Pitney Bowes (NYSE: PBI) (“Pitney Bowes” or the “Company”), a global shipping and mailing company that provides technology, logistics, and financial services, today announced its financial results for the fourth quarter and full year of 2023.
Jason Dies, Interim Chief Executive Officer, commented:
“Pitney Bowes is beginning 2024 with positive momentum and a strong set of go-forward priorities following a productive fourth quarter. At the enterprise level, we are on track with our cost reduction and restructuring efforts after increasing targets late last year. Our SendTech and Presort segments again delivered solid profit increases and margin expansion in the fourth quarter, reflecting continued focus on both productivity and revenue growth initiatives. Global Ecommerce delivered improved profitability year-over-year and sequentially in the fourth quarter, demonstrating the value of our network in peak and on a go forward basis. We are continuing to take actions and review options to realize the value of this segment. Importantly, as we look ahead in 2024, we will continue to operate with intensity and prioritize actions that support a shift into shipping solutions and our specific growth goals in SaaS shipping technology.”
Fourth Quarter Financial Highlights
- Revenue in the quarter was $872 million, a decrease of 4 percent on both a reported and comparable basis versus prior year (1)
- GAAP EPS was a loss of $1.27 compared to GAAP EPS of $0.04 in fourth quarter 2022; Adjusted EPS was $0.07 compared to $0.06 in the prior year
- GAAP EPS includes a loss of $1.24 for a non-cash goodwill impairment charge related to the Global Ecommerce segment and $0.08 for restructuring charges
- GAAP cash from operating activities was $94 million in the quarter and Free Cash Flow was $78 million
- Progressing well and on target with previously communicated cost reduction and restructuring efforts
- Cash and short-term investments were $623 million at year-end
Full Year Financial Highlights
- Revenue was $3.3 billion, a decrease of 8 percent on a reported basis and 3 percent on a comparable basis versus 2022 (1)
- GAAP EPS was a loss of $2.20 and Adjusted EPS was $0.04
- GAAP EPS includes a loss of $1.91 for non-cash goodwill impairment charges related to the Global Ecommerce segment and $0.26 for restructuring charges
- GAAP cash from operating activities was $79 million and Free Cash Flow was $22 million
- Reduced total debt by $59 million and refinanced our 2024 notes
(1) Comparable basis is defined in the “Use of Non-GAAP Measures” section
Earnings per share results are summarized in the table below:
|
Fourth Quarter |
|
|
2023 |
2022 |
GAAP EPS |
($1.27) |
$0.04 |
Restructuring Charges |
$0.08 |
$0.03 |
Goodwill Impairment |
$1.24 |
- |
Foreign Currency Loss on Intercompany Loans (2) |
$0.02 |
- |
Gain on Sale of Business |
- |
($0.01) |
Adjusted EPS (3) |
$0.07 |
$0.06 |
|
Full Year |
||
|
2023 |
2022 |
|
GAAP EPS |
($2.20) |
$0.21 |
|
Restructuring Charges |
$0.26 |
$0.08 |
|
Goodwill Impairment |
$1.91 |
- |
|
Foreign Currency Loss on Intercompany Loans (2) |
$0.02 |
- |
|
(Gain) / Loss on Debt Redemption |
($0.01) |
$0.02 |
|
Proxy Solicitation Fees |
$0.05 |
- |
|
Gain on Sale of Assets |
- |
($0.06) |
|
Gain on Sale of Business |
- |
($0.09) |
|
Adjusted EPS (3) |
$0.04 |
$0.15 |
|
|
|
|
|
|
|
||
(2) Going forward, we will be eliminating the effects of foreign currency on intercompany loans in calculating adjusted earnings.
(3) The sum of the earnings per share may not equal the totals due to rounding.
