UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported) October 23, 2012
_______________________________________________________________________________
UNISYS CORPORATION
_______________________________________________________________________________
(Exact Name of Registrant as Specified in its Charter)
Delaware 1-8729 38-0387840
_______________________________________________________________________________
(State or Other (Commission File Number) (IRS Employer
Jurisdiction of Identification No.)
Incorporation)
801 Lakeview Drive, Suite 100
Blue Bell, Pennsylvania 19422
_______________________________________________________________________________
(Address of Principal Executive Offices) (Zip Code)
(215) 986-4011
_______________________________________________________________________________
(Registrant's telephone number, including area code)
N/A
_______________________________________________________________________________
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of
the following provisions:
\ \ Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
\ \ Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
\ \ Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b)
\ \ Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On October 23, 2012, Unisys Corporation issued a news release to report its
financial results for the quarter ended September 30, 2012. The release is
furnished as Exhibit 99 to this Current Report.
The information in this Current Report, including the Exhibit attached hereto,
shall not be deemed "filed" for purposes of Section 18 of the Securities
Exchange Act of 1934, as amended, or otherwise subject to the liabilities of
that section. The information contained herein and in the accompanying Exhibit
shall not be incorporated by reference into any registration statement or other
document filed with the Securities and Exchange Commission by Unisys
Corporation, whether before or after the date hereof, regardless of any general
incorporation language in such filing, except as shall be expressly set forth
by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) The following exhibit is being furnished herewith:
99 News Release, dated October 23, 2012, of Unisys Corporation
SIGNATURE
---------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
UNISYS CORPORATION
Date: October 23, 2012 By: /s/ Janet B. Haugen
-------------------
Janet B. Haugen
Senior Vice President and
Chief Financial Officer
EXHIBIT INDEX
-------------
Exhibit
No.
------
99 News Release, dated October 23, 2012, of Unisys Corporation
News Release
Investor Contact:
Niels Christensen, 215-986-6651
Niels.Christensen@unisys.com
Media Contact:
Jim Kerr, 215-986-5795
Jim.Kerr@unisys.com
UNISYS ANNOUNCES THIRD-QUARTER 2012 FINANCIAL RESULTS
* NET LOSS OF $12.4 MILLION INCLUDES $23.1 MILLION OF DEBT REDUCTION
CHARGES AND $28.9 MILLION OF PENSION EXPENSE; COMPARES WITH NET INCOME
OF $78.6 MILLION IN 3Q 2011, WHICH INCLUDED $6.9 MILLION OF PENSION
EXPENSE
* NON-GAAP NET INCOME(1) OF $43.6 MILLION VS. $89.7 MILLION IN 3Q 2011
* YEAR-TO-DATE NET INCOME OF $47.6 MILLION VS. $26.2 FOR FIRST NINE
MONTHS OF 2011
* YEAR-TO-DATE NON-GAAP NET INCOME OF $165.3 MILLION VS. $143.5 MILLION
FOR FIRST NINE MONTHS OF 2011
* COMPANY COMPLETES ITS $1 BILLION MULTI-YEAR DEBT REDUCTION PROGRAM
BLUE BELL, Pa., October 23, 2012 - Unisys Corporation (NYSE: UIS) today
reported a third-quarter 2012 net loss of $12.4 million, or a loss of 28
cents per diluted share, which included $23.1 million of debt reduction
charges and $28.9 million of pension expense. In the third quarter of
2011, the company reported net income of $78.6 million, or $1.63 per
diluted share, which included $6.9 million of pension expense. Excluding
debt reduction charges and pension expense, non-GAAP diluted earnings per
share(1) in the third quarter of 2012 was 85 cents compared with $1.77 in
the third quarter of 2011. On lower pre-tax income, the company reported
a third-quarter 2012 income tax provision of $32.7 million compared with
$33.4 million in the third quarter of 2011. The third-quarter 2012 tax
provision included a charge of $9.2 million related to a change in
applicable corporate tax rates in the U.K.
