Conduent (NASDAQ: CNDT), a business process services and solutions
company, today announced its second quarter 2022 financial results.
Cliff Skelton, Conduent President & CEO stated,
“Q2 represents another quarter where our team continued to deliver
in line with expectations regarding Revenue performance, Adjusted
EBITDA, and Sales. In addition, we received recognition for our
culture and service excellence from both our clients and the
industry. Meanwhile and importantly, while we previously announced
a consideration to separate our Transportation business, further
analysis of cost and opportunity given recent turns in the market,
as well as further optimism in this business, leads our Management
and Board to unanimously believe that keeping the Transportation
business as part of the Conduent portfolio, and not separate, is
the right decision at this time. The value of diverse revenue
streams in the current environment, the distraction of a separation
especially in a spin scenario, and changes in market valuations,
clarified the information leading to this change in course.
Finally, we, as a Conduent team, in concert with our Board and
largest public and private shareholders, remain optimistic about
the future of our businesses because of our unique technologies,
our solution and service capabilities, and our strong associate
base. We look forward to the road ahead as One Conduent.”
Key Financial Q2 2022 Results
($ in millions, except margin and per share
data) |
Q2 2022 |
Q2 2021 |
Current Quarter Y/Y B/(W) |
Revenue |
$928 |
$1,026 |
(9.6)% |
Adjusted Revenue(1) |
$928 |
$1,009 |
(8.0)% |
GAAP Net Income (loss) |
— |
12 |
(100.0)% |
Adjusted EBITDA(1) |
87 |
119 |
(26.9)% |
Adjusted EBITDA Margin (1) |
9.4% |
11.8% |
(240) bps |
GAAP Pre-tax Income |
5 |
19 |
(73.7)% |
GAAP Diluted EPS |
$(0.01) |
$0.04 |
(125.0)% |
Adjusted Diluted EPS(1) |
$0.03 |
$0.20 |
(85.0)% |
Cash Flow from Operating Activities |
(16) |
105 |
(115.2)% |
Adjusted Free Cash Flow(1) |
(31) |
62 |
(150.0)% |
Q2 2022 Performance
CommentaryRevenue and Adjusted Revenue for Q2 2022 were in
line with expectations, however, lower than the prior year period,
primarily driven by significant, non-recurring stimulus payments
volume in our Government Services business in the prior year, as
well as unfavorable foreign exchange impact, particularly from the
Euro and British pound.
Pre-tax income was $5M versus $19M in the prior
year period.
Adjusted EBITDA of $87M and Adjusted EBITDA Margin
of 9.4% were in line with expectations.
New Business ACV of $180M increased for the fourth
consecutive quarter, with strong contributions of $124M from the
Commercial segment.
The Net ARR Activity Metric for Q2 2022 was $104M,
up 2% versus Q1 2022 and down (2)% versus Q2 2021.
Additional Q2 2022 Performance
HighlightsConduent achieved several milestones in client
satisfaction, industry recognition and culture, including:
- Recognized as a 2022
Leader in Benefits Administration by Nelson Hall for the fourth
consecutive report
- Awarded Field
Technology Support Partner of the Year by H&R Block
- Ranked #8 in 2022 BPS
Top 50 Providers, by Everest Group
- Recognized with
Supplier Excellence Award for the Second Consecutive Year by Toyota
Financial Services
- Recognized by Forbes
as one of “America’s Best 500 Employers for Diversity 2022” for the
second consecutive year
Updated FY 2022 Outlook (4)
|
FY 2021 Actuals |
FY 2022 Outlook |
|
|
|
Adj. Revenue(1) |
$4,070M |
$3,850M - $3,950M |
|
|
|
Adj. EBITDA(1) / Adj.
EBITDA Margin(1) |
$448M / 11.0% |
10.0% - 10.5% |
|
|
|
Adj. Free Cash Flow(2) as
% of Adj. EBITDA(1) |
Approx. 18% (3) |
Approx. 15% (3) |
(1) Refer to Appendix for definition and complete
non-GAAP reconciliations of Adjusted Revenue, Adjusted EBITDA,
Adjusted EBITDA Margin, Adjusted Diluted EPS and Adjusted Free Cash
Flow(2) Refer to Appendix for definition.
(3) Normalized for the impact of payment of
deferred payroll taxes primarily related to the CARES Act of $32M
in 2021 and $27M in 2022, Adjusted Free Cash Flow as a percentage
of Adjusted EBITDA for 2021 is approximately 25% and approximately
22% in 2022.
(4) Refer to Appendix for definition of Non-GAAP
Outlook
Conference CallManagement will
present the results during a conference call and webcast on
August 2, 2022 at 5:00 p.m. ET.
The call will be available by live audio webcast
along with the news release and online presentation slides at
https://investor.conduent.com/.
The conference call will also be available by
calling 1-877-407-4019 toll-free. If requested, the conference ID
for this call is 13730820.
The international dial-in is 1-201-689-8337. The
international conference ID is also 13730820.
A recording of the conference call will be
available by calling 1-877-660-6853 one hour after the conference
call concludes. The replay ID is 13730820.
The telephone recording will be available until
August 16, 2022.
About Conduent
Conduent delivers mission-critical services and solutions on behalf
of businesses and governments – creating exceptional outcomes for
its clients and the millions of people who count on them. Through
our dedicated people, processes, and technologies, Conduent
solutions and services enhance customer experience, increase
efficiencies, reduce costs, and improve performance for most
Fortune 100 companies and more than 500 government entities.
Whether it’s enabling 1.3 billion customer service interactions,
touching three out of every four U.S. patients, delivering 45% of
SNAP payments, or empowering 10 million employees through HR
services, Conduent services and solutions interact with millions of
people every day and move our clients’ operations forward. Learn
more at https://www.conduent.com.
