends associated with the company's ongoing
performance. Management also believes that the evaluation of the company's
financial performance can be enhanced by use of supplemental presentation of
its results that exclude the impact of these items in order to enhance
consistency and comparativeness with prior or future period results. The
following measures are often provided and utilized by the company's management,
analysts, and investors to enhance comparability of year-over-year results, as
well as to compare results to other companies in our industry.
(5) Non-GAAP operating profit - The company recorded pretax post-retirement
expense and pretax charges in connection with cost-reduction activities, debt
exchange/extinguishment 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.
(6) EBITDA & adjusted EBITDA - Earnings before interest, taxes, depreciation
and amortization ("EBITDA") is calculated by starting with net income (loss)
from continuing operations attributable to Unisys Corporation common
shareholders and adding or subtracting the following items: net income
attributable to noncontrolling interests, interest expense (net of interest
income), provision for income taxes, depreciation and amortization. Adjusted
EBITDA further excludes post-retirement, debt exchange/extinguishment, and
cost-reduction and other expenses, 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.
(7) Non-GAAP net income and non-GAAP diluted earnings per share - The company
has recorded post-retirement expense and charges in connection with debt
exchange/extinguishment and 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.
(8) Free cash flow - The company defines free cash flow as cash flow from
operations less capital expenditures. Management believes this liquidity
measure gives investors an additional perspective on cash flow from on-going
operating activities in excess of amounts used for reinvestment.
(9) Adjusted free cash flow - Because inclusion of the company's
post-retirement contributions, discontinued operations and cost-reduction
charges/reimbursements and other payments in free cash flow may distort the
visibility of the company's ability to generate cash flow from its operations
without the impact of these non-operational costs, management believes that
investors may be interested in adjusted free cash flow, which provides free
cash flow before these payments. This liquidity measure was provided to
analysts and investors in the form of external guidance and is used by
management to measure operating liquidity.
About Unisys
Unisys is a global IT solutions company that delivers successful outcomes for
the most demanding businesses and governments. Unisys offerings include digital
workplace solutions, cloud and infrastructure solutions, enterprise computing
solutions, and business process solutions. For more information on how Unisys
delivers for its clients across the commercial, financial services and
government markets, visit 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 or expectations of earnings, revenues, non-GAAP operating
profit margin, adjusted EBITDA margin, annual contract value, total contract
value, new business ACV or TCV, backlog, pipeline or other financial items; any
statements of the company's plans, strategies or objectives for future
operations; statements regarding future economic conditions or performance; and
any statements of belief or expectation. All forward-looking statements rely on
assumptions and are subject to various risks and uncertainties that could cause
actual results to differ materially from expectations. In particular,
statements concerning annual and total contract value are based, in part, on
the assumption that each of those contracts will continue for their full
contracted term. Risks and uncertainties that could affect the company's future
results include, but are not limited to, the following: our ability to attract
and retain experienced personnel in key positions; our ability to grow revenue
and expand margin in our Digital Workplace Solutions and Cloud and
Infrastructure Solutions businesses; our ability to maintain our installed base
and sell new solutions and related services; the business and financial risk in
implementing acquisitions or dispositions; the potential adverse effects of
aggressive competition in the information services and technology market; our
ability to effectively anticipate and respond to rapid technological innovation
in our industry; our ability to retain significant clients and attract new
clients; our contracts may not be as profitable as expected or provide the
expected level of revenues; our ability to develop or acquire the capabilities
to enhance the company's solutions; we have significant underfunded pension
obligations; the impact of COVID-19 on our business, growth, reputation,
projections, financial condition, operations, cash flows and liquidity; the
performance and capabilities of third parties with whom we have commercial
relationships; cybersecurity breaches could result in incurring significant
costs and could harm our business and reputation; a failure to meet standards
or expectations with respect to the company's environmental, social and
governance practices; the risks of doing business internationally when a
significant portion of our revenue is derived from international operations;
our ability to access financing markets; a reduction in our credit rating; the
adverse effects of global economic conditions, acts of war, terrorism, natural
disasters or the widespread outbreak of infectious diseases; a significant
disruption in our IT systems could adversely affect our business and
reputation; we may face damage to our reputation or legal liability if our
clients are not satisfied with our services or products; the potential for
intellectual property infringement claims to be asserted against us or our
clients; the possibility that legal proceedings could affect our results of
operations or cash flow or may adversely affect our business or reputation; and
our ability to use our net operating loss carryforwards and certain other tax
attributes may be limited. 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. While included under the definition of
forward-looking statements, for the avoidance of doubt, any specific guidance
or color that the company may provide from time to time regarding its expected
future financial performance is effective only on the date given. The company
generally will not update, reaffirm or otherwise comment on any such
information except as it deems necessary, and then only in a manner that
complies with Regulation FD.
