Editions   North America | Europe | Magazine

WhatTheyThink

Pitney Bowes Announces Fourth Quarter and Full Year 2020 Financial Results

Press release from the issuing company

Stamford, Conn. – Pitney Bowes Inc., 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 fourth quarter and full year 2020.

"The fourth quarter was a remarkable ending to an extraordinary year,” said Marc B. Lautenbach, President and CEO, Pitney Bowes. “Revenue growth was the highest modern day, organic growth rate on-record for us.

“We have been on a journey to transform the business,” Lautenbach continued. “Even with the tremendous uncertainty in our economy and how the pandemic will play out, we are now poised to enter this next chapter of our transformation, profitable revenue growth. While I am proud of what the team has accomplished, we all recognize there is more work to do and we are ready.”

Fourth Quarter 2020

  • Revenue of $1.0 billion, growth of 24 percent on a reported basis and 23 percent excluding the impact of currency
  • GAAP EPS of $0.11; Adjusted EPS of $0.13
  • EPS reflects $0.03 in tax benefits primarily related to deferred tax balances in certain international tax jurisdictions.
  • GAAP cash from operations of $111 million; free cash flow of $97 million
  • The Company reduced debt by $31 million.
  • Shipping-related revenues represented 54 percent of total revenue.
  • Global Ecommerce revenue exceeded $500 million for the first time, representing growth of 60 percent over prior year.
  • Global Ecommerce EBIT dollars and margin improved from prior quarter and over prior year, with positive EBITDA in the quarter.
  • Presort Services revenue improved from prior quarter and was flat to prior year.
  • SendTech grew revenue, EBIT and EBITDA dollars from prior quarter and over prior year.
  • SendTech shipping revenue was $35 million and grew at a double-digit rate. 

Full Year 2020

  • Revenue of $3.6 billion, growth of 11 percent
  • GAAP EPS loss of $1.06; Adjusted EPS of $0.30
  • GAAP cash from operations of $298 million; free cash flow of $279 million
  • The Company ended the year with $940 million in cash and short term investments.
  • The Company reduced debt by $175 million.
  • Shipping-related revenues represented 50 percent of total revenue.
  • Global Ecommerce revenue of $1.6 billion, representing growth of 41 percent.
  • Presort Services processed a total of 16.7 billion pieces.
  • SendTech shipped 20,000 units of the SendPro Mailstation since launching in April.

Earnings per share results are summarized in the table below:

 

Fourth Quarter

Full Year

 

2020

 

2019

2020

 

2019

GAAP EPS

$

0.11

 

 

$

1.03

 

($

1.06

)

 

$

1.10

 

Discontinued Operations

($

0.01

)

 

($

0.98

)

($

0.06

)

 

($

0.87

)

GAAP EPS from Continuing Operations

$

0.09

 

 

$

0.05

 

($

1.12

)

 

$

0.23

 

Goodwill Impairment

 

-

 

 

 

-

 

$

1.13

 

 

 

-

 

Loss on Extinguishment of Debt

 

-

 

 

$

0.03

 

$

0.16

 

 

$

0.03

 

Restructuring Charges and Asset Impairments

$

0.04

 

 

$

0.06

 

$

0.09

 

 

$

0.30

 

Tax on Settlement of Investment Securities

 

-

 

 

 

-

 

$

0.07

 

 

 

-

 

Loss on Dispositions and Transaction Costs

 

-

 

 

$

0.01

 

 

-

 

 

$

0.13

 

Gain on Sale of an Equity Investment

 

-

 

 

 

-

 

($

0.05

)

 

 

-

 

Adjusted EPS

$

0.13

 

 

$

0.14

 

$

0.30

 

 

$

0.68

 

* 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

 

Fourth Quarter

($ millions)

 

 

2020

 

 

2019

 

 

B/(W)

Reported

 

B/(W) Ex

Currency

Revenue

   

 

   

 

   

 

 

 

Global Ecommerce

   

$518

 

 

$324

 

 

60%

 

60%

Presort Services

   

135

 

 

135

 

 

0%

 

0%

Commerce Services

   

$653

 

 

$459

 

 

42%

 

42%

 

   

 

 

 

 

 

 

 

 

 

EBITDA

   

 

 

 

 

 

 

 

 

 

Global Ecommerce

   

$3

 

 

$0

 

 

>100%

 

 

Presort Services

   

21

 

 

30

 

 

(30%)

 

 

Commerce Services

   

$24

 

 

$30

 

 

(20%)

 

 

 

   

 

 

 

 

 

 

 

 

 

EBIT

   

 

 

 

 

 

 

 

 

 

Global Ecommerce

   

($15)

 

 

($18)

 

 

19%

 

 

Presort Services

   

13

 

 

22

 

 

(42%)

 

 

Commerce Services

   

($2)

 

 

$4

 

 

>(100%)

 

 

Global Ecommerce

Revenue benefited from growth in volumes in Domestic Parcel, Cross Border and Digital Delivery Services. EBIT and EBITDA benefitted from the increased demand and a peak surcharge, offset by higher costs, particularly around postal, transportation and labor.

Presort Services

Revenue was flat to prior year driven by flat First Class revenue, a decline in Marketing Mail and growth in Marketing Mail Flats and Bound Printed Matter. EBIT and EBITDA margins were relatively in line with prior quarters. Compared to prior year, EBIT and EBITDA declined largely due to higher medical claims and increased labor costs as well as Covid-related direct costs. 

SendTech Solutions

 

Fourth Quarter

($ millions)

 

 

2020

 

 

2019

 

 

B/(W)

Reported

 

B/(W) Ex

Currency

Revenue

 

 

$376

 

 

$372

 

 

1%

 

0%

EBITDA

 

 

$126

 

 

$122

 

 

4%

 

 

EBIT

 

 

$118

 

 

$112

 

 

5%

 

 

Revenue growth over prior year driven by equipment sales and business services, partly offset by declines in support services, supplies and financing revenues. EBIT and EBITDA margins improved from prior year driven largely by lower expenses.

2021 Expectations

The Company expects annual revenue to grow over prior year in the low-to-mid single digit range, making 2021 the fifth consecutive year of constant currency growth. The Company expects adjusted EPS to grow over prior year. The Company also expects lower free cash flow primarily due to the changes in certain working capital items that benefitted 2020 and are not expected to continue at the same level in 2021.

Conference Call and Webcast

Management of Pitney Bowes will discuss the Company’s results in a broadcast over the Internet today at 8:00 a.m. EST. Instructions for listening to the earnings results via the Web are available on the Investor Relations page of the Company’s web site at www.pitneybowes.com.

Discussion

Join the discussion Sign In or Become a Member, doing so is simple and free