open session - usps · 2016. 9. 27. · september 27, 2016 washington, dc september 27, 2016 1 ....

®

Open Session

Board of Governors

Temporary Emergency Committee Meeting

September 27, 2016 Washington, DC

September 27, 2016 1

2 Preliminary

Preliminary Financial Results

August 2016

Open Session

Temporary Emergency Committee September 27, 2016

2 September 27, 2016

Preliminary

Preliminary Financial Results

August YTD (11 months) Prelim FY

(Billions) 2016 2015

Revenue (Excluding Temporary Exigent Surcharge) 1, 4 63.7$ 61.4$

Temporary Exigent Surcharge 2 1.1 1.9

Total Revenue 64.8 63.3

Controllable Expenses 3, 4 64.0 62.2

Controllable Income (Loss) 1, 2, 3, 4 0.8 1.1

Retiree Health Benefits Pre-Funding (5.3) (5.2)

Workers' Comp. Fair Value Adj. (1.2) (0.6)

Workers' Comp. Other Non-Cash Adj. 0.2 0.6

FERS Unfunded Liability Amortization (0.2) -

Change in Accounting Estimate 5 1.1 -

Net Income (Loss) 4 (4.6)$ (4.1)$

Volume (Pieces) 141 142

1 - Change in Accounting Estimate is excluded from Revenue for this presentation.

2 - Temporary exigent surcharge expired April 10, 2016.

3 - Before RHB pre-funding, non-cash adjustments to workers’ compensation liabilities and FERS unfunded liability amortization, which are excluded from controllable expenses.

4 - August YTD FY2016 has 0.25 more retail days and one more delivery day as compared to FY2015.

5 - Newly available data on prepaid postage resulted in a $1.1B decrease in the liability for deferred revenue - prepaid postage and a corresponding increase in revenue.


4 Preliminary

Volume: FY2016 August YTD vs. SPLY

FY2016 August YTD has 0.25 more retail days as compared to FY2015.

FY2015

141.5B

FY2016

141.3B 0.2B

FCM

Single-Piece

FCM

Presort Letters

& Other

Standard

Mail Total Shipping

& Package International

Mail

Other

(incl. Periodicals)

0.0

20.0

40.0

60.0

80.0

FCM Single-Piece

FCM PresortLetters & Other

Standard Mail Other (includesPeriodicals)

Total Shipping& Package

InternationalMail

19.1

38.5

73.1

5.7 4.2 0.9

18.2

38.2

73.7

5.6 4.7 0.9

Pie

ces

- B

illio

ns

(4.8)% (0.7)% 0.7% (3.4)% 13.5% 8.5%


5 Preliminary

Total Revenue FY2016 August YTD vs. SPLY: (including Exigent Surcharge in 2015 & 2016, but excluding one-time change in accounting estimate in 2016)

* FY2015 excludes a one-time, non-recurring accounting adjustment


FY2015

$63.3B

FY2016

$64.8B $1.5B

FCM

Single-Piece

FCM

Presort Letters

& Other

Standard

Mail

Total Shipping

& Package

International

Mail

Other *

(incl. Periodicals)

(5.1)% (1.4)% (0.1)% (3.2)% 15.7% 2.2%

$0.0

$5.0

$10.0

$15.0

$20.0

FCM Single-Piece

FCM PresortLetters & Other

Standard Mail Other (includesPeriodicals)

Total Shipping &Package

InternationalMail

$9.5

$16.6 $16.1

$4.8

$13.8

$2.5

$9.0

$16.4 $16.1

$4.7

$16.0

$2.6

$ B

illio

ns


6 Preliminary

Shipping & Package Volume: FY2016 August YTD vs. SPLY


FY2015

4.2B

FY2016

4.7B 0.5B

Priority Mail

Express

First-Class

Package Service Priority Mail

& Standard Post

Package

Services

Parcel Select

& Std. Parcels

(8.0)% 9.5% 3.5% 23.9% 2.7%

0.0

1.0

2.0

3.0

Priority MailExpress

First-Class PackageService

Priority &Standard Post

Parcel Select &Return & Std.

Parcels

Package Svcs

0.03

0.9 0.9

1.9

0.5 0.03

0.9 1.0

2.3

0.5

Pie

ces

- B

illio

ns


7 Preliminary

Shipping & Package Revenue: FY2016 August YTD vs. SPLY


FY2015

$13.8B

FY2016

$16.0B $2.2B

Priority Mail

Express

First-Class

Package Service Priority Mail

& Standard Post

Package

Services

Parcel Select

& Std. Parcels

3.6% 20.6% 7.8% 36.9% (2.7)%

$0.0

$2.0

$4.0

$6.0

$8.0

Priority MailExpress

First-Class PackageService

Priority Mail &Std. Post

Parcel Select &Return Std. Parcels

Package Svcs

$0.7

$2.1

$7.1

$3.2

$0.7 $0.8

$2.5

$7.6

$4.4

$0.7

$ B

illio

ns


8 Preliminary

August YTD (11 Months) Prelim FY

(Billions) 2016 2015

Compensation & Benefits $48.8 $47.6

Transportation 6.4 6.0

Depreciation 1.6 1.6

Supplies & Services 2.5 2.4

Rent, Utilities & Other 4.7 4.6

Controllable Expenses $64.0 $62.2

Workhours (Millions) 1,062 1,035

1, 2

Preliminary Controllable Expenses

1 - Delivery days were one more compared to SPLY.

2 - Before RHB pre-funding, non-cash adjustments to workers’ compensation liabilities and FERS unfunded liability amortization, which are excluded from controllable expenses.

1


®

Quarterly Service

Performance Report

Temporary Emergency Committee Meeting

Open Session

September 27, 2016

David E. Williams

Chief Operating Officer


Quarter 3 Performance

Record Performance

Employee Commitment

Predictable Service

Quarter 3, Fiscal Year 2016


®

FIRST-CLASS MAIL

SERVICE PERFORMANCE



Actual SPLY

100 -

90 -

80 -

70 -

60 -

50 -

First-Class Overnight

96.74 95.76


Target

96.80

QTR 3

Actual

SPLY Var


Actual SPLY

100 -

90 -

80 -

70 -

60 -

50 -

First-Class 2-Day

95.90 94.06


Target

96.50

QTR 3

Actual

SPLY Var


Actual SPLY

100 -

90 -

80 -

70 -

60 -

50 -

First-Class 3-5 Day

92.84 85.94


Target

95.25

QTR 3

Actual

SPLY Var


®

STANDARD MAIL

SERVICE PERFORMANCE



Standard Mail Composite

Actual SPLY

91.00

100 -

90 -

80 -

70 -

60 -

50 -


95.71 91.85

Target

QTR 3

Actual

SPLY Var


Summary

Predictable Service

Drive Process Improvement

Employee and Industry Engagement


open session - usps · 2016. 9. 27. · september 27, 2016 washington, dc september 27, 2016 1 ....

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