RELEASE NO.: 0221/9863
UNISYS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Millions, except per share data)
Three Months Ended Year Ended
December 31, December 31,
2021 2020 2021 2020
Revenue
Services $ 430.5 $ 445.0 $1,699.3 $1,692.9
Technology 108.8 131.9 355.1 333.4
539.3 576.9 2,054.4 2,026.3
Costs and expenses
Cost of revenue:
Services 339.0 367.8 1,358.7 1,429.4
Technology 36.6 34.0 123.7 113.9
375.6 401.8 1,482.4 1,543.3
Selling, general and administrative 109.8 116.9 389.5 369.4
Research and development 9.4 10.5 28.5 26.6
494.8 529.2 1,900.4 1,939.3
Operating income 44.5 47.7 154.0 87.0
Interest expense 8.4 8.3 35.4 29.2
Other (expense), net (145.7) (195.3) (580.3) (329.6)
Loss from continuing operations before (109.6) (155.9) (461.7) (271.8)
income taxes
Provision (benefit) for income taxes 21.9 18.8 (11.9) 45.4
Consolidated net loss from continuing (131.5) (174.7) (449.8) (317.2)
operations
Net (loss) income attributable to (0.3) - (1.3) 0.5
noncontrolling interests
Net loss from continuing operations (131.2) (174.7) (448.5) (317.7)
attributable to Unisys Corporation
Income from discontinued operations, - 1.6 - 1,068.4
net of tax
Net (loss) income attributable to $(131.2) $(173.1) $ $
Unisys Corporation (448.5) 750.7
Earnings (loss) per common share
attributable to Unisys Corporation
Basic
Continuing operations $ $ $ $
(1.95) (2.77) (6.75) (5.05)
Discontinuing operations - 0.02 - 16.98
Total $ $ $ $
(1.95) (2.75) (6.75) 11.93
Diluted
Continuing operations $ $ $ $
(1.95) (2.77) (6.75) (5.05)
Discontinuing operations - 0.02 - 16.98
Total $ $ $ $
(1.95) (2.75) (6.75) 11.93
UNISYS CORPORATION
REPORTING UNITS RESULTS
(Unaudited)
(Millions)
Total DWS C&I ECS Other
Three Months Ended December 31, 2021
Customer revenue $ 539.3 $138.1 $129.9 $191.2 $ 80.1
Intersegment - - - - -
Total revenue $ 539.3 $138.1 $129.9 $191.2 $ 80.1
Gross profit percent 30.4 % 13.5 % 15.2 % 65.0 %
Three Months Ended December 31, 2020
Customer revenue $ 576.9 $146.3 $131.1 $220.5 $ 79.0
Intersegment - - - - -
Total revenue $ 576.9 $146.3 $131.1 $220.5 $ 79.0
Gross profit percent 30.4 % 11.9 % 12.1 % 65.1 %
Total DWS C&I ECS Other
Year Ended December 31, 2021
Customer revenue $ 2054.4 $567.0 $496.5 $677.5 $313.4
Intersegment - - - 1.4 (1.4)
Total revenue $ 2054.4 $567.0 $496.5 $678.9 $312.0
Gross profit percent 27.8 % 13.5 % 11.4 % 63.1 %
Year Ended December 31, 2020
Customer revenue $2,026.3 $588.3 $465.2 $659.7 $313.1
Intersegment - - - 0.1 (0.1)
Total revenue $2,026.3 $588.3 $465.2 $659.8 $313.0
Gross profit percent 23.8 % 9.4 % 5.0 % 56.9 %
UNISYS CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Millions)
December 31, 2021 December 31, 2020
Assets
Current assets
Cash and cash equivalents $ $
552.9 898.5
Accounts receivable, net 451.7 460.5
Contract assets 42.0 44.3
Inventories 7.6 13.4
Prepaid expenses and other current 78.8 89.3
assets
Total current assets 1,133.0 1,506.0
Properties 468.0 727.0
Less - Accumulated depreciation and 381.5 616.5
amortization
Properties, net 86.5 110.5
Outsourcing assets, net 124.6 173.9
Marketable software, net 176.2 193.6
Operating lease right-of-use assets 62.7 79.3
Prepaid postretirement assets 159.7 187.5
Deferred income taxes 125.3 136.2
Goodwill 315.0 108.6
Intangible assets, net 34.9 -
Restricted cash 7.7 8.2
Assets held-for-sale 20.0 -
Other long-term assets 173.9 204.1
Total assets $ $
2,419.5 2,707.9
Liabilities and deficit
Current liabilities
Current maturities of long-term debt $ $
18.2 102.8
Accounts payable 180.2 223.2
Deferred revenue 253.2 257.1
Other accrued liabilities 300.9 352.0
Total current liabilities 752.5 935.1
Long-term debt 511.2 527.1
Long-term postretirement liabilities 976.2 1,286.1
Long-term deferred revenue 150.7 137.9
