Pitney Bowes Inc. (NYSE:PBI), a global technology company that
provides products and solutions that power commerce, today reported
financial results for the third quarter 2015.
Quarterly Financial Results:
- Revenue of $870 million, a decline of 4
percent on a constant currency basis and 8 percent as
reported.
- Adjusted EPS of $0.43; GAAP EPS of
$0.44. EPS includes a $0.02 per share negative impact of foreign
exchange during the quarter.
- SG&A of $309 million, a decline of
$33 million versus prior year.
- Gross Margin of 58.8 percent,
improvement of 150 basis points versus prior year.
- Free cash flow of $131 million; GAAP
cash from operations of $150 million.
- Repurchased $100 million of stock or
4.9 million shares.
- Company reaffirms adjusted EPS, GAAP
EPS and free cash flow guidance; updates revenue guidance.
Strategic Updates:
- As announced in September, the Board of
Directors authorized an incremental $100 million share
repurchase.
- The Company launched its initial
implementation of the new ERP platform in Canada in early October
and remains on schedule to achieve the targeted savings and
efficiencies associated with this program.
- The Company introduced several new
products and solutions, including:
- SMB group launched the Relay™
Multi-Channel Communications Suite globally;
- Production Mail expanded its offerings
in print, insertion and sortation equipment through its new
AcceleJet™, Epic™ and TrueSort™ products;
- Software expanded its offerings with
the EngageOne® Video solution, which helps enterprises up-sell and
cross-sell through personalized videos.
- The Company made significant progress
integrating its Borderfree acquisition while also achieving initial
cost synergies.
"We made solid progress on our strategic plan in the third
quarter," said Marc B. Lautenbach, President and CEO, Pitney Bowes.
“Our North America SMB business continued to stabilize with
equipment sales growing for the quarter. We improved our
operational excellence with increased margins and very solid cash
flow performance in the quarter. Our ERP project, which promises to
unlock substantial value in our Company, got off to a very good
start in early October with a successful launch in Canada. Finally,
although our Ecommerce business continued to face currency
headwinds, the integration of Borderfree remains on track. Overall,
Digital Commerce grew 10 percent on a constant currency basis and I
remain very optimistic about the long-term prospects of this
business."
THIRD QUARTER 2015 - FINANCIAL RESULTS
Revenue was $870 million, a decline of 4 percent on a constant
currency basis and 8 percent on a reported basis when compared to
prior year.
Digital Commerce Solutions revenue grew 10 percent on a constant
currency basis and 6 percent on a reported basis. Enterprise
Business Solutions revenue declined 1 percent on a constant
currency basis and 3 percent on a reported basis. SMB Solutions
revenue declined 3 percent on a constant currency basis and 8
percent on a reported basis.
Adjusted earnings per diluted share were $0.43. Prior year
adjusted earnings per diluted share were $0.51 and included $0.08
per share of tax benefits. Excluding the tax benefits in the prior
year, adjusted earnings per diluted share this quarter would have
been flat to the prior year.
Generally Accepted Accounting Principles (GAAP) earnings per
diluted share were $0.44 and included a $0.01 per share net tax
benefit related to the Company’s previous divestiture of an
investment and other acquisition and disposition related
transactions.
Earnings per share this quarter were reduced by $0.02 per share
due to the impacts of foreign exchange. As expected, earnings per
share this quarter were also impacted by the loss of three months
of Imagitas earnings, which were estimated to be approximately
$0.03 per share, and $0.01 per share of expense for three months of
amortization of intangibles related to Borderfree.
The Company’s earnings per share results for the quarter are
summarized in the table below:
Third Quarter *
2015
2014
Adjusted EPS from continuing operations $ 0.43
$ 0.51 Net tax benefit from transactions $ 0.01 -
Investment divestiture - $ 0.05 Restructuring charges
- ($0.01 )
GAAP EPS from continuing
operations $ 0.44 $ 0.55
Discontinued operations - income -
$ 0.10
GAAP EPS $ 0.44 $
0.65
* The sum of the earnings per share may
not equal the totals above due to rounding
Free cash flow during the quarter was $131 million and cash
provided by operating activities was $150 million on a GAAP basis.
