Post on 19-Oct-2021
Pitney Bowes
Investor Relations Overview
August 2021
This document contains “forward-looking statements” about the Company’s expected or potential future business and financial
performance. Forward-looking statements include, but are not limited to, statements about future revenue and earnings guidance and
future events or conditions. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that
could cause actual results to differ materially from those projected. In particular, we continue to navigate the impacts of the Covid-19
pandemic (Covid-19), including its effects on the cost and availability of labor and transportation and global supply chains. Other factors
which could cause future financial performance to differ materially from expectations, and which may also be exacerbated by Covid-19 or
a negative change in the economy, include, without limitation: declining physical mail volumes; changes in postal regulations or the
operations and financial health of posts in the U.S. or other major markets or changes to the broader postal or shipping markets; the loss
of, or significant changes to, our contractual relationships with the United States Postal Service (USPS) or USPS’ performance under
those contracts; our ability to continue to grow and manage volumes, gain additional economies of scale and improve profitability within
our Global Ecommerce and Presort Services segments; changes in labor and transportation availability and costs; third-party suppliers'
ability to provide products and services required by us and our clients; competitive factors, including pricing pressures, technological
developments and the introduction of new products and services by competitors; the loss of some of our larger clients in our Global
Ecommerce and Presort Services segments; expenses and potential impacts resulting from a breach of security, including cyber-attacks
or other comparable events; our success at managing customer credit risk; and other factors as more fully outlined in the Company's
2020 Form 10-K Annual Report and other reports filed with the Securities and Exchange Commission. Pitney Bowes assumes no
obligation to update any forward-looking statements contained in this document as a result of new information, events or developments.
Forward Looking Statements
2
3
We are building a foundation to give Pitney Bowes the opportunity for long-term success. Today, we are a streamlined, global technology company focused on shipping, mailing and related financial services that operates in markets where we have true competitive advantage.
Pitney Bowes
Pitney Bowes is a global technology company
helping clients succeed in commerce by
removing the complexity of shipping and
mailing, and offering flexible financing options
Leading for the long-term
Driving portfolio to growth markets
““
4
Pitney Bowes by the Numbers
$3.6Bn
2020
Revenue
24%2017
$374MM
2020
Adjusted EBITDA
39%2019
37%2017
31%2019
$283MM
2020
Free Cash Flow
50%2020
27%2020
Financial Snapshot:
FY 2020 Adjusted Results
% of Revenue from Shipping
Products & Capabilities
SG&A % of Revenue
5
Who we are
Si
Core
CompetenciesShared USPS
and Carrier
Relationships
Embedded
Software
Capabilities
Integrated
Commerce
Cloud
A Simplified and Focused Business Model
Natural
Adjacencies
6
Shipping Mailing
Financing
6
Si
Global Ecommerce
7
7
Domestic Parcel ServicesF
ulf
illm
en
t
▪ National fulfillment network with proximity to customers
▪ Real-time visibility of operations
De
live
ry
▪ Combining proprietary delivery network with cost-effective USPS
last-mile delivery
Re
turn
s
▪ Proprietary label technology enables faster processing and advance
planning for merchants
Si
Global Ecommerce
8
8
Cross Border Services &
Shipping Solutions
Cro
ss
-bo
rde
r
reta
il
▪ Handle all facets of enterprise retail cross-border expansion
▪ Focused on global retailers & brands
Cro
ss
-bo
rde
r
de
live
ry
se
rvic
es
▪ Guaranteed quotes for international checkout
▪ Ability to handle prepaid and/or postpaid duties and taxes
▪ Diversified carrier network
Sh
ipp
ing
so
luti
on
s
▪ Easy to integrate with USPS and other private carriers
▪ 3-day delivery guarantee offering
▪ Flexible developer portal
Si
9
Operations Hubs
Return
Deliver
Postal
Network
Bypass
USPS
Facilities
Deep In
Postal
NetworkParcel Fulfillment
Parcel DeliveryCustomers
National
Linehaul
Network
Parcel Returns
Pitney Bowes Technology Platform
Integration
& Compliance
Business
Rules
Reporting/
Analytics
Shipment
Tracking
Cross-border Solutions
International
Consumers
PITNEY BOWES PHYSICAL NETWORK
Shipping
Solutions
Domestic Parcel
Global Ecommerce Network
NOTE: PBI operations hub diagram for illustration purposes only.
