Pitney Bowes Reports Strong Second Quarter Earnings.STAMFORD Stamford, town, England Stamford, town (1991 pop. 18,127), in the Parts of Kesteven, Lincolnshire, E central England, on the Welland River. It is a market town. Products include diesel engines, electrical equipment, bricks, and tiles. , Conn.--(BUSINESS WIRE)--July 20, 1999-- Highlights - 18th Consecutive Quarter of Double-Digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. Earnings Per Share Growth - Continued Strength in Mailing and Integrated Logistics (MAIL) Segment - Decision to Dispose of To determine the fate of; to exercise the power of control over; to fix the condition, application, employment, etc. of; to direct or assign for a use. See also: Dispose Mortgage Servicing Mortgage servicing The collection of monthly payments and penalties, record keeping, payment of insurance and taxes, and possible settlement of default , involved with a mortgage loan. Unit to Focus on Core Businesses Pitney Bowes  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . Inc. (NYSE NYSE See: New York Stock Exchange : PBI PBI protein-bound iodine. PBI abbr. protein-bound iodine PBI, n See iodine, protein-bound. PBI protein-bound iodine. ) today reported strong second quarter results with a 21.5-percent increase in diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the to 58 cents. Revenue increased by nine percent on a consolidated basis to $1.1 billion for the strongest second quarter growth rate in nine years. Income from continuing operations grew 19 percent to $157.4 million versus $132.8 million in the second quarter 1998. The company has now recorded 18 consecutive quarters of double-digit, year-on-year diluted earnings per share growth from continuing operations. Net income, including a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charge for discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. attributable to the company's decision to dispose of its mortgage servicing business, is $129.7 million or 48 cents per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, versus $142.0 million or 51 cents per diluted share in the second quarter 1998. Chairman and Chief Executive Officer Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. J. Critelli discussed the company's performance during the quarter: "We are pleased with this quarter's strong financial performance, which was led by our Mailing and Integrated Logistics (MAIL) segment. The segment continues to benefit from demand for our customized mail creation and full range of shipping solutions, complementing our core mailing and financing offerings. As a result, we have again experienced excellent revenue growth and expanding operating profit margin Operating profit margin The ratio of operating profit to net sales. in our largest business segment." Adds Mr. Critelli: "The underlying strength of our mailing and shipping business has allowed us to accelerate our efforts to position the Office Solutions segment for even greater future profitable growth." In segment performance for the quarter, Mailing and Integrated Logistics posted strong revenue growth of 12 percent and a 22-percent increase in operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. . The segment includes revenues and related expenses from the rental, sale and financing of mailing and shipping equipment, related supplies and service, and software. Contributors to growth included: - The Internet's positive impact on package delivery and direct mail volumes. Our multi-carrier, shipping and logistics systems enable customers to rate shop for the most cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. and efficient ways to ship overnight letters and packages with systems which integrate with enterprise-wide resource planning Resource planning may refer to:
systems - Customized, high-speed high-speed adj. 1. Operated or designed for operation at high speed: a high-speed food processor. 2. Taking place at high speed: a high-speed chase. 3. production mail equipment used in Automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. Document Factories and high-volume mailrooms - Advanced, multi-functional mailing systems, such as ParagonTM and the recently introduced digital GalaxyTM system, which enable customers to process mid- mid- pref. Middle: midbrain. to high volumes of mail quickly and conveniently - Demand for Mail Creation solutions, led by DocuMatchTM ,which prints and prepares customized, one-to-one one-to-one adj. 1. Allowing the pairing of each member of a class uniquely with a member of another class. 2. Mathematics marketing materials The U.S. Postal Service The U.S. Postal Service (USPS) processes and delivers mail to individuals and businesses within the United States. The service seeks to improve its performance through the development of efficient mail-handling systems and operates its own planning and engineering programs. recently honored hon·or n. 1. High respect, as that shown for special merit; esteem: the honor shown to a Nobel laureate. 2. a. Good name; reputation. b. Pitney Bowes for helping customers transition to advanced metering technologies by converting 98 percent of its meter unit base to electronic and digital systems. In fact, with over 40 percent of our meter unit base now digital, the company continues to lead in delivering the most advanced technologies to the marketplace, while recognizing excellent supplies revenues and reduced costs related to supporting new metering systems. As the inventor INVENTOR. One who invents or finds out something. 2. The patent laws of the United States authorize a patent to be issued to the original inventor; if the invention is suggested by another, he is not the inventor within the meaning of those laws; but in that of PC-based postage POSTAGE. The money charged by law for carrying letters, packets and documents by mail. By act of congress of March 3, 1851, Minot's Statute at Large, U. S. 587, it is enacted as follows: 2.