Note: Consolidated statements of income; revenue and EBIT by business segment; and reconciliation of GAAP to non-GAAP measures for the three and six months ended June 30, 2016 and 2015, and consolidated balance sheets at June 30, 2016 and December 31, 2015 are attached.
| Pitney Bowes Inc. | |||||||||||||||||
| Consolidated Statements of Income | |||||||||||||||||
| (Unaudited; in thousands, except share and per share amounts) | |||||||||||||||||
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||||
| Revenue: | |||||||||||||||||
| Equipment sales | $ | 152,641 | $ | 165,507 | $ | 312,002 | $ | 331,471 | |||||||||
| Supplies | 65,274 | 70,636 | 137,325 | 144,004 | |||||||||||||
| Software | 90,615 | 99,184 | 168,673 | 185,541 | |||||||||||||
| Rentals | 102,869 | 111,312 | 206,959 | 225,309 | |||||||||||||
| Financing | 91,609 | 101,437 | 189,032 | 207,067 | |||||||||||||
| Support services | 131,418 | 139,237 | 259,678 | 278,795 | |||||||||||||
| Business services | 201,460 | 193,578 | 406,806 | 399,385 | |||||||||||||
| Total revenue | 835,886 | 880,891 | 1,680,475 | 1,771,572 | |||||||||||||
| Costs and expenses: | |||||||||||||||||
| Cost of equipment sales | 78,055 | 79,043 | 149,594 | 154,056 | |||||||||||||
| Cost of supplies | 19,624 | 21,624 | 40,314 | 44,283 | |||||||||||||
| Cost of software | 26,983 | 28,501 | 53,798 | 58,365 | |||||||||||||
| Cost of rentals | 18,415 | 21,003 | 38,910 | 41,704 | |||||||||||||
| Financing interest expense | 13,495 | 17,868 | 28,410 | 36,638 | |||||||||||||
| Cost of support services | 74,742 | 81,507 | 149,991 | 165,106 | |||||||||||||
| Cost of business services | 140,830 | 135,636 | 276,368 | 275,555 | |||||||||||||
| Selling, general and administrative | 288,580 | 315,578 | 615,462 | 630,107 | |||||||||||||
| Research and development | 34,513 | 28,492 | 61,081 | 54,540 | |||||||||||||
| Restructuring charges and asset impairments, net | 26,076 | 14,350 | 33,009 | 14,269 | |||||||||||||
| Interest expense, net | 20,799 | 20,971 | 40,100 | 45,035 | |||||||||||||
| Other expense (income), net | 536 | (93,135 | ) | 536 | (93,135 | ) | |||||||||||
| Total costs and expenses | 742,648 | 671,438 | 1,487,573 | 1,426,523 | |||||||||||||
| Income from continuing operations before income taxes | 93,238 | 209,453 | 192,902 | 345,049 | |||||||||||||
| Provision for income taxes | 33,394 | 52,351 | 70,418 | 102,898 | |||||||||||||
| Income from continuing operations | 59,844 | 157,102 | 122,484 | 242,151 | |||||||||||||
| Loss from discontinued operations, net of tax | (1,660 | ) | (739 | ) | (1,660 | ) | (582 | ) | |||||||||
| Net income | 58,184 | 156,363 | 120,824 | 241,569 | |||||||||||||
| Less: Preferred stock dividends attributable to noncontrolling interests | 4,594 | 4,593 | 9,188 | 9,187 | |||||||||||||
| Net income - Pitney Bowes Inc. | $ | 53,590 | $ | 151,770 | $ | 111,636 | $ | 232,382 | |||||||||
| Amounts attributable to common stockholders: | |||||||||||||||||
| Net income from continuing operations | $ | 55,250 | $ | 152,509 | $ | 113,296 | $ | 232,964 | |||||||||
| Loss from discontinued operations, net of tax | (1,660 | ) | (739 | ) | (1,660 | ) | (582 | ) | |||||||||
| Net income - Pitney Bowes Inc. | $ | 53,590 | $ | 151,770 | $ | 111,636 | $ | 232,382 | |||||||||
| Basic earnings per share attributable to common stockholders (1) : | |||||||||||||||||
| Continuing operations | $ | 0.29 | $ | 0.76 | $ | 0.60 | $ | 1.16 | |||||||||
| Discontinued operations | (0.01 | ) | - | (0.01 | ) | - | |||||||||||
| Net income - Pitney Bowes Inc. | $ | 0.29 | $ | 0.75 | $ | 0.59 | $ | 1.15 | |||||||||
| Diluted earnings per share attributable to common stockholders (1) : | |||||||||||||||||
| Continuing operations | $ | 0.29 | $ | 0.75 | $ | 0.59 | $ | 1.15 | |||||||||
| Discontinued operations | (0.01 | ) | - | (0.01 | ) | - | |||||||||||
| Net income - Pitney Bowes Inc. | $ | 0.28 | $ | 0.75 | $ | 0.59 | $ | 1.15 | |||||||||
| Weighted-average shares used in diluted earnings per share | 188,362,278 | 202,839,944 | 190,806,261 | 202,634,107 | |||||||||||||
| (1) | The sum of the earnings per share amounts may not equal the totals due to rounding. | |
