Pitney Bowes Announces Full Year and Q4 2015 Financial Results
Tuesday, February 02, 2016
Press release from the issuing company
STAMFORD, Conn. - Pitney Bowes Inc., a global technology company that provides products and solutions that power commerce, today reported financial results for the full year and the fourth quarter 2015. The Company also provided annual guidance for 2016.
Fourth Quarter 2015:
“We made substantial progress against our strategic objectives in 2015 and entered 2016 in a stronger position," said Marc B. Lautenbach, President and CEO, Pitney Bowes. “In the fourth quarter, most of our businesses performed in-line with our long term expectations; however, our Software business fell short of what we had expected. As we look forward, we continue to feel good about where we are in our transformation and our ability to deliver long term value to our shareholders.”
FULL YEAR 2015 RESULTS
For the full year, revenue totaled $3.6 billion, a decline of 3 percent on a constant currency basis and 6 percent on a reported basis when compared to the prior year. As part of its previously announced go-to-market strategy, in 2014 the Company exited a non-core product line in Norway and transitioned from a direct sales model to a dealer sales network in six smaller European markets for the International Mailing and Production Mail segments. For comparative purposes, revenue for 2015 would have declined 2 percent on a constant currency basis when revenue in the current and prior years is adjusted for the impact of these divested revenues.
On a Generally Accepted Accounting Principles (GAAP) basis, earnings per diluted share were $2.03.
Adjusted earnings per diluted share from continuing operations were $1.75 and exclude:
Earnings per share for the year were reduced by $0.07 due to the impacts of foreign exchange. Additionally, adjusted earnings per share were adversely impacted by the 33.5 percent tax rate, which was at the high-end of the Company’s guidance range primarily due to a greater percentage of U.S. sourced income.
Free cash flow for the year was $456 million and the Company generated $515 million of cash from operations on a GAAP basis. In addition to investing in the business, the Company used the cash to pay $150 million in dividends to its common shareholders; repurchase $135 million worth of its common stock and make $62 million in restructuring payments during the year. In comparison to the prior year, free cash flow was lower primarily due to the timing of working capital requirements.
FOURTH QUARTER 2015 RESULTS
Revenue totaled $937 million, a decline of 2 percent on a constant currency basis and 5 percent on a reported basis when compared to the prior year.
Revenue benefited from 14 percent growth on a constant currency basis and 11 percent growth on a reported basis in the Digital Commerce Solutions group, driven by growth in Global Ecommerce offset partially by lower results in the Software segment.
Revenue in the Enterprise Business Solutions group grew 1 percent on a constant currency basis and declined 2 percent on a reported basis. This resulted from continued growth in Presort Services offset by a decline in Production Mail.
In the Small and Medium Business (SMB) Solutions group, revenue declined 3 percent on a constant currency basis and 6 percent on a reported basis. North America Mailing had a decline of only one percent for equipment sales in the U.S. compared to the prior year. Total revenue for International Mailing had the lowest rate of decline on a constant currency basis since the implementation of the new go-to-market strategy.
On a GAAP basis, earnings per diluted share were $0.44 for the fourth quarter.
Adjusted earnings per diluted share from continuing operations were $0.48 and exclude:
Earnings per share this quarter were reduced by $0.02 due to the impacts of foreign exchange.
Free cash flow during the quarter was $157 million, which was similar to the prior year. The Company generated $164 million of cash from operations on a GAAP basis. The Company used the cash to pay $37 million in dividends to its common shareholders; repurchase $35 million worth of its common stock and make $16 million in restructuring payments.
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