BLUE BELL, Pa., July 26, 2016 /PRNewswire/ --
2Q 2016:
- Operating profit margin of 6.6 percent, an increase of 1310
basis points from operating profit margin of (6.5) percent in 2Q
2015
- Non-GAAP operating profit margin(1) of 10.8
percent, an increase of 690 basis points from the prior
year
- Diluted earnings per share of $0.36 versus ($1.17) in 2Q 2015
- Non-GAAP diluted earnings per share(2) of
$0.81 versus $0.33 in 2Q 2015
- Operating cash flow increase of $55.7
million year over year to $34.6
million; $78.7 million
increase in non-GAAP adjusted free cash flow(4)
year-over-year to $54.3
million
- Revenue of $748.9 million,
down 2 percent, or down less than 1 percent on a constant-currency
basis*, year over year
- Unisys re-affirms full-year guidance for total company
revenue, non-GAAP operating profit margin and adjusted free cash
flow
Unisys Corporation (NYSE: UIS) today reported second quarter
2016 results highlighted by continued year-over-year increases in
operating profit margin, operating cash flow and free cash
flow(3).
The company reported an operating profit margin of 6.6 percent
including cost reduction charges and pension expense, an increase
of 1310 basis points relative to operating profit margin of (6.5)
percent in the second quarter of 2015, consistent with ongoing
cost-cutting efforts and helped by increased revenues from
higher-margin technology products. Second quarter 2016 non-GAAP
operating profit margin was 10.8 percent, an increase of 690 basis
points from the prior year. In addition, operating cash flow for
the quarter increased by $55.7
million versus the prior year to $34.6 million, while adjusted free cash flow in
the second quarter of 2016 increased $78.7
million from the prior year to $54.3
million, representing the third consecutive quarter of
positive adjusted free cash flow. The Company also reported diluted
earnings per share of $0.36 versus
($1.17) in the same quarter a year
ago and non-GAAP diluted earnings per share of $0.81 versus $0.33
in the second quarter of 2015. Revenues for the second quarter 2016
were $748.9 million, which is down 2
percent or down less than 1 percent on a constant-currency basis
relative to the second quarter of 2015.
"Our second quarter results reflect improvement in our GAAP and
non-GAAP operating profit margin and cash flow generation. Revenues
were slightly down, less than 1 percent, on a constant-currency
basis," said Unisys President and CEO Peter
Altabef. "We are continuing to execute against the strategy
we commenced in 2015, which focuses on providing security in
everything we do, growing demand for both cyber and physical
security offerings, while investing to improve our go-to-market
effectiveness by aligning vertically."
Summary of Second Quarter 2016 Business Results
Company:
- Overall operating profit margin of 6.6 percent includes cost
reduction charges and pension expense. Second quarter 2016 non-GAAP
operating profit margin was 10.8 percent, an increase of 690 basis
points from the prior year.
- Net income grew to $21.6 million
versus $(58.2) million in the second
quarter of 2015, representing margin expansion of 1050 basis
points. Adjusted EBITDA(5) saw growth of 71.0 percent to
$123.6 million versus the prior year,
representing margin expansion of 710 basis points.
- Overall increased profitability was driven in large part by
decreased operating expenses resulting from the company's ongoing
cost-cutting efforts and was also helped by an increase in revenues
from higher-margin technology products.
- Operating cash flow increased by $55.7
million versus the prior year to $34.6 million, while adjusted free cash flow in
the second quarter 2016 increased $78.7
million from the prior year, representing the third
consecutive quarter of positive adjusted free cash flow.
- Revenue of $748.9 million
declined 2.1 percent year over year or (0.9) percent on a
constant-currency basis.
Services:
- Services revenue, which represented 82.0 percent of total
revenue, declined by 7.2 percent to $613.8
million, down 6.1 percent in constant currency. The decline
in the Services business was largely offset by a strong quarter for
the Technology business, as noted below.
