EX-99.1 2 exhibit991pbmsproforminfor.htm EXHIBIT Exhibit 99.1 PBMS Pro Form Information



Exhibit 99.1



Reclassification Statement

The European operations of Pitney Bowes Management Services have already been reclassified to discontinued operations in the Company's second quarter 2013 reported results and Form 10-Q.

This financial information is being presented on a "pro forma" basis, as if the North America Pitney Bowes Management Services business was also reflected as a discontinued operation in the second quarter 2013. Pro forma amounts for the prior periods have been reclassified to conform to this presentation.

The North America Pitney Bowes Management Services business will be reflected as a discontinued operation in the Company's Form 10-Q for the third quarter 2013.

F-1



Pitney Bowes Inc.
Pro forma Consolidated Statements of Income - Reclassified Management Services North America to Discontinued Operations
(Unaudited)
(Amounts in thousands, except per share data) (1)
2013
 
 
Q1
Q2
YTD 6/30
Revenue:
 
 
 
 
Equipment sales
$
214,999

$
243,644

$
458,643

 
Supplies
74,287

72,337

146,624

 
Software
87,012

100,482

187,494

 
Rentals
136,379

136,775

273,154

 
Financing
116,762

115,929

232,691

 
Support services
165,486

163,178

328,664

 
Business services
146,775

151,154

297,929

 
      Total revenue
941,700

983,499

1,925,199

Costs and expenses:
 
 
 
 
Cost of equipment sales
109,337

128,426

237,763

 
Cost of supplies
23,262

22,692

45,954

 
Cost of software
20,706

21,435

42,141

 
Cost of rentals
27,755

26,424

54,179

 
Financing interest expense
19,875

19,798

39,673

 
Cost of support services
108,009

104,282

212,291

 
Cost of business services
102,355

108,168

210,523

 
Selling, general and administrative
357,297

359,047

716,345

 
Research and development
33,335

31,501

64,836

 
Restructuring charges and asset impairments

19,031

19,031

 
Other interest expense
30,739

31,347

62,086

 
Interest income
(1,748
)
(1,302
)
(3,050
)
 
Other expense, net
25,121


25,121

 
     Total costs and expenses
856,043

870,850

1,726,893

Income from continuing operations before income taxes
85,657

112,649

198,306

Provision for income taxes
20,871

25,389

46,260

Income from continuing operations
64,786

87,260

152,046

Income (loss) from discontinued operations, net of income tax
7,314

(91,899
)
(84,585
)
Net income (loss) before attribution of noncontrolling interests
72,100

(4,639
)
67,461

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

4,594

9,188

Net income (loss) - Pitney Bowes Inc.
$
67,506

$
(9,233
)
$
58,273

Amounts attributable to common stockholders:
 
 
 
 
Income from continuing operations
$
60,192

$
82,666

$
142,858

 
Income (loss) from discontinued operations
7,314

(91,899
)
(84,585
)
 
Net income (loss) - Pitney Bowes Inc.
$
67,506

$
(9,233
)
$
58,273

Basic earnings per share attributable to common stockholders (1):
 
 
 
 
Continuing operations
$
0.30

$
0.41

$
0.71

 
Discontinued operations
0.04

(0.46
)
(0.42
)
 
Net income (loss) - Pitney Bowes Inc.
$
0.34

$
(0.05
)
$
0.29

Diluted earnings per share attributable to common stockholders (1):
 
 
 
 
Continuing operations
$
0.30

$
0.41

$
0.71

 
Discontinued operations
0.04

(0.45
)
(0.42
)
 
Net income (loss) - Pitney Bowes Inc.
$
0.33

$
(0.05
)
$
0.29

 
 
 
 
 
Weighted average shares outstanding - Basic EPS
201,148

201,567

201,358

Weighted average shares outstanding - Diluted EPS
202,210

202,803

202,380

 
 
 
 
 
(1) Amounts may not add due to rounding.
 

F-2



Pitney Bowes Inc.
Pro forma Consolidated Statements of Income - Reclassified Management Services North America to Discontinued Operations
(Unaudited)
(Amounts in thousands, except per share data) (1)
2012
 
 
Q1
Q2
Q3
Q4
Annual
Revenue:
 
 
 
 
 
 
Equipment sales
$
220,179

$
224,235

$
212,103

$
281,772

$
938,289

 
Supplies
76,365

70,522

66,902

69,815

283,604

 
Software
104,350

104,551

93,476

110,385

412,762

 
Rentals
140,389

145,497

142,288

141,445

569,619

 
Financing
126,748

122,948

123,999

121,435

495,130

 
Support services
173,518

171,254

171,652

173,243

689,667

 
Business services
147,955

146,790

151,908

147,334

593,987

 
      Total revenue
989,504

985,797

962,327

1,045,430

3,983,058

Costs and expenses:
 
 
 
 
 
 
Cost of equipment sales
96,916

106,718

105,556

149,861

459,051

 
Cost of supplies
23,871

20,863

20,694

22,141

87,569

 
Cost of software
21,093

24,404

22,784

24,427

92,708

 
Cost of rentals
30,225

31,851

25,182

28,098

115,356

 
Financing interest expense
21,139

20,642

19,604

19,755

81,140

 
Cost of support services
115,087

112,123

107,095

105,750

440,055

 
Cost of business services
96,958

98,501

103,230

97,608

396,298

 
Selling, general and administrative
381,663

362,599

372,821

394,152

1,511,235

 
Research and development
34,073

33,811

36,669

32,379

136,932

 
Restructuring charges and asset impairments

(980
)

18,157

17,177

 
Other interest expense
29,367

30,353

27,541

27,967

115,228

 
Interest income
(1,733
)
(2,003
)
(2,057
)
(2,189
)
(7,982
)
 
Other (income) expense, net
(3,234
)
4,372



1,138

 
     Total costs and expenses
845,425

843,254

839,118

918,108

3,445,905

Income from continuing operations before income taxes
144,079

142,543

123,209

127,322

537,153

Provision for income taxes
9,123

46,217

30,759

37,059

123,158

Income from continuing operations
134,956

96,326

92,450

90,263

413,995

Income (loss) from discontinued operations, net of income tax
28,308

7,891

(11,323
)
24,668

49,544

Net income before attribution of noncontrolling interests
163,264

104,217

81,127

114,931

463,539

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

4,594

4,594

4,594

18,376

Net income - Pitney Bowes Inc.
$
158,670

$
99,623

$
76,533

$
110,337

$
445,163

Amounts attributable to common stockholders:
 
 
 
 
 
 
Income from continuing operations
$
130,362

$
91,732

$
87,856

$
85,669

$
395,619

 
Income (loss) from discontinued operations
28,308

7,891

(11,323
)
24,668

49,544

 
Net income - Pitney Bowes Inc.
$
158,670

$
99,623

$
76,533

$
110,337

$
445,163

Basic earnings per share attributable to common stockholders (1):
 
 
 
 
 
 
Continuing operations
$
0.65

$
0.46

$
0.44

$
0.43

$
1.97

 
Discontinued operations
0.14

0.04

(0.06
)
0.12

0.25

 
Net income - Pitney Bowes Inc.
$
0.79

$
0.50

$
0.38

$
0.55

$
2.22

Diluted earnings per share attributable to common stockholders (1):
 
 
 
 
 
 
Continuing operations
$
0.65

$
0.46

$
0.44

$
0.43

$
1.96

 
Discontinued operations
0.14

0.04

(0.06
)
0.12

0.25

 
Net income - Pitney Bowes Inc.
$
0.79

$
0.50

$
0.38

$
0.55

$
2.21

 
 
 
 
 
 
 
Weighted average shares outstanding - Basic EPS
199,959

200,252

200,593

200,784

200,397

Weighted average shares outstanding - Diluted EPS
200,672

201,111

201,602

202,071

201,366

 
 
 
 
 
 
 
(1) Amounts may not add due to rounding.
 
 
 

F-3



Pitney Bowes Inc.
Pro forma Consolidated Statements of Income - Reclassified Management Services North America to Discontinued Operations
(Unaudited)
(Amounts in thousands, except per share data) (1)
2011
 
2010
 
 
Q1
Q2
Q3
Q4
Annual
 
Annual
Revenue:
 
 
 
 
 
 
 
 
Equipment sales
$
241,631

$
242,921

$
221,475

$
280,365

$
986,392

 
$
1,022,563

 
Supplies
82,870

78,587

74,271

72,246

307,974

 
318,430

 
Software
99,565

105,516

113,224

108,301

426,606

 
390,219

 
Rentals
156,692

156,162

154,210

151,926

618,990

 
651,348

 
Financing
140,589

136,369

136,000

134,311

547,269

 
587,359

 
Support services
178,614

176,807

175,286

175,798

706,505

 
711,519

 
Business services
137,600

138,687

152,833

150,829

579,949

 
579,632

 
      Total revenue
1,037,561

1,035,049

1,027,299

1,073,776

4,173,685

 
4,261,070

Costs and expenses:
 
 
 
 
 
 
 
 
Cost of equipment sales
114,753

104,385

97,559

132,782

449,479

 
469,158

 
Cost of supplies
26,192

25,562

22,611

23,089

97,454

 
97,172

 
Cost of software
25,212

24,898

23,431

25,566

99,107

 
93,391

 
Cost of rentals
35,907

36,109

35,817

30,770

138,603

 
155,480

 
Financing interest expense
23,293

22,192

21,430

20,783

87,698

 
88,292

 
Cost of support services
115,276

115,417

114,074

107,815

452,582

 
451,609

 
Cost of business services
97,463

98,126

104,076

100,089

399,755

 
382,017

 
Selling, general and administrative
396,082

400,733

394,719

403,620

1,595,153

 
1,624,724

 
Research and development
34,758

37,546

35,573

40,873

148,750

 
156,573

 
Restructuring charges and asset impairments
20,434

5,432

18,552

74,213

118,631

 
170,632

 
Other interest expense
28,524

28,550

28,932

29,357

115,363

 
115,619

 
Interest income
(1,222
)
(2,215
)
(1,265
)
(1,093
)
(5,795
)
 
(2,587
)
 
Other income, net


(10,718
)
(9,200
)
(19,918
)
 

 
     Total costs and expenses
916,671

896,735

884,791

978,665

3,676,862

 
3,802,080

Income from continuing operations before income taxes
120,890

138,314

142,508

95,111

496,823

 
458,990

Provision (benefit) for income taxes
36,119

45,713

(5,337
)
(36,997
)
39,498

 
173,918

Income from continuing operations
84,771

92,601

147,845

132,108

457,325

 
285,072

Income from discontinued operations, net of income tax
6,126

12,928

29,516

129,960

178,530

 
25,631

Net income before attribution of noncontrolling interests
90,897

105,529

177,361

262,068

635,855

 
310,703

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

4,594

4,593

4,594

18,375

 
18,324

Net income - Pitney Bowes Inc.
$
86,303

$
100,935

$
172,768

$
257,474

$
617,480

 
$
292,379

Amounts attributable to common stockholders:
 
 
 
 
 
 
 
 
Income from continuing operations
$
80,177

$
88,007

$
143,252

$
127,514

$
438,950

 
$
266,748

 
Income from discontinued operations
6,126

12,928

29,516

129,960

178,530

 
25,631

 
Net income - Pitney Bowes Inc.
$
86,303

$
100,935

$
172,768

$
257,474

$
617,480

 
$
292,379

Basic earnings per share attributable to common stockholders (1):
 
 
 
 
 
 
 
Continuing operations
$
0.39

$
0.43

$
0.71

$
0.64

$
2.17

 
$
1.29

 
Discontinued operations
0.03

0.06

0.15

0.65

0.88

 
0.12

 
Net income - Pitney Bowes Inc.
$
0.42

$
0.50

$
0.86

$
1.29

$
3.06

 
$
1.42

Diluted earnings per share attributable to common stockholders (1):
 
 
 
 
 
 
 
Continuing operations
$
0.39

$
0.43

$
0.71

$
0.64

$
2.16

 
$
1.29

 
Discontinued operations
0.03

0.06

0.15

0.65

0.88

 
0.12

 
Net income - Pitney Bowes Inc.
$
0.42

$
0.49

$
0.85

$
1.28

$
3.05

 
$
1.41

 
 
 
 
 
 
 
 
 
Weighted average shares outstanding - Basic EPS
203,690

203,171

201,294

199,670

201,956

 
205,995

Weighted average shares outstanding - Diluted EPS
204,195

204,085

202,195

200,504

202,766

 
206,753

(1) Amounts may not add due to rounding.
 
