Pitney Bowes Announces Full Year And Fourth Quarter 2019 Financial Results; 2020 Guidance

STAMFORD, Conn.--(BUSINESS WIRE)--February 4, 2020--Pitney Bowes Inc. (NYSE: PBI), a global technology company that provides commerce solutions in the areas of ecommerce, shipping, mailing and financial services, today announced its financial results for the full year and fourth quarter 2019.

Full Year 2019:

• Revenue of $3.2 billion, flat compared to prior year; an increase of 2 percent when adjusted for both the impact of currency and market exits
• GAAP EPS of $1.10; Adjusted EPS of $0.68
• GAAP cash from operations of $252 million; free cash flow of $169 million

Quarterly Results:

• Revenue of $831 million, a decrease of 3 percent; a decrease of 2 percent when adjusted for both the impact of currency and market exits
• GAAP EPS of $1.03; Adjusted EPS of $0.14
• GAAP cash from operations of $70 million; free cash flow of $66 million

“2019 was another important step forward in transforming our Company,” said Marc B. Lautenbach, President and CEO, Pitney Bowes. “We delivered our third consecutive year of revenue growth on a constant currency basis. We substantially realigned our business and our product portfolio, strengthened our balance sheet, and set ourselves up to drive profitable revenue growth going forward. Importantly, over the last two years, we have reduced our debt by over $1 billion, while maintaining significant investment in the business.

“In 2020, Pitney Bowes enters its 100^th year, a noteworthy accomplishment few can claim,” Lautenbach added. “Our transformation continues to build on our three logical core adjacencies of shipping and mail along with the financing of mission-critical assets for our clients.”

Ransomware Attack Update:

Beginning on October 12, 2019, the Company was affected by a ransomware attack that temporarily disrupted customer access to some services. The Company has seen no evidence that customer or employee data was improperly accessed.

• The Company estimates fourth quarter and full year revenue was adversely impacted by approximately $18 million, EPS by approximately $0.08 per share and Free Cash Flow by approximately $29 million, primarily as a result of the business interruption and incremental costs related to this attack.
• The Company has insurance and expects a portion of any profit impact, including the profit associated with any loss of revenue, to ultimately be covered by insurance. Insurance proceeds will be recorded when there is a high degree of certainty regarding the amount of insurance proceeds to be received.

Debt Management and Software Solutions Sale:

In the fourth quarter, the Company:

• Replaced its existing revolving credit facility with a new five-year, $500 million revolving credit facility and secured a new five-year Term Loan A for $400 million.
• Repaid the $150 million term loan due in November 2019, the balance of the $300 million term loan due in December 2020 and redeemed its $300 million notes due in September 2020.
• Obtained and allocated lender commitments for a new $650 million five-year Term Loan B which will be used to prepay future near-term bond maturities.
• Completed the sale of its Software Solutions business to Syncsort for approximately $700 million in cash, with the exception of its software and data business in Australia, which closed in 2020.

Full Year 2019 Results

Revenue totaled $3.2 billion, which was flat versus prior year. Revenue increased 2 percent when adjusted for both the impact of currency and the January 2019 sale of direct operations in 6 smaller European markets (market exits).

Commerce Services revenue grew 9 percent over prior year and 10 percent when adjusted for the impact of currency. Sending Technology Solutions (SendTech Solutions) revenue declined 9 percent and 8 percent when adjusted for the impact of currency. SendTech Solutions revenue declined 6 percent when adjusted for both the impact of currency and market exits.

GAAP earnings per diluted share (GAAP EPS) were $1.10. Adjusted earnings per diluted share (Adjusted EPS) were $0.68.

GAAP cash from operations was $252 million and free cash flow was $169 million. During the year, the Company used cash to reduce debt by $526 million, repurchase $105 million of its common shares, pay $35 million in dividends to its common shareholders and $27 million in restructuring payments.

Fourth Quarter 2019 Results

Revenue totaled $831 million, which was a decrease of 3 percent versus prior year and 2 percent when adjusted for both the impact of currency and market exits.

Commerce Services revenue grew 5 percent over prior year. SendTech Solutions revenue declined 11 percent from prior year and 9 percent when adjusted for both the impact of currency and market exits.

GAAP earnings per diluted share were $1.03. Adjusted earnings per diluted share were $0.14.

