Pitney Bowes Announces Second Quarter 2016 Financial Results
Pitney Bowes Inc. (NYSE:PBI), a global technology company that provides products and solutions that power commerce, today
reported financial results for the second quarter 2016.
Quarterly Financial Results:
- Revenue of $836 million, a decline of 5 percent; a decline of 4 percent when adjusted for both the
impact of currency and market exits.
- Revenue comparison to prior year unfavorably impacted by an estimated 2 percentage points as a result
of the cutover period for the new enterprise business platform.
- GAAP EPS of $0.28; Adjusted EPS of $0.39
- GAAP cash from operations of $95 million; free cash flow of $86 million
- Repurchased 3.5 million shares of common stock.
- Updating annual revenue, adjusted EPS and free cash flow guidance.
"The second quarter was a critical period for Pitney Bowes, the progress of our strategic initiatives, and the long-term success
of our Company," said Marc B. Lautenbach, President and CEO, Pitney Bowes. "During the quarter, we deployed our new enterprise
business platform in the U.S., which is already delivering operational benefits across the Company; launched our Commerce Cloud,
which unlocks new value for the small and medium business market and our clients; and signed agreements with several systems
integrators to sell our software solutions and other products. Going forward, we remain optimistic about our ability to deliver
sustained value for our shareholders, clients and employees in the second half and beyond.”
Second Quarter 2016 Results
Revenue totaled $836 million for the quarter, which was a decline of 5 percent. Revenue declined 4 percent versus the prior year
when adjusted for both the impact of currency and the impact from the previously exited direct operations (market exits) in Mexico,
South Africa and five markets in Asia. The revenue comparison to prior year was unfavorably impacted by an estimated $15 million to
$20 million, or 2 percentage points, due to the temporary business impacts of the cutover to the new enterprise business platform
in the U.S.
Digital Commerce Solutions revenue grew 11 percent on a reported basis and 12 percent on a constant currency basis. Revenue
benefited from growth in Global Ecommerce, while revenue declined in Software Solutions.
Enterprise Business Solutions revenue was flat. Revenue grew 1 percent compared to the prior year when adjusted for the impacts
of currency and market exits. Revenue benefited from continued growth in Presort Services.
Small and Medium Business (SMB) Solutions revenue declined 8 percent. Revenue declined 7 percent when adjusted for the impacts
of currency and market exits. Within SMB, North America Mailing’s revenue comparison to prior year was unfavorably impacted by an
estimated $15 million to $20 million, or 5 percentage points, due to the temporary business impacts of the cutover to the new
enterprise business platform in the U.S. This impact resulted principally from lost daily sales activity and productivity during
the cutover period.
Generally Accepted Accounting Principles earnings per diluted share (GAAP EPS) were $0.28, which included $0.09 per share for
restructuring and asset impairment charges and $0.01 loss for discontinued operations.
Adjusted earnings per diluted share from continuing operations (Adjusted EPS) were $0.39. The Company uses Adjusted EPS
to measure profitability and performance.
Earnings per share comparisons to prior year were unfavorably impacted by $0.02 per share for higher ERP related expenses; $0.02
per share for the absence of Imagitas earnings and an estimated $0.03 related to the new enterprise business platform cutover.
The Company’s earnings per share results for the quarter are summarized in the table below:
|
|
Second Quarter* |
|
|
2016
|
|
2015
|
| Adjusted EPS |
|
$ |
0.39 |
|
|
$ |
0.45 |
|
| Other income – gain on sale of Imagitas |
|
|
- |
|
|
|
0.44 |
|
| Other expense |
|
|
- |
|
|
|
(0.05
|
) |
| SG&A – compensation expense |
|
|
- |
|
|
|
(0.04
|
) |
| Restructuring and asset impairments |
|
|
(0.09
|
) |
|
|
(0.04
|
) |
| Discontinued operations – (loss) |
|
|
(0.01
|
) |
|
|
- |
|
| GAAP EPS |
|
$ |
0.28 |
|
|
$ |
0.75 |
|
| * The sum of the earnings per share may not equal the totals above due to
rounding. |
| |
GAAP Cash from Operations and Free Cash Flow Results
GAAP cash from operations during the quarter was $95 million while free cash flow was $86 million. Free cash flow was slightly
favorable to prior year as favorable working capital and lower capital expenditures were partly offset by lower net income.
During the quarter, the Company used cash for: $35 million in dividends to its common shareholders; $66 million for share
repurchases and $12 million for restructuring payments. The Company also received $18 million of cash from investing activities
related to the sale of a building in Troy, New York.
Business Segment Reporting
The Company’s business segment reporting reflects the clients served in each market and the way it manages these segments for
growth and profitability. The primary reporting segment groups are the SMB Solutions group; the Enterprise Business Solutions
group; and the Digital Commerce Solutions group.
The SMB Solutions group offers mailing equipment, financing, services and supplies for small and medium businesses to
efficiently create mail and evidence postage. This group includes the North America Mailing and International Mailing segments.
North America Mailing includes the operations of U.S. and Canada Mailing. International Mailing includes all other SMB
operations around the world.
The Enterprise Business Solutions group includes the global Production Mail and Presort Services segments. Production Mail
provides mailing and printing equipment and services for large enterprise clients to process mail. Presort Services provides
sortation services to qualify large mail volumes for postal worksharing discounts.
The Digital Commerce Solutions group includes the Software Solutions and Global Ecommerce segments. Software Solutions
provide customer engagement, customer information and location intelligence software. Global Ecommerce facilitates global
cross-border ecommerce transactions and shipping solutions for businesses of all sizes.