Non-GAAP Financial MeasuresWe have
reported our financial results in accordance with U.S. generally
accepted accounting principles (U.S. GAAP). In addition, we have
discussed our financial results using non-GAAP measures. We believe
these non-GAAP measures allow investors to better understand the
trends in our business and to better understand and compare our
results. Accordingly, we believe it is necessary to adjust several
reported amounts, determined in accordance with U.S. GAAP, to
exclude the effects of certain items as well as their related tax
effects. Management believes that these non-GAAP financial measures
provide an additional means of analyzing the results of the current
period against the corresponding prior period. However, these
non-GAAP financial measures should be viewed in addition to, and
not as a substitute for, our reported results prepared in
accordance with U.S. GAAP. Our non-GAAP financial measures are not
meant to be considered in isolation or as a substitute for
comparable U.S. GAAP measures and should be read only in
conjunction with our Consolidated Financial Statements prepared in
accordance with U.S. GAAP. Our management regularly uses our
supplemental non-GAAP financial measures internally to understand,
manage and evaluate our business and make operating decisions, and
providing such non-GAAP financial measures to investors allows for
a further level of transparency as to how management reviews and
evaluates our business results and trends. These non-GAAP measures
are among the primary factors management uses in planning for and
forecasting future periods. Compensation of our executives is based
in part on the performance of our business based on certain of
these non-GAAP measures. Refer to the "Non-GAAP Financial Measures"
section attached to this release for a discussion of these non-GAAP
measures and their reconciliation to the reported U.S. GAAP
measures.
Forward-Looking Statements
This release and any attachments to this release
may contain "forward-looking statements" as defined in the Private
Securities Litigation Reform Act of 1995. The words “anticipate,”
“believe,” “estimate,” “expect,” "plan," “intend,” “will,” “aim,”
“should,” “could,” “forecast,” “target,” “may,” "continue to,"
"if,” “growing,” “projected,” “potential,” “likely,” and similar
expressions, as they relate to us, are intended to identify
forward-looking statements, but the absence of these words does not
mean that a statement is not forward-looking. All statements other
than statements of historical fact included in this press release
are forward-looking statements, including, but not limited to,
statements regarding our financial results, condition and outlook;
changes in our operating results; general market and economic
conditions; our belief that keeping the Transportation business as
part of the Conduent portfolio is the right decision at this time
as a result of further consideration, including consideration of
the value of diverse revenue streams in the current environment,
the distraction of a separation and changes in market valuations;
our optimistic outlook about the future of our businesses because
of our unique technologies, our solution and service capabilities,
and our strong associate base; and our projected financial
performance for the full year 2022, including all statements made
under the section captioned “Updated FY 2022 Outlook” within this
release. In addition, all statements regarding the anticipated
effects of the novel coronavirus, or COVID-19, pandemic and the
responses thereto, including the pandemic’s impact on general
economic and market conditions, as well as on our business,
customers, and markets, results of operations and financial
condition and anticipated actions to be taken by management to
sustain our business during the economic uncertainty caused by the
pandemic and related governmental and business actions, as well as
other statements that are not strictly historical in nature, are
forward looking. These statements reflect our current views with
respect to future events and are subject to certain risks,
uncertainties and assumptions. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those expressed
or implied herein as anticipated, believed, estimated, expected or
intended or using other similar expressions.
In accordance with the provisions of the Litigation
Reform Act, we are making investors aware that such forward-looking
statements, because they relate to future events, are by their very
nature subject to many important factors and uncertainties that
could cause actual results to differ materially from those
contemplated by the forward-looking statements contained in this
press release, any exhibits to this press release and other public
statements we make. Our actual results may vary materially from
those expressed or implied in our forward-looking statements.
Important factors and uncertainties that could
cause our actual results to differ materially from those in our
forward-looking statements include, but are not limited to: the
significant continuing effects of the ongoing COVID-19 pandemic on
our business, operations, financial results and financial
condition, which is dependent on developments which are highly
uncertain and cannot be predicted; government appropriations and
termination rights contained in our government contracts; our
ability to renew commercial and government contracts, including
contracts awarded through competitive bidding processes; our
ability to recover capital and other investments in connection with
our contracts; our reliance on third-party providers; our ability
to deliver on our contractual obligations properly and on time;
changes in interest in outsourced business process services; risk
and impact of geopolitical events, natural disasters and other
factors (such as pandemics, including coronavirus) in a particular
country or region on our workforce, customers and vendors; claims
of infringement of third-party intellectual property rights; our
ability to estimate the scope of work or the costs of performance
in our contracts; the loss of key senior management and our ability
to attract and retain necessary technical personnel and qualified
subcontractors; increases in the cost of telephone and data
services or significant interruptions in such services; our failure
to develop new service offerings and protect our intellectual
property rights; our ability to modernize our information
technology infrastructure and consolidate data centers; the failure
to comply with laws relating to individually identifiable
information and personal health information; the failure to comply
with laws relating to processing certain financial transactions,
including payment card transactions and debit or credit card
transactions; breaches of our information systems or security
systems or any service interruptions; our ability to comply with
data security standards; changes in tax and other laws and
regulations; risk and impact of potential goodwill and other asset
impairments; our significant indebtedness; our ability to obtain
adequate pricing for our services and to improve our cost
structure; our ability to collect our receivables, including those
for unbilled services; a decline in revenues from, or a loss of, or
a reduction in business from or failure of significant clients;
fluctuations in our non-recurring revenue; our failure to maintain
a satisfactory credit rating; our ability to receive dividends or
other payments from our subsidiaries; developments in various
contingent liabilities that are not reflected on our balance sheet,
including those arising as a result of being involved in a variety
of claims, lawsuits, investigations and proceedings; conditions
abroad, including local economics, political environments,
fluctuating foreign currencies and shifting regulatory schemes;
changes in government regulation and economic, strategic, political
and social conditions; changes in the volatility of our stock price
and the risk of litigation following a decline in the price of our
stock; and other factors that are set forth in the “Risk Factors”
section, the “Legal Proceedings” section, the “Management's
Discussion and Analysis of Financial Condition and Results of
Operations” section and other sections in our 2021 Annual Report on
Form 10-K, as well as in our Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K filed with or furnished to the
Securities and Exchange Commission. Any forward-looking statements
made by us in this release speak only as of the date on which they
are made. We are under no obligation to, and expressly disclaim any
obligation to, update or alter our forward-looking statements,
whether as a result of new information, subsequent events or
otherwise.
