PBI Pitney Bowes Inc

Company Updates Full Year Guidance Following Recent Value-Enhancing Actions and Strong First-Half Performance

Company to Host Investor Conference Call at 5:30 p.m. ET

Pitney Bowes (NYSE: PBI) (“Pitney Bowes” or the “Company”), a global shipping and mailing company that provides technology, logistics, and financial services, today announced the Company’s financial results for the second quarter of fiscal year 2024 and provided a progress update on the strategic initiatives announced on May 22, 2024, including the conclusion of the strategic review of the Global Ecommerce (“GEC”) segment. The Company also disclosed its updated full year guidance for Fiscal Year 2024 following recent value-enhancing actions and strong first-half performance.

Second Quarter Financial Highlights (Inclusive of GEC)

• Revenue was $793 million, up 2% year-over-year
• GAAP EPS was a loss of $0.14, including restructuring charges of $0.14
• Adjusted EPS was $0.03, an improvement of $0.05 over prior year
• Net loss of $25 million versus $142 million in prior year
• Adjusted EBIT was $46 million, up 43% versus prior year
• GAAP cash from operating activities was $93 million
• Free Cash Flow was $83 million, an improvement of $94 million year-over-year

Update on Strategic Initiatives through August 8, 2024

• GEC Exit: After conducting a comprehensive strategic review that was supported by independent legal and financial advisors, Pitney Bowes’ Board of Directors (the “Board”) determined the optimal path to maximizing value for the Company was to support the decision of the independent fiduciaries of the entities representing a substantial majority of the GEC segment to sell a majority interest in these entities (“the GEC Entities”) to an affiliate of Hilco Global (“Hilco”). This sale of the controlling interest occurred on August 8, 2024. Hilco intends to conduct an orderly liquidation of these entities through a Chapter 11 process, which commenced with a bankruptcy filing on August 8, 2024. This path was determined to be in the best interest of the Company and the GEC Entities after an extensive review process. Notably, the GEC segment had been struggling to achieve profitability over the past several years in the face of macroeconomic and industry headwinds. Pitney Bowes expects this exit path to ultimately result in the elimination of annualized net losses attributable to GEC that were $136 million for the most recent full fiscal year ended December 31, 2023. In connection with this path, Pitney Bowes anticipates that it will incur one-time costs not to exceed approximately $150 million, including providing the GEC Entities, subject to approval of the bankruptcy court, with an approximately $45 million delayed draw term loan to support the efficient liquidation through the Chapter 11 process. The parties anticipate that the liquidation and wind-down process, which will require certain court approvals, will conclude in early 2025. The Company’s SendTech and Presort segments will continue to operate in the normal course and should not be impacted. Additionally, the Pitney Bowes Bank will continue to operate in the normal course and should not be affected by the GEC exit.

• Cost Rationalization: As previously announced, the Company has identified and implemented approximately $70 million in annualized cost reductions since late May, including cost cuts at the corporate level as well as within SendTech and Presort. These cost reductions were in addition to anticipated savings that the Company estimates it will realize once it has exited the GEC segment. The Company reiterates its target of a total of $120 million to $160 million in annual savings related to its cost reduction initiatives.

• Cash Optimization: Pitney Bowes’ cash optimization initiatives are already underway, beginning with the reduction of spending across the Company, which will be a direct benefit to free cash flow. The Company has repatriated $100 million of international cash and freed up approximately $40 million of cash from Pitney Bowes Bank year-to-date. The Company expects to repatriate an additional $25 million of overseas cash during the second half of the year and has also implemented a global cash pooling structure, which will enable it to maintain lower levels of cash in international jurisdictions moving forward. The Company now estimates it will be able to reduce go-forward cash needs by $240 million, increased from its initial goal of $200 million.

• Balance Sheet Deleveraging: The Company believes that exiting GEC, reducing non-essential expenses and optimizing cash positions will allow Pitney Bowes to materially accelerate its deleveraging. As the Company continues to execute on its strategic initiatives, Company leadership plans to prioritize the elimination of high-cost debt and focus on enhancing the Company’s credit rating.

Due to the significant changes occurring at Pitney Bowes, slide 19 of the Q2 investor presentation on the Company’s IR website includes an illustrative EBIT bridge to highlight what the Board and management believe to be the Company’s strong underlying earnings potential after exiting the GEC Entities and executing on in-progress cost reduction initiatives. The presented illustrative EBIT (based on the Company’s EBIT for the 12 months ended June 30, 2024) is $481 million after deducting the GEC segment losses (a substantial majority of which are attributable to the GEC Entities) from the trailing 12 months and assuming the midpoint of an estimated $120 million to $160 million in cuts resulting from cost reduction initiatives. Please note that this is a non-GAAP number and has been provided solely for the purpose of illustrating the earnings potential associated with the Company’s current initiatives, and it is not a forecast of any future earnings period. We have not reconciled the illustrative EBIT bridge to its corresponding GAAP measure due to the high variability and difficulty in making accurate forecasts and projections of its components. Accordingly, a reconciliation of illustrative EBIT is not available without unreasonable effort.

Lance Rosenzweig, Interim Chief Executive Officer and a member of the Board, commented:

“Pitney Bowes reduced net loss from $142 million to $25 million and achieved $46 million in Adjusted EBIT for the second quarter, representing a 43% year-over-year improvement on relatively steady revenue. This improved performance reflects the organization’s commitment to being a more efficient and focused enterprise that leans into its core assets and strengths. Our progress in the quarter also reinforces the Company’s significant opportunity for continued cash flow and earnings growth, which will support pragmatic go-forward investments in the Company’s remaining, high-performing businesses. On behalf of the Board and management team, I want to thank our employees for embracing change and helping chart a brighter future during the past quarter, which was a period of considerable transition. I look forward to continuing to pursue enhanced value with our highly talented teams.

With respect to our four previously announced strategic initiatives, we have made significant progress over the past 75 days, including finishing our strategic review of GEC. We believe that the decision to immediately pursue an orderly wind-down of GEC will ultimately maximize value for the Company and drive stronger full-year results in 2025. Combined with cost reduction efforts and cash optimization progress, our recent actions should help accelerate the deleveraging of the balance sheet.”

Earnings per share results are summarized in the table below:

Second Quarter

2024

2023

GAAP EPS

($0.14)

($0.81)

Restructuring Charges (1)

$0.14

$0.09

CEO & Board Transition (2)

$0.01

-

Strategic Review Costs (3)

$0.02

-

Foreign Currency Gain on Intercompany Loans

($0.00)

-

Gain on Debt Redemption

-

($0.00)

Proxy Solicitation Fees

-

$0.02

Goodwill Impairment

-

$0.67

Adjusted EPS

$0.03

($0.02)

(1)

Restructuring charges related to Pitney Bowes’ cost rationalization plan include severance.

(2)

CEO & Board Transition costs include legal fees incurred with the transition and recruiting costs related to the search for a new CEO or Board members.

(3)

Strategic Review Costs include legal, accounting and other expenses related to the strategic review of GEC, including preparation for a potential GEC exit.

Business Segment Reporting

SendTech Solutions

SendTech Solutions offers physical and digital shipping and mailing technology solutions, financing, services, supplies and other applications for small and medium businesses, retail, enterprise, and government clients around the world to help simplify and save on the sending, tracking and receiving of letters, parcels and flats.

Second Quarter

($ millions)

2024

2023

% Change

Reported

Revenue

$320

$328

(2%)

Adjusted Segment EBITDA

$111

$106

4%

Adjusted Segment EBIT

$101

$97

4%

Revenue decline was driven by near-term headwinds related to the Company’s product lifecycle. Shipping-related revenue grew 10%, partially offsetting the mailing decline.

Cost reduction actions and a favorable revenue mix from growth in Pitney Bowes’ high- margin digital shipping offerings drove higher Adjusted Segment EBITDA and EBIT.

Presort Services

Presort Services provides sortation services that enable clients to qualify for USPS workshare discounts in First Class Mail, Marketing Mail, Marketing Mail Flats and Bound Printed Matter.

Second Quarter

($ millions)

2024

2023

% Change

Reported

Revenue

$147

$143

3%

Adjusted Segment EBITDA

$36

$29

25%

Adjusted Segment EBIT

$27

$20

32%

Presort sorted 3.6 billion pieces of mail in the quarter. Revenue per piece expansion drove revenue growth, while volumes declined 2% year-over-year.

Adjusted Segment EBITDA and EBIT growth due to higher revenue per piece, labor productivity gains from investments in automation and process improvements and increased transportation efficiencies from network optimizations.

Global Ecommerce

Global Ecommerce provides business to consumer logistics services for domestic and cross-border delivery, returns and fulfillment.

Second Quarter

($ millions)

2024

2023

% Change

Reported

Revenue

$326

$305

7%

Adjusted Segment EBITDA

($17)

($23)

26%

Adjusted Segment EBIT

($31)

($37)

17%

Revenue growth was driven by a 10% increase in domestic parcel revenue from higher volumes.

Prolonged industry headwinds resulted in lower revenue per piece and a decline in domestic parcel gross profit. Expense reduction drove improvement in Adjusted Segment EBITDA and EBIT.

Updated Full Year 2024 Guidance

Pitney Bowes is updating its full-year 2024 guidance to reflect the exit of GEC, incremental cost-saving initiatives and strong first-half performance.

Full year 2024 guidance and comparison to 2023 exclude the financial results of the GEC Entities, which the Company expects will be reflected in discontinued operations.

Pitney Bowes expects full-year revenue growth to range from flat to a low-single-digit decline.

The Company also expects full-year EBIT of $340 million to $355 million.

Conference Call and Webcast

Management of Pitney Bowes will discuss the Company’s results in a broadcast over the Internet today at 5:30 p.m. ET. Instructions for listening to the earnings results via the Web are available on the Investor Relations page of the Company’s website at www.pitneybowes.com.

About Pitney Bowes

Pitney Bowes (NYSE:PBI) is a global shipping and mailing company that provides technology, logistics, and financial services to more than 90 percent of the Fortune 500. Small business, retail, enterprise, and government clients around the world rely on Pitney Bowes to remove the complexity of sending mail and parcels. For additional information, visit: www.pitneybowes.com.

Use of Non-GAAP Measures

Pitney Bowes’ financial results are reported in accordance with generally accepted accounting principles (GAAP). Pitney Bowes also discloses certain non-GAAP measures, such as adjusted earnings before interest and taxes (Adjusted EBIT), adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA), adjusted earnings per share (Adjusted EPS), revenue growth on a comparable basis and free cash flow.

Adjusted EBIT, Adjusted EBITDA and Adjusted EPS exclude the impact of restructuring charges, CEO & Board transition costs, strategic review costs, goodwill impairment charges, foreign currency gains and losses on intercompany loans, gains, losses and costs related to acquisitions and dispositions, gains and losses on debt redemptions and other unusual items. These expenses are excluded because they fluctuate in amount and frequency and are not reflective of the Company’s core business operating performance. Management believes that these non-GAAP measures provide investors greater insight into the underlying operating trends of the business.

Free cash flow adjusts cash flow from operations calculated in accordance with GAAP for capital expenditures, restructuring payments and other special items. Management believes free cash flow provides investors better insight into the amount of cash available for other discretionary uses.

Adjusted Segment EBIT is the primary measure of profitability and operational performance at the segment level and is determined by deducting from segment revenue the related costs and expenses attributable to the segment. Adjusted Segment EBIT excludes interest, taxes, unallocated corporate expenses, foreign currency gains and losses on intercompany loans, restructuring charges, goodwill impairment, CEO & Board transition costs, strategic review costs and other items not allocated to a business segment. The Company also reports Adjusted Segment EBITDA as an additional useful measure of segment profitability and operational performance.

