Unisys(US:UIS)2023-03-01 11:20Financial Performance - In 2022, the company recorded a net loss of $106.0 million, or $1.57 per diluted share, compared to a loss of $448.5 million, or $6.75 per diluted share in 2021[138]. - Revenue for 2022 was $1.98 billion, a decrease of 3.6% from $2.05 billion in 2021, with foreign currency fluctuations negatively impacting revenue by 3.7 percentage points[124]. - International operations revenue decreased by 6.1% to $1.13 billion in 2022, primarily due to declines in Europe and Asia/Pacific, with foreign currency fluctuations having a 6.4 percentage-point negative impact[125]. - Gross profit for 2022 was $529.6 million, with a gross profit margin of 26.7%, down from $572.0 million and 27.8% in 2021, mainly due to higher cost-reduction charges[128]. - Operating profit for 2022 was $52.2 million, down from $154.0 million in 2021, primarily due to increased marketing investments and higher non-recurring expenses[130]. Expenses and Charges - Selling, general and administrative expenses increased to $453.2 million in 2022, representing 22.9% of revenue, compared to $389.5 million, or 19.0% of revenue in 2021[129]. - The company recognized cost-reduction charges of $54.9 million in 2022, up from $23.2 million in 2021, with significant charges related to asset impairments and workforce reductions[126]. Cash Flow and Liquidity - Cash and cash equivalents at December 31, 2022, were $391.8 million, a decrease from $552.9 million at the end of 2021[151]. - Cash provided by operating activities was $12.7 million in 2022, significantly lower than $132.5 million in 2021, primarily due to changes in accounts receivable[153]. - The company expects adequate liquidity to meet cash requirements for at least the next twelve months[150]. - Cash used for investing activities in 2022 was $131.4 million, a decrease from $360.3 million in 2021, with $239.3 million of the 2021 amount attributed to acquisitions[154]. - Cash used for financing activities in 2022 was $21.6 million, significantly lower than $105.5 million in 2021, primarily due to prior year debt redemptions[155]. Debt and Financing - Total debt at the end of 2022 was $513.1 million, down from $529.4 million at the end of 2021[159]. - The company has a secured revolving credit facility of up to $145.0 million, with availability of $67.9 million net of letters of credit issued as of December 31, 2022[164]. - The company expects to continue meeting all covenants and conditions under its lending agreements for at least the next twelve months[169]. Pension Plans and Obligations - The company expects to make cash contributions of approximately $40 million in 2023 for its international defined benefit pension plans, slightly up from $39.3 million in 2022[158]. - The company anticipates a non-cash pre-tax settlement loss of approximately $200 million in Q1 2023 related to a group annuity contract for $250 million of projected benefit obligations[157]. - As of December 31, 2022, the company's operating lease liabilities were $55.7 million, with finance lease liabilities totaling $1.1 million[160]. - The calculated value of U.S. qualified defined benefit pension plan assets was $2.89 billion, with a fair value of $2.44 billion as of December 31, 2022[184]. - The company recognized consolidated pension expense of $47.1 million for the year ended December 31, 2022, down from $553.9 million in 2021, and expects to recognize approximately $41.5 million in 2023[187]. Currency and Impairment Risks - The company is exposed to foreign currency exchange rate risks and uses derivative financial instruments to mitigate these risks, with a hypothetical 10% adverse movement in exchange rates potentially reducing the fair value of derivatives by approximately $54 million[203]. - The reporting unit closest to impairment had a fair value exceeding book value, including goodwill, by 6% as of December 31, 2022[196]. - Goodwill by reporting unit totaled $287.1 million, with DWS at $140.5 million, CA&I at $38.0 million, ECS at $98.3 million, and Other at $10.3 million[198].