Prentis Wilson, B2B Technology Veteran, Joins The ODP Corporation

On February 16, the ODP Corporation announced that it hired Prentis Wilson to further drive the company’s digital transformation, leading a new technology business focused on transforming B2B sourcing, purchasing, and supply chain for suppliers and buyers.

Wilson is responsible for helping establish and scale the newly launched technology platform. B2B purchasing is rapidly moving online and procurement organizations of all sizes are embracing digital sourcing and purchasing. Suppliers need B2B-grade eCommerce technology and nimble supply chains to remain competitive. As a world-class B2B technology and supply chain platform, ODP is positioned to help drive efficiency for buyers and growth for suppliers. The addition of Wilson and the new ODP business positions the company to more fully participate in the $8 trillion B2B commerce market in the U.S.

Wilson has a strong track record of successfully building large-scale, disruptive, B2B technology businesses. He spent almost eight years at Amazon.com, Inc., where he launched Amazon Business and grew it to over $10 billion in annual sales. Prior to joining Amazon, he held senior operations and B2B procurement roles at Cisco Systems, Inc. and Honeywell International, Inc. Most recently, he was the President of Boxed.com, a wholesale technology start-up.

Source: ODP


The ODP Corporation Accelerates Digital Transformation with the Acquisition of BuyerQuest Holdings, Inc., a Recognized Leader in Procure-to-Pay Software

On February 18. the ODP Corporation announced that it has acquired BuyerQuest Holdings, Inc., a leader in cloud-based enterprise Procure-to-Pay (P2P) software. The acquisition accelerates ODP’s technology development and enables it to deliver an integrated, eCommerce, P2P, and supply chain platform designed to transform how businesses buy and sell.

Since the company’s inception nine years ago, BuyerQuest has delivered a world-class eCommerce experience to procurement organizations all around the world. The software streamlines and enhances corporate buying processes, allowing customers to increase user adoption, drive contract compliance, and save money. BuyerQuest customers, including some of the most recognized names in the consumer packaged goods, hospitality, public sector, manufacturing, and restaurant industries, among others, benefit from a modern buying experience that provides the spend transparency, deep insights, and advanced intelligence capabilities needed to save money and focus more on strategic priorities.

“BuyerQuest’s strong customer focus, coupled with a world-class product, has allowed it to disrupt a crowded P2P market. As a result, BuyerQuest manages billions of dollars in monthly spend for some of the world’s most reputable organizations,” said  ODP’s Prentis Wilson. “The combination of BuyerQuest’s P2P platform and ODP’s digital commerce technology and supply chain capabilities drive efficiency and growth for customers – buyers and suppliers alike.”

Source: ODP


The ODP Corporation Teams Up with Microsoft to Transform How Businesses Buy and Sell

On February 22, the ODP Corporation announced that ODP is expanding its longstanding relationship with Microsoft to drive growth and efficiencies across both shared and new B2B customers. As part of the collaboration, ODP will leverage Microsoft Azure to migrate existing workloads and legacy systems to Azure. ODP is working to bring the power of ODP’s new digital procurement technology platform to Microsoft Dynamics 365 Business Central customers to help them realize immediate purchase savings and procurement automation.

“We believe in the potential that ODP’s digital procurement platform can bring to organizations of all sizes,” said Judson Althoff, executive vice president, Microsoft’s Worldwide Commercial Business. “We’re pleased to be on this journey with ODP and are looking forward to empowering customers together in the years ahead.”

ODP recently announced that technology veteran Prentis Wilson joined the organization to help drive the company’s transformation. “B2B purchasing is rapidly moving online and procurement organizations of all sizes are embracing digital sourcing and purchasing. Suppliers need B2B-grade eCommerce technology and nimble supply chains to remain competitive,” said Wilson. “Partnering with Microsoft Azure and Microsoft Dynamics 365 Business Central, ODP and its customers – buyers and suppliers alike – can quickly grow and scale efficiently.”