Complete reconciliations of non-GAAP measures to comparable GAAP measures can be found in the attached financial schedules and at the Company's web site at 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 future revenue and earnings guidance, future events or conditions, and expected cost savings, elimination of future losses, and anticipated deleveraging in connection with Pitney Bowes’ announced strategic initiatives. 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. Factors which could cause future financial performance to differ materially from expectations include, without limitation, declining physical mail volumes; changes in postal regulations or the operations and financial health of posts in the U.S. or other major markets or changes to the broader postal or shipping markets; the potential adverse effects of the GEC exit and wind-down and related transactions on the Company’s operations, management and employees and the risks associated with operating the business during the restructuring process and exit from the GEC business; risks and uncertainties associated with the GEC exit and wind-down and related transactions, including the ability to achieve the anticipated benefits therefrom; the ability to successfully implement the Company’s 2024 worldwide cost reduction initiative, the Company’s cost rationalization and optimization initiatives and to achieve expected cost reductions and improved efficiencies in connection therewith; the loss of some of Pitney Bowes’ larger clients in the Presort Services segments; the loss of, or significant changes to, United States Postal Service (USPS) commercial programs, or the Company’s contractual relationships with the USPS or their performance under those contracts; the impacts of higher interest rates and the potential for future interest rate increases on Pitney Bowes’ cost of debt; and other factors as more fully outlined in the Company's 2023 Form 10-K Annual Report and other reports filed with the Securities and Exchange Commission during 2024. 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, adjusted segment EBIT and adjusted segment EBITDA by business segment; and reconciliations of GAAP to non-GAAP measures for the three ended June 30, 2024 and 2023, and consolidated balance sheets at June 30, 2024 and December 31, 2023 are attached.

Pitney Bowes Inc.

Consolidated Statements of Operations

(Unaudited; in thousands, except per share amounts)

 

Three months ended June 30

Six months ended June 30

2024

2023

2024

2023

Revenue: Business services

$

506,666

 

$

473,497

 

$

1,042,263

 

$

996,988

 

Support services

 

94,012

 

 

103,315

 

 

190,345

 

 

208,599

 

Financing

 

67,539

 

 

66,702

 

 

135,202

 

 

133,751

 

Equipment sales

 

72,753

 

 

79,451

 

 

150,156

 

 

162,061

 

Supplies

 

35,509

 

 

36,505

 

 

72,230

 

 

75,340

 

Rentals

 

16,691

 

 

17,011

 

 

33,483

 

 

34,280

 

Total revenue

 

793,170

 

 

776,481

 

 

1,623,679

 

 

1,611,019

 

  Costs and expenses: Cost of business services

 

429,756

 

 

410,638

 

 

876,123

 

 

856,955

 

Cost of support services

 

31,664

 

 

35,018

 

 

64,719

 

 

71,858

 

Financing interest expense

 

15,965

 

 

14,763

 

 

32,568

 

 

29,299

 

Cost of equipment sales

 

50,314

 

 

56,180

 

 

102,873

 

 

113,351

 

Cost of supplies

 

10,358

 

 

10,884

 

 

20,553

 

 

22,109

 

Cost of rentals

 

4,433

 

 

5,142

 

 

9,117

 

 

10,570

 

Selling, general and administrative

 

220,008

 

 

222,549

 

 

436,205

 

 

464,669

 

Research and development

 

9,108

 

 

10,274

 

 

18,589

 

 

20,767

 

Restructuring charges

 

31,843

 

 

22,443

 

 

36,158

 

 

26,042

 

Goodwill impairment

 

-

 

 

118,599

 

 

-

 

 

118,599

 

Interest expense, net

 

28,767

 

 

22,920

 

 

56,533

 

 

45,262

 

Other components of net pension and postretirement income

 

(382

)

 

(1,751

)

 

(769

)

 

(3,461

)

Other income

 

-

 

 

(228

)

 

-

 

 

(3,064

)

Total costs and expenses

 

831,834

 

 

927,431

 

 

1,652,669

 

 

1,772,956

 

  Loss before taxes

 

(38,664

)

 

(150,950

)

