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Pitney Bowes Inc.
Business Segments (Unaudited; in thousands) |
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| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||
| 2018 | 2017 | % Change | 2018 | 2017 | % Change | ||||||||||||||||||||
| REVENUE | |||||||||||||||||||||||||
| Global Ecommerce | $ | 239,100 | $ | 94,506 | >100% | $ | 485,690 | $ | 182,658 | >100% | |||||||||||||||
| Presort Services | 122,730 | 118,452 | 4 | % | 257,188 | 251,129 | 2 | % | |||||||||||||||||
| Commerce Services | 361,830 | 212,958 | 70 | % | 742,878 | 433,787 | 71 | % | |||||||||||||||||
| North America Mailing | 314,546 | 340,949 | (8 | %) | 640,115 | 696,902 | (8 | %) | |||||||||||||||||
| International Mailing | 93,358 | 95,425 | (2 | %) | 191,395 | 188,624 | 1 | % | |||||||||||||||||
| Small & Medium Business Solutions | 407,904 | 436,374 | (7 | %) | 831,510 | 885,526 | (6 | %) | |||||||||||||||||
| Software Solutions | 91,702 | 81,081 | 13 | % | 167,996 | 154,280 | 9 | % | |||||||||||||||||
| Total revenue | $ | 861,436 | $ | 730,413 | 18 | % | $ | 1,742,384 | $ | 1,473,593 | 18 | % | |||||||||||||
| EBIT | |||||||||||||||||||||||||
| Global Ecommerce | $ | (5,993 | ) | $ | (4,030 | ) | (49 | %) | $ | (13,704 | ) | $ | (8,300 | ) | (65 | %) | |||||||||
| Presort Services | 12,565 | 19,270 | (35 | %) | 39,591 | 49,987 | (21 | %) | |||||||||||||||||
| Commerce Services | 6,572 | 15,240 | (57 | %) | 25,887 | 41,687 | (38 | %) | |||||||||||||||||
| North America Mailing | 115,193 | 120,797 | (5 | %) | 234,763 | 262,041 | (10 | %) | |||||||||||||||||
| International Mailing | 13,215 | 14,020 | (6 | %) | 29,246 | 27,430 | 7 | % | |||||||||||||||||
| Small & Medium Business Solutions | 128,408 | 134,817 | (5 | %) | 264,009 | 289,471 | (9 | %) | |||||||||||||||||
| Software Solutions | 18,433 | 5,091 | >100% | 20,925 | 6,397 | >100% | |||||||||||||||||||
| Segment EBIT (1) | $ | 153,413 | $ | 155,148 | (1 | %) | $ | 310,821 | $ | 337,555 | (8 | %) | |||||||||||||
| EBITDA | |||||||||||||||||||||||||
| Global Ecommerce | $ | 9,474 | $ | 3,157 | >100% | $ | 16,193 | $ | 6,210 | >100% | |||||||||||||||
| Presort Services | 19,188 | 26,196 | (27 | %) | 52,376 | 64,111 | (18 | %) | |||||||||||||||||
| Commerce Services | 28,662 | 29,353 | (2 | %) | 68,569 | 70,321 | (2 | %) | |||||||||||||||||
| North America Mailing | 132,569 | 137,157 | (3 | %) | 268,996 | 294,427 | (9 | %) | |||||||||||||||||
| International Mailing | 17,469 | 18,368 | (5 | %) | 38,021 | 36,475 | 4 | % | |||||||||||||||||
| Small & Medium Business Solutions | 150,038 | 155,525 | (4 | %) | 307,017 | 330,902 | (7 | %) | |||||||||||||||||
| Software Solutions | 20,819 | 7,381 | >100% | 25,732 | 10,775 | >100% | |||||||||||||||||||
| Segment EBITDA (2) | $ | 199,519 | $ | 192,259 | 4 | % | $ | 401,318 | $ | 411,998 | (3 | %) | |||||||||||||
|
Reconciliation of segment EBITDA to net income |
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| Segment EBITDA | $ | 199,519 | $ | 192,259 | $ | 401,318 | $ | 411,998 | |||||||||||||||||
| Less: Segment depreciation and amortization (3) | (46,106 | ) | (37,111 | ) | (90,497 | ) | (74,443 | ) | |||||||||||||||||
| Segment EBIT | 153,413 | 155,148 | 310,821 | 337,555 | |||||||||||||||||||||
| Corporate expenses | (46,477 | ) | (52,549 | ) | (97,561 | ) | (110,151 | ) | |||||||||||||||||
| Adjusted EBIT | 106,936 | 102,599 | 213,260 | 227,404 | |||||||||||||||||||||
| Interest, net (4) | (41,969 | ) | (40,443 | ) | (85,047 | ) | (79,093 | ) | |||||||||||||||||
| Restructuring charges and asset impairments, net | (11,503 | ) | (25,990 | ) | (12,407 | ) | (27,639 | ) | |||||||||||||||||
| Gain on sale of technology | - | 6,085 | - | 6,085 | |||||||||||||||||||||
| Transaction costs | - | - | (1,053 | ) | - | ||||||||||||||||||||
| Provision for income taxes | (6,458 | ) | (790 | ) | (22,721 | ) | (27,872 | ) | |||||||||||||||||
| Income from continuing operations | 47,006 | 41,461 | 92,032 | 98,885 | |||||||||||||||||||||
| Income from discontinued operations, net of tax | 1,208 | 7,440 | 9,695 | 15,149 | |||||||||||||||||||||
| Net income | $ | 48,214 | $ | 48,901 | $ | 101,727 | $ | 114,034 | |||||||||||||||||
| (1) | Segment EBIT excludes interest, taxes, general corporate expenses, restructuring charges, and other items that are not allocated to a particular business segment. | |
| (2) | Segment EBITDA is calculated as Segment EBIT plus segment depreciation and amortization expense. | |
| (3) | Includes depreciation and amortization expense of reporting segments only. Does not include corporate depreciation and amortization expense. | |
| (4) | Includes financing interest expense and interest expense, net. | |
