Unisys Corporation - Unisys Announces 4Q and Full-Year 2023 Results
Company Exceeds 2023 Upwardly Revised Revenue and Profitability Guidance, Delivers Strong Growth in Contract Signings in 4Q
-- Full-year revenue growth of 1.8% year over year (YoY), or 1.6% in
constant currency(1); Excluding License and Support (Ex-L&S)(15) revenue
growth of 4.9% YoY both as reported and in constant currency
-- 4Q revenue up 0.1% YoY, a decline of 2.1% in constant currency; 4Q
Ex-L&S revenue growth of 6.8% YoY, or 4.3% in constant currency
-- Full-year operating profit margin of 3.8%; non-GAAP operating profit(8)
margin of 7.0%
-- Full-year operating cash flow of $74.2 million compared to $12.7 million
for 2022, and free cash flow(11) of ($4.5) million compared to ($73.2)
million for 2022
-- Ex-L&S Total Contract Value (TCV)(4) increased 27% YoY for the full-year
and 137% YoY in the fourth quarter, including New Business(6) TCV growth
of 18% YoY for the full-year and 84% YoY in the fourth quarter
-- Company issues full-year 2024 guidance of (1.5)% to 1.5% YoY constant
currency revenue growth and 5.5% to 7.5% non-GAAP operating profit
margin
-- Constant currency revenue guidance implies (1.0)% to 2.0% revenue growth
as reported, based on recent exchange rates, and assumes Ex-L&S
full-year revenue growth of 1.5% to 5.0% and License and Support (L&S)
(14) revenue of approximately $375 million
"Our fourth quarter performance capped a successful year for Unisys," said Unisys Chair and CEO
"This year, we progressed towards our long-term financial goals," said Unisys Chief Financial Officer
Financial Highlights
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.
(In millions, except numbers presented as 4Q23 4Q22 FY23 FY22 percentages) Revenue$557.6 $557.0 $2,015.4 $1,979.9 YoY revenue growth 0.1% 1.8% YoY revenue growth in constant currency (2.1)% 1.6% Ex-L&S revenue$413.3 $386.9 $1,586.3 $1,511.9 YoY revenue growth 6.8% 4.9% YoY revenue growth in constant currency 4.3% 4.9% L&S revenue$144.3 $170.1 $429.1 $468.0 YoY revenue growth (15.2)% (8.3)% YoY revenue growth in constant currency (16.9)% (9.0)% Gross profit$181.2 $189.8 $551.3 $529.6 Gross profit percent 32.5% 34.1% 27.4% 26.7% Ex-L&S gross profit$68.4 $45.7 $240.0 $168.8 Ex-L&S gross profit percent 16.5% 11.8% 15.1% 11.2% Operating profit$44.0 $50.0 $76.9 $52.2 Operating profit percent 7.9% 9.0% 3.8% 2.6% Non-GAAP operating profit$64.0 $112.4 $140.8 $159.0 Non-GAAP operating profit percent 11.5% 20.2% 7.0% 8.0% Net (loss) income attributable to Unisys ($165.3 )$8.5 ($430.7 ) ($106.0 ) Corporation Non-GAAP net income attributable to Unisys$35.4 $82.8 $41.7 $74.8 Corporation(10) EBITDA ($103.6 )$85.1 ($204.5 )$140.9 Adjusted EBITDA(9)$100.4 $148.7 $285.9 $325.8 Adjusted EBITDA as a percentage of revenue 18.0% 26.7% 14.2% 16.5%
Fourth Quarter 2023 Results
Revenue was up 0.1% YoY, a decline of 2.1% in constant currency. Gross profit margin was down 160 bps YoY driven by the timing of software license renewals.
Ex-L&S revenue increased 6.8% YoY, or 4.3% in constant currency, primarily driven by New Business with existing clients. Gross profit margin was up 470 bps YoY primarily driven by lower cost reduction charges as well as New Business with existing clients.