GAAP cash from operations during the quarter was $70 million and free cash flow was $66 million. Compared to prior year, the decline in free cash flow was driven largely by a change in working capital, the impact of the ransomware attack and lower net income. During the quarter, the Company reduced debt by $329 million, paid $9 million in dividends to its common shareholders and made $8 million in restructuring payments.

Earnings per share results for the fourth quarter and full year are summarized in the table below:

	Fourth Quarter								Full Year
		2019				2018				2019				2018
GAAP EPS	$	1.03			$	0.26			$	1.10			$	1.28
Discontinued Operations	($	0.98	)			-			($	0.87	)		($	0.32	)
GAAP EPS from Continuing Operations	$	0.05			$	0.26			$	0.23			$	0.96
Restructuring Charges and Asset Impairments, net	$	0.06			$	0.03			$	0.30			$	0.11
Loss on Extinguishment of Debt	$	0.03				-			$	0.03			$	0.03
Loss from Market Exits	$	0.01				-			$	0.11				-
Transaction Costs		-				-			$	0.01			$	0.01
Pension Settlement		-			$	0.12				-			$	0.12
Tax Adjustments, net		-			($	0.11	)			-			($	0.18	)
Adjusted EPS	$	0.14			$	0.31			$	0.68			$	1.05

* The sum of the earnings per share may not equal the totals above 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 and Bound and Packet 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 results for each segment within the group may not equal the subtotals for the group due to rounding.

Commerce Services

($ millions)		Fourth Quarter
Revenue		2019		2018		Y/Y Reported		Y/Y Ex Currency
Global Ecommerce		$324		$304		6%		6%
Presort Services		135		133		1%		1%
Commerce Services		$459		$438		5%		5%
EBITDA
Global Ecommerce		$0		$12		>(100%)
Presort Services		30		24		26%
Commerce Services		$30		$36		(16%)
EBIT
Global Ecommerce		($18)		($4)		>(100%)
Presort Services		22		17		34%
Commerce Services		$4		$12		(65%)

Global Ecommerce

Revenue grew driven by volume growth across all platforms partially offset by business interruption related to the ransomware attack. EBIT and EBITDA margins were largely impacted by investments in market growth opportunities, including engineering, facilities and marketing, higher costs related to the ransomware attack and lower fulfillment margins. The Company estimates that revenue was adversely impacted by approximately $7 million and EBIT and EBITDA by approximately $6 million as result of the ransomware attack.

Presort Services

Revenue grew driven by investments in acquisitions for expansion along with growth in existing volumes across all mail classes partially offset by business interruption related to the ransomware attack. EBIT and EBITDA margins increased compared to prior quarter and prior year driven by lower labor and transportation costs per unit partially offset by lower revenue per piece due to the ransomware attack. The Company estimates that revenue, EBIT and EBITDA were adversely impacted by approximately $4 million as result of the ransomware attack.

SendTech Solutions

($ millions)	Fourth Quarter
			2019				2018		Y/Y Reported		Y/Y Ex Currency			Y/Y Ex Currency & Market Exits*
Revenue	$		372		$		420		(11%)		(11%)			(9%)
EBITDA	$		122		$		155		(21%)
EBIT	$		112		$		147		(23%)

* Excluding $11 million related to market exits and $1 million related to the impacts of currency

SendTech Solutions

Revenue declined driven by lower equipment, financing, support services and supplies along with business interruption related to the ransomware attack partially offset by higher rentals and business services revenue. EBIT and EBITDA margins decreased versus prior year driven by lower equipment sales margins primarily due to higher tariff costs and costs related to the ransomware attack. EBIT and EBITDA margins were also impacted by the overall lower segment revenue. The Company estimates that revenue, EBIT and EBITDA were adversely impacted by approximately $8 million as result of the attack.

2020 Guidance

The Company expects for full year 2020:

• Revenue, on a constant currency basis, is expected to be in the range of 1 percent decline to 1.5 percent growth when compared to 2019.
• Adjusted EPS from continuing operations to be in the range of $0.60 to $0.70 and reflects double-digit EBIT dollar growth over prior year, which will be offset by an expected higher tax rate as compared to prior year.
• Free cash flow to be in the range of $140 million to $170 million. Free cash flow also reflects the planned use of cash for growth in third party leasing initiatives.

This guidance excludes any unusual items that may occur, such as 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. Additionally, the Company does not 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, 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.

