Market Overview

Pitney Bowes Announces Second Quarter 2018 Financial Results

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Pitney Bowes Inc. (NYSE:PBI), a global technology company that provides
commerce solutions in the areas of ecommerce, shipping, mailing, and
data, today announced its financial results for the second quarter 2018.

Quarterly Financial Results:

  • Revenue of $861 million, an increase of 18 percent as reported and 17
    percent at constant currency versus prior year
  • GAAP EPS of $0.26; Adjusted EPS of $0.26
  • GAAP cash from operations of $92 million; free cash flow of $30 million
  • The Company is reaffirming its prior 2018 annual guidance

Transaction Closed and Debt Management:

  • On July 2, 2018, the Company completed the sale of DMT Production Mail
    and supporting software. As a result, these operations have been
    classified as discontinued operations and prior period amounts have
    been recast to conform to this presentation.
  • On July 3, 2018, the Company announced the early redemption of $300
    million of notes due March 2019. The notes will be redeemed on August
    2, 2018.

"Our second quarter financial results demonstrate the continued progress
we are making to move our Company to sustained growth," said Marc B.
Lautenbach, President and CEO, Pitney Bowes. "We generated revenue
growth for the fourth consecutive quarter and also grew EBIT dollars.
The revenue growth was driven largely by our Commerce Services business,
which contributed more than 40 percent of our total revenue. Our
Software business also performed well driven by a strong contribution
from our indirect and direct channels. I am pleased with the progress we
are making to transform our Company."

Second Quarter 2018 Results

Revenue totaled $861 million, which was an increase of 18 percent as
reported and 17 percent at constant currency versus prior year.

Commerce Services revenue grew 70 percent as reported and 69 percent at
constant currency. Small and Medium Business (SMB) Solutions revenue
declined 7 percent as reported and 8 percent at constant currency.
Software Solutions revenue increased 13 percent as reported and 12
percent at constant currency.

GAAP earnings per diluted share (GAAP EPS) were $0.26, which included
$0.05 for restructuring charges, a net benefit of $0.03 primarily
related to further interpretation of the 2017 Tax Legislation and $0.01
from discontinued operations. Adjusted earnings per diluted share
(Adjusted EPS) were $0.26.

The Company's earnings per share results for the second quarter are
summarized in the table below:

     
Second Quarter*
        2018   2017
GAAP EPS $0.26   $0.26
Discontinued operations       ($0.01)   ($0.04)
GAAP EPS from continuing operations $0.25 $0.22

Restructuring charges and asset impairments, net

$0.05 $0.09
Tax adjustments, net ($0.03) -
Gain on sale of technology       -   ($0.03)
Adjusted EPS $0.26 $0.28
 

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

GAAP Cash from Operations and Free Cash Flow Results

GAAP cash from operations during the quarter was $92 million and free
cash flow was $30 million. Compared to the prior year, free cash flow
increased by $22 million largely due to the timing of accounts payable
and accrued liabilities, as well as lower tax payments and was partly
offset by higher capital expenditures along with the timing of other
working capital requirements.

The Company used cash to return $35 million in dividends to shareholders
and to pay $12 million for restructuring payments.

Status of Divestiture

On July 2, 2018, the Company completed the sale of DMT Production Mail
and supporting software to Platinum Equity, other than in certain
non-U.S. jurisdictions, which are expected to close in the third and
fourth quarters, subject to local regulatory requirements.

The Company has received $316 million in proceeds to-date with the
remaining balance of approximately $24 million expected to be received
in the second half of 2018, subject to certain adjustments.

As a result of the sale, the DMT Production Mail and supporting software
operations have been classified as discontinued operations and prior
period amounts have been reclassified to conform to this presentation.

Second Quarter 2018 Business Segment Reporting

The business reporting groups reflect how the Company manages these
groups and the clients served in each market.

The Commerce Services group includes the Global Ecommerce and Presort
Services segments. Global Ecommerce facilitates global cross-border
ecommerce transactions and domestic retail and ecommerce shipping
solutions, including fulfillment and returns.
Presort Services
provides sortation services to qualify large mail volumes for postal
worksharing discounts.

The SMB Solutions group offers mailing and office shipping solutions,
financing, services, and supplies for small and medium businesses to
help simplify and save on the sending, tracking and receiving of
letters, parcels and flats.
This group includes the North America
Mailing and International Mailing segments.

Software Solutions provide customer engagement, customer information,
location intelligence software and data.

The results for each segment within the group may not equal the
subtotals for the group due to rounding.

         

Commerce Services

($ millions) Second Quarter
Revenue

2018

   

2017

   

Y/Y

Reported

Y/Y

Ex Currency

Global Ecommerce $239 $95 153% 152%
Presort Services

123

118

4%

4%

Commerce Services $362 $213 70% 69%
 
EBIT
Global Ecommerce $(6) $(4) (49%)
Presort Services

13

19

(35%)

Commerce Services $7 $15 (57%)
 
EBITDA
Global Ecommerce $9 $3 200%
Presort Services

19

26

(27%)

Commerce Services $29 $29 (2%)
 

Global Ecommerce

Results for 2018 include a full quarter of Newgistics. On a proforma
basis, Newgistics delivered 10 percent revenue growth, which was driven
by strong performance in both parcel and fulfillment revenue. Excluding
Newgistics, the segment continued to generate double-digit revenue
growth, which was driven by strong performance in domestic shipping
volumes.

The EBIT loss was driven primarily by investments in market growth
opportunities, operational excellence initiatives and higher
transportation and labor costs, as well as the amortization of
acquisition-related intangible assets. EBITDA improved from prior year
as a result of the higher revenue.

Presort Services

Revenue growth was driven by higher volumes of First Class mail but
partly offset by lower Standard Class mail volumes processed. Revenue
was also impacted by lower revenue per piece, in part driven by higher
volumes of mail processed from larger clients. EBIT and EBITDA margin
declined from prior year primarily due to higher labor and
transportation costs along with the lower revenue per piece.

     

SMB Solutions

($ millions) Second Quarter
Revenue

2018

   

2017

   

Y/Y

Reported

   

Y/Y

Ex Currency

North America Mailing $315 $341 (8%) (8%)
International Mailing

93

95

(2%)

(7%)

SMB Solutions $408 $436 (7%) (8%)
 
EBIT
North America Mailing $115 $121 (5%)
International Mailing

13

14

(6%)

SMB Solutions $128 $135 (5%)
 
EBITDA
North America Mailing $133 $137 (3%)
International Mailing

17

18

(5%)

SMB Solutions $150 $156 (4%)
 

North America Mailing

Revenue declined in equipment sales and recurring revenue streams but
was partially offset by growth in services. Equipment sales declined as
a result of weaker sales execution primarily in the top of the line and
a lower backlog entering the quarter compared to prior year. Recurring
revenue streams declined largely around financing, supplies and rentals,
partially offset by growth in business and support services. EBIT and
EBITDA margins were higher than prior year due to lower expenses.

International Mailing

Equipment sales and recurring revenue streams both contributed to the
revenue decline. The equipment sales decline was driven by weakness in
the UK and Italy, which was partially offset by growth in Germany. EBIT
and EBITDA margins decreased versus prior year primarily driven by lower
gross margins due to the mix of products sold, but partially offset by
lower expenses.

     

Software Solutions

($ millions) Second Quarter

2018

   

2017

   

Y/Y

Reported

   

Y/Y

Ex Currency

Revenue $92 $81 13% 12%
EBIT $18 $5 262%
EBITDA $21 $7 182%
 

Software Solutions

Revenue increased from prior year driven by growth in Data, Customer
Information Management and Location Intelligence, in part from the
implementation of the new revenue recognition standard (ASC 606). EBIT
and EBITDA margins increased from prior year largely driven by the
higher revenue and lower expenses.

2018 Guidance

The Company is reaffirming its prior annual guidance for 2018.

  • Revenue, on a constant currency basis, to be in the range of 11
    percent to 15 percent growth, when compared to 2017.
  • Adjusted EPS to be in the range of $1.15 to $1.30.
  • Free cash flow to be in the range of $300 million to $350 million.

