PBI
$14.23
Pitney Bowes
$.42
3.04%
Earnings Details
2nd Quarter June 2017
Tuesday, August 1, 2017 7:00:01 AM
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Summary

Pitney Bowes Misses

Pitney Bowes (PBI) reported 2nd Quarter June 2017 earnings of $0.33 per share on revenue of $821.4 million. The consensus earnings estimate was $0.36 per share. The Earnings Whisper number was $0.37 per share. Revenue fell 1.7% compared to the same quarter a year ago.

The company said it expects 2017 earnings of $1.70 to $1.78 per share. The company's previous guidance was earnings of $1.70 to $1.85 per share and the current consensus earnings estimate is $1.75 per share for the year ending December 31, 2017.

Pitney Bowes Inc is a technology company that offers products and solutions that enable commerce in the areas of customer information management, location intelligence, customer engagement, shipping and mailing, and e-commerce.

Results
Reported Earnings
$0.33
Earnings Whisper
$0.37
Consensus Estimate
$0.36
Reported Revenue
$821.4 Mil
Revenue Estimate
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Pitney Bowes Announces Second Quarter 2017 Financial Results

Pitney Bowes Inc. (PBI), a global technology company providing innovative technology solutions to power commerce, today reported financial results for the second quarter 2017.

Quarterly Financial Results:

Revenue of $821 million, a decline of 2 percent as reported and flat at constant currency

-- GAAP EPS of $0.26; Adjusted EPS of $0.33

-- GAAP cash from operations of $31 million; free cash flow of $18 million

-- Issued $400 million of 5 year notes

Based on year-to-date results, the Company is narrowing its annual guidance range for revenue, adjusted EPS and free cash flow

"We continued to make progress on our strategic agenda in the second quarter, investing in our brand, systems, products, and capabilities," said Marc B. Lautenbach, President and CEO, Pitney Bowes. "While our financial performance improved in certain areas, it was short of the capabilities and the potential we have created. That said, our financial performance was indicative of a company going through a transformation. Today, we are well-positioned to take advantage of the investments we have made to create the conditions for long-term success."

Second Quarter 2017 Results

Revenue totaled $821 million for the quarter, which was a decline of two percent as reported and flat at constant currency versus prior year.

Digital Commerce Solutions revenue grew 4 percent as reported and 7 percent at constant currency. Small and Medium Business (SMB) Solutions revenue declined 3 percent as reported and 2 percent at constant currency. Enterprise Business Solutions revenue declined 4 percent as reported and 3 percent at constant currency.

GAAP earnings per diluted share (GAAP EPS) were $0.26, which included $0.09 for restructuring and asset impairment charges as well as a gain of $0.03 from the gain on sale of technology for a mining industry application, used mostly in Australia, to a channel partner. Adjusted earnings per diluted share (Adjusted EPS) were $0.33. GAAP and Adjusted EPS included a benefit of $0.05 from the resolution of tax examinations.

The Company’s earnings per share results for the second quarter are summarized in the table below:

Second Quarter*
2017
2016
GAAP EPS
$0.26
$0.28
Restructuring charges and asset impairments, net
$0.09
$0.09
Gain on sale of technology
($0.03 )
-
Discontinued operations
-
$0.01
Adjusted EPS
$0.33
$0.39
* 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 $31 million while free cash flow was $18 million. In comparison to the prior year, free cash flow decreased primarily due to the timing of accounts payable and accrued liability payments, as well as the lower net income. During the quarter, the Company used cash to pay down $150 million of debt, pay $35 million in dividends to shareholders and $7 million for restructuring payments.

Debt Management

During the quarter, the Company issued $400 million of 3.875 percent 5-year fixed rate notes. The Company used a portion of these proceeds to repay a $150 million term loan in the second quarter. The Company intends to use the remaining proceeds, together with cash on-hand and other financing options, to repay the $385 million notes that come due in September.

Second Quarter 2017 Business Segment Reporting

The Company’s business segment reporting reflects the clients served in each market and the way it manages these segments. The reporting segment groups are the SMB Solutions group; the Enterprise Business Solutions group; and the Digital Commerce Solutions group. The segment results for the quarter and prior year may not equal the subtotals for each segment group due to rounding.

The SMB Solutions group offers mailing and office shipping solutions, financing, services, and supplies 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.

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 and parcel 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 domestic retail and ecommerce shipping solutions.

