STAMFORD, Conn. — (BUSINESS WIRE) — October 30, 2014 — Pitney Bowes Inc. (NYSE: PBI) today reported financial results for the third quarter 2014.
- Revenue of $942 million, up 2 percent
- Adjusted EPS from continuing operations of $0.51
- GAAP EPS from continuing operations of $0.55; GAAP EPS of $0.65
- Free cash flow of $118 million; cash from operations of $117 million
- The Company repurchased $50 million of its common stock
- The Company increases 2014 guidance for adjusted EPS and GAAP EPS from continuing operations; reaffirms guidance for revenue growth and free cash flow
“We performed well in the third quarter, delivering solid financial results,” said Marc Lautenbach, President and CEO, Pitney Bowes. “Once again, our Digital Commerce Solutions segment posted excellent top and bottom line results for the quarter, growing revenue 26 percent and expanding margins. Profitability in our mailing businesses continued to improve year over year.
“Our results further demonstrate the continued and steady progress we are making in executing our long-term growth strategy to unlock greater shareholder value. Going forward, we remain confident about our multi-year journey to transform Pitney Bowes and deliver sustained value for our clients, shareholders and employees.”
THIRD QUARTER 2014 RESULTS
Revenue in the third quarter totaled $942 million, which was growth of more than 2 percent when compared to the prior year. As part of its go-to-market strategy, the Company exited non-core product lines in Norway and transitioned from a direct sales model to a dealer sales network in six smaller European markets for the International Mailing and Production Mail segments. For comparative purposes, revenue would have grown 3 percent in the third quarter when the results related to these operations are excluded from the current and prior year.
On a reported basis, revenue for the quarter benefited from 26 percent growth in Digital Commerce Solutions and 2 percent growth in Enterprise Business Solutions. Revenue in Small and Medium Business (SMB) Solutions declined 5 percent. When revenue in the current and prior year is adjusted for the exit of non-core product lines and channel changes in Europe, revenue for comparative purposes would have declined 4 percent for SMB Solutions.
Adjusted earnings per diluted share from continuing operations were $0.51 compared to $0.47 in the prior year. Quarter results included tax benefits of $0.08 and $0.06 per share in 2014 and 2013, respectively.
Earnings per diluted share from continuing operations, on a Generally Accepted Accounting Principles (GAAP) basis were $0.55, which included $0.05 per share related to the Company’s divestiture of an investment. GAAP earnings per share from continuing operations also included a restructuring charge of $0.01 per share associated with the previously announced cost reduction plans.
GAAP earnings per diluted share were $0.65, which included income from discontinued operations of $0.10 per share.
|Earnings Per Share Reconciliation*||3Q 2014||3Q 2013|
|Adjusted EPS from continuing operations||$0.51||$0.47|
|GAAP EPS from continuing operations||$0.55||$0.36|
|Discontinued operations - income (loss)||$0.10||($0.39)|