3. UNISYS CORPORATION
CONSOLIDATED BALANCE SHEETS
(Millions)
December 31, December 31,
2004 2003
---------- ----------
Assets
Current assets
Cash and cash equivalents $660.5 $635.9
Accounts and notes receivable, net 1,136.8 1,027.8
Inventories
Parts and finished equipment 93.7 121.7
Work in process and materials 122.4 116.9
Deferred income taxes 291.8 270.0
Prepaid expense and other
current assets 112.4 85.7
---------- ----------
Total 2,417.6 2,258.0
---------- ----------
Properties 1,305.5 1,352.7
Less accumulated depreciation
and amortization 881.4 928.5
---------- ----------
Properties, net 424.1 424.2
---------- ----------
Outsourcing assets, net 431.9 477.5
Marketable software, net 336.8 332.2
Investments at equity 197.1 153.3
Prepaid pension cost 52.5 55.5
Deferred income taxes 1,394.6 1,384.6
Goodwill 189.9 177.5
Other long-term assets 176.4 206.8
---------- ----------
Total $5,620.9 $5,469.6
========== ==========
Liabilities and stockholders' equity
Current liabilities
Notes payable $1.0 $17.7
Current maturities of long-term debt 151.7 2.2
Accounts payable 487.4 513.8
Other accrued liabilities 1,316.1 1,305.7
Income taxes payable 66.6 214.1
---------- ----------
Total 2,022.8 2,053.5
---------- ----------
Long-term debt 898.4 1,048.3
Accrued pension liabilities 537.9 433.6
Other long-term liabilities 655.3 539.0
Stockholders' equity
Common stock 3.4 3.3
Accumulated deficit (376.2) (414.8)
Other capital 3,883.8 3,818.6
Accumulated other comprehensive loss (2,004.5) (2,011.9)
---------- ----------
Stockholders' equity 1,506.5 1,395.2
---------- ----------
Total $5,620.9 $5,469.6
========== ==========
4. UNISYS CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(Millions)
Year Ended
December 31
------------------
2004 2003
------- -------
Cash flows from operating activities
Net income $38.6 $258.7
Add (deduct) items to reconcile
net income to net cash provided
by operating activities:
Equity (income) (16.1) (18.2)
Depreciation of properties 136.5 144.4
Depreciation and amortization of
outsourcing assets 123.3 82.3
Amortization of marketable software 134.2 123.6
Impairment charge 125.6
(Increase) decrease in deferred income
taxes, net (41.2) 57.2
Increase in receivables, net (61.8) (67.7)
Decrease in inventories 23.0 54.1
(Decrease) increase in accounts payable
and other accrued liabilities (1.6) 25.6
Decrease in income taxes payable (120.5) (4.8)
Increase (decrease) in other liabilities 111.3 (70.9)
Increase in other assets (16.2) (6.0)
Other 34.7 (7.5)
------- -------
Net cash provided by operating activities 469.8 570.8
------- -------
Cash flows from investing activities
Proceeds from investments 6,026.5 5,054.0
Purchases of investments (6,054.3) (5,122.1)
Investment in marketable software (119.6) (144.1)
Capital additions of properties (137.0) (116.7)
Capital additions of outsourcing assets (177.5) (176.2)
Purchases of businesses (19.4) (5.3)
Proceeds from sales of businesses 1.7
------- -------
Net cash used for investing activities (479.6) (510.4)
------- -------
Cash flows from financing activities
Net reduction in short-term borrowings (20.0) (64.5)
Proceeds from employee stock plans 38.8 31.5
Payments of long-term debt (3.5) (4.8)
Proceeds from issuance of long-term debt 293.3
------- -------
Net cash provided by financing activities 15.3 255.5
------- -------
Effect of exchange rate changes on cash
and cash equivalents 19.1 18.2
------- -------
Increase in cash and cash equivalents 24.6 334.1
Cash and cash equivalents, beginning of
period 635.9 301.8
------- -------
Cash and cash equivalents, end of period $660.5 $635.9
======= =======
5. Reconciliation of GAAP to Non-GAAP
Financial Information
The preceding release presents information with and
without pension expense or income. Unisys believes
that this information will enhance an overall
understanding of its financial performance due to the
significant change in pension expense or income from
period to period and the non-operational nature of
pension expense or income. The presentation of
non-GAAP information is not meant to be considered in
isolation or as a substitute for results prepared in
accordance with accounting principles generally
accepted in the United States.
6. UNISYS CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP
CONSOLIDATED STATEMENTS OF INCOME
(Millions, except per share data)
Three Months Ended
December 31, 2004
----------------------------
US GAAP Less Without
as Pension Pension
Reported Expense Expense
-------- -------- --------
Revenue $1,524.0 $1,524.0
Costs and expenses
Cost of revenue 1,261.2 ($16.8) 1,244.4
Selling, general and
administrative 265.1 (4.2) 260.9
Research and development 76.2 (2.1) 74.1
-------- -------- --------
1,602.5 (23.1) 1,579.4
-------- -------- --------
Operating income (loss) (78.5) 23.1 (55.4)
Interest expense 17.6 17.6
Other income
(expense), net 6.2 6.2
-------- -------- --------
Income (loss) before
income taxes (89.9) 23.1 (66.8)
Provision (benefit) for
income taxes (55.0) 7.4 (47.6)
-------- -------- --------
Net income (loss) ($34.9) $15.7 ($19.2)
======== ======== ========
Earnings (loss) per share ($ .10) $ .05 ($ .05)
======== ======== ========
Three Months Ended
December 31, 2003
----------------------------
US GAAP Less Without
as Pension Pension
Reported Income Income
-------- -------- --------
Revenue $1,637.6 $1,637.6
Costs and expenses
Cost of revenue 1,126.9 ($5.7) 1,121.2
Selling, general and
administrative 270.1 2.1 272.2
Research and development 81.4 3.4 84.8
-------- -------- --------
1,478.4 (0.2) 1,478.2
-------- -------- --------
Operating income 159.2 0.2 159.4
Interest expense 18.3 18.3
Other income
(expense), net 19.9 19.9
-------- -------- --------
Income before income taxes 160.8 0.2 161.0
Provision for income taxes 49.3 0.3 49.6
-------- -------- --------
Net income $111.5 ($0.1) $111.4
======== ======== ========
Earnings per share $ .33 $ .00 $ .33
======== ======== ========
7. UNISYS CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP
CONSOLIDATED STATEMENTS OF INCOME
(Millions, except per share data)
Year Ended
December 31, 2004
----------------------------
US GAAP Less Without
as Pension Pension
Reported Expense Expense
-------- -------- --------
Revenue $5,820.7 $5,820.7
Costs and expenses
Cost of revenue 4,458.3 ($67.2) 4,391.1
Selling, general and
administrative 1,102.9 (18.3) 1,084.6
Research and development 294.3 (8.1) 286.2
-------- -------- --------
5,855.5 (93.6) 5,761.9
-------- -------- --------
Operating income (34.8) 93.6 58.8
Interest expense 69.0 69.0
Other income
(expense), net 27.8 27.8
-------- -------- --------
Income (loss) before
income taxes (76.0) 93.6 17.6
Provision (benefit) for
income taxes (114.6) 30.0 (84.6)
-------- -------- --------
Net income $38.6 $63.6 $102.2
======== ======== ========
Earnings per share $ .11 $ .19 $ .30
======== ======== ========
Year Ended
December 31, 2003
----------------------------
US GAAP Less Without
as Pension Pension
Reported Income Income
-------- -------- --------
Revenue $5,911.2 $5,911.2
Costs and expenses
Cost of revenue 4,196.2 ($1.3) 4,194.9
Selling, general and
administrative 1,007.2 9.7 1,016.9
Research and development 280.1 14.2 294.3
-------- -------- --------
5,483.5 22.6 5,506.1
-------- -------- --------
Operating income 427.7 (22.6) 405.1
Interest expense 69.6 69.6
Other income
(expense), net 22.4 22.4
-------- -------- --------
Income before income taxes 380.5 (22.6) 357.9
Provision for income taxes 121.8 (7.2) 114.6
-------- -------- --------
Net income $258.7 ($15.4) $243.3
======== ======== ========
Earnings per share $ .78 ($ .05) $ .73
======== ======== ========
8. UNISYS CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP
SEGMENT RESULTS OF OPERATIONS
(Millions)
Three Months Ended
December 31, 2004
---------------------------
Less Without
As Pension Pension
Reported Expense Expense
-------- -------- --------
Services Segment
Total revenue $1,257.4 $1,257.4
Gross profit 78.2 ($16.4) 94.6
% of revenue 6.2% 7.5%
Operating income (loss) (118.0) (20.1) (97.9)
% of revenue -9.4% -7.8%
Technology Segment
Total revenue 351.8 351.8
Gross profit 190.6 (0.4) 191.0
% of revenue 54.2% 54.3%
Operating income 42.0 (3.0) 45.0
% of revenue 12.0% 12.8%
Total Company
Total revenue 1,524.0 1,524.0
Gross profit 262.8 (16.8) 279.6
% of revenue 17.2% 18.3%
Operating income (loss) (78.5) (23.1) (55.4)
% of revenue -5.2% -3.6%
Three Months Ended
December 31, 2003
----------------------------
Less Without
As Pension Pension
Reported Expense Expense
-------- -------- --------
Services Segment
Total revenue $1,303.9 $1,303.9
Gross profit 288.4 ($6.4) 294.8
% of revenue 22.1% 22.6%
Operating income 93.9 (4.4) 98.3
% of revenue 7.2% 7.5%
Technology Segment
Total revenue 427.9 427.9
Gross profit 220.8 0.7 220.1
% of revenue 51.6% 51.4%
Operating income 62.3 4.2 58.1
% of revenue 14.6% 13.6%
Total Company
Total revenue 1,637.6 1,637.6
Gross profit 510.7 (5.7) 516.4
% of revenue 31.2% 31.5%
Operating income 159.2 (0.2) 159.4
% of revenue 9.7% 9.7%
9. UNISYS CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP
SEGMENT RESULTS OF OPERATIONS
(Millions)
Year Ended
December 31, 2004
----------------------------
Less Without
As Pension Pension
Reported Expense Expense
-------- -------- --------
Services Segment *
Total revenue $4,742.8 $4,742.8
Gross profit 702.2 ($65.7) 767.9
% of revenue 14.8% 16.2%
Operating income (loss) (82.8) (81.1) (1.7)
% of revenue -1.7% 0.0%
Technology Segment *
Total revenue 1,329.7 1,329.7
Gross profit 686.8 (1.5) 688.3
% of revenue 51.7% 51.8%
Operating income 136.0 (12.5) 148.5
% of revenue 10.2% 11.2%
Total Company
Total revenue 5,820.7 5,820.7
Gross profit 1,362.4 (67.2) 1,429.6
% of revenue 23.4% 24.6%
Operating income (loss) (34.8) (93.6) 58.8
% of revenue -0.6% 1.0%
Year Ended
December 31, 2003
----------------------------
Less Without
As Pension Pension
Reported Income Income
-------- -------- --------
Services Segment
Total revenue $4,717.8 $4,717.8
Gross profit 955.3 ($4.7) 960.0
% of revenue 20.2% 20.3%
Operating income 236.2 4.6 231.6
% of revenue 5.0% 4.9%
Technology Segment
Total revenue 1,513.2 1,513.2
Gross profit 763.4 3.4 760.0
% of revenue 50.4% 50.2%
Operating income 192.1 18.0 174.1
% of revenue 12.7% 11.5%
Total Company
Total revenue 5,911.2 5,911.2
Gross profit 1,715.0 (1.3) 1,716.3
% of revenue 29.0% 29.0%
Operating income 427.7 22.6 405.1
% of revenue 7.2% 6.9%
* 2004 results exclude charges for cost reductions
and related actions as announced on October 6, 2004
10. UNISYS CORPORATION
RECONCILATION OF GAAP TO NON-GAAP
FORWARD-LOOKING ESTIMATED EARNINGS (LOSS) PER SHARE
Three
Months Year
Ending Ending
3/31/2005 12/31/2005
---------- ----------
Earnings (loss) per share-
on a GAAP basis (.12)-(.09) .13-.23
Add back estimated pension expense,
net of tax .09 .37
--------- ---------
Earnings (loss) per share-
on a NON-GAAP basis
(excluding pension expense) (.03)-0 .50-.60
========= =========
NOTE: See section in press release entitled
quot;Forward-Looking Statementsquot;.
