STAMFORD, Conn. — (BUSINESS WIRE) — May 1, 2019 — Pitney Bowes Inc. (NYSE: PBI), a global technology company that provides commerce solutions in the areas of ecommerce, shipping, mailing, and data, today announced its financial results for the first quarter 2019.
Quarterly Financial Results:
- Revenue of $868 million, a decline of 3 percent; a decline of 2 percent when adjusted for the impact of currency; a decline of 1 percent when adjusted for both the impact of currency and market exits
- GAAP EPS of ($0.01), which included a $0.10 loss related to the previously announced sale of direct operations in 6 smaller European markets
- Adjusted EPS of $0.12
- GAAP cash from operations of $70 million; free cash flow of $32 million
- Repurchased $39 million of stock, or 5.6 million shares
- The Company is updating its 2019 annual guidance
“While we delivered first quarter revenue that was largely in-line with our expectations, we fell short on profitability. Clearly, we are not pleased with our profit performance, but are confident that the actions we are taking will improve profitability and continue to position us for sustained growth for the long-term,” said Marc B. Lautenbach, President and CEO, Pitney Bowes. “We continued to make progress against our long-term objectives as we move our portfolio of business to the growth areas of the market. For the second consecutive quarter, our Commerce Services business was the largest component of our overall revenue and our shipping-related revenues counted for approximately one-third of our total revenue.”
First Quarter 2019 Results
Revenue totaled $868 million, which was a decline of 3 percent versus prior year. Revenue declined 2 percent versus the prior year when adjusted for the impact of currency and declined 1 percent when adjusted for both the impact of currency and the previously announced sale of direct operations in 6 smaller European markets (market exits).
Commerce Services revenue grew 5 percent as reported and 6 percent adjusted for currency. Small and Medium Business (SMB) Solutions revenue declined 10 percent as reported and 9 percent when adjusted for the impact of currency. SMB revenue declined 7 percent when adjusted for both the impact of currency and market exits. Software Solutions revenue declined 4 percent as reported and 2 percent adjusted for currency.
GAAP earnings per diluted share (GAAP EPS) were ($0.01), which included a $0.10 loss related to the market exits.
Adjusted earnings per diluted share (Adjusted EPS) were $0.12.
GAAP and Adjusted EPS include a $0.03 per share impact for a charge related to a SendPro C tablet replacement program to address an underlying battery longevity issue.
The Company’s earnings per share results for the first quarter are summarized in the table below:
| First Quarter* | |||||||
| 2019 | 2018 | ||||||
| GAAP EPS | ($0.01) | $0.32 | |||||
| Discontinued operations | $0.01 | ($0.05) | |||||
| GAAP EPS from continuing operations | ($0.01) | $0.27 | |||||
| Loss from market exits | $0.10 | - | |||||
| Restructuring charges, net | $0.01 | - | |||||
| Transaction costs | $0.01 | - | |||||
| Adjusted EPS | $0.12 | $0.28 | |||||
| * | The sum of the earnings per share may not equal the totals above due to rounding. | |
