[May 03, 2016] |
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Pitney Bowes Announces First Quarter 2016 Financial Results
Pitney Bowes Inc. (NYSE: PBI), a global technology company that provides
products and solutions that power commerce, today reported financial
results for the first quarter 2016.
Quarterly Financial Results:
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Revenue of $845 million, a decline of 3 percent, excluding the impacts
of market exits and currency; a decline of 4 percent on a constant
currency basis and a decline of 5 percent as reported.
-
Adjusted EPS of $0.34; GAAP EPS of $0.30
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SG&A of $327 million, which includes $12 million of incremental costs
for advertising and ERP implementation.
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Free cash flow of $60 million; GAAP cash from operations of $58 million
-
Repurchased 6.8 million shares of common stock
-
Reaffirming 2016 annual guidance
"We continued to make progress during the first quarter as performance
improved in several of our businesses and we largely completed the next
major milestones in our transformation to deliver greater long-term
value," said Marc B. Lautenbach, President and CEO, Pitney Bowes.
"During the quarter, we turned in a strong performance in new equipment
sales in North America Mailing, a leading indicator for our Mailing
business. Our Presort Services business also performed well, and Global
Ecommerce continued to have strong revenue growth. However, we did not
execute in our Software Solutions business, which also experienced
weaker technology market conditions. We have realigned our Software
management team and expect improvement throughout the year.
"In the last 120 days, we launched the first major television
advertising campaign in twenty years, deployed our new ERP and business
process platform in Canada and the U.S., and moved to a dealer network
in several markets. Last week, we announced the Pitney Bowes Commerce
Cloud, including five SaaS-based solutions that utilize our physical and
digital capabilities, mobile, global and ecommerce technologies with all
of the end-to-end requirements that drive commerce. While these
investments have impacted our first quarter results, we will begin to
realize benefits associated with the implementation of our new platform
beginning in the second half of the year. Going forward, I am confident
in our ability to deliver on our long-term strategic plans and we will
continue to unlock value for our shareholders."
First Quarter 2016 Results
Revenue totaled $845 million for the quarter. On a comparative basis,
revenue declined 3 percent versus the prior year when adjusted for the
impact of currency and the impact from the exit of direct operations
(market exits) in Mexico, South Africa and five markets in Asia. Revenue
declined 4 percent on a constant currency basis and 5 percent on a
reported basis.
Digital Commerce Solutions revenue grew 11 percent on a constant
currency basis and 9 percent on a reported basis. Revenue on a constant
currency basis benefited from growth in Global Ecommerce, while revenue
declined in Software Solutions.
Enterprise Business Solutions revenue declined 1 percent compared to the
prior year when adjusted for the impact of currency and market exits.
Revenue declined 2 percent on a constant currency basis and 3 percent on
a reported basis. Revenue benefited from continued growth in Presort
Services, which was offset by a decline in Production Mail.
Small and Medium Business (SMB) Solutions revenue declined 3 percent
compared to the prior year when adjusted for the impact of currency and
market exits. Revenue declined 4 percent on a constant currency basis
and 5 percent on a reported basis. SMB equipment sales revenue grew
globally while recurring revenues declined.
Adjusted earnings per diluted share were $0.34. Earnings per diluted
share on a Generally Accepted Accounting Principles (GAAP) basis were
$0.30, which included $0.02 per share for restructuring charges and
$0.01 per share for disposition costs related to the market exits.
Earnings per share comparisons this quarter were adversely impacted by
$0.03 per share for incremental advertising expenses; $0.01 per share
for higher ERP related expenses and $0.02 per share for the absence of
Imagitas earnings compared to last year.
The Company's earnings per share results for the quarter are summarized
in the table below:
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First Quarter*
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2016
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2015
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Adjusted EPS from continuing operations
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$0.34
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$0.40
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Restructuring
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(0.02)
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-
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Dispositions expense
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(0.01)
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-
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GAAP EPS
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$0.30
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$0.40
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* The sum of the earnings per share may not equal the totals above due
to rounding
Free Cash Flow Results
Free cash flow during the quarter was $60 million and $58 million on a
GAAP operating cash basis. In comparison to the prior year, free cash
flow declined due to lower net income and a slower decline in finance
receivables. Cash flow comparisons were also impacted by the timing of
payments resulting from the launch of the new ERP program in the U.S.
During the quarter, the Company used cash for: $36 million in dividends
to its common shareholders; $128 million for share repurchases; $22
million for restructuring payments and $37 million for a contribution to
the UK pension fund.
Business Segment Reporting
The Company's business segment reporting reflects the clients served
in each market and the way it manages these segments for growth and
profitability. The primary reporting segment groups are the SMB
Solutions group; the Enterprise Business Solutions group; and the
Digital Commerce Solutions group.
The SMB Solutions group offers mailing equipment, financing, services
and supplies for small and medium businesses to efficiently create mail
and evidence postage. This group includes the North America Mailing and
International Mailing segments. North America Mailing includes the
operations of U.S. and Canada Mailing. International Mailing
includes all other SMB operations around the world.
The Enterprise Business Solutions group includes the global
Production Mail and Presort Services segments. Production Mail provides
mailing and printing equipment and services for large enterprise clients
to process mail. Presort Services provides sortation services to qualify
large mail volumes for postal worksharing discounts.
The Digital Commerce Solutions group includes the Software Solutions
and Global Ecommerce segments. Software Solutions provide
customer engagement, customer information and location intelligence
software. Global Ecommerce facilitates global cross-border ecommerce
transactions and shipping solutions for businesses of all sizes.
The Other segment is comprised of the Imagitas marketing services
business, which was sold on May 29, 2015.
Consolidated Segment Results
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($ millions)
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First Quarter
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2016
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2015
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Y/Y
Reported
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Y/Y
Ex Currency
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Y/Y Ex Currency & Market Exits*
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Revenue
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$845
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$891
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(5%)
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(4%)
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(3%)
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Segment EBIT
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$202
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$229
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(12%)
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* Excluding the impacts of currency and the divested revenues resulting
from the exit of direct operations in Mexico, South Africa and five
markets in Asia.
SMB Solutions Group
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($ millions)
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First Quarter
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Revenue
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2016
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2015
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Y/Y
Reported
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Y/Y
Ex Currency
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Y/Y Ex Currency & Market Exits*
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North America Mailing
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$350
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$362
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(3%)
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(3%)
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(3%)
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International Mailing
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104
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116
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(11%)
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(7%)
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(5%)
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SMB Solutions Total
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$453
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$478
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(5%)
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(4%)
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(3%)
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EBIT
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North America Mailing
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$156
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$164
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(5%)
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International Mailing
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12
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12
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1%
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SMB Solutions Total
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$168
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$175
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(4%)
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* Excluding the impacts of currency and the divested revenues resulting
from the exit of direct operations in Mexico, South Africa and five
markets in Asia.
North America Mailing
The revenue rate of decline for the quarter was consistent with prior
quarters. Equipment sales and supplies increased in the mid-single digit
range compared to the prior year on a constant currency basis, which was
the best year-over-year performance for equipment sales in several
years. Recurring revenue streams declined at a mid-single digit rate.
The Company continues to focus on driving increased sales effectiveness
in the segment's sales channels, which was evident in the quarter. EBIT
margin was lower as a result of the decline in high margin recurring
revenue streams.
International Mailing
Excluding the adverse effect from currency and the recent market exits,
the revenue decline for the segment continued to moderate. The Company's
strategies of realigning its geographic footprint and go-to-market have
been completed and the productivity benefits are being reflected in the
results. Revenue on a constant currency basis benefited from equipment
sales growth in France, Germany and Japan. The decline in recurring
revenue streams was consistent with prior quarters. EBIT margin improved
versus the prior year primarily as a result of lower costs associated
with the change in go-to-market.
