Pitney Bowes Announces Second Quarter Results for 2010
STAMFORD, Conn.--(BUSINESS WIRE)-- Pitney Bowes Inc. (NYSE:PBI) today reported second quarter 2010 results.
Revenue for the quarter was $1.3 billion, a decline of 6 percent compared with the prior year. Adjusted earnings per diluted share from continuing operations for the second quarter was $0.48 compared with $0.55 for the prior year. Adjusted earnings per diluted share reflected the impact of lower revenue as a result of weaker than expected business conditions in the second half of the quarter and a one-time charge of $0.05 primarily to correct rates used to estimate unbilled International Mail Services revenue in prior periods. Earnings per diluted share for the quarter on a Generally Accepted Accounting Principles (GAAP) basis were $0.30 compared with $0.57 per diluted share for the prior year. GAAP earnings per diluted share for the quarter included a $0.15 charge for restructuring costs associated with the company's Strategic Transformation initiatives and asset impairments; a tax charge of $0.02 related to certain leveraged lease transactions outside the U.S.; a less than $0.01 tax charge primarily associated with out-of-the money stock options that expired during the quarter; and a $0.01 loss associated with discontinued operations.
Free cash flow for the quarter was $157 million, net of $70 million of tax payments. Free cash flow benefited from lower capital expenditures and lower finance receivables. On a GAAP basis, the company generated $118 million in cash from operations. During the quarter the company used $80 million of cash for dividends. Year-to-date, the company has generated $451 million in free cash flow and on a GAAP basis $424 million in cash from operations, which was used primarily to pay dividends and reduce debt.
The company's results for the quarter are summarized in the table below:
Second Quarter
Adjusted EPS $0.48
Restructuring and Asset Impairments ($0.15)
Tax Charges ($0.02)
GAAP EPS from Continuing Operations $0.31
Discontinued Operations ($0.01)
GAAP EPS $0.30
Commenting on the quarter, Chairman, President and CEO Murray D. Martin said, "We continue to implement a broad range of actions to manage through a prolonged period of global economic weakness. After seeing some early signs of stabilization among our small to mid-sized customer base in the first quarter, we experienced a decline in activity levels in the latter part of the second quarter. Our actions are positioning the company to deliver long-term value to customers and shareholders, despite the near-term impact of weaker demand."
Martin added, "We continued to generate strong free cash flow in the quarter, and are raising our free cash flow guidance for the year. In addition, our Strategic Transformation program is already generating meaningful results and contributed more than $20 million in net benefits during the quarter. The program is on track to achieve its objectives of improving our processes and reducing our cost of business while allowing us to invest in attractive growth opportunities."
Business Segment Results
To provide a better perspective on the business, its financial results and trends, the company is now aggregating its business segments into two groups based on the customers it primarily serves: Small and Medium Business (SMB) Solutions and Enterprise Business Solutions. The SMB Solutions group consists of the company's global Mailing operations. The Enterprise Business Solutions group includes the company's global Production Mail, Software, Management Services, Mail Services and Marketing Services operations.
SMB Solutions
2Q 2010 Y-O-Y Change Change ex Currency
Revenue $683 million (6 %) (7 %)
EBIT $196 million (11 %)
Within the SMB Solutions Group:
U.S. Mailing
2Q 2010 Y-O-Y Change Change ex Currency
Revenue $468 million (8 %) (8 %)
EBIT $167 million (13 %)
Renewed concerns about uncertain business and economic conditions are reflected in an increased number and proportion of U. S. Mailing customers electing to extend their leases for existing equipment. Lease extensions are profitable transactions but generate less sales revenue than new equipment leases. The segment's revenue was also adversely affected by lower rental and financing revenue from reduced equipment on lease as a result of lower sales in prior periods. Rental and financing revenue is relatively high-margin and the decline in this revenue accounted for the majority of the total year-over-year reduction in EBIT.
In mid-May, the company completed the U.S launch of its new, innovative Connect+ TM communications and mailing system. The global rollout will continue in phases going forward. Connect+ TM is being well received by customers as the industry's first mailing system with web and application based software architecture and instant online access to numerous mailing, printing and reporting applications.
