Pitney Bowes Announces Third Quarter 2016 Financial Results
Wednesday, November 02, 2016
Press release from the issuing company
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 third quarter 2016.
Quarterly Financial Results:
“We continued to make progress against our strategic initiatives to transform Pitney Bowes,” said Marc B. Lautenbach, President and Chief Executive Officer. “Our new enterprise business platform, which was deployed in the second quarter, continues to provide operational benefits, while our new products and solutions introduced in the second and third quarter tied to the Pitney Bowes Commerce Cloud are resonating well with our clients and gaining traction.
“In the third quarter, our Global Ecommerce business turned in another strong performance and our Production Mail business delivered a solid equipment sales performance,” Lautenbach continued. “While we continue to make progress in building out our partner channel in our Software Solutions business by adding new Regional System Integrators and Location Intelligence partners in the third quarter, license revenue fell short of our expectations. In our Small and Medium Business, equipment sales rebounded after the deployment of our enterprise business platform, but there were some lingering effects that impacted our stream revenues. That said, we are confident that the actions we have put in place in the third quarter will begin to yield better results in the fourth quarter and throughout 2017.”
Third Quarter 2016 Results
Revenue totaled $839 million for the quarter, which was a decline of 4 percent versus prior year. Revenue declined 3 percent versus the prior year when adjusted for the impact of currency and declined 2 percent when adjusted for both the impact of currency and previously exited direct operations (market exits) in Mexico, South Africa and five markets in Asia.
Digital Commerce Solutions revenue declined 1 percent on a reported basis and grew 2 percent on a constant currency basis. Double-digit revenue growth in ecommerce marketplace and retail was offset by a decline in Software Solutions and office shipping revenues.
Enterprise Business Solutions revenue grew 1 percent. Revenue grew 2 percent compared to the prior year when adjusted for the impacts of currency and grew 4 percent when adjusted for currency and market exits. Revenue benefited from growth in Production Mail.
Small and Medium Business (SMB) Solutions revenue declined 7 percent. Revenue declined 6 percent when adjusted for the impacts of currency and market exits. SMB equipment sales revenue declined 1 percent globally and also within the North America Mailing segment. The North America Mailing segment’s revenue performance improved from last quarter, but is not yet fully back to the stream revenue run-rate established prior to the implementation of the new enterprise business platform. The Company expects stream revenue related to financing fees and supplies to improve from current levels.
Generally Accepted Accounting Principles earnings per diluted share (GAAP EPS) were $0.35, which included $0.06 per share for restructuring charges and a $0.03 per share charge from the announced redemption of the preferred stock of the Company’s Pitney Bowes International Holdings subsidiary.
Adjusted earnings per diluted share from continuing operations (Adjusted EPS) were $0.44. The Company uses Adjusted EPS to measure profitability and performance.
Earnings per share were favorably impacted by $0.07 per share, principally related to the resolution of tax examinations, which resulted in a lower tax rate on adjusted earnings this quarter of 21.9 percent. Including the tax benefits this quarter, the annual tax rate on adjusted earnings is expected to be at the low-end of the Company’s annual range.
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