Enterprise Business Solutions Group
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($ millions)
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First Quarter
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Revenue
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2016
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2015
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Y/Y
Reported
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Y/Y
Ex Currency
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Y/Y Ex Currency
& Market Exits*
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Production Mail
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$ 87
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$100
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(12%)
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(11%)
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(8%)
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Presort Services
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127
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122
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5%
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5%
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5%
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Enterprise Business Total
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$215
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$221
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(3%)
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(2%)
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(1%)
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EBIT
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Production Mail
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$7
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$9
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(24%)
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Presort Services
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29
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27
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5%
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Enterprise Business Total
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$36
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$37
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(2%)
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* Excluding the impacts of currency and the divested revenues resulting
from the exit of direct operations in Mexico, South Africa and five
markets in Asia.
Production Mail
Excluding the adverse effect from currency and the recent market exits,
revenue declined 8 percentage points. Equipment sales declined due to
fewer inserting equipment installations in part due to the timing of
closing some large deals. Support services and supplies revenue
declined, in part, as a result of some in-house mailers shifting their
mail processing to third party outsourcers and the recent market exits.
EBIT margin declined versus the prior year as a result of the lower
revenue, especially the higher-margin inserting equipment sales revenue.
Presort Services
Revenue benefited from the higher volume of First Class mail processed
as well as expansion into the St. Louis market. EBIT margin was
relatively flat to the prior year as benefits from on-going operational
productivity initiatives offset increased mail processing costs.
Digital Commerce Solutions Group
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($ millions)
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First Quarter
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Revenue
|
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2016
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2015
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Y/Y
Reported
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Y/Y
Ex Currency
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Software Solutions
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$ 78
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$86
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(10%)
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(7%)
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Global Ecommerce
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98
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75
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30%
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31%
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Digital Commerce Total
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$176
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$162
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9%
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11%
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EBIT
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Software Solutions
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$ (3)
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$ 4
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(162%)
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Global Ecommerce
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1
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8
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(91%)
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Digital Commerce Total
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($ 2)
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$12
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(115%)
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Software Solutions
Revenue declined due to fewer large licensing deals and lower
data-related revenue versus the prior year. The Company is expanding its
channel reach and focus on several high-potential industries with
targeted solutions, which have longer sales cycles. Management continues
to focus on improving sales efficiency and expanding the indirect
channel to improve the pipeline of deals. EBIT margin declined as a
result of the lower licensing revenue, which has a high margin, and
increased selling and marketing costs.
Global Ecommerce
Results included another full quarter of revenue from Borderfree retail
clients and strong growth in the UK marketplace. The launch of new
retail storefronts also added to revenue in the quarter. Outbound U.S.
package shipments improved during the course of the quarter as pressure
from the strong U.S. dollar began to subside.
EBIT margin declined versus the prior year due to the amortization of
acquisition-related intangible costs and investments in the business,
which more than offset the early stages of synergy savings. The Company
remains on-track to achieve its synergy run-rate objective by the end of
the year.
Other
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($ millions)
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First Quarter
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2016
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2015
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Y/Y
Reported
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Y/Y
Ex Currency
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Revenue
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$0
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$30
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NM
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NM
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EBIT
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$0
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$5
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NM
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The Other segment is comprised of the Imagitas marketing services
business, which was sold in May 2015.
2016 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 2015 Form 10-K Annual Report and other reports filed with the
Securities and Exchange Commission.
The Company is reaffirming its annual revenue growth, earnings per share
and free cash flow guidance. The Company's guidance is based on an
assumption that the global economy and foreign exchange markets in 2016
will not change significantly. 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.
The Company still expects in 2016:
-
Revenue, on a constant currency basis, to be in the range of a 1
percent decline to 2 percent growth when compared to 2015.