Media Contacts:Sean Collins,
Conduent, +1-310-497-9205, sean.collins2@conduent.com
Investor Contacts:Giles Goodburn,
Conduent, +1-203-216-3546, ir@conduent.com
CONDUENT
INCORPORATEDCONDENSED CONSOLIDATED STATEMENTS OF
INCOME (LOSS) (UNAUDITED)
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
(in millions, except per share data) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenue |
|
$ |
928 |
|
|
$ |
1,026 |
|
|
$ |
1,895 |
|
|
$ |
2,054 |
|
|
|
|
|
|
|
|
|
|
Operating Costs and Expenses |
|
|
|
|
|
|
|
|
Cost of services (excluding depreciation and amortization) |
|
|
727 |
|
|
|
772 |
|
|
|
1,482 |
|
|
|
1,559 |
|
Selling, general and administrative (excluding depreciation and
amortization) |
|
|
113 |
|
|
|
125 |
|
|
|
215 |
|
|
|
251 |
|
Research and development (excluding depreciation and
amortization) |
|
|
2 |
|
|
|
1 |
|
|
|
3 |
|
|
|
1 |
|
Depreciation and amortization |
|
|
53 |
|
|
|
86 |
|
|
|
114 |
|
|
|
181 |
|
Restructuring and related costs |
|
|
11 |
|
|
|
8 |
|
|
|
20 |
|
|
|
21 |
|
Interest expense |
|
|
18 |
|
|
|
13 |
|
|
|
37 |
|
|
|
26 |
|
(Gain) loss on divestitures and transaction costs |
|
|
3 |
|
|
|
(1 |
) |
|
|
(160 |
) |
|
|
1 |
|
Litigation settlements (recoveries), net |
|
|
(3 |
) |
|
|
1 |
|
|
|
(31 |
) |
|
|
2 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
2 |
|
Other (income) expenses, net |
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total Operating Costs and Expenses |
|
|
923 |
|
|
|
1,007 |
|
|
|
1,680 |
|
|
|
2,044 |
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before Income Taxes |
|
|
5 |
|
|
|
19 |
|
|
|
215 |
|
|
|
10 |
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit) |
|
|
5 |
|
|
|
7 |
|
|
|
79 |
|
|
|
9 |
|
Net Income (Loss) |
|
$ |
— |
|
|
$ |
12 |
|
|
$ |
136 |
|
|
$ |
1 |
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) per Share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.01 |
) |
|
$ |
0.05 |
|
|
$ |
0.61 |
|
|
$ |
(0.02 |
) |
Diluted |
|
$ |
(0.01 |
) |
|
$ |
0.04 |
|
|
$ |
0.60 |
|
|
$ |
(0.02 |
) |
CONDUENT
INCORPORATEDCONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
(in millions) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net Income (Loss) |
|
$ |
— |
|
|
$ |
12 |
|
|
$ |
136 |
|
|
$ |
1 |
|
Other Comprehensive Income (Loss),
Net(1) |
|
|
|
|
|
|
|
|
Currency translation adjustments, net |
|
|
(40 |
) |
|
|
4 |
|
|
|
(45 |
) |
|
|
(7 |
) |
Unrecognized gains (losses), net |
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
Changes in benefit plans, net |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
Other Comprehensive Income (Loss), Net |
|
|
(40 |
) |
|
|
3 |
|
|
|
(46 |
) |
|
|
(9 |
) |
|
|
|
|
|
|
|
|
|
Comprehensive Income (Loss), Net |
|
$ |
(40 |
) |
|
$ |
15 |
|
|
$ |
90 |
|
|
$ |
(8 |
) |
__________
(1) All amounts are net of tax. Tax effects
were immaterial.
CONDUENT
INCORPORATEDCONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in millions, except share data in thousands) |
|
June 30, 2022 |
|
December 31, 2021 |
Assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
519 |
|
|
$ |
415 |
|
Accounts receivable, net |
|
|
684 |
|
|
|
699 |
|
Assets held for sale |
|
|
— |
|
|
|
184 |
|
Contract assets |
|
|
155 |
|
|
|
154 |
|
Other current assets |
|
|
239 |
|
|
|
228 |
|
Total current assets |
|
|
1,597 |
|
|
|
1,680 |
|
Land, buildings and equipment, net |
|
|
263 |
|
|
|
281 |
|
Operating lease right-of-use assets |
|
|
212 |
|
|
|
231 |
|
Intangible assets, net |
|
|
43 |
|
|
|
52 |
|
Goodwill |
|
|
1,310 |
|
|
|
1,339 |
|
Other long-term assets |
|
|
475 |
|
|
|
453 |
|
Total Assets |
|
$ |
3,900 |
|
|
$ |
4,036 |
|
Liabilities and Equity |
|
|
|
|
Current portion of long-term debt |
|
$ |
30 |
|
|
$ |
30 |
|
Accounts payable |
|
|
166 |
|
|
|
198 |
|
Accrued compensation and benefits costs |
|
|
219 |
|
|
|
243 |
|
Unearned income |
|
|
73 |
|
|
|
82 |
|
Liabilities held for sale |
|
|
— |
|
|
|
29 |
|
Other current liabilities |
|
|
407 |
|
|
|
443 |
|
Total current liabilities |
|
|
895 |
|
|
|
1,025 |
|
Long-term debt |
|
|
1,272 |
|
|
|
1,383 |
|
Deferred taxes |
|
|
105 |
|
|
|
75 |
|
Operating lease liabilities |
|
|
173 |
|
|
|
184 |
|
Other long-term liabilities |
|
|
88 |
|
|
|
95 |
|
Total Liabilities |
|
|
2,533 |
|
|
|
2,762 |
|
|
|
|
|
|
Series A convertible preferred stock |
|
|
142 |
|
|
|
142 |
|
|
|
|
|
|
Common stock |
|
|
2 |
|
|
|
2 |
|
Additional paid-in capital |
|
|
3,918 |
|
|
|
3,910 |
|
Retained earnings (deficit) |
|
|
(2,220 |
) |
|
|
(2,351 |
) |
Accumulated other comprehensive loss |
|
|
(475 |
) |
|
|
(429 |
) |
Total Equity |
|
|
1,225 |
|
|
|
1,132 |
|
Total Liabilities and Equity |
|
$ |
3,900 |
|
|
$ |
4,036 |
|
|
|
|
|
|
Shares of common stock issued and outstanding |
|
|
215,705 |
|
|
|
215,381 |
|
Shares of series A convertible preferred stock issued and
outstanding |
|
