Office Depot: The ODP Corporation Sees Q4 Revenue Decline, Launches Project Core to Boost Growth.

[jim]

The ODP Corporation Sees Q4 Revenue Decline, Launches Project Core to Boost Growth.
BOCA RATON, Fla.–The ODP Corporation, a leading provider of business services, products, and digital workplace technology solutions, today reported its financial results for the fourth quarter and full year ended December 31, 2023.

Highlights:
– Q4 revenue of $2.6 billion, down 5% year-over-year, reflecting the impact of the COVID-19 pandemic and the ongoing shift to digital solutions – Q4 adjusted net income of $46 million, or $0.87 per share, up 142% year-over-year, driven by improved gross margin and lower operating expenses – Q4 adjusted EBITDA of $151 million, up 28% year-over-year, reflecting strong cost management and operational efficiency – Full year revenue of $9.7 billion, down 9% year-over-year, reflecting the impact of the COVID-19 pandemic and the ongoing shift to digital solutions – Full year adjusted net income of $134 million, or $2.53 per share, up 76% year-over-year, driven by improved gross margin and lower operating expenses – Full year adjusted EBITDA of $492 million, up 17% year-over-year, reflecting strong cost management and operational efficiency – Generated $323 million of free cash flow in 2023, compared to $292 million in 2022 – Ended the year with $621 million of cash and cash equivalents and $738 million of available liquidity – Completed the sale of CompuCom, a leading provider of managed workplace services, to Platinum Equity for $233 million in cash – Announced a definitive agreement to sell the ODP Contract Operations, which includes the Business Solutions Division (BSD) and the Canadian business, to One Office Holding Inc., a subsidiary of Sycamore Partners, for $925 million in cash – Announced a strategic partnership with Microsoft to offer cloud-based solutions and services to small and medium-sized businesses – Announced a new corporate social responsibility (CSR) strategy, with ambitious goals to advance diversity, equity and inclusion, environmental sustainability, and community engagement – Launched Project Core, a stepping-up technology for students with significant cognitive disabilities and complex communication needs, in collaboration with the Center for Literacy and Disability Studies at the University of North Carolina at Chapel Hill.

“We are proud of our performance in the fourth quarter and the full year of 2023, as we delivered solid profitability and cash flow in a challenging market environment,” said Gerry Smith, chief executive officer of The ODP Corporation. “We also made significant progress in our B2B transformation strategy, while also taking strategic actions to optimize our portfolio and create value for our shareholders. We are confident in our ability to capitalize on the opportunities ahead, as we leverage our digital platforms, our distribution network, and our strategic partnerships to serve the evolving needs of our customers and stakeholders.”

[Author]

March 2, 2024 at 3:28 PM