STAMFORD, Conn.--(BUSINESS WIRE)--Jul. 30, 2013-- Pitney Bowes Inc. (NYSE: PBI) today reported financial results for the second quarter 2013.

SECOND QUARTER HIGHLIGHTS

• Revenue of $1.2 billion, nearly flat to the prior year excluding the impacts of currency and a decline of less than 1%, as reported
  • Double-digit revenue growth in Production Mail and Mail Services
  • Continued moderation in decline of recurring revenue streams in the SMB group
• Adjusted EPS from continuing operations of $0.52
• Operating results and the loss on sale related to the European businesses of the Management Services segment recorded in discontinued operations. Prior period results have been reclassified to reflect this change.
• GAAP EPS loss of $0.05, which includes:
  • $0.40 per share charge for goodwill impairment
  • $0.07 per share charge for restructuring
  • $0.10 per share loss in discontinued operations
• Free cash flow of $124 million; GAAP cash from operations of $147 million
• Retired $375 million of debt that matured in June
• Definitive agreement signed to sell the North America operations of Management Services to funds affiliated with Apollo Global Management, LLC
• Updates annual guidance for 2013

“Pitney Bowes is making solid progress on its transformative journey to improve the growth profile and profitability of the business,” said Marc Lautenbach, President and Chief Executive Officer. “The actions we have taken over the last six months and the results for this quarter are consistent with the Company’s long-term strategies that we detailed at Analyst Day in May.

“We are continuing to invest in the growth areas of our business, while at the same time becoming more efficient, flexible and focused to meet the changing needs of our clients. In addition, we have strengthened our balance sheet by further reducing debt and continue to drive operational excellence that will further enhance client and shareholder value.”

SECOND QUARTER 2013 RESULTS

Today, the Company announced that it has entered into a definitive agreement to sell the North America portion of its Management Services business to funds affiliated with Apollo Global Management, LLC. This business will be reflected as a discontinued operation in the third quarter.

During the second quarter, the Company entered into definitive agreements to sell the European businesses of Management Services and has reflected the results of these businesses in discontinued operations. Prior period results have been reclassified to reflect this change. Revenue this quarter excludes approximately $45 million for revenue associated with the European operations of Management Services.

Revenue for the quarter was $1.2 billion, which was a decline of less than 1% when compared to the prior year and nearly flat to the prior year excluding the impacts of currency. Revenue for the quarter benefited from double-digit growth in the Production Mail and Mail Services segments. International Mailing revenue was flat with the prior year excluding the impacts of currency. The growth areas were offset by lower recurring revenue streams in the SMB group, lower licensing revenue in the Software segment and lower revenue due to continued pricing pressure on some contract renewals in the Management Services segment.

As a result of lower than expected first half operating performance for the North America operations of Management Services, including pricing pressure on contract renewals and a longer than anticipated sales cycle for some of the new growth areas, future near-term cash flows are now estimated to be lower than originally projected. Accordingly, the Company performed a goodwill impairment review as of June 30, 2013. As a result, a non-cash, pre-tax goodwill impairment charge of $98 million was recorded in the second quarter.

Earnings per diluted share for the quarter, on a Generally Accepted Accounting Principles (GAAP) basis was a loss of $0.05 per share compared to income of $0.50 per share for the prior year. GAAP earnings per share include a non-cash, pre-tax goodwill impairment charge of $0.40 per share; a restructuring charge of $0.07 per share; and a loss from discontinued operations of $0.10 per share.

Adjusted earnings per diluted share from continuing operations for the quarter were $0.52 per share compared to $0.51 per share for the prior year. Adjusted earnings per share exclude the goodwill impairment charge; restructuring charge; and the loss from discontinued operations. Prior year adjusted earnings per share exclude a $0.02 loss from discontinued operations.

The tax rate on diluted earnings per share declined when compared to the prior year due to the favorable resolution of certain outstanding tax issues in several countries. This had a non-recurring benefit of $0.05 per share this quarter.

