Unisys Corporation

04/30/2025 | Press release | Distributed by Public on 04/30/2025 14:50

Q1 (2025 1q spr)

Income Statement

UNISYS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited)
(Millions, except per share data)
Three Months Ended March 31,
2025 2024
Revenue
Services $ 386.2 $ 416.8
Technology 45.9 71.0
432.1 487.8
Costs and expenses
Cost of revenue
Services 290.4 314.9
Technology 34.2 36.9
324.6 351.8
Selling, general and administrative 96.8 112.2
Research and development 5.6 6.1
427.0 470.1
Operating income 5.1 17.7
Interest expense 8.2 7.9
Other (expense), net (16.9) (142.1)
Loss before income taxes (20.0) (132.3)
Provision for income taxes 10.6 17.0
Consolidated net loss (30.6) (149.3)
Net (loss) income attributable to noncontrolling interests (1.1) 0.2
Net loss attributable to Unisys Corporation $ (29.5) $ (149.5)
Income from discontinued operations, net of tax - -
Net loss attributable to Unisys Corporation $ (29.5) $ (149.5)
Loss per share attributable to Unisys Corporation
Basic
Continuing operations $ (0.42) $ (2.18)
Discontinued operations $ - $ -
Basic $ (0.42) $ (2.18)
Diluted
Continuing operations $ (0.42) $ (2.18)
Discontinued operations $ - $ -
Diluted $ (0.42) $ (2.18)

Segment Results

UNISYS CORPORATION
SEGMENT RESULTS
(Unaudited)
(Millions)
Total DWS CA&I ECS Other
Three Months Ended March 31, 2025
Revenue $ 432.1 $ 118.6 $ 176.6 $ 118.7 $ 18.2
Gross profit percent 24.9 % 14.2 % 19.5 % 47.7 %
Three Months Ended March 31, 2024
Revenue $ 487.8 $ 132.3 $ 188.4 $ 139.3 $ 27.8
Gross profit percent 27.9 % 14.4 % 19.4 % 54.6 %

Revenue excluding L&S

UNISYS CORPORATION
EXCLUDING LICENSE AND SUPPORT (EX-L&S) REVENUE AND GROSS PROFIT
(Unaudited)
(Millions)
Three Months Ended
March 31,
2025 2024
L&S revenue $ 71.1 $ 93.2
Ex-L&S revenue 361.0 394.6
Revenue $ 432.1 $ 487.8
L&S gross profit $ 43.3 $ 64.8
Ex-L&S gross profit 64.2 71.2
Gross profit $ 107.5 $ 136.0
L&S gross profit percent 60.9% 69.5%
Ex-L&S gross profit percent 17.8% 18.0%
Gross profit percent 24.9% 27.9%

Balance Sheets

UNISYS CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Millions)
March 31, 2025 December 31, 2024
Assets
Current assets:
Cash and cash equivalents $ 393.1 $ 376.5
Accounts receivable, net 423.0 467.2
Contract assets 20.6 16.0
Inventories 21.6 16.4
Prepaid expenses and other current assets 91.7 103.2
Total current assets 950.0 979.3
Properties 388.2 396.2
Less-accumulated depreciation and amortization 331.8 339.1
Properties, net 56.4 57.1
Capitalized contract costs, net 33.3 31.2
Marketable software, net 164.8 165.0
Operating lease right-of-use assets 41.3 38.4
Prepaid pension and postretirement assets 27.9 25.6
Deferred income taxes 111.3 96.6
Goodwill 248.2 247.9
Intangible assets, net 34.4 35.5
Restricted cash 14.4 14.1
Other long-term assets 158.3 181.6
Total assets $ 1,840.3 $ 1,872.3
Total liabilities and deficit
Current liabilities:
Current maturities of long-term debt $ 6.5 $ 5.0
Accounts payable 103.0 97.9
Deferred revenue 221.9 210.4
Other accrued liabilities 236.5 314.7
Total current liabilities 567.9 628.0
Long-term debt 488.3 488.2
Long-term pension and postretirement liabilities 814.3 816.4
Long-term deferred revenue 115.1 108.8
Long-term operating lease liabilities 32.6 28.9
Other long-term liabilities 76.2 71.3
Commitments and contingencies
Total Unisys Corporation stockholders' deficit (267.8) (283.4)
Noncontrolling interests 13.7 14.1
Total deficit (254.1) (269.3)
Total liabilities and deficit $ 1,840.3 $ 1,872.3

Cash Flows

UNISYS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Millions)
Three Months Ended March 31,
2025 2024
Cash flows from operating activities
Consolidated net loss $ (30.6) $ (149.3)
Adjustments to reconcile consolidated net loss to net cash provided by operating activities:
Foreign currency (gains) losses (1.3) 14.9
Non-cash interest expense 0.3 0.3
Employee stock compensation 6.8 6.7
Depreciation and amortization of properties 6.4 6.2
Depreciation and amortization of capitalized contract costs 3.0 6.2
Amortization of marketable software 12.1 12.0
Amortization of intangible assets 1.1 2.4
Other non-cash operating activities 0.7 (1.5)
Loss on disposal of capital assets 0.2 -
Pension and postretirement contributions (9.4) (7.7)
Pension and postretirement expense 21.9 146.6
Deferred income taxes, net (10.1) (0.4)
Changes in operating assets and liabilities:
Receivables, net and contract assets 73.6 64.0
Inventories (5.0) (0.8)
Other assets 18.0 (9.8)
Accounts payable and current liabilities (67.2) (69.1)
Other liabilities 12.8 3.1
Net cash provided by operating activities 33.3 23.8
Cash flows from investing activities
Net proceeds from sale of U.S. Federal business - -
Proceeds from foreign exchange forward contracts 728.8 728.1
Purchases of foreign exchange forward contracts (728.9) (726.9)
Investment in marketable software (11.2) (13.2)
Capital additions of properties and other assets (8.9) (6.7)
Other (0.1) (0.1)
Net cash used for investing activities (20.3) (18.8)
Cash flows from financing activities
Payments of long-term debt (1.3) (6.1)
Other (2.7) (1.6)
Net cash used for financing activities (4.0) (7.7)
Effect of exchange rate changes on cash, cash equivalents and restricted cash 7.9 (3.5)
Increase (decrease) in cash, cash equivalents and restricted cash 16.9 (6.2)
Cash, cash equivalents and restricted cash, beginning of period 390.6 396.7
Cash, cash equivalents and restricted cash, end of period $ 407.5 $ 390.5