Revenue in the third quarter of 2012 declined 14 percent to $877 million
compared with $1.02 billion in the year-ago quarter. Foreign currency
fluctuations had a 4 percentage point negative impact on revenue
comparisons in the current quarter.
Through the first nine months of 2012, Unisys reported net income of
$47.6 million, which included $30.6 million of debt reduction charges and
$75.0 million of pension expense. This compared to net income of $26.2
million for the first nine months of 2011, which included $77.6 million
of debt reduction charges, $21.3 million of pension expense, and an $8.9
million charge related to the settlement of a non-income tax matter.
Excluding these items, non-GAAP net income for the first nine months of
2012 was $165.3 million compared with $143.5 million for the comparable
period of 2011. Revenue for the first nine months of 2012 declined 5
percent - 2 percent on a constant currency basis(2) - over the first nine
months of 2011.
"After a strong first half of 2012, we saw softer services demand,
particularly for short-term project work, in the third quarter," said
Unisys Chairman and CEO Ed Coleman. "The lower services revenue, along
with higher pension expense and debt reduction charges, impacted our
results. However, we were pleased with margin improvement in our
technology business, ongoing cost discipline across our company,
continued improvements in service quality, and the early achievement of
our 2013 debt reduction goal.
"Year to date, we have improved our profitability from 2011 levels. We
are encouraged by reaction to recent product announcements, a growing
reputation for service excellence, and a strong pipeline of
opportunities," Coleman said.
THIRD-QUARTER COMPANY AND BUSINESS SEGMENT HIGHLIGHTS
U.S. revenue declined 24 percent in the quarter. About half of the
revenue decline was in the company's U.S. Federal government business.
International revenue declined 6 percent in the quarter. On a constant
currency basis, international revenue grew 3 percent as increases in
Latin America and Japan offset declines in Europe.
The company reported an overall third-quarter 2012 gross profit margin of
24.9 percent, down from 27.9 percent in the year-ago quarter. Operating
expenses (R&D and SG&A expenses) declined 8 percent from the year-ago
period. Third-quarter 2012 operating profit declined to 7.0 percent of
revenue from 11.1 percent of revenue in the third quarter of 2011. The
company reported a third-quarter 2012 operating profit of $61.2 million,
including $29.9 of pension expense, compared with a third-quarter 2011
operating profit of $113.0 million, which included $8.5 million of
pension expense.
Third-quarter 2012 services revenue declined 15 percent from the prior-
year quarter. On a constant currency basis, services revenue decreased 10
percent primarily driven by lower project revenue and lower sales of
industry solutions within the company's systems integration business. The
lower revenue level as well as a different mix of services revenue
impacted services margins in the quarter. Third-quarter 2012 services
gross profit margin declined to 19.9 percent from 21.6 percent a year ago
while services operating profit margin decreased to 6.0 percent from 8.7
percent a year ago.
Third-quarter services order signings were down but flat on a constant
currency basis. Services backlog at September 30, 2012 was $5.1 billion,
an 8 percent decrease from services backlog at December 31, 2011.
Third-quarter 2012 technology revenue decreased 10 percent from the
prior-year quarter as growth in enterprise servers was offset by lower
sales of other technology. Reflecting a higher percentage of enterprise-
class software and server sales in the quarter, technology gross profit
margin improved to 59.9 percent from 57.4 percent in the year-ago quarter
and technology operating profit margin increased to 29.1 percent from
25.8 percent in the year-ago quarter.
CASH FLOW AND BALANCE SHEET HIGHLIGHTS
Unisys generated $17 million of cash from operations in the third quarter
of 2012, which included pension contributions of $56 million. In the
year-ago quarter, the company generated $94 million of cash from
operations, which included $21 million of pension contributions. Capital
expenditures in the third quarter of 2012 increased to $32 million
compared with $29 million in the year-ago quarter. The company used $15
million of free cash in the third quarter of 2012 compared with free cash
flow(3) of $65 million in the third quarter of 2011. Free cash flow
before pension contributions was $42 million in the current quarter
compared with $86 million in the year-ago quarter. Before pension
contributions, the company generated free cash flow of $186 million in
the first nine months of 2012 compared with $120 million in the first
nine months of 2011.
During the quarter Unisys completed previously announced actions to
eliminate remaining high-interest debt as part of its debt reduction
program. Through a combination of debt extinguishment and refinancing
actions, the company retired $293.7 million aggregate principal amount of
12.5% and 12.75% senior notes while successfully issuing $210 million of
6.25% senior notes due 2017.
At September 30, 2012, the company reported a cash balance of $542
million and total debt of $211 million.
NON-GAAP INFORMATION
Unisys reports its results in accordance with Generally Accepted
Accounting Principles (GAAP) in the United States. However, in an effort
to provide investors with additional perspective regarding the company's
results as determined by GAAP, the company also discusses, in its
earnings press release and/or earnings presentation materials, non-GAAP
information which management believes provides useful information to
investors. Our management uses supplemental non-GAAP financial measures
internally to understand, manage and evaluate our business and assess
operational alternatives. These non-GAAP measures may include non-GAAP
net income and diluted earnings per share, constant currency, and free
cash flow.
Our non-GAAP measures are not intended to be considered in isolation or
as substitutes for results determined in accordance with GAAP and should
be read only in conjunction with our consolidated financial statements
prepared in accordance with GAAP. (See GAAP to non-GAAP reconciliations
attached.)
(1) Non-GAAP net income and diluted earnings per share - As a result of
debt reduction actions, Unisys recorded charges of $23.1 million and $0.1
million during the third quarters of 2012 and 2011, respectively. The
company also recorded pension expense of $28.9 million and $6.9 million
during the third quarters of 2012 and 2011, respectively. For the first
nine months of 2012 and 2011, Unisys recorded debt reduction charges of
$30.6 million and $77.6 million, respectively. The company also recorded
pension expense of $75.0 million and $21.3 million during the first nine
months of 2012 and 2011, respectively. In the first nine months of 2011,
the company incurred a charge of $8.9 million related to a Brazil non-
income tax case. In an effort to provide investors with a perspective on
the company's earnings without these charges, they are excluded from the
non-GAAP net income and diluted earnings per share calculations.
(2) Constant currency - The company refers to growth rates at constant
currency or adjusting for currency 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 for revenue is calculated
by retranslating current and prior period results at a consistent rate.
This approach is based on the pricing currency for each country which is
typically the functional currency. Generally, when the dollar either
strengthens or weakens against other currencies, the growth at constant
currency rates will be higher or lower, respectively, than growth
reported at actual exchange rates.
(3) Free cash flow - To better understand the trends in our business, we
believe that it is helpful to present free cash flow, which we define as
cash flow from operations less capital expenditures. Management believes
this measure gives investors an additional perspective on cash flow from
operating activities in excess of amounts required for reinvestment.
Because of the significance of the company's pension funding obligations
in 2012, free cash flow before pension funding is also provided.
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 via a link 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.
ABOUT UNISYS
Unisys is a worldwide information technology company. We provide a
portfolio of IT services, software, and technology that solves critical
problems for clients. We specialize in helping clients secure their
operations, increase the efficiency and utilization of their data
centers, enhance support to their end users and constituents, and
modernize their enterprise applications. To provide these services and
solutions, we bring together offerings and capabilities in outsourcing
services, systems integration and consulting services, infrastructure
services, maintenance services, and high-end server technology. With
approximately 22,500 employees, Unisys serves commercial organizations
and government agencies throughout the world. 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 drive
profitable growth in consulting and systems integration; the company's
ability to take on, successfully implement and grow outsourcing
operations; market demand for the company's high-end enterprise servers
and maintenance on those servers; 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 ability to effectively anticipate and respond to volatility and
rapid technological change in its industry; the adverse effects of global
economic conditions; the company's significant pension obligations and
potential requirements to make significant cash contributions to its
defined benefit pension plans; the success of the company's program to
reduce costs, focus its global resources and simplify its business
structure; the risks that the company's contracts may not be as
profitable as expected or provide the expected level of revenues and that
contracts with U.S. governmental agencies may subject it to audits,
criminal penalties, sanctions and other expenses and fines; the risk that
the company may face damage to its reputation or legal liability if its
clients are not satisfied with its services or products; the risk that
breaches of data security could expose the company to legal liability and
could harm its business and reputation; the performance and capabilities
of third parties with whom the company has commercial relationships; the
risks of doing business internationally when more than half of the
company's revenue is derived from international operations; the company's
ability to access capital and credit markets to address its liquidity
needs; 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; the company's ability to use its U.S. Federal net operating
loss carryforwards and other tax attributes; 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.: 1023/9138
Unisys is a registered trademark of Unisys Corporation. All other brands
and products referenced herein are acknowledged to be trademarks or
registered trademarks of their respective holders.
UNISYS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Millions, except per share data)
Three Months Nine Months
Ended September 30 Ended September 30
------------------ ------------------
2012 2011 2012 2011
-------- -------- -------- --------
Revenue
Services $748.0 $876.3 $2,386.7 $2,519.3
Technology 129.4 143.8 340.4 349.2
-------- -------- -------- --------
877.4 1,020.1 2,727.1 2,868.5
Costs and expenses
Cost of revenue:
Services 612.5 680.0 1,927.0 2,010.6
Technology 46.3 55.3 112.5 151.2
-------- -------- -------- --------
658.8 735.3 2,039.5 2,161.8
Selling, general and
administrative 138.6 153.3 422.0 446.5
Research and development 18.8 18.5 61.0 57.2
-------- -------- -------- --------
816.2 907.1 2,522.5 2,665.5
-------- -------- -------- --------
Operating profit 61.2 113.0 204.6 203.0
Interest expense 7.8 12.5 25.0 51.7
Other income (expense), net (25.8) 16.6 (34.9) (56.6)
-------- -------- -------- --------
Income before income taxes 27.6 117.1 144.7 94.7
Provision for income taxes 32.7 33.4 76.8 52.4
-------- -------- -------- --------
Consolidated net
income (loss) (5.1) 83.7 67.9 42.3
Net income attributable to
noncontrolling interests 3.3 1.0 8.2 6.6
-------- -------- -------- --------
Net income (loss) attributable
to Unisys Corporation (8.4) 82.7 59.7 35.7
Preferred stock dividends 4.0 4.1 12.1 9.5
-------- -------- -------- --------
Net income (loss) attributable
to Unisys Corporation
common shareholders ($12.4) $78.6 $47.6 $26.2
======== ======== ======== ========
Earnings (loss) per common share attributable
to Unisys Corporation
Basic ($ .28) $ 1.82 $ 1.09 $ .61
======== ======== ======== ========
Diluted ($ .28) $ 1.63 $ 1.08 $ .60
======== ======== ======== ========
Shares used in the per share
computations (thousands):
Basic 43,966 43,246 43,827 43,063
Diluted 43,966 50,623 44,273 43,635
UNISYS CORPORATION
SEGMENT RESULTS
(Unaudited)
(Millions)
Elimi-
Total nations Services Technology
-------- -------- -------- ----------
Three Months Ended
September 30, 2012
------------------
Customer revenue $877.4 $748.0 $129.4
Intersegment ($16.2) 0.6 15.6
-------- -------- -------- --------
Total revenue $877.4 ($16.2) $748.6 $145.0
======== ======== ======== ========
Gross profit percent 24.9% 19.9% 59.9%
======== ======== ========
Operating profit
percent 7.0% 6.0% 29.1%
======== ======== ========
Three Months Ended
September 30, 2011
------------------
Customer revenue $1,020.1 $876.3 $143.8
Intersegment ($26.4) 0.9 25.5
-------- -------- -------- --------
Total revenue $1,020.1 ($26.4) $877.2 $169.3
======== ======== ======== ========
Gross profit percent 27.9% 21.6% 57.4%
======== ======== ========
Operating profit
percent 11.1% 8.7% 25.8%
======== ======== ========
Nine Months Ended
September 30, 2012
------------------
Customer revenue $2,727.1 $2,386.7 $340.4
Intersegment ($85.8) 2.0 83.8
-------- -------- -------- --------
Total revenue $2,727.1 ($85.8) $2,388.7 $424.2
======== ======== ======== ========
Gross profit percent 25.2% 19.9% 61.8%
======== ======== ========
Operating profit
percent 7.5% 6.3% 27.8%
======== ======== ========
Nine Months Ended
September 30, 2011
------------------
Customer revenue $2,868.5 $2,519.3 $349.2
Intersegment ($70.2) 2.7 67.5
-------- -------- -------- --------
