Pitney Bowes (NYSE:PBI), a global shipping and mailing company that provides technology, logistics, and financial services, today announced its financial results for the full year and fourth quarter 2021.

"The fourth quarter capped another important year in our transformation," said Marc B. Lautenbach, President and CEO, Pitney Bowes. "While not without challenges, we delivered our fifth consecutive year of consolidated revenue growth. In the aggregate, SendTech and Presort grew revenues and EBIT year-over-year, which is a significant achievement. Global Ecommerce had a successful peak in terms of service levels with 99 percent of all committed parcels delivered ahead of the holidays; however, supply chain challenges and shifts in consumer buying behavior led to lower volumes, impacting that segment's fourth quarter financial results."

Full Year 2021

Revenue of $3.7 billion, growth of 3 percent, fifth consecutive year of growth;
GAAP EPS loss of $0.01, Adjusted EPS of $0.32;
GAAP cash from operations of $302 million;
Free cash flow of $154 million;
Ended the year with $747 million in cash and short-term investments;
Reduced debt $241 million and extended our maturity profile;
Shipping-related revenues represented 50 percent of total revenue;
Global Ecommerce revenue of $1.7 billion, representing growth of 5 percent over prior year, growth of 48 percent versus 2019;
Presort Services revenue growth of 10 percent over prior year and EBIT margin of 14 percent;
SendTech revenue declined 1 percent over prior year with equipment sales growth of 11 percent.

Fourth Quarter 2021

Revenue of $984 million, a decline of 4 percent;
GAAP EPS of $0.01, Adjusted EPS of $0.06;
GAAP cash from operations of $85 million;
Free cash flow of $39 million;
Presort Services revenue growth of 16 percent and EBIT growth of 80 percent over prior year;
SendTech revenue declined 6 percent over prior year;
Global Ecommerce revenue decline of 9 percent over prior year, 46 percent growth versus 2019;
Entered into a sale-leaseback agreement for its Shelton facility, which will generate approximately $50 million in proceeds and is anticipated to close in Q1 2022.

Earnings per share results are summarized in the table below


	Fourth Quarter		Full Year
	2021	2020	2021	2020
GAAP EPS	$0.01	$0.11	($0.01)	($1.05)
Discontinued Operations	-	($0.01)	$0.03	($0.06)
GAAP EPS from Continuing Operations	$0.01	$0.10	$0.02	($1.11)
Loss on Debt Refinancing	-	-	$0.24	$0.16
Restructuring Charges	$0.03	$0.04	$0.08	$0.09
Gain on Sale of Assets/Business	-	-	($0.03)	($0.05)
Goodwill Impairment	-	-	-	$1.13
Tax on Surrender of Investment Securities	-	-	-	$0.07
Transaction Costs	$0.01	-	$0.01	-
Adjusted EPS	$0.06	$0.14	$0.32	$0.31

* The sum of the earnings per share may not equal the totals due to rounding.

Business Segment Reporting

Global Ecommerce facilitates domestic retail ecommerce shipping solutions, including delivery, returns and fulfillment, and global cross-border ecommerce transactions.

Presort Services provides sortation services to qualify large volumes of First Class Mail, Marketing Mail, Marketing Mail Flats and Bound Printed Matter for postal workshare discounts.

Sending Technology Solutions offers physical and digital mailing and shipping technology solutions, financing, services, supplies and other applications for small and medium businesses to help simplify and save on the sending, tracking and receiving of letters, parcels and flats.

Global Ecommerce

	Full Year
($ millions)	2021	2020	% Change Reported	% Change Ex Currency
Revenue	$1,703	$1,619	5%	4%
EBITDA	($20)	($13)	(48%)
EBIT	($99)	($83)	(19%)

	Fourth Quarter
($ millions)	2021	2020	% Change Reported	% Change Ex Currency
Revenue	$473	$518	(9%)	(9%)
EBITDA	($20)	$3	>(100%)
EBIT	($41)	($15)	>(100%)

Full year revenue growth was primarily driven by higher cross-border volumes. In the fourth quarter, lower revenues were driven by a decrease in Domestic Parcel volumes, which was partly offset by an increase in revenue per parcel. Full year and fourth quarter declines in EBITDA and EBIT were driven primarily by higher transportation and labor spend. In the fourth quarter, lower volumes also adversely impacted margins.

