0000746838-13-000003.txt : 20130129
0000746838-13-000003.hdr.sgml : 20130129
20130129163531
ACCESSION NUMBER: 0000746838-13-000003
CONFORMED SUBMISSION TYPE: 8-K
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 20130129
ITEM INFORMATION: Results of Operations and Financial Condition
ITEM INFORMATION: Financial Statements and Exhibits
FILED AS OF DATE: 20130129
DATE AS OF CHANGE: 20130129
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: UNISYS CORP
CENTRAL INDEX KEY: 0000746838
STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373]
IRS NUMBER: 380387840
STATE OF INCORPORATION: DE
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: 8-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 001-08729
FILM NUMBER: 13555818
BUSINESS ADDRESS:
STREET 1: 801 LAKEVIEW DRIVE, SUITE 100
CITY: BLUE BELL
STATE: PA
ZIP: 19422
BUSINESS PHONE: 2159864011
MAIL ADDRESS:
STREET 1: 801 LAKEVIEW DRIVE, SUITE 100
CITY: BLUE BELL
STATE: PA
ZIP: 19422
FORMER COMPANY:
FORMER CONFORMED NAME: BURROUGHS CORP /DE/
DATE OF NAME CHANGE: 19861204
8-K
1
fourthqearnings.txt
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) January 29, 2013
_______________________________________________________________________________
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 January 29, 2013, Unisys Corporation issued a news release to report its
financial results for the quarter and year ended December 31, 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 January 29, 2013, 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: January 29, 2013 By: /s/ Janet B. Haugen
-------------------
Janet B. Haugen
Senior Vice President and
Chief Financial Officer
EXHIBIT INDEX
-------------
Exhibit
No.
------
99 News Release, dated January 29, 2013, of Unisys Corporation
EX-99
2
ex-99fourq.txt
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 FOURTH-QUARTER AND FULL-YEAR 2012 FINANCIAL RESULTS
FOURTH-QUARTER 2012
* Revenue down 1 percent vs. 4Q 2011; flat on a constant currency(1)
basis
* Diluted EPS of $1.67 vs. $1.94 in 4Q 2011
* Non-GAAP diluted EPS(2) of $2.27 vs. $2.22 in 4Q 2011
* Free cash flow(3) of $118 million; free cash flow of $144 million
before pension contributions
FULL-YEAR 2012
* Revenue down 4 percent vs. FY 2011; down 1 percent on a constant
currency basis
* Diluted EPS of $2.84 vs. $2.71 for FY 2011
* Non-GAAP diluted EPS of $5.50 vs. $5.18 for FY 2011
* Free cash flow of $129 million; free cash flow of $330 million before
pension contributions
BLUE BELL, Pa., January 29, 2013 - Unisys Corporation (NYSE: UIS) today
reported fourth-quarter 2012 net income of $81.8 million, or $1.67 per
diluted share, which included $30.4 million of pension expense. In the
fourth quarter of 2011, the company reported net income of $94.3 million,
or $1.94 per diluted share, which included $6.7 million of pension
expense and a $7.6 million debt reduction charge. Excluding pension
expense and debt reduction charges, non-GAAP diluted earnings per share
in the fourth quarter of 2012 was $2.27 compared with $2.22 in the fourth
quarter of 2011. Fourth-quarter 2012 revenue declined 1 percent to $979
million from $985 million in the fourth quarter of 2011. Fourth-quarter
2012 revenue was flat year-over-year on a constant currency basis.
For the full year of 2012, Unisys reported net income of $129.4 million,
or $2.84 per diluted share, which included $105.4 million of pension
expense and $30.6 million of debt reduction charges. For the full year of
2011, the company reported net income of $120.5 million, or $2.71 per
diluted share, which included $28.0 million of pension expense, $85.2
million of debt reduction charges and an $8.9 million charge related to
the settlement of a Brazilian non-income tax matter. Excluding these
items, non-GAAP earnings per share for the full year of 2012 was $5.50
compared with $5.18 for the full year of 2011. Full-year 2012 revenue
declined 4 percent to $3.71 billion from full-year 2011 revenue of $3.85
billion. On a constant currency basis, full-year 2012 revenue declined 1
percent compared with the full year of 2011.