-
Earnings per diluted share from continuing operations to be in the
range of $1.80 to $2.00 on both an adjusted and GAAP basis.
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Free cash flow to be in the range of $425 million to $525 million.
The Company is providing further detail on the timing of advertising and
ERP expenses among the quarters. The Company expects:
-
Incremental marketing expense in the second quarter to have a similar
impact on earnings as the first quarter. The change in timing of the
expense is related, in part, to an extension of the Company's
advertising campaign and support for the launch of the new Pitney
Bowes Commerce Cloud solutions. Total annual expense is expected to
remain the same.
-
Incremental ERP expense is expected to be the highest in the second
quarter as the Company supports the post-launch implementation phase
of its ERP platform in the U.S.
-
The aggregate of these incremental advertising and ERP expenses in the
second quarter are expected to be at a similar level to the impact on
earnings in the first quarter.
The Company still expects:
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Revenue, excluding the impacts of currency; to be driven by growth in
the double-digit range in Digital Commerce Solutions; flat to modest
growth in Enterprise Business Solutions and a low single-digit decline
in SMB Solutions.
-
Revenue results will be impacted by the recent market exits, which
generated $26 million in revenue in 2015.
-
On-going improvement in SG&A as a percent of revenue as a result of
the expected benefits from the implementation of the new ERP program.
The majority of these benefits in 2016 are expected to be realized in
the second half of the year, after the U.S. launch and stabilization
period.
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A tax rate in the range of 32 to 35 percent.
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; the ability to
protect the Company's information technology systems against service
interruptions, misappropriation of data, or breaches of security
resulting from cyber-attacks or other events; 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 losing some of the Company's larger
clients in the Global Ecommerce segment; 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; increased customs and regulatory risks
associated with cross-border transactions; and other factors beyond its
control as more fully outlined in the Company's 2015 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
months ended March 31, 2016 and 2015, and consolidated balance sheets at
March 31, 2016 and December 31, 2015 are attached.
Pitney Bowes Inc.
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Consolidated Statements of Income
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(Unaudited; in thousands, except share and per share amounts)
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Three Months Ended March 31,
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2016
|
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2015
|
Revenue:
|
|
|
|
|
|
|
|
Equipment sales
|
|
$
|
159,361
|
|
|
$
|
165,964
|
|
|
|
Supplies
|
|
|
72,051
|
|
|
|
73,368
|
|
|
|
Software
|
|
|
78,058
|
|
|
|
86,357
|
|
|
|
Rentals
|
|
|
104,090
|
|
|
|
113,997
|
|
|
|
Financing
|
|
|
97,423
|
|
|
|
105,630
|
|
|
|
Support services
|
|
|
128,260
|
|
|
|
139,558
|
|
|
|
Business services
|
|
|
205,346
|
|
|
|
205,807
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
|
844,589
|
|
|
|
890,681
|
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
Cost of equipment sales
|
|
|
71,539
|
|
|
|
75,013
|
|
|
|
Cost of supplies
|
|
|
20,690
|
|
|
|
22,659
|
|
|
|
Cost of software
|
|
|
26,815
|
|
|
|
29,864
|
|
|
|
Cost of rentals
|
|
|
20,495
|
|
|
|
20,701
|
|
|
|
Financing interest expense
|
|
|
14,915
|
|
|
|
18,770
|
|
|
|
Cost of support services
|
|
|
75,249
|
|
|
|
83,599
|
|
|
|
Cost of business services
|
|
|
135,538
|
|
|
|
139,919
|
|
|
|
Selling, general and administrative
|
|
|
326,882
|
|
|
|
314,529
|
|
|
|
Research and development
|
|
|
26,568
|
|
|
|
26,048
|
|
|
|
Restructuring charges, net
|
|
|
6,933
|
|
|
|
(81
|
)
|
|
|
Interest expense, net
|
|
|
19,301
|
|
|
|
24,064
|
|
|
|
|
|
|
|
|
|
|
|
Total costs and expenses
|
|
|
744,925
|
|
|
|
755,085
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes
|
|
|
99,664
|
|
|
|
135,596
|
|
Provision for income taxes
|
|
|
37,024
|
|
|
|
50,547
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
62,640
|
|
|
|
85,049
|
|
Income from discontinued operations, net of tax
|
|
|
-
|
|
|
|
157
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
62,640
|
|
|
|
85,206
|
|
Less: Preferred stock dividends attributable to noncontrolling
interests
|
|
|
4,594
|
|
|
|
4,594
|
|
|
|
|
|
|
|
|
|
Net income - Pitney Bowes Inc.