Net loss attributable to
Financial Highlights by Segment
(In millions, except numbers presented as 4Q23 4Q22 FY23 FY22 percentages) Digital Workplace Solutions (DWS): Revenue$139.2 $127.8 $546.1 $509.9 YoY revenue growth 8.9% 7.1% YoY revenue growth in constant currency 6.3% 7.0% Gross profit$21.3 $19.3 $76.2 $71.5 Gross profit percent 15.3% 15.1% 14.0% 14.0% Cloud, Applications & Infrastructure Solutions (CA&I): Revenue$138.9 $138.8 $531.0 $520.3 YoY revenue growth 0.1% 2.1% YoY revenue growth in constant currency (0.5)% 2.2% Gross profit$22.7 $26.4 $81.9 $47.3 Gross profit percent 16.3% 19.0% 15.4% 9.1%Enterprise Computing Solutions (ECS): Revenue$203.0 $225.6 $648.0 $669.7 YoY revenue growth (10.0)% (3.2)% YoY revenue growth in constant currency (12.2)% (3.9)% Gross profit$136.9 $165.4 $396.6 $432.0 Gross profit percent 67.4% 73.3% 61.2% 64.5%
Fourth Quarter 2023 Segment Results
DWS revenue increased 8.9% YoY, or a 6.3% increase in constant currency. DWS gross profit margin was 15.3%, an increase of 20 bps YoY. The increase in revenue and gross profit margin was primarily driven by New Business with existing clients.
CA&I revenue increased 0.1% YoY, a 0.5% decline in constant currency. CA&I gross profit margin was 16.3%, a decrease of 270 bps YoY, as the prior year quarter gross profit included a benefit from the sale of surplus IP addresses. Full-year CA&I gross profit was 15.4%, up 630 bps, as the result of delivery improvements.
ECS revenue declined in the fourth quarter 10.0% YoY, or a 12.2% decline in constant currency. ECS gross profit margin was 67.4%, a decrease of 590 bps YoY. The decrease in revenue and gross profit margin was primarily driven by the timing of software license renewals, as expected.
Balance Sheet and Cash Flow
(In millions) 4Q23 4Q22 FY23 FY22 Cash and cash equivalents$387.7 $391.8 Cash provided by operations$23.0 $34.9 $74.2 $12.7 Free cash flow$4.0 $13.8 ($4.5 ) ($73.2 ) Pre-pension free cash flow$10.7 $23.6 $43.5 ($29.5 ) Adjusted free cash flow(13)$30.9 $39.3 $120.5 $27.0
Full-year 2023 free cash flow improved by
Cash and cash equivalents at
The company continued its pension de-risking strategy during 2023 with the purchase of two annuity contracts relating to its
Other Key Performance Metrics
YoY QoQ
Change Change*
4Q23
Pipeline(3)
Total company (1) % (20) %
Ex-L&S pipeline (1) % (20) %
TCV
Total company 50 % 331 %
Ex-L&S TCV 137 % 339 %
FY23
TCV
Total company 3 %
Ex-L&S TCV 27 %
* QoQ - quarter over quarter
Sequential pipeline decline was due to elevated client signings during the fourth quarter while YoY decline was the result of renewal timing, partially offset by growth in New Business pipeline.
In the fourth quarter and full-year of 2023, TCV growth was driven by strong growth in New Business TCV.
Backlog
was
2024 Financial Guidance
The company has issued full-year 2024 revenue growth and profitability guidance:
Guidance
Revenue growth in constant currency (1.5)% to 1.5%
Non-GAAP operating profit margin 5.5% to 7.5%
Constant currency revenue guidance implies
(1.0)% to 2.0% revenue growth as reported, based on recent exchanges rates, and assumes Ex-L&S full-year revenue growth of 1.5% to 5.0% and L&S revenue of approximately
Conference Call
Unisys will hold a conference call with the financial community on
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 webcast replay 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 4909173 from two hours after the end of the call until
(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
(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) 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 expansion and new scope for existing clients and new logo contracts.
(5) Book-to-bill – Represents total contract value booked divided by revenue in a given period.
(6) New Business – Represents expansion and new scope for existing clients and new logo contracts.
(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. The company uses estimated Next-Gen Solutions metrics to provide insight into the company's progress in shifting the revenue mix towards solutions that are generally higher-growth and higher-margin.
