Stanley J. Sutula III
the and second Thank good quarter, our Marc, strategic In against initiatives. good continued to progress you, make we morning.
We the continued balance reduce structure, de-lever grow sheet. revenue, to and our
One grew prior significant the is of the dollars year. highlights EBIT over of our quarter that
this While journey, starting our we still are early in play see the to performance. in some of strategy our of out fundamentals financial
expense, million. of which announced, we software Another approximately significant majority our Production we as sheet, for proceeds and reduces sale That of previously proceeds supporting will flexibility. future And net March of preserves the million. $XXX redemption of use will August the our place highlight was take strengthens strategic and Mail redeem its balance business, $XXX DMT capacity interest to notes tomorrow, XXXX will X. a our net the This
statements otherwise when items, as always, be a supporting flow. statements. of talking noted, GAAP as measures can forward press constant reported note our my found on Also, in earnings-related our software statements and results, on on Reconciliations Turning an going basis our posted about financial non-GAAP when discontinued currency Mail adjusted please website. Investor with and will be comparisons are to that our including financial revenue basis talking unless all the about Relations in cash release and to its now operations Production earnings the
results Relations our of under financial recast reclassified Financial comparison provides statements last purposes. eight which Reporting, website for the Investor on posted have historical We quarters
This the revenue or million consecutive the of both basis. quarter, totaled second growth was $XXX prior revenue and XX% of the fourth over an quarter pro growth, For as-reported forma year. year-over-year
charges, for quarter. million, flow at the XX%. divestiture. Looking $XX XX%, interpretation benefit from primarily net our million grew Compared operations the Adjusted SMB operations was included and legislation, EPS Commerce restructuring free GAAP Services accounts further $XX cash related to to cash and GAAP payable flow accrued Software timing prior XXXX by revenue $X.XX and tax of from $X.XX was $X.XX. by increased Free due EPS liabilities. was largely grew of group, income revenue of the was the GAAP $X.XX, declined and discontinued to year, related of of X% million. to $X.XX recent $XX EPS cash
by capital payments This along We capital lower the prior partially working of year. expenditures with timing offset requirements. higher also tax other had was versus
of $X.X take quarter, $XXX creating short-term which total million, the just the notes million of will was debt of balance billion, the end flow paid higher common year. announced investments. to group. We capital about at and expenditures our is and the redemption prior which further we restructuring was Commerce we in payments. flexibility. which XXXX sheet Capital to for $XXX end $XX quarter, in investments Looking driven year, Services We in million, At than used our prior $XX million of cash million dividends our strategic $XX At the pay allocation, $XX delevering had in than shareholders. tomorrow, place totaled cash the under the million our million by quarter, $XX
million end repatriated $XXX through the we non-U.S. During of approximately quarter, of originally million $XXX essentially all of that the cash, repatriated and communicated. July, have we we the
Looking the pro to grew the from basis, Ecommerce. prior at revenue line incremental P&L, by On contribution starting growth grew largely continued attributable compared Global Business revenue forma services in the to by year. item as which performance XX%, with XX%, is Newgistics. a services business driven
a remaining million driven We the Compared to by spend and XX%. shift decline margin as At commitment was declined and continue million was year. deliver $XX headwinds growth SMB prior $XXX and by this X from savings of $X for support our end to The of XXXX, to-date operational least reflects of revenue, gross putting Gross in two-thirds at rentals services around primarily labor of million at a XXXX. profit portfolio, driven the mix of was of results points Newgistics, X%, initiatives the points Software or excellence year performance least million prior XX% sales despite of prior X%, our our with by of prior $XXX achieved X lower financing driven around to declines X% business. track our which was our of the year. lower improvement XX%. incremental reflects Newgistics, XX.X%. in organic grew X%, year. of the have well related SG&A was This as a which not by level, market had transportation to SG&A supplies year, SG&A the SG&A the we the year, Equipment in nearly nearly of on reduce addition us and is is shifting million quarter costs. gross decline of which revenue the over an which from not last XX.X% group. The of of $XXX portion on was of to this our businesses million of $XXX
reduce that spend $X will gross of prior percent of decline less million. $XX year, operational a is Our as R&D SG&A million to margin as which Compared in R&D drive X.X% to in Services and excellence we expense revenue, percentage as improvement or was the our expectation expense increased than initiatives Commerce continue will improve. margins outpace revenue.
