Welcome!

Microsoft Cloud Authors: Liz McMillan, Pat Romanski, John Basso, Elizabeth White, Mihai Corbuleac

News Feed Item

Pitney Bowes Announces Fourth Quarter and Annual Results for 2012

Pitney Bowes Inc. (NYSE: PBI) today reported financial results for the fourth quarter and full year 2012.

Highlights

  • Fourth quarter revenue of $1.3 billion; Adjusted EPS of $0.56; GAAP EPS of $0.55.
    • Year-over-year revenue growth in Management Services; first since 2008.
    • Year-over-year revenue growth in International Mailing, Software and Mail Services.
    • Revenue trends continue to improve in the SMB group.
  • Full year revenue of $4.9 billion; Adjusted EPS of $2.18, which includes a first quarter $0.11 per share tax benefit; GAAP EPS of $2.21.
  • Full year free cash flow of $769 million.
  • Results reflect International Mail Services (IMS) as a discontinued operation.
  • The Board of Directors approved a first quarter 2013 dividend of $0.375 per share for the Company’s common stock.

President and Chief Executive Officer, Marc Lautenbach, commented, “In my brief tenure here, I have been impressed by the Company’s assets and our opportunities to deliver long-term value to shareholders and customers. I am working with the management team to develop strategies for driving growth and on-going profitability as the Company continues to transform.”

Fourth Quarter 2012 Results

Revenue in the fourth quarter totaled $1.3 billion, a decline of one percent compared to the prior year period, on both a reported and constant currency basis. The year-over-year revenue comparison this quarter is an improvement in the revenue trends as a result of growth in four of the business segments.

Earnings per diluted share (EPS), as reported under Generally Accepted Accounting Principles (GAAP), for the fourth quarter were $0.55, which includes a net charge of $0.07 per share for restructuring. GAAP earnings per share also include income of $0.06 per share from discontinued operations, which is the net of $0.07 per share of income from the resolution of tax matters and a loss of less than $0.02 per share associated with the expected sale of the International Mail Services (IMS) business. GAAP EPS for the fourth quarter 2011 were $1.28, which included charges totaling $0.72 per share for goodwill, restructuring and asset impairments, as well as income of $1.03 per share in discontinued operations, which was primarily related to a net tax benefit from the resolution of tax matters.

Adjusted earnings per diluted share from continuing operations for the fourth quarter of 2012 and 2011 exclude any goodwill, restructuring and asset impairment charges. For the fourth quarter 2012, adjusted EPS were $0.56 per share, as compared with $0.98 in the same period in the 2011. In comparison, 2011 fourth quarter adjusted EPS from continuing operations also included a $0.37 per share benefit related to favorable tax settlements. Excluding this tax benefit, the comparable 2011 fourth quarter adjusted EPS from continuing operations were $0.61 per share.

Full Year 2012 Results

For the full year, revenue totaled $4.9 billion, a decline of 4 percent compared with the prior year on a reported basis and a decline of 3 percent excluding the impact of currency fluctuations.

Earnings per diluted share on a GAAP basis for 2012 were $2.21, which includes $0.08 per share net charge for restructuring, as well as a net benefit of $0.06 per share from the sale of leveraged lease assets. GAAP earnings per share also include income of $0.05 per share from discontinued operations, which is the net of $0.17 per share of income from the resolution of tax matters and a loss of $0.12 per share associated with the IMS business. GAAP EPS for 2011 were $3.05 per share, which included charges totaling $0.89 per share for goodwill, restructuring and asset impairments; a tax charge in continuing operations of $0.02 per share; a net benefit of $0.13 per share related to the sale of leveraged lease assets; as well as income in discontinued operations of $1.07 per share which was the net of $1.31 per share of income from the resolution of tax matters primarily related to the former Capital Services business and a loss of $0.24 per share associated with IMS.