(8) Non-GAAP operating profit – This measure excludes pretax postretirement expense and pretax charges in connection with certain legal matters related to professional services and legal fees, including legal defense costs, associated with certain legal proceedings, and 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
(10) Non-GAAP net income and non-GAAP diluted earnings per share – These measures excluded postretirement expense and charges in connection with certain legal matters related to professional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental matters related to previously disposed businesses; and cost-reduction activities and other expenses. The tax amounts related to these items for the calculation of non-GAAP diluted earnings (loss) 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) Pre-pension free cash flow – Represents free cash flow before postretirement contributions.
(13) Adjusted free cash flow – Represents free cash flow less cash used for postretirement funding; certain legal matters related to professional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental matters related to previously disposed businesses; and cost-reduction activities and other payments.
(14) License and Support (L&S) – Represents software license and related support revenue within the company's ECS segment.
(15) Excluding License and Support (Ex-L&S) – These measures exclude revenue, gross profit and gross profit margin in connection with software license and support revenue within the company's ECS segment. The company provides these measures to allow investors to isolate the impact of software license renewals, which tend to be significant and impactful based on timing, and related support services in order to evaluate the company's business outside of these areas.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Unisys cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond Unisys' ability to control or estimate precisely, such as estimates of future market conditions, the behavior of other market participants and that TCV is based, in part, on the assumption that each of those contracts will continue for their full contracted term. Words such as "anticipates," "estimates," "expects," "projects," "may," "will," "intends," "plans," "believes," "should" and similar expressions may identify forward-looking statements and such forward-looking statements are made based upon management's current expectations, assumptions and beliefs as of this date concerning future developments and their potential effect upon Unisys. There can be no assurance that future developments will be in accordance with management's expectations, assumptions and beliefs or that the effect of future developments on Unisys will be those anticipated by management. Forward-looking statements in this release and the accompanying presentation include, but are not limited to, any projections or expectations of revenue growth, margin expansion, achievement of operational efficiencies and savings, future growth of our Next-Gen solutions, TCV and New Business TCV, backlog, pipeline, book-to-bill, full-year 2024 revenue growth and profitability guidance, including constant currency revenue, Ex-L&S revenue growth, L&S revenue, non-GAAP operating profit margin and the assumptions and other expectations made in connection with our full-year 2024 financial guidance, our pension liability and statements regarding future economic conditions or performance.
Additional information and factors that could cause actual results to differ materially from Unisys' expectations are contained in Unisys' filings with the
Non-GAAP Information
This release includes certain non-GAAP financial measures that exclude certain items such as postretirement expense; certain legal and other matters related to professional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental matters related to previously disposed businesses; 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.
Non-GAAP financial measures are often provided and utilized by the company's management, analysts, and investors to enhance comparability of year-over-year results and to isolate in some instances the impact of software license renewals, which tend to be lumpy, and related support services in order to evaluate the company's business outside of these areas. These items are uncertain, depend on various factors, and could have a material impact on the company's GAAP results for the applicable period. These measures should not be relied upon as substitutes for, or considered in isolation from, measures calculated in accordance with
About Unisys
Unisys is a global technology solutions company that powers breakthroughs for the world's leading organizations. Our solutions – cloud, data and AI, digital workplace, logistics and enterprise computing – help our clients challenge the status quo and unlock their full potential. To learn how we have been helping clients push what's possible for 150 years, visit unisys.com and follow us on LinkedIn.
