Pitney Bowes Announces Financial Results for Third Quarter of Fiscal Year 2024 and Progress on Strategic Initiatives
Pitney Bowes (NYSE: PBI) reported its Q3 FY2024 financial results and updated its full-year guidance. Key highlights include:
- Revenue: $499 million, down 1% year-over-year.
- GAAP EPS: Loss of $0.75, including a $1.42 per share loss from discontinued operations.
- Adjusted EPS: $0.21, up $0.05 from last year.
- Net Loss: $138 million, including a $261 million loss from discontinued operations.
- Adjusted EBIT: $103 million, a 22% increase year-over-year.
- GAAP Cash from Operations: $66 million.
- Free Cash Flow: $75 million, up $19 million year-over-year.
The company made progress on strategic initiatives, including exiting Global Ecommerce (GEC) and accelerating cost reduction, achieving $90 million in annualized cost savings to date. Full-year revenue is expected to decline at a low-single-digit rate, but full-year Adjusted EBIT guidance is raised to $355-$360 million.
Pitney Bowes (NYSE: PBI) ha riportato i risultati finanziari per il terzo trimestre dell'anno fiscale 2024 e ha aggiornato le previsioni per l'intero anno. I principali punti salienti includono:
- Ricavi: 499 milioni di dollari, in calo dell'1% rispetto all'anno precedente.
- GAAP EPS: Perdita di 0,75 $, inclusa una perdita di 1,42 $ per azione da operazioni cessate.
- EPS Rettificato: 0,21 $, in aumento di 0,05 $ rispetto all'anno scorso.
- Perdita Netta: 138 milioni di dollari, inclusa una perdita di 261 milioni di dollari da operazioni cessate.
- EBIT Rettificato: 103 milioni di dollari, con un incremento del 22% rispetto all'anno precedente.
- Cash from Operations GAAP: 66 milioni di dollari.
- Free Cash Flow: 75 milioni di dollari, in aumento di 19 milioni di dollari rispetto all'anno precedente.
L'azienda ha fatto progressi nelle iniziative strategiche, tra cui l'uscita dal Global Ecommerce (GEC) e l'accelerazione della riduzione dei costi, raggiungendo 90 milioni di dollari di risparmi sui costi annualizzati fino ad oggi. Si prevede che i ricavi dell'intero anno diminuiscano a un tasso a singola cifra bassa, ma la guida per l'EBIT rettificato dell'intero anno è stata innalzata a 355-360 milioni di dollari.
Pitney Bowes (NYSE: PBI) informó sus resultados financieros del tercer trimestre del año fiscal 2024 y actualizó su guía para todo el año. Los puntos clave incluyen:
- Ingresos: 499 millones de dólares, una disminución del 1% en comparación con el año anterior.
- GAAP EPS: Pérdida de 0,75 $, incluyendo una pérdida de 1,42 $ por acción de operaciones interrumpidas.
- EPS Ajustado: 0,21 $, un aumento de 0,05 $ respecto al año pasado.
- Pérdida Neta: 138 millones de dólares, incluyendo una pérdida de 261 millones de dólares de operaciones interrumpidas.
- EBIT Ajustado: 103 millones de dólares, un aumento del 22% interanual.
- Flujo de Efectivo de Operaciones GAAP: 66 millones de dólares.
- Flujo de Caja Libre: 75 millones de dólares, un aumento de 19 millones de dólares en comparación con el año anterior.
La empresa ha avanzado en iniciativas estratégicas, incluida la salida del Comercio Electrónico Global (GEC) y la aceleración de la reducción de costos, logrando 90 millones de dólares en ahorros anualizados hasta la fecha. Se espera que los ingresos totales del año disminuyan a una tasa de un solo dígito bajo, pero la guía de EBIT ajustado para todo el año se eleva a 355-360 millones de dólares.
핏니 보우스 (NYSE: PBI)는 2024 회계연도 3분기 재무 결과를 발표하고 연간 가이드를 업데이트했습니다. 주요 하이라이트는 다음과 같습니다:
- 수익: 4억 9천 9백만 달러, 전년 대비 1% 감소.
- GAAP EPS: 0.75 달러 손실, 중단된 운영으로 인한 주당 1.42 달러 손실 포함.
- 조정 EPS: 0.21 달러, 전년 대비 0.05 달러 증가.
- 순손실: 1억 3천 8백만 달러, 중단된 운영으로 인한 2억 6천 1백만 달러 손실 포함.
- 조정 EBIT: 1억 3천 백만 달러, 전년 대비 22% 증가.
- GAAP 영업 현금 흐름: 6천 6백만 달러.
- 자유 현금 흐름: 7천 5백만 달러, 전년 대비 1천 9백만 달러 증가.
회사는 글로벌 전자상거래(GEC)에서 탈퇴하고 비용 절감을 가속화하는 전략적 이니셔티브에서 진전을 보이며, 지금까지 연간 9천만 달러의 비용 절감을 달성했습니다. 연간 수익은 저조한 단일 자릿수 비율로 감소할 것으로 예상되지만, 조정 EBIT 가이드는 3억 5천만 달러에서 3억 6천만 달러로 상향 조정되었습니다.
Pitney Bowes (NYSE: PBI) a annoncé ses résultats financiers pour le troisième trimestre de l'exercice 2024 et a mis à jour ses prévisions pour l'année complète. Les points clés incluent :
- Revenus : 499 millions de dollars, en baisse de 1 % par rapport à l'année précédente.
- GAAP EPS : Perte de 0,75 $, incluant une perte de 1,42 $ par action provenant d'opérations cessées.
- EPS Ajusté : 0,21 $, en hausse de 0,05 $ par rapport à l'année dernière.
- Perte Nette : 138 millions de dollars, incluant une perte de 261 millions de dollars provenant d'opérations cessées.
- EBIT Ajusté : 103 millions de dollars, une augmentation de 22 % par rapport à l'année précédente.
- Flux de Trésorerie GAAP provenant des opérations : 66 millions de dollars.
- Flux de Trésorerie Libre : 75 millions de dollars, en hausse de 19 millions de dollars par rapport à l'année précédente.
L'entreprise a progressé dans ses initiatives stratégiques, notamment en se retirant du commerce électronique mondial (GEC) et en accélérant la réduction des coûts, atteignant 90 millions de dollars d'économies annuelles jusqu'à présent. Les revenus prévus pour l'ensemble de l'année devraient diminuer à un taux à un chiffre bas, mais la prévision de l'EBIT ajusté pour l'ensemble de l'année est portée à 355-360 millions de dollars.
Pitney Bowes (NYSE: PBI) hat seine Finanzzahlen für das dritte Quartal des Geschäftsjahres 2024 veröffentlicht und die Jahresprognosen aktualisiert. Die wichtigsten Highlights sind:
- Einnahmen: 499 Millionen US-Dollar, ein Rückgang von 1% im Vergleich zum Vorjahr.
- GAAP EPS: Verlust von 0,75 $, einschließlich eines Verlusts von 1,42 $ pro Aktie aus stillgelegten Betrieben.
- Bereinigtes EPS: 0,21 $, eine Steigerung um 0,05 $ im Vergleich zum Vorjahr.
- Nettoverlust: 138 Millionen US-Dollar, einschließlich eines Verlusts von 261 Millionen US-Dollar aus stillgelegten Betrieben.
- Bereinigtes EBIT: 103 Millionen US-Dollar, ein Anstieg von 22% im Vergleich zum Vorjahr.
- GAAP Cash from Operations: 66 Millionen US-Dollar.
- Free Cash Flow: 75 Millionen US-Dollar, ein Anstieg von 19 Millionen US-Dollar im Vergleich zum Vorjahr.