The Other segment is comprised of the Imagitas marketing services business, which was sold on May 29, 2015.
|
SMB Solutions Group
|
| ($ millions) |
|
|
Second Quarter |
|
|
|
|
|
|
|
Y/Y
|
|
Y/Y
|
|
Y/Y Ex Currency
|
| Revenue |
|
|
2016
|
|
2015
|
|
Reported
|
|
Ex Currency
|
|
& Market Exits*
|
| North America Mailing |
|
|
$ |
322 |
|
|
$ |
357 |
|
|
(10 |
%) |
|
(9 |
%) |
|
(9 |
%) |
| International Mailing |
|
|
|
106 |
|
|
|
111 |
|
|
(4 |
%) |
|
(3 |
%) |
|
0 |
% |
| SMB Solutions Total |
|
|
$ |
428 |
|
|
$ |
467 |
|
|
(8 |
%) |
|
(8 |
%) |
|
(7 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
| EBIT |
|
|
|
|
|
|
|
|
|
|
|
| North America Mailing |
|
|
$ |
142 |
|
|
$ |
159 |
|
|
(11 |
%) |
|
|
|
|
| International Mailing |
|
|
|
13 |
|
|
|
14 |
|
|
(10 |
%) |
|
|
|
|
| SMB Solutions Total |
|
|
$ |
155 |
|
|
$ |
174 |
|
|
(11 |
%) |
|
|
|
|
| * Excluding $2.2 million related to the impacts of currency and adjusting prior year
for $2.8 million related to the divested revenues resulting from the exit of direct operations in Mexico, South Africa and five
markets in Asia. |
| |
North America Mailing
The business experienced temporary impacts from the enterprise business platform cutover in the U.S., and, as a result, the
revenue rate of decline was greater than prior quarters. Equipment sales declined double digits and recurring revenue streams
declined at a high single-digit rate. The equipment sales impact resulted principally from lost daily sales activity and
productivity during the cutover period. The recurring revenue streams were impacted in part by financing fee waivers and lower
supply purchases during this transition. The Company estimates that the North America Mailing segment revenue was unfavorably
impacted by an estimated $15 million to $20 million, or 5 percentage points of growth, in the quarter due to this transition. Of
this estimated amount, approximately two-thirds was attributed to equipment sales and one-third was attributed to the recurring
revenue streams. EBIT margin was slightly lower than prior year due to the overall lower revenue.
International Mailing
Revenue trends compared to prior year continued to improve. Although reported revenue declined, when adjusted for both the
impact of currency and market exits, revenue would have been flat to prior year. Equipment sales increased versus prior year most
notably in France, Italy and Japan, in part due to improved sales productivity as disruption from go-to-market changes, especially
in France, have subsided. The decline in recurring revenue streams was the lowest in seven quarters. EBIT margin declined versus
the prior year primarily as a result of the mix of equipment sales.
|
Enterprise Business Solutions Group
|
| ($ millions) |
|
|
Second Quarter |
|
|
|
|
|
|
|
Y/Y
|
|
Y/Y
|
|
Y/Y Ex Currency
|
| Revenue |
|
|
2016
|
|
2015
|
|
Reported
|
|
Ex Currency
|
|
& Market Exits*
|
| Production Mail |
|
|
$ |
96 |
|
|
$ |
98 |
|
|
(2 |
%) |
|
(2 |
%) |
|
1 |
% |
| Presort Services |
|
|
|
116 |
|
|
|
114 |
|
|
2 |
% |
|
2 |
% |
|
2 |
% |
| Enterprise Business Total |
|
|
$ |
212 |
|
|
$ |
212 |
|
|
0 |
% |
|
0 |
% |
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| EBIT |
|
|
|
|
|
|
|
|
|
|
|
| Production Mail |
|
|
$ |
13 |
|
|
$ |
10 |
|
|
29 |
% |
|
|
|
|
| Presort Services |
|
|
|
21 |
|
|
|
24 |
|
|
(10 |
%) |
|
|
|
|
| Enterprise Business Total |
|
|
$ |
34 |
|
|
$ |
34 |
|
|
2 |
% |
|
|
|
|
| * Excluding $0.2 million related to the impacts of currency and adjusting prior year
for $2.9 million related to the divested revenues resulting from the exit of direct operations in Mexico, South Africa and five
markets in Asia |
| |
Production Mail
Equipment sales grew due to higher sorter equipment installations during the quarter. Support services and supplies revenue
declined, in part, as a result of some in-house mailers shifting their mail processing to third party outsourcers and the recent
market exits. EBIT margin improved from prior year driven by service delivery cost management initiatives.
Presort Services
Revenue benefited from the higher volume of First Class mail processed as well as expansion into new markets. This was partially
offset by a decline in Standard mail volumes processed. EBIT margin declined versus the prior year primarily due to the USPS rate
change and increased mail processing costs related to higher labor costs.
|
Digital Commerce Solutions Group
|
|
|
|
| ($ millions) |
|
|
Second Quarter |
|
|
|
|
|
|
|
Y/Y
|
|
Y/Y
|
|
Revenue
|
|
|
2016
|
|
2015
|
|
Reported
|
|
Ex Currency
|
| Software Solutions |
|
|
$ |
90 |
|
|
$ |
99 |
|
|
(9 |
%) |
|
(7 |
%) |
| Global Ecommerce |
|
|
|
105 |
|
|
|
78 |
|
|
35 |
% |
|
36 |
% |
| Digital Commerce Total |
|
|
$ |
196 |
|
|
$ |
177 |
|
|
11 |
% |
|
12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
|
|
|
|
|
|
|
|
|
|
| Software Solutions |
|
|
$ |
10 |
|
|
$ |
16 |
|
|
(37 |
%)
|
|
|
|
| Global Ecommerce |
|
|
|
4 |
|
|
|
3 |
|
|
20 |
%
|
|
|
|
| Digital Commerce Total |
|
|
$ |
14 |
|
|
$ |
19 |
|
|
(28 |
%)
|
|
|
|
|
|
|
|
Software Solutions
Revenue declined due to lower licensing and data-related revenue versus the prior year. The Company has signed agreements with 2
global and 9 regional systems integrators as part of the continued focus on expanding the indirect channel. The Company continues
to focus on improving sales efficiency to grow the pipeline of deals. EBIT margin declined as a result of the lower licensing
revenue, which has a high margin.