- Services gross margin improved 110 basis points from 15.7
percent to 16.8 percent. Services operating profit margin was 2.1
percent, a decrease of 10 basis points from the prior year, or flat
on a constant-currency basis, reflecting continued investment in
the business to reach longer-term profitability goals.
- Total Services backlog ended the second quarter at $3.8 billion, down 13.7 percent
year-over-year.
Technology:
- Technology revenue, which represented 18.0 percent of total
revenue, increased 30.7 percent year-over-year, 32.4 percent in
constant currency, largely driven by increased ClearPath Forward™
sales.
- Technology operating profit margin improved to 48.0 percent
from 15.6 percent in the prior year due to increased gross margins,
as well as the benefit of selling, general & administrative
reductions.
Cash Flow:
- Capital expenditures declined 36.4 percent year-over-year to
$34.0 million, reflective of
significant investments in outsourcing assets that were made in the
second quarter of 2015.
- Second quarter 2016 operating cash flow increased by
$55.7 million versus the prior year
to $34.6 million. Free cash flow of
$0.6 million improved $75.2 million year-over-year and was positive due
to higher operating cash flow and lower capital expenditures.
Adjusted free cash flow in the second quarter of 2016 increased
$78.7 million from the prior year to
$54.3 million, representing the third
consecutive quarter of positive adjusted free cash flow.
- During the second quarter 2016, the company executed on
cost-cutting plans, largely related to headcount reductions, that
are expected to result in $30 million
of annualized cost savings, bringing the total to date to
$155 million against a plan of
$200 million for 2016, with another
$30 million expected in 2017.
- At June 30, 2016, the company had
$463.6 million in cash.
Continued Execution on Business Strategy
The company
recently made several major announcements regarding security,
alliances, and groundbreaking technologies:
- A series of security-related achievements, including approval
of Unisys Stealth® from the U.S. National Security
Agency's (NSA) Commercial Solutions for Classified (CSfC) program
in the U.S., and by the National Information Assurance Partnership
(NIAP), making Unisys Stealth eligible for use by governments in
more than 20 countries to protect their most sensitive systems and
information.
- A hardware-independent version of the ClearPath Forward MCP
operating environment software, marking the first time that Unisys
has offered a software-only version of its ClearPath Forward
operating system platform.
- The new Unisys, Sandstone and PCT (USP) digital banking
platform designed to enable financial institutions to provide more
secure banking services. The platform will provide built-in
adaptive biometric and data analytics to securely identify
customers and validate transactions, to reduce fraud and enhance
customer experience.
Conference Call
Unisys will hold a conference call
today at 5:30 p.m. Eastern Time to
discuss its results. The listen-only Webcast, as well as the
accompanying presentation materials, can be accessed on the Unisys
Investor Web site at www.unisys.com/investor. Following the call,
an audio replay of the Webcast, and accompanying presentation
materials, can be accessed through the same link.
*Constant currency – The company refers to growth rates
in constant currency or on a constant currency basis so that the
business results can be viewed without the impact of fluctuations
in foreign currency exchange rates to facilitate comparisons of the
company's business performance from one period to another. Constant
currency is calculated by retranslating current and prior period
results at a consistent rate.
Non-GAAP Information
Although appropriate under
generally accepted accounting principles (GAAP), the company's
results reflect charges that the company believes are not
indicative of its ongoing operations and that can make its
profitability and liquidity results difficult to compare to prior
periods, anticipated future periods, or to its competitors'
results. These items consist of pension and restructuring costs.
Management believes each of these items can distort the visibility
of trends associated with the company's ongoing performance.
Management also believes that the evaluation of the company's
financial performance can be enhanced by use of supplemental
presentation of its results that exclude the impact of these items
in order to enhance consistency and comparativeness with prior or
future period results. The following measures are often
provided and utilized by the company's management, analysts, and
investors to enhance comparability of year-over-year results, as
well as to compare results to other companies in our
industry.