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; office mailing and shipping; presort services; and financing. 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 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-U.S. dollar denominated revenue using the prior year’s exchange rate for the comparable quarter. The Company also reported revenue growth excluding the impact of currency and market exits, which excludes the impact of changes in foreign currency exchange rates since the prior period and the revenues associated with the recent market exits in several smaller markets. We believe that excluding the impacts of currency exchange rates and the revenues associated with the recent market exits in several smaller markets provides investors a better understanding of the underlying revenue performance. A reconciliation of reported revenue to constant currency revenue and “constant currency revenue excluding the impact of currency and market exits” can be found in the 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 cash flows of discontinued operations, capital expenditures, restructuring payments, changes in customer deposits held at the Pitney Bowes Bank, transaction costs and other special items. A reconciliation of GAAP cash from operations to free cash flow can be found in the 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, 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.

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; expenses and potential impact on client relationships resulting from the October 2019 ransomware attack that affected the Company's operations; a breach of security, including a future cyber-attack 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, or loss of, our contractual relationships with the U.S. Postal Service or posts in other major markets; changes in postal regulations; competitive factors, including pricing pressures, technological developments and the introduction of new products and services by competitors; the United Kingdom's exit from the European Union (Brexit); our success in developing and marketing new products and services, and obtaining regulatory approvals, if required; changes in banking regulations or the loss of our Industrial Bank charter; changes in labor conditions and transportation costs; macroeconomic factors, including global and regional business conditions that adversely impact customer demand, foreign currency exchange rates and interest rates; changes in global political conditions and international trade policies, including the imposition or expansion of trade tariffs and other factors as more fully outlined in the Company's 2018 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, EBIT and EBITDA by business segment; and reconciliations of GAAP to non-GAAP measures for the three and twelve months ended December 31, 2019 and 2018, and consolidated balance sheets as of December 31, 2019 and December 31, 2018 are attached.

Pitney Bowes Inc.
Consolidated Statements of Income
(Unaudited; in thousands, except share and per share amounts)
		Three months ended December 31,								Year ended December 31,
		2019				2018				2019				2018
Revenue:
	Business services	$	467,192			$	444,965			$	1,710,801			$	1,566,470
	Support services		123,609				135,169				506,187				552,472
	Financing		88,051				100,280				368,090				394,557
	Equipment sales		87,148				106,334				352,104				395,652
	Supplies		45,026				52,451				187,287				218,304
	Rentals		20,317				18,215				80,656				84,067
	Total revenue		831,343				857,414				3,205,125				3,211,522
Costs and expenses:
	Cost of business services		386,086				360,922				1,389,569				1,233,105
	Cost of support services		38,847				44,291				162,300				178,495
	Financing interest expense		11,215				11,269				44,648				44,376
	Cost of equipment sales		62,116				62,534				244,210				236,160
	Cost of supplies		12,349				14,308				49,882				60,960
	Cost of rentals		8,307				6,792				31,530				37,178
	Selling, general and administrative		246,761				243,466				1,003,989				1,002,935
	Research and development		12,837				13,872				51,258				58,523
	Restructuring charges and asset impairments, net		12,990				7,128				69,606				25,899
	Interest expense, net		26,585				26,004				110,910				115,381
	Other components of net pension and postretirement cost		(1,087	)			28,495				(4,225	)			22,425
	Other expense		5,956				-				24,306				7,964
	Total costs and expenses		822,962				819,081				3,177,983				3,023,401
Income from continuing operations before taxes			8,381				38,333				27,142				188,121
Provision (benefit) for income taxes			344				(10,819	)			(13,007	)			6,416
Income from continuing operations			8,037				49,152				40,149				181,705
Income from discontinued operations, net of tax			168,659				817				154,460				60,106
Net income		$	176,696			$	49,969			$	194,609			$	241,811
Basic earnings per share (1):
	Continuing operations	$	0.05			$	0.26			$	0.23			$	0.97
	Discontinued operations		0.99				0.00				0.88				0.32
	Net income	$	1.04			$	0.27			$	1.10			$	1.29
Diluted earnings per share (1):
	Continuing operations	$	0.05			$	0.26			$	0.23			$	0.96
	Discontinued operations		0.98				0.00				0.87				0.32
	Net income	$	1.03			$	0.26			$	1.10			$	1.28
Weighted-average shares used in diluted earnings per share			171,587,745				188,806,855				177,337,161				188,381,647

(1)

