Pitney Bowes Announces Second Quarter 2016 Financial Results

Pitney Bowes Inc.
Reconciliation of Reported Consolidated Results to Adjusted Results
(Unaudited; in thousands, except per share amounts)

	Three months ended June 30,								Six months ended June 30,
	2016			2015			Y/Y Chg.		2016			2015			Y/Y Chg.


Reconciliation of reported revenue to revenue excluding currency and Market Exits
Revenue, as reported	$	835,886		$	880,891		(5	%)	$	1,680,475		$	1,771,572		(5	%)
Unfavorable impact on revenue due to currency		4,770			-		NM			14,721			-		NM
Revenue, excluding currency		840,656			880,891		(5	%)		1,695,196			1,771,572		(4	%)
Less: Revenue from Market Exits		-			5,717		(100	%)		480			11,541		(96	%)
Revenue, excluding currency and Market Exits	$	840,656		$	875,174		(4	%)	$	1,694,716		$	1,760,031		(4	%)



Reconciliation of reported net income to adjusted earnings
Net income	$	58,184		$	156,363				$	120,824		$	241,569
Loss from discontinued operations, net of tax		1,660			739					1,660			582
Restructuring charges and asset impairments, net		16,931			8,613					21,559			8,560
Loss (gain) on disposition of businesses		271			(88,429	)				2,330			(88,429	)
Transaction costs related to acquisitions and dispositions		93			6,105					209			6,105
Legal settlement		-			4,620					-			4,620
Acquisition/disposition related expenses		-			7,246					-			7,246
Income from continuing operations, after income taxes, as adjusted		77,139			95,257					146,582			180,253
Provision for income taxes, as adjusted		42,751			45,894					83,025			96,413
Income from continuing operations before income taxes, as adjusted		119,890			141,151					229,607			276,666
Interest, net		34,294			38,839					68,510			81,673
EBIT, as adjusted		154,184			179,990					298,117			358,339
Depreciation and amortization		45,238			42,657					89,538			85,153
EBITDA, as adjusted	$	199,422		$	222,647				$	387,655		$	443,492


Reconciliation of reported diluted earnings per share to adjusted diluted earnings per share from continuing operations
Diluted earnings per share	$	0.28		$	0.75				$	0.59		$	1.15
Loss from discontinued operations, net of tax		0.01			-					0.01			-
Restructuring charges and asset impairments, net		0.09			0.04					0.11			0.04
Loss (gain) on disposition of businesses		-			(0.44	)				0.01			(0.44	)
Transaction costs related to acquisitions and dispositions		-			0.03					-			0.03
Legal settlement		-			0.02					-			0.02
Acquisition/disposition related expenses		-			0.04					-			0.04
Diluted earnings per share from continuing operations, as adjusted	$	0.39		$	0.45				$	0.72		$	0.84

Note : The sum of the earnings per share amounts may not equal the totals due to rounding.



Reconciliation of reported net cash from operating activities to free cash flow, as adjusted
Net cash provided by operating activities	$	95,221		$	96,915				$	153,587		$	201,008
Capital expenditures		(30,855	)		(45,498	)				(71,359	)		(89,612	)
Restructuring payments		12,210			8,901					33,866			30,775
Pension contribution		-			-					36,731			-
Reserve account deposits		9,110			(1,387	)				(7,143	)		(21,464	)
Payments related to investment divestiture		-			3,215					-			26,375
Acquisition/disposition related expenses		-			10,483					-			10,483
Cash transaction fees		146			11,116					335			11,116

Free cash flow, as adjusted	$	85,832		$	83,745				$	146,017		$	168,681

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