Unisys Corporation New · NYSE:UIS
Unisys Corporation New — Q1 2023 Earnings Presentation
19 slides from Unisys Corporation New's earnings presentation, May 3, 2023
Slide 1: First Quarter 2023 Financial Results
First Quarter Peter Altabef Chair and CEO 2023 Financial Results Deb McCann CFO MAY 02, 2023
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements Any statements contained in this presentation 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 or expectat
Slide 3: Reiterating Financial Guidance
(3%) - (7%)* Constant Currency Revenue YoY *Revenue guidance assumes ~$350M of License and Support (“L&S”) revenue; Excluding L&S, revenue expected to grow (1%) to 4% YoY Reiterating Financial 2% - 4% Guidance Non-GAAP Operating Margin Full-Year 2023 9.5% - 11.5% Adjusted EBITDA Margin
Slide 4: Performance Highlights 1Q 2023
Performance Highlights 1Q 2023 Revenue Profitability Revenue +15.6% YoY, +18.9% in constant currency (CC) Adj. EBITDA of $98.2M; adj. EBITDA margin of 19.0% 4.6% YoY CC revenue growth, excluding L&S Non-GAAP operating profit of $60.1M; Non-GAAP operating margin of 11.6% vs. (3.2%) in the prior year
Slide 5: 1Q Financial Results
1Q Financial Results REVENUE OPERATING PROFIT & EARNINGS PER SHARE, ADJ. EBITDA & MARGIN ($M) MARGIN (Non-GAAP)1 DILUTED (Non-GAAP)1 (Non-GAAP)1 +15.6% YoY 11.6% $516 $447 19.0% $60 7.7% $98 (3.2%) $0.51 $34 ($14) ($0.41) 2022 2023 2022 2023 2022 2023 2022 2023 +18.9% YoY in constant currency Improv
Slide 6: 1Q Segment Results
1Q Segment Results DWS CA&I ECS Up 7.7% in CC, or up 5.0% as Down 1.4% in CC, or 2.4% as Up 60.1% in CC, or 56.1% as reported reported reported Revenue ($M) $188 $125 $131 $129 $126 $121 2022 2023 2022 2023 2022 2023 (90 bps) contraction 760 bps expansion 1460 bps expansion Gross Profit Margin (%) 6
Slide 7: 1Q Revenue Profile 1Q23
10% 1Q Revenue 15% 25% Profile 12% 40% 1Q23 1Q23 BY SEGMENT BY GEOGRAPHY 36% Highly diverse revenue 24% 38% streams with large base DWS CA&I ECS All Other US & Canada EMEA Asia Pacific Latin America of recurring revenue; elevated financial 19% services sector and 26% 34% EMEA revenue due to 1Q23 1Q2
Slide 8: 1Q23 EBITDA and Cash Flow
1Q23 EBITDA and Cash Flow $M 1Q23 1Q22 EBITDA 1 ($ 117.8) $ 0.0 ADJUSTED EBITDA 1 $ 98.2 $ 34.2 ADJUSTED EBITDA MARGIN 1 19.0% 7.7% OPERATING CASH FLOW $ 12.8 ($ 33.0) CAPITAL EXPENDITURES ($ 20.3) ($ 18.7) FREE CASH FLOW 1 ($ 7.5) ($ 51.7) ADJUSTED FREE CASH FLOW 1 $ 20.1 ($ 27.0)
Slide 9: Leverage Detail
Leverage Detail $M MARCH 31, 2023 SENIOR SECURED NOTES 1 $ 485.0 FINANCE LEASES AND OTHER DEBT 26.6 TOTAL DEBT $ 511.6 GLOBAL NET PENSION DEFICIT (AS OF DEC 31, 2022) 543.1 TOTAL DEBT INCLUDING PENSION DEFICIT $ 1,054.7 CASH $ 391.9 NET LEVERAGE $ 119.7 NET LEVERAGE INCLUDING PENSION DEFICIT $ 662.8
Slide 10: Unisys Segment and Solutions Map
