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Mar 28, 2020
ODP Q1 2020 Earnings Report
Delivered strong operating results and cash flow during the first quarter and the onset of the global pandemic.
Key Takeaways
Office Depot announced strong Q1 2020 results, with operating income up 233% YOY and net income up 463% YOY. The company's B2B focus and ability to serve customers during the COVID-19 crisis helped drive strong operating results and generate $188 million in operating cash flow. Due to the uncertainty of the severity and duration of the impacts of the COVID-19 outbreak, the Company is withdrawing its previously issued guidance for 2020.
Total Reported Sales of $2.7 Billion, down 2% from Prior Year Period
Operating Income of $80 Million, up 233% YOY; Net Income of $45 Million, up 463% YOY
Adjusted Operating Income of $108 Million, up 61% YOY; Adjusted EBITDA of $157 Million, up 33% YOY
EPS of $0.08, up $0.07 from Prior Year Period; Adjusted EPS of $0.12, up $0.05 from Prior Year Period
Forward Guidance
Withdrawing 2020 guidance due to COVID-19 pandemic.
Positive Outlook
- Implementing several strategies to address and hopefully mitigate these challenges including utilizing our global sourcing capabilities to secure additional sources of essential products and supplies, including PPE
- Providing technology support
- Facilitating work from home and virtual learning environments
- Continuing efforts to drive a low cost business model
- Strong balance sheet and available liquidity position
Challenges Ahead
- Recent supply constraints for essential products
- Operational disruptions occurring in businesses throughout North America
- Expect to experience lower revenue in the near term
- Uncertainty related to the full impact of the COVID-19 pandemic
Historical Earnings Impact
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Avg. Return Before/After Earnings
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