Global Ecommerce
Results included a full quarter of Borderfree revenue as compared to one month in the prior year. Revenue benefited from strong
growth in the UK marketplace and the launch of new retail storefronts. Outbound U.S. marketplace package shipments grew in the
quarter despite the stronger U.S. dollar versus prior year.
When adding pre-acquisition Borderfree revenue back to the prior year, for comparative purposes, organic growth in the
Cross-Border Ecommerce business grew 11 percent in the quarter, which is an improvement from the first quarter performance.
EBIT margin declined slightly versus the prior year due to the amortization of acquisition-related intangible costs and
investments for growth. The Company remains on-track to achieve its cross border synergy run-rate objective by the end of the year.
In addition, the higher-margin domestic shipping business was temporarily impacted by the new enterprise business platform cutover
in the U.S.
|
Other
|
| ($ millions) |
|
Second Quarter |
|
|
|
|
|
|
Y/Y
|
|
Y/Y
|
|
|
2016
|
|
2015
|
|
Reported
|
|
Ex Currency
|
| Revenue |
|
$ |
0 |
|
|
$ |
25 |
|
|
NM |
|
NM |
| EBIT |
|
$ |
0 |
|
|
$ |
6 |
|
|
NM |
|
|
| |
The Other segment is comprised of the Imagitas marketing services business, which was sold in May 2015.
2016 Guidance
This guidance discusses future results, which are inherently subject to unforeseen risks and developments. As such,
discussions about the business outlook should be read in the context of an uncertain future, as well as the risk factors identified
in the safe harbor language at the end of this release and as more fully outlined in the Company's 2015 Form 10-K Annual Report and
other reports filed with the Securities and Exchange Commission.
This guidance excludes any unusual items that may occur or additional portfolio or restructuring actions, not specifically
identified, as the Company implements plans to further streamline its operations and reduce costs. Revenue guidance is provided on
a constant currency basis because the Company cannot reasonably predict the impact future changes in currency exchange rates will
have on revenue. Additionally, the Company cannot provide GAAP EPS and GAAP cash from operations guidance due to the uncertainty of
future potential restructurings, goodwill and asset write-downs, unusual tax settlements or payments and contributions to its
pension funds, acquisitions, divestitures and other potential adjustments, which could (individually or in the aggregate) have a
material impact on the Company’s performance. The Company’s guidance is based on an assumption that the global economy and foreign
exchange markets in 2016 will not change significantly.
The Company expects improving trends in the business in the second half of the year as a result of actions taken to achieve its
long term strategic initiatives. Based on year-to-date results, particularly in Software, along with the second quarter temporary
impact in North America Mailing as a result of the new enterprise business platform cutover, the Company is adjusting its annual
guidance.
The Company now expects, for the full year 2016:
- Revenue, on a constant currency basis, to be in the range of a 1 percent decline to 3 percent decline
when compared to 2015.
- Adjusted EPS to be in the range of $1.75 to $1.82, excluding the year-to-date EPS charge of $0.13
related to restructuring, asset impairments, dispositions expense and discontinued operations.
- Free cash flow to be in the range of $400 million to $450 million.
- Annual tax rate in the range of 33 percent to 35 percent.
Therefore, for the second half of 2016 the Company expects:
- Revenue, on a constant currency basis, to be in the range of 2 percent growth to 2 percent decline
when compared to 2015.
- Adjusted EPS to be in the range of $1.03 to $1.10.
- Free cash flow to be in the range of $254 million to $304 million.
To achieve improvement in the second half of the year as compared to the first half, the Company expects:
- The North America Mailing business to return to a more normalized level as the Company continues to
make progress post the new enterprise business platform cutover.
- Enterprise Solutions Group to perform similar to the first half.
- Within Digital Commerce Solutions, Software license revenue growth is expected to improve as a result
of the progress the Company is making in channel efficiency and channel partner engagement. Global Ecommerce, post the
anniversary of the Borderfree acquisition, is expected to grow revenue double-digits in the second half, subject to no material
changes in key currency valuations or any new material impacts from the Brexit decision or Canada Post labor negotiations. This
will be driven by continued transaction volume growth, as well as the acquisition of new and expansion of existing retail
clients.
- Adjusted EPS and free cash flow will benefit from the expected revenue improvements, reduced
marketing and ERP expense from first half levels.
- Adjusted EPS will also benefit from the early benefits from the new enterprise business platform cost
savings, particularly in the fourth quarter.
- Free cash flow will also benefit from the recovery of delayed billing and collections activity
related to the enterprise business system cutover.
Conference Call and Webcast
Management of Pitney Bowes will discuss the Company’s results in a broadcast over the Internet today at 8:00 a.m. ET.
Instructions for listening to the earnings results via the Web are available on the Investor Relations page of the Company’s web
site at www.pb.com.
About Pitney Bowes
Pitney Bowes (NYSE:PBI), is a global technology company powering billions of transactions – physical and digital – in the
connected and borderless world of commerce. Clients around the world, including 90 percent of the Fortune 500, rely on products,
solutions and services from Pitney Bowes in the areas of customer information management, location intelligence, customer
engagement, shipping, mailing, and global ecommerce. And with the innovative Pitney Bowes Commerce Cloud, clients can access the
broad range of Pitney Bowes solutions, analytics, and APIs to drive commerce. For additional information visit Pitney Bowes, the
Craftsmen of Commerce, at www.pitneybowes.com.
The Company's financial results are reported in accordance with generally accepted accounting principles (GAAP).
