{"id":14931,"date":"2016-05-10T08:07:25","date_gmt":"2016-05-10T13:07:25","guid":{"rendered":"http:\/\/postalemployeenetwork.com\/news\/?p=14931"},"modified":"2016-05-10T08:07:25","modified_gmt":"2016-05-10T13:07:25","slug":"postal-service-reports-fiscal-year-2016-second-quarter-results","status":"publish","type":"post","link":"https:\/\/postalemployeenetwork.com\/news\/2016\/05\/10\/postal-service-reports-fiscal-year-2016-second-quarter-results\/","title":{"rendered":"Postal Service Reports Fiscal Year 2016 Second Quarter Results"},"content":{"rendered":"<ul>\n<li><em>Operating revenue grew 4.7 percent to $17.7 billion<\/em><\/li>\n<li><em>Controllable income totaled $576 million; net loss of $2.0 billion reported<\/em><\/li>\n<li><em>Postal Service revenue benefited from exigent surcharge, which expired on April 10, 2016<\/em><\/li>\n<li><em>Legislative reform and focus on innovation and efficiency remain necessary\u00a0<\/em><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-79\" src=\"https:\/\/postalemployeenetwork.com\/news\/wp-content\/uploads\/2009\/04\/usps-logo1-300x169.gif\" alt=\"USPS\" width=\"300\" height=\"169\" srcset=\"https:\/\/postalemployeenetwork.com\/news\/wp-content\/uploads\/2009\/04\/usps-logo1-300x169.gif 300w, https:\/\/postalemployeenetwork.com\/news\/wp-content\/uploads\/2009\/04\/usps-logo1.gif 497w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/p>\n<div class=\"wp-caption-dd\"><strong>WASHINGTON<\/strong><span class=\"Apple-converted-space\">\u00a0<\/span>\u2014 The U.S. Postal Service reported operating revenue of $17.7 billion for the second quarter of fiscal year 2016 (January 1, 2016 &#8211; March 31, 2016), an increase of $788 million or 4.7 percent over the same period last year. The increase was primarily due to an 11.4 percent increase in Shipping and Package volume and pricing strategies.<\/div>\n<p>\u201cWhile we have been successful in achieving controllable income during the quarter, we are still reporting net losses and contending with long-term financial challenges,\u201d said Postmaster General and Chief Executive Officer Megan J. Brennan. \u201cWe continue to focus on improving operating efficiencies, speeding the pace of innovation, and increasing revenues for the Postal Service.\u201d<\/p>\n<p>Controllable income for the quarter was $576 million compared to $313 million for the same period last year. Calculation of controllable income takes into account the impact of operational expenses including compensation, benefits and work hours; but does not reflect factors such as the legally-mandated expense to prefund retiree health benefits (see Non-GAAP Financial Measures table on following page for full description).<\/p>\n<p>Net loss for the quarter was $2.0 billion compared to $1.5 billion for the same period last year. The change in net loss was most significantly impacted by a $547 million unfavorable change in the workers&#8217; compensation expense as a result of interest rate changes &#8211; a factor outside of management\u2019s control.<\/p>\n<p>Operating expenses also increased in the second quarter compared to the same period last year, driven by increased work hours and transportation expenses due in large part to the increase in package volume. Labor costs increased by $362 million, and transportation expense increased by approximately $149 million.<\/p>\n<p>&#8220;During the second quarter, we expanded work hours and our transportation network, taking more trips and increasing miles flown,&#8221; said Chief Financial Officer and Executive Vice President Joseph Corbett. \u201cThis largely resulted from strategic business decisions enacted to accommodate package growth and enhance service across the country.\u201d<\/p>\n<p>\u201cI am grateful to our dedicated employees who helped us to achieve controllable income this quarter, but we cannot let this result mask the financial challenges we face,\u201d said Brennan. \u201cOur financial situation is serious, but solvable. We are confident that we can return to financial stability through the enactment of prudent legislative reform and a favorable resolution of the upcoming regulatory review of our rate-setting system.\u201d<\/p>\n<p><strong>Selected Second Quarter 2016 Results of Operations Compared to Same Period Last Year<\/strong><br \/>\nThe following table presents certain selected results of operations for the three months ended March 31, 2016 and 2015:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-14933\" src=\"https:\/\/postalemployeenetwork.com\/news\/wp-content\/uploads\/2016\/05\/usps-2016-financials1.jpg\" alt=\"usps-2016-financials1\" width=\"471\" height=\"614\" srcset=\"https:\/\/postalemployeenetwork.com\/news\/wp-content\/uploads\/2016\/05\/usps-2016-financials1.jpg 471w, https:\/\/postalemployeenetwork.com\/news\/wp-content\/uploads\/2016\/05\/usps-2016-financials1-230x300.jpg 230w\" sizes=\"auto, (max-width: 471px) 100vw, 471px\" \/><\/p>\n<p><strong>Non-GAAP Financial Measures<\/strong><strong><span class=\"Apple-converted-space\">\u00a0<\/span><\/strong><br \/>\nIncluded in this news release is controllable income, which is not calculated and presented in accordance with accounting principles generally accepted in the United States (GAAP). Controllable income is a non-GAAP financial measure defined as net income subtracting operating expenses considered outside of management\u2019s control. These expenses include the mandated prefunding of retirement health benefits, actuarial revaluation of retirement liabilities and non-cash workers\u2019 compensation adjustments.<\/p>\n<p>The following table reconciles GAAP net loss to controllable income and illustrates the income from ongoing business activities without the impact of non-controllable items for the three months ended March 31, 2016 and 2015:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-14934\" src=\"https:\/\/postalemployeenetwork.com\/news\/wp-content\/uploads\/2016\/05\/usps-2016-financials2.jpg\" alt=\"usps-2016-financials2\" width=\"471\" height=\"338\" srcset=\"https:\/\/postalemployeenetwork.com\/news\/wp-content\/uploads\/2016\/05\/usps-2016-financials2.jpg 471w, https:\/\/postalemployeenetwork.com\/news\/wp-content\/uploads\/2016\/05\/usps-2016-financials2-300x215.jpg 300w\" sizes=\"auto, (max-width: 471px) 100vw, 471px\" \/><\/p>\n<p>Complete financial results are available in the Form 10-Q, available at<span class=\"Apple-converted-space\">\u00a0<\/span><em><a href=\"http:\/\/about.usps.com\/who-we-are\/financials\/welcome.htm\">http:\/\/about.usps.com\/who-we-are\/financials\/welcome.htm<\/a><\/em><strong>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Operating revenue grew 4.7 percent to $17.7 billion Controllable income totaled $576 million; net loss of $2.0 billion reported Postal Service revenue benefited from exigent surcharge, which expired on April 10, 2016 Legislative reform and focus on innovation and efficiency remain necessary\u00a0 WASHINGTON\u00a0\u2014 The U.S. Postal Service reported operating revenue of $17.7 billion for the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":79,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-14931","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-usps-news","last_archivepost"],"_links":{"self":[{"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/posts\/14931","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/comments?post=14931"}],"version-history":[{"count":4,"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/posts\/14931\/revisions"}],"predecessor-version":[{"id":14937,"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/posts\/14931\/revisions\/14937"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/media\/79"}],"wp:attachment":[{"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/media?parent=14931"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/categories?post=14931"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/tags?post=14931"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}