Pitney Bowes (NYSE: PBI), a global shipping and mailing company
that provides technology, logistics, and financial services, today
announced its financial results for the first quarter 2023.
“The trends in the first quarter were largely a continuation of
the dynamics we experienced last quarter,” said Marc B. Lautenbach,
President and Chief Executive Officer. “Our SendTech and Presort
businesses performed as expected. We remain pleased with domestic
parcel improvement, network performance and volume growth, although
with softer than expected revenue per parcel.”
“In addition, strong service levels in domestic parcel are
driving a robust new business pipeline, while cross-border
continues to face headwinds. That said, to be clear, the long-term
value creation remains centered in domestic parcel, and we continue
to be confident in that business.”
First Quarter Financial Highlights
- Revenue in the quarter was $835 million, a decrease of 10
percent on a reported basis and 4 percent on a comparable basis
versus prior year (1)
- GAAP EPS was a loss of $0.04 and Adjusted EPS was a loss of
$0.01 in the quarter versus GAAP EPS of $0.12 and Adjusted EPS of
$0.08 in first quarter of 2022
- Net loss of $8 million in the quarter compares to net income of
$21 million in first quarter 2022; Adjusted EBIT was $33 million
compared to $53 million in first quarter 2022
- GAAP cash from operating activities was a net use of $40
million; Free Cash Flow was a net use of $61 million (2)
- Cash and short-term investments were $527 million at
quarter-end
- Announced a restructuring plan which, combined with other
productivity efforts, will target $75 million of annual expense
savings by yearend 2024
First Quarter Business Highlights
- Global Ecommerce processed 50 million domestic parcels in the
quarter, up 22 percent from 41 million in first quarter 2022
- Global Ecommerce on-time delivery performance remains
excellent, and is now in the mid-90 percent range
- Presort grew Adjusted Segment EBIT margins by nearly 500 basis
points in the quarter versus prior year
- SendTech shipping-related revenues grew 8 percent in the
quarter; SaaS subscription revenues grew 24 percent
Earnings per share results are summarized in the table
below:
First Quarter
2023
2022
GAAP EPS
($0.04)
$0.12
Restructuring Charges
$0.01
$0.02
(Gain)/Loss on Debt
Redemption/Refinancing
($0.01)
$0.02
Proxy Solicitation Fees
$0.03
-
Gain on Sale of Assets
-
($0.06)
Gain on Sale of Business
-
($0.02)
Transaction Costs
-
$0.01
Adjusted EPS (3)
($0.01)
$0.08
(1)
Comparable basis is defined in the “Use of
Non-GAAP Measures” section
(2)
We updated our definition of free cash
flow to remove the impact of changes in customer deposits at PB
Bank
(3)
The sum of the earnings per share may not
equal the totals due to rounding.
Business Segment Reporting
Global Ecommerce
Global Ecommerce provides business to consumer logistics
services for domestic and cross-border delivery, returns and
fulfillment.
First Quarter
($ millions)
2023
2022
% Change
Reported
% Change Comparable
Basis
Revenue
$348
$419
(17%)
(5%)
Adjusted Segment EBITDA
($18)
$8
>(100%)
Adjusted Segment EBIT
($34)
($14)
>(100%)
Revenue decline was driven by cross-border, which continues to
face macroeconomic challenges as well as a reduction in parcel
volumes primarily from two clients. Domestic parcel revenue grew
from higher volumes. Revenue growth was, however, lower than
expected due to softer revenue per piece.
Adjusted Segment EBIT declined, primarily due to lower
cross-border revenue.
Presort Services
Presort Services provides sortation services that enable clients
to qualify for USPS workshare discounts in First Class Mail,
Marketing Mail, Marketing Mail Flats and Bound Printed Matter.
First Quarter
($ millions)
2023
2022
% Change
Reported
Revenue
$159
$161
(1%)
Adjusted Segment EBITDA
$35
$26
36%
Adjusted Segment EBIT
$27
$20
37%
Revenue declined modestly due to lower first class and marketing
mail volumes. The decline was partially offset by new client
additions and higher revenue per piece.
Adjusted Segment EBIT improved driven by higher revenue per
piece, improved labor productivity from investments in automation,
and lower unit transportation costs.
SendTech Solutions
Sending Technology Solutions offers physical and digital mailing
and shipping technology solutions, financing, services, supplies
and other applications for small and medium businesses, retail,
enterprise, and government clients around the world to help
simplify and save on the sending, tracking and receiving of
letters, parcels and flats.
First Quarter
($ millions)
2023
2022
% Change
Reported
% Change Comparable
Basis
Revenue
$327
$348
(6%)
(4%)
Adjusted Segment EBITDA
$104
$112
(7%)
Adjusted Segment EBIT
$97
$105
(8%)
Lower equipment sales and financing revenue drove the decline in
total revenue. Shipping-related revenue growth partially offset
this decline.
Adjusted Segment EBIT decreased as a result of lower financing
and support services revenues, both of which are tied to the
secular decline in mail.
Full Year 2023 Guidance
We continue to expect flat to mid-single digit percentage
revenue growth on a comparable basis.
We also continue to expect adjusted EBIT performance to outpace
the percent change in revenue.
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 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
Our financial results are reported in accordance with generally
accepted accounting principles (GAAP). We also disclose 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 restructuring charges, gains, losses and costs related to
the sale of assets, acquisitions and dispositions, losses on debt
redemptions and refinancings and other unusual items. Management
believes that these non-GAAP measures provide investors greater
insight into the underlying operating trends of the business.
We disclose revenue growth on a comparable basis, which excludes
three items. First, the comparison excludes the impacts of foreign
currency. Second, we are excluding the impact of the divestiture of
the Borderfree business effective July 1, 2022. Third, we are
excluding the impact of a change in the presentation of revenue
beginning in the fourth quarter of 2022, from a gross basis to net
basis due to an adjustment in terms of one of our contracts with
the United States Postal Service. The change in revenue
presentation impacts both our Global Ecommerce and SendTech
Solutions segments. The change in revenue presentation does not
impact gross profit. Management believes that excluding these items
provides investors with a better understanding of the underlying
revenue performance.
Free cash flow adjusts cash flow from operations calculated in
accordance with GAAP for discontinued operations, 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, restructuring
charges, 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
and 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. While conditions related to the COVID-19
pandemic have improved, the pandemic continues to be dynamic, and
near-term challenges across the economy remain and the effects that
they may have on our, and our clients' businesses remain uncertain.
Other 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;
our ability to continue to grow and manage unexpected fluctuations
in volumes, gain additional economies of scale and improve
profitability within our Global Ecommerce segment; the loss of some
of our larger clients in our Global Ecommerce and Presort Services
segments; the loss of, or significant changes to, United States
Postal Service (USPS) commercial programs, or our contractual
relationships with the USPS or their performance under those
contracts; the impacts of inflation and rising prices, higher
interest rates and a slow-down in economic activity, including a
global recession, to the company, our clients and retail consumers;
and other factors as more fully outlined in the Company's 2022 Form
10-K Annual Report and other reports filed with the Securities and
Exchange Commission during 2023. 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 months
ended March 31, 2023 and 2022, and consolidated balance sheets at
March 31, 2023 and December 31, 2022 are attached.
