Pitney Bowes First Quarter 2024 Earnings May 2, 2024 Forward Looking Statements 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 ma ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 May 2, 2024 Date of Report (Date of earliest event reported) Pitney Bowes Inc. (Exact name of registrant as specified in its charter) Delaware 1-3579 06-0495050 (State or other jurisdiction of incorporation or organization)(Commission file number) (I.R.S. Employer Identification No.) Address: TelephoneNumber: 3001 Summer Street, Stamford, Conn ...

STAMFORD, Conn.--(BUSINESS WIRE)--Pitney Bowes (NYSE:PBI), a global shipping and mailing company that provides technology, logistics, and financial services, today announced the launch of a series of new tracking and returns capabilities and the expansion of its regional delivery services to the Midwest region. These new services and more will be showcased at Shoptalk, the annual retail conference taking place at Mandalay Bay in Las Vegas, Nevada, March 17 -20, 2024. “Coming off the heels of a very succe ...

Financial Performance - Total revenue for 2023 was $3,266,348, a decrease of 8% compared to $3,538,042 in 2022[88] - Net loss for 2023 was $385,627, compared to net income of $36,940 in the prior year, representing a significant decline[91] - Total revenue for 2023 was $1,293,423 million, a decrease of 5% compared to $1,359,679 million in 2022[1] - Adjusted Segment EBIT for 2023 was $405 million, up from $401 million in the prior year[2] - The company expects consolidated revenue to be flat to a low single-digit decline in 2024 compared to 2023[83] Revenue Breakdown - Global Ecommerce revenue decreased by $221 million in 2023, with domestic parcel delivery revenue growth of $158 million partially offsetting declines in cross-border services[94] - Presort Services revenue increased by 3% to $617,599 in 2023, driven by pricing actions despite a 6% decrease in total mail volumes[98] - Equipment sales revenue declined by $31 million, primarily due to customers extending leases instead of purchasing new equipment[1] Cost and Expenses - The company anticipates annualized cost savings of $75-$85 million by the end of 2024 from its worldwide restructuring program[84] - Selling, general and administrative expenses decreased by $13 million, driven by lower outsourcing and professional fees[1] - Unallocated corporate expenses increased by $7 million to $210,931 million, primarily due to higher variable compensation and depreciation expenses[4] Margins and Profitability - Gross margin for Global Ecommerce decreased to 4.6% in 2023 from 8.6% in the prior year, primarily due to lower volumes in cross-border services[95] - Gross margin decreased by $12 million, but gross margin percentage increased to 65.1% from 62.8% year-over-year[1] - Adjusted segment EBIT for Presort Services increased by 35% to $110,912 in 2023, reflecting improved operational efficiency[99] Cash Flow and Capital Expenditures - Cash and cash equivalents at December 31, 2023, totaled $623 million, including $136 million held at foreign subsidiaries[6] - Net cash from operating activities decreased by $97 million to $79,468 million in 2023[7] - Capital expenditures for 2023 were $103 million, down from $125 million in 2022[17] Debt and Interest Rates - Outstanding principal debt as of December 31, 2023, was $2.2 billion, with 64% at fixed rates and a weighted average interest rate of 9.7% on variable rate debt[14] - The weighted average interest rate of variable-rate debt was 9.7% at December 31, 2023, with a 100 basis point change potentially increasing interest expense by approximately $8 million[144] Tax and Impairment - The effective tax rate for 2023 was 5.1%, primarily due to the nondeductibility of the aggregate goodwill impairment charge[91] - The company recorded noncash, pre-tax goodwill impairment charges of $119 million and $220 million for the Global Ecommerce reporting unit in the second and fourth quarters, respectively[127] Credit Risk and Allowances - The total allowance for credit losses as a percentage of finance receivables was 2% at both December 31, 2023 and 2022, with a potential $3 million reduction in pre-tax income for a 0.25% increase in the allowance rate[131] - Trade accounts receivable allowance for credit losses was also 2% at both December 31, 2023 and 2022, with a potential $1 million reduction in pre-tax income for a 0.25% increase in the allowance rate[132] - The company is exposed to credit risk on accounts receivable, mitigated by a diverse client base with no single client comprising more than 10% of consolidated net sales in 2023 or 2022[145] Pension and Benefits - The discount rate for the U.S. Qualified Pension Plan was 5.55% for 2023, projected to decrease to 5.15% for 2024, with a 0.25% change impacting the projected benefit obligation by $24 million[136] - The expected rate of return on plan assets for the U.S. Plan was 6.5% for 2023, projected to increase to 6.7% for 2024, with a 0.25% change impacting annual pension expense by $3 million[137] Foreign Operations and Currency - 11% of the company's consolidated revenue was generated from operations outside the United States in 2023, with no material impact from foreign currency translation on revenues or operating results[140] - The company decided to discontinue the use of foreign exchange contracts to hedge intercompany loans, with a 1% change in the British Pound, Canadian Dollar, or Euro potentially impacting earnings by $5 million, $3 million, and $2 million, respectively[143] - The fair value of other reporting units exceeded their carrying values, indicating no impairment existed as of the beginning of the fourth quarter[128]

FG TradePitney Bowes Inc. (NYSE:PBI) recently announced a company-wide cost reduction program, which I believe could have a beneficial effect on future FCF growth. In addition, I would expect new net sales growth driven by strong volumes of domestic parcels, network productivity, and new technological solutions in the e-commerce business. Furthermore, given previous sale of assets and divisions in the past, we could expect new transactions in 2024, which may boost the balance sheet. These are good reaso ...

