STAMFORD, Conn. — (BUSINESS WIRE) — May 2, 2018 — Pitney Bowes Inc. (NYSE: PBI), a global technology company that provides commerce solutions in the areas of ecommerce, shipping, mailing, and data, today announced its financial results for the first quarter 2018.
Quarterly Financial Results:
- Revenue of $983 million, an increase of 18 percent as reported and 15 percent at constant currency versus prior year
- GAAP EPS of $0.28; Adjusted EPS of $0.30
- GAAP cash from operations of $83 million; free cash flow of $65 million
- The Company is reaffirming its annual guidance and updating solely to reflect the impact of the definitive agreement for the sale of Production Mail and its supporting software.
Transaction Signed and Debt Management:
- On April 30, 2018, the Company announced it signed a definitive agreement to sell Production Mail and its supporting software to Platinum Equity for $361 million, subject to certain adjustments. The Company expects proceeds from the sale of approximately $270 million, net of estimated closing costs, transaction fees and taxes. The Company expects to use the majority of the net proceeds from the sale to pay down debt.
- The Company repaid its March 2018 notes for $250 million using repatriated non-U.S. cash.
“Our performance continues to show that Pitney Bowes is moving to growth and our strategy is delivering results,” said Marc B. Lautenbach, President and CEO, Pitney Bowes. “Revenue was strong in the quarter as our business continues to shift to the higher-growth markets. Our first quarter results demonstrate that we are making progress which sets us up to deliver our financial commitments for the year.”
On April 30, 2018, Pitney Bowes announced that it signed a definitive agreement for the sale of its Document Management Technologies (DMT) production mail business to Platinum Equity for $361 million, subject to certain adjustments. The company expects proceeds from the sale of approximately $270 million, net of estimated closing costs, transaction fees and taxes. Also, included in the transaction is the enterprise mail, print and data management software that integrates data with print streams to optimize document output for high-volume production mailers. The transaction is likely to be completed late in the second or early in the third quarter subject to customary closing conditions. Pitney Bowes expects to use the majority of the net proceeds from the sale to pay down debt.
“Our decision to sell our DMT production mail business is the result of a thorough evaluation of the best opportunity for long-term growth for both DMT and Pitney Bowes,” said Lautenbach. “As a stand-alone business, DMT will have greater flexibility and opportunity to build on its industry-leading portfolio, create greater market opportunity and deliver new client value. For Pitney Bowes, this transaction supports our move to higher growth markets and aligns with our strategic intent to do in the shipping market what we’ve done in mailing for almost 100 years – enabling global commerce by taking out the complexity and enhancing the value for clients.”
First Quarter 2018 Results
Revenue totaled $983 million, which was an increase of 18 percent as reported and 15 percent at constant currency versus prior year.
Commerce Services revenue grew 73 percent as reported and 71 percent at constant currency. Small and Medium Business (SMB) Solutions revenue declined 6 percent as reported and 8 percent at constant currency. Software Solutions revenue increased 4 percent as reported and 1 percent at constant currency. Production Mail revenue increased 9 percent as reported and 6 percent at constant currency.
GAAP earnings per diluted share (GAAP EPS) were $0.28, which included $0.01 for transaction costs largely related to the sale of Production Mail and its supporting software. Adjusted earnings per diluted share (Adjusted EPS) were $0.30.
The Company’s earnings per share results for the first quarter are summarized in the table below:
| First Quarter* | ||||||||||
| 2018 | 2017 | |||||||||
| GAAP EPS | $0.28 | $0.35 | ||||||||
| Transaction costs | $0.01 | - | ||||||||
| Restructuring charges, net | - | $0.01 | ||||||||
| Adjusted EPS | $0.30 | $0.36 | ||||||||
