[Part I - Financial Information](index=2&type=section&id=Part%20I%20-%20Financial%20Information) [Financial Statements](index=2&type=section&id=Item%201%3A%20Financial%20Statements) The Q1 2024 financial statements show total revenue of $830.5 million, a net loss of $2.9 million, and a total stockholders' deficit of $392.4 million, with improved operating cash flow [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2024 saw total revenue of $830.5 million, a $9.7 million income before taxes, and a narrowed net loss of $2.9 million, driven by reduced SG&A expenses Q1 2024 vs Q1 2023 Statement of Operations (in thousands) | Financial Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | **$830,509** | **$834,538** | **(0.5%)** | | Business services | $535,597 | $523,491 | +2.3% | | Support services | $96,333 | $105,284 | (8.5%) | | Equipment sales | $77,403 | $82,610 | (6.3%) | | **Total Costs and Expenses** | **$820,835** | **$845,525** | **(2.9%)** | | Selling, general and administrative | $216,197 | $242,120 | (10.7%) | | **Income (loss) before taxes** | **$9,674** | **($10,987)** | **Improved** | | **Net Loss** | **($2,885)** | **($7,737)** | **Improved** | | **Diluted Net Loss Per Share** | **($0.02)** | **($0.04)** | **Improved** | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets were $4.10 billion, total liabilities $4.50 billion, and total stockholders' deficit widened to $392.4 million Balance Sheet Summary (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | **$1,582,098** | **$1,691,917** | | Cash and cash equivalents | $516,092 | $601,053 | | Goodwill | $729,291 | $734,409 | | **Total Assets** | **$4,103,047** | **$4,272,185** | | **Total Current Liabilities** | **$1,625,420** | **$1,730,409** | | Long-term debt | $2,076,054 | $2,087,101 | | **Total Liabilities** | **$4,495,402** | **$4,640,761** | | **Total Stockholders' Deficit** | **($392,355)** | **($368,576)** | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2024 saw improved net cash used in operations at $12.5 million, with total cash and equivalents decreasing by $85.0 million to $516.1 million Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash from operating activities | ($12,525) | ($39,714) | | Net cash from investing activities | ($11,841) | ($41,413) | | Net cash from financing activities | ($58,433) | ($79,442) | | **Change in cash and cash equivalents** | **($84,961)** | **($158,220)** | | **Cash and cash equivalents at end of period** | **$516,092** | **$511,761** | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail segment reporting changes, a $60-$70 million restructuring plan with $62 million incurred, $2.13 billion total debt, and a high 129.8% effective tax rate - Effective January 1, 2024, the company moved its digital delivery services offering from the Global Ecommerce segment to the SendTech Solutions segment, with prior period financials recast to reflect this change[40](index=40&type=chunk) - The 2023 worldwide restructuring plan is expected to cost **$60-$70 million** and be substantially complete by mid-2024, with total charges reaching **$62 million** as of Q1 2024, including **$4.3 million** charged in the current quarter[100](index=100&type=chunk)[101](index=101&type=chunk) - Total debt as of March 31, 2024, was **$2.13 billion**, and the company was in compliance with its financial covenants, including a maximum leverage ratio and a minimum interest coverage ratio[104](index=104&type=chunk) - The effective tax rate for Q1 2024 was an unusually high **129.8%**, compared to 29.6% in Q1 2023, attributed to minimal consolidated pre-tax income combined with unfavorable tax adjustments related to U.S. taxation of foreign operations[109](index=109&type=chunk) [Management's Discussion and Analysis (MD&A)](index=28&type=section&id=Item%202%3A%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management forecasts flat to low single-digit revenue decline for 2024, with $75-$85 million in restructuring savings, and Q1 2024 revenue at $830.5 million with improved pre-tax income [Outlook](index=29&type=section&id=Outlook) The 2024 outlook projects flat to low single-digit revenue decline, stable EBIT margins, segment-specific trends, and restructuring savings offset by higher costs - 2024 Outlook: - **Consolidated Revenue:** Flat to a low single-digit decline - **EBIT Margins:** Relatively flat compared to 2023 - **SendTech Solutions:** Revenue and profit declines expected - **Presort Services:** Revenue, margin, and profit improvement expected - **Global Ecommerce:** Revenue growth in domestic parcels, with margin and profit improvements[125](index=125&type=chunk) - The company expects annualized cost savings from its restructuring program to exceed the **$75-$85 million** target by the end of 2024, though these savings are expected to be significantly offset by higher interest, tax, and restored variable compensation costs[125](index=125&type=chunk) [Overview of Consolidated Results](index=29&type=section&id=Overview%20of%20Consolidated%20Results) Q1 2024 total revenue decreased slightly to $830.5 million, while total costs fell by $25 million, primarily due to reduced SG&A, improving net loss - Total costs and expenses decreased