Earnings call transcript Q2 2023

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Operator

Good morning and welcome to the Pitney Bowes Second Quarter 2023 Earnings Conference Call.

Your lines have been placed in a listen-only mode during the conference call until the question-and-answer segment. Today's call is also being recorded.

If you have any objections, please disconnect your lines at this time.

I would now like to introduce participants on today's conference call. Mr. Chief Ms. and President Lautenbach, Executive Officer; Marc Ana Officer; and Executive Vice Chief Financial President and Mr. Maria Chadwick, Alexander Brown, Senior Manager, Investor Relations.

Mr. call Brown with the a Safe will Harbor overview. now begin

Alex Brown

Included thank Good our about and for morning. Brown. business presentation And performance. I'm joining forward-looking Alex future us. in financial statements today's our you

that risks results cause to projections. be statements involve could our Forward-looking materially and uncertainties actual different from

and Form earnings risks reports report website Investor result we a www.pb.com More in update can our our do at our uncertainties Please the that as and these with statements of that by new to other in on mind obligation and located forward-looking press information Relations. clicking information not XX-K or XXXX any SEC undertake to about found be release, on annual filed are keep developments.

to used GAAP Also our in to materials, or non-GAAP that for in measures measures the the press the press release find discussed in attached you our reconciliations appropriate release. can presentation are tables

Finally, a slide spreadsheet our information and we have segment website. provided with on historical presentation

And turn over Marc. the to now, to call I’d like

Marc Lautenbach

And Alex. joining appreciate you you, this morning. Thank morning, everyone. us good I all

grew although quarter the played The from for first expected and we as were largely that field SendTech quarter profit Presort continued. as out the the less than SendTech on trends we second quarter transactions expecting.

quarter. a We half. the expect second those these well growing of quarter solid had revenue quarter third close both profit third in Presort transactions second positioned the Both to businesses quarter. and and for the for are

different continued to experience Ecommerce Global crosscurrents.

two clients how of our cross-border business largest they On to changed offerings. continued headwinds, hand, the as face one access our our

overall ecommerce expedited digital with business Our market. trend the

online. very began predict I've previous opportunity. calls Hard this a will be But it platform mentioned social opportunity interesting opportunity to large out. the roll to However, can how on come

second XX%. accelerating the in opportunity domestic create right quarter was around our parcel the value is business for parcel and quarter to Growth centered, where growth

is is retail growth and above than well consistent where stress. and are less some winning but are our expected, performance weights Price under the periods We clients new market. historical with

continued network service our and are the market. in Our well, very to competitive perform levels

progressing as what our with consistent in long-term are expected, and costs plan. was our Finally, are expected

business, the our foundation the cost confidence. dynamics me provide in this unpack because they Let of

unit improved quarter-to-quarter XX% Our year-to-year. and cost transportation for XX%

Going plan. forward our to long-term achieve

Our inflation, unit offset plan remaining inflation and flat, costs by fixed personal assumes cost nominal cost productivity trading as improving transportation with costs absorption improve. labor volumes relatively

relies right and well, on resumption Said cost fairly pricing growth market another of now. volume plan experiencing we're than way, the improvements, standard less

about we'll is program for details. schedule. lot well For work you quarter however, half. proceeding expected, the important of done. not We we as positioned how slightly give news the ahead we was if ourselves But our more a big me the Ana, second of got restructuring

we cost takeout of cross-border the we of our to Much as performance GEC is network. fine expected size and centered and business that the right account business for expense better than of for the tune reset

next years. We balance also refinancing, which for the completed several positions sheet the our

the earnings already improving the improves Next, this of We've diversifying of bank's sheet. fundamentally And receivables the power bank, good posture this leasing a on which our balance began strong. development our working buy bank our to captive our for from bank was bet. company, and been very

the case of the of USPS value Finally, Presort workshop improving business recognizing forward. economics the and the the rate substantial and discounts, our July our workshare clients USPS going expanded to program

that work well the the second we up to second set to and lots for very So us expected, fruition as half, came out summarize, going turned quarter of forward.