|
120 |
|
|
|
120 |
|
CONDUENT
INCORPORATEDCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS (UNAUDITED)
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
(in millions) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
— |
|
|
$ |
12 |
|
|
$ |
136 |
|
|
$ |
1 |
|
Adjustments required to reconcile net income (loss) to cash flows
from operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
53 |
|
|
|
86 |
|
|
|
114 |
|
|
|
181 |
|
Contract inducement amortization |
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
Deferred income taxes |
|
|
1 |
|
|
|
(5 |
) |
|
|
32 |
|
|
|
(6 |
) |
Amortization of debt financing costs |
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
|
|
4 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
2 |
|
(Gain) loss on divestitures and sales of fixed assets, net |
|
|
(2 |
) |
|
|
— |
|
|
|
(166 |
) |
|
|
1 |
|
Stock-based compensation |
|
|
7 |
|
|
|
6 |
|
|
|
9 |
|
|
|
9 |
|
Changes in operating assets and liabilities |
|
|
(77 |
) |
|
|
2 |
|
|
|
(133 |
) |
|
|
(89 |
) |
Net cash provided by (used in) operating activities |
|
|
(16 |
) |
|
|
105 |
|
|
|
(5 |
) |
|
|
103 |
|
Cash Flows from Investing Activities: |
|
|
|
|
|
|
|
|
Cost of additions to land, buildings and equipment |
|
|
(17 |
) |
|
|
(25 |
) |
|
|
(51 |
) |
|
|
(39 |
) |
Cost of additions to internal use software |
|
|
(16 |
) |
|
|
(16 |
) |
|
|
(32 |
) |
|
|
(32 |
) |
Proceeds from divestitures |
|
|
2 |
|
|
|
1 |
|
|
|
325 |
|
|
|
2 |
|
Net cash provided by (used in) investing activities |
|
|
(31 |
) |
|
|
(40 |
) |
|
|
242 |
|
|
|
(69 |
) |
Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
|
Payments on revolving credit facility |
|
|
— |
|
|
|
— |
|
|
|
(100 |
) |
|
|
— |
|
Payments on debt |
|
|
(8 |
) |
|
|
(56 |
) |
|
|
(16 |
) |
|
|
(79 |
) |
Premium on debt redemption |
|
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
|
(2 |
) |
Taxes paid for settlement of stock-based compensation |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
Dividends paid on preferred stock |
|
|
(3 |
) |
|
|
(3 |
) |
|
|
(5 |
) |
|
|
(5 |
) |
Net cash provided by (used in) financing activities |
|
|
(11 |
) |
|
|
(62 |
) |
|
|
(121 |
) |
|
|
(87 |
) |
Effect of exchange rate changes on cash, cash equivalents and
restricted cash |
|
|
(5 |
) |
|
|
1 |
|
|
|
(6 |
) |
|
|
(2 |
) |
Increase (decrease) in cash, cash equivalents and restricted
cash |
|
|
(63 |
) |
|
|
4 |
|
|
|
110 |
|
|
|
(55 |
) |
Cash, Cash Equivalents and Restricted Cash at Beginning of
Period |
|
|
593 |
|
|
|
399 |
|
|
|
420 |
|
|
|
458 |
|
Cash, Cash Equivalents and Restricted Cash at End of
period(1) |
|
$ |
530 |
|
|
$ |
403 |
|
|
$ |
530 |
|
|
$ |
403 |
|
___________
(1) Includes $11 million and $6 million
restricted cash as of June 30, 2022 and 2021, respectively, that
were included in Other current assets on their respective Condensed
Consolidated Balance Sheets.
Appendix
Definition
Net ARR Activity Metric (TTM)
Projected Annual Recurring Revenue for contracts
signed in the prior 12 months, less the annualized impact of any
client losses, contractual volume and price changes, and other
known impacts for which the company was notified in that same time
period, which could positively or negatively impact results. The
metric annualizes the net impact to revenue. Timing of revenue
impact varies and may not be realized within the forward 12-month
timeframe. The metric is for indicative purposes only. This metric
excludes COVID-related volume impacts and non-recurring revenue
signings. This metric is not indicative of any specific 12 month
timeframe.
New Business Annual Contract Value
(ACV): (New Business TCV / contract term) multiplied by
12.
Non-GAAP Financial Measures
We have reported our financial results in
accordance with U.S. generally accepted accounting principles (U.S.
GAAP). In addition, we have discussed our financial results using
non-GAAP measures.
We believe these non-GAAP measures allow investors
to better understand the trends in our business and to better
understand and compare our results. Accordingly, we believe it is
necessary to adjust several reported amounts, determined in
accordance with U.S. GAAP, to exclude the effects of certain items
as well as their related tax effects. Management believes that
these non-GAAP financial measures provide an additional means of
analyzing the results of the current period against the
corresponding prior period. However, these non-GAAP financial
measures should be viewed in addition to, and not as a substitute
for, the Company’s reported results prepared in accordance with
U.S. GAAP. Our non-GAAP financial measures are not meant to be
considered in isolation or as a substitute for comparable U.S. GAAP
measures and should be read only in conjunction with our
Consolidated Financial Statements prepared in accordance with U.S.
