Pitney Bowes Inc. (NYSE:PBI) Q1 2022 Earnings Conference Call April 28, 2022 8:00 AM ET Company Participants Marc Lautenbach - President and Chief Executive Officer Ana Chadwick - Executive Vice President and Chief Financial Officer Ned Zachar - Vice President, Investor Relations Conference Call Participants Ananda Baruah - Loop Capital Kartik Mehta - Northcoast Research Jeff Harlib - Barclays Operator Good morning, and welcome to the Pitney Bowes First Quarter Earnings 2022 Results Conference Call. Your li ...

Business Overview - Pitney Bowes has been in operation for 101 years[4] - In 2021, the company processed 175 million domestic ecommerce parcels through 17 warehouses[4] - The company's 40+ Presort sorting facilities processed over 17 billion pieces of mail in 2021[4,7] - The company has an installed base of approximately 1 million postage meters[4,10] Financial Performance - The company's 2021 revenue was $3.7 billion[4] - The company's 2021 EBITDA was $366 million[4] - The company's 2021 free cash flow was $154 million[4] - Presort Services accounted for 46% of the company's 2021 revenue, generating $1.70 billion[5] - SendTech accounted for 16% of the company's 2021 revenue, generating $573 million[5] - Global Ecommerce accounted for 38% of the company's 2021 revenue, generating $1.40 billion[5]

Pitney Bowes Inc. (NYSE:PBI) Q4 2021 Results Earnings Conference Call February 1, 2022 8:00 AM ET Company Participants Marc Lautenbach - President and Chief Executive Officer Ana Chadwick - Executive Vice President and Chief Financial Officer Ned Zachar - Vice President, Investor Relations Conference Call Participants Allen Klee - Maxim Group Kartik Mehta - Northcoast Research Ananda Baruah - Loop Capital Operator Good morning, and welcome to the Pitney Bowes Fourth Quarter 2021 and Full Year Earnings Confe ...

