December 10, 2014

The official, audited financial results for FY 2014 were a huge improvement over recent years and represent the payoff from several factors:

• On-going efficiency improvements by postal management.
• Growing reliance on lower-wage employees.
• The exigent rate surcharge.
• The growing market for package delivery driven by e-commerce.
• The improving economy.

The liquidity crisis that drove postal legislative reform efforts in 2013 and 2014 seems to have abated for now. USPS cash jumped to $4.906 billion from $2.326 billion a year before. This 111% increase in liquidity pushed the number of days of operating cash to 19 from 9.
Although the Postal Service reported a $5.508 billion accounting loss for the year, its 10-K translated this into an actual $1.374 billion operating profit by subtracting a $5.7 billion post retirement health benefits charge that was not paid and an increase of $1.182 billion in the workers compensation liability driven by non-operating factors such as interest rates.

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