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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 0.0% 8.51 0.00 00:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Software & Computer Services 2,026.3 -317.2 0.0 - 360

Unisys Corp Final Results

23/02/2021 7:00am

UK Regulatory (RNS & others)


 
TIDMUSY 
 
Unisys Announces 4Q and FY20 Results 
 
BLUE BELL, Pa., Feb. 22, 2021 -- 
 
FY20 Revenue and Non-GAAP Operating Profit Margin Exceed Stated Company 
Expectations; FY20 Adjusted Free Cash Flow Grows Significantly; Strong Cash 
Balance and Significant Reduction in Pension Obligations 
 
  * 4Q20 revenue up 5.5% YoY and 16.5% sequentially to $576.9 million 
  * 4Q20 operating profit margin up 640 bps YoY and 270 bps sequentially to 
    8.3% 
      + 4Q20 Non-GAAP operating profit(5) margin up 790 bps YoY and 550 bps 
        sequentially 
  * FY 2020 operating profit margin of 4.3%, versus 6.2% in 2019; non-GAAP 
    operating profit margin of 7.5%, up 30 bps YoY and above stated company 
    expectations 
  * FY 2020 ending cash balance of $898.5 million versus $538.8 million in 
    prior-year period; pension deficit reduction of $710 million versus YE 
    2019 
  * Total Contract Value(3) ("TCV") up 22% YoY in 4Q20 and up 8% YoY for FY 
    2020 
 
Unisys Corporation (NYSE: UIS) today reported fourth-quarter and full-year 2020 
financial results. "We exited 2020 in a strong position, with significant 
improvements to capital structure and liquidity and full-year revenue and 
non-GAAP operating profit margin that exceeded our expectations," said Unisys 
Chairman and CEO Peter A. Altabef. "We transitioned to our new business unit 
structure at the start of 2021, with a focus on higher-growth and higher-margin 
markets and solutions, which we believe will better position the company to 
drive revenue and margin improvement over the coming years." 
 
Fourth-Quarter and Full-Year 2020 Highlights 
 
                     4Q20 YoY Revenue Growth                         4Q20 Profitability 
 
                   Revenue Services Technology              Operating    Net    EBITDA   Diluted 
                   Growth  Revenue   Revenue                 Profit    Income   Margin     EPS 
                            Growth    Growth                 Margin    Margin 
 
GAAP                  5.5%   (3.0%)      50.1%  GAAP             8.3%  (30.3%)  (18.9%)   ($2.77) 
 
Constant-Currency     4.7%   (3.5%)      47.6%       YoY      640 bps   (2,460   (2,230  (454.0%) 
(GAAP)                                               Change               bps)     bps) 
 
Non-GAAP              5.9%   (2.6%)        N/A  Non-GAAP        14.0%     8.5%    21.5%     $0.73 
 
                                                     YoY      790 bps  530 bps  770 bps      170% 
                                                     Change 
 
                     FY20 YoY Revenue Growth                         FY20 Profitability 
 
                   Revenue Services Technology              Operating    Net    EBITDA   Diluted 
                   Growth  Revenue   Revenue                 Profit    Income   Margin     EPS 
                            Growth    Growth                 Margin    Margin 
 
GAAP                (8.8%)  (10.6%)       1.0%  GAAP             4.3%  (15.7%)   (4.4%)   ($5.05) 
 
Constant-Currency   (7.7%)   (9.4%)       2.2%       YoY     (190)      (1,160   (1,060  (206.1%) 
(GAAP)                                               Change bps           bps)     bps) 
 
Non-GAAP            (8.2%)   (9.8%)        N/A  Non-GAAP         7.5%     3.7%    15.8%     $1.12 
 
                                                     YoY       30 bps   90 bps  140 bps      6.7% 
                                                     Change 
 
Beginning January 1, 2020, the historical results of the company's U.S. Federal 
business have been reflected in the company's consolidated financial statements 
as discontinued operations. Prior-period amounts have been reclassified to 
reflect the company's U.S. Federal business as discontinued operations. 
Throughout this release we only refer to the company's continuing operations. 
 
Summary of Fourth-Quarter 2020 Business Results 
 
Company: 
 
Fourth-quarter revenue was up 5.5% year over year (4.7% on a constant-currency 
(1) basis) to $576.9 million, versus $546.8 million in the prior-year period, 
and was up 16.5% sequentially. Non-GAAP adjusted revenue(4) was up 5.9% year 
over year to $576.9 million, relative to $544.6 million in the prior-year 
period, and was up 16.5% sequentially. These results reflect ongoing 
improvement and stabilization in COVID-disrupted portions of the business such 
as Field Services, BPO and Travel & Transportation, along with stronger 
ClearPath Forward® renewal volumes than expected. Fourth-quarter TCV was up 22% 
year over year. 
 
Fourth-quarter operating profit was up over 300% year over year to $47.7 
million, versus $10.3 million in the prior-year period, and was up 72.2% 
sequentially. Operating profit margin was up 640 bps year over year to 8.3% and 
was up 270 bps sequentially. Total company non-GAAP operating profit margin was 
up 790 basis points year over year to 14.0% and was up 550 bps sequentially. 
 
The company recognized $223.9 million of after-tax non-GAAP charges in the 
fourth quarter 2020, including charges related to post-retirement obligations 
($166.0 million) and cost reductions, relative to charges of $48.2 million in 
the prior-year period. As a result, net loss from continuing operations was 
$174.7 million versus $31.0 million in the prior-year period, and diluted loss 
per share was $2.77, compared to $0.50 in the prior-year period. Non-GAAP net 
income(9) was up 186% year over year to $49.2 million, versus $17.2 million in 
the prior-year period, and was up 42.2% sequentially. Non-GAAP diluted earnings 
per share(9) was up 170% year over year to $0.73, versus $0.27 in the 
prior-year period, and was up 43.1% sequentially. 
 
Adjusted EBITDA(8) was up 65.8% year over year to $124.2 million, versus $74.9 
million in the prior-year period, and was up 67.8% sequentially. Net income 
margin was (30.3)%, compared to (5.7)% in the prior-year period, driven by the 
charges noted above. Adjusted EBITDA margin was up 770 bps year over year to 
21.5% and was up 660 bps sequentially. 
 
The company made $487.7 million in postretirement contributions during the 
fourth quarter of 2020, relative to $27.1 million in the prior-year period. 
These contributions reduced the pension deficit and future required cash 
contributions, but resulted in cash used in operations of $355.4 million, 
versus $125.7 million provided by operations in the prior-year period and free 
cash flow(10) of $(390.4) million, relative to $95.6 million in the prior-year 
period. The company received tax credits in the prior-year period versus having 
required tax payments in the current period, which resulted in adjusted free 
cash flow(11) of $104.6 million versus $112.0 million in the prior-year period. 
Adjusted free cash flow was up $52.2 million sequentially. At December 31, 
2020, the company had $898.5 million in cash and cash equivalents, versus 
$538.8 million at year-end 2019. 
 
Services: 
 
Services non-GAAP adjusted revenue was $445.0 million, relative to $456.7 
million in the prior-year period, down 2.6% year over year (down 3.0% in 
constant-currency), and was up 4.5% sequentially. COVID-disrupted businesses 
improved and stabilized relative to the third quarter, though volumes were 
still down year over year as were volumes in the company's check-processing JV, 
as expected.  Services gross profit margin was up 320 bps year over year to 
18.4%. Non-GAAP adjusted Services gross profit margin(6) was up 360 bps year 
over year to 18.4%. Services operating profit margin was up 260 basis points 
year over year to 1.6%. Non-GAAP adjusted Services operating profit(7) margin 
was up 310 bps year over year to 1.6%. Services backlog was $3.4 billion, up 
3.0% versus the end of the third quarter. 
 
Technology: 
 
Technology revenue was up 50.1% year over year to $131.9 million (47.6% in 
constant currency), relative to $87.9 million in the prior-year period, and was 
up 90.6% sequentially. Technology gross profit margin was up 130 bps year over 
year to 73.2% and was up 1350 bps sequentially. Technology operating profit 
margin was up 460 bps year over year to 54.3% and was up 2120 bps sequentially. 
The improvements to revenue and margin were driven by higher volumes on 
ClearPath Forward renewals in the period than anticipated. 
 
Summary of Full-Year 2020 Business Results 
 
Company: 
 
2020 revenue was $2.03 billion, versus $2.22 billion in 2019, down 8.8% year 
over year (7.7% on a constant-currency(1) basis), better than the company's 
stated expectations for a year-over-year decline of 10%. Non-GAAP adjusted 
revenue(4) was $2.03 billion, relative to $2.21 billion in 2019, down 8.2% year 
over year. Year-over-year comparisons reflect the impact of COVID-disrupted 
portions of the business such as Field Services, BPO and Travel & 
Transportation, as well as anticipated declines in the company's 
check-processing JV. Full-year TCV was up 8% year over year. 
 
2020 operating profit was $87.0 million, versus $137.9 million in 2019. 
Operating profit margin was 4.3%, versus 6.2% in 2019. The year-over-year 
decline in operating profit and margin was driven by $62.2 million of 
cost-reduction charges incurred during 2020, versus $11.2 million in 2019. 
Total company non-GAAP operating profit margin was up 30 basis points year over 
year to 7.5%, above stated company expectations of 5.2% to 6.7%. 
 
