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USY Unisys Corporation

8.51
0.00 (0.00%)
26 Apr 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Unisys Corporation LSE:USY London Ordinary Share COM STK US$0.01
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 8.51 2 01:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Cmp Integrated Sys Design 2.02B -430.7M -6.2958 -0.87 376.26M

Unisys Corp Half-year Report

27/07/2016 7:00am

UK Regulatory


 
TIDMUSY 
 
Unisys Announces Second-Quarter 2016 Financial Results 
 
BLUE BELL, Pa., July 26, 2016 -- 
 
2Q 2016: 
 
  * Operating profit margin of 6.6 percent, an increase of 1310 basis points 
    from operating profit margin of (6.5) percent in 2Q 2015 
  * Non-GAAP operating profit margin(1) of 10.8 percent, an increase of 690 
    basis points from the prior year 
  * Diluted earnings per share of $0.36 versus ($1.17) in 2Q 2015 
  * Non-GAAP diluted earnings per share(2) of $0.81 versus $0.33 in 2Q 2015 
  * Operating cash flow increase of $55.7 million year over year to $34.6 
    million; $78.7 million increase in non-GAAP adjusted free cash flow(4) 
    year-over-year to $54.3 million 
  * Revenue of $748.9 million, down 2 percent, or down less than 1 percent on a 
    constant-currency basis*, year over year 
  * Unisys re-affirms full-year guidance for total company revenue, non-GAAP 
    operating profit margin and adjusted free cash flow 
 
Unisys Corporation (NYSE: UIS) today reported second quarter 2016 results 
highlighted by continued year-over-year increases in operating profit margin, 
operating cash flow and free cash flow(3). 
 
The company reported an operating profit margin of 6.6 percent including cost 
reduction charges and pension expense, an increase of 1310 basis points 
relative to operating profit margin of (6.5) percent in the second quarter of 
2015, consistent with ongoing cost-cutting efforts and helped by increased 
revenues from higher-margin technology products. Second quarter 2016 non-GAAP 
operating profit margin was 10.8 percent, an increase of 690 basis points from 
the prior year. In addition, operating cash flow for the quarter increased by 
$55.7 million versus the prior year to $34.6 million, while adjusted free cash 
flow in the second quarter of 2016 increased $78.7 million from the prior year 
to $54.3 million, representing the third consecutive quarter of positive 
adjusted free cash flow. The Company also reported diluted earnings per share 
of $0.36 versus ($1.17) in the same quarter a year ago and non-GAAP diluted 
earnings per share of $0.81 versus $0.33 in the second quarter of 2015. 
Revenues for the second quarter 2016 were $748.9 million, which is down 2 
percent or down less than 1 percent on a constant-currency basis relative to 
the second quarter of 2015. 
 
"Our second quarter results reflect improvement in our GAAP and non-GAAP 
operating profit margin and cash flow generation. Revenues were slightly down, 
less than 1 percent, on a constant-currency basis," said Unisys President and 
CEO Peter Altabef. "We are continuing to execute against the strategy we 
commenced in 2015, which focuses on providing security in everything we do, 
growing demand for both cyber and physical security offerings, while investing 
to improve our go-to-market effectiveness by aligning vertically." 
 
Summary of Second Quarter 2016 Business Results 
 
Company: 
 
  * Overall operating profit margin of 6.6 percent includes cost reduction 
    charges and pension expense. Second quarter 2016 non-GAAP operating profit 
    margin was 10.8 percent, an increase of 690 basis points from the prior 
    year. 
  * Net income grew to $21.6 million versus $(58.2) million in the second 
    quarter of 2015, representing margin expansion of 1050 basis points. 
    Adjusted EBITDA(5) saw growth of 71.0 percent to $123.6 million versus the 
    prior year, representing margin expansion of 710 basis points. 
  * Overall increased profitability was driven in large part by decreased 
    operating expenses resulting from the company's ongoing cost-cutting 
    efforts and was also helped by an increase in revenues from higher-margin 
    technology products. 
  * Operating cash flow increased by $55.7 million versus the prior year to 
    $34.6 million, while adjusted free cash flow in the second quarter 2016 
    increased $78.7 million from the prior year, representing the third 
    consecutive quarter of positive adjusted free cash flow. 
  * Revenue of $748.9 million declined 2.1 percent year over year or (0.9) 
    percent on a constant-currency basis. 
 
Services: 
 
  * Services revenue, which represented 82.0 percent of total revenue, declined 
    by 7.2 percent to $613.8 million, down 6.1 percent in constant currency. 
    The decline in the Services business was largely offset by a strong quarter 
    for the Technology business, as noted below. 
  * Services gross margin improved 110 basis points from 15.7 percent to 16.8 
    percent. Services operating profit margin was 2.1 percent, a decrease of 10 
    basis points from the prior year, or flat on a constant-currency basis, 
    reflecting continued investment in the business to reach longer-term 
    profitability goals. 
  * Total Services backlog ended the second quarter at $3.8 billion, down 13.7 
    percent year-over-year. 
 
Technology: 
 
  * Technology revenue, which represented 18.0 percent of total revenue, 
    increased 30.7 percent year-over-year, 32.4 percent in constant currency, 
    largely driven by increased ClearPath ForwardT sales. 
  * Technology operating profit margin improved to 48.0 percent from 15.6 
    percent in the prior year due to increased gross margins, as well as the 
    benefit of selling, general & administrative reductions. 
 
Cash Flow: 
 
  * Capital expenditures declined 36.4 percent year-over-year to $34.0 million, 
    reflective of significant investments in outsourcing assets that were made 
    in the second quarter of 2015. 
  * Second quarter 2016 operating cash flow increased by $55.7 million versus 
    the prior year to $34.6 million. Free cash flow of $0.6 million improved 
    $75.2 million year-over-year and was positive due to higher operating cash 
    flow and lower capital expenditures. Adjusted free cash flow in the second 
    quarter of 2016 increased $78.7 million from the prior year to $54.3 
    million, representing the third consecutive quarter of positive adjusted 
    free cash flow. 
  * During the second quarter 2016, the company executed on cost-cutting plans, 
    largely related to headcount reductions, that are expected to result in $30 
    million of annualized cost savings, bringing the total to date to $155 
    million against a plan of $200 million for 2016, with another $30 million 
    expected in 2017. 
  * At June 30, 2016, the company had $463.6 million in cash. 
 
Continued Execution on Business Strategy 
The company recently made several major announcements regarding security, 
alliances, and groundbreaking technologies: 
 
  * A series of security-related achievements, including approval of Unisys 
    Stealth® from the U.S. National Security Agency's (NSA) Commercial 
    Solutions for Classified (CSfC) program in the U.S., and by the National 
    Information Assurance Partnership (NIAP), making Unisys Stealth eligible 
    for use by governments in more than 20 countries to protect their most 
    sensitive systems and information. 
  * A hardware-independent version of the ClearPath Forward MCP operating 
    environment software, marking the first time that Unisys has offered a 
    software-only version of its ClearPath Forward operating system platform. 
  * The new Unisys, Sandstone and PCT (USP) digital banking platform designed 
    to enable financial institutions to provide more secure banking services. 
    The platform will provide built-in adaptive biometric and data analytics to 
    securely identify customers and validate transactions, to reduce fraud and 
    enhance customer experience. 
 
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. 
 
*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 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 restructuring 
costs. 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. 
 
(1) Non-GAAP operating profit - During the second quarter 2016 and 2015, Unisys 
recorded pretax pension expense and a pretax charge in connection with cost 
reduction actions. 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. 
 
(2) Non-GAAP diluted earnings per share - During the second quarter 2016 and 
2015, Unisys recorded pension expense and a charge in connection with cost 
reduction actions (both net of tax). Management believes that investors may 
have a better understanding of the company's performance and return to 
shareholders by excluding these charges from the non-GAAP diluted earnings/loss 
per share calculations. The tax amounts netted from pension expense and the 
charge in connection with cost reduction actions for the calculation of 
non-GAAP diluted earnings per share include the current and deferred tax 
expense and benefits recognized under GAAP for pension expense and 
restructuring costs during the second quarter 2016 and 2015. 
 
(3) Free cash flow - The company defines free cash flow as cash flow from 
operations less capital expenditures. Management believes this liquidly measure 
gives investors an additional perspective on cash flow from on-going operating 
activities in excess of amounts required for reinvestment. 
 
(4) 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 
liquidly. 
 
(5) EBITDA & adjusted EBITDA - For the company 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, non-cash share-based expense, other (income) expense (net), Interest 
expense, provision for income taxes, depreciation and amortization. Adjusted 
EBITDA further excludes both pension expense and cost reduction charges. Unisys 
recorded pretax pension expense during the second quarters of 2016 and 2015. 
During the second quarters 2016 and 2015, Unisys recorded 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 charges are excluded from the adjusted EBITDA calculation. The company 
has also provided external guidance to investors and analysts that it thinks 
will aid any interested party in understanding and measuring the company's 
ongoing operations and profitability. 
 
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 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.: 0726/9440 
 
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           Six Months Ended 
                                  June 30,                    June 30, 
 
                             2016          2015          2016          2015 
 
Revenue 
 
Services                   $    613.8    $    661.5     $ 1,208.9     $ 1,300.5 
 
Technology                      135.1         103.3         206.8         185.5 
 
                                748.9         764.8       1,415.7       1,486.0 
 
Costs and expenses 
 
Cost of revenue: 
 
Services                        529.1         585.7       1,062.8       1,150.0 
 
Technology                       41.5          54.8          76.1          94.7 
 
                                570.6         640.5       1,138.9       1,244.7 
 
Selling, general and            115.7         145.4         225.8         274.2 
administrative 
 
Research and development         13.1          28.4          29.1          46.6 
 
                                699.4         814.3       1,393.8       1,565.5 
 
Operating profit (loss)          49.5        (49.5)          21.9        (79.5) 
 
Interest expense                  7.8           2.7          12.2           5.3 
 
Other income (expense),           2.6           1.4           1.4           6.3 
net 
 
Income (loss) before             44.3        (50.8)          11.1        (78.5) 
income taxes 
 
Provision for income             18.8           5.1          24.3          18.4 
taxes 
 
Consolidated net income          25.5        (55.9)        (13.2)        (96.9) 
(loss) 
 
Net income attributable           3.9           2.3           5.1           4.5 
to noncontrolling 
interests 
 
Net income (loss)         $      21.6  $     (58.2)  $     (18.3)   $   (101.4) 
attributable to Unisys 
Corporation 
 
Earnings (loss) per share 
attributable to Unisys 
Corporation 
 
Basic                     $      0.43  $     (1.17)  $     (0.37)  $     (2.03) 
 
Diluted                   $      0.36  $     (1.17)  $     (0.37)  $     (2.03) 
 
Shares used in the per 
share computations (in 
thousands) 
 
Basic                          50,069        49,927        50,036        49,874 
 
Diluted                        71,786        49,927        50,036        49,874 
 
 
 
 
                                 UNISYS CORPORATION 
 
                                   SEGMENT RESULTS 
 
                                     (Unaudited) 
 
                                     (Millions) 
 
                                    Total      Eliminations   Services    Technology 
 
Three Months Ended June 30, 2016 
 
Customer revenue                 $      748.9                $     613.8  $     135.1 
 
Intersegment                                   $      (5.9)            -          5.9 
 
Total revenue                    $      748.9  $      (5.9)  $     613.8   $    141.0 
 