Integrated tracking provided to buyer and seller throughout every step9
Si
Global Ecommerce
10
10
Competitive Advantage
100% focused on Ecommerce
▪ Consumer first
▪ Helping our clients grow their business
▪ Removing complexity from post-purchase
experience
Differentiated client experience
▪ Purpose-built network
▪ Focus on mid-size and born-on-the-web retailers
▪ Integrated and customized services
▪ Transparent fee structure
Technology is at the core of what we do
▪ Data and AI enhance offerings and create new
services
Path to Profitability
Scale
▪ Platform business
▪ Continued growth in volumes
▪ Mix of business
▪ Pricing - general rate increase (GRI), surcharges
Operational improvement
▪ Automation
▪ Technology
▪ Upgrade facilities
Synergies
▪ Leverage Presort network for transportation
▪ Streamline processes/systems across organization
Si
Global Ecommerce
11
11* Source: U.S. Census Bureau, excludes motor vehicles, gas, food and beverage, grocery stores
The world has changed…
Si
Global Ecommerce
12
12
And we provide a differentiated experience
-12
-10
-8
-6
-4
-2
0
2
4
1Awareness
2Engagement
3Negotiation
4Onboarding
5Billing
6Issue
Resolution
7After 1-2 Years
UPS
FedEx
DHL
PB
Our differentiator
is client experience
How much did your
confidence
increase/decrease
with each stage of
the carrier’s client
journey?
Making it easier for clients is where we diverge from opaque competitors
Source: 09/2020 Cipher Research, 731 ecommerce executives
Si
Global Ecommerce - Purpose-built network and services for B2C ecommerce logistics
13
13
▪ Using tech, data science, AI and robotics to improve Service Level Agreements (SLA) and underlying cost
▪ Optimizing postal penetration and bolt-on higher-margin services
▪ Improving transportation leverage with targeted owned infrastructure
▪ Single API integration for easier client access and services bundling
Si
Global Ecommerce - Active Portfolio of Integrated Services
14
Physical
Digital
Returns
Delivery
Fulfillment Expedited/Digital
Standard
Cross Border
2020 Volume 2020 Revenue
Si
Global Ecommerce – Roadmap to tackle key cost drivers
15
15
▪ Reposition fixed/variable cost structure to capture leverage on volume increases
▪ Operational efficiency/execution – transportation, warehouse capacity and postal costs
❑ Transportation – Investing in owned fleet capabilities to provide cost leverage balanced with a growing partner
ecosystem to maintain flexibility and excellent client/consumer experience.
❑ Warehouse / Labor – Balancing investment in traditional automation and advanced robotic/AI capabilities to
improve cost leverage and work quality
❑ Postal / Final Mile - Optimizing network for best balance of service SLA at lowest cost
Revenue Variable
CostVariable
Margin
Fixed Cost Gross
Margin
16
Si
Presort Services
Ma
rke
tin
g M
ail
Fla
ts
an
d
Bo
un
d P
rin
ted
Matt
er
▪ Expanded mail class
coverage
▪ Automation eliminates
manual processes and
improves time to market
▪ New and growing service capabilities in multiple facilities
▪ Potential to participate in specialized ecommerce markets,
such as books or other flat parcels
▪ 2020 Marketing Mail Flats and Bound Printed Matter volumes
grew 38% over 2019
▪ Significant expansion in sorting automation equipment to
enhance BPM processing (e.g., high speed sorters) efficiency
Fir
st
Cla
ss
&
Ma
rke
tin
g M
ail
▪ Proprietary software
enabling the best possible
postal discount, optimizing
customers’ postage spend
▪ Full-service USPS
compliance ▪ 97.5% 5-digit capture rate
▪ Volumes processed 80% First Class / 20% Marketing Mail
15.2 15.4 15.8 16.6 17.2 16.7
2015 2016 2017 2018 2019 2020
Presort Volumes Processed (Bn)
16
17
Si
Presort Services
17
Key Value Propositions
Largest workshare partner of the USPS
Reduce mailing costs through scale and commingling
Minimize internal equipment and labor expenses for clients
Improve delivery times through proprietary Presort network
18
Si Local post office
Local USPS
SCF(1) facility Local USPS
NDC(2) facility
Mail transported to Presort
Services facilityUSPS last-mile
delivery to home
or office
Destination
USPS NDC(2)
facility
Destination
USPS SCF(1)
facility
Destination USPS
Post Office
Non-Presort
Services process
Presort Services mail
sorting
Company A
Client creates mail
USPS
NDC facility
USPS
SCF facility
USPS
facility
5
Presort Services Network
Mail Exchange strategically moves mail within the
region to maximize sorting and postal savings
Cincinnati
Columbus
Chicago
Indianapolis
Detroit
Cleveland
(1) Sectional Center Facilities (SCF) serve as Processing and Distribution Center (PDC) for Post Offices in a designated geographic area.
(2) Network Distribution Centers (NDC) are automated facilities that serve as centralized mail processing and transfer points for designated geographic areas.