The company recognized $392.5 million of after-tax non-GAAP charges in 2020, 
including charges related to post-retirement obligations ($237.7 million) and 
cost reductions, versus $153.4 million in 2019. As a result, net loss from 
continuing operations was $317.7 million versus $92.2 million in 2019, and 
diluted loss per share was $5.05, compared to $1.65 in 2019. Non-GAAP net 
income(9) was $74.8 million, versus $61.2 million in 2019. Non-GAAP diluted 
earnings per share(9) was up 6.7% year over year to $1.12, versus $1.05 in 
2019. 
 
Adjusted EBITDA(8) was up 0.4% year over year to $319.8 million, relative to 
$318.5 million in 2019. Net income margin was (15.7)%, compared to (4.1)% in 
2019, driven by the charges noted above. Adjusted EBITDA margin was up 140 
basis points year over year to 15.8%, relative to 14.4% in 2019. 
 
During 2020, the company made $832.2 million of pension contributions versus 
$109.4 million in 2019. These contributions reduced the pension deficit and 
future required cash contributions, but resulted in cash used in operations of 
$681.2 million, versus $123.9 million provided by operations in 2019, and free 
cash flow(10) of $(811.3) million, relative to $(35.9) million in 2019. 
Adjusted free cash flow(11) was up 59.6% year over year to $42.6 million. 
 
Services: 
 
Services revenue was $1.69 billion, relative to $1.89 billion in 2019, down 
10.6% year over year (9.4% in constant-currency). Services non-GAAP adjusted 
revenue was $1.69 billion, relative to $1.88 billion in 2019. As noted above, 
the year-over-year declines were due to the COVID-related disruptions during 
2020, as well as expected declines in the company's check-processing JV. 
Services gross profit margin was up 30 bps year over year to 16.5%. Non-GAAP 
adjusted Services gross profit margin(6) was up 90 bps year over year to 16.4%. 
Services operating profit margin was 0.7%, versus 1.1% in 2019. Non-GAAP 
adjusted Services operating profit(7) margin was up 50 bps year over year to 
0.7%. 
 
Technology: 
 
Technology revenue was up 1.0% year over year (2.2% in constant currency) to 
$333.4 million, relative to $330.1 million in 2019, exceeding the company's 
stated expectations as a result of higher volumes on ClearPath Forward renewals 
than anticipated. Year-over-year margin comparisons were largely driven by 
increased amortization costs, as well as higher third-party hardware sales in 
2020, which come with lower margins. As a result, Technology gross profit 
margin was 65.0%, compared to 69.0% in 2019, and Technology operating profit 
margin was 40.8%, versus 46.1% in 2019. 
 
Select Fourth-Quarter Contract Signings: 
 
In the fourth quarter, the company entered into several noteworthy contracts: 
 
  * Digital Workplace Services: The company signed a contract for digital 
    workplace services with a global healthcare provider. The contract includes 
    Unisys InteliServeT, which uses artificial intelligence and robotic process 
    automation to provide a first-rate user experience for 39,000 employees 
    globally. 
  * Cloud & Infrastructure: A U.S. state government awarded Unisys a new-scope 
    contract to support the state's workforce model that is quickly shifting to 
    a remote-first strategy. Under the contract, Unisys will provide CloudForte 
    ® as the foundation for a virtual infrastructure that will secure sensitive 
    applications and regulated data by preventing users from printing, copying 
    or downloading data onto unsecured devices. 
  * ClearPath Forward: TravelSky, the leading provider of information 
    technology solutions for China's air travel and tourism industry, has 
    renewed its contract for Unisys ClearPath Forward technology to process 
    business-critical transactions including passenger reservations, cargo 
    bookings and load calculations. 
 
Conference Call 
 
Unisys will hold a conference call tomorrow 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) 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. 
 
(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) Total Contract Value - TCV is the estimated total contractual revenue 
related to contracts signed in the period without regard for cancellation 
terms. New business TCV represents TCV attributable to new scope for existing 
clients and new logo contracts. 
 
Non-GAAP and Other Information 
 
Although appropriate under generally accepted accounting principles ("GAAP"), 
the company's results reflect revenue and charges that the company believes are 
not indicative of its ongoing operations and that can make its revenue, 
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 revenue, 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. 
 
(4)  Non-GAAP adjusted revenue - In 2019 and 2020, the company's non-GAAP 
results reflect adjustments to exclude certain revenue and related profit 
relating to reimbursements from the company's check-processing JV partners for 
restructuring expenses included as part of the company's restructuring program. 
 
(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. During 2019 and 2020, the company 
included the non-GAAP adjustments discussed in (4) herein. 
 
(6)  Non-GAAP adjusted Services gross profit - During 2019 and 2020, the 
company included the adjustments discussed in (4) herein. 
 
