Unisys Corp Unisys Announces 4Q and FY22 Results

 
TIDMUSY 
 
Unisys Announces 4Q and FY22 Results 
 
Solid Fourth Quarter Performance with Expansion in Next-Gen(7) Solutions 
 
  * 4Q revenue increased 3.3% year over year (YoY) and 7.0% in constant 
    currency(1) 
  * Full-year revenue declined 3.6% YoY and grew 0.1% in constant currency 
  * 4Q GAAP operating profit margin of 9.0%; non-GAAP operating profit margin 
    (8) of 20.2% 
  * Full-year GAAP operating profit margin of 2.6%; non-GAAP operating profit 
    margin of 8.0% 
  * 4Q total company pipeline(3) growth of 15% YoY 
  * Full year book-to-bill(6) of 1.1x in 2022, up from 0.8x in 2021 
  * Year-end global GAAP pension deficit improvement of approximately $210M 
  * Company issues full-year 2023 guidance of (3.0%) to (7.0%) YoY constant 
    currency revenue growth, 2.0% to 4.0% non-GAAP operating margin, and 9.5% 
    to 11.5% adjusted EBITDA margin 
  * Guidance reflects expectations for (1%) to 4% constant currency revenue 
    growth excluding License and Support (L&S) revenue within Enterprise 
    Computing Solutions 
 
BLUE BELL, Pa., Feb. 22, 2023 -- Unisys Corporation (NYSE: UIS) today reported 
fourth-quarter and full-year 2022 financial results. 
 
"We had a solid finish to the year, delivering 7% year-over-year constant 
currency revenue growth in the fourth quarter.  Our higher growth and higher 
margin Next-Gen Solutions are building momentum in the marketplace, growing 
total contract value(5) more than 80% versus the prior year quarter and more 
than doubling annual contract value(4)   versus the prior year quarter.  As we 
start 2023, we believe the new Unisys brand is resonating with our clients, 
prospects, third party advisors, and industry analysts," said Unisys Chair and 
CEO Peter A. Altabef. "Our pipeline is stronger than it was a year ago, and our 
trailing twelve month book-to-bill expanded year-over-year to 1.1x. Although 
the light license and support renewal schedule for 2023 is expected to drive an 
overall decline in revenue and profit for the year, we expect revenue and 
margin improvement in the remainder of the business." 
 
Summary of Full-Year 2022 Results 
 
Please refer to the accompanying financial tables for a reconciliation of the 
GAAP to non-GAAP measures presented except for financial guidance since such a 
reconciliation is not practicable without unreasonable effort. 
 
  * Revenue: 
      + Revenue of $1.980B vs. $2.054B in 2021, down 3.6% YoY; up 0.1% in 
        constant currency 
  * Gross Profit: 
      + Gross profit of $529.6M vs. $572.0M in 2021, down 7.4% YoY 
      + Gross margin of 26.7% vs. 27.8% in 2021, down 110 bps YoY 
  * Operating Profit: 
      + Operating profit of $52.2M vs. $154.0M in 2021, down 66.1% YoY 
        primarily driven by charges related to cost-reduction activities and 
        other non-recurring expenses 
          o Operating profit margin of 2.6% vs. 7.5% in 2021 
      + Non-GAAP operating profit of $159.0M vs. $192.8M in 2021, down 17.5% 
        YoY driven by an increase in marketing expense related to the launch of 
        the new Unisys brand, the exit of certain non-strategic contracts and 
        additional expense associated with certain contracts 
          o Non-GAAP operating profit margin of 8.0% vs. 9.4% in 2021 
  * Net Income: 
      + Net loss of $106.0M driven by increased charges related to 
        cost-reduction activities and other non-recurring expenses vs. net loss 
        of $448.5M in 2021, which included $447.9 million of after-tax 
        settlement losses related to the company's defined benefit pension 
        plans 
      + Non-GAAP net income(10) of $74.8M vs. $117.5M in 2021, down 36.3% YoY 
  * Adjusted EBITDA: 
      + Adjusted EBITDA(9)  of $325.8M vs. $369.9M in 2021, down 11.9% YoY 
      + Adjusted EBITDA margin of 16.5% vs. 18.0% in 2021, down 150 bps YoY 
  * Earnings/Loss Per Share: 
      + Loss per diluted share of $1.57 vs. loss per diluted share of $6.75 in 
        2021, driven by the same factors noted above with respect to GAAP net 
        loss 
      + Non-GAAP diluted earnings per share of $1.10 vs. $1.75 in 2021 
  * Cash Flow: 
      + Cash from operations of $12.7M vs. $132.5M in 2021 
      + Free cash flow(11) of $(73.2)M vs. $32.3M in 2021, primarily due to 
        lower profitability and lower technology collections in 2022 vs. 2021 
      + Adjusted free cash flow(12) of $27.0M vs. $172.2M in 2021 
  * Pipeline, ACV, TCV, Book-to-Bill: 
      + Solid year-over-year growth in pipeline, ACV, and TCV driven by 
        expansion across our Next-Gen Solutions of Modern Workplace, Digital 
        Platforms and Applications (DP&A), Specialized Services and Next-Gen 
        Compute (SS&C) and Micro-Market Solutions 
      + Pipeline: increased 15% YoY 
      + ACV: increased 36% YoY 
      + TCV: increased 28% YoY 
      + Trailing-twelve-month book-to-bill: 1.1x up from 0.8x in 2021 
  * Balance Sheet: 
      + As of December 31, 2022, total cash and cash equivalents was $391.8M 
      + Year-end global GAAP pension deficit improvement of approximately $210M 
        to $543.1M 
 