18
19
Si
Sending Technology Solutions(SendTech)
Installed base of ~1 million postage meters
with 100k+ SaaS cloud users accessing
shipping and mailing through the cloud
750k+ SendTech clients with average
relationship of 8+ years
Market leader in capturing US metered postage spendDirect operations in
9 countries #1 global meter
market provider
80%+ of transactions
generated through
tele/web sales channel
New product introduction
SendKitSendPro
Enterprise
2016 2017 2018 2019 2020
SendPro
OnlineSendPro C
SendPro
P-Series
International
Roll-Outs
19
SendPro Lite /
SendPro Auto
SendPro
Mailstation
20
Si
Sending Technology Solutions(SendTech)
20
Meter Product Refresh
▪ Enhanced revenue streams
▪ Client loyalty
▪ Significant penetration opportunities
Adjacent Space Opportunities
▪ Leverage core assets
▪ Address new workplace environment
Growth from new capabilities offsetting core
mailing declines
▪ Improved retention
▪ Expand value proposition
Expanded E2E Sending Value Proposition
Complete Portfolio – Shipping, Receiving, Mailing, Analytics
GFS Financing for client’s Accounts Receivables
Strong growth indicators in Adjacencies
Double-digit growth YoY in Shipping Capabilities
$29MM funded via Wheeler Financial through year-end 2020
Well positioned for the ‘new normal’ hybrid workplace
IoT connected SaaS based Sending solutions accessible
from any where and on any device
~40% Increase in SendPro Online subscribers (2020 vs 2019)
SendPro Online SaaS Shipping Solution launched in UK & AU
Launched New Same Day Delivery & Delivery Assurance
Si
21
Captive
financier
Lending
institution
State chartered
bank
Issuer &
merchant servicer
Deposit taking &
FDIC Insured
Operating
Industrial Loan
Company (ILCs)
Financing
21
Provide integral support to SendTech services
Equipment
Enable ~85% of customers to
purchase the products that PBI
manufactures and sells
Postage
~75% of customers utilize a deposit
account or credit line from PB Bank to
pay for postage
Shipping
Provide financing for
SMB shipping needs
Robust portfolio performance▪ Customer /sector diversification
▪ Proactive portfolio monitoring
▪ Favorable write-off trends
Stabilization of lease receivable base▪ Rate of asset reduction improved pre-COVID
▪ Continued improvement with new capabilities
New product offerings▪ Deepening client relationships
▪ Enhancing return on capital
22
Financing – Expanding Financial Services to Important Adjacencies will Deepen Our Client Relationships and Enhance our Return on Capital
22
▪ Unsecured Postage Revolving Lines of Credit
▪ Prepaid Deposit Account
▪ Captive Leasing
From Exclusively
SendTech Related
To Broader
PBI Oriented
To Growth Enablement …
Leveraging our Strategic Advantages
To more traditional lending
capabilities to serve adjacent PBI
customer needs
▪ Shipping & Logistics Working Capital
▪ Presort funding solutions
▪ Commerce Services enablement
+
+
+
▪ Wheeler Secured Equipment CAPEX
Working Capital Solutions for Main St. Companies
▪ Broader Payables & Supply Chain Logistic Financing
▪ General small business Revolvers & Term Loans
▪ Selective Gov’t Program participation (SBA) as a risk mitigation tool
Si
23
Financing – A Significant Middle Market Customer Base, and Small Business Exposure Concentrated in Core Services and Capabilities, Mitigate Credit Risk
23
Large Cap
<$10MM $10 - $25MM $25 - $100MM $100 -$250MM
$250 -$750MM
>$750MM Public Admin
Middle Market
~40% of Portfolio
Small Business
~60% of PortfolioMunicipal
Other
Services
Auto Repair
Churches
Non-Profits
~10%Finance &
Insurance
Insurance
Mortgage Svcs
Title Agencies
~10%Professional
Svcs
Law Offices
Accountants
Consultants
~18%
Healthcare
Physicians
Dentist
Labs
~15%
Waste Mgmt.
