Pitney Bowes Inc. (NYSE:PBI) today reported second quarter 2011
results.
Revenue for the quarter was $1.3 billion, an increase of one
percent compared with the prior year. As expected, revenue growth
was reduced by approximately one percent this quarter as a result
of lower revenues associated with the fire that destroyed the
company’s Dallas presort facility in the first quarter of this
year. Revenue also included a 3 percent benefit from foreign
currency translation. There was continued growth in equipment and
software sales during the quarter. The combined recurring revenue
streams of supplies, rentals and financing declined about 3 percent
versus the prior year, which was a lower rate of decline than both
the prior quarter and the prior year.
Adjusted earnings per diluted share from continuing operations
for the second quarter was $0.52 compared with $0.48 for the prior
year. Adjusted earnings per diluted share would have been $0.03
higher except for the reduction in earnings resulting from lower
revenue related to the Dallas presort facility fire. Adjusted
earnings per diluted share was also reduced by about $0.01 related
to the company’s investment in its new digital mail communications
platform, Volly™. The company expects it will be reimbursed by its
insurance carriers for the $0.05 per diluted share in year-to-date
lost earnings related to lower revenue and expenses associated with
the presort facility fire.
Earnings per diluted share for the quarter on a Generally
Accepted Accounting Principles (GAAP) basis was $0.49 compared with
$0.30 per diluted share for the prior year. GAAP earnings per
diluted share for the quarter included $0.02 for restructuring
charges and asset impairments associated with the company’s
Strategic Transformation initiatives and less than $0.01 each for a
tax charge associated with out-of-the money stock options that
expired during the quarter and a loss associated with discontinued
operations.
The company’s earnings per share results for the quarter are
summarized in the table below:
Second Quarter Adjusted EPS from Continuing
Operations $0.52
Restructuring Charges
and Asset Impairments ($0.02)
GAAP
EPS $0.49
*The sum of the earnings per share does not equal the totals
above due to rounding and the impacts of tax charges and
discontinued operations as noted above.
Free cash flow for the quarter was $269 million, while on a GAAP
basis the company generated $153 million in cash from operations.
Free cash flow during the quarter benefited from the timing of tax
payments and refunds; an improvement in working capital; and lower
finance receivables. During the quarter, the company made $123
million in contributions to its U.S. pension fund; used $85 million
of cash for dividends; and repurchased 2.1 million shares of its
outstanding common stock for $50 million. Year-to-date, the company
has generated $554 million in free cash flow and on a GAAP basis
$449 million in cash from operations, which was used primarily to
pay dividends, fund its pension fund and buyback stock.
Commenting on the quarter, Chairman, President and CEO Murray D.
Martin said, “During the quarter we continued to see the benefits
of our ongoing actions to lay the foundation for long-term growth
and profitability across our business portfolio. We were able to
improve our EBIT margin, particularly in our SMB businesses and
Software, despite an unsettled global economic environment. Strong
enterprise customer demand fueled good revenue growth in Software
and Production Mail.
“The flexibility provided by our improved processes, enhanced
productivity, and streamlined operations from Strategic
Transformation has also allowed us to make investments in new
solutions and customer experience. We have continued to expand our
cloud-based family of customer communications solutions for small
and medium businesses. In addition to pbSmartPostage™, our
internet-based postage solution, and pbSmart™Connections, our email
marketing and communications platform, we now have pbSmartMarketer™
and are in pilot with pbSmart™Codes. pbSmartMarketer allows
businesses to identify potential new customers modeled after their
existing customer base; create customized direct mail marketing
campaigns; and track and measure the success of those campaigns.
pbSmartCodes is a web-based software solution that enables
businesses to create interactive marketing campaigns using a unique
Quick Response or QR code.
“In addition, we are advancing our market development activities
with large mailers and planning for a consumer roll out of Volly,
our secure digital mail delivery system.
