STAMFORD, Conn. — (BUSINESS WIRE) — April 30, 2015 — Pitney Bowes Inc. (NYSE: PBI), a global technology company that provides products and solutions that power commerce, today reported financial results for the first quarter 2015.
Quarterly Financial Results:
- Revenue of $891 million, a decline of 1 percent on a constant currency basis and a decline of 5 percent as reported. Revenue was flat to the prior year when adjusted for the impacts of currency and the divestment of certain European revenue streams.
- GAAP EPS of $0.40, which includes a $0.01 per share negative impact from currency
- SG&A of $315 million, a decline of $37 million, or 10 percent
- Adjusted EBIT of $178 million, an increase of $9 million, or 5 percent
- Free cash flow of $85 million; GAAP cash from operations of $104 million
- Reduced debt by $175 million
- Reaffirming 2015 annual guidance
“2015 is an important year for Pitney Bowes as we continue to transform our company,” said Marc B. Lautenbach, President and CEO, Pitney Bowes. “Despite currency headwinds affecting our first quarter results, we continued to unlock value in our company. In the first quarter, we reduced costs across the company and grew operating income, even as we increased our investments in marketing, infrastructure and the growth areas of our business.
“Our Enterprise Business Solutions group delivered constant currency revenue and profit growth, and our performance in North America Mailing was consistent with the previous quarters. Software licensing revenue increased by high, single digits and despite the strengthening dollar, our ecommerce business continued to deliver solid results. Looking beyond our first quarter, I remain confident in our ability to continue to meet our strategic objectives and, as a result, we are reaffirming our 2015 guidance.”
FIRST QUARTER 2015 RESULTS
Revenue totaled $891 million, a decline of 1 percent on a constant currency basis and 5 percent on a reported basis versus the prior year. For comparative purposes, revenue would have been flat compared to the prior year when the current and prior periods are adjusted for the impacts of currency and the reduction in revenue resulting from the exit of direct operations in some European countries that we completed in the third quarter of 2014.
Digital Commerce Solutions revenue grew 9 percent on a constant currency basis and 6 percent on a reported basis. Revenue on a constant currency basis benefited from growth in ecommerce, marketing services and shipping solutions, while software solutions were flat.
Enterprise Business Solutions revenue grew 2 percent on a constant currency basis and was flat on a reported basis. Revenue on a constant currency basis benefited from continued growth in Presort Services, while revenue in Production Mail was flat. For comparative purposes, revenue would have grown 3 percent when adjusted for the impacts of currency and the divested revenues in Europe from the prior year.
Small and Medium Business (SMB) Solutions revenue declined 6 percent on a constant currency basis and 11 percent on a reported basis. For comparative purposes, revenue would have declined 5 percent when adjusted for the impacts of currency and the divested revenues in Europe from the prior year.
Adjusted earnings before interest and taxes (EBIT) was $178 million, which was an increase of $9 million, or 5%, versus the prior year. Adjusted EBIT margin expanded 190 basis points to 20.0%.
Generally Accepted Accounting Principles (GAAP) earnings per diluted share were $0.40, which includes the adverse impact from currency of $0.01 per share. Earnings per share during the quarter were also impacted by a higher tax rate in part due to higher than usual charges related to the expiration of certain stock options and a greater percentage of revenue from U.S. operations.
The Company’s earnings per share results for the quarter are summarized in the table below:
| First Quarter | |||||||||
|
2015 |
2014 |
||||||||
| Adjusted EPS from continuing operations |
$0.40 |
|
$0.42 | ||||||
| Restructuring charges and asset impairments | - | ($0.03 | ) | ||||||
| Extinguishment of debt | - | ($0.19 | ) | ||||||
| GAAP EPS from continuing operations | $0.40 | $0.21 | |||||||
| Discontinued operations | - | $0.01 | |||||||
| GAAP EPS | $0.40 | $0.22 | |||||||