Business Segment Reporting
SendTech Solutions
SendTech Solutions offers physical and digital mailing and shipping technology solutions, financing, services, supplies and other applications for small and medium businesses, retail, enterprise, and government clients around the world to help simplify and save on the sending, tracking and receiving of letters, parcels and flats.
|
Fourth Quarter |
|||
($ millions) |
2023 |
2022 |
% Change Reported |
% Change Comparable Basis |
Revenue |
$327 |
$341 |
(4%) |
(5%) |
Adjusted Segment EBITDA |
$121 |
$113 |
7% |
|
Adjusted Segment EBIT |
$113 |
$106 |
7% |
|
|
Full Year |
|||
($ millions) |
2023 |
2022 |
% Change Reported |
% Change Comparable Basis |
Revenue |
$1,293 |
$1,360 |
(5%) |
(4%) |
Adjusted Segment EBITDA |
$435 |
$430 |
1% |
|
Adjusted Segment EBIT |
$405 |
$401 |
1% |
|
EBIT and EBIT margin expansion in the fourth quarter was driven by improvements in gross margin, strong execution, and cost reduction actions.
Fourth quarter revenue decline was driven by a reduction in our meter base, timing of our product lifecycle, and a tough prior year compare in our shipping products. Recurring revenue from our shipping solutions grew 17 percent versus prior year and helped offset the decline.
Presort Services
Presort Services provides sortation services that enable clients to qualify for USPS workshare discounts in First Class Mail, Marketing Mail, Marketing Mail Flats and Bound Printed Matter.
|
Fourth Quarter |
||
($ millions) |
2023 |
2022 |
% Change Reported |
Revenue |
$163 |
$158 |
3% |
Adjusted Segment EBITDA |
$43 |
$37 |
17% |
Adjusted Segment EBIT |
$34 |
$29 |
17% |
|
Full Year |
||
($ millions) |
2023 |
2022 |
% Change Reported |
Revenue |
$618 |
$602 |
3% |
Adjusted Segment EBITDA |
$145 |
$110 |
31% |
Adjusted Segment EBIT |
$111 |
$82 |
35% |
Presort delivered strong top and bottom-line performance. New sales and higher revenue per piece more than offset organic mail decline, driving revenue growth in the fourth quarter.
Adjusted Segment EBIT and EBITDA growth was driven by higher revenue and improved labor productivity from increased automation and process improvements.
Global Ecommerce
Global Ecommerce provides business to consumer logistics services for domestic and cross-border delivery, returns and fulfillment.
|
Fourth Quarter |
|||
($ millions) |
2023 |
2022 |
% Change Reported |
% Change Comparable Basis |
Revenue |
$381 |
$410 |
(7%) |
(7%) |
Adjusted Segment EBITDA |
($3) |
($6) |
47% |
|
Adjusted Segment EBIT |
($20) |
($23) |
14% |
|
|
Full Year |
|||
($ millions) |
2023 |
2022 |
% Change Reported |
% Change Comparable Basis |
Revenue |
$1,355 |
$1,576 |
(14%) |
(6%) |
Adjusted Segment EBITDA |
($67) |
($22) |
>(100%) |
|
Adjusted Segment EBIT |
($134) |
($100) |
(33%) |
|
|
|
|
|
|
Global Ecommerce experienced strong volumes during peak, processing 61 million domestic parcels in the fourth quarter, which is up 13 percent from fourth quarter 2022. Domestic parcel revenue grew 7 percent in the fourth quarter versus prior year, which was more than offset by a loss in revenue from cross-border.
Improved EBIT in the fourth quarter reflects the positive impact of cost actions, higher domestic parcel volumes, and increased network productivity. These benefits were partially offset by the decline in cross-border.
Full Year 2024 Guidance
We expect revenue growth to range from flat to a low-single digit decline and EBIT margins to remain relatively flat on a year-over-year basis.
We expect incremental benefit in 2024 from our company-wide cost reduction program as savings from actions taken in 2023 annualize and we further execute on the plan. We expect restoration of variable compensation and wage inflation to partially offset gains.
We also expect similar levels of capital expenditures in 2024 as in 2023 and interest expense to remain around the elevated rate incurred in Q4 2023.
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 of restructuring charges, 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. 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 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, 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. 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 higher interest rates and the potential for future interest rate increases on our cost of debt; 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 and twelve months ended December 31, 2023 and 2022, and consolidated balance sheets at December 31, 2023 and 2022 are attached.
| Pitney Bowes Inc. | ||||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||||
| (Unaudited; in thousands, except per share amounts) | ||||||||||||||||
| Three months ended December 31, | Twelve months ended December 31, | |||||||||||||||
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|||||
| Revenue: | ||||||||||||||||
| Business services | $ |
564,094 |
|
$ |
582,674 |
|
$ |
2,045,069 |
|
$ |
2,249,941 |
|
||||
| Support services |
|
100,280 |
|
|
112,572 |
|
|
410,734 |
|
|
438,191 |
|
||||
| Financing |
|
68,874 |
|
|
67,424 |
|
|
271,197 |
|
|
274,508 |
|
||||
| Equipment sales |
|
84,973 |
|
|
92,150 |
|
|
323,739 |
|
|
354,960 |
|
||||
| Supplies |
|
36,674 |
|
|
37,425 |
|
|
147,709 |
|
|
154,186 |
|
||||
| Rentals |
|
16,683 |
|
|
16,446 |
|
|
67,900 |
|
|
66,256 |
|
||||
| Total revenue |
|
871,578 |
|
|
908,691 |
|
|
3,266,348 |
|
|
3,538,042 |
|
||||
| Costs and expenses: | ||||||||||||||||
| Cost of business services |
|
477,545 |
|
|
500,732 |
|
|
1,756,616 |
|
|
1,934,206 |
|
||||
| Cost of support services |
|
32,486 |
|
|
37,366 |
|
|
137,676 |
|
|
148,829 |
|
||||
| Financing interest expense |
|
17,169 |
|
|
13,962 |
|
|
63,281 |
|
|
51,789 |
|
||||
| Cost of equipment sales |
|
57,454 |
|
|
65,662 |
|
|
223,757 |
|
|
253,843 |
|
||||
| Cost of supplies |
|
10,740 |
|
|
10,704 |
|
|
43,347 |
|
|
43,778 |
|
||||
| Cost of rentals |
|
4,755 |
|
|
6,053 |
|
|
19,614 |
|
|
25,105 |
|
||||
| Selling, general and administrative |
|
223,175 |
|
|
226,571 |
|
|
897,260 |
|
|
905,570 |
|
||||
| Research and development |
|
10,276 |
|
|
11,257 |
|
|
41,405 |
|
|
43,657 |
|
||||
| Restructuring charges |
|
18,965 |
|
|
6,043 |
|
|
61,585 |
|
|
18,715 |
|
||||
| Goodwill impairment |
|
220,585 |
|
|
- |
|
|
339,184 |
|
|
- |
|
||||
| Interest expense, net |
|
28,401 |
|
|
23,164 |
|
|
100,445 |
|
|
89,980 |
|
||||
| Other components of net pension and postretirement (income) cost |
|
(2,112 |
) |
|
1,079 |
|
|
(8,256 |
) |
|
4,308 |
|
||||
| Other income, net |
|
- |
|
|
(1,319 |
) |
|
(3,064 |
) |
|
(21,618 |
) |
||||
| Total costs and expenses |
|
1,099,439 |
|
|
901,274 |
|
|
3,672,850 |
|
|
3,498,162 |
|
||||
| (Loss) income before taxes |
|
(227,861 |
) |
|
7,417 |
|
|
(406,502 |
) |
|
39,880 |
|
||||
| (Benefit) provision for income taxes |
|
(4,025 |
) |
|
1,121 |
|
|
(20,875 |
) |
|
2,940 |
|
||||
| Net (loss) income | $ |
(223,836 |