Unisys Segment and Solutions Map SEGMENT / REPORTING DESCRIPTION NEXT-GEN SOLUTIONS TRADITIONAL SOLUTIONS Modern Workplace: hybrid virtual desktop; Digital Workplace We deploy, integrate, and manage enterprise Traditional Workplace: field services, device-as-a-service; next-gen service desk; Solutio
Slide 11: Appendix
Appendix UW unisys
Slide 12: Excluding License and Support (Ex-L&S)
Excluding License and Support (Ex-L&S) $M 1Q23 1Q22 GAAP REVENUE $ 516.4 $ 446.7 L&S REVENUE 136.9 73.4 EX-L&S REVENUE (NON-GAAP) $ 379.5 $ 373.3 GAAP GROSS PROFIT $ 159.0 $87.4 L&S GROSS PROFIT 106.5 47.4 EX-L&S GROSS PROFIT (NON-GAAP) $ 52.5 $ 40.0 GAAP GROSS MARGIN 30.8% 19.6% AS A % OF REVENUE E
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation $M 1Q23 1Q22 NET INCOME (LOSS) ATTRIBUTABLE TO UNISYS ($ 175.4) ($ 57.3) NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS 0.9 0.3 INTEREST EXPENSE, NET OF INTEREST INCOME OF $6.7 AND $2.4 RESPEC TIVELY 1 0.9 6.0 PROVISION FOR INCOME TAX 19.9 4.1 DEPRECIATION 21.4 28
Slide 14: Non-GAAP Operating Profit
Non-GAAP Operating Profit $M 1Q23 1Q22 GAAP OPERATING INCOME (LOSS) $ 49.9 ($ 23.5) COST REDUCTION AND OTHER EXPENSES 1 9.9 8.9 POSTRETIREMENT EXPENSE 2 0.3 0.5 NON-GAAP OPERATING PROFIT (LOSS) $ 60.1 ($ 14.1) REVENUE $ 516.4 $ 446.7 GAAP OPERATING PROFIT (LOSS) PERCENT 9.7% (5.3%) NON-GAAP OPERATIN
Slide 15: Adjusted Free Cash Flow
Adjusted Free Cash Flow $M 1Q23 1Q22 CASH PROVIDED BY (USED FOR) OPERATIONS $ 12.8 ($ 33.0) ADDITIONS TO MARKETABLE SOFTWARE (10.3) (11.1) ADDITIONS TO PROPERTIES (7.3) (5.2) ADDITIONS TO OUTSOURCING ASSETS (2.7) (2.4) FREE CASH FLOW ($ 7.5) ($ 51.7) POSTRETIREMENT FUNDING 16.4 16.2 COST REDUCTION A
Slide 16: Non-GAAP Diluted Earnings Per Share
Non-GAAP Diluted Earnings Per Share $M EXCEPT SHARE AND PER SHARE DATA 1Q23 1Q22 GAAP NET INCOME (LOSS) ATTRIBUTABLE TO UNISYS CORPORATION $ (175.4) ($ 57.3) POST-RETIREMENT EXPENSE: PRETAX 193.2 10.2 TAX (0.2) 0.2 NET OF TAX $ 193.4 $ 10.0 COST REDUCTION AND OTHER EXPENSE: PRETAX 16.7 20.1 TAX -- 0
Slide 17: Non-GAAP Net Income Margin
Non-GAAP Net Income Margin $M 1Q23 1Q22 REVENUE $ 516.4 $ 446.7 NET INCOME (LOSS) ATTRIBUTABLE TO UNISYS ($ 175.4) ($ 57.3) NON-GAAP NET INCOME (LOSS) ATTRIBUTABLE TO UNISYS $ 34.7 ($ 27.3) NET INCOME (LOSS) (34.0%) (12.8%) AS A % OF REVENUE NON-GAAP NET INCOME (LOSS) ATTRIBUTABLE TO UNISYS 6.7% (6.
Slide 18: Definitions of Non-GAAP Financial Metrics
Definitions of Non-GAAP Financial Metrics Non-GAAP Information Certain financial information included in this presentation is presented under both a U.S. generally accepted accounting basis (GAAP) and a non-GAAP basis. Non-GAAP financial measures exclude certain items such as post-retirement expense
Slide 19: Definitions of Other Metrics and Terms
Definitions of Other Metrics and Terms 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 U.S. dollar against major international currencies. The co
Unisys Corporation New — Q1 2023 Earnings Presentation on 6ix