-Sec. 1. , Pitney Bowes is excited about the potential benefits this innovative technology will deliver for certain mailing applications of small businesses and entrepreneurs who today use stamps. While several other companies are currently testing products, Pitney Bowes is the only company that has two versions of the PC-based postage product in the U.S. Postal Service supervised su·per·vise tr.v. su·per·vised, su·per·vis·ing, su·per·vis·es To have the charge and direction of; superintend. [Middle English *supervisen, from Medieval Latin beta product review and testing process: - ClickStampTM Plus, that allows customers to print postage via the computer without a constant connection to the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the , and - ClickStampTM Online, which is designed for customers who prefer to maintain an Internet connection. The extensive testing process consists of three beta phases with limited quantities of product available in specific Zip codes zip code System of postal-zone codes (zip stands for “zone improvement plan”) introduced in the U.S. in 1963 to improve mail delivery and exploit electronic reading and sorting capabilities. . During the limited launch testing phase, companies will be allowed to place up to 10,000 units, with a review by the U.S. Postal Service, before permission is given to distribute another 10,000 units. None of the companies involved in the testing process have been given a timetable “Schedule” redirects here. For other uses, see Schedule (disambiguation). A timetable or schedule is an organized list or schedule, usually set out in tabular form, providing information about a series of arranged events: in particular, the time at which for the unrestricted, national availability of this product. The Office Solutions Segment includes Pitney Bowes Office Systems and Pitney Bowes Management Services. Second-quarter performance in this segment featured four- percent revenue growth and a five- percent increase in operating profit. During the quarter, Management Services revenues grew four percent as the company continues to focus on profitable growth through providing high value services, such as business recovery, to both new and existing customers. The focus on profitability resulted in double-digit operating profit growth. Office Systems, featuring Copier and Facsimile, grew revenues five percent for the quarter. The copier business remains solid, posting strong sales growth. Additionally, the business continues the transition from stand-alone (jargon) stand-alone - Capable of operating without other programs, libraries, computers, hardware, networks, etc. Exactly what is absent is presumed to be obvious from context. "We only run Windows on stand-alone PCs because it's too dangerous to run it on networked ones." analog copiers, to digital, networked solutions while strengthening the ability to sell to national and major accounts. Facsimile revenues were helped by strong unit placements partly offset by ongoing price pressure in the market. The Capital Services Segment includes primarily asset- and fee-based income generated by large ticket external assets. During the quarter, the segment's revenue decreased by two percent while its operating profit increased five percent. This performance is consistent with the company's previously announced strategy to shift from asset-based income by lowering the asset base and concentrating on fee-based income opportunities. The results from Mortgage Servicing have been excluded from continuing operations. Pitney Bowes decided to dispose of Atlantic Mortgage & Investment Corporation (AMIC Am´ic a. 1. (Chem.) Related to, or derived, ammonia; - used chiefly as a suffix; as, amic acid; phosphamic acid. s> Amic acid (Chem. ) after an extensive review of various strategic options to determine how best to enhance shareholder value. This decision will also allow the company to actively market the business and focus on its core businesses. The company has recorded a $27.7 million after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. charge, which includes costs associated with: - Net loss from mortgage servicing operations of $2.7 million for the second quarter primarily attributable to increased amortization of mortgage servicing rights - Expected loss of $34.3 million after-tax on the disposal of AMIC offset by gains of $9.3 million from the company's sale of Colonial Pacific Leasing Corporation (CPLC CPLC Caporal Chef CPLC Chicanos Por La Causa, Inc (Phoenix, Arizona) CPLC Citizen Police Liaison Committee (Pakistan) CPLC Computer Professional Language Center, Inc (New York, NY) ) completed in 1998 The company commenced its review of AMIC earlier this year. The process was consistent with earlier reviews of its financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. businesses, which resulted in the GATX GATX General American Transportation Corporation transaction in 1997 and the CPLC transaction in 1998. The strategic review was undertaken to address the changing profile of the mortgage servicing industry, the dynamic interest rate environment and the potential impact of fluctuating fluc·tu·ate v. fluc·tu·at·ed, fluc·tu·at·ing, fluc·tu·ates v.intr. 1. To vary irregularly. See Synonyms at swing. 2. To rise and fall in or as if in waves; undulate. v. interest rates and prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. patterns on the business in the future. Mr. Critelli concluded, "This quarter we continued to take actions that will maximize long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. shareholder value. While we have decided to exit the mortgage servicing business, the quarter's performance underscores the ongoing demand for advanced business messaging solutions worldwide. We will continue to invest in research and development and provide innovative products and services that reduce the cost, increase the efficiency and enhance the productivity of mail and messaging. The outlook for our business remains very positive." The company previously announced an 11.6-million share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program. During the second quarter the company repurchased approximately 1.9 million shares on the open market under this program, for a total of 4.1 million shares repurchased year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. . Second quarter 1999 revenue included $546.4 million from sales, up 11 percent from $492.3 million in the second quarter of 1998; $418.8 million from rentals and financing, up six percent from $393.8 million; and $140.3 million from support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services , up nine percent from $128.5 million. Second quarter 1999 net income was $129.7 million, or 48 cents per diluted share, compared to $142.0 million, or 51 cents per diluted share, in 1998. Second quarter net income included a $27.7 million charge, or 10 cents per diluted share related to discontinued operations, compared to $9.2 million of income, or three cents per diluted share, in 1998. For the six-month period ended June June: see month. 30, 1999 revenue was $2.155 billion, up nine percent from $1.968 billion in 1998; and net income in 1999 was $272.0 million, or 99 cents per diluted share, compared to $271.7 million, or 97 cents per diluted share in 1998. The year-to-date net income included a $24.0 million net after-tax charge, or nine cents per diluted share, for discontinued operations compared to $16.6 million of income, or six cents per diluted share, in 1998. Pitney Bowes is a global provider of informed mail and messaging management. The forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. contained in this news release involve risks and uncertainties, and are subject to change based on various important factors including timely development and acceptance of new products, gaining product approval, successful entry into new markets, changes in interest rates, and changes in postal regulations, as more fully outlined in the company's 1998 Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. Annual Report filed with the Securities and Exchange Commission. Note: Consolidated statements of income for the three and six months ended June 30, 1999 and 1998 and consolidated balance sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. at June 30, 1999, December December: see month. 31, 1998, and June 30, 1998 are attached.
Pitney Bowes Inc.
Consolidated Balance Sheets
---------------------------
(Dollars in thousands, except per share data)
(a)
(Unaudited) (Unaudited)
Assets 6/30/99 12/31/98 6/30/98
------ --------- --------- ---------
Current assets:
Cash and cash equivalents $ 132,693 $ 125,684 $ 115,322
Short-term investments, at cost which
approximates market 949 3,302 1,943
Accounts receivable, less allowances:
6/99 $24,983
12/98 $24,665 6/98 $21,883 416,302 382,406 367,409
Finance receivables, less allowances:
6/99 $48,642 12/98 $51,232
6/98 $61,867 1,498,531 1,400,786 1,646,627
Inventories 259,858 266,734 240,045
Other current assets and prepayments 83,173 330,051 282,931
Net assets of discontinued operations 156,507 - -
-------- ------- -------
Total current assets 2,548,013 2,508,963 2,654,277
---------- ---------- ---------
Property, plant and equipment, net 467,013 477,476 491,552
Rental equipment and related
inventories, net 842,176 806,585 823,530
Property leased under
capital leases, net 3,269 3,743 4,080
Long-term finance receivables,
less allowances:
6/99 $76,291 12/98 $79,543
6/98 $77,755 1,954,990 1,999,339 2,327,915
Investment in leveraged leases 962,531 827,579 776,930
Goodwill, net of amortization:
6/99 $51,425 12/98 $47,514
6/98 $44,208 227,874 222,980 208,946
Other assets 454,198 814,374 785,738
Net assets of discontinued operations 313,063 - -
-------- ------- -------
Total assets $7,773,127 $7,661,039 $8,072,968
=========== ========== ==========
Liabilities and stockholders' equity
------------------------------------
Current liabilities:
Accounts payable and
accrued liabilities $ 776,665 $ 898,548 $ 845,562
Income taxes payable 186,279 194,443 139,867
Notes payable and current portion of
long-term obligations 1,273,197 1,259,193 1,761,162
Advance billings 391,103 369,628 376,871
-------- -------- -------
Total current liabilities 2,627,244 2,721,812 3,123,462
---------- ---------- ---------
Deferred taxes on income 1,029,923 920,521 925,837
Long-term debt 1,898,942 1,712,937 1,627,127
Other noncurrent liabilities 352,911 347,670 368,039
-------- -------- -------
Total liabilities 5,909,020 5,702,940 6,044,465
---------- ---------- ---------
Preferred stockholders' equity in a
subsidiary company 310,000 310,097 300,000
Stockholders' equity:
Cumulative preferred stock, $50 par value,
4% convertible 29 34 34
Cumulative preference stock, no par value,
$2.12 convertible 1,945 2,031 2,112
Common stock, $1 par value 323,338 323,338 323,338
Capital in excess of par value 11,927 16,173 21,864
Retained earnings 3,208,052 3,073,839 2,892,080
Accumulated other
comprehensive income (85,851) (88,217) (74,630)
Treasury stock, at cost (1,905,333)(1,679,196)(1,436,295)
----------- ----------- ---------
Total stockholders' equity 1,554,107 1,648,002 1,728,503
---------- ---------- ---------
Total liabilities and
stockholders' equity $7,773,127 $7,661,039 $8,072,968
========= ========= =========
(a) Certain prior year amounts have been reclassified to conform
with the current year presentation.