(1) Non-GAAP operating profit – During the
second quarter 2016 and 2015, Unisys recorded pretax pension
expense and a pretax charge in connection with cost reduction
actions. The company believes that this profitability measure is
more indicative of the company's operating results and aligns those
results to the company's external guidance which is used by the
company's management to allocate resources and may be used by
analysts and investors to gauge the company's ongoing
performance.
(2) Non-GAAP diluted earnings per share
– During the second quarter 2016 and 2015, Unisys recorded
pension expense and a charge in connection with cost reduction
actions (both net of tax). Management believes that investors may
have a better understanding of the company's performance and return
to shareholders by excluding these charges from the non-GAAP
diluted earnings/loss per share calculations. The tax amounts
netted from pension expense and the charge in connection with cost
reduction actions for the calculation of non-GAAP diluted earnings
per share include the current and deferred tax expense and benefits
recognized under GAAP for pension expense and restructuring costs
during the second quarter 2016 and 2015.
(3) Free cash flow – The company defines free
cash flow as cash flow from operations less capital expenditures.
Management believes this liquidly measure gives investors an
additional perspective on cash flow from on-going operating
activities in excess of amounts required for reinvestment.
(4) Adjusted free cash flow – Because
inclusion of the company's pension contributions and cost reduction
payments in free cash flow may distort the visibility of the
company's ability to generate cash flow from its operations without
the impact of these non-operational costs, management believes that
investors may be interested in adjusted free cash flow, which
provides free cash flow before these payments and is more
indicative of its on-going operations. This liquidity measure was
provided to analysts and investors in the form of external guidance
and is used by management to measure operating liquidly.
(5) EBITDA & adjusted EBITDA – For the
company earnings before interest, taxes, depreciation and
amortization (EBITDA) is calculated by starting with net income
(loss) attributable to Unisys Corporation common shareholders and
adding or subtracting the following items: net income attributable
to noncontrolling interests, non-cash share-based expense, other
(income) expense (net), Interest expense, provision for income
taxes, depreciation and amortization. Adjusted EBITDA further
excludes both pension expense and cost reduction charges. Unisys
recorded pretax pension expense during the second quarters of 2016
and 2015. During the second quarters 2016 and 2015, Unisys recorded
a pretax charge in connection with cost reduction actions and other
expense. In order to provide investors with additional
understanding of the company's operating results, these charges are
excluded from the adjusted EBITDA calculation. The company has also
provided external guidance to investors and analysts that it thinks
will aid any interested party in understanding and measuring the
company's ongoing operations and profitability.
About Unisys
Unisys is a global information technology company that works with
many of the world's largest companies and government organizations
to solve their most pressing IT and business challenges. Unisys
specializes in providing integrated, leading-edge solutions to
clients in the government, financial services and commercial
markets. With more than 20,000 employees serving clients around the
world, Unisys offerings include cloud and infrastructure services,
application services, security solutions, and high-end server
technology. For more information, visit www.unisys.com.
