Pitney Bowes Provides Notice of Bond Repurchase
May 21 2012 - 7:30AM
Business Wire
Pitney Bowes Inc. (NYSE:PBI) today announced notice of its
election to redeem $400 million of its bonds which are scheduled to
mature in October 2012. The bonds will be repurchased substantially
with cash on the balance sheet and operating cash flow. At the end
of the first quarter 2012, the company had about $950 million in
cash and short-term investments on its balance sheet.
According to Chairman, President and CEO, Murray Martin,
“Redemption of these bonds reflects our strong free cash flow,
ongoing confidence in our business and the strength of our balance
sheet. We are a solidly profitable company and expect to generate
$700-$800 million in free cash flow this year. Our free cash flow
is sufficient to pay our dividend, reduce our debt and support
ongoing investment in our business. This action also reinforces our
support for maintaining our investment grade ratings.”
The company is reaffirming its guidance for the year for
revenue, adjusted earnings per share and free cash flow as provided
in its first quarter earnings press release.
Pitney Bowes is a $5.3 billion global leader whose products,
services and solutions deliver value within the mailstream and
beyond. For more information visit www.pitneybowes.com.
Forward-Looking Statements
This release 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 our ability to complete the redemption of the
notes; our expected free cash flow; the sufficiency of our free
cash flow; 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 2011 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.
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