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Pitney Bowes Announces Fourth Quarter and Full Year 2020 Financial Results
"The fourth quarter was a remarkable ending to an extraordinary year,” said
“We have been on a journey to transform the business,” Lautenbach continued. “Even with the tremendous uncertainty in our economy and how the pandemic will play out, we are now poised to enter this next chapter of our transformation, profitable revenue growth. While I am proud of what the team has accomplished, we all recognize there is more work to do and we are ready.”
Fourth Quarter 2020
- Revenue of
$1.0 billion , growth of 24 percent on a reported basis and 23 percent excluding the impact of currency - GAAP EPS of
$0.11 ; Adjusted EPS of$0.13 - EPS reflects
$0.03 in tax benefits primarily related to deferred tax balances in certain international tax jurisdictions. - GAAP cash from operations of
$111 million ; free cash flow of$97 million - The Company reduced debt by
$31 million . - Shipping-related revenues represented 54 percent of total revenue.
- Global Ecommerce revenue exceeded
$500 million for the first time, representing growth of 60 percent over prior year. - Global Ecommerce EBIT dollars and margin improved from prior quarter and over prior year, with positive EBITDA in the quarter.
- Presort Services revenue improved from prior quarter and was flat to prior year.
- SendTech grew revenue, EBIT and EBITDA dollars from prior quarter and over prior year.
- SendTech shipping revenue was
$35 million and grew at a double-digit rate.
Full Year 2020
- Revenue of
$3.6 billion , growth of 11 percent - GAAP EPS loss of
$1.06 ; Adjusted EPS of$0.30 - GAAP cash from operations of
$298 million ; free cash flow of$279 million - The Company ended the year with
$940 million in cash and short term investments. - The Company reduced debt by
$175 million . - Shipping-related revenues represented 50 percent of total revenue.
- Global Ecommerce revenue of
$1.6 billion , representing growth of 41 percent. - Presort Services processed a total of 16.7 billion pieces.
- SendTech shipped 20,000 units of the SendPro Mailstation since launching in April.
Earnings per share results are summarized in the table below:
|
|
Fourth Quarter |
Full Year |
||||||||||||
|
|
2020 |
|
2019 |
2020 |
|
2019 |
||||||||
|
GAAP EPS |
$ |
0.11 |
|
$ |
1.03 |
|
($ |
1.06 |
) |
$ |
1.10 |
|
||
|
Discontinued Operations |
($ |
0.01 |
) |
($ |
0.98 |
) |
($ |
0.06 |
) |
($ |
0.87 |
) |
||
|
GAAP EPS from Continuing Operations |
$ |
0.09 |
|
$ |
0.05 |
|
($ |
1.12 |
) |
$ |
0.23 |
|
||
|
Goodwill Impairment |
|
- |
|
|
- |
|
$ |
1.13 |
|
|
- |
|
||
|
Loss on Extinguishment of Debt |
|
- |
|
$ |
0.03 |
|
$ |
0.16 |
|
$ |
0.03 |
|
||
|
Restructuring Charges and Asset Impairments |
$ |
0.04 |
|
$ |
0.06 |
|
$ |
0.09 |
|
$ |
0.30 |
|
||
|
Tax on Settlement of |
|
- |
|
|
- |
|
$ |
0.07 |
|
|
- |
|
||
|
Loss on Dispositions and Transaction Costs |
|
- |
|
$ |
0.01 |
|
|
- |
|
$ |
0.13 |
|
||
|
Gain on Sale of an |
|
- |
|
|
- |
|
($ |
0.05 |
) |
|
- |
|
||
|
Adjusted EPS |
$ |
0.13 |
|
$ |
0.14 |
|
$ |
0.30 |
|
$ |
0.68 |
|
||
* The sum of the earnings per share may not equal the totals due to rounding.
Business Segment Reporting
The Commerce Services group includes the Global Ecommerce and Presort Services segments. Global Ecommerce facilitates domestic retail and ecommerce shipping solutions, including fulfillment and returns, and global cross-border ecommerce transactions. Presort Services provides sortation services to qualify large volumes of First Class Mail, Marketing Mail, Marketing Mail Flats and Bound Printed Matter for postal workshare discounts.
