Pitney Bowes 2003 Annual Report Download - page 6

Download and view the complete annual report

Please find page 6 of the 2003 Pitney Bowes annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 36

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36

4
CHAIRMAN’S LETTER
Thanks to an exciting portfolio of
integrated mail and document solutions,
our brand promise of “Engineering the
flow of communication™” is taking hold
in the marketplace.
More and more, businesses of all sizes
understand that they can connect
better with their own customers
and drive business results
through an integrated approach
to communications — and that
Pitney Bowes is an expert in
this area.
For example, in 2003 alone,
through our marketing efforts
we more than doubled the
acceptance of Pitney Bowes
as a solutions provider among
senior executives.
More on this in a moment. But
first a word about the numbers.
Diluted earnings per share
excluding special items
increased to $2.41 vs. $2.37 a
year ago, in line with the guidance
we provided Wall Street. We also
generated over $850 million in cash
from operations and exceeded our target
for free cash flow. (See page 29 for the
reconciliation of reported consolidated
results to adjusted results.)
Our stock price increased 25 percent in
2003. Adding our dividend, we delivered
a total return of more than 28 percent.
For a full discussion of our 2003
financial numbers, I invite you to read
the letter from Bruce Nolop, our Chief
Financial Officer, on page 27 of this
report. Bruce outlines how we delivered solid
results and established greater financial
flexibility for our growth strategies.
For several years, I have talked about our
initiatives to enhance our core mailing
business and execute our
growth strategies by
expanding our range of
solutions across the
entire integrated mail and
document management
market — an opportunity
we size at $250 billion.
We made progress on
both fronts in 2003.
Enhancing the Core
Customers of our core
mailing business are clearly
excited about our advanced
new solutions combining
speed, versatility and
software-driven intelligence.
For example:
Demand for our networked,
digital mailing systems
remained strong throughout
2003, and by year-end the
new digital systems made up
more than two-thirds of our
U.S. meter base. We continue
to progress well ahead of the
U.S. Postal Service transition
schedule.
Our IntelliLink™software
for our DM Series™Digital
Mailing Systems is also a
hit. We are pleased with the
percentage of new customers
Pitney Bowes is a stronger, more focused company
today than it was a year ago at this time.
•
•