Pitney Bowes(US:PBI)2023-11-01 16:00Financial Performance - Total revenue for the three months ended September 30, 2023, was $783.8 million, a decrease of 5.7% compared to $830.9 million for the same period in 2022[13]. - Net loss for the three months ended September 30, 2023, was $(12.5) million, compared to a net income of $5.5 million for the same period in 2022, representing a significant decline[15]. - Basic net loss per share for the three months ended September 30, 2023, was $(0.07), compared to earnings of $0.03 per share for the same period in 2022[13]. - Total revenue for the nine months ended September 30, 2023, was $783,751 thousand, a decrease from $830,914 thousand in the same period of 2022[30]. - The company reported a total comprehensive loss of $2,507 for the three months ended September 30, 2023[128]. - The net loss for the nine months ended September 30, 2023, was $(161,791) thousand, compared to a net income of $30,644 thousand for the same period in 2022[20]. - Total consolidated revenue for the nine months ended September 30, 2023, was $2,394,770, a decrease from $2,629,351 for the same period in 2022, representing a decline of approximately 8.9%[35]. Costs and Expenses - Total costs and expenses for the three months ended September 30, 2023, were $800.5 million, down from $820.8 million in the same period of 2022, indicating a reduction in operational costs[13]. - Total costs and expenses decreased by $23 million compared to the prior year, primarily due to a $187 million decrease in costs of revenue[147]. - Restructuring expenses for the three months ended September 30, 2023, totaled $16,578 thousand, compared to $4,264 thousand for the same period in 2022[110]. Assets and Liabilities - Current assets as of September 30, 2023, totaled $1.6 billion, a decrease from $1.8 billion as of December 31, 2022[18]. - Long-term debt as of September 30, 2023, was $2.1 billion, down from $2.2 billion as of December 31, 2022, reflecting a reduction in leverage[18]. - Total liabilities decreased to $4.5 billion as of September 30, 2023, from $4.7 billion as of December 31, 2022, indicating improved financial stability[18]. - Total debt as of September 30, 2023, was $2,158,128, a decrease from $2,205,266 as of December 31, 2022[10]. Cash Flow and Investments - The company’s cash and cash equivalents as of September 30, 2023, were $557.7 million, down from $670.0 million as of December 31, 2022, reflecting cash flow challenges[18]. - Cash flows from operating activities resulted in a net cash outflow of $(14,453) thousand for the nine months ended September 30, 2023, compared to an inflow of $9,229 thousand in 2022[20]. - Cash interest paid for the nine months ended September 30, 2023, is $134,157, an increase from $114,752 for the same period in 2022[133]. Revenue Breakdown - Revenue from business services for the nine months ended September 30, 2023, was $483,987 thousand, compared to $518,405 thousand in the same period of 2022[30]. - Revenue from Global Ecommerce for the nine months ended September 30, 2023, was $974,306, down from $1,166,623 in the same period of 2022, indicating a decrease of about 16.5%[45]. - Revenue from leasing transactions and financing for the nine months ended September 30, 2023, was $434,898, compared to $456,616 in the same period of 2022, showing a decrease of approximately 4.7%[39]. - Presort Services revenue increased by 2% to $454.5 million for the first nine months of 2023, driven by pricing actions[163]. Goodwill and Impairments - Goodwill impairment for the nine months ended September 30, 2023, was $118,599 thousand, with no impairment recorded in the same period of 2022[20]. - Goodwill decreased to $945,418 million as of September 30, 2023, from $1,066,951 million on December 31, 2022, primarily due to an impairment charge of $118,599 million[78]. - A goodwill impairment charge of $119 million was recorded in Q2 2023 for the Global Ecommerce reporting unit due to fair value being less than carrying value[180]. Restructuring Plans - The company approved a restructuring plan expected to incur total charges of $60 million to $70 million, with 850-950 positions to be eliminated[108]. - The 2023 restructuring plan aims to eliminate 850-950 positions globally, with expected total charges of $60 million-$70 million and annualized cost savings of $75 million-$85 million by the end of 2024[139]. Tax and Equity - The effective tax rate for the three months ended September 30, 2023, was 25.1%, compared to 45.8% for the same period in 2022[118]. - Total stockholders' equity as of September 30, 2023, was $(125,109), a decrease from $(75,487) as of July 1, 2023[123]. - The balance of accumulated other comprehensive loss increased to $838,071 as of September 30, 2023, from $780,312 at the beginning of the year[129]. Market and Regulatory Matters - There were no material changes to the risk factors identified in the 2022 Annual Report[186]. - The company has not reported any material changes to market risk disclosures since the 2022 Annual Report[182]. - The company has no ongoing legal proceedings that materially affect its financial position[186].