GAAP. Our management regularly uses our supplemental non-GAAP
financial measures internally to understand, manage and evaluate
our business and make operating decisions, and providing such
non-GAAP financial measures to investors allows for a further level
of transparency as to how management reviews and evaluates our
business results and trends. These non-GAAP measures are among the
primary factors management uses in planning for and forecasting
future periods. Compensation of our executives is based in part on
the performance of our business based on certain of these non-GAAP
measures.
A reconciliation of the following non-GAAP
financial measures to the most directly comparable financial
measures calculated and presented in accordance with U.S. GAAP are
provided below.
These reconciliations also include the income tax
effects for our non-GAAP performance measures in total, to the
extent applicable. The income tax effects are calculated under the
same accounting principles as applied to our reported pre-tax
performance measures under ASC 740, which employs an annual
effective tax rate method. The noted income tax effect for our
non-GAAP performance measures is effectively the difference in
income taxes for reported and adjusted pre-tax income calculated
under the annual effective tax rate method. The tax effect of the
non-GAAP adjustments was calculated based upon evaluation of the
statutory tax treatment and the applicable statutory tax rate in
the jurisdictions in which such charges were incurred.
Adjusted Net Income (Loss), Adjusted
Diluted Earnings per Share, Adjusted Weighted Average Common Shares
Outstanding, and Adjusted Effective Tax Rate
We make adjustments to Net Income (Loss) before
Income Taxes for the following items, as applicable, to the
particular financial measure, for the purpose of calculating
Adjusted Revenue, Adjusted Net Income (Loss), Adjusted Diluted
Earnings per Share, Adjusted Weighted Average Common Shares
Outstanding, and Adjusted Effective Tax Rate:
- Amortization of acquired intangible
assets. The amortization of acquired intangible assets is driven by
acquisition activity, which can vary in size, nature and timing as
compared to other companies within our industry and from period to
period.
- Restructuring and related costs.
Restructuring and related costs include restructuring and asset
impairment charges as well as costs associated with our strategic
transformation program.
- (Gain) loss on divestitures and
transaction costs. Represents (gain) loss on divested businesses
and transaction costs.
- Litigation settlements (recoveries),
net represents settlements or recoveries for various matters
subject to litigation.
- Other charges (credits). This includes
Other (income) expenses, net on the Condensed Consolidated
Statements of Income (loss) and other insignificant (income)
expense associated with providing transition services on the
California Medicaid contract loss and other adjustments.
- Abandonment of Cloud Computing
Project. This includes charges in connection with the abandonment
of a cloud computing project. The costs include writing off
previously capitalized costs and remaining hosting fees that would
have continued to be incurred without any economic benefit.
- Divestitures.
The Company provides adjusted net income and
adjusted EPS financial measures to assist our investors in
evaluating our ongoing operating performance for the current
reporting period and, where provided, over different reporting
periods, by adjusting for certain items which may be recurring or
non-recurring and which in our view do not necessarily reflect
ongoing performance. We also internally use these measures to
assess our operating performance, both absolutely and in comparison
to other companies, and in evaluating or making selected
compensation decisions.
Management believes that the adjusted effective
tax rate, provided as supplemental information, facilitates a
comparison by investors of our actual effective tax rate with an
adjusted effective tax rate which reflects the impact of the items
which are excluded in providing adjusted net income and certain
other identified items, and may provide added insight into our
underlying business results and how effective tax rates impact our
ongoing business.
Adjusted Revenue, Adjusted Operating Income
and Adjusted Operating Margin
We make adjustments to Revenue, Costs and Expenses
and Operating Margin, as applicable, for the following items, for
the purpose of calculating Adjusted Revenue, Adjusted Operating
Income and Adjusted Operating Margin:
- Amortization of acquired intangible
assets.
- Restructuring and related costs.
- Interest expense. Interest expense
includes interest on long-term debt and amortization of debt
issuance costs.
- (Gain) loss on divestitures and
transaction costs.
- Litigation settlements (recoveries),
net.
- Other charges (credits).
- Abandonment of Cloud Computing
Project.
- Divestitures.
We provide our investors with adjusted revenue,
adjusted operating income and adjusted operating margin
information, as supplemental information, because we believe it
offers added insight, by itself and for comparability between
periods, by adjusting for certain non-cash items as well as certain
other identified items which we do not believe are indicative of
our ongoing business, and may also provide added insight on trends
in our ongoing business.
Adjusted EBITDA and EBITDA
Margin
We use Adjusted EBITDA and Adjusted EBITDA Margin
as an additional way of assessing certain aspects of our operations
that, when viewed with the U.S. GAAP results and the accompanying
reconciliations to corresponding U.S. GAAP financial measures,
provide a more complete understanding of our on-going business.
Adjusted EBITDA represents income (loss) before interest, income
taxes, depreciation and amortization and contract inducement
amortization adjusted for the following items. Adjusted EBITDA
Margin is Adjusted EBITDA divided by revenue or adjusted revenue,
as applicable.
- Restructuring and related costs.
- (Gain) loss on divestitures and
transaction costs.
- Litigation settlements (recoveries),
net.
- Abandonment of Cloud Computing
Project.
- Other charges (credits).
- Divestitures
Adjusted EBITDA is not intended to represent cash
flows from operations, operating income (loss) or net income (loss)
as defined by U.S. GAAP as indicators of operating performance.
Management cautions that amounts presented in accordance with
Conduent's definition of Adjusted EBITDA and Adjusted EBITDA Margin
may not be comparable to similar measures disclosed by other
companies because not all companies calculate Adjusted EBITDA and
Adjusted EBITDA Margin in the same manner.
