Pitney Bowes Discusses Business Strategy at the Bank of America Leveraged Finance Conference
November 29 2022 - 4:05PM
Business Wire
Pitney Bowes Inc. (NYSE: PBI), a global shipping and mailing
company that provides technology, logistics, and financial
services, outlined their business strategy today at the Bank of
America Securities 2022 Leveraged Finance Conference. Jason Dies,
Executive Vice President, Pitney Bowes Sending Technology Solutions
(SendTech), Gregg Zegras, Executive Vice President, Pitney Bowes
Global Ecommerce, and Ned Zachar, Vice President, Investor
Relations spoke at the conference.
Jason Dies spoke about new possibilities in growing markets for
the legacy Sending Technology Solutions business. He defined a
durable and profitable business model, with shipping expected to be
roughly a third of segment revenue by 2026.
“SendTech is a predictable and durable cash generation engine on
the mailing side and we have a growth opportunity we can take
advantage of on the shipping side as well,” said Dies. “We aspire
to and will become a growth business overall when you put those two
addressable markets together.”
Gregg Zegras highlighted how the Global Ecommerce Business is
well positioned to pursue a large and rapidly growing market
opportunity. He spoke about the work the team has done to build the
network, improve service levels and customer satisfaction, and
increase volumes and margins.
“Off a strong Black Friday and Cyber Monday, we expect 2022
exit-rate volumes to be on the high end of 195 to 200 million in
our Domestic Parcel network and Domestic Parcel gross margin
improvement of up to 400 basis points in 2023,” said Zegras.
“Long-term, we expect the Global Ecommerce business to achieve 6 to
8 percent EBIT margins in 2026 based on our current product mix and
Capex levels to be approximately 20 percent of EBITDA.”
“We have seen consistent service levels in the low to mid 90
percent. This bodes well for the future of our business. These
service levels allow us to go out and win new business and retain
the customers we have,” added Zegras.
Ned Zachar added, “SendTech and Presort have leading market
positions and are finding new ways to grow despite some natural
headwinds and are much more durable businesses than people may have
thought. In Global Ecommerce, EBITDA should be higher than Capex in
2023.”
A replay of the audio webcast, transcript and slides can be
accessed at www.pb.com/investorrelations.
Today’s presentation underscored the Global Ecommerce strategy
outlined in September at the Deutsche Bank 30th Annual Leveraged
Finance Conference.
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 the
latest news, corporate announcements and financial results visit
https://www.pitneybowes.com/us/newsroom.html. For additional
information visit Pitney Bowes at www.pitneybowes.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20221129006059/en/
Editorial - Bill Hughes Chief Communications Officer
203.351.6785 203.252.1153
Financial - Ned Zachar, CFA VP, Investor Relations
203.614.1092
Alex Brown Senior Manager, Investor Relations 203.351.7639
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