Pitney Bowes(US:PBI)2022-08-01 16:00Financial Performance - Total revenue for Q2 2022 was $871.5 million, a decrease of 3.1% compared to $899.2 million in Q2 2021[4] - Net income for Q2 2022 was $4.3 million, down from $19.9 million in Q2 2021, representing a decline of 78.3%[4] - Basic earnings per share for continuing operations in Q2 2022 was $0.02, compared to $0.12 in Q2 2021, a decrease of 83.3%[4] - Comprehensive loss income for Q2 2022 was $(45.4) million, compared to a comprehensive income of $36.1 million in Q2 2021[7] - Total revenue for the six months ended June 30, 2022, was $1,798,437,000, an increase from $1,814,400,000 in the same period of 2021[27] - Total revenue for the first half of 2022 was $211.854 million, a decrease of 39% compared to $348.613 million in the same period of 2021[58] - Total revenue for the three months ended June 30, 2022, was $871,495, a decrease of 3.1% compared to $899,203 for the same period in 2021[39] - Net income for the three months ended June 30, 2022, was $4,336, a decrease of 78.1% compared to $19,856 for the same period in 2021[42] Costs and Expenses - Total costs and expenses for Q2 2022 were $874.2 million, slightly up from $873.4 million in Q2 2021[4] - The company incurred restructuring charges of $8,408 thousand during the six months ended June 30, 2022[12] - Total costs and expenses for the three months ended June 30, 2022, were $874,185, slightly up from $873,412 in the same period of 2021[4] Assets and Liabilities - Total assets as of June 30, 2022, were reported at $2.5 billion, compared to $2.6 billion at the end of 2021[9] - Total current assets decreased from $1,892,053 thousand as of December 31, 2021, to $1,766,948 thousand as of June 30, 2022, representing a decline of approximately 6.6%[10] - Total liabilities decreased from $4,846,239 thousand as of December 31, 2021, to $4,633,437 thousand as of June 30, 2022, a reduction of about 4.4%[10] - Total stockholders' equity decreased from $112,632 thousand as of December 31, 2021, to $44,154 thousand as of June 30, 2022, a decline of approximately 60.9%[10] - Total assets as of June 30, 2022, were $4,677,591, down from $4,958,871 as of December 31, 2021, a decrease of 5.7%[10] Cash Flow and Investments - Cash and cash equivalents decreased from $732,480 thousand at the beginning of the period to $570,697 thousand at the end of the period, a decline of approximately 22.0%[12] - The company reported a net cash from operating activities of $45,694 thousand for the six months ended June 30, 2022, down from $144,729 thousand in the same period of 2021[12] - Net cash from investing activities for the six months ended June 30, 2022, was $(27,518), an improvement from $(68,034) in the same period of 2021[12] Revenue Breakdown - Revenue from business services was $812,297,000 for the six months ended June 30, 2022, compared to $831,515,000 in the same period of 2021, reflecting a decrease of approximately 2.6%[27] - Revenue from SendTech Solutions for the six months ended June 30, 2022, was $377,069,000, an increase from $384,459,000 in the same period of 2021[27] - Revenue from leasing transactions and financing was $309,593,000 for the six months ended June 30, 2022, compared to $320,681,000 in the same period of 2021, indicating a decrease of approximately 3.4%[27] - Revenue from support services was $217,977,000 for the six months ended June 30, 2022, compared to $233,853,000 in the same period of 2021, reflecting a decrease of approximately 6.8%[27] - Revenue from Ecommerce Global was $393,770 for the three months ended June 30, 2022, compared to $418,429 in the same period of 2021[24] Financial Ratios and Metrics - The company reported a loss from discontinued operations of $1.0 million in Q2 2021, while there was no loss reported in Q2 2022[4] - The company experienced a foreign currency translation loss of $(48.1) million in Q2 2022[7] - The company reported a tax benefit of $7 million on a pre-tax loss of $3 million for the three months ended June 30, 2022, primarily due to a one-time tax benefit from the sale of Borderfree[112] Goodwill and Intangible Assets - Goodwill for the Global Ecommerce segment decreased from $395.062 million on December 31, 2021, to $339.184 million on June 30, 2022, reflecting a disposition of $55.878 million[73] - Total intangible assets as of June 30, 2022, were valued at $82.770 million, down from $132.442 million at the end of 2021[66] - The impairment test for goodwill indicated no impairment, with the estimated fair value of the Global Ecommerce reporting unit exceeding its carrying value by less than 20%[71] Credit and Collections - The allowance for credit losses was $24,658 thousand as of June 30, 2022, reflecting a balance decrease from $26,218 thousand at the beginning of the year[53] - The aging of gross finance receivables showed $13,893 thousand past due amounts, with $6,925 thousand past due for 0-90 days and $2,428 thousand for amounts greater than 90 days[49] - Over 85% of finance receivables are within the North American portfolio, with a robust automated collections process in place[55] Market Conditions and Risks - The company continues to face uncertainties due to the effects of COVID-19 and the risk of a global recession, impacting business operations[17]