RELEASE NO.: 0221/9939
Unisys and other Unisys products and services mentioned herein, as well as their respective logos, are trademarks or registered trademarks of
UIS-Q
UNISYS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited)
(Millions, except per share data)
Three Months Ended Year Ended
December 31, December 31,
2023 2022 2023 2022
Revenue
Services $ 429.8 $ 409.7 $ 1,665.9 $ 1,597.3
Technology 127.8 147.3 349.5 382.6
557.6 557.0 2,015.4 1,979.9
Costs and expenses
Cost of revenue:
Services 318.8 324.3 1,282.4 1,285.9
Technology 57.6 42.9 181.7 164.4
376.4 367.2 1,464.1 1,450.3
Selling, general and 129.0 132.9 450.3 453.2
administrative
Research and 8.2 6.9 24.1 24.2
development
513.6 507.0 1,938.5 1,927.7
Operating income 44.0 50.0 76.9 52.2
Interest expense 7.9 7.8 30.8 32.4
Other (expense), net (176.7) (16.2) (393.9) (82.4)
(Loss) earnings (140.6) 26.0 (347.8) (62.6)
before income taxes
Provision for income 23.6 17.2 79.3 42.3
taxes
Consolidated net (164.2) 8.8 (427.1) (104.9)
(loss) earnings
Net income
attributable to 1.1 0.3 3.6 1.1
noncontrolling
interests
Net (loss) income
attributable to $(165.3) $8.5 $(430.7) $(106.0)
Unisys Corporation
(Loss) earnings per
share attributable
to Unisys
Corporation
Basic $(2.42) $0.13 $(6.31) $(1.57)
Diluted $(2.42) $0.12 $(6.31) $(1.57)
UNISYS CORPORATION
SEGMENT RESULTS
(Unaudited)
(Millions)
Total DWS CA&I ECS Other
Three Months
Ended
December 31,
2023
Revenue $ $ $ 138.9 $ 203.0 $
557.6 139.2 76.5
Gross profit 32.5 % 15.3 % 16.3 % 67.4 %
percent
Three Months
Ended
December 31,
2022
Revenue $ $ $ 138.8 $ 225.6 $
557.0 127.8 64.8
Gross profit 34.1 % 15.1 % 19.0 % 73.3 %
percent
Total DWS CA&I ECS Other
Year Ended
December 31,
2023
Revenue $ 2,015.4 $ $ 531.0 $ 648.0 $
546.1 290.3
Gross profit 27.4 % 14.0 % 15.4 % 61.2 %
percent
Year Ended
December 31,
2022
Revenue $ 1,979.9 $ $ 520.3 $ 669.7 $
509.9 280.0
Gross profit 26.7 % 14.0 % 9.1 % 64.5 %
percent
UNISYS CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Millions)
December 31, December 31,
2023 2022
Assets
Current assets:
Cash and cash equivalents $ 387.7 $ 391.8
Accounts receivable, net 454.5 402.5
Contract assets 11.7 28.9
Inventories 15.3 14.9
Prepaid expenses and other 101.8 92.3
current assets
Total current assets 971.0 930.4
Properties 396.4 410.8
Less – Accumulated
depreciation and 332.1 334.9
amortization
Properties, net 64.3 75.9
Outsourcing assets, net 31.6 66.4
Marketable software, net 166.2 165.1
Operating lease 35.4 42.5
right-of-use assets
Prepaid postretirement 38.0 119.5
assets
Deferred income taxes 114.0 118.6
Goodwill 287.4 287.1
Intangible assets, net 42.7 52.4
Restricted cash 9.0 10.9
Assets held-for-sale 4.9 6.4
Other long-term assets 200.9 190.4
Total assets $1,965.4 $2,065.6
Total liabilities and
(deficit) equity
Current liabilities:
Current maturities of $ 13.0 $ 17.4
long-term debt
Accounts payable 130.9 160.8
Deferred revenue 198.6 200.7
Other accrued liabilities 308.4 271.6
Total current liabilities 650.9 650.5
Long-term debt 491.2 495.7
Long-term postretirement 787.7 714.6
liabilities
Long-term deferred revenue 104.4 122.3
Long-term operating lease 25.6 29.7
liabilities
Other long-term liabilities 44.0 31.0
Commitments and
contingencies
Total Unisys Corporation (151.8) (14.7)
stockholders' deficit
Noncontrolling interests 13.4 36.5
Total (deficit) equity (138.4) 21.8
Total liabilities and $1,965.4 $2,065.6
(deficit) equity
UNISYS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Millions)
Year Ended
December 31,