|
|
$
|
58,046
|
|
|
$
|
80,612
|
|
|
|
|
|
|
|
|
|
Amounts attributable to common stockholders:
|
|
|
|
|
|
|
|
Net income from continuing operations
|
|
$
|
58,046
|
|
|
$
|
80,455
|
|
|
|
Income from discontinued operations, net of tax
|
|
|
-
|
|
|
|
157
|
|
|
|
|
|
|
|
|
|
|
|
Net income - Pitney Bowes Inc.
|
|
$
|
58,046
|
|
|
$
|
80,612
|
|
|
|
|
|
|
|
|
|
Basic earnings per share attributable to common stockholders:
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.30
|
|
|
$
|
0.40
|
|
|
|
Discontinued operations
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Net income - Pitney Bowes Inc.
|
|
$
|
0.30
|
|
|
$
|
0.40
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share attributable to common stockholders:
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.30
|
|
|
$
|
0.40
|
|
|
|
Discontinued operations
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Net income - Pitney Bowes Inc.
|
|
$
|
0.30
|
|
|
$
|
0.40
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used in diluted earnings per share
|
|
|
193,181,424
|
|
|
|
202,679,433
|
|
|
|
|
|
|
|
|
|
|
Pitney Bowes Inc.
|
Consolidated Balance Sheets
|
(Unaudited; in thousands, except share amounts)
|
|
|
|
|
|
|
Assets
|
|
March 31,
2016
|
|
December 31,
2015 (1)
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
612,987
|
|
|
$
|
650,557
|
|
|
Short-term investments
|
|
|
122,147
|
|
|
|
117,021
|
|
|
Accounts receivable, net
|
|
|
383,839
|
|
|
|
457,327
|
|
|
Short-term finance receivables, net
|
|
|
912,755
|
|
|
|
935,170
|
|
|
Inventories
|
|
|
100,353
|
|
|
|
88,824
|
|
|
Current income taxes
|
|
|
11,494
|
|
|
|
6,584
|
|
|
Other current assets and prepayments
|
|
|
70,609
|
|
|
|
64,325
|
|
|
|
|
|
|
|
Total current assets
|
|
|
2,214,184
|
|
|
|
2,319,808
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
335,760
|
|
|
|
330,088
|
|
Rental property and equipment, net
|
|
|
178,877
|
|
|
|
180,662
|
|
Long-term finance receivables, net
|
|
|
741,138
|
|
|
|
763,054
|
|
Goodwill
|
|
|
1,765,002
|
|
|
|
1,745,957
|
|
Intangible assets, net
|
|
|
184,047
|
|
|
|
187,378
|
|
Noncurrent income taxes
|
|
|
68,437
|
|
|
|
70,294
|
|
Other assets
|
|
|
518,377
|
|
|
|
525,891
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
6,005,822
|
|
|
$
|
6,123,132
|
|
|
|
|
|
|
|
Liabilities, noncontrolling interests and
stockholders' equity
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
$
|
1,311,486
|
|
|
$
|
1,448,321
|
|
|
Current income taxes
|
|
|
27,471
|
|
|
|
16,620
|
|
|
Current portion of long-term debt and notes payable
|
|
|
269,732
|
|
|
|
461,085
|
|
|
Advance billings
|
|
|
356,412
|
|
|
|
353,025
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
1,965,101
|
|
|
|
2,279,051
|
|
|
|
|
|
|
|
Deferred taxes on income
|
|
|
216,648
|
|
|
|
205,668
|
|
Tax uncertainties and other income tax liabilities
|
|
|
67,502
|
|
|
|
68,429
|
|
Long-term debt
|
|
|
2,775,213
|
|
|
|
2,489,583
|
|
Other noncurrent liabilities
|
|
|
561,720
|
|
|
|
605,310
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
5,586,184
|
|
|
|
5,648,041
|
|
|
|
|
|
|
|
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
|
|
|
492
|
|
|
|
505
|
|
|
Common stock, $1 par value
|
|
|
323,338
|
|
|
|
323,338
|
|
|
Additional paid-in-capital
|
|
|
145,755
|
|
|
|
161,280
|
|
|
Retained earnings
|
|
|
5,177,573
|
|
|
|
5,155,537
|
|
|
Accumulated other comprehensive loss
|
|
|
(839,842
|
)
|
|
|
(888,635
|
)
|
|
Treasury stock, at cost
|
|
|
(4,684,049
|
)
|
|
|
(4,573,305
|
)
|
|
|
|
|
|
|
Total Pitney Bowes Inc. stockholders' equity
|
|
|
123,268
|
|
|
|
178,721
|
|
|
|
|
|
|
|
Total liabilities, noncontrolling interests and stockholders' equity
|
|
$
|
6,005,822
|
|
|
$
|
6,123,132
|
|
|
|
|
|
|
|
(1)
|
Certain prior year amounts have been revised for accounting rules
that became effective January 1, 2016.
|
|
|
Pitney Bowes Inc.
|
Business Segments - Revenue and EBIT
|
(Unaudited; in thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
2016
|
|
2015
|
|
% Change
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America Mailing
|
|
$
|
349,726
|
|
|
$
|
361,874
|
|
|
(3
|
%)
|
International Mailing
|
|
|
103,759
|
|
|
|
116,173
|
|
|
(11
|
%)
|
Small & Medium Business Solutions
|
|
|
453,485
|
|
|
|
478,047
|
|
|
(5
|
%)
|
|
|
|
|
|
|
|
Production Mail
|
|
|
87,425
|
|
|
|
99,503
|
|
|
(12
|
%)
|
Presort Services
|
|
|
127,396
|
|
|
|
121,531
|
|
|
5
|
%
|
Enterprise Business Solutions
|
|
|
214,821
|
|
|
|
221,034
|
|
|
(3
|
%)
|
|
|
|
|
|
|
|
Software Solutions
|
|
|
77,922
|
|
|
|
86,237
|
|
|
(10
|
%)
|
Global Ecommerce
|
|
|
98,361
|
|
|
|
75,386
|
|
|
30
|
%
|
Digital Commerce Solutions
|
|
|
176,283
|
|
|
|
161,623
|
|
|
9
|
%
|
|
|
|
|
|
|
|
Other
|
|
|
-
|
|
|
|
29,977
|
|
|
(100
|
%)
|
|
|
|
|
|
|
|
Total revenue
|
|
$
|
844,589
|
|
|
$
|
890,681
|
|
|
(5
|
%)
|
|
|
|
|
|
|
|
EBIT (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America Mailing
|
|
$
|
155,915
|
|
|
$
|
163,665
|
|
|
(5
|
%)
|
International Mailing
|
|
|
11,851
|
|
|
|
11,724
|
|
|
1
|
%
|
Small & Medium Business Solutions
|
|
|
167,766
|
|
|
|
175,389
|
|
|
(4
|
%)
|
|
|
|
|
|
|
|
Production Mail
|
|
|
6,824
|
|
|
|
9,032
|
|
|
(24
|
%)
|
Presort Services
|
|
|
28,910
|
|
|
|
27,494
|
|
|
5
|
%
|