The Company reports measures such as adjusted earnings before interest and taxes (EBIT) and Adjusted EPS and adjusted income
from continuing operations to exclude the impact of special items like restructuring charges, tax adjustments, goodwill and asset
write-downs, and costs related to recent dispositions and market exits. While these are actual Company expenses, they can
mask underlying trends associated with its business. Such items are often inconsistent in amount and frequency and as such,
the adjustments allow an investor greater insight into the current underlying operating trends of the business.
In addition, revenue growth is presented on a constant currency basis to exclude the impact of changes in foreign currency
exchange rates since the prior period under comparison. Constant currency measures are intended to help investors better
understand the underlying operational performance of the business excluding the impacts of shifts in currency exchange rates over
the period. Constant currency is calculated by converting our current quarter reported results using the prior year’s
exchange rate for the comparable quarter. In addition, this quarter the Company reported the comparison of “revenue
excluding the impact of currency and market exits” to prior year, which excludes the impact of changes in foreign currency exchange
rates since the prior period and also excludes the revenues associated with the recent market exits in several smaller markets.
This comparison allows an investor insight into the underlying revenue performance of the business and true operational
performance from a comparable basis to prior period. A reconciliation of reported revenue to constant currency revenue, as
well as reported revenue to “revenue excluding the impact of currency and market exits” can be found in the Company’s attached
financial schedules.
The Company reports free cash flow in order to provide investors insight into the amount of cash that management could have
available for other discretionary uses. Free cash flow adjusts GAAP cash from operations for capital expenditures,
restructuring payments, unusual tax settlements, contributions to the Company’s pension fund and cash used for other special
items. A reconciliation of GAAP cash from operations to free cash flow can be found in the Company’s attached financial
schedules.
In addition, Management uses segment EBIT to measure profitability and performance at the segment level. Segment EBIT
is determined by deducting from revenue the related costs and expenses attributable to the segment. Segment EBIT excludes
interest, taxes, general corporate expenses not allocated to a particular business segment, restructuring charges and goodwill and
asset impairments, which are recognized on a consolidated basis. A reconciliation of Segment EBIT to the Company’s total Net
Income can be found in the Company’s attached financial schedules.
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 the Company’s expected or potential future business and financial
performance. 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; the ability to protect the Company’s information technology systems against service
interruptions, misappropriation of data, or breaches of security resulting from cyber-attacks or other events; management of
outsourcing arrangements; the implementation of a new enterprise business platform; changes in business portfolio; the success of
our investment in rebranding the Company; the risk of losing some of the Company’s larger clients in the Global Ecommerce segment;
integrating newly acquired businesses, including operations and product and service offerings; foreign currency exchange rates;
changes in our credit ratings; management of credit risk; changes in interest rates; the financial health of national posts;
increased customs and regulatory risks associated with cross-border transactions; and other factors beyond its control as more
fully outlined in the Company's 2015 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, 2016 and 2015, and consolidated balance sheets at June 30, 2016 and December
31, 2015 are attached.
| Pitney Bowes Inc. |
| Consolidated Statements of Income |
| (Unaudited; in thousands, except share and per share amounts) |
| |
|
|
Three months ended June 30, |
|
|
Six months ended June 30, |
|
|
2016 |