details through of turn the the quarter. operating that, floor over Ana to walk With the I'll financial to

Ana Maria Chadwick

good And Marc. Thank you, everyone. morning,

impact of as for my financial review, which and previously on revenue disposition our for a services. change border the information year-on-year the will Before be currency, comparable discussed the of digital basis, presentation I'll I begin a that discussed, free note revenue adjust

to activities. SendTech. as speak revenues other change noted, Ecommerce affects unless a lesser EBIT, Global I profitability EPS extent of an our Also, primarily such The to presentation affect otherwise EBITDA items change revenue will on adjusted This and and the does dollar basis. not

company decrease revenue to for for million, last period a million, the quarter. is X% which was Total $XXX quarter the compared second Gross X% the prior same for million $XXX decrease. profit a to compared of year $XXX year, the was

in largely the was of unallocated expenses prior variable from million with SG&A year timing million was employee ago, million $X were compensation. a year corporate an down from due million $XX quarter to SG&A $XXX $XX which and up

Interest up EBITDA $XX was $XX expense, and EBIT to Adjusted our is to $XX including on debt. $XX due million interest million finance interest million year. which compared ago, $X adjusted year to floating a prior million was higher million was $XX compared in rates million,

$X.XX in Global the a was EPS $X.XX unit prior noncash due our June a XX, EPS loss in segment to Ecommerce charge of to macroeconomic performance $X.XX was loss conditions. related EPS goodwill and GAAP Adjusted XXXX, in quarter. the compared Ecommerce changes $X.XX GAAP through year. impairment to the Global includes quarter in continuing

in a flow. a operating last year. the year. to source for flow quarter million, of down cash cash cash GAAP activities $XX from was million was use $XX of Turning million, prior compared CapEx $X from $XX Free breakeven. was to million

we dividends During $X the made in and payments. $X million in million paid quarter restructuring

prior reported of down our dive in I'll with quarter, million SendTech revenues the business to three $XXX compared Let's into segments. X% SendTech, year. start

up points make product refresh on year. which prior percentage We our continue to now the through are and from XX% is migration, progress IMI XX

shifts From term. several revenue upfront past over are results will largely offset the net placing spread financial lifecycle, fixed extensions. lease opportunities, corresponding a this a sales we term have of positive in cash by We flow. to margin This over equipment due where This product increase higher by lease stage the lower new equipment perspective, success, our is years. offset a in financing our in entering lease less to is now a new

X%. being second a with year compared transactions in out XX% the SendTech. to be coupled down only financing Shipping prior continues dynamics with played deferred spot sales quarter revenue equipment down This for and bright to

the shipping grew revenues. largest and receiving, our revenue prior remain encouraged in are segment enterprise We the segment growth. comprises year shipping In very products the over quarter we traction our especially XX% of XX% by related saw where now

and adjusted achieve to profit, SendTech business. drive than as revenue the initiatives segment over costs simplified to this Moving declined. EBIT prior faster year X% grew efficiencies We removed through

I will highlight two.

be while flat year-on-year. equipment also product offset margins These our resulted China, reorganized we supplier equipment actions and headwinds and network gross in manufacturing helped concentrated First, freight. less to of the cost in lowering mix

to service lower touch driving continue cost customer and our we more optimize sales Second, client's channels. operations, points to

via actions than For a maintaining an over the demonstrate These durability XX% an client chat XX% score. has U.S. resulted requests in the are automated service SMB example, decline satisfaction more handled function. points, XX% customer in total continue This of of customer while our touch to business.

financial I'll spend a on the of services of inside moment performance SendTech.

