Title: Mailers Technical Advisory Committee Meeting
1MTAC
FINANCIAL UPDATE
- Mailers Technical Advisory Committee Meeting
- May 16, 2007
H. Glen Walker Chief Financial Officer
Executive Vice President
2Income Statement Qtr 2, FY 2007
3Income Statement Qtr 2 YTD, FY 2007
4Volume Performance Qtr 2 YTD, FY 2007
5First-Class Mail Volume
FY 2005
FY 2006
FY 2007
6Standard Mail Volume
FY 2005
FY 2006
FY 2007
7Periodicals Volume
FY 2005
FY 2006
FY 2007
8Revenue Variance to SPLY
9Total Factor Productivity
10Variance to Workhour Savings YTD March
Variance
Plan
Actual
Workhour Savings
9.1
14.8
5.7
Salaries Benefits Savings
328
533
205
Less Labor Mix Savings
-105
Total Salaries Benefits Variance to Plan
100
National Day of Mourning 3.4M Workhours (122M)
(Data in Millions)
11Expense Drivers to SPLY Variance
12Statements of Cash Flow
13FY 2007 Debt through Qtr 2 YTD
14Risks to Outlook for Quarters 3 and 4
- Economy
- Potential Impact from May Rate Increase
- Labor Agreements / Workhour Reductions
- Workers Compensation
15Outlook for Quarters 3 and 4
Risk Level
Plan
Volume
Medium to High
-1.7 to SPLY
Revenue
Medium to High
37.3B
Medium
Expense
39.1B
Medium to High
-1.8B
Net Loss
Includes Legislative Changes
16Actions to Manage Risks
- Workhour Controls
- Reduce Overtime
- Full Use of Negotiated Labor Flexibility
- Tight Cost Control
17Summary of Costs From New Law FY 2008
- Eliminate CSRS Contribution 1.5
- Eliminate Escrow Payment 3.6
- Scheduled Payment to RHBF (5.6)
- Removal of Interest Income on Escrow (0.3)
- Additional SOX and Administrative (0.2)
- Direct Impact of Reform on Net Income (1.0)
18MTAC
FINANCIAL UPDATE
- Mailers Technical Advisory Committee Meeting
- May 16, 2007
H. Glen Walker Chief Financial Officer
Executive Vice President