The ODP Corporation Announces Retirement of Board Member Francesca Ruiz de Luzuriaga

The ODP Corporation has announced that Francesca Ruiz de Luzuriaga has decided to retire from the Board of Directors effective December 31, 2021. Ms. Luzuriaga has served as a director for The ODP Corporation and at its predecessors Office Depot, Inc. and OfficeMax Incorporated since 1998. During her tenure as a director of The ODP Corporation, Ms. Luzuriaga served on several board committees, including current chair of the Compensation and Talent Committee and immediate past chair of the Audit Committee.

“Cesca has made significant and meaningful contributions as a valuable member of the Board for over two decades,” said Joseph S. Vassalluzzo, The ODP Corporation’s non-executive chair of the board. “Her financial acumen and deep understanding of our business have helped guide our ongoing transformation as a business solutions provider and platform.”

Source: ODP 

The ODP Corporation Announces Third Quarter 2021 Results

The ODP Corporation has announced results for the third quarter ended September 25, 2021. A summary of the results are as follows

  • Total reported sales of $2.2 billion, down 7% versus last year, largely driven by 160 fewer retail locations in service compared to last year and lower demand year-over-year in certain product categories related to the COVID-19 pandemic
  • GAAP operating income of $104 million and net income from continuing operations of $73 million, or $1.33 per diluted share, versus $102 million and $34 million, or $0.63 per diluted share, respectively in the prior year
  • Adjusted operating income of $122 million, compared to $136 million in the third quarter of 2020 and adjusted EBITDA of $162 million, compared to $175 million in the third quarter of 2020
  • Adjusted net income from continuing operations of $96 million, or adjusted diluted earnings per share from continuing operations of $1.76, versus adjusted net income from continuing operations of $102 million or $1.88, respectively in the prior year
  • Operating cash flow from continuing operations of $121 million and adjusted free cash flow of $123 million, versus $256 million and $259 million, respectively in the prior year
  • $1.7 billion of total available liquidity including $753 million in cash and cash equivalents

“We’re making meaningful progress on all of our initiatives to unlock shareholder value while remaining true to our low-cost model approach and providing value for our customers,” said Gerry Smith, chief executive of The ODP Corporation. “I’m proud of our team for delivering solid operating results against a more demanding industry backdrop due to supply chain challenges and a slower pace of back-to-office trends in the quarter. The investments we’ve made in our private fleet, distribution assets, and diverse third party carrier relationships are helping us mitigate some of the impacts related to the recent industry-wide supply chain disruptions. Additionally, our supplier diversification, combined with our product assortment and flexible pricing strategies, adds to our strength as we continue to navigate these challenges.”

“The pace of back-to-office trends was slower during the quarter due to the well-publicized spread of the Delta variant. However, we’re encouraged by the increase in demand for our core products from companies who have returned to the office, highlighting additional growth opportunities in the quarters ahead. We were also pleased to see more students and teachers returning to the classroom during the back-to-school season, driving year-over-year demand in core school supplies and helping us partially offset lower sales in certain product categories previously in stronger demand last year during the earlier stages of the pandemic.” he added.

Spin-Off Progress and Plan for Separation

The ODP Corporation continues to make progress on its plans to separate ODP into two, independent, publicly-traded companies, making advancements in all areas of the separation including organizational structure, operating and supply chain mechanics, IT support, and on the anticipated market-based commercial agreements between the companies. The expected timing remains the same as previously announced, with estimated completion in the first half of 2022.

Digital Transformation Initiatives

Aligned with its strategy to drive growth in high value industry segments, the Company continued to make progress on its digital transformation initiatives during the quarter. Varis, a newly formed technology company focused on filling the growing demand for a modern, trusted, digital B2B platform that transforms how businesses buy and sell, continued to advance its development. These accomplishments included integrating and bringing the capabilities of its leading P2P software platform, BuyerQuest, to new customers, as well as continuing to make progress on its technology development. The Company is also advancing its collaboration with Microsoft and remains focused on bringing BuyerQuest’s value proposition to Microsoft’s Business Central customers in the future.

To view the full press release, please click here. 

Source: ODP