|
2015 |
|
|
2016 |
|
2015 |
| Revenue: |
|
|
|
|
|
|
|
|
|
| Equipment sales |
|
$ |
152,641 |
|
|
$ |
165,507 |
|
|
|
$ |
312,002 |
|
|
$ |
331,471 |
|
| Supplies |
|
|
65,274 |
|
|
|
70,636 |
|
|
|
|
137,325 |
|
|
|
144,004 |
|
| Software |
|
|
90,615 |
|
|
|
99,184 |
|
|
|
|
168,673 |
|
|
|
185,541 |
|
| Rentals |
|
|
102,869 |
|
|
|
111,312 |
|
|
|
|
206,959 |
|
|
|
225,309 |
|
| Financing |
|
|
91,609 |
|
|
|
101,437 |
|
|
|
|
189,032 |
|
|
|
207,067 |
|
| Support services |
|
|
131,418 |
|
|
|
139,237 |
|
|
|
|
259,678 |
|
|
|
278,795 |
|
| Business services |
|
|
201,460 |
|
|
|
193,578 |
|
|
|
|
406,806 |
|
|
|
399,385 |
|
|
|
|
|
|
|
|
|
|
|
| Total revenue |
|
|
835,886 |
|
|
|
880,891 |
|
|
|
|
1,680,475 |
|
|
|
1,771,572 |
|
|
|
|
|
|
|
|
|
|
|
| Costs and expenses: |
|
|
|
|
|
|
|
|
|
| Cost of equipment sales |
|
|
78,055 |
|
|
|
79,043 |
|
|
|
|
149,594 |
|
|
|
154,056 |
|
| Cost of supplies |
|
|
19,624 |
|
|
|
21,624 |
|
|
|
|
40,314 |
|
|
|
44,283 |
|
| Cost of software |
|
|
26,983 |
|
|
|
28,501 |
|
|
|
|
53,798 |
|
|
|
58,365 |
|
| Cost of rentals |
|
|
18,415 |
|
|
|
21,003 |
|
|
|
|
38,910 |
|
|
|
41,704 |
|
| Financing interest expense |
|
|
13,495 |
|
|
|
17,868 |
|
|
|
|
28,410 |
|
|
|
36,638 |
|
| Cost of support services |
|
|
74,742 |
|
|
|
81,507 |
|
|
|
|
149,991 |
|
|
|
165,106 |
|
| Cost of business services |
|
|
140,830 |
|
|
|
135,636 |
|
|
|
|
276,368 |
|
|
|
275,555 |
|
| Selling, general and administrative |
|
|
288,580 |
|
|
|
315,578 |
|
|
|
|
615,462 |
|
|
|
630,107 |
|
| Research and development |
|
|
34,513 |
|
|
|
28,492 |
|
|
|
|
61,081 |
|
|
|
54,540 |
|
| Restructuring charges and asset impairments, net |
|
|
26,076 |
|
|
|
14,350 |
|
|
|
|
33,009 |
|
|
|
14,269 |
|
| Interest expense, net |
|
|
20,799 |
|
|
|
20,971 |
|
|
|
|
40,100 |
|
|
|
45,035 |
|
| Other expense (income), net |
|
|
536 |
|
|
|
(93,135 |
) |
|
|
|
536 |
|
|
|
(93,135 |
) |
|
|
|
|
|
|
|
|
|
|
| Total costs and expenses |
|
|
742,648 |
|
|
|
671,438 |
|
|
|
|
1,487,573 |
|
|
|
1,426,523 |
|
|
|
|
|
|
|
|
|
|
|
| Income from continuing operations before income taxes |
|
|
93,238 |
|
|
|
209,453 |
|
|
|
|
192,902 |
|
|
|
345,049 |
|
| Provision for income taxes |
|
|
33,394 |
|
|
|
52,351 |
|
|
|
|
70,418 |
|
|
|
102,898 |
|
|
|
|
|
|
|
|
|
|
|
| Income from continuing operations |
|
|
59,844 |
|
|
|
157,102 |
|
|
|
|
122,484 |
|
|
|
242,151 |
|
| Loss from discontinued operations, net of tax |
|
|
(1,660 |
) |
|
|
(739 |
) |
|
|
|
(1,660 |
) |
|
|
(582 |
) |
|
|
|
|
|
|
|
|
|
|
| Net income |
|
|
58,184 |
|
|
|
156,363 |
|
|
|
|
120,824 |
|
|
|
241,569 |
|
| Less: Preferred stock dividends attributable to noncontrolling interests |
|
|
4,594 |
|
|
|
4,593 |
|
|
|
|
9,188 |
|
|
|
9,187 |
|
|
|
|
|
|
|
|
|
|
|
| Net income - Pitney Bowes Inc. |
|
$ |
53,590 |
|
|
$ |
151,770 |
|
|
|
$ |
111,636 |
|
|
$ |
232,382 |
|
|
|
|
|
|
|
|
|
|
|
| Amounts attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
| Net income from continuing operations |
|
$ |
55,250 |
|
|
$ |
152,509 |
|
|
|
$ |
113,296 |
|
|
$ |
232,964 |
|
| Loss from discontinued operations, net of tax |
|
|
(1,660 |
) |
|
|
(739 |
) |
|
|
|
(1,660 |
) |
|
|
(582 |
) |
|
|
|
|
|
|
|
|
|
|
| Net income - Pitney Bowes Inc. |
|
$ |
53,590 |
|
|
$ |
151,770 |
|
|
|
$ |
111,636 |
|
|
$ |
232,382 |
|
|
|
|
|
|
|
|
|
|
|
| Basic earnings per share attributable to common stockholders (1): |
|
|
|
|
|
|
|
|
|
| Continuing operations |
|
$ |
0.29 |
|
|
$ |
0.76 |
|
|
|
$ |
0.60 |
|
|
$ |
1.16 |
|
| Discontinued operations |
|
|
(0.01 |
) |
|
|
- |
|
|
|
|
(0.01 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
| Net income - Pitney Bowes Inc. |
|
$ |
0.29 |
|
|
$ |
0.75 |
|
|
|
$ |
0.59 |
|
|
$ |
1.15 |
|
|
|
|
|
|
|
|
|
|
|
| Diluted earnings per share attributable to common stockholders (1): |
|
|
|
|
|
|
|
|
|
| Continuing operations |
|
$ |
0.29 |
|
|
$ |
0.75 |
|
|
|
$ |
0.59 |
|
|
$ |
1.15 |
|
| Discontinued operations |
|
|
(0.01 |
) |
|
|
- |
|
|
|
|
(0.01 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
| Net income - Pitney Bowes Inc. |
|
$ |
0.28 |
|
|
$ |
0.75 |
|
|
|
$ |
0.59 |
|
|
$ |
1.15 |
|
|
|
|
|
|
|
|
|
|
|
| Weighted-average shares used in diluted earnings per share |
|
|
188,362,278 |
|
|
|
202,839,944 |
|
|
|
|
190,806,261 |
|
|
|
202,634,107 |
|
| (1) |
|
