Pitney Bowes Inc. (PBI) has reported second quarter 2011 results.

Revenue for the quarter was $1.3 billion, an increase of one percent compared with the prior year. As expected, revenue growth was reduced by approximately one percent this quarter as a result of lower revenues associated with the fire that destroyed the company's Dallas presort facility in the first quarter of this year. Revenue also included a 3 percent benefit from foreign currency translation. There was continued growth in equipment and software sales during the quarter. The combined recurring revenue streams of supplies, rentals and financing declined about 3 percent versus the prior year, which was a lower rate of decline than both the prior quarter and the prior year.

Adjusted earnings per diluted share from continuing operations for the second quarter was $0.52 compared with $0.48 for the prior year. Adjusted earnings per diluted share would have been $0.03 higher except for the reduction in earnings resulting from lower revenue related to the Dallas presort facility fire. Adjusted earnings per diluted share was also reduced by about $0.01 related to the company's investment in its new digital mail communications platform, Volly(TM). The company expects it will be reimbursed by its insurance carriers for the $0.05 per diluted share in year-to-date lost earnings related to lower revenue and expenses associated with the presort facility fire.

Earnings per diluted share for the quarter on a Generally Accepted Accounting Principles (GAAP) basis was $0.49 compared with $0.30 per diluted share for the prior year. GAAP earnings per diluted share for the quarter included $0.02 for restructuring charges and asset impairments associated with the company's Strategic Transformation initiatives and less than $0.01 each for a tax charge associated with out-of-the money stock options that expired during the quarter and a loss associated with discontinued operations.

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

                                                       Second Quarter
                                                       --------------
        Adjusted EPS from Continuing Operations             $0.52
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        Restructuring Charges and Asset Impairments        ($0.02)
        -------------------------------------------    --------------
        GAAP EPS                                            $0.49
        -------------------------------------------    --------------

*The sum of the earnings per share does not equal the totals above due to rounding and the impacts of tax charges and discontinued operations as noted above.

Free cash flow for the quarter was $269 million, while on a GAAP basis the company generated $153 million in cash from operations. Free cash flow during the quarter benefited from the timing of tax payments and refunds; an improvement in working capital; and lower finance receivables. During the quarter, the company made $123 million in contributions to its U.S. pension fund; used $85 million of cash for dividends; and repurchased 2.1 million shares of its outstanding common stock for $50 million. Year-to-date, the company has generated $554 million in free cash flow and on a GAAP basis $449 million in cash from operations, which was used primarily to pay dividends, fund its pension fund and buyback stock.