Total revenue $2,868.5 ($70.2) $2,522.0 $416.7
======== ======== ======== ========
Gross profit percent 24.6% 19.9% 53.1%
======== ======== ========
Operating profit
percent 7.1% 6.7% 14.6%
======== ======== ========
UNISYS CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Millions)
September 30, December 31,
2012 2011
---------- ----------
Assets
Current assets
Cash and cash equivalents $541.6 $714.9
Accounts and notes receivable, net 602.2 673.0
Inventories
Parts and finished equipment 32.7 38.1
Work in process and materials 26.3 26.7
Deferred income taxes 23.7 27.1
Prepaid expense and other
current assets 98.2 123.6
---------- ----------
Total 1,324.7 1,603.4
---------- ----------
Properties 1,264.0 1,257.2
Less accumulated depreciation
and amortization 1,088.5 1,065.9
---------- ----------
Properties, net 175.5 191.3
---------- ----------
Outsourcing assets, net 119.3 137.9
Marketable software, net 130.2 129.8
Prepaid postretirement assets 22.0 43.9
Deferred income taxes 176.5 181.5
Goodwill 192.2 192.5
Other long-term assets 114.1 131.9
---------- ----------
Total $2,254.5 $2,612.2
========== ==========
Liabilities and deficit
Current liabilities
Notes payable $0.2 $ -
Current maturities of long-term debt 0.5 0.9
Accounts payable 221.1 241.6
Deferred revenue 362.8 448.1
Other accrued liabilities 368.8 425.5
---------- ----------
Total 953.4 1,116.1
---------- ----------
Long-term debt 210.1 358.8
Long-term postretirement liabilities 2,032.1 2,224.0
Long-term deferred revenue 116.4 120.3
Other long-term liabilities 95.1 104.0
Commitments and contingencies
Total deficit (1,152.6) (1,311.0)
---------- ----------
Total $2,254.5 $2,612.2
========== ==========
UNISYS CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
(Millions)
Nine Months Ended
September 30
------------------
2012 2011
------- -------
Cash flows from operating activities
Consolidated net income $67.9 $42.3
Add (deduct) items to reconcile consolidated net
Income to net cash provided by operating activities:
Loss on debt extinguishment 30.6 77.6
Employee stock compensation 11.8 12.8
Company stock issued for U.S. 401(k) plan 6.2 9.6
Depreciation and amortization of properties 41.8 50.8
Depreciation and amortization of
outsourcing assets 44.1 48.2
Amortization of marketable software 42.5 50.9
Disposals of capital assets 6.2 1.0
(Gain) loss on sale of businesses and assets (11.7) .3
Decrease in deferred income taxes, net 31.0 33.4
Decrease in receivables, net 58.0 89.5
Decrease in inventories 5.1 21.3
Decrease in accounts payable
and other accrued liabilities (151.8) (254.6)
Decrease in other liabilities (183.6) (43.2)
Decrease in other assets 112.0 17.6
Other (2.7) .2
------- -------
Net cash provided by operating activities 107.4 157.7
------- -------
Cash flows from investing activities
Proceeds from investments 2,786.6 396.9
Purchases of investments (2,784.2) (394.5)
Restricted deposits (1.1) 30.1
Investment in marketable software (42.9) (36.9)
Capital additions of properties (26.0) (32.9)
Capital additions of outsourcing assets (27.8) (31.3)
Net proceeds from sale of
businesses and assets 5.2 (15.0)
------- -------
Net cash used for investing activities (90.2) (83.6)
------- -------
Cash flows from financing activities
Proceeds from issuance of preferred stock,
net of issuance costs 249.7