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 2017
Form 10-K Annual Report and other reports filed with the Securities and
Exchange Commission. This guidance excludes any unusual items that may
occur or additional portfolio or restructuring actions, not specifically
identified, as the Company implements plans to further streamline its
operations and reduce costs. Revenue guidance is provided on a constant
currency basis. The Company cannot reasonably predict the impact that
future changes in currency exchange rates will have on revenue and net
income. Additionally, the Company cannot provide GAAP EPS and GAAP cash
from operations guidance due to the uncertainty of future potential
restructurings, goodwill and asset write-downs, unusual tax settlements
or payments and special contributions to its pension funds,
acquisitions, divestitures and other potential adjustments, which could
(individually or in the aggregate) have a material impact on the
Company's performance. The Company's guidance is based on an assumption
that the global economy and foreign exchange markets in 2018 will not
change significantly. The Company's guidance also includes changes in
accounting standards implemented at the beginning of the year.

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. ET. 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.pitneybowes.com.

About Pitney Bowes

Pitney Bowes (NYSE:PBI) is a global technology company providing
commerce solutions that power billions of transactions. Clients around
the world, including 90 percent of the Fortune 500, rely on the accuracy
and precision delivered by Pitney Bowes solutions, analytics, and APIs
in the areas of ecommerce fulfillment, shipping and returns;
cross-border ecommerce; presort services; office mailing and shipping;
location data; and software. For nearly 100 years Pitney Bowes has been
innovating and delivering technologies that remove the complexity of
getting commerce transactions precisely right. For additional
information visit Pitney Bowes, the Craftsmen of Commerce, at www.pitneybowes.com.

Use of Non-GAAP Measures

The Company's financial results are reported in accordance with
generally accepted accounting principles (GAAP); however, in its
disclosures the Company uses certain non-GAAP measures, such as adjusted
earnings before interest and taxes (EBIT), adjusted earnings before
interest, taxes, depreciation and amortization (EBITDA), adjusted
earnings per share (EPS), revenue growth on a constant currency basis
and free cash flow.

The Company reports measures such as adjusted EBIT, adjusted EPS and
adjusted net income to exclude the impact of special items like
restructuring charges, tax adjustments, goodwill and asset write-downs,
and costs related to dispositions and acquisitions.
While these
are actual Company expenses, they can mask underlying trends associated
with its 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.

In addition, revenue growth is 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 period.
Constant currency is
calculated by converting our current quarter reported results using the
prior year's exchange rate for the comparable quarter.
This
comparison allows an investor insight into the underlying revenue
performance of the business and true operational performance from a
comparable basis to prior period.
A reconciliation of reported
revenue to constant currency revenue can be found in the Company's
attached financial schedules.

The Company reports free cash flow in order to provide investors
insight into the amount of cash that management could have available for
other discretionary uses.
Free cash flow adjusts GAAP cash from
operations for capital expenditures, restructuring payments, unusual tax
settlements, special contributions to the Company's pension fund and
cash used for other special items.
A reconciliation of GAAP cash
from operations to free cash flow can be found in the Company's attached
financial schedules.

Segment EBIT is the primary measure of profitability and operational
performance at the segment level.
Segment EBIT is determined by
deducting from segment revenue 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. The Company has also included
segment EBITDA as a useful measure for profitability and operational
performance, and an additional way to look at the economics of the
segments, especially in light of some of the Company's more recent,
larger acquisitions.
Segment EBITDA further excludes depreciation
and amortization expense for the segment. A reconciliation of segment
EBIT and EBITDA to total net income can be found in the attached
financial schedules.

Pitney Bowes has provided a quantitative reconciliation to GAAP in
supplemental schedules. This information can be found at the Company's
web site
www.pb.com/investorrelations.