Full-Year 2022 Financial Highlights by Segment: 
 
Digital Workplace Solutions (DWS): The company continues the transformation of 
its DWS business as clients shift into higher growth and margin Modern 
Workplace solutions 
 
  * Revenue: 
      + DWS revenue of $509.9M vs. $574.5M in 2021, a decline of 11.2% YoY or a 
        decline of 7.3% in constant currency, primarily due to an $82.5M impact 
        from non-strategic contracts exited in 2021 
      + Excluding these contracts, DWS revenue grew 3.7% YoY, or 8.4% in 
        constant currency, driven by demand for Modern Workplace solutions 
  * Gross Margin: 
      + DWS gross profit margin of 14.0% vs. 13.8% in 2021 
 
Cloud, Applications & Infrastructure Solutions (CA&I): Continued expansion of 
DP&A solutions within CA&I. The company continues to evolve its portfolio in 
this direction. 
 
  * Revenue: 
      + CA&I revenue of $520.3M vs. $485.6M in 2021, up 7.1% YoY, or 9.4% in 
        constant currency primarily driven by expansion of DP&A solutions and 
        our acquired application development solutions 
  * Gross Margin: 
      + CA&I gross profit margin of 9.1% vs. 9.7% in 2021, down 60 bps YoY 
        driven by additional expense associated with certain contract exits and 
        higher labor costs 
 
Enterprise Computing Solutions (ECS): The company is delivering innovation in 
industry solutions and next-gen compute capabilities to reinvigorate new logo 
growth in ECS 
 
  * Revenue: 
      + ECS revenue of $669.7M vs. $685.7M in 2021, down 2.3% YoY, or up 0.1% 
        YoY in constant currency 
  * Gross Margin: 
      + ECS gross profit margin of 64.5% vs. 63.4% in 2021 
 
Summary of Fourth Quarter 2022 Results 
 
  * Revenue: 
      + Revenue of $557.0M vs. $539.3M in 4Q21, up 3.3% YoY, or 7.0% in 
        constant currency 
      + Growth was driven by strength in CA&I and a strong quarter of license 
        renewals within ECS, particularly with clients in the travel and 
        financial services sectors 
  * Gross Profit: 
      + Gross profit of $189.8M vs. $163.7M in 4Q21, up 15.9% YoY 
      + Gross profit margin of 34.1% vs 30.4% in 4Q21 
      + 370 bps YoY improvement driven by higher ECS revenue and improvements 
        to delivery efficiency in DWS and CA&I 
  * Operating Profit: 
      + GAAP operating profit of $50.0M vs. $44.5M in 4Q21, up 12.4% YoY 
      + GAAP operating profit margin of 9.0% vs 8.3% in 4Q21 
      + Non-GAAP operating profit of $112.4M vs. $63.3M in 4Q21, up 77.6% YoY 
      + Non-GAAP operating profit margin of 20.2% vs. 11.7% in 4Q21 
  * Net Income: 
      + GAAP net income of $8.5M vs. a net loss of $131.2M in 4Q21 
      + Non-GAAP net income of $82.8M vs. $34.8M in 4Q21, up 137.9% YoY 
  * Adjusted EBITDA 
      + Adjusted EBITDA of $148.7M vs. $107.0M in 4Q21, up 39.0% YoY 
      + Adjusted EBITDA margin of 26.7% vs. 19.8% in 4Q21 
  * Earnings/Loss Per Share: 
      + Diluted earnings per share of $0.12 vs. diluted loss per share of $1.95 
        in 4Q21 
      + Non-GAAP diluted earnings per share of $1.22 vs. $0.51 in 4Q21 
  * Cash Flow: 
      + Cash from operations was $34.9M vs. $68.0M in 4Q21 
      + Free cash flow was $13.8M vs. $44.3M in 4Q21 
      + Adjusted free cash flow was $39.3M vs. $72.2M in 4Q21 
      + Year-over-year decline in free cash flow primarily due to lower 
        technology collections in 2022 vs. 2021 
  * ACV, TCV & Backlog: 
      + 4Q ACV: increased 58% YoY 
      + 4Q TCV: increased 55% YoY 
          o Driven by strength across Next-Gen Solutions and higher renewal 
            levels in DWS 
      + Backlog(2):  $2.92B from $2.69B in 3Q22, a $230M expansion 
        quarter-over-quarter 
 
Fourth Quarter 2022 Financial Highlights by Segment: 
 
Strong 4Q constant currency growth and margin expansion in CA&I and ECS 
 
DWS: 
 
  * Revenue: 
      + DWS revenue of $127.8M vs. $140.0M in 4Q21, down 8.7% YoY, or down 3.0% 
        in constant currency due to a $12M impact from the exit of several 
        non-strategic accounts in 2021 
  * Gross Profit Margin: 
      + DWS gross profit margin of 15.1% vs. 14.0% in 4Q21, up 110 bps YoY 
        driven by increased delivery efficiency 
 
CA&I: 
 
  * Revenue: 
      + CA&I revenue of $138.8M vs. $127.3M in 4Q21, up 9.0% YoY, or 11.6% in 
        constant currency 
  * Gross Profit Margin: 
      + CA&I gross profit margin of 19.0% vs. 13.4% in 4Q21, up 560 bps YoY 
        primarily due to expansion of DP&A solutions and our acquired 
        application development solutions 
 
ECS: 
 
  * Revenue: 
      + ECS revenue of $225.6M vs. $193.6M in 4Q21, up 16.5% YoY, or 16.8% in 
        constant currency 
  * Gross Profit Margin: 
      + ECS gross profit margin of 73.3% vs. 65.3% in 4Q21, up 800 bps YoY due 
        to flow through from higher license renewal levels during the quarter 
 
2023 Financial Guidance 
 
The company has issued full-year 2023 revenue and profitability guidance. 

Constant currency revenue growth is expected to be in the range of (3.0%) to 
(7.0%) YoY. The company anticipates that non-GAAP operating profit margin will 
be in the range of 2.0% to 4.0% and adjusted EBITDA margin in the range of 9.5% 
to 11.5%. 
 
Conference Call 
 
Unisys will hold a conference call with the financial community on Thursday, 
February 23 at 8 a.m. Eastern Time to discuss the results. 
 
The live, listen-only webcast, as well as the accompanying presentation 
materials, can be accessed on the Unisys Investor Website at www.unisys.com/ 
investor. In addition, domestic callers can dial 1-844-695-5518 and 
international callers can dial 1-412-902-6749 and provide the following 
conference passcode: Unisys Corporation Call. 
 
A replay of the webcast will be available on the Unisys Investor Website 
shortly following the conference call. A replay will also be available by 
dialing 1-877-344-7529 for domestic callers or 1-412-317-0088 for international 
callers and entering access code 5843310 from two hours after the end of the 
call until March 9, 2023. 
 
(1) Constant currency - A significant amount of the company's revenue is 
derived from international operations. As a result, the company's revenue has 
been and will continue to be affected by changes in the U.S. dollar against 
major international currencies. The company refers to revenue 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 revenue at a consistent exchange rate rather than the actual 
exchange rates in effect during the respective periods. 
 
(2) Backlog - Represents future revenue associated with contracted work which 
has not yet been delivered or performed. Although the company believes this 
revenue will be recognized, it may, for commercial reasons, allow the orders to 
be cancelled, with or without penalty. 
 
(3) Pipeline - Represents qualified prospective sale opportunities for which 
bids have been submitted or vetted prospective sales opportunities which are 
being actively pursued. There is no assurance that pipeline will translate into 
recorded revenue. 
 
(4) Annual Contract Value (ACV) - Represents the revenue expected to be 
recognized during the first 12 months following the signing of a contract. 
 
(5) Total Contract Value (TCV) - Represents the estimated 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. 
 
(6) Book-to-bill  - Represents total contract value booked divided by revenue 
in a given period. 
 
(7) Next-Gen Solutions  - Includes our Modern Workplace solutions within DWS, 
Digital Platforms and Applications (DP&A) solutions within CA&I, Specialized 
Services and Next-Gen Compute (SS&C) solutions within ECS, as well as 
Micro-Market solutions. 
 
Non-GAAP Information 
 
Certain financial information is presented in this release under both a U.S. 
generally accepted accounting basis (GAAP) and a non-GAAP basis. Non-GAAP 
financial measures exclude certain items such as post-retirement expenses and 
cost-reduction activities and other expenses that the company believes are not 
indicative of its ongoing operations, as they may be unusual or non-recurring. 
The inclusion of such items in financial measures can make the company's 
profitability and liquidity results difficult to compare to prior periods or 
anticipated future periods and can distort the visibility of trends associated 
with the company's ongoing performance. Management also believes that non-GAAP 
measures are useful to investors because they provide supplemental information 
about the company's financial performance and liquidity, as well as greater 
transparency into management's view and assessment of the company's ongoing 
operating performance. The following measures are often provided and utilized 
by the company's management, analysts, and investors to enhance comparability 
of year-over-year results. These measures should not be relied upon as 
substitutes for, or considered in isolation from, measures calculated in 
accordance with U.S. GAAP. 
 
(8) Non-GAAP operating profit - This measure excludes pretax postretirement 
expense and pretax charges in connection with cost-reduction activities and 
other expenses. 
 
(9) EBITDA & adjusted EBITDA  - Earnings before interest, taxes, depreciation 
and amortization (EBITDA) is calculated by starting with net income (loss) 
attributable to Unisys Corporation common shareholders and adding or 
subtracting the following items: net income (loss) attributable to 
noncontrolling interests, interest expense (net of interest income), provision 
for (benefit from) income taxes, depreciation and amortization.  Adjusted 
EBITDA further excludes postretirement expenses and cost-reduction activities 
and other expenses, non-cash share-based expense, and other (income) expense 
adjustments. 
 
(10) Non-GAAP net income and non-GAAP diluted earnings per share - These 
measures excluded postretirement expense and charges in connection with 
cost-reduction activities and other expenses.  The tax amounts related to 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 
items. 
 
(11) Free cash flow - Represents cash flow from operations less capital 
expenditures. 
 
(12) Adjusted free cash flow - Represents free cash flow less cash used for 
postretirement funding and cost-reduction activities and other payments. 
 
About Unisys 
 
Unisys is a global technology solutions company that powers breakthroughs for 
the world's leading organizations. Our solutions - digital workplace; cloud, 
applications & infrastructure; enterprise computing; and business process - 
help our clients challenge the status quo and create new possibilities. To 
learn how we deliver breakthroughs for our clients, 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 our 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 our future results 
include, but are not limited to, the following: our ability to grow revenue and 
expand margin in our Digital Workplace Solutions and Cloud, Applications & 
Infrastructure Solutions businesses; our ability to maintain our installed base 
and sell new solutions and related services; our ability to attract and retain 
experienced personnel in key positions; the potential adverse effects of 
aggressive competition; 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; the business 
and financial risk in implementing acquisitions or dispositions; we have 
significant underfunded pension obligations; cybersecurity incidents could 
result in incurring significant costs and could harm our business and 
reputation; our failure to remediate material weaknesses in our disclosure 
controls and procedures and internal controls over financial reporting or any 
other material weaknesses in the future could result in material misstatements 
in our financial statements; our ability to access financing markets; the risks 
of doing business internationally when a significant portion of our revenue is 
derived from international operations; the adverse effects of global economic 
conditions, acts of war, terrorism, natural disasters or the widespread 
outbreak of infectious diseases; a reduction in our credit rating; a 
significant disruption in our IT systems could adversely affect our business 
and reputation; the performance and capabilities of third parties with whom we 
have commercial relationships; 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; a potential impairment of goodwill or intangible assets; a failure 
to meet standards or expectations with respect to our environmental, social and 
governance practices; 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 our future results is contained in our 
periodic filings with the Securities and Exchange Commission. We assume 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 we may provide from time to time regarding our 