Adjusted EPS per diluted share from continuing operations exclude goodwill, restructuring and asset impairment charges; the net benefit from the sale of leveraged lease assets; and net tax charges. For 2012 adjusted EPS were $2.18 per share, which includes a first quarter $0.11 per share net tax benefit. 2011 adjusted EPS per diluted share from continuing operations were $2.75 per share, which included a $0.44 per share net tax benefit. Excluding these benefits in adjusted EPS, comparable adjusted EPS from continuing operations for 2012 were $2.07 per share versus $2.31 per share for 2011.

The Company’s results for the quarter and the year are summarized in the table below:

                     
Earnings Per Share Reconciliation*   Q4 2012   Q4 2011       FY 2012   FY 2011
Adjusted EPS from continuing operations before net tax benefit   $0.56   $0.61 $2.07   $2.31
Net tax benefit   -   $0.37 $0.11   $0.44
Adjusted EPS from continuing operations   $0.56   $0.98 $2.18   $2.75
Restructuring and asset impairments   ($0.07)   ($0.31) ($0.08)   ($0.48)
Goodwill charge   -   ($0.41) -   ($0.41)
Tax charge   -   - -   ($0.02)
Sale of leveraged lease assets   -   - $0.06   $0.13
GAAP EPS from continuing operations   $0.49   $0.25 $2.16   $1.98
Discontinued operations – income (loss)   $0.06   $1.03 $0.05   $1.07
GAAP EPS   $0.55   $1.28       $2.21   $3.05
*2012 and 2011 results reflect the International Mail Services (IMS) business as a discontinued operation.
The sum of the earnings per share may not equal the totals above due to rounding.
 

Free Cash Flow Results

Free cash flow during the quarter was $253 million and $769 million for the year. On a GAAP basis, the Company generated $256 million in cash from operations for the quarter and $660 million for the year. During the fourth quarter, the Company used cash to pay $84 million in dividends. For the year, the Company has used its cash primarily to reduce debt, pay dividends, contribute to its pension plans and make restructuring payments.

Business Segment Results

SMB Solutions Group

             
  4Q 2012   Y-O-Y Change   Change ex Currency
Revenue $644 million (3%) (3%)
EBIT   $200 million   (9%)    
 

Within the SMB Solutions Group:

North America Mailing

  4Q 2012   Y-O-Y Change   Change ex Currency
Revenue $456 million (6%) (6%)
EBIT   $174 million   (11%)    
 

During the quarter, North America Mailing revenue was impacted by lower recurring revenue streams, although at a slower rate than previous quarters. Equipment sales revenue for the segment declined 3 percent, which is a continuation of the year-over-year improvement in trend, in part due to increased placements of SendSuiteLive™ shipping solutions in the U.S. and growth in equipment sales in Canada. Additionally, meter placements in Canada continued to grow for the second consecutive quarter.

EBIT margin for the segment declined versus the prior year as a result of fewer lease extensions on existing equipment and the decline in higher margin recurring revenue streams.

International Mailing

  4Q 2012   Y-O-Y Change   Change ex Currency
Revenue $188 million 3% 4%
EBIT   $ 26 million   10%    
 

International Mailing revenue benefited from increased equipment sales in the Nordics. Revenue also benefited from increased placements of Connect+™ mailing systems, particularly in France where it was recently launched, offset by the impact of the overall economic environment in Europe. EBIT margin improved year-over-year primarily due to improved service margins and productivity initiatives.

Enterprise Business Solutions Group

             
  4Q 2012   Y-O-Y Change   Change ex Currency
Revenue $643 million 1% 1%
EBIT   $ 77 million   (9%)  

 

 

Within the Enterprise Business Solutions Group:

Worldwide Production Mail

  4Q 2012   Y-O-Y Change   Change ex Currency
Revenue $152 million (6%) (6%)
EBIT   $ 14 million   (30%)    
 

Production Mail revenue experienced a significant increase in the backlog of orders, especially in North America, as the outlook improved and some larger orders were written at the end of the year. These orders are expected to have a positive impact on revenue in future periods. However, revenue in the fourth quarter was negatively impacted due to global economic uncertainty experienced earlier in the year and the comparison against a strong quarter last year. EBIT margin declined when compared to the prior year due to lower revenue, the mix of equipment sales and continued investment in Volly™. Excluding the investment in Volly, EBIT margin would have been approximately 510 basis points higher this quarter.

Software

           
  4Q 2012   Y-O-Y Change   Change ex Currency
Revenue $105 million 2% 2%
EBIT   $ 18 million   172%    
 

Software revenue increased versus the prior year in part due to the growth in large licensing deals, particularly in the Americas. However, there continued to be weakness in the European and Asian markets because of ongoing economic uncertainty and continued austerity measures in the public sector. EBIT margin increased versus the prior year due to revenue growth and the benefits of productivity initiatives.

Management Services

  4Q 2012   Y-O-Y Change   Change ex Currency
Revenue $242 million 5% 5%
EBIT   $ 19 million   11%    
 

Management Services revenue improved year-over-year for the first time since 2008 as a result of positive net new written business in prior quarters and an increased volume of documents processed in the quarter. There continued to be positive net new written business this quarter, which is expected to drive recurring revenue growth in future periods. EBIT margin benefited from revenue growth and continued expense management.

Mail Services

  4Q 2012   Y-O-Y Change   Change ex Currency
Revenue $113 million 3% 2%
EBIT   $ 20 million   (43%)    
 

Mail Services revenue improved in the fourth quarter as a result of continued penetration in workshare discount categories, as well as increased co-transportation of mail for customers. Revenue also benefited from an increase in the use of the Company’s ecommerce solutions for cross-border package delivery. EBIT margin comparisons with the prior year were impacted by a $9 million insurance reimbursement in the fourth quarter of last year. EBIT margin this quarter was also affected by the start-up investment in the Company’s new ecommerce offering. Excluding prior year’s insurance reimbursement, the underlying EBIT margin for the presort business continued to be in line with prior year.

Marketing Services

  4Q 2012   Y-O-Y Change   Change ex Currency
Revenue $ 32 million (5%) (5%)
EBIT   $ 6 million   (1%)    
 

Marketing Services revenue declined in part due to lower household move volumes during the quarter, while the EBIT margin improved due to lower print production costs and ongoing productivity initiatives.

Executive Vice President and Chief Financial Officer, Michael Monahan, commented, “During the quarter, the Company continued to invest in several growth initiatives, including ecommerce and Volly, which are expected to help drive future revenue. We remain focused on our cost structure to support the changing mix of our business and to gain leverage as revenue improves. The Company will continue to take actions, as necessary, to reduce costs and make the appropriate investments in the business to drive shareholder returns.”

2013 Annual Guidance

This guidance discusses future results which are inherently subject to unforeseen risks and developments. As such, discussions about the business outlook should be read in the context of an uncertain future, as well as the risk factors identified in the safe harbor language at the end of this release and as more fully outlined in the Company's 2011 Form 10-K Annual Report and other reports filed with the Securities and Exchange Commission.

In 2013, the Company expects revenue growth in its Enterprise Solutions Group and a moderation in the decline of revenue in its SMB Solutions Group. Revenue in 2013 is expected to benefit from growth in the Company’s new ecommerce, print outsourcing and software solutions. The Company also expects revenue to benefit from improving trends in equipment sales, including increased placements of Connect+ and SendSuiteLive; as well as a moderation in the decline of its recurring revenue streams. The Company expects that the economic and postal environments will not improve or deteriorate significantly in 2013 as compared to 2012.

The Company’s 2013 guidance is as follows:

  • Revenue, excluding the impacts of currency, to be in the range of flat to 3 percent growth when compared to 2012;
  • GAAP earnings per diluted share from continuing operations to be in the range of $1.85 to $2.00, which excludes any unusual items that may occur during the year;
  • Free cash flow to be in the range of $600 million to $700 million.