Presort Services

	Full Year
($ millions)	2021	2020	% Change Reported	% Change Ex Currency
Revenue	$573	$521	10%	10%
EBITDA	$107	$88	22%
EBIT	$80	$56	43%

	Fourth Quarter
($ millions)	2021	2020	% Change Reported	% Change Ex Currency
Revenue	$156	$135	16%	16%
EBITDA	$30	$21	43%
EBIT	$23	$13	80%

Strong revenue growth for both the full year and fourth quarter were driven by a higher net revenue per piece along with expansion in marketing mail volumes. EBITDA and EBIT improved significantly from prior year despite higher labor and transportation costs.

SendTech Solutions

	Full Year
($ millions)	2021	2020	% Change Reported	% Change Ex Currency
Revenue	$1,398	$1,414	(1%)	(2%)
EBITDA	$459	$477	(4%)
EBIT	$429	$443	(3%)

	Fourth Quarter
($ millions)	2021	2020	% Change Reported	% Change Ex Currency
Revenue	$354	$376	(6%)	(5%)
EBITDA	$116	$128	(9%)
EBIT	$109	$120	(9%)

Full year revenue declined marginally as equipment sales growth of 11 percent was more than offset by a 14 percent decline in Financing revenue. The decline in high-margin financing revenue drove lower EBITDA and EBIT. For the fourth quarter, revenue decline was driven by lower equipment and financing revenue, partially offset by higher business services revenue.

2022 Expectations

The Company expects annual revenue and EBIT to grow over prior year in the low-to-mid single digit range.

The Company expects to refine expectations throughout the year, especially as Covid and supply chain issues dissipate.

Conference Call and Webcast

Management of Pitney Bowes will discuss the Company's results in a broadcast over the Internet today at 8:00 a.m. EST. Instructions for listening to the earnings results via the Web are available on the Investor Relations page of the Company's web site at www.pitneybowes.com.

About Pitney Bowes

Pitney Bowes (NYSE:PBI) is a global shipping and mailing company that provides technology, logistics, and financial services to more than 90 percent of the Fortune 500. Small business, retail, enterprise, and government clients around the world rely on Pitney Bowes to remove the complexity of sending mail and parcels. For additional information, visit: www.pitneybowes.com

Use of Non-GAAP Measures

The Company's financial results are reported in accordance with generally accepted accounting principles (GAAP); however, in its disclosures the Company uses certain non-GAAP measures, such as adjusted earnings before interest and taxes (EBIT), adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted earnings per share (EPS), revenue growth on a constant currency basis and free cash flow.

Adjusted EBIT, Adjusted EBITDA and Adjusted EPS exclude the impact of discontinued operations, restructuring charges, gains, losses and costs related to acquisitions and dispositions, asset impairment charges, goodwill impairment charges and other unusual or one-time items. Such items are often inconsistent in amount and frequency and as such, the Company believes that these non-GAAP measures provide investors greater insight into the underlying operating trends of the business.

In addition, revenue growth is presented on a constant currency basis to exclude the impact of changes in foreign currency exchange rates since the prior period under comparison. Constant currency is calculated by converting the current period non-U.S. dollar denominated revenue using the prior year's exchange rate for the comparable quarter. We believe that excluding the impacts of currency exchange rates provides investors a better understanding of the underlying revenue performance.

Free cash flow adjusts cash from operations calculated in accordance with GAAP for discontinued operations, capital expenditures, restructuring payments, changes in customer deposits held at the Pitney Bowes Bank, transaction costs and other special items. The Company reports free cash flow to provide investors insight into the amount of cash that management could have available for other discretionary uses.

Segment EBIT is the primary measure of profitability and operational performance at the segment level and is determined by deducting from segment revenue the related costs and expenses attributable to the segment. Segment EBIT excludes interest, taxes, unallocated corporate expenses, restructuring charges and other unusual or one-time items. The Company also reports segment EBITDA as an additional useful measure of segment profitability and operational performance.

