Pitney Bowes Inc. (NYSE:PBI) today reported first quarter 2012 results.
Revenue for the quarter was $1.3 billion, which was a decline of 5 percent when compared to the prior year. Excluding the impacts of currency movements, the revenue decline was 4 percent. Revenue for the quarter benefited from growth in the Software and Mail Services segments. The company also experienced improving trends in equipment sales in its Small and Medium Business Solutions (SMB) segments. However, as previously discussed, there continued to be declines in the SMB recurring revenue streams. Revenue was also adversely impacted by weakness in the Production Mail and Management Services segments.
Earnings per diluted share for the quarter on a Generally Accepted Accounting Principles (GAAP) basis was $0.79, an 87 percent increase versus the $0.42 per diluted share for the prior year. GAAP earnings per diluted share for the quarter included a $0.10 per share tax benefit in discontinued operations, plus an $0.11 per share tax benefit in continuing operations, resulting from the resolution of additional tax matters with the IRS. GAAP earnings per diluted share for the quarter also included a net $0.06 per share benefit from the sale of leveraged lease assets in Canada. Excluding the tax benefits noted above, as well as the sale of the leveraged lease assets, adjusted earnings per diluted share for the quarter was $0.52, as detailed in the table below.
|Discontinued Operations - net tax benefit||($0.10)|
|Sale of Leveraged Lease Assets||($0.06)|
|Adjusted EPS from Continuing Operations including net tax benefit||$0.63|
|Continuing Operations - net tax benefit||($0.11)|
|Adjusted EPS from Continuing Operations excluding net tax benefit||$0.52|
Free cash flow for the quarter was $211 million, while on a GAAP basis, the company generated $96 million in cash from operations. In comparison to the prior year, free cash flow was impacted by higher working capital requirements, due to timing of disbursements; less of a benefit from finance receivables; and higher capital expenditures. During the quarter, the company used $75 million of cash for dividends and contributed $95 million to its pension funds. The company also retired $150 million of its term debt. The company did not repurchase any of its shares this quarter.
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