Unisys Corporation New · NYSE:UIS
Unisys Corporation New — Unisys — Q1 2012 Earnings Presentation
24 slides from Unisys Corporation New's earnings presentation, Apr 24, 2012
Slide 1: First-Quarter 2012 Financial Results
First-Quarter 2012 Financial Results April 24, 2012 www.unisys.com/investor Ed Coleman Janet Haugen Chairman & CEO Chief Financial Officer
Slide 2: Disclaimer
Disclaimer • Statements made by Unisys during today’s presentation that are not historical facts, including those regarding future performance, are forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and assumption
Slide 3: Ed Coleman, Chairman & CEO
Ed Coleman Chairman & CEO ae —
Slide 4: 1Q12 Highlights
1Q12 Highlights Profitability • Diluted EPS of $0.30 compared to a diluted net loss of ($0.95) in 1Q11 • Non-GAAP EPS of $0.97 vs. non-GAAP loss of ($0.04) a year ago* Revenue • Year over year revenue growth of 2% – Growth in two of the last three quarters • Services revenue grew 3% – Growth in two
Slide 5: Positioning Unisys for Profitable Growth
Positioning Unisys for Profitable Growth • Clients are challenged by the impact of disruptive trends – Mobility affects device support, applications and data center – Cyber security – Exponential increases in data creation, storage and access • These trends create growth opportunities for Unisys • D
Slide 6: Janet Haugen, SVP & CFO
Janet Haugen SVP & CFO ee
Slide 7: 1Q12 Financial Results
1Q12 Financial Results $M (excluding EPS) 1Q12 1Q11 Y/Y Ch Revenue $928 $911 2% Gross Profit $226 $208 8% Gross Profit Margin 24.3% 22.8% 1.5 pts Operating Expenses (SG&A plus R&D) $161 $166 (3%) Operating Profit $64 $42 54% Operating Profit Margin 6.9% 4.6% 2.3 pts Interest Expense $9 $26 Other Inc
Slide 8: 1Q12 Segment Revenue
1Q12 Segment Revenue • Services revenue up 3% Y/Y – Services revenue up 4% in constant currency – Excluding U.S. Federal, Services revenue up 7% • Technology revenue down 5% Y/Y 1Q12 Revenue = $928M 1Q11 Revenue = $911M Technology Technology 11% 12% Services 89% Services 88% © 2012 Unisys Corporatio
Slide 9: 1Q12 Services Revenue by Portfolio
1Q12 Services Revenue by Portfolio Services Revenue $M 1Q12 Y/Y Ch 100% Services Revenue $823 3% 8% 8% BPO 6% 7% Gross Margin 18.9% 90 bp 14% 14% Core Operating Margin 5.0% 100 bp 75% ISS Revenue by Portfolio 1Q12 Y/Y Ch 35% Systems Integration $308 8% 36% 50% ITO Information Technology $285 Flat SI
Slide 10: 1Q12 Technology Revenue by Portfolio
1Q12 Technology Revenue by Portfolio Technology Revenue $M 1Q12 Y/Y Ch 100% 9% 10% Other Technology Revenue $105 (5%) Technology Gross Margin 62.2% 1110 bp 75% Enterprise Class Operating Margin 25.6% 1470 bp Software & Servers 50% Revenue by Portfolio 1Q12 Y/Y Ch 91% 90% Enterprise Class $96 (4%) 25
Slide 11: U.S. Federal Government Business
U.S. Federal Government Business $M Federal Revenue 1Q12 Business Mix $300 $250 Defense & Intelligence Homeland 23% Security $200 28% $181 $162 $157 $152 $150 Civilian $125 49% $100 $50 Revenue Y/Y 1Q12 (20%) $0 1Q11 2Q11 3Q11 4Q11 1Q12 © 2012 Unisys Corporation. All rights reserved. 11
Slide 12: 1Q12 Unisys Revenue Profile
1Q12 Unisys Revenue Profile Geography Latin U.S. Y/Y Ch America Federal Asia 12% 13% Pacific North America 5% North 14% Excluding U.S. Federal 23% America 42% Europe/ Africa Europe/Africa 6% 32% Asia Pacific (2%) Latin America (13%) U.S. Industry Federal 13% Y/Y Ch Financial 22% Public Sector (3%) P
Slide 13: 1Q12 Services Order Highlights
1Q12 Services Order Highlights • Services orders grew double-digits Y/Y – ITO orders up double digits – Orders also grew in Infrastructure Services, BPO and Core Maintenance – SI/consulting orders decreased • Services orders by geography: – Orders grew in North America, Latin America and Asia Pacifi
Slide 14: Cash Flow Comparison
Cash Flow Comparison $M 1Q12 1Q11 Cash Flow From Operations $33 $28 Capital Expenditures $30 $43 Free Cash Flow* $3 ($15) Pension Funding $68 $22 Free Cash Flow Before Pension Funding* $71 $7 Depreciation & Amortization $42 $53 Cash Balance $655 $833 *See Schedule C: GAAP to non-GAAP Reconciliation
Slide 15: Reducing Leverage
Reducing Leverage $M Long-Term Debt (LTD) AR Securitization\Revolver Cash Net Cash* $1,500 $1,250 $1,000 $750 $500 $250 $0 -$250 -$500 -$750 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 *Net Cash = Cash less LTD and utilization under AR securitization\revolver facility. See
Slide 16: Defined Benefit Plans Cash Funding Estimates
Defined Benefit Plans Cash Funding Estimates Estimates Cash Funding Requirements ($M) 2011 2012E 2013E 2014E 2015E 2016E 2017E U.S. Qualified Defined Benefit Pension Plan $0 $143 $155 $130 $110 $85 $65 Other Defined Benefit Pension Plans $83 $97 $115 $95 $80 $80 $80 Total $83 $240 $270 $225 $190 $16
Slide 17: Questions & Answers
Questions & Answers
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures In an effort to provide investors with additional information regarding the company’s results as determined by generally accepted accounting principles (GAAP), the company also discusses, in its earnings press release and/or earnings presentation materials, the following
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Earnings Per Diluted Share – As a result of debt reductions, Unisys recorded charges, net of tax, of $7.2 million and $31.8 million, respectively, during the first quarters of 2012 and 2011, respectively. The company also recorded pension expense, net of tax, of
Slide 20: EBITDA and Adjusted EBITDA
Schedule A: GAAP to Non-GAAP Reconciliation EBITDA and Adjusted EBITDA Earnings before Interest, Taxes, Depreciation and Amortization $M 1Q12 1Q11 Net Income (Loss) Attributable to Unisys $17.4 $(39.4) Interest Expense 9.3 25.9 Income Tax Provision 22.0 28.2 Depreciation & Amortization 41.8 53.2 EBI
Slide 21: Non-GAAP Earnings (Loss) per Diluted Share
Schedule B: GAAP to Non-GAAP Reconciliation Non-GAAP Earnings (Loss) per Diluted Share $M except share and per share data 1Q12 1Q11 GAAP net income (loss) attributable $13.4 ($40.8) to Unisys Corporation common shareholders Debt reduction charge, net of tax 7.2 31.8 Pension expense, net of tax 24.6
Slide 22: Free Cash Flow
Schedule C: GAAP to Non-GAAP Reconciliation Free Cash Flow $M 1Q12 1Q11 Cash Provided by Operations $33.4 $28.4 Capital Expenditures (30.4) (43.4) Free Cash Flow $3.0 ($15.0) Pension Funding 68.2 22.2 Free Cash Flow Before Pension Funding $71.2 $7.2 © 2012 Unisys Corporation. All rights reserved. 22
Slide 23: Net Cash (Debt)
Schedule D: GAAP to Non-GAAP Reconciliation Net Cash (Debt) $M 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 Long-Term Debt (Including 1,060.6 1,060.3 1,061.2 911.0 911.7 847.4 836.4 837.5 824.0 619.3 447.4 445.3 359.7 295.5 Current Maturities) AR Securitization / 141.0 120.0
Slide 24: Thank You
Thank You www.unisys.com/investor © 2012 Unisys Corporation. All rights reserved. 24