Part I - Financial Information [Financial Statements](index=3&type=section&id=Item%201%3A%20Financial%20Statements) Presents unaudited Condensed Consolidated Financial Statements for Pitney Bowes Inc., including Statements of Operations, Balance Sheets, and Cash Flows, with detailed notes [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Reports Q3 2021 revenue of $875.4 million and net income of $9.1 million, with nine-month revenue at $2.69 billion and a net loss of $2.6 million Key Operating Results (in thousands, except per share data) | Metric | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $875,449 | $891,898 | $2,689,849 | $2,525,658 | | **Income (loss) from continuing operations** | $8,495 | $10,773 | $1,716 | $(208,071) | | **Net Income (Loss)** | $9,067 | $11,389 | $(2,618) | $(200,423) | | **Diluted EPS** | $0.05 | $0.07 | $(0.02) | $(1.17) | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Details total assets of $4.95 billion and total liabilities of $4.91 billion as of September 30, 2021, with a decrease in both from year-end 2020 Balance Sheet Summary (in thousands) | Account | September 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total Current Assets** | $1,843,258 | $2,106,923 | | **Total Assets** | $4,954,614 | $5,220,137 | | **Total Current Liabilities** | $1,688,762 | $1,870,460 | | **Total Liabilities** | $4,905,951 | $5,153,742 | | **Total Stockholders' Equity** | $48,663 | $66,395 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Reports net cash from operating activities of $216.2 million and a $192.3 million decrease in cash for the nine months ended September 30, 2021 Cash Flow Summary for Nine Months Ended Sep 30 (in thousands) | Activity | 2021 | 2020 | | :--- | :--- | :--- | | **Net cash from operating activities** | $216,174 | $191,166 | | **Net cash from investing activities** | $(111,686) | $(115,741) | | **Net cash from financing activities** | $(291,849) | $(197,908) | | **Change in cash and cash equivalents** | $(192,301) | $(125,265) | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed disclosures on accounting policies, segment revenue, debt refinancing, and subsequent events, including a facility sale and an acquisition - The company operates as a global shipping and mailing provider, offering technology, logistics, and financial services[14](index=14&type=chunk) - The cash flow statement for September 30, 2020, was revised to reclassify certain cash flows, with no material impact on prior statements[16](index=16&type=chunk) - Subsequent to quarter-end, the company agreed to sell a facility for approximately **$50 million** and acquired CrescoData for **$15 million** cash[133](index=133&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202%3A%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2021 financial results, noting a 2% revenue decline driven by Global Ecommerce and SendTech, partially offset by Presort Services, and details 2021 debt refinancing activities [Overview](index=35&type=section&id=MD%26A%20Overview) Reviews Q3 2021 performance, noting a 2% total revenue decrease to $875.4 million, driven by declines in Global Ecommerce and SendTech, partially offset by Presort Services Q3 2021 Revenue by Segment vs. Q3 2020 (in thousands) | Segment | Q3 2021 Revenue | Q3 2020 Revenue | Actual % Change | | :--- | :--- | :--- | :--- | | **Global Ecommerce** | $398,011 | $409,981 | (3)% | | **Presort Services** | $139,296 | $127,705 | 9% | | **SendTech Solutions** | $338,142 | $354,212 | (5)% | | **Total** | **$875,449** | **$891,898** | **(2)%** | Q3 2021 Segment EBIT vs. Q3 2020 (in thousands) | Segment | Q3 2021 EBIT | Q3 2020 EBIT | % Change | | :--- | :--- | :--- | :--- | | **Global Ecommerce** | $(20,950) | $(19,757) | (6)% | | **Presort Services** | $21,062 | $14,481 | 45% | | **SendTech Solutions** | $98,950 | $112,599 | (12)% | | **Total Segment EBIT** | **$99,062** | **$107,323** | **(8)%** | [Outlook](index=36&type=section&id=MD%26A%20Outlook) Provides full-year 2021 revenue growth expectations in the low to mid-single-digit range, acknowledging ongoing uncertainties from COVID-19 and supply chain issues - The company anticipates full-year 2021 revenue growth in the **low to mid-single-digit range**[142](index=142&type=chunk) - Ongoing supply chain issues and their impact on client demand are noted as key uncertainties[141](index=141&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=MD%26A%20Liquidity%20and%20Capital%20Resources) Details $743 million in cash and equivalents, sufficient liquidity for 12 months, and significant 2021 debt refinancing activities to extend maturities - Cash, cash equivalents, and short-term investments totaled **$743 million** at quarter-end[170](index=170&type=chunk) - In 2021, the company issued **$400 million** in notes due 2027, **$350 million** in notes due 2029, and a new **$450 million** term loan due 2028, using proceeds to repay earlier debt maturities[175](index=175&type=chunk) - Cash from operating activities for the first nine months of 2021 was **$216 million**, an increase of **$25 million** from the prior year[172](index=172&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203%3A%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Reports no material changes to market risk disclosures from the 2020 Annual Report on Form 10-K - There were no material changes to the disclosures about market risk from the company's 2020 Annual Report[178](index=178&type=chunk) [Controls and Procedures](index=42&type=section&id=Item%204%3A%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of September 30, 2021, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that disclosure controls and procedures were effective as of the end of the reporting period[180](index=180&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter[180](index=180&type=chunk) Part II - Other Information [Legal Proceedings](index=43&type=section&id=Item%201%3A%20Legal%20Proceedings) The company is involved in various legal actions, with management assessing no material impact on financial position, results, or cash flows - Management believes potential liability from pending legal actions will not materially affect the company's financial position, results of operations, or cash flows[120](index=120&type=chunk)[183](index=183&type=chunk) [Risk Factors](index=43&type=section&id=Item%201A%3A%20Risk%20Factors) Reports no material changes to the risk factors previously identified in the 2020 Annual Report on Form 10-K - There were no material changes to the risk factors identified in the 2020 Annual Report[184](index=184&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202%3A%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details Board authorization for up to $16 million in common stock repurchases, with no repurchases made during 2021 - The company has authorization to repurchase up to **$16 million** of its common stock, but no repurchases were made during 2021[184](index=184&type=chunk) [Exhibits](index=44&type=section&id=Item%206%3A%20Exhibits) Lists exhibits filed with Form 10-Q, including indentures for new debt, CEO and CFO certifications, and Inline XBRL financial data files - Exhibits filed include indentures for the **6.875% Senior Notes due 2027** and **7.250% Senior Notes due 2029**[186](index=186&type=chunk) - Certifications from the CEO and CFO pursuant to SEC rules and the Sarbanes-Oxley Act are included as exhibits[186](index=186&type=chunk)