Forward-Looking Statements
Any statements contained in
this release that are not historical facts are forward-looking
statements as defined in the Private Securities Litigation Reform
Act of 1995. Forward-looking statements include, but are not
limited to, any projections of earnings, revenues, or other
financial items; any statements of the company's plans, strategies
or objectives for future operations; statements regarding future
economic conditions or performance; and any statements of belief or
expectation. All forward-looking statements rely on assumptions and
are subject to various risks and uncertainties that could cause
actual results to differ materially from expectations. Risks and
uncertainties that could affect the company's future results
include the company's ability to effectively anticipate and respond
to volatility and rapid technological innovation in its industry;
the company's ability to improve margins in its services business;
the company's ability to sell new products while maintaining its
installed base in its technology business; the company's ability to
access financing markets to refinance its outstanding debt; the
company's ability to realize anticipated cost savings and to
successfully implement its cost reduction initiatives to drive
efficiencies across all of its operations; the company's
significant pension obligations and requirements to make
significant cash contributions to its defined benefit plans; the
company's ability to attract, motivate and retain experienced and
knowledgeable personnel in key positions; the risks of doing
business internationally when a significant portion of the
company's revenue is derived from international operations; the
potential adverse effects of aggressive competition in the
information services and technology marketplace; the company's
ability to retain significant clients; the company's contracts may
not be as profitable as expected or provide the expected level of
revenues; cybersecurity breaches could result in significant costs
and could harm the company's business and reputation; a significant
disruption in the company's IT systems could adversely affect the
company's business and reputation; the company may face damage to
its reputation or legal liability if its clients are not satisfied
with its services or products; the performance and capabilities of
third parties with whom the company has commercial relationships;
the adverse effects of global economic conditions, acts of war,
terrorism or natural disasters; contracts with U.S. governmental
agencies may subject the company to audits, criminal penalties,
sanctions and other expenses and fines; the potential for
intellectual property infringement claims to be asserted against
the company or its clients; the possibility that pending litigation
could affect the company's results of operations or cash flow; the
business and financial risk in implementing future dispositions or
acquisitions; and the company's consideration of all available
information following the end of the quarter and before the filing
of the Form 10-Q and the possible impact of this subsequent event
information on its financial statements for the reporting period.
Additional discussion of factors that could affect the company's
future results is contained in its periodic filings with the
Securities and Exchange Commission. The company assumes no
obligation to update any forward-looking statements.
RELEASE NO.: 0726/9440
Unisys and other Unisys products and services mentioned herein,
as well as their respective logos, are trademarks or registered
trademarks of Unisys Corporation. Any other brand or product
referenced herein is acknowledged to be a trademark or registered
trademark of its respective holder.
UIS-Q
UNISYS
CORPORATION
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(Unaudited)
|
(Millions, except
per share data)
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenue
|
|
|
|
|
|
|
|
|
Services
|
|
$
613.8
|
|
$
661.5
|
|
$ 1,208.9
|
|
$ 1,300.5
|
Technology
|
|
135.1
|
|
103.3
|
|
206.8
|
|
185.5
|
|
|
748.9
|
|
764.8
|
|
1,415.7
|
|
1,486.0
|
Costs and
expenses
|
|
|
|
|
|
|
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
Services
|
|
529.1
|
|
585.7
|
|
1,062.8
|
|
1,150.0
|
Technology
|
|
41.5
|
|
54.8
|
|
76.1
|
|
94.7
|
|
|
570.6
|
|
640.5
|
|
1,138.9
|
|
1,244.7
|
Selling, general and
administrative
|
|
115.7
|
|
145.4
|
|
225.8
|
|
274.2
|
Research and
development
|
|
13.1
|
|
28.4
|
|
29.1
|
|
46.6
|
|
|
699.4
|
|
814.3
|
|
1,393.8
|
|
1,565.5
|
Operating profit
(loss)
|
|
49.5
|
|
(49.5)
|
|
21.9
|
|
(79.5)
|
Interest
expense
|
|
7.8
|
|
2.7
|
|
12.2
|
|
5.3
|
Other income
(expense), net
|
|
2.6
|
|
1.4
|
|
1.4
|
|
6.3
|
Income (loss)
before income taxes
|
|
44.3
|
|
(50.8)
|
|
11.1
|
|
(78.5)
|
Provision for income
taxes
|
|
18.8
|
|
5.1
|
|
24.3
|
|
18.4
|
Consolidated net
income (loss)
|
|
25.5
|
|
(55.9)
|
|
(13.2)
|
|
(96.9)
|
Net income
attributable to noncontrolling interests
|
|
3.9
|
|
2.3
|
|
5.1
|
|
4.5
|
Net income (loss)
attributable to Unisys Corporation
|
|
$
21.6
|
|
$
(58.2)
|
|
$
(18.3)
|
|
$
(101.4)
|
Earnings (loss)
per share attributable to Unisys Corporation
|
|
|
|
|
|
|
|
Basic
|
|
$
0.43
|
|
$
(1.17)
|
|
$
(0.37)
|
|
$
(2.03)
|
Diluted
|
|
$
0.36
|
|
$
(1.17)
|
|
$
(0.37)
|
|
$
(2.03)
|
Shares used in the
per share computations (in thousands)
|
|
|
|
|
|
|
|
|
Basic
|
|
50,069
|
|
49,927
|
|
50,036
|
|
49,874
|
Diluted
|
|
71,786
|
|
49,927
|
|
50,036
|
|
49,874
|
|
|
|
|
|
|
|
|
|
UNISYS
CORPORATION
|
SEGMENT
RESULTS
|
(Unaudited)
|
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Eliminations
|
|
Services
|
|
Technology
|
Three Months Ended
June 30, 2016
|
|
|
|
|
|
|
|
Customer
revenue
|
|
$
748.9
|
|
|
|
$
613.8
|
|
$
135.1
|
Intersegment
|
|
|
|
$
(5.9)
|
|
—
|
|
5.9
|
Total
revenue
|
|
$
748.9
|
|
$
(5.9)
|
|
$
613.8
|
|
$
141.0
|
Gross profit
percent
|
|
23.8 %
|
|
|
|
16.8 %
|
|
66.9 %
|
Operating profit
percent
|
|
6.6 %
|
|
|
|
2.1 %
|
|
48.0 %
|
Three Months Ended
June 30, 2015
|
|
|
|
|
|
|
|
Customer
revenue
|
|
$
764.8
|
|
|
|
$
661.5
|
|
$
103.3
|
Intersegment
|
|
|
|
$
(22.0)
|
|
0.1
|
|
21.9
|
Total
revenue
|
|
$
764.8
|
|
$
(22.0)
|
|
$
661.6
|
|
$
125.2
|
Gross profit
percent
|
|
16.3 %
|
|
|
|
15.7 %
|
|
43.9 %
|
Operating profit
(loss) percent
|
|
(6.5)%
|
|
|
|
2.2 %
|
|
15.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Eliminations
|
|
Services
|
|
Technology
|
Six Months Ended
June 30, 2016
|
|
|
|
|
|
|
|
Customer
revenue
|
|
$
1,415.7
|
|
|
|
$
1,208.9
|
|
$
206.8
|
Intersegment
|
|
|
|
$
(11.5)
|
|
—
|
|
11.5
|
Total
revenue
|
|
$
1,415.7
|
|
$
(11.5)
|
|
$
1,208.9
|
|
$
218.3
|
Gross profit
percent
|
|
19.6 %
|
|
|
|
15.5 %
|
|
60.4 %
|
Operating profit
percent
|
|
1.5 %
|
|
|
|
1.4 %
|
|
37.4 %
|
Six Months Ended
June 30, 2015
|
|
|
|
|
|
|
|
Customer
revenue
|
|
$
1,486.0
|
|
|
|
$
1,300.5
|
|
$
185.5
|
Intersegment
|
|
|
|
$
(28.7)
|
|
0.1
|
|
28.6
|
Total
revenue
|
|
$
1,486.0
|
|
$
(28.7)
|
|
$
1,300.6
|
|
$
214.1
|
Gross profit
percent
|
|
16.2 %
|
|
|
|
14.9 %
|
|
46.3 %
|
Operating profit
(loss) percent
|
|
(5.3)%
|
|
|
|
0.4 %
|
|
11.3 %
|
|
|
|
|
|
|
|
|
|
UNISYS
CORPORATION
|
CONSOLIDATED
BALANCE SHEETS
|
(Unaudited)
|
(Millions)
|
|
|
|
|
|
|
June 30,
2016
|
|
December 31,
2015
|
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
463.6
|
|
$
365.2
|
|
Accounts and notes
receivable, net
|
561.1
|
|
581.6
|
|
Inventories:
|
|
|
|
|
Parts and finished
equipment
|
18.2
|
|
20.9
|
|
Work in process and
materials
|
20.9
|
|
22.9
|
|
Prepaid expenses and
other current assets
|
130.4
|
|
120.9
|
*
|
Total
|
1,194.2
|
|
1,111.5
|
*
|
Properties
|
888.9
|
|
876.6
|
|
Less-Accumulated
depreciation and amortization
|
743.5
|
|
722.8
|
|
Properties,
net
|
145.4
|
|
153.8
|
|
Outsourcing assets,
net
|
185.4
|
|
182.0
|
|
Marketable software,
net
|
136.3
|
|
138.5
|
|
Prepaid
postretirement assets
|
68.4
|
|
45.1
|
|
Deferred income
taxes
|
130.5
|
|
127.4
|
*
|
Goodwill
|
179.7
|
|
177.4
|
|
Other long-term
assets
|
201.7
|
|
194.3
|
*
|
Total
|
$
2,241.6
|
|
$
2,130.0
|
*
|
Liabilities and
deficit
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Notes
payable
|
$
—
|
|
$
65.8
|
|
Current maturities of
long-term-debt
|
11.1
|
|
11.0
|
|
Accounts
payable
|
187.2
|
|
219.3
|
|
Deferred
revenue
|
333.2
|
|
335.1
|
|
Other accrued
liabilities
|
352.4
|
|
329.9
|
*
|
Total
|
883.9
|
|
961.1
|
*
|
Long-term
debt
|
408.8
|
|
233.7
|
*
|
Long-term
postretirement liabilities
|
1,999.3
|
|
2,111.3
|
|
Long-term deferred
revenue
|
139.8
|
|
123.3
|
|
Other long-term
liabilities
|
83.4
|
|
79.2
|
*
|
Commitments and
contingencies
|
|
|
|
|
Total
deficit
|
(1,273.6)
|
|
(1,378.6)
|
|
Total
|
$
2,241.6
|
|
$
2,130.0
|
*
|
|
|
|
|
|
* Certain
amounts have been reclassified to conform to the current-year
presentation.
|
|
|
|
|
|
UNISYS
CORPORATION
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
(Millions)
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
2016
|
|
2015
|
Cash flows from
operating activities
|
|
|
|
|
Consolidated net
loss
|
|
$
(13.2)
|
|
$
(96.9)
|
Add (deduct) items to
reconcile consolidated net loss to net
cash provided by (used for) operating activities:
|
|
|
|
Foreign currency
transaction losses
|
|
0.4
|
|
0.6
|
Non-cash interest
expense
|
|
2.8
|
|
—
|
Employee stock
compensation
|
|
5.3
|
|
6.2
|
Depreciation and
amortization of properties
|
|
19.3
|
|
22.7
|
Depreciation and
amortization of outsourcing assets
|
|
25.7
|
|
26.1
|
Amortization of
marketable software
|
|
32.4
|
|
32.9
|
Other non-cash
operating activities
|
|
1.0
|
|
2.9
|
Loss on disposal of
capital assets
|
|
1.6
|
|
5.0
|
Pension
contributions
|
|
(64.1)
|
|
(75.7)
|
Pension
expense
|
|
41.8
|
|
54.3
|
Increase in deferred
income taxes, net
|
|
(9.7)
|
|
(7.2)
|
Decrease in
receivables, net
|
|
24.9
|
|
62.3
|
Decrease (increase)
in inventories
|
|
5.8
|
|
(10.1)
|
Decrease in accounts
payable and other accrued liabilities
|
|
(36.0)
|
|
(84.1)
|
Increase (decrease)
in other liabilities
|
|
12.3
|
|
(14.3)
|
Decrease in other
assets
|
|
8.5
|
|
10.9
|
Net cash provided
by (used for) operating activities
|
|
58.8
|
|
(64.4)
|
Cash flows from
investing activities
|
|
|
|
|
Proceeds from
investments
|
|
2,236.8
|
|
2,203.1
|
Purchases of
investments
|
|
(2,238.0)
|
|
(2,174.4)
|
Investment in
marketable software
|
|
(30.2)
|
|
(33.4)
|
Capital additions of
properties
|
|
(11.0)
|
|
(24.7)
|
Capital additions of
outsourcing assets
|
|
(28.8)
|
|
(52.7)
|
Other
|
|
(0.7)
|
|
(1.7)
|
Net cash used for
investing activities
|
|
(71.9)
|
|
(83.8)
|
Cash flows from
financing activities
|
|
|
|
|
Proceeds from issuance
of long-term debt
|
|
213.5
|
|
31.8
|
Payments for capped
call transactions
|
|
(27.3)
|
|
—
|
Issuance costs
relating to long-term debt
|
|
(7.3)
|
|
—
|
Payments of long-term
debt
|
|
(1.3)
|
|
(0.6)
|
Proceeds from exercise
of stock options
|
|
—
|
|
3.7
|
Payments of short-term
borrowings
|
|
(65.8)
|
|
—
|
Net cash provided
by financing activities
|
|
111.8
|
|
34.9
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(0.3)
|
|
(16.2)
|
Increase
(decrease) in cash and cash equivalents
|
|
98.4
|
|
(129.5)
|
Cash and cash
equivalents, beginning of period
|
|
365.2
|
|
494.3
|
Cash and cash
equivalents, end of period
|
|
$
463.6
|
|
$
364.8
|
|
|
|
|
|
UNISYS
CORPORATION
|
RECONCILIATION OF
SELECTED GAAP MEASURES TO NON-GAAP MEASURES
|
(Unaudited)
|
(Millions, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
|
|
Six
Months
|
|
|
|
Ended June
30
|
|
Ended June
30
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
GAAP net income
(loss) attributable to Unisys Corporation common
shareholders
|
$
21.6
|
|
$
(58.2)
|
|
$
(18.3)
|
|
$
(101.4)
|
|
|
|
|
|
|
|
|
|
|
Cost reduction
expense, net of tax of ($0.1), $4.0, $2.1, $4.0,
respectively
|
10.3
|
|
48.6
|
|
35.0
|
|
48.6
|
|
|
|
|
|
|
|
|
|
|
Pension expense, net
of tax of ($0.3), $0.5, ($0.6), $1.0, respectively
|
21.8
|
|
25.9
|
|
42.4
|
|
53.3
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income (loss) attributable to Unisys Corporation common
shareholders
|
53.7
|
|
16.3
|
|
59.1
|
|
0.5
|
|
|
|
|
|
|
|
|
|
|
Add interest expense
on convertible notes
|
4.5
|
|
—
|
|
5.2
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income (loss) attributable to Unisys Corporation for diluted
earnings per share
|
$
58.2
|
|
$
16.3
|
|
$
64.3
|
|
$
0.5
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares (thousands)
|
50,069
|
|
49,927
