Financial Results
Quarter 1 of Fiscal Year 2015
MTAC
February 17, 2015
Financial Results
December YTD (3 Months)
(Billions)
Revenue 1
Expenses 1, 2
Controllable Income (Loss)
1, 2
Retiree Health Benefits Pre-Funding
Workers' Comp. Fair Value Adj.
Workers' Comp. Other Non-Cash Adj.
Net Income (Loss) 1
Liquidity Days (of oper. cash)
Volume (Pieces)
3
FY
2015
$18.8
17.7
FY
2014
$18.0
17.3
1.1
0.7
(1.4)
(0.8)
0.3
(1.4)
0.5
(0.2)
($0.8)
($0.4)
26
42.6
14
42.0
1 - Retail and delivery days were even compared to SPLY.
2 - Before RHB pre-funding and non-cash adjustments to workers’ compensation liabilities.
3 - FY2015 liquidity days’ increase is primarily due to shift in timing of $1.8B in Payroll and $.4B EFT to Jan. 2, 2015.
1
Volume:
FY2015 Q1 vs. SPLY
+1.4%
45.0
42.6
42.0
1.8
1.1
40.0
-7.4%
+12.8%
1.7
1.3
Pieces - Billions
35.0
30.0
22.0
+3.5%
22.8
25.0
20.0
15.0
-1.1%
10.0
16.9
16.7
FY14 Actual
FY15 Actual
5.0
0.0
First-Class Mail
Standard Mail
Total Shipping & Package
Other (includes Periodicals)
International Mail
2
Revenue:
FY2015 Q1 vs. SPLY
+4.3%
$18.8
-1.2%
$0.8
$1.1
$18.0
$18.0
$16.0
$14.0
$0.9
$1.3
-18.3%
$3.9
+10.4%
$4.6
+7.6%
$7.3
+3.7%
$4.3
$ Billions
$12.0
$10.0
$5.0
$8.0
$6.0
$4.0
$7.6
$2.0
$FY14 Actual
First-Class Mail
Standard Mail
Total Shipping & Package
FY15 Actual
Other (includes Periodicals)
International Mail
3
Shipping & Package Services Revenue:
FY2015 Q1 vs. SPLY
+10.4%
$4.5
$4.0
$3.9
$3.5
$0.2
$0.2
$0.2
$0.2
+3.3%
$0.6
+12.9%
$0.5
$3.0
$ Billions
-0.3%
$4.3
$0.8
$2.5
+27.7%
$1.0
+5.7%
$2.3
$2.0
$1.5
$2.2
$1.0
$0.5
$-
FY14 Actual
Priority Mail & Std. Post
Parcel Select and Return
FY15 Actual
F-C Package Service
Package Svcs
Priority Mail Express
4
Controllable Expenses
December YTD (3 Months)
(Billions)
Compensation & Benefits
Transportation
Depreciation
Supplies & Services
Rent, Utilities & Other
Controllable Expenses
Workhours (millions)
1, 2
FY
2015
$13.6
1.8
0.4
0.7
1.2
FY
2014
$17.7
$17.3
293
287
$13.2
1.8
0.5
0.6
1.2
1 - Delivery days were even compared to SPLY.
2 - Before RHB pre-funding and non-cash adjustments to workers’ compensation liabilities.
5
A Deep Financial Hole
as of December 31, 2014
•
Liabilities exceed assets by approx. $46 billion
•
The USPS has only 35 cents of assets to cover
each dollar of its liabilities
ASSETS
Unrestricted Cash
$ 7.1B
Retiree Health Benefits
$23.8B
Buildings & Equipment,
net of depreciation
$16.2B
Workers' Compensation
$17.9B
Debt
$15.0B
Accrued Compensation,
benefits, and leave
$ 5.0B
Deferred Revenue
$ 3.3B
Other
$ 6.1B
Other Assets
Total Assets
1 Under
LIABILITIES
$ 1.7B
$25.0B
Total Liabilities
1
$71.1B
multi-employer accounting rules, there are approximately $45B in obligations not shown on the balance sheet.
 Significant profits over years and legislation are needed to recover.
6
FY2014- October FY2016 Liquidity
Days of Operating Cash Available
No payments for Retiree Health Benefits (RHB) Pre-Funding are included ($5.7B in 2014 and $5.7B in 2015)
FY2014
Days
26
25
24
23
22
21
20
19
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
0
FY2015
23 days
$7B
$6B
Exigent price
increase began
Jan. 26, 2014
$5B
$4B
19 days
3 bi-weekly
pay-days
$3B
$2B
3 bi-weekly
pay-days
$1B
• Liquidity includes unrestricted cash plus available
borrowing, up to $15B limit.
• FY2015 Days of Operating Cash – based on average
operating costs disbursed per day ~$275M (FY2014~$265M).
Oct-15
Sep-15
Aug-15
Jul-15
Jun-15
May-15
Apr-15
Mar-15
Feb-15
Jan-15
Dec-14
Nov-14
Oct-14
Sep-14
Aug-14
Jul-14
Jun-14
May-14
Apr-14
Mar-14
Feb-14
Preliminary Projection
Jan-14
Dec-13
Nov-13
Oct-13
Sep-13
Actual
Mid-October Balances shown - Low
points after annual Workers’
Compensation payments to DOL
7