) |
$ |
6,296 |
|
$ |
(385,627 |
) |
$ |
36,940 |
|
||||
| (Loss) earnings per share: | ||||||||||||||||
| Basic | $ |
(1.27 |
) |
$ |
0.04 |
|
$ |
(2.20 |
) |
$ |
0.21 |
|
||||
| Diluted | $ |
(1.27 |
) |
$ |
0.04 |
|
$ |
(2.20 |
) |
$ |
0.21 |
|
||||
| Weighted-average shares used in diluted earnings per share |
|
176,342 |
|
|
177,999 |
|
|
175,640 |
|
|
177,252 |
|
||||
| Pitney Bowes Inc. | ||||||||
| Consolidated Balance Sheets | ||||||||
| (Unaudited; in thousands) | ||||||||
| Assets | December 31, 2023 |
December 31, 2022 |
||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ |
601,053 |
|
$ |
669,981 |
|
||
| Short-term investments |
|
22,166 |
|
|
11,172 |
|
||
| Accounts and other receivables, net |
|
342,236 |
|
|
343,557 |
|
||
| Short-term finance receivables, net |
|
563,536 |
|
|
564,972 |
|
||
| Inventories |
|
70,053 |
|
|
83,720 |
|
||
| Current income taxes |
|
564 |
|
|
8,790 |
|
||
| Other current assets and prepayments |
|
98,802 |
|
|
115,824 |
|
||
| Total current assets |
|
1,698,410 |
|
|
1,798,016 |
|
||
| Property, plant and equipment, net |
|
383,628 |
|
|
420,672 |
|
||
| Rental property and equipment, net |
|
23,583 |
|
|
27,487 |
|
||
| Long-term finance receivables, net |
|
653,085 |
|
|
627,124 |
|
||
| Goodwill |
|
734,409 |
|
|
1,066,951 |
|
||
| Intangible assets, net |
|
62,250 |
|
|
77,944 |
|
||
| Operating lease assets |
|
309,958 |
|
|
296,129 |
|
||
| Noncurrent income taxes |
|
60,995 |
|
|
46,613 |
|
||
| Other assets |
|
352,360 |
|
|
380,419 |
|
||
| Total assets | $ |
4,278,678 |
|
$ |
4,741,355 |
|
||
| Liabilities and stockholders' (deficit) equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ |
881,969 |
|
$ |
907,083 |
|
||
| Customer deposits at Pitney Bowes Bank |
|
640,323 |
|
|
628,072 |
|
||
| Current operating lease liabilities |
|
60,069 |
|
|
52,576 |
|
||
| Current portion of long-term debt |
|
58,931 |
|
|
32,764 |
|
||
| Advance billings |
|
89,087 |
|
|
105,207 |
|
||
| Current income taxes |
|
6,523 |
|
|
2,101 |
|
||
| Total current liabilities |
|
1,736,902 |
|
|
1,727,803 |
|
||
| Long-term debt |
|
2,087,101 |
|
|
2,172,502 |
|
||
| Deferred taxes on income |
|
211,477 |
|
|
263,131 |
|
||
| Tax uncertainties and other income tax liabilities |
|
19,091 |
|
|
23,841 |
|
||
| Noncurrent operating lease liabilities |
|
277,981 |
|
|
265,696 |
|
||
| Other noncurrent liabilities |
|
314,702 |
|
|
227,729 |
|
||
| Total liabilities |
|
4,647,254 |
|
|
4,680,702 |
|
||
| Stockholders' (deficit) equity: | ||||||||
| Common stock |
|
270,338 |
|
|
323,338 |
|
||
| Retained earnings |
|
3,077,988 |
|
|
5,125,677 |
|
||
| Accumulated other comprehensive loss |
|
(851,245 |
) |
|
(835,564 |
) |
||
| Treasury stock, at cost |
|
(2,865,657 |
) |
|
(4,552,798 |
) |
||
| Total stockholders' (deficit) equity |
|
(368,576 |
) |
|
60,653 |
|
||
| Total liabilities and stockholders' (deficit) equity | $ |
4,278,678 |
|
$ |
4,741,355 |
|
||
| Pitney Bowes Inc. | ||||||||||||||||||||
| Business Segment Revenue | ||||||||||||||||||||
