Pitney Bowes Announces Second Quarter 2014 Results

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 its expected or potential future business and financial performance. For us 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: mail volumes; the uncertain economic environment; timely development, market acceptance and regulatory approvals, if needed, of new products; fluctuations in customer demand; changes in postal regulations; interrupted use of key information systems; management of outsourcing arrangements; the implementation of a new enterprise resource planning system; changes in business portfolio; foreign currency exchange rates; changes in our credit ratings; management of credit risk; changes in interest rates; the financial health of national posts; and other factors beyond its control as more fully outlined in the Company's 2013 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 and six months ended June 30, 2014 and 2013, and consolidated balance sheets at June 30, 2014 and December 31, 2013 are attached.

 
Pitney Bowes Inc.
Consolidated Statements of Income

(Unaudited)

       
(Dollars in thousands, except per share data)
Three months ended June 30, Six months ended June 30,
  2014     2013     2014     2013  
Revenue:
Equipment sales $ 191,518 $ 225,224 $ 380,574 $ 421,991
Supplies 76,284 71,275 155,801 144,493
Software 109,065 100,482 200,620 187,494
Rentals 122,443 129,404 246,022 258,518
Financing 107,644 112,820 217,694 226,707
Support services 158,190 160,303 316,442 322,892
Business services   193,306     151,154     378,794     297,930  
 
Total revenue   958,450     950,662     1,895,947     1,860,025  
 
Costs and expenses:
Cost of equipment sales 88,818 112,079 171,352 206,622
Cost of supplies 23,505 22,246 47,659 45,092
Cost of software 33,484 25,604 63,648 50,395
Cost of rentals 25,193 25,114 50,637 51,512
Financing interest expense 20,413 18,951 40,066 37,970
Cost of support services 96,722 99,337 195,703 201,866
Cost of business services 135,024 108,168 263,960 210,523
Selling, general and administrative 338,384 353,923 689,759 705,577
Research and development 28,649 27,331 54,841 56,582
Restructuring charges 8,299 19,031 18,140 19,031
Other interest expense 22,714 31,347 47,631 62,086
Interest income (1,232 ) (1,302 ) (2,085 ) (3,050 )
Other expense, net   -     -     61,657     25,121  
 
Total costs and expenses   819,973     841,829     1,702,968     1,669,327  
 
Income from continuing operations before income taxes 138,477 108,833 192,979 190,698
 
Provision for income taxes   46,335     24,218     54,371     42,013  
 
Income from continuing operations 92,142 84,615 138,608 148,685
 
Income (loss) from discontinued operations, net of tax   6,717     (89,254 )   9,518     (81,224 )
 
Net income (loss) before attribution of noncontrolling interests 98,859 (4,639 ) 148,126 67,461
 
Less: Preferred stock dividends of subsidiaries attributable

to noncontrolling interests

  4,594     4,594     9,188     9,188  
 
Net income (loss) - Pitney Bowes Inc. $ 94,265   $ (9,233 ) $ 138,938   $ 58,273  
 
 
Amounts attributable to common stockholders:
Income from continuing operations $ 87,548 $ 80,021 $ 129,420 $ 139,497
Income (loss) from discontinued operations   6,717     (89,254 )   9,518     (81,224 )
 
Net income (loss) - Pitney Bowes Inc. $ 94,265   $ (9,233 ) $ 138,938   $ 58,273  
 
Basic earnings per share attributable to common stockholders (1) :
Continuing operations 0.43 0.40 0.64 0.69

Discontinued operations

  0.03     (0.44 )   0.05     (0.40 )
 
Net income (loss) - Pitney Bowes Inc. $ 0.47   $ (0.05 ) $ 0.69   $ 0.29  
 
Diluted earnings per share attributable to common stockholders (1) :
Continuing operations 0.43 0.39 0.63 0.69
Discontinued operations   0.03     (0.44 )   0.05     (0.40 )
 
Net income (loss) - Pitney Bowes Inc. $ 0.46   $ (0.05 ) $ 0.68   $ 0.29  
 
(1)   The sum of the earnings per share amounts may not equal the totals above due to rounding.
 

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