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Mar 26, 2022
ODP Q1 2022 Earnings Report
Announced first quarter 2022 results with flat sales and increased GAAP operating income.
Key Takeaways
The ODP Corporation reported first quarter 2022 results with sales of $2.2 billion, flat compared to the prior year. GAAP EPS was $1.09 and adjusted EPS was $1.27. The company's commitment to a low-cost model helped drive GAAP operating income of $76 million and adjusted operating income of $88 million.
Total reported sales of $2.2 billion, flat versus last year; higher sales in our BSD division, partially offset by lower sales in our Retail division driven by 114 fewer retail locations in service compared to the prior year as a result of planned store closures
GAAP operating income of $76 million and net income from continuing operations of $55 million, or $1.09 per diluted share, versus $69 million and $63 million, or $1.12 per diluted share, respectively in the prior year
Adjusted operating income of $88 million, compared to $93 million in the first quarter of 2021; adjusted EBITDA of $125 million, compared to $133 million in the first quarter of 2021
Operating cash flow from continuing operations of $30 million and adjusted free cash flow of $16 million, versus $103 million and $96 million, respectively in the prior year
Forward Guidance
The Company continues to anticipate generating annual revenue, operating and cash flow results in a range consistent with the prior year on a comparable basis, and expects to refine and update its outlook for 2022 as conditions related to the pandemic and supply chain challenges dissipate, and further progress is made on its previously disclosed strategic initiatives.
Positive Outlook
- The Company continues to make strong progress on its digital platform business, Varis.
- Varis has established a world-class team of industry professionals and continues to accelerate its technology development.
- Initiated a private preview launch on the Microsoft Dynamics 365 Business Central platform and incorporating positive feedback from Varis’ build partners and customers.
- Attracting new customers to its platform, both buyers and suppliers, innovating on their behalf.
- Continue to make progress on the launch of its technology platform with expanded capabilities that position the Company for future growth
Challenges Ahead
- Expect that the conditions related to both the supply chain and inflationary environment will persist in the quarters ahead
Historical Earnings Impact
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Avg. Return Before/After Earnings
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