Gross profit percent                   23.8 %                     16.8 %       66.9 % 
 
Operating profit percent                6.6 %                      2.1 %       48.0 % 
 
Three Months Ended June 30, 2015 
 
Customer revenue                 $      764.8                $     661.5  $     103.3 
 
Intersegment                                    $    (22.0)          0.1         21.9 
 
Total revenue                    $      764.8   $    (22.0)  $     661.6  $     125.2 
 
Gross profit percent                   16.3 %                     15.7 %       43.9 % 
 
Operating profit (loss) percent        (6.5)%                      2.2 %       15.6 % 
 
                                    Total      Eliminations   Services    Technology 
 
Six Months Ended June 30, 2016 
 
Customer revenue                  $   1,415.7                 $  1,208.9  $     206.8 
 
Intersegment                                    $    (11.5)            -         11.5 
 
Total revenue                     $   1,415.7   $    (11.5)   $  1,208.9  $     218.3 
 
Gross profit percent                   19.6 %                     15.5 %       60.4 % 
 
Operating profit percent                1.5 %                      1.4 %       37.4 % 
 
Six Months Ended June 30, 2015 
 
Customer revenue                   $  1,486.0                 $  1,300.5  $     185.5 
 
Intersegment                                    $    (28.7)          0.1         28.6 
 
Total revenue                      $  1,486.0  $     (28.7)   $  1,300.6  $     214.1 
 
Gross profit percent                   16.2 %                     14.9 %       46.3 % 
 
Operating profit (loss) percent        (5.3)%                      0.4 %       11.3 % 
 
 
 
 
                              UNISYS CORPORATION 
 
                          CONSOLIDATED BALANCE SHEETS 
 
                                  (Unaudited) 
 
                                  (Millions) 
 
                               June 30, 2016            December 31, 2015 
 
Assets 
 
Current assets 
 
Cash and cash equivalents  $                 463.6  $                   365.2 
 
Accounts and notes                           561.1                      581.6 
receivable, net 
 
Inventories: 
 
Parts and finished                            18.2                       20.9 
equipment 
 
Work in process and                           20.9                       22.9 
materials 
 
Prepaid expenses and                         130.4                      120.9 * 
other current assets 
 
Total                                      1,194.2                    1,111.5 * 
 
 
Properties                                   888.9                      876.6 
 
Less-Accumulated                             743.5                      722.8 
depreciation and 
amortization 
 
Properties, net                              145.4                      153.8 
 
Outsourcing assets, net                      185.4                      182.0 
 
Marketable software, net                     136.3                      138.5 
 
Prepaid postretirement                        68.4                       45.1 
assets 
 
Deferred income taxes                        130.5                      127.4 * 
 
Goodwill                                     179.7                      177.4 
 
Other long-term assets                       201.7                      194.3 * 
 
Total                       $              2,241.6    $               2,130.0 * 
 
 
Liabilities and deficit 
 
Current liabilities 
 
Notes payable             $                      -  $                    65.8 
 
Current maturities of                         11.1                       11.0 
long-term-debt 
 
Accounts payable                             187.2                      219.3 
 
Deferred revenue                             333.2                      335.1 
 
Other accrued liabilities                    352.4                      329.9 * 
 
Total                                        883.9                      961.1 * 
 
 
Long-term debt                               408.8                      233.7 * 
 
Long-term postretirement                   1,999.3                    2,111.3 
liabilities 
 
Long-term deferred                           139.8                      123.3 
revenue 
 
Other long-term                               83.4                       79.2 * 
liabilities 
 
Commitments and 
contingencies 
 
Total deficit                            (1,273.6)                  (1,378.6) 
 
Total                       $              2,241.6    $               2,130.0 * 
 
 
*  Certain amounts have been reclassified to conform to the current-year 
presentation. 
 