SMB Solutions Group
($ millions)
Second Quarter
Y/Y
Y/Y
Revenue
2017
2016
Reported
Ex Currency
North America Mailing
$341
$343
(1 %)
-
International Mailing
95
108
(11 %)
(7 %)
SMB Solutions
$436
$451
(3 %)
(2 %)
EBIT
North America Mailing
$121
$147
(18 %)
International Mailing
14
12
12 %
SMB Solutions
$135
$159
(15 %)

North America Mailing

Equipment sales grew again this quarter driven by Mail Finishing, which includes the initial SendPro products launched last year. Field sales and inside sales, along with the web channel experienced strong growth in the quarter. This growth in equipment sales was offset by a decline in the recurring revenue streams, largely around lower service, financing and rental revenue. EBIT margin was lower than prior year largely due to the decline in recurring streams.

International Mailing

Equipment sales and recurring revenue streams both contributed to the revenue decline. The equipment sales decline was driven by weakness in the UK, France and Italy which was partially offset by growth in Japan. EBIT margin increased versus prior year due to improved equipment sales margins and lower expenses.

Enterprise Business Solutions Group
($ millions)
Second Quarter
Y/Y
Y/Y
Revenue
2017
2016
Reported
Ex Currency
Production Mail
$86
$96
(11 %)
(10 %)
Presort Services
118
116
2 %
2 %
Enterprise Business
$204
$212
(4 %)
(3 %)
EBIT
Production Mail
$ 8
$13
(41 %)
Presort Services
19
21
(9 %)
Enterprise Business
$27
$34
(21 %)

Production Mail

Equipment sales declined versus prior year largely due to lower sorter equipment placements, partially offset by higher inserter equipment sales. Support services revenue declined as a result of the shift last year of some in-house mail production clients moving to third party service bureaus who tend to self-service. EBIT margin declined from prior year primarily as a result of the decline in revenue in addition to the mix of inserter equipment sales.

Presort Services

The revenue growth was driven by higher Standard Class volumes processed along with improved revenue per piece related to Flats. EBIT margin declined from prior year driven by increased mail processing costs and the resolution of certain client contractual disputes.

Digital Commerce Solutions Group
($ millions)
Second Quarter
Y/Y
Y/Y
Revenue
2017
2016
Reported
Ex Currency
Software Solutions
$86
$90
(4 %)
(2 %)
Global Ecommerce
95
83
14 %
16 %
Digital Commerce
$181
$173
4 %
7 %
EBIT
Software Solutions
$8
$10
(26 %)
Global Ecommerce
(4 )
(1 )
>(100%)
Digital Commerce
$4
$9
(63 %)

Software Solutions

The revenue decline was driven by lower license revenue. Revenue benefited from growth in Location Intelligence license revenue but was offset by lower Customer Information Management revenue. The Company is continuing to see progress in developing the indirect channel. EBIT margin declined from prior year largely driven by the lower licensing revenue.

Global Ecommerce

The sustained double-digit revenue growth was largely driven by strong volumes in the UK outbound marketplace as well as growth in domestic shipping. The EBIT loss was driven primarily by investments in market growth opportunities. The Company continues to invest in its cross-border solutions and domestic shipping capabilities.

2017 Guidance

Based on year-to-date results, the Company is narrowing its annual guidance range for revenue, adjusted EPS and free cash flow.

The Company’s guidance for the full year 2017 is now expected to be:

Revenue, on a constant currency basis, to be in the range of flat to 1 percent growth, when compared to 2016. This has been updated from the original range of a 2 percent decline to 1 percent growth.

Adjusted EPS to be in the range of $1.70 to $1.78. This has been updated from the original range of $1.70 to $1.85.

Free cash flow to be in the range of $400 million to $430 million. This has been updated from the original range of $400 million to $460 million.

The Company is also narrowing its annual tax range on adjusted earnings. The Company now expects to be in the range of 31 percent to 33 percent as compared to the original range of 31 percent to 35 percent.

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 2016 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 and 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 2017 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 (PBI), is a global technology company powering billions of transactions - physical and digital - in the connected and borderless world of commerce. Clients around the world, including 90 percent of the Fortune 500, rely on products, solutions and services from Pitney Bowes in the areas of customer information management, location intelligence, customer engagement, shipping, mailing, and global ecommerce. And with the innovative Pitney Bowes Commerce Cloud, clients can access the broad range of Pitney Bowes solutions, analytics, and APIs to drive commerce. For additional information visit Pitney Bowes, the Craftsmen of Commerce, at www.pitneybowes.com.

Use of Non-GAAP Measures

The Company’s financial results are reported in accordance with generally accepted accounting principles (GAAP); however, in our disclosures we use certain non-GAAP measures, such as adjusted earnings before interest and taxes, Adjusted EPS, revenue growth on a constant currency basis, free cash flow and Segment EBIT.

The Company reports measures such as adjusted earnings before interest and taxes (EBIT) and Adjusted EPS and adjusted income from continuing operations to exclude the impact of special items like restructuring charges, tax adjustments, goodwill and asset write-downs, and costs related to dispositions. 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. 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 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, 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.

In addition, 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. A reconciliation of Segment EBIT to the Company’s total Net Income can be found in the Company’s attached financial schedules.

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: declining physical mail volumes; competitive factors, including pricing pressures, technological developments, the introduction of new products and services by competitors, and fuel prices; our success in developing new products and services, including digital-based products and services, obtaining regulatory approvals, if needed, of new products if required, and the market’s acceptance of these new products and services; our ability to fully utilize the new enterprise business platform in the United States and successfully implement it internationally without significant disruptions to existing operations; a breach of security, including a cyberattack or other comparable event; the continued availability and security of key information systems and the cost to comply with information security requirements and privacy laws; the success of our investment in rebranding the Company; changes in postal or banking regulations; the risk of losing some of the Company’s larger clients in the Global Ecommerce segment; macroeconomic factors, including global and regional business conditions that adversely impact customer demand, foreign currency exchange rates, interest rates and labor conditions; capital market disruptions or credit rating downgrades that adversely impact our ability to access capital markets at reasonable costs; management of outsourcing arrangements; integrating newly acquired businesses, including operations and product and service offerings; management of customer credit risk; and other factors beyond its control as more fully outlined in the Company’s 2016 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 and six months ended June 30, 2017 and 2016, and consolidated balance sheets as of June 30, 2017 and December 31, 2016 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,
2017
2016
2017
2016
Revenue:
Equipment sales
$
158,625
$
152,641
$
321,599
$
312,002
Supplies
63,228
65,274
130,046
137,325
Software
86,664
90,615
164,531
168,673
Rentals
95,999
102,869
195,869
206,959
Financing
83,653
91,609
169,398
189,032
Support services
115,299
131,418
234,146
259,678
Business services
217,903
201,460
442,422
406,806
Total revenue
821,371
835,886
1,658,011
1,680,475
Costs and expenses:
Cost of equipment sales
77,189
78,055
146,751
149,594
Cost of supplies
19,909
19,624
41,380
40,314
Cost of software
24,795
26,983
50,103
53,798
Cost of rentals
21,576
18,415
42,238
38,910
Financing interest expense
12,843
13,495
25,817
28,410
Cost of support services
73,190
74,742
146,544
149,991
Cost of business services
153,063
140,830
303,906
276,368
Selling, general and administrative
297,468
289,116
603,771
615,998
Research and development
32,958
34,513
64,814
61,081
Restructuring charges and asset impairments, net
26,927
26,076
29,009
33,009
Interest expense, net
27,600
20,799
53,276
40,100
Total costs and expenses
767,518
742,648
1,507,609
1,487,573
