The ODP Corporation Announces First Quarter 2022 Results 

The ODP Corporation has announced results for the first quarter ended March 26, 2022. Highlights from the quarter are as follows:

  • Total reported sales of $2.2 billion, flat versus last year; higher sales in our BSD division, partially offset by lower sales in our Retail division driven by 114 fewer retail locations in service compared to the prior year as a result of planned store closures
  • GAAP operating income of $76 million and net income from continuing operations of $55 million, or $1.09 per diluted share, versus $69 million and $63 million, or $1.12 per diluted share, respectively in the prior year
  • Adjusted operating income of $88 million, compared to $93 million in the first quarter of 2021; adjusted EBITDA of $125 million, compared to $133 million in the first quarter of 2021
  • Adjusted net income from continuing operations of $64 million, or adjusted diluted earnings per share from continuing operations of $1.27, versus $68 million or $1.22, respectively in the prior year
  • Operating cash flow from continuing operations of $30 million and adjusted free cash flow of $16 million, versus $103 million and $96 million, respectively in the prior year
  • $1.4 billion of total available liquidity including $557 million in cash and cash equivalents

“Our team’s continued commitment to the core tenets that drive our business helped us deliver strong results while making progress on all of our initiatives to unlock shareholder value,” said Gerry Smith, chief executive officer of The ODP Corporation. “We again delivered solid operating performance against a macroeconomic backdrop that continues to be challenged by supply chain constraints, higher fuel prices, and inflation, as we utilized the strength of our distribution network and pricing flexibility to help offset some of these market dynamics. We’re encouraged by the improving back-to-the-office trends that are helping us drive stronger operating performance in our contract channel, while our consumer business continues to execute well against its strategy, leveraging its highly focused store and digital presence to deliver solid results in the quarter. 

“As we move closer to concluding the strategic initiatives we previously outlined, we remain committed to maximizing the value of our consumer business and driving growth on our B2B platform. We also continue to expect our results this year to be generally in a range consistent with the prior year on a comparable basis,” Smith concluded.

Retail Division Results

  • Reported sales were $943 million in the first quarter of 2022, down 9% compared to the prior year period primarily due to 114 fewer retail outlets at the end of the first quarter compared to the prior year, associated with planned store closures. The Company closed 6 retail stores in the quarter and had 1,032 stores at quarter end
  • Lower traffic trends in the quarter were offset by stronger sales-per-shopper, as well as strong omni-channel sales in the quarter supported by our 20-minute pick-up guarantee
  • Increase in demand for copy and print services were offset by lower sales of cleaning and PPE products as well as technology and PC products which were negatively impacted by supply chain and sourcing challenges
  • Operating income was $89 million in the first quarter of 2022, down 11% over the same period last year; as a percentage of sales, operating income was 9% of sales, slightly lower year over year

Outlook

The ODP Corporation continues to anticipate generating annual revenue, operating and cash flow results in a range consistent with the prior year on a comparable basis, and expects to refine and update its outlook for 2022 as conditions related to the pandemic and supply chain challenges dissipate, and further progress is made on its previously disclosed strategic initiatives.

To view the full release, visit the ODP Corporation website.

Source: ODP Corporation


The ODP Corporation Announces Appointment of David Centrella as Executive Vice President and as President of ODP Business Solutions 

The ODP Corporation announced that David Centrella has been promoted to executive vice president, reporting directly to CEO of The ODP Corporation, Gerry Smith. In his new position, Centrella will also serve as president of ODP Business Solutions, including the contract sales channel of ODP’s prior Office Depot Business Solutions Division, replacing Stephen M. Mohan, who will depart the Company. As president of ODP Business Solutions, Centrella will be responsible for core B2B sales and operations across all customer segments and vertical markets, including through Grand & Toy, and ODP’s Federation Entities.

“David brings strong operations, sales and finance leadership experience to his new role that will enhance our relentless focus on customer service and help drive profitable growth,” said Smith. “His deep institutional knowledge and industry experience, combined with his innovative and continuous-learning approach to business operations, make David the perfect candidate for this role.”

Centrella joined the Company in 1998 and has over 30 years of experience in finance, merchandising, sales and sales operations. In his past roles, Centrella served as sr. vice president of merchandising operations, where he led and managed vendor relations, pricing and promotional strategies, sr. vice president of print and services, where he led the company’s $1B multi-channel print and services business, and sr. vice president of BSD field sales, where he took on the additional responsibility of leading BSD’s sales operations team. Most recently David served as sr. vice president of FP&A where he also led several key companywide initiatives, including the separation management office associated with the company’s strategic review of its consumer business.

“I am excited to take this new role at ODP and by the opportunity to help drive the growth of our B2B business,” said Centrella. “ODP Business Solutions is strategically positioned to continuously improve our value proposition for our current and future customers.”

Source: ODP Corporation


Office Depot Celebrates Organizations for Their Leadership in Greener Purchasing 

Office Depot, a wholly owned subsidiary of The ODP Corporation announced that it recognized a number of forward-thinking organizations from across the country for their leadership in greener purchasing, including:

  • The Cincinnati Insurance Company
  • City of Chicago
  • Crowley
  • Marriott Vacations Worldwide
  • Morgan, Lewis & Bockius LLP
  • Okaloosa County School District
  • State of Mississippi
  • TravelCenters of America
  • Woodforest National Bank

“Office Depot’s sustainability initiatives started with an internal commitment to reduce our environmental impact, but we soon recognized that our customers care as much as we do about being an environmentally sustainable organization and face similar challenges in understanding how to measure and manage their impact for the better,” said Stephen Mohan, executive vice president of the Business Solutions Division (BSD) for Office Depot. “By celebrating our customers who are championing greener purchasing, we’re not only applauding them for supporting the health of our planet, but also encouraging them to continue to make greener purchases in the future and influencing other organizations to follow their lead.”

Award winners were selected from Office Depot’s largest customers based on their expenditure on products with eco-attributes such as recycled content, energy-efficiency, reduced harsh chemicals, etc., and/or ecolabels such as FSC®, EPEAT, GREENGUARD Certification, GreenSeal® and EcoLogo. Customer purchases with the highest level of meaningful eco-attributes and ecolabels were given extra weight in the selection process.

Office Depot offers a variety of tools to help customers reach their environmental sustainability goals, including The Green Book® Digital Catalog to simplify the green shopping experience for BSD (Business Solutions Division) customers, a GreenerOffice™ web store containing thousands of products with environmental attributes, and regular promotions on greener products. Office Depot also has one of the industry’s leading sets of Greener Solutions and reporting tools, many of which were developed in collaboration with specific customers.

Source: ODP Corporation