Das Unternehmen hat Fortschritte bei strategischen Initiativen erzielt, einschließlich des Ausstiegs aus dem Global Ecommerce (GEC) und der Beschleunigung der Kostenreduzierung, mit bis heute 90 Millionen US-Dollar an annualisierten Kosteneinsparungen. Die Gesamteinnahmen für das Jahr werden voraussichtlich niedrig sinken, aber die Prognose für das bereinigte EBIT wird auf 355 bis 360 Millionen US-Dollar angehoben.
- Adjusted EBIT increased by 22% year-over-year to $103 million.
- Adjusted EPS improved to $0.21, up by $0.05 from last year.
- Free Cash Flow rose by $19 million year-over-year to $75 million.
- Annualized cost savings reached $90 million, with a forecast of $150-$170 million.
- Full-year Adjusted EBIT guidance increased to $355-$360 million.
- Revenue decreased by 1% year-over-year to $499 million.
- GAAP EPS reported a loss of $0.75, including a $1.42 per share loss from discontinued operations.
- Net loss of $138 million, including a $261 million loss from discontinued operations.
Company Updates Full Year Guidance Following Continued Strong Business Performance and Accelerated Execution of Cost Initiatives
Third Quarter Financial Highlights
-
Revenue was
$499 million 1% year-over-year -
GAAP EPS was a loss of
$0.75 $1.42 -
Adjusted EPS was
$0.21 $0.05 -
Net loss of
$138 million $261 million -
Adjusted EBIT was
$103 million 22% versus the prior year -
GAAP cash from operating activities was
$66 million -
Free Cash Flow was
$75 million $19 million $29 million
Update on Strategic Initiatives
-
GEC Exit: The wind-down process is progressing as expected and should be largely complete by year-end. The Company remains focused on resolving legacy obligations in the most efficient manner possible and continues to target approximately
$150 million $136 million
-
Cost Rationalization: The Company accelerated the execution of its cost reduction initiatives and, as of the end of the third quarter, had removed
$90 million $150 million $170 million
-
Cash Optimization: The Company has largely completed its overseas cash repatriation, bringing
$117 million U.S. year-to-date. Additionally, the GEC wind-down is stabilizing cash flows and, once complete, is estimated to result in a reduction of the amount of unrestricted cash the Company maintains by approximately$100 million $31 million $100 million
-
Balance Sheet Deleveraging: Progress on exiting GEC, reducing non-essential expenses, and optimizing cash positions has positioned the Company to pay down debt in the coming quarters. The Company has more than
$100 million
Lance Rosenzweig, Chief Executive Officer and a member of the Board, commented:
“Our positive third quarter results reflect the sustained strength of our core, cash-generating businesses. Pitney Bowes achieved
We also continued to build on our momentum with respect to our four previously announced strategic initiatives. We are working on an accelerated basis to complete these initiatives and solidify the turnaround of this storied brand. As we approach the end of 2024, we remain committed to increasing profitability, ensuring that we are effectively managing our capital and building a solid foundation for improved financial strength in 2025 – while continually exploring all paths to maximizing value for shareholders.”
Earnings per share results are summarized in the table below:
Third Quarter |
||
2024 |
2023 |
|
GAAP EPS |
( |
( |
Discontinued Operations |
|
|
Restructuring Charges |
|
|
Foreign Currency Gain on Intercompany Loans |
|
- |
Strategic Review Costs (1) |
|
- |
Asset Impairment |
|
- |
Charges in connection with GEC Restructuring |
|
- |
Tax benefit from affiliate reorganization |
( |
- |
Loss on debt refinancing |
|
- |
Adjusted EPS |
|
|
(1) |
Strategic Review Costs include legal, accounting and other expenses related to the strategic review of GEC, including preparation for a potential GEC exit. |
Discontinued Operations
As a result of the Global Ecommerce exit process announced last quarter, a majority of the Global Ecommerce reporting segment is now reported as discontinued operations in the Condensed Consolidated Financial Statements. Prior periods have been recast to conform to the current period presentation.