Free Cash Flow
Free Cash Flow is defined as cash flows from
operating activities as reported on the consolidated statement of
cash flows, less cost of additions to land, buildings and
equipment, cost of additions to internal use software, and proceeds
from sales of land, buildings and equipment. We use the non-GAAP
measure of Free Cash Flow as a criterion of liquidity. We use Free
Cash Flow as a measure of liquidity to determine amounts we can
reinvest in our core businesses, such as amounts available to make
acquisitions and invest in land, buildings and equipment and
internal use software, after required payments on debt. In order to
provide a meaningful basis for comparison, we are providing
information with respect to our Free Cash Flow reconciled to cash
flow provided by operating activities, which we believe to be the
most directly comparable measure under U.S. GAAP.
Adjusted Free Cash Flow
Adjusted Free Cash Flow is defined as Free Cash
Flow from above plus adjustments for litigation insurance
recoveries, transaction costs, taxes paid on gains from
divestitures and litigation recoveries, and certain other
identified adjustments. We use Adjusted Free Cash Flow, in addition
to Free Cash Flow, to provide supplemental information to our
investors concerning our ability to generate cash from our ongoing
operating activities and for performance based components of
employee compensation; by excluding these items, we believe we
provide useful additional information to our investors to help them
further understand our ability to generate cash period-over-period
as well as added information on comparability to our competitors.
Such as with Free Cash Flow information, as so adjusted, it is
specifically not intended to provide amounts available for
discretionary spending. We have added certain adjustments to
account for items which we do not believe reflect our core business
or operating performance, and we computed all periods with such
adjusted costs.
Revenue at Constant Currency
To better understand trends in our business, we
believe that it is helpful to adjust revenue to exclude the impact
of changes in the translation of foreign currencies into U.S.
Dollars. We refer to this adjusted revenue as “constant currency.”
Currency impact is determined as the difference between actual
growth rates and constant currency growth rates. This currency
impact is calculated by translating the current period activity in
local currency using the comparable prior-year period's currency
translation rate.
Non-GAAP Outlook
In providing the outlook for Adjusted EBITDA we
exclude certain items which are otherwise included in determining
the comparable U.S. GAAP financial measure. A description of
the adjustments which historically have been applicable in
determining Adjusted EBITDA are reflected in the table
below. In addition, for "FY 2021 Actuals" we are excluding the
estimated impacts of $70 million of Revenue and $39 million of
Adjusted EBITDA related to the divestiture of the Midas business.
We are providing such outlook only on a non-GAAP basis because the
Company is unable without unreasonable efforts to predict with
reasonable certainty the totality or ultimate outcome or occurrence
of these adjustments for the forward-looking period, which can be
dependent on future events that may not be reliably predicted.
Based on past reported results, where one or more of these items
have been applicable, such excluded items could be material,
individually or in the aggregate, to reported results. We have
provided an outlook for revenue only on a non-GAAP basis using
foreign currency translation rates as of current period end due to
the inability to, without unreasonable efforts, accurately predict
foreign currency impact on revenues. Outlook for Adjusted Free Cash
Flow is provided as a factor of expected Adjusted EBITDA, and such
outlook is only available on a non-GAAP basis for the reasons
described above. For the same reason, we are unable to provide GAAP
expected adjusted tax rate, which adjusts for our non-GAAP
adjustments.
Non-GAAP Reconciliations: Revenue
at Constant Currency, Adjusted Net Income (Loss), Adjusted
Effective Tax, Adjusted Operating Income (Loss) and Adjusted EBITDA
were as follows:
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
(in millions) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
ADJUSTED REVENUE |
|
|
|
|
|
|
|
|
Revenue |
|
$ |
928 |
|
|
$ |
1,026 |
|
|
$ |
1,895 |
|
|
$ |
2,054 |
|
Adjustment: |
|
|
|
|
|
|
|
|
Divestitures(1) |
|
|
— |
|
|
|
(17 |
) |
|
|
(7 |
) |
|
|
(35 |
) |
Adjusted Revenue |
|
|
928 |
|
|
|
1,009 |
|
|
|
1,888 |