This document contains "forward-looking statements" about the
Company's expected or potential future business and financial
performance. Forward-looking statements include, but are not limited to,
statements about its 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: declining physical mail volumes; competitive factors,
including pricing pressures, technological developments, the
introduction of new products and services by competitors, and fuel
prices; our success in developing new products and services, including
digital-based products and services, obtaining regulatory approvals, if
needed, of new products, and the market's acceptance of these new
products and services; our ability to fully utilize the enterprise
business platform in North America, and successfully deploy it in major
international markets without significant disruptions to existing
operations; a breach of security, including a cyberattack or other
comparable event; the continued availability and security of key
information technology systems and the cost to comply with information
security requirements and privacy laws; changes in postal or banking
regulations; changes in, or loss of, our contractual relationships with
the United States Postal Service; the risk of losing large clients in
the Global Ecommerce segment; macroeconomic factors, including global
and regional business conditions that adversely impact customer demand,
foreign currency exchange rates, interest rates and labor conditions;
capital market disruptions or credit rating downgrades that adversely
impact our ability to access capital markets at reasonable costs;
management
of outsourcing arrangements; integrating newly acquired businesses,
including operations and product and service offerings; management of
customer credit risk and other factors beyond its control as more fully
outlined in the Company's 2017 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
months and six months ended June 30, 2018 and 2017, and consolidated
balance sheets as of June 30, 2018 and December 31, 2017 are attached.

             
Pitney Bowes Inc.
Consolidated Statements of Income
(Unaudited; in thousands, except share and per share amounts)
 
 
Three months ended June 30, Six months ended June 30,
2018 2017 2018 2017
Revenue:
Equipment sales $ 105,750 $ 121,384 $ 216,121 $ 245,887
Supplies 55,457 58,639 115,450 119,694
Software 91,702 81,319 167,996 154,165
Rentals 91,809 95,447 186,435 194,754
Financing 76,671 83,653 156,774 169,398
Support services 72,171 72,068 145,194 147,273
Business services   367,876     217,903   754,414     442,422
Total revenue   861,436     730,413   1,742,384     1,473,593
 
Costs and expenses:
Cost of equipment sales 47,106 51,506 93,160 96,122
Cost of supplies 15,738 16,216 32,685 33,068
Cost of software 26,459 23,361 50,514 46,515
Cost of rentals 21,078 21,143 45,132 41,422
Financing interest expense 12,346 12,843 24,571 25,817
Cost of support services 39,609 41,772 82,736 83,421
Cost of business services 293,480 153,063 590,879 303,906
Selling, general and administrative (1) 282,456 283,073 577,894 573,645
Research and development 31,073 30,328 61,395 59,282
Restructuring charges and asset impairments, net 11,503 25,990 12,407 27,639
Other components of net pension and postretirement cost (1) (2,499 ) 1,267 (4,218 ) 2,723
Interest expense, net   29,623     27,600   60,476     53,276
Total costs and expenses   807,972     688,162   1,627,631     1,346,836
 
Income from continuing operations before taxes 53,464 42,251 114,753 126,757
Provision for income taxes   6,458     790   22,721     27,872
Income from continuing operations 47,006 41,461 92,032 98,885
Income from discontinued operations, net of tax   1,208     7,440   9,695     15,149
Net income $ 48,214   $ 48,901 $ 101,727   $ 114,034
 
Basic earnings per share attributable to common stockholders (2):
Continuing operations $ 0.25 $ 0.22 $ 0.49 $ 0.53
Discontinued operations   0.01     0.04   0.05     0.08
Net income $ 0.26   $ 0.26 $ 0.54   $ 0.61
 
Diluted earnings per share attributable to common stockholders (2):
Continuing operations $ 0.25 $ 0.22 $ 0.49 $ 0.53
Discontinued operations   0.01     0.04   0.05     0.08
Net income $ 0.26   $ 0.26 $ 0.54   $ 0.61
 
Weighted-average shares used in diluted earnings per share   188,113,750     187,377,059   188,056,884     186,944,571
(1)  

Effective January 1, 2018, components of net periodic pension and
postretirement costs, other than service costs, are required to be
reported separately. Accordingly, for the three and six months
ended June 30, 2017, $1.3 million and $2.7 million of costs have
been reclassified from selling, general and administrative expense
to other components of net pension and postretirement cost.

 
(2) The sum of the earnings per share amounts may not equal the totals
due to rounding.
 

         
Pitney Bowes Inc.
Consolidated Balance Sheets
(Unaudited; in thousands, except share amounts)
 

Assets

June 30,

2018

December 31,

2017

Current assets:
Cash and cash equivalents $ 689,870 $ 1,009,021
Short-term investments 55,699 48,988
Accounts receivable, net 408,703 427,022
Short-term finance receivables, net 812,055 828,003
Inventories 49,051 40,769
Current income taxes 39,100 58,439
Other current assets and prepayments 102,104 74,589
Assets of discontinued operations   313,356     334,848  
Total current assets 2,469,938 2,821,679
 
Property, plant and equipment, net 398,909 373,503
Rental property and equipment, net 180,585 183,956
Long-term finance receivables, net 597,302 652,087
Goodwill 1,767,848 1,774,645
Intangible assets, net 249,125 272,186
Noncurrent income taxes 54,099 59,909
Other assets   528,945     540,750  
Total assets $ 6,246,751   $ 6,678,715  
 

Liabilities and stockholders' equity

Current liabilities:
Accounts payable and accrued liabilities $ 1,349,344 $ 1,450,149
Current income taxes 5,686 8,823
Current portion of long-term debt 334,999 271,057
Advance billings 237,709 257,766
Liabilities of discontinued operations   84,219     72,808  
Total current liabilities 2,011,957 2,060,603
 
Deferred taxes on income 234,190 234,643
Tax uncertainties and other income tax liabilities 105,803 116,551
Long-term debt 3,237,810 3,559,278
Other noncurrent liabilities   461,074     519,079  
Total liabilities   6,050,834     6,490,154  
 
Stockholders' equity:
Cumulative preferred stock, $50 par value, 4% convertible 1 1
Cumulative preference stock, no par value, $2.12 convertible 415 441
Common stock, $1 par value 323,338 323,338
Additional paid-in-capital 122,732 138,367
Retained earnings 5,248,991 5,229,584
Accumulated other comprehensive loss (810,251 ) (792,173 )
Treasury stock, at cost   (4,689,309 )   (4,710,997 )
Total stockholders' equity   195,917     188,561  
Total liabilities and stockholders' equity $ 6,246,751   $ 6,678,715  
 

                 
Pitney Bowes Inc.

Business Segments

(Unaudited; in thousands)

 
Three months ended June 30, Six months ended June 30,
2018 2017 % Change 2018 2017 % Change
REVENUE
Global Ecommerce $ 239,100 $ 94,506 >100% $ 485,690 $ 182,658 >100%
Presort Services   122,730     118,452   4 %   257,188     251,129   2 %
Commerce Services   361,830     212,958   70 %   742,878     433,787   71 %
 
North America Mailing 314,546 340,949 (8 %) 640,115 696,902 (8 %)
International Mailing   93,358     95,425   (2 %)   191,395     188,624   1 %
Small & Medium Business Solutions   407,904     436,374   (7 %)   831,510     885,526   (6 %)
 
Software Solutions   91,702     81,081   13 %   167,996     154,280   9 %
Total revenue $ 861,436   $ 730,413   18 % $ 1,742,384   $ 1,473,593   18 %
 
EBIT
Global Ecommerce $ (5,993 ) $ (4,030 ) (49 %) $ (13,704 ) $ (8,300 ) (65 %)
Presort Services   12,565     19,270   (35 %)   39,591     49,987   (21 %)
Commerce Services   6,572     15,240   (57 %)   25,887     41,687   (38 %)
 
North America Mailing 115,193 120,797 (5 %) 234,763 262,041 (10 %)
International Mailing   13,215     14,020   (6 %)   29,246     27,430   7 %
Small & Medium Business Solutions   128,408     134,817   (5 %)   264,009     289,471   (9 %)
 
Software Solutions   18,433     5,091   >100%   20,925     6,397   >100%
Segment EBIT (1) $ 153,413   $ 155,148   (1 %) $ 310,821   $ 337,555   (8 %)
 
EBITDA
Global Ecommerce $ 9,474 $ 3,157 >100% $ 16,193 $ 6,210 >100%
Presort Services   19,188     26,196   (27 %)   52,376     64,111   (18 %)
Commerce Services   28,662     29,353   (2 %)   68,569     70,321   (2 %)
 
North America Mailing 132,569 137,157 (3 %) 268,996 294,427 (9 %)
International Mailing   17,469     18,368   (5 %)   38,021     36,475   4 %
Small & Medium Business Solutions   150,038     155,525   (4 %)   307,017     330,902   (7 %)
 
Software Solutions   20,819     7,381   >100%   25,732     10,775   >100%
Segment EBITDA (2) $ 199,519   $ 192,259   4 % $ 401,318   $ 411,998   (3 %)
 
 

Reconciliation of segment EBITDA to
net income

 
Segment EBITDA $ 199,519 $ 192,259 $ 401,318 $ 411,998
Less: Segment depreciation and amortization (3)   (46,106 )   (37,111 )   (90,497 )   (74,443 )
Segment EBIT 153,413 155,148 310,821 337,555
Corporate expenses   (46,477 )   (52,549 )   (97,561 )   (110,151 )
Adjusted EBIT 106,936 102,599 213,260 227,404
Interest, net (4) (41,969 ) (40,443 ) (85,047 ) (79,093 )
Restructuring charges and asset impairments, net (11,503 ) (25,990 ) (12,407 ) (27,639 )
Gain on sale of technology - 6,085 - 6,085
Transaction costs - - (1,053 ) -
Provision for income taxes   (6,458 )   (790 )   (22,721 )   (27,872 )
Income from continuing operations 47,006 41,461 92,032 98,885
Income from discontinued operations, net of tax   1,208     7,440     9,695     15,149  
Net income $ 48,214   $ 48,901   $ 101,727   $ 114,034  
(1)   Segment EBIT excludes interest, taxes, general corporate expenses,
restructuring charges, and other items that are not allocated to a
particular business segment.
(2) Segment EBITDA is calculated as Segment EBIT plus segment
depreciation and amortization expense.
(3) Includes depreciation and amortization expense of reporting segments
only. Does not include corporate depreciation and amortization
expense.
(4) Includes financing interest expense and interest expense, net.
 

               
Pitney Bowes Inc.
Reconciliation of Reported Consolidated Results to Adjusted
Results
(Unaudited; in thousands, except per share amounts)
 
 

Three months ended
June 30,

Six months ended
June 30,

2018 2017 Y/Y Chg. 2018 2017 Y/Y Chg.
 
Reconciliation of reported revenue to revenue excluding
currency
Revenue, as reported $ 861,436 $ 730,413 $ 1,742,384 $ 1,473,593
Favorable impact on revenue due to currency   (7,683 )   -       (23,609 )   -    
Revenue, excluding currency $ 853,753   $ 730,413   17 % $ 1,718,775   $ 1,473,593   17 %
 
 
Reconciliation of reported net income to adjusted net income
Net income $ 48,214 $ 48,901 $ 101,727 $ 114,034
Income from discontinued operations, net of tax (1,208 ) (7,440 ) (9,695 ) (15,149 )
Restructuring charges and asset impairments, net 8,461 17,398 9,132 18,435
Tax legislation (5,980 ) - (5,980 ) -
Transaction costs - - 786 -
Gain on sale of technology   -     (5,605 )   -     (5,605 )
Net income, as adjusted $ 49,487   $ 53,254   $ 95,970   $ 111,715  
 
 
Reconciliation of reported diluted earnings per share to
adjusted diluted earnings per share
Diluted earnings per share $ 0.26 $ 0.26 $ 0.54 $ 0.61
Income from discontinued operations, net of tax (0.01 ) (0.04 ) (0.05 ) (0.08 )
Restructuring charges and asset impairments, net 0.05 0.09 0.05 0.10
Tax legislation (0.03 ) - (0.03 ) -
Transaction costs - - - -
Gain on sale of technology   -     (0.03 )   -     (0.03 )
Diluted earnings per share, as adjusted $ 0.26   $ 0.28   $ 0.51   $ 0.60  
 
Note: The sum of the earnings per share amounts may not equal
the totals due to rounding.
 
 
Reconciliation of reported net cash from operating activities
to free cash flow
Net cash provided by operating activities $ 92,362 $ 30,641 $ 175,034 $ 184,647
Net cash provided by operating activities - discontinued operations (16,916 ) (10,248 ) (41,772 ) (14,096 )
Capital expenditures (57,962 ) (40,140 ) (100,022 ) (75,844 )
Restructuring payments 11,943 5,667 27,528 17,651
Reserve account deposits (695 ) 21,860 5,959 2,514
Transaction costs paid   1,444     -     4,037     -  
Free cash flow $ 30,176   $ 7,780   $ 70,764   $ 114,872  

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