The Company expects that it will make continued investments in its growth initiatives that will result in higher expenses in the first half of the year, but are anticipated to lead to greater revenue and margin contribution in the second half of the year. Additionally, it is expected that the decline in recurring revenue streams will continue to moderate and will have less of an impact on revenue and earnings in the second half of the year.

Conference Call and Webcast

Management of Pitney Bowes will discuss the Company’s results in a broadcast over the Internet today at 8:00 a.m. EST. Instructions for listening to the earnings results via the Web are available on the Investor Relations page of the Company’s web site at www.pb.com.

About Pitney Bowes

Delivering more than 90 years of innovation, Pitney Bowes provides business communications software, mailing systems and services that integrate physical and digital communications channels. Long known for making its customers more productive, Pitney Bowes is increasingly helping other companies grow their business through advanced customer communications management. Pitney Bowes is a $5 billion company with 29,000 employees worldwide. Pitney Bowes: Every connection is a new opportunity™. www.pb.com

The Company's financial results are reported in accordance with generally accepted accounting principles (GAAP). The Company uses measures such as adjusted earnings per share, adjusted income from continuing operations and free cash flow to exclude the impact of special items like restructuring charges, tax adjustments, and asset write-downs, because, while these are actual Company expenses, they can mask underlying trends associated with our business. Such items are often inconsistent in amount and frequency and as such, the adjustments allow an investor greater insight into the current underlying operating trends of the business.

The use of free cash flow provides investors insight into the amount of cash that management could have available for other discretionary uses. It adjusts GAAP cash from operations for capital expenditures, as well as special items like cash used for restructuring charges, unusual tax payments and contributions to its pension funds. Management uses segment EBIT to measure profitability and performance at the segment level. EBIT is determined by deducting the related costs and expenses attributable to the segment. Segment EBIT excludes interest, taxes, general corporate expenses not allocated to a particular business segment, restructuring charges, asset impairments, and goodwill charges which are recognized on a consolidated basis. In addition, financial results are presented on a constant currency basis to exclude the impact of changes in foreign currency exchange rates since the prior period under comparison. Constant currency measures are intended to help investors better understand the underlying operational performance of the business excluding the impacts of shifts in currency exchange rates over the intervening period.

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 our expected or potential future business and financial performance. For us forward-looking statements include, but are not limited to, statements about our 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; 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 our control as more fully outlined in the Company's 2011 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 months and twelve months ended December 31, 2012 and 2011, and consolidated balance sheets at December 31, 2012 and 2011 are attached.

       
Pitney Bowes Inc.
Consolidated Statements of Income
(Unaudited)
 
(Dollars in thousands, except per share data)
Three months ended December 31, Twelve months ended December 31,
2012

2011 (2)

2012

2011 (2)

Revenue:
Equipment sales $ 281,772 $ 280,365 $ 938,289 $ 986,392
Supplies 69,815 72,246 283,604 307,974
Software 110,385 108,301 412,762 426,606
Rentals 141,445 151,926 569,619 618,990
Financing 121,435 134,311 495,130 547,269
Support services 173,243 175,798 689,667 706,505
Business services   389,212     382,208     1,514,944     1,528,860  
 
Total revenue   1,287,307     1,305,155     4,904,015     5,122,596  
 
Costs and expenses:
Cost of equipment sales 149,861 132,782 459,051 449,479
Cost of supplies 22,141 23,089 87,569 97,454
Cost of software 24,427 25,566 92,708 99,107
Cost of rentals 28,098 30,770 115,356 138,603
Financing interest expense 19,755 20,783 81,140 87,698
Cost of support services 105,750 107,815 440,055 452,582
Cost of business services 298,767 287,354 1,156,828 1,161,429
Selling, general and administrative 410,281 425,473 1,598,286 1,690,360
Research and development 32,390 40,873 136,908 148,645
Restructuring charges and asset impairments 22,291 84,087 23,117 136,548
Goodwill impairment - 84,500 - 84,500
Other interest expense 27,967 29,357 115,228 115,363
Interest income (2,189 ) (1,093 ) (7,982 ) (5,795 )
Other income, net   -     (9,200 )   1,138     (19,918 )
 