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		December 31, 2019				December 31, 2018
Current assets:
	Cash and cash equivalents	$	924,442			$	867,262
	Short-term investments		115,879				59,391
	Accounts and other receivables, net		374,833				371,797
	Short-term finance receivables, net		629,643				653,236
	Inventories		68,251				62,279
	Current income taxes		5,565				5,947
	Other current assets and prepayments		101,601				74,782
	Assets of discontinued operations		17,229				602,823
Total current assets			2,237,443				2,697,517
Property, plant and equipment, net			376,177				398,501
Rental property and equipment, net			41,225				46,228
Long-term finance receivables, net			625,487				635,908
Goodwill			1,324,179				1,332,351
Intangible assets, net			190,640				213,200
Operating lease assets			200,752				152,554
Noncurrent income taxes			71,903				65,001
Other assets			400,456				397,159
Total assets		$	5,468,262			$	5,938,419
Liabilities and stockholders' equity
Current liabilities:
	Accounts payable and accrued liabilities	$	1,386,170			$	1,348,127
	Current operating lease liabilities		36,060				35,208
	Current portion of long-term debt		20,108				199,535
	Advance billings		101,920				116,862
	Current income taxes		17,083				15,284
	Liabilities of discontinued operations		9,713				174,798
Total current liabilities			1,571,054				1,889,814
Long-term debt			2,719,614				3,066,073
Deferred taxes on income			274,435				253,560
Tax uncertainties and other income tax liabilities			38,834				39,548
Noncurrent operating lease liabilities			177,711				125,294
Other noncurrent liabilities			400,518				462,288
Total liabilities			5,182,166				5,836,577
Stockholders' equity:
	Cumulative preferred stock, $50 par value, 4% convertible		-				1
	Cumulative preference stock, no par value, $2.12 convertible		-				396
	Common stock, $1 par value		323,338				323,338
	Additional paid-in-capital		98,748				121,475
	Retained earnings		5,438,930				5,279,682
	Accumulated other comprehensive loss		(840,143	)			(948,961	)
	Treasury stock, at cost		(4,734,777	)			(4,674,089	)
Total stockholders' equity			286,096				101,842
Total liabilities and stockholders' equity		$	5,468,262			$	5,938,419

Pitney Bowes Inc.
Business Segment Revenue
(Unaudited; in thousands)
		Three months ended December 31,									Year ended December 31,
		2019			2018			% Change			2019			2018			% Change
REVENUE
	Global Ecommerce	$	323,942		$	304,327		6	%		$	1,151,510		$	1,022,862		13	%
	Presort Services		135,120			133,273		1	%			529,588			515,795		3	%
	Commerce Services		459,062			437,600		5	%			1,681,098			1,538,657		9	%
	Sending Technology Solutions		372,281			419,814		(11	%)			1,524,027			1,672,865		(9	%)
	Total revenue - GAAP		831,343			857,414		(3	%)			3,205,125			3,211,522		(0	%)
	Currency impact on revenue		1,027			-						19,010			-
	Revenue, at constant currency		832,370			857,414		(3	%)			3,224,135			3,211,522		0	%
	Less revenue from Market Exits		2,114			13,497						11,656			52,844
	Revenue, excluding currency and Market Exits	$	830,256		$	843,917		(2	%)		$	3,212,479		$	3,158,678		2	%