The remaining portion of the Global Ecommerce reportable segment that did not qualify for discontinued operations treatment is now reported in an "Other" category. Included in this category are operations that the Company is currently in the process of exiting and a smaller continuing operation.
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.
|
Third Quarter |
||
($ millions) |
2024 |
2023 |
% Change
|
Revenue |
|
|
( |
Adjusted Segment EBITDA |
|
|
|
Adjusted Segment EBIT |
|
|
|
Revenue decline was driven by a decrease in the Company’s mailing install base and near-term headwinds related to the Company’s product migration. Shipping-related revenue grew
Simplification and cost reduction initiatives drove higher Adjusted Segment EBITDA and EBIT. Mail and shipping revenues and EBIT were negatively impacted by efforts to migrate customers from arrangements that recognize revenue upfront to SaaS type arrangements that drive recurring revenue and profit.
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.
|
Third Quarter |
||
($ millions) |
2024 |
2023 |
% Change
|
Revenue |
|
|
|
Adjusted Segment EBITDA |
|
|
|
Adjusted Segment EBIT |
|
|
|
Presort sorted 3.7 billion pieces of mail in the quarter, growing volumes by
Higher revenue per piece, continued labor and transportation cost productivity, and cost reductions drove growth in Adjusted Segment EBITDA and EBIT.
Updated Full Year 2024 Guidance
The Company now expects full-year revenue to decline at a low-single-digit rate.
The Company is also raising its full-year Adjusted EBIT guidance to
Conference Call and Webcast
Management of Pitney Bowes will discuss the Company’s results in a broadcast over the Internet today at 5:00 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 technology-driven company that provides SaaS shipping solutions, mailing innovation, and financial services to clients around the world – including more than 90 percent of the Fortune 500. Small businesses to large enterprises, and government entities rely on Pitney Bowes to reduce the complexity of sending mail and parcels. For the latest news, corporate announcements, and financial results, visit www.pitneybowes.com/us/newsroom. For additional information, visit Pitney Bowes at www.pitneybowes.com.
Adjusted Segment EBIT
Adjusted Segment EBIT is the primary measure of profitability and operational performance at the segment level. Adjusted Segment EBIT includes segment revenues and related costs and expenses attributable to the segment, but excludes interest, taxes, restructuring charges, goodwill and asset impairment charges, corporate expenses, and other items not allocated to a business segment. We also report Adjusted Segment EBITDA as an additional useful measure of segment profitability and operational performance, which is calculated as Adjusted Segment EBIT plus depreciation and amortization expense of the segment.
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 revenue growth on a constant currency basis, adjusted earnings before interest and taxes (Adjusted EBIT), adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA), adjusted earnings per share (Adjusted EPS) and free cash flow.
Revenue growth is presented on a constant currency basis to exclude the impact of changes in foreign currency exchange rates since the prior period under comparison. Constant currency is calculated by converting the current period non-
Adjusted EBIT, Adjusted EBITDA and Adjusted EPS exclude the impact of restructuring charges, goodwill and asset impairment charges, foreign currency gains and losses on intercompany loans, certain costs associated with the Ecommerce Restructuring, gains and losses related to acquisitions and dispositions, gains and losses on debt redemptions and other unusual items that we believe are not indicative to our core business operations.
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.
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 https://www.investorrelations.pitneybowes.com/.
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
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 nine months ended September 30, 2024 and 2023, and consolidated balance sheets at September 30, 2024 and December 31, 2023 are attached. We have not provided a reconciliation of our future expectations as to Adjusted EBIT as such reconciliation is not available without unreasonable efforts.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107086529/en/
For Investors:
Alex Brown
investorrelations@pb.com
For Media:
Longacre Square Partners
Joe Germani
jgermani@longacresquare.com
Source: Pitney Bowes Inc.
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