EPS

UNISYS CORPORATION
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(Unaudited)
(Millions, except per share data)
Three Months Ended
March 31,
2025 2024
Net loss attributable to Unisys Corporation $ (29.5) $ (149.5)
Pension and postretirement expense pretax 21.9 146.6
tax 0.6 0.1
net of tax 21.3 146.5
Goodwill impairment pretax - -
tax - -
net of tax - -
Certain legal matters, net pretax (0.4) (8.2)
tax - (2.8)
net of tax (0.4) (5.4)
Environmental matters pretax 0.4 0.3
tax - -
net of tax 0.4 0.3
Cost reduction and other expenses pretax 4.8 11.1
tax - 0.3
net of tax 4.8 10.8
Non-GAAP net (loss) income attributable to Unisys Corporation $ (3.4) $ 2.7
Weighted average shares (thousands) 70,106 68,704
Plus incremental shares from assumed vesting:
Employee stock plans - -
Adjusted weighted average shares 70,106 68,704
Weighted average shares (thousands) 70,106 68,704
Plus incremental shares from assumed vesting:
Employee stock plans - 2,267
Convertible notes - -
Non-GAAP adjusted weighted average shares 70,106 70,971
Diluted loss per share
Net loss attributable to Unisys Corporation $ (29.5) $ (149.5)
Divided by adjusted weighted average shares 70,106 68,704
Diluted loss per share $ (0.42) $ (2.18)
Non-GAAP basis
Non-GAAP net (loss) income attributable to Unisys Corporation for diluted (loss) earnings per share $ (3.4) $ 2.7
Divided by Non-GAAP adjusted weighted average shares 70,106 70,971
Non-GAAP diluted (loss) earnings per share $ (0.05) $ 0.04

Free Cash Flow

UNISYS CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP
(Unaudited)
(Millions)
FREE CASH FLOW
Three Months Ended
March 31,
2025 2024
Cash provided by operations $ 33.3 $ 23.8
Additions to marketable software (11.2) (13.2)
Additions to properties and other assets (8.9) (6.7)
Free cash flow 13.2 3.9
Pension and postretirement funding 9.4 7.7
Pre-pension and postretirement free cash flow 22.6 11.6
Certain legal payments 1.0 1.4
Environmental matters payments 2.2 2.5
Cost reduction and other payments, net 2.5 1.9
Adjusted free cash flow $ 28.3 $ 17.4

EBITDA

UNISYS CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP
(Unaudited)
(Millions)
EBITDA
Three Months Ended
March 31,
2025 2024
Net loss attributable to Unisys Corporation $ (29.5) $ (149.5)
Net (loss) income attributable to noncontrolling interests (1.1) 0.2
Interest expense, net of interest income of $5.7 and $6.6, respectively (1) 2.5 1.3
Provision for income taxes 10.6 17.0
Depreciation 9.4 12.4
Amortization 13.2 14.4
EBITDA $ 5.1 $ (104.2)
Pension and postretirement expense 21.9 146.6
Goodwill impairment - -
Certain legal matters, net (2) (0.4) (8.2)
Environmental matters (1) 0.4 0.3
Cost reduction and other expenses (3) 3.7 8.7
Non-cash share based expense 6.8 6.5
Other expense, net adjustment (4) 2.7 15.6
Adjusted EBITDA $ 40.2 $ 65.3
(1) Included in other (expense), net on the consolidated statements of income (loss).
(2) Included in selling, general and administrative expenses and other (expense), net within the consolidated statements of income (loss). For the three months ended March 31, 2024, certain legal matters, net included a net gain of $14.9 million related to a favorable judgment received in a Brazilian services tax matter.
(3) Reduced for depreciation and amortization included above.
(4) Other expense, net as reported on the consolidated statements of income (loss) less pension and postretirement expense, interest income and items included in certain legal and environmental matters, cost reduction and other expenses.
Three Months Ended
March 31,
2025 2024
Revenue $ 432.1 $ 487.8
Net loss attributable to Unisys Corporation as a percentage of revenue (6.8)% (30.6)%
Non-GAAP net (loss) income attributable to Unisys Corporation as a percentage of revenue (0.8)% 0.6 %
Adjusted EBITDA as a percentage of revenue 9.3 % 13.4 %

Operating Profit

UNISYS CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP
(Unaudited)
(Millions)
OPERATING PROFIT
Three Months Ended
March 31,
2025 2024
Operating profit $ 5.1 $ 17.7
Goodwill impairment - -
Certain legal matters (1) 0.5 7.3
Cost reduction and other expenses (2) 5.9 9.0
Pension and postretirement expense (1) 0.4 0.4
Non-GAAP operating profit $ 11.9 $ 34.4
Revenue $ 432.1 $ 487.8
Operating profit percent 1.2 % 3.6 %
Non-GAAP operating profit percent 2.8 % 7.1 %
(1) Included in selling, general and administrative on the consolidated statements of income (loss).
(2) Included in cost of revenue, selling, general and administrative and research and development on the consolidated statements of income (loss).
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