The Sending Technology Solutions segment offers physical and digital mailing and shipping technology solutions, financing, services, supplies and other applications for small and medium businesses to help simplify and save on the sending, tracking and receiving of letters, parcels and flats.
The sum of the segment results may not equal the totals due to rounding.
Commerce Services
|
|
Fourth Quarter |
||||||||||
|
($ millions) |
|
|
2020 |
|
|
2019 |
|
|
B/(W) Reported |
|
B/(W) Ex Currency |
|
Revenue |
|
|
|
|
|||||||
|
Global Ecommerce |
|
|
|
|
60% |
|
60% |
||||
|
Presort Services |
135 |
|
135 |
|
0% |
|
0% |
||||
|
Commerce Services |
|
|
|
|
42% |
|
42% |
||||
|
|
|
|
|
|
|
|
|
||||
|
EBITDA |
|
|
|
|
|
|
|
||||
|
Global Ecommerce |
|
|
|
|
>100% |
|
|
||||
|
Presort Services |
21 |
|
30 |
|
(30%) |
|
|
||||
|
Commerce Services |
|
|
|
|
(20%) |
|
|
||||
|
|
|
|
|
|
|
|
|
||||
|
EBIT |
|
|
|
|
|
|
|
||||
|
Global Ecommerce |
( |
|
( |
|
19% |
|
|
||||
|
Presort Services |
13 |
|
22 |
|
(42%) |
|
|
||||
|
Commerce Services |
( |
|
|
|
>(100%) |
|
|
||||
Global Ecommerce
Revenue benefited from growth in volumes in Domestic Parcel, Cross Border and Digital Delivery Services. EBIT and EBITDA benefitted from the increased demand and a peak surcharge, offset by higher costs, particularly around postal, transportation and labor.
Presort Services
Revenue was flat to prior year driven by flat First Class revenue, a decline in Marketing Mail and growth in Marketing Mail Flats and Bound Printed Matter. EBIT and EBITDA margins were relatively in line with prior quarters. Compared to prior year, EBIT and EBITDA declined largely due to higher medical claims and increased labor costs as well as Covid-related direct costs.
SendTech Solutions
|
|
Fourth Quarter |
||||||||||
|
($ millions) |
|
|
2020 |
|
|
2019 |
|
|
B/(W) Reported |
|
B/(W) Ex Currency |
|
Revenue |
|
|
|
|
|
|
|
|
1% |
|
0% |
|
EBITDA |
|
|
|
|
|
|
|
|
4% |
|
|
|
EBIT |
|
|
|
|
|
|
|
|
5% |
|
|
Revenue growth over prior year driven by equipment sales and business services, partly offset by declines in support services, supplies and financing revenues. EBIT and EBITDA margins improved from prior year driven largely by lower expenses.
2021 Expectations
The Company expects annual revenue to grow over prior year in the low-to-mid single digit range, making 2021 the fifth consecutive year of constant currency growth. The Company expects adjusted EPS to grow over prior year. The Company also expects lower free cash flow primarily due to the changes in certain working capital items that benefitted 2020 and are not expected to continue at the same level in 2021.
Conference Call and Webcast
Management of
About
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 EBITDA and adjusted EPS to exclude the impact of items like discontinued operations, restructuring charges, gains, losses and costs related to acquisitions and dispositions, asset impairment charges, goodwill impairment charges and other unusual or one-time items. While these are actual Company income or expenses, they can mask underlying trends associated with its business. Such items are often inconsistent in amount and frequency and as such, the non-GAAP measures provide investors greater insight into the 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 is calculated by converting the current period non-
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 cash flows of discontinued operations, capital expenditures, restructuring payments, changes in customer deposits held at the
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 also provides segment EBITDA, which further excludes depreciation and amortization expense for the segment, as an additional useful measure of segment profitability and operational performance. A reconciliation of segment EBIT and EBITDA to net income can be found in the attached financial schedules.
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 the severity, magnitude and duration of the Covid-19 pandemic (Covid-19), including governments' responses to Covid-19, the efficacy and availability of a vaccine, its continuing impact on our operations, employees, the availability and cost of labor and transportation, global supply chain and demand across our and our clients' businesses as well as any deterioration or instability in global macroeconomic conditions. Other factors, which could cause future financial performance to differ materially from expectations, and which may also be exacerbated by Covid-19 or a negative change in the economy, include, without limitation: declining physical mail volumes; changes in postal regulations or operations, or the financial health of posts in the
Note: Consolidated statements of income; revenue, EBIT and EBITDA by business segment; and reconciliations of GAAP to non-GAAP measures for the three months and twelve months ended
| Consolidated Statements of Income (Loss) | |||||||||||||||
| (Unaudited; in thousands, except per share amounts) | |||||||||||||||
| Three months ended |
Twelve months ended |
||||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||
| Revenue: | |||||||||||||||
| Business services |
$ |
666,983 |
|
$ |
467,192 |
|
$ |
2,191,306 |
|
$ |
1,710,801 |
|
|||
| Support services |
|
119,972 |
|
|
123,609 |
|
|
473,292 |
|
|
506,187 |
|
|||
| Financing |
|
80,276 |
|
|
88,051 |
|
|
341,034 |
|
|
368,090 |
|
|||
| Equipment sales |
|
101,200 |
|
|
87,148 |
|
|
314,882 |
|
|
352,104 |
|
|||
| Supplies |
|
41,165 |
|
|
45,026 |
|
|
159,282 |
|
|
187,287 |
|
|||
| Rentals |
|
18,821 |
|
|
20,317 |
|
|
74,279 |
|
|
80,656 |
|
|||
| Total revenue |
|
1,028,417 |
|
|
831,343 |
|
|
3,554,075 |
|
|
3,205,125 |
|
|||
| Costs and expenses: | |||||||||||||||
| Cost of business services |
|
592,137 |
|
|
386,086 |
|
|
1,904,078 |
|
|
1,389,569 |
|
|||
| Cost of support services |
|
35,856 |
|
|
38,847 |
|
|
149,988 |
|
|
162,300 |
|
|||
| Financing interest expense |
|
12,108 |
|
|
11,215 |
|
|
48,162 |
|
|
44,648 |
|
|||
| Cost of equipment sales |
|
71,671 |
|
|
62,116 |
|
|
236,716 |
|
|
244,210 |
|
|||
| Cost of supplies |
|
10,928 |
|
|
12,349 |
|
|
41,679 |
|
|
49,882 |
|
|||
| Cost of rentals |
|
7,145 |
|
|
8,307 |
|
|
25,600 |
|
|
31,530 |
|
|||
| Selling, general and administrative |
|
242,441 |
|
|
246,761 |
|
|
963,323 |
|
|
1,003,989 |
|
|||
| Research and development |
|
9,546 |
|
|
12,837 |
|
|
38,384 |
|
|
51,258 |
|
|||
| Restructuring charges and asset impairments |
|
8,207 |
|
|
12,990 |
|
|
20,712 |
|
|
69,606 |
|
|||
|
|
- |
|
|
- |
|
|
198,169 |
|
|
- |
|
||||
| Interest expense, net |
|
26,249 |
|
|
26,585 |
|
|
105,753 |
|
|
110,910 |
|
|||
| Other components of net pension and postretirement (income) expense |
|
(1,834 |
) |
|
(1,087 |
) |
|
(1,708 |
) |
|
(4,225 |
) |
|||
| Other (income) expense |
|
(1,636 |
) |
|
5,956 |
|
|
8,151 |
|
|
24,306 |
|
|||
| Total costs and expenses |
|
1,012,818 |
|
|
822,962 |
|
|
3,739,007 |
|
|
3,177,983 |
|
|||
| Income (loss) from continuing operations before taxes |
|
15,599 |
|
|
8,381 |
|
|
(184,932 |
) |
|
27,142 |
|
|||
| (Benefit) provision for income taxes |
|
(813 |
) |
|
344 |
|
|
6,727 |
|
|
(13,007 |
) |
|||
| Income (loss) from continuing operations |
|
16,412 |
|
|
8,037 |
|
|
(191,659 |
) |
|
40,149 |
|
|||
| Income from discontinued operations, net of tax |
|
2,467 |
|
|
168,659 |
|
|
10,115 |
|
|
154,460 |
|
|||
| Net income (loss) |
$ |
18,879 |
|
$ |
176,696 |
|
$ |
(181,544 |
) |
$ |
194,609 |
|
|||
| Basic earnings (loss) per share (1): | |||||||||||||||
|
Continuing operations |
$ |
0.10 |
|
$ |
0.05 |
|
$ |
(1.12 |
) |
$ |
0.23 |
|
|||
| Discontinued operations |
|
0.01 |
|
|
0.99 |
|
|
0.06 |
|
|
0.88 |
|
|||
| Net income (loss) |
$ |
0.11 |
|
$ |
1.04 |
|
$ |
(1.06 |
) |
$ |
1.10 |
|
|||
| Diluted earnings (loss) per share (1): | |||||||||||||||
| Continuing operations |
$ |
0.09 |
|
$ |
0.05 |
|
$ |
(1.12 |
) |
$ |
0.23 |
|
|||
| Discontinued operations |
|
0.01 |
|
|
0.98 |
|
|
0.06 |
|
|
0.87 |
|
|||
| Net income (loss) |
$ |
0.11 |
|
$ |
1.03 |
|
$ |
(1.06 |
) |
$ |
1.10 |
|
|||
| Weighted-average shares used in diluted earnings per share |
|
176,835 |
|
|
171,659 |
|
|
171,519 |
|
|
177,449 |
|
|||
|
(1) The sum of the earnings per share amounts may not equal the totals due to rounding. |
|||||||||||||||
| Consolidated Balance Sheets | |||||||
| (Unaudited; in thousands) | |||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents |
$ |
921,450 |
|
$ |
924,442 |
|
|
| Short-term investments |
|
18,974 |
|
|
115,879 |
|
|
| Accounts and other receivables, net |
|
389,240 |
|
|
373,471 |
|
|
| Short-term finance receivables, net |
|
568,050 |
|
|
629,643 |
|
|
| Inventories |
|
65,845 |
|
|
68,251 |
|
|
| Current income taxes |
|
23,219 |
|
|
5,565 |
|
|
| Other current assets and prepayments |
|
120,145 |
|
|
101,601 |
|
|
| Assets of discontinued operations |
|
- |
|
|
17,229 |
|
|
| Total current assets |
|
2,106,923 |
|
|
2,236,081 |
|
|
| Property, plant and equipment, net |
|
391,280 |
|
|
376,177 |
|
|
| Rental property and equipment, net |
|
38,435 |
|
|
41,225 |
|
|
| Long-term finance receivables, net |
|
605,292 |
|
|
625,487 |
|
|
|
|
1,152,285 |
|
|
1,324,179 |
|
||
| Intangible assets, net |
|
159,839 |
|
|
190,640 |
|
|
| Operating lease assets |
|
201,916 |
|
|
200,752 |
|
|
| Noncurrent income taxes |
|
72,653 |
|
|
71,903 |
|
|
| Other assets |
|
489,201 |
|
|
400,456 |
|
|
| Total assets |
$ |
5,217,824 |
|
$ |
5,466,900 |
|
|
| Liabilities and stockholders' equity | |||||||
| Current liabilities: | |||||||
| Accounts payable and accrued liabilities |
$ |
878,303 |
|
$ |
793,690 |
|
|
| Customer deposits at |
|
617,200 |
|
|
591,118 |
|
|
| Current operating lease liabilities |
|
39,182 |
|
|
36,060 |
|
|
| Current portion of long-term debt |
|
216,032 |
|
|
20,108 |
|
|
| Advance billings |
|
114,550 |
|
|
101,920 |
|
|
| Current income taxes |
|
2,880 |
|
|
17,083 |
|
|
| Liabilities of discontinued operations |
|
- |
|
|
9,713 |
|
|
| Total current liabilities |
|
1,868,147 |
