Pitney Bowes (PBI) 7 Nov 242024 Q3 Earnings call transcript

Good afternoon, and welcome to the Pitney Bowes Third Quarter 2024 Earnings Release Call. [Operator Instructions] Today's call is also being recorded.

If you have any objections, please disconnect your lines at this time. I would now like to introduce the participants on today's conference call. Mr. Lance Rosenzweig, Chief Executive Officer and Board Member; Mr. Financial Chief Interim Witek, Officer; Mr. John Board Wolf, Member; and Mr. Kurt Investor Alex Relations. Director, Brown, Mr. Brown a call the will begin now with safe overview. harbor

forward-looking and afternoon, today's business thank for financial statements are and joining future about Good performance. our us. Included you presentation in

our on could report be risks located materially keep to earnings found are website our More in that from and risks these that release, do actual information SEC result the with information developments. on results update Please our Forward-looking filed and of statements about www.pb.com uncertainties Relations. not to XXXX and or clicking cause a in our annual involve by statements obligation projections. and reports other Form at we as forward-looking be new XX-K undertake different Investor uncertainties any mind press can

our For materials, appropriate non-GAAP our measures tables in the measures to in the reconciliations to included release. that or the GAAP press discussed release are press you in find can presentation attached

Finally, Lance. cash in free currency like the as to and comparisons EPS I on our this adjusted EBIT, EBITDA, time, CEO, items call be revenue with basis. At turn other basis our would prepared on such an remarks, flow to a constant over will

trapped overheads, priorities I for months Thank we thanking these of team's appointing and priorities accelerated in X to am our GEC, of free-up and an me cash as set proud Good Pitney joined success everyone. permanent X improve Bowes. at exit excessive reduce debt pace. begin you, incredibly ago, Alex. our the I CEO reduce our stack. turnaround; tackling want Interim CEO afternoon, key by Board for When I

adjusted of now results to analysis included $XX initiatives. in few QX paint QX 'XX million Bowes the XXXX, I performance. comps this we reported provide of QX our 'XX even our $XXX to believe progress the of QX On targets to free reported per compared provide to $X.XX and areas. results. QX million million share in Pitney exit Bowes that results $XXX $XXX X This to $XX schedule as comparing recast $XX of EPS flow 'XX of key over million of $XX $XXX the in just year and the in to $XX company's prior the to flow details months. I'll shortly, business' update of old a and of X more EPS reported of share reflect million, EBIT reported results stronger to but a cash are an $X.XX reported and as am have dive which all adjusted to to EBIT per flow million. payments provide than past more $XX adjusts third year, quarterly complete prior to in beat of on the to some $XX with numbers GEC, adjusted in illustrates QX compared comparison I cash our EBIT GEC million the compared cash-generating million revenue track share an of prior basis, new, adjusted will achieved cash initiatives of the prior GEC. strength the adjusted we our businesses. the year, profitable the of our trajectory compared in this $X.XX recast I shared. I on more We those for highlight several each first, into the pleased ahead adjusted compared Pitney of as million restructuring significant free $X.XX want that I'll million on excluding free of compared in EPS also of John a on core compared million basis year, picture related additional quarter. in the the in on considerations with information will deeper our

resolving GEC efficient We possible. First, in is on year-end. the the obligations largely well exit legacy manner progressing complete and should most focused remain be by

approximately continue In emphasize we these terms like to expect of target exit will costs, million one-time exit I costs $XXX annually. million. $XXX by earnings go-forward costs improve of we that would to approximately

our to Second, had in we costs. At $XX continue million removed the on end the initiatives. quarter, make progress cost we efficiency annualized of

cost gross of cost not be the to more are from on now our clear, Given up net, forecast progress mainly $XXX headcount are focused bit $XXX color, we a this end million million. million we range the QX. ongoing To completed improved net $XXX of to savings increasing we cuts million, savings. making, To provide our round $XXX to refers first by to

are We these on of largely and savings cost through focusing will stretch now external XXXX. savings much

progress cash to Third, make optimization. on we continue

allow the will We implemented largely to system even million U.S. cash reduce cash cash Furthermore, overseas have and completed have bringing our the levels. we overseas further year-to-date. repatriation, back maintain us pooling to $XXX

allow are complete, from than comfortable exit million the us and $XXX cash our stabilizing Additionally, maintaining lower GEC prior the to corporate feel will to cash flows, exit. is once levels that