 

(28,990

)

 

(161,937

)

Benefit for income taxes

 

(13,797

)

 

(9,415

)

 

(1,238

)

 

(12,665

)

Net loss

$

(24,867

)

$

(141,535

)

$

(27,752

)

$

(149,272

)

  Net loss per share: Basic

$

(0.14

)

$

(0.81

)

$

(0.16

)

$

(0.85

)

Diluted

$

(0.14

)

$

(0.81

)

$

(0.16

)

$

(0.85

)

  Weighted-average shares used in diluted earnings per share

 

178,696

 

 

175,695

 

 

177,872

 

 

175,094

 

 

Pitney Bowes Inc.

Consolidated Balance Sheets

(Unaudited; in thousands)

  Assets

June 30,

2024

December 31,

2023

Current assets: Cash and cash equivalents

$

590,147

 

$

601,053

 

Short-term investments

 

21,852

 

 

22,166

 

Accounts and other receivables, net

 

266,172

 

 

342,236

 

Short-term finance receivables, net

 

541,957

 

 

563,536

 

Inventories

 

76,500

 

 

70,053

 

Current income taxes

 

7,850

 

 

564

 

Other current assets and prepayments

 

101,263

 

 

92,309

 

Total current assets

 

1,605,741

 

 

1,691,917

 

Property, plant and equipment, net

 

359,452

 

 

383,628

 

Rental property and equipment, net

 

22,334

 

 

23,583

 

Long-term finance receivables, net

 

625,734

 

 

653,085

 

Goodwill

 

727,613

 

 

734,409

 

Intangible assets, net

 

54,339

 

 

62,250

 

Operating lease assets

 

297,638

 

 

309,958

 

Noncurrent income taxes

 

58,063

 

 

60,995

 

Other assets

 

327,488

 

 

352,360

 

Total assets

$

4,078,402

 

$

4,272,185

 

  Liabilities and stockholders' deficit Current liabilities: Accounts payable and accrued liabilities

$

843,148

 

$

875,476

 

Customer deposits at Pitney Bowes Bank

 

628,711

 

 

640,323

 

Current operating lease liabilities

 

61,143

 

 

60,069

 

Current portion of long-term debt

 

57,290

 

 

58,931

 

Advance billings

 

86,339

 

 

89,087

 

Current income taxes

 

1,556

 

 

6,523

 

Total current liabilities

 

1,678,187

 

 

1,730,409

 

Long-term debt

 

2,065,034

 

 

2,087,101

 

Deferred taxes on income

 

193,835

 

 

211,477

 

Tax uncertainties and other income tax liabilities

 

14,538

 

 

19,091

 

Noncurrent operating lease liabilities

 

263,758

 

 

277,981

 

Other noncurrent liabilities

 

290,939

 

 

314,702

 

Total liabilities

 

4,506,291

 

 

4,640,761

 

  Stockholders' deficit:

Common stock

 

270,338

 

 

270,338

 

Retained earnings

 

2,948,959

 

 

3,077,988

 

Accumulated other comprehensive loss

 

(865,523

)

 

(851,245

)

Treasury stock, at cost

 

(2,781,663

)

 

(2,865,657

)

Total stockholders' deficit

 

(427,889

)

 

(368,576

)

Total liabilities and stockholders' deficit

$

4,078,402

 

$

4,272,185

 

 

Pitney Bowes Inc.

Business Segment Revenue

(Unaudited; in thousands)

   

Three months ended June 30

Six months ended June 30

2024

2023

% Change

2024

2023

% Change

  Sending Technology Solutions Revenue, as reported

$

320,155

 

$

328,325

(2

%)

$

647,592

 

$

663,320

(2

%)

Impact of currency on revenue

 

1,420

 

 

1,345

 

Revenue, constant currency

$

321,575

 

$

328,325

(2

%)

$

648,937

 

$

663,320

(2

%)

  Presort Services Revenue, as reported

$

146,858

 

$

143,107

3

%

$

316,665

 

$

302,009

5

%

  Global Ecommerce Revenue, as reported

$

326,157

 