by **$25 million** year-over-year, mainly due to a **$26 million** reduction in SG&A from lower salary expenses, foreign currency gains, and other cost-saving initiatives[128](index=128&type=chunk) - Net interest expense increased by **$7 million** compared to the prior year, primarily due to higher interest rates[128](index=128&type=chunk) [Segment Results](index=30&type=section&id=Segment%20Results) Q1 2024 segment results show Global Ecommerce EBIT loss widening, Presort Services EBIT up 50% on 7% revenue growth, and SendTech Solutions EBIT up 6% Segment Performance - Q1 2024 vs Q1 2023 (in thousands) | Segment | Revenue Q1 2024 | Revenue Q1 2023 | Adjusted EBIT Q1 2024 | Adjusted EBIT Q1 2023 | | :--- | :--- | :--- | :--- | :--- | | Global Ecommerce | $333,265 | $340,641 | ($35,427) | ($33,172) | | Presort Services | $169,807 | $158,902 | $40,329 | $26,905 | | SendTech Solutions | $327,437 | $334,995 | $101,278 | $95,637 | | **Total Adjusted Segment EBIT** | | | **$106,180** | **$89,370** | - **Global Ecommerce:** Revenue fell **$7 million** due to a **$30 million** decline in cross-border services, partially offset by a **$23 million** increase in domestic parcel delivery revenue, with gross margin decreasing significantly from **4.3% to 1.0%**[132](index=132&type=chunk)[133](index=133&type=chunk) - **Presort Services:** Revenue grew **$11 million** despite a **2%** volume decrease, driven by pricing actions, and gross margin expanded from **29.2% to 36.8%** due to revenue growth and automation investments[135](index=135&type=chunk)[136](index=136&type=chunk) - **SendTech Solutions:** Revenue declined **$8 million**, as lower support services and equipment sales were partially offset by a **$9 million** increase in business services revenue (shipping subscriptions and digital delivery), with gross margin percentage improving from **65.0% to 66.6%**[138](index=138&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains $538 million in liquidity and a $500 million credit facility, is debt covenant compliant, and improved operating cash flow despite continued net use - The company maintains liquidity with **$538 million** in cash and short-term investments and an undrawn **$500 million** secured revolving credit facility[142](index=142&type=chunk)[144](index=144&type=chunk) - The company is in compliance with its debt covenants, but the maximum leverage ratio covenant becomes more restrictive on June 30, 2024 (decreasing from **4.25x to 4.0x**), and the minimum interest coverage ratio becomes more restrictive on March 31, 2025 (increasing from **1.75x to 2.0x**)[143](index=143&type=chunk) - Quarterly dividends of **$0.05 per share**, totaling **$9 million**, were paid, with future dividend payments capped by the terms of the March 2028 note purchase agreement[148](index=148&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=35&type=section&id=Item%203%3A%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material changes were reported regarding market risk disclosures from the 2023 Annual Report - There were no material changes to the disclosures made in the company's 2023 Annual Report regarding market risk[150](index=150&type=chunk) [Controls and Procedures](index=35&type=section&id=Item%204%3A%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting - The Interim CEO and Interim CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2024[152](index=152&type=chunk)[153](index=153&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, such controls[152](index=152&type=chunk) [Part II - Other Information](index=36&type=section&id=Part%20II%20-%20Other%20Information) [Legal Proceedings](index=36&type=section&id=Item%201%3A%20Legal%20Proceedings) The company is involved in various litigations, with management expecting no material adverse effect on the business - The company states that the final outcome of outstanding legal matters is not expected to have a material adverse effect on its business (See Note 13)[110](index=110&type=chunk)[155](index=155&type=chunk) [Risk Factors](index=36&type=section&id=Item%201A%3A%20Risk%20Factors) No material changes to risk factors from 2023 Annual Report, but a new risk highlights uncertainties from recent senior management and Board changes - A new risk factor was added concerning recent changes in senior management and the Board of Directors, which could create uncertainty and negatively impact business operations, employee retention, and access to capital[156](index=156&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202%3A%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No common stock repurchases occurred in Q1 2024, with a remaining authorization of $3 million - No common stock was repurchased in Q1 2024, and the company has a remaining authorization to purchase up to **$3 million** of its common stock[157](index=157&type=chunk) [Exhibits](index=37&type=section&id=Item%206%3A%20Exhibits) Filed exhibits include CEO/CFO certifications, a Cooperation Agreement with Hestia Capital, and various XBRL data files - Exhibits filed with the 10-Q include CEO/CFO certifications, a Cooperation Agreement with Hestia Capital Partners, and various XBRL data files[159](index=159&type=chunk)