Income before income taxes
53,853
93,238
150,402
192,902
Provision for income taxes
4,952
33,394
36,368
70,418
Income from continuing operations
48,901
59,844
114,034
122,484
Loss from discontinued operations, net of tax
-
(1,660 )
-
(1,660 )
Net income
48,901
58,184
114,034
120,824
Less: Preferred stock dividends attributable to noncontrolling
-
4,594
-
9,188
interests
Net income - Pitney Bowes Inc.
$
48,901
$
53,590
$
114,034
$
111,636
Amounts attributable to common stockholders:
Net income from continuing operations
$
48,901
$
55,250
$
114,034
$
113,296
Loss from discontinued operations, net of tax
-
(1,660 )
-
(1,660 )
Net income - Pitney Bowes Inc.
$
48,901
$
53,590
$
114,034
$
111,636
Basic earnings per share attributable to common stockholders (1):
Continuing operations
$
0.26
$
0.29
$
0.61
$
0.60
Discontinued operations
-
(0.01 )
-
(0.01 )
Net income - Pitney Bowes Inc.
$
0.26
$
0.29
$
0.61
$
0.59
Diluted earnings per share attributable to common stockholders (1):
Continuing operations
$
0.26
$
0.29
$
0.61
$
0.59
Discontinued operations
-
(0.01 )
-
(0.01 )
Net income - Pitney Bowes Inc.
$
0.26
$
0.28
$
0.61
$
0.59
Weighted-average shares used in diluted earnings per share
187,377,059
188,362,278
186,944,571
190,806,261
(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)
June 30,
December 31,
Assets
2017
2016
Current assets:
Cash and cash equivalents
$
840,564
$
764,522
Short-term investments
164,716
38,448
Accounts receivable, net
389,262
455,527
Short-term finance receivables, net
857,764
893,950
Inventories
121,478
92,726
Current income taxes
28,732
11,373
Other current assets and prepayments
89,061
68,637
Total current assets
2,491,577
2,325,183
Property, plant and equipment, net
327,140
314,603
Rental property and equipment, net
182,997
188,054
Long-term finance receivables, net
662,384
673,207
Goodwill
1,604,320
1,571,335
Intangible assets, net
152,019
165,172
Noncurrent income taxes
75,105
74,806
Other assets
541,806
524,773
Total assets
$
6,037,348
$
5,837,133
Liabilities and stockholders’ equity
(deficit)
Current liabilities:
Accounts payable and accrued liabilities
$
1,339,287
$
1,378,822
Current income taxes
17,349
34,434
Current portion of long-term debt
985,291
614,485
Advance billings
291,180
299,878
Total current liabilities
2,633,107
2,327,619
Deferred taxes on income
214,287
204,289
Tax uncertainties and other income tax liabilities
51,112
61,276
Long-term debt
2,543,476
2,750,405
Other noncurrent liabilities
565,993
597,204
Total liabilities
6,007,975
5,940,793
Stockholders’ equity (deficit):
Cumulative preferred stock, $50 par value, 4% convertible
1
1
Cumulative preference stock, no par value, $2.12 convertible
463
483
Common stock, $1 par value
323,338
323,338
Additional paid-in-capital
131,691
148,125
Retained earnings
5,152,241
5,107,734
Accumulated other comprehensive loss
(859,315 )
(940,133 )
Treasury stock, at cost
(4,719,046 )
(4,743,208 )
Total Pitney Bowes Inc. stockholders’ equity (deficit)
29,373
(103,660 )
Total liabilities and stockholders’ equity (deficit)
$
6,037,348
$
5,837,133
Pitney Bowes Inc.
Business Segments - Revenue and EBIT
(Unaudited; in thousands)
Three months ended June 30,
Six months ended June 30,
2017
2016 (1)
% Change
2017
2016 (1)
% Change
Revenue
North America Mailing
$ 341,096
$ 343,218
(1 %)
$
696,674
$
714,671
(3 %)
International Mailing
95,322
107,581
(11 %)
188,380
212,567
(11 %)
Small & Medium Business Solutions
436,418
450,799
(3 %)
885,054
927,238
(5 %)
Production Mail
85,570
95,874
(11 %)
174,525
183,299
(5 %)
Presort Services
118,452
115,765
2 %
251,129
243,161
3 %
Enterprise Business Solutions
204,022
211,639
(4 %)
425,654
426,460
(0 %)
Software Solutions
86,425
90,464
(4 %)
164,645
168,386
(2 %)
Global Ecommerce
94,506
82,984
14 %
182,658
158,391
15 %
Digital Commerce Solutions
180,931
173,448
4 %
347,303
326,777
6 %
Total revenue
$ 821,371
$ 835,886
(2 %)
$ 1,658,011
$ 1,680,475
(1 %)
EBIT
North America Mailing
$ 120,877
$ 146,897
(18 %)
$
261,885
$
307,728
(15 %)
International Mailing
13,969
