Slide 1: Strategic Update & Second Quarter 2024 Earnings
Strategic Update & Second Quarter 2024 Earnings Investor Presentation – August 2024 Pitney Bowes | Second Quarter 2024 Earnings
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 Our financial results are reported in accordance with generally accepted accounting principles (GAAP). We also disclose certain non-GAAP measures, adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA), adjusted earnings per share (Adjusted
Slide 4: Update on Strategic Priorities
Update on Strategic Priorities 4 Pitney Bowes | Second Quarter 2024 Earnings
Slide 5: Recap of Strategic Initiatives
Recap of Strategic Initiatives What We Promised: What We Delivered: Path to GEC Exit: The Pitney Bowes Board determined the Global Ecommerce (“GEC”) Review: Timely conclusion of the optimal path to maximizing value for the Company was to sell a strategic review for the GEC segment. majority stake in
Slide 6: Priority #1: Conclusion of GEC Review
Priority #1: Conclusion of GEC Review Highlights Process / Next Steps ▪ Limits impact on the rest of Pitney Bowes – The process, approved by the independent GEC board, by selling a majority stake in GEC to Hilco and requires court approval and is expected to conclude in GEC then filing for Chapter 1
Slide 7: Priority #2: Cost Rationalization
Priority #2: Cost Rationalization Progress to Date: Looking Ahead: ▪ Implemented $70 million in long-term savings, ▪ July's cost reductions will primarily impact 2024's including corporate, SendTech, and Presort cost second half pre-tax earnings and will be fully cuts, excluding GEC exit savings. re
Slide 8: Priority #3: Cash Optimization
Priority #3: Cash Optimization Progress to Date: Looking Ahead: ▪ Additional $25 million– repatriation of international cash $100 Million in the second half of the year Repatriated International Cash ▪ Global cash pooling structure will enable us to maintain lower levels of cash in international jur
Slide 9: Priority #4: Balance Sheet Deleveraging
Priority #4: Balance Sheet Deleveraging Exiting GEC, combined Improved cash Leadership will focus on with existing cost cuts, management will eliminating high-cost will accelerate PBI accelerate debt debt and improving deleveraging reduction and balance credit rating sheet deleveraging Balance sheet
Slide 10: Second Quarter Results
Second Quarter Results 10 Pitney Bowes | Second Quarter 2024 Earnings
Slide 11: Second Quarter 2024 – Overview
Second Quarter 2024 – Overview • Revenue in the quarter was $793 million and up 2% year-over-year • GAAP EPS was a loss/gain of $0.14 and included restructuring charges of $0.14 • Adjusted EPS was a $0.03, an improvement of $0.05 over prior year • Net income was a loss of $25 million versus a loss o
Slide 12: Second Quarter 2024 – Results vs. Prior Year
Second Quarter 2024 – Results vs. Prior Year $ millions Gross Profit SG&A as % of R&D as a % of Adj EBIT Margin 2% Growth Y/Y Margin Revenue Revenue Q2 2024: 5.8% Q2 2024: 33.6% Q2 2024: 27.7% Q2 2024: 1.1% Q2 2023: 4.1% Q2 2023: 33.3% Q2 2023: 28.7% Q2 2023: 1.3% $793 $776 $267 $259 $220 $223 $46 $
Slide 13: Second Quarter 2024 – SendTech
Second Quarter 2024 – SendTech 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 save on the
Slide 14: Second Quarter 2024 – Presort
Second Quarter 2024 – 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 ($ millions) Q2 2024 Q2 2023 % Change Reported Revenue $147 $143 3% Adjusted Segme
Slide 15: Second Quarter 2024 – Global Ecommerce
Second Quarter 2024 – Global Ecommerce Global Ecommerce provides business to consumer logistics services for domestic and cross -border delivery, returns and fulfillment ($ millions) Q2 2024 Q2 2023 % Change Reported Revenue $326 $305 7% Adjusted Segment EBITDA ($17) ($23) 26% Adjusted Segment EBIT
Slide 16: Second Quarter 2024 – Debt Profile
Second Quarter 2024 – Debt Profile ($ Millions) Interest Rate 6/30/2024 12/31/2023 Term Loan A due March 2026 SOFR + 2.25% $261.5 $285.5 Notes due March 2027 6.875% 380.0 380.0 Notes due March 2028 SOFR + 6.90% 272.9 274.3 Term Loan B due March 2028 SOFR + 4.00% 435.4 437.6 Notes due March 2029 7.25
Slide 17: Updated Guidance & Go-Forward Proforma
Updated Guidance & Go-Forward Proforma 17 Pitney Bowes | Second Quarter 2024 Earnings
Slide 18: Full-Year 2024 Guidance
Full-Year 2024 Guidance Pitney Bowes is updating its full-year 2024 guidance to reflect the exit of GEC, incremental cost-saving initiatives and strong first-half performance. Full year 2024 guidance and comparison to 2023 exclude the financial results of the GEC Entities, which the Company expects
Slide 19: Illustrative Potential PBI Adjusted EBIT Post-Strategic Initiatives
Illustrative Potential PBI Adjusted EBIT Post-Strategic Initiatives $600 $500 $140 $481 $400 $132 Millions $300 $209 $200 $100 $- PBI LTM EBIT GEC LTM EBIT Cost Savings Post-Strategic Initiatives EBIT This is an illustrative view of the continuing operations of the Company, which reflects the histor
Slide 20: Appendix
Appendix 20 Pitney Bowes | Second Quarter 2024 Earnings
Slide 21: Appendix: Financial Information – Statements of Operations
Appendix: Financial Information Pitney Bowe s Inc. Consolidated State ments of O perations (Unaudited; in thousands , exce pt per share amounts ) Three months e nded J une 30 Six mont hs ended June 3 0 202 4 202 3 202 4 202 3 Revenue: Business services $ 506,666 $ 473,497 $ 1,042,263 $ 996,988 Sup p
Slide 22: Appendix: Financial Information – Balance Sheets
Appendix: Financial Information Pitney Bowe s Inc. Consolidated Ba lance Sheets (Unaudited; in thousands ) Ju ne 30, Decem ber 31, Assets 2024 2023 Current assets: Cash and cash equivalents $ 590,147 $ 601,053 Short-term investments 21,852 22,166 Accounts and other receivables, net 266,172 342,236 S
Slide 23: Appendix: Financial Information – Business Segment Revenue
Appendix: Financial Information Pitney Bowes Inc. Business Segment Revenue (Unaudited; in thousands) Three months e nded J une 30 Six mont hs ended June 3 0 202 4 202 3 % Cha nge 202 4 202 3 % Cha nge Sending Technology Solut ions Revenue, as rep orted $ 32 0,1 55 $ 32 8,3 25 (2% ) $ 64 7,5 92 $ 66
Slide 24: Appendix: Adjusted Segment EBIT & EBITDA
Appendix: Financial Information Pitney Bowes Inc. Adjusted Segment EBIT & EBITDA (Unaudited; in thousands) Three months ended June 30 2024 2023 % change Adjusted Segment EBIT Adjusted Segment Adjusted Segment Adjusted Segment ( 1) D&A EBITDA Adjusted Segment EBIT ( 1) D&A EBITDA Adjusted Segment EBI
Slide 25: Appendix: Reconciliation of Reported to Adjusted Results
Appendix: Financial Information Pitney Bowes Inc. Reconciliation of Repor ted Consolidated Results to Adjusted Results (Unaudited; in thousands, except per share amounts) Three months ended June 30 Six months ended June 30 2024 2023 2024 2023 Reconciliation of r eported net loss to adjusted EBIT and