|
|
1,569,692 |
|
|
| Long-term debt |
|
2,348,361 |
|
|
2,719,614 |
|
|
| Deferred taxes on income |
|
279,451 |
|
|
274,435 |
|
|
| Tax uncertainties and other income tax liabilities |
|
38,163 |
|
|
38,834 |
|
|
| Noncurrent operating lease liabilities |
|
180,292 |
|
|
177,711 |
|
|
| Other noncurrent liabilities |
|
437,015 |
|
|
400,518 |
|
|
| Total liabilities |
|
5,151,429 |
|
|
5,180,804 |
|
|
| Stockholders' equity: | |||||||
|
Common stock |
|
323,338 |
|
|
323,338 |
|
|
|
Additional paid-in-capital |
|
68,502 |
|
|
98,748 |
|
|
| Retained earnings |
|
5,201,195 |
|
|
5,438,930 |
|
|
| Accumulated other comprehensive loss |
|
(839,131 |
) |
|
(840,143 |
) |
|
|
|
(4,687,509 |
) |
|
(4,734,777 |
) |
||
| Total stockholders' equity |
|
66,395 |
|
|
286,096 |
|
|
| Total liabilities and stockholders' equity |
$ |
5,217,824 |
|
$ |
5,466,900 |
|
|
| Business Segment Revenue | |||||||||||||||||||||
| (Unaudited; in thousands) | |||||||||||||||||||||
|
Three months ended |
|
Twelve months ended |
|||||||||||||||||||
|
2020 |
|
2019 |
|
% Change |
|
2020 |
|
2019 |
|
% Change |
|||||||||||
| Global Ecommerce |
$ |
518,140 |
|
$ |
323,942 |
|
60 |
% |
$ |
1,618,897 |
|
$ |
1,151,510 |
|
41 |
% |
|||||
| Presort Services |
|
134,660 |
|
|
135,120 |
|
- |
|
|
521,212 |
|
|
529,588 |
|
(2 |
%) |
|||||
| Commerce Services |
|
652,800 |
|
|
459,062 |
|
42 |
% |
|
2,140,109 |
|
|
1,681,098 |
|
27 |
% |
|||||
| Sending Technology Solutions |
|
375,617 |
|
|
372,281 |
|
1 |
% |
|
1,413,966 |
|
|
1,524,027 |
|
(7 |
%) |
|||||
| Total revenue - GAAP |
|
1,028,417 |
|
|
831,343 |
|
24 |
% |
|
3,554,075 |
|
|
3,205,125 |
|
11 |
% |
|||||
| Currency impact on revenue |
|
(3,980 |
) |
|
- |
|
|
(1,467 |
) |
|
- |
|
|||||||||
| Revenue, at constant currency |
$ |
1,024,437 |
|
$ |
831,343 |
|
23 |
% |
$ |
3,552,608 |
|
$ |
3,205,125 |
|
11 |
% |
|||||
| Business Segment EBIT & EBITDA | ||||||||||||||||||||||
| (Unaudited; in thousands) | ||||||||||||||||||||||
| Three months ended |
||||||||||||||||||||||
|
2020 |
2019 |
% change | ||||||||||||||||||||
| EBIT (1) | D&A | EBITDA | EBIT (1) | D&A | EBITDA | EBIT | EBITDA | |||||||||||||||
| Global Ecommerce |
$ |
(14,768 |
) |
$ |
17,490 |
$ |
2,722 |
|
$ |
(18,177 |
) |
$ |
17,687 |
$ |
(490 |
) |
19 |
% |
>100% | |||
| Presort Services |
|
13,041 |
|
|
8,107 |
|
21,148 |
|
|
22,478 |
|
|
7,765 |
|
30,243 |
|
(42 |
%) |
(30 |
%) |
||
| Commerce Services |
|
(1,727 |
) |
|
25,597 |
|
23,870 |
|
|
4,301 |
|
|
25,452 |
|
29,753 |
|
>(100%) |
(20 |
%) |
|||
| Sending Technology Solutions |
|
117,656 |
|
|
8,545 |
|
126,201 |
|
|
112,227 |
|
|
9,411 |
|
121,638 |
|
5 |
% |
4 |
% |
||
| Segment total |
$ |
115,929 |
|
$ |
34,142 |
|
150,071 |
|
$ |
116,528 |
|
$ |
34,863 |
|
151,391 |
|
(1 |
%) |
(1 |
%) |
||
| Reconciliation of Segment EBITDA to Net Income: | ||||||||||||||||||||||
| Segment depreciation and amortization |
|
(34,142 |
) |
|
(34,863 |
) |
||||||||||||||||
| Interest, net |
|
(38,357 |
) |
|
(37,800 |
) |
||||||||||||||||
| Unallocated corporate expenses (2) |
|
(53,766 |
