Note: Consolidated statements of income; revenue, EBIT and EBITDA by business segment; and reconciliations of GAAP to non-GAAP measures for the three months and six months ended June 30, 2020 and 2019, and consolidated balance sheets at June 30, 2020 and December 31, 2019 are attached.
Pitney Bowes Inc. | |||||||||||||||||
Consolidated Statements of Income (Loss) | |||||||||||||||||
(Unaudited; in thousands, except per share amounts) | |||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||||
Revenue: | |||||||||||||||||
Business services | $ |
528,990 |
|
$ |
417,963 |
|
$ |
973,369 |
|
$ |
824,508 |
|
|||||
Support services |
|
113,786 |
|
|
127,705 |
|
|
235,801 |
|
|
256,304 |
|
|||||
Financing |
|
85,462 |
|
|
92,419 |
|
|
174,540 |
|
|
189,462 |
|
|||||
Equipment sales |
|
57,837 |
|
|
85,551 |
|
|
134,110 |
|
|
175,338 |
|
|||||
Supplies |
|
32,773 |
|
|
46,490 |
|
|
78,482 |
|
|
97,443 |
|
|||||
Rentals |
|
18,644 |
|
|
18,445 |
|
|
37,458 |
|
|
40,602 |
|
|||||
Total revenue |
|
837,492 |
|
|
788,573 |
|
|
1,633,760 |
|
|
1,583,657 |
|
|||||
Costs and expenses: | |||||||||||||||||
Cost of business services |
|
454,311 |
|
|
337,918 |
|
|
828,976 |
|
|
664,964 |
|
|||||
Cost of support services |
|
36,725 |
|
|
40,520 |
|
|
76,485 |
|
|
82,367 |
|
|||||
Financing interest expense |
|
11,939 |
|
|
11,043 |
|
|
24,428 |
|
|
22,407 |
|
|||||
Cost of equipment sales |
|
47,920 |
|
|
58,570 |
|
|
105,279 |
|
|
122,235 |
|
|||||
Cost of supplies |
|
8,379 |
|
|
11,758 |
|
|
20,619 |
|
|
25,308 |
|
|||||
Cost of rentals |
|
6,022 |
|
|
8,418 |
|
|
12,400 |
|
|
18,133 |
|
|||||
Selling, general and administrative |
|
233,631 |
|
|
241,467 |
|
|
482,264 |
|
|
503,136 |
|
|||||
Research and development |
|
7,467 |
|
|
13,572 |
|
|
19,583 |
|
|
26,149 |
|
|||||
Goodwill impairment |
|
- |
|
|
- |
|
|
198,169 |
|
|
- |
|
|||||
Restructuring charges and asset impairments |
|
4,922 |
|
|
5,899 |
|
|
8,739 |
|
|
9,599 |
|
|||||
Interest expense, net |
|
26,446 |
|
|
28,019 |
|
|
52,329 |
|
|
55,621 |
|
|||||
Other components of net pension and postretirement income |
|
386 |
|
|
(1,618 |
) |
|
235 |
|
|
(2,256 |
) |
|||||
Other (income) expense |
|
(17,375 |
) |
|
(27 |
) |
|
16,112 |
|
|
17,683 |
|
|||||
Total costs and expenses |
|
820,773 |
|
|
755,539 |
|
|
1,845,618 |
|
|
1,545,346 |
|
|||||
Income (loss) from continuing operations before taxes |
|
16,719 |
|
|
33,034 |
|
|
(211,858 |
) |
|
38,311 |
|
|||||
Provision for income taxes |
|
17,016 |
|
|
3,724 |
|
|
6,986 |
|
|
11,544 |
|
|||||
(Loss) income from continuing operations |
|
(297 |
) |
|
29,310 |
|
|
(218,844 |
) |
|
26,767 |
|
|||||
(Loss) income from discontinued operations, net of tax |
|
(3,032 |
) |
|
(5,613 |
) |
|
7,032 |
|
|
(5,729 |
) |
|||||
Net (loss) income | $ |
(3,329 |
) |
$ |
23,697 |
|
$ |
(211,812 |
) |
$ |
21,038 |
|
|||||
Basic (loss) earnings per share (1): | |||||||||||||||||
Continuing operations | $ |
- |
|
$ |
0.17 |
|
$ |
(1.28 |
) |
$ |
0.15 |
|
|||||
Discontinued operations |
|
(0.02 |
) |
|
(0.03 |
) |
|
0.04 |
|
|
(0.03 |
) |
|||||
Net (loss) income | $ |
(0.02 |
) |
$ |
0.13 |
|
$ |
(1.24 |
) |
$ |
0.12 |
|
|||||
Diluted (loss) earnings per share (1): | |||||||||||||||||
Continuing operations | $ |
- |
|
$ |
0.16 |
|
$ |
(1.28 |
) |
$ |
0.15 |
|
|||||
Discontinued operations |
|
(0.02 |
) |
|
(0.03 |
) |
|
0.04 |
|
|
(0.03 |
) |
|||||
Net (loss) income | $ |
(0.02 |
) |
$ |
0.13 |
|
$ |
(1.24 |
) |
$ |
0.12 |
|
|||||
Weighted-average shares used in diluted earnings per share |
|
171,478 |
|
|
178,281 |
|
|
171,167 |
|
|
182,638 |
(1) | The sum of the earnings per share amounts may not equal the totals due to rounding. |
Pitney Bowes Inc. | ||||||||
Consolidated Balance Sheets | ||||||||
(Unaudited; in thousands) | ||||||||
Assets | June 30,
2020 |
December 31,
2019 |
||||||
Current assets: | ||||||||
Cash and cash equivalents | $ |
862,897 |
|
$ |
924,442 |
|
||
Short-term investments |
|
153,221 |
|
|
115,879 |
|
||
Accounts and other receivables, net |
|
391,748 |
|
|
373,471 |
|
||
Short-term finance receivables, net |
|
555,196 |
|
|
629,643 |
|
||
Inventories |
|
73,653 |
|
|
68,251 |
|
||
Current income taxes |
|
1,893 |
|
|
5,565 |
|
||
Other current assets and prepayments |
|
121,924 |
|
|
101,601 |
|
||
Assets of discontinued operations |
|
- |
|
|
17,229 |
|
||
Total current assets |
|
2,160,532 |
|
|
2,236,081 |
|
||
Property, plant and equipment, net |
|
375,465 |
|
|
376,177 |
|
||
Rental property and equipment, net |
|
40,875 |
|
|
41,225 |
|
||
Long-term finance receivables, net |
|
583,839 |
|
|
625,487 |
|
||
Goodwill |
|
1,132,785 |
|
|
1,324,179 |
|
||
Intangible assets, net |
|
175,460 |
|
|
190,640 |
|
||
Operating lease assets |
|
199,162 |
|
|
200,752 |
|
||
Noncurrent income taxes |
|
68,449 |
|
|
71,903 |
|
||
Other assets |
|
379,611 |
|
|
400,456 |
|
||
Total assets | $ |
5,116,178 |
|
$ |
5,466,900 |
|
||
Liabilities and stockholders' equity | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ |
732,048 |
|
$ |
793,690 |
|
||
Customer deposits at Pitney Bowes Bank |
|
613,449 |
|
|
591,118 |
|
||
Current operating lease liabilities |
|
35,432 |
|
|
36,060 |
|
||
Current portion of long-term debt |
|
163,257 |
|
|
20,108 |
|
||
Advance billings |
|
122,606 |
|
|
101,920 |
|
||
Current income taxes |
|
11,723 |
|
|
17,083 |
|
||
Liabilities of discontinued operations |
|
- |
|
|
9,713 |
|
||
Total current liabilities |
|
1,678,515 |
|
|
1,569,692 |
|
||
Long-term debt |
|
2,553,490 |
|
|
2,719,614 |
|
||
Deferred taxes on income |
|
270,376 |
|
|
274,435 |
|
||
Tax uncertainties and other income tax liabilities |
|
35,928 |
|
|
38,834 |
|
||
Noncurrent operating lease liabilities |
|
177,901 |
|
|
177,711 |
|
||
Other noncurrent liabilities |
|
355,388 |
|
|
400,518 |
|
||
Total liabilities |
|
5,071,598 |
|
|
5,180,804 |
|
||
Stockholders' equity: | ||||||||
Common stock |
|
323,338 |
|
|
323,338 |
|
||
Additional paid-in-capital |
|
68,498 |
|
|
98,748 |
|
||
Retained earnings |
|
5,188,119 |
|
|
5,438,930 |
|
||
Accumulated other comprehensive loss |
|
(836,262 |
) |
|
(840,143 |
) |
||
Treasury stock, at cost |
|
(4,699,113 |
) |
|
(4,734,777 |
) |
||
Total stockholders' equity |
|
44,580 |
|
|
286,096 |
|
||
Total liabilities and stockholders' equity | $ |
5,116,178 |
|
$ |
5,466,900 |
|
Pitney Bowes Inc. | ||||||||||||||||||
Business Segment Revenue | ||||||||||||||||||
(Unaudited; in thousands) | ||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||
|
2020 |
|
2019 |
% Change |
|
2020 |
|
2019 |
% Change |
|||||||||
REVENUE | ||||||||||||||||||
Global Ecommerce | $ |
398,453 |
$ |
282,319 |
41 |
% |
$ |
690,776 |
$ |
548,573 |
26 |
% |
||||||
Presort Services |
|
118,127 |
|
128,138 |
(8 |
%) |
|
258,847 |
|
262,985 |
(2 |
%) |
||||||
Commerce Services |
|
516,580 |
|
410,457 |
26 |
% |
|
949,623 |
|
811,558 |
17 |
% |
||||||
Sending Technology Solutions |
|
320,912 |
|
378,116 |
(15 |
%) |
|
684,137 |
|
772,099 |
(11 |
%) |
||||||
Total revenue - GAAP |
|
837,492 |
|
788,573 |
6 |
% |
|
1,633,760 |
|
1,583,657 |
3 |
% |
||||||
Currency impact on revenue |
|
2,627 |
|
- |
|
4,967 |
|
- |
||||||||||
Revenue, at constant currency | $ |
840,119 |
$ |
788,573 |
7 |
% |
$ |
1,638,727 |
$ |
1,583,657 |
3 |
% |