"We had a good finish to the year driven by a strong performance in our
technology business," said Unisys Chairman and CEO Ed Coleman. "Sales of
our ClearPath software and servers grew in the quarter and for the year,
exceeding our goal, as customers responded positively to continued
innovations in our flagship technology platform. In our services
business, we were pleased to see our revenue and margins improve in the
quarter from a challenging third quarter, although we still have more
work to do to meet our services growth and margin targets.
"These results capped off another year of progress for Unisys," Coleman
said. "In an uncertain business environment, we increased our
profitability and generated significant free cash flow. From a balance
sheet perspective, we achieved a major milestone for the company by
eliminating the rest of our high-interest debt and completing our multi-
year program to reduce debt by $1 billion. We also continued to enhance
our solution portfolio to strengthen our competitive profile. We remain
focused on driving profitable growth in the year ahead."
FOURTH-QUARTER COMPANY AND BUSINESS SEGMENT HIGHLIGHTS
International revenue grew 6 percent in the fourth quarter, largely
offsetting a 10 percent decline in U.S. revenue. On a constant currency
basis, international revenue grew 7 percent as increases in Europe and
Latin America offset declines in Asia Pacific.
The company reported an overall fourth-quarter 2012 gross profit margin
of 29.2 percent, up from 28.4 percent in the year-ago quarter. Operating
expenses (SG&A and R&D expenses) increased 8 percent from the year-ago
period, reflecting higher pension expense and investments in growth
programs. Fourth-quarter 2012 operating profit declined to 11.7 percent
of revenue from 12.3 percent of revenue in the fourth quarter of 2011.
The company reported fourth-quarter 2012 operating profit of $114.6
million, which included $31.5 million of pension expense, compared with a
fourth-quarter 2011 operating profit of $121.6 million, which included
$8.1 million of pension expense.
Fourth-quarter 2012 services revenue declined 4 percent (3 percent on a
constant currency basis) from the prior-year quarter. Fourth-quarter 2012
services gross profit margin improved slightly to 20.2 percent from 20.0
percent a year ago while services operating profit margin declined to 6.6
percent from 7.6 percent a year ago.
Fourth-quarter 2012 services order signings declined from year-ago
levels. Services backlog at December 31, 2012 was $5.1 billion, an 8
percent decrease from services backlog at December 31, 2011.
Fourth-quarter 2012 technology revenue grew 16 percent from the prior-
year quarter driven by strong sales of ClearPath software and servers.
Reflecting the higher ClearPath sales, fourth-quarter 2012 technology
gross profit margin improved to 68.1 percent from 65.9 percent in the
year-ago quarter and technology operating profit margin improved to 43.9
percent from 37.7 percent in the year-ago quarter.
CASH FLOW AND BALANCE SHEET HIGHLIGHTS
Unisys generated $154 million of cash from operations in the fourth
quarter of 2012, including $26 million of pension contributions. In the
fourth quarter of 2011, the company generated $159 million of cash from
operations, which included $19 million of pension contributions. Capital
expenditures in the fourth quarter of 2012 were $36 million compared with
$33 million in the year-ago quarter. The company generated $118 million
of free cash flow in the fourth quarter of 2012 compared with free cash
flow of $126 million in the fourth quarter of 2011. Free cash flow before
pension contributions was $144 million in the fourth quarter of 2012
compared with $145 million in the year-ago quarter.
Unisys made $202 million in pension contributions in 2012 compared with
$83 million of pension contributions in 2011. For the full year of 2012,
the company generated free cash flow of $330 million before pension
contributions compared with $266 million of free cash flow before pension
contributions in 2011.
