USPS Reports $1.3 billion Profit for Fiscal Year 2016 First Quarter

U.S. Postal Service Reports Fiscal Year 2016 First Quarter Results

  • Operating revenue grew 3.3 percent to $19.3 billion
  • Controllable income totaled $1.3 billion; net income of $307 million reported
  • Postal Service benefited from exigent surcharge, which is expected to expire in April
  • Legislative reform and careful focus on cost containment remain necessary 

USPS Reports Profit for Fiscal Year 2016 First Quarter2/9/16 WASHINGTON — The U.S. Postal Service reported operating revenue of $19.3 billion for the first quarter of fiscal year 2016 (October 1, 2015 – December 31, 2015), an increase of $613 million or 3.3 percent over the same period last year. The increase was driven by the record volume of packages delivered during the 2015 holiday season. The first quarter is typically the strongest quarter of the fiscal year for the Postal Service.

“Shipping and Package revenue grew 13.5 percent over the same period last year, and was particularly strong during the holiday shipping season. We projected and delivered more than a 16 percent increase in package volume,” said Postmaster General and Chief Executive Officer Megan J. Brennan. “We continue to grow our e-commerce business and remain focused on delivering the best value for our customers.”

“Despite these achievements and the best efforts of our employees, our financial condition will worsen without legislative reform,” said Brennan. “Our financial situation is serious but solvable through the enactment of prudent legislative reform.”

Controllable income for the quarter was $1.3 billion compared to $1.1 billion 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 below for full description).

Net income for the quarter was $307 million, a change of $1.1 billion from the net loss of $754 million for the same period last year. The change in net income was most significantly impacted by a $1.2 billion favorable change in the workers’ compensation expense as a result of interest rate changes – a factor outside of management’s control.

“While net income is favorable compared to a net loss, it unfortunately does not reflect the end of our losses,” said Chief Financial Officer and Executive Vice President Joseph Corbett. “Excluding the favorable impact of interest rate changes and the exigent surcharge, the organization would have actually reported a net loss of approximately $700 million in the first quarter. Absent legislative reform, the exigent surcharge is expected to roll back in April, and our losses will increase by approximately $2 billion per year.”

Selected First Quarter 2016 Results of Operations Compared to Same Period Last Year
The following table presents certain selected results of operations for the three months ended December 31, 2015 and 2014:

(volume results in millions of pieces; financial results in $ millions)





Standard Mail







First-Class Mail














Shipping and Packages


















Total volume







Operating revenue and expenses $



Operating revenue (excluding temporary exigent surcharge) $








Temporary exigent surcharge







Total operating revenue $








Operating expenses $









Workers’ compensation expense
Impact of discount rate changes $


) $







Actuarial valuation of new cases and revaluation of existing cases







Administrative fee






Total workers’ compensation expense $


) $







Non-GAAP Financial Measures
Included 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) within the meaning of applicable SEC rules. Controllable income is a non-GAAP financial measure defined as net income subtracting operating expenses considered outside of management’s control. These expenses include the mandated prefunding of retirement health benefits, actuarial revaluation of retirement liabilities and non-cash workers’ compensation adjustments.

The following table reconciles GAAP net income (loss) to controllable income and illustrates the income from ongoing business activities without the impact of non-controllable items for the three months ended December 31, 2015 and 2014:

(in $ millions)



Net income (loss) $




Impact of:
PSRHBF prefunding expense



Change in workers’ compensation liability due to fluctuations in discount rates




Other change in workers’ compensation liability1




Actuarial revaluation of retirement liability


Controllable income $




1 This is a net amount that includes changes in assumptions as well as the valuation of new claims and revaluation of existing claims.

Complete financial results are available in the Form 10-Q, available at

Financial Briefing
Postmaster General and CEO Megan J. Brennan and Chief Financial Officer and Executive Vice President Joseph Corbett will host a telephone/Web conference call to discuss the financial results in more detail. The call will begin at 10:00 am on February 9, 2016 ET and is open to news media and all other interested parties.

How to Participate:

Important Notice: To ensure your computer is set up to join the event, click on the link
US/Canada Attendee Dial-in: (855) 293-5496
Conference ID: 42570997
Attendee Direct URL:

If you cannot join using the direct link above, please use the alternate logins below:

Alternate URL:
Event Number: 992 721 285

The briefing will also be available on live audio webcast (listen only) at:

13 thoughts on “USPS Reports $1.3 billion Profit for Fiscal Year 2016 First Quarter

  1. I wondered why we seem to have more Supervisors everyday.
    What would we make if they actual did something?

  2. While the USPS touts operating revenue of $19.3 billion for the first quarter of fiscal year 2016…..etc, an increase of $613 million or 3.3 percent over the same period last year, – -their service SUCKS. Customer Service has seriously deteriorated, long lines formed primarily due to slow workers. While at the post office, the counter person told me that she was told by her supervisor, that she works too fast and to slow down, she and I both shook our heads. I’ve never seen anyone in a service industry move slower than the post office. If you were in any other customer service oriented business you wouldn’t last. Shipping costs go up, wages go up, service deteriorates and plummets.

  3. Still waiting for the OIG to do a report on how much overtime
    is included in these figures. Seems to be swept under the rug.
    I know here in Boston all crafts have plenty each and every
    night. Automation was to reduce costs…..such a laugh, there’s
    O.T. in auto every night. Mail handlers still get 4 hours a night
    and we have supervisors staying additional hours on their own!
    Hell! if they just made a cognizant effort to shut lights off in
    offices at night across the country it would help. Where’s the
    Lean Sigma Six team concerning these topics?? Such a crock
    of crap! They shouldn’t cry about the numbers when they
    don’t have the brains to figure out a better way. In the mean
    time………………keep paying us!

    • The Lean Sigma Six team is there to certify the plant for “Lean Mail Processing” ,which is more important to management than getting the mail out.

  4. Thanks to the workers who succeed despite the tools
    and thugs who attempt to run the service into the
    ground. 1.3 Billion. Amazing isn’t it. Fire all the tools
    and thugs and we will see 2.2 billion.

  5. Letter and flat(periodical) mail has obviously dropped off again;as USPS has deliberately”snailed”the mail. Letters and Flats volume,had stabilized in 2013 and 2014. The slowing of our mail by USPS, has been widely reported. Obviously,promises of less reliable delivery,drives away customers.

  6. It is way past time to eliminate the prefunding of health care for Postal employees! If not, then the pudwackers in congress must explain why the Postal Service,and only the Postal Service must prepay health care costs. The right wing nuts cry about ” subsidizing” Postal Employee health care costs. Now we know that there is nothing wrong with tax payers subsidizing business costs every day. The earned income tax credit, food stamps, welfare, Medicaid, and what ever else the business money hoarders can suck from the tax payers! Why should a businessman pay a living wage to his workers when he can have the tax payer pay for what the businessman doesn’t want to pay. That way the businessmen can collect wealthfare!

  7. At what time will the prefunding mandate be changed to account for the decrease in employees the postal service has seen since the mandate was enacted?

    • The prefunding mandate was a crock by Congress to suck any profits to fund other agencies,haven’t figured that out yet? And it expires in 2017 anyway.

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