STAMFORD, Conn. - Pitney Bowes Inc . (NYSE: NYSE:PBI), a global provider of shipping, mailing, and financial services, has announced an agreement in principle with DRF Logistics LLC, aiming to resolve ongoing disputes with DRF's unsecured creditors. This agreement is seen as a crucial step towards the completion of DRF's exit from bankruptcy, which Pitney Bowes now anticipates will occur by the end of 2024.
The agreement, which is still subject to final discussions and documentation, is expected to be included in a revised chapter 11 plan for DRF. The plan is slated for submission prior to a confirmation hearing scheduled for November 19, 2024. The company's CEO, Lance Rosenzweig, expressed confidence that the agreement would lead to an expeditious and favorable resolution of DRF's bankruptcy proceedings.
Rosenzweig stated that the resolution is fair and reasonable and will allow the company to focus on growth opportunities in its remaining businesses. Pitney Bowes aims to maintain its trajectory to complete the bankruptcy exit ahead of initial expectations and continues to project approximately $150 million in one-time costs associated with the wind-down.
Pitney Bowes, which serves a significant portion of the Fortune 500, specializes in simplifying the complexities of mailing and parcel delivery for businesses and government entities. The agreement with DRF is a part of the company's broader strategic initiative to optimize costs and improve financial performance. While the future benefits of this agreement are anticipated, Pitney Bowes cautions that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from projections.
The company has not disclosed specific details of the agreement due to ongoing negotiations. This news is based on a press release statement from Pitney Bowes Inc. and does not include any speculative or promotional content.
In other recent news, Pitney Bowes Inc. reported a minor decrease in third-quarter revenue, down to $499 million from $503 million year-over-year. Despite this, the company has shown significant strides in profitability, with adjusted EBITDA rising 22% to $103 million, and adjusted EPS increasing to $0.21, up from $0.16. This progress is attributed to strategic initiatives to exit the Global Ecommerce segment, reduce costs, and optimize cash flow, which have begun to yield positive results.
The company's free cash flow has improved to $75 million, up from $56 million year-over-year. However, Pitney Bowes' SendTech revenue experienced a decline due to technology migration. On a more positive note, the Presort business demonstrated strong performance with a 9% growth in revenue.
Company CEO Lance Rosenzweig has emphasized a long-term focus on rebuilding investor confidence. The full-year revenue for 2024 is expected to decline at a low-single-digit rate, while EBIT guidance has been raised to $355-$360 million. These are among the recent developments at Pitney Bowes.
InvestingPro Insights
As Pitney Bowes (NYSE: PBI) works towards resolving disputes with DRF Logistics LLC and aims to complete the bankruptcy exit by the end of 2024, investors may find additional context from recent financial data and analyst insights valuable.
According to InvestingPro data, Pitney Bowes has a market capitalization of $1.39 billion as of the latest available information. The company's revenue for the last twelve months as of Q3 2024 stood at $3.22 billion, with a notable revenue growth of 31.01% over the same period. This growth suggests that despite the challenges faced with DRF Logistics, the company has been able to maintain strong top-line performance.
InvestingPro Tips highlight that Pitney Bowes has maintained dividend payments for 54 consecutive years, demonstrating a commitment to shareholder returns even during challenging times. This could be reassuring for investors as the company navigates through the current situation. Additionally, analysts anticipate that Pitney Bowes will be profitable this year, which aligns with CEO Lance Rosenzweig's focus on growth opportunities in the remaining businesses post-DRF resolution.
It's worth noting that the stock has seen a significant price uptick over the last six months, with InvestingPro data showing a 48.9% price total return over that period. This positive momentum may reflect investor optimism about the company's strategic initiatives, including the resolution of the DRF bankruptcy proceedings.
For those interested in a more comprehensive analysis, InvestingPro offers 10 additional tips for Pitney Bowes, providing a deeper dive into the company's financial health and market position.
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