details Finally, this the we to ways via unlock have give found Pitney initiative. Bowes new John more Bank. on will value

us pay initiatives cash coming than from $XXX to more in We to and Our number a has used paying of progress continues can above quarters. down debt grow. that the up have to debt, begin currently with this be strength position the million of X down set excess

debt update the near-term. current in provide been partners on deleveraging prospective various strategic with the have intend to We discussions in and we front for options lending our reduction on an and

partners have interactions time my clients. hearing the taken actions I our businesses. and from team around me the to turn opportunity company, As to members, had to with we our unpack Allow of decisive spend each have on-the-ground

in player revenue predictable operating cash built many and its Presort U.S., pride takes improving Presort visiting leading in results strong first-hand U.S. to of been with an has our and and now new organically clients. with around also the the exciting our and and Presort products in the in While great consistent flows. long-term services. SendTech team via in observed our its our tech margins that the M&A. I I developing growth centers market delivering roll-up leader for its has growth, market SendTech opportunity has India. the while team sector, spent centers time our accelerate

We and have an growing team automated SendTech integrated incredible large the are and in developers driving innovation in and SaaS attractive opportunity market. technologies, with our lockers analytics. shipping And of shipping engineers

exciting and global spent and valuable liquidity services in accelerating lending the and are and the Lastly, time our to with growth trust thousands sales in our a generates financial the leasing I enhance time admired shipping is is in force our Bank secure, clients mailing hundreds City, how clients expanding to that confirm brand cost-effective talented that and with generation operations us above-market and continually Pitney of field clients. observing as most teams business Bowes Bowes services Tampa has respected financial the and and the Lake and our in developing services potential. My Salt returns of organization of our solutions. innovate cash Pitney fast This

structure strength bright employees. team and managing and from include XXX, to make and look a a to we while there some forward XXXX. growing more committed of toward look vertical products markets tech-enabled We improved to simplifying base talented continually industry-leading improving brand, are Fortune good fast-growing building and to positioning capital and I toward go-to-market to of I on accelerating closing, attributes, XX% geographic all future. In value to business, providing Pitney going of these solid are Bowes reimagine a increasing forward. Having profitability, foundation dedicated to for shift want over plans that products a our XXXX, adjacencies. we for our on Pitney moving these a to a that having advantages effectively intend improvements emphasize our and about spent you. recognized for services tremendous services exploring to trusted includes our paths details company a and of these I my and has all client the Bowes that companies, shareholders. John, career maximizing in financial As commitments, the

Lance. or improved last year had profitability. increase segments Revenue X% $XXX strong year. $XXX EBIT down was was third We XX% a prior million, both as versus million versus $XX Thanks, quarter. million, a

are impact savings our results $XX were goals million compensation variable comparison. reflecting $XX with million on reduction versus year-over-year items these associated of There the headwind, by attainment a Within better several offset that cost year. last initiatives,

last $X million of by year-over-year, addition, year. million, million of quarter from driven certain hits million cash partially In $X benefited $X.XX, EPS we quarter performance and prior in $XX one-time $X.XX $XX by $X third was between and split higher higher flow better year. in Free the items, operational offset benefits than taxes. million up one-time was of this one-time

cash track We million a continue with year-to-date flow on $XX as of to quarters for first well the X ahead up the basis well year. free

let discuss now in however, as amounts, current recast to of not we as Included continuing segment me category. the the treatment a GEC cover the current operations this presentation. statements. for A Certain on did exiting in been discontinued operation. discontinued periods Before and smaller continuing process have conform and operations our financial is I impact GEC quarter the of operations resulting from reported in majority consolidated exit. results, the qualify that Prior in currently remain other are category an period operations are to

in data quarterly the change on days. a post IR spreadsheet will reflecting coming We our website historical this with

turning to the of the IMI lease our product we a SendTech XX% higher increase base was cancellation Key to $XXX new migrated of third IMI required associated of an upgrade extensions. the had Now equipment lower end migration At were temporary business quarter, low-to-mid-volume revenue million, year-over-year. compliant. X% installed and rates, segments. the mix opportunities to drivers lower and technology in

the the play. factors several near we we migration, As at of are end seeing

or lower declining lower equipment a million opportunities lease $XX and towards due sales extensions. XX% First, year-over-year shift upgrade in-period to

to result are reminder, and a cash lease in revenue the perspective, As near-term a margin flow recognition. extension due equipment of however, positive headwinds revenue transactions timing from