Long-term operating lease liabilities 46.1 62.4
Other long-term liabilities 47.2 71.4
Commitments and contingencies
Total Unisys Corporation (113.7) (356.8)
stockholders' deficit
Noncontrolling interests 49.3 44.7
Total deficit (64.4) (312.1)
Total liabilities and deficit $ $
2,419.5 2,707.9
UNISYS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Millions)
Year Ended
December 31,
2021 2020
Cash flows from operating activities
Consolidated net loss from continuing operations $ (449.8) $ (317.2)
Income from discontinued operations, net of tax - 1,068.4
Adjustments to reconcile consolidated net income (loss)
to net cash provided by (used for) operating activities:
Gain on sale of U.S. Federal business - (1,060.0)
Foreign currency losses 2.6 36.2
Non-cash interest expense 1.8 4.6
Debt extinguishment charge - 28.5
Employee stock compensation 18.8 14.5
Depreciation and amortization of properties 30.5 29.7
Depreciation and amortization of outsourcing assets 68.0 65.8
Amortization of marketable software 71.9 65.5
Amortization of intangible assets 3.0 -
Other non-cash operating activities (0.6) (0.3)
Loss on disposal of capital assets 2.2 4.5
Postretirement contributions (56.4) (832.2)
Postretirement expense 552.0 239.2
Deferred income taxes, net (59.2) (13.4)
Changes in operating assets and liabilities, excluding
the effects of acquisitions:
Receivables, net and contract assets 47.4 (74.8)
Inventories 6.0 3.0
Other assets 8.0 5.9
Accounts payable and other accrued liabilities (149.4) 3.4
Other liabilities 35.7 47.5
Net cash provided by (used for) operating activities 132.5 (681.2)
Cash flows from investing activities
Purchases of businesses, net of cash acquired (239.3) -
Net proceeds from sale of U.S. Federal business - 1,162.9
Proceeds from investments 4,148.2 3,388.5
Purchases of investments (4,168.1) (3,379.2)
Capital additions of properties (27.3) (27.7)
Capital additions of outsourcing assets (18.5) (30.1)
Investment in marketable software (54.4) (72.3)
Other (0.9) (0.5)
Net cash (used for) provided by investing activities (360.3) 1,041.6
Cash flows from financing activities
Proceeds from issuance of long-term debt 1.5 497.3
Payments of long-term debt (103.1) (454.8)
Cash paid for debt extinguishment - (23.7)
Issuance costs relating to long-term debt - (7.9)
Proceeds from exercise of stock options 4.5 -
Other (8.4) (5.8)
Net cash (used for) provided by financing activities (105.5) 5.1
Effect of exchange rate changes on cash, cash equivalents (12.8) (10.6)
and restricted cash
(Decrease) increase in cash, cash equivalents and (346.1) 354.9
restricted cash
Cash, cash equivalents and restricted cash, beginning of 906.7 551.8
period
Cash, cash equivalents and restricted cash, end of $ 560.6 $ 906.7
period
UNISYS CORPORATION
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(Unaudited)
(Millions, except per share data)
Three Months Year Ended
Ended
December 31, December 31,
2021 2020 2021 2020
GAAP net loss from continuing operations $ $ $ $
attributable to Unisys Corporation (131.2) (174.7) (448.5) (317.7)
Postretirement pretax 144.3 166.4 552.0 239.2
expense:
tax 0.4 0.4 53.2 1.5
net of tax 143.9 166.0 498.8 237.7
Cost reduction and pretax 22.1 58.6 67.8 157.0
other expenses
tax - 0.7 0.6 1.6
net of tax 22.1 57.9 67.2 155.4
noncontrolling - - - -
interest
net of 22.1 57.9 67.2 155.4
noncontrolling
interest
Non-GAAP net income from continuing 34.8 49.2 117.5 75.4
operations attributable to Unisys
Corporation
Add interest expense on convertible notes - - - -
Non-GAAP net income attributable to Unisys $ $ $ 117.5 $
Corporation for diluted earnings per share 34.8 49.2 75.4
Weighted average shares (thousands) 67,170 63,038 66,451 62,932
Plus incremental shares from assumed
conversion:
Employee stock plans 914 805 871 579
