The ODP Corporation Announces Fourth Quarter and Full Year 2021 Results

The ODP Corporation has announced results for the fourth quarter and full year ended December 25, 2021. The highlights are as follows:

Fourth Quarter 2021

  • Total reported sales of $2.0 billion, down 2% versus prior year, largely driven by 116 fewer retail locations in service compared to the prior year as a result of planned store closures
  • GAAP operating income of $31 million and net income from continuing operations of $32 million, or $0.61 per diluted share, versus $20 million and $31 million, or $0.57 per diluted share, respectively in the prior year
  • Adjusted operating income of $47 million, compared to $40 million in the fourth quarter of 2020; adjusted EBITDA of $87 million, compared to $78 million in the fourth quarter of 2020
  • Adjusted net income from continuing operations of $37 million, or adjusted diluted earnings per share from continuing operations of $0.71, versus $23 million or $0.43, respectively in the prior year
  • Operating cash flow from continuing operations of $88 million and adjusted free cash flow of $80 million, versus $15 million and $20 million, respectively in the prior year
  • $1.4 billion of total available liquidity including $514 million in cash and cash equivalents

Full Year 2021 

  • Total reported sales of $8.5 billion, down 5% versus the prior year
  • GAAP operating income of $234 million and net income from continuing operations of $187 million, or $3.42 per diluted share, versus $6 million and net loss from continuing operations of $63 million, or $(1.20) per diluted share, respectively in the prior year
  • Adjusted operating income of $305 million, compared to $290 million in 2020; adjusted EBITDA of $465 million, compared to $449 million in 2020
  • Adjusted net income from continuing operations of $234 million, or adjusted diluted earnings per share from continuing operations of $4.28, versus $184 million or $3.40, respectively in the prior year
  • Operating cash flow from continuing operations of $344 million and adjusted free cash flow of $328 million, versus $425 million and $422 million, respectively in the prior year

“We’ve executed well upon all of our strategic initiatives that focus on generating greater shareholder value. Over the past year, we have used the flexibility afforded by our holding company structure to align our assets with the go-to-market strategies in our B2C, B2B, distribution, and digital platform businesses. We separated many of the operational components of our business and enhanced our focus on our core capabilities, including through the sale of CompuCom. Additionally, we advanced our new digital platform business, Varis, and remain very encouraged about our early progress. Also, as part of our overall capital structure and in support of our efforts to enhance return for shareholders, we’ve repaid approximately $100 million of near term maturity Industrial Revenue Bonds and committed over $300 million in the form of share buybacks,” said Gerry Smith, chief executive officer of The ODP Corporation. 

“Moving forward, we’re committed to unlocking the value of our consumer business and driving growth in our B2B distribution and digital platform businesses. We remain focused on regaining momentum in our enterprise channel as more companies return to the office and as we work to mitigate the ongoing supply chain and inflation challenges. We expect 2022 to be a transformative year in the development of Varis, as we continue to invest in its capabilities, grow customer and supplier relationships, and launch the beta version of the platform with key partners, positioning us to drive future value in the large and growing business commerce market,” Smith concluded.

To view the full release, visit The ODP website. 

Source: ODP 

The ODP Corporation Announces Appointment of Sarah E. Hlavinka as General Counsel of Office Depot, LLC

The ODP Corporation has announced that Sarah E. Hlavinka will join the company as general counsel of Office Depot, LLC on April 4, 2022, reporting directly to CEO of The ODP Corporation, Gerry Smith. She will become executive vice president, chief legal officer and corporate secretary of The ODP Corporation upon the departure of David Bleisch, executive vice president, chief legal & administrative officer and corporate secretary, from the company. Hlavinka will lead the strategic direction of the legal organization and operations, as well as manage the regulatory and compliance matters for the company.

“We are excited to welcome Sarah to The ODP Corporation as we continue our transformation into a leading B2B distribution platform,” said Gerry Smith, chief executive officer for The ODP Corporation. “She’s a results-driven professional with a proven track record of advising senior executives and managing a wide array of complex issues, including corporate governance, strategy, risk integration and management, mergers and acquisitions, litigation, and compliance in several industries.”

Hlavinka has over 30 years of experience as an advisor and business executive with broad-based experience and legal background in the technology, service, manufacturing and healthcare industries. Most recently, Hlavinka served as senior vice president, general counsel and corporate secretary for Itron, Inc. Prior to Itron, Inc., she served in a similar role at Xerox. Previously, she has served in various legal roles in companies across a broad range of disciplines.

Source: ODP