we positioning growing success Bowes our held quarter, significant finance Pitney long-term for receivables, financial progress by services, Bank. This made those at including the

and where lease of will also good in our the that the will bank enterprise and captive receivable a participate bank We be overall. initiatives, the select for financing initiated program,

delinquencies to healthy XX and to years. in receivables continue improving over its $X.X quarter the we grew over across level see trends Finance to million payment portfolio, our billion, $XX best with financing

decline. Next, of volume prior mail million X% X% volume yielding billion up the in expansion let's year. higher Presort. per piece pieces. sortation generated $XXX to offset revenue Total classes Presort in turn declined quarter, to X.X growth Revenue from and

segment for EBIT segment per More the team's Adjusted margin $XX points improvement an EBIT due compared the better to improved million, year. margin basis operational XXX specifically, was XX%, increase excellent to driving improvement XX%. margins The last quarter of Adjusted work in revenue piece. was to efficiency. highlight,

labor orders investments gains our Continued costs. transportation unit in lower productivity from and use

on July mentioned, and network Marc our improvements service. as strong the and that investments These help along our X technology rates value performance second new provides with will the drive Presort the continued half. implemented postal operational reflect continued USPS the Also, in client new rates

segment of million on X% $XXX prior to million, continues Let's to revenue a a $XX year. Cross-border loss versus contributed of performance. clients in segment XXX% access million cross-border and drove year. revenue heavily shift Adjusted down last loss compared $XX two lower over to call EBIT how declines in segment we our to described quarter's which segment. earnings Ecommerce, Global adjusted largest was weigh services, was last our The of in changes the year-on-year

Gross period. Cross-border revenue versus the million declined free versus $XX million was year million quarter. profit last $XX down and and against time border same excluding $X million prior $XX

to basis. changes expect we on quarter forward, sequential Moving in be a less significant cross-border

strong that several cost service set encouraged the progress We and domestic by growth, performance. leading These volume financial are continue for be improvement. strong stage improved indicators the parcel to levels, unit with in

items. Let me unpack these

the high in in reaching service scores, high with First, XXs competitive levels This we clients client bolstered the quarter. quarter want new satisfaction performance and on-time very our all-time delivery reached during an services. more weeks were several the

against Second, grew domestic XX%. is close revenue prior market were year million domestic the XX% up flat over volumes parcel that parcel to $XX

Third, drove X% higher year volumes prior unit lower and coupled with operational cost improvements lower quarter. versus X% versus prior

costs long-term labor are and model. in line our with now transportation Our

Unit periods. XX% quarter, transportation labor prior costs X% same and versus XX% XX% against declined and versus the declined year costs and prior

in with pricing per lower of parcels overcapacity to a combined quarter, similar market However, mix last lighter weight resulted from revenue parcel. pressures

our has which essential to and unit higher average have offerings, address more the per come In dynamics also in started already improvements margin. addition, regional winning issue, which, absorbed to with in market, been revenue XXXX the We per at on These our a parcel. clients, delivery volume revenue impacted this parcel signed newly cost.

we our volumes ramping scale into to in expect and as XXXX. half, up the from move start We new second clients

expense completed reduction. plant the operating an significant a From headcount we portion perspective, of

These consolidate also our have of second progress expenses going marginally quarter, the in to second to the facilities, plan year, third process forward. and the three of total, and will on further the in all facilities. benefited half the We occur In close actions will benefit provide in started quarter. made we which

second building online third the attractive the in of revenue parcel required blocks, with segment. combined said, for the the actions in to in we quarter. expect long-term That pressure half per are Cost year major expect more on incremental profitability continued volume, come we the

reduce to cost gears last headcount We restructuring in shift announced we the resulting meaningful charge on and made million. centers, and discuss more me of the $XX quarter. shared shifted Let processes plan progress, service restructuring reduction and

annualized XXXX of Ecommerce. from and the plan by of million our the $XX reaffirming Global in restructuring productivity measures are end target We savings

Next, regarding our sheet. several actions capital structure. significant balance We to took strengthen

$XX bringing bought the million we total of the bonds to year-to-date. purchase $XX quarter, in the million open During market,

as well $XXX used Net our proceeds balance refinancing, we the will notes, XXXX. March offering raised a our our XXXX. After importantly, loan in of XXXX be this Most portion remaining earlier A. next in will this private redeem maturing as million placement week, a to of maturity be term

