Pitney Bowes(PBI) - 2022 Q4 - Annual Report

Revenue Performance - Total revenue for 2022 decreased by 4% to $3,538,042, compared to $3,673,561 in 2021, with a constant currency change of 3%[79] - Global Ecommerce revenue declined by 7% to $1,576,348, primarily due to lower volumes in cross-border services and digital delivery services[81] - Total revenue for 2022 was $1.36 billion, a decrease of 3% compared to $1.40 billion in 2021[95] Segment Performance - Segment EBIT for 2022 decreased by 7% to $383,031 compared to $410,463 in 2021, with Global Ecommerce EBIT decreasing by 2%[82] - Presort Services revenue increased by 5% to $602,016, driven by pricing actions and processing of First Class Mail[90] - SendTech Solutions segment EBIT decreased by 7% to $400,909, impacted by lower revenues and higher operating expenses[93] Future Outlook - The company expects consolidated revenue growth in 2023 to be flat to a mid-single digit increase, with EBIT growth anticipated to outpace revenue growth[84] - Domestic Parcel services within Global Ecommerce are expected to see growth, while cross-border operations may continue to face challenges due to a strong U.S. dollar[84] Profitability and Expenses - The company plans to improve profitability in Presort Services through increased automation and facilities consolidation[84] - Higher interest expense for 2023 is anticipated to be about $30 million due to recent interest rate increases[84] - SG&A expenses decreased by 2% to $906 million, primarily due to lower employee-related expenses[97] Cash Flow and Capital Expenditures - Cash flow from operating activities declined by $126 million to $175.98 million in 2022, primarily due to increased trade and finance receivables[107] - Capital expenditures totaled $125 million in 2022, down from $184 million in 2021, reflecting continued investment in facilities and technology[117] Debt and Financial Position - The company reduced its debt by $124 million during 2022, with outstanding debt at $2.2 billion as of December 31, 2022[110] - Future cash requirements total $2.96 billion, with significant payments due in 2023 and 2024[112] - As of December 31, 2022, the company has authorization to repurchase up to $3 million of its common stock[119] Credit Risk and Allowance - The company is exposed to credit risk on accounts receivable and finance receivable balances[145] - The credit risk is mitigated by a large, diverse client base across various geographic regions and industrial sectors[145] - Provisions for potential credit losses are maintained based on historical experience and current economic conditions[145] Tax and Dividend - The effective tax rate for 2022 included a tax benefit of $5 million related to the sale of Borderfree[103] - The company expects to continue paying a quarterly dividend of $0.05 per share, estimating total dividend payments of approximately $35 million in 2023[118]