“We have accomplished a lot already because of our Strategic
Transformation initiatives, but there is much more we expect to
achieve before the year is finished. The disciplined, integrated
approach that we have taken to our operations and markets will
continue to drive a more variable cost structure, even after the
formal program ends.”
Business Segment Results
The company reports its business segments in two groups based on
the customers it primarily serves: Small and Medium Business (SMB)
Solutions and Enterprise Business Solutions. The SMB Solutions
group consists of the company’s global Mailing operations. The
company aligns its SMB business segments into North America Mailing
and International Mailing to reflect how the business is managed.
North America Mailing includes the operations of U.S. Mailing and
Canada Mailing. International Mailing includes all other SMB
operations around the world. The Enterprise Business Solutions
group includes the company’s global Production Mail, Software,
Management Services, Mail Services and Marketing Services
operations.
SMB Solutions
2Q 2011 Y-O-Y
Change Revenue $670 million (1%)
EBIT
$203 million 3%
Within the SMB Solutions Group:
North America Mailing
2Q 2011 Y-O-Y Change
Revenue $494 million (5%) EBIT $176 million
(2%)
In North American Mailing during the quarter, there were
increased placements of the company’s Connect+ TM mailing systems
and positive growth in equipment sales in Canada. However, overall
equipment sales declined in part because of an increase in lease
extensions. Lease extensions are profitable transactions but
generate less sales revenue than new equipment leases. For the
second consecutive quarter combined recurring supplies, rentals and
financing revenue streams declined at a lower rate than previous
quarters indicating a continuation of an improving trend. In total,
revenue declined 5 percent compared to the prior year, including a
one percent benefit from currency.
EBIT margin for the segment improved by 110 basis points versus
the prior year. EBIT benefited from ongoing productivity
initiatives, lower credit losses and extensions of customer leases.
As revenue growth improves, the segment is positioned for continued
EBIT improvement.
International Mailing
2Q 2011 Y-O-Y Change
Revenue $176 million 13% EBIT $ 27 million
56%
International Mailing revenue grew on a reported basis and was
slightly positive excluding the benefit from currency. There was
positive growth in equipment sales during the quarter, driven
largely by increasing equipment sales in France and also sales of
Connect+ in the UK. As in the U.S., stream revenue declined at a
moderating rate. Financing revenue was flat with the prior year,
reflecting an improvement in equipment sales growth and a higher
percentage of equipment being leased. Rental and supplies revenue
declined only slightly.
EBIT margin improved by 420 basis points versus the prior year
in part as productivity initiatives are driving positive leverage
from revenue growth.
Enterprise Business Solutions
2Q 2011 Y-O-Y
Change Revenue $645 million 4%
EBIT
$ 55 million 12%
Within the Enterprise Business Solutions Group:
Production Mail
2Q 2011 Y-O-Y Change
Revenue $134 million 10% EBIT $ 9 million
2%
Production Mail revenue grew 10 percent including a 5 percent
benefit from currency. Revenue growth was driven by strong sales of
the company’s high-speed, high-integrity inserting systems in North
America and Asia. The company also had a good quarter of written
business in Europe and Asia for both inserting and high-speed
Intellijet™ color printing systems, while the U.S. experienced
lower relative written business. EBIT margin for the quarter
increased substantially for the Production Mail business when
compared with the prior year, however, this improvement was offset
by start-up costs related to Volly.
Software
2Q 2011 Y-O-Y Change
Revenue $ 100 million 19% EBIT $ 10 million
67%
During the quarter, Software revenue grew 19 percent, including
a 7 percent benefit from currency. Revenue growth was driven
primarily by strong demand worldwide for the company’s customer
communication and data management software solutions, especially in
the financial services sector. The company had particularly good
growth in high margin licensing revenue and continued to write
multi-year licensing arrangements for some of its larger deals.
These multi-year arrangements will increase the proportion of
recurring revenue in future periods.
EBIT increased 67 percent year-over-year and EBIT margin
improved by 280 basis points driven by margin leverage on revenue
expansion and the mix of software sales.