$

305,049

7

%

$

659,422

 

$

645,690

2

%

Impact of currency on revenue

 

(73

)

 

(789

)

Revenue, constant currency

$

326,084

 

$

305,049

7

%

$

658,633

 

$

645,690

2

%

  Consolidated Revenue, as reported

$

793,170

 

$

776,481

2

%

$

1,623,679

 

$

1,611,019

1

%

Impact of currency on revenue

 

1,347

 

 

556

 

Revenue, constant currency

$

794,517

 

$

776,481

2

%

$

1,624,235

 

$

1,611,019

1

%

 

Pitney Bowes Inc.

Adjusted Segment EBIT & EBITDA

(Unaudited; in thousands)

     

Three months ended June 30

2024

2023

% change

Adjusted

Segment

EBIT (1)

D&A

Adjusted

Segment

EBITDA

Adjusted

Segment

EBIT (1)

D&A

Adjusted

Segment

EBITDA

Adjusted

Segment

EBIT

Adjusted

Segment

EBITDA

  Sending Technology Solutions

$

100,967

 

$

9,697

$

110,664

 

$

96,848

 

$

9,381

$

106,229

 

4%

4%

Presort Services

 

27,048

 

 

8,955

 

36,003

 

 

20,429

 

 

8,337

 

28,766

 

32%

25%

Global Ecommerce

 

(30,935

)

 

14,122

 

(16,813

)

 

(37,483

)

 

14,622

 

(22,861

)

17%

26%

Segment total

$

97,080

 

$

32,774

$

129,854

 

$

79,794

 

$

32,340

$

112,134

 

22%

16%

  Reconciliation of Segment Adjusted EBITDA to Net Loss: Interest expense, net

 

(44,732

)

 

(37,683

)

Benefit for income taxes

 

13,797

 

 

9,415

 

Segment depreciation and amortization

 

(32,774

)

 

(32,340

)

Unallocated corporate expenses

 

(51,275

)

 

(47,709

)

Restructuring charges

 

(31,843

)

 

(22,443

)

Goodwill impairment

 

-

 

 

(118,599

)

Foreign currency gain on intercompany loans

 

712

 

 

-

 

CEO and Board transition costs

 

(2,631

)

 

-

 

Strategic Review costs

 

(5,975

)

 

-

 

Proxy solicitation fees

 

-

 

 

(4,538

)

Gain on debt redemption

 

-

 

 

228

 

Net loss

$

(24,867

)

$

(141,535

)

     

Six months ended June 30

2024

2023

% change

Adjusted

Segment

EBIT (1)

D&A

Adjusted

Segment

EBITDA

Adjusted

Segment

EBIT (1)

D&A

Adjusted

Segment

EBITDA

Adjusted

Segment

EBIT

Adjusted

Segment

EBITDA

  Sending Technology Solutions

 

202,245

 

 

19,693

 

221,938

 

 

192,485

 

 

18,831

 

211,316

 

5%

5%

Presort Services

 

67,377

 

 

17,713

 

85,090

 

 

47,334

 

 

16,860

 

64,194

 

42%

33%

Global Ecommerce

$

(66,362

)

$

28,155

$

(38,207

)

$

(70,655

)

$

29,053

$

(41,602

)

6%

8%

Segment total

$

203,260

$

65,561

$

268,821

 

$

169,164

$

64,744

233,908

 

20%

15%

  Reconciliation of Segment EBITDA to Net Loss: Interest expense, net

 

(89,101

)

 

(74,562

)

Benefit for income taxes

 

1,238

 

 

12,665

 

Segment depreciation and amortization

 

(65,561

)

 

(64,744

)

Unallocated corporate expenses

 

(101,045

)

 

(104,058

)

Restructuring charges

 

(36,158

)

 

(26,042

)

Goodwill impairment

 

-

 

 

(118,599

)

Foreign currency gain on intercompany loans

 

5,350

 

 

-

 

CEO and Board transition costs

 

(2,631

)

 

-

 

Strategic Review costs

 

(8,665

)

 

-

 

Proxy solicitation fees

 

-

 

 

(10,905

)

Gain on debt redemption

 

-

 

 

3,064

 

Net loss

$

(27,752

)

$

(149,273

)

(1)

Adjusted segment EBIT excludes interest, taxes, general corporate expenses, restructuring charges, goodwill impairment, and other items that are not allocated to a business segment.

