Unisys Corp. (UIS, Financial) filed Quarterly Report for the period ended 2011-09-30.
Unisys Corp. has a market cap of $1.14 billion; its shares were traded at around $26.3 with a P/E ratio of 7.8 and P/S ratio of 0.3.
Other income (expense), net was an expense of $56.6 million in the first nine months of 2011, compared with expense of $44.6 million in 2010. Included in the first nine months of 2011 were charges of $77.6 million related to the debt redemptions, discussed below, and foreign exchange gains of $21.1 million. Included in the first nine months of 2010 were foreign exchange losses of $38.4 million, which included $19.9 million related to the Venezuelan devaluation.
Income from continuing operations before income taxes for the nine months ended September 30, 2011 was $94.7 million compared with income of $119.7 million in 2010. The provision for income taxes was $52.4 million in the current period compared with a provision of $52.7 million in the year-ago period. Included in the nine months ended September 30, 2011 was a benefit of $29.2 million related to the settlement of two European tax matters, as well as a provision of $7.6 million due to the impact of the UK tax rate change.
Cash used for investing activities for the nine months ended September 30, 2011 was $83.6 million compared with cash usage of $25.8 million during the nine months ended September 30, 2010. Net proceeds of investments were $2.4 million for the nine months ended September 30, 2011 compared with net proceeds of $1.0 million in the prior-year period. Proceeds from investments and purchases of investments represent derivative financial instruments used to reduce the companys currency exposure to market risks from changes in foreign currency exchange rates. During the nine months ended September 30, 2011, the net change in restricted deposits resulted in cash provided of $30.1 million compared with cash provided of $13.9 million during the nine months ended September 30, 2010. In addition, in the current period, the investment in marketable software was $36.9 million compared with $41.8 million in the year-ago period, capital additions of properties were $32.9 million in 2011 compared with $49.7 million in 2010 and capital additions of outsourcing assets were $31.3 million in 2011 compared with $70.4 million in 2010. The prior nine-month period included net cash proceeds of $121.2 million related to the sale of the companys HIM business, the sale of the companys U.S. specialized technology check sorter and related U.S. maintenance business and the sale of the companys UISL business.
On March 30, 2011, the net proceeds from the sale of the mandatory convertible preferred stock were used to redeem an aggregate principal amount of $124.7 million of the companys senior secured notes due 2014 and an aggregate principal amount of $86.3 million of the companys senior secured notes due 2015 under the provisions of the indentures relating to the notes that allow the company to redeem, at its option, up to 35% of the original principal amount of each series of notes from the net cash proceeds of one or more equity offerings. As a result of these redemptions, the company recognized a charge of $31.8 million in Other income (expense), net in the three months ended March 31, 2011, which was comprised of $28.2 million of premium paid and $3.6 million for the write off of unamortized discounts, issuance costs and gains related to the portion of the notes redeemed.
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Unisys Corp. has a market cap of $1.14 billion; its shares were traded at around $26.3 with a P/E ratio of 7.8 and P/S ratio of 0.3.
Highlight of Business Operations:
For the first nine months of 2011, Unisys reported net income from continuing operations attributable to common shareholders of $26.2 million, or $.60 per diluted share, compared with $63.7 million, or $1.47 per diluted share, in the year-ago nine month period. The companys results for the nine months ended September 30, 2011 were impacted by a pretax debt-reduction charge of $77.6 million and a $28.5 million increase in pretax pension expense.Other income (expense), net was an expense of $56.6 million in the first nine months of 2011, compared with expense of $44.6 million in 2010. Included in the first nine months of 2011 were charges of $77.6 million related to the debt redemptions, discussed below, and foreign exchange gains of $21.1 million. Included in the first nine months of 2010 were foreign exchange losses of $38.4 million, which included $19.9 million related to the Venezuelan devaluation.
Income from continuing operations before income taxes for the nine months ended September 30, 2011 was $94.7 million compared with income of $119.7 million in 2010. The provision for income taxes was $52.4 million in the current period compared with a provision of $52.7 million in the year-ago period. Included in the nine months ended September 30, 2011 was a benefit of $29.2 million related to the settlement of two European tax matters, as well as a provision of $7.6 million due to the impact of the UK tax rate change.
Cash used for investing activities for the nine months ended September 30, 2011 was $83.6 million compared with cash usage of $25.8 million during the nine months ended September 30, 2010. Net proceeds of investments were $2.4 million for the nine months ended September 30, 2011 compared with net proceeds of $1.0 million in the prior-year period. Proceeds from investments and purchases of investments represent derivative financial instruments used to reduce the companys currency exposure to market risks from changes in foreign currency exchange rates. During the nine months ended September 30, 2011, the net change in restricted deposits resulted in cash provided of $30.1 million compared with cash provided of $13.9 million during the nine months ended September 30, 2010. In addition, in the current period, the investment in marketable software was $36.9 million compared with $41.8 million in the year-ago period, capital additions of properties were $32.9 million in 2011 compared with $49.7 million in 2010 and capital additions of outsourcing assets were $31.3 million in 2011 compared with $70.4 million in 2010. The prior nine-month period included net cash proceeds of $121.2 million related to the sale of the companys HIM business, the sale of the companys U.S. specialized technology check sorter and related U.S. maintenance business and the sale of the companys UISL business.
On March 30, 2011, the net proceeds from the sale of the mandatory convertible preferred stock were used to redeem an aggregate principal amount of $124.7 million of the companys senior secured notes due 2014 and an aggregate principal amount of $86.3 million of the companys senior secured notes due 2015 under the provisions of the indentures relating to the notes that allow the company to redeem, at its option, up to 35% of the original principal amount of each series of notes from the net cash proceeds of one or more equity offerings. As a result of these redemptions, the company recognized a charge of $31.8 million in Other income (expense), net in the three months ended March 31, 2011, which was comprised of $28.2 million of premium paid and $3.6 million for the write off of unamortized discounts, issuance costs and gains related to the portion of the notes redeemed.
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