Revenue increased from prior year driven by growth in domestic parcel and shipping solutions volumes partially offset by lower cross border volumes. EBIT and EBITDA margins declined from prior year driven by a shift in the mix of business to faster growing, lower margin services. Margins were also impacted by investments in market growth opportunities, which includes marketing programs and new facilities, operational excellence initiatives and higher labor costs. Additionally, margin was impacted by a temporary delay in the approval of one of the Company’s Negotiated Service Agreements with the USPS, which has subsequently been approved.

Presort Services

Revenue growth was driven by higher volumes of Standard Class, First Class and Flats processed offset by lower revenue per piece. EBIT and EBITDA margins declined from prior year primarily due to higher labor and transportation costs. A changing client mix towards larger clients drove the lower revenue per piece, which also contributed to the margin decline.