Payments of long-term debt (388.9) (462.5)
Dividends paid to noncontrolling interests (4.5) (.4)
Dividends paid on preferred shares (12.1) (8.1)
Proceeds from exercise of stock options .4 1.4
Proceeds from issuance of long-term debt 204.8 -
Net proceeds from short-term borrowings .2 -
Financing fees - (2.2)
------- -------
Net cash used for financing activities (200.1) (222.1)
------- -------
Effect of exchange rate changes on cash
and cash equivalents 9.6 (13.0)
------- -------
Decrease in cash and cash equivalents (173.3) (161.0)
Cash and cash equivalents, beginning of
period 714.9 828.3
------- -------
Cash and cash equivalents, end of period $541.6 $667.3
======= =======
(1)
UNISYS CORPORATION
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(Unaudited)
(Millions, except per share data)
Three Months Nine Months
Ended September 30 Ended September 30
------------------ ------------------
2012 2011 2012 2011
-------- -------- -------- --------
GAAP net income (loss)
attributable to Unisys Corporation
common shareholders ($12.4) $78.6 $47.6 $26.2
Debt reduction charges,
net of tax 23.1 0.1 30.6 77.6
Brazil non-income
tax case, net of tax 0.0 8.9
FAS87 pension charges,
net of tax 28.9 6.9 75.0 21.3
-------- -------- -------- --------
Non-GAAP net income
attributable to Unisys Corporation
common shareholders 39.6 85.6 153.2 134.0
Add preferred stock
dividends 4.0 4.1 12.1 9.5
-------- -------- -------- --------
Non-GAAP net income
attributable to Unisys
Corporation for diluted
earnings per share $43.6 $89.7 $165.3 $143.5
======== ======== ======== ========
Weighted average
shares (thousands) 43,966 43,246 43,827 43,063
Plus incremental shares from assumed conversion:
Employee stock plans 458 464 445 572
Preferred stock 6,913 6,913 6,913 5,402
-------- -------- -------- --------
GAAP adjusted weighted
average shares 51,337 50,623 51,185 49,037
======== ======== ======== ========
Diluted earnings (loss) per share
GAAP basis
GAAP net income (loss)
attributable to Unisys
Corporation for diluted
earnings per share ($12.4) $82.7 $47.6 $26.2
Divided by adjusted weighted
average shares 43,966 50,623 44,273 43,635
GAAP net income (loss)
per diluted share ($ .28) $ 1.63 $ 1.08 $ .60
======== ======== ======== ========
Non-GAAP basis
Non-GAAP net income
attributable to Unisys
Corporation for diluted
earnings per share $43.6 $89.7 $165.3 $143.5
Divided by Non-GAAP adjusted
weighted average shares 51,337 50,623 51,185 49,037
Non-GAAP net income
per diluted share $ .85 $ 1.77 $ 3.23 $ 2.93
======== ======== ======== ========
(2)
UNISYS CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP
(Unaudited)
(Millions)
FREE CASH FLOW
--------------
Three Months Nine Months
Ended September 30 Ended September 30
----------------- -----------------
2012 2011 2012 2011
-------- -------- -------- --------
Cash provided by
operations $16.9 $93.8 $107.4 $157.7
Additions to marketable
software (14.3) (13.6) (42.9) (36.9)
Additions to properties (8.1) (8.9) (26.0) (32.9)
Additions to outsourcing
assets (9.1) (6.3) (27.8) (31.3)
-------- -------- -------- --------
Free Cash Flow (14.6) 65.0 10.7 56.6
Pension funding 56.3 20.8 175.1 63.6
-------- -------- -------- --------
Free cash flow before
pension funding $41.7 $85.8 $185.8 $120.2
======== ======== ======== ========