expected future financial performance is effective only on the date given. We 
generally will not update, reaffirm or otherwise comment on any such 
information except as we deem necessary, and then only in a manner that 
complies with Regulation FD. 
 
RELEASE NO.: 0222/9898 
 
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, 
 
                                             2022      2021     2022     2021 
 
Revenue 
 
Services                                       $        $           $        $ 
                                               409.7    430.5  1,597.3  1,699.3 
 
Technology                                     147.3    108.8    382.6    355.1 
 
                                               557.0    539.3  1,979.9  2,054.4 
 
Costs and expenses 
 
Cost of revenue: 
 
Services                                       324.3    339.0  1,285.9  1,358.7 
 
Technology                                      42.9     36.6    164.4    123.7 
 
                                               367.2    375.6  1,450.3  1,482.4 
 
Selling, general and administrative            132.9    109.8    453.2    389.5 
 
Research and development                         6.9      9.4     24.2     28.5 
 
                                               507.0    494.8  1,927.7  1,900.4 
 
Operating income                                50.0     44.5     52.2    154.0 
 
Interest expense                                 7.8      8.4     32.4     35.4 
 
Other (expense), net                          (16.2)  (145.7)   (82.4)  (580.3) 
 
Earnings (loss) before income taxes             26.0  (109.6)   (62.6)  (461.7) 
 
Provision (benefit) for income taxes            17.2     21.9     42.3   (11.9) 
 
Consolidated net earnings (loss)                 8.8  (131.5)  (104.9)  (449.8) 
 
Net income (loss) attributable to                0.3    (0.3)      1.1    (1.3) 
noncontrolling interests 
 
Net income (loss) attributable to Unisys   $             $        $        $ 
Corporation                                      8.5  (131.2)  (106.0)  (448.5) 
 
Earnings (loss) per common share 
attributable to Unisys Corporation 
 
Basic                                        $          $        $        $ 
                                                0.13   (1.95)   (1.57)   (6.75) 
 
Diluted                                      $          $        $        $ 
                                                0.12   (1.95)   (1.57)   (6.75) 
 
 
 
                              UNISYS CORPORATION 
                                SEGMENT RESULTS 
                                  (Unaudited) 
                                  (Millions) 
 
                             Total      DWS       CA&I      ECS        Other 
 
Three Months Ended 
December 31, 2022 
 
Customer revenue               $         $         $         $       $ 
                               557.0     127.8     138.8     225.6         64.8 
 
Intersegment                       -         -         -         -            - 
 
Total revenue                  $         $         $         $       $ 
                               557.0     127.8     138.8     225.6         64.8 
 
Gross profit percent          34.1 %    15.1 %    19.0 %    73.3 % 
 
Three Months Ended 
December 31, 2021 
 
Customer revenue               $         $         $         $       $ 
                               539.3     140.0     127.3     193.6         78.4 
 
Intersegment                       -         -         -         -            - 
 
Total revenue                  $         $         $         $       $ 
                               539.3     140.0     127.3     193.6         78.4 
 
Gross profit percent          30.4 %    14.0 %    13.4 %    65.3 % 
 
                             Total      DWS       CA&I      ECS        Other 
 
Year Ended December 31, 
2022 
 
Customer revenue                  $      $         $         $         $ 
                             1,979.9     509.9     520.3     669.7        280.0 
 
Intersegment                       -         -         -         -            - 
 
Total revenue                     $      $         $         $         $ 
                             1,979.9     509.9     520.3     669.7        280.0 
 
Gross profit percent          26.7 %    14.0 %     9.1 %    64.5 % 
 
Year Ended December 31, 
2021 
 
Customer revenue                  $      $         $         $         $ 
                             2,054.4     574.5     485.6     685.7        308.6 
 
Intersegment                       -         -         -       1.4        (1.4) 
 
Total revenue                     $      $         $         $         $ 
                             2,054.4     574.5     485.6     687.1        307.2 
 
Gross profit percent          27.8 %    13.8 %     9.7 %    63.4 % 
 
 
 
                              UNISYS CORPORATION 
                          CONSOLIDATED BALANCE SHEETS 
                                  (Unaudited) 
                                  (Millions) 
 
                                             December 31,       December 31, 
                                                 2022               2021 
 
Assets 
 
Current assets 
 
Cash and cash equivalents                      $                  $ 
                                                       391.8              552.9 
 
Accounts receivable, net                               402.5              451.7 
 
Contract assets                                         28.9               42.0 
 
Inventories                                             14.9                7.6 
 
Prepaid expenses and other current assets               92.3               78.8 
 
Total current assets                                   930.4            1,133.0 
 
Properties                                             410.8              468.0 
 
Less - Accumulated depreciation and                    334.9              381.5 
amortization 
 
Properties, net                                         75.9               86.5 
 
Outsourcing assets, net                                 66.4              124.6 
 
Marketable software, net                               165.1              176.2 
 
Operating lease right-of-use assets                     42.5               62.7 
 
Prepaid postretirement assets                          119.5              159.7 
 
Deferred income taxes                                  118.6              125.3 
 
Goodwill                                               287.1              315.0 
 
Intangible assets, net                                  52.4               34.9 
 
Restricted cash                                         10.9                7.7 
 
Assets held-for-sale                                     6.4               20.0 
 
Other long-term assets                                 190.4              173.9 
 
Total assets                                      $                  $ 
                                                     2,065.6            2,419.5 
 
Total liabilities and equity (deficit) 
 
Current liabilities: 
 
Current maturities of long-term debt         $                  $ 
                                                        17.4               18.2 
 
Accounts payable                                       160.8              180.2 
 
Deferred revenue                                       200.7              253.2 
 
Other accrued liabilities                              271.6              300.9 
 
Total current liabilities                              650.5              752.5 
 
Long-term debt                                         495.7              511.2 
 
Long-term postretirement liabilities                   714.6              976.2 
 
Long-term deferred revenue                             122.3              150.7 
 
Long-term operating lease liabilities                   29.7               46.1 
 
Other long-term liabilities                             31.0               47.2 
 
Commitments and contingencies 
 
Total Unisys Corporation stockholders'                (14.7)            (113.7) 
deficit 
 
Noncontrolling interests                                36.5               49.3 
 
Total equity (deficit)                                  21.8             (64.4) 
 
Total liabilities and equity (deficit)            $                  $ 
                                                     2,065.6            2,419.5 
 
 
 
                              UNISYS CORPORATION 
                     CONSOLIDATED STATEMENTS OF CASH FLOWS 
                                  (Unaudited) 
                                  (Millions) 
 
                                                                Year Ended 
                                                               December 31, 
 
                                                             2022       2021 
 
Cash flows from operating activities 
 
Consolidated net loss                                         $          $ 
                                                             (104.9)    (449.8) 
 
Adjustments to reconcile consolidated net loss to net 
cash provided by operating activities: 
 
Foreign currency losses                                          6.8        2.6 
 
Non-cash interest expense                                        1.3        1.8 
 
Employee stock compensation                                     20.0       18.8 
 
Depreciation and amortization of properties                     50.2       30.5 
 

Depreciation and amortization of outsourcing assets             64.5       68.0 
 
Amortization of marketable software                             58.7       71.9 
 
Amortization of intangible assets                               10.1        3.0 
 
Other non-cash operating activities                              0.3      (0.6) 
 
Loss on disposal of capital assets                               6.6        2.2 
 
Postretirement contributions                                  (43.7)     (56.4) 
 
Postretirement expense                                          45.3      552.0 
 
Deferred income taxes, net                                     (8.3)     (59.2) 
 
Changes in operating assets and liabilities, excluding 
the effects of acquisitions: 
 
Receivables, net and contract assets                            15.5       47.4 
 
Inventories                                                    (8.0)        6.0 
 
Other assets                                                   (2.6)        8.0 
 
Accounts payable and other accrued liabilities               (103.8)    (149.4) 
 