Pitney Bowes Inc.
Consolidated Statements of Income
(Unaudited)
(Dollars in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- ------------------
-------------------- ------------------
1999 1998 1999 1998
---- ---- ---- ----
Revenue from:
Sales $ 546,370 $ 492,310 $ 1,056,752 $ 942,735
Rentals and financing 418,773 393,825 824,498 774,196
Support services 140,289 128,455 273,506 251,444
--------- --------- ----------- ---------
Total revenue 1,105,432 1,014,590 2,154,756 1,968,375
--------- --------- ----------- ---------
Costs and expenses:
Cost of sales 306,351 289,983 603,070 564,983
Cost of rentals and
financing 117,443 104,355 228,376 206,976
Selling, service and
administrative 373,132 352,916 734,160 683,898
Research and development 27,698 25,065 53,602 48,696
Interest, net 46,938 40,451 92,438 75,948
--------- --------- ----------- ---------
Total costs and
expenses 871,562 812,770 1,711,646 1,580,501
--------- --------- ----------- ---------
Income from continuing
operations before income
taxes 233,870 201,820 443,110 387,874
Provision for income taxes 76,462 69,051 147,131 132,770
--------- --------- ----------- ---------
Income from continuing
operations 157,408 132,769 295,979 255,104
Discontinued operations (27,667) 9,248 (23,967) 16,600
--------- --------- ----------- ---------
Net income $ 129,741 $ 142,017 $ 272,012 $ 271,704
========= ========= =========== =========
Basic earnings per share
Continuing
operations $ 0.58 $ 0.49 $ 1.10 $ 0.92
Discontinued
operations (0.10) 0.03 (0.09) 0.06
--------- --------- ----------- ---------
$ 0.48 $ 0.52 $ 1.01 $ 0.98
========= ========= =========== =========
Diluted earnings per
share
Continuing operations $ 0.58 $ 0.48 $ 1.08 $ 0.91
Discontinued
operations (0.10) 0.03 (0.09) 0.06
--------- --------- ----------- ---------
$ 0.48 $ 0.51 $ 0.99 $ 0.97
========= ========= =========== =========
Average common and
potential common
shares outstanding 273,016,885 279,494,653 274,073,691 281,413,128
=========== =========== =========== ===========
Pitney Bowes Inc.
Revenue and Operating Profit
By Business Segment
June 30, 1999
(Unaudited)
(Dollars in thousands)
%
1999 1998 Change
------ ------ --------
Second Quarter
--------------
Revenue
-------
Mailing and Integrated
Logistics $ 746,952 $ 668,281 12%
Office Solutions 316,753 303,682 4%
Capital Services 41,727 42,627 (2%)
---------- ---------- ------
Total Revenue $1,105,432 $1,014,590 9%
========== ========== ======
Operating Profit (1)
----------------
Mailing and Integrated
Logistics $ 200,654 $ 164,223 22%
Office Solutions 60,656 57,610 5%
Capital Services 12,784 12,202 5%
---------- ---------- ------
Total Operating Profit $ 274,094 $ 234,035 17%
========== ========== ======
(1) Operating profit excludes general corporate expenses, income
taxes and net interest other than that related to finance
operations.
Pitney Bowes Inc.
Revenue and Operating Profit
By Business Segment
June 30, 1999
(Unaudited)
(Dollars in thousands)
%
1999 1998 Change
------- -------- --------
Year to Date
------------
Revenue
-------
Mailing and Integrated Logistics $1,445,581 $1,294,521 12%
Office Solutions 631,333 594,864 6%
Capital Services 77,842 78,990 (1%)
---------- ---------- ------
Total Revenue $2,154,756 $1,968,375 9%
========== ========== ======
Operating Profit (1)
----------------
Mailing and Integrated Logistics $ 375,039 $ 308,630 22%
Office Solutions 119,201 110,069 8%
Capital Services 20,966 20,547 2%
---------- ---------- ------
Total Operating Profit $ 515,206 $ 439,246 17%
========== ========== ======
(1) Operating profit excludes general corporate expenses, income
taxes and net interest other than that related to finance
operations.
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