Pitney Bowes Announces Second Quarter 2014 Results

Pitney Bowes has provided a quantitative reconciliation to GAAP in supplemental schedules. This information may also be found at the Company's web site www.pb.com/investorrelations.

This document contains “forward-looking statements” about its expected or potential future business and financial performance. For us forward-looking statements include, but are not limited to, statements about its future revenue and earnings guidance and other statements about future events or conditions. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to: mail volumes; the uncertain economic environment; timely development, market acceptance and regulatory approvals, if needed, of new products; fluctuations in customer demand; changes in postal regulations; interrupted use of key information systems; management of outsourcing arrangements; the implementation of a new enterprise resource planning system; changes in business portfolio; foreign currency exchange rates; changes in our credit ratings; management of credit risk; changes in interest rates; the financial health of national posts; and other factors beyond its control as more fully outlined in the Company's 2013 Form 10-K Annual Report and other reports filed with the Securities and Exchange Commission. Pitney Bowes assumes no obligation to update any forward-looking statements contained in this document as a result of new information, events or developments.

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, 2014 and 2013, and consolidated balance sheets at June 30, 2014 and December 31, 2013 are attached.


Pitney Bowes Inc.
Consolidated Statements of Income
(Unaudited)

(Dollars in thousands, except per share data)
	Three months ended June 30,						Six months ended June 30,
		2014			2013			2014			2013
Revenue:
Equipment sales	$	191,518		$	225,224		$	380,574		$	421,991
Supplies		76,284			71,275			155,801			144,493
Software		109,065			100,482			200,620			187,494
Rentals		122,443			129,404			246,022			258,518
Financing		107,644			112,820			217,694			226,707
Support services		158,190			160,303			316,442			322,892
Business services		193,306			151,154			378,794			297,930

Total revenue		958,450			950,662			1,895,947			1,860,025

Costs and expenses:
Cost of equipment sales		88,818			112,079			171,352			206,622
Cost of supplies		23,505			22,246			47,659			45,092
Cost of software		33,484			25,604			63,648			50,395
Cost of rentals		25,193			25,114			50,637			51,512
Financing interest expense		20,413			18,951			40,066			37,970
Cost of support services		96,722			99,337			195,703			201,866
Cost of business services		135,024			108,168			263,960			210,523
Selling, general and administrative		338,384			353,923			689,759			705,577
Research and development		28,649			27,331			54,841			56,582
Restructuring charges		8,299			19,031			18,140			19,031
Other interest expense		22,714			31,347			47,631			62,086
Interest income		(1,232	)		(1,302	)		(2,085	)		(3,050	)
Other expense, net		-			-			61,657			25,121

Total costs and expenses		819,973			841,829			1,702,968			1,669,327

Income from continuing operations before income taxes		138,477			108,833			192,979			190,698

Provision for income taxes		46,335			24,218			54,371			42,013

Income from continuing operations		92,142			84,615			138,608			148,685

Income (loss) from discontinued operations, net of tax		6,717			(89,254	)		9,518			(81,224	)

Net income (loss) before attribution of noncontrolling interests		98,859			(4,639	)		148,126			67,461

Less: Preferred stock dividends of subsidiaries attributable
to noncontrolling interests		4,594			4,594			9,188			9,188

Net income (loss) - Pitney Bowes Inc.	$	94,265		$	(9,233	)	$	138,938		$	58,273


Amounts attributable to common stockholders:
Income from continuing operations	$	87,548		$	80,021		$	129,420		$	139,497
Income (loss) from discontinued operations		6,717			(89,254	)		9,518			(81,224	)

Net income (loss) - Pitney Bowes Inc.	$	94,265		$	(9,233	)	$	138,938		$	58,273

Basic earnings per share attributable to common stockholders ⁽¹⁾ :
Continuing operations		0.43			0.40			0.64			0.69
Discontinued operations		0.03			(0.44	)		0.05			(0.40	)

Net income (loss) - Pitney Bowes Inc.	$	0.47		$	(0.05	)	$	0.69		$	0.29

Diluted earnings per share attributable to common stockholders ⁽¹⁾ :
Continuing operations		0.43			0.39			0.63			0.69
Discontinued operations		0.03			(0.44	)		0.05			(0.40	)

Net income (loss) - Pitney Bowes Inc.	$	0.46		$	(0.05	)	$	0.68		$	0.29

⁽¹⁾		The sum of the earnings per share amounts may not equal the totals above due to rounding.

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