CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 1-8729 | 38-0387840 | ||||||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
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) |
¨ | 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)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, par value $.01 | UIS | New York Stock Exchange |
Emerging growth company ¨ |
(b) | Pro Forma Financial Information | ||||
Attached as Exhibit 99.2 hereto and incorporated by reference is the unaudited pro forma financial information of the Company giving effect to the Transaction. | |||||
(d) | Exhibits |
Unisys Corporation | |||||||||||
Date: March 18, 2020 | By: | /s/ Michael M. Thomson | |||||||||
Michael M. Thomson | |||||||||||
Senior Vice President and Chief Financial Officer |
As Reported | Discontinued Operations U.S. Federal | Pro Forma Adjustments | Notes | Pro Forma Continuing Operations | |||||||||||||||||||||||||||||||
Revenue | |||||||||||||||||||||||||||||||||||
Services | $ | 2,552.7 | $ | (660.0) | $ | — | $ | 1,892.7 | |||||||||||||||||||||||||||
Technology | 396.0 | (65.9) | — | 330.1 | |||||||||||||||||||||||||||||||
2,948.7 | (725.9) | — | 2,222.8 | ||||||||||||||||||||||||||||||||
Costs and expenses | |||||||||||||||||||||||||||||||||||
Cost of revenue: | |||||||||||||||||||||||||||||||||||
Services | 2,134.1 | (543.5) | — | 1,590.6 | |||||||||||||||||||||||||||||||
Technology | 148.2 | (50.0) | — | 98.2 | |||||||||||||||||||||||||||||||
2,282.3 | (593.5) | — | 1,688.8 | ||||||||||||||||||||||||||||||||
Selling, general and administrative | 396.9 | (32.1) | — | 364.8 | |||||||||||||||||||||||||||||||
Research and development | 31.3 | — | — | 31.3 | |||||||||||||||||||||||||||||||
2,710.5 | (625.6) | — | 2,084.9 | ||||||||||||||||||||||||||||||||
Operating profit | 238.2 | (100.3) | — | 137.9 | |||||||||||||||||||||||||||||||
Interest expense | 62.1 | — | (49.7) | (a) | 12.4 | ||||||||||||||||||||||||||||||
Other income (expense), net | (136.4) | — | — | (136.4) | |||||||||||||||||||||||||||||||
Income (loss) before income taxes | 39.7 | (100.3) | 49.7 | (10.9) | |||||||||||||||||||||||||||||||
Provision (benefit) for income taxes | 53.0 | (25.3) | — | 27.7 | |||||||||||||||||||||||||||||||
Consolidated net income (loss) | (13.3) | (75.0) | 49.7 | (38.6) | |||||||||||||||||||||||||||||||
Net income (loss) attributable to noncontrolling interests | 3.9 | — | — | 3.9 | |||||||||||||||||||||||||||||||
Net income (loss) from continuing operations attributable to Unisys Corporation | $ | (17.2) | $ | (75.0) | $ | 49.7 | $ | (42.5) | |||||||||||||||||||||||||||
Earnings (loss) per common share attributable to Unisys Corporation | |||||||||||||||||||||||||||||||||||
Basic | $ | (0.31) | $ | (0.76) | |||||||||||||||||||||||||||||||
Diluted | $ | (0.31) | $ | (0.76) |
As Reported | Discontinued Operations U.S. Federal | Pro Forma Continuing Operations | |||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Services | $ | 2,386.3 | $ | (528.7) | $ | 1,857.6 | |||||||||||||||||
Technology | 438.7 | (45.1) | 393.6 | ||||||||||||||||||||
2,825.0 | (573.8) | 2,251.2 | |||||||||||||||||||||
Costs and expenses | |||||||||||||||||||||||
Cost of revenue: | |||||||||||||||||||||||
Services | 2,010.5 | (442.7) | 1,567.8 | ||||||||||||||||||||
Technology | 128.2 | (29.1) | 99.1 | ||||||||||||||||||||
2,138.7 | (471.8) | 1,666.9 | |||||||||||||||||||||
Selling, general and administrative | 370.3 | (30.0) | 340.3 | ||||||||||||||||||||
