Pitney Bowes Inc. (PBI) has reported a 3.98 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $65.13 million, or $0.35 a share in the quarter, compared with $62.64 million, or $0.30 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $66.49 million, or $0.36 a share compared with $64.85 million or $0.34 a share, a year ago.
Revenue during the quarter went down marginally by 0.94 percent to $836.64 million from $844.59 million in the previous year period. Gross margin for the quarter contracted 148 basis points over the previous year period to 55.28 percent. Total expenses were 85.39 percent of quarterly revenues, down from 85.91 percent for the same period last year. This has led to an improvement of 52 basis points in operating margin to 14.61 percent.
Operating income for the quarter was $122.22 million, compared with $118.96 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $181.58 million compared with $188.23 million in the prior year period. At the same time, adjusted EBITDA margin contracted 58 basis points in the quarter to 21.70 percent from 22.29 percent in the last year period.
"We turned in a solid first quarter performance, driven by double-digit growth in Global Ecommerce, growth in both Production Mail and Presort Services businesses, and slight growth in our Software Solutions business," said Marc B. Lautenbach, President and CEO, Pitney Bowes. "In addition, North America Mailing’s revenue rate of decline improved compared to prior quarters, driven by growth in equipment sales, and International Mailing performed similarly year-to-year compared to the prior quarter. In many ways, our results in the first quarter are what we envisioned and expected from the long-term growth initiatives and strategic investments we have been putting in place over the past four years. We are off to a good start and remain committed to meeting our financial objectives for the year."
For financial year 2017, the company projects diluted earnings per share to be in the range of $1.70 to $1.85 on adjusted basis.
Working capital turns negative
Working capital of Pitney Bowes Inc. has turned negative to $215.31 million on Mar. 31, 2017 from positive $249.08 million on Mar. 31, 2016. Current ratio was at 0.91 as on Mar. 31, 2017, down from 1.13 on Mar. 31, 2016.
Days sales outstanding went down to 143 days for the quarter compared with 146 days for the same period last year.
Days inventory outstanding has decreased to 14 days for the quarter compared with 24 days for the previous year period.
Debt moves up
Pitney Bowes Inc. has witnessed an increase in total debt over the last one year. It stood at $3,284.31 million as on Mar. 31, 2017, up 7.86 percent or $239.37 million from $3,044.94 million on Mar. 31, 2016. Total debt was 57.15 percent of total assets as on Mar. 31, 2017, compared with 50.70 percent on Mar. 31, 2016. Interest coverage ratio deteriorated to 4.76 for the quarter from 6.16 for the same period last year.
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