Pitney Bowes Inc. (NYSE:PBI), a global technology company that
provides commerce solutions in the areas of ecommerce, shipping,
mailing, and data, today announced its financial results for the
second quarter 2019.
Quarterly Results:
- Revenue of $861 million, a decrease of 1 percent; flat when
adjusted for the impact of currency; an increase of 2 percent when
adjusted for both the impact of currency and market exits
- GAAP EPS of $0.13; Adjusted EPS of $0.21
- GAAP cash from operations of $17 million; free cash flow of $13
million
- Returned a total of $70 million to shareholders through the
repurchase of 11.8 million shares of stock for $61 million and $9
million in dividends
- The Company is reaffirming its 2019 annual guidance
“I am pleased with our overall performance in the second
quarter,” said Marc B. Lautenbach, President and CEO, Pitney Bowes.
“Parcel volumes through our domestic ecommerce network increased 42
percent, which is an important metric as we continue to scale this
business. The Company’s revenue in the second quarter continued to
grow on a comparable basis and earnings were in-line with our
expectations. We continued to make progress against our strategic
objectives as we move our portfolio to the growth areas of the
market, and are positioned to meet our financial goals for the year
and over the long-term.”
Second Quarter 2019 Results
Revenue totaled $861 million, which was a decline of 1 percent
versus prior year. Revenue was flat versus the prior year when
adjusted for the impact of currency and increased 2 percent when
adjusted for both the impact of currency and the previously
announced sale of direct operations in 6 smaller European markets
(market exits).
Commerce Services revenue grew 13 percent as reported and 14
percent when adjusted for the impact of currency. Small and Medium
Business (SMB) Solutions revenue declined 8 percent as reported and
7 percent when adjusted for the impact of currency. SMB revenue
declined 4 percent when adjusted for both the impact of currency
and market exits. Software Solutions revenue declined 21 percent as
reported and 20 percent adjusted for currency.
GAAP earnings per diluted share (GAAP EPS) were $0.13. Adjusted
earnings per diluted share (Adjusted EPS) were $0.21.
The Company’s earnings per share results for the second quarter
are summarized in the table below:
Second Quarter*
2019
2018
GAAP EPS
$0.13
$0.27
Discontinued operations
$0.04
($0.01)
GAAP EPS from continuing
operations
$0.17
$0.27
Restructuring charges and asset
impairments, net
$0.03
$0.04
Transaction costs
$0.01
-
Tax adjustments, net
-
($0.03)
Adjusted EPS
$0.21
$0.28
* The sum of the earnings per share may not equal the totals
above due to rounding.
GAAP Cash from Operations and Free Cash Flow Results
GAAP cash from operations during the quarter was $17 million and
free cash flow was $13 million. Compared to prior year, the decline
in free cash flow was driven by the timing of working capital,
largely within accounts payable, and the decline in net income.
These impacts were partially offset by lower capital expenditures
and the timing of reserve account deposits.
During the quarter, the Company repurchased $61 million of its
shares, reduced debt by $13 million and paid $9 million in
dividends to its common shareholders.
Second Quarter 2019 Business Segment Reporting
The business reporting groups reflect how the Company manages
these groups and the clients served in each market.
The Commerce Services group includes the Global Ecommerce and
Presort Services segments. Global Ecommerce facilitates global
cross-border ecommerce transactions and domestic retail and
ecommerce shipping solutions, including fulfillment and returns.
Presort Services provides sortation services to qualify large
volumes of First Class Mail, Marketing Mail and Bound and Packet
Mail (Marketing Mail Flats and Bound Printed Matter) for postal
workshare discounts.
The SMB Solutions group offers mailing and shipping solutions,
financing, services, supplies and other applications for small and
medium businesses to help simplify and save on the sending,
tracking and receiving of letters, parcels and flats. This group
includes the North America Mailing and International Mailing
segments.
Software Solutions provide customer engagement, customer
information, location intelligence software and data.
The results for each segment within the group may not equal the
subtotals for the group due to rounding.