Pitney Bowes Inc. Consolidated Statements of
Operations (Unaudited; in thousands, except per share amounts)
Three months ended March
31,
2023
2022
Revenue: Business services
$
523,491
$
597,384
Support services
105,284
110,352
Financing
67,049
72,029
Equipment sales
82,610
89,296
Supplies
38,835
41,061
Rentals
17,269
16,820
Total revenue
834,538
926,942
Costs and expenses: Cost of business services
446,317
503,215
Cost of support services
36,840
37,134
Financing interest expense
14,536
11,602
Cost of equipment sales
57,171
63,771
Cost of supplies
11,225
11,517
Cost of rentals
5,428
5,309
Selling, general and administrative
242,120
242,785
Research and development
10,493
11,334
Restructuring charges
3,599
4,184
Interest expense, net
22,342
22,124
Other components of net pension and postretirement (income) cost
(1,710
)
844
Other income, net
(2,836
)
(11,901
)
Total costs and expenses
845,525
901,918
(Loss) income before taxes
(10,987
)
25,024
(Benefit) provision for income taxes
(3,250
)
4,203
Net (loss) income
$
(7,737
)
$
20,821
(Loss) earnings per share: Basic
$
(0.04
)
$
0.12
Diluted
$
(0.04
)
$
0.12
Weighted-average shares used in diluted earnings per share
174,626
178,034
Pitney Bowes Inc. Consolidated Balance Sheets
(Unaudited; in thousands)
Assets March 31,2023 December
31,2022 Current assets: Cash and cash equivalents
$
511,761
$
669,981
Short-term investments
15,614
11,172
Accounts and other receivables, net
271,496
343,557
Short-term finance receivables, net
551,348
564,972
Inventories
94,016
83,720
Current income taxes
19,318
8,790
Other current assets and prepayments
125,746
115,824
Total current assets
1,589,299
1,798,016
Property, plant and equipment, net
411,793
420,672
Rental property and equipment, net
26,955
27,487
Long-term finance receivables, net
636,518
627,124
Goodwill
1,069,660
1,066,951
Intangible assets, net
74,028
77,944
Operating lease assets
287,703
296,129
Noncurrent income taxes
44,595
46,613
Other assets
390,298
380,419
Total assets
$
4,530,849
$
4,741,355
Liabilities and stockholders'
equity Current liabilities: Accounts payable and accrued
liabilities
$
800,050
$
907,083
Customer deposits at Pitney Bowes Bank
594,546
628,072
Current operating lease liabilities
53,848
52,576
Current portion of long-term debt
262,439
32,764
Advance billings
86,802
105,207
Current income taxes
981
2,101
Total current liabilities
1,798,666
1,727,803
Long-term debt
1,910,529
2,172,502
Deferred taxes on income
268,193
263,131
Tax uncertainties and other income tax liabilities
23,778
23,841
Noncurrent operating lease liabilities
256,158
265,696
Other noncurrent liabilities
213,561
227,729
Total liabilities
4,470,885
4,680,702
Stockholders' equity:
Common stock
323,338
323,338
Retained earnings
5,060,852
5,125,677
Accumulated other comprehensive loss
(819,978
)
(835,564
)
Treasury stock, at cost
(4,504,248
)
(4,552,798
)
Total stockholders' equity
59,964
60,653
Total liabilities and stockholders' equity
$
4,530,849
$
4,741,355
Pitney Bowes Inc. Business Segment Revenue
(Unaudited; in thousands)
Three months ended March
31,
2023
2022
% Change
Global Ecommerce Revenue, as reported
$
348,391
$
418,527
(17
%)
Impact of change in revenue presentation
(37,586
)
Impact of Borderfree divestiture
(11,730
)
Comparable revenue before currency
348,391
369,211
(6
%)
Impact of currency on revenue
2,841
Comparable revenue
$
351,232
$
369,211
(5
%)
Presort Services Revenue, as reported
$
158,902
$
160,544
(1
%)
Sending Technology Solutions Revenue, as reported
$
327,245
$
347,871
(6
%)
Impact of change in revenue presentation
(3,690
)
