Marc, good morning. and you, Thank
by our through guidance. followed Let XXXX then me fourth of I’ll an full-year start providing of our quarter. the take by overview the you results, details
when to website. be talking As GAAP adjusted in about with earnings of revenue basis comparisons found constant non-GAAP items, measures Reconciliations the will cash on on all and past, the going currency our forward on including be statements posted can earnings-related release our schedules unless press about a Investor in my an Relations when talking otherwise noted, flow. basis and
by giving start October. an update ransomware me Let Ryuk attack on the in
working insurance been cover to insurers. with As we events we our have last have we and these earnings noted diligently our on call,
no We was or that improperly evidence have seen accessed. employee customer data
and be by expected receiving portion XXXX. we the be in profit to impact Additionally, the of proceeds of insurance timing are to any covered expected to
will will recorded high our insurers there potential insurance continue any to new may arise. when The is of be amount that degree proceeds to received, a the be regarding and on work proceeds of insurance certainty claims we with
approximately approximately a estimating For interruption that to quarter by costs and impacted are result the attack related This business and flow incremental million is by we cash by revenue ransomware the EBIT million, attack. $XX $XX $XX million. the full-year, of free and fourth approximately
each revenue and I I within impact segment. our results, As discuss the will quantify on EBIT
take With year. prior you market third revenue When over this X% and that, consecutive year of billion, taken X.X% are over grew consideration, me growth. year, of $X.X into growth is prior through which was was the Revenue exits revenue results. our full-year let
X.X have we the approximately addition, ransomware by revenue impacted adversely growth In estimated attack points.
SendTech, shipping composition overall of was which revenue. products Commerce our and both revenue. revenue, by the represented spread overall of capabilities, at XX% and and generated was SendTech across Services of Looking XX% Commerce Services XX% Revenues
Adjusted attack. $X.XX. was was which and our was $X.XX, GAAP of to cash operations includes cash and million. within from an million EPS guidance impact range estimated GAAP free EPS the was flow $XXX $XXX $X.XX related was ransomware
We have approximately impacted attack estimated by free cash flow million. $XX negatively the ransomware
Looking the the cash year. uses We at of over our capital with for short-term billion the on ended allocation and investments just year sheet. and cash $X in balance
dividends cash our share million million For million the flow return repurchases. $XXX including free in $XXX and $XX common used year, we total a of to in to shareholders,
products. expenditures make and platforms new investments million, Our flat continue to $XXX to year, was existing essentially we capital year. in our technology totaled and the which Through prior facilities,
of we made also in million of restructuring Bowes, transformation payments. As Pitney $XX the ongoing part
healthy prior Within From a third-party the $XX entering from a ended for the which $XXX with perspective, we two of financing over Financial, billion year debt the million funded Wheeler is reduction we million are nearly with $X.X in debt, billion in $X.X a and year XXXX year new total years. and pipeline. deals last
clear debt and strengthen October been actions And have maturities plans of sheet. have balance our eliminated completion debt our with to XXXX. until the to and all the communicating We we reduced our date,
short-term on billion, into operating an on $X.X our with is you along our of composition associated and our investments sheet the take company implied $X.X roughly finance the basis of debt implied cash at of receivables billion with gross when balance debt the $X position today. account, billion today, debt Looking net
that used lender and secured we for Loan facility, we be bond which December, obtained in Additionally, allocated a announced prepay future commitments A Term near-term million B $XXX will to maturities.