The sum of the earnings per share amounts may not equal the totals due to
rounding. |
| |
| Pitney Bowes Inc. |
| Consolidated Balance Sheets |
| (Unaudited; in thousands, except share amounts) |
| |
|
|
June 30,
|
|
|
December 31,
|
|
Assets
|
|
2016
|
|
|
2015 (1)
|
| Current assets: |
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
675,972 |
|
|
|
$ |
650,557 |
|
| Short-term investments |
|
|
74,809 |
|
|
|
|
117,021 |
|
| Accounts receivable, net |
|
|
431,580 |
|
|
|
|
476,583 |
|
| Short-term finance receivables, net |
|
|
918,974 |
|
|
|
|
918,383 |
|
| Inventories |
|
|
110,960 |
|
|
|
|
88,824 |
|
| Current income taxes |
|
|
12,186 |
|
|
|
|
6,584 |
|
| Other current assets and prepayments |
|
|
61,039 |
|
|
|
|
67,400 |
|
|
|
|
|
|
|
| Total current assets |
|
|
2,285,520 |
|
|
|
|
2,325,352 |
|
|
|
|
|
|
|
| Property, plant and equipment, net |
|
|
309,491 |
|
|
|
|
330,088 |
|
| Rental property and equipment, net |
|
|
172,269 |
|
|
|
|
177,515 |
|
| Long-term finance receivables, net |
|
|
693,589 |
|
|
|
|
760,657 |
|
| Goodwill |
|
|
1,752,714 |
|
|
|
|
1,745,957 |
|
| Intangible assets, net |
|
|
172,785 |
|
|
|
|
187,378 |
|
| Noncurrent income taxes |
|
|
66,942 |
|
|
|
|
70,294 |
|
| Other assets |
|
|
510,267 |
|
|
|
|
525,891 |
|
|
|
|
|
|
|
| Total assets |
|
$ |
5,963,577 |
|
|
|
$ |
6,123,132 |
|
|
|
|
|
|
|
|
Liabilities, noncontrolling interests and stockholders' equity
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
| Accounts payable and accrued liabilities |
|
$ |
1,345,653 |
|
|
|
$ |
1,448,321 |
|
| Current income taxes |
|
|
7,235 |
|
|
|
|
16,620 |
|
| Current portion of long-term debt and notes payable |
|
|
470,058 |
|
|
|
|
461,085 |
|
| Advance billings |
|
|
308,728 |
|
|
|
|
353,025 |
|
|
|
|
|
|
|
| Total current liabilities |
|
|
2,131,674 |
|
|
|
|
2,279,051 |
|
|
|
|
|
|
|
| Deferred taxes on income |
|
|
212,607 |
|
|
|
|
205,668 |
|
| Tax uncertainties and other income tax liabilities |
|
|
69,803 |
|
|
|
|
68,429 |
|
| Long-term debt |
|
|
2,623,764 |
|
|
|
|
2,489,583 |
|
| Other noncurrent liabilities |
|
|
550,546 |
|
|
|
|
605,310 |
|
|
|
|
|
|
|
| Total liabilities |
|
|
5,588,394 |
|
|
|
|
5,648,041 |
|
|
|
|
|
|
|
| Noncontrolling interests (Preferred stockholders' equity in subsidiaries) |
|
|
296,370 |
|
|
|
|
296,370 |
|
|
|
|
|
|
|
| Stockholders' equity: |
|
|
|
|
|
| Cumulative preferred stock, $50 par value, 4% convertible |
|
|
1 |
|
|
|
|
1 |
|
| Cumulative preference stock, no par value, $2.12 convertible |
|
|
489 |
|
|
|
|
505 |
|
| Common stock, $1 par value |
|
|
323,338 |
|
|
|
|
323,338 |
|
| Additional paid-in-capital |
|
|
148,154 |
|
|
|
|
161,280 |
|
| Retained earnings |
|
|
5,196,194 |
|
|
|
|
5,155,537 |
|
| Accumulated other comprehensive loss |
|
|
(840,427 |
) |
|
|
|
(888,635 |
) |
| Treasury stock, at cost |
|
|
(4,748,936 |
) |
|
|
|
(4,573,305 |
) |
|
|
|
|
|
|
| Total Pitney Bowes Inc. stockholders' equity |
|
|
78,813 |
|
|
|
|
178,721 |
|
|
|
|
|
|
|
| Total liabilities, noncontrolling interests and stockholders' equity |
|
$ |
5,963,577 |
|
|
|
$ |
6,123,132 |
|
| (1) |
|
Certain prior year amounts have been revised for accounting rules that became
effective January 1, 2016 and to conform to current year presentation. |
| |
| Pitney Bowes Inc. |
| Business Segments - Revenue and EBIT |
| (Unaudited; in thousands) |
| |
|
|
Three months ended June 30, |
|
|
Six months ended June 30, |
|
|
2016 |
|
2015 |
|
% Change |
|
|
2016 |
|
2015 |
|
% Change |
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| North America Mailing |
|
$ |
322,068 |
|
|
$ |
356,791 |
|
|
(10 |
%) |
|
|
$ |
671,794 |
|
|
$ |
718,665 |
|
|
(7 |
%) |
| International Mailing |
|
|
106,338 |
|
|
|
110,610 |
|
|
(4 |
%) |
|
|
|
210,097 |
|
|
|
226,783 |
|
|
(7 |
%) |
| Small & Medium Business Solutions |
|
|
428,406 |
|
|
|
467,401 |
|
|
(8 |
%) |
|
|
|
881,891 |
|
|
|
945,448 |
|
|
(7 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Production Mail |
|
|
95,874 |
|
|
|
97,731 |
|
|
(2 |
%) |
|
|
|
183,299 |
|
|
|
197,234 |
|
|
(7 |
%) |
| Presort Services |
|
|
115,765 |
|
|
|
113,922 |
|
|
2 |
% |
|
|
|
243,161 |
|
|
|
235,453 |
|
|
3 |
% |
| Enterprise Business Solutions |
|
|
211,639 |
|
|
|
211,653 |
|
|
0 |
% |
|
|
|
426,460 |
|
|
|
432,687 |
|
|
(1 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Software Solutions |
|
|
90,464 |