In comparison to the prior year, third quarter free cash flow was
higher primarily due to lower working capital requirements and
lower capital expenditures due to less of an investment in the
Company’s new ERP platform. During the quarter, the Company used
cash to pay $38 million in dividends to its common shareholders,
repurchase $100 million worth of its shares and make $15 million in
restructuring payments.
BUSINESS SEGMENT REPORTING
The Company revised its business segment reporting in the second
quarter 2015 for its Digital Commerce Solutions segment. The
Company’s business segment reporting reflects the clients served in
each market and the way it manages these segments for growth and
profitability. The primary reporting segment groups are the SMB
Solutions group; the Enterprise Business Solutions group; and the
Digital Commerce Solutions group.
The SMB Solutions group offers mailing equipment, financing,
services and supplies for small and medium businesses to
efficiently create mail and evidence postage. This group includes
the North America Mailing and International Mailing segments. North
America Mailing includes the operations of U.S. and Canada Mailing.
International Mailing includes all other SMB operations around the
world.
The Enterprise Business Solutions group provides mailing and
printing equipment and services for large enterprise clients to
process mail, including sortation services to qualify large mail
volumes for postal worksharing discounts. This group includes the
global Production Mail and Presort Services segments.
The Digital Commerce Solutions group provides customer
engagement, customer information and location intelligence
software; and solutions that facilitate global cross-border
ecommerce transactions and shipping solutions for businesses of all
sizes. This group includes the Software Solutions and Global
Ecommerce segments.
The Other segment is comprised of the Imagitas marketing
services business, which was sold on May 29, 2015.
SMB Solutions Group
($ millions)
Third Quarter
Revenue
2015
2014
Y/Y
Reported
Y/Y
Ex
Currency
Y/Y
Ex
Currency
and
Divested
Revenues*
North America Mailing $353 $363 (3%) (2%) (2%) International
Mailing
105 132 (21%)
(9%) (7%) SMB Solutions Total
$458 $496 (8%) (3%)
(3%) EBIT North America Mailing
$159 $160 0% International Mailing
11 16
(33%) SMB Solutions Total $170
$176 (3%)
* Excludes the impacts of currency and the divested revenues in
Europe related to the transition to a dealer sales network in six
smaller European markets completed in the third quarter of
2014.
North America Mailing
North America Mailing revenue experienced the lowest rate of
decline in 6 quarters, benefiting from 2 percent growth in
equipment sales as productivity continues to improve. Recurring
revenue stream trends also continued to be in-line with prior
quarters. EBIT margin continued to improve versus the prior year
due to the mix of business, organizational streamlining and
on-going cost reduction initiatives.
International Mailing
During the quarter, currency adversely affected revenue
comparisons by 12 percentage points. For comparative purposes,
revenue declined 7 percent when adjusted for the impacts of both
currency and the reduction in revenue resulting from the exit of
direct operations in some European countries completed in the third
quarter of 2014.
The rate of decline in revenue is stabilizing in most of the
major markets where the go-to-market resource shift has been
completed. The Company has been focused on the transition and
training of the new sales organization in France, which is expected
to result in improved productivity. EBIT margin declined versus the
prior year due to lower mail finishing equipment sales, the impact
of currency on costs and the temporary incremental costs related to
the transition of the sales organization in France.
Enterprise Business Solutions
Group
($ millions) Third
Quarter
Revenue
2015
2014
Y/Y
Reported
Y/Y
Ex Currency
Y/Y
Ex Currency
and Divested
Revenues*
Production Mail $102 $113 (10%) (5%) (4%) Presort Services
116 111 4% 4%
4% Enterprise Business Total $218
$225 (3%) (1%) 0% EBIT
Production Mail $12 $10 30% Presort Services
26
22 18% Enterprise Business Total
$38 $31 22%
* Excluding the impacts of currency and the divested revenues in
Europe related to the transition to a dealer sales network in six
smaller European markets completed in the third quarter of
2014.
Production Mail
While inserting equipment sales grew versus prior year, there
were no production print installations during the quarter, which
adversely impacted revenue. Revenue also declined partially due to
lower support services. EBIT margin improved versus the prior year
due to the mix of higher-margin inserting equipment sales as well
as on-going cost reduction initiatives.