| (Unaudited; in thousands) | ||||||||||||||||||||
|
||||||||||||||||||||
| Three months ended December 31, | Twelve months ended December 31, | |||||||||||||||||||
|
2023 |
|
|
2022 |
% Change |
|
2023 |
|
2022 |
|
% Change |
|||||||||
| Global Ecommerce | ||||||||||||||||||||
| Revenue, as reported | $ |
381,020 |
|
$ |
409,725 |
(7 |
%) |
$ |
1,355,326 |
$ |
1,576,348 |
|
(14 |
%) |
||||||
| Impact of change in revenue presentation |
|
- |
|
(115,171 |
) |
|||||||||||||||
| Impact of Borderfree divestiture |
|
- |
|
(22,550 |
) |
|||||||||||||||
| Comparable revenue before currency |
|
381,020 |
|
|
409,725 |
(7 |
%) |
|
1,355,326 |
|
1,438,627 |
|
(6 |
%) |
||||||
| Impact of currency on revenue |
|
(955 |
) |
|
1,300 |
|||||||||||||||
| Comparable revenue | $ |
380,065 |
|
$ |
409,725 |
(7 |
%) |
$ |
1,356,626 |
$ |
1,438,627 |
|
(6 |
%) |
||||||
| Presort Services | ||||||||||||||||||||
| Revenue, as reported | $ |
163,139 |
|
$ |
157,714 |
3 |
% |
$ |
617,599 |
$ |
602,016 |
|
3 |
% |
||||||
| Sending Technology Solutions | ||||||||||||||||||||
| Revenue, as reported | $ |
327,419 |
|
$ |
341,252 |
(4 |
%) |
$ |
1,293,423 |
$ |
1,359,678 |
|
(5 |
%) |
||||||
| Impact of change in revenue presentation |
|
- |
|
(12,916 |
) |
|||||||||||||||
| Comparable revenue before currency |
|
327,419 |
|
|
341,252 |
(4 |
%) |
|
1,293,423 |
|
1,346,762 |
|
(4 |
%) |
||||||
| Impact of currency on revenue |
|
(1,745 |
) |
|
1,719 |
|||||||||||||||
| Comparable revenue | $ |
325,674 |
|
$ |
341,252 |
(5 |
%) |
$ |
1,295,142 |
$ |
1,346,762 |
|
(4 |
%) |
||||||
| Consolidated | ||||||||||||||||||||
| Revenue, as reported | $ |
871,578 |
|
$ |
908,691 |
(4 |
%) |
$ |
3,266,348 |
$ |
3,538,042 |
|
(8 |
%) |
||||||
| Impact of change in revenue presentation |
|
- |
|
(128,087 |
) |
|||||||||||||||
| Impact of Borderfree divestiture |
|
- |
|
(22,550 |
) |
|||||||||||||||
| Comparable revenue before currency |
|
871,578 |
|
|
908,691 |
(4 |
%) |
|
3,266,348 |
|
3,387,405 |
|
(4 |
%) |
||||||
| Impact of currency on revenue |
|
(2,700 |
) |
|
3,019 |
|||||||||||||||
| Comparable revenue | $ |
868,878 |
|
$ |
908,691 |
(4 |
%) |
$ |
3,269,367 |
$ |
3,387,405 |
|
(3 |
%) |
||||||
| Pitney Bowes Inc. | ||||||||||||||||||||||||
| Adjusted Segment EBIT & EBITDA | ||||||||||||||||||||||||
| (Unaudited; in thousands) | ||||||||||||||||||||||||
| Three months ended December 31, | ||||||||||||||||||||||||
2023 |
2022 |
% 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 | |||||||||||||||||
| Global Ecommerce | $ |
(19,700 |
) |
$ |
16,758 |
$ |
(2,942 |
) |
$ |
(22,906 |
) |
$ |
17,390 |
$ |
(5,516 |
) |
14 |
% |
47 |
% |
||||
| Presort Services |
|
34,454 |
|
|
8,470 |
|
42,924 |
|
|
29,386 |
|
|
7,438 |
|
36,824 |
|
17 |
% |
17 |
% |
||||
| Sending Technology Solutions |
|
113,435 |
|
|
7,661 |
|
121,096 |
|
|
105,535 |
|
|
7,330 |
|
112,865 |
|
7 |
% |
7 |
% |
||||
| Segment total | $ |
128,189 |
|
$ |
32,889 |
|
161,078 |
|
$ |
112,015 |
|
$ |
32,158 |
|
144,173 |
|
14 |
% |
12 |
% |
||||
| Reconciliation of Segment Adjusted EBITDA to Net (Loss) Income: | ||||||||||||||||||||||||
| Segment depreciation and amortization |
|
(32,889 |
) |
|
(32,158 |
) |
||||||||||||||||||
| Unallocated corporate expenses |
|
(65,169 |
) |
|
(62,748 |
) |
||||||||||||||||||
| Restructuring charges |
|
(18,965 |
) |
|
(6,043 |
) |
||||||||||||||||||
| Goodwill impairment |
|
(220,585 |
) |
|
- |
|
||||||||||||||||||
| Foreign currency loss on intercompany loans |
|
(5,761 |
) |
|
- |
|
||||||||||||||||||
| Gain on sale of businesses, including transaction costs |
|
- |
|
|
1,319 |
|
||||||||||||||||||
| Interest expense, net |
|
(45,570 |
) |
|
(37,126 |
) |
||||||||||||||||||
| Benefit (provision) for income taxes |
|
4,025 |
|
|
(1,121 |
) |
||||||||||||||||||
| Net (loss) income | $ |
(223,836 |
) |
$ |
6,296 |
|
||||||||||||||||||
| Twelve months ended December 31, | ||||||||||||||||||||||||
2023 |
2022 |
% change | ||||||||||||||||||||||
| EBIT (1) | D&A | EBITDA | EBIT (1) | D&A | EBITDA | EBIT | EBITDA | |||||||||||||||||
| Global Ecommerce | $ |
(133,733 |
) |
$ |
66,664 |
$ |
(67,069 |
) |
$ |
(100,308 |
) |
$ |
78,296 |
$ |
(22,012 |
) |
(33 |
%) |
>(100%) | |||||
| Presort Services |
|
110,912 |
|
|
33,642 |
|
144,554 |
|
|
82,430 |
|
|
28,039 |
|
110,469 |
|
35 |
% |
31 |
% |
||||
| Sending Technology Solutions |
|
405,347 |
|
|
30,005 |
|
435,352 |
|
|
400,909 |
|
|
29,489 |
|
430,398 |
|
1 |
% |
1 |
% |
||||
| Segment total | $ |
382,526 |
|
$ |
130,311 |
|
512,837 |
|
$ |
383,031 |
|
$ |
135,824 |
|
518,855 |
|
(0 |
%) |
(1 |
%) |
||||
| Reconciliation of Segment EBITDA to Net (Loss) Income: | ||||||||||||||||||||||||
| Segment depreciation and amortization |
|
(130,311 |
) |
|
(135,824 |
) |
||||||||||||||||||
| Unallocated corporate expenses |
|
(210,931 |
) |
|
(204,251 |
) |
||||||||||||||||||
| Restructuring charges |
|
(61,585 |
) |
|
(18,715 |
) |
||||||||||||||||||
| Goodwill impairment |
|
(339,184 |
) |
|
- |
|
||||||||||||||||||
| Gain (loss) on debt redemption |
|
3,064 |
|
|
(4,993 |
) |
||||||||||||||||||
| Foreign currency loss on intercompany loans |
|
(5,761 |
) |
|
- |
|
||||||||||||||||||
| Proxy solicitation fees |
|
(10,905 |
) |
|
- |
|
||||||||||||||||||
| Gain on sale of assets |
|
- |
|
|
14,372 |
|
||||||||||||||||||
| Gain on sale of businesses, including transaction costs |
|
- |
|
|
12,205 |
|
||||||||||||||||||
| Interest expense, net |
|
(163,726 |
) |
|
(141,769 |
) |
||||||||||||||||||
| Benefit (provision) for income taxes |
|
20,875 |
|
|
(2,940 |
) |
||||||||||||||||||
| Net (loss) income | $ |
(385,627 |
) |
$ |
36,940 |
|
||||||||||||||||||
(1) |
Adjusted segment EBIT excludes interest, taxes, general corporate expenses, restructuring charges, goodwill impairment, 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 December 31, | Twelve months ended December 31, | |||||||||||||||
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|||||
| Reconciliation of reported net (loss) income to adjusted EBIT and adjusted EBITDA | ||||||||||||||||
| Net (loss) income | $ |
(223,836 |
) |
$ |
6,296 |
|
$ |
(385,627 |
) |
$ |
36,940 |
|
||||
| (Benefit) provision for income taxes |
|
(4,025 |
) |
|
1,121 |
|
|
(20,875 |
) |
|
2,940 |
|
||||
| (Loss) income before taxes |
|
(227,861 |
) |
|
7,417 |
|
|
(406,502 |
) |
|
39,880 |
|
||||
| Restructuring charges |
|
18,965 |
|
|
6,043 |
|
|
61,585 |
|
|
18,715 |
|
||||
| Goodwill impairment |
|
220,585 |
|
|
- |
|
|
339,184 |
|
|
- |
|
||||
| (Gain) loss on debt redemption |
|
- |
|
|
- |
|
|
(3,064 |
) |
|
4,993 |
|
||||
| Foreign currency loss on intercompany loans |
|
5,761 |
|
|
- |
|
|
5,761 |
|
|
- |
|
||||
| Proxy solicitation fees |
|
- |
|
|
- |
|
|
10,905 |
|
|
- |
|
||||
| Gain on sale of assets |
|
- |
|
|
- |
|
|
- |
|
|
(14,372 |
) |
||||
| Gain on sale of businesses, including transaction costs |
|
- |
|
|
(1,319 |
) |
|
- |
|
|
(12,205 |
) |
||||
| Adjusted net income before tax |
|
17,450 |
|
|
12,141 |
|
|
7,869 |
|
|
37,011 |
|
||||
| Interest, net |
|
45,570 |
|
|
37,126 |
|
|
163,726 |
|
|
141,769 |
|
||||
| Adjusted EBIT |
|
63,020 |
|
|
49,267 |
|
|
171,595 |
|
|
178,780 |
|
||||
| Depreciation and amortization |
|
40,398 |
|
|
39,064 |
|
|
160,430 |
|
|
163,816 |
|
||||
| Adjusted EBITDA | $ |
103,418 |
|
$ |
88,331 |
|
$ |
332,025 |
|
$ |
342,596 |
|
||||
| Reconciliation of reported diluted (loss) earnings per share to adjusted diluted earnings per share | ||||||||||||||||
| Diluted (loss) earnings per share | $ |
(1.27 |
) |
$ |
0.04 |
|
$ |
(2.20 |
) |
$ |
0.21 |
|
||||
| Restructuring charges |
|
0.08 |
|
|
0.03 |
|
|
0.26 |
|
|
0.08 |
|
||||
| Goodwill impairment |
|
1.24 |
|
|
- |
|
|
1.91 |
|
|
- |
|
||||
| (Gain) loss on debt redemption |
|
- |
|
|
- |
|
|
(0.01 |
) |
|
0.02 |
|
||||
| Foreign currency loss on intercompany loans |
|
0.02 |
|
|
- |
|
|
0.02 |
|
|
- |
|
||||
| Proxy solicitation fees |
|
- |
|
|
- |
|
|
0.05 |
|
|
- |
|
||||
| Gain on sale of assets |
|
- |
|
|
- |
|
|
- |
|
|
(0.06 |
) |
||||
| Gain on sale of businesses, including transaction costs |
|
- |
|
|
(0.01 |
) |
|
- |
|
|
(0.09 |
) |
||||
| Adjusted diluted earnings per share (1) | $ |
0.07 |
|
$ |
0.06 |
|
$ |
0.04 |
|
$ |
0.15 |
|
||||
| (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 | $ |
93,921 |
|
$ |
166,754 |
|
$ |
79,468 |
|
$ |
175,983 |
|
||||
| Capital expenditures |
|
(25,280 |
) |
|
(27,307 |
) |
|
(102,878 |
) |
|
(124,840 |
) |
||||
| Restructuring payments |
|
9,291 |
|
|
3,645 |
|
|
34,443 |
|
|
15,406 |
|
||||
| Proxy solicitation fees paid |
|
- |
|
|
- |
|
|
10,905 |
|
|
- |
|
||||
| Transaction costs paid |
|
- |
|
|
379 |
|
|
- |
|
|
5,779 |
|
||||
| Free cash flow | $ |
77,932 |
|
$ |
143,471 |
|
$ |
21,938 |
|
$ |
72,328 |
|
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240131897055/en/
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Head of Communications
203.351.7233
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Phil Landler
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203.351.6141