|
|
|
2,019 |
|
Foreign currency impact |
|
|
11 |
|
|
|
(10 |
) |
|
|
16 |
|
|
|
(17 |
) |
Revenue at Constant Currency |
|
$ |
939 |
|
|
$ |
999 |
|
|
$ |
1,904 |
|
|
$ |
2,002 |
|
|
|
|
|
|
|
|
|
|
ADJUSTED NET INCOME (LOSS) |
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
$ |
— |
|
|
$ |
12 |
|
|
$ |
136 |
|
|
$ |
1 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Amortization of acquired intangible assets(2) |
|
|
3 |
|
|
|
32 |
|
|
|
9 |
|
|
|
72 |
|
Restructuring and related costs |
|
|
11 |
|
|
|
8 |
|
|
|
20 |
|
|
|
21 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
2 |
|
(Gain) loss on divestitures and transaction costs |
|
|
3 |
|
|
|
(1 |
) |
|
|
(160 |
) |
|
|
1 |
|
Litigation settlements (recoveries), net |
|
|
(3 |
) |
|
|
1 |
|
|
|
(31 |
) |
|
|
2 |
|
Other charges (credits) |
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total Non-GAAP Adjustments |
|
|
13 |
|
|
|
42 |
|
|
|
(162 |
) |
|
|
98 |
|
Income tax adjustments(3) |
|
|
(4 |
) |
|
|
(8 |
) |
|
|
60 |
|
|
|
(17 |
) |
Adjusted Net Income (Loss) |
|
$ |
9 |
|
|
$ |
46 |
|
|
$ |
34 |
|
|
$ |
82 |
|
|
|
|
|
|
|
|
|
|
ADJUSTED EFFECTIVE TAX |
|
|
|
|
|
|
|
|
Income (Loss) Before Income Taxes |
|
$ |
5 |
|
|
$ |
19 |
|
|
$ |
215 |
|
|
$ |
10 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Total Non-GAAP Adjustments |
|
|
13 |
|
|
|
42 |
|
|
|
(162 |
) |
|
|
98 |
|
Adjusted PBT Before Adjustment for
Divestitures |
|
|
18 |
|
|
|
61 |
|
|
|
53 |
|
|
|
108 |
|
Divestitures(1) |
|
|
— |
|
|
|
(8 |
) |
|
|
(2 |
) |
|
|
(17 |
) |
Adjusted PBT |
|
$ |
18 |
|
|
$ |
53 |
|
|
$ |
51 |
|
|
$ |
91 |
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit) |
|
$ |
5 |
|
|
$ |
7 |
|
|
$ |
79 |
|
|
$ |
9 |
|
Income tax adjustments(3) |
|
|
4 |
|
|
|
8 |
|
|
|
(60 |
) |
|
|
17 |
|
Adjusted Income Tax Expense (Benefit) |
|
|
9 |
|
|
|
15 |
|
|
|
19 |
|
|
|
26 |
|
Adjusted Net Income (Loss) Before Adjustment for
Divestitures |
|
|
9 |
|
|
|
46 |
|
|
|
34 |
|
|
|
82 |
|
Divestitures(1) |
|
|
— |
|
|
|
(8 |
) |
|
|
(2 |
) |
|
|
(17 |
) |
Adjusted Net Income (Loss) |
|
$ |
9 |
|
|
$ |
38 |
|
|
$ |
32 |
|
|
$ |
65 |
|
CONTINUED |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
(in millions) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
ADJUSTED OPERATING INCOME (LOSS) |
|
|
|
|
|
|
|
|
Income (Loss) Before Income Taxes |
|
$ |
5 |
|
|
$ |
19 |
|
|
$ |
215 |
|
|
$ |
10 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Total non-GAAP adjustments |
|
|
13 |
|
|
|
42 |
|
|
|
(162 |
) |
|
|
98 |
|
Interest expense |
|
|
18 |
|
|
|
13 |
|
|
|
37 |
|
|
|
26 |
|
Adjusted Operating Income (Loss) Before Adjustment for
Divestitures |
|
|
36 |
|
|
|
74 |
|
|
|
90 |
|
|
|
134 |
|
Divestitures(1) |
|
|
— |
|
|
|
(8 |
) |
|
|
(2 |
) |
|
|
(17 |
) |
Adjusted Operating Income (Loss) |
|
$ |
36 |
|
|
$ |
66 |
|
|
$ |
88 |
|
|
$ |
117 |
|
|
|
|
|
|
|
|
|
|
ADJUSTED EBITDA |
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
$ |
— |
|
|
$ |
12 |
|
|
$ |
136 |
|
|
$ |
1 |
|
Income tax expense (benefit) |
|
|
5 |
|
|
|
7 |
|
|
|
79 |
|
|
|
9 |
|
Depreciation and amortization |
|
|
53 |
|
|
|
86 |
|
|
|
114 |
|
|
|
181 |
|
Contract inducement amortization |
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
Interest expense |
|
|
18 |
|
|
|
13 |
|
|
|
37 |
|
|
|
26 |
|
EBITDA Before Adjustment for Divestitures |
|
|
77 |
|
|
|
118 |
|
|
|
367 |
|
|
|
217 |
|
Divestitures(1) |
|
|
— |
|
|
|
(8 |
) |
|
|
(2 |
) |
|
|
(17 |
) |
Divestitures depreciation and amortization(1) |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(2 |
) |
EBITDA |
|
|
77 |
|
|
|
109 |
|
|
|
365 |
|
|
|
198 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Restructuring and related costs |
|
|
11 |
|
|
|
8 |
|
|
|
20 |
|
|
|
21 |
|
(Gain) loss on divestitures and transaction costs |
|
|
3 |
|
|
|
(1 |
) |
|
|
(160 |
) |
|
|
1 |
|
Litigation settlements (recoveries), net |
|
|
(3 |
) |
|
|
1 |
|
|
|
(31 |
) |
|
|
2 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
2 |
|
Other charges (credits) |
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
87 |
|
|
$ |
119 |
|
|
$ |
194 |
|
|
$ |
224 |
|
___________
(1) Adjusted for the full impact from revenue
and income/loss from divestitures for all periods presented.
(2) Included in Depreciation and amortization
on the Consolidated Statements of Income (Loss).
(3) The tax impact of Adjusted Pre-tax income
(loss) from continuing operations was calculated under the same
accounting principles applied to the 'As Reported' pre-tax income
(loss), which employs an annual effective tax rate method to the
results and without regard to the adjustments listed.
