Pitney Bowes (PBI)

Pitney Bowes Announces Third Quarter Results for 2008

STAMFORD, Conn.--(BUSINESS WIRE)--November 3, 2008--Pitney Bowes Inc. (NYSE:PBI) today reported third quarter 2008 financial results.

The company’s third quarter revenue increased 3 percent to $1.5 billion and adjusted income from continuing operations was $139 million. Adjusted income for the quarter excludes pre-tax charges of $40 million related to previously announced restructuring initiatives to reduce costs, accelerate operational improvements and transition the company’s product lines. Adjusted income also excludes $9 million of pre-tax charges related to impairments of certain intangible assets in the Management Services and Marketing Services segments. On a Generally Accepted Accounting Principles (GAAP) basis, the company reported income from continuing operations of $100 million and net income of $98 million.

Adjusted earnings per diluted share from continuing operations for the third quarter was $0.67, which compares with $0.63 for the prior year. On a GAAP basis, the company reported earnings per diluted share from continuing operations of $0.48 for the quarter, compared with $0.58 per diluted share for the prior year. Earnings per diluted share for the quarter was $0.47 including discontinued operations, compared with $0.58 in the prior year.

The company’s results for the quarter are further summarized in the table below:

Free cash flow for the quarter was $252 million, while on a GAAP basis cash from operations was $281 million. Year-to-date, free cash flow was $653 million, while on a GAAP basis cash from operations was $742 million.

During the quarter, the company used $73 million of cash for dividends and $61 million to buy back 1.7 million of its shares. The remaining authorization for future share repurchases was $73 million at the end of the third quarter. Year-to-date, the company has returned $553 million to shareholders in the form of dividends and share repurchases.

Commenting on the company’s performance, President and CEO Murray D. Martin noted, “Our business model of high recurring revenue and our diverse customer base provide us with a measure of stability as these turbulent economic events unfold around the world. The rapid and significant appreciation of the U.S. dollar near the end of the quarter resulted in a slightly negative impact on earnings versus the prior year and had a $0.03 negative impact on the third quarter versus the second quarter earnings.

“Concerns about the availability of credit and the status of the economy have delayed some customers’ buying decisions, particularly for large ticket sales in our software and production mail businesses. However, aggressive cost management, as part of the transition initiatives we began at the end of last year, reduced our cost structure as a percent of revenue, and improved our year-over-year EBIT margins in U.S. Mailing, International Mailing, U.S. Management Services, Production Mail, and Marketing Services.

“We continue to generate very strong free cash flow and expect that trend to continue. In fact, we are forecasting annual free cash flow in excess of $800 million, marking our third and largest increase in our outlook this year.

“The combination of our business model, strong free cash flow, and excellent credit ratings has allowed us continuous access to the commercial paper markets. We have issued commercial paper at more normal maturity levels and at favorable interest rates, even during this period of market uncertainty. Our strong liquidity position enables us to satisfy all of our financing needs. We will continue to be prudent on how we spend and invest our cash to maximize shareholder return.”

Pitney Bowes Announces Second Quarter Results for 2008

STAMFORD, Conn.--(BUSINESS WIRE)--Pitney Bowes Inc. (NYSE:PBI) today reported second quarter 2008 financial results.

Revenue increased 3 percent to $1.6 billion and adjusted income from continuing operations was $144 million. Adjusted income for the quarter excludes charges related to restructuring initiatives that the company announced on November 15, 2007 to reduce costs, accelerate operational improvements and transition its product line. On a Generally Accepted Accounting Principles (GAAP) basis, the company reported income from continuing operations of $131 million and net income of $128.5 million.

Adjusted earnings per diluted share from continuing operations for the second quarter was $0.69, which compares with $0.71 for the prior year, when the company benefited from sales of equipment that helped customers comply with the provisions of the U.S. Postal Service rate case, which requires that postage be based on shape as well as weight. On a GAAP basis, the company reported earnings per diluted share from continuing operations of $0.63 for the quarter, compared with $0.69 per diluted share for the prior year. Diluted earnings per share for the quarter was $0.61 including discontinued operations, compared with $0.68 in the prior year.

The company’s results for the quarter are further summarized in the table below:

Free cash flow for the quarter was $205 million, while cash from operations was $213 million. Year-to-date, free cash flow was $401 million, while cash from operations was $461 million.

During the quarter, the company used $73 million of cash for dividends and $92 million to buy back 2.6 million of its shares. The remaining authorization for future share repurchases was $134 million at the end of the second quarter. Year-to-date, the company has returned $419 million to shareholders in the form of dividends and share repurchases.

Commenting on the company’s performance, President and CEO Murray D. Martin noted, “We are pleased that we remain on target to deliver full-year financial results consistent with our original guidance despite difficult comparisons for the first half of the year, and the challenging economic environment. We continue to experience strengthening demand in key markets outside of the U.S. for a wide range of our solutions and services that help businesses target, personalize, produce and distribute relevant communications to their customers. As we did in the first quarter, we are pleased to again increase our annual free cash flow guidance based on the year-to-date strong generation of cash, and our continued focus on working capital and expense management for the balance of the year.

“At the end of the quarter we concluded our strategic review of the U.S. Management Services operations and decided to retain and grow this business. During the review, we identified and began to execute actions to enhance Management Services’ profitability and long-term performance. We have already begun to see the benefits of these actions reflected in the operation’s improving margins.”

Pitney Bowes Announces First Quarter Results for 2008

• Revenue growth of 11%
• Adjusted earnings per diluted share of $0.66
• GAAP earnings per diluted share of $0.56
• Strong free cash flow of $197 million and cash from operations of $248 million
• Company increases annual cash flow guidance to $625 - $700 million, and reaffirms guidance of $2.80 to $2.90 for adjusted earnings per diluted share for 2008

STAMFORD, Conn.--(BUSINESS WIRE)--Pitney Bowes Inc. (NYSE:PBI) today reported first quarter 2008 financial results.

Revenue increased 11 percent to $1.6 billion and adjusted income from continuing operations was $140 million. Adjusted income for the quarter excludes charges related to restructuring initiatives that the company announced on November 15, 2007 to reduce costs, accelerate operational improvements and transition its product line; and a tax adjustment in the UK. On a Generally Accepted Accounting Principles (GAAP) basis, the company reported net income from continuing operations of $123 million.

Adjusted earnings per diluted share for the first quarter was $0.66, which compares with $0.66 for the prior year. On a GAAP basis, the company reported earnings per diluted share from continuing operations of $0.58 for the quarter, compared with $0.66 per diluted share for the prior year. Diluted earnings per share for the quarter was $0.56 including discontinued operations, compared with $0.65 the prior year.

The company’s results for the quarter are further summarized in the table below:

Free cash flow for the quarter was $197 million, while cash from operations was $248 million for the first quarter.

During the quarter, the company used $74 million of cash for dividends and $180 million to buy back 5 million of its shares. The remaining authorization for future share repurchases was $227 million at the end of the first quarter.

Commenting on the quarter, President and CEO Murray D. Martin noted, “We are encouraged by our ability to achieve a solid performance despite the difficult economic environment. Today more than ever, businesses of all sizes are looking for ways to connect information, offerings, and goods with their existing and potential customers in a cost efficient manner. Our diverse portfolio of mail and document management solutions assists businesses in generating revenue, reducing costs, and enhancing the impact of their customer communications through targeting and customization.”