Enterprise Business Solutions
|
|
|
35,734
|
|
|
|
36,526
|
|
|
(2
|
%)
|
|
|
|
|
|
|
|
Software Solutions
|
|
|
(2,572
|
)
|
|
|
4,133
|
|
|
(162
|
%)
|
Global Ecommerce
|
|
|
772
|
|
|
|
8,146
|
|
|
(91
|
%)
|
Digital Commerce Solutions
|
|
|
(1,800
|
)
|
|
|
12,279
|
|
|
(115
|
%)
|
|
|
|
|
|
|
|
Other
|
|
|
-
|
|
|
|
4,958
|
|
|
(100
|
%)
|
|
|
|
|
|
|
|
Total EBIT
|
|
|
201,700
|
|
|
|
229,152
|
|
|
(12
|
%)
|
|
|
|
|
|
|
|
Unallocated amounts:
|
|
|
|
|
|
|
Interest, net (2)
|
|
|
(34,216
|
)
|
|
|
(42,834
|
)
|
|
|
Corporate and other expenses
|
|
|
(57,767
|
)
|
|
|
(50,803
|
)
|
|
|
Restructuring charges, net
|
|
|
(6,933
|
)
|
|
|
81
|
|
|
|
Acquisition/disposition related expenses
|
|
|
(3,120
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes
|
|
$
|
99,664
|
|
|
$
|
135,596
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
2016
|
|
2015
|
|
|
|
|
|
Income from continuing operations after income taxes
|
|
$
|
62,640
|
|
|
$
|
85,049
|
|
Restructuring charges, net
|
|
|
4,628
|
|
|
|
(53
|
)
|
Loss on disposition of businesses
|
|
|
2,175
|
|
|
|
-
|
|
Income from continuing operations after
|
|
|
|
|
income taxes, as adjusted
|
|
|
69,443
|
|
|
|
84,996
|
|
Provision for income taxes, as adjusted
|
|
|
40,274
|
|
|
|
50,519
|
|
Income from continuing operations before income taxes, as adjusted
|
|
|
109,717
|
|
|
|
135,515
|
|
Interest, net
|
|
|
34,216
|
|
|
|
42,834
|
|
|
|
|
|
|
EBIT, as adjusted
|
|
|
143,933
|
|
|
|
178,349
|
|
Depreciation and amortization
|
|
|
44,300
|
|
|
|
42,496
|
|
|
|
|
|
|
EBITDA, as adjusted
|
|
$
|
188,233
|
|
|
$
|
220,845
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations
|
|
$
|
0.30
|
|
|
$
|
0.40
|
|
Restructuring charges, net
|
|
|
0.02
|
|
|
|
-
|
|
Loss on disposition of businesses
|
|
|
0.01
|
|
|
|
-
|
|
Diluted earnings per share from continuing
|
|
|
|
|
operations, as adjusted
|
|
$
|
0.34
|
|
|
$
|
0.40
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
$
|
58,366
|
|
|
$
|
103,887
|
|
Capital expenditures
|
|
|
(40,504
|
)
|
|
|
(43,908
|
)
|
Restructuring payments
|
|
|
21,656
|
|
|
|
21,874
|
|
Pension contribution
|
|
|
36,731
|
|
|
|
-
|
|
Reserve account deposits
|
|
|
(16,253
|
)
|
|
|
(20,077
|
)
|
Payments related to investment divestiture
|
|
|
-
|
|
|
|
23,160
|
|
Other
|
|
|
189
|
|
|
|
-
|
|
|
|
|
|
|
Free cash flow, as adjusted
|
|
$
|
60,185
|
|
|
$
|
84,936
|
|
|
|
|
|
|
|
|
|
|
|
Note: The sum of the earnings per share amounts may not equal the
totals due to rounding.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160503005269/en/
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