(7)  Non-GAAP adjusted Services operating profit - During 2019 and 2020, the 
company included the adjustments discussed in (4) herein. 
 
(8) 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. During 2019 and 2020, the company 
included the adjustments discussed in (4) herein. 
 
(9) 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. During 2019 and 2020, the company included the 
adjustments discussed in (4) herein. 
 
(10) 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. 
 
(11) 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 services company that delivers successful outcomes for 
the most demanding businesses and governments. Unisys offerings include digital 
workplace services, cloud and infrastructure services and software operating 
environments for high-intensity enterprise computing. Unisys integrates 
security into all of its solutions. For more information on how Unisys delivers 
for its clients across the government, financial services and commercial 
markets, 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 or expectations of earnings, revenues, annual contract value, 
total contract value, new business ACV or TCV, backlog 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: uncertainty of the magnitude, duration and spread of the novel 
coronavirus ("COVID-19") pandemic and the impact of COVID-19 and governments' 
responses to it on the global economy and our business, growth, reputation, 
projections, prospects, financial condition, operations, cash flows and 
liquidity, our ability to attract, motivate and retain experienced personnel in 
key positions; our ability to grow revenue and expand margin in our Digital 
Workplace Services and Cloud and Infrastructure businesses; our ability to 
maintain our installed base and sell new solutions; the potential adverse 
effects of aggressive competition in the information services and technology 
marketplace; our ability to effectively anticipate and respond to volatility 
and rapid technological innovation in our industry; our ability to retain 
significant 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; the potential adverse effects 
of the concentration of the company's business in the global commercial sector 
of the information technology industry; our significant pension obligations and 
required cash contributions and the possibility that we may be required to make 
additional significant cash contributions to our defined benefit pension plans; 
our ability to use our net operating loss carryforwards and certain other tax 
attributes may be limited; the risks of doing business internationally when a 
significant portion of our revenue is derived from international operations; 
the business and financial risk in implementing future acquisitions or 
dispositions; cybersecurity breaches could result in significant costs and 
could harm our business and reputation; the performance and capabilities of 
third parties with whom we have commercial relationships; a failure to meet 
standards or expectations with respect to the company's environmental, social 
and governance practices; 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; the impact of Brexit could adversely affect the company's operations 
in the United Kingdom as well as the funded status of the company's U.K. 
pension plans; 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 the company's consideration of all available information 
following the end of the quarter and before the filing of the Form 10-K and the 
possible impact of this subsequent event information on its financial 
statements for the reporting period. Additional discussion of factors that 
could affect the company's future results is contained in its periodic filings 
with the Securities and Exchange Commission. The company assumes no obligation 
to update any forward-looking statements. 
 
RELEASE NO.: 0222/9817 
 
Unisys and other Unisys products and services mentioned herein, as well as 
their respective logos, are trademarks or registered trademarks of Unisys 
Corporation. Any other brand or product referenced herein is acknowledged to be 
a trademark or registered trademark of its respective holder. 
 
UIS-Q 
 
                               UNISYS CORPORATION 
 
                    CONSOLIDATED STATEMENTS OF INCOME (LOSS) 
 
                                  (Unaudited) 
 
                       (Millions, except per share data) 
 
                                          Three Months Ended      Year Ended 
                                             December 31,        December 31, 
                                                                                                                            2020      2019      2020      2019 
 
Revenue 
 
Services                                     $         $           $         $ 
                                             445.0     458.9   1,692.9   1,892.7 
 
Technology                                   131.9      87.9     333.4     330.1 
 
                                             576.9     546.8   2,026.3   2,222.8 
 
Costs and expenses 
 
Cost of revenue: 
 
Services                                     367.8     405.4   1,429.4   1,590.6 
 
Technology                                    34.0      25.1     113.9      98.2 
 
                                             401.8     430.5   1,543.3   1,688.8 
 
Selling, general and administrative          116.9      96.8     369.4     364.8 
 
Research and development                      10.5       9.2      26.6      31.3 
 
                                             529.2     536.5   1,939.3   2,084.9 
 
Operating income                              47.7      10.3      87.0     137.9 
 
Interest expense                               8.3      15.2      29.2      62.1 
 
Other (expense), net                       (195.3)    (27.9)   (329.6)   (136.4) 
 
Loss from continuing operations before     (155.9)    (32.8)   (271.8)    (60.6) 
income taxes 
 
Provision for income taxes                    18.8       4.3      45.4      27.7 
 
Consolidated net loss from continuing      (174.7)    (37.1)   (317.2)    (88.3) 
operations 
 
Net income (loss) attributable to                -     (6.1)       0.5       3.9 
noncontrolling interests 
 
