This excerpt taken from the PBI 8-K filed May 5, 2009.
Pitney Bowes Announces First Quarter Results for 2009
STAMFORD, Conn.--(BUSINESS WIRE)--May 5, 2009--Pitney Bowes Inc. (NYSE:PBI) today reported first quarter 2009 financial results.
Revenue for the quarter was $1.38 billion compared with $1.57 billion in the prior year. Revenue declined 12 percent including a 6 percent negative currency impact. Adjusted earnings per diluted share from continuing operations was $0.55 which compares with $0.66 for the prior year.
On a Generally Accepted Accounting Principles (GAAP) basis, earnings per diluted share was $0.50 compared with $0.56 for the prior year. GAAP earnings per diluted share includes a $0.05 non-cash tax charge associated with out-of-the money stock options that expired during the quarter and a $0.01 gain from discontinued operations.
Free cash flow for the quarter increased 19 percent versus the first quarter 2008 to $240 million while on a GAAP basis the company generated $276 million in cash from operations. During the quarter the company used $74 million of cash for dividends to stockholders and reduced debt outstanding by about $95 million.
“I am encouraged by our results which reflect the profit inherent in our underlying revenue streams and the achievement of our cost management objectives, even while operating in one of the toughest economic environments in recent history,” noted Pitney Bowes Chairman, President and CEO Murray D. Martin. “Excluding the negative currency impacts of $0.07 per share and $0.02 per share from increased pension costs, our adjusted earnings per diluted share declined only 3 percent despite a 6 percent decline in revenue on a constant currency basis.
“During the quarter, we continued our focus on customer retention, expense management, and cash flow generation to mitigate these economic headwinds. Existing customer relationships play an important role in future growth, which is why we are pleased with our success in customer retention.
“We are realizing the benefits of the actions we have taken to streamline our costs and expenses. Our selling, general and administrative expenses declined by $53 million on a reported basis, and we reduced our expenses by nearly $25 million on a constant currency basis when compared with the prior year, excluding incremental pension expenses. We also improved gross margins related to both our software and support services revenues. At the same time, we continued to invest in the long-term growth of the business, including maintaining consistent year-over-year investment in research and development. We continued to have robust free cash flow as a result of our ongoing focus on the balance sheet and capital expenditures.”
The company’s results for the quarter are further summarized in the table below: