Slide 1: Pitney Bowes Fourth Quarter 2023 Earnings
Pitney Bowes Fourth Quarter 2023 Earnings February 1, 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 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 positive momentum and 2024 priorities
“Pitney Bowes is beginning 2024 with positive momentum and a strong set of go-forward priorities following a productive fourth quarter. At the enterprise level, we are on track with our cost reduction and restructuring efforts after increasing targets late last year. Our SendTech and Presort segment
Slide 6: Fourth Quarter and Full Year 2023 Results
Fourth Quarter and Full Year 2023 Results 6 Pitney Bowes | Fourth Quarter 2023 Earnings
Slide 7: Fourth Quarter 2023 – Overview
Fourth Quarter 2023 – Overview(1) • Revenue in the quarter was $872 million ⎻ Decrease of 4% on a reported and comparable basis versus prior year • GAAP EPS was a loss of $1.27 and Adjusted EPS was $0.07 ⎻ GAAP EPS includes a loss of $1.24 for a non-cash goodwill impairment charge related to the Glo
Slide 8: Full Year 2023 – Overview
Full Year 2023 – Overview(1) • Revenue was $3.3 billion ⎻ Decrease of 8% on a reported basis and 3% on a comparable basis versus 2022 • GAAP EPS was a loss of $2.20 and Adjusted EPS was $0.04 ⎻ GAAP EPS includes a loss of $1.91 for non-cash goodwill impairment charges related to the Global Ecommerce
Slide 9: Fourth Quarter 2023 – Results vs Prior Year
Fourth Quarter 2023 – Results vs Prior Year(1) $ millions Gross Profit SG&A as % of R&D as a % of Adj EBIT Margin 4% Y/Y Margin Revenue Revenue Q4 2023 = 7.2% Decline Q4 2023 = 33.1% Q4 2023 = 24.9% Q4 2023 = 1.2% Q4 2022 = 5.4% Q4 2022 = 31.7% Q4 2022 = 24.9% Q4 2022 = 1.2% $909 $872 $289 $288 $217
Slide 10: Fourth Quarter 2023 – SendTech
Fourth Quarter 2023 – SendTech SendTech Solutions offers physical and digital mailing and shipping technology solutions, financing, services, supplies and other applications for clients of all sizes to help simplify and save on the sending, tracking and receiving of letters, parcels and flats Q4 Q4
Slide 11: Fourth Quarter 2023 – Presort
Fourth Quarter 2023 – Presort Presort Services provides sortation services that enable clients to qualify for USPS workshare discounts in First Class Mail, Marketing Mail, Marketing Mail Flats and Bound Printed Matter Q4 Q4 % Change ($ millions) 2023 2022 Reported Revenue $163 $158 3% Adjusted Segme
Slide 12: Fourth Quarter 2023 – Global Ecommerce
Fourth Quarter 2023 – Global Ecommerce Global Ecommerce provides business to consumer logistics services for domestic and cross-border delivery, returns and fulfillment Q4 Q4 % Change % Change ($ millions) 2023 2022 Reported Comparable Basis Revenue $381 $410 (7%) (7%) Adjusted Segment EBITDA ($3) (
Slide 13: Debt Profile
Debt Profile Capital Structure ($ Millions) Debt Composition at 12/31/2023 ($ Billions) Interest Rate 12/31/2023 12/31/2022 Revolver - ($500mm) - 0.0 Total Debt $ 2.15 Term Loan A due March 2026 SOFR + 2.25% 285.5 351.5 Notes due March 2028 SOFR + 6.90% 274.3 0.0 - Implied Financing Related Debt(1)
Slide 14: Full Year 2024 Expectations
Full Year 2024 Expectations 14 Pitney Bowes | Fourth Quarter 2023 Earnings
Slide 15: Full Year 2024 Guidance
Full Year 2024 Guidance We expect revenue growth to range from flat to a low-single digit decline and EBIT margins to remain relatively flat on a year-over-year basis. We expect incremental benefit in 2024 from our company-wide cost reduction program as savings from actions taken in 2023 annualize a
Slide 16: Appendix
Appendix 16 Pitney Bowes | Fourth Quarter 2023 Earnings
Slide 17: Consolidated Statements of Operations
Consolidated Statements of Operations (Unaudited; in thousands, except per share amounts) Three months ended December 31, Twelve months ended December 31, 2023 2022 2023 2022 Revenue: Business services $ 564,094 $ 582,674 $ 2,045,069 $ 2,249,941 Support services 100,280 112,572 410,734 438,191 Finan
Slide 18: Consolidated Balance Sheets
Consolidated Balance Sheets (Unaudited; in thousands) Assets December 31, 2023 December 31, 2022 Current assets: Cash and cash equivalents $ 601,053 $ 669,981 Short-term investments 22,166 11,172 Accounts and other receivables, net 342,236 343,557 Short-term finance receivables, net 563,536 564,972
Slide 19: Business Segment Revenue
Business Segment Revenue (Unaudited; in thousands) Three months ended December 31, Twelve months ended December 31, 2023 2022 % Change 2023 2022 % Change Global Ecommerce Revenue, as reported $ 381,020 $ 409,725 (7%) $ 1,355,326 $ 1,576,348 (14%) Impact of change in revenue presentation - (115,171)
Slide 20: Adjusted Segment EBIT & EBITDA
Adjusted Segment EBIT & EBITDA (Unaudited; in thousands) Three months ended December 31, 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 $ (19,700) $ 16,758 $
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 December 31, Twelve months ended December 31, 2023 2022 2023 2022 Reconciliation of reported net (loss) income to adjusted EBIT and adjusted EBITDA Net (loss) in