 
 
 
                              UNISYS CORPORATION 
 
                     CONSOLIDATED STATEMENTS OF CASH FLOWS 
 
                                  (Unaudited) 
 
                                  (Millions) 
 
                                                 Six Months Ended June 30, 
 
                                                   2016              2015 
 
Cash flows from operating activities 
 
Consolidated net loss                        $         (13.2)  $         (96.9) 
 
Add (deduct) items to reconcile consolidated 
net loss to net 
cash provided by (used for) operating 
activities: 
 
Foreign currency transaction losses                       0.4               0.6 
 
Non-cash interest expense                                 2.8                 - 
 
Employee stock compensation                               5.3               6.2 
 
Depreciation and amortization of properties              19.3              22.7 
 
Depreciation and amortization of                         25.7              26.1 
outsourcing assets 
 
Amortization of marketable software                      32.4              32.9 
 
Other non-cash operating activities                       1.0               2.9 
 
Loss on disposal of capital assets                        1.6               5.0 
 
Pension contributions                                  (64.1)            (75.7) 
 
Pension expense                                          41.8              54.3 
 
Increase in deferred income taxes, net                  (9.7)             (7.2) 
 
Decrease in receivables, net                             24.9              62.3 
 
Decrease (increase) in inventories                        5.8            (10.1) 
 
Decrease in accounts payable and other                 (36.0)            (84.1) 
accrued liabilities 
 
Increase (decrease) in other liabilities                 12.3            (14.3) 
 
Decrease in other assets                                  8.5              10.9 
 
Net cash provided by (used for) operating                58.8            (64.4) 
activities 
 
Cash flows from investing activities 
 
Proceeds from investments                             2,236.8           2,203.1 
 
Purchases of investments                            (2,238.0)         (2,174.4) 
 
Investment in marketable software                      (30.2)            (33.4) 
 
Capital additions of properties                        (11.0)            (24.7) 
 
Capital additions of outsourcing assets                (28.8)            (52.7) 
 
Other                                                   (0.7)             (1.7) 
 
Net cash used for investing activities                 (71.9)            (83.8) 
 
Cash flows from financing activities 
 
Proceeds from issuance of long-term debt                213.5              31.8 
 
Payments for capped call transactions                  (27.3)                 - 
 
Issuance costs relating to long-term debt               (7.3)                 - 
 
Payments of long-term debt                              (1.3)             (0.6) 
 
Proceeds from exercise of stock options                     -               3.7 
 
Payments of short-term borrowings                      (65.8)                 - 
 
Net cash provided by financing activities               111.8              34.9 
 
Effect of exchange rate changes on cash and             (0.3)            (16.2) 
cash equivalents 
 
Increase (decrease) in cash and cash                     98.4           (129.5) 
equivalents 
 
Cash and cash equivalents, beginning of                 365.2             494.3 
period 
 
Cash and cash equivalents, end of period      $         463.6   $         364.8 
 
 
 
 
                              UNISYS CORPORATION 
 
         RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES 
 
                                  (Unaudited) 
 
                       (Millions, except per share data) 
 
                                   Three Months               Six Months 
 
                                   Ended June 30            Ended June 30 
 
                                 2016        2015         2016         2015 
 
GAAP net income (loss)        $     21.6  $    (58.2)  $    (18.3)   $  (101.4) 
attributable to Unisys 
Corporation common 
shareholders 
 
Cost reduction expense, net         10.3         48.6         35.0         48.6 
of tax of ($0.1), $4.0, $2.1, 
$4.0, respectively 
 
Pension expense, net of tax         21.8         25.9         42.4         53.3 
of ($0.3), $0.5, ($0.6), 
$1.0, respectively 
 
Non-GAAP net income (loss)          53.7         16.3         59.1          0.5 
attributable to Unisys 
Corporation common 
shareholders 
 
Add interest expense on              4.5            -          5.2            - 
convertible notes 
 
Non-GAAP net income (loss)    $     58.2   $     16.3   $     64.3  $       0.5 
attributable to Unisys 
Corporation for diluted 
earnings per share 
 
