Pitney Bowes Announces Third Quarter 2020 Financial Results

STAMFORD, Conn. — (BUSINESS WIRE) — October 30, 2020 — Pitney Bowes Inc. (NYSE: PBI), a global technology company that provides commerce solutions in the areas of ecommerce, shipping, mailing and financial services, today announced its financial results for the third quarter 2020.

“We grew revenue 13 percent in the third quarter, which is the strongest organic revenue growth rate we have achieved in well over a decade,” said Marc B. Lautenbach, President and CEO, Pitney Bowes. “I am extremely proud of what the team has accomplished, especially during these challenging times.

“Several years ago, we implemented a strategy to shift our portfolio to the growth areas of the market,” Lautenbach continued. “The investments we have made are paying off especially with our shipping-related revenues, which comprise half of our overall revenue. Although uncertainties remain given the Covid-19 pandemic, we are pleased with the momentum in our businesses and believe we are well positioned to capitalize on the market opportunities ahead of us.”

Third Quarter - Financial Overview:

  • Revenue of $892 million, growth of 13 percent
  • GAAP EPS of $0.07; Adjusted EPS of $0.08
  • GAAP cash from operations of $104 million; free cash flow of $85 million

Third Quarter - Other Highlights:

  • The Company repaid the $100 million drawn against the revolving credit facility.
  • The Company ended the third quarter with $820 million in cash and short-term investments.
  • Shipping-related revenues represented 50 percent of total revenue.
  • Global Ecommerce revenue exceeded $400 million for the first time, representing 47 percent growth.
  • Global Ecommerce Domestic Parcel volumes more than doubled from prior year.
  • Presort Services productivity measures resulted in 115,000 fewer labor hours to sort nearly 4.1 billion pieces.
  • SendTech shipping revenue was $32 million and grew at a double-digit rate.
  • SendTech shipped nearly 12,000 units of the SendPro Mailstation since launching in April.

Third Quarter Results

Revenue totaled $892 million, which was growth of 13 percent over prior year.

GAAP earnings per share were $0.07 and adjusted earnings per share were $0.08.

GAAP cash from operations was $104 million and free cash flow was $85 million. Free cash flow increased over prior year largely due to changes in working capital, particularly around timing of accounts receivable, which was partly offset by lower net income.

During the quarter, the Company repaid the $100 million drawn against the revolving credit facility, invested $21 million in capital expenditures, paid $9 million in dividends and made $5 million in restructuring payments.

On a year-to-date basis, GAAP cash from operations is $191 million and free cash flow is $186 million.

Earnings per share results for the third quarter are summarized in the table below:

 

Third Quarter*

 

2020

2019

GAAP EPS

$0.07

($0.02)

Discontinued operations

-

0.05

GAAP EPS from continuing operations

$0.06

$0.03

Restructuring and asset impairments

0.02

0.20

Adjusted EPS

$0.08

$0.24

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

Business Segment Reporting

The Commerce Services group includes the Global Ecommerce and Presort Services segments. Global Ecommerce facilitates domestic retail and ecommerce shipping solutions, including fulfillment and returns, and global cross-border ecommerce transactions. Presort Services provides sortation services to qualify large volumes of First Class Mail, Marketing Mail, Marketing Mail Flats and Bound Printed Matter for postal workshare discounts.

The Sending Technology Solutions segment offers physical and digital mailing and shipping technology solutions, financing, services, supplies and other applications for small and medium businesses to help simplify and save on the sending, tracking and receiving of letters, parcels and flats.

The sum of the segment results may not equal the totals due to rounding.

Commerce Services

 

Third Quarter

($ millions)

2020

2019

B/(W)
Reported

B/(W) Ex
Currency

Revenue

 

 

 

 

Global Ecommerce

$410

$279

47%

47%

Presort Services

128

131

(3%)

(3%)

Commerce Services

$538

$410

31%

31%

 

 

 

 

 

EBITDA

 

 

 

 

Global Ecommerce

($3)

($4)

34%

 

Presort Services

23

25

(11%)

 

Commerce Services

$20

$21

(6%)

 

 

 

 

 

 

EBIT

 

 

 

 

Global Ecommerce

($20)

($22)

9%

 

Presort Services

14

18

(18%)

 

Commerce Services

($5)

($4)

(28%)

 


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