Complete reconciliations of non-GAAP measures to comparable GAAP measures can be found in the attached financial schedules and at the Company's web site at www.pb.com/investorrelations

This document contains "forward-looking statements" about the Company's expected or potential future business and financial performance. Forward-looking statements include, but are not limited to, statements about future revenue and earnings guidance and future events or conditions. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from those projected. In particular, we continue to navigate the impacts of the Covid-19 pandemic (Covid-19), and the effect that its unpredictability is having on our, and our client's business, financial performance and results of operations. Other factors which could cause future financial performance to differ materially from expectations, and which may also be exacerbated by Covid-19 or a negative change in the economy, include, without limitation, declining physical mail volumes; changes in postal regulations or the operations and financial health of posts in the U.S. or other major markets or changes to the broader postal or shipping markets; the loss of, or significant changes to, our contractual relationships with the United States Postal Service (USPS) or USPS' performance under those contracts; our ability to continue to grow and manage volumes, gain additional economies of scale and improve profitability within our Global Ecommerce segment; changes in labor and transportation availability and costs; ; and other factors as more fully outlined in the Company's 2020 Form 10-K Annual Report and other reports filed with the Securities and Exchange Commission. Pitney Bowes assumes no obligation to update any forward-looking statements contained in this document as a result of new information, events or developments.

Note: Consolidated statements of income; revenue, EBIT and EBITDA by business segment; and reconciliations of GAAP to non-GAAP measures for the three months and twelve months ended December 31, 2021 and 2020, and consolidated balance sheets at December 30, 2021 and 2020 are attached.


Pitney Bowes Inc.
Consolidated Statements of Operations
(Unaudited; in thousands, except per share amounts)

			Three months ended December 31,						Twelve months ended December 31,
				2021			2020			2021			2020
Revenue:
		Business services	$	645,814		$	666,983		$	2,334,674		$	2,191,306
		Support services		113,622			119,972			460,888			473,292
		Financing		71,217			80,276			294,418			341,034
		Equipment sales		93,834			101,200			350,138			314,882
		Supplies		40,348			41,165			159,438			159,282
		Rentals		18,877			18,821			74,005			74,279
		Total revenue		983,712			1,028,417			3,673,561			3,554,075

Costs and expenses:
		Cost of business services		579,913			592,137			2,034,477			1,904,078
		Cost of support services		37,060			35,856			149,706			149,988
		Financing interest expense		11,690			12,108			47,059			48,162
		Cost of equipment sales		66,292			69,821			251,914			235,153
		Cost of supplies		11,597			10,928			43,980			41,679
		Cost of rentals		5,487			7,145			24,427			25,600
		Selling, general and administrative		224,847			242,441			924,163			963,323
		Research and development		13,781			9,546			46,777			38,384
		Restructuring charges		7,569			8,207			19,003			20,712
		Goodwill impairment		-			-			-			198,169
		Interest expense, net		23,070			26,249			96,886			105,753
		Other components of net pension and postretirement expense (income)		302			(1,834	)		1,010			(1,708	)
		Other expense (income), net		633			(1,636	)		41,574			8,151
		Total costs and expenses		982,241			1,010,968			3,680,976			3,737,444

Income (loss) from continuing operations before taxes				1,471			17,449			(7,415	)		(183,369	)
(Benefit) provision for income taxes				(320	)		(350	)		(10,922	)		7,122
Income (loss) from continuing operations				1,791			17,799			3,507			(190,491	)
(Loss) income from discontinued operations, net of tax				(524	)		2,467			(4,858	)		10,115
Net income (loss)			$	1,267		$	20,266		$	(1,351	)	$	(180,376	)

Basic earnings (loss) per share (1):
		Continuing operations	$	0.01		$	0.10		$	0.02		$	(1.11	)
		Discontinued operations		-			0.01			(0.03	)		0.06
		Net income (loss)	$	0.01		$	0.12		$	(0.01	)	$	(1.05	)

Diluted earnings (loss) per share (1):
		Continuing operations	$	0.01		$	0.10		$	0.02		$	(1.11	)
		Discontinued operations		-			0.01			(0.03	)		0.06
		Net income (loss)	$	0.01		$	0.11		$	(0.01	)	$	(1.05	)

Weighted-average shares used in diluted earnings per share				179,506			176,835			179,105			171,519

(1	)	The sum of the earnings per share amounts may not equal the totals due to rounding.


Pitney Bowes Inc.
Consolidated Balance Sheets
(Unaudited; in thousands)

Assets		December 31, 2021			December 31, 2020
Current assets:
	Cash and cash equivalents	$	732,480		$	921,450
	Short-term investments		14,440			18,974
	Accounts and other receivables, net		334,630			389,240
	Short-term finance receivables, net		560,680			568,050
	Inventories		78,588			71,480
	Current income taxes		13,894			23,219
	Other current assets and prepayments		154,165			120,145
Total current assets			1,888,877			2,112,558
Property, plant and equipment, net			429,162			391,280
Rental property and equipment, net			34,774			38,435
Long-term finance receivables, net			587,427			605,292
Goodwill			1,135,103			1,152,285
Intangible assets, net			132,442			159,839
Operating lease assets			208,428			201,916
Noncurrent income taxes			68,398			71,244
Other assets			471,084			491,514
Total assets		$	4,955,695		$	5,224,363

Liabilities and stockholders' equity
Current liabilities:
	Accounts payable and accrued liabilities	$	919,367		$	880,616
	Customer deposits at Pitney Bowes Bank		632,062			617,200
	Current operating lease liabilities		40,299			39,182
	Current portion of long-term debt		24,739			216,032
	Advance billings		99,280			114,550
	Current income taxes		9,017			2,880
Total current liabilities			1,724,764			1,870,460
Long-term debt			2,299,099			2,348,361
Deferred taxes on income			286,445			279,451
Tax uncertainties and other income tax liabilities			31,935			38,163
Noncurrent operating lease liabilities			192,092			180,292
Other noncurrent liabilities			308,728			437,015
Total liabilities			4,843,063			5,153,742

Stockholders' equity:
	Common stock		323,338			323,338
	Additional paid-in-capital		2,485			68,502
	Retained earnings		5,169,270			5,205,421
	Accumulated other comprehensive loss		(780,312	)		(839,131	)
	Treasury stock, at cost		(4,602,149	)		(4,687,509	)
Total stockholders' equity			112,632			70,621
Total liabilities and stockholders' equity		$	4,955,695		$	5,224,363


Pitney Bowes Inc.
Business Segment Revenue
(Unaudited; in thousands)

		Three months ended December 31,							Twelve months ended December 31,
			2021			2020	% Change			2021			2020	% Change

	Global Ecommerce	$	473,054		$	518,140	(9	%)	$	1,702,580		$	1,618,897	5	%

	Presort Services		156,439			134,660	16	%		573,480			521,212	10	%

	Sending Technology Solutions		354,219			375,617	(6	%)		1,397,501			1,413,966	(1	%)

	Total revenue - GAAP		983,712			1,028,417	(4	%)		3,673,561			3,554,075	3	%

	Currency impact on revenue		(317	)		-				(27,910	)		-

	Revenue, at constant currency	$	983,395		$	1,028,417	(4	%)	$	3,645,651		$	3,554,075	3	%


Pitney Bowes Inc.
Business Segment EBIT & EBITDA
(Unaudited; in thousands)

	Three months ended December 31,
	2021								2020								% change
	EBIT (1)			D&A		EBITDA			EBIT (1)			D&A		EBITDA			EBIT		EBITDA

Global Ecommerce	$	(40,516	)	$	20,957	$	(19,559	)	$	(14,768	)	$	17,490	$	2,722		>(100%)		>(100%)

Presort Services		23,474			6,711		30,185			13,041			8,107		21,148		80	%	43	%

Sending Technology Solutions		108,874			7,116		115,990			119,506			8,545		128,051		(9	%)	(9	%)

Segment total	$	91,832		$	34,784		126,616		$	117,779		$	34,142		151,921		(22	%)	(17	%)

Reconciliation of Segment EBITDA to Net Income:
Segment depreciation and amortization							(34,784	)							(34,142	)
Unallocated corporate expenses							(44,817	)							(53,766	)
Restructuring charges							(7,569	)							(8,207	)
Loss on debt refinancing							(633	)							-
Transaction costs							(2,582	)							-
Interest, net							(34,760	)							(38,357	)
Benefit for income taxes							320								350
Income from continuing operations							1,791								17,799
(Loss) income from discontinued operations, net of tax							(524	)							2,467
Net income						$	1,267							$	20,266



	Twelve months ended December 31,
	2021								2020								% change
	EBIT (1)			D&A		EBITDA			EBIT (1)			D&A		EBITDA			EBIT		EBITDA

Global Ecommerce	$	(98,673	)	$	79,128	$	(19,545	)	$	(82,894	)	$	69,676	$	(13,218	)	(19	%)	(48	%)

Presort Services		79,721			27,243		106,964			55,799			31,769		87,568		43	%	22	%

Sending Technology Solutions		429,415			29,951		459,366			442,648			34,316		476,964		(3	%)	(4	%)

Segment Total	$	410,463		$	136,322		546,785		$	415,553		$	135,761		551,314		(1	%)	(1	%)

Reconciliation of Segment EBITDA to Net Loss:
Segment depreciation and amortization							(136,322	)							(135,761	)
Unallocated corporate expenses							(207,774	)							(200,406	)
Restructuring charges							(19,003	)							(20,712	)
Gain on sale of assets/business							11,635								11,908
Loss on debt refinancing							(56,209	)							(36,987	)
Goodwill impairment							-								(198,169	)
Transaction costs							(2,582	)							(641	)
Interest, net							(143,945	)							(153,915	)
Benefit (provision) for income taxes							10,922								(7,122	)
Income (loss) from continuing operations							3,507								(190,491	)
(Loss) income from discontinued operations, net of tax							(4,858	)							10,115
Net loss						$	(1,351	)						$	(180,376	)


(1) Segment EBIT excludes interest, taxes, general corporate expenses, restructuring charges, and other items that are not allocated to a particular business segment.


Pitney Bowes Inc.
Reconciliation of Reported Consolidated Results to Adjusted Results
(Unaudited; in thousands, except per share amounts)

	Three months ended December 31,						Twelve months ended December 31,
		2021			2020			2021			2020

Reconciliation of reported net income (loss) to adjusted EBIT and EBITDA
Net income (loss)	$	1,267		$	20,266		$	(1,351	)	$	(180,376	)
Loss (income) from discontinued operations, net of tax		524			(2,467	)		4,858			(10,115	)
(Benefit) provision for income taxes		(320	)		(350	)		(10,922	)		7,122
Income (loss) from continuing operations before taxes		1,471			17,449			(7,415	)		(183,369	)
Restructuring charges		7,569			8,207			19,003			20,712
Gain on sale of assets/business		-			-			(11,635	)		(11,908	)
Loss on debt refinancing		633			-			56,209			36,987
Goodwill impairment		-			-			-			198,169
Transaction costs		2,582			-			2,582			641
Adjusted net income before tax		12,255			25,656			58,744			61,232
Interest, net		34,760			38,357			143,945			153,915
Adjusted EBIT		47,015			64,013			202,689			215,147
Depreciation and amortization		41,634			40,222			162,859			160,625
Adjusted EBITDA	$	88,649		$	104,235		$	365,548		$	375,772

Reconciliation of reported diluted earnings (loss) per share to adjusted diluted earnings per share ⁽¹⁾
Diluted earnings (loss) per share	$	0.01		$	0.11		$	(0.01	)	$	(1.05	)
Loss (income) from discontinued operations, net of tax		-			(0.01	)		0.03			(0.06	)
Restructuring charges		0.03			0.04			0.08			0.09
Gain on sale of assets/business		-			-			(0.03	)		(0.05	)
Loss on debt refinancing		-			-			0.24			0.16
Goodwill impairment		-			-			-			1.13
Tax on surrender of investment securities		-			-			-			0.07
Transaction costs		0.01			-			0.01			-
Adjusted diluted earnings per share	$	0.06		$	0.14		$	0.32		$	0.31

Reconciliation of reported net cash from operating activities to free cash flow
Net cash provided by operating activities	$	85,341		$	110,806		$	301,515		$	301,972
Net cash (provided by) used in operating activities - discontinued operations		-			(511	)		-			37,912
Capital expenditures		(43,135	)		(24,200	)		(184,042	)		(104,987	)
Restructuring payments		7,143			4,145			21,990			20,014
Change in customer deposits at PB Bank		(10,650	)		6,618			14,862			26,082
Transaction costs paid		-			-			-			2,117
Free cash flow	$	38,699		$	96,858		$	154,325		$	283,110

⁽¹⁾ The sum of the earnings per share amounts may not equal the totals due to rounding.

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Pitney Bowes Announces Full Year and Fourth Quarter 2021 Financial Results