STAMFORD, Conn. — (BUSINESS WIRE) — January 31, 2018 — Pitney Bowes Inc. (NYSE: PBI), a global technology company providing innovative technology solutions to power commerce, today reported financial results for the full year and the fourth quarter 2017. The Company has also provided annual guidance for 2018.

Full Year 2017:

• Revenue of $3.5 billion, an increase of 4 percent versus prior year largely driven by the Newgistics acquisition
• GAAP EPS of $1.39; Adjusted EPS of $1.41
• GAAP cash from operations of $496 million; free cash flow of $384 million
• Total debt increased $465 million versus prior year, which was largely attributable to the Newgistics acquisition

Fourth Quarter 2017:

• Revenue of $1.0 billion, an increase of 18 percent as reported and 17 percent at constant currency versus prior year
• GAAP EPS of $0.48; Adjusted EPS of $0.40
• GAAP cash from operations of $165 million; free cash flow of $145 million
• Acquired Newgistics for $475 million; transaction closed on October 2, 2017
• Redeemed $350 million of debt prior to the scheduled maturity in May 2018

“For the fourth quarter and full year, we moved our company to growth,” said Marc Lautenbach, President and CEO. “We saw our full year revenue grow in four out of our six segments and our total revenue showed positive growth on both a reported basis and excluding the impact of the Newgistics acquisition.

Lautenbach continued: “Pitney Bowes is a different company today than it was five years ago. Our strategy is working and the investments we have made for the long-term across all of our businesses are paying off. While we are pleased with the progress we are making, there is more to do to transform our Company and unlock shareholder value.”

Full Year 2017 Results

Revenue totaled $3.5 billion, an increase of 4 percent versus prior year.

GAAP earnings per diluted share (GAAP EPS) were $1.39, which included $0.21 for restructuring and asset impairments charges, $0.03 for transaction costs, a $0.01 loss for the extinguishment of debt and a $0.03 gain from the sale of technology.

GAAP EPS also included an estimated one-time, non-cash net benefit of $39 million, or $0.21 per share, recorded on the provision for income tax line related to the enactment of the Tax Cuts and Jobs Act of 2017 (Tax Legislation). This net benefit is comprised of a $130 million benefit related to the remeasurement of net U.S. deferred tax liabilities arising from a lower U.S. corporate tax rate offset by an estimated one-time tax charge of $91 million related primarily to a U.S. tax on the unremitted earnings of the Company’s foreign subsidiaries.

Adjusted earnings per diluted share (Adjusted EPS) were $1.41. The Company’s tax rate on adjusted earnings was 24.2 percent for the year.

GAAP cash from operations was $496 million and free cash flow was $384 million. During the year, the Company used cash to return $139 million in dividends to shareholders and to pay $41 million for restructuring payments.

Fourth Quarter 2017 Results

Revenue totaled $1.0 billion, which was an increase of 18 percent as reported and 17 percent at constant currency versus prior year.

Digital Commerce Solutions revenue grew 86 percent as reported and 84 percent at constant currency. Enterprise Business Solutions revenue increased 10 percent as reported and 8 percent at constant currency. Small and Medium Business (SMB) Solutions revenue declined 5 percent as reported and 7 percent at constant currency.

GAAP EPS were $0.48, which included $0.10 for restructuring charges related to the Company’s additional $200 million gross spend reduction initiatives, which will occur over the next 2 years, $0.01 for transaction costs, a $0.01 loss for the extinguishment of debt and a net benefit of $0.21 due to Tax Legislation.

Adjusted EPS were $0.40.

GAAP cash from operations was $165 million and free cash flow was $145 million. Compared to the prior year, free cash flow decreased by $19 million primarily due to lower adjusted net income. During the quarter, the Company used cash to return $35 million in dividends to shareholders and to pay $11 million for restructuring payments.