Transcript Slide 1

FINANCIAL UPDATE
Mailers’ Technical Advisory Committee
Meeting
April 29, 2009
J. Corbett
Chief Financial Officer &
Executive Vice President
Economy-Business Impact
Global Insight's Baseline
Forecasts for FY 2009
Jan-08 Aug-08 Dec-08
GDP
Retail Sales
Employment
Investment
CPI-U
Rate Assumptions*
USPS Volume**
*Mailing Services Only
**In Millions
2.3%
1.4%
1.1%
1.7%
1.4%
2.9%
0.7%
-1.6%
-0.6%
-3.8%
4.1%
4.8%
-1.7%
-7.5%
-2.2%
-16.4%
-1.1%
3.8%
Mar-09
Apr-09
-3.2%
-9.9%
-3.8%
-21.5%
-1.2%
3.8%
-3.0%
-9.3%
-3.9%
-21.2%
-0.8%
3.8%
205,265 194,528 189,571 180,000 180,000
February YTD FY 2009
SPLY Financial Results
Revenue
$2.8 Billion
Below SPLY
Expenses
$0.8 Billion
Below SPLY
Net Income
$2.0 Billion
Below SPLY
* Numbers may not add due to rounding
February YTD FY 2009
Financial Results
Actual
SPLY
Var
Revenue $30,214 $33,041 [-$2,828]
Expense 32,011
Net Loss -$ 1,797
%SPLY
[-8.6%]
32,784
-773
-2.4%
$ 258 [-$2,055] [-797.4%]
Mail Volume (%SPLY): -12.1%
[ ] = Unfavorable variance to Plan/SPLY
(Data in Millions)
Numbers may not add due to rounding
February YTD FY 2009
Expense by Category
($ in Billions)
$2,719
8.3%
$3,932
12.6%
$25,921
79.1%
Total Personel Comp
% SPLY 
(1.6%)
Transportation
(7.2%)
Other
(3.7%)
February YTD FY 2009
Workhours % SPLY
0%
-2%
-4%
-6%
-5.1%
-4.9%
-6.2%
-8%
-10%
-12%
-14%
-16%
-12.1%
-12.3%
-14.0%
Mail Volume
Mail
Processing
Customer
Service
Rural
Delivery
City
Delivery
Other
March Expectations
No significant change in economic forecast
resulting in continued revenue and volume
declines
USPS continues to aggressively manage the
business
Variable workhours declining to partially offset
revenue declines
Quarterly Volume - % SPLY
-3.1%
-2.0%
-2.1%
-3.2%
-4.8%
-5.6%
-4.9%
-6.4%
-9.3%
-10.5%
-14.7%
-15.9%
Qtr 1
Qtr 2
Qtr 3
Qtr 4
Qtr 1
FY 2009
FY 2008
Mailing Services
Shipping Services
Qtr 2*
*Preliminary
First-Class Mail Volume
1.6%
1.2%
-0.8% -0.1%
-1.3%
-2.5%
-2.6%
-3.9%
-3.1%
-5.5%
-6.9% -7.2%
-9.9%
Q2
Q3
Q4
FY 2006
% SPLY
Q1
Q2
FY 2007
Q3
Q4
Q1
Q2
Q3
FY 2008
8 Quarter Moving Average Growth Rates
Q4
Q1
Q 2*
FY 2009
*Preliminary
Standard Mail Volume
4.9%
2.7%
2.8%
1.2%
0.2%
-0.9% -1.4%
-2.6% -3.0%
-5.5%
-6.1%
-11.0%
-19.8%
Q2
Q3
Q4
FY 2006
% SPLY
Q1
Q2
FY 2007
Q3
Q4
Q1
Q2
Q3
FY 2008
8 Quarter Moving Average Growth Rates
Q4
Q1
Q 2*
FY 2009
*Preliminary
Periodicals Volume
1.2%
0.1%
0.3%
-0.5%
-0.6%
-2.2%
-2.2%
-3.3%
-2.6%
-3.5%
-4.3%
-5.3%
-7.8%
Q2
Q3
FY 2006
% SPLY
Q4
Q1
Q2
FY 2007
Q3
Q4
Q1
Q2
Q3
FY 2008
8 Quarter Moving Average Growth Rates
Q4
Q1
Q 2*
FY 2009
*Preliminary
Bulk Mail Acceptance
We N
WE NEED YOUR HELP!
Issue
 Postal Service received Significant Deficiency from
external auditor for ineffective financial controls
pertaining to Business Mail Acceptance
– Timely recognition of revenue
– Customer trust balances
– Incomplete postage statements
Mailer
USPS
Progress to Date
BMA Results
FY 2007
FY 2009
(March)
Timely Postage Statement Entry
77%
99%
Master Trust Reconciliation
87%
97%
September
2008
March
2009
Number of Accounts
2,000
260
Balance of Accounts
$1.7M
$413K
BMA Items
BMA Items
Negative
Balances
16
Metrics
Progress to Date
Completion of Postage Statements
Control
Actual Pass Rate %
10
20
30
40
50
60
70
80
90
Number of Addressed Pieces
Periodicals
Total Postage
Owner or Agents Signature
Total Postage
Permit
Signature of Mailer
Completion of Postage Statements
FY 2009 YTD Compliance Rates
Periodicals
68%
Permit
38%
Target Pass
Rate
SOX and the Role of Our Customers
 Do not present a mailing with a hard copy postage statement
if you submitted one electronically
 Ensure all sections of postage statements are correct after
making changes
 Verify permit number on the mail matches the postage
statement
 Check that mailing fees and authorizations such as Nonprofit are current
SOX and the Role of Our Customers
 Provide the required documentation to support the rates
claimed on the postage statement
 Update your mailer profile and ensure your permit is valid
 Keep your business account active
– After 2 years of non-activity your account will expire
 If you are a publisher - Make sure you file your Statement of
Ownership in October
 Communication is the key – Ask the BMEU for assistance if
needed
FINANCIAL UPDATE
Mailers’ Technical Advisory Committee
Meeting
April 28, 2009
J. Corbett
Chief Financial Officer &
Executive Vice President