Pitney Bowes : Financial Statements Q1 2024

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

17,269

Total revenue

830,509

834,538

Costs and expenses:

Cost of business services

446,367

446,317

Cost of support services

33,055

36,840

Financing interest expense

16,603

14,536

Cost of equipment sales

52,559

57,171

Cost of supplies

10,195

11,225

Cost of rentals

4,684

5,428

Selling, general and administrative

216,197

242,120

Research and development

9,481

10,493

Restructuring charges

4,315

3,599

Interest expense, net

27,766

22,342

Other components of net pension and postretirement income

(387)

(1,710)

Other income

-

(2,836)

Total costs and expenses

820,835

845,525

Income (loss) before taxes

9,674

(10,987)

Provision (benefit) for income taxes

12,559

(3,250)

Net loss

$

(2,885)

$

(7,737)

Net loss per share:

Basic

$

(0.02)

$

(0.04)

Diluted

$

(0.02)

$

(0.04)

Weighted-average shares used in diluted earnings per share

176,997

174,626

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

Inventories

78,683

70,053

Current income taxes

987

564

Other current assets and prepayments

110,041

92,309

Total current assets

1,582,098

1,691,917

Property, plant and equipment, net

370,110

383,628

Rental property and equipment, net

22,580

23,583

Long-term finance receivables, net

638,380

653,085

Goodwill

729,291

734,409

Intangible assets, net

58,277

62,250

Operating lease assets

304,939

309,958

Noncurrent income taxes

58,884

60,995

Other assets

338,488

352,360

Total assets

$

4,103,047

$

4,272,185

Liabilities and stockholders' deficit

Current liabilities:

Accounts payable and accrued liabilities

$

784,020

$

875,476

Customer deposits at Pitney Bowes Bank

599,976

640,323

Current operating lease liabilities

60,087

60,069

Current portion of long-term debt

58,111

58,931

Advance billings

89,014

89,087

Current income taxes

34,212

6,523

Total current liabilities

1,625,420

1,730,409

Long-term debt

2,076,054

2,087,101

Deferred taxes on income

199,769

211,477

Tax uncertainties and other income tax liabilities

19,054

19,091

Noncurrent operating lease liabilities

272,024

277,981

Other noncurrent liabilities

303,081

314,702

Total liabilities

4,495,402

4,640,761

Stockholders' deficit:

Common stock

270,338

270,338

Retained earnings

3,027,030

3,077,988

Accumulated other comprehensive loss

(863,811)

(851,245)

Treasury stock, at cost

(2,825,912)

(2,865,657)

Total stockholders' deficit

(392,355)

(368,576)

Total liabilities and stockholders' deficit

$

4,103,047

$

4,272,185

Three months ended March 31,

2024

2023

% Change

Global Ecommerce

(2%)

Revenue, as reported

$

333,265

$

340,641

Impact of currency on revenue

(719)

(2%)

Revenue, constant currency

$

332,546

$

340,641

Presort Services

7%

Revenue, as reported

$

169,807

$

158,902

Sending Technology Solutions

(2%)

Revenue, as reported

$

327,437

$

334,995

Impact of currency on revenue

(72)

(2%)

Revenue, constant currency

$

327,365

$

334,995

Consolidated

(0%)

Revenue, as reported

$

830,509

$

834,538

Impact of currency on revenue

(791)

(1%)

Revenue, constant currency

$

829,718

$

834,538

Three months ended March 31,

2024

2023

% change

Adjusted

Adjusted

Adjusted

Adjusted

Adjusted

Adjusted

Segment

Segment

Segment

Segment

Segment

Segment

EBIT (1)

D&A

EBITDA

EBIT (1)

D&A

EBITDA

EBIT

EBITDA

Global Ecommerce

$

(35,427)

$

14,033

$

(21,394)

$

(33,172)

$

14,431

$

(18,741)

(7%)

(14%)

Presort Services

40,329

8,758

49,087

26,905

8,523

35,428

50%

39%

Sending Technology Solutions

101,278

9,996

111,274

95,637

9,450

105,087

6%

6%

Segment total

$

106,180

$

32,787

138,967

$

89,370

$

32,404

121,774

19%

14%

Reconciliation of Segment Adjusted EBITDA to Net Loss:

Segment depreciation and amortization

(32,787)

(32,404)

Interest expense, net

(44,369)

(36,878)

Unallocated corporate expenses

(49,770)

(56,349)

Restructuring charges

(4,315)

(3,599)

Foreign currency gain on intercompany loans

4,638

-

Transaction costs

(2,690)

-

Proxy solicitation fees

-

(6,367)

Gain on debt redemption

-

2,836

Benefit (provision) for income taxes

(12,559)

3,250

Net loss

$

(2,885)

$

(7,737)

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

12,559

(3,250)

Income (loss) before taxes

9,674

(10,987)

Restructuring charges

4,315

3,599

Foreign currency gain on intercompany loans

(4,638)

-

Gain on debt redemption

-

(2,836)

Transaction costs

2,690

-

Proxy solicitation fees

-

6,367

Adjusted net income before tax

12,041

(3,857)

Interest, net

44,369

36,878

Adjusted EBIT

56,410

33,021

Depreciation and amortization

40,879

39,897

Adjusted EBITDA

$

97,289

$

72,918

Reconciliation of reported diluted loss per share to adjusted diluted loss per share

Diluted loss per share

$

(0.02)

$

(0.04)

Restructuring charges

0.02

0.01

Foreign currency gain on intercompany loans

(0.02)

-

Gain on debt redemption

-

(0.01)

Transaction costs

0.01

-

Proxy solicitation fees

-

0.03

Adjusted diluted loss per share

$

(0.01)

$

(0.01)

The sum of the earnings per share amounts may not equal the totals due to rounding.

Reconciliation of reported net cash from operating activities to free cash flow

Net cash from operating activities

$

(12,525)

$

(39,714)

Capital expenditures

(19,957)

(28,666)

Restructuring payments

14,989

4,641

Proxy solicitation fees paid

-

3,038

Free cash flow

$

(17,493)

$

(60,701)