USPS Revenues Flat In Second Quarter

WASHINGTON – The U.S. Postal Service reported total revenue of $17.5 billion for the second quarter of fiscal 2019 (January 1, 2019 – March 31, 2019), a decrease of $8 million, or essentially flat, compared to the same quarter last year.

First-Class Mail revenue declined by $217 million, or 3.3 percent, on a volume decline of 576 million pieces, or 3.9 percent, compared to the same quarter last year. Marketing Mail revenue declined by $155 million, or 3.9 percent, on a volume decline of 959 million pieces, or 5.2 percent, compared to the same quarter last year. Meanwhile, Shipping and Packages revenue increased by $253 million, or 4.9 percent, on volume growth of 5 million pieces, or 0.3 percent, compared to the same quarter last year.

Total operating expenses were $19.6 billion for the quarter, an increase of $751 million, or 4.0 percent, compared to the same quarter last year. Excluding costs impacted by actuarial revaluation, discount rate changes, and amortization of unfunded liabilities, which are outside of management’s control, expenses increased by $154 million, or 0.8 percent, compared to the same quarter last year.

The net loss for the quarter totaled nearly $2.1 billion, an increase of $747 million, compared to a net loss of $1.3 billion for the same quarter last year, however, the controllable loss for the quarter was $806 million, compared to a controllable loss of $656 million for the same quarter last year.

Second Quarter Fiscal 2019 Operating Revenue and Volume by Service Category Compared to Prior Year

The following table presents revenue and volume by category for the three months ended March 31, 2019, and 2018:

Selected Second Quarter Fiscal 2019 Results of Operations and Controllable Loss

This news release references controllable loss, which is not calculated and presented in accordance with accounting principles generally accepted in the United States (GAAP). Controllable loss is defined as net loss adjusted for items outside of management’s control and non-recurring items. These adjustments include workers’ compensation expenses caused by actuarial revaluation and discount rate changes, and the amortization of Postal Service Retiree Health Benefits Fund (PSRHBF), Civil Service Retirement System (CSRS) and Federal Employee Retirement System (FERS) unfunded liabilities

The following table presents selected results of operations and reconciles GAAP net loss to controllable loss and illustrates the loss from ongoing business activities without the impact of non-controllable items for the three months ended March 31, 2019, and 2018: