Pitney Bowes Inc. · NYSE:PBI
Pitney Bowes — Q1 2024 Earnings Presentation
19 slides from Pitney Bowes's earnings presentation, May 2, 2024
Slide 1: Pitney Bowes First Quarter 2024 Earnings
Pitney Bowes First Quarter 2024 Earnings May 2, 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: Management commentary on first quarter results
“We came out of the gate strong with first quarter results that reflect enterprise-wide changes in our operating intensity and efficiency efforts. Net income improved $5 million over prior year. Adjusted EBIT grew by more than $23 million on relatively flat revenue. This includes solid segment-level
Slide 5: First Quarter 2024 Results
First Quarter 2024 Results 5 Pitney Bowes | First Quarter 2024 Earnings
Slide 6: First Quarter 2024 – Overview
First Quarter 2024 – Overview • Revenue in the quarter was $831 million ⎻ Flat on a reported basis and down 1% on a constant currency basis • GAAP EPS was a loss of $0.02 and Adjusted EPS was a loss of $0.01 ⎻ GAAP EPS improved $0.02 over prior year ⎻ Adjusted EPS was flat versus prior year • Net in
Slide 7: First Quarter 2024 – Results vs Prior Year
First Quarter 2024 – Results vs Prior Year $ millions Gross Profit SG&A as % of R&D as a % of Adj EBIT Margin Margin Revenue Revenue Flat Y/Y Q1 2024 = 6.8% Q1 2024 = 34.2% Q1 2024 = 26.0% Q1 2024 = 1.1% Q1 2023 = 4.0% Q1 2023 = 33.3% Q1 2023 = 29.0% Q1 2023 = 1.3% $831 $835 $284 $278 $216 $242 $56
Slide 8: First Quarter 2024 – SendTech
First Quarter 2024 – SendTech SendTech Solutions offers physical and digital mailing and shipping technology solutions, financing, services, supplies and other applications for clients of all sizes to help simplify and save on the sending, tracking and receiving of letters, parcels and flats Q1 Q1 %
Slide 9: First Quarter 2024 – Presort
First Quarter 2024 – Presort Presort Services provides sortation services that enable clients to qualify for USPS workshare discounts in First Class Mail, Marketing Mail, Marketing Mail Flats and Bound Printed Matter Q1 Q1 % Change ($ millions) 2024 2023 Reported Revenue $170 $159 7% Adjusted Segmen
Slide 10: First Quarter 2024 – Global Ecommerce
First Quarter 2024 – Global Ecommerce Global Ecommerce provides business to consumer logistics services for domestic and cross-border delivery, returns and fulfillment Q1 Q1 % Change ($ millions) 2024 2023 Reported Revenue $333 $341 (2%) Adjusted Segment EBITDA ($21) ($19) (14%) Adjusted Segment EBI
Slide 11: Debt Profile
Debt Profile Capital Structure ($ Millions) Debt Composition at 3/31/2024 ($ Millions) Interest Rate 3/31/2024 12/31/2023 Revolver - ($500mm) - - Total Debt $ 2,134 Term Loan A due March 2026 SOFR + 2.25% 273.5 285.5 Notes due March 2028 SOFR + 6.90% 273.6 274.3 - Implied Financing Related Debt(1) -
Slide 12: Full Year 2024 Expectations
Full Year 2024 Expectations 12 Pitney Bowes | First Quarter 2024 Earnings
Slide 13: Full Year 2024 Guidance
Full Year 2024 Guidance We are maintaining our guidance and 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 are planning similar levels of capital expenditures in 2024 as in 2023 and expect interest expen
Slide 14: Appendix
Appendix 14 Pitney Bowes | First Quarter 2024 Earnings
Slide 15: Consolidated Statements of Operations
Consolidated Statements of Operations (Unaudited; in thousands, except per share amounts) Three months ended March 31, 2024 2023 Revenue: Business services $ 535,597 $ 523,491 Support services 96,333 105,284 Financing 67,663 67,049 Equipment sales 77,403 82,610 Supplies 36,721 38,835 Rentals 16,792
Slide 16: Consolidated Balance Sheets
Consolidated Balance Sheets (Unaudited; in thousands) Assets March 31, 2024 December 31, 2023 Current assets: Cash and cash equivalents $ 516,092 $ 601,053 Short-term investments 21,859 22,166 Accounts and other receivables, net 307,201 342,236 Short-term finance receivables, net 547,235 563,536 Inv
Slide 17: Business Segment Revenue
Business Segment Revenue (Unaudited; in thousands) Three months ended March 31, 2024 2023 % Change Global Ecommerce Revenue, as reported $ 333,265 $ 340,641 (2%) Impact of currency on revenue (719) Revenue, constant currency $ 332,546 $ 340,641 (2%) Presort Services Revenue, as reported $ 169,807 $
Slide 18: Adjusted Segment EBIT & EBITDA
Adjusted Segment EBIT & EBITDA (Unaudited; in thousands) Three months ended March 31, 2024 2023 % change Adjusted Adjusted Adjusted Adjusted Adjusted Segment Segment Segment EBIT Segment Adjusted Segment EBIT(1) D&A EBITDA (1) D&A EBITDA Segment EBIT EBITDA Global Ecommerce $ (35,427) $ 14,033 $ (21
Slide 19: 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 March 31, 2024 2023 Reconciliation of reported net loss to adjusted EBIT and adjusted EBITDA Net loss $ (2,885) $ (7,737) Provision (benefit) for income taxes 12