STAMFORD, Conn. — (BUSINESS WIRE) — July 30, 2014 — Pitney Bowes Inc. (NYSE: PBI) today reported financial results for the second quarter 2014.
Highlights
- Revenue of $958 million, up 1 percent as reported and flat on a constant currency basis
- Adjusted EPS from continuing operations of $0.46
- GAAP EPS from continuing operations of $0.43; GAAP EPS of $0.46
- Free cash flow of $162 million; cash from operations of $175 million
- The Company increases 2014 guidance for revenue growth and adjusted EPS from continuing operations; narrows the range for GAAP EPS from continuing operations; and reaffirms free cash flow guidance for the year
“We are pleased with our second quarter financial results, which are consistent with our long-term strategic direction,” said Marc B. Lautenbach, President and CEO, Pitney Bowes. “Our Digital Commerce business performed very well, delivering 27 percent revenue growth, while profitability in our core mailing businesses continued to improve.
“Our performance through the first six months continues to substantiate the strategy we detailed 15 months ago, and further validates our long-term economic model. We remain ahead of schedule in our multi-year journey to transform Pitney Bowes and are confident in our ability to deliver against our objectives. As a result, we are increasing our 2014 guidance for both revenue and adjusted earnings per share.”
SECOND QUARTER 2014 RESULTS
Revenue in the second quarter totaled $958 million, which was growth of 1 percent on a reported basis and flat on a constant currency basis. On a reported basis, revenue for the quarter benefited from 27 percent growth in the Digital Commerce Solutions segment. Revenue in the Small and Medium Business (SMB) Solutions group declined 3 percent, primarily resulting from an acceleration in the implementation of the channel shift strategy. The Enterprise Business Solutions revenue declined 8 percent when compared to the prior year, which included revenue from large deals in the Production Mail segment.
Adjusted earnings per diluted share from continuing operations for the second quarter 2014 were $0.46 compared with $0.46 for the second quarter 2013, which included $0.05 per share of non-recurring tax benefits. Excluding the tax benefits in the prior year, adjusted earnings per share this year increased 11 percent versus the prior year.
Second quarter earnings per diluted share from continuing operations, on a Generally Accepted Accounting Principles (GAAP) basis were $0.43. GAAP earnings per diluted share from continuing operations included a restructuring charge of $0.03 per share associated with the previously announced cost reduction plans.
GAAP earnings per diluted share of $0.46 included income from discontinued operations of $0.03 per share.
| Earnings Per Share Reconciliation* | Q2 2014 | Q2 2013 | ||||
| Adjusted EPS from continuing operations | $0.46 | $0.46 | ||||
| Restructuring charges | ($0.03 | ) | ($0.06 | ) | ||
| GAAP EPS from continuing operations | $0.43 | $0.39 | ||||
| Discontinued operations – income (loss) | $0.03 | ($0.44 | ) | |||
| GAAP EPS | $0.46 | ($0.05 | ) | |||
| * The sum of the earnings per share may not equal the totals above due to rounding. |
