Net deficiency of USD 594.5 million posted after escrow allocation
USPS revenues for June were USD 27 million, or 0.4% under plan and 5.6% more than June 2005. Expenses for the month were USD 39 million, or 0.7% under plan and 4.4% more than June 2005. The result is a net loss of USD 11.9 million before the escrow allocation. The net deficiency after escrow allocation is USD 261.9 million.
Year-to-date (YTD) revenue through June is 3.9% higher than the same period last year (SPLY) and is USD 386 million above plan. YTD expenses are 4.2% higher than SPLY and USD 222 million over plan. YTD total mail volume is 0.9% above SPLY.
YTD, net income before escrow allocation is USD 1.66 billion. However, our net deficiency after the escrow allocation is USD 594.5 million.
Contributing to the YTD performance was the new postage rate structure implemented Jan. 8, which provided a 5.4% revenue increase needed to fulfill the requirement of Public Law 108-18, The Postal Civil Service Retirement System (CSRS) Funding Act, enacted in 2003. This law requires the Postal Service to hold USD 3 billion in an escrow account by Sept. 30, 2006, to cover the difference between the CSRS retirement costs before and after the implementation of this law. We are allocating USD 250 million per month for purposes of assessing our financial position.
Full results are posted on USPS.com at http://www.usps.com/financials/fos/welcome.htm.