Convertible notes - 3,425 - 3,425
Non-GAAP adjusted weighted average shares 68,084 67,268 67,322 66,936
Diluted earnings (loss) per share
GAAP basis
GAAP net loss from continuing operations $ $ $ $
attributable to Unisys Corporation (131.2) (174.7) (448.5) (317.7)
Divided by adjusted weighted average shares 67,170 63,038 66,451 62,932
GAAP diluted loss per share $ $ $ $
(1.95) (2.77) (6.75) (5.05)
Non-GAAP basis
Non-GAAP net income attributable to Unisys $ $ $ 117.5 $
Corporation for diluted earnings per share 34.8 49.2 75.4
Divided by Non-GAAP adjusted weighted 68,084 67,268 67,322 66,936
average shares
Non-GAAP diluted earnings per share $ $ $ $
0.51 0.73 1.75 1.13
UNISYS CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP
(Unaudited)
(Millions)
FREE CASH FLOW
Three Months Ended Year Ended
December 31, December 31,
2021 2020 2021 2020
Cash provided by (used for) operations $68.0 $(355.4) $132.5 $(681.2)
Additions to marketable software (12.3) (17.5) (54.4) (72.3)
Additions to properties (7.6) (11.0) (27.3) (27.7)
Additions to outsourcing assets (3.8) (6.5) (18.5) (30.1)
Free cash flow 44.3 (390.4) 32.3 (811.3)
Postretirement funding 12.8 487.7 56.4 832.2
Discontinued operations - 0.7 - (8.4)
Cost reduction and other payments 15.1 6.6 83.5 30.1
Adjusted free cash flow $72.2 $ 104.6 $172.2 $ 42.6
UNISYS CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP
(Unaudited)
(Millions)
EBITDA
Three Months Ended Year Ended
December 31, December 31,
2021 2020 2021 2020
Net loss from continuing $(131.2) $(174.7) $ (448.5) $ (317.7)
operations attributable to
Unisys Corporation
Net (loss) income attributable (0.3) - (1.3) 0.5
to noncontrolling interests
Interest expense, net of 6.0 7.0 27.6 21.9
interest income of $2.4, $1.3,
$7.8, $7.3 respectively*
Provision (benefit) for income 21.9 18.8 (11.9) 45.4
taxes
Depreciation 24.5 24.6 98.5 95.5
Amortization 22.3 15.3 74.9 65.5
EBITDA $ (56.8) $(109.0) $ (260.7) $ (88.9)
Postretirement expense 144.3 166.4 552.0 239.2
Debt exchange, cost reduction 16.3 58.6 57.3 148.8
and other expenses**
Non-cash share based expense 2.7 3.4 14.2 14.5
Other (income) expense 0.5 4.8 7.1 7.2
adjustment***
Adjusted EBITDA $ 107.0 $ 124.2 $ 369.9 $ 320.8
*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 debt
extinguishment, cost reduction
and other expenses
Three Months Ended Year Ended
December 31, December 31,
2021 2020 2021 2020
Revenue $ 539.3 $ 576.9 $2,054.4 $2,026.3
Net loss from continuing (24.3)% (30.3)% (21.8)% (15.7)%
operations attributable to
Unisys Corporation as a
percentage of revenue
Non-GAAP net income from 6.5 % 8.5 % 5.7 % 3.7 %
continuing operations
attributable to Unisys
Corporation as a percentage of
revenue
Adjusted EBITDA as a percentage 19.8 % 21.5 % 18.0 % 15.8 %
of revenue
UNISYS CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP
(Unaudited)
(Millions)
OPERATING PROFIT
Three Months Nine Months Ended
Ended
December 31, December 31,
2021 2020 2021 2020
GAAP operating income from continuing $ 44.5 $ 47.7 $ $
operations 154.0 87.0
Cost reduction and other expenses* 18.0 32.4 35.3 63.2
Postretirement expense** 0.8 0.8 3.5 3.3
Non-GAAP operating profit from continuing $ 63.3 $ 80.9 $ $
operations 192.8 153.5
Revenue $ 539.3 $ 576.9 $2,054.4 $2,026.3
GAAP operating profit percent 8.3 % 8.3 % 7.5 % 4.3 %
Non-GAAP operating profit percent 11.7 % 14.0 % 9.4 % 7.6 %
*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)
SOURCE Unisys Corporation
CONTACT: Investors: Courtney Holben, Unisys, 215-986-3379,
courtney.holben@unisys.com; Media: John Clendening, Unisys, 214-403-1981,
john.clendening@unisys.com
END
(END) Dow Jones Newswires
February 22, 2022 02:00 ET (07:00 GMT)
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