uis-20230331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission file number 1-8729

UNISYS CORPORATION

(Exact name of registrant as specified in its charter)


Delaware						38-0387840
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

801 Lakeview Drive, Suite 100

Blue Bell, Pennsylvania 19422

(215) 986-4011

(Address, zip code and telephone number, including area code, of principal executive offices)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $.01	UIS	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Number of shares of Unisys Common Stock, par value $.01, outstanding as of March 31, 2023: 68,263,942

UNISYS CORPORATION

TABLE OF CONTENTS


PART I - FINANCIAL INFORMATION		Page Number
Item 1.	Consolidated Financial Statements (Unaudited)
	Consolidated Statements of Income (Loss)	2
	Consolidated Statements of Comprehensive Income (Loss)	3
	Consolidated Balance Sheets	4
	Consolidated Statements of Cash Flows	5
	Consolidated Statements of Equity (Deficit)	6
	Notes to Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	25
Item 4.	Controls and Procedures	25
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	27
Item 1A.	Risk Factors	27
Item 6.	Exhibits	28

Exhibit Index		29
Signatures		30

Part I - FINANCIAL INFORMATION

Item 1. Financial Statements

UNISYS CORPORATION

CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited)

(Millions, except per share data)


	Three Months Ended March 31,
		2023		2022
Revenue
Services		$	403.9	$	392.1
Technology		112.5		54.6
		516.4		446.7
Costs and expenses
Cost of revenue
Services		316.1		321.3
Technology		41.3		38.0
		357.4		359.3
Selling, general and administrative		102.9		104.4
Research and development		6.2		6.5
		466.5		470.2
Operating income (loss)		49.9		(23.5)
Interest expense		7.6		8.4
Other (expense), net		(196.9)		(21.0)
Loss before income taxes		(154.6)		(52.9)
Provision for income taxes		19.9		4.1
Consolidated net loss		(174.5)		(57.0)
Net income attributable to noncontrolling interests		0.9		0.3
Net loss attributable to Unisys Corporation		$	(175.4)	$	(57.3)


Loss per share attributable to Unisys Corporation



Basic		$	(2.58)	$	(0.85)



Diluted		$	(2.58)	$	(0.85)

See notes to consolidated financial statements

UNISYS CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited)

(Millions)


	Three Months Ended March 31,
		2023		2022


Consolidated net loss		$	(174.5)	$	(57.0)
Other comprehensive income
Foreign currency translation		24.4		(17.7)
Postretirement adjustments, net of tax of $(3.0) in 2023 and $6.7 in 2022		178.3		57.3
Total other comprehensive income		202.7		39.6
Comprehensive income (loss)		28.2		(17.4)
Less comprehensive income (loss) attributable to noncontrolling interests		0.8		(0.9)
Comprehensive income (loss) attributable to Unisys Corporation		$	27.4	$	(16.5)

See notes to consolidated financial statements

UNISYS CORPORATION

CONSOLIDATED BALANCE SHEETS (Unaudited)

(Millions)


	March 31, 2023		December 31, 2022
Assets
Current assets:
Cash and cash equivalents	$	391.9	$	391.8
Accounts receivable, net	443.8		402.5
Contract assets	17.2		28.9
Inventories	15.9		14.9
Prepaid expenses and other current assets	108.9		92.3
Total current assets	977.7		930.4
Properties	397.9		410.8
Less-accumulated depreciation and amortization	324.6		334.9
Properties, net	73.3		75.9
Outsourcing assets, net	58.7		66.4
Marketable software, net	164.9		165.1
Operating lease right-of-use assets	39.0		42.5
Prepaid postretirement assets	115.5		119.5
Deferred income taxes	113.5		118.6
Goodwill	287.2		287.1
Intangible assets, net	49.9		52.4
Restricted cash	8.6		10.9
Assets held-for-sale	6.4		6.4
Other long-term assets	171.7		190.4
Total assets	$	2,066.4	$	2,065.6
Total liabilities and equity
Current liabilities:
Current maturities of long-term debt	$	16.0	$	17.4
Accounts payable	151.1		160.8
Deferred revenue	231.6		200.7
Other accrued liabilities	254.1		271.6

Total current liabilities	652.8		650.5
Long-term debt	490.1		495.7
Long-term postretirement liabilities	697.3		714.6
Long-term deferred revenue	115.3		122.3
Long-term operating lease liabilities	25.6		29.7
Other long-term liabilities	31.3		31.0
Commitments and contingencies (see Note 13)
Equity:
Common stock, shares issued: 2023; 73.9, 2022; 73.3	0.7		0.7
Accumulated deficit	(1,690.4)		(1,515.0)
Treasury stock, shares at cost: 2023; 5.6, 2022; 5.5	(156.3)		(156.0)
Paid-in capital	4,735.9		4,731.6
Accumulated other comprehensive loss	(2,873.2)		(3,076.0)
Total Unisys Corporation stockholders' equity (deficit)	16.7		(14.7)
Noncontrolling interests	37.3		36.5
Total equity	54.0		21.8
Total liabilities and equity	$	2,066.4	$	2,065.6

See notes to consolidated financial statements

UNISYS CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(Millions)


	Three Months Ended March 31,
	2023		2022
Cash flows from operating activities
Consolidated net loss	$	(174.5)	$	(57.0)

Adjustments to reconcile consolidated net loss to net cash provided by (used for) operating activities:


Foreign currency gains	(3.7)		(2.2)
Non-cash interest expense	0.3		0.4
Employee stock compensation	4.7		6.6
Depreciation and amortization of properties	9.2		10.4
Depreciation and amortization of outsourcing assets	12.2		18.3
Amortization of marketable software	12.0		15.8
Amortization of intangible assets	2.5		2.4
Other non-cash operating activities	0.2		0.4
Loss on disposal of capital assets	—		0.5
Postretirement contributions	(16.4)		(16.2)
Postretirement expense	193.2		10.2
Deferred income taxes, net	6.3		(3.7)
Changes in operating assets and liabilities, excluding the effect of acquisitions:
Receivables, net and contract assets	(1.1)

SEC Form 10-Q filed by Unisys Corporation New