Sanitation Svcs
~6%
Waste
Remediation Public / Private
Schools
Small Colleges &
Universities
~6%Education
v
North America Portfolio
24
Progress
Continued Active Portfolio Management and Organic Investments support the Company’s Transformation, Creating a Simplified, Focused Business Model
Portfolio
Actions
Organic
Investments
New
Brand
launched
SMB
go-to-market
changes
Partnered with
Amazon Web
Services
North America
Enterprise
Business
Platform
SendPro
P-Series &
SmartLink
launched
SendPro C-
Series
launchedShipping
API
platform
Expanded
Cross-border offerings
with eBay
Invested in
Global Carrier Services
Library
Commerce
CloudWheeler
Financial™
subsidiary
formed
2013 2014 2015 2016 2017 2018
Sold DMT
Production
Mail &
related
Software
Sold
Imagitas
Sold
Management
Services
Sold Nordic
Furniture
Sold Canada
Digital
Imaging
Solutions
Acquired
Newgistics
Joint venture with
Broadridge to form
Inlet
Acquired
Maponics
Acquired
EnrouteAcquired
Borderfree
Acquired
Real Time
Content
<< Presort Network Expansion >>
2019
Sold
Software
Solutions
Exited direct
operations in 6
European Markets
25
2020
SendTech
MailStation
launched
2020: 4th consecutive year of constant currency revenue growth
2013-2020: $1.7Bn reduction in debt-related obligations
2013-2020: $1.5Bn returned to shareholders in the form of dividends and share buybacks
Progress
Long Term: continued revenue growth expected as portfolio shifts to shipping and expands financing offerings
26
27
Long Term Strategy
Portfolio Evolution Further Shifts to Higher-Growth Businesses
SendTech54%
Software10%
Commerce Services
24%
Production Mail12%
2016SendTech
40%
Commerce Services
60% 2020
Commerce Services
~70%
SendTech
~30%Long
Term
(1) Annual revenue growth rate versus prior year. 2016 reflects revenue as reported prior to new Leasing Accounting Standard (ASC842).
Note: Commerce Services includes the Global Ecommerce and Presort Services segments.
11% Mid Single Digit+Pitney Bowes
Growth(1) (5%)
28
Commerce Services Fuels Top-Line Growth
29
Cross Border Solutions
Shipping Solutions
Marketing Mail Flats/
Bound Printed Matter
Domestic Parcels
Network / Logistics Optimization
Operational Efficiency
Client Experience Focus
Parcel Volume / Scale
Revenue: Low Double-Digit Growth
EBIT Margin: High Single-Digit / Low Double-Digit
$1.5$1.7
$2.1
2018 2019 2020 Long-Term
Low Double-
Digit Growth
$41
$- $(27)
2018 2019 2020 Long-Term
High
Single-Digit /
Low Double-Digit Margin
$billions
$millions
+9%
+27%
Note: Commerce Services includes the Global Ecommerce and Presort Services segments.
SendTech Revenue Bolstered by Expansion in Shipping and Financing Capabilities; Maintain Strong EBIT Margins
30
Revenue: Flat to Low Single-Digit Decline
EBIT Margin >30%
$1.67 $1.53
$1.41
2018 2019 2020 Long-Term
Flat to Low
Single-Digit
Decline
$559
$490 $441
2018 2019 2020 Long-Term
31.9%
Margin33.4%
Margin
30%+
Margin
Shipping Capabilities
International Launches
New Financing offerings
New Value Beyond Sending
Shipping Capabilities
Infrastructure Optimization
More Efficient Go-To-Market
New Value Beyond Sending
$billions(1)
$millions(1)
(7%)(6%)
31.2%
Margin
(1) 2018 SendTech financials recast to reflect new Lease Accounting Standard (ASC 842). Revenue growth rates exclude impact of currency and market exits.
Pitney BowesMid
single-digit+
growth
Low
double-digit
% Portfolio Revenue EBIT Margin %
Commerce Services ~70%
Low
double-digit
growth
High single-digit /
Low double-digit
SendTech Solutions ~30%
Flat to
low single-digit
decline
30%+
Long-Term Model: Revenue Growth Improvement as Portfolio Continues to Shift to Growth Markets; Earnings and Free Cash Flow Expansion will Follow
Long-Term Model
31
Note: Commerce Services includes the Global Ecommerce and Presort Services segments.
32
Capital Allocation
$-
$100
$200
$300
$400
2018 2019 2020 Long Term
Free Cash Flow
33
Continued Investment
- Shipping Capabilities
- Third Party Financing
- Automation
- Network Optimization
Portfolio Criteria
- Strategic coherency
- Market leader, or plan to become leader, within
respective market
- Earn an acceptable return
2020 Shareholder Return
$ 34MM Dividends to Common Shareholders
3% Dividend Yield
Free Cash Flow ($MM)
Capital Allocation Priorities Focus on Investments in the Portfolio, Balance Sheet and Shareholder Return
Long-Term Model: Revenue Growth Improvement as Portfolio
Continues to Shift to Growth Markets; Earnings and Free Cash Flow Expansion will Follow
$2.7 $2.1 $1.6 $1.5
$1.1
$1.2
$1.1 $1.1
$-
$1.0
$2.0
$3.0
$4.0
$5.0
2017 2018 2019 2020
Implied Operating Debt Implied Financing Debt
(1) Total Finance Receivables at 8:1 debt:equity ratio.