prior we fourth now details due a the declined X the consideration, quarter, you impact delivered $XXX $XX When approximately the year. are quarter. In revenue of through X% is exits to decline of attack. Let revenue, from year from the which taken X%. million, is ransomware of or points The market the take from prior million in me into largely decline
from GAAP adjusted For free the million. the operations and and $X.XX $X.XX. EPS quarter, was flow was quarter million cash $XX EPS in cash $XX was was GAAP
During we we in free cash restructuring to the to was pay about shareholders. dividends $X CapEx flow million quarter, of $XX $X approximately payments and million. had used million
by in as services XX%, of P&L XX%. to X%, item grew sales line revenue XX% had services to prior XX%, support business financing compared year. of of starting Turning and supplies X%. We revenue equipment Rental and declines the performance grew of with
of our portfolio, of Gross million, margin XX.X%. is decline attack of a mix prior This ransomware a from points year, shifting lower profit X with was the ecommerce $XXX the reflects margins. and largely which fulfillment
R&D XX.X% or as expense expense revenue. SG&A was to million, point revenue. revenue. relatively million, Compared was a prior of million and $X X and to R&D as increased $XX revenue. $XXX a down of year, of percent was $X flat Compared percent SG&A of X.X% or year, prior
declined margin ransomware the decline, X.X%. was as $XX EBIT million primarily and EBIT the year, Compared by driven EBIT impact million well attack. to was margin gross declined prior X the from $XX $XX million by and as profit approximately points, EBIT
shares XX financing were XX.X%. including for is year. prior than flat end Average interest of million the weighted which tax to lower prior quarter was relatively expense, about and year. rate The was for diluted outstanding quarter the $X earnings which on taxes Interest million adjusted XX provision shares was at the expense, $XXX was our million, million,
revenue was me was is year. and discuss million, $XXX was over group, quarter. of Within Services this which of growth growth segments which was Global X% now our our $XXX million. of EBIT $XX prior business million X.X% Let Ecommerce, In performance million, the year. Commerce EBITDA of revenue was each prior over $X
approximately estimated that X impacted attack points. the by negatively $X ransomware revenue We or have million,
and services to to quarter. XX and growth double-digit across shorter to During of this delivery expedited return year, the their proportion of grew Delivery season, ecommerce volume volumes quarter, a clients shift our also services over in season. XX% higher parcel our which million grew despite led holiday a solutions. for We volumes parcels delivered parcels domestic guaranteed prior each consumers the
cross-border three year, growth, domestic we return this year. in XX% year, $XXX processed year. through offerings the million consecutive prior of the Volumes parcels, shipping quarters our growth and in prior resulting was again grew For which quarter over and marking growth solutions over once delivery for
EBITDA of the and quarter EBIT $XX was a loss break-even. in essentially was million
for the business. ransomware have to with million. approximately and the our with that by fulfillment associated in Along both costs impact, services investments We by impacted attack was the incremental growth, clients the loss $X of negatively mix estimated serve EBIT driven EBITDA ransomware
to these of on Let some each provide me color. elaborate
From processing East These capital an our upfront. are operational continue ramping we for on facilities expand operational required to and network, in volumes. major fully are which primarily and West now investment Coast, parcels perspective, expensive and markets up
of In continue growth attack, fourth services the required in support in quarter, the and backlog business, includes new efficiency the the ransomware the marketing. addition investments was due and to resources. partly in to of challenged created which additional invest Profitability engineering this facilities, business to we a fulfillment which significant to
the With the those we new had clients. to resources we based of quarter handle clients and ramp-up during incremental which experienced the volumes reallocate in, to on we brought to volumes needs
are are the working the taking of and pricing fit on align the actions margins operations business, clients in ensure the fulfillment capabilities to client we adjustments. including to enhancements within increased portfolio and We to improve volumes, review based our their targeted a with with right investments
mix with perspective, revenue service, parcel ramp-up continue a we From to volumes fulfillment delivery domestic our outpacing returns. and in
As about margin, margin. operates shift in total higher a returns which at the past, have we business in talked a the our creates
As delivery is scale, decrease. shift to to this impact mix and get fulfillment expected
are systems, reducing and improving business our in Ecommerce across the actions by efficiencies. We costs investing taking
of yet, results progress. While haven’t our these in we signs are themselves seeing manifested
For productivity. our to fourth quarter have prior profit reduce domestic done services, when quarter in example, the improved margins to work and gross drive we and year, to due prior compared the we within costs and delivery return largely saw
during parcel improving And relative competition. on-time fourth well volumes. we well network our prior also spite network metrics year to higher the relative quarter, domestic materially Our in performed delivery of believe, performed the to with
high digital disruption. shipping provides concluded API a consistently ecommerce of operate of seamlessly clients our to The service our transitioning we our to us and a win, functionality. recently very it platform platform and overall our API level with all economics. which services, our and to innovation improves modern This all is of clients our Within service, major to at as no allows access and new platform quality of label and high-quality new a old continues sunset
improving closer client productivity. Additionally, organization the and us bringing we’ve streamlined our to
than and a pricing market We is commitment our line fewer increase, of our continues surcharges price providing to have clients the implemented which simplified with competitors. in with our
lot this being a reduce grow to of business So costs improve bring continue efficiencies. to work new done volumes, and in within clients,
XXXX. them expect and We go starting benefits are as these seeing through the we we actions to to from ramp materialize
we a As expect result, profit significant improvements year-to-year.