Earnings Per Diluted Share Reconciliation*				Q2 2013				Q2 2012
GAAP EPS				($0.05)				$0.50
Loss from discontinued operations				$0.10				$0.02
GAAP EPS from continuing operations				$0.05				$0.51
Restructuring				$0.07				-
Goodwill impairment				$0.40				-
Adjusted EPS from continuing operations				$0.52				$0.51

* The sum of the earnings per share may not equal the totals above due to rounding.

FREE CASH FLOW RESULTS

Free cash flow for the quarter was $124 million, while on a GAAP basis the Company generated $147 million in cash from operations. Free cash flow this quarter is lower than the prior year due to the timing of tax payments and working capital. There was also less of a benefit from the declines in finance receivables and bank reserve account deposits this quarter. Free cash flow on a year-to-date basis was $232 million and the Company generated $279 million in cash from operations on a GAAP basis. During the quarter, the Company used $47 million of cash for dividends and $11 million for restructuring payments. Also during the quarter, the Company retired $375 million of debt that matured in June 2013.

BUSINESS SEGMENT RESULTS

SMB Solutions Group

2Q 2013

Y-O-Y Change

Change ex Currency

Revenue

$597 million

(3%)

(3%)

EBIT

$186 million

(2%)

Within the SMB Solutions Group:

North America Mailing

2Q 2013

Y-O-Y Change

Change ex Currency

Revenue

$433 million

(5%)

(4%)

EBIT

$166 million

(1%)

During the quarter, North America Mailing continued to experience lower rates of decline in recurring revenue streams than in prior quarters and the prior year. The year-over-year rate of revenue decline also slowed due to improving trends in equipment sales in the current year. EBIT margin improved versus the prior year as a result of improved recurring revenue margins and cost reduction initiatives that offset the negative impacts of the lower mix of recurring revenue streams.

International Mailing

2Q 2013

Y-O-Y Change

Change ex Currency

Revenue

$165 million

(1%)

0%

EBIT

$19 million

(11%)

International Mailing revenue benefited from increased sales of Connect+™ mailing systems in Europe. Increased equipment sales and supplies revenue in Asia Pacific also contributed to revenue performance this quarter. EBIT margin was adversely impacted by the equipment sales mix, which had lower margins.

Enterprise Business Solutions Group

2Q 2013

Y-O-Y Change

Change ex Currency

Revenue

$561 million

2%

3%

EBIT

$64 million

(1%)

Within the Enterprise Business Solutions Group:

Worldwide Production Mail

2Q 2013

Y-O-Y Change

Change ex Currency

Revenue

$145 million

18%

18%

EBIT

$14 million

143%

Production Mail revenue benefited from the installation of large production print and inserting equipment orders in North America. Demand for new products and printers resulted in a higher backlog at the end of the quarter. Supplies revenue grew as a result of the increased base of production print installations. EBIT margin improved versus the prior year due to the growth in revenue and cost reduction initiatives. The Company continued to invest in Volly™ but the EBIT impact was partially offset by licensing and services revenue from Australia Post.

Software

2Q 2013

Y-O-Y Change

Change ex Currency

Revenue

$92 million

(8%)

(7%)

EBIT

$16 million

85%

Software revenue declined compared to the prior year due primarily to fewer large dollar licensing deals in North America. In addition, there continued to be weakness in the international markets, in part due to ongoing austerity measures in the public sector. Compared to the first quarter results, revenue improved due to increased sales effectiveness. EBIT margin improved significantly versus the prior year and the prior quarter due to cost reduction initiatives that have resulted in a more variable cost structure.

Management Services

2Q 2013

Y-O-Y Change

Change ex Currency

Revenue

$175 million

(3%)

(3%)

EBIT

$15 million

4%

Management Services results exclude the European businesses, which are now reflected as discontinued operations. Revenue for the quarter declined due to continued pricing pressure on contract renewals. EBIT margin improved compared to the prior year despite the decline in revenue due to lower operating costs associated with ongoing productivity programs.