Net loss from continuing operations        (174.7)    (31.0)   (317.7)    (92.2) 
attributable to Unisys Corporation 
 
Income from discontinued operations, net       1.6      20.2   1,068.4      75.0 
of tax 
 
Net income (loss) attributable to Unisys     $       $           $       $ 
Corporation                                (173.1)    (10.8)     750.7    (17.2) 
 
Earnings (loss) per share attributable to 
Unisys Corporation 
 
Basic 
 
Continuing Operations                      $         $         $         $ 
                                            (2.77)    (0.50)    (5.05)    (1.65) 
 
Discontinued Operations                       0.02      0.33     16.98      1.34 
 
Total                                      $         $           $       $ 
                                            (2.75)    (0.17)     11.93    (0.31) 
 
Diluted 
 
Continuing Operations                      $         $         $         $ 
                                            (2.77)    (0.50)    (5.05)    (1.65) 
 
Discontinued Operations                       0.02      0.33     16.98      1.34 
 
Total                                      $         $           $       $ 
                                            (2.75)    (0.17)     11.93    (0.31) 
 
 
 
                              UNISYS CORPORATION 
 
                               SEGMENT RESULTS 
 
                                 (Unaudited) 
 
                                  (Millions) 
 
                              Total     Eliminations    Services   Technology 
 
Three Months Ended December 
31, 2020 
 
Customer revenue               $        $                 $            $ 
                                 576.9              -       445.0        131.9 
 
Intersegment                         -          (5.4)           -          5.4 
 
Total revenue                  $          $               $            $ 
                                 576.9          (5.4)       445.0        137.3 
 
Gross profit percent            30.4 %                     18.4 %       73.2 % 
 
Operating profit percent         8.3 %                      1.6 %       54.3 % 
 
Three Months Ended December 
31, 2019 
 
Customer revenue               $        $                 $          $ 
                                 546.8              -       458.9         87.9 
 
Intersegment                         -          (8.4)           -          8.4 
 
Total revenue                  $          $               $          $ 
                                 546.8          (8.4)       458.9         96.3 
 
Gross profit percent            21.3 %                     15.2 %       71.9 % 
 
Operating profit percent         1.9 %                     (1.0)%       49.7 % 
 
                              Total     Eliminations    Services   Technology 
 
Year Ended December 31, 
2020 
 
Customer revenue                 $      $                   $          $ 
                               2,026.3              -     1,692.9        333.4 
 
Intersegment                         -         (16.3)           -         16.3 
 
Total revenue                    $          $               $          $ 
                               2,026.3         (16.3)     1,692.9        349.7 
 
Gross profit percent            23.8 %                     16.5 %       65.0 % 
 
Operating profit percent         4.3 %                      0.7 %       40.8 % 
 
Year Ended December 31, 
2019 
 
Customer revenue                 $      $                   $          $ 
                               2,222.8              -     1,892.7        330.1 
 
Intersegment                         -         (15.2)           -         15.2 
 
Total revenue                    $          $               $          $ 
                               2,222.8         (15.2)     1,892.7        345.3 
 
Gross profit percent            24.0 %                     16.2 %       69.0 % 
 
Operating profit percent         6.2 %                      1.1 %       46.1 % 
 
 
 
                              UNISYS CORPORATION 
 
                          CONSOLIDATED BALANCE SHEETS 
 
                                  (Unaudited) 
 
                                  (Millions) 
 
                                           December 31,        December 31, 
                                               2020                2019 
 
Assets 
 
Current assets: 
 
Cash and cash equivalents                    $                   $ 
                                                     898.5               538.8 
 
Accounts receivable, net                             460.5               417.7 
 
Contract assets                                       44.3                38.4 
 
Inventories                                           13.4                16.4 
 
Prepaid expenses and other current                    89.3               100.7 
assets 
 
Current assets of discontinued                           -               109.3 
operations 
 
Total current assets                               1,506.0             1,221.3 
 
Properties                                           727.0               784.0 
 
Less-accumulated depreciation and                    616.5               668.0 
amortization 
 
Properties, net                                      110.5               116.0 
 
Outsourcing assets, net                              173.9               202.1 
 
Marketable software, net                             193.6               186.8 
 
Operating lease right-of-use assets                   79.3                71.4 
 
Prepaid postretirement assets                        187.5               136.2 
 
Deferred income taxes                                136.2               114.0 
 
Goodwill                                             108.6               110.4 
 
Restricted cash                                        8.2                13.0 
 
Other long-term assets                               204.1               198.9 
 
Long-term assets of discontinued                         -               133.9 
operations 
 
Total assets                                   $                   $ 
                                                   2,707.9             2,504.0 
 
Liabilities and deficit 
 
Current liabilities: 
 
Current maturities of long-term-debt         $                 $ 
                                                     102.8                13.5 
 
