Pitney Bowes Announces Q2 Financial Results
Thursday, July 30, 2015
STAMFORD, Conn. - 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 2015.
Quarterly Financial Results:
- Revenue of $881 million, a decline of 4 percent on a constant currency basis and a decline of 8 percent as reported. Revenue declined 3 percent versus the prior year when adjusted for the impacts of currency and the divestiture of certain European revenue streams in the prior year.
- Adjusted EPS of $0.45; GAAP EPS of $0.75. Adjusted EPS includes a $0.02 negative impact for currency translation during the quarter.
- Free cash flow of $84 million; GAAP cash from operations of $96 million.
- Established new segment reporting.
- Increasing annual GAAP EPS guidance as a result of the net gain on the sale of Imagitas; partially offset by costs associated with the Borderfree acquisition; restructuring and asset impairment charges; and other expenses.
- Updating revenue guidance to reflect results year-to-date.
- Updating annual adjusted EPS and free cash flow guidance solely to reflect the impacts of the Borderfree acquisition and Imagitas sale.
Transactions Completed During the Quarter
- Acquisition of Borderfree for approximately $400 million, inclusive of transaction fees and net of cash on Borderfree’s balance sheet.
- Sale of the Marketing Services business, Imagitas, which will generate net proceeds of approximately $270 million, net of transaction fees, cash on their balance sheet and taxes when paid.
- Sale of former World Headquarters building for $39 million.
“We are at an inflection point in our transformation where the cumulative effects of the steps we have taken over the past 30 months position us for long-term growth and profitability,” said Marc B. Lautenbach, President and CEO of Pitney Bowes. “While we continued to make progress on our way to transform Pitney Bowes, our second quarter financial results were mixed. Our Presort Services business performed well and our North American Small and Medium Business continued to improve. However, growth in our Ecommerce business was negatively affected by the strong dollar and our performance in Europe was below our expectations.
“That said, the actions we have taken over the last two years have strengthened our hand and improved our competitive position. As a result, we are poised for sustained improvement in the second half and beyond. For this reason, we will begin executing our authorized share repurchase program with the intent to complete the program by the end of this year.”