| (1) | Prior period amounts have been recast to conform to the current year presentation. | ||
| (2) | Segment EBIT excludes interest, taxes, general corporate expenses, restructuring charges, and other items that are not allocated to a particular business segment. | ||
| (3) | Includes financing interest expense and interest expense, net. | ||
| Pitney Bowes Inc. | ||||||||||||||||||||||||||||||||
| Reconciliation of Reported Consolidated Results to Adjusted Results | ||||||||||||||||||||||||||||||||
| (Unaudited; in thousands, except per share amounts) | ||||||||||||||||||||||||||||||||
| Three months ended December 31, | Twelve months ended December 31, | |||||||||||||||||||||||||||||||
| 2017 | 2016 | Y/Y Chg. | 2017 | 2016 | Y/Y Chg. | |||||||||||||||||||||||||||
| Reconciliation of reported revenue to revenue excluding currency | ||||||||||||||||||||||||||||||||
| Revenue, as reported | $ | 1,049,117 | $ | 887,069 | $ | 3,549,948 | $ | 3,406,575 | ||||||||||||||||||||||||
| (Favorable) unfavorable impact on revenue due to currency | (14,469 | ) | 1,222 | |||||||||||||||||||||||||||||
| Revenue, excluding currency | $ | 1,034,648 | $ | 887,069 | 17 | % | $ | 3,551,170 | $ | 3,406,575 | 4 | % | ||||||||||||||||||||
| Reconciliation of reported net income (loss) to adjusted earnings | ||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 89,948 | $ | (79,079 | ) | $ | 261,340 | $ | 111,850 | |||||||||||||||||||||||
| Loss from discontinued operations, net of tax | - | 750 | - | 2,701 | ||||||||||||||||||||||||||||
| Restructuring charges and asset impairments, net | 19,599 | 9,945 | 39,671 | 42,343 | ||||||||||||||||||||||||||||
| Goodwill impairment | - | 169,024 | - | 169,024 | ||||||||||||||||||||||||||||
| Gain on sale of technology | - | - | (5,605 | ) | - | |||||||||||||||||||||||||||
| Impact of divestiture transactions | - | 1,194 | - | 4,099 | ||||||||||||||||||||||||||||
| Transaction costs | 2,178 | - | 5,762 | - | ||||||||||||||||||||||||||||
| Loss on extinguishment of debt | 2,375 | - | 2,375 | - | ||||||||||||||||||||||||||||
| Tax legislation | (38,774 | ) | - | (38,774 | ) | - | ||||||||||||||||||||||||||
| Preferred stock redemption | - | (2,047 | ) | - | 2,800 | |||||||||||||||||||||||||||
| Net income, as adjusted | 75,326 | 99,787 | 264,769 | 332,817 | ||||||||||||||||||||||||||||
| Provision for income taxes, as adjusted | 18,563 | 46,820 | 84,586 | 154,062 | ||||||||||||||||||||||||||||
| Income from continuing operations before income taxes, as adjusted | 93,889 | 146,607 | 349,355 | 486,879 | ||||||||||||||||||||||||||||
| Interest, net | 43,839 | 40,442 | 164,162 | 144,211 | ||||||||||||||||||||||||||||
| EBIT, as adjusted | 137,728 | 187,049 | 513,517 | 631,090 | ||||||||||||||||||||||||||||
| Depreciation and amortization | 50,347 | 38,261 | 182,336 | 178,486 | ||||||||||||||||||||||||||||
| EBITDA, as adjusted | $ | 188,075 | $ | 225,310 | $ | 695,853 | $ | 809,576 | ||||||||||||||||||||||||
|
Reconciliation of reported diluted earnings per share to
adjusted diluted
|
||||||||||||||||||||||||||||||||
| Diluted earnings (loss) per share | $ | 0.48 | $ | (0.45 | ) | $ | 1.39 | $ | 0.49 | |||||||||||||||||||||||
| Loss from discontinued operations, net of tax | - | 0.00 | - | 0.01 | ||||||||||||||||||||||||||||
| Restructuring charges and asset impairments, net | 0.10 | 0.05 | 0.21 | 0.22 | ||||||||||||||||||||||||||||
| Goodwill impairment | - | 0.90 | - | 0.89 | ||||||||||||||||||||||||||||
| Gain on sale of technology | - | - | (0.03 | ) | - | |||||||||||||||||||||||||||
| Impact of divestiture transactions | - | 0.01 | - | 0.02 | ||||||||||||||||||||||||||||
| Transaction costs | 0.01 | - | 0.03 | - | ||||||||||||||||||||||||||||
| Loss on extinguishment of debt | 0.01 | - | 0.01 | - | ||||||||||||||||||||||||||||
| Tax legislation | (0.21 | ) | - | (0.21 | ) | - | ||||||||||||||||||||||||||
| Preferred stock redemption | - | 0.01 | - | 0.03 | ||||||||||||||||||||||||||||
| Diluted earnings per share, as adjusted | $ | 0.40 | $ | 0.53 | $ | 1.41 | $ | 1.68 | ||||||||||||||||||||||||
| Note : The sum of the earnings per share amounts may not equal the totals due to rounding. | ||||||||||||||||||||||||||||||||
|
Reconciliation of reported net cash from operating
activities to free cash
|
||||||||||||||||||||||||||||||||
| Net cash provided by operating activities (1) | $ | 165,236 | $ | 199,763 | $ | 495,813 | $ | 496,122 | ||||||||||||||||||||||||
| Capital expenditures | (51,428 | ) | (45,299 | ) | (170,990 | ) | (160,831 | ) | ||||||||||||||||||||||||
| Restructuring payments | 10,828 | 13,769 | 40,804 | 64,930 | ||||||||||||||||||||||||||||
| Pension contribution | - | - | - | 36,731 | ||||||||||||||||||||||||||||
| Reserve account deposits | 13,462 | (3,996 | ) | 10,954 | (2,183 | ) | ||||||||||||||||||||||||||
| Other | 7,396 | - | 7,396 | 335 | ||||||||||||||||||||||||||||
| Free cash flow | $ | 145,494 | $ | 164,237 | $ | 383,977 | $ | 435,104 | ||||||||||||||||||||||||
|
(1) |
Net cash provided by operating activities for the three and twelve months ended December 31, 2016 has been revised for a new accounting standard adopted January 1, 2017. |