|
|
50,036
|
|
49,874
|
|
|
|
|
|
|
|
|
|
|
Plus incremental
shares from assumed conversion:
|
|
|
|
|
|
|
|
|
Employee stock
plans
|
|
167
|
|
155
|
|
151
|
|
187
|
|
Convertible
notes
|
|
21,550
|
|
—
|
|
12,593
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted
weighted average shares
|
71,786
|
|
50,082
|
|
62,780
|
|
50,061
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
basis
|
|
|
|
|
|
|
|
|
GAAP net income
(loss) attributable to Unisys Corporation for diluted earnings per
share
|
$
26.1
|
|
$
(58.2)
|
|
$
(18.3)
|
|
$
(101.4)
|
|
|
|
|
|
|
|
|
|
|
Divided by adjusted
weighted average shares
|
|
71,786
|
|
49,927
|
|
50,036
|
|
49,874
|
|
|
|
|
|
|
|
|
|
|
GAAP income (loss)
per diluted share
|
$
0.36
|
|
$
(1.17)
|
|
$
(0.37)
|
|
$
(2.03)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
basis
|
|
|
|
|
|
|
|
|
Non-GAAP net income
(loss) attributable to Unisys Corporation for diluted earnings per
share
|
$
58.2
|
|
$
16.3
|
|
$
64.3
|
|
$
0.5
|
|
|
|
|
|
|
|
|
|
|
Divided by Non-GAAP
adjusted weighted average shares
|
71,786
|
|
50,082
|
|
62,780
|
|
50,061
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings
(loss) per diluted share
|
$
0.81
|
|
$
0.33
|
|
$
1.02
|
|
$
0.01
|
|
|
|
|
|
|
|
|
|
|
UNISYS
CORPORATION
|
RECONCILIATION OF
GAAP OPERATING PROFIT TO NON-GAAP OPERATING PROFIT
|
(Unaudited)
|
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
|
|
Six
Months
|
|
|
|
Ended June
30
|
|
Ended June
30
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
GAAP operating
income (loss)
|
$
49.5
|
|
$
(49.5)
|
|
$
21.9
|
|
$
(79.5)
|
|
|
|
|
|
|
|
|
|
|
Cost reduction
expense
|
10.2
|
|
52.6
|
|
37.1
|
|
52.6
|
|
|
|
|
|
|
|
|
|
|
FAS87 pension
expense
|
21.5
|
|
26.4
|
|
41.8
|
|
54.3
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating
profit (loss)
|
$
81.2
|
|
$
29.5
|
|
$
100.8
|
|
$
27.4
|
|
|
|
|
|
|
|
|
|
|
Customer
Revenue
|
$
748.9
|
|
$
764.8
|
|
$
1,415.7
|
|
$
1,486.0
|
GAAP operating
income (loss) %
|
6.6
%
|
|
(6.5)%
|
|
1.5
%
|
|
(5.3)%
|
Non-GAAP operating
profit (loss) %
|
10.8
%
|
|
3.9
%
|
|
7.1
%
|
|
1.8
%
|
|
|
|
|
|
|
|
|
|
|
UNISYS
CORPORATION
|
RECONCILIATION OF
GAAP TO NON-GAAP
|
(Unaudited)
|
(Millions)
|
|
|
|
|
|
|
|
|
|
|
FREE CASH
FLOW
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
|
|
Six
Months
|
|
|
|
Ended June
30
|
|
Ended June
30
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Cash provided by
(used for) operations
|
$
34.6
|
|
$
(21.1)
|
|
$
58.8
|
|
$
(64.4)
|
Additions to
marketable software
|
(15.9)
|
|
(16.7)
|
|
(30.2)
|
|
(33.4)
|
Additions to
properties
|
(4.4)
|
|
(10.8)
|
|
(11.0)
|
|
(24.7)
|
Additions to
outsourcing assets
|
(13.7)
|
|
(26.0)
|
|
(28.8)
|
|
(52.7)
|
Free cash
flow
|
0.6
|
|
(74.6)
|
|
(11.2)
|
|
(175.2)
|
Pension
funding
|
32.5
|
|
37.0
|
|
64.1
|
|
75.7
|
Cost reduction
funding
|
21.2
|
|
13.2
|
|
39.2
|
|
13.2
|
Free cash flow
before pension & cost reduction funding
|
$
54.3
|
|
$
(24.4)
|
|
$
92.1
|
|
$
(86.3)
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/unisys-announces-second-quarter-2016-financial-results-300304280.html
SOURCE Unisys Corporation