Pitney Bowes Inc. (NYSE:PBI) Q2 2023 Earnings Call Transcript

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

Matt Swope: Okay. Fair enough. And on one – I’ve asked you a couple times before on the cash side, could you characterize again, for us to make – you have about $560 odd million of cash and short-term investments? How much of that cash is available to you, versus tied up in the bank or overseas et cetera?

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

Matt Swope: And so again, just being highly theoretical. If you chose to deploy all $200 million of that third, would you still be able to run the business? Or do you need to keep some of that cash around?

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

Matt Swope: Got you. Okay. And then – and Marc, maybe back to the Board question. What is the cadence of meetings with the Board? When is your guy’s next meeting or how often does that happen?

Marc Lautenbach: I would say it varies. I mean, we altered the Board schedule to accommodate the new Board members. I would say right now, they’re maybe more frequently just because there’s more coming up to speed. So, I’m not going to comment on the specific cadence per se. But I would say right now it’s a very active and engaged Board.

Matt Swope: No, that’s fair. And then you can imagine that people are sort of interested in what might come out of that. Maybe to focus on the two other businesses just for a second. On the SendTech side, you showed nice profitability in the face of some revenue challenges still. Can you just talk a little bit about the profitability mix in SendTech and what we should expect on that going forward?

Ana Maria Chadwick: Sure. So the profitability we expect to continue at those margins that we’re anticipating. From a revenue perspective, I touched on this during my remarks here. As we are now 63% through the IMI conversion, more of those new opportunities for clients that are coming up have a mix of renewal or an extension concept to their leases instead of a new product being put out because our product lasts longer than the four to five. So, what we will see in the dynamics playing out is we will see less of the upfront, which comes with that original equipment sales and more a very good profit margin renewals coming through a stream revenue and that flows better to the bottom line. So net-net, is a very positive thing from a durability of those cash flows as we anticipate in the SendTech segment.