Pitney Bowes Announces Second Quarter 2022 Financial Results
STAMFORD, Conn,--(BUSINESS WIRE)--July 28, 2022--Pitney Bowes (NYSE: PBI), a global shipping and mailing company that provides technology, logistics, and financial services, today announced its financial results for the second quarter 2022.
“While there were some very positive aspects to our second quarter, our financial results were below our expectations,” said Marc B. Lautenbach, President and CEO, Pitney Bowes. “In Global Ecommerce, we were not able to overcome macroeconomic headwinds, including the strength of the US dollar and the COVID shutdown in China, which caused a reduction in some of our package volumes. However, we are encouraged by a sustained improvement in our domestic parcel network service levels, which is driving domestic parcel revenue growth and a robust pipeline of new clients. Our Presort and SendTech businesses in the aggregate posted revenue growth on a constant currency basis. Finally, proceeds from the sale of Borderfree enhances financial flexibility as we continue to execute against our long-term plan.”
Second Quarter Financial Highlights
- Revenue in the quarter was $871 million, a decrease of 3 percent on a reported basis and 2 percent on a constant currency basis from the comparable quarter in 2021
- GAAP EPS and Adjusted EPS were $0.02 in the quarter versus $0.11 in second quarter 2021
- GAAP cash from operations in the quarter was $35 million
- Free cash flow was $6 million versus $87 million in second quarter 2021; decrease driven largely by lower customer deposits and net income
Second Quarter Business Highlights
- Global Ecommerce posted domestic parcel revenue growth of 6 percent
- Domestic parcel gross margins expanded despite lower volumes
- Presort revenue grew 3 percent on a year-over-year basis
- SendTech revenue grew on a constant currency basis with growth in shipping and equipment sales offset by lower financing and services revenues
- Announced divestiture of Borderfree for approximately $100 million with proceeds received in early July
Earnings per share results are summarized in the table below
| Second Quarter | ||||
| 2022 | 2021 | |||
GAAP EPS | $0.02 | $0.11 | |||
Discontinued Operations | - | $0.01 | |||
GAAP EPS from Continuing Operations | $0.02 | $0.12 | |||
Restructuring Charges | $0.02 | $0.02 | |||
Gain on Sale of Assets/Business | - | ($0.03) | |||
Tax Benefit from Sale of Business | ($0.03) | - | |||
Transaction Costs | $0.02 | - | |||
Adjusted EPS | $0.02 | $0.11 | |||
* The sum of the earnings per share may not equal the totals due to rounding. |
Business Segment Reporting
Global Ecommerce
Global Ecommerce provides business to consumer logistics services for domestic and cross border delivery, returns and fulfillment.
| Second Quarter | |||
($ millions) | 2022 | 2021 | % Change Reported | % Change Ex Currency |
Revenue | $394 | $418 | (6%) | (5%) |
EBITDA | ($7) | $8 | >(100%) |
|
EBIT | ($29) | ($11) | >(100%) |
|
Overall segment revenue declined as domestic parcel revenue growth was offset by lower cross-border volumes amid a more challenging macroeconomic environment, especially a stronger US Dollar.
Domestic parcel volumes were 39 million, a 5 million decrease compared to prior year, driven by weakness in volumes originating in China and processed by our domestic network. Parcel volumes from North American clients increased mid-single digits.
Improved domestic parcel gross margins were more than offset by lower cross-border results and higher operating expenses, resulting in lower profitability.
Presort Services
Presort Services provides sortation services to qualify large volumes of First Class Mail, Marketing Mail, Marketing Mail Flats and Bound Printed Matter for postal workshare discounts.
| Second Quarter | |||
($ millions) | 2022 | 2021 | % Change Reported | % Change Ex Currency |
Revenue | $139 | $135 | 3% | 3% |
EBITDA | $20 | $23 | (13%) |
|
EBIT | $13 | $16 | (20%) |
|
Revenue growth was driven by better revenue per piece and new client volume. Total volumes were impacted by a softening economy and declined in the quarter. EBITDA and EBIT margins declined in the quarter due to inflationary pressures on labor and transportation costs.
