Slide 1: Pitney Bowes Third Quarter 2023 Earnings
Pitney Bowes Third Quarter 2023 Earnings November 2, 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 quote on SendTech, Presort and Global Ecommerce performance
“Our SendTech and Presort segments both delivered profit growth and margin expansion during the quarter, reflecting success in our growth strategies and productivity initiatives, as well as resilience in challenging economic conditions. We are ahead of schedule on delivering the savings associated w
Slide 6: Third Quarter 2023 Results
Third Quarter 2023 Results 6 Pitney Bowes | Third Quarter 2023 Earnings
Slide 7: Third Quarter 2023 – Overview
Third Quarter 2023 – Overview(1) q Revenue in the quarter was $784 million § Decrease of 6% on a reported basis and 1% on a comparable basis versus prior year (1) q GAAP EPS was a loss of $0.07 in the quarter versus GAAP EPS of $0.03 in third quarter 2022; Adjusted EPS was $0.00 and flat versus prio
Slide 8: Third Quarter 2023 – Results vs Prior Year
Third Quarter 2023 – Results vs Prior Year(1) $ millions Gross Profit SG&A as % of R&D as a % of 6% Y/Y Decline Adj EBIT Margin Margin Revenue Revenue (1% Y/Y Change on Q3 2023 = 5.5% comparable basis) Q3 2023 = 33.2% Q3 2023 = 26.7% Q3 2023 = 1.3% Q3 2022 = 4.6% Q3 2022 = 31.8% Q3 2022 = 25.9% Q3 2
Slide 9: Third Quarter 2023 – SendTech
Third Quarter 2023 – SendTech SendTech 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 flats Q3 Q3 %
Slide 10: Third Quarter 2023 – Presort
Third 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 Q3 Q3 % Change ($ millions) 2023 2022 Reported Revenue $152 $145 5% Adjusted Segmen
Slide 11: Third Quarter 2023 – Global Ecommerce
Third Quarter 2023 – Global Ecommerce Global Ecommerce provides business to consumer logistics services for domestic and cross-border delivery, returns and fulfillment Q3 Q3 % Change % Change ($ millions) 2023 2022 Reported Comparable Basis Revenue $313 $354 (12%) (1%) Adjusted Segment EBITDA ($25)
Slide 12: Debt Profile
Debt Profile Capital Structure ($ Millions) Debt Composition at 9/30/2023 ($ Billions) Interest Rate 9/30/2023(2) 12/31/2022 Cash & S/T Investments $ 579.4 $681.2 Total Debt $ 2.16 Revolver - ($500mm) - 0.0 Term Loan A due March 2026 SOFR + 2.25% 297.5 351.5 - Implied Financing Related Debt(1) - 1.0
Slide 13: Full Year 2023 Expectations
Full Year 2023 Expectations 13 Pitney Bowes | Third Quarter 2023 Earnings
Slide 14: Full Year 2023 Guidance
Full Year 2023 Guidance Given our Global Ecommerce segment’s year-to-date performance and continued market headwinds, we now expect the Company’s: • Full-year revenue to decline between 3% and 4% on a comparable basis • Full-year adjusted EBIT margins to remain relatively flat versus the prior year
Slide 15: Appendix
Appendix 15 Pitney Bowes | Third Quarter 2023 Earnings
Slide 16: Consolidated Statements of Operations
Consolidated Statements of Operations (Unaudited; in thousands, except per share amounts) Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Revenue: Business services $ 483,987 $ 518,405 $ 1,480,975 $ 1,667,267 Support services 101,855 107,642 310,454 325,619 Finan
Slide 17: Consolidated Balance Sheets
Consolidated Balance Sheets (Unaudited; in thousands) Assets September 30, 2023 December 31, 2022 Current assets: Cash and cash equivalents $ 557,696 $ 669,981 Short-term investments 21,732 11,172 Accounts and other receivables, net 288,592 343,557 Short-term finance receivables, net 550,152 564,972
Slide 18: Business Segment Revenue
Business Segment Revenue (Unaudited; in thousands) Three months ended September 30, Nine months ended September 30, 2023 2022 % Change 2023 2022 % Change Global Ecommerce Revenue, as reported $ 313,161 $ 354,326 (12%) $ 974,306 $ 1,166,623 (16%) Impact of change in revenue presentation (39,795) (115
Slide 19: Adjusted Segment EBIT & EBITDA
Adjusted Segment EBIT & EBITDA (Unaudited; in thousands) Three months ended September 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 $ (41,712) $ 16,872
Slide 20: 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 September 30, Nine months ended September 30, 2023 2022 2023 2022 Reconciliation of reported net (loss) income to adjusted EBIT and adjusted EBITDA Net (loss) in