Total costs and expenses   1,139,539     1,282,156     4,299,402     4,636,055  
 
Income from continuing operations before income taxes 147,768 22,999 604,613 486,541
 
Provision for income taxes   44,224     (32,170 )   150,305     67,610  
 
Income from continuing operations 103,544 55,169 454,308 418,931
 
Income from discontinued operations, net of income tax   11,387     206,899     9,231     216,924  
 
Net income before attribution of noncontrolling interests 114,931 262,068 463,539 635,855
 
Less: Preferred stock dividends of subsidiaries attributable
to noncontrolling interests   4,594     4,594     18,376     18,375  
 
Net income - Pitney Bowes Inc. $ 110,337   $ 257,474   $ 445,163   $ 617,480  
 
 
Amounts attributable to common stockholders:
Income from continuing operations $ 98,950 $ 50,575 $ 435,932 $ 400,556
Income from discontinued operations   11,387     206,899     9,231     216,924  
 
Net income - Pitney Bowes Inc. $ 110,337   $ 257,474   $ 445,163   $ 617,480  
 

Basic earnings per share attributable to common stockholders (1):

Continuing operations 0.49 0.25 2.18 1.98
Discontinued operations   0.06     1.04     0.05     1.07  
 
Net income - Pitney Bowes Inc. $ 0.55   $ 1.29   $ 2.22   $ 3.06  
 
Diluted earnings per share attributable to common stockholders (1):
Continuing operations 0.49 0.25 2.16 1.98
Discontinued operations   0.06     1.03     0.05     1.07  
 
Net income - Pitney Bowes Inc. $ 0.55   $ 1.28   $ 2.21   $ 3.05  
 
(1)   The sum of the earnings per share amounts may not equal the totals above due to rounding.
 
(2) Certain prior year amounts have been reclassified to conform to the current year presentation.
 

   
Pitney Bowes Inc.
Consolidated Balance Sheets
(Unaudited in thousands, except per share data)
 
Assets 12/31/12 12/31/11
Current assets:
Cash and cash equivalents $ 913,276 $ 856,238
Short-term investments 36,611 12,971
 
Accounts receivable, gross 755,218 755,485
Allowance for doubtful accounts receivable   (26,968 )   (31,855 )
Accounts receivable, net 728,250 723,630
 
Finance receivables 1,213,776 1,296,673
Allowance for credit losses   (25,484 )   (45,583 )
Finance receivables, net 1,188,292 1,251,090
 
Inventories 179,678 178,599
Current income taxes 51,836 102,556
Other current assets and prepayments   114,184     134,774  
 
Total current assets 3,212,127 3,259,858
 
Property, plant and equipment, net 385,377 404,146
Rental property and equipment, net 241,192 258,711
 
Finance receivables 1,041,099 1,123,638
Allowance for credit losses   (14,610 )   (17,847 )
Finance receivables, net 1,026,489 1,105,791
 
Investment in leveraged leases 34,546 138,271
Goodwill 2,136,138 2,147,088
Intangible assets, net 166,214 212,603
Non-current income taxes 94,434 89,992
Other assets   563,374     530,644  
 
Total assets $ 7,859,891   $ 8,147,104  
 
Liabilities, noncontrolling interests and stockholders' equity (deficit)
Current liabilities:
Accounts payable and accrued liabilities $ 1,809,226 $ 1,840,465
Current income taxes 240,681 242,972
Notes payable and current portion of long-term obligations 375,000 550,000
Advance billings   452,130     458,425  
 
Total current liabilities 2,877,037 3,091,862
 
Deferred taxes on income 69,222 175,944
Tax uncertainties and other income tax liabilities 145,881 194,840
Long-term debt 3,642,375 3,683,909
Other non-current liabilities   718,375     743,165  
 
Total liabilities   7,452,890     7,889,720  
 
Noncontrolling interests (Preferred stockholders' equity in subsidiaries) 296,370 296,370
 
Stockholders' equity:
Cumulative preferred stock, $50 par value, 4% convertible 4 4
Cumulative preference stock, no par value, $2.12 convertible 648 659
Common stock, $1 par value 323,338 323,338
Additional paid-in-capital 223,847 240,584
Retained Earnings 4,744,802 4,600,217
Accumulated other comprehensive loss (681,213 ) (661,645 )
Treasury Stock, at cost   (4,500,795 )   (4,542,143 )
 
Total Pitney Bowes Inc. stockholders' equity (deficit)   110,631     (38,986 )
 
Total liabilities, noncontrolling interests and stockholders' equity (deficit) $ 7,859,891   $ 8,147,104  
 

 
Pitney Bowes Inc.
Revenue and EBIT
Business Segments
December 31, 2012

(Unaudited)

     
(Dollars in thousands) Three Months Ended December 31,
%
2012 2011 Change

Revenue

 
North America Mailing $ 456,243 $ 482,843 (6 %)
International Mailing   187,973     182,928   3 %
Small & Medium Business Solutions   644,216     665,771   (3 %)
 
Production Mail 151,775 161,888 (6 %)
Software 104,550 102,481 2 %
Management Services 241,880 231,378 5 %
Mail Services 112,690 109,849 3 %
Marketing Services   32,196     33,788   (5 %)
Enterprise Business Solutions   643,091     639,384   1 %
 
Total revenue $ 1,287,307   $ 1,305,155   (1 %)
 

EBIT (1)

 
North America Mailing $ 173,690 $ 195,272 (11 %)
International Mailing   25,939     23,568   10 %
Small & Medium Business Solutions   199,629     218,840   (9 %)
 
Production Mail 13,716 19,591 (30 %)
Software 17,823 6,564 172 %
Management Services 19,012 17,065 11 %
Mail Services 19,841 34,651 (43 %)
Marketing Services   6,444     6,516   (1 %)
Enterprise Business Solutions   76,836     84,387   (9 %)
 
Total EBIT $ 276,465 $ 303,227 (9 %)
 
Unallocated amounts:
Interest, net (2) (45,533 ) (49,047 )
Corporate and other expenses (60,873 ) (62,594 )
Restructuring and asset impairments (22,291 ) (84,087 )
Goodwill impairment   -     (84,500 )
 
Income from continuing operations before income taxes $ 147,768   $ 22,999  
 
(1)   Earnings before interest and taxes (EBIT) excludes general corporate expenses, restructuring charges and asset impairments and goodwill impairment.
(2) Interest, net includes financing interest expense, other interest expense and interest income.
 

 
Pitney Bowes Inc.
Revenue and EBIT
Business Segments
December 31, 2012

(Unaudited)

     
(Dollars in thousands) Twelve Months Ended December 31,
%
2012 2011 Change

Revenue

 
North America Mailing $ 1,818,952 $ 1,961,198 (7 %)
International Mailing   675,637     707,416   (4 %)
Small & Medium Business Solutions   2,494,589     2,668,614   (7 %)
 
Production Mail 512,109 544,483 (6 %)
Software 393,380 407,402 (3 %)
Management Services 920,959 948,891 (3 %)
Mail Services 445,092 411,634 8 %
Marketing Services   137,886     141,572   (3 %)
Enterprise Business Solutions   2,409,426     2,453,982   (2 %)
 
Total Revenue $ 4,904,015   $ 5,122,596   (4 %)
 

EBIT (1)

 
North America Mailing $ 688,665 $ 727,999 (5 %)
International Mailing   78,979     98,601   (20 %)
Small & Medium Business Solutions   767,644     826,600   (7 %)
 
Production Mail 25,644 32,562 (21 %)
Software 37,958 38,182 (1 %)
Management Services 55,198 76,321 (28 %)
Mail Services 101,005 103,026 (2 %)
Marketing Services   28,061     26,184   7 %
Enterprise Business Solutions   247,866     276,275   (10 %)
 
Total EBIT $ 1,015,510 $ 1,102,875 (8 %)
 
Unallocated amounts:
Interest, net (188,386 ) (197,266 )
Corporate and other expenses (199,394 ) (198,020 )
Restructuring and asset impairments (23,117 ) (136,548 )
Goodwill impairment   -     (84,500 )
 
Income from continuing operations before income taxes $

604,613

  $ 486,541  
 
(1)   Earnings before interest and taxes (EBIT) excludes general corporate expenses, restructuring charges and asset impairments and goodwill impairment.
(2) Interest, net includes financing interest expense, other interest expense and interest income.
 

 
Pitney Bowes Inc.
Reconciliation of Reported Consolidated Results to Adjusted Results
(Unaudited)
 
(Dollars in thousands, except per share data)    
 
Three Months Ended December 31, Twelve Months Ended December 31,
2012 2011 2012 2011
 
GAAP income from continuing operations
after income taxes, as reported $ 98,950 $ 50,575 $ 435,932 $ 400,556
Restructuring charges and asset impairments 15,096 62,571 15,407 97,660
Goodwill impairment - 82,890 - 82,890
Sale of leveraged lease assets - - (12,886 ) (26,689 )
Tax adjustments   -     579     -     3,539  
Income from continuing operations
after income taxes, as adjusted $ 114,046   $ 196,615   $ 438,453   $ 557,956  
 
 
GAAP diluted earnings per share from
continuing operations, as reported $ 0.49 $ 0.25 $ 2.16 $ 1.98
Restructuring charges and asset impairments 0.07 0.31 0.08 0.48
Goodwill impairment - 0.41 - 0.41
Sale of leveraged lease - - (0.06 ) (0.13 )
Tax adjustments   -     0.00     -     0.02  
Diluted earnings per share from continuing
operations, as adjusted $ 0.56   $ 0.98   $ 2.18   $ 2.75  
 
 
GAAP net cash provided by operating activities,
as reported $ 255,560 $ 198,531 $ 660,188 $ 948,987
Capital expenditures (48,770 ) (32,951 ) (176,586 ) (155,980 )
Restructuring payments 13,972 28,623 74,718 107,002
Pension contribution - - 95,000 123,000
Tax payments on sale of leveraged lease assets 14,879 - 114,128 -
Reserve account deposits   17,009     49,882     1,636     35,354  
 
Free cash flow, as adjusted $ 252,650   $ 244,085   $ 769,084   $ 1,058,363  
 
NOTE:
 
The sum of the earnings per share amounts may not equal the totals above due to rounding.
 
The above table includes an adjustment to GAAP net cash provided by operating activities due to a reclassification between net cash provided by operating activities and net cash used in investing activities. As a result, GAAP net cash provided by operating activities increased by $28.8 million for the year ended December 31, 2011, and decreased by $35.0 million for the nine months ended September 30, 2012.
 

 
Pitney Bowes Inc.
Reconciliation of Reported Consolidated Results to Adjusted Results
(Unaudited)
 
(Dollars in thousands, except per share data)      
 
Three Months Ended December 31, Twelve Months Ended December 31,
2012 2011 2012 2011
 
GAAP income from continuing operations
after income taxes, as reported $ 98,950 $ 50,575 $ 435,932 $ 400,556
Restructuring charges and asset impairments 15,096 62,571 15,407 97,660
Goodwill impairment - 82,890 - 82,890
Sale of leveraged lease assets - - (12,886 ) (26,689 )
Tax adjustments   -   579     -     3,539  
Income from continuing operations
after income taxes, as adjusted 114,046 196,615 438,453 557,956
Provision for income taxes, as adjusted 51,418 (9,623 ) 174,718 138,539
Preferred stock dividends of subsidiaries

attributable to noncontrolling interests

  4,594   4,594     18,376     18,375  
Income from continuing operations, as adjusted 170,058 191,586 631,547 714,870
Interest expense, net   45,533   49,047     188,386     197,266  
Adjusted EBIT 215,591 240,633 819,933 912,136
Depreciation and amortization   64,049   67,141     255,556     272,142  
Adjusted EBITDA $ 279,640 $ 307,774   $ 1,075,489   $ 1,184,278  

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Unless your company can spend a lot of money on new technology, re-engineering your environment and hiring a comprehensive cybersecurity team, you will most likely move to the cloud or seek external service partnerships. In his session at 18th Cloud Expo, Darren Guccione, CEO of Keeper Security, revealed what you need to know when it comes to encryption in the cloud.
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
What are the successful IoT innovations from emerging markets? What are the unique challenges and opportunities from these markets? How did the constraints in connectivity among others lead to groundbreaking insights? In her session at @ThingsExpo, Carmen Feliciano, a Principal at AMDG, will answer all these questions and share how you can apply IoT best practices and frameworks from the emerging markets to your own business.
Ask someone to architect an Internet of Things (IoT) solution and you are guaranteed to see a reference to the cloud. This would lead you to believe that IoT requires the cloud to exist. However, there are many IoT use cases where the cloud is not feasible or desirable. In his session at @ThingsExpo, Dave McCarthy, Director of Products at Bsquare Corporation, will discuss the strategies that exist to extend intelligence directly to IoT devices and sensors, freeing them from the constraints of ...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Traditional IT, great for stable systems of record, is struggling to cope with newer, agile systems of engagement requirements coming straight from the business. In his session at 18th Cloud Expo, William Morrish, General Manager of Product Sales at Interoute, outlined ways of exploiting new architectures to enable both systems and building them to support your existing platforms, with an eye for the future. Technologies such as Docker and the hyper-convergence of computing, networking and sto...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, discussed the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filterin...
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
Early adopters of IoT viewed it mainly as a different term for machine-to-machine connectivity or M2M. This is understandable since a prerequisite for any IoT solution is the ability to collect and aggregate device data, which is most often presented in a dashboard. The problem is that viewing data in a dashboard requires a human to interpret the results and take manual action, which doesn’t scale to the needs of IoT.
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2016 Silicon Valley. The 6thInternet of @ThingsExpo will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Much of IT terminology is often misused and misapplied. Modernization and transformation are two such terms. They are often used interchangeably even though they mean different things and have very different connotations. Indeed, it is somewhat safe to assume that in IT any transformative effort is likely to also have a modernizing effect, and thus, we can see these as levels of improvement efforts. However, many businesses are being led to believe if they don’t transform now they risk becoming ...
CenturyLink has announced that application server solutions from GENBAND are now available as part of CenturyLink’s Networx contracts. The General Services Administration (GSA)’s Networx program includes the largest telecommunications contract vehicles ever awarded by the federal government. CenturyLink recently secured an extension through spring 2020 of its offerings available to federal government agencies via GSA’s Networx Universal and Enterprise contracts. GENBAND’s EXPERiUS™ Application...
What does it look like when you have access to cloud infrastructure and platform under the same roof? Let’s talk about the different layers of Technology as a Service: who cares, what runs where, and how does it all fit together. In his session at 18th Cloud Expo, Phil Jackson, Lead Technology Evangelist at SoftLayer, an IBM company, spoke about the picture being painted by IBM Cloud and how the tools being crafted can help fill the gaps in your IT infrastructure.
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
The best-practices for building IoT applications with Go Code that attendees can use to build their own IoT applications. In his session at @ThingsExpo, Indraneel Mitra, Senior Solutions Architect & Technology Evangelist at Cognizant, provided valuable information and resources for both novice and experienced developers on how to get started with IoT and Golang in a day. He also provided information on how to use Intel Arduino Kit, Go Robotics API and AWS IoT stack to build an application tha...
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...