International Mailing
2Q 2010 Y-O-Y Change Change ex Currency
Revenue $216 million (1 %) (2 %)
EBIT $30 million 9 %
International Mailing revenue declined slightly with very little currency impact during the quarter. Consistent with the pattern in the U.S., customers increasingly opted for lease extensions for existing equipment, especially in the UK and other parts of Europe. Financing and rental revenue declined because of lower equipment sales in prior periods. EBIT margin improved versus the prior year in part due to past and ongoing productivity initiatives which offset the negative margin impact from lower financing revenue.
Enterprise Business Solutions
2Q 2010 Y-O-Y Change Change ex Currency
Revenue $614 million (6 %) (5 %)
EBIT $50 million (16 %)
The impacts for International Mail Services (IMS), noted earlier, reduced revenue and EBIT for the Enterprise Business Solutions group by $21 million and $16 million, respectively, in the quarter.
Within the Enterprise Business Solutions Group:
Worldwide Production Mail
2Q 2010 Y-O-Y Change Change ex Currency
Revenue $120 million (7 %) (6 %)
EBIT $ 9 million (14 %)
Revenue growth during the quarter was adversely impacted by the timing of installations of inserting systems and related software. As a result, worldwide Production Mail backlog remained above prior year at the end of the second quarter. Equipment sales revenue was further reduced as customers, particularly in Europe, made fewer capital investments in new equipment and displayed renewed concerns about future business conditions. The EBIT margin for the quarter declined on lower revenue when compared with the prior year.
Software
2Q 2010 Y-O-Y Change Change ex Currency
Revenue $ 81 million (2 %) (3 %)
EBIT $ 6 million 11 %
Revenue declined slightly in the quarter versus the prior year due primarily to the continued transition to annuity-based pricing for some software solutions. Excluding the impacts of this transition, revenue growth would have been slightly positive versus the prior year. The company's actions to integrate its operations and focus its product offerings have resulted in continued year-over-year improvement in the Software segment EBIT margin. The company plans to continue expansion of its SaaS offerings and recurring revenue streams from term licenses. The company recently formed an alliance with salesforce.com, for example, to deliver software as a service solutions in the salesforce.com ecosystem that will help agents and insurance carriers increase profitability and strengthen customer relationships. During the quarter, the company announced its planned acquisition of Portrait Software plc and expects to complete the transaction in the third quarter. Portrait Software plc will further enhance the company's analytics and customer communications management capabilities.
Management Services
2Q 2010 Y-O-Y Change Change ex Currency
Revenue $249 million (6 %) (5 %)
EBIT $ 22 million 37 %
As expected, revenue for the quarter declined as a result of account contractions and terminations in the U.S. last year. Revenue also reflected a customer decision, at end of contract, to close some outsourced postal-related facilities that Management Services had previously operated. Outside the U.S., where the company principally provides print and customer communication services to enterprise accounts in Europe, revenue declined on lower volumes. However, EBIT margins improved globally versus the prior year, led by continuing margin improvement in Europe and the U.S. resulting from the company's focus on more profitable contracts, ongoing productivity initiatives, and a continued transition to a more variable cost structure.
Mail Services
2Q 2010 Y-O-Y Change Change ex Currency
Revenue $126 million (9 %) (9 %)
EBIT $ 5 million (75 %)
Mail Services continues to process increasing volumes of U.S. domestic presort mail and diversify its mix of mail as it grows Standard Class mail volumes. Overall volume of mail processed increased from both new and existing customers and was driven in part by the company's unique ability to help mailers benefit from the discounts available when properly utilizing the Intelligent Mail Barcode. Presort-related revenue for the quarter grew and the EBIT margin improved.
As noted earlier, revenue growth and margin were impacted by an adjustment made in the IMS portion of the business. During the quarter, the company made a one-time out of period adjustment primarily to correct the rates used previously to estimate earned but unbilled revenue for the periods 2007 through the first quarter 2010. The aggregate adjustment reduced second quarter revenue and EBIT, but the impact of this adjustment was not material on any individual quarter during these periods.