Non-GAAP Reconciliations:
Adjusted Weighted Average Shares Outstanding, Adjusted Diluted EPS,
Adjusted Effective Tax Rate, Adjusted Operating Margin and Adjusted
EBITDA Margin were as follows:
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
(Amounts are in whole dollars, shares are in thousands and margins
and rates are in %) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
ADJUSTED DILUTED EPS(1) |
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding |
|
|
215,629 |
|
|
|
212,450 |
|
|
|
215,561 |
|
|
|
212,344 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Restricted stock and performance units / shares |
|
|
3,489 |
|
|
|
7,715 |
|
|
|
3,241 |
|
|
|
7,287 |
|
Adjusted Weighted Average Common Shares
Outstanding |
|
|
219,118 |
|
|
|
220,165 |
|
|
|
218,802 |
|
|
|
219,631 |
|
|
|
|
|
|
|
|
|
|
Diluted EPS from Continuing Operations |
|
$ |
(0.01 |
) |
|
$ |
0.04 |
|
|
$ |
0.60 |
|
|
$ |
(0.02 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
Total non-GAAP adjustments |
|
|
0.06 |
|
|
|
0.20 |
|
|
|
(0.74 |
) |
|
|
0.45 |
|
Income tax adjustments(2) |
|
|
(0.02 |
) |
|
|
(0.04 |
) |
|
|
0.27 |
|
|
|
(0.08 |
) |
Adjusted Diluted EPS |
|
$ |
0.03 |
|
|
$ |
0.20 |
|
|
$ |
0.13 |
|
|
$ |
0.35 |
|
|
|
|
|
|
|
|
|
|
ADJUSTED EFFECTIVE TAX RATE |
|
|
|
|
|
|
|
|
Effective tax rate |
|
|
99.6 |
% |
|
|
38.2 |
% |
|
|
37.0 |
% |
|
|
94.3 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
Total non-GAAP adjustments |
|
(52.9)% |
|
(12.5)% |
|
(1.8)% |
|
(69.6)% |
Adjusted Effective Tax
Rate(2) |
|
|
46.7 |
% |
|
|
25.7 |
% |
|
|
35.2 |
% |
|
|
24.7 |
% |
|
|
|
|
|
|
|
|
|
ADJUSTED OPERATING MARGIN |
|
|
|
|
|
|
|
|
Income (Loss) Before Income Taxes Margin |
|
|
0.5 |
% |
|
|
1.9 |
% |
|
|
11.3 |
% |
|
|
0.5 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
Total non-GAAP adjustments |
|
|
1.5 |
% |
|
|
4.0 |
% |
|
(8.6) % |
|
|
4.7 |
% |
Interest expense |
|
|
1.9 |
% |
|
|
1.3 |
% |
|
|
2.0 |
% |
|
|
1.3 |
% |
Margin for Adjusted Operating Income Before Adjustment for
Divestitures |
|
|
3.9 |
% |
|
|
7.2 |
% |
|
|
4.7 |
% |
|
|
6.5 |
% |
Divestitures(3) |
|
|
— |
% |
|
(0.7)% |
|
|
— |
% |
|
(0.7)% |
Margin for Adjusted Operating Income |
|
|
3.9 |
% |
|
|
6.5 |
% |
|
|
4.7 |
% |
|
|
5.8 |
% |
ADJUSTED EBITDA MARGIN |
|
|
|
|
|
|
|
|
EBITDA Margin Before Adjustment for Divestitures |
|
|
8.3 |
% |
|
|
11.5 |
% |
|
|
19.4 |
% |
|
|
10.6 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
Divestitures(3) |
|
|
— |
% |
|
(0.7)% |
|
(0.1)% |
|
(0.8)% |
EBITDA Margin |
|
|
8.3 |
% |
|
|
10.8 |
% |
|
|
19.3 |
% |
|
|
9.8 |
% |
Total non-GAAP adjustments |
|
|
1.1 |
% |
|
|
1.0 |
% |
|
(9.1)% |
|
|
1.2 |
% |
Divestitures(3) |
|
|
— |
% |
|
|
0.7 |
% |
|
|
0.1 |
% |
|
|
0.8 |
% |
Adjusted EBITDA Margin Before Adjustment for
Divestitures |
|
|
9.4 |
% |
|
|
12.5 |
% |
|
|
10.3 |
% |
|
|
11.8 |
% |
Divestitures(3) |
|
|
— |
% |
|
(0.7)% |
|
|
— |
% |
|
(0.7)% |
Adjusted EBITDA Margin |
|
|
9.4 |
% |
|
|
11.8 |
% |
|
|
10.3 |
% |
|
|
11.1 |
% |
__________
(1) Average shares for the 2022 and 2021
calculation of adjusted EPS excludes 5.4 million shares associated
with our Series A convertible preferred stock and includes the
impact of preferred stock dividend of approximately $3 million and
$5 million for the three months ended June 30, 2022 and 2021,
respectively.
(2) The tax impact of Adjusted Pre-tax income
(loss) from continuing operations was calculated under the same
accounting principles applied to the 'As Reported' pre-tax income
(loss), which employs an annual effective tax rate method to the
results and without regard to the Total Non-GAAP adjustments.
(3) Adjusted for the full impact from revenue
and income/loss from divestitures for all periods presented.
Free Cash Flow and Adjusted Free Cash Flow
Reconciliation:
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
(in millions) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Operating Cash Flow |
|
$ |
(16 |
) |
|
$ |
105 |
|
|
$ |
(5 |
) |
|
$ |
103 |
|
Cost of additions to land, buildings and equipment |
|
|
(17 |
) |
|
|
(25 |
) |
|
|
(51 |
) |
|
|
(39 |
) |
Cost of additions to internal use software |
|
|
(16 |
) |
|
|
(16 |
) |
|
|
(32 |
) |
|
|
(32 |
) |
Free Cash Flow |
|
$ |
(49 |
) |
|
$ |
64 |
|
|
$ |
(88 |
) |
|
$ |
32 |
|
Free Cash Flow |
|
$ |
(49 |
) |
|
$ |
64 |
|
|
$ |
(88 |
) |
|
$ |
32 |
|
Transaction costs |
|
|
2 |
|
|
|
1 |
|
|
|
3 |
|
|
|
2 |
|
Vendor financed lease payments |
|
|
(2 |
) |
|
|
(3 |
) |
|
|
(5 |
) |
|
|
(5 |
) |
Portion of Texas litigation settlement (recoveries) recognized in
Litigation settlements (recoveries), net |
|
|
— |
|
|
|
— |
|
|
|
(24 |
) |
|
|
— |
|
Tax payment related to divestitures and litigation recoveries |
|
|
18 |
|
|
|
— |
|
|
|
18 |
|
|
|
— |
|
Adjusted Free Cash Flow |
|
$ |
(31 |
) |
|
$ |
62 |
|
|
$ |
(96 |
) |
|
$ |
29 |
|
Conduent (NASDAQ:CNDT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Conduent (NASDAQ:CNDT)
Historical Stock Chart
From Apr 2023 to Apr 2024