SendTech Solutions
Sending Technology Solutions offers physical and digital mailing and shipping technology solutions, financing, services, supplies and other applications for small and medium businesses, retail, enterprise, and government clients around the world to help simplify and save on the sending, tracking and receiving of letters, parcels and flats.
| Second Quarter | |||
($ millions) | 2022 | 2021 | % Change Reported | % Change Ex Currency |
Revenue | $339 | $346 | (2%) | 0% |
EBITDA | $103 | $115 | (10%) |
|
EBIT | $96 | $107 | (11%) |
|
Higher equipment sales and shipping related revenues were offset by lower finance and service revenues. EBITDA and EBIT declines were driven primarily by a decrease in high margin finance and service revenues.
Revised 2022 Expectations
Based on uncertain macroeconomic conditions, first half results, and the sale of Borderfree, the Company expects full year revenue (constant currency) to range from a low-single digit percentage decline to a low single digit percentage increase.
The Company also expects full year EBIT to range from a high-single digit percentage decline to a mid-single digit percentage increase.
In addition, the Company expects to generate solid free cash flow for full year 2022 though at a lower level than prior year.
Conference Call and Webcast
Management of Pitney Bowes will discuss the Company’s results in a broadcast over the Internet today at 8:00 a.m. EDT. Instructions for listening to the earnings results via the Web are available on the Investor Relations page of the Company’s web site at www.pitneybowes.com.
About Pitney Bowes
Pitney Bowes (NYSE:PBI) is a global shipping and mailing company that provides technology, logistics, and financial services to more than 90 percent of the Fortune 500. Small business, retail, enterprise, and government clients around the world rely on Pitney Bowes to remove the complexity of sending mail and parcels. For additional information, visit: www.pitneybowes.com
Use of Non-GAAP Measures
The Company's financial results are reported in accordance with generally accepted accounting principles (GAAP); however, in its disclosures the Company uses certain non-GAAP measures, such as adjusted earnings before interest and taxes (EBIT), adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted earnings per share (EPS), revenue growth on a constant currency basis and free cash flow.
Adjusted EBIT, Adjusted EBITDA and Adjusted EPS exclude the impact of discontinued operations, restructuring charges, gains, losses and costs related to acquisitions and dispositions, asset and goodwill impairment charges, and other unusual or one-time items. Such items are often inconsistent in amount and frequency and as such, the Company believes that these non-GAAP measures provide investors greater insight into the underlying operating trends of the business.
In addition, revenue growth is presented on a constant currency basis to exclude the impact of changes in foreign currency exchange rates since the prior period under comparison. Constant currency is calculated by converting the current period non-U.S. dollar denominated revenue using the prior year’s exchange rate for the comparable quarter. We believe that excluding the impacts of currency exchange rates provides investors a better understanding of the underlying revenue performance.
Free cash flow adjusts cash from operations calculated in accordance with GAAP for discontinued operations, capital expenditures, restructuring payments, changes in customer deposits held at the Pitney Bowes Bank and other special items. The Company reports free cash flow to provide investors insight into the amount of cash that management could have available for other discretionary uses.
Segment EBIT is the primary measure of profitability and operational performance at the segment level and is determined by deducting from segment revenue the related costs and expenses attributable to the segment. Segment EBIT excludes interest, taxes, unallocated corporate expenses, restructuring charges, asset and goodwill impairment charges, and other items not allocated to a segment. The Company also reports segment EBITDA as an additional useful measure of segment profitability and operational performance.
Complete reconciliations of non-GAAP measures to comparable GAAP measures can be found in the attached financial schedules and at the Company's web site at www.pb.com/investorrelations
This document contains “forward-looking statements” about the Company’s expected or potential future business and financial performance. Forward-looking statements include, but are not limited to, statements about future revenue and earnings guidance and future events or conditions. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from those projected. In particular, we continue to navigate the impacts of the Covid-19 pandemic (Covid-19) as well as the risk of a global recession, and the effects that they may have on our, and our client’s business. Other factors which could cause future financial performance to differ materially from expectations, and which may also be exacerbated by Covid-19 or the risk of a global recession or a negative change in the economy, include, without limitation, declining physical mail volumes; changes in postal regulations or the operations and financial health of posts in the U.S. or other major markets or changes to the broader postal or shipping markets; the loss of, or significant changes to, United States Postal Service (USPS) commercial programs, or our contractual relationships with the USPS or USPS' performance under those contracts; our ability to continue to grow and manage volumes, gain additional economies of scale and improve profitability within our Global Ecommerce segment; changes in labor and transportation availability and costs; and other factors as more fully outlined in the Company's 2021 Form 10-K Annual Report and other reports filed with the Securities and Exchange Commission. Pitney Bowes assumes no obligation to update any forward-looking statements contained in this document as a result of new information, events or developments.
Note: Consolidated statements of income; revenue, EBIT and EBITDA by business segment; and reconciliations of GAAP to non-GAAP measures for the three and six months ended June 30, 2022 and 2021, and consolidated balance sheets at June 30, 2022 and December 31, 2021 are attached.
Disclosure Using Social Media
Pitney Bowes announces material information to its investors using SEC filings, press releases, public conference calls and webcasts. The Company already makes frequent use of its investor relations website to disseminate material information, as well as social media platforms, including Twitter, Facebook and LinkedIn. Investors, buy and sell-side analysts, media and influencers should note that the Company plans to continue to announce material financial information using the Pitney Bowes investor relations website, SEC filings, and press releases, public conference calls and webcasts. Pitney Bowes is notifying investors, media and others interested in the Company that in the future, the Company may choose to communicate material information through its social media channels, or it is possible that information it discloses through social media channels may be deemed to be material. Therefore, Pitney Bowes encourages investors, the media, and others interested in the Company to review the information posted on the Company’s investor relations site (https://www.investorrelations.pitneybowes.com/), Twitter (https://twitter.com/PBnews and https://twitter.com/PitneyBowes), Facebook (https://www.facebook.com/PitneyBowes/), and LinkedIn (https://www.linkedin.com/company/pitney-bowes/). The Company may communicate on social media platforms not listed here as well as create new accounts in the future. Any updates to the list of social media channels Pitney Bowes will use to announce material information will be posted on the Investor Relations page.
Pitney Bowes Inc. | |||||||||||||||
Consolidated Statements of Operations | |||||||||||||||
(Unaudited; in thousands, except per share amounts) | |||||||||||||||
Three months ended June 30, |
| Six months ended June 30, | |||||||||||||
| 2022 |
|
|
| 2021 |
|
|
| 2022 |
|
|
| 2021 |
| |
Revenue: | |||||||||||||||
Business services | $ | 551,478 |
| $ | 567,022 |
| $ | 1,148,862 |
| $ | 1,137,476 |
| |||
Support services |
| 107,625 |
|
| 115,156 |
|
| 217,977 |
|
| 233,853 |
| |||
Financing |
| 67,298 |
|
| 73,453 |
|
| 139,327 |
|
| 151,265 |
| |||
Equipment sales |
| 89,986 |
|
| 86,267 |
|
| 179,282 |
|
| 173,070 |
| |||
Supplies |
| 38,245 |
|
| 38,655 |
|
| 79,306 |
|
| 80,879 |
| |||
Rentals |
| 16,863 |
|
| 18,650 |
|
| 33,683 |
|
| 37,857 |
| |||
Total revenue |
| 871,495 |
|
| 899,203 |
|
| 1,798,437 |
|
| 1,814,400 |
| |||
| |||||||||||||||
Costs and expenses: | |||||||||||||||
Cost of business services |
| 477,544 |
|
| 482,814 |
|
| 980,759 |
|
| 982,348 |
| |||
Cost of support services |
| 37,711 |
|
| 37,679 |
|
| 74,845 |
|
| 74,396 |
| |||
Financing interest expense |
| 12,533 |
|
| 11,773 |
|
| 24,135 |
|
| 23,659 |
| |||
Cost of equipment sales |
| 63,815 |
|
| 61,561 |
|
| 127,586 |
|
| 123,401 |
| |||
Cost of supplies |
| 11,028 |
|
| 10,467 |
|
| 22,545 |
|
| 21,678 |
| |||
Cost of rentals |
| 7,473 |
|
| 6,013 |
|
| 12,782 |
|
| 12,460 |
| |||
Selling, general and administrative |
| 226,638 |
|
| 236,190 |
|
| 469,423 |
|
| 474,292 |
| |||
Research and development |
| 11,254 |
|
| 11,059 |
|
| 22,588 |
|
| 22,375 |
| |||
Restructuring charges |
| 4,224 |
|
| 4,844 |
|
| 8,408 |
|
| 7,733 |
| |||
Interest expense, net |
| 21,007 |
|
| 24,346 |
|
| 43,131 |
|
| 49,504 |
| |||
Other components of net pension and postretirement expense |
| 958 |
|
| 312 |
|
| 1,802 |
|
| 662 |
| |||
Other (income) expense, net |
| - |
|
| (13,646 | ) |
| (11,901 | ) |
| 37,748 |
| |||
Total costs and expenses |
| 874,185 |
|
| 873,412 |
|
| 1,776,103 |
|
| 1,830,256 |
| |||
| |||||||||||||||
(Loss) income from continuing operations before taxes |
| (2,690 | ) |
| 25,791 |
|
| 22,334 |
|
| (15,856 | ) | |||
(Benefit) provision for income taxes |
| (7,026 | ) |
| 4,915 |
|
| (2,823 | ) |
| (9,077 | ) | |||
Income (loss) from continuing operations |
| 4,336 |
|
| 20,876 |
|
| 25,157 |
|
| (6,779 | ) | |||
Loss from discontinued operations, net of tax |
| - |
|
| (1,020 | ) |
| - |
|
| (4,906 | ) | |||
Net income (loss) | $ | 4,336 |
| $ | 19,856 |
| $ | 25,157 |
| $ | (11,685 | ) | |||
| |||||||||||||||
Basic earnings (loss) per share: | |||||||||||||||
Continuing operations | $ | 0.02 |
| $ | 0.12 |
| $ | 0.14 |
| $ | (0.04 | ) | |||
Discontinued operations |
| - |
|
| (0.01 | ) |
| - |
|
| (0.03 | ) | |||
Net income (loss) | $ | 0.02 |
| $ | 0.11 |
| $ | 0.14 |
| $ | (0.07 | ) | |||
| |||||||||||||||
Diluted earnings (loss) per share: | |||||||||||||||
Continuing operations | $ | 0.02 |
| $ | 0.12 |
| $ | 0.14 |
| $ | (0.04 | ) | |||
Discontinued operations |
| - |
|
| (0.01 | ) |
| - |
|
| (0.03 | ) | |||
Net income (loss) | $ | 0.02 |
| $ | 0.11 |
| $ | 0.14 |
| $ | (0.07 | ) | |||
| |||||||||||||||
Weighted-average shares used in diluted earnings per share |
| 176,969 |
|
| 178,979 |
|
| 177,673 |
|
| 173,367 |
|
(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, 2022 | December 31, 2021 | |||||
Current assets: | |||||||
Cash and cash equivalents | $ | 570,697 |
| $ | 732,480 |
| |
Short-term investments |
| 11,519 |
|
| 14,440 |
| |
Accounts and other receivables, net |
| 268,722 |
|
| 334,630 |
| |
Short-term finance receivables, net |
| 557,571 |
|
| 560,680 |
| |
Inventories |
| 82,797 |
|
| 78,588 |
| |
Current income taxes |
| 15,875 |
|
| 13,894 |
| |
Assets held for sale |
| 108,677 |
|
| 36,394 |
| |
Other current assets and prepayments |
| 151,090 |
|
| 120,947 |
| |
Total current assets |
| 1,766,948 |
|
| 1,892,053 |
| |
Property, plant and equipment, net |
| 427,438 |
|
| 429,162 |
| |
Rental property and equipment, net |
| 30,889 |
|
| 34,774 |
| |
Long-term finance receivables, net |
| 592,928 |
|
| 587,427 |
| |
Goodwill |
| 1,060,452 |
|
| 1,135,103 |
| |
Intangible assets, net |
| 82,770 |
|
| 132,442 |
| |
Operating lease assets |
| 242,452 |
|
| 208,428 |
| |
Noncurrent income taxes |
| 62,849 |
|
| 68,398 |
| |
Other assets |