Management Services
2Q 2011 Y-O-Y Change
Revenue $240 million (3%) EBIT $ 20 million
(10%)
Management Services revenue declined 3 percent compared to the
prior year, including a 3 percent benefit from currency. The
expected decline was a result of account contractions and
terminations in the U.S. last year. However, net new written
business improved significantly both in the U.S. and Europe during
the quarter. This should benefit revenue in coming quarters. EBIT
margin in the U.S. again improved as the company continues to move
towards a more variable cost structure for its labor. However, the
EBIT margin in Europe declined due to lower volume-driven revenue
and investments to position the business for growth in customer
communications management.
Mail Services
2Q 2011 Y-O-Y Change
Revenue $134 million 4% EBIT $ 10 million
89%
Revenue for Mail Services grew 4 percent while EBIT grew 89
percent. The year-over-year impact of a one-time adjustment last
year of $21 million to revenue and $16 million to EBIT, to correct
rates used to estimate unbilled International Mail Services (IMS)
revenue in prior periods, was partially offset by the effects of
the company’s Dallas presort facility fire.
The disruption caused by the facility fire in Dallas resulted in
the loss of more than $9 million in revenue and about $9 million in
EBIT in the quarter. At the end of June, the company opened a new
mail processing facility in Dallas reestablishing its unique
ability to achieve a high level of presort discounts nationally.
The company expects that the facility will be operating at full
efficiency by the end of the third quarter. As of today’s date, the
company has received approximately $25 million as partial payment
from insurance companies, of which $15 million was received prior
to June 30, 2011. The company expects to recognize in income the
portion of these and future proceeds related to business
interruption and other recoveries as allocations of these proceeds
are resolved with the insurance companies.
Excluding the impact of the fire this year, increasing Standard
Mail volume processed through the company’s presort network led
continued growth in presort revenue and EBIT margin improvement.
Excluding the prior year adjustment, revenue in the international
mail portion of the business declined due to a lower volume of mail
and packages shipped.
Marketing Services
2Q 2011 Y-O-Y Change
Revenue $ 36 million (3%) EBIT $ 7 million
(7%)
Revenue in Marketing Services declined 3 percent because of
fewer household moves compared with the prior year and the
transition of online marketing revenue during the quarter. EBIT was
impacted by lower revenue and ongoing investments in new services,
including the MyMove start-up. MyMove is a recently launched
on-line service for movers that allows individuals who are moving
to opt-in to various move-relevant products and services. Click
through rates from the traditional MoverSource product to MyMove
have been increasing steadily.
2011 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.
The company is reaffirming its adjusted earnings per diluted
share, its GAAP earnings per diluted share and its free cash flow
guidance. However, the company is modifying its revenue guidance
for the year as a result of the impact of the presort facility fire
in Dallas, and the overall economic outlook, particularly given the
slow business recovery in the SMB markets in the first half of the
year.
The company now expects 2011 revenue, excluding the impacts of
currency, to be in a range of minus 2 to positive one percent
growth.
The company’s 2011 guidance for adjusted diluted earnings per
share from continuing operations is unchanged and is summarized
below:
2011 Earnings
Guidance Reconciliation
Full Year 2010 Adjusted EPS
$2.23 Operations Growth Excluding SMB Stream
Revenues* $0.32 to $0.42 Impact
of Lower SMB Stream Revenues*
($0.30 to $0.25)
2011 EPS on a Comparative Basis
$2.25 to $2.40 Investment in
Volly Market Development ($0.10
to $0.05)
2011 Adjusted EPS from Continuing Operations
$2.15 to $2.35
*Stream revenues include financing, rentals and supplies in the
SMB Solutions Group
In 2011, the company anticipates generating incremental earnings
of $0.32 to $0.42 per share from operations growth and
productivity, excluding the impact of SMB stream revenues. As noted
previously, the company anticipates lower SMB stream revenues as a
result of lower equipment sales in prior periods, which are
expected to negatively impact earnings by $0.25 - $0.30 per share,
resulting in comparative earnings for the year of $2.25 to $2.40
per share. The company also plans to invest $.05 to $.10 per share
to develop the market for Volly, a secure digital mail delivery
system. As a result of improved margins, the company expects 2011
adjusted earnings per share from continuing operations to remain in
the range of $2.15 to $2.35.