|
|
|
99,041 |
|
|
(9 |
%) |
|
|
|
168,386 |
|
|
|
185,278 |
|
|
(9 |
%) |
| Global Ecommerce |
|
|
105,377 |
|
|
|
77,966 |
|
|
35 |
% |
|
|
|
203,738 |
|
|
|
153,352 |
|
|
33 |
% |
| Digital Commerce Solutions |
|
|
195,841 |
|
|
|
177,007 |
|
|
11 |
% |
|
|
|
372,124 |
|
|
|
338,630 |
|
|
10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other |
|
|
- |
|
|
|
24,830 |
|
|
(100 |
%) |
|
|
|
- |
|
|
|
54,807 |
|
|
(100 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenue |
|
$ |
835,886 |
|
|
$ |
880,891 |
|
|
(5 |
%) |
|
|
$ |
1,680,475 |
|
|
$ |
1,771,572 |
|
|
(5 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| North America Mailing |
|
$ |
142,227 |
|
|
$ |
159,392 |
|
|
(11 |
%) |
|
|
$ |
298,142 |
|
|
$ |
323,057 |
|
|
(8 |
%) |
| International Mailing |
|
|
12,781 |
|
|
|
14,122 |
|
|
(9 |
%) |
|
|
|
24,632 |
|
|
|
25,846 |
|
|
(5 |
%) |
| Small & Medium Business Solutions |
|
|
155,008 |
|
|
|
173,514 |
|
|
(11 |
%) |
|
|
|
322,774 |
|
|
|
348,903 |
|
|
(7 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Production Mail |
|
|
12,914 |
|
|
|
10,028 |
|
|
29 |
% |
|
|
|
19,738 |
|
|
|
19,060 |
|
|
4 |
% |
| Presort Services |
|
|
21,214 |
|
|
|
23,544 |
|
|
(10 |
%) |
|
|
|
50,124 |
|
|
|
51,038 |
|
|
(2 |
%) |
| Enterprise Business Solutions |
|
|
34,128 |
|
|
|
33,572 |
|
|
2 |
% |
|
|
|
69,862 |
|
|
|
70,098 |
|
|
0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Software Solutions |
|
|
10,151 |
|
|
|
16,158 |
|
|
(37 |
%) |
|
|
|
7,579 |
|
|
|
20,291 |
|
|
(63 |
%) |
| Global Ecommerce |
|
|
3,674 |
|
|
|
3,056 |
|
|
20 |
% |
|
|
|
4,446 |
|
|
|
11,202 |
|
|
(60 |
%) |
| Digital Commerce Solutions |
|
|
13,825 |
|
|
|
19,214 |
|
|
(28 |
%) |
|
|
|
12,025 |
|
|
|
31,493 |
|
|
(62 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other |
|
|
- |
|
|
|
5,611 |
|
|
(100 |
%) |
|
|
|
- |
|
|
|
10,569 |
|
|
(100 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Segment EBIT |
|
$ |
202,961 |
|
|
$ |
231,911 |
|
|
(12 |
%) |
|
|
$ |
404,661 |
|
|
$ |
461,063 |
|
|
(12 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of segment EBIT to net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Segment EBIT |
|
$ |
202,961 |
|
|
$ |
231,911 |
|
|
|
|
|
$ |
404,661 |
|
|
$ |
461,063 |
|
|
|
| Corporate expenses |
|
|
(48,777 |
) |
|
|
(51,921 |
) |
|
|
|
|
|
(106,544 |
) |
|
|
(102,724 |
) |
|
|
| Adjusted EBIT |
|
|
154,184 |
|
|
|
179,990 |
|
|
|
|
|
|
298,117 |
|
|
|
358,339 |
|
|
|
| Interest, net (2) |
|
|
(34,294 |
) |
|
|
(38,839 |
) |
|
|
|
|
|
(68,510 |
) |
|
|
(81,673 |
) |
|
|
| Restructuring charges and asset impairments, net |
|
|
(26,076 |
) |
|
|
(14,350 |
) |
|
|
|
|
|
(33,009 |
) |
|
|
(14,269 |
) |
|
|
| Other (expense) income, net |
|
|
(536 |
) |
|
|
93,135 |
|
|
|
|
|
|
(536 |
) |
|
|
93,135 |
|
|
|
| Acquisition/disposition related expenses |
|
|
(40 |
) |
|
|
(10,483 |
) |
|
|
|
|
|
(3,160 |
) |
|
|
(10,483 |
) |
|
|
| Income from continuing operations before income taxes |
|
|
93,238 |
|
|
|
209,453 |
|
|
|
|
|
|
192,902 |
|
|
|
345,049 |
|
|
|
| Provision for income taxes |
|
|
(33,394 |
) |
|
|
(52,351 |
) |
|
|
|
|
|
(70,418 |
) |
|
|
(102,898 |
) |
|
|
| Income from continuing operations |
|
|
59,844 |
|
|
|
157,102 |
|
|
|
|
|
|
122,484 |
|
|
|
242,151 |
|
|
|
| Loss from discontinued operations, net of tax |
|
|
(1,660 |
) |
|
|
(739 |
) |
|
|
|
|
|
(1,660 |
) |
|
|
(582 |
) |
|
|
| Net income |
|
$ |
58,184 |
|
|
$ |
156,363 |
|
|
|
|
|
$ |
120,824 |
|
|
$ |
241,569 |
|
|
|
| (1) |
|
Segment EBIT excludes interest, taxes, general corporate expenses, restructuring
charges and other items, which are not allocated to a particular business segment. |
|
|
|
| (2) |
|
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 June 30, |
|
|
|
|
Six months ended June 30, |
|
|
|
|
2016 |
|
2015 |
|
Y/Y Chg. |
|
|
2016 |
|
2015 |
|
Y/Y Chg. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of reported revenue to revenue excluding currency
and Market Exits |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue, as reported |
|
$ |
835,886 |
|
|
$ |
880,891 |
|
|
(5 |
%) |
|
|
$ |
1,680,475 |
|
|
$ |
1,771,572 |
|
|
(5 |
%) |
| Unfavorable impact on revenue due to currency |
|
|
4,770 |
|
|
|
- |
|
|
NM |
|
|
|
|
14,721 |
|
|
|
- |
|
|
NM |
|
| Revenue, excluding currency |
|
|
840,656 |
|
|
|
880,891 |
|
|
(5 |
%) |
|
|
|
1,695,196 |