During 2012 Unisys eliminated all remaining high-interest debt and met,
more than a year early, its goal of reducing debt by 75 percent from
September 2010 levels. Since 2008 the company has reduced its debt by $1
billion.
At December 31, 2012, the company reported a cash balance of $656 million
and total debt of $210 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
diluted earnings per share, free cash flow, and constant currency.
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) 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.
(2) Non-GAAP diluted earnings per share - As a result of debt reduction
actions, Unisys recorded a charge of $7.6 million during the fourth
quarter of 2011. The company also recorded pension expense of $30.4
million and $6.7 million during the fourth quarters of 2012 and 2011,
respectively. For the full years of 2012 and 2011, Unisys recorded debt
reduction charges of $30.6 million and $85.2 million, respectively, and
pension expense of $105.4 million and $28.0 million, respectively. In
addition, for full year 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 diluted earnings per share
calculations.
(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 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 23,000 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; and the company's consideration of all available
information following the end of the year and before the filing of the
Form 10-K 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.: 0129/9151
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 Year
Ended December 31 Ended December 31
------------------ ------------------
2012 2011 2012 2011
-------- -------- -------- --------
Revenue
Services $805.7 $835.3 $3,192.4 $3,354.6
Technology 173.6 150.0 514.0 499.2
-------- -------- -------- --------
979.3 985.3 3,706.4 3,853.8
Costs and expenses
Cost of revenue:
Services 640.7 662.2 2,567.7 2,672.8
Technology 52.7 42.8 165.2 194.0
-------- -------- -------- --------
693.4 705.0 2,732.9 2,866.8
Selling, general and
administrative 150.8 139.8 572.8 586.3
Research and development 20.5 18.9 81.5 76.1
-------- -------- -------- --------
864.7 863.7 3,387.2 3,529.2
-------- -------- -------- --------
Operating profit 114.6 121.6 319.2 324.6
Interest expense 2.5 11.4 27.5 63.1
Other income (expense), net (2.7) 1.1 (37.6) (55.5)
-------- -------- -------- --------
Income before income taxes 109.4 111.3 254.1 206.0
Provision for income taxes 20.5 12.4 97.3 64.8
-------- -------- -------- --------
Consolidated net income 88.9 98.9 156.8 141.2
Net income attributable to
noncontrolling interests 3.0 0.6 11.2 7.2
-------- -------- -------- --------
Net income attributable
to Unisys Corporation 85.9 98.3 145.6 134.0
Preferred stock dividend 4.1 4.0 16.2 13.5
-------- -------- -------- --------
Net income attributable
to Unisys Corporation
common shareholders $81.8 $94.3 $129.4 $120.5
======== ======== ======== ========
Earnings per common share attributable
to Unisys Corporation
Basic $ 1.86 $ 2.17 $ 2.95 $ 2.79
======== ======== ======== ========
Diluted $ 1.67 $ 1.94 $ 2.84 $ 2.71
======== ======== ======== ========
Shares used in the per share
computations (thousands):
Basic 43,976 43,392 43,864 43,145
Diluted 51,307 50,799 51,216 49,478
UNISYS CORPORATION
SEGMENT RESULTS
(Unaudited)
(Millions)
Elimi-
Total nations Services Technology
-------- -------- -------- ----------
Three Months Ended
December 31, 2012
------------------
Customer revenue $979.3 $805.7 $173.6
Intersegment ($37.3) 1.8 35.5
-------- -------- -------- --------
Total revenue $979.3 ($37.3) $807.5 $209.1
======== ======== ======== ========
Gross profit percent 29.2% 20.2% 68.1%
======== ======== ========
Operating profit
