Slide 1: Pitney Bowes Second Quarter 2023 Earnings
Pitney Bowes Second Quarter 2023 Earnings August 3, 2023
Slide 2: Forward Looking Statements
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 c
Slide 3: Use of Non-GAAP Measures
Use of Non-GAAP Measures Our financial results are reported in accordance with generally accepted accounting principles (GAAP). We also disclose certain non- GAAP measures, such as adjusted earnings before interest and taxes (Adjusted EBIT), adjusted earnings before interest, taxes, depreciation and
Slide 4: Use of Non-GAAP Measures
Use of Non-GAAP Measures Free cash flow adjusts cash flow from operations calculated in accordance with GAAP for capital expenditures, restructuring payments and other special items. Management believes free cash flow provides investors better insight into the amount of cash available for other disc
Slide 5: CEO commentary on second quarter results
“We saw similar trends that affected first quarter results continue into the second quarter, and we took several significant actions to position the company well for the second half of the year. SendTech and Presort both grew profits, while the decline in cross-border weighed on the performance of G
Slide 6: Second Quarter 2023 Results
Second Quarter 2023 Results 6 Pitney Bowes | Second Quarter 2023 Earnings
Slide 7: Second Quarter 2023 – Overview
Second Quarter 2023 – Overview(1) q Revenue of $776 million § 11% decline on a reported basis versus prior year § 5% decline on a comparable basis, excluding the impact of currency, Borderfree divestiture, and a change in revenue presentation q GAAP EPS loss of $0.81 and Adjusted EPS loss of $0.02 §
Slide 8: Second Quarter 2023 – Overview Continued
Second Quarter 2023 – Overview Continued q Global Ecommerce processed 50 million domestic parcels in the quarter, which is up 29% from second quarter 2022 q Presort grew Adjusted Segment EBIT by 59% and Adjusted Segment EBIT margins by 500 basis points versus prior year q SendTech grew Adjusted Segm
Slide 9: Second Quarter 2023 – Results vs Prior Year
Second Quarter 2023 – Results vs Prior Year(1) $ millions Gross Profit SG&A as % of R&D as a % of 11% Y/Y Decline Adj EBIT Margin Margin Revenue Revenue (5% Y/Y Change on Q2 2023 = 4.1% comparable basis) Q2 2023 = 33.3% Q2 2023 = 28.7% Q2 2023 = 1.3% Q2 2022 = 4.5% Q2 2022 = 31.4% Q2 2022 = 26.0% Q2
Slide 10: Second Quarter 2023 – Global Ecommerce
Second Quarter 2023 – Global Ecommerce Global Ecommerce provides business to consumer logistics services for domestic and cross-border delivery, returns and fulfillment Q2 Q2 % Change % Change ($ millions) 2023 2022 Reported Comparable Basis Revenue $313 $394 (21%) (9%) Adjusted Segment EBITDA ($21)
Slide 11: Second Quarter 2023 – Presort
Second Quarter 2023 – Presort Presort Services provides sortation services that enable clients to qualify for USPS workshare discounts in First Class Mail, Marketing Mail, Marketing Mail Flats and Bound Printed Matter Q2 Q2 % Change ($ millions) 2023 2022 Reported Revenue $143 $139 3% Adjusted Segme
Slide 12: Second Quarter 2023 – SendTech
Second Quarter 2023 – SendTech Sending Technology Solutions offers physical and digital mailing and shipping technology solutions, financing, services, supplies and other applications for clients of all sizes to help simplify and save on the sending, tracking and receiving of letters, parcels and fl
Slide 13: Debt Profile
Debt Profile Capital Structure ($ Millions) Debt Composition at 6/30/2023 ($ Billions) Interest Rate 6/30/2023(2) 12/31/2022 Cash & S/T Investments $560.7 $681.2 Total Debt $ 2.15 Revolver - ($500mm) 0.0 0.0 Term Loan A due March 2026 SOFR + 2.25% 336.5 351.5 - Implied Financing Related Debt(1) - 1.
Slide 14: Full Year 2023 Expectations
Full Year 2023 Expectations 14 Pitney Bowes | Second Quarter 2023 Earnings
Slide 15: Full Year 2023 Guidance
Full Year 2023 Guidance • We expect full year revenue to be on the lower end of our previously provided guidance, resulting in relatively flat growth on a comparable basis. • We continue to expect adjusted EBIT performance to outpace the percent change in revenue. 15 Pitney Bowes | Second Quarter 20
Slide 16: Appendix
Appendix 16 Pitney Bowes | Second Quarter 2023 Earnings
Slide 17: Consolidated Statements of Operations
Consolidated Statements of Operations (Unaudited; in thousands, except per share amounts) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Revenue: Business services $ 473,497 $ 551,478 $ 996,988 $ 1,148,862 Support services 103,315 107,625 208,599 217,977 Financing 66,702 6
Slide 18: Consolidated Balance Sheets
Consolidated Balance Sheets (Unaudited; in thousands) Assets June 30, 2023 December 31, 2022 Current assets: Cash and cash equivalents $ 541,704 $ 669,981 Short-term investments 18,972 11,172 Accounts and other receivables, net 272,963 343,557 Short-term finance receivables, net 559,979 564,972 Inve
Slide 19: Business Segment Revenue
Business Segment Revenue (Unaudited; in thousands) Three months ended June 30, Six months ended June 30, 2023 2022 % Change 2023 2022 % Change Global Ecommerce Revenue, as reported $ 312,754 $ 393,770 (21%) $ 661,145 $ 812,297 (19%) Impact of change in revenue presentation (37,790) (75,376) Impact o
Slide 20: Adjusted Segment EBIT & EBITDA
Adjusted Segment EBIT & EBITDA (Unaudited; in thousands) Three months ended June 30, 2023 2022 % change Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Segment EBIT(1) D&A Segment EBITDA Segment EBIT (1) D&A Segment EBITDA Segment EBIT Segment EBITDA Global Ecommerce $ (38,115) $ 16,620 $ (21,
Slide 21: Reconciliation of Reported Consolidated Results to Adjusted Results
Reconciliation of Reported Consolidated Results to Adjusted Results (Unaudited; in thousands, except per share amounts) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Reconciliation of reported net (loss) income to adjusted EBIT and adjusted EBITDA Net (loss) income $ (141