Open Session - USPS · 2016. 9. 27. · September 27, 2016 Washington, DC September 27, 2016 1 ....
Transcript of Open Session - USPS · 2016. 9. 27. · September 27, 2016 Washington, DC September 27, 2016 1 ....
®
Open Session
Board of Governors
Temporary Emergency Committee Meeting
September 27, 2016 Washington, DC
September 27, 2016 1
2 Preliminary
Preliminary Financial Results
August 2016
Open Session
Temporary Emergency Committee September 27, 2016
2 September 27, 2016
Preliminary
Preliminary Financial Results
August YTD (11 months) Prelim FY
(Billions) 2016 2015
Revenue (Excluding Temporary Exigent Surcharge) 1, 4 63.7$ 61.4$
Temporary Exigent Surcharge 2 1.1 1.9
Total Revenue 64.8 63.3
Controllable Expenses 3, 4 64.0 62.2
Controllable Income (Loss) 1, 2, 3, 4 0.8 1.1
Retiree Health Benefits Pre-Funding (5.3) (5.2)
Workers' Comp. Fair Value Adj. (1.2) (0.6)
Workers' Comp. Other Non-Cash Adj. 0.2 0.6
FERS Unfunded Liability Amortization (0.2) -
Change in Accounting Estimate 5 1.1 -
Net Income (Loss) 4 (4.6)$ (4.1)$
Volume (Pieces) 141 142
1 - Change in Accounting Estimate is excluded from Revenue for this presentation.
2 - Temporary exigent surcharge expired April 10, 2016.
3 - Before RHB pre-funding, non-cash adjustments to workers’ compensation liabilities and FERS unfunded liability amortization, which are excluded from controllable expenses.
4 - August YTD FY2016 has 0.25 more retail days and one more delivery day as compared to FY2015.
5 - Newly available data on prepaid postage resulted in a $1.1B decrease in the liability for deferred revenue - prepaid postage and a corresponding increase in revenue.
3 September 27, 2016
4 Preliminary
Volume: FY2016 August YTD vs. SPLY
FY2016 August YTD has 0.25 more retail days as compared to FY2015.
FY2015
141.5B
FY2016
141.3B 0.2B
FCM
Single-Piece
FCM
Presort Letters
& Other
Standard
Mail Total Shipping
& Package International
Other
(incl. Periodicals)
0.0
20.0
40.0
60.0
80.0
FCM Single-Piece
FCM PresortLetters & Other
Standard Mail Other (includesPeriodicals)
Total Shipping& Package
InternationalMail
19.1
38.5
73.1
5.7 4.2 0.9
18.2
38.2
73.7
5.6 4.7 0.9
Pie
ces
- B
illio
ns
(4.8)% (0.7)% 0.7% (3.4)% 13.5% 8.5%
4 September 27, 2016
5 Preliminary
Total Revenue FY2016 August YTD vs. SPLY: (including Exigent Surcharge in 2015 & 2016, but excluding one-time change in accounting estimate in 2016)
* FY2015 excludes a one-time, non-recurring accounting adjustment
FY2016 August YTD has 0.25 more retail days as compared to FY2015.
FY2015
$63.3B
FY2016
$64.8B $1.5B
FCM
Single-Piece
FCM
Presort Letters
& Other
Standard
Total Shipping
& Package
International
Other *
(incl. Periodicals)
(5.1)% (1.4)% (0.1)% (3.2)% 15.7% 2.2%
$0.0
$5.0
$10.0
$15.0
$20.0
FCM Single-Piece
FCM PresortLetters & Other
Standard Mail Other (includesPeriodicals)
Total Shipping &Package
InternationalMail
$9.5
$16.6 $16.1
$4.8
$13.8
$2.5
$9.0
$16.4 $16.1
$4.7
$16.0
$2.6
$ B
illio
ns
5 September 27, 2016
6 Preliminary
Shipping & Package Volume: FY2016 August YTD vs. SPLY
FY2016 August YTD has 0.25 more retail days as compared to FY2015.
FY2015
4.2B
FY2016
4.7B 0.5B
Priority Mail
Express
First-Class
Package Service Priority Mail
& Standard Post
Package
Services
Parcel Select
& Std. Parcels
(8.0)% 9.5% 3.5% 23.9% 2.7%
0.0
1.0
2.0
3.0
Priority MailExpress
First-Class PackageService
Priority &Standard Post
Parcel Select &Return & Std.
Parcels
Package Svcs
0.03
0.9 0.9
1.9
0.5 0.03
0.9 1.0
2.3
0.5
Pie
ces
- B
illio
ns
6 September 27, 2016
7 Preliminary
Shipping & Package Revenue: FY2016 August YTD vs. SPLY
FY2016 August YTD has 0.25 more retail days as compared to FY2015.
FY2015
$13.8B
FY2016
$16.0B $2.2B
Priority Mail
Express
First-Class
Package Service Priority Mail
& Standard Post
Package
Services
Parcel Select
& Std. Parcels
3.6% 20.6% 7.8% 36.9% (2.7)%
$0.0
$2.0
$4.0
$6.0
$8.0
Priority MailExpress
First-Class PackageService
Priority Mail &Std. Post
Parcel Select &Return Std. Parcels
Package Svcs
$0.7
$2.1
$7.1
$3.2
$0.7 $0.8
$2.5
$7.6
$4.4
$0.7
$ B
illio
ns
7 September 27, 2016
8 Preliminary
August YTD (11 Months) Prelim FY
(Billions) 2016 2015
Compensation & Benefits $48.8 $47.6
Transportation 6.4 6.0
Depreciation 1.6 1.6
Supplies & Services 2.5 2.4
Rent, Utilities & Other 4.7 4.6
Controllable Expenses $64.0 $62.2
Workhours (Millions) 1,062 1,035
1, 2
Preliminary Controllable Expenses
1 - Delivery days were one more compared to SPLY.
2 - Before RHB pre-funding, non-cash adjustments to workers’ compensation liabilities and FERS unfunded liability amortization, which are excluded from controllable expenses.
1
8 September 27, 2016
®
Quarterly Service
Performance Report
Temporary Emergency Committee Meeting
Open Session
September 27, 2016
David E. Williams
Chief Operating Officer
9 September 27, 2016
Quarter 3 Performance
Record Performance
Employee Commitment
Predictable Service
Quarter 3, Fiscal Year 2016
10 September 27, 2016
®
FIRST-CLASS MAIL
SERVICE PERFORMANCE
Quarter 3, Fiscal Year 2016
11 September 27, 2016
Actual SPLY
100 -
90 -
80 -
70 -
60 -
50 -
First-Class Overnight
96.74 95.76
Quarter 3, Fiscal Year 2016
Target
96.80
QTR 3
Actual
SPLY Var
12 September 27, 2016
Actual SPLY
100 -
90 -
80 -
70 -
60 -
50 -
First-Class 2-Day
95.90 94.06
Quarter 3, Fiscal Year 2016
Target
96.50
QTR 3
Actual
SPLY Var
13 September 27, 2016
Actual SPLY
100 -
90 -
80 -
70 -
60 -
50 -
First-Class 3-5 Day
92.84 85.94
Quarter 3, Fiscal Year 2016
Target
95.25
QTR 3
Actual
SPLY Var
14 September 27, 2016
®
STANDARD MAIL
SERVICE PERFORMANCE
Quarter 3, Fiscal Year 2016
15 September 27, 2016
Standard Mail Composite
Actual SPLY
91.00
100 -
90 -
80 -
70 -
60 -
50 -
Quarter 3, Fiscal Year 2016
95.71 91.85
Target
QTR 3
Actual
SPLY Var
16 September 27, 2016
Summary
Predictable Service
Drive Process Improvement
Employee and Industry Engagement
17 September 27, 2016