2017
funding for
Newgistics 2018
pay down
of $0.6Bn$3.8
$3.3
$2.6
Total Debt Composition ($Bn)
34
(1)
Reduced Total Debt by $1.3Bn since 2017
2019
pay down
of $0.5Bn
$2.7
2020
pay down
of $0.2Bn
Committed to Maintaining a Strong Balance Sheet
Debt Composition, at 06/30/2021 ($Bn)
Total Debt $ 2.43
- Implied Financing Related Debt(2) - 1.05
Implied Operating Company Debt $ 1.38
- Cash & S/T Investments - 0.81
Implied Net Debt $ 0.57
72
93
261
400 350
36
425 380
450
$-
$200
$400
$600
$800
$1,000
2021 2022 2023 2024 2025 2026 2027 2028 2029 2037 2043
Debt Maturity ScheduleAt 06/30/2021 ($MM)(1)
Notes Term Loans
Recent Actions:
▪ Manageable debt profile; next bond maturity 2022
▪ Reduces near-term refinancing risk
▪ Improved pricing of Term Loan B
▪ Extended the duration of maturities across capital structure
(1) Does not reflect Term Loan principal amortization
(2) Total Finance Receivables at 8:1 debt:equity ratio
35
Appendix
The Company's financial results are reported in accordance with generally accepted accounting principles (GAAP); however, in its
disclosures the Company uses certain non-GAAP measures, such as adjusted earnings before interest and taxes (EBIT), adjusted
earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted earnings per share (EPS), revenue growth on a
constant currency basis and free cash flow.
The Company reports measures such as adjusted EBIT, adjusted EBITDA and adjusted EPS to exclude the impact of items like
discontinued operations, restructuring charges, gains, losses and costs related to acquisitions and dispositions, asset impairment
charges, goodwill impairment charges and other unusual or one-time items. Such items are often inconsistent in amount and frequency
and as such, the Company believes that these non-GAAP measures provide investors greater insight into the underlying operating trends
of the business.
In addition, revenue growth is presented on a constant currency basis to exclude the impact of changes in foreign currency exchange
rates since the prior period under comparison. Constant currency is calculated by converting the current period non-U.S. dollar
denominated revenue using the prior year’s exchange rate for the comparable quarter. We believe that excluding the impacts of currency
exchange rates provides investors a better understanding of the underlying revenue performance. A reconciliation of reported revenue to
constant currency revenue can be found in the attached financial schedules.
Use of Non-GAAP Measures
37
Use of Non-GAAP Measures
Free cash flow adjusts GAAP cash from operations for cash flows of discontinued operations, capital expenditures, restructuring
payments, changes in customer deposits held at the Pitney Bowes Bank, transaction costs and other special items. The Company
reports free cash flow to provide investors insight into the amount of cash that management could have available for other discretionary
uses. A reconciliation of GAAP cash from operations to free cash flow can be found in the attached financial schedules.
Segment EBIT is the primary measure of profitability and operational performance at the segment level and is determined by deducting
from segment revenue the related costs and expenses attributable to the segment. Segment EBIT excludes interest, taxes, general
corporate expenses not allocated to a particular business segment, restructuring charges and other unusual or one-time items, which are
recognized on a consolidated basis. The Company also provides segment EBITDA, which further excludes depreciation and amortization
expense for the segment, as an additional useful measure of segment profitability and operational performance. A reconciliation of
segment EBIT and EBITDA to net income can be found in the attached financial schedules.
Complete reconciliations of non-GAAP measures to comparable GAAP measures can also be found at the Company's web site:
www.pb.com/investorrelations
38
39
Pitney Bowes Inc.
Consolidated Statements of Income (Loss)
(in thousands, except per share amounts)
2020 2019 2018
Revenue:
Business services 2,191,306$ 1,710,801$ 1,566,470$
Support services 473,292 506,187 552,477
Financing 341,034 368,090 394,557
Equipment sales 314,882 352,104 395,652
Supplies 159,282 187,287 218,304
Rentals 74,279 80,656 84,066
Total revenue 3,554,075 3,205,125 3,211,526
Costs and expenses:
Cost of business services 1,904,078 1,389,569 1,233,105
Cost of support services 149,988 162,300 178,504
Financing interest expense 48,162 44,648 44,376
Cost of equipment sales 236,716 244,210 236,160
Cost of supplies 41,679 49,882 60,960
Cost of rentals 25,600 31,530 37,178
Selling, general and administrative 963,323 1,003,989 1,002,934
Research and development 38,384 51,258 58,523
Restructuring charges and asset impairments 20,712 69,606 25,899
Goodwill impairment 198,169 - -
Interest expense, net 105,753 110,910 115,382
Other components of net pension and postretirement (income) expense (1,708) (4,225) 22,426
Other expense, net 8,151 24,306 7,964
Total costs and expenses 3,739,007 3,177,983 3,023,411
Income (loss) from continuing operations before taxes (184,932) 27,142 188,115
Provision (benefit) for income taxes 6,727 (13,007) 6,416
(Loss) income from continuing operations (191,659) 40,149 181,699
Income from discontinued operations, net of tax 10,115 154,460 60,106
Net (loss) income (181,544)$ 194,609$ 241,805$
Basic earnings (loss) per share (1):
Continuing operations (1.12)$ 0.23$ 0.97$
Discontinued operations 0.06 0.88 0.32
Net income (loss) (1.06)$ 1.10$ 1.29$
Diluted earnings (loss) per share (1):
Continuing operations (1.12)$ 0.23$ 0.96$
Discontinued operations 0.06 0.87 0.32
Net income (loss) (1.06)$ 1.10$ 1.28$
Weighted-average shares used in diluted earnings per share 171,519 177,449 188,382
(1) The sum of the earnings per share amounts may not equal the totals due to rounding.
