Financial Results Quarter 1 of Fiscal Year 2015 MTAC February 17, 2015.
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Transcript of Financial Results Quarter 1 of Fiscal Year 2015 MTAC February 17, 2015.
Financial Results
December YTD (3 Months) FY FY(Billions) 2015 2014
Revenue 1 $18.8 $18.0
Expenses 1, 2 17.7 17.3
Controllable Income (Loss) 1, 2 1.1 0.7
Retiree Health Benefits Pre-Funding (1.4) (1.4) Workers' Comp. Fair Value Adj. (0.8) 0.5 Workers' Comp. Other Non-Cash Adj. 0.3 (0.2)
Net Income (Loss) 1 ($0.8) ($0.4)
Liquidity Days (of oper. cash) 3 26 14Volume (Pieces) 42.6 42.0
1 - Retail and delivery days were even compared to SPLY.2 - Before RHB pre-funding and non-cash adjustments to workers’ compensation liabilities.3 - FY2015 liquidity days’ increase is primarily due to shift in timing of $1.8B in Payroll and $.4B EFT to Jan. 2, 2015.
2
Volume: FY2015 Q1 vs. SPLY
FY14 Actual FY15 Actual0.0
5,000.0
10,000.0
15,000.0
20,000.0
25,000.0
30,000.0
35,000.0
40,000.0
45,000.0
16,868.2 16,678.9
21,993.4 22,767.3
1,112.6 1,255.7 1,782.1 1,650.1
First-Class Mail Standard Mail Total Shipping & Package Other (includes Periodicals) International Mail
Pie
ce
s -
Bil
lio
ns
+1.4%
+3.5%
-1.1%
42.0 42.6
-7.4%+12.8%
3
Revenue: FY2015 Q1 vs. SPLY
FY14 Actual FY15 Actual $-
$2,000.0
$4,000.0
$6,000.0
$8,000.0
$10,000.0
$12,000.0
$14,000.0
$16,000.0
$18,000.0
$7,301.3 $7,567.3
$4,627.8 $4,978.7
$3,865.5 $4,291.1
$1,334.9$1,096.4$870.7$833.5
First-Class Mail Standard Mail Total Shipping & Package Other (includes Periodicals) International Mail
+4.3%
+7.6%
-18.3%
-1.2%
+3.7%
+10.4%
$18.8$18.0
$ B
illion
s
4
Shipping & Package Services Revenue: FY2015 Q1 vs. SPLY
FY14 Actual FY15 Actual $-
$500.0
$1,000.0
$1,500.0
$2,000.0
$2,500.0
$3,000.0
$3,500.0
$4,000.0
$4,500.0
$2,170.7 $2,306.0
$0.8 $1.0
$528.8
$606.4 $230.0
$240.1 $196.0
$194.2
Priority Mail & Std. Post Parcel Select and Return F-C Package Service Package Svcs Priority Mail Express
+10.4%
+27.7%
+3.3%
-0.3%
+5.7%
+12.9%
$3.9
$4.3
$ B
illion
s
5
December YTD (3 Months) FY FY(Billions) 2015 2014
Compensation & Benefits $13.6 $13.2Transportation 1.8 1.8 Depreciation 0.4 0.5 Supplies & Services 0.7 0.6 Rent, Utilities & Other 1.2 1.2
Controllable Expenses $17.7 $17.3
Workhours (millions) 293 287
Controllable Expenses
1 - Delivery days were even compared to SPLY.2 - Before RHB pre-funding and non-cash adjustments to workers’ compensation liabilities.
1, 2
6
• Liabilities exceed assets by approx. $46 billion
• The USPS has only 35 cents of assets to cover each dollar of its liabilities
A Deep Financial Holeas of December 31, 2014
1 Under multi-employer accounting rules, there are approximately $45B in obligations not shown on the balance sheet.
Significant profits over years and legislation are needed to recover.
Unrestricted Cash $ 7.1B Retiree Health Benefits $23.8B
Buildings & Equipment, $16.2B Workers' Compensation $17.9Bnet of depreciation
Debt $15.0BOther Assets $ 1.7B
Accrued Compensation, $ 5.0Bbenefits, and leave
Deferred Revenue $ 3.3B
Other $ 6.1B
Total Assets $25.0B Total Liabilities 1 $71.1B
ASSETS LIABILITIES
7
8
0123456789
1011121314151617181920212223242526
Sep
-13
Oct
-13
No
v-13
Dec
-13
Jan
-14
Feb
-14
Mar
-14
Ap
r-14
May
-14
Jun
-14
Jul-
14
Au
g-1
4
Sep
-14
Oct
-14
No
v-14
Dec
-14
Jan
-15
Feb
-15
Mar
-15
Ap
r-15
May
-15
Jun
-15
Jul-
15
Au
g-1
5
Sep
-15
Oct
-15
Lin e 6
Lin e 5
Lin e 4
Lin e 3
Lin e 2
FY2014- October FY2016 Liquidity
Days of Operating Cash Available
• Liquidity includes unrestricted cash plus available borrowing, up to $15B limit.
• FY2015 Days of Operating Cash – based on average operating costs disbursed per day ~$275M (FY2014~$265M).
Mid-October Balances shown - Low points after annual Workers’
Compensation payments to DOL
No payments for Retiree Health Benefits (RHB) Pre-Funding are included ($5.7B in 2014 and $5.7B in 2015)
19 days
Days
Actual
FY2014 FY2015
3 bi-weeklypay-days
3 bi-weeklypay-days $ 1 B
$ 2 B
$ 4 B
$ 3 B
$ 5 B
$ 6 BExigent price
increase began Jan. 26, 2014
$ 7 B
Preliminary Projection
23 days