Financial Data and Key Metrics Changes - Total revenue for Q3 2021 was $875 million, a decline of 2% from the prior year, but a growth of over 10% compared to Q3 2019 [13][14] - Adjusted EPS was $0.08, while GAAP EPS was $0.05, reflecting a $0.02 net tax benefit offset by a $0.03 charge related to a pricing assessment in Global Ecommerce [14] - Free cash flow was $30 million, down from the prior year, largely due to higher CapEx and changes in working capital [14][15] - Total debt decreased by approximately $225 million since year-end 2020, totaling $2.3 billion [15] Business Line Data and Key Metrics Changes - Ecommerce revenue declined 4% to $398 million, but was up over 40% compared to Q3 2019 [17] - Presort revenue increased by 9% to $139 million, marking the third consecutive quarter of positive revenue growth [21] - SendTech revenue was $338 million, down 5% from the prior year, impacted by prior year investment gains [23] Market Data and Key Metrics Changes - Domestic Parcel volumes in Ecommerce were 41 million, down from the prior year but up from 2019 levels [17] - The company signed over 130 client deals in the quarter, bundling additional services with 40% of those signings [18] Company Strategy and Development Direction - The company is focusing on improving service levels and profitability through automation and a more permanent workforce [20][48] - A strategic shift towards subscription models is being implemented, which may depress short-term revenue but is expected to benefit long-term growth [9][24] - The company is enhancing its Ecommerce network and productivity initiatives, with significant investments in CapEx [15][25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges due to supply chain disruptions but expressed confidence in the company's positioning for the fourth quarter and beyond [11][25] - The company expects annual revenue growth in the low to mid-single-digit range and adjusted EPS in the range of $0.35 to $0.42 [25] - Management highlighted a strong demand environment across business lines, particularly in SendTech and Presort [63] Other Important Information - The company has improved end-to-end cycle times by 25% since the beginning of the year [10] - Significant improvements in gross margin were noted despite higher labor and transportation costs [18] Q&A Session Summary Question: Can you discuss the levers for margin improvement in Global Ecommerce? - Management indicated that small incremental improvements in labor and transportation could lead to significant margin gains, with a focus on a more permanent workforce and automation [29][30] Question: Can you explain the $8 million charge related to pricing in Global Ecommerce? - The charge was due to lower-than-anticipated volumes compared to growth targets set in a contract with a vendor, attributed to the high volumes experienced during COVID [32][33] Question: What aspects of transportation are being insourced? - The company is insourcing transportation primarily from sortation centers to the postal network, reducing reliance on the spot market and improving service levels [35][36] Question: What are the expectations for December quarter volumes? - Management expects December quarter volumes to be down year-over-year due to careful volume selection to maintain service levels and economic viability [39] Question: How flexible is the pricing with customers? - Pricing adjustments occur on a predictable rhythm, with annual price increases and peak pricing implemented during the holiday season [44] Question: What is the outlook for Wheeler Financial? - Wheeler Financial put $4 million to work during the quarter, with a total of $44 million life to date, and management sees significant growth opportunities in providing working capital for shipping [60][61]

Pitney Bowes Inc. (NYSE:PBI) Q2 2021 Earnings Conference Call August 3, 2021 8:00 AM ET Company Participants Adam David - Vice President-Investor Relations and Financial Planning Marc Lautenbach - President and Chief Executive Officer Ana Maria Chadwick - Executive Vice President and Chief Financial Officer Conference Call Participants Ananda Baruah - Loop Capital Shannon Cross - Cross Research Allen Klee - Maxim Group Anthony Lebiedzinski - Sidoti & Company Operator Good morning, and welcome to the Pitney ...

Financial Performance - The company reported revenue of $899 million, a 7% increase compared to the prior year, or 6% on a constant currency basis[11] - GAAP and Adjusted EPS were $011, which includes a $003 tax benefit from a UK tax legislation change[11] - GAAP Cash from Operations was $79 million and Free Cash Flow was $87 million[11] Segment Results - Global Ecommerce revenue increased by 5% to $418 million, with EBITDA turning positive[18, 24] - Presort Services revenue grew by 14% to $135 million, with improved EBIT margins[18, 27] - SendTech Solutions revenue increased by 8% to $346 million, with EBIT dollars growing for the third consecutive quarter[18, 29] Future Expectations - The company expects annual revenue to grow in the low-to-mid single digit range[37] - Adjusted EPS is expected to grow over the prior year, with a range of $035 to $042, driven by Global Ecommerce[37] - Lower free cash flow is expected compared to the prior year due to certain non-recurring items[37]