expect the year before of same at sales decline half second continue stabilizing. the We equipment through rate next to

revenue revenue increased rates as X% uptick declined streams support Second, $XX year-over-year. supplies. in a streams services, temporary million cancellation decline in such Those resulted and or rentals an of

most of opportunity digital in expect the rates similar to decline and normalize. Shipping-related in a grew significant QX revenue the a and create last locker recurring continue drove XX% in and deal revenue. year-over-year headwind Impacting remain comprises now We We sources XX% large In growth. period a cancellation see as this year. future shipping to for the foundation we complete services in and particular, migration a revenue. shipping. offerings business as this perform X% strong this segment revenue for These improvement was year-over-year of are well quarter's comparison

in million, $XXX be more X% down $X period. and $XX year-over-year, revenue from and decline X% the than low-to-mid year. by $XX Cost down driven decline with lower SendTech up our Operating lease primarily of the lower EBIT in year-over-year the were receivables gross totaled will receivables expenses profit long-term, flow by mail X% at million rates a result in profit initiative. versus the offset billion, a the XX% have $XX revenue. million offset declined receivables. Net was reductions from finance finance or decrease growth million as million Cash in associated was million, broader quarter Over $X.X cost reduction year-over-year year-to-date. net shipping. Gross or prior single-digit $XXX the

quarter, to up by thanks XX% both and was Unit a costs $XXX $XX to X% efficiencies. was million improvements we as and OpEx reduction between optimize cost volumes continue Operating up our improved improved third-party reduction associated pricing. X% and the expenses year-over-year. contracts. Presort. versus X% our XXX expenses and year-over-year a points with Revenue in consolidate corporate declined X% lanes $X million, declined expenses in year-over-year. million, $XX higher from shifting revenue the transportation million percentage Outside year-over-year, prior business revenue units, the of driven EBIT initiatives. year, were operating year-over-year year-over-year in-sourcing as to Now basis up

variable compensation was mentioned, here. a headwind As

GEC our turn strategic the with me Starting exit. to let initiatives. Now

one-time out paid As the million of total approximately had cash communicated costs $XXX X, we the $XXX quarter, would GEC of in the day down. end on $XX wind charges We related million about of to that we the million. about the exit and the commenced, August recorded believe that

complete be As end Lance by expect are and still mentioned, $XXX approximately the million year. the largely we to of targeting

execution of We in benefits quarter, the our Second, cost the segments. each accelerated this drove reduction. which in initiative of

last initiatives quarter reduction in cost just $XX quarter. over our at the the by $XX rate. This QX, run approximately During improved exiting an million $XX the is since EBIT run million million, rate a improvement

in beginning the rate expect We quarter the more first step-up of run to significantly XXXX.

Moving optimization. to cash

are areas. driving specific progress X We in

following is First, less exit our U.S. target GEC. cash of million the balance $XXX

implementation to million U.S. quarter, this repatriate to brought following cash we to our Through Second, the of back year. from we have year-to-date. continue U.S. the pooling third the earlier a international system cash the entities $XXX

from of me Next, helps million purchase select sell program, Lance has with this on increase million to program PBI This the take a the Bowes approximately initiative the improving discuss U.S. is certain the receivables quarter receivables PB program sense worth lease are let of receivables leases, sitting accelerate captive a the this while assets. end funded the of only said, our the million realization the Year-to-date, net roughly the which earning that corporate $XXX of $XX debt third lease-related cash in $XX program teed-up. to the to bank and will finance Bank's of receivables Bank. Bank as in receivables magnitude of noting captive at of PB is out for in It This give return to Pitney assets qualify lease driven captive time build. That at opportunity, PB Bank.

And and full assets an gears, through low-single-digit guidance. the let net deleveraging. Shifting year $XXX years. expect at on this program over fourth roughly finally, our initiative, enhance revenue to continue next an program drive incremental We update XXXX decline the expect covered provide me earning Lance our to We now a rate. to million several

to guidance to also million $XXX are raising We our million. EBIT $XXX

year-over-year, removal continue successful we costs SendTech, decline. to of IMI of our guidance. expect in are performance in Let migration terms me a One, positive impacting factors, Presort and our while items several note the driving

which million of approximately and In year SendTech, addition, the was fourth included quarter government account. in last revenue $X be taken large should deal into

fourth we our will the one-time as benefit approximately headwinds well speaking Second, mentioned quarter one-time not $X seasonal include earlier, and repeat $XX quarter-over-quarter, million related which guidance costs. million the sequentially additional as in in in

continue our our with XXXX it for I'll initiatives outlook comprehensive will strategic fourth back we Lance. you. over the As we view to quarter, to in our that, call. And more progress provide a on earnings Thank of pass during next

today's the presentation of call. you, open concludes John. now This now the Q&A. for Thank portion We'd call like to

[Operator Instructions] to We'll question, & go Anthony Lebiedzinski, Company. first Sidoti the

questions here. Lance, congratulations a your have promotion. yes, So on I do few

that. guys product as the at the terms I in look know guess, of required technology for I when the first I mean, third So the new we SendTech, about to we next USPS, old think able as quarter, you the that's you that talked migration impacting -- by that I the will how a about Do should far or headwind as out will year? be happen meters? that of being think looking to those technology rest transition know you

it overview Yes. and for Anthony, kind a I'll just broad turn John take I'll color. then over more of to

that been us in do attrition, migrated be but largely will is So did kind largely couple next additional few machines the in more It over have the should be technology. want next recent of those of result and migration most add? IMI behind to the quarters quarters. John, you complete some to and of the moderating

Yes. No, right. that's

have some would we uptick in the rates of the the the get in cancellation migration of seen as quarter to we process. end sort So

As we XX% complete. said we're earlier,

So year. the expect will the fail to end that of that we by complete don't

And platform. done We security I this new the to have to requirement a get get to suspect...

that, Okay. but cut you suspecting you I to didn't you I'm that something. off. were mean sorry. I saying do were

time, -- period see more to client was we're end like what going mid-volume No, for of forward sales equipment with low less revenue revenue period will say, complete recurring extension the base. Yes. the machines, a a so period. in now I just that is this the longer and more lease in lease of up the for going over secondary is What lease but that looking we'll

It's that kind impacted. cash our model that software expectation a made kind from model software of to is take where analogous short-term but a lot flow be companies SaaS transition a the will should of hit, of a to positively revenues licensed

Got it.

to Presort. sense we And going It able for Presort volumes a over how forward? quarter pricing Okay. there? then And What to think your as switching there. to about nice being is should certainly was sustain

Yes.

great, strong So performance with cylinders. with anticipating just all and running team that Presort we're is We're the of just results. really business. And very on the doing happy continued

year-over-year as as expenses, And a know up on right. All they the Okay. when lot cost basis. then far look out. so cost the at a I reductions, guys corporate talked were about you taking But I

you can that driving that? cost the what's go for So guys today, to -- just you increased maybe And just far of like savings primary announced as the factors clarify then over kind that? as

Yes, John. I'll take that. Anthony, it's

period, shown to So had booked actually period. variable compensation had actually the period what in respect prior versus we We we with year. a the the the in had in headwind more in

it So because that's the versus we're because, -- that's that we really were the year. team and mentioned we where statements, last internally in actually and for goals set I achieving my opening

mean, both we other have as without I segments, X corporate So units. the across business of cost well savings the that, all as in

really what offset is. the that's So

think the coming part seeing or I savings your spend. going we're from And significant second forward, of Anthony, indirect external question,

and for would contract it bring be team insurance like will that that outsourcing is So savings, renegotiations in-house confident cetera. vendors et our and examples things savings

that, identified for it the just these So fully and implement. are it it and takes a be takes to quarters expenses have renewals to all of contract that like a given we -- plan time few that we have But things recognized.

Got you.

keeping tailwinds look platform. be maybe of to mind just be at you key you looking as your far the to new headwinds? like are for I very main guess -- broad what of headwinds on mean, the in But XXXX, look-out and as maybe are just that the transition as units of I kind and that haven't things next speak simplified. kind should But or SendTech we should so that, you but if speaking, far obviously, out in not for year that main X% guidance business the specific picture, as what tailwinds said for now, we And then lastly we broadly All have me, the right. know given that you year, may could Okay. just for the when next I

of would of at I performance SendTech this not using the John great. that's really our within some the guidance as but all within X tailwinds the flow shipping well equipment business purchases business transition in be would our Headwinds say initiatives within a migration include or SendTech, And growth units. mentioned, and the the providing headwind, No, our revenue EBIT we're Yes. include But that our of again, an not that IMI lease would business, point. of some some Presort transactions of which And within we're SendTech. strong growth as completion headwind. from to cash

other And the would this be in savings actually tailwind program. additional cost