percent 11.7% 6.6% 43.9%
======== ======== ========
Three Months Ended
December 31, 2011
------------------
Customer revenue $985.3 $835.3 $150.0
Intersegment ($32.4) 3.6 28.8
-------- -------- -------- --------
Total revenue $985.3 ($32.4) $838.9 $178.8
======== ======== ======== ========
Gross profit percent 28.4% 20.0% 65.9%
======== ======== ========
Operating profit
percent 12.3% 7.6% 37.7%
======== ======== ========
Year Ended
December 31, 2012
------------------
Customer revenue $3,706.4 $3,192.4 $514.0
Intersegment ($123.1) 3.8 119.3
-------- -------- -------- --------
Total revenue $3,706.4 ($123.1) $3,196.2 $633.3
======== ======== ======== ========
Gross profit percent 26.3% 20.0% 63.9%
======== ======== ========
Operating profit
percent 8.6% 6.4% 33.1%
======== ======== ========
Year Ended
December 31, 2011
------------------
Customer revenue $3,853.8 $3,354.6 $499.2
Intersegment ($102.6) 6.3 96.3
-------- -------- -------- --------
Total revenue $3,853.8 ($102.6) $3,360.9 $595.5
======== ======== ======== ========
Gross profit percent 25.6% 20.0% 56.9%
======== ======== ========
Operating profit
percent 8.4% 6.9% 21.5%
======== ======== ========
UNISYS CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Millions)
December 31, December 31,
2012 2011
---------- ----------
Assets
Current assets
Cash and cash equivalents $655.6 $714.9
Accounts and notes receivable, net 670.2 673.0
Inventories
Parts and finished equipment 29.3 38.1
Work in process and materials 20.7 26.7
Deferred income taxes 21.6 27.1
Prepaid expense and other
current assets 115.0 123.6
---------- ----------
Total 1,512.4 1,603.4
---------- ----------
Properties 1,262.2 1,257.2
Less accumulated depreciation
and amortization 1,085.8 1,065.9
---------- ----------
Properties, net 176.4 191.3
---------- ----------
Outsourcing assets, net 126.3 137.9
Marketable software, net 124.2 129.8
Prepaid postretirement assets 3.3 43.9
Deferred income taxes 162.7 181.5
Goodwill 192.3 192.5
Other long-term assets 122.8 131.9
---------- ----------
Total $2,420.4 $2,612.2
========== ==========
Liabilities and deficit
Current liabilities
Current maturities of long-term debt $0.3 $0.9
Accounts payable 228.6 241.6
Deferred revenue 389.5 448.1
Other accrued liabilities 411.9 425.5
---------- ----------
Total 1,030.3 1,116.1
---------- ----------
Long-term debt 210.0 358.8
Long-term postretirement liabilities 2,553.5 2,224.0
Long-term deferred revenue 123.1 120.3
Other long-term liabilities 92.2 104.0
Commitments and contingencies
Total deficit (1,588.7) (1,311.0)
---------- ----------
Total $2,420.4 $2,612.2
========== ==========
UNISYS CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
(Millions)
Year Ended
December 31
------------------
2012 2011
------- -------
Cash flows from operating activities
Consolidated net income $156.8 $141.2
Add (deduct) items to reconcile consolidated net
income to net cash provided by operating activities:
Loss on debt extinguishment 30.6 85.2
Employee stock compensation 14.3 13.9
Company stock issued for U.S. 401(k) plan 6.2 11.8
Depreciation and amortization of properties 54.7 66.4
Depreciation and amortization of
outsourcing assets 57.9 62.7
Amortization of marketable software 62.0 65.7
Disposals of capital assets 6.3 1.4
Gain on sale of businesses and assets (11.7) (2.2)
Decrease in deferred income taxes, net 36.5 28.6
(Increase) decrease in receivables, net (11.2) 92.1
Decrease in inventories 14.2 22.1
Decrease in accounts payable
and other accrued liabilities (73.7) (214.4)
Decrease in other liabilities (200.7) (50.6)
Decrease (increase) in other assets 121.8 (5.9)
Other (2.7) (.8)
------- -------
Net cash provided by operating activities 261.3 317.2
------- -------
Cash flows from investing activities
