This excerpt taken from the PBI 8-K filed Feb 5, 2009.
Pitney Bowes Announces Fourth Quarter and Annual Results for 2008
STAMFORD, Conn.--(BUSINESS WIRE)--February 5, 2009--Pitney Bowes Inc. (NYSE:PBI) today reported 2008 fourth quarter and annual financial results.
Adjusted earnings per diluted share for the fourth quarter increased 8 percent to $.77 from $.72 for the prior year. Adjusted earnings per diluted share for the year increased 2 percent to $2.78 from $2.72 for the prior year, and was within the company’s annual guidance of $2.75 to $2.82. Adjusted earnings per diluted share for the quarter and the year excludes pre-tax charges related to restructuring initiatives; impairments of certain intangible assets; and tax adjustments related primarily to deferred tax assets associated with certain U.S. leasing transactions. Adjusted earnings per diluted share also exclude losses from discontinued operations for the quarter and for the year.
On a Generally Accepted Accounting Principles (GAAP) basis, the company reported earnings per diluted share of $.36 for the fourth quarter, compared with a loss of $.27 per diluted share for the prior year. Earnings per diluted share for the year on a GAAP basis increased 21 percent to $2.00 from $1.66 for the prior year.
The company’s adjusted income from continuing operations was $160 million for the quarter and $583 million for the year. On a GAAP basis, the company reported net income for the quarter of $74 million and $420 million for the year.
Revenue for the quarter was $1.6 billion, a decline of 7 percent compared with the prior year driven primarily by currency. On a constant currency basis revenue declined less than 2 percent. For the full-year, currency had a nominal impact on revenue which increased 2 percent to $6.3 billion, and was within the company’s guidance range of 2 to 4 percent.
The company’s results for the quarter and the year are further summarized in the table below:
Free cash flow was $235 million for the quarter and $888 million for the year. This compares with the company’s guidance that free cash flow would be in excess of $800 million for the year.
On a GAAP basis, the company generated $249 million in cash from operations for the quarter and $990 million for the year.
During the quarter, the company used $72 million of cash for dividends and did not repurchase any of its shares. For the year, the company returned $292 million to shareholders through dividends and repurchased $333 million of its shares. The company still has $73 million of authorization remaining for future share repurchases.
Commenting on the quarter and the year, Chairman, President and CEO Murray D. Martin noted, “I am very pleased with the way our company performed during one of the most turbulent economic environments in recent history. On a full-year basis we generated robust cash flow, increased revenue, and grew adjusted EPS in line with current guidance. We believe these results were even more notable given the impact of currency. Significant currency fluctuation, particularly the strengthening of the U.S. dollar, reduced our earnings per share by five cents for the year, when compared with the original guidance we provided at the beginning of 2008.
“Our results highlight the resiliency of our business model, our disciplined focus on cash generation, and the execution of our restructuring initiatives. In late 2007, we initiated aggressive actions that we continued throughout 2008 to reduce our cost structure, streamline our operations and enhance our customer experience. The results of these actions can be seen in improving gross margins across nearly all our revenue streams, as well as improving EBIT margins in many of our business segments. Our enhanced actions in the fourth quarter 2008 will strengthen our ability to manage through the uncertainties and maximize the benefits of future economic recovery.
“In addition, we also took steps to further improve our capital position and increase our liquidity during these uncertain times. During the fourth quarter, we reduced our debt by $220 million, providing additional capital capacity. Throughout the year we maintained a strong investment grade credit rating for our debt and as a result, we continued to have unencumbered access to the commercial paper market.
“We will continue to invest in developing new products and services, enhancing our customer experience, and improving our business processes with the expectation that our business model will continue to generate substantial free cash flow in 2009. For the 27th consecutive year, our Board of Directors approved an increase in the quarterly dividend. The dividend for the first quarter will increase 3 percent to $.36 per common share.”