Year ended December 31,
40
Pitney Bowes Inc.
Consolidated Balance Sheets(in thousands)
Assets
December 31,
2020
December 31,
2019
December 31,
2018
Current assets:
Cash and cash equivalents 921,450$ 924,442$ 867,262$
Short-term investments 18,974 115,879 59,391
Accounts and other receivables, net 389,240 373,471 371,797
Short-term finance receivables, net 568,050 629,643 653,236
Inventories 65,845 68,251 62,279
Current income taxes 23,219 5,565 5,947
Other current assets and prepayments 120,145 101,601 74,782
Assets of discontinued operations - 17,229 602,823
Total current assets 2,106,923 2,236,081 2,697,517
Property, plant and equipment, net 391,280 376,177 398,501
Rental property and equipment, net 38,435 41,225 46,228
Long-term finance receivables, net 605,292 625,487 635,908
Goodwill 1,152,285 1,324,179 1,332,351
Intangible assets, net 159,839 190,640 213,200
Operating lease assets 201,916 200,752 152,554
Noncurrent income taxes 72,653 71,903 65,001
Other assets 489,201 400,456 397,159
Total assets 5,217,824$ 5,466,900$ 5,938,419$
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued liabilities 878,303$ 793,690$ 773,350$
Customer deposits at Pitney Bowes Bank 617,200 591,118 574,777
Current operating lease liabilities 39,182 36,060 35,208
Current portion of long-term debt 216,032 20,108 199,535
Advance billings 114,550 101,920 116,862
Current income taxes 2,880 17,083 15,284
Liabilities of discontinued operations - 9,713 174,798
Total current liabilities 1,868,147 1,569,692 1,889,814
Long-term debt 2,348,361 2,719,614 3,066,073
Deferred taxes on income 279,451 274,435 253,560
Tax uncertainties and other income tax liabilities 38,163 38,834 39,548
Noncurrent operating lease liabilities 180,292 177,711 125,294
Other noncurrent liabilities 437,015 400,518 462,288
Total liabilities 5,151,429 5,180,804 5,836,577
Stockholders' equity:
Preferred stock 1
Preference stock 396
Common stock 323,338 323,338 323,338
Additional paid-in-capital 68,502 98,748 121,475
Retained earnings 5,201,195 5,438,930 5,279,682
Accumulated other comprehensive loss (839,131) (840,143) (948,961)
Treasury stock, at cost (4,687,509) (4,734,777) (4,674,089)
Total stockholders' equity 66,395 286,096 101,842
Total liabilities and stockholders' equity 5,217,824$ 5,466,900$ 5,938,419$
Pitney Bowes Inc.
Consolidated Balance Sheets(in thousands)
Assets
December 31,
2020
December 31,
2019
December 31,
2018
Current assets:
Cash and cash equivalents 921,450$ 924,442$ 867,262$
Short-term investments 18,974 115,879 59,391
Accounts and other receivables, net 389,240 373,471 371,797
Short-term finance receivables, net 568,050 629,643 653,236
Inventories 65,845 68,251 62,279
Current income taxes 23,219 5,565 5,947
Other current assets and prepayments 120,145 101,601 74,782
Assets of discontinued operations - 17,229 602,823
Total current assets 2,106,923 2,236,081 2,697,517
Property, plant and equipment, net 391,280 376,177 398,501
Rental property and equipment, net 38,435 41,225 46,228
Long-term finance receivables, net 605,292 625,487 635,908
Goodwill 1,152,285 1,324,179 1,332,351
Intangible assets, net 159,839 190,640 213,200
Operating lease assets 201,916 200,752 152,554
Noncurrent income taxes 72,653 71,903 65,001
Other assets 489,201 400,456 397,159
Total assets 5,217,824$ 5,466,900$ 5,938,419$
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued liabilities 878,303$ 793,690$ 773,350$
Customer deposits at Pitney Bowes Bank 617,200 591,118 574,777
Current operating lease liabilities 39,182 36,060 35,208
Current portion of long-term debt 216,032 20,108 199,535
Advance billings 114,550 101,920 116,862
Current income taxes 2,880 17,083 15,284
Liabilities of discontinued operations - 9,713 174,798
Total current liabilities 1,868,147 1,569,692 1,889,814
Long-term debt 2,348,361 2,719,614 3,066,073
Deferred taxes on income 279,451 274,435 253,560
Tax uncertainties and other income tax liabilities 38,163 38,834 39,548
Noncurrent operating lease liabilities 180,292 177,711 125,294
Other noncurrent liabilities 437,015 400,518 462,288
Total liabilities 5,151,429 5,180,804 5,836,577
Stockholders' equity:
Preferred stock 1
Preference stock 396
Common stock 323,338 323,338 323,338
Additional paid-in-capital 68,502 98,748 121,475
Retained earnings 5,201,195 5,438,930 5,279,682
Accumulated other comprehensive loss (839,131) (840,143) (948,961)
Treasury stock, at cost (4,687,509) (4,734,777) (4,674,089)
Total stockholders' equity 66,395 286,096 101,842
Total liabilities and stockholders' equity 5,217,824$ 5,466,900$ 5,938,419$
Pitney Bowes Inc.
