The ODP Corporation has announced results for the third quarter ended September 24, 2022. The highlights from the results are as follows:

  • Total reported sales of $2.2 billion, flat versus the prior year, as sales grew in our B2B distribution division, ODP Business Solutions, offset by lower sales in our consumer division. Office Depot sales were lower partially driven by 75 fewer retail locations in service compared to the prior year as a result of planned store closures and lower traffic
  • GAAP operating income of $84 million and net income from continuing operations of $67 million, or $1.36 per diluted share, versus $104 million and $73 million, or $1.33 per diluted share, respectively in the prior year
  • Adjusted operating income of $95 million, compared to $122 million in the third quarter of 2021; adjusted EBITDA of $131 million, compared to $162 million in the third quarter of 2021
  • Adjusted net income from continuing operations of $73 million, or adjusted diluted earnings per share from continuing operations of $1.48, versus $96 million or $1.76, respectively in the prior year
  • Operating cash flow from continuing operations of $163 million and adjusted free cash flow of $160 million, versus $121 million and $123 million, respectively in the prior year
  • $1.4 billion of total available liquidity including $473 million in cash and cash equivalents at quarter end

ODC table

“Our team continued to deliver against a challenging macroeconomic environment, driving solid performance, as the strength of our distribution platform and flexible pricing strategies helped offset some of the market wide challenges related to supply chain constraints, inflation, as well as a more competitive back-to-school environment,” said Gerry Smith, chief executive officer for The ODP Corporation. “Our B2B distribution business, ODP Business Solutions, drove strong performance as back-to-office trends continued to gain traction, helping to drive strong revenue results and margins that are on a path to exceed pre-pandemic levels in the future. In our consumer channel, Office Depot, we maintained high customer satisfaction levels and drove solid operating margin performance, despite lower traffic and a competitive back-to-school selling season. Overall, our team continued to focus on execution and remained committed to our low-cost model approach, enabling us to deliver $95 million in adjusted operating income and strong cash flow in the quarter.”

“We’re excited with the launch of Veyer, our supply chain and logistics division, and the reporting of Varis, our B2B digital platform business that creates a leading edge marketplace experience for buyers and suppliers. These two divisions provide attractive long-term growth opportunities for shareholders.”

“We remain focused on driving shareholder value and we announced that our Board of Directors has approved a plan to return approximately $1 billion to shareholders through 2025. We’re looking forward to sharing more about our disciplined capital allocation strategy during our upcoming investor day meeting to be held later today. Overall, with our realigned four business unit structure and disciplined capital allocation strategy, we are in a strong position to unleash the full potential of ODP,” he added.

To view the full results, visit The ODP Corporation’s website.

Source: ODP