So of we'll what in see the already progress to the period. we continue to add

the We David Capital. to Contrarian will of go line Steinhardt,

done being process be of much expected the end expand So GEC going terms year, on I by how to largely that take? wonder is in you actually to of can And that? this longer

great, that's Yes, David.

prioritizing the a We that for creditor shareholders, down in taking the be it thing doing of take Hilco with bit of resolve the even will might or issues. that that company happy way There more these a right year. terms X means super to some longer. X of the may But we're wind our outliers if as bit of are remaining a last creditors complete end time we So by believe is be largely GEC the progressing.

in 'XX to an Okay. to, revenue inflection to growth our more And expect of, be as described, is of a in do more point, model ] I mode stream? back the terms guess, in or we do still terms you for SaaS-E as we [ and there in move SendTech

Yes.

guidance not affecting SendTech to as some into are 'XX. other And businesses. we we tailwinds gave color that mentioned, So and as providing the we're and headwinds the yet

revenue-related. of got what a I to our think the the earnings, extent tailwinds kind that we've And that behind are earnings that of affects but few headwinds some is more us. you'll see nice

And now debt is the on conversations, early detail? about Okay. it strategic right what to go of the in thinking terms you the or in into you're or can process expand describe too

absolutely. Yes,

we refinancing months And So stronger ago. a were I rebalancing materially think look now position. a much than are our at we few stronger debt a company credit as can and we from a

our balancing that So And look both we've maturities, allocating kind debt, careful we at about debt of we're things like we that have thing we're a other mentioned restructuring right look perspective. as at a a near-term of our at debt we holder that from $XXX for and aside sure of higher cash cost cash million And set the our and look we do minimizing debt, fees. shareholder making taking a -- reduction.

in That's doing at I that the terms and great. of, credit is guess, paths that mean, it's clear a far. on progress that lot you giving made look shareholders, -- market of sure the team have I'm full maximize you're for so to all I not making you progress. your And a you're taking work value for

decision? give what to potential going you're route do path XX taken wider for net with I think lower like guess, preview more of that's engage a leverage if thinking or community X plan a can to you how standpoint maybe to that's now. about a you maximizing the strategic months from at us investor we're a much I value be instead

very business. trying that in And And We're market. continue being our clear our that on I progress credibility I've in can't information. to with company. in the really very a progress a we're the Yes. issue comment that been the making I take And way market the here business identifying to when making. -- would in the that at started. I company values the very we're our be credibility earning I for at feel we the And say, and like look we're transparent the But good time being outlook had comprehensive

on very on and made is overachieving cash GEC, which we're well. where think decision just cost real we're bold on really turning out and We're quick a savings. I optimistic And our we heading.

DOMO to Justin Okay. Capital We'll of Management. next Dopierala go line,

fantastic A few Really quarter, guys. things.

of mentioned in a of all, ops. that's First continuing part GEC you there's still

have earnings. about if Does to excluded, sound it Looking at like were per added that another that, right? that about be it $X.XX to looks share would

about All right. was... it in, That's

right, A I few someone secular segments, All that how the as look perfect. long-term other decline? on the prospects respond And the you would questions. wondering, business core you for parts could to X remaining of in was business? you the elaborate at out would say major are

Unfortunately your another to Operator, better to maybe and come if question get back not has able Justin we questions. he take line. a

Are to unable me? you hear

Give shot. another that

again. try Let's

core you Okay. X I parts the said, are would elaborate business? that segments, to you remaining at someone on would you the in prospects major respond look for out say how of can long-term the And business as the decline? secular

Yes.

consistent that mentioned a looking and Presort the has side, And SendTech we're we've at So both business. as been the on business the grower. Presort

releases effectively. more continuing legacy seen growth. SendTech we've very the a prior markets some job the we shipping years consecutive at team from of that markets. call calls, of managing the in headwinds faster-growing I And doing is SaaS technology-oriented transitioning kind some this have to but terrific many So those business, regular think in and quarters The we're of and and of identified

future of most excite that Okay. And you what right revenue-generating ideas expansion now?

that well enter as shipping business. our both looking that opportunities through about But Presort, in M&A that accelerate say segments would we And at accretive. very of talk XXXX So particular. specific stay mentioned are tuck-in in some new the growth quarter have of acquisitions some to is -- SendTech organic initiatives as when has I we've to through highly give we'll advantages -- there's another we that tuned