Consolidated Balance Sheets(in thousands)
Assets
December 31,
2020
December 31,
2019
December 31,
2018
Current assets:
Cash and cash equivalents 921,450$ 924,442$ 867,262$
Short-term investments 18,974 115,879 59,391
Accounts and other receivables, net 389,240 373,471 371,797
Short-term finance receivables, net 568,050 629,643 653,236
Inventories 65,845 68,251 62,279
Current income taxes 23,219 5,565 5,947
Other current assets and prepayments 120,145 101,601 74,782
Assets of discontinued operations - 17,229 602,823
Total current assets 2,106,923 2,236,081 2,697,517
Property, plant and equipment, net 391,280 376,177 398,501
Rental property and equipment, net 38,435 41,225 46,228
Long-term finance receivables, net 605,292 625,487 635,908
Goodwill 1,152,285 1,324,179 1,332,351
Intangible assets, net 159,839 190,640 213,200
Operating lease assets 201,916 200,752 152,554
Noncurrent income taxes 72,653 71,903 65,001
Other assets 489,201 400,456 397,159
Total assets 5,217,824$ 5,466,900$ 5,938,419$
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued liabilities 878,303$ 793,690$ 773,350$
Customer deposits at Pitney Bowes Bank 617,200 591,118 574,777
Current operating lease liabilities 39,182 36,060 35,208
Current portion of long-term debt 216,032 20,108 199,535
Advance billings 114,550 101,920 116,862
Current income taxes 2,880 17,083 15,284
Liabilities of discontinued operations - 9,713 174,798
Total current liabilities 1,868,147 1,569,692 1,889,814
Long-term debt 2,348,361 2,719,614 3,066,073
Deferred taxes on income 279,451 274,435 253,560
Tax uncertainties and other income tax liabilities 38,163 38,834 39,548
Noncurrent operating lease liabilities 180,292 177,711 125,294
Other noncurrent liabilities 437,015 400,518 462,288
Total liabilities 5,151,429 5,180,804 5,836,577
Stockholders' equity:
Preferred stock 1
Preference stock 396
Common stock 323,338 323,338 323,338
Additional paid-in-capital 68,502 98,748 121,475
Retained earnings 5,201,195 5,438,930 5,279,682
Accumulated other comprehensive loss (839,131) (840,143) (948,961)
Treasury stock, at cost (4,687,509) (4,734,777) (4,674,089)
Total stockholders' equity 66,395 286,096 101,842
Total liabilities and stockholders' equity 5,217,824$ 5,466,900$ 5,938,419$
41
Pitney Bowes Inc.
Business Segment Revenue
(in thousands)
2020 2019 2018 2020 v 2019 2019 v 2018
Global Ecommerce 1,618,897$ 1,151,510$ 1,022,862$ 41% 13%
Presort Services 521,212 529,588 515,795 (2%) 3%
Commerce Services 2,140,109 1,681,098 1,538,657 27% 9%
Sending Technology Solutions 1,413,966 1,524,027 1,672,865 (7%) (9%)
Total revenue - GAAP 3,554,075 3,205,125 3,211,522 11% (0%)
Year ended December 31, % Change
42
Pitney Bowes Inc.