 

Pitney Bowes Inc.

Reconciliation of Reported Consolidated Results to Adjusted Results

(Unaudited; in thousands, except per share amounts)

 

Three months ended June 30

Six months ended June 30

2024

2023

2024

2023

  Reconciliation of reported net loss to adjusted EBIT and adjusted EBITDA Net loss

$

(24,867

)

$

(141,535

)

$

(27,752

)

$

(149,272

)

Provision (benefit) for income taxes

 

(13,797

)

 

(9,415

)

 

(1,238

)

 

(12,665

)

Income (loss) before taxes

 

(38,664

)

 

(150,950

)

 

(28,990

)

 

(161,937

)

Restructuring charges

 

31,843

 

 

22,443

 

 

36,158

 

 

26,042

 

Goodwill impairment

 

-

 

 

118,599

 

 

-

 

 

118,599

 

Foreign currency gain on intercompany loans

 

(712

)

 

-

 

 

(5,350

)

 

-

 

CEO and Board transition costs

 

2,631

 

 

-

 

 

2,631

 

 

-

 

Strategic Review costs

 

5,975

 

 

-

 

 

8,665

 

 

-

 

Proxy solicitation fees

 

-

 

 

4,538

 

 

-

 

 

10,905

 

Gain on debt redemption

 

-

 

 

(228

)

 

-

 

 

(3,064

)

Adjusted net income before tax

 

1,073

 

 

(5,598

)

 

13,114

 

 

(9,455

)

Interest, net

 

44,732

 

 

37,683

 

 

89,101

 

 

74,561

 

Adjusted EBIT

 

45,805

 

 

32,085

 

 

102,215

 

 

65,106

 

Depreciation and amortization

 

40,734

 

 

39,873

 

 

81,613

 

 

79,770

 

Adjusted EBITDA

$

86,539

 

$

71,958

 

$

183,828

 

$

144,876

 

  Reconciliation of reported diluted loss per share to adjusted diluted loss per share Diluted loss per share

$

(0.14

)

$

(0.81

)

$

(0.16

)

$

(0.85

)

Restructuring charges

 

0.14

 

 

0.09

 

 

0.16

 

 

0.11

 

Goodwill impairment

 

-

 

 

0.67

 

 

-

 

 

0.67

 

Foreign currency gain on intercompany loans

 

-

 

 

-

 

 

(0.02

)

 

-

 

CEO and Board transition costs

 

0.01

 

 

-

 

 

0.01

 

 

-

 

Strategic Review costs

 

0.02

 

 

-

 

 

0.04

 

 

-

 

Proxy solicitation fees

 

-

 

 

0.02

 

 

-

 

 

0.05

 

Gain on debt redemption

 

-

 

 

-

 

 

-

 

 

(0.01

)

Adjusted diluted loss per share

$

0.03

 

$

(0.02

)

$

0.03

 

$

(0.04

)

  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 from operating activities

$

92,854

 

$

(44

)

$

80,329

 

$

(39,758

)

Capital expenditures

 

(21,136

)

 

(25,980

)

 

(41,093

)

 

(54,646

)

Restructuring payments

 

11,708

 

 

8,242

 

 

26,697

 

 

12,883

 

Proxy solicitation fees paid

 

-

 

 

7,244

 

 

-

 

 

10,282

 

Free cash flow

$

83,426

 

$

(10,538

)

$

65,933

 

$

(71,239

)

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240808174923/en/

For Investors:

Alex Brown investorrelations@pb.com

For Media:

Longacre Square Partners Joe Germani / Jessica McDougall jgermani@longacresquare.com / jmcdougall@longacresquare.com