Moving to guidance.

our year full be XXXX, lower of on we basis. For the comparable to expect guidance, a flat relatively on revenue end

continue to adjusted We outpace performance expect percent change in EBIT revenue. the to

anticipate Ecommerce. We Global third and also incremental at improve EBIT quarter in quarter to versus volumes revenue second

in actions case Presort rate cost New and materialized.

momentum cost improvement position in cross-border In and Presort And service conclusion, quarter, half. for a the in well, growth SendTech strong strong domestic with parcel remained while Ecommerce profit unit levels, volume Global headwind the growth. second maintained and

please the questions. to open Operator, call

Operator

Instructions] Company. Please ahead. with One Anthony and to [Operator you. moment, go Sidoti Thank we'll Lebiedzinksi go

Anthony Lebiedzinksi

the thank for taking questions. Good morning. you And

a So bigger bit of first, maybe a picture I question. guess little

so can you the since What is Board regards was new as share public far initial Board? far, first the as assessment the call this of your of So us in changed. with to Directors

Marc Lautenbach

was here's through - were following, Board. the highly And They we about I great we on passed engaged, terrific. with lots the the say great that I went say listen information. of new So the lots onboarding of members Board would questions. hopefully, what ask would

So would thing I that's say. the first

Chair, the thing, Board committees of unanimous. were votes those all the reconstituted So, second we as the and

you'll So move to coming people forward. see together

would effort existing members And members then value, as entire Board you consistent Board fairly I I There's as for how shareholder the that. would beyond drive with would to though Board, expect. a new say, well the intensive say

Anthony Lebiedzinksi

it. Got

then, the regards so, biggest within headwind in Okay. that. that. Thanks to for was obviously, cross-border And GEC

looking So, to to were How can cross-border, if ballpark on kind the the profitability of have of been maybe you numbers estimates? we exclude just comment GEC? could

Marc Lautenbach

kind markets. Yes, with I and trade domestic expedited would increased parcels say the directly profit of

that deterioration I some the it remarks revenue profit of somewhere, the the in everything, cross-border in progress think, made. and and said consumed know, Ana her then you rest or of the segment

that's going to the So one right find way its and other. level or

it's And we know, long-term domestic plan. in the where back opportunity you I as But all along, value creation we've said, and is, to, go parcels. contemplate our as

continue So, in doing keep of and and best I to now the their But, we creating our would say the through parcels. some their noise domestic teams it. cross-border on the work way results kind right prize, that's is - eye the and to

go exactly, bit if And in better well the if dynamic, you costs behaved would the kind second quarter the through was above growth unit of partial market. levels not we terrific, than that have a on per thought, little of revenue a and endpoints some there's phenomenon. market a service kind plan. of Honestly, is The were consistent with bit pressure little are piece, the of long-term The which terrific.

new little on, focused piece, a that slightly that customers because And of brought they're regional the come much different more of revenue bit some we've of types services. on with per

less per they bring piece, less revenue they while bring also therefore, costs. So

that piece, more dynamics the way we that revenue and confident So, that plan. working the are more the precisely out the long-term get cost, said would those we per we the the expect

Anthony Lebiedzinksi

Got it.

so sort would quarters. just you as that sub-segment divest, as far been challenge look biggest out that's you and is maybe or consider? of not to something that's then, that could a cross-border, to And perhaps carve Is - for the follow-up so Okay. few -

Marc Lautenbach

portfolio this the absolutely economies they all mean, I across scale same the share we optionality. efficiencies board. is the and together - of and I've time, always structures certainly those we that, would consider get maintain At No, way said, things. can in we and and a true put

was rest have is a so saw proof degree we we if kind cross-border border I chose the So, optionality. say that the And the you would business, border with same that in business pudding of and exit. free a business the of it free to of - that

Anthony Lebiedzinksi

Got it.

