Stock Market Watch

Pitney Bowes – Q4 and Annual Results for 2011

by ·


Pitney Bowes Inc. (NYSE: PBI) today reported fourth quarter and full year 2011 results.

Revenue for the quarter was $1.3 billion, a decline of 6.5 percent compared with the prior year. Currency had no impact on revenue during the quarter. When compared with the fourth quarter 2010, revenue was adversely impacted by lower SMB sales, some deferred large ticket enterprise deals, and continued economic and business uncertainty worldwide. Adjusted earnings per diluted share from continuing operations for the fourth quarter was $0.97 compared with $0.66 for the prior year. Adjusted earnings per share from continuing operations for the quarter included a net benefit of $0.37 per share related to a U.S. income tax settlement. Excluding that tax benefit adjusted earnings per share for the quarter was $0.61. During the quarter, the company and the IRS reached an agreement on the tax treatment of a number of issues, as well as revised tax calculations, related to the IRS examinations of tax years 2005 through 2008. Additionally, during the quarter, the IRS examinations of tax years 2001 through 2007 were concluded, particularly for items related to the company’s former Capital Services business. As a result, in the fourth quarter, the company recorded a net tax benefit of $0.37 per share related to continuing operations, and a benefit of $1.04 per share for amounts related to discontinued operations.

On a Generally Accepted Accounting Principles (GAAP) basis, the company reported earnings per diluted share of $1.28 including the tax benefit in discontinued operations for the fourth quarter, compared with $0.31 per diluted share for the prior year. GAAP earnings per diluted share for the quarter also included a $0.31 per share charge for restructuring costs and asset impairments primarily associated with the company’s Strategic Transformation initiatives. In addition, there was a non-cash $0.41 per share goodwill impairment charge related to the company’s international operations of Pitney Bowes Management Services, because of lower than expected growth, changing print demand, and a weaker economic outlook for European markets.


For the full year, revenue was $5.3 billion, a decline of less than 3 percent when compared with the prior year, and just over a 4 percent decline excluding foreign exchange impacts. Adjusted earnings per diluted share from continuing operations was $2.70 compared with $2.23 for the prior year. Adjusted earnings per diluted share from continuing operations for the year included $0.44 per share related to tax settlements for tax years 2001 through 2008 in the U.S.

More Posts by this author

edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


Tags:

Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

You may also like...