Pitney Bowes Inc.
Business Segment EBIT & EBITDA
(Unaudited; in thousands)
	Three Months Ended December 31,
	2019													2018													% change
	EBIT (1)				D&A			EBITDA						EBIT (1)				D&A			EBITDA						EBIT			EBITDA
Global Ecommerce	$	(18,177	)		$	17,687		$	(490	)				$	(4,345	)		$	15,999		$	11,654					>(100%)			>(100%)
Presort Services		22,478				7,765			30,243						16,742				7,186			23,928					34	%		26	%
Commerce Services		4,301				25,452			29,753						12,397				23,185			35,582					(65	%)		(16	%)
Sending Technology Solutions		112,227				9,411			121,638						146,532				8,126			154,658					(23	%)		(21	%)
Segment Total	$	116,528			$	34,863			151,391					$	158,929			$	31,311			190,240					(27	%)		(20	%)
Reconciliation of Segment EBITDA to Net Income:
Segment depreciation and amortization									(34,863	)												(31,311	)
Unallocated corporate expenses									(51,246	)												(44,598	)
Interest, net									(37,800	)												(37,273	)
Restructuring charges and asset impairments, net									(12,990	)												(7,128	)
Pension settlement									-													(31,329	)
Loss on extinguishment of debt									(5,956	)												-
Transaction costs									(155	)												(268	)
(Provision) benefit for income taxes									(344	)												10,819
Income from continuing operations									8,037													49,152
Income from discontinued operations, net of tax									168,659													817
Net income								$	176,696												$	49,969
	Year Ended December 31,
	2019													2018													% change
	EBIT (1)				D&A			EBITDA						EBIT (1)				D&A			EBITDA						EBIT			EBITDA
Global Ecommerce	$	(70,146	)		$	68,385		$	(1,761	)				$	(32,379	)		$	61,046		$	28,667					>(100%)			>(100%)
Presort Services		70,693				29,440			100,133						73,768				26,838			100,606					(4	%)		(0	%)
Commerce Services		547				97,825			98,372						41,389				87,884			129,273					(99	%)		(24	%)
Sending Technology Solutions		490,322				39,758			530,080						558,959				39,104			598,063					(12	%)		(11	%)
Segment Total	$	490,869			$	137,583			628,452					$	600,348			$	126,988			727,336					(18	%)		(14	%)
Reconciliation of Segment EBITDA to Net Income:
Segment depreciation and amortization									(137,583	)												(126,988	)
Unallocated corporate expenses									(211,529	)												(185,919	)
Interest, net									(155,558	)												(159,757	)
Restructuring charges and asset impairments, net									(69,606	)												(25,899	)
Pension settlement									-													(31,329	)
Loss on disposition of businesses									(17,683	)												-
Loss on extinguishment of debt									(6,623	)												(7,964	)
Transaction costs									(2,728	)												(1,359	)
Benefit (provision) for income taxes									13,007													(6,416	)
Income from continuing operations									40,149													181,705
Income from discontinued operations, net of tax									154,460													60,106
Net income								$	194,609												$	241,811

(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 depreciation and amortization expense of reporting segments only, and excludes corporate depreciation and amortization expense of $5,765 and $4,998 for the three months ended December 31, 2019 and 2018, respectively, and $21,559 and $21,476 for the year ended December 31, 2019 and 2018, respectively.

Pitney Bowes Inc.
Reconciliation of Reported Consolidated Results to Adjusted Results
(Unaudited; in thousands, except per share amounts)
		Three months ended December 31,								Year ended December 31,
		2019				2018				2019				2018
Reconciliation of reported net income to adjusted earnings
Net income		$	176,696			$	49,969			$	194,609			$	241,811
Income from discontinued operations, net of tax			(168,659	)			(817	)			(154,460	)			(60,106	)
Restructuring charges and asset impairments, net			10,719				6,282				52,427				20,071
Loss on disposition of businesses			883				-				20,280				-
Pension settlement			-				23,402				-				23,402
Tax adjustments, net			-				(20,316	)			-				(34,281	)
Loss on extinguishment of debt			4,464				-				4,961				5,933
Transaction costs			116				200				2,033				1,012
Adjusted net income			24,219				58,720				119,850				197,842
Provision for income taxes, as adjusted			3,264				18,338				3,933				56,831
Interest, net			37,800				37,273				155,558				159,757
Adjusted EBIT			65,283				114,331				279,341				414,430
Depreciation and amortization			40,628				36,309				159,142				148,464
Adjusted EBITDA		$	105,911			$	150,640			$	438,483			$	562,894
Reconciliation of reported diluted earnings per share to adjusted diluted earnings per share
Diluted earnings per share		$	1.03			$	0.26			$	1.10			$	1.28
Income from discontinued operations, net of tax			(0.98	)			(0.00	)			(0.87	)			(0.32	)
Restructuring charges and asset impairments, net			0.06				0.03				0.30				0.11
Loss on disposition of businesses			0.01				-				0.11				-
Pension settlement			-				0.12				-				0.12
Tax adjustments, net			-				(0.11	)			-				(0.18	)
Loss on extinguishment of debt			0.03				-				0.03				0.03
Transaction costs			-				-				0.01				0.01
Adjusted diluted earnings per share		$	0.14			$	0.31			$	0.68			$	1.05
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		$	69,922			$	84,309			$	252,207			$	342,879
Net cash used in (provided by) operating activities - discontinued operations			6,587				76,343				(9,272	)			7,916
Capital expenditures			(42,032	)			(32,515	)			(137,253	)			(137,810	)
Restructuring payments			8,303				13,488				27,148				52,730
Reserve account deposits			13,216				14,144				16,341				21,008
Transaction costs paid			10,463				961				19,488				14,203
Free cash flow		$	66,459			$	156,730			$	168,659			$	300,926