Unisys(UIS) - 2021 Q1 - Quarterly Report

Financial Performance - Revenue for the three months ended March 31, 2021, was $509.8 million, a decrease of 1.1% from $515.4 million in the same period of 2020, with foreign currency fluctuations contributing a 2 percentage-point positive impact [106]. - U.S. revenue increased by 8.8% in the current period, while international revenue decreased by 8.2%, primarily due to declines in Latin America [107]. - The company reported an operating profit of $43.6 million for the three months ended March 31, 2021, compared to $20.1 million in the prior year, reflecting efficiency gains [109]. - The net loss from continuing operations attributable to the company was $157.8 million, or a loss of $(2.45) per diluted share, compared to a loss of $53.2 million, or $(0.85) per diluted share, in the prior year [114]. - Digital Workplace Services (DWS) revenue was $141.1 million, a decline of 11.9% year-over-year, while Cloud & Infrastructure Solutions (C&I) revenue increased by 18.6% to $123.3 million [119][120]. - CPF revenue for Q1 2021 was $167.6 million, a decline of 2.4% compared to Q1 2020 [121]. Profitability and Margins - Gross profit margin improved to 27.3% in Q1 2021 from 21.9% in Q1 2020, driven by efficiency improvements and cost-reduction initiatives [108]. - Gross profit margin increased to 61.2% in Q1 2021 from 58.3% in Q1 2020 [121]. Cash Flow and Liquidity - Cash and cash equivalents decreased to $716.6 million as of March 31, 2021, down from $898.5 million at December 31, 2020 [123]. - Cash used for operations in Q1 2021 was $42.9 million, significantly lower than $377.9 million in Q1 2020 [125]. - Cash used for investing activities was $33.9 million in Q1 2021, compared to cash provided of $1,093.8 million in Q1 2020 [126]. - Total debt decreased to $541.1 million as of March 31, 2021, from $629.9 million at December 31, 2020 [132]. Pension and Settlement - The company removed approximately $930 million in gross defined benefit pension plan liabilities during the three months ended March 31, 2021, in addition to $276 million removed in Q4 2020, totaling approximately $1.2 billion when completed [94]. - The company expects to make cash contributions of approximately $50.3 million for international defined benefit pension plans in 2021, a significant decrease from $826.2 million in 2020 [100]. - The company anticipates a settlement loss of approximately $186 million related to the transfer of its Dutch subsidiary's pension plan in Q2 2021 [96]. Debt and Credit Facilities - The company has a secured revolving credit facility of up to $145.0 million, with $123.4 million available as of March 31, 2021 [135]. - The company has met all covenants and conditions under its lending agreements and expects to continue doing so for at least the next twelve months [140]. - The company maintains a shelf registration statement for the offer and sale of debt or equity securities [141].