2023 2022
Cash flows from operating activities
Consolidated net loss $ (427.1) $ (104.9)
Adjustments to reconcile consolidated net loss
to net cash provided by operating activities:
Foreign currency losses 0.2 6.8
Non-cash interest expense 1.2 1.3
Employee stock compensation 17.2 20.0
Depreciation and amortization of properties 29.1 50.2
Depreciation and amortization of outsourcing 50.3 64.5
assets
Amortization of marketable software 49.7 58.7
Amortization of intangible assets 9.7 10.1
Other non-cash operating activities (0.2) 0.3
Loss on disposal of capital assets 6.0 6.6
Postretirement contributions (48.0) (43.7)
Postretirement expense 388.5 45.3
Deferred income taxes, net 24.5 (8.3)
Changes in operating assets and liabilities,
excluding the effects of acquisitions:
Receivables, net and contract assets 4.2 15.5
Inventories — (8.0)
Other assets (25.5) (2.6)
Accounts payable and current liabilities (20.9) (103.8)
Other liabilities 15.3 4.7
Net cash provided by operating activities 74.2 12.7
Cash flows from investing activities
Proceeds from investments 2,751.6 3,336.1
Purchases of investments (2,740.4) (3,380.4)
Capital additions of properties (21.3) (31.0)
Capital additions of outsourcing assets (11.4) (8.6)
Investment in marketable software (46.0) (46.3)
Purchases of businesses, net of cash acquired (1.2) (0.3)
Other (0.9) (0.9)
Net cash used for investing activities (69.6) (131.4)
Cash flows from financing activities
Payments of long-term debt (16.9) (17.8)
Other (0.4) (3.8)
Net cash used for financing activities (17.3) (21.6)
Effect of exchange rate changes on cash, cash 6.7 (17.6)
equivalents and restricted cash
Decrease in cash, cash equivalents and (6.0) (157.9)
restricted cash
Cash, cash equivalents and restricted cash, 402.7 560.6
beginning of period
Cash, cash equivalents and restricted cash, $396.7 $402.7
end of period
UNISYS CORPORATION
RECONCILIATIONS OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(Unaudited)
(Millions, except per share data)
Three Months Year Ended
Ended
December 31, December 31,
2023 2022 2023 2022
Net (loss) income
attributable to Unisys $(165.3) $8.5 $(430.7) $(106.0)
Corporation
Postretirement pretax 174.4 11.2 388.5 45.3
expense
tax (0.1) 0.1 (0.7) 0.5
net of tax 174.5 11.1 389.2 44.8
Certain legal pretax 11.9 6.8 35.7 16.0
matters
tax — — — —
net of tax 11.9 6.8 35.7 16.0
Environmental pretax 7.0 6.6 24.7 32.4
matters
tax — — — —
net of tax 7.0 6.6 24.7 32.4
Cost reduction
and other pretax 7.6 53.2 23.8 91.1
expenses
tax 0.3 3.4 1.0 3.5
net of tax 7.3 49.8 22.8 87.6
Non-GAAP net income
attributable to Unisys $35.4 $82.8 $41.7 $74.8
Corporation
Weighted average shares 68,402 67,793 68,254 67,665
(thousands)
Plus incremental shares from
assumed conversion:
Employee 1,365 331 945 481
stock plans
Non-GAAP adjusted weighted 69,767 68,124 69,199 68,146
average shares
Diluted earnings (loss) per
share
GAAP basis
Net (loss) income $ $
attributable to Unisys (165.3) 8.5 $ (430.7) $ (106.0)
Corporation
Divided by weighted average 68,402 68,124 68,254 67,665
shares
Diluted (loss) earnings per $(2.42) $0.12 $(6.31) $(1.57)
share
Non-GAAP basis
Non-GAAP net income
attributable to Unisys $ $ $ $
Corporation for diluted 35.4 82.8 41.7 74.8
earnings per share
Divided by Non-GAAP adjusted 69,767 68,124 69,199 68,146
weighted average shares
Non-GAAP diluted earnings $0.51 $1.22 $0.60 $1.10
per share
UNISYS CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP
(Unaudited)
(Millions)
FREE CASH FLOW
Three Months Year Ended