Financial Performance - Total revenue for Q4 2023 was $872 million, a decline of 4% year-over-year. EBITDA improved by $15 million to $103 million, while EBIT increased by $14 million to $63 million. Adjusted EPS was $0.07 compared to $0.06 in the prior year [13][14][27] - GAAP EPS reported a loss of $1.27, which included a non-cash goodwill impairment charge of $1.24 related to the global Ecommerce segment [13] Business Segment Performance - **SendTech**: Revenue was $327 million, down 5% year-over-year, but EBIT grew by 7% to $113 million. Shipping-related revenues declined 7%, now comprising 13% of total revenue. SaaS subscription revenue from shipping products grew 42% [14][15][18] - **Presort**: Revenue grew 3% to $163 million, with EBIT up 17% to $34 million, driven by higher revenue per piece and operational excellence [21][22] - **Global Ecommerce**: Revenue was $381 million, down 7% year-over-year. Domestic parcel volumes grew 13% to 61 million parcels, but overall profitability needs improvement [23][24] Market Data - Domestic parcel volumes increased by 13% in Q4, reflecting strong performance despite a challenging market. However, revenue per piece declined by 6% due to pricing pressures and client mix [24][25] Company Strategy and Development Direction - The company is focused on streamlining operations, reducing costs, and enhancing accountability across business units. A significant shift in resources towards shipping capabilities is planned, with digital shipping solutions moved to SendTech [8][10][11] - The company aims for disciplined capital allocation and strengthening its balance sheet while continuing to execute on cost reduction initiatives [11][26] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the importance of operational discipline and targeted shipping growth paths. They acknowledged the challenges faced in 2023 and the transformation expected in 2024 [11][28] - The company anticipates revenue growth to range from flat to low single-digit decline in 2024, with EBIT margins expected to remain relatively flat [27] Other Important Information - The company announced changes to its Board of Directors, welcoming new members with significant experience in corporate governance and capital allocation [29][30] - The restructuring program is on track to deliver annual run rate savings of $75 million to $85 million by the end of 2024 [26] Q&A Session Summary Question: Insight into Global Ecommerce business - Management emphasized the need for continued cost management and driving volumes into the network, with a focus on margin improvement [31][32] Question: Free cash flow expectations for 2024 - Free cash flow is expected to be somewhat north of the previous year's figures [34][35] Question: Impact of higher variable compensation and wage inflation - Variable compensation and wage inflation are anticipated to consume a significant portion of the savings from restructuring efforts [41][42] Question: Update on CEO search process - The Board is actively engaged in a search for a new CEO, with a timeline of four to six months for the process [48] Question: CapEx allocation and payback periods - Overall CapEx is expected to remain steady, with a focus on quicker paybacks for investments [83][84]

Pitney Bowes (PBI) came out with quarterly earnings of $0.07 per share, beating the Zacks Consensus Estimate of $0.03 per share. This compares to earnings of $0.06 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 133.33%. A quarter ago, it was expected that this mailing equipment and software company would post a loss of $0.02 per share when it actually produced break-even earnings, delivering a surprise of 100%.Over the last f ...

Pitney Bowes Fourth Quarter 2023 Earnings Forward Looking Statements 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 fr ...

STAMFORD, Conn.--(BUSINESS WIRE)--Pitney Bowes Inc. (NYSE:PBI), a global shipping and mailing company that provides technology, logistics, and financial services, today announced that its Board of Directors has declared a quarterly cash dividend on the company’s common stock of $0.05 per share. The dividend will be paid on March 14, 2024 to stockholders of record on February 9, 2024. About Pitney Bowes Pitney Bowes (NYSE:PBI) is a global shipping and mailing company that provides technology, logistics, an ...

Pitney Bowes Inc. (NYSE:PBI) Q3 2023 Earnings Conference Call November 2, 2023 8:00 AM ET Company Participants Philip Landler - Vice President Investor Relations and Global Strategy Jason Dies - Interim Chief Executive Officer Ana Maria Chadwick - EVP and CFO Conference Call Participants Kartik Mehta - Northcoast Research Anthony Lebiedzinski - Sidoti & Company Peter Sakon - CreditSights Matthew Swope - Baird Operator Good morning and welcome to the Pitney Bowes Third Quarter 2023 Earnings Conference Call. ...