) |
|
(51,246 |
) |
||||||||||||||||
| Restructuring charges and asset impairments |
|
(8,207 |
) |
|
(12,990 |
) |
||||||||||||||||
| Loss on debt extinguishment |
|
- |
|
|
(5,956 |
) |
||||||||||||||||
| Transaction costs |
|
- |
|
|
(155 |
) |
||||||||||||||||
| Benefit (provision) for income taxes |
|
813 |
|
|
(344 |
) |
||||||||||||||||
| Income from continuing operations |
|
16,412 |
|
|
8,037 |
|
||||||||||||||||
| Income from discontinued operations, net of tax |
|
2,467 |
|
|
168,659 |
|
||||||||||||||||
| Net income |
$ |
18,879 |
|
$ |
176,696 |
|
||||||||||||||||
| Twelve months ended |
||||||||||||||||||||||
|
2020 |
2019 |
% change | ||||||||||||||||||||
| EBIT (1) | D&A | EBITDA | EBIT (1) | D&A | EBITDA | EBIT | EBITDA | |||||||||||||||
| Global Ecommerce |
$ |
(82,894 |
) |
$ |
69,676 |
$ |
(13,218 |
) |
$ |
(70,146 |
) |
$ |
68,385 |
$ |
(1,761 |
) |
(18 |
%) |
>(100%) | |||
| Presort Services |
|
55,799 |
|
|
31,769 |
|
87,568 |
|
|
70,693 |
|
|
29,440 |
|
100,133 |
|
(21 |
%) |
(13 |
%) |
||
| Commerce Services |
|
(27,095 |
) |
|
101,445 |
|
74,350 |
|
|
547 |
|
|
97,825 |
|
98,372 |
|
>(100%) |
(24 |
%) |
|||
| Sending Technology Solutions |
|
441,085 |
|
|
34,316 |
|
475,401 |
|
|
490,322 |
|
|
39,758 |
|
530,080 |
|
(10 |
%) |
(10 |
%) |
||
| Segment Total |
$ |
413,990 |
|
$ |
135,761 |
|
549,751 |
|
$ |
490,869 |
|
$ |
137,583 |
|
628,452 |
|
(16 |
%) |
(13 |
%) |
||
| Reconciliation of Segment EBITDA to Net (Loss) Income: | ||||||||||||||||||||||
| Segment depreciation and amortization |
|
(135,761 |
) |
|
(137,583 |
) |
||||||||||||||||
| Interest, net |
|
(153,915 |
) |
|
(155,558 |
) |
||||||||||||||||
| Unallocated corporate expenses (2) |
|
(200,406 |
) |
|
(211,529 |
) |
||||||||||||||||
| Restructuring charges and asset impairments |
|
(20,712 |
) |
|
(69,606 |
) |
||||||||||||||||
|
|
(198,169 |
) |
|
- |
|
|||||||||||||||||
| Gain on sale of equity investment |
|
11,908 |
|
|
- |
|
||||||||||||||||
| Loss on debt extinguishment |
|
(36,987 |
) |
|
(6,623 |
) |
||||||||||||||||
| Loss on dispositions and transaction costs |
|
(641 |
) |
|
(20,411 |
) |
||||||||||||||||
| (Provision) benefit for income taxes |
|
(6,727 |
) |
|
13,007 |
|
||||||||||||||||
| (Loss) income from continuing operations |
|
(191,659 |
) |
|
40,149 |
|
||||||||||||||||
| Income from discontinued operations, net of tax |
|
10,115 |
|
|
154,460 |
|
||||||||||||||||
| Net (loss) income |
$ |
(181,544 |
) |
$ |
194,609 |
|
||||||||||||||||
| (1) Segment EBIT excludes interest, taxes, general corporate expenses, restructuring charges, and other items that are not allocated to a particular business segment. |
| (2) Includes corporate depreciation and amortization expense of |
| Reconciliation of Reported Consolidated Results to Adjusted Results | ||||||||||||||||
| (Unaudited; in thousands, except per share amounts) | ||||||||||||||||
|
Three months ended |
Twelve months ended |
|||||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||||
| Reconciliation of reported net income (loss) to adjusted net income, adjusted EBIT and adjusted EBITDA | ||||||||||||||||