The company’s 2011 guidance for GAAP diluted earnings per share
from continuing operations is summarized below:
Full Year 2011 Adjusted EPS from Continuing
Operations $2.15 to $2.35
Restructuring Charges and Asset Impairments
($0.35 to $0.25)
2011 GAAP EPS from Continuing
Operations $1.80 to $2.10
The company expects 2011 GAAP earnings per diluted share from
continuing operations in the range of $1.80 to $2.10 including the
expected impact of $0.25 to $0.35 per share for restructuring
charges and asset impairments associated with Strategic
Transformation.
Earnings per share guidance assumes recoveries this year of
losses related to the Dallas fire.
As part of negotiations to settle the company’s 2001 to 2004 IRS
examination, in July the company and the IRS agreed on the tax
treatment of a number of issues and agreed to revised tax
calculations. As a result, the company anticipates paying nearly
$400 million of tax and interest for the years 2001 to 2004 by
releasing previously funded tax bonds, and as a result this payment
will not impact the company’s cash position. Additionally, the
company expects to reduce tax reserves in the third quarter by
about $50 million (with about $30 million recorded in Discontinued
Operations). The impact of this agreement is not included in the
company’s earnings guidance for the year.
The company continues to expect to generate free cash flow for
2011 in the range of $750 million to $850 million.
Management of Pitney Bowes will discuss the company’s results in
a broadcast over the Internet today at 5:00 p.m. EST. 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/investorrelations.
Pitney Bowes is a $5.4 billion global leader whose products,
services and solutions deliver value within the mailstream and
beyond. For more information visit www.pitneybowes.com.
The company's financial results are reported in accordance with
generally accepted accounting principles (GAAP). However, earnings
per share, income from continuing operations, and cash from
operations are adjusted to exclude the impact of special items such
as restructuring charges, tax adjustments, accounting adjustments
and write downs of assets. Although these charges represent actual
expenses to the company, the company’s management believes these
charges may mask the periodic income and financial and operating
trends associated with our business. In addition, such items are
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 has
limitations. GAAP cash from operations has the advantage of
including all cash available to the company after actual
expenditures for all purposes. The company’s management believes
that free cash flow permits an investor insight into the amount of
cash that management could have available for other discretionary
uses. It adjusts GAAP cash from operations for long-term
commitments such as capital expenditures, as well as special items
like cash used for restructuring charges, unusual tax payments and
contributions to its pension funds. These items use cash that is
not otherwise available to the company and are important
expenditures. As a result, the company’s management compensates for
these limitations by using a combination of GAAP cash from
operations and free cash flow in doing its planning.
EBIT is determined by deducting from segment revenue the related
costs and expenses attributable to the segment. EBIT excludes
interest, taxes, general corporate expenses, restructuring charges
and asset impairments which are generally managed across the entire
company on a consolidated basis. EBIT is useful to management in
demonstrating the operational profitability of the segments and is
also used for purposes of measuring the performance of our
management team. In addition, to better understand trends in its
business, the company’s management believes that it is helpful to
adjust revenue to exclude the impact of changes in the translation
of foreign currencies into U.S. dollars. Financial results on a
constant currency basis exclude the impact of changes in foreign
currency exchange rates since the prior period under comparison and
are calculated using the average of the rates in effect during that
period. 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 intervening 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 in the
Investor Relations section.
This document contains “forward-looking statements” about our
expected or potential future business and financial performance.