Ended
December 31, December 31,
2023 2022 2023 2022
Cash provided by operations $23.0 $34.9 $74.2 $12.7
Additions to marketable software (13.1) (11.1) (46.0) (46.3)
Additions to properties (5.9) (9.5) (21.3) (31.0)
Additions to outsourcing assets — (0.5) (11.4) (8.6)
Free cash flow 4.0 13.8 (4.5) (73.2)
Postretirement funding 6.7 9.8 48.0 43.7
Pre-pension free cash flow 10.7 23.6 43.5 (29.5)
Certain legal payments 9.7 — 30.2 5.5
Environmental matters payments 7.2 11.2 21.8 28.1
Cost reduction and other payments 3.3 4.5 25.0 22.9
Adjusted free cash flow $30.9 $39.3 $120.5 $27.0
UNISYS CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP
(Unaudited)
(Millions)
EBITDA
Three Months Ended Year Ended
December 31, December 31,
2023 2022 2023 2022
Net (loss)
income
attributable to $(165.3) $8.5 $(430.7) $(106.0)
Unisys
Corporation
Net income
attributable to 1.1 0.3 3.6 1.1
noncontrolling
interests
Interest
expense, net of
interest income 1.6 4.1 4.5 20.0
of $6.3 , $3.7 ,
$26.3 , $12.4
respectively(1)
Provision for 23.6 17.2 79.3 42.3
income taxes
Depreciation 21.0 36.6 79.4 114.7
Amortization 14.4 18.4 59.4 68.8
EBITDA $(103.6) $85.1 $(204.5) $140.9
Postretirement $ 174.4 $ $ 388.5 $ 45.3
expense 11.2
Certain legal 11.9 6.8 35.7 16.0
matters(2)
Environmental 7.0 6.6 24.7 32.4
matters(1)
Cost reduction
and other 4.5 30.2 13.5 55.4
expenses(3)
Non-cash share 4.1 4.3 16.6 19.0
based expense
Other expense,
net adjustment 2.1 4.5 11.4 16.8
(4)
Adjusted EBITDA $100.4 $148.7 $285.9 $325.8
(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)
(3) Reduced for depreciation and amortization
included above
(4) Other expense, net as reported on the consolidated statements of income
(loss) less postretirement expense, interest income and items
included in environmental matters, cost reduction and other expenses
Three Months Ended Year Ended
December 31, December 31,
2023 2022 2023 2022
Revenue $ 557.6 $ 557.0 $ 2,015.4 $ 1,979.9
Net (loss) earnings attributable
to Unisys Corporation as a (29.6) % 1.5 % (21.4) % (5.4) %
percentage of
revenue
Non-GAAP net income attributable
to Unisys Corporation as a 6.3 % 14.9 % 2.1 % 3.8 %
percentage of revenue
Adjusted EBITDA as a percentage of 18.0 % 26.7 % 14.2 % 16.5 %
revenue
UNISYS CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP
(Unaudited)
(Millions)
OPERATING PROFIT
Three Months Ended Year Ended
December 31, December 31,
2023 2022 2023 2022
Operating profit $44.0 $50.0 $76.9 $52.2
Certain legal matters(1) 11.4 6.8 35.2 16.0
Cost reduction and other expenses 8.4 55.1 27.4 88.7
(2)
Postretirement expense(1) 0.2 0.5 1.3 2.1
Non-GAAP operating profit $64.0 $112.4 $140.8 $159.0
Revenue $ 557.6 $ 557.0 $ 2,015.4 $ 1,979.9
Operating profit percent 7.9 % 9.0 % 3.8 % 2.6 %
Non-GAAP operating profit percent 11.5 % 20.2 % 7.0 % 8.0 %
(1) Included in selling, general and administrative expenses within 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)
EXCLUDING LICENSE AND SUPPORT (EX-L&S) REVENUE AND GROSS PROFIT
Three Months Year Ended
Ended
December 31, December 31,
2023 2022 2023 2022
Revenue $557.6 $557.0 $ 2,015.4 $ 1,979.9
L&S revenue 144.3 170.1 429.1 468.0
Ex-L&S Non-GAAP revenue $413.3 $386.9 $ 1,586.3 $ 1,511.9
Gross profit $181.2 $189.8 $551.3 $529.6
L&S gross profit 112.8 144.1 311.3 360.8
Ex-L&S Non-GAAP gross profit $68.4 $45.7 $240.0 $168.8
Gross profit percent 32.5 % 34.1 % 27.4 % 26.7 %
Ex-L&S Non-GAAP gross profit percent 16.5 % 11.8 % 15.1 % 11.2 %
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