So market, shipping is for has and potentially for offers SaaS primarily market a example, to of the an us. been e-commerce great in expand adjacent kind the which into office-to-office that's large great business that shipping opportunity opportunity has a market and

last Okay, stock piggyback I'll the on where excellent. kind And the -- of caller. given

leverage despite you approach plan? earnings currently looking per any stock Given year, to share likely repurchase that guys $X.XX share where a perhaps before to are are that specific trades, the are at announcing there next close metrics

Yes.

rigorous So goals needs of is the a every looks shareholders And dividend we quarter, what very allocation good take and look weighs at of capital. which consistently. and we the today, We at goals Board needs our I debt and holders. the would that there, allocate its continue Justin, carefully and capital have announce did our we'll doing how to a been say

Excellent. And is hear available? lastly, correctly I Kurt also did that

Justin, the call. I'm Yes, on

as -- maybe just process was I wondering, Lance on could through on went elaborate to the question in you permanent full that Kurt. question. bringing a That's If last you time CEO as CEO? my

Yes.

which very our qualified firm. candidates what And I chaired Enhancement Committee process. say that Board, the recruiting number very came a So I'd through with highly search involved Value is we very of of and ran the the was thorough process a spoke with

process, wrapped what for to really stood are this that a there reasons clear the as us Lance X choice. And among competitive incredibly is up would I we field, say, was clear As out that.

cost-out far of and opportunity, the has example significantly is notable turnaround that. most the exceeded First of all, expectations Lance to accelerated expanded date. the He our on

strong talented skills Second, Board to compelling of any an job Bowes. done getting I finally, has management impressive believe presented Pitney turnaround. demonstrated path and Lance think from change very then for I critical Lance throughout has a our And sort buy-in which and the dedicated is forward turnaround, of highly to team the

like demonstrated do forward has to really sharing I'd path future but to really -- something was well important talking today, in add We forward the that that with you Lance to I'd it calls. And think I about Board be aren't to won't Lance as the highlight. look it, I

when the how was about as did investors to opportunity, do was we're well, did are the think things. Lance most Going right doing essentially, and about he the this the long-term path do back forward, he And priority how we market about Lance's think as spoke appreciate Board start he really things. I on to was with investor -- that? to as the all to asking appreciated What #X David's a what call myself, think get of question right long-term the doing I about

I'm investors generate with And doing results earning results attitude get the Lance so talk made do his on what things, people and clear that appreciate focus to right sure this driving that, credibility. And let's then the the agree all call and done. well, talk would the of as about and Lance, let's to agree I think we market the and very we've let's point go would be perform, wholly of the I how to

So his I driving that answers in shareholders. and priorities he about on Hopefully, well. of fixing think value how question the terms company are for spot the thinks

we'll And Northcoast Research. next line, Kartik to go Mehta,

Lance, some and I just that have you given Is as use the it displacing win has that business a for or done is should great primary you are you've well business? the in why. solution customers that business? what that wondering, in and to competitor SendTech commentary And they shipping I'm you convincing know to somebody really your

Yes.

things. of of a So which Octane, major space. that business units has the are number that One there's is that competitors called a few company one is a in

shippers really shipper. offers a do wholesome what Some this directly optimize Pitney technology Bowes And enables themselves, to is their with some that shipping. companies to a opt go

strong that it provides are focus with also admire. we selects particularly And tools, shipping large very security. clients very, individual It need excellent and it their vendors best on which the of a for the do So available analytic needs. some

And I needs the are heard I the some requirements out is with I on was field really our when feel major really technologies. delivering And those in that clients. like team our of those

at side, ultimately available little just program? maybe you are what that And a PB bit on leases John, generation of just to receivable on maybe, from percentage then can you And for Bank the of expand in that achieve terms opportunity those the could understand cash what that?

Yes.

So it's Kartik, John.

would that both by same actually I So say that I available Bank benefit over well years you couple expand about next $XXX we're period. as that of would that looking actually million the parent that and to Today, Pitney yes, actually the as what over so we're fairly opportunities. we're is us. to to more tell still percentage looking would evaluating qualify actually limited it's

Lance, Great congrats Perfect. lastly, to the on see. CEO just permanent position.

I Kartik. you, that. appreciate Thank

in this time, remarks have Rosenzweig, questions this time? Mr. queue. additional no we at further At Okay. any

you look our updating quarter earnings forward next Thank call in again We joining. thank and you, year. to operator, all fourth for you early

you conclude We that does for do Ladies your and you. thank conference. joining. Thank gentlemen,

now may disconnect. You