Pitney Bowes Inc. · NYSE:PBI
Pitney Bowes — Q3 2024 Earnings Presentation
25 slides from Pitney Bowes's earnings presentation, Nov 7, 2024
Slide 1: Pitney Bowes Third Quarter 2024 Earnings
Pitney Bowes Third Quarter 2024 Earnings November 7, 2024
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, future events or cond
Slide 3: Use of Non-GAAP Measures
Use of Non-GAAP Measures Pitney Bowes’ financial results are reported in accordance with generally accepted accounting principles (GAAP). Pitney Bowes also discloses certain non-GAAP measures, such as revenue growth on a constant currency basis, adjusted earnings before interest and taxes (Adjusted
Slide 4: Update on Strategic Priorities
Update on Strategic Priorities 4
Slide 5: 2024 Strategic Initiatives
2024 Strategic Initiatives What We Promised What We Delivered Year-to-Date Looking Ahead Global Ecommerce GEC exit will allow for improved go- The GEC exit is expected to be largely (“GEC”) Strategic forward earnings of approximately $136 complete by year-end Review million annually Removed $90 mill
Slide 6: Priority #1: GEC Exit
Priority #1: GEC Exit Highlights Process/ Next Steps ▪ Successfully exited GEC in timely and The process is expected to be largely complete orderly manner by year-end ▪ We continue to target approximately $150 million in one-time costs from the wind-down Outcomes We have streamlined operations, boos
Slide 7: Priority #2: Cost Rationalization
Priority #2: Cost Rationalization Progress to Date Looking Ahead ▪ Exited Q3 with $90 million in ▪ Cost reductions made in Q3 have impacted annualized cost savings, year-to- 2024’s H2 pre-tax earnings by $22 million date, including corporate, SendTech, and will be fully reflected in 2025 and Presort
Slide 8: Priority #3: Cash Optimization
Priority #3: Cash Optimization Progress to Date Looking Ahead ▪ We expect to exceed our estimate of $25 million of ▪ Brought $117 million back to the U.S. year- repatriation of international cash in H2 2024; $17 to-date from overseas cash repatriation million has been accounted for in Q3, and we ant
Slide 9: Priority #4: Balance Sheet Deleveraging
Priority #4: Balance Sheet Deleveraging Highlights Process/ Next Steps ▪ Discussions are ongoing with the Company’s ▪ Exiting GEC, combined with existing cost current and prospective lending partners to cuts, and improved cash management identify options for strategically deleveraging on positions u
Slide 10: Third Quarter Results
Third Quarter Results 10
Slide 11: Third Quarter 2024 – Overview
Third Quarter 2024 – Overview • Revenue was $499 million, down 1% year-over-year • GAAP EPS was a loss of $0.75, including a loss of $1.42 per share from discontinued operations • Adjusted EPS was $0.21, an improvement of $0.05 over the prior year • Net loss of $138 million, including a $261 million
Slide 12: Third Quarter 2024 – Results vs. Prior Year
Third Quarter 2024 – Results vs. Prior Year $ millions Gross Profit SG&A as % of R&D as a % of Adj EBIT Margin (1%) Growth Y/Y Margin Revenue Revenue Q3 2024: 55.6% Q3 2024: 32.3% Q3 2024: 1.3% Q3 2024: 22.2% Q3 2023: 53.8% Q3 2023: 35.3% Q3 2023: 1.6% Q3 2023: 17.3% $499 $503 $277 $268 $161 $176 $1
Slide 13: Third Quarter 2024 – SendTech Solutions
Third Quarter 2024 – SendTech Solutions SendTech Solutions offers physical and digital shipping and mailing technology solutions, financing, services, supplies and other applications for small and medium businesses, retail, enterprise, and government clients around the world to help simplify and sav
Slide 14: Third Quarter 2024 – Presort Services
Third Quarter 2024 – Presort Services Presort Services provides sortation services that enable clients to qualify for USPS workshare discounts in First Class Mail, Marketing Mail, Marketing Mail Flats and Bound Printed Matter. ($ millions) Q3 2024 Q3 2023 % Change Reported Revenue $166 $152 9% Adjus
Slide 15: Discontinued Operations
Discontinued Operations As a result of the Global Ecommerce exit process announced last quarter, a majority of the Global Ecommerce reporting segment is now reported as discontinued operations in the Condensed Consolidated Financial Statements. Prior periods have been recast to conform to the curren
Slide 16: Third Quarter 2024 – Debt Profile
Third Quarter 2024 – Debt Profile Total debt consisted of the following: ($ Millions) Interest Rate 9/30/2024 12/31/2023 Term Loan due March 2026 SOFR + 2.25% $249,500 $285,500 Notes due March 2027 6.875% 380,000 380,000 Notes due March 2028 SOFR + 6.90% 272,500 274,300 Term Loan due March 2028 SOFR
Slide 17: Updated Guidance
Updated Guidance 17
Slide 18: Updated Full-Year 2024 Guidance
Updated Full-Year 2024 Guidance The Company now expects full-year revenue to decline at a low-single-digit rate. The Company is also raising its full-year Adjusted EBIT guidance to $355 to $360 million. 1 1. We have not reconciled Adjusted EBIT guidance to its corresponding GAAP measure due to the h
Slide 19: Appendix
Appendix 19
Slide 20: Appendix: Financial Information
Appendix: Financial Information Pitney Bowe s Inc. Consolidated State ment of Operations (Unaudited, in thousands, except per share amounts) Three months ended September 30 Nine months ended September 30 2024 2023 2024 2023 Revenue: Business services $ 221,791 $ 203,269 $ 651,389 $ 638,714 Support s
Slide 21: Appendix: Financial Information
Appendix: Financial Information Pitney Bowe s Inc. Consolidated Ba lance Sheets (Unaudited, in thousands) September 30, December 31, Assets 2024 2023 Current assets: Cash and cash equivalents $ 561,538 $ 600,054 Short-term investments 13,972 22,166 Accounts and other receivables, net 188,794 200,242
Slide 22: Appendix: Financial Information
Appendix: Financial Information Pitney Bowe s Inc. Bus iness Segme nt Revenue (Unaudited, in thousands) Three months ended September 30 Nine months ended September 30 2024 2023 % Change 2024 2023 % Change Sending Technology Solutions $ 312,763 $ 327,041 (4%) $ 960,355 $ 990,361 (3%) Presort Services
Slide 23: Appendix: Financial Information
Appendix: Financial Information Pitney Bowe s Inc. Adjusted Segment EBIT & EBITDA Three months ended September 30 (Unaudited, in thousands) 2024 2023 % change Adjusted Segment Adjusted Segment Adjusted Segment Adjusted Segment Adjusted Segment Adjusted Segment EBIT ( 1) D&A EBITDA EBIT ( 1) D&A EBIT
Slide 24: Appendix: Financial Information
Appendix: Financial Information Pitney Bowe s Inc. Reconc iliation of Reported Consolida ted Results to Adjusted Res ults (Unaudited, in thousands, except per share amounts) Three months ended September 30 Nine months ended September 30 2024 2023 2024 2023 Reconciliation of reported net loss to adju
Slide 25: Thank You
Thank You 25