Presort Services
Revenue benefited from higher volumes of First Class and
Standard mail processed versus the prior year. EBIT margin improved
versus the prior year due to the revenue growth and on-going
operational productivity.
Digital Commerce Solutions
Group
($ millions)
Third Quarter
Revenue 2015
2014 Y/Y
Reported
Y/Y
Ex Currency
Software Solutions $98 $112 (13%) (7%) Global Ecommerce
97 72 34% 36%
Digital Commerce Total $194 $184 6%
10% EBIT Software Solutions $15 $19 (23%)
Global Ecommerce
(1) (1)
(83%) Digital Commerce Total $13
$18 (27%)
Software Solutions
Revenue comparisons were adversely impacted by lower licensing
revenue in the Americas when compared to the prior year, which
included a large licensing deal. Excluding the impact of that deal,
Software’s results were in-line with expectations as the business
continues to acquire new enterprise clients through targeted
industry and application-specific solutions. EBIT margin declined
as a result of a lower amount of licensing revenue, which has a
higher-margin.
Global Ecommerce
Results included a full quarter of revenue from Borderfree and
the continued expansion of the eBay UK outbound cross-border
service. Outbound package shipments from the U.S. continued to be
pressured by the strong U.S. dollar. EBIT margin was impacted
primarily by amortization of intangibles and investments related to
the Borderfree acquisition, offsetting benefits from initial
integration synergies.
Other
($
millions) Third Quarter
2015 2014
Y/Y
Reported
Y/Y
Ex Currency
Revenue $0 $37 NM NM EBIT
$0 $8 NM
The Other segment is comprised of the Imagitas marketing
services business, which was sold in May 2015.
2015 GUIDANCE
This guidance discusses future results, which are inherently
subject to unforeseen risks and developments. As such, discussions
about the business outlook should be read in the context of an
uncertain future, as well as the risk factors identified in the
safe harbor language at the end of this release and as more fully
outlined in the Company's 2014 Form 10-K Annual Report and other
reports filed with the Securities and Exchange Commission.
The Company expects improving trends in the business to continue
into the fourth quarter as a result of actions taken to achieve its
long-term strategic initiatives. The Company is reaffirming its
annual adjusted EPS, GAAP EPS and free cash flow guidance. The
Company is updating its annual revenue guidance based on
year-to-date results and the outlook for the remainder of the
year.
The Company now expects:
- Annual revenue to be in the range of
flat to a decline of 2 percent when compared to 2014 on a constant
currency basis.
The Company still expects:
- Adjusted EPS to be in the range of
$1.75 to $1.90;
- GAAP EPS to be in the range of $2.06 to
$2.21;
- Free cash flow to be in the range of
$450 million to $525 million.
As a reminder, GAAP EPS guidance for the year includes the
following:
- $0.44 per share of Other income related
to the net gain from the sale of Imagitas;
- $0.05 per share of Other expense for
the resolution of an outstanding legal matter and transaction costs
and fees related to the Borderfree and Imagitas transactions;
- $0.04 per share of Restructuring and
asset impairment charges;
- $0.04 per share of compensation expense
related to the vesting of options associated with the Borderfree
acquisition.
This guidance excludes any unusual items that may occur or
additional portfolio or restructuring actions, not specifically
identified, as the Company implements plans to further streamline
its operations and reduce costs.
Conference Call and Webcast
Management of Pitney Bowes will discuss the Company’s results in
a broadcast over the Internet today at 8:00 a.m. ET. Instructions
for listening to the earnings results via the Web are available on
the Investor Relations page of the Company’s web site at
www.pb.com.
About Pitney Bowes
Pitney Bowes (NYSE:PBI) is a global technology company offering
innovative products and solutions that enable commerce in the areas
of customer information management, location intelligence, customer
engagement, shipping and mailing, and global ecommerce. More than
1.5 million clients in approximately 100 countries around the world
rely on products, solutions and services from Pitney Bowes. For
additional information, visit Pitney Bowes at
www.pitneybowes.com.