12,468
12 %
27,238
23,644
15 %
Small & Medium Business Solutions
134,846
159,365
(15 %)
289,123
331,372
(13 %)
Production Mail
7,631
12,914
(41 %)
16,595
19,738
(16 %)
Presort Services
19,270
21,214
(9 %)
49,987
50,124
(0 %)
Enterprise Business Solutions
26,901
34,128
(21 %)
66,582
69,862
(5 %)
Software Solutions
7,555
10,151
(26 %)
10,304
7,579
36 %
Global Ecommerce
(4,030 )
(683 )
>(100%)
(8,300 )
(4,152 )
(100 %)
Digital Commerce Solutions
3,525
9,468
(63 %)
2,004
3,427
(42 %)
Segment EBIT (2)
$ 165,272
$ 202,961
(19 %)
$
357,709
$
404,661
(12 %)
Reconciliation of segment EBIT to net income
Segment EBIT
$ 165,272
$ 202,961
$
357,709
$
404,661
Corporate expenses
(50,134 )
(48,777 )
(105,290 )
(106,544 )
Adjusted EBIT
115,138
154,184
252,419
298,117
Interest, net (3)
(40,443 )
(34,294 )
(79,093 )
(68,510 )
Restructuring charges and asset impairments, net
(26,927 )
(26,076 )
(29,009 )
(33,009 )
Gain on sale of technology
6,085
-
6,085
-
Acquisition/disposition related expenses
-
(576 )
-
(3,696 )
Income before income taxes
53,853
93,238
150,402
192,902
Provision for income taxes
(4,952 )
(33,394 )
(36,368 )
(70,418 )
Income from continuing operations
48,901
59,844
114,034
122,484
Loss from discontinued operations, net of tax
-
(1,660 )
-
(1,660 )
Net income
$
48,901
$
58,184
$
114,034
$
120,824
(1)
Prior period amounts have been recast to conform to the current year
presentation.
(2)
Segment EBIT excludes interest, taxes, general corporate expenses,
restructuring charges, and other items that are not allocated to a
particular business segment.
(3)
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 June 30,
Six months ended June 30,
2017
2016
Y/Y Chg.
2017
2016
Y/Y Chg.
Reconciliation of reported revenue to revenue excluding
currency
Revenue, as reported
$ 821,371
$ 835,886
(2 %)
$ 1,658,011
$ 1,680,475
(1 %)
Unfavorable impact on revenue due to currency
10,621
NM
20,166
NM
Revenue, excluding currency
$ 831,992
$ 835,886
(0 %)
$ 1,678,177
$ 1,680,475
(0 %)
Reconciliation of reported net income to adjusted earnings
Net income
$
48,901
$
58,184
$
114,034
$
120,824
Loss from discontinued operations, net of tax
-
1,660
-
1,660
Restructuring charges and asset impairments, net
17,751
16,931
19,104
21,559
Gain on sale of technology
(5,605 )
-
(5,605 )
-
Acquisition/disposition related expenses
-
364
-
2,539
Net income, as adjusted
61,047
77,139
127,533
146,582
Provision for income taxes, as adjusted
13,648
42,751
45,793
83,025
Income from continuing operations before income taxes, as adjusted
74,695
119,890
173,326
229,607
Interest, net
40,443
34,294
79,093
68,510
EBIT, as adjusted
115,138
154,184
252,419
298,117
Depreciation and amortization
43,865
45,238
88,160
89,538
EBITDA, as adjusted
$ 159,003
$ 199,422
$
340,579
$
387,655
Reconciliation of reported diluted earnings per share to
adjusted diluted earnings per share
Diluted earnings per share
$
0.26
$
0.28
$
0.61
$
0.59
Loss from discontinued operations, net of tax
-
0.01
-
0.01
Restructuring charges and asset impairments, net
0.09
0.09
0.10
0.11
Gain on sale of technology
(0.03 )
-
(0.03 )
-
Acquisition/disposition related expenses
-
-
-
0.01
Diluted earnings per share, as adjusted
$
0.33
$
0.39
$
0.68
$
0.72
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 free cash flow
Net cash provided by operating activities (1)
$
30,641
$
95,091
$
184,647
$
158,584
Capital expenditures
(40,701 )
(30,689 )
(76,621 )
(71,359 )
Restructuring payments
6,600
12,210
19,016
33,866
Pension contribution
-
-
-
36,731
Reserve account deposits
21,860
9,110
2,514
(7,143 )
Other
-
146
-
335
Free cash flow
$
18,400
$
85,868
$
129,556
$
151,014
(1)
Net cash provided by operating activities for the three and six
months ended June 30, 2016 has been revised for a new accounting
standard adopted January 1, 2017.

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SOURCE: Pitney Bowes Inc.

Pitney Bowes Inc.
Editorial
Bill Hughes, 203-351-6785
Chief Communications Officer
or
Financial
Adam David, 203-351-7175
VP, Investor Relations