| Net income (loss) |
$ |
18,879 |
|
$ |
176,696 |
|
$ |
(181,544 |
) |
$ |
194,609 |
|
||||
| Income from discontinued operations, net of tax |
|
(2,467 |
) |
|
(168,659 |
) |
|
(10,115 |
) |
|
(154,460 |
) |
||||
| Restructuring charges and asset impairments |
|
7,148 |
|
|
10,719 |
|
|
15,641 |
|
|
52,427 |
|
||||
|
|
- |
|
|
- |
|
|
196,600 |
|
|
- |
|
|||||
| Gain on sale of equity investment |
|
- |
|
|
- |
|
|
(8,943 |
) |
|
- |
|
||||
| Tax on surrender of company owned life insurance policies |
|
- |
|
|
- |
|
|
12,229 |
|
|
- |
|
||||
| Loss on debt extinguishment |
|
- |
|
|
4,464 |
|
|
27,777 |
|
|
4,961 |
|
||||
| Loss on dispositions and transaction costs |
|
- |
|
|
999 |
|
|
487 |
|
|
22,313 |
|
||||
| Adjusted net income |
|
23,560 |
|
|
24,219 |
|
|
52,132 |
|
|
119,850 |
|
||||
| Interest, net |
|
38,357 |
|
|
37,800 |
|
|
153,915 |
|
|
155,558 |
|
||||
| Provision for income taxes, as adjusted |
|
246 |
|
|
3,264 |
|
|
7,537 |
|
|
3,933 |
|
||||
| Adjusted EBIT |
|
62,163 |
|
|
65,283 |
|
|
213,584 |
|
|
279,341 |
|
||||
| Depreciation and amortization |
|
40,222 |
|
|
40,628 |
|
|
160,625 |
|
|
159,142 |
|
||||
| Adjusted EBITDA |
$ |
102,385 |
|
$ |
105,911 |
|
$ |
374,209 |
|
$ |
438,483 |
|
||||
| Reconciliation of reported diluted earnings (loss) per share to adjusted diluted earnings per share | ||||||||||||||||
| Diluted earnings (loss) per share |
$ |
0.11 |
|
$ |
1.03 |
|
$ |
(1.06 |
) |
$ |
1.10 |
|
||||
| Diluted earnings per share - discontinued operations |
|
(0.01 |
) |
|
(0.98 |
) |
|
(0.06 |
) |
|
(0.87 |
) |
||||
| Restructuring charges and asset impairments |
|
0.04 |
|
|
0.06 |
|
|
0.09 |
|
|
0.30 |
|
||||
|
|
- |
|
|
- |
|
|
1.13 |
|
|
- |
|
|||||
| Gain on sale of equity investment |
|
- |
|
|
- |
|
|
(0.05 |
) |
|
- |
|
||||
| Tax on settlement of investment securities |
|
- |
|
|
- |
|
|
0.07 |
|
|
- |
|
||||
| Loss on debt extinguishment |
|
- |
|
|
0.03 |
|
|
0.16 |
|
|
0.03 |
|
||||
| Loss on dispositions and transaction costs |
|
- |
|
|
0.01 |
|
|
- |
|
|
0.13 |
|
||||
| Adjusted diluted earnings per share |
$ |
0.13 |
|
$ |
0.14 |
|
$ |
0.30 |
|
$ |
0.68 |
|
||||
| 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 |
$ |
110,777 |
|
$ |
84,479 |
|
$ |
297,887 |
|
$ |
271,961 |
|
||||
| Net cash (provided by) used in operating activities - discontinued operations |
|
(511 |
) |
|
6,587 |
|
|
37,912 |
|
|
(9,272 |
) |
||||
| Capital expenditures |
|
(24,201 |
) |
|
(42,032 |
) |
|
(104,988 |
) |
|
(137,253 |
) |
||||
| Restructuring payments |
|
4,145 |
|
|
8,303 |
|
|
20,014 |
|
|
27,148 |
|
||||
| Change in customer deposits at |
|
6,618 |
|
|
13,216 |
|
|
26,082 |
|
|
16,341 |
|
||||
| Transaction costs paid |
|
- |
|
|
10,463 |
|
|
2,117 |
|
|
19,488 |
|
||||
| Free cash flow |
$ |
96,828 |
|
$ |
81,016 |
|
$ |
279,024 |
|
$ |
188,413 |
|
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20210202005102/en/
Editorial -
Chief Communications Officer
203/351-6785
Financial -
VP, Investor Relations
203/351-7175
Source: