Ecommerce’s revenue growth was driven in part by a continued increase in the number of packages shipped but did reflect the unfavorable impacts of a stronger U.S. dollar on the number of purchases outbound from the U.S. Ecommerce also achieved continued expansion in its UK outbound cross-border services.
Marketing services and shipping solutions revenue continued to grow as a result of new client additions for their respective product offerings.
Software license revenue increased at a high single-digit rate on a constant currency basis, but was offset by lower professional services and maintenance revenue when compared to prior year.
EBIT margin improved even as the Company continued to invest in development activities and infrastructure in ecommerce and software solutions.
2015 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 2014 Form 10-K Annual Report and other reports filed with the Securities and Exchange Commission.
The Company is reaffirming its annual revenue growth, earnings per share and free cash flow guidance. The Company’s guidance is based on an assumption that the global economy and foreign exchange markets in 2015 will not change significantly. This guidance excludes any unusual items that may occur or additional portfolio or restructuring actions, not specifically identified, as the Company implements plans to further streamline its operations and reduce costs.
Based on the above, the Company still expects in 2015:
-
Revenue, on a constant currency basis, to be in the range of flat to 3
percent growth when compared to 2014.
- As noted when the Company provided guidance on February 2, 2015, currency exchange rates could reduce reported revenue versus constant currency revenue by more than 3 percentage points on an annual basis.
-
Earnings per diluted share from continuing operations in the range of
$1.85 to $2.00.
- This guidance includes incremental investment of $0.07 to $0.09 per share related to the implementation of a new ERP system and $0.08 to $0.09 per share related to expanded marketing programs, including the new brand. These incremental investments are now expected to be highest in the second and third quarters versus the prior year.
- The Company also still expects an annual tax rate in the range of 31 to 34 percent.
- Free cash flow in the range of $475 million to $550 million.
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. ET. 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
Pitney Bowes (NYSE: PBI) is a global technology company offering innovative products and solutions that enable commerce in the areas of customer information management, location intelligence, customer engagement, shipping and mailing, and global ecommerce. More than 1.5 million clients in approximately 100 countries around the world rely on products, solutions and services from Pitney Bowes. For additional information, visit Pitney Bowes at www.pitneybowes.com.
The Company's financial results are reported in accordance with
generally accepted accounting principles (GAAP). The Company uses
measures such as adjusted earnings before interest and taxes (EBIT),
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 goodwill and asset
write-downs, because, while these are actual Company expenses, they can
mask underlying trends associated with its 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.