As grew EBIT to EBIT addition $X points also our million of gross R&D take these about shifts primarily markets, as the profit advantage to to we driven XX.X%. and continue year, was EBIT portfolio. while Compared shift to margin relates spend prior opportunities. Newgistics margin portfolio to million, the growth EBIT $XXX by was declined of margin it X.X decline the to our
of were higher point, The $X.X and EBIT new including by the midyear At mostly about adjusted year. timing than than of XX basis which due is and the points annual Newgistics, our is certain XXX which year. the year resolution for prior XX.X%, of million, million to prior year. than $XX expense, our was year was XX Diluted million, over higher margin was XX.X%, examinations debt which points, rate quarter tax redemptions was weighted the would within interest Interest $XX earnings outstanding last the issuances Excluding taxes financing over million end on at higher was adjusted our increased guidance tax prior have to rate prior range. tax X the shares shares year. in provision about due expense, prior was which the million
our the discuss quarter. business each now performance me of Let segments of this
over was a Within EBIT XX% was $XXX was million prior a which Commerce year. year. prior revenue group of was EBITDA Global of which pro million, XXX% forma XX% X.X%. $X over was a revenue the group, was On basis, grew EBIT and for than Services the revenue $XX growth $XXX Ecommerce, and was million, X.X%. over million, from margin year EBITDA revenue was quarter In full Newgistics. included prior growth of margin incremental more
forma Newgistics, revenue on both growth benefited strong delivered a and pro fulfillment. basis, performance parcel in from and XX%
over growth revenue XX% generated Ecommerce prior Global Newgistics, year. Excluding
investments a initiatives costs million, Newgistics also incremental will EBIT to higher related over was acquisition. year, our drive EBITDA was mail experienced an quarter, around also in year in mail Mail transportation with quarter. per of board XX% this volumes increase $XX revenue Within of APIs hourly good increase of more Flats benefit but despite and largely increase continue than margin grow, EBIT and to partly labor and result was X% profitability. some a Class piece an which costs. X%, from X.X%, market assets Presort by a amortization we impact our labor was over Bound was $XX from the of Revenue experience by from volumes simplification, in was as through growth wages was the to of labor lower environment U.S.-based tax ago. quarter processed volumes as of by million. was revenue We previous lower clients. as the primarily driven EBITDA $XXX impacted investments the revenue the part upgrades. offset million processed. Class long-term as as driven macro EBIT Part margin EBITDA employees XX.X%. tripling well year margins optimization, was $X lower transportation driven and and a was business the First first for million, was We by of revenue of Volumes and shipping $X to by all as our our in partly more transportation, per the was network margins our labor the piece lower EBITDA is across EBIT margin processed, higher negative Incremental prior improvement due than XX.X%. margin increased increasing by also this million higher EBIT growth driven prior growth. higher Standard shipping a mail and driven impacted volumes. & impacted loss in Presort by our from which was as automation, legislation. continued These received well also nonexempt the of along and opportunities technology of well costs. was of growth year Packet intangible larger which Services, by
drive productivity. for contract labor We in labor. also an resulting employees nonexempt increase lower reductions increase attrition, wages saw our contract in Over the time, in will improved in and
We are quarter, these partly and the to these around margins. networks, leverage we to networks see costs while Newgistics this higher opportunity will our further and We taking impacted between of leverage able productivity margins to resulting mitigate labor improve be actions, this resources existing and and impact. transportation some Presort great synergies
deploying investing will are that and improvements reduce costs in we our and Additionally, and automation clients' expectations. meet process
improvement in EBIT million This given for and prior staffing quarter from quarter, for was double prior-year the a within was a due year revenue EBITDA products weaker business from of We lower coming strong lower free which in was million of Last this about opportunity grew America prior expected, group, tough $XXX and from SMB XX.X%, our organization. million, we a our which Equipment execution to $XXX digit. was our amount year-to-year a talked with X% X% cash. $XXX sales sales to In compare renewal $XXX sales Turning generate declined year. to an top-of-the-line was prior market was inside compared EBITDA and sales issues decline year. to decline prior the than year. from our within North due EBIT long-term XX% experienced equipment million, of revenue improvement is prior XX.X%. margin Mailing, group the which range. was year aligns model margin and long-term was
