Miller Value Partners recently released its Q1 2021 Investor Letter, a copy of which you can download here. In the first quarter, the Miller Income Fund’s I-shares returned 17.36% versus 0.90% for the ICE BofA Merrill Lynch High Yield Index. You should check out Miller Value Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.
In the Q1 2021 Investor Letter, the fund highlighted a few stocks and Pitney Bowes Inc (NYSE:PBI) is one of them. Pitney Bowes Inc (NYSE:PBI) is a technology company. In the last three months, Pitney Bowes Inc (NYSE:PBI) stock gained 31%. Here is what the fund said:
“Pitney Bowes (PBI) rose 34.5% during the period after reporting Q4 revenue of $1.03Bn and Earnings Per Share (EPS) of $0.13, both topping consensus of $938.7M and $0.10, respectively. E-commerce revenue of $500M rose +60% Year-over-Year (Y/Y) on the back of +50% volume growth while organic revenue advanced +24%. The company generated $111M in operating cash flow (+31% Y/Y) and $97M in free cash flow (+19% Y/Y), driving debt reduction of $31M. PBI exited the year with total liquidity of $1.2Bn, comprised of $940M in cash and $260M available on the Revolving Credit Facility, implying trailing twelve month (TTM) net leverage of 4.3x. For FY21, management expects low-to-mid single digit revenue growth, positive EPS growth, and slightly lower free cash flow due to working capital reversal and a normalized level of capital expenditures (capex). PBI announced a series of steps to further optimize its capital structure, extend its maturity schedule, and lower its cost of borrowing, including the redemption of the $173M 3.375% unsecured bonds due 2021 and a tender offer for up to $375M of its 2022-2024 maturities. Additionally, the company secured a new $450M Term Loan-B at L+400 bps2 due 2028, which in conjunction with a portion of the proceeds from the unsecured issuance, will retire the existing $850M Term Loan-B due 2025.”
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