Commerce Services
($ millions)
Second Quarter
Revenue
2019
2018
Y/Y
Reported
Y/Y
Ex
Currency
Global Ecommerce
$282
$239
18%
19%
Presort Services
128
123
4%
4%
Commerce Services
$410
$362
13%
14%
EBITDA
Global Ecommerce
$1
$9
(86%)
Presort Services
23
19
18%
Commerce Services
$24
$29
(17%)
EBIT
Global Ecommerce
($16)
($6)
>(100%)
Presort Services
15
13
23%
Commerce Services
($0)
$7
>(100%)
Global Ecommerce
Revenue increased from prior year driven by growth in domestic
parcel and shipping solutions volumes. EBIT and EBITDA margin
percentages declined from prior year driven by a shift in the mix
of business to faster growing, but lower-margin services. Margins
were also impacted by investments in market growth opportunities,
including marketing programs, along with investments in operational
excellence initiatives.
Presort Services
Revenue growth was driven by volume growth across all mail
classes along with higher revenue per piece. The major volume
drivers were higher Marketing Mail and Flats processed. EBIT and
EBITDA margin percentages increased from prior year and prior
quarter primarily due the higher revenue per piece along with lower
labor costs.
SMB Solutions
($ millions)
Second Quarter
Revenue
2019
2018
Y/Y
Reported
Y/Y
Ex
Currency
Y/Y Ex Currency & Market Exits*
North America Mailing
$303
$319
(5%)
(5%)
(5%)
International Mailing
75
93
(20%)
(15%)
(3%)
SMB Solutions
$378
$412
(8%)
(7%)
(4%)
EBITDA
North America Mailing
$123
$128
(4%)
International Mailing
14
15
(9%)
SMB Solutions
$137
$144
(5%)
EBIT
North America Mailing
$113
$120
(6%)
International Mailing
12
13
(9%)
SMB Solutions
$125
$133
(6%)
* Excluding $12 million related to market exits and $5 million
related to the impacts of currency
North America Mailing
Revenue declined on lower equipment sales and recurring revenue
streams. The recurring revenue stream decline was driven by lower
support services, supplies and financing revenue partially offset
by higher business services. EBIT and EBITDA margin percentages
were relatively flat to prior year driven by the lower revenue
along with higher tariff costs partially offset by lower
expenses.
International Mailing
Reported revenue was negatively impacted by the previously
announced market exits. Excluding the effect from currency and
market exits, the revenue decline was driven by lower services and
supplies revenue partially offset by higher rentals revenue. The
revenue decline was driven by weakness in the UK and Germany
partially offset by growth in France. EBIT and EBITDA margin
percentages increased versus prior year driven by lower
expenses.
Software Solutions
($ millions)
Second Quarter
2019
2018
Y/Y
Reported
Y/Y
Ex
Currency
Revenue
$72
$92
(21%)
(20%)
EBITDA
$4
$21
(79%)
EBIT
$2
$18
(89%)
Software Solutions
Revenue declined from prior year driven by lower license revenue
partially offset by higher data subscriptions and SaaS revenue.
Prior year included several large renewal license deals. In
addition, new license deals were down compared to prior year. EBIT
and EBITDA margin percentages decreased from prior year largely
driven by the lower license revenue.
2019 Guidance
The Company is reaffirming its prior annual guidance for 2019.
Guidance reflects the shift of the business to the fourth quarter
as shipping continues to be a larger part of the portfolio.
- Revenue, on a constant currency (CC) basis, to be in the range
of 1 percent to 3 percent growth when compared to 2018.
- Adjusted EPS from continuing operations to be in the range of
$0.90 to $1.05.
- Free cash flow to be in the range of $200 million to $250
million.
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 2018 Form 10-K Annual Report and other
reports filed with the Securities and Exchange Commission.
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. Revenue guidance is provided on a
constant currency basis. The Company cannot reasonably predict the
impact that future changes in currency exchange rates will have on
revenue and net income. Additionally, the Company cannot provide
GAAP EPS and GAAP cash from operations guidance due to the
uncertainty of future potential restructurings, goodwill and asset
write-downs, unusual tax settlements or payments, special
contributions to its pension funds, acquisitions, divestitures and
other potential adjustments, which could, individually or in the
aggregate, have a material impact on the Company’s performance. The
Company’s guidance is based on an assumption that the global
economy and foreign exchange markets in 2019 will not change
significantly.
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.pitneybowes.com.
About Pitney Bowes
Pitney Bowes (NYSE:PBI) is a global technology company providing
commerce solutions that power billions of transactions. Clients
around the world, including 90 percent of the Fortune 500, rely on
the accuracy and precision delivered by Pitney Bowes solutions,
analytics, and APIs in the areas of ecommerce fulfillment, shipping
and returns; cross-border ecommerce; office mailing and shipping;
presort services; location data; customer information and
engagement software; services; and financing. For nearly 100 years
Pitney Bowes has been innovating and delivering technologies that
remove the complexity of getting commerce transactions precisely
right. For additional information visit Pitney Bowes, the Craftsmen
of Commerce, at www.pitneybowes.com.
Disclosure Using Social Media
Pitney Bowes announces material information to its investors
using SEC filings, press releases, public conference calls and
webcasts. The Company already makes frequent use of its investor
relations website to disseminate material information, as well as
social media platforms, including Twitter, Facebook and LinkedIn.
Investors, buy and sell-side analysts, media and influencers should
note that the Company plans to continue to announce material
financial information using the Pitney Bowes investor relations
website, SEC filings, and press releases, public conference calls
and webcasts. Pitney Bowes is notifying investors, media and others
interested in the company that in the future, the Company may
choose to communicate material information through its social media
channels, or it is possible that information it discloses through
social media channels may be deemed to be material. Therefore,
Pitney Bowes encourages investors, the media, and others interested
in the Company to review the information posted on the Company’s
investor relations site
(https://www.investorrelations.pitneybowes.com/),
Twitter (https://twitter.com/PBnews and
https://twitter.com/PitneyBowes), Facebook
(https://www.facebook.com/PitneyBowes/), and LinkedIn
(https://www.linkedin.com/company/pitney-bowes/). The
Company may communicate on social media platforms not listed here
as well as create new accounts in the future. Any updates to the
list of social media channels Pitney Bowes will use to announce
material information will be posted on the Investor Relations
page.
Use of Non-GAAP Measures
The Company's financial results are reported in accordance with
generally accepted accounting principles (GAAP); however, in its
disclosures the Company uses certain non-GAAP measures, such as
adjusted earnings before interest and taxes (EBIT), adjusted
earnings before interest, taxes, depreciation and amortization
(EBITDA), adjusted earnings per share (EPS), revenue growth on a
constant currency basis and free cash flow.
The Company reports measures such as adjusted EBIT, adjusted EPS
and adjusted net income to exclude the impact of special items like
restructuring charges, tax adjustments, goodwill and asset
write-downs, and costs related to dispositions and acquisitions.
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.
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.
Constant currency is calculated by converting our current quarter
reported results using the prior year’s exchange rate for the
comparable quarter. In addition, this quarter the Company reported
the comparison of revenue excluding the impact of currency and
market exits to prior year, which excludes the impact of changes in
foreign currency exchange rates since the prior period and also
excludes the revenues associated with the recent market exits in
several smaller markets. This comparison allows an investor insight
into the underlying revenue performance of the business and true
operational performance from a comparable basis to prior period. A
reconciliation of reported revenue to constant currency revenue, as
well as reported revenue to “revenue excluding the impact of
currency and market exits” can be found in the Company’s attached
financial schedules.
The Company reports free cash flow in order to provide investors
insight into the amount of cash that management could have
available for other discretionary uses. Free cash flow adjusts GAAP
cash from operations for capital expenditures, restructuring
payments, unusual tax settlements, special contributions to the
Company’s pension fund and cash used for other special items. A
reconciliation of GAAP cash from operations to free cash flow can
be found in the Company’s attached financial schedules.
Segment EBIT is the primary measure of profitability and
operational performance at the segment level. Segment EBIT is
determined by deducting from segment 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.
The Company has also included segment EBITDA as a useful measure
for profitability and operational performance, and an additional
way to look at the economics of the segments, especially in light
of some of the Company’s more recent, larger acquisitions. Segment
EBITDA further excludes depreciation and amortization expense for
the segment. A reconciliation of segment EBIT and EBITDA to net
income can be found in the attached financial schedules.
Pitney Bowes has provided a quantitative reconciliation to GAAP
in supplemental schedules. This information can 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: declining physical
mail volumes; changes in, or loss of, our contractual relationships
with the U.S. Postal Service or posts in other major markets;
changes in postal regulations; competitive factors, including
pricing pressures, technological developments and the introduction
of new products and services by competitors; the United Kingdom's
potential exit from the European Union (Brexit); our success in
developing and marketing new products and services, and obtaining
regulatory approvals, if required; changes in banking regulations
or the loss of our Industrial Bank charter; changes in labor
conditions and transportation costs; macroeconomic factors,
including global and regional business conditions that adversely
impact customer demand, foreign currency exchange rates and
interest rates; changes in global political conditions and
international trade policies, including the imposition or expansion
of trade tariffs and other factors as more fully outlined in the
Company's 2018 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 six months ended June 30, 2019 and 2018, and
consolidated balance sheets as of June 30, 2019 and December 31,
2018 are attached.
Pitney Bowes Inc. Consolidated Statements of Income
(Unaudited; in thousands, except share and per share amounts)
Three months ended June 30, Six months
ended June 30,
2019
2018
2019
2018
Revenue: Equipment sales
$
85,551
$
93,811
$
175,338
$
200,519
Supplies
46,490
55,457
97,443
115,450
Software
72,206
91,703
145,524
167,997
Rentals
18,445
19,454
40,602
44,419
Financing
92,419
97,129
189,462
197,478
Support services
127,683
138,598
256,304
279,248
Business services
417,985
369,088
824,508
756,712
Total revenue
860,779
865,240
1,729,181
1,761,823
Costs and expenses: Cost of equipment sales
58,570
58,948
122,235
121,417
Cost of supplies
11,758
15,738
25,308
32,685
Cost of software
23,419
26,957
46,802
51,086
Cost of rentals
8,418
8,464
18,133
21,212
Financing interest expense
11,043
11,194
22,407
22,258
Cost of support services
40,448
42,306
82,227
88,371
Cost of business services
337,918
290,567
664,964
584,946
Selling, general and administrative
278,545
289,427
579,527
592,237
Research and development
22,630
23,574
44,404
48,069
Restructuring charges and asset impairments, net
7,279
11,503
10,877
12,407
Interest expense, net
28,019
30,775
55,621
62,789
Other components of net pension and postretirement cost
(1,618
)
(2,499
)
(2,256
)
(4,218
)
Other (income) expense
(27
)
-
17,683
-
Total costs and expenses
826,402
806,954
1,687,932
1,633,259
Income from continuing operations before taxes
34,377
58,286
41,249
128,564
Provision for income taxes
4,099
7,899
12,400
26,694
Income from continuing operations
30,278
50,387
28,849
101,870
(Loss) income from discontinued operations, net of tax
(6,581
)
1,208
(7,811
)
9,695
Net income
$
23,697
$
51,595
$
21,038
$
111,565
Basic earnings (loss) per share (1): Continuing operations
$
0.17
$
0.27
$
0.16
$
0.54
Discontinued operations
(0.04
)
0.01
(0.04
)
0.05
Net income
$
0.13
$
0.28
$
0.12
$
0.60
Diluted earnings (loss) per share (1): Continuing operations
$
0.17
$
0.27
$
0.16
$
0.54
Discontinued operations
(0.04
)
0.01
(0.04
)
0.05
Net income
$
0.13
$
0.27
$
0.12
$
0.59
Weighted-average shares used in diluted earnings per share
178,280,533
188,113,750
182,638,896
188,056,884
(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 share amounts)
Assets
June 30, 2019
December 31, 2018
Current assets: Cash and cash equivalents
$
771,042
$
867,262
Short-term investments
59,516
59,391
Accounts and other receivables, net
419,776
456,138
Short-term finance receivables, net
682,828
752,773
Inventories
73,347
62,279
Current income taxes
22,474
5,947
Other current assets and prepayments
132,878
100,625
Assets of discontinued operations
-
4,854
Total current assets
2,161,861
2,309,269
Property, plant and equipment, net
416,512
410,114
Rental property and equipment, net
36,917
46,228
Long-term finance receivables, net
554,075
536,369
Goodwill
1,754,610
1,766,511
Intangible assets, net
212,596
227,137
Operating lease assets
180,983
156,788
Noncurrent income taxes
63,013
66,326
Other assets
377,420
419,677
Total assets
$
5,757,987
$
5,938,419
Liabilities and stockholders'
equity Current liabilities: Accounts payable and accrued
liabilities
$
1,295,712
$
1,390,362
Current operating lease liabilities
34,612
37,208
Current portion of long-term debt
214,927
199,535
Advance billings
211,061
229,379
Current income taxes
6,011
15,284
Liabilities of discontinued operations
-
3,276
Total current liabilities
1,762,323
1,875,044
Long-term debt
3,029,246
3,066,073
Deferred taxes on income
264,191
254,353
Tax uncertainties and other income tax liabilities
45,586
39,548
Noncurrent operating lease liabilities
154,648
127,237
Other noncurrent liabilities
449,021
474,322
Total liabilities
5,705,015
5,836,577
Stockholders' equity: Cumulative preferred stock, $50 par
value, 4% convertible
-
1
Cumulative preference stock, no par value, $2.12 convertible
-
396
Common stock, $1 par value
323,338
323,338
Additional paid-in-capital
105,341
121,475
Retained earnings
5,282,374
5,279,682
Accumulated other comprehensive loss
(907,678
)
(948,961
)
Treasury stock, at cost
(4,750,403
)
(4,674,089
)
Total stockholders' equity
52,972
101,842
Total liabilities and stockholders' equity
$
5,757,987
$
5,938,419
Pitney Bowes Inc. Business Segment Revenue
(Unaudited; in thousands)
Three months ended June 30,
Six months ended June 30,
2019
2018
% Change
2019
2018
% Change
REVENUE Global Ecommerce
$
282,319
$
239,100
18%
$
548,573
$
485,690
13%
Presort Services
128,138
122,730
4%
262,985
257,188
2%
Commerce Services
410,457
361,830
13%
811,558
742,878
9%
North America Mailing
303,417
318,901
(5%)
618,891
659,712
(6%)
International Mailing
74,699
92,806
(20%)
153,208
191,236
(20%)
Small & Medium Business Solutions
378,116
411,707
(8%)
772,099
850,948
(9%)
Software Solutions
72,206
91,703
(21%)
145,524
167,997
(13%)
Total revenue
$
860,779
$
865,240
(1%)
$
1,729,181
$
1,761,823
(2%)
Reconciliation of reported revenue to revenue
excludingcurrency and Market Exits Total revenue
$
860,779
$
865,240
(1%)
$
1,729,181
$
1,761,823
(2%)
Currency impact on revenue
7,224
-
17,207
Revenue, at constant currency
868,003
865,240
0%
1,746,388
1,761,823
(1%)
Less revenue from Market Exits
(2,356)
(14,014)
(8,369)
(28,893)
Revenue, excluding currency and Market Exits
$
865,647
$
851,226
2%
$
1,738,019
$
1,732,930
0%
Pitney Bowes Inc. Business Segment EBIT &
EBITDA (Unaudited; in thousands)
Three Months Ended
June 30,
2019
2018
% change
EBIT (1) D&A EBITDA EBIT (1)
D&A EBITDA EBIT EBITDA
Global Ecommerce
$ (15,576)
$ 16,883
$ 1,307
$ (5,993)
$ 15,467
$ 9,474
>(100%)
(86%)
Presort Services
15,462
7,087
22,549
12,565
6,623
19,188
23%
18%
Commerce Services
(114)
23,970
23,856
6,572
22,090
28,662
>(100%)
(17%)
North America Mailing
112,804
9,794
122,598
120,139
8,049
128,188
(6%)
(4%)
International Mailing
11,934
2,115
14,049
13,091
2,322
15,413
(9%)
(9%)
Small & Medium Business Solutions
124,738
11,909
136,647
133,230
10,371
143,601
(6%)
(5%)
Software Solutions
2,002
2,356
4,358
18,433
2,564
20,997
(89%)
(79%)
Segment Total
$ 126,626
$ 38,235
164,861
$ 158,235
$ 35,025
193,260
(20%)
(15%)
Reconciliation of Segment EBITDA to Net Income:
Segment depreciation and amortization (2)
(38,235)
(35,025)
Unallocated corporate expenses
(43,785)
(46,477)
Restructuring charges and asset impairments, net
(7,279)
(11,503)
Gain on disposition of businesses
27
-
Interest, net
(39,062)
(41,969)
Transaction costs
(2,150)
-
Provision for income taxes
(4,099)
(7,899)
Income from continuing operations
30,278
50,387
(Loss) income from discontinued operations, net of tax
(6,581)
1,208
Net income
$ 23,697
$ 51,595
Six Months Ended June 30,
2019
2018
% change
EBIT (1) D&A EBITDA EBIT (1)
D&A EBITDA EBIT EBITDA
Global Ecommerce
$ (30,176)
$ 33,341
$ 3,165
$ (13,704)
$ 29,897
$ 16,193
>(100%)
(80%)
Presort Services
30,528
14,008
44,536
39,591
12,785
52,376
(23%)
(15%)
Commerce Services
352
47,349
47,701
25,887
42,682
68,569
(99%)
(30%)
North America Mailing
223,417
16,234
239,651
248,707
15,548
264,255
(10%)
(9%)
International Mailing
23,724
4,533
28,257
29,113
5,932
35,045
(19%)
(19%)