Proceeds from investments 4,108.5 691.2
Purchases of investments (4,107.2) (688.2)
Restricted deposits (.6) 50.7
Investment in marketable software (56.4) (51.7)
Capital additions of properties (40.1) (42.2)
Capital additions of outsourcing assets (36.1) (40.5)
Net proceeds from sale of
businesses and assets 5.2 (15.6)
------- -------
Net cash used for investing activities (126.7) (96.3)
------- -------
Cash flows from financing activities
Proceeds from issuance of preferred stock,
net of issuance costs - 249.7
Payments of long-term debt (388.9) (555.7)
Dividends paid to noncontrolling interests (4.5) (.4)
Dividends paid on preferred shares (16.2) (12.2)
Proceeds from exercise of stock options .4 1.4
Proceeds from issuance of long-term debt 204.8 -
Financing fees - (2.2)
------- -------
Net cash used for financing activities (204.4) (319.4)
------- -------
Effect of exchange rate changes on cash
and cash equivalents 10.5 (14.9)
------- -------
Decrease in cash and cash equivalents (59.3) (113.4)
Cash and cash equivalents, beginning of
period 714.9 828.3
------- -------
Cash and cash equivalents, end of period $655.6 $714.9
======= =======
(1)
UNISYS CORPORATION
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(Unaudited)
(Millions, except per share data)
Three Months Year
Ended December 31 Ended December 31
----------------- -----------------
2012 2011 2012 2011
-------- -------- -------- --------
GAAP net income
attributable to Unisys Corporation
common shareholders $81.8 $94.3 $129.4 $120.5
Debt reduction charges,
net of tax 0.0 7.6 30.6 85.2
Brazil non-income tax case,
net of tax 8.9
FAS87 pension charges,
net of tax 30.4 6.7 105.4 28.0
-------- -------- -------- --------
Non-GAAP net income
attributable to Unisys Corporation
common shareholders 112.2 108.6 265.4 242.6
Add preferred stock
dividend 4.1 4.0 16.2 13.5
-------- -------- -------- --------
Non-GAAP net income
attributable to Unisys
Corporation for diluted
earnings per share $116.3 $112.6 $281.6 $256.1
======== ======== ======== ========
Weighted average
shares (thousands) 43,976 43,392 43,864 43,145
Plus incremental shares from assumed conversion:
Employee stock plans 419 494 439 553
Preferred stock 6,913 6,913 6,913 5,780
-------- -------- -------- --------
GAAP adjusted weighted
average shares 51,307 50,799 51,216 49,478
======== ======== ======== ========
Diluted earnings per share
GAAP basis
GAAP net income
attributable to Unisys
Corporation for diluted
earnings per share $85.9 $98.3 $145.6 $134.0
Divided by adjusted weighted
average shares 51,307 50,799 51,216 49,478
GAAP net income
per diluted share $ 1.67 $ 1.94 $ 2.84 $ 2.71
======== ======== ======== ========
Non-GAAP basis
Non-GAAP net income
attributable to Unisys
Corporation for diluted
earnings per share $116.3 $112.6 $281.6 $256.1
Divided by Non-GAAP adjusted
weighted average shares 51,307 50,799 51,216 49,478
Non-GAAP net income
per diluted share $ 2.27 $ 2.22 $ 5.50 $ 5.18
======== ======== ======== ========
(2)
UNISYS CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP
(Unaudited)
(Millions)
FREE CASH FLOW
--------------
Three Months Year
Ended December 31 Ended December 31
----------------- -----------------
2012 2011 2012 2011
-------- -------- -------- --------
Cash provided
by operations $153.9 $159.5 $261.3 $317.2
Additions to marketable
software (13.5) (14.8) (56.4) (51.7)
Additions to properties (14.1) (9.3) (40.1) (42.2)
Additions to outsourcing
assets (8.3) (9.2) (36.1) (40.5)
-------- -------- -------- --------
Free Cash Flow 118.0 126.2 128.7 182.8
Pension funding 26.4 19.1 201.5 82.7
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Free cash flow before
pension funding $144.4 $145.3 $330.2 $265.5
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