Research and development | 31.9 | — | 31.9 | ||||||||||||||||||||
2,540.9 | (501.8) | 2,039.1 | |||||||||||||||||||||
Operating profit | 284.1 | (72.0) | 212.1 | ||||||||||||||||||||
Interest expense | 64.0 | — | 64.0 | ||||||||||||||||||||
Other income (expense), net | (76.9) | (0.2) | (77.1) | ||||||||||||||||||||
Income (loss) before income taxes | 143.2 | (72.2) | 71.0 | ||||||||||||||||||||
Provision (benefit) for income taxes | 64.3 | (18.3) | 46.0 | ||||||||||||||||||||
Consolidated net income (loss) | 78.9 | (53.9) | 25.0 | ||||||||||||||||||||
Net income (loss) attributable to noncontrolling interests | 3.4 | — | 3.4 | ||||||||||||||||||||
Net income (loss) from continuing operations attributable to Unisys Corporation | $ | 75.5 | $ | (53.9) | $ | 21.6 | |||||||||||||||||
Earnings (loss) per common share attributable to Unisys Corporation | |||||||||||||||||||||||
Basic | $ | 1.48 | $ | 0.42 | |||||||||||||||||||
Diluted | $ | 1.30 | $ | 0.42 |
As Reported | Discontinued Operations U.S. Federal | Pro Forma Continuing Operations | |||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Services | $ | 2,328.2 | $ | (527.3) | $ | 1,800.9 | |||||||||||||||||
Technology | 413.6 | (43.6) | 370.0 | ||||||||||||||||||||
2,741.8 | (570.9) | 2,170.9 | |||||||||||||||||||||
Costs and expenses | |||||||||||||||||||||||
Cost of revenue: | |||||||||||||||||||||||
Services | 2,033.8 | (440.8) | 1,593.0 | ||||||||||||||||||||
Technology | 160.3 | (30.8) | 129.5 | ||||||||||||||||||||
2,194.1 | (471.6) | 1,722.5 | |||||||||||||||||||||
Selling, general and administrative | 411.9 | (26.7) | 385.2 | ||||||||||||||||||||
Research and development | 38.7 | — | 38.7 | ||||||||||||||||||||
2,644.7 | (498.3) | 2,146.4 | |||||||||||||||||||||
Operating profit | 97.1 | (72.6) | 24.5 | ||||||||||||||||||||
Interest expense | 52.8 | — | 52.8 | ||||||||||||||||||||
Other income (expense), net | (116.4) | (0.4) | (116.8) | ||||||||||||||||||||
Income (loss) before income taxes | (72.1) | (73.0) | (145.1) | ||||||||||||||||||||
Provision (benefit) for income taxes | (5.5) | (28.6) | (34.1) | ||||||||||||||||||||
Consolidated net income (loss) | (66.6) | (44.4) | (111.0) | ||||||||||||||||||||
Net income (loss) attributable to noncontrolling interests | (1.3) | — | (1.3) | ||||||||||||||||||||
Net income (loss) from continuing operations attributable to Unisys Corporation | $ | (65.3) | $ | (44.4) | $ | (109.7) | |||||||||||||||||
Earnings (loss) per common share attributable to Unisys Corporation | |||||||||||||||||||||||
Basic | $ | (1.30) | $ | (2.18) | |||||||||||||||||||
Diluted | $ | (1.30) | $ | (2.18) |
As Reported | Discontinued Operations U.S. Federal | Pro Forma Adjustments | Notes | Pro Forma Continuing Operations | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Current Assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 538.8 | $ | — | $ | 36.0 | (e) | $ | 574.8 | |||||||||||||||||||||||
Accounts receivable, net | 495.0 | (77.3) | 417.7 | |||||||||||||||||||||||||||||
Contract assets | 53.0 | (14.6) | — | 38.4 | ||||||||||||||||||||||||||||
Inventories: | ||||||||||||||||||||||||||||||||
Parts and finished equipment | 10.9 | (0.1) | — | 10.8 | ||||||||||||||||||||||||||||
Work in process and materials | 9.8 | (4.2) | — | 5.6 | ||||||||||||||||||||||||||||
Prepaid expenses and other current assets | 113.8 | (13.1) | — | 100.7 | ||||||||||||||||||||||||||||
Total current assets | 1,221.3 | (109.3) | 36.0 | 1,148.0 | ||||||||||||||||||||||||||||
Properties | 806.0 | (22.0) | — | 784.0 | ||||||||||||||||||||||||||||
Less - Accumulated depreciation and amortization | 681.6 | (13.6) | — | 668.0 | ||||||||||||||||||||||||||||
Properties, net | 124.4 | (8.4) | — | 116.0 | ||||||||||||||||||||||||||||
Outsourcing assets, net | 202.5 | (0.4) | — | 202.1 | ||||||||||||||||||||||||||||
Marketable software, net | 186.8 | — | — | 186.8 | ||||||||||||||||||||||||||||
Operating lease right-of-use assets | 127.1 | (55.7) | — | 71.4 | ||||||||||||||||||||||||||||
Prepaid postretirement assets | 136.2 | — | — | 136.2 | ||||||||||||||||||||||||||||
Deferred income taxes | 114.0 | — | — | 114.0 | ||||||||||||||||||||||||||||
Goodwill | 177.2 | (66.8) | — | 110.4 | ||||||||||||||||||||||||||||
Restricted cash | 13.0 | — | — | 13.0 | ||||||||||||||||||||||||||||
Other long-term assets | 201.5 | (2.6) | — | 198.9 | ||||||||||||||||||||||||||||
Total assets | $ | 2,504.0 | $ | (243.2) | $ | 36.0 | $ | 2,296.8 | ||||||||||||||||||||||||
Liabilities and deficit | ||||||||||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||||||||||
Current maturities of long-term debt | $ | 13.5 | $ | — | $ | — | $ | 13.5 | ||||||||||||||||||||||||
Accounts payable | 252.0 | (47.7) | — | 204.3 | ||||||||||||||||||||||||||||
Deferred revenue | 288.6 | (42.3) | — | 246.3 | ||||||||||||||||||||||||||||
Other accrued liabilities | 373.2 | (56.4) | — | 316.8 | ||||||||||||||||||||||||||||
Total current liabilities | 927.3 | (146.4) | — | 780.9 | ||||||||||||||||||||||||||||
Long-term debt | 566.1 | (0.2) | (434.5) | (b) | 131.4 | |||||||||||||||||||||||||||
Long-term postretirement liabilities | 1,960.2 | — | (600.0) | (c) | 1,360.2 | |||||||||||||||||||||||||||
Long-term deferred revenue | 147.4 | (0.4) | — | 147.0 | ||||||||||||||||||||||||||||
Long-term operating lease liabilities | 83.6 | (27.6) | — | 56.0 | ||||||||||||||||||||||||||||
Other long-term liabilities | 47.7 | (0.1) | — | 47.6 | ||||||||||||||||||||||||||||
Commitments and contingencies | — | — | — | — | ||||||||||||||||||||||||||||
Total deficit | (1,228.3) | (68.5) | 1,070.5 | (d) | (226.3) | |||||||||||||||||||||||||||
Total liabilities and deficit | $ | 2,504.0 | $ | (243.2) | $ | 36.0 | $ | 2,296.8 |
(a) | Reflects removal of interest expense related to the Company’s Senior Secured Notes assumed to be paid off with the proceeds of the sale. The interest of $49.7 million had no federal tax benefit related to it due to the Company’s tax position. | ||||
(b) | Reflects repayment of the Company’s Senior Secured Notes of $440.0 million plus $24.0 million of a premium. The Senior Secured Notes are carried on the Company’s books at December 31, 2019 at $434.5 million, which is net of $5.5 million of unamortized issuance costs. The write off of the unamortized issuance cost as well as the payment of the $24.0 million premium will result in a loss on extinguishment of $29.5 million. Due to the Company’s tax position, no tax benefit will result from the payment. | ||||
(c) | Reflects the contribution of $600.0 million to the Company’s U.S. qualified defined benefit pension plans. Pension expense in 2019 does not include any expected return on the amount contributed. | ||||
(d) | Reflects the net proceeds on the sale of $1,100.0 million less $29.5 million net loss on the extinguishment of debt. | ||||
(e) | Reflects the net proceeds of $1,100.0 million less (1) $600.0 million pension contribution, (2) $440.0 million to redeem the Senior Secured Notes, and (3) a premium of $24.0 million paid to the Senior Secured Noteholders. |