STAMFORD, Conn. — (BUSINESS WIRE) — April 30, 2014 — Pitney Bowes Inc. (NYSE: PBI) today reported financial results for the first quarter 2014.
Highlights
- First quarter results from continuing operations exclude $16 million in revenue and $0.01 in EPS for the Canadian Document Imaging Solutions (DIS) business, which is reflected as a discontinued operation
- Revenue of $937 million, growth of 3 percent over prior year
- Adjusted EPS of $0.42, growth of 15 percent over prior year, excludes debt extinguishment costs of $0.19 per share and restructuring charges of $0.03 per share
- GAAP EPS from continuing operations of $0.21; GAAP EPS of $0.22
- Free cash flow of $138 million; cash from operations of $106 million
- Despite the sale of the DIS business, the Company reaffirms its revenue growth rate, adjusted EPS and free cash flow guidance for the year; updates GAAP EPS from continuing operations guidance
- Issued $500 million of 10-year bonds and retired $500 million of debt
“We delivered another solid quarter and our actions are beginning to support our long-term economic model,” said Marc B. Lautenbach, President and CEO, Pitney Bowes. “Our core mailing businesses continued to improve and stabilize, and our Digital Commerce business posted another excellent quarter of double-digit revenue growth.
“We are off to a good start to the year,” Lautenbach continued. “The decisions we made and the actions we have taken over the past 15 months are beginning to pay off. While we have more to do, we are confident in our ability to continue to execute and deliver on our long-term financial model. Our strategy is the right one and we remain well-positioned to further capitalize on the changes in the marketplace and the requirements of our clients.”
FIRST QUARTER 2013 RESULTS
Results for the quarter reflect the DIS business as a discontinued operation. Revenue from continuing operations in the first quarter totaled $937 million, growth of 3 percent on both a reported and constant currency basis when compared to the prior year. Revenue results in the first quarter reflect the ongoing improvement in trends that the Company started to experience in 2013. Revenue for the quarter benefited from 23 percent growth in the Digital Commerce Solutions segment and from 1 percent growth in the Enterprise Business Solutions group. Revenue in the Small and Medium Business (SMB) Solutions group declined just 1 percent, which reflects the continued stabilization of revenue for this business.
Adjusted earnings per diluted share from continuing operations for the first quarter were $0.42.
First quarter earnings per diluted share from continuing operations, on a Generally Accepted Accounting Principles (GAAP) basis were $0.21. GAAP earnings per diluted share from continuing operations include a charge of $0.19 per share related to debt extinguishment costs associated with the debt tender in the quarter. Results also include restructuring charges of $0.03 per share associated with the previously announced cost reduction plans.
GAAP earnings per diluted share of $0.22 include income from discontinued operations of $0.01 per share.
| Earnings Per Share Reconciliation* | Q1 2014 | Q1 2013 | ||||||
| Adjusted EPS from continuing operations | $0.42 | $0.37 | ||||||
| Extinguishment of debt | ($0.19 | ) | ($0.08 | ) | ||||
| Restructuring charges | ($0.03 | ) |
- |
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| GAAP EPS from continuing operations | $0.21 | $0.29 | ||||||
| Discontinued operations – income (loss) | $0.01 | $0.04 | ||||||
| GAAP EPS | $0.22 |
$0.33 |
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