Mail Services

2Q 2013

Y-O-Y Change

Change ex Currency

Revenue

$119 million

10%

10%

EBIT

$15 million

(46%)

Mail Services revenue benefited from increased transactions associated with the Company’s ecommerce solutions for cross-border package delivery, as well as growth in presort volumes for both Standard mail and First Class mail. EBIT margin was impacted by the ongoing investments and costs related to building out the infrastructure of the Company’s ecommerce offering. Prior year EBIT included a $4 million insurance reimbursement related to the fire at the Company’s Dallas presort facility, which adversely impacted year-over-year comparisons.

Marketing Services

2Q 2013

Y-O-Y Change

Change ex Currency

Revenue

$30 million

(17%)

(17%)

EBIT

$4 million

(44%)

Marketing Services revenue and EBIT declined due to lower fees for certain marketing category contract renewals when compared to the prior year.

2013 GUIDANCE UPDATE

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 2012 Form 10-K Annual Report and other reports filed with the Securities and Exchange Commission.

The Company is updating its 2013 annual guidance from continuing operations to reflect results to-date and the Management Services businesses in discontinued operations in the second half of the year.

The Company now expects annual revenue, excluding the impacts of currency, to be in the range of a 1 percent decline to 2 percent growth when compared to the 2012 pro-forma revenue of $3,983 million, which excludes the revenue of Pitney Bowes Management Services.

The Company now expects GAAP earnings per diluted share from continuing operations to be in the range of $1.07 to $1.22. This guidance includes restructuring charges recorded to date of $0.07 per share and excludes any additional actions that may occur as the Company implements plans to further streamline its operations and reduce costs. The guidance includes a goodwill impairment charge of $0.40 per share related to the Management Services business. This guidance also includes $0.08 per share for costs associated with the debt tender in the first quarter.

Adjusted earnings per diluted share from continuing operations are now expected to be in the range of $1.62 to $1.77.

The Company expects free cash flow to now be in the range of $575 million to $675 million.

OTHER

As a result of signing the definitive agreement for the sale of the North America Management Services business in the third quarter, the Company anticipates recording an after-tax charge in discontinued operations in the range of $0.40 per share to $0.50 per share primarily related to the difference between the Company’s book and tax basis in this business.

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. EDT. 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 provides technology solutions for small, mid-size and large firms that help them connect with customers to build loyalty and grow revenue. Many of the company’s solutions are delivered on open platforms to best organize, analyze and apply both public and proprietary data to two-way customer communications. Pitney Bowes includes direct mail, transactional mail and call center communications in its solution mix along with digital channel messaging for the Web, email and mobile applications.

Pitney Bowes: Every connection is a new opportunity™. www.pb.com.

The Company's financial results are reported in accordance with generally accepted accounting principles (GAAP). The Company uses measures such as adjusted earnings per share, adjusted income from continuing operations and free cash flow to exclude the impact of special items like restructuring charges, tax adjustments, and goodwill and asset write-downs, because, while these are actual Company expenses, they can mask underlying trends associated with our 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.

The use of free cash flow provides investors insight into the amount of cash that management could have available for other discretionary uses. It adjusts GAAP cash from operations for capital expenditures, as well as special items like cash used for restructuring charges, unusual tax payments and contributions to its pension funds. Management uses segment EBIT to measure profitability and performance at the segment level. EBIT is determined by deducting 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. In addition, financial results are 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 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.

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 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: mail volumes; the uncertain economic environment; timely development, market acceptance and regulatory approvals, if needed, of new products; fluctuations in customer demand; changes in postal regulations; interrupted use of key information systems; management of outsourcing arrangements; changes in business portfolio; foreign currency exchange rates; changes in our credit ratings; management of credit risk; changes in interest rates; the financial health of national posts; and other factors beyond our control as more fully outlined in the Company's 2012 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, 2013 and 2012, and consolidated balance sheets at June 30, 2013 and March 31, 2013 are attached.

Pitney Bowes Inc.
Consolidated Statements of Income
(Unaudited)
(Dollars in thousands, except per share data)
						Three months ended June 30,											Six months ended June 30,
							2013					2012						2013					2012
Revenue:
	Equipment sales					$	243,644				$	224,235					$	458,643				$	444,414
	Supplies						72,337					70,522						146,624					146,887
	Software						100,482					104,551						187,494					208,901
	Rentals						136,775					145,497						273,154					285,886
	Financing						115,929					122,948						232,691					249,696
	Support services						163,178					171,254						328,664					344,772
	Business services						325,862					327,350						649,207					655,447
	Total revenue						1,158,207					1,166,357						2,276,477					2,336,003
Costs and expenses:
	Cost of equipment sales						128,426					106,718						237,763					203,634
	Cost of supplies						22,692					20,863						45,954					44,734
	Cost of software						21,435					24,404						42,141					45,497
	Cost of rentals						26,424					31,851						54,179					62,076
	Financing interest expense						19,798					20,642						39,673					41,781
	Cost of support services						104,282					112,123						212,291					227,210
	Cost of business services						248,715					242,010						495,611					485,952
	Selling, general and administrative						376,559					380,656						748,014					779,852
	Research and development						31,501					33,811						64,836					67,884
	Restructuring charges and asset impairments						19,955					(585	)					19,955					(585	)
	Goodwill impairment						97,787					-						97,787					-
	Other interest expense						31,347					30,353						62,086					59,720
	Interest income						(1,302	)				(2,003	)					(3,050	)				(3,736	)
	Other income, net						-					4,372						25,121					1,138
	Total costs and expenses						1,127,619					1,005,215						2,142,361					2,015,157
Income from continuing operations before income taxes							30,588					161,142						134,116					320,846
Provision for income taxes							15,160					53,113						42,899					68,211
Income from continuing operations							15,428					108,029						91,217					252,635
(Loss) income from discontinued operations, net of income tax							(20,067	)				(3,812	)					(23,756	)				14,846
Net (loss) income before attribution of noncontrolling interests							(4,639	)				104,217						67,461					267,481
Less: Preferred stock dividends of subsidiaries attributable
to noncontrolling interests							4,594					4,594						9,188					9,188
Net (loss) income - Pitney Bowes Inc.						$	(9,233	)			$	99,623					$	58,273				$	258,293
Amounts attributable to common stockholders:
	Income from continuing operations					$	10,834				$	103,435					$	82,029				$	243,447
	Loss (income) from discontinued operations						(20,067	)				(3,812	)					(23,756	)				14,846
	Net (loss) income - Pitney Bowes Inc.					$	(9,233	)			$	99,623					$	58,273				$	258,293
Basic earnings per share attributable to common stockholders (1):
	Continuing operations						0.05					0.52						0.41					1.22
	Discontinued operations						(0.10	)				(0.02	)					(0.12	)				0.07
	Net (loss) income - Pitney Bowes Inc.					$	(0.05	)			$	0.50					$	0.29				$	1.29
Diluted earnings per share attributable to common stockholders (1):
	Continuing operations						0.05					0.51						0.41					1.21
	Discontinued operations						(0.10	)				(0.02	)					(0.12	)				0.07
	Net (loss) income - Pitney Bowes Inc.					$	(0.05	)			$	0.50					$	0.29				$	1.29

(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 in thousands, except per share data)
Assets					June 30, 2013						December 31, 2012
Current assets:
	Cash and cash equivalents				$	608,568					$	913,276
	Short-term investments					22,898						36,611
	Accounts receivable, gross					604,068						748,469
	Allowance for doubtful accounts receivable					(15,528	)					(20,219	)
	Accounts receivable, net					588,540						728,250
	Finance receivables					1,158,795						1,213,776
	Allowance for credit losses					(26,277	)					(25,484	)
	Finance receivables, net					1,132,518						1,188,292
	Inventories					141,061						179,678
	Current income taxes					30,578						51,836
	Other current assets and prepayments					158,812						114,184
	Assets held for sale					71,052						-
Total current assets						2,754,027						3,212,127
Property, plant and equipment, net						351,606						385,377
Rental property and equipment, net						230,759						241,192
Finance receivables						960,480						1,041,099
Allowance for credit losses						(9,824	)					(14,610	)
Finance receivables, net						950,656						1,026,489
Investment in leveraged leases						33,606						34,546
Goodwill						2,012,752						2,136,138
Intangible assets, net						143,451						166,214
Non-current income taxes						93,318						94,434
Other assets						563,027						563,374
Total assets					$	7,133,202					$	7,859,891
Liabilities, noncontrolling interests and stockholders' equity
Current liabilities:
	Accounts payable and accrued liabilities				$	1,563,069					$	1,809,226
	Current income taxes					225,208						240,681
	Notes payable and current portion of long-term obligations					-						375,000
	Advance billings					448,129						452,130
	Liabilities held for sale					50,331						-
Total current liabilities						2,286,737						2,877,037
Deferred taxes on income						44,460						69,222
Tax uncertainties and other income tax liabilities						144,260						145,881
Long-term debt						3,654,032						3,642,375
Other non-current liabilities						685,002						718,375
Total liabilities						6,814,491						7,452,890
Noncontrolling interests (Preferred stockholders' equity in subsidiaries)						296,370						296,370
Stockholders' equity:
	Cumulative preferred stock, $50 par value, 4% convertible					4						4
	Cumulative preference stock, no par value, $2.12 convertible					613						648
	Common stock, $1 par value					323,338						323,338
	Additional paid-in-capital					198,938						223,847
	Retained Earnings					4,689,969						4,744,802
	Accumulated other comprehensive loss					(723,523	)					(681,213	)
	Treasury Stock, at cost					(4,466,998	)					(4,500,795	)
Total Pitney Bowes Inc. stockholders' equity						22,341						110,631
Total liabilities, noncontrolling interests and stockholders' equity					$	7,133,202					$	7,859,891

Pitney Bowes Inc.
Revenue and EBIT
Business Segments
June 30, 2013
(Unaudited)
(Dollars in thousands)						Three Months Ended June 30,
							2013						2012					% Change
	Revenue
	North America Mailing					$	432,889						453,484					(5	%)
	International Mailing						164,556						165,480					(1	%)
	Small & Medium Business Solutions						597,445						618,964					(3	%)
	Production Mail						144,986						123,067					18	%
	Software						92,242						99,874					(8	%)
	Management Services						174,708						180,562					(3	%)
	Mail Services						119,058						108,045					10	%
	Marketing Services						29,768						35,845					(17	%)
	Enterprise Business Solutions						560,762						547,393					2	%
	Total revenue					$	1,158,207						1,166,357					(1	%)
	EBIT (1)
	North America Mailing					$	166,363					$	167,870					(1	%)
	International Mailing						19,285						21,758					(11	%)
	Small & Medium Business Solutions						185,648						189,628					(2	%)
	Production Mail						13,617						5,594					143	%
	Software						15,729						8,487					85	%
	Management Services						14,735						14,222					4	%
	Mail Services						15,484						28,464					(46	%)
	Marketing Services						4,181						7,503					(44	%)
	Enterprise Business Solutions						63,746						64,270					(1	%)
	Total EBIT					$	249,394					$	253,898					(2	%)
	Unallocated amounts:
	Interest, net (2)						(49,843	)					(48,992	)
	Corporate and other expenses						(51,221	)					(44,349	)
	Restructuring and asset impairments						(19,955	)					585
	Goodwill impairment						(97,787	)					-
	Income from continuing operations before income taxes					$	30,588					$	161,142

(1)		Earnings before interest and taxes (EBIT) excludes general corporate expenses, restructuring, goodwill and asset impairments.
(2)		Interest, net includes financing interest expense, other interest expense and interest income.

Pitney Bowes Inc.
Revenue and EBIT
Business Segments
June 30, 2013
(Unaudited)
(Dollars in thousands)							Six Months Ended June 30,
								2013						2012					% Change
		Revenue
		North America Mailing					$	863,264						914,789					(6	%)
		International Mailing						332,011						333,494					(0	%)
		Small & Medium Business Solutions						1,195,275						1,248,283					(4	%)
		Production Mail						263,788						238,083					11	%
		Software						172,963						200,201					(14	%)
		Management Services						351,278						360,702					(3	%)
		Mail Services						237,913						222,681					7	%
		Marketing Services						55,260						66,053					(16	%)
		Enterprise Business Solutions						1,081,202						1,087,720					(1	%)
		Total Revenue					$	2,276,477						2,336,003					(3	%)
		EBIT (1)
		North America Mailing					$	320,868					$	346,041					(7	%)
		International Mailing						37,034						41,755					(11	%)
		Small & Medium Business Solutions						357,902						387,796					(8	%)
		Production Mail						16,672						8,373					99	%
		Software						20,619						19,179					8	%
		Management Services						29,097						26,210					11	%
		Mail Services						34,833						62,709					(44	%)
		Marketing Services						6,167						12,320					(50	%)
		Enterprise Business Solutions						107,388						128,791					(17	%)
		Total EBIT					$	465,290					$	516,587					(10	%)
		Unallocated amounts:
		Interest, net (2)						(98,709	)					(97,765	)
		Corporate and other expenses						(114,723	)					(98,561	)
		Restructuring and asset impairments						(19,955	)					585
		Goodwill impairment						(97,787	)					-
		Income from continuing operations before income taxes					$	134,116					$	320,846

(1)		Earnings before interest and taxes (EBIT) excludes general corporate expenses, restructuring, goodwill and asset impairments.
(2)		Interest, net includes financing interest expense, other interest expense and interest income.

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,
						2013				2012							2013				2012
GAAP income from continuing operations
after income taxes, as reported					$	10,834			$	103,435						$	82,029			$	243,447
Restructuring charges and asset impairments						13,493				(912	)						13,493				(912	)
Goodwill impairment						81,638				-							81,638				-
Sale of leveraged lease assets						-				-							-				(12,886	)
Extinguishment of debt						-				-							15,325				-
Income from continuing operations
after income taxes, as adjusted					$	105,965			$	102,523						$	192,485			$	229,649
GAAP diluted earnings per share from
continuing operations, as reported					$	0.05			$	0.51						$	0.41			$	1.21
Restructuring charges and asset impairments						0.07				(0.00	)						0.07				(0.00	)
Goodwill impairment						0.40				-							0.40				-
Sale of leveraged lease						-				-							-				(0.06	)
Extinguishment of debt						-				-							0.08				-
Diluted earnings per share from continuing
operations, as adjusted					$	0.52			$	0.51						$	0.95			$	1.14
GAAP net cash provided by operating activities,
as reported					$	146,875			$	268,452						$	279,035			$	339,832
Capital expenditures						(34,602	)			(38,722	)						(73,441	)			(88,751	)
Restructuring payments						10,980				21,630							27,255				47,875
Pension contribution						-				-							-				95,000
Tax payments on sale of leveraged lease assets						-				15,671							-				84,904
Reserve account deposits						1,138				28,008							(26,189	)			2,334
Extinguishment of debt						-				-							25,121				-
Free cash flow, as adjusted					$	124,391			$	295,039						$	231,781			$	481,194

Note: The sum of the earnings per share amounts may not equal the totals above due to rounding.

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,
							2013			2012							2013			2012
GAAP income from continuing operations
after income taxes, as reported						$	10,834		$	103,435						$	82,029		$	243,447
Restructuring charges and asset impairments							13,493			(912	)						13,493			(912	)
Goodwill impairment							81,638			-							81,638			-
	Sale of leveraged lease assets						-			-							-			(12,886	)
	Extinguishment of debt						-			-							15,325			-
Income from continuing operations
after income taxes, as adjusted							105,965			102,523							192,485			229,649
Provision for income taxes, as adjusted							37,771			53,440							75,306			85,240
Preferred stock dividends of subsidiaries
attributable to noncontrolling interests							4,594			4,594							9,188			9,188
Income from continuing operations, as adjusted							148,330			160,557							276,979			324,077
	Interest expense, net						49,843			48,992							98,709			97,765
Adjusted EBIT							198,173			209,549							375,688			421,842
Depreciation and amortization							56,475			67,237							113,702			131,607
Adjusted EBITDA						$	254,648		$	276,786						$	489,390		$	553,449

Source: Pitney Bowes Inc.

Pitney Bowes Inc.
Editorial
Sheryl Y. Battles, 203-351-6808
VP, Corp. Communications
or
Financial
Charles F. McBride, 203-351-6349
VP, Investor Relations
Website – www.pitneybowes.com