Business Segment EBIT & EBITDA(in thousands)
EBIT D&A EBITDA EBIT D&A EBITDA EBIT EBITDA
Global Ecommerce (82,894)$ 69,676$ (13,218)$ (70,146)$ 68,385$ (1,761)$ (18%) >(100%)
Presort Services 55,799 31,769 87,568 70,693 29,440 100,133 (21%) (13%)
Commerce Services (27,095) 101,445 74,350 547 97,825 98,372 >(100%) (24%)
Sending Technology Solutions 441,085 34,316 475,401 490,322 39,758 530,080 (10%) (10%)
Segment total 413,990$ 135,761$ 549,751 490,869$ 137,583$ 628,452 (16%) (13%)
Reconciliation of Segment EBITDA to Net (Loss) Income:
Segment depreciation and amortization (135,761) (137,583)
Interest, net (153,915) (155,558)
Unallocated corporate expenses (200,406) (211,529)
Restructuring charges and asset impairments (20,712) (69,606)
Goodwill impairment (198,169) -
Gain on sale of equity investment 11,908 -
Loss on debt extinguishment (36,987) (6,623)
Loss on dispositions and transaction costs (641) (20,411)
(Provision) benefit for income taxes (6,727) 13,007
(Loss) income from continuing operations (191,659) 40,149
Income from discontinued operations, net of tax 10,115 154,460
Net (loss) income (181,544)$ 194,609$
EBIT D&A EBITDA EBIT D&A EBITDA EBIT EBITDA
Global Ecommerce (70,146)$ 68,385$ (1,761)$ (32,379)$ 61,046$ 28,667$ >(100%) >(100%)
Presort Services 70,693 29,440 100,133 73,768 26,838 100,606 (4%) (0%)
Commerce Services 547 97,825 98,372 41,389 87,884 129,273 (99%) (24%)
Sending Technology Solutions 490,322 39,758 530,080 558,959 39,104 598,063 (12%) (11%)
Segment Total 490,869$ 137,583$ 628,452 600,348$ 126,988$ 727,336 (18%) (14%)
Reconciliation of Segment EBITDA to Net Income:
Segment depreciation and amortization (137,583) (126,988)
Interest, net (155,558) (159,757)
Unallocated corporate expenses (211,529) (185,919)
Restructuring charges and asset impairments (69,606) (25,899)
Pension settlement - (31,329)
Loss on debt extinguishment (6,623) (7,964)
Loss on dispositions and transaction costs (20,411) (1,359)
Benefit (provision) for income taxes 13,007 (6,416)
Income from continuing operations 40,149 181,705
Income from discontinued operations, net of tax 154,460 60,106
Net income 194,609$ 241,811$
% change
% change
Year ended December 31,
2019 2018
Year ended December 31,
2020 2019
43
Pitney Bowes Inc.
Free Cash Flow
(in thousands)
2020 2019 2018
Net cash provided by operating activities 297,887$ 271,961$ 344,653$
Net cash used in (provided by) operating activities - discontinued operations 37,912 (9,272) 7,916
Capital expenditures (104,988) (137,253) (137,810)
Restructuring payments 20,014 27,148 52,730
Change in customer deposits at PB Bank 26,082 16,341 21,008
Transaction costs paid 2,117 19,488 14,203
Free cash flow 279,024$ 188,413$ 302,700$
Year ended December 31,
2020 2019 2018
GAAP net cash provided by operating activities 301,972$ 267,883$ 344,652$
Net cash used in (provided by) operating activities - discontinued operations 37,912 (9,272) 7,916
Capital expenditures (104,987) (137,253) (137,810)
Restructuring payments 20,014 27,148 52,730
Changes in customer deposits at PB Bank 26,082 16,341 21,008
Transaction costs paid 2,117 19,488 14,203
Free cash flow 283,110 184,335 302,699
44
Disclosures using Social Media
Pitney Bowes announces material information to its investors using SEC filings, press releases, public conference calls
and webcasts. The Company already makes frequent use of its investor relations website to disseminate material
information, as well as social media platforms, including Twitter, Facebook and LinkedIn. Investors, buy and sell-side
analysts, media and influencers should note that the Company plans to continue to announce material financial
information using the Pitney Bowes investor relations website, SEC filings, and press releases, public conference calls
and webcasts. Pitney Bowes is notifying investors, media and others interested in the Company that in the future, the
Company may choose to communicate material information through its social media channels, or it is possible that
information it discloses through social media channels may be deemed to be material. Therefore, Pitney Bowes
encourages investors, the media, and others interested in the Company to review the information posted on the
Company’s investor relations site (https://www.investorrelations.pitneybowes.com/), Twitter (https://twitter.com/PBnews
and https://twitter.com/PitneyBowes), Facebook (https://www.facebook.com/PitneyBowes/), and LinkedIn
(https://www.linkedin.com/company/pitney-bowes/). The Company may communicate on social media platforms not
listed here as well as create new accounts in the future. Any updates to the list of social media channels Pitney Bowes
will use to announce material information will be posted on the Investor Relations page.
The information presented in this document is the Company’s best estimate as of August 2021. The Company does not
have an obligation to update this information.