continue in We it an a and address to sales improvement product low- result. as saw our to middle-of-the-line
and around of Additionally, this financing, lower quarter. largely prior we our entered compared declined, backlog rentals supplies. quarter to sales as in equipment with impacted Recurring streams year, a which revenue revenue orders the
the services this for as products. half prior in first growing compared our moderated of our a a However, streams largely decline year in professional revenue, to as year. of result saw of and backlog services a the shipping-related We has in rate growth
traction Our that second less Since which the opportunity, the ahead our of units, getting end product line. XX% is nearly is place the new product the we good have quarter, XX,XXX in signifying this market. of launching we have C-Series through overall than shipped a opportunity great and to
we margin Total less growth offset and We mix over by strong Information average EBIT spend products as XX.X%. payments and margin year-over-year continue revenue taken. fourth which was Equipment UK the the In Management over gross and EBIT streams largely since saw XX% was partially the but small X% to standard the was Mailing, products. overall $XX lower was of last due EBITDA This $XXX decline million, also part to the $XX see XX.X%. EBIT attach printer of a XX.X%, from prior than growth implementation in good was Recurring of was the margins the within prior of year. sales improvement an our year, shipping expenses. was driven quarter four is million by in Germany. partially a International higher tighter of EBITDA benefited margins profit lower gross and range decline. the actions The XXX. rates, reduction revenue ASC execution quarters. which EBIT growth million, the of contributed than declined, and quarter. and from have by new was margin year. the legacy We our lease large terms, $XX EBITDA Italy, longer XXXX. Revenue in a year. deals prior the X have both improved time or over to Location which was EBIT performed is EBITDA XX% in and Intelligence, lower was Customer in decline Solutions, label million, was by has first that Software result XX.X%, and point sold, driven revenue prior revenue offset was million, million, largely In margin was which of was $XXX weakness $XX from this relative Data, to margin
indirect progress Additionally, make channel XX% to change a to prior behavior in from year. nearly compared deals second as quarter we where grew revenue. to the are revenue starting their are to shifting license continues revenue in The see subscription and
As mentioned, the our partner solely Marc lower on expenses. good was and million million EBIT XX.X%. EBIT experiencing deals we prior through by margin and higher and revenue was $XX was are EBITDA year driven was margin lift EBITDA was generated improvement The from margin XX.X%. channel. $XX
Let our update me you guidance. annual on now
We in of on a be to flow are annual growth, of currency in basis of of range guidance be XX% the EPS XX% revenue the cash reaffirming in million. $XXX constant $XXX free to $X.XX, to $X.XX million adjusted to range our to the range
a be guidance operations. discontinued and DMT Mail supporting for excludes accounted which Production as this its software, reminder, As will
on cash me our we expect quarter some been and the the has on fourth year. further what flow. historically, timing revenue, provide in earnings Let biggest From color perspective, quarter of a second half the always
our in to and our seasonality holiday season shifted to more portfolio Given the around fourth shifted Newgistics even of Global quarter, businesses. Ecommerce quickly with business shipping, the especially has our has the growth
Services items invest businesses. particularly and in our within network automation around We continue Commerce to optimization,
some in the half these start benefits as the well of of second year. business to our expect Newgistics of latter to more part synergies recognizing related the as We
track to on to spend of the savings our year. second through the targets continue expect achieve half those and We are
assist remaining reduction for addition, XXXX, third in spend start a we party of least of have we to achieving to us at lay the portion million. program gross In $XXX engaged foundation our as the
and to the Given some to portfolio quarterly the expect shift the dynamics, we third similarly of quarter second earnings our of quarter. our perform
around we continue to order portfolio, operational excellence to communicated company we to Earlier our were actions taking wrap me sustainable allocation move and Let up. capital year, this our in growth.
$XXX Production and Mail million have midyear we grow continuing business. spend the our reduced cash debt, the business, of overseas across divested As while from the DMT all reduced organization, in point, to repatriated
your have are the the we work more line. there progress, and While now questions. full we our we made for reaffirming good ahead is take will that, year. With Operator, open guidance we please know