with quarter. X% Within which we growth was prior are was Presort million, this $XXX Services, the very year. over of Presort pleased performance Revenue
investments revenue $X ransomware to million, negatively growth acquisitions Revenue our estimated in was that points. expand growth volumes. network, or by impacted clients the X with We along existing attack have in by driven approximately our
we growth across grew X% pieces which In of drivers over Mail. the processed categories, and all X.X mail with total, marketing was billion year. the Class quarter, Volumes in major First prior being
our Presort record, processing is in which over market year, a $XX growth in is This billion X% the For a new prior business was growth set that over year. in declining. volumes,
delivered around the business our Presort throughout margins and client measure product improving better launched the the obstacle leadership and business, improved experience. EBIT a initiative earlier of the labor quarter margins which continue team space year year. to took importantly major portfolio, every improve processes, in a markets innovate transportation in and The to full
prior Presort’s margins year. fourth EBIT and quarter increased quarter prior over
also are lanes. and with strong point as is our you’re a can optimizing what the it look business we synergies from delivery domestic to of proof seeing do sharing this and services, ahead. where We personal benefits This routes capability
where margin and million improvement EBIT XX.X%, was XX.X%. is significant and quarter prior in from the was year. EBITDA prior which were was $XX margin we $XX EBIT was million EBITDA and a
ransomware We $X negatively EBITDA by EBIT million. the approximately attack estimated have and impacted
Turning our of SendTech $XXX Revenue million, XX% prior from year. was was a to decline segment. which
the X%. market declined of exits, our revenue Excluding impact
decline X by by In equipment product was between lower and The differential negatively largely due estimated revenue which or sales, addition, million, we was driven install when attack $X revenue the to timing points. we have we ransomware impacted ship approximately it. when
orders attack. a Revenue not by which period. the due year impacted in with the negatively prior installed related a was to but installation mix interruption higher ended being equipment, quarter our requires We solutions part backlog with ransomware a sold shipped, higher of of business longer versus also to the
new were and higher family. growth partially The revenues supplies the business are in but capabilities our driven rentals in shipping declined, services being product support services. Financing offset business SendPro services and by by
EBIT EBITDA and primarily attack. were the XX.X%. EBITDA was $XX.X%. margins, the to EBIT impacted million to was equipment related by this million was to was and tariffs due Margins quarter margin $XXX ransomware $XXX costs lower in margin addition costs to sales related
million. EBIT estimated by the approximately attack and ransomware impacted have We EBITDA negatively $X
address Tablet, Auto. marketplace. SendPro the recently These We continue We to bring upcoming innovation months, Lite next-generation line. certain and in SendPro to to and refresh products of products low-end the XXXX, SendPro the the also products will C out the new SendPro family the of entire launched our introduce will are SendPro the the In our mailing of of shipping our we will we line products. we roll complete over the products and Essentially, product internationally. of course
XXXX Let me our annual update now you on guidance.