Other liabilities                                                4.7       35.7 
 
Net cash provided by operating activities                       12.7      132.5 
 
Cash flows from investing activities 
 
Proceeds from investments                                    3,336.1    4,148.2 
 
Purchases of investments                                   (3,380.4)  (4,168.1) 
 
Capital additions of properties                               (31.0)     (27.3) 
 
Capital additions of outsourcing assets                        (8.6)     (18.5) 
 
Investment in marketable software                             (46.3)     (54.4) 
 
Purchases of businesses, net of cash acquired                  (0.3)    (239.3) 
 
Other                                                          (0.9)      (0.9) 
 
Net cash used for investing activities                       (131.4)    (360.3) 
 
Cash flows from financing activities 
 
Payments of long-term debt                                    (17.8)    (103.1) 
 
Proceeds from issuance of long-term debt                           -        1.5 
 
Proceeds from exercise of stock options                            -        4.5 
 
Other                                                          (3.8)      (8.4) 
 
Net cash used for financing activities                        (21.6)    (105.5) 
 
Effect of exchange rate changes on cash, cash equivalents     (17.6)     (12.8) 
and restricted cash 
 
Decrease in cash, cash equivalents and restricted cash       (157.9)    (346.1) 
 
Cash, cash equivalents and restricted cash, beginning of       560.6      906.7 
period 
 
Cash, cash equivalents and restricted cash, end of period   $          $ 
                                                               402.7      560.6 
 
 
 
                              UNISYS CORPORATION 
        RECONCILIATIONS OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES 
                                  (Unaudited) 
                       (Millions, except per share data) 
 
                                           Three Months Ended     Year Ended 
 
                                              December 31,       December 31, 
 
                                             2022      2021     2022     2021 
 
GAAP net income (loss) attributable to     $             $        $        $ 
Unisys Corporation                               8.5  (131.2)  (106.0)  (448.5) 
 
Postretirement        pretax                    11.2    144.3     45.3    552.0 
expense: 
 
                      tax                        0.1      0.4      0.5     53.2 
 
                      net of tax                11.1    143.9     44.8    498.8 
 
Cost reduction and    pretax                    66.6     22.1    139.5     67.8 
other expenses 
 
                      tax                        3.4        -      3.5      0.6 
 
                      net of tax                63.2     22.1    136.0     67.2 
 
                      noncontrolling               -        -        -        - 
                      interest 
 
                      net of                    63.2     22.1    136.0     67.2 
                      noncontrolling 
                      interest 
 
Non-GAAP net income attributable to          $        $        $          $ 
Unisys Corporation                              82.8     34.8     74.8    117.5 
 
Weighted average shares (thousands)           67,793   67,170   67,665   66,451 
 
Plus incremental shares from assumed 
conversion: 
 
                      Employee stock             331      914      481      871 
                      plans 
 
Non-GAAP adjusted weighted average shares     68,124   68,084   68,146   67,322 
 
Diluted earnings (loss) per share 
 
GAAP basis 
 
GAAP net income (loss) attributable to     $             $        $        $ 
Unisys Corporation                               8.5  (131.2)  (106.0)  (448.5) 
 
Divided by weighted average shares            68,124   67,170   67,665   66,451 
 
GAAP diluted earnings (loss)  per share      $          $        $        $ 
                                                0.12   (1.95)   (1.57)   (6.75) 
 
Non-GAAP basis 
 
Non-GAAP net income attributable to          $        $        $          $ 
Unisys Corporation for diluted earnings         82.8     34.8     74.8    117.5 
per share 
 
Divided by Non-GAAP adjusted weighted         68,124   68,084   68,146   67,322 
average shares 
 
Non-GAAP diluted earnings per share          $        $        $        $ 
                                                1.22     0.51     1.10     1.75 
 
 
 
                               UNISYS CORPORATION 
                      RECONCILIATIONS OF GAAP TO NON-GAAP 
                                  (Unaudited) 
                                   (Millions) 
 
                                 FREE CASH FLOW 
 
                               Three Months Ended             Year Ended 
 
                                  December 31,               December 31, 
 
                               2022          2021          2022         2021 
 
Cash provided by           $       34.9  $       68.0  $       12.7  $     132.5 
operations 
 