Accounts payable                                     223.2               204.3 
 
Deferred revenue                                     257.1               246.4 
 
Other accrued liabilities                            352.0               316.7 
 
Current liabilities of discontinued                      -               146.4 
operations 
 
Total current liabilities                            935.1               927.3 
 
Long-term debt                                       527.1               565.9 
 
Long-term postretirement liabilities               1,286.1             1,960.2 
 
Long-term deferred revenue                           137.9               147.0 
 
Long-term operating lease liabilities                 62.4                56.0 
 
Other long-term liabilities                           71.4                47.6 
 
Long-term liabilities of discontinued                    -                28.3 
operations 
 
Commitments and contingencies 
 
Total Unisys Corporation stockholders'             (356.8)           (1,265.4) 
deficit 
 
Noncontrolling interests                              44.7                37.1 
 
Total deficit                                      (312.1)           (1,228.3) 
 
Total liabilities and deficit                  $                   $ 
                                                   2,707.9             2,504.0 
 
 
 
                              UNISYS CORPORATION 
 
                     CONSOLIDATED STATEMENTS OF CASH FLOWS 
 
                                  (Unaudited) 
 
                                  (Millions) 
 
                                                                Year Ended 
                                                               December 31, 
 
                                                             2020       2019 
 
Cash flows from operating activities 
 
Consolidated net loss from continuing operations                 $        $ 
                                                             (317.2)     (88.3) 
 
Income from discontinued operations, net of tax              1,068.4       75.0 
 
Adjustments to reconcile consolidated net loss to net cash 
(used for) provided by operating activities: 
 
Gain on sale of U.S. Federal business                      (1,060.0)          - 
 
Foreign currency translation losses                             36.2       11.0 
 
Non-cash interest expense                                        4.6        9.2 
 
Debt extinguishment charge                                      28.5       20.1 
 
Employee stock compensation                                     14.5       13.2 
 
Depreciation and amortization of properties                     29.7       35.3 
 
Depreciation and amortization of outsourcing assets             65.8       63.8 
 
Amortization of marketable software                             65.5       48.3 
 
Other non-cash operating activities                            (0.3)      (1.6) 
 
Loss on disposal of capital assets                               4.5        1.5 
 
Postretirement contributions                                 (832.2)    (109.4) 
 
Postretirement expense                                         239.2       96.6 
 
Deferred income taxes, net                                    (13.4)        4.4 
 
Changes in operating assets and liabilities: 
 
Receivables, net and contract assets                          (74.8)      (8.3) 
 
Inventories                                                      3.0        6.1 
 
Other assets                                                     5.9        9.9 
 
Accounts payable and current liabilities                         3.4    (114.4) 
 
Other liabilities                                               47.5       51.5 
 
Net cash (used for) provided by operating activities         (681.2)      123.9 
 
Cash flows from investing activities 
 
Net proceeds from sale of U.S. Federal business              1,162.9          - 
 
Proceeds from investments                                    3,388.5    3,568.9 
 
Purchases of investments                                   (3,379.2)  (3,566.1) 
 
Capital additions of properties                               (27.7)     (38.0) 
 
Capital additions of outsourcing assets                       (30.1)     (48.8) 
 
Investments in marketable software                            (72.3)     (73.0) 
 
Net proceeds from sale of properties                               -      (0.3) 
 
Other                                                          (0.5)      (0.9) 
 
Net cash provided by (used for) investing activities         1,041.6    (158.2) 
 
Cash flows from financing activities 
 
Cash paid in connection with debt extinguishment              (23.7)     (56.7) 
 
Proceeds from capped call transactions                             -        7.2 
 
Payments of long-term debt                                   (454.8)     (14.4) 
 
Proceeds from issuance of long-term debt                       497.3       30.5 
 
Issuance costs relating to long-term debt                      (7.9)          - 
 
Other                                                          (5.8)      (4.6) 
 
Net cash provided by (used for) financing activities             5.1     (38.0) 
 
Effect of exchange rate changes on cash, cash equivalents     (10.6)          - 
and restricted cash 
 
Increase (decrease) in cash, cash equivalents and              354.9     (72.3) 
restricted cash 
 
Cash, cash equivalents and restricted cash, beginning of       551.8      624.1 
year 
 
Cash, cash equivalents and restricted cash, end of year          $          $ 
                                                               906.7      551.8 
 
 
 
                              UNISYS CORPORATION 
 
         RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES 
 
                                  (Unaudited) 
 
                       (Millions, except per share data) 
 
                                         Three Months Ended      Year Ended 
 
                                            December 31,        December 31, 
 
                                           2020      2019      2020      2019 
 
GAAP net loss from continuing               $       $           $       $ 
operations attributable                   (174.7)    (31.0)   (317.7)    (92.2) 
to Unisys Corporation 
 
Postretirement expense:  pretax             166.4      25.1     239.2      96.6 
 
                         tax                  0.4       0.2       1.5         - 
 
                         net of tax         166.0      24.9     237.7      96.6 
 
Debt extinguishment,     pretax              58.6      22.7     156.0      51.4 
cost reduction and 
other expenses: 
 
                         tax                  0.7         -       1.6       1.8 
 
                         net of tax          57.9      22.7     154.4      49.6 
 
                         minority               -       0.6       0.4       7.2 
                         interest 
 
                         net of              57.9      23.3     154.8      56.8 
                         minority 
                         interest 
 
Non-GAAP net income from continuing          49.2      17.2      74.8      61.2 
operations attributable 
to Unisys Corporation 
 
Add interest expense on convertible             -       2.1         -      15.3 
notes 
 
Non-GAAP net income attributable to       $         $         $         $ 
Unisys Corporation for                       49.2      19.3      74.8      76.5 
diluted earnings per share 
 
Weighted average shares (thousands)        63,038    62,397    62,932    55,961 
 
Plus incremental shares from assumed 
conversion: 
 
                         Employee stock       805       456       580       411 
                         plans 
 
                         Convertible        3,400     8,626     3,400    16,577 
                         notes 
 
Non-GAAP adjusted weighted average         67,243    71,479    66,912    72,949 
shares 
 
Diluted earnings (loss) per share from 
continuing operations 
 
GAAP basis 
 
GAAP net loss from continuing               $       $           $       $ 
operations attributable to Unisys         (174.7)    (31.0)   (317.7)    (92.2) 
Corporation for diluted earnings per 
share 
 
Divided by weighted average shares         63,038    62,397    62,932    55,961 
 
GAAP diluted loss per share               $         $         $         $ 
                                           (2.77)    (0.50)    (5.05)    (1.65) 
 
Non-GAAP basis 
 
Non-GAAP net income from continuing       $         $         $         $ 
operations attributable to                   49.2      19.3      74.8      76.5 
Unisys Corporation for diluted earnings 
per share 
 
Divided by Non-GAAP adjusted weighted      67,243    71,479    66,912    72,949 
average shares 
 
Non-GAAP diluted loss per share           $         $         $         $ 
                                             0.73      0.27      1.12      1.05 
 
 
 
                              UNISYS CORPORATION 
 
                      RECONCILIATION OF GAAP TO NON-GAAP 
 
                                  (Unaudited) 
 
                                  (Millions) 
 
                                FREE CASH FLOW 
 
                                               Three Months       Year Ended 
                                                   Ended 
 
                                               December 31,      December 31, 
 
                                               2020     2019    2020     2019 
 
Cash (used for) provided by operations          $       $        $        $ 
                                              (355.4)   125.7  (681.2)    123.9 
 
Additions to marketable software               (17.5)  (16.8)   (72.3)   (73.0) 
 
Additions to properties                        (11.0)   (8.9)   (27.7)   (38.0) 
 
Additions to outsourcing assets                 (6.5)   (4.4)   (30.1)   (48.8) 
 
Free cash flow                                (390.4)    95.6  (811.3)   (35.9) 
 
Postretirement funding                          487.7    27.1    832.2    109.4 
 
Discontinued operations                           0.7  (27.1)    (8.4)  (100.3) 
 
Debt extinguishment, cost reduction and           6.6    16.4     30.1     53.5 
other payments, net of reimbursements 
 
Adjusted free cash flow                         $       $      $        $ 
                                                104.6   112.0     42.6     26.7 
 
 
 
                              UNISYS CORPORATION 
 
                      RECONCILIATION OF GAAP TO NON-GAAP 
 
                                  (Unaudited) 
 
                                  (Millions) 
 
                                    EBITDA 
 
                                      Three Months Ended        Year Ended 
 
                                         December 31,          December 31, 
 
                                        2020      2019       2020       2019 
 
Net loss from continuing operations      $        $            $        $ 
attributable to Unisys                 (174.7)     (31.0)    (317.7)     (92.2) 
Corporation 
 
Net income (loss) attributable to            -      (6.1)        0.5        3.9 
noncontrolling interests 
 
Interest expense, net of interest          7.0       13.2       21.9       51.5 
income of $1.3, $2.0, $7.3, $10.6 
respectively* 
 
Provision for income taxes                18.8        4.3       45.4       27.7 
 
Depreciation                              24.6       25.1       95.5       99.1 
 
Amortization                              15.3       13.3       65.5       48.3 
 
EBITDA                                   $        $          $            $ 
                                       (109.0)       18.8     (88.9)      138.3 
 
