Note: Consolidated statements of income; revenue and EBIT by business segment; and reconciliation of GAAP to non-GAAP measures for the three months and nine months ended September 30, 2017 and 2016, and consolidated balance sheets as of September 30, 2017 and December 31, 2016 are attached.
| Pitney Bowes Inc. | |||||||||||||
| Consolidated Statements of Income | |||||||||||||
| (Unaudited; in thousands, except share and per share amounts) | |||||||||||||
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||
| 2017 | 2016 | 2017 | 2016 | ||||||||||
| Revenue: | |||||||||||||
| Equipment sales | $ | 157,649 | $ | 173,143 | $ | 479,248 | $ | 485,145 | |||||
| Supplies | 58,296 | 61,306 | 188,342 | 198,631 | |||||||||
| Software | 99,600 | 89,087 | 264,131 | 257,760 | |||||||||
| Rentals | 95,901 | 102,747 | 291,770 | 309,706 | |||||||||
| Financing | 81,184 | 87,883 | 250,582 | 276,915 | |||||||||
| Support services | 120,479 | 123,954 | 354,625 | 383,632 | |||||||||
| Business services | 229,711 | 200,911 | 672,133 | 607,717 | |||||||||
| Total revenue | 842,820 | 839,031 | 2,500,831 | 2,519,506 | |||||||||
| Costs and expenses: | |||||||||||||
| Cost of equipment sales | 85,647 | 86,147 | 232,398 | 235,741 | |||||||||
| Cost of supplies | 18,827 | 20,348 | 60,207 | 60,662 | |||||||||
| Cost of software | 25,713 | 25,698 | 75,816 | 79,496 | |||||||||
| Cost of rentals | 20,818 | 16,041 | 63,056 | 54,951 | |||||||||
| Financing interest expense | 12,629 | 12,965 | 38,446 | 41,375 | |||||||||
| Cost of support services | 70,688 | 74,799 | 217,232 | 224,790 | |||||||||
| Cost of business services | 166,984 | 140,989 | 470,890 | 417,357 | |||||||||
| Selling, general and administrative | 304,398 | 300,983 | 908,169 | 916,981 | |||||||||
| Research and development | 32,057 | 28,680 | 96,871 | 89,761 | |||||||||
| Restructuring charges and asset impairments, net | 1,493 | 16,494 | 30,502 | 49,503 | |||||||||
| Interest expense, net | 28,601 | 22,294 | 81,877 | 62,394 | |||||||||
| Total costs and expenses | 767,855 | 745,438 | 2,275,464 | 2,233,011 | |||||||||
| Income before income taxes | 74,965 | 93,593 | 225,367 | 286,495 | |||||||||
| Provision for income taxes | 17,607 | 23,197 | 53,975 | 93,615 | |||||||||
| Income from continuing operations | 57,358 | 70,396 | 171,392 | 192,880 | |||||||||
| Loss from discontinued operations, net of tax | � | (291 | ) | � | (1,951 | ) | |||||||
| Net income | 57,358 | 70,105 | 171,392 | 190,929 | |||||||||
| Less: Preferred stock dividends attributable to noncontrolling interests | � | 4,593 | � | 13,781 | |||||||||
| Net income - Pitney Bowes Inc. | $ | 57,358 | $ | 65,512 | $ | 171,392 | $ | 177,148 | |||||
| Amounts attributable to common stockholders: | |||||||||||||
| Net income from continuing operations | $ | 57,358 | $ | 65,803 | $ | 171,392 | $ | 179,099 | |||||
| Loss from discontinued operations, net of tax | � | (291 | ) | � | (1,951 | ) | |||||||
| Net income - Pitney Bowes Inc. | $ | 57,358 | $ | 65,512 | $ | 171,392 | $ | 177,148 | |||||
| Basic earnings per share attributable to common stockholders (1) : | |||||||||||||
| Continuing operations | $ | 0.31 | $ | 0.35 | $ | 0.92 | $ | 0.95 | |||||
| Discontinued operations | � | � | � | (0.01 | ) | ||||||||
| Net income - Pitney Bowes Inc. | $ | 0.31 | $ | 0.35 | $ | 0.92 | $ | 0.94 | |||||
| Diluted earnings per share attributable to common stockholders (1) : | |||||||||||||
| Continuing operations | $ | 0.31 | $ | 0.35 | $ | 0.92 | $ | 0.94 | |||||
| Discontinued operations | � | � | � | (0.01 | ) | ||||||||
| Net income - Pitney Bowes Inc. | $ | 0.31 | $ | 0.35 | $ | 0.92 | $ | 0.93 | |||||
| Weighted-average shares used in diluted earnings per share | 187,756,543 | 186,682,575 | 187,200,225 | 189,592,489 | |||||||||
|
(1) The sum of the earnings per share amounts may not equal the totals due to rounding. |
