(1) Segment EBIT excludes interest, taxes, general corporate expenses, restructuring charges, and other items that are not allocated to a particular business segment. | |||||||||
(2) Includes corporate depreciation and amortization expense of $7,138 and $5,210 for the three months ended June 30, 2020 and 2019, respectively and $12,978 and $9,860 for the six months ended June 30, 2020 and 2019, respectively. |
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, | |||||||||||||||
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|||||
Reconciliation of reported net (loss) income to adjusted net income, adjusted EBIT and adjusted EBITDA | ||||||||||||||||
Net (loss) income | $ |
(3,329 |
) |
$ |
23,697 |
|
$ |
(211,812 |
) |
$ |
21,038 |
|
||||
Loss (income) from discontinued operations, net of tax |
|
3,032 |
|
|
5,613 |
|
|
(7,032 |
) |
|
5,729 |
|
||||
Goodwill impairment |
|
- |
|
|
- |
|
|
196,600 |
|
|
- |
|
||||
Restructuring charges and asset impairments |
|
3,183 |
|
|
4,242 |
|
|
5,854 |
|
|
6,987 |
|
||||
Gain on sale of equity investment |
|
(8,943 |
) |
|
- |
|
|
(8,943 |
) |
|
- |
|
||||
Tax on settlement of investment securities |
|
12,229 |
|
|
- |
|
|
12,229 |
|
|
- |
|
||||
Loss on extinguishment of debt |
|
- |
|
|
- |
|
|
27,777 |
|
|
- |
|
||||
Loss on dispositions and transaction costs |
|
264 |
|
|
1,171 |
|
|
487 |
|
|
20,786 |
|
||||
Adjusted net income |
|
6,436 |
|
|
34,723 |
|
|
15,160 |
|
|
54,540 |
|
||||
Interest, net |
|
38,385 |
|
|
39,062 |
|
|
76,757 |
|
|
78,028 |
|
||||
Provision for income taxes, as adjusted |
|
3,646 |
|
|
5,791 |
|
|
5,610 |
|
|
12,919 |
|
||||
Adjusted EBIT |
|
48,467 |
|
|
79,576 |
|
|
97,527 |
|
|
145,487 |
|
||||
Depreciation and amortization |
|
41,068 |
|
|
41,092 |
|
|
81,787 |
|
|
77,977 |
|
||||
Adjusted EBITDA | $ |
89,535 |
|
$ |
120,668 |
|
$ |
179,314 |
|
$ |
223,464 |
|
||||
Reconciliation of reported diluted (loss) earnings per share to adjusted diluted earnings per share | ||||||||||||||||
Diluted (loss) earnings per share | $ |
(0.02 |
) |
$ |
0.13 |
|
$ |
(1.24 |
) |
$ |
0.12 |
|
||||
Loss (income) from discontinued operations, net of tax |
|
0.02 |
|
|
0.03 |
|
|
(0.04 |
) |
|
0.03 |
|
||||
Goodwill impairment |
|
- |
|
|
- |
|
|
1.14 |
|
|
- |
|
||||
Restructuring charges and asset impairments |
|
0.02 |
|
|
0.02 |
|
|
0.03 |
|
|
0.04 |
|
||||
Gain on sale of equity investment |
|
(0.05 |
) |
|
- |
|
|
(0.05 |
) |
|
- |
|
||||
Tax on settlement of investment securities |
|
0.07 |
|
|
- |
|
|
0.07 |
|
|
- |
|
||||
Loss on debt extinguishment |
|
- |
|
|
- |
|
|
0.16 |
|
|
- |
|
||||
Loss on dispositions and transaction costs |
|
- |
|
|
0.01 |
|
|
- |
|
|
0.11 |
|
||||
Adjusted diluted earnings per share | $ |
0.04 |
|
$ |
0.19 |
|
$ |
0.09 |
|
$ |
0.30 |
|
||||
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 | ||||||||||||||||
Net cash provided by operating activities | $ |
153,093 |
|
$ |
17,054 |
|
$ |
86,809 |
|
$ |
86,782 |
|
||||
Net cash used in (provided by) operating activities - discontinued operations |
|
618 |
|
|
(4,277 |
) |
|
38,423 |
|
|
(5,534 |
) |
||||
Capital expenditures |
|
(34,176 |
) |
|
(31,493 |
) |
|
(59,954 |
) |
|
(59,187 |
) |
||||
Restructuring payments |
|
5,318 |
|
|
4,759 |
|
|
11,365 |
|
|
13,005 |
|
||||
Change in customer deposits at PB Bank |
|
23,219 |
|
|
14,720 |
|
|
22,331 |
|
|
(8,316 |
) |
||||
Transaction costs paid |
|
377 |
|
|
4,269 |
|
|
2,117 |
|
|
6,108 |
|
||||
Free cash flow | $ |
148,449 |
|
$ |
5,032 |
|
$ |
101,091 |
|
$ |
32,858 |
|