| 410,865 |
|
| 471,084 |
| |
Total assets | $ | 4,677,591 |
| $ | 4,958,871 |
| |
| |||||||
Liabilities and stockholders' equity | |||||||
Current liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 827,639 |
| $ | 922,543 |
| |
Customer deposits at Pitney Bowes Bank |
| 616,150 |
|
| 632,062 |
| |
Current operating lease liabilities |
| 42,253 |
|
| 40,299 |
| |
Current portion of long-term debt |
| 24,752 |
|
| 24,739 |
| |
Advance billings |
| 96,573 |
|
| 99,280 |
| |
Liabilities held for sale |
| 18,700 |
|
| - |
| |
Current income taxes |
| 2,865 |
|
| 9,017 |
| |
Total current liabilities |
| 1,628,932 |
|
| 1,727,940 |
| |
Long-term debt |
| 2,194,767 |
|
| 2,299,099 |
| |
Deferred taxes on income |
| 268,416 |
|
| 286,445 |
| |
Tax uncertainties and other income tax liabilities |
| 31,643 |
|
| 31,935 |
| |
Noncurrent operating lease liabilities |
| 227,238 |
|
| 192,092 |
| |
Other noncurrent liabilities |
| 282,441 |
|
| 308,728 |
| |
Total liabilities |
| 4,633,437 |
|
| 4,846,239 |
| |
| |||||||
Stockholders' equity: | |||||||
Common stock |
| 323,338 |
|
| 323,338 |
| |
Additional paid-in-capital |
| - |
|
| 2,485 |
| |
Retained earnings |
| 5,137,248 |
|
| 5,169,270 |
| |
Accumulated other comprehensive loss |
| (850,053 | ) |
| (780,312 | ) | |
Treasury stock, at cost |
| (4,566,379 | ) |
| (4,602,149 | ) | |
Total stockholders' equity |
| 44,154 |
|
| 112,632 |
| |
Total liabilities and stockholders' equity | $ | 4,677,591 |
| $ | 4,958,871 |
|
Pitney Bowes Inc. | |||||||||||||||||
Business Segment Revenue | |||||||||||||||||
(Unaudited; in thousands) | |||||||||||||||||
Three months ended June 30, |
| Six months ended June 30, | |||||||||||||||
| 2022 |
|
| 2021 |
| % Change |
|
| 2022 |
|
| 2021 |
| % Change | |||
Global Ecommerce | $ | 393,770 | $ | 418,429 | (6 | %) | $ | 812,297 | $ | 831,515 | (2 | %) | |||||
Presort Services |
| 138,934 |
| 134,619 | 3 | % |
| 299,478 |
| 277,745 | 8 | % | |||||
Sending Technology Solutions |
| 338,791 |
| 346,155 | (2 | %) |
| 686,662 |
| 705,140 | (3 | %) | |||||
Total revenue - GAAP |
| 871,495 |
| 899,203 | (3 | %) |
| 1,798,437 |
| 1,814,400 | (1 | %) | |||||
Currency impact on revenue |
| 10,775 |
| - |
| 14,767 |
| - | |||||||||
Revenue, at constant currency | $ | 882,270 | $ | 899,203 | (2 | %) | $ | 1,813,204 | $ | 1,814,400 | (0 | %) |
Pitney Bowes Inc. | ||||||||||||||||||||||
Business Segment EBIT & EBITDA | ||||||||||||||||||||||
(Unaudited; in thousands) | ||||||||||||||||||||||
Three months ended June 30, | ||||||||||||||||||||||
| 2022 |
|
| 2021 |
| % change | ||||||||||||||||
EBIT (1) | D&A | EBITDA | EBIT (1) | D&A | EBITDA | EBIT | EBITDA | |||||||||||||||
Global Ecommerce | $ | (28,825 | ) | $ | 21,480 | $ | (7,345 | ) | $ | (10,831 | ) | $ | 19,060 | $ | 8,229 |
| >(100%) | >(100%) | ||||
Presort Services |
| 12,851 |
|
| 7,000 |
| 19,851 |
|
| 16,134 |
|
| 6,798 |
| 22,932 |
| (20 | %) | (13 | %) | ||
Sending Technology Solutions |
| 95,565 |
|
| 7,908 |
| 103,473 |
|
| 107,121 |
|
| 7,537 |
| 114,658 |
| (11 | %) | (10 | %) | ||
Segment total | $ | 79,591 |
| $ | 36,388 |
| 115,979 |
| $ | 112,424 |
| $ | 33,395 |
| 145,819 |
| (29 | %) | (20 | %) | ||
Reconciliation of Segment EBITDA to Net Income: | ||||||||||||||||||||||
Segment depreciation and amortization |
| (36,388 | ) |
| (33,395 | ) | ||||||||||||||||
Unallocated corporate expenses |
| (40,761 | ) |
| (56,316 | ) | ||||||||||||||||
Restructuring charges |
| (4,224 | ) |
| (4,844 | ) | ||||||||||||||||
Gain on sale of assets |
| - |
|
| 1,434 |
| ||||||||||||||||
Gain on sale of business |
| - |
|
| 10,201 |
| ||||||||||||||||
Loss on debt redemption/refinancing |
| - |
|
| (989 | ) | ||||||||||||||||
Transaction costs |
| (3,756 | ) |
| - |
| ||||||||||||||||
Interest, net |
| (33,540 | ) |
| (36,119 | ) | ||||||||||||||||
Benefit (provision) for income taxes |
| 7,026 |
|
| (4,915 | ) | ||||||||||||||||
Income from continuing operations |
| 4,336 |
|
| 20,876 |
| ||||||||||||||||
Loss from discontinued operations, net of tax |
| - |
|
| (1,020 | ) | ||||||||||||||||
Net income | $ | 4,336 |
| $ | 19,856 |
| ||||||||||||||||
Six months ended June 30, | ||||||||||||||||||||||
2022 |
| 2021 |
| % change | ||||||||||||||||||
EBIT (1) | D&A | EBITDA |
| EBIT (1) | D&A | EBITDA |
| EBIT | EBITDA | |||||||||||||
Global Ecommerce | $ | (42,521 | ) | $ | 42,924 | $ | 403 |
| $ | (37,207 | ) | $ | 37,236 | $ | 29 |
| (14 | %) | >100% | |||
Presort Services |
| 32,483 |
|
| 13,419 |
| 45,902 |
|
| 35,185 |
|
| 14,297 |
| 49,482 |
| (8 | %) | (7 | %) | ||
Sending Technology Solutions |
| 200,140 |
|
| 14,911 |
| 215,051 |
|
| 221,591 |
|
| 15,140 |
| 236,731 |
| (10 | %) | (9 | %) | ||
Segment Total | $ | 190,102 |
| $ | 71,254 |
| 261,356 |
| $ | 219,569 |
| $ | 66,673 |
| 286,242 |
| (13 | %) | (9 | %) | ||
Reconciliation of Segment EBITDA to Net Income (Loss): | ||||||||||||||||||||||
Segment depreciation and amortization |
| (71,254 | ) |
| (66,673 | ) | ||||||||||||||||
Unallocated corporate expenses |
| (98,595 | ) |
| (113,781 | ) | ||||||||||||||||
Restructuring charges |
| (8,408 | ) |
| (7,733 | ) | ||||||||||||||||
Gain on sale of assets |
| 14,372 |
|
| 1,434 |
| ||||||||||||||||
Gain on sale of business |
| 2,522 |
|
| 10,201 |
| ||||||||||||||||
Loss on debt redemption/refinancing |
| (4,993 | ) |
| (52,383 | ) | ||||||||||||||||
Transaction costs |
| (5,400 | ) |
| - |
| ||||||||||||||||
Interest, net |
| (67,266 | ) |
| (73,163 | ) | ||||||||||||||||
Benefit for income taxes |
| 2,823 |
|
| 9,077 |
| ||||||||||||||||
Income (loss) from continuing operations |
| 25,157 |
|
| (6,779 | ) | ||||||||||||||||
Loss from discontinued operations, net of tax |
| - |
|
| (4,906 | ) | ||||||||||||||||
Net income (loss) | $ | 25,157 |
| $ | (11,685 | ) |
(1) | Segment EBIT excludes interest, taxes, general corporate expenses, restructuring charges, and other items that are not allocated to a particular business segment. In 2022, we refined the methodology for allocating transportation costs between Global Ecommerce and Presort Services, resulting in an increase in Global Ecommerce EBIT and a corresponding decrease in Presort Services EBIT of $3 million and $7 million for the three and six months ended June 30, 2022, 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, | ||||||||||||||
| 2022 |
|
|
| 2021 |
|
|
| 2022 |
|
|
| 2021 |
| ||
Reconciliation of reported net income (loss) to adjusted EBIT and EBITDA | ||||||||||||||||
Net income (loss) | $ | 4,336 |
| $ | 19,856 |
| $ | 25,157 |
| $ | (11,685 | ) | ||||
Loss from discontinued operations, net of tax |
| - |
|
| 1,020 |
|
| - |
|
| 4,906 |
| ||||
(Benefit) provision for income taxes |
| (7,026 | ) |
| 4,915 |
|
| (2,823 | ) |
| (9,077 | ) | ||||
(Loss) income from continuing operations before taxes |
| (2,690 | ) |
| 25,791 |
|
| 22,334 |
|
| (15,856 | ) | ||||
Restructuring charges |
| 4,224 |
|
| 4,844 |
|
| 8,408 |
|
| 7,733 |
| ||||
Gain on sale of assets |
| - |
|
| (1,434 | ) |
| (14,372 | ) |
| (1,434 | ) | ||||
Gain on sale of business |
| - |
|
| (10,201 | ) |
| (2,522 | ) |
| (10,201 | ) | ||||
Loss on debt redemption/refinancing |
| - |
|
| 989 |
|
| 4,993 |
|
| 52,383 |
| ||||
Transaction costs |
| 3,756 |
|
| - |
|
| 5,400 |
|
| - |
| ||||
Adjusted net income before tax |
| 5,290 |
|
| 19,989 |
|
| 24,241 |
|
| 32,625 |
| ||||
Interest, net |
| 33,540 |
|
| 36,119 |
|
| 67,266 |
|
| 73,163 |
| ||||
Adjusted EBIT |
| 38,830 |
|
| 56,108 |
|
| 91,507 |
|
| 105,788 |
| ||||
Depreciation and amortization |
| 43,470 |
|
| 39,822 |
|
| 85,472 |
|
| 79,416 |
| ||||
Adjusted EBITDA | $ | 82,300 |
| $ | 95,930 |
| $ | 176,979 |
| $ | 185,204 |
| ||||
Reconciliation of reported diluted earnings (loss) per share to adjusted diluted earnings per share | ||||||||||||||||
Diluted earnings (loss) per share | $ | 0.02 |
| $ | 0.11 |
| $ | 0.14 |
| $ | (0.07 | ) | ||||
Loss from discontinued operations, net of tax |
| - |
|
| 0.01 |
|
| - |
|
| 0.03 |
| ||||
Restructuring charges |
| 0.02 |
|
| 0.02 |
|
| 0.03 |
|
| 0.03 |
| ||||
Gain on sale of assets |
| - |
|
| (0.01 | ) |
| (0.06 | ) |
| (0.01 | ) | ||||
Gain on sale of business |
| - |
|
| (0.02 | ) |
| (0.02 | ) |
| (0.02 | ) | ||||
Loss on debt redemption/refinancing |
| - |
|
| - |
|
| 0.02 |
|
| 0.22 |
| ||||
Tax benefit on sale of business |
| (0.03 | ) |
| (0.03 | ) | ||||||||||
Transaction costs |
| 0.02 |
|
| - |
|
| 0.02 |
|
| - |
| ||||
Adjusted diluted earnings per share (1) | $ | 0.02 |
| $ | 0.11 |
| $ | 0.10 |
| $ | 0.19 |
| ||||
(1) 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 from operating activities | $ | 35,132 |
| $ | 78,806 |
| $ | 45,694 |
| $ | 144,729 |
| ||||
Capital expenditures |
| (31,619 | ) |
| (40,375 | ) |
| (64,174 | ) |
| (83,703 | ) | ||||
Restructuring payments |
| 4,970 |
|
| 4,870 |
|
| 8,255 |
|
| 8,825 |
| ||||
Change in customer deposits at PB Bank |
| (2,953 | ) |
| 43,427 |
|
| (15,912 | ) |
| 15,633 |
| ||||
Transaction costs paid |
| - |
|
| - |
|
| 2,132 |
|
| - |
| ||||
Free cash flow | $ | 5,530 |
| $ | 86,728 |
| $ | (24,005 | ) | $ | 85,484 |
|
Contacts
Editorial -
Bill Hughes
Chief Communications Officer
203.351.6785
Financial -
Ned Zachar, CFA
VP, Investor Relations
203.614.1092
Alex Brown
Senior Manager, Investor Relations
203.351.7639