Weighted average shares           50,069       49,927       50,036       49,874 
(thousands) 
 
Plus incremental shares from 
assumed conversion: 
 
 Employee stock plans                167          155          151          187 
 
 Convertible notes                21,550            -       12,593            - 
 
Non-GAAP adjusted weighted        71,786       50,082       62,780       50,061 
average shares 
 
Diluted earnings (loss) per 
share 
 
GAAP basis 
 
GAAP net income (loss)        $     26.1  $    (58.2)  $    (18.3)   $  (101.4) 
attributable to Unisys 
Corporation for diluted 
earnings per share 
 
Divided by adjusted weighted      71,786       49,927       50,036       49,874 
average shares 
 
GAAP income (loss) per        $     0.36  $    (1.17)  $    (0.37)  $    (2.03) 
diluted share 
 
Non-GAAP basis 
 
Non-GAAP net income (loss)    $     58.2   $     16.3   $     64.3  $       0.5 
attributable to Unisys 
Corporation for diluted 
earnings per share 
 
Divided by Non-GAAP adjusted      71,786       50,082       62,780       50,061 
weighted average shares 
 
Non-GAAP earnings (loss) per  $     0.81   $     0.33   $     1.02   $     0.01 
diluted share 
 
 
 
 
                                            UNISYS CORPORATION 
 
                   RECONCILIATION OF GAAP OPERATING PROFIT TO NON-GAAP OPERATING PROFIT 
 
                                               (Unaudited) 
 
                                                (Millions) 
 
                                       Three Months                               Six Months 
 
                                       Ended June 30                            Ended June 30 
 
                                     2016        2015                  2016                    2015 
 
GAAP operating income (loss)       $    49.5  $   (49.5)            $     21.9                $     (79.5) 
 
Cost reduction expense                  10.2        52.6                  37.1                        52.6 
 
FAS87 pension expense                   21.5        26.4                  41.8                        54.3 
 
Non-GAAP operating profit (loss)   $    81.2   $    29.5             $   100.8                 $      27.4 
 
Customer Revenue                    $  748.9    $  764.8             $ 1,415.7                   $ 1,486.0 
 
GAAP operating income (loss) %         6.6 %      (6.5)%                 1.5 %                      (5.3)% 
 
Non-GAAP operating profit (loss) %    10.8 %       3.9 %                 7.1 %                       1.8 % 
 
                                            UNISYS CORPORATION 
 
                                    RECONCILIATION OF GAAP TO NON-GAAP 
 
                                               (Unaudited) 
 
                                                (Millions) 
 
                                              FREE CASH FLOW 
 
                                                  Three Months                         Six Months 
 
                                                  Ended June 30                       Ended June 30 
 
                                                 2016       2015                 2016          2015 
 
Cash provided by (used for) operations          $   34.6  $  (21.1)            $   58.8          $  (64.4) 
 
Additions to marketable software                  (15.9)     (16.7)              (30.2)             (33.4) 
 
Additions to properties                            (4.4)     (10.8)              (11.0)             (24.7) 
 
Additions to outsourcing assets                   (13.7)     (26.0)              (28.8)             (52.7) 
 
Free cash flow                                       0.6     (74.6)              (11.2)            (175.2) 
 
Pension funding                                     32.5       37.0                64.1               75.7 
 
Cost reduction funding                              21.2       13.2                39.2               13.2 
 
Free cash flow before pension & cost            $   54.3  $  (24.4)            $   92.1          $  (86.3) 
reduction funding 
 
 
CONTACT:  Investor Contact - Courtney Holben, 215-986-3379, 
courtney.holben@unisys.com; or Media Contact - John Clendening, 214-403-1981, 
john.clendening@unisys.com 
 
SOURCE: Unisys Corporation 
 
 
 
END 
 

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July 27, 2016 02:00 ET (06:00 GMT)

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