Marketing Services
2Q 2010 Y-O-Y Change Change ex Currency
Revenue $ 37 million 7 % 7 %
EBIT $ 7 million 30 %
Revenue improved versus the prior year primarily because of increased vendor advertising revenue for the Movers' Source kits. EBIT margin improved year-over-year due to ongoing productivity initiatives.
2010 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.
The company is modifying its revenue and earnings guidance as a result of the business trends during the second quarter; the economic and business outlook for the remainder of the year and the one-time adjustment in the second quarter. The global economy and business environment have not stabilized or improved as quickly as the company anticipated when it provided guidance earlier in the year. The company noted deterioration in conditions as the second quarter progressed, particularly among the customers in its SMB segment group. Based on the uncertainty surrounding the current economic outlook, the company now does not expect the business environment to improve as much as it had previously expected in the second half of the year.
Given the continued volatility and uncertainty concerning currency, the company will only provide revenue guidance on a constant currency basis. The company now expects revenue for the year on a constant currency basis in the range of flat to a three percent decline when compared with the prior year. Adjusted EPS from continuing operations for the year is expected to be in the range of $2.10 to $2.30 and GAAP EPS is expected to be in the range of $1.49 to $1.85. GAAP EPS includes tax charges of $.13 per diluted share related to out of the money stock options; certain capital lease transactions outside the U.S. and health care legislation enacted in the beginning of the year. GAAP EPS also includes expected restructuring and asset impairment charges in the range of $.32 to $.48 related to the company's previously announced Strategic Transformation program.
Based on the strong generation of free cash flow in the first half of the year and the outlook for the remainder of the year, the company is increasing its free cash flow guidance for the year by $50 million. The company now expects to generate free cash flow for 2010 in the range of $700 million to $800 million.
The company's expected earnings results for 2010 are summarized below.
Full Year 2010
Adjusted EPS $2.10 to $2.30
Restructuring and Asset Impairments ($0.32 to $0.48)
Tax Charges ($0.13)
GAAP EPS from Continuing Operations $1.49 to $1.85
Mr. Martin concluded, "Given diminished economic growth expectations globally in the second half of the year, and a more cautious sentiment among our customers, we are reducing our full-year revenue and earnings guidance. However, we are also increasing our free cash flow guidance. We remain confident in and committed to our long-term growth strategies and Strategic Transformation program, and our strong free cash flow gives us significant financial and strategic flexibility."
Management of Pitney Bowes will discuss the company's results in a broadcast over the Internet today at 5:00 p.m. EST. 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/investorrelations.
Pitney Bowes is a $5.6 billion global leader whose products, services and solutions deliver value within the mailstream and beyond. For more information visit www.pitneybowes.com.
The company's financial results are reported in accordance with generally accepted accounting principles (GAAP). However, earnings per share, income from continuing operations, and free cash flow results are adjusted to exclude the impact of special items such as transformation initiatives, restructuring charges, tax adjustments, accounting adjustments and write downs of assets. Although these charges represent actual expenses to the company, these charges might mask the periodic income and financial and operating trends associated with our business. The use of free cash flow has limitations. GAAP cash flow has the advantage of including all cash available to the company after actual expenditures for all purposes. Free cash flow permits a shareholder insight into the amount of cash that management could have available for other discretionary uses. It adjusts for long-term commitments such as capital expenditures, as well as special items like cash used for restructuring charges, unusual tax payments and contributions to its pension funds. These items use cash that is not otherwise available to the company and are important expenditures. Management compensates for these limitations by using a combination of GAAP cash flow and free cash flow in doing its planning.
EBIT excludes interest payments and taxes, both cash expenses to the company, and as a result, has the effect of showing a greater amount of earnings than net income. The company uses EBIT for purposes of measuring the performance of its management team. The interest rates and tax rates applicable to the company generally are outside the control of management, and it can be useful to judge performance independent of those variables. Financial results on a constant currency basis exclude the impact of changes in foreign currency exchange rates since the prior period under comparison and are calculated using the average of the rates in effect during that period. 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 intervening period.
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 in the Investor Relations section.
This document contains "forward-looking statements" about our expected or potential future business and financial performance. For us forward-looking statements include, but are not limited to, statements about possible transformation initiatives; restructuring charges; our 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: the uncertain economic environment, fluctuations in customer demand; mail volumes; foreign currency exchange rates; the outcome of litigations; and changes in postal regulations, as more fully outlined in the company's 2009 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, 2010 and 2009, and consolidated balance sheets at June 30, 2010 and March 31, 2010 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,
2010 2009 (2) 2010 2009 (2)
Revenue:
Equipment $ 230,235 $ 257,196 $ 470,171 $ 489,021
sales
Supplies 77,054 81,973 162,331 170,002
Software 86,151 87,380 169,280 167,106
Rentals 150,141 156,151 305,578 324,281
Financing 156,604 174,508 319,379 357,306
Support 175,298 179,246 355,332 353,593
services
Business 421,754 442,008 863,399 896,737
services
Total revenue 1,297,237 1,378,462 2,645,470 2,758,046
Costs and
expenses:
Cost of
equipment 102,997 120,754 209,399 224,818
sales
Cost of 24,173 21,369 49,538 44,710
supplies
Cost of 19,282 21,570 39,873 41,067
software
Cost of 34,310 38,013 71,381 73,864
rentals
Financing
interest 21,821 25,438 43,759 49,890
expense
Cost of
support 111,695 120,239 226,301 237,586
services
Cost of
business 337,652 345,483 668,124 698,527
services
Selling,
general and 426,352 431,088 869,649 881,479
administrative
Research and 38,168 46,622 79,033 93,571
development
Restructuring
charges and 48,512 - 69,234 -
asset
impairments
Other interest 29,204 29,553 56,862 57,304
expense
Interest (696 ) (933 ) (1,458 ) (2,485 )
income
Total costs 1,193,470 1,199,196 2,381,695 2,400,331
and expenses
Income from
continuing
operations 103,767 179,266 263,775 357,715
before income
taxes
Provision for 35,177 62,535 108,422 134,684
income taxes
Income from
continuing 68,590 116,731 155,353 223,031
operations
(Loss)/gain
from
discontinued (2,666 ) 5,102 (5,796 ) 7,725
operations,
net of income
tax
Net income
before
attribution of 65,924 121,833 149,557 230,756
noncontrolling
interests
Less:
Preferred
stock
dividends of
subsidiaries
attributable
to 4,543 4,571 9,137 9,092
noncontrolling
interests
Pitney Bowes
Inc. net $ 61,381 $ 117,262 $ 140,420 $ 221,664
income
Amounts
attributable
to Pitney
Bowes Inc.
common
stockholders:
Income from
continuing $ 64,047 $ 112,160 $ 146,216 $ 213,939
operations
(Loss)/gain
from (2,666 ) 5,102 (5,796 ) 7,725
discontinued
operations
Pitney Bowes
Inc. net $ 61,381 $ 117,262 $ 140,420 $ 221,664
income
Basic earnings
per share of
common stock
attributable
to
Pitney Bowes
Inc. common
stockholders
(1):
Continuing $ 0.31 $ 0.54 $ 0.70 $ 1.04
operations
Discontinued (0.01 ) 0.02 (0.03 ) 0.04
operations
Net income $ 0.30 $ 0.57 $ 0.68 $ 1.07
Diluted
earnings per
share of
common stock
attributable
to
Pitney Bowes
Inc. common
stockholders
(1):
Continuing $ 0.31 $ 0.54 $ 0.70 $ 1.03
operations
Discontinued (0.01 ) 0.02 (0.03 ) 0.04
operations
Net income $ 0.30 $ 0.57 $ 0.68 $ 1.07
Average common
and potential
common
shares 208,059,314 207,138,489 207,901,743 207,001,754
outstanding
(1) The sum of the earnings per share amounts may not equal the totals above due
to rounding.
(2) Certain prior year amounts have been reclassified to conform to the current
year presentation.
Pitney Bowes Inc. Consolidated Balance Sheets (Unaudited) (Dollars in thousands, except per share data) Assets 06/30/10 03/31/10 Current assets: Cash and cash equivalents $ 459,451 $ 476,940 Short-term investments 21,839 19,211 Accounts receivable, less allowances: 06/10 $34,565 3/10 $39,491 710,019 765,438 Finance receivables, less allowances: 06/10 $46,195 3/10 $44,578 1,329,000 1,336,028 Inventories 182,974 162,070 Current income taxes 146,859 82,095 Other current assets and prepayments 99,856 101,014 Total current assets 2,949,998 2,942,796 Property, plant and equipment, net 463,993 488,245 Rental property and equipment, net 322,110 344,363 Long-term finance receivables, less allowances: 06/10 $22,921 3/10 $24,177 1,226,406 1,307,670 Investment in leveraged leases 232,820 242,666 Goodwill 2,211,544 2,254,115 Intangible assets, net 280,829 294,014 Non-current income taxes 107,963 108,023 Other assets 481,404 386,457 Total assets $ 8,277,067 $ 8,368,349 Liabilities, noncontrolling interests and stockholders' deficit Current liabilities: Accounts payable and accrued liabilities $ 1,661,401 $ 1,661,467 Current income taxes 139,593 155,871 Notes payable and current portion of long-term 149,082 103,533 obligations Advance billings 465,972 482,849 Total current liabilities 2,416,048 2,403,720 Deferred taxes on income 320,100 331,243 Tax uncertainties and other income tax 541,332 533,775 liabilities Long-term debt 4,233,469 4,215,728 Other non-current liabilities 590,429 610,424 Total liabilities 8,101,378 8,094,890 Noncontrolling interests (Preferred 296,370 296,370 stockholders' equity in subsidiaries) Stockholders' deficit: Cumulative preferred stock, $50 par value, 4% 4 4 convertible Cumulative preference stock, no par value, 824 841 $2.12 convertible Common stock, $1 par value 323,338 323,338 Additional paid-in capital 244,662 246,922 Retained earnings 4,280,409 4,294,784 Accumulated other comprehensive loss (583,181 ) (486,083 ) Treasury stock, at cost (4,386,737 ) (4,402,717 ) Total Pitney Bowes Inc. stockholders' deficit (120,681 ) (22,911 ) Total liabilities, noncontrolling interests and $ 8,277,067 $ 8,368,349 stockholders' deficit
Pitney Bowes Inc.
Revenue and EBIT
Business Segments
June 30, 2010
(Unaudited)
(Dollars in thousands) Three Months Ended June 30,
%
2010 2009 Change
Revenue
US Mailing $ 467,636 $ 510,324 (8 %)
International Mailing 215,814 217,900 (1 %)
Small & Medium Business Solutions 683,450 728,224 (6 %)
Production Mail 120,395 130,137 (7 %)
Software 80,960 82,823 (2 %)
Management Services 248,809 263,763 (6 %)
Mail Services (3) 126,155 138,598 (9 %)
Marketing Services 37,468 34,917 7 %
Enterprise Business Solutions 613,787 650,238 (6 %)
Total revenue $ 1,297,237 $ 1,378,462 (6 %)
EBIT (1)
US Mailing $ 166,913 $ 192,538 (13 %)
International Mailing 29,557 27,069 9 %
Small & Medium Business Solutions 196,470 219,607 (11 %)
Production Mail 8,954 10,413 (14 %)
Software 5,808 5,219 11 %
Management Services 22,181 16,140 37 %
Mail Services (3) 5,354 21,723 (75 %)
Marketing Services 7,337 5,653 30 %
Enterprise Business Solutions 49,634 59,148 (16 %)
Total EBIT $ 246,104 $ 278,755 (12 %)
Unallocated amounts:
Interest, net (2) (50,329 ) (54,058 )
Corporate expense (43,496 ) (45,431 )
Restructuring charges and asset (48,512 ) -
impairments
Income from continuing operations before $ 103,767 $ 179,266
income taxes
(1) Earnings before interest and taxes (EBIT) excludes general corporate
expenses and restructuring charges and asset impairments.
(2) Interest, net includes financing interest expense, other interest expense
and interest income.
The Mail Services segment includes a one-time out of period adjustment to
correct rates used previously to estimate earned but unbilled revenue for
the periods 2007 through first quarter 2010. The aggregate adjustment for
(3) this period reduced second quarter revenue and EBIT by approximately $21
million and $16 million respectively, but the impact of this adjustment was
not material on any individual quarter or year during these periods and is
not material to anticipated 2010 results.
Pitney Bowes Inc.
Revenue and EBIT
Business Segments
June 30, 2010
(Unaudited)
(Dollars in thousands) Six Months Ended June 30,
%
2010 2009 Change
Revenue
US Mailing $ 944,677 $ 1,026,341 (8 %)
International Mailing 451,117 455,212 (1 %)
Small & Medium Business Solutions 1,395,794 1,481,553 (6 %)
Production Mail 245,171 239,566 2 %
Software 160,333 158,198 1 %
Management Services 503,425 530,265 (5 %)
Mail Services (3) 271,257 279,849 (3 %)
Marketing Services 69,490 68,615 1 %
Enterprise Business Solutions 1,249,676 1,276,493 (2 %)
Total revenue $ 2,645,470 $ 2,758,046 (4 %)
EBIT (1)
US Mailing $ 338,050 $ 383,166 (12 %)
International Mailing 66,538 58,008 15 %
Small & Medium Business Solutions 404,588 441,174 (8 %)
Production Mail 19,868 15,480 28 %
Software 10,140 7,823 30 %
Management Services 42,273 29,777 42 %
Mail Services (3) 29,674 40,298 (26 %)
Marketing Services 11,859 9,875 20 %
Enterprise Business Solutions 113,814 103,253 10 %
Total EBIT $ 518,402 $ 544,427 (5 %)
Unallocated amounts:
Interest, net (2) (99,163 ) (104,709 )
Corporate expense (86,230 ) (82,003 )
Restructuring charges and asset (69,234 ) -
impairments
Income from continuing operations before $ 263,775 $ 357,715
income taxes
(1) Earnings before interest and taxes (EBIT) excludes general corporate
expenses and restructuring charges and asset impairments.
(2) Interest, net includes financing interest expense, other interest expense
and interest income.
The Mail Services segment includes a one-time out of period adjustment to
correct rates used previously to estimate earned but unbilled revenue for
the periods 2007 through first quarter 2010. The aggregate adjustment for
(3) this period reduced second quarter revenue and EBIT by approximately $21
million and $16 million respectively, but the impact of this adjustment was
not material on any individual quarter or year during these periods and is
not material to anticipated 2010 results.
Pitney Bowes Inc.
Reconciliation of Reported Consolidated Results to Adjusted Results
(Unaudited)
(Dollars in thousands, except per share data)
Three Months Ended June 30, Six Months Ended June 30,
2010 2009 2010 2009
GAAP income from
continuing operations
after income taxes, as $ 64,047 $ 112,160 $ 146,216 $ 213,939
reported
Restructuring charges 31,870 - 45,397 -
and asset impairments
Tax adjustments 3,800 869 21,490 11,988
Income from continuing
operations
after income taxes, as $ 99,717 $ 113,029 $ 213,103 $ 225,927
adjusted
GAAP diluted earnings
per share from
continuing operations, $ 0.31 $ 0.54 $ 0.70 $ 1.03
as reported
Restructuring charges 0.15 - 0.22 -
and asset impairments
Tax adjustments 0.02 0.00 0.10 0.06
Diluted earnings per
share from continuing
operations, as adjusted $ 0.48 $ 0.55 $ 1.03 $ 1.09
GAAP net cash provided
by operating activities,
as reported $ 117,654 $ 206,916 $ 423,802 $ 483,387
Capital expenditures (30,272 ) (42,414 ) (58,639 ) (90,190 )
Restructuring payments
and discontinued 39,035 16,409 66,755 49,110
operations
Reserve account deposits 30,688 23,207 19,467 1,532
Free cash flow, as $ 157,105 $ 204,118 $ 451,385 $ 443,839
adjusted
Note: The sum of the earnings per share amounts may not equal the totals above
due to rounding.
Source: Pitney Bowes Inc.
Released August 3, 2010