STAMFORD, Conn. — (BUSINESS WIRE) — August 2, 2016 — Pitney Bowes Inc. (NYSE: PBI), a global technology company that provides products and solutions that power commerce, today reported financial results for the second quarter 2016.
Quarterly Financial Results:
- Revenue of $836 million, a decline of 5 percent; a decline of 4 percent when adjusted for both the impact of currency and market exits.
- Revenue comparison to prior year unfavorably impacted by an estimated 2 percentage points as a result of the cutover period for the new enterprise business platform.
- GAAP EPS of $0.28; Adjusted EPS of $0.39
- GAAP cash from operations of $95 million; free cash flow of $86 million
- Repurchased 3.5 million shares of common stock.
- Updating annual revenue, adjusted EPS and free cash flow guidance.
"The second quarter was a critical period for Pitney Bowes, the progress of our strategic initiatives, and the long-term success of our Company," said Marc B. Lautenbach, President and CEO, Pitney Bowes. "During the quarter, we deployed our new enterprise business platform in the U.S., which is already delivering operational benefits across the Company; launched our Commerce Cloud, which unlocks new value for the small and medium business market and our clients; and signed agreements with several systems integrators to sell our software solutions and other products. Going forward, we remain optimistic about our ability to deliver sustained value for our shareholders, clients and employees in the second half and beyond.”
Second Quarter 2016 Results
Revenue totaled $836 million for the quarter, which was a decline of 5 percent. Revenue declined 4 percent versus the prior year when adjusted for both the impact of currency and the impact from the previously exited direct operations (market exits) in Mexico, South Africa and five markets in Asia. The revenue comparison to prior year was unfavorably impacted by an estimated $15 million to $20 million, or 2 percentage points, due to the temporary business impacts of the cutover to the new enterprise business platform in the U.S.
Digital Commerce Solutions revenue grew 11 percent on a reported basis and 12 percent on a constant currency basis. Revenue benefited from growth in Global Ecommerce, while revenue declined in Software Solutions.
Enterprise Business Solutions revenue was flat. Revenue grew 1 percent compared to the prior year when adjusted for the impacts of currency and market exits. Revenue benefited from continued growth in Presort Services.
Small and Medium Business (SMB) Solutions revenue declined 8 percent. Revenue declined 7 percent when adjusted for the impacts of currency and market exits. Within SMB, North America Mailing’s revenue comparison to prior year was unfavorably impacted by an estimated $15 million to $20 million, or 5 percentage points, due to the temporary business impacts of the cutover to the new enterprise business platform in the U.S. This impact resulted principally from lost daily sales activity and productivity during the cutover period.
Generally Accepted Accounting Principles earnings per diluted share (GAAP EPS) were $0.28, which included $0.09 per share for restructuring and asset impairment charges and $0.01 loss for discontinued operations.
Adjusted earnings per diluted share from continuing operations (Adjusted EPS) were $0.39. The Company uses Adjusted EPS to measure profitability and performance.
Earnings per share comparisons to prior year were unfavorably impacted by $0.02 per share for higher ERP related expenses; $0.02 per share for the absence of Imagitas earnings and an estimated $0.03 related to the new enterprise business platform cutover.
The Company’s earnings per share results for the quarter are summarized in the table below:
| Second Quarter* | ||||||||
|
2016 |
2015 |
|||||||
| Adjusted EPS | $ | 0.39 | $ | 0.45 | ||||
| Other income – gain on sale of Imagitas | - |
|
0.44 | |||||
| Other expense | - |
(0.05 |
) | |||||
| SG&A – compensation expense | - |
(0.04 |
) | |||||
| Restructuring and asset impairments |
(0.09 |
) |
(0.04 |
) | ||||
| Discontinued operations – (loss) |
(0.01 |
) | - | |||||
| GAAP EPS | $ | 0.28 | $ | 0.75 | ||||
| * The sum of the earnings per share may not equal the totals above due to rounding. |