client the see will per in quarter, Okay. the in And down think the then point, you so flattening, given in that that maybe something? or Or of potential something start Is revenue piece the some expect far, wins well? and could the as dynamic, that of wins third I or know, quarter that, have you you at would you - that is mentioned that that reversal new to kind be fourth just you do a maybe client new pipeline? and is

Marc Lautenbach

of Obviously, are is are what touch a client would now. buying, piece, et say, per revenue depends for quarter-to-quarter of much what I hitting clients on dynamics, a consumers question so me that ball, right cetera. the

some I transportation year-to-year be you likely of declined I if bit clients, same at do revenue that of but expect the will new decline the little per a RPP, cost, look again, - So guess amount. it in down. Because piece quarter, second the

rotate got over to one particular basis. easy margin. you at it's variable, We look client at a So, look on to really contribution the

reach kind at cost at one you looking So to without of attendant, conclusion. looking wrong the could variable the

Anthony Lebiedzinksi

best Well, I'll thanks. the Right. it. of luck. caller. pass on And it Got to next

Marc Lautenbach

you. Thank

Operator

go can next we And Please go with Northcoast Kartik to Mehta ahead. Research.

Kartik Mehta

Is way cross-border a for business. temporary? you? it a we've reposition to I profitable know maybe this make I you if issue about Marc. just or wondering, business I'm think right wondering a issue? And the is now, the temporary a you it's drag, do need conversation is morning, lot there's to and volume? Good And had it secular it's it a of I'm So, know

Marc Lautenbach

expect as we to stabilize to around I think concentrated be that's relationships a and that's a in candor, issue bit to look of exchange dynamics, change customer determined problem. evolved. as don't it a Yes, rates of customers, Those business, said so little highly it's I to less the all to touch, is

forward. So, business a mark that it's evolves I cross-border how question going think of

where to the chunk kind marketplace. We'll that's incremental and moving got out again, the of back that to where would other. business, long-term your EBIT the all work rotate forward draw you revenue plan, that - things if to mean, I'm the questions, of one if or think in the itself business. is look way at back your not, biggest it's it's the that's domestic the parcel cross-border confident some I But the get I or is, attention over I cross-border, easy in

Kartik Mehta

warehouses, I of automating on paying lot that you're better. of must be distribution doing of you the obviously, Marc, a where do a as facilities, seeing the that then those was you some know lot and And one stand things of dividends were kind

You're seeing cost? lower unit

Marc Lautenbach

Yes, investment. the redundant with say I most automation would are we

it. is, had when the case, front would was in planned. We weeks that couple is process great the sites a opportunities that in some I have I automation that are with automation. some business - in deployed say say, the using team what know, of But, producing would as was We it productivity deploying some got new them. a the deploying review that aggressively are ago. We is you we've contemplated the and got of

Kartik Mehta

one still salespeople make are their from And are that parcels the maybe where Marc, to hard looking changing e-commerce is a XX.XX looking outsource in more brought your to last customers or little are What that is question, company just companies are labor environment bit all? is hearing and as attitude or to at or get, today's efficient. you

Marc Lautenbach

I'm not first, the understood At question. sure I

Kartik Mehta

their say, all like to hi over take needs, for parcel you outsourcing a company to Just the shipment parcel process us? entire coming

Marc Lautenbach

a we logistics Well, - and the of so chain. provide portion total

would say One terrific a the that very point Postal the benefits economics the the of customers a our do final in got a have business one thing don't larger delivery, and as more recreating. customers, others of is, Service selective. say that to mail outsourcing, model, we economics little of more couple you time I are things. is end-to-end. would more hard at bit are interested mid-market look I would the So, I whole

in our as I would middle. say it to relates capabilities the

And competitors. with. our to versus we're competitive, very very, are costs labor more our costs, deal unit flexible Our

middle Network. of Postal to capabilities of nice to mail So, the a the get we for Service economic parcels provide clients for veneer end

Kartik Mehta

I appreciate Marc. it. Thanks,

Marc Lautenbach

Yes.

Operator

We'll with one question. time have we ahead. go more to Matt for go Baird. And Please Swope

Matt Swope

good Mark Ana. Hi, morning, and

Just last GEC. one from on

cross-border, Ecommerce took quarter? had out Global have the You would EBITDA for positive

Marc Lautenbach

get have of performance that EBITDA, either would what in I detail, what level I going performance Yes, to said would our I'm not just cross-border, reiterate, to better. is your been say, take

Matt Swope

the about - et How And you tied I've one that for before in bank Okay. is make million cash side, on you, of or asked short-term Fair couple you us overseas enough. and odd again, could a investments? you have of cash to - characterize much versus times the cash on to cetera? up available $XXX

Ana Maria Chadwick

Sure.

So is then cash is and the rest us to about hand, available third the between a as and U.S. on that of bank international.

Matt Swope

And being just so theoretical. again, highly

all If still need you you deploy run that to to chose cash of $XXX would be business? third, to of keep able million Or do that the around? some you

Ana Maria Chadwick

No, that working I good amount need run of my a to needs. capital

Matt Swope

you. Got

- to When the does the is cadence with And and the of happen? next meetings Okay. your is maybe Marc, guy's or back What question. how Board? meeting then often that Board

Marc Lautenbach

mean, we would I I I up frequently would altered to say speed. just they're accommodate schedule there's the right say Board because coming the more it new varies. members. now, Board more to maybe

not active to very now right se. cadence engaged and would it's So, a specific But on say going comment I the per I'm Board.

Matt Swope

No, sort out that's to of what fair. focus the might for can Maybe second. And in just interested are come businesses then that on two other people imagine a you that. of

revenue SendTech nice should and going of mix in showed talk just the you a side, forward? little Can expect you some what bit on that we SendTech the challenges the profitability about still. profitability On face in

Ana Maria Chadwick

Sure.

a we're So continue remarks revenue From perspective, on touched I during at anticipating. we my margins profitability this that the those here. expect to

up of concept XX% than the a are for out we their have put an new conversion, those or to new renewal five. extension being through of product instead IMI longer four product now a because of lasts our are leases more clients mix coming to opportunities that As the

we playing is that with line. revenue that the less profit we stream equipment of the better what sales will dynamics So, good see upfront, coming bottom flows renewals out and and will a see the to through very in comes margin a original which more

cash So those net-net, thing as SendTech durability is very of a in the anticipate a positive from we flows segment.

Marc Lautenbach

the margins to long-term mean the I continue they expect you kind give where we I'll those of are plan. CES. through

we we've five years. had long-term years next expect for their update So, margins plan, all businesses that we just the the the the like margins the five last of experienced are and kind

Matt Swope

pressure So, performance maybe we the profitability on see of the bit trend same solid revenue a little of there's on where but side, kind the side?

Ana Maria Chadwick

Correct.

Matt Swope

profitability, about the the good numbers of of Could where conversation where speaking goes Presort about talk sort you same exceedingly And great. Presort? were in strong. That's profitability revenue forward and

Marc Lautenbach

Yes.

Let me just make a connection.

look at the you Presort Ecommerce. Global absolutely were some the for think To I they in Presort, poster is ways us, child if terrific.

If and over history businesses substitute fairly analogous. sufficient look word operationally at those and for And more years improve. X the can of those see the they've got you they the mail look XX build if and parcels, you Presort last they're you excellent, at you candidly, margins scale as as

margins terms last I gave Presort ZIP basic we going still percent. think XX-plus of forward, around Presort, guidance In code. time right was the it that's

revenue We there. to positive flat growth expect slightly

than And side become good and to certainly it's market do I that the great some which If be to also that. possible Mail a Packet would there's customers is and to on more decide Bound better now continue available acquisitions So & outsource, in business. interesting opportunities. say opportunities there's revenue

it's and important we rate going to it's Postal reflective that's provide, July, the of say forward. case marketplace, our Service a terrific and the passed in really customers' the economics but would value economics our for that boost I and that the

Matt Swope

That's really you. great. That's helpful Marc. Thank

Marc Lautenbach

Thank you.

Operator

ahead. to Sakon with go And we go can CreditSights. Please Peter

Peter Sakon

morning. Good Hi.

on Presort press higher-yielding mail - on in Following, that you classes? the in can means? the talk Can about growth release, the up what you elaborate business, the the

Ana Maria Chadwick

Sure.

mail. inside have Presort, we first-class of So

we and is what that first is We have vast range. in majority mid-single-digit classes. process, that There's mail, mainly declines mail marketing what mail marketing flats. different the And class of

which first-class bounded are anticipate the They into mail represent but offset decline. growth small of and portion On we've hand, been and classes that help of we print the other going are to mail of continue that moment, at the a marketing some total growing. mail the matter,

Peter Sakon

of that about, automation. you the And great. in said can you has been lot That's investment a done talk

what quarter, For the by it CapEx division haven't you in had was that?

Ana Maria Chadwick

Sure.

Ecommerce on talked majority are we've is declining, a of our CapEx basis because is what Global investments year-over-year So about done. the vast

So, the XX refresh then the CapEx e-commerce. next one. global And I Presort of done that of percent big a attributable our lot of orders you would these is SendTech will tell so or already. about total to be has

I hope bit you a So that gives a of little perspective.

Peter Sakon

Okay. I the And Marc, cross-border said you said other. business, one or that What resolution sense twice is think of of on business? the you timing on your way

Marc Lautenbach

Listen, I we're going that looks I business. mean continually Board management the mean, to make a thoughtful and at decision I portfolio. the say on would

not like our So, way ultimately, once-a-year best it's the what's That's shareholders to that all, customers make decision And time. portfolio we all how it's thing. of forward. is the the for - we'll and and move look the at team the first the

myself So, into timeframe. I'm a to not box going

Peter Sakon

Okay. And part cross-border. the on the I guess last

expensive Given EBITDA? it the to that the maybe consistent? guess, would negative close more EBITDA Or you lost is otherwise, you not is said marketplace. its like because value that, in it have I Is

Marc Lautenbach

it EBITDA. EBITDA I I was improvement the businesses. surpassed in decline in didn't just other say negative the said the

Peter Sakon

EBITDA cross-border Are business saying that you positive? is

Marc Lautenbach

say didn't negative. it I was

Peter Sakon

you. Thank Okay.

Operator

to turn I'll for closing And Mr. call the Lautenbach back over remarks. any

Marc Lautenbach

morning. kind of to thanks, to And everyone, in my go this life. I want theme for back Great. the joining

first quarter out was largely consistent played The second the quarter. It with expected.

results. quarter in going drama of What like forward. we're how really lot second the I is a not positioned So

of couple fighting since been candidly years an we've last moment So for COVID. through economic a interesting the

that supply of now. of how getting the coming we're end And affected right tail I we're like like fact economy on it the feels chains, out retail, broader as period, affected that positioned. The we're

good half, a Our make difference. cost expense we in shape, opportunity good that get will and the are second meaningful as into

and the still - those of terrific. second expense realize cost, the to not of of in start and in front most half. are us, we'll all the So benefits cost all That's the

were and of That's the as terrific, bank. adjustments said, the is fortify as overall the we And cash. will continuing. Ecommerce, but half again, Global we get that second It's the made for to and to that I ballast our of relates The momentum well important year good parcel then profit enterprise. see Presort important any positioned absolutely important the that there we it questions, the are for also continued And didn't in SendTech, domestic performance. some

Bank positioned. we're about PB The is how excited bank really the forward, going but well

moment that company is, we're all So the we fronts, this positioned economic in extremely is to as go and going well on end forward.

with this you. close going that, moving and So to Thank forward morning's call, you forward. with we look we'll

Operator

And today. that Thanks for Teleconference for and using conference our participation does your service. for conclude AT&T

You may now disconnect.

Pitney Bowes (PBI) 3 Aug 232023 Q2 Earnings call transcript