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$PBI 1Q15 10-Q: Total revenues were down 5% YoverY at $890MM and net income was up 81% YoverY at $80MM. YoverY SG&A expense was down 10% to $315MM. As a percentage of revenue, SG&A expense declined to 35.3% vs. 37.5% in 1Q14, primarily due to lower costs.
$PBI announced the acquisition of the presort operations of Miller’s Presort in Cleveland. This acquisition expands Pitney Bowes Presort Services’ national network of more than 35 operating centers and enables the company to help high-volume mailers optimize their postage spend and manage complex industry regulations.
$PBI announced a strategic relationship with ConnectShip | iShip to make Pitney Bowes Complete Shipping APIs for USPS postage available on ConnectShip l iShip’s multi-carrier shipping platform. ConnectShip l iShip will be able to integrate the APIs into the shipping and logistics solutions it provides to mid-size and enterprise customers.
$PBI announced that Mark Shearer, EVP and President, SMB Solutions, is retiring in 1Q18. Jason Dies will succeed Shearer in these roles. Meanwhile, Grant Miller, previously COO of Document Messaging Technologies business, will succeed Dies as President of DMT.
$PBI, which provides innovative solutions to power commerce, has signed a definitive agreement to acquire Newgistics, a Texas-based provider of parcel delivery solutions. As per the deal, Pitney Bowes will buy all shares of the privately held company for approx. $475MM. The transaction is expected to close by late third or early fourth quarter.
Ecommerce solutions provider $PBI has joined hands with digital marketing agency NMPi to strengthen its global ecommerce offering. The partnership will help the company enhance its consumer marketing solutions such as international paid-search campaigns, display advertising and social media advertising.
E-commerce solutions provider $PBI said Steven J Green, VP of Finance and Chief Accounting Officer, is retiring, effective August 4, 2017. Joseph R Catapano will replace Green as VP and Chief Accounting Officer. He will report to CFO Stanley J Sutula. Catapano joined Pitney in 1997 and held various senior executive positions in finance.
$PBI plans to open new Operations Center in Dublin that will house a 3-year multi-million euro R&D project focused on developing a next generation e-commerce and payments platform for global brands. This will create about 100 new jobs for technical support, customer support and e-commerce R&D professionals in the region over the next few years.
For 4Q16, $PBI’s Digital Commerce Solutions segment revenue declined 2% on a reported basis and grew 1% on a constant currency basis. Enterprise Business Solutions revenue declined 5%. Small and Medium Business (SMB) Solutions revenue declined 7%.
In 4Q16, $PBI’s software revenue fell short of expectations mostly on lower license sales in the last few weeks of the quarter. Given the high margin nature of this revenue, the shortfall significantly impacted earnings. Three large deals worth $17MM, along with a few smaller deals, did not get finalized in the last few weeks of 4Q16 as expected.
For full year 2017, $PBI expects revenue, on a constant currency basis, to be in the range of a 2% decline to 1% growth when compared to 2016. Adjusted EPS is expected to be $1.70-1.85 compared to the original range of $1.80-1.95. Free cash flow is expected to be $400-460MM compared to the original range of $415-485MM.
Technology solutions provider $PBI reported a net loss of $81.8MM or $0.44 per share in 4Q16 versus a net profit of $86.2MM or $0.44 per share in 4Q15. 4Q16 results included a goodwill impairment charge, restructuring and asset impairment charges, preferred stock redemption and loss on dispositions. Revenue was $887MM, down 5% versus last year.
$PBI has joined Hortonworks Partnerworks in the Modern Data Solutions partner program to enhance data management and analytics that will help clients leverage the power of a Big Data platform. Clients will have access to data quality, advanced geospatial foundation and geo-enrichment capabilities resulting in faster, more scalable business insight.
$PBI named Stanley J. Sutula III as its EVP and CFO, effective Feb. 1, 2017, succeeding Michael Monahan, who will be serving as COO with expanded responsibilities. Mr. Sutula will lead the company's global financial team and investor relations and will report to Marc B. Lautenbach, President and CEO.
$PBI appointed Chris Johnson as VP, Global Financial Services (GFS). This position is effective immediately and will report in to Michael Monahan, EVP, COO and CFO. Johnson is currently VP of Payments and Shipping Finance for the company's Global Ecommerce segment and will continue to direct these efforts as part of his expanded position.
$PBI commented the company hasn't changed its outlook on ERP with respects to the benefits it should get. In 2016, thus far, the company is ahead of its guidance of $15-20MM for FY16. In 2017, the company believes it's on track for the $65-80MM range.
$PBI said that on the comparison between third vs. fourth quarter, 4Q is generally its biggest quarter, as a number of its businesses have seasonality around this quarter, especially equipment in SMB. Additionally, e-commerce has a holiday season opportunity to it in the quarter.
In $PBI's North America Mailing, the company expects financing revenue to continue to improve from present levels, as a result of financing fees normalizing. In Enterprise Business Solutions, segment revenue grew 2% in constant currency in 3Q16, while revenue grew 4% when adjusting for currency.
In Global Commerce, $PBI's Ecommerce marketplace and retail revenues grew 17% YoverY organically, excluding the impacts of currency in 3Q16. EBITDA margin for this segment also rose 11% in the quarter, driven by revenue growth in synergy savings from the Borderfree integration.
For FY16, $PBI expects revenue, on a constant currency basis, to be in the range of a 1-3% decline when compared to the year ago. Adjusted EPS is expected in the range of $1.75-1.82, and the guidance excludes the YTD charge of $0.22 per share mainly related to restructuring & asset impairments. Free cash flow is expected in the range of $400-450MM.