Small & Medium Business Solutions
247,141
20,767
267,908
277,820
21,480
299,300
(11%)
(10%)
Software Solutions
3,694
4,836
8,530
20,925
4,808
25,733
(82%)
(67%)
Segment Total
$ 251,187
$ 72,952
324,139
$ 324,632
$ 68,970
393,602
(23%)
(18%)
Reconciliation of Segment EBITDA to Net Income:
Segment depreciation and amortization (2)
(72,952)
(68,970)
Unallocated corporate expenses
(99,474)
(97,559)
Restructuring charges and asset impairments, net
(10,877)
(12,407)
Loss on disposition of businesses
(17,683)
-
Interest, net
(78,028)
(85,047)
Transaction costs
(3,876)
(1,055)
Provision for income taxes
(12,400)
(26,694)
Income from continuing operations
28,849
101,870
(Loss) income from discontinued operations, net of tax
(7,811)
9,695
Net income
$ 21,038
$ 111,565
(1) Segment EBIT excludes interest, taxes, general
corporate expenses, restructuring charges, and other items that are
not allocated to a particular business segment. (2) Includes
depreciation and amortization expense of reporting segments only,
and excludes corporate depreciation and amortization expense of
$5,213 and $5,572 for the three months ended June 30, 2019 and
2018, respectively, and $9,861 and $11,365 for the six months ended
June 30, 2019 and 2018, respectively.
Pitney Bowes Inc.
Reconciliation of Reported Consolidated Results to Adjusted
Results (Unaudited; in thousands, except per share amounts)
Three months ended June 30, Six months ended June
30,
2019
2018
2019
2018
Reconciliation of reported net income to adjusted
earnings Net income
$
23,697
$
51,595
$
21,038
$
111,565
Loss (income) from discontinued operations, net of tax
6,581
(1,208
)
7,811
(9,695
)
Restructuring charges and asset impairments, net
5,252
8,461
7,911
9,132
(Gain) loss on disposition of businesses
(27
)
-
19,396
-
Transaction costs
1,602
-
2,891
786
Tax legislation
-
(5,980
)
-
(5,980
)
Adjusted net income
37,105
52,868
59,047
105,808
Provision for income taxes, as adjusted
6,674
16,921
14,638
36,216
Interest, net
39,062
41,969
78,028
85,047
Adjusted EBIT
82,841
111,758
151,713
227,071
Depreciation and amortization
43,448
40,597
82,813
80,335
Adjusted EBITDA
$
126,289
$
152,355
$
234,526
$
307,406
Reconciliation of reported diluted earnings per share to
adjusteddiluted earnings per share Diluted earnings per share
$
0.13
$
0.27
$
0.12
$
0.59
Loss (income) from discontinued operations, net of tax
0.04
(0.01
)
0.04
(0.05
)
Restructuring charges and asset impairments, net
0.03
0.04
0.04
0.05
(Gain) loss on disposition of businesses
(0.00
)
-
0.11
-
Transaction costs
0.01
-
0.02
0.00
Tax legislation
-
(0.03
)
-
(0.03
)
Adjusted diluted earnings per share
$
0.21
$
0.28
$
0.32
$
0.56
Note: The sum of the earnings per share amounts may not
equal the totals due to rounding.
Reconciliation of
reported net cash from operating activities to freecash flow
Net cash provided by operating activities
$
16,925
$
85,040
$
86,782
$
154,493
Net cash used in (provided by) operating activities - discontinued
operations
3,267
(16,916
)
6,881
(41,772
)
Capital expenditures
(32,441
)
(50,640
)
(61,327
)
(79,481
)
Restructuring payments
6,139
11,943
14,283
27,528
Reserve account deposits
14,720
(695
)
(8,316
)
5,959
Transaction costs paid
4,269
1,444
6,108
4,037
Free cash flow
$
12,879
$
30,176
$
44,411
$
70,764
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190806005112/en/
Editorial - Bill Hughes Chief Communications Officer
203/351-6785
Financial - Adam David VP, Investor Relations 203/351-7175
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