Comparable revenue before currency
327,245
344,181
(5
%)
Impact of currency on revenue
4,844
Comparable revenue
$
332,089
$
344,181
(4
%)
Consolidated Revenue, as reported
$
834,538
$
926,942
(10
%)
Impact of change in revenue presentation
(41,276
)
Impact of Borderfree divestiture
(11,730
)
Comparable revenue before currency
834,538
873,936
(5
%)
Impact of currency on revenue
7,685
Comparable revenue
$
842,223
$
873,936
(4
%)
Pitney Bowes Inc. Adjusted Segment EBIT & EBITDA
(Unaudited; in thousands)
Three months
ended March 31,
2023
2022
% change AdjustedSegmentEBIT (1) D&A
AdjustedSegmentEBITDA AdjustedSegmentEBIT (1)
D&A AdjustedSegmentEBITDA
AdjustedSegmentEBIT AdjustedSegmentEBITDA
Global Ecommerce
$
(34,206
)
$
16,414
$
(17,792
)
$
(13,696
)
$
21,444
$
7,748
>(100%) >(100%) Presort Services
26,905
8,523
35,428
19,632
6,418
26,050
37
%
36
%
Sending Technology Solutions
96,671
7,467
104,138
104,575
7,003
111,578
(8
%)
(7
%)
$
89,370
$
32,404
121,774
$
110,511
$
34,865
145,376
(19
%)
(16
%)
Reconciliation of Segment Adjusted EBITDA to Net (Loss)
Income: Segment depreciation and amortization
(32,404
)
(34,865
)
Unallocated corporate expenses
(56,349
)
(57,834
)
Restructuring charges
(3,599
)
(4,184
)
Gain (loss) on debt redemption/refinancing
2,836
(4,993
)
Proxy solicitation fees
(6,367
)
-
Gain on sale of assets
-
14,372
Gain on sale of business
-
2,522
Transaction costs
-
(1,644
)
Interest, net
(36,878
)
(33,726
)
Benefit (provision) for income taxes
3,250
(4,203
)
Net (loss) income
$
(7,737
)
$
20,821
(1)
Adjusted segment EBIT excludes interest, taxes, general corporate
expenses, restructuring charges, and other items that are not
allocated to a particular business segment.
Pitney Bowes
Inc. Reconciliation of Reported Consolidated Results to
Adjusted Results (Unaudited; in thousands, except per share
amounts)
Three months ended March
31,
2023
2022
Reconciliation of reported net (loss) income to adjusted
EBIT and adjusted EBITDA Net (loss) income
$
(7,737
)
$
20,821
(Benefit) provision for income taxes
(3,250
)
4,203
(Loss) income before taxes
(10,987
)
25,024
Restructuring charges
3,599
4,184
Proxy solicitation fees
6,367
-
(Gain) loss on debt redemption/refinancing
(2,836
)
4,993
Gain on sale of assets
-
(14,372
)
Gain on sale of business
-
(2,522
)
Transaction costs
-
1,644
Adjusted net (loss) income before tax
(3,857
)
18,951
Interest, net
36,878
33,726
Adjusted EBIT
33,021
52,677
Depreciation and amortization
39,897
42,002
Adjusted EBITDA
$
72,918
$
94,679
Reconciliation of reported diluted (loss) earnings per
share to adjusted diluted (loss) earnings per share Diluted
(loss) earnings per share
$
(0.04
)
$
0.12
Restructuring charges
0.01
0.02
(Gain) loss on debt redemption/refinancing
(0.01
)
0.02
Proxy solicitation fees
0.03
-
Gain on sale of assets
-
(0.06
)
Gain on sale of businesses
-
(0.02
)
Transaction costs
-
0.01
Adjusted diluted (loss) earnings per share (1)
$
(0.01
)
$
0.08
(1) 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
$
(39,714
)
$
10,562
Capital expenditures
(28,666
)
(32,555
)
Restructuring payments
4,641
3,285
Proxy solicitation fees paid
3,038
-
Transaction costs paid
-
2,132
Free cash flow
$
(60,701
)
$
(16,576
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230503006034/en/
Editorial - Bill Hughes Chief Communications Officer
203.351.6785
Financial - Ned Zachar, CFA VP, Investor Relations
203.614.1092
Alex Brown Senior Manager, Investor Relations 203.351.7639
Pitney Bowes (NYSE:PBI)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
Pitney Bowes (NYSE:PBI)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024