The Company's financial results are reported in accordance with
generally accepted accounting principles (GAAP). The Company uses
measures such as adjusted earnings before interest and taxes
(EBIT), adjusted earnings per share, adjusted income from
continuing operations and free cash flow to exclude the impact of
special items like restructuring charges, tax adjustments, and
goodwill and asset write-downs, because, while these are actual
Company expenses, they can mask underlying trends associated with
its business. Such items are often inconsistent in amount and
frequency and as such, the adjustments allow an investor greater
insight into the current underlying operating trends of the
business.
The use of free cash flow provides investors insight into the
amount of cash that management could have available for other
discretionary uses. It adjusts GAAP cash from operations for
capital expenditures, as well as special items like cash used for
restructuring charges, unusual tax settlements or payments and
contributions to its pension funds. Management uses segment EBIT to
measure profitability and performance at the segment level. Segment
EBIT is determined by deducting from revenue the related costs and
expenses attributable to the segment. Segment EBIT excludes
interest, taxes, general corporate expenses not allocated to a
particular business segment, restructuring charges and goodwill and
asset impairments, which are recognized on a consolidated basis. In
addition, revenue growth is presented on a constant currency basis
to exclude the impact of changes in foreign currency exchange rates
since the prior period under comparison. Constant currency measures
are intended to help investors better understand the underlying
operational performance of the business excluding the impacts of
shifts in currency exchange rates over the period.
Pitney Bowes has provided a quantitative reconciliation to GAAP
in supplemental schedules. This information may also be found at
the Company's web site www.pb.com/investorrelations.
This document contains “forward-looking statements” about the
Company’s expected or potential future business and financial
performance. Forward-looking statements include, but are not
limited to, statements about its future revenue and earnings
guidance and other statements about future events or conditions.
Forward-looking statements are not guarantees of future performance
and involve risks and uncertainties that could cause actual results
to differ materially from those projected. These risks and
uncertainties include, but are not limited to: mail volumes; the
uncertain economic environment; timely development, market
acceptance and regulatory approvals, if needed, of new products;
fluctuations in customer demand; changes in postal regulations;
interrupted use of key information systems; management of
outsourcing arrangements; the implementation of a new enterprise
resource planning system; changes in business portfolio; the
success of our investment in rebranding the Company; the risk of
customer concentration in our Digital Commerce Solutions group;
integrating newly acquired businesses, including operations and
product and service offerings; foreign currency exchange rates;
changes in our credit ratings; management of credit risk; changes
in interest rates; the financial health of national posts; and
other factors beyond its control as more fully outlined in the
Company's 2014 Form 10-K Annual Report and other reports filed with
the Securities and Exchange Commission. Pitney Bowes assumes no
obligation to update any forward-looking statements contained in
this document as a result of new information, events or
developments.
Note: Consolidated statements of income; revenue and EBIT by
business segment; and reconciliation of GAAP to non-GAAP measures
for the three and nine months ended September 30, 2015 and 2014,
and consolidated balance sheets at September 30, 2015 and December
31, 2014 are attached.
Pitney Bowes Inc. Consolidated Statements of Income
(Unaudited; in
thousands, except per share data)
Three months ended
September 30,
Nine months ended
September 30,
2015 2014 2015 2014 Revenue: Equipment sales $ 163,857 $ 177,458 $
495,328 $ 558,032 Supplies 71,174 72,548 215,178 228,349 Software
97,700 112,271 283,241 312,891 Rentals 108,420 119,047 333,729
365,069 Financing 99,925 107,835 306,992 325,529 Support services
136,820 154,321 415,615 470,763 Business services 191,645
198,164 591,030 576,958
Total revenue 869,541 941,644
2,641,113 2,837,591 Costs and expenses:
Cost of equipment sales 78,650 90,984 232,706 262,336 Cost of
supplies 21,629 22,470 65,912 70,129 Cost of software 27,219 29,775
85,584 93,423 Cost of rentals 21,423 23,636 63,127 74,273 Financing
interest expense 17,533 19,667 54,171 59,733 Cost of support
services 79,747 92,500 244,853 288,203 Cost of business services
130,004 142,512 405,559 406,472 Selling, general and administrative
309,211 341,738 939,318 1,031,497 Research and development 29,153
26,060 83,693 80,901 Restructuring charges and asset impairments,
net 36 4,526 14,305 22,666 Interest expense, net 20,165 22,158
65,200 67,704 Other (income) expense, net (1,781 )
(15,919 ) (94,916 ) 45,738 Total costs and
expenses 732,989 800,107
2,159,512 2,503,075 Income from continuing
operations before income taxes 136,552 141,537 481,601 334,516
Provision for income taxes 42,676
25,310 145,574 79,681 Income
from continuing operations 93,876 116,227 336,027 254,835
Income (loss) from discontinued operations, net of tax -
20,655 (582 ) 30,173 Net
income before attribution of noncontrolling interests 93,876
136,882 335,445 285,008
Less: Preferred stock dividends of
subsidiaries attributable to noncontrolling interests
4,594 4,593 13,781
13,781 Net income - Pitney Bowes Inc. $ 89,282 $
132,289 $ 321,664 $ 271,227 Amounts
attributable to common stockholders: Income from continuing
operations $ 89,282 $ 111,634 $ 322,246 $ 241,054 Income (loss)
from discontinued operations, net of tax -
20,655 (582 ) 30,173 Net income -
Pitney Bowes Inc. $ 89,282 $ 132,289 $ 321,664
$ 271,227 Basic earnings per share attributable to common
stockholders (1): Continuing operations $ 0.45 $ 0.55 $ 1.60 $ 1.19
Discontinued operations - 0.10 -
0.15 Net income - Pitney Bowes Inc. $ 0.45
$ 0.65 $ 1.60 $ 1.34 Diluted earnings
per share attributable to common stockholders (1): Continuing
operations $ 0.44 $ 0.55 $ 1.60 $ 1.18 Discontinued operations
- 0.10 - 0.15
Net income - Pitney Bowes Inc. $ 0.44 $ 0.65 $
1.59 $ 1.33 Weighted-average shares used in diluted
EPS 201,016,809 203,968,557
201,884,967 203,959,978
(1) The sum of the earnings per share
amounts may not equal the totals due to rounding.
Pitney Bowes Inc. Consolidated
Balance Sheets
(Unaudited; in
thousands, except per share data)
Assets
September 30,
2015
December 31,
2014 (1)
Current assets: Cash and cash equivalents $ 715,976 $ 1,079,145
Short-term investments 34,318 32,121 Accounts receivable,
gross 411,804 448,017 Allowance for doubtful accounts
(12,680 ) (10,742 ) Accounts receivable, net 399,124 437,275
Short-term finance receivables 956,767 1,019,412 Allowance
for credit losses (16,143 ) (19,108 ) Short-term
finance receivables, net 940,624 1,000,304 Inventories
103,195 84,827 Current income taxes 33,057 40,542 Other current
assets and prepayments 71,454 57,173 Assets held for sale -
52,271 Total current assets 2,297,748
2,783,658 Property, plant and equipment, net 317,005 285,091
Rental property and equipment, net 188,485 200,380 Long-term
finance receivables 774,690 828,723 Allowance for credit losses
(6,551 ) (9,002 ) Long-term finance receivables, net
768,139 819,721 Goodwill 1,753,888 1,672,721 Intangible
assets, net 192,318 82,173 Non-current income taxes 70,731 96,377
Other assets 553,467 569,110
Total assets $ 6,141,781 $ 6,509,231
Liabilities,
noncontrolling interests and stockholders' equity
Current liabilities: Accounts payable and accrued liabilities $
1,379,337 $ 1,572,971 Current income taxes 79,689 90,167 Current
portion of long-term debt and notes payable 521,091 324,879 Advance
billings 353,467 386,846 Total
current liabilities 2,333,584 2,374,863 Deferred taxes on
income 131,416 64,839 Tax uncertainties and other income tax
liabilities 94,822 86,127 Long-term debt 2,471,055 2,927,127 Other
non-current liabilities 672,507 682,646
Total liabilities 5,703,384 6,135,602
Noncontrolling interests (Preferred stockholders'
equity in subsidiaries) 296,370 296,370 Stockholders'
equity: Cumulative preferred stock, $50 par value, 4% convertible 1
1 Cumulative preference stock, no par value, $2.12 convertible 519
548 Common stock, $1 par value 323,338 323,338 Additional
paid-in-capital 156,195 178,852 Retained earnings 5,106,214
4,897,708 Accumulated other comprehensive loss (900,852 ) (846,156
) Treasury stock, at cost (4,543,388 ) (4,477,032 )
Total Pitney Bowes Inc. stockholders' equity 142,027
77,259 Total liabilities,
noncontrolling interests and stockholders' equity $ 6,141,781
$ 6,509,231
(1) Certain prior year amounts have
been revised.
Pitney Bowes Inc. Revenue and EBIT
Business Segments
(Unaudited; in
thousands)
Three Months Ended September
30, % 2015 2014 Change
Revenue
North America Mailing $ 353,159 $ 363,285 (3 %)
International Mailing 104,615 132,291
(21 %)
Small & Medium Business Solutions 457,774
495,576 (8 %) Production Mail 101,646
113,497 (10 %) Presort Services 115,912
111,434 4 %
Enterprise Business Solutions
217,558 224,931 (3 %) Software
Solutions 97,638 112,006 (13 %) Global Ecommerce 96,571
71,870 34 %
Digital Commerce Solutions
194,209 183,876 6 % Other
- 37,261 (100 %)
Total revenue $
869,541 $ 941,644 (8 %)
EBIT
(1)
North America Mailing $ 159,319 $ 159,638 (0 %)
International Mailing 10,739 16,079 (33
%)
Small & Medium Business Solutions 170,058
175,717 (3 %) Production Mail 12,401
9,570 30 % Presort Services 25,908 21,927
18 %
Enterprise Business Solutions 38,309
31,497 22 % Software Solutions 14,613
18,921 (23 %) Global Ecommerce (1,240 ) (676 ) (83 %)
Digital Commerce Solutions 13,373
18,245 (27 %) Other - 7,980
(100 %)
Total EBIT 221,740 233,439 (5 %)
Unallocated amounts: Interest, net (2) (37,698 ) (41,825 )
Corporate and other expenses (49,235 ) (61,470 ) Restructuring
charges and asset impairments, net (36 ) (4,526 ) Other income, net
1,781 15,919
Income from
continuing operations before income taxes $ 136,552 $
141,537 (1) Segment EBIT excludes interest, taxes,
general corporate expenses, restructuring charges and other items,
which are not allocated to a particular business segment. (2)
Includes financing interest expense and interest expense, net.
Pitney Bowes Inc. Revenue and EBIT
Business Segments
(Unaudited; in
thousands)
Nine Months Ended September
30, % 2015 2014 Change
Revenue
North America Mailing $ 1,071,824 $ 1,115,506 (4 %)
International Mailing 331,398 438,819
(24 %)
Small & Medium Business Solutions
1,403,222 1,554,325 (10 %) Production
Mail 298,880 330,469 (10 %) Presort Services 351,365
339,206 4 %
Enterprise Business Solutions
650,245 669,675 (3 %) Software
Solutions 282,916 312,200 (9 %) Global Ecommerce 249,923
204,399 22 %
Digital Commerce Solutions
532,839 516,599 3 % Other
54,807 96,992 (43 %)
Total
revenue $ 2,641,113 $ 2,837,591 (7 %)
EBIT
(1)
North America Mailing $ 482,376 $ 476,757 1 % International
Mailing 36,585 67,347 (46 %)
Small
& Medium Business Solutions 518,961
544,104 (5 %) Production Mail 31,461 27,865 13 %
Presort Services 76,946 68,235 13 %
Enterprise Business Solutions 108,407
96,100 13 % Software Solutions 34,904 30,620 14 %
Global Ecommerce 9,962 9,100 9 %
Digital Commerce Solutions 44,866
39,720 13 % Other 10,569 13,965
(24 %)
Total EBIT 682,803 693,889 (2 %)
Unallocated amounts: Interest, net (2) (119,371 ) (127,437 )
Corporate and other expenses (151,959 ) (163,532 ) Restructuring
charges and asset impairments, net (14,305 ) (22,666 ) Other income
(expense), net 94,916 (45,738 ) Acquisition related compensation
expense (10,483 ) -
Income from
continuing operations before income taxes $ 481,601 $
334,516 (1) Segment EBIT excludes interest, taxes,
general corporate expenses, restructuring charges and other items,
which are not allocated to a particular business segment. (2)
Includes financing interest expense and interest expense, net.
Pitney Bowes Inc. Reconciliation of
Reported Consolidated Results to Adjusted Results (Unaudited;
in thousands, except per share data)
Three Months Ended September
30,
Nine Months Ended September 30, 2015 2014
2015 2014 Income from continuing operations
after income taxes, as reported: $ 89,282 $ 111,634 $ 322,246 $
241,054 Restructuring charges and asset impairments, net 47 2,903
8,607 15,161 Gain on sale of Imagitas 30 - (88,399 ) - Acquisition
and disposition transaction costs 5,323 - 11,428 - Legal settlement
(370 ) - 4,250 - Acquisition related compensation expense - - 7,246
- Investment divestiture (7,756 ) (9,774 ) (7,756 ) (9,774 )
Extinguishment of debt - - -
37,833
Income from continuing
operations after income taxes, as adjusted: $
86,556 $ 104,763 $
257,622 $ 284,274
Diluted earnings per share from continuing operations, as reported:
$ 0.44 $ 0.55 $ 1.60 $ 1.18 Restructuring charges and asset
impairments, net - 0.01 0.04 0.07 Gain on sale of Imagitas - -
(0.44 ) - Acquisition and disposition transaction costs 0.03 - 0.06
- Legal settlement - - 0.02 - Acquisition related compensation
expense - - 0.04 - Investment divestiture (0.04 ) (0.05 ) (0.04 )
(0.05 ) Extinguishment of debt - -
- 0.19
Diluted earnings per share
from continuing operations, as adjusted: $
0.43 $ 0.51 $ 1.28
$ 1.39 Net cash provided
by operating activities, as reported: $ 150,384 $ 116,985 $ 350,715
$ 397,432 Capital expenditures (40,708 ) (48,920 ) (129,643 )
(121,270 ) Restructuring payments 15,281 8,621 46,056 42,151
(Receipts) payments related to investment divestiture (5,773 )
53,738 20,602 53,738 Reserve account deposits (4,166 ) (12,563 )
(25,630 ) (15,919 ) Acquisition related compensation payment - -
10,483 - Tax payment related to sale of Imagitas 15,918 - 15,918 -
Cash transaction fees related to acquisitions and dispositions - -
11,116 - Extinguishment of debt - -
- 61,657
Free cash flow, as
adjusted: $ 130,936 $
117,861 $ 299,617 $
417,789
Note: The sum of the earnings per share
amounts may not equal the totals due to rounding.
Pitney Bowes Inc. Reconciliation of
Reported Consolidated Results to Adjusted Results (Unaudited;
in thousands) Three
Months Ended September 30, Nine Months Ended September 30, 2015
2014 2015 2014 GAAP income from continuing operations after
income taxes, as reported $ 89,282 $ 111,634 $ 322,246 $ 241,054
Restructuring charges and asset impairments, net 47 2,903 8,607
15,161 Gain on sale of Imagitas 30 - (88,399 ) - Acquisition and
disposition transaction costs 5,323 - 11,428 - Legal settlement
(370 ) - 4,250 - Acquisition related compensation expense - - 7,246
- Investment divestiture (7,756 ) (9,774 ) (7,756 ) (9,774 )
Extinguishment of debt - -
- 37,833 Income
from continuing operations after income taxes, as adjusted 86,556
104,763 257,622 284,274 Provision for income taxes, as adjusted
43,657 20,788 140,070 104,865 Preferred stock dividends of
subsidiaries attributable to noncontrolling interests
4,594 4,593 13,781
13,781 Income from continuing operations
before income taxes, as adjusted 134,807 130,144 411,473 402,920
Interest, net 37,698 41,825
119,371 127,437
Adjusted EBIT 172,505 171,969 530,844
530,357 Depreciation and amortization 42,333
49,643 127,486
142,506
Adjusted EBITDA $
214,838 $ 221,612
$ 658,330 $ 672,863
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151029005124/en/
Pitney Bowes Inc.Editorial:Bill Hughes, 203/351-6785Chief
Communications OfficerorFinancial:Charles F. McBride,
203/351-6349VP, Investor Relations
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