Pitney Bowes (NYSE: PBI), a global shipping and mailing company that provides technology, logistics, and financial services, today announced its financial results for the full year and fourth quarter 2021.
“The fourth quarter capped another important year in our transformation,” said Marc B. Lautenbach, President and CEO, Pitney Bowes. “While not without challenges, we delivered our fifth consecutive year of consolidated revenue growth. In the aggregate, SendTech and Presort grew revenues and EBIT year-over-year, which is a significant achievement. Global Ecommerce had a successful peak in terms of service levels with 99 percent of all committed parcels delivered ahead of the holidays; however, supply chain challenges and shifts in consumer buying behavior led to lower volumes, impacting that segment’s fourth quarter financial results.”
Full Year 2021
- Revenue of $3.7 billion, growth of 3 percent, fifth consecutive year of growth;
- GAAP EPS loss of $0.01, Adjusted EPS of $0.32;
- GAAP cash from operations of $302 million;
- Free cash flow of $154 million;
- Ended the year with $747 million in cash and short-term investments;
- Reduced debt $241 million and extended our maturity profile;
- Shipping-related revenues represented 50 percent of total revenue;
- Global Ecommerce revenue of $1.7 billion, representing growth of 5 percent over prior year, growth of 48 percent versus 2019;
- Presort Services revenue growth of 10 percent over prior year and EBIT margin of 14 percent;
- SendTech revenue declined 1 percent over prior year with equipment sales growth of 11 percent.
Fourth Quarter 2021
- Revenue of $984 million, a decline of 4 percent;
- GAAP EPS of $0.01, Adjusted EPS of $0.06;
- GAAP cash from operations of $85 million;
- Free cash flow of $39 million;
- Presort Services revenue growth of 16 percent and EBIT growth of 80 percent over prior year;
- SendTech revenue declined 6 percent over prior year;
- Global Ecommerce revenue decline of 9 percent over prior year, 46 percent growth versus 2019;
- Entered into a sale-leaseback agreement for its Shelton facility, which will generate approximately $50 million in proceeds and is anticipated to close in Q1 2022.
Earnings per share results are summarized in the table below
|
|
|
|
|
|
|
|
Fourth Quarter |
Full Year |
||
|
|
2021 |
2020 |
2021 |
2020 |
|
GAAP EPS |
$0.01 |
$0.11 |
($0.01) |
($1.05) |
|
Discontinued Operations |
– |
($0.01) |
$0.03 |
($0.06) |
|
GAAP EPS from Continuing Operations |
$0.01 |
$0.10 |
$0.02 |
($1.11) |
|
Loss on Debt Refinancing |
– |
– |
$0.24 |
$0.16 |
|
Restructuring Charges |
$0.03 |
$0.04 |
$0.08 |
$0.09 |
|
Gain on Sale of Assets/Business |
– |
– |
($0.03) |
($0.05) |
|
Goodwill Impairment |
– |
– |
– |
$1.13 |
|
Tax on Surrender of Investment Securities |
– |
– |
– |
$0.07 |
|
Transaction Costs |
$0.01 |
– |
$0.01 |
– |
|
Adjusted EPS |
$0.06 |
$0.14 |
$0.32 |
$0.31 |
* The sum of the earnings per share may not equal the totals due to rounding.
Business Segment Reporting
Global Ecommerce facilitates domestic retail ecommerce shipping solutions, including delivery, returns and fulfillment, and global cross-border ecommerce transactions.
Presort Services provides sortation services to qualify large volumes of First Class Mail, Marketing Mail, Marketing Mail Flats and Bound Printed Matter for postal workshare discounts.
Sending Technology Solutions offers physical and digital mailing and shipping technology solutions, financing, services, supplies and other applications for small and medium businesses to help simplify and save on the sending, tracking and receiving of letters, parcels and flats.
Global Ecommerce
|
|
Full Year |
|||
|
($ millions) |
2021 |
2020 |
% Change |
% Change |
|
Revenue |
$1,703 |
$1,619 |
5% |
4% |
|
EBITDA |
($20) |
($13) |
(48%) |
|
|
EBIT |
($99) |
($83) |
(19%) |
|
|
|
|
|
|
|
|
|
Fourth Quarter |
|||
|
($ millions) |
2021 |
2020 |
% Change |
% Change |
|
Revenue |
$473 |
$518 |
(9%) |
(9%) |
|
EBITDA |
($20) |
$3 |
>(100%) |
|
|
EBIT |
($41) |
($15) |
>(100%) |
|
Full year revenue growth was primarily driven by higher cross-border volumes. In the fourth quarter, lower revenues were driven by a decrease in Domestic Parcel volumes, which was partly offset by an increase in revenue per parcel. Full year and fourth quarter declines in EBITDA and EBIT were driven primarily by higher transportation and labor spend. In the fourth quarter, lower volumes also adversely impacted margins.
Presort Services
|
|
Full Year |
|||
|
($ millions) |
2021 |
2020 |
% Change |
% Change |
|
Revenue |
$573 |
$521 |
10% |
10% |
|
EBITDA |
$107 |
$88 |
22% |
|
|
EBIT |
$80 |
$56 |
43% |
|
|
|
|
|
|
|
|
|
Fourth Quarter |
|||
|
($ millions) |
2021 |
2020 |
% Change |
% Change |
|
Revenue |
$156 |
$135 |
16% |
16% |
|
EBITDA |
$30 |
$21 |
43% |
|
|
EBIT |
$23 |
$13 |
80% |
|
Strong revenue growth for both the full year and fourth quarter were driven by a higher net revenue per piece along with expansion in marketing mail volumes. EBITDA and EBIT improved significantly from prior year despite higher labor and transportation costs.
SendTech Solutions
|
|
Full Year |
|||
|
($ millions) |
2021 |
2020 |
% Change |
% Change |
|
Revenue |
$1,398 |
$1,414 |
(1%) |
(2%) |
|
EBITDA |
$459 |
$477 |
(4%) |
|
|
EBIT |
$429 |
$443 |
(3%) |
|
|
|
|
|
|
|
|
|
Fourth Quarter |
|||
|
($ millions) |
2021 |
2020 |
% Change |
% Change |
|
Revenue |
$354 |
$376 |
(6%) |
(5%) |
|
EBITDA |
$116 |
$128 |
(9%) |
|
|
EBIT |
$109 |
$120 |
(9%) |
|
Full year revenue declined marginally as equipment sales growth of 11 percent was more than offset by a 14 percent decline in Financing revenue. The decline in high-margin financing revenue drove lower EBITDA and EBIT. For the fourth quarter, revenue decline was driven by lower equipment and financing revenue, partially offset by higher business services revenue.
2022 Expectations
The Company expects annual revenue and EBIT to grow over prior year in the low-to-mid single digit range.
The Company expects to refine expectations throughout the year, especially as Covid and supply chain issues dissipate.
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.
Check Out the New Martech Cube Podcast. For more such updates, follow us on Google News Martech News