Pitney Bowes (NYSE:PBI) Q1 2023 Earnings Call

0:00 Good morning and welcome to the Pitney Bowes first quarter 2023 earnings conference call. Your lines have been placed in a listen-only mode during the conference call until the question and answer segment. Today's call is also being recorded. If you have any objections, please disconnect your lines at this time. I would now like to introduce participants on today's conference call, Mr. Mark Lautenbach, President and Chief Executive Officer, Ms. Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, and Mr. Ned Zakhar, Vice President, Investor Relations. Mr. Zakhar will now begin the call with a Safe Harbor overview.

0:38 Good morning, everybody. This is Ned Zakhar, and I manage the Investor Relations program for Pitney Bowes. I'd like to welcome everyone to the call this morning. We very much appreciate your interest and participation. Part of my duties includes covering the Safe Harbor information for these calls, so please bear with me for just a few minutes. Included in today's presentation are forward-looking statements about our future business and financial performance. Forward-looking statements involve risks and uncertainties that could cause actual results to be materially different from our projections. For more information about these risks and uncertainties, please see our earnings press release, our 2022 Form 10-K annual report, and other reports filed with the SEC that are located on our website at www.pb.com.

1:27 and by clicking on Investor Relations. Please keep in mind that we do not undertake any obligation to update forward-looking statements as a result of new information or developments. Also, for non-GAAP measures that are used in the press release or discussed in our presentation materials...

1:44 Yes, so the best way to think about this is we will have actions throughout time, so the best way to think about it is... As we are moving here into the next few quarters, we will be taking actions and we anticipate from the new restructuring program that will cost us about $40 to $50 million. And then the savings on a run rate basis, think about them on an annualized basis, from the restructuring program itself would be savings of $50 million. And then in addition to that, we have specific productivity actions, particularly in the global e-commerce segment. that will drive an incremental $25 million.

2:27 I would also say, and I've said this before, we're never done. You're always in the seventh inning as it relates to efficiency actions. So, you know, we've swept up everything we can see to kind of give you the best visibility for what the next year looks like. But we're not done. We will continue to work on

2:47 this. And, Mark, one last question. The pre-sort business is a business that's done well. You've done well in it. And in the past, you've talked about it's a fragmented business. There's always opportunity for consolidation. And I'm wondering, in this environment, kind of, you know, as you look at your liquidity needs and where you are, is that a business that you could see acquiring other businesses to continue consolidation? Or would that not be something you'd look to do in the next 12 to 18 months?

3:15 You know, it depends. I mean, I'd say most of the acquisitions that we've seen are, you know, I would say in kind of the $5 to $10 million range. So they're pretty digestible. A couple of chunkier ones that are out there, and it would just depend on the economics. Perfect.

3:30 I appreciate it. Thank you very much. And at this time, there are no more questions. I'd now like to turn the call back to Mr. Lautenbach for any additional remarks.

3:40 Thanks, operator, and thank you for everyone's attention this morning. I thought the questions were terrific. Obviously, lots going on in our business. But I would be remiss if I didn't acknowledge the great work that I thought our team did in the first quarter, really across the board. It is a wonderful team, highly focused on serving customers and creating value. So I would just close by acknowledging their hard work, and we will similarly put our heads down and go back to work, and we'll talk to you soon. Ladies and gentlemen, that does conclude your conference for today. Thank you for your participation and for using AT&T Teleconference.

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