Pitney Bowes(US:PBI)2021-04-30 18:11Financial Data and Key Metrics Changes - Revenue for Q1 2021 was $915 million, representing a 14% increase year-over-year on a constant currency basis [13][27] - Adjusted EPS was $0.07, while GAAP EPS reported a loss of $0.18 due to refinancing losses and restructuring charges [13][15] - Free cash flow was a net use of $1 million, with cash from operations at $66 million, showing improvement from the prior year [14] Business Line Data and Key Metrics Changes - Global Ecommerce revenue grew 40% year-over-year to $413 million, with EBIT improving by $3 million [17][18] - SendTech revenue declined 3% to $359 million, but shipping-related revenues grew at a low double-digit rate [23][24] - Presort Services revenue increased by 2% to $143 million, with EBIT at $19 million and EBIT margin at 13% [22] Market Data and Key Metrics Changes - Domestic Parcel Services volumes grew 23%, while Cross Border volumes more than doubled [18] - Transportation costs remained high, impacting both Ecommerce and Presort businesses [9][47] - The company expects Global Ecommerce revenue growth to be stronger in the first half of the year compared to the second half [28] Company Strategy and Development Direction - The company is focused on transforming SendTech to capture new value in the shipping market through digital technologies and IoT [7][11] - Investments in automation and insourcing transportation are expected to yield future productivity benefits [9][20] - The company aims for profitable revenue growth as part of its transformation strategy [12][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory towards EBIT profitability for Global Ecommerce by next year [33] - The company anticipates challenges from high transportation and labor costs but believes in the potential for margin improvement through automation [47][50] - The overall sentiment is positive, with expectations for continued revenue growth and improved margins across segments [81] Other Important Information - The company ended the quarter with $697 million in cash and short-term investments, and total debt was $2.4 billion [15] - The refinancing actions taken during the quarter reduced overall debt by $126 million and improved strategic flexibility [10][15] Q&A Session Summary Question: Potential for e-commerce profitability - Management is optimistic about achieving EBIT profitability next year, with significant progress expected in the current year [33] Question: Cross Border performance and pricing - Cross Border business showed strong performance, with pricing holding steady despite increased costs [39][41] Question: Equipment sales growth - Equipment sales growth was partly driven by a large government deal, with a strong pipeline expected for the second quarter [44][60] Question: Automation initiatives timeline - Automation initiatives are underway, with expectations for continued rollout throughout the year [72][73] Question: COVID-related costs impact - COVID-related costs were not materially impactful in the quarter, with a focus on accounts receivable and delinquencies [77] Question: Expected tax rate for 2021 - The expected tax rate for 2021 is projected to be in the range of 20% to 25% [78]