For us forward-looking statements include, but are not limited to,
statements about possible transformation initiatives; restructuring
charges; our 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: the uncertain economic
environment, fluctuations in customer demand; mail volumes; foreign
currency exchange rates; the outcome of litigation; timely
development, market acceptance and regulatory approvals, if needed,
of new products; management of credit risk; management of
outsourcing arrangements; income tax or other regulatory levies;
changes in postal regulations; and the financial health of national
posts; and other factors beyond our control as more fully outlined
in the company's 2010 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, 2011 and 2010, and
consolidated balance sheets at June 30, 2011 and March 31, 2011 are
attached.
Pitney Bowes Inc.
Consolidated Statements of Income
(Unaudited)
(Dollars in thousands, except per share data) Three
Months Ended June 30, Six Months Ended June 30, 2011
2010 (2) 2011 2010 (2) Revenue:
Equipment sales $ 242,921 $ 228,089 $ 484,552 $ 467,387 Supplies
78,587 77,054 161,457 162,331 Software 105,516 88,297 205,081
172,064 Rentals 142,576 150,141 285,627 305,578 Financing 149,955
156,604 304,185 319,379 Support services 176,807 175,298 355,421
355,332 Business services 418,112 421,754
841,220 863,399 Total
revenue 1,314,474 1,297,237
2,637,543 2,645,470 Costs and expenses:
Cost of equipment sales 104,385 101,072 219,138 206,909 Cost of
supplies 25,562 24,173 51,754 49,538 Cost of software 24,898 21,207
50,110 42,363 Cost of rentals 32,809 34,310 65,408 71,381 Financing
interest expense 22,192 21,821 45,485 43,759 Cost of support
services 115,417 111,695 230,693 226,301 Cost of business services
325,250 337,652 658,817 668,124 Selling, general and administrative
436,015 426,352 865,934 869,649 Research and development 37,441
38,168 72,199 79,033 Restructuring charges and asset impairments
4,994 48,512 31,018 69,234 Other interest expense 28,550 29,204
57,074 56,862 Interest income (2,215 ) (696 )
(3,437 ) (1,458 ) Total costs and expenses
1,155,298 1,193,470 2,344,193
2,381,695 Income from continuing operations
before income taxes 159,176 103,767 293,350 263,775
Provision for income taxes 53,012 35,177
94,406 108,422 Income
from continuing operations 106,164 68,590 198,944 155,353
Loss from discontinued operations, net of income tax (635 )
(2,666 ) (2,517 ) (5,796 ) Net income
before attribution of noncontrolling interests 105,529 65,924
196,427 149,557 Less: Preferred stock dividends of
subsidiaries attributable to noncontrolling interests 4,594
4,543 9,188 9,137
Net income - Pitney Bowes Inc. $ 100,935 $ 61,381
$ 187,239 $ 140,420
Amounts attributable to Pitney Bowes Inc.: Income from continuing
operations $ 101,570 $ 64,047 $ 189,756 $ 146,216 Loss from
discontinued operations (635 ) (2,666 ) (2,517
) (5,796 ) Net income - Pitney Bowes Inc. $ 100,935
$ 61,381 $ 187,239 $ 140,420
Basic earnings per share of common stock attributable to Pitney
Bowes Inc. common stockholders (1): Continuing operations $ 0.50 $
0.31 $ 0.93 $ 0.70 Discontinued operations (0.00 )
(0.01 ) (0.01 ) (0.03 ) Net income - Pitney
Bowes Inc. $ 0.50 $ 0.30 $ 0.92 $ 0.68
Diluted earnings per share of common stock attributable to
Pitney Bowes Inc. common stockholders (1): Continuing operations $
0.50 $ 0.31 $ 0.93 $ 0.70 Discontinued operations (0.00 )
(0.01 ) (0.01 ) (0.03 ) Net income -
Pitney Bowes Inc. $ 0.49 $ 0.30 $ 0.92 $ 0.68
Average common and potential common shares
outstanding 204,084,585 208,059,314
204,227,290 207,971,931 (1)
The sum of the earnings per share amounts may not equal the
totals above due to rounding. (2) Certain prior year amounts
have been reclassified to conform to the current year presentation.
Pitney Bowes Inc.
Consolidated Balance Sheets
(Unaudited)
(Dollars in thousands, except per share data)
Assets
06/30/11 03/31/11 Current assets: Cash
and cash equivalents $ 578,448 $ 652,069 Short-term investments
45,667 28,398 Accounts receivable, gross 756,198 780,066
Allowance for doubtful accounts receivables (31,367 )
(30,073 ) Accounts receivables, net 724,831 749,993 Finance
receivables 1,328,180 1,336,881 Allowance for credit losses
(47,603 ) (47,981 ) Finance receivables, net 1,280,577
1,288,900 Inventories 177,504 180,292 Current income taxes
70,890 66,678 Other current assets and prepayments 113,052
115,683 Total current assets 2,990,969
3,082,013 Property, plant and equipment, net 429,737 420,385
Rental property and equipment, net 282,976 290,013 Finance
receivables 1,194,164 1,228,294 Allowance for credit losses
(20,305 ) (21,239 ) Finance receivables, net 1,173,859
1,207,055 Investment in leveraged leases 262,052 258,905
Goodwill 2,336,796 2,331,022 Intangible assets, net 273,830 286,686
Non-current income taxes 134,569 134,564 Other assets
484,166 486,211 Total assets $
8,368,954 $ 8,496,854
Liabilities,
noncontrolling interests and stockholders' deficit
Current liabilities: Accounts payable and accrued liabilities $
1,748,628 $ 1,757,372 Current income taxes 231,982 206,134 Notes
payable and current portion of long-term obligations 2,477 45,450
Advance billings 481,239 508,160
Total current liabilities 2,464,326 2,517,116 Deferred taxes
on income 294,656 273,379 Tax uncertainties and other income tax
liabilities 557,081 546,881 Long-term debt 4,239,965 4,236,437
Other non-current liabilities 517,725 651,761
Total liabilities 8,073,753
8,225,574 Noncontrolling interests (Preferred
stockholders' equity in subsidiaries) 296,370 296,370
Stockholders' deficit: Cumulative preferred stock, $50 par value,
4% convertible 4 4 Cumulative preference stock, no par value, $2.12
convertible 741 741 Common stock, $1 par value 323,338 323,338
Additional paid-in capital 235,504 236,633 Retained earnings
4,318,692 4,293,198 Accumulated other comprehensive loss (379,162 )
(414,496 ) Treasury stock, at cost (4,500,286 )
(4,464,508 ) Total Pitney Bowes Inc. stockholders' deficit
(1,169 ) (25,090 ) Total liabilities,
noncontrolling interests and stockholders' deficit $ 8,368,954
$ 8,496,854
Pitney Bowes Inc.
Revenue and EBIT Business Segments June 30,
2011
(Unaudited)
(Dollars in thousands)
Three
Months Ended June 30, % 2011
2010 Change
Revenue
North America Mailing $ 493,653 $ 520,581 (5 %)
International Mailing 176,158 155,579
13 % Small & Medium Business Solutions 669,811
676,160 (1 %) Production Mail 133,769 121,466
10 % Software 99,783 84,195 19 % Management Services 240,461
248,809 (3 %) Mail Services 134,273 129,139 4 % Marketing Services
36,377 37,468 (3 %) Enterprise Business
Solutions 644,663 621,077 4 %
Total revenue $ 1,314,474 $
1,297,237 1 %
EBIT
(1)
North America Mailing $ 175,786 $ 179,531 (2 %)
International Mailing 26,735 17,121 56
% Small & Medium Business Solutions 202,521
196,652 3 % Production Mail 9,223 9,010 2 %
Software 9,542 5,727 67 % Management Services 19,979 22,181 (10 %)
Mail Services 9,819 5,197 89 % Marketing Services 6,792
7,337 (7 %) Enterprise Business Solutions
55,355 49,452 12 %
Total
EBIT $ 257,876 $ 246,104 5
% Unallocated amounts: Interest, net (2) (48,527 )
(50,329 ) Corporate expense (45,179 ) (43,496 ) Restructuring
charges and asset impairments (4,994 ) (48,512 )
Income from continuing operations before income taxes
$ 159,176 $ 103,767
(1) Earnings before interest and taxes (EBIT)
excludes general corporate expenses and restructuring charges and
asset impairments. (2) Interest, net includes financing
interest expense, other interest expense and interest income.
Pitney Bowes Inc. Revenue and EBIT Business
Segments June 30, 2011
(Unaudited)
(Dollars in thousands)
Six
Months Ended June 30, % 2011
2010 Change
Revenue
North America Mailing $ 1,002,692 $ 1,055,244 (5 %)
International Mailing 346,691 327,602 6
% Small & Medium Business Solutions 1,349,383
1,382,846 (2 %) Production Mail 265,375
247,345 7 % Software 195,768 165,202 19 % Management Services
482,085 503,425 (4 %) Mail Services 278,556 277,162 1 % Marketing
Services 66,376 69,490 (4 %) Enterprise
Business Solutions 1,288,160 1,262,624
2 %
Total revenue $ 2,637,543
$ 2,645,470 (0 %)
EBIT
(1)
North America Mailing $ 355,447 $ 365,805 (3 %)
International Mailing 49,928 37,563 33
% Small & Medium Business Solutions 405,375
403,368 0 % Production Mail 16,397 20,917 (22
%) Software 15,054 9,511 58 % Management Services 41,008 42,273 (3
%) Mail Services 20,084 30,474 (34 %) Marketing Services
10,952 11,859 (8 %) Enterprise Business
Solutions 103,495 115,034 (10 %)
Total EBIT $ 508,870 $ 518,402
(2 %) Unallocated amounts: Interest, net (2)
(99,122 ) (99,163 ) Corporate expense (85,380 ) (86,230 )
Restructuring charges and asset impairments (31,018 )
(69,234 )
Income from continuing operations before income
taxes $ 293,350 $ 263,775
(1) Earnings before interest and taxes (EBIT)
excludes general corporate expenses and restructuring charges and
asset impairments. (2) Interest, net includes financing
interest expense, other interest expense and interest income.
Pitney Bowes Inc.
Reconciliation of Reported Consolidated Results to Adjusted
Results (Unaudited) (Dollars in thousands, except per
share data) Three Months Ended June 30, Six Months Ended
June 30, 2011 2010 2011
2010 GAAP income from continuing operations
after income taxes, as reported $ 101,570 $ 64,047 $ 189,756 $
146,216 Restructuring charges and asset impairments 3,563 31,870
20,869 45,397 Tax adjustments 334 3,800
2,513 21,490 Income from continuing
operations after income taxes, as adjusted $ 105,467 $
99,717 $ 213,138 $ 213,103 GAAP
diluted earnings per share from continuing operations, as reported
$ 0.50 $ 0.31 $ 0.93 $ 0.70 Restructuring charges and asset
impairments 0.02 0.15 0.10 0.22 Tax adjustments 0.00
0.02 0.01 0.10 Diluted
earnings per share from continuing operations, as adjusted $ 0.52
$ 0.48 $ 1.04 $ 1.02 GAAP
net cash provided by operating activities, as reported $ 152,640 $
122,248 $ 449,401 $ 423,802 Capital expenditures (53,341 ) (30,272
) (88,017 ) (58,639 ) Restructuring payments 22,223 39,035 51,968
66,755 Pension contribution 123,000 - 123,000 - Reserve account
deposits 24,083 30,688 18,088
19,467 Free cash flow, as adjusted $
268,605 $ 161,699 $ 554,440 $ 451,385
Note: The sum of the earnings per share amounts may not
equal the totals above due to rounding.
Pitney Bowes (NYSE:PBI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Pitney Bowes (NYSE:PBI)
Historical Stock Chart
From Jul 2023 to Jul 2024