 
 
 
 

F-4



Pitney Bowes Inc.
Revenue and EBIT
Pro forma Business Segments - Reclassified Management Services North America to Discontinued Operations
(Unaudited)
 
 
 
 
 
(Amounts in thousands) (3)
2013
 
 
 Q1
 Q2
 YTD 6/30
Revenue
 
 
 
 
North America Mailing
$
430,375

$
432,889

$
863,264

 
International Mailing
167,455

164,556

332,011

 
   Small & Medium Business Solutions
597,830

597,445

1,195,275

 
 
 
 
 
 
Production Mail
118,802

144,986

263,788

 
Software
80,721

92,242

172,963

 
Management Services



 
Mail Services
118,855

119,058

237,913

 
Marketing Services
25,492

29,768

55,260

 
   Enterprise Business Solutions
343,870

386,054

729,924

 
 
 
 
 
Total Revenue
$
941,700

$
983,499

$
1,925,199

 
 
 
 
 
EBIT (1)
 
 
 
 
North America Mailing
$
154,505

$
166,363

$
320,868

 
International Mailing
17,749

19,285

37,034

 
   Small & Medium Business Solutions
172,254

185,648

357,902

 
 
 
 
 
 
Production Mail
3,055

13,617

16,672

 
Software
4,890

15,729

20,619

 
Management Services



 
Mail Services
19,349

15,484

34,833

 
Marketing Services
1,986

4,181

6,167

 
   Enterprise Business Solutions
29,281

49,010

78,291

 
 
 
 
 
Total EBIT
201,535

234,658

436,193

Unallocated amounts:
 
 
 
 
Corporate and other expenses
(67,011
)
(53,134
)
(120,145
)
 
Interest, net (2)
(48,866
)
(49,843
)
(98,709
)
 
Restructuring Charges and Asset Impairments

(19,031
)
(19,031
)
Income from continuing operations before taxes
$
85,657

$
112,649

$
198,306

 
 
 
 
 
(1) Earnings before interest and taxes (EBIT) excludes general corporate expenses, restructuring charges and asset impairments and goodwill impairments.
 
(2) Interest, net includes financing interest expense, other interest expense and interest income.
 
 
(3) Amounts may not add due to rounding.

F-5



Pitney Bowes Inc.
Revenue and EBIT
Pro forma Business Segments - Reclassified Management Services North America to Discontinued Operations
(Unaudited)
 
 
 
 
 
 
 
(Amounts in thousands) (3)
2012
 
 
 Q1
 Q2
Q3
Q4
Annual
Revenue
 
 
 
 
 
 
North America Mailing
$
461,305

$
453,484

$
447,920

$
456,243

$
1,818,952

 
International Mailing
168,014

165,480

154,170

187,973

675,637

 
   Small & Medium Business Solutions
629,319

618,964

602,090

644,216

2,494,589

 
 
 
 
 
 
 
 
Production Mail
115,016

123,067

122,251

151,775

512,109

 
Software
100,327

99,874

88,629

104,550

393,380

 
Management Services





 
Mail Services
114,636

108,045

109,721

112,690

445,092

 
Marketing Services
30,208

35,845

39,637

32,196

137,886

 
   Enterprise Business Solutions
360,185

366,833

360,238

401,212

1,488,469

 
 
 
 
 
 
 
Total Revenue
$
989,504

$
985,797

$
962,327

$
1,045,430

$
3,983,058

 
 
 
 
 
 
 
EBIT (1)
 
 
 
 
 
 
North America Mailing
$
178,171

$
167,870

$
168,934

$
173,690

$
688,665

 
International Mailing
19,997

21,758

11,286

25,938

78,979

 
   Small & Medium Business Solutions
198,168

189,628

180,220

199,628

767,645

 
 
 
 
 
 
 
 
Production Mail
2,779

5,594

3,555

13,716

25,644

 
Software
10,692

8,487

956

17,823

37,958

 
Management Services





 
Mail Services
34,245

28,464

18,455

19,841

101,005

 
Marketing Services
4,817

7,503

9,297

6,444

28,061

 
   Enterprise Business Solutions
52,531

50,049

32,263

57,825

192,668

 
 
 
 
 
 
 
Total EBIT
250,699

239,677

212,483

257,453

960,313

Unallocated amounts:
 
 
 
 
 
 
Corporate and other expenses
(57,847
)
(49,122
)
(44,186
)
(66,441
)
(217,596
)
 
Interest, net (2)
(48,773
)
(48,992
)
(45,088
)
(45,533
)
(188,386
)
 
Restructuring Charges and Asset Impairments

980


(18,157
)
(17,177
)
Income from continuing operations before taxes
$
144,079

$
142,543

$
123,209

$
127,322

$
537,153

 
 
 
 
 
 
 
(1) Earnings before interest and taxes (EBIT) excludes general corporate expenses, restructuring charges and asset impairments and goodwill impairments.
 
 
(2) Interest, net includes financing interest expense, other interest expense and interest income.
 
 
(3) Amounts may not add due to rounding.
 
 

F-6



Pitney Bowes Inc.
Revenue and EBIT
Pro forma Business Segments - Reclassified Management Services North America to Discontinued Operations
(Unaudited)
 
 
 
 
 
 
 
 
 
(Amounts in thousands) (3)
2011
 
2010
 
 
 Q1
 Q2
Q3
Q4
Annual
 
Annual
Revenue
 
 
 
 
 
 
 
 
North America Mailing
$
509,039

$
493,653

$
475,663

$
482,843

$
1,961,198

 
$
2,100,677

 
International Mailing
170,533

176,158

177,797

182,928

707,416

 
674,759

 
   Small & Medium Business Solutions
679,572

669,811

653,460

665,771

2,668,614

 
2,775,436

 
 
 
 
 
 
 
 
 
 
Production Mail
131,606

133,769

117,220

161,888

544,483

 
561,447

 
Software
95,985

99,783

109,153

102,481

407,402

 
374,750

 
Management Services





 

 
Mail Services
100,398

95,299

106,088

109,849

411,634

 
407,897

 
Marketing Services
29,999

36,377

41,408

33,788

141,572

 
141,538

 
   Enterprise Business Solutions
357,989

365,238

373,839

408,004

1,505,070

 
1,485,635

 
 
 
 
 
 
 
 
 
Total Revenue
$
1,037,561

$
1,035,049

$
1,027,299

$
1,073,776

$
4,173,685

 
$
4,261,070

 
 
 
 
 
 
 
 
 
EBIT (1)
 
 
 
 
 
 
 
 
North America Mailing
$
179,661

$
175,786

$
177,280

$
195,272

$
727,999

 
$
755,153

 
International Mailing
23,193

26,735

25,105

23,568

98,601

 
78,950

 
   Small & Medium Business Solutions
202,854

202,521

202,385

218,840

826,600

 
834,103

 
 
 
 
 
 
 
 
 
 
Production Mail
7,174

9,223

(3,426
)
19,591

32,562

 
60,896

 
Software
5,512

9,542

16,564

6,564

38,182

 
40,046

 
Management Services





 

 
Mail Services
16,144

13,135

39,096

34,651

103,026

 
84,714

 
Marketing Services
4,160

6,792

8,716

6,516

26,184

 
26,133

 
   Enterprise Business Solutions
32,990

38,693

60,950

67,323

199,956

 
211,514

 
 
 
 
 
 
 
 
 
Total EBIT
235,844

241,214

263,335

286,163

1,026,556

 
1,045,617

Unallocated amounts:
 
 
 
 
 
 
 
 
Corporate and other expenses
(43,926
)
(48,941
)
(53,178
)
(67,792
)
(213,837
)
 
(214,670
)
 
Interest, net (2)
(50,595
)
(48,527
)
(49,097
)
(49,047
)
(197,266
)
 
(201,324
)
 
Restructuring Charges and Asset Impairments
(20,434
)
(5,432
)
(18,552
)
(74,213
)
(118,631
)
 
(170,632
)
Income from continuing operations before taxes
$
120,890

$
138,314

$
142,508

$
95,111

$
496,823

 
$
458,990

 
 
 
 
 
 
 
 
 
(1) Earnings before interest and taxes (EBIT) excludes general corporate expenses, restructuring charges and asset impairments and goodwill impairments.
 
 
 
(2) Interest, net includes financing interest expense, other interest expense and interest income.
 
 
 
 
(3) Amounts may not add due to rounding.
 
 
 
 


F-7