|
|
|
1,771,572 |
|
|
(4 |
%) |
| Less: Revenue from Market Exits |
|
|
- |
|
|
|
5,717 |
|
|
(100 |
%) |
|
|
|
480 |
|
|
|
11,541 |
|
|
(96 |
%) |
| Revenue, excluding currency and Market Exits |
|
$ |
840,656 |
|
|
$ |
875,174 |
|
|
(4 |
%) |
|
|
$ |
1,694,716 |
|
|
$ |
1,760,031 |
|
|
(4 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of reported net income to adjusted earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
$ |
58,184 |
|
|
$ |
156,363 |
|
|
|
|
|
$ |
120,824 |
|
|
$ |
241,569 |
|
|
|
| Loss from discontinued operations, net of tax |
|
|
1,660 |
|
|
|
739 |
|
|
|
|
|
|
1,660 |
|
|
|
582 |
|
|
|
| Restructuring charges and asset impairments, net |
|
|
16,931 |
|
|
|
8,613 |
|
|
|
|
|
|
21,559 |
|
|
|
8,560 |
|
|
|
| Loss (gain) on disposition of businesses |
|
|
271 |
|
|
|
(88,429 |
) |
|
|
|
|
|
2,330 |
|
|
|
(88,429 |
) |
|
|
| Transaction costs related to acquisitions and dispositions |
|
|
93 |
|
|
|
6,105 |
|
|
|
|
|
|
209 |
|
|
|
6,105 |
|
|
|
| Legal settlement |
|
|
- |
|
|
|
4,620 |
|
|
|
|
|
|
- |
|
|
|
4,620 |
|
|
|
| Acquisition/disposition related expenses |
|
|
- |
|
|
|
7,246 |
|
|
|
|
|
|
- |
|
|
|
7,246 |
|
|
|
|
Income from continuing operations, after income taxes, as adjusted
|
|
|
77,139 |
|
|
|
95,257 |
|
|
|
|
|
|
146,582 |
|
|
|
180,253 |
|
|
|
| Provision for income taxes, as adjusted |
|
|
42,751 |
|
|
|
45,894 |
|
|
|
|
|
|
83,025 |
|
|
|
96,413 |
|
|
|
| Income from continuing operations before income taxes, as adjusted |
|
|
119,890 |
|
|
|
141,151 |
|
|
|
|
|
|
229,607 |
|
|
|
276,666 |
|
|
|
| Interest, net |
|
|
34,294 |
|
|
|
38,839 |
|
|
|
|
|
|
68,510 |
|
|
|
81,673 |
|
|
|
| EBIT, as adjusted |
|
|
154,184 |
|
|
|
179,990 |
|
|
|
|
|
|
298,117 |
|
|
|
358,339 |
|
|
|
| Depreciation and amortization |
|
|
45,238 |
|
|
|
42,657 |
|
|
|
|
|
|
89,538 |
|
|
|
85,153 |
|
|
|
| EBITDA, as adjusted |
|
$ |
199,422 |
|
|
$ |
222,647 |
|
|
|
|
|
$ |
387,655 |
|
|
$ |
443,492 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of reported diluted earnings per share to adjusted
diluted earnings per share from continuing operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted earnings per share |
|
$ |
0.28 |
|
|
$ |
0.75 |
|
|
|
|
|
$ |
0.59 |
|
|
$ |
1.15 |
|
|
|
| Loss from discontinued operations, net of tax |
|
|
0.01 |
|
|
|
- |
|
|
|
|
|
|
0.01 |
|
|
|
- |
|
|
|
| Restructuring charges and asset impairments, net |
|
|
0.09 |
|
|
|
0.04 |
|
|
|
|
|
|
0.11 |
|
|
|
0.04 |
|
|
|
| Loss (gain) on disposition of businesses |
|
|
- |
|
|
|
(0.44 |
) |
|
|
|
|
|
0.01 |
|
|
|
(0.44 |
) |
|
|
| Transaction costs related to acquisitions and dispositions |
|
|
- |
|
|
|
0.03 |
|
|
|
|
|
|
- |
|
|
|
0.03 |
|
|
|
| Legal settlement |
|
|
- |
|
|
|
0.02 |
|
|
|
|
|
|
- |
|
|
|
0.02 |
|
|
|
| Acquisition/disposition related expenses |
|
|
- |
|
|
|
0.04 |
|
|
|
|
|
|
- |
|
|
|
0.04 |
|
|
|
|
Diluted earnings per share from continuing operations, as adjusted
|
|
$ |
0.39 |
|
|
$ |
0.45 |
|
|
|
|
|
$ |
0.72 |
|
|
$ |
0.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 flow, as adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash provided by operating activities |
|
$ |
95,221 |
|
|
$ |
96,915 |
|
|
|
|
|
$ |
153,587 |
|
|
$ |
201,008 |
|
|
|
| Capital expenditures |
|
|
(30,855 |
) |
|
|
(45,498 |
) |
|
|
|
|
|
(71,359 |
) |
|
|
(89,612 |
) |
|
|
| Restructuring payments |
|
|
12,210 |
|
|
|
8,901 |
|
|
|
|
|
|
33,866 |
|
|
|
30,775 |
|
|
|
| Pension contribution |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
36,731 |
|
|
|
- |
|
|
|
| Reserve account deposits |
|
|
9,110 |
|
|
|
(1,387 |
) |
|
|
|
|
|
(7,143 |
) |
|
|
(21,464 |
) |
|
|
| Payments related to investment divestiture |
|
|
- |
|
|
|
3,215 |
|
|
|
|
|
|
- |
|
|
|
26,375 |
|
|
|
| Acquisition/disposition related expenses |
|
|
- |
|
|
|
10,483 |
|
|
|
|
|
|
- |
|
|
|
10,483 |
|
|
|
| Cash transaction fees |
|
|
146 |
|
|
|
11,116 |
|
|
|
|
|
|
335 |
|
|
|
11,116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Free cash flow, as adjusted |
|
$ |
85,832 |
|
|
$ |
83,745 |
|
|
|
|
|
$ |
146,017 |
|
|
$ |
168,681 |
|
|
|
Pitney Bowes
Editorial -
Bill Hughes, 203-351-6785
Chief Communications Officer
or
Financial -
Adam David, 203-351-7175
VP, Investor Relations
View source version on businesswire.com: http://www.businesswire.com/news/home/20160802005385/en/