Source: ODP


The ODP Corporation Announces Fourth Quarter and Full Year 2020 Results

On February 24, the ODP Corporation announced fourth quarter and full year 2020 results. The highlights include

Fourth Quarter 2020 Summary

  • Total reported sales of $2.3 billion, down 9% versus last year
  • GAAP operating income of $21 million and net income of $18 million, or $0.34 per share, versus $74 million and $55 million, respectively in prior year
  • Adjusted operating income of $44 million, down from $92 million in fourth quarter of 2019; and adjusted EBITDA of $89 million, down from $156 million in the fourth quarter of 2019
  • Adjusted net income of $30 million, or adjusted earnings per share of $0.55, each down 56% year-over-year
  • Operating cash outflow of $4 million and adjusted free cash outflow of $4 million, versus $152 million and $135 million, respectively in prior year
  • $1.7 billion of total available liquidity including $729 million in cash and cash equivalents

Full Year 2020 Summary

  • Total reported sales of $9.7 billion, down 9% versus last year
  • GAAP operating loss of $252 million and net loss of $319 million, or $(6.05) per share, driven primarily by non-cash asset impairment charges recognized in the second quarter of 2020
  • Adjusted operating income of $300 million, compared to $367 million in 2019; and adjusted EBITDA of $491 million
  • Adjusted net income of $189 million, or adjusted earnings per share of $3.50, down 17% and 15%, respectively year-over-year
  • Operating cash flow of $485 million and adjusted free cash flow of $474 million, versus $366 and $310 million, respectively in prior year

“The positive dynamics of our ecosystem and low cost model focus helped offset many of the challenges posed by the COVID-19 pandemic. We pivoted our value proposition, reaching customers through leveraging our diverse channels to market and broad product categories. We drove strong performance in cleaning, office technology and workspaces, and personal protective equipment (PPE) categories, partially offsetting challenges in core supply categories which were negatively impacted by business shutdowns and school closures related to the pandemic. Our omni-channel performance was outstanding, experiencing stronger demand during this unusual period, especially for our curb-side pick-up and buy on-line, pick-up in store (BOPIS) offerings. Our digital presence continued to expand, highlighted by a 15% increase in demand through our BSD eCommerce channel. In all, we delivered solid performance throughout the year,” said Gerry Smith, chief executive officer of The ODP Corporation.

“While we expect that conditions caused by the COVID-19 pandemic will persist for at least the first half of 2021, the actions and investments we have made during 2020 allow us to continue to work to meet our customers’ expanded needs through all channels. We are also maintaining our focus on driving our low-cost model, while working to evolve our B2B platform to expand into higher growth and higher value market categories. We’ve made significant progress on our B2B pivot and digital transformation, recently enhancing our senior team and accelerating our technology development by adding an industry-leading eProcurement software platform. This component of our digital transformation combined with our valuable physical asset base, has been recognized by one of the leading technology companies in the world, Microsoft, whom we are collaborating with to transform how businesses buy and sell in the over $8 trillion B2B commerce market,” he added.

2021 Commentary

Due to the continuing challenges posed by current market conditions and recent events, including the public proposal made by Sycamore Partners, the owner of Staples, to acquire The ODP Corporation, and the strategic review process exploring a value-maximizing sale of the CompuCom Division, the Company is not issuing guidance for 2021 at this time. The Company expects to make growth investments in the Company’s digital transformation initiatives in the range of $20-$25 million in capital expenditures and $30-$35 million in operating expenses in 2021.

Click here to see the full results. 

Note: As presented throughout this release, adjusted results represent non-GAAP financial measures and exclude charges or credits not indicative of core operations and the tax effect of these items, which may include but not be limited to merger integration, restructuring, acquisition costs, asset impairments, loss on extinguishment and modification of debt, and executive transition costs. Reconciliations from GAAP to non-GAAP financial measures can be found in this release as well as on the Investor Relations website at investor.theodpcorp.com.

Source: ODP