prior basis of adjusted be and For to be year, flow over of million $X.XX, growth to we Wheeler cash Financial decline be in our of million. to $X.XX on a $XXX free constant a revenue currency a a the the range full-year, expect of X% net range investment to $XXX in of X.X% range in to to EPS
Let to down me starting more these each drill with provide on of colors revenue.
our APIs, revenue labeling reflects and shipping longer an take guaranteed guidance to Pitney advantage tracking our clients of to service. Our through with elected services has no ecommerce for Bowes but remain decision delivery
guaranteeing no treatment the growth moves such, delivery risk net and revenue recognition. longer As take to associated from the we the with therefore,
revenue on earnings minimal While total cash impact flow. approximately this our it XXXX company’s impacts and X points, by the year-to-year free has
in we to single-digit a in growth mid result, As double-digit revenue returning XXXX, longer-term. but Ecommerce to grow expect range Global a
a mid grow low to faster in a and rate SendTech than to a at market range, expect to the all We on single-digit single-digit Presort constant decline basis. continue currency
items our With to per consideration. earnings regard several into XXXX guidance, share to adjusted take there are
but you to takes see how We business the let in contributing from in operational of adjusted grow and when EBIT growth expect the the segments some through EBIT year-to-year, There dollars performance in XXXX. take we XXXX. range dollar puts double-digit are the to me to XXXX compared
be organizational EBIT actions, efficiencies get and year-over-year our network. within bundling significant which in growth volumes scale, expect we improvement offerings, by operational of Ecommerce, continued to dollars, Within pricing to in with will driven along
year revenue these We result supports the a see profitable through This thesis growth expect going our of improvement improvement as to around actions. investment forward.
our around We grow. expect parcel Presort is to with our materialize and labor cost, in revenue synergies to EBIT P&L. point the with made The have we and here transportation progress taken have pricing we proof XXXX, actions services the domestic throughout and started
dollars, single-digit a XX%. in in in of improvement year-to-year Services margins EBIT XX% driven but a be EBIT decline dollars mid holding decline, Commerce range by the offsetting SendTech Partly the long-term revenue will to
SendTech than to it expect We XXXX. a rate lesser decline, be dollars EBIT will at
and We operations and reduce streamline revenue improve shared services spend, to our our expect functions further simpler particularly to across ratio. model with align expense to business
the EBIT it when of EPS our in tax At midpoint to headwind approximately dollars tax by XXXX level, a compare growth to the will be you $X.XX, offset XXXX XXXX. of rate
XXXX the new the by rate to be also on the a to an higher XX% of XX% to rate EBIT interest a return expect adjusted and higher earnings term slightly repayments to the expense We debt will loan. timing range. due lesser offset tax degree, dollars To on
at cash Looking XXXX. free flow for
third-party $XXX our in flow Excluding initiatives expect a the through million. investment financing to $XXX to we of range generate in million Wheeler, cash free
Wheeler, $XXX flow Net $XX $XXX new of to Wheeler. of to expect growth is We originations the for million approximately in cash our million million. guidance use free through cash free
shipping. Looking are through to particularly year, to shift portfolio timing the continues our at around growing, the that markets
for to continue will be our the quarter fourth revenue the year. result, quarter a As largest
quarter above in or full-year prior guidance, quarter attainment. midpoint we came revenue to our year’s would line, into annual the slightly the first expect first of Assuming be
a improved of to of X annual attainment As full-year than our approximately guidance. first year, to when again the assuming points the EPS expect quarter’s margins, result midpoint be higher adjusted we prior
So a debt journey, us dollar let capacity, well-positioned for me us This, expanding our our progress achieve in to profitable on with longer-term revenue and margins, transformation products by result strengthening leaves focus sheet, XXXX. improved transformation coupled wrap in confidence to manageable with which and in new we our up. In our streamlining which XXXX, gives balance In continue EBIT we shifting major investing profile, portfolio, made growth, an XXXX, goals. will innovation, growth.
your that, line. please questions. now open With we’ll Operator, the take
