U.S. Postal Service Reports Fiscal Year 2022 Results

• Operating income of $78.5 billion, up $1.5 billion over the earlier fiscal 12 months
• Adjusted loss elevated by $2.0 billion as excessive inflation continues to influence working bills
• One-time, non-cash good thing about $57.0 billion as a result of Postal Service reform laws
• Continued progress on implementation of Delivering for America plan

WASHINGTON, Nov. 10, 2022 /PRNewswire/ — The U.S. Postal Service at present introduced its monetary outcomes for the 2022 fiscal 12 months ended September 30. The enactment of the Postal Service Reform Act (PSRA) in April 2022 considerably impacted the monetary situation of the Postal Service, because it repealed the requirement that the Postal Service yearly prepay future retiree well being advantages and canceled all late prefunding obligations. These impacts are mirrored as a one-time, non-cash good thing about $57.0 billion to internet revenue for the 12 months.

The Postal Service had an adjusted lack of $473 million for the 12 months, in comparison with adjusted revenue of $1.5 billion for a similar interval final 12 months. Adjusted loss (revenue) excludes the influence of the PSRA, retiree well being advantages expense, non-cash employees’ compensation changes for the impacts of actuarial revaluation and low cost price adjustments, that are exterior of administration’s management, and amortization bills for the Civil Service Retirement System (CSRS) and the Federal Employee Retirement System (FERS) unfunded liabilities. On a U.S. usually accepted accounting ideas (GAAP) foundation, the Postal Service had internet revenue of $56.0 billion for the 12 months, in comparison with a internet lack of $4.9 billion for a similar interval final 12 months, due nearly completely to the one-time, non-cash influence of the PSRA.

“Our latest results show that we are making solid and steady progress – despite administrative, operational, and inflationary headwinds – toward our goals of financial break-even on an annual basis and sustainability on a long-term basis,” mentioned Postmaster General and CEO Louis DeJoy. “While we are not where we want to be and still have far to go, the execution of our Delivering for America plan is producing greater operational efficiencies, improving service performance, generating more revenue, and enabling long-deferred investments to modernize our technology and operations infrastructure. Together, our leadership team and all our employees know we need to remain laser focused and drive hard to implement operational changes, capture the available efficiency gains, and grow our revenue, consistent with the initiatives in our plan.”

The Postal Service’s working income was $78.5 billion for the 12 months, a rise of $1.5 billion, or 1.9 %, regardless of a quantity decline of 1.6 billion items, or 1.2 %, in comparison with the identical interval final 12 months.

Marketing Mail income elevated $1.4 billion, or 9.7 %, on quantity development of 894 million items, or 1.4 %. Marketing Mail skilled steep quantity declines on the onset of the pandemic however has been rebounding because the economy continues to recuperate. Marketing Mail has usually confirmed to be a resilient advertising and marketing channel, and its worth to U.S. companies stays sturdy as a result of buyer returns on funding and higher knowledge and know-how integration.

First-Class Mail income elevated $772 million, or 3.3 %, regardless of a quantity decline of 1.7 billion items, or 3.4 %, in comparison with the identical interval final 12 months. First-Class Mail income development was as a result of value will increase, whereas quantity continued to say no as a result of on-going migration from mail to digital communication and transaction options and stays decrease than pre-pandemic ranges.

Shipping and Packages income decreased $700 million, or 2.2 %, on a quantity decline of 399 million items, or 5.3 %, in comparison with the identical interval final 12 months. Higher package deal volumes within the prior 12 months had been as a result of pandemic-related surge in e-commerce, which continues to abate because the economy recovers and market competitors intensifies, though such volumes are nonetheless increased than pre-pandemic ranges.

Adjusted loss elevated by $2.0 billion, in comparison with the identical interval final 12 months, regardless of the $1.5 billion enhance in income, as a result of inflationary impacts on a number of working expense classes. Compensation and advantages expense elevated $1.4 billion, or 2.9 %, primarily as a result of wage will increase in our labor agreements tied to inflation, and particularly the impacts of price of dwelling changes. Highway transportation expense elevated $696 million, or 12.8 %, partially as a result of increased common diesel gas prices for long-haul transportation on account of inflation. Other working bills elevated $1.3 billion, or 13.0 %, as inflationary pressures have led to increased common gas costs for supply autos and a rise in lease and utilities prices.

“As we previously mentioned in the third quarter release, the enactment of the PSRA was a key component of improving the Postal Service’s financial condition,” mentioned Chief Financial Officer Joseph Corbett. “However, the one-time, non-cash impact to net income is not reflective of our true financial condition for the year. High inflation is presenting significant challenges to the Postal Service. We are rising to meet these challenges through strategic management of our business that will allow us to continue providing high-quality service to the American public while supporting our employees and achieving long-term financial sustainability.”

Fiscal Year 2022 Operating Revenue and Volume by Service Category Compared to Prior Year

The following desk presents income and quantity by class for the years ended September 30, 2022 and 2021:

Selected Fiscal Year 2022 Results of Operations and Non-GAAP measures
This information launch contains controllable loss which isn’t calculated and introduced in accordance with GAAP. This non-GAAP measure is calculated as internet revenue (loss) adjusted for the influence of the PSRA, employees’ compensation bills attributable to actuarial revaluation and low cost price adjustments, bills attributable to the actuarial revaluation of the Postal Service Retiree Health Benefits Fund (PSRHBF), and the amortization of the PSRHBF, CSRS and FERS unfunded liabilities.

This information launch references controllable (loss) revenue excluding all retiree well being advantages expense which isn’t calculated and introduced in accordance with GAAP. This non-GAAP measure is calculated as internet revenue (loss) adjusted for the influence of the PSRA, all retiree well being advantages expense, employees’ compensation (profit) expense attributable to actuarial revaluation and low cost price adjustments, and the amortization of CSRS and FERS unfunded liabilities.

These non-GAAP measures present significant data to help customers of the Postal Service’s monetary statements in additional totally understanding the monetary outcomes and assessing the Postal Service’s ongoing efficiency as a result of they exclude objects that is probably not indicative of, or are unrelated to, underlying operations.

Non-GAAP monetary measures must be thought-about along with, and never in its place for, the Postal Service’s reported outcomes ready in accordance with GAAP. This adjusted monetary data doesn’t characterize a complete foundation of accounting.

The following desk reconciles GAAP internet revenue (loss) to the non-GAAP monetary measures for the years ended September 30, 2022 and 2021:

Financial leads to the Form 10-Okay can be found at http://about.usps.com/what/financials/.

Forward-Looking Statements
Forward-looking statements contained on this launch characterize the Postal Service’s greatest estimates of recognized and anticipated tendencies believed related to future operations. However, precise outcomes could differ considerably from present estimates. Certain forward-looking statements included on this launch use such phrases as “may,” “will,” “could,” “expect,” “believe,” “plan,” “estimate,” “project,” or different related terminology. These forward-looking statements, which contain plenty of dangers and uncertainties, replicate present expectations relating to future occasions and working efficiency as of the date of this report. These dangers embody, however aren’t restricted to, the results of COVID-19 on the Postal Service’s business, monetary situation, and outcomes of operations. The Postal Service has no obligation to publicly replace or revise any forward-looking statements, whether or not on account of new data, future occasions, or in any other case.

Contact: David Partenheimer
202.268.2599
[email protected]
usps.com/news

SOURCE U.S. Postal Service