STAMFORD, Conn. — (BUSINESS WIRE) — November 5, 2019 — Pitney Bowes Inc. (NYSE: PBI), a global technology company that provides commerce solutions in the areas of ecommerce, shipping, mailing, data and financial services today announced its financial results for the third quarter 2019.

Quarterly Results:

• Revenue of $790 million, an increase of 4 percent; an increase of 6 percent when adjusted for both the impact of currency and market exits
• GAAP EPS loss of $0.02; Adjusted EPS of $0.24
• GAAP EPS includes a non-cash $0.16 per share impairment charge related to capitalized software costs incurred in the development of a new enterprise business platform in certain international markets
• GAAP cash from operations of $96 million; free cash flow of $69 million

Transaction signed and Debt Management:

• On August 26, 2019, the Company announced it entered into a definitive agreement to sell its Software Solutions business to Syncsort for $700 million in cash.
• The Company is using the majority of the net proceeds to pay down near-term debt maturities.
• On September 27, 2019, the Company repaid the balance of its $200 million September 2020 term loan.
• In November 2019, the Company replaced its existing revolving credit facility with a new revolving credit facility for $500 million and secured a new five-year Term Loan A for $400 million.
• In November 2019, the Company repaid the $150 million term loan due in November 2019 and the balance of the $300 million term loan due in December 2020.

“We made solid progress transforming our company in the third quarter,” said Marc B. Lautenbach. “Revenue grew six percent, when adjusted for both the impact of currency and market exits, driven by strong growth in Commerce Services and improved performance in SendTech. This was the strongest revenue performance for the company in some time and is affirmation that the capabilities we are building are in demand. Six percent revenue growth puts us on track to grow for the year, which will be our third consecutive year of growth. At the same time we continued to invest in our parcel network to accommodate our substantial growth in shipping volumes.”

Lautenbach added: “In August we announced the sale of our Software business to Syncsort. The transaction is anticipated to close by the end of the year, and we expect to use the majority of the net proceeds to pay down debt. With the conclusion of the sale, Pitney Bowes will move forward as a more streamlined technology company focusing on shipping, mailing, and financial services, which are all markets where we have competitive advantage.

“In addition to the debt we will pay down with the net proceeds, we recently also repaid term loans, secured a new Term Loan A and replaced our revolving credit facility. These actions in aggregate strengthen our balance sheet,” said Lautenbach.

Third Quarter 2019 Results

Revenue totaled $790 million, which was an increase of 4 percent versus prior year. Revenue increased 6 percent when adjusted for both the impact of currency and the January 2019 sale of direct operations in 6 smaller European markets (market exits).

Commerce Services revenue grew 15 percent. Sending Technology Solutions (SendTech Solutions) revenue declined 6 percent as reported and 5 percent when adjusted for the impact of currency. SendTech Solutions revenue declined 3 percent when adjusted for both the impact of currency and market exits.

GAAP earnings per diluted share (GAAP EPS) was a loss of $0.02, which includes a non-cash $0.16 per share impairment charge related to capitalized software costs incurred in the development of a new enterprise business platform in certain international markets.

Adjusted earnings per diluted share (Adjusted EPS) were $0.24.

GAAP and adjusted EPS included a net benefit of $0.13 related to the release of a foreign deferred tax asset valuation allowance.

The Company’s earnings per share results for the third quarter are summarized in the table below: