BOCA RATON, Fla. — The ODP Corporation, a leading provider of business services, products and digital workplace technology solutions to businesses and consumers, announced results for the fourth quarter and full year ended Dec. 31, 2022.
Fourth Quarter 2022 Summary
- Total reported sales of $2.1 billion, up 3% versus the prior year, primarily as a result of higher sales in our B2B distribution division, ODP Business Solutions, offsetting lower sales in our consumer division, Office Depot. Office Depot sales were lower partially driven by 58 fewer retail locations in service compared to the prior year as a result of planned store closures and lower traffic. Consolidated sales results include the favorable impact related to the 53rd week in fourth quarter of 2022 of $128 million
- GAAP operating income of $55 million and net income from continuing operations of $36 million, or $0.76 per diluted share, versus $31 million and $32 million, or $0.61 per diluted share, respectively in the prior year. Operating income results include the favorable impact related to the 53rd week in fourth quarter of 2022 of $20 million
- Adjusted operating income of $58 million, compared to $47 million in the fourth quarter of 2021; adjusted EBITDA of $89 million, compared to $87 million in the fourth quarter of 2021
- Adjusted net income from continuing operations of $40 million, or adjusted diluted earnings per share from continuing operations of $0.85, versus $37 million or $0.71, respectively in the prior year
- Operating cash flow from continuing operations of $158 million and adjusted free cash flow of $147 million, versus $88 million and $80 million, respectively in the prior year
- $1.3 billion of total available liquidity including $403 million in cash and cash equivalents at quarter end
Full Year 2022 Summary
- Total reported sales of $8.5 billion, flat versus the prior year. Consolidated sales results include the favorable impact related to the 53rd week in 2022 of $128 million
- GAAP operating income of $243 million and net income from continuing operations of $178 million, or $3.61 per diluted share, versus $234 million and net income from continuing operations of $187 million, or $3.42 per diluted share, respectively in the prior year. Operating income results include the favorable impact related to the 53rd week in 2022 of $20 million
- Adjusted operating income of $296 million, compared to $305 million in 2021; adjusted EBITDA of $437 million, compared to $465 million in 2021
- Adjusted net income from continuing operations of $216 million, or adjusted diluted earnings per share from continuing operations of $4.40, versus $234 million or $4.28, respectively in the prior year
- Operating cash flow from continuing operations of $237 million and adjusted free cash flow of $201 million, versus $344 million and $328 million, respectively in the prior year
“Our performance in the quarter reflected our continued disciplined financial and operational focus during a challenging macroeconomic environment, which is a testament to the commitment of our team across each of our businesses. I couldn't be more proud of our team members, who go out every day and show what makes The ODP Corporation so remarkable," said Gerry Smith, chief executive officer for The ODP Corporation. “We navigated a very complicated year, delivering solid performance with full year results consistent with our guidance, despite the ongoing macroeconomic environment burdened by high inflation and slower GDP growth. We’ve remained true to our low-cost business model and we’re executing along the path we set during our investor day meeting. We’ve also remained committed to enhancing shareholder value, announcing our $1 billion share repurchase program through 2025 and repurchasing over $266 million of our stock in 2022. Included in the yearly total, we repurchased $197 million during the fourth quarter, most of which was bought back post our investor day meeting and under our new share repurchase program.
“We remain excited about our re-aligned four business unit structure, unlocking the potential of our business and providing greater transparency and more opportunities for long-term growth. We’re encouraged about the progress we are making at Veyer, our supply chain and logistics division, as it begins to build its pipeline of new business, and at Varis, as it continues to refine its capabilities and adds new customers and suppliers to its recently launched B2B digital platform."