Additions to marketable          (11.1)        (12.3)        (46.3)       (54.4) 
software 
 
Additions to properties           (9.5)         (7.6)        (31.0)       (27.3) 
 
Additions to outsourcing          (0.5)         (3.8)         (8.6)       (18.5) 
assets 
 
Free cash flow                     13.8          44.3        (73.2)         32.3 
 
Postretirement funding              9.8          12.8          43.7         56.4 
 
Cost reduction and other           15.7          15.1          56.5         83.5 
payments 
 
Adjusted free cash flow    $       39.3  $       72.2  $       27.0  $     172.2 
 
 
 
                              UNISYS CORPORATION 
                     RECONCILIATIONS OF GAAP TO NON-GAAP 
                                 (Unaudited) 
                                  (Millions) 
 
                                    EBITDA 
 
                                      Three Months Ended        Year Ended 
 
                                         December 31,          December 31, 
 
                                        2022       2021       2022      2021 
 
Net income (loss) attributable to     $               $         $         $ 
Unisys Corporation                          8.5    (131.2)   (106.0)   (448.5) 
 
Net income (loss) attributable to           0.3      (0.3)       1.1     (1.3) 
noncontrolling interests 
 
Interest expense, net of interest           4.1        6.0      20.0      27.6 
income of $3.7, $2.4, $12.4, $7.8 
respectively* 
 
Provision (benefit) for income             17.2       21.9      42.3    (11.9) 
taxes 
 
Depreciation                               36.6       24.5     114.7      98.5 
 
Amortization                               18.4       22.3      68.8      74.9 
 
EBITDA                                  $            $         $          $ 
                                           85.1     (56.8)     140.9   (260.7) 
 
Postretirement expense                  $            $       $           $ 
                                           11.2      144.3      45.3     552.0 
 
Cost reduction and other expenses**        43.6       16.3     103.8      57.3 
 
Non-cash share based expense                4.3        2.7      19.0      14.2 
 
Other expense, net adjustment***            4.5        0.5      16.8       7.1 
 
Adjusted EBITDA                           $          $         $         $ 
                                          148.7      107.0     325.8     369.9 
 
*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 cost reduction and other expenses 
 
                                      Three Months Ended        Year Ended 
 
                                         December 31,          December 31, 
 
                                        2022       2021       2022      2021 
 
Revenue                                 $ 557.0    $ 539.3         $         $ 
                                                             1,979.9   2,054.4 
 
Net earnings (loss) attributable to       1.5 %   (24.3) %   (5.4) %  (21.8) % 
Unisys Corporation as a percentage 
of revenue 
 
Non-GAAP net income attributable to      14.9 %      6.5 %     3.8 %     5.7 % 
Unisys Corporation as a percentage 
of revenue 
 
Adjusted EBITDA as a percentage of       26.7 %     19.8 %    16.5 %    18.0 % 
revenue 
 
 
 
                                    UNISYS CORPORATION 
                            RECONCILIATIONS OF GAAP TO NON-GAAP 
                                        (Unaudited) 
                                        (Millions) 
 
                                     OPERATING PROFIT 
 
                                         Three Months Ended               Year Ended 
 

                                            December 31,                 December 31, 
 
                                         2022            2021          2022         2021 
 
GAAP operating profit                       $   50.0     $   44.5       $   52.2    $ 154.0 
 
Cost reduction and other expenses               61.9         18.0          104.7       35.3 
* 
 
Postretirement expense**                         0.5          0.8            2.1        3.5 
 
Non-GAAP operating profit                    $ 112.4     $   63.3        $ 159.0    $ 192.8 
 
Revenue                                      $ 557.0      $ 539.3      $ 1,979.9  $ 2,054.4 
 
GAAP operating profit percent                  9.0 %        8.3 %          2.6 %      7.5 % 
 
Non-GAAP operating profit percent             20.2 %       11.7 %          8.0 %      9.4 % 
 
*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) 
 
 
Contacts: For Investors: Michaela Pewarski, Unisys, [phone], 
[e-mail]; For Press: Patricia Gonzalez, Unisys, [phone], 
[e-mail] 
 
 
 
END 
 
 

(END) Dow Jones Newswires

February 23, 2023 02:00 ET (07:00 GMT)