Pitney Bowes Inc. (NYSE:PBI) Q1 2024 Earnings Conference Call May 2, 2024 8:00 AM ET Company Participants Philip Landler - Vice President of Investor Relations and Global Strategy Jason Dies - Interim Chief Executive Officer John Witek - Interim Chief Financial Officer Conference Call Participants Anthony Lebiedzinski - Sidoti & Company, LLC Matthew Swope - Robert W. Baird & Co. Will Brunemann - Northcoast Research Peter Sakon - CreditSights Inc. Operator Good morning, and welcome to the Pitney Bowes First ...

Pitney Bowes (PBI) came out with a quarterly loss of $0.01 per share versus the Zacks Consensus Estimate of a loss of $0.04. This compares to loss of $0.01 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 75%. A quarter ago, it was expected that this mailing equipment and software company would post earnings of $0.03 per share when it actually produced earnings of $0.07, delivering a surprise of 133.33%.Over the last four quart ...

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 ...

[Form 8-K Current Report](index=1&type=section&id=Form%208-K%20Current%20Report) [Item 2.02 Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) Pitney Bowes Inc. announced its first-quarter financial results for the period ended March 31, 2024, via a press release filed on May 2, 2024, including consolidated income statements, balance sheets, and adjusted results reconciliation - The company issued a press release on May 2, 2024, detailing its financial results[3](index=3&type=chunk) - The financial results cover the three-month periods ending March 31, 2024, and March 31, 2023[3](index=3&type=chunk) - The release includes consolidated balance sheets as of March 31, 2024, and December 31, 2023[3](index=3&type=chunk) [Item 9.01 Financial Statements and Exhibits](index=2&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This section details the exhibits accompanying the Form 8-K, primarily the financial results press release (Exhibit 99.1) and the Inline XBRL formatted cover page (Exhibit 104) - Exhibit 99.1: Press release from Pitney Bowes Inc. dated May 2, 2024[3](index=3&type=chunk) - Exhibit 104: The cover page of the Form 8-K, formatted in Inline XBRL[3](index=3&type=chunk) [Signatures](index=3&type=section&id=Signatures) The report was officially signed and authorized on May 2, 2024, by Joseph R. Catapano, Vice President and Chief Accounting Officer of Pitney Bowes Inc - The report was signed on behalf of Pitney Bowes Inc. by Joseph R. Catapano, Vice President, Chief Accounting Officer[4](index=4&type=chunk) - Date of signature: May 2, 2024[4](index=4&type=chunk)

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 ...