Postretirement expense                   $        $            $        $ 
                                         166.4       25.1      239.2       96.6 
 
Debt extinguishment, cost reduction       58.6       22.7      147.8       50.3 
and other expenses** 
 
Non-cash share based expense               3.4        3.1       14.5       13.2 
 
Other expense, net adjustment***           4.8        5.2        7.2       20.1 
 
Adjusted EBITDA                          $        $            $          $ 
                                         124.2       74.9      319.8      318.5 
 
*Included in other expense, net on the consolidated statements of income 
 
**Reduced for depreciation and amortization included above 
 
***Other expense, net as reported on the consolidated statements of income 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, 
 
                                        2020      2019       2020       2019 
 
Revenue                                  $          $            $          $ 
                                         576.9      546.8    2,026.3    2,222.8 
 
Non-GAAP revenue                         576.9      544.6    2,025.3    2,205.3 
 
Net loss from continuing operations    (30.3)%     (5.7)%    (15.7)%     (4.1)% 
attributable to Unisys 
Corporation as a percentage of 
revenue 
 
Non-GAAP net income from continuing      8.5 %      3.2 %      3.7 %      2.8 % 
operations attributable to 
Unisys Corporation as a percentage 
of Non-GAAP revenue 
 
Adjusted EBITDA as a percentage of      21.5 %     13.8 %     15.8 %     14.4 % 
Non-GAAP revenue 
 
 
 
                              UNISYS CORPORATION 
 
    RECONCILIATION OF GAAP SEGMENT REPORTING TO NON-GAAP SEGMENT REPORTING 
 
                                  (Unaudited) 
 
                                  (Millions) 
 
                                Three Months Ended            Year Ended 
 
Services Segment                   December 31,              December 31, 
 
                                2020         2019         2020         2019 
 
GAAP total revenue           $     445.0  $     458.9  $   1,692.9  $   1,892.7 
 
Restructuring                          -        (2.2)        (1.0)       (17.5) 
reimbursement 
 
Non-GAAP revenue             $     445.0  $     456.7  $   1,691.9  $   1,875.2 
 
GAAP gross margin                $            $        $     279.3  $     307.4 
                                    81.9         69.6 
 
Restructuring                          -        (2.2)        (1.0)       (17.5) 
reimbursement 
 
Non-GAAP gross margin            $            $        $     278.3  $     289.9 
                                    81.9         67.4 
 
GAAP operating profit          $            $              $            $ 
                                     7.1        (4.6)         12.2         20.8 
 
Restructuring                          -        (2.2)        (1.0)       (17.5) 
reimbursement 
 
Non-GAAP operating profit      $            $              $          $ 
                                     7.1        (6.8)         11.2          3.3 
 
GAAP gross margin %                18.4%        15.2%        16.5%        16.2% 
 
Non-GAAP gross margin %            18.4%        14.8%        16.4%        15.5% 
 
GAAP operating profit %             1.6%       (1.0%)         0.7%         1.1% 
 
Non-GAAP operating profit           1.6%       (1.5%)         0.7%         0.2% 
% 
 
                                Three Months Ended            Year Ended 
 
Total Unisys                       December 31,              December 31, 
 
                                2020         2019         2020         2019 
 
GAAP total revenue           $     576.9  $     546.8  $   2,026.3  $   2,222.8 
 
Restructuring                          -        (2.2)        (1.0)       (17.5) 
reimbursement 
 
Non-GAAP revenue             $     576.9  $     544.6  $   2,025.3  $   2,205.3 
 
GAAP gross margin                  $            $            $            $ 
                                   175.1        116.3        483.0        534.0 
 
Restructuring                          -        (2.2)        (1.0)       (17.5) 
reimbursement 
 
Cost reduction expense               6.5         17.7         22.2         11.0 
 
Non-GAAP gross margin        $     181.6  $     131.8  $     504.2  $     527.5 
 
GAAP operating profit            $            $            $              $ 
                                    47.7         10.3         87.0        137.9 
 
Restructuring                          -        (2.2)        (1.0)       (17.5) 
reimbursement 
 
Postretirement expense               0.8          0.8          3.3          3.3 
 
Cost reduction and other            32.4         24.4         63.2         35.2 
expense 
 
Non-GAAP operating profit        $            $        $     152.5  $     158.9 
                                    80.9         33.3 
 
GAAP gross margin %                30.4%        21.3%        23.8%        24.0% 
 
Non-GAAP gross margin %            31.5%        24.2%        24.9%        23.9% 
 
GAAP operating profit %             8.3%         1.9%         4.3%         6.2% 
 
Non-GAAP operating profit          14.0%         6.1%         7.5%         7.2% 
% 
 
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 
 
 

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February 23, 2021 02:00 ET (07:00 GMT)

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