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Jun 27, 2020
ODP Q2 2020 Earnings Report
Announced second quarter 2020 results, completed holding company reorganization, and initiated strategic restructuring plan with B2B focus.
Key Takeaways
The ODP Corporation reported a decrease in sales by 17% compared to the second quarter of 2019, with a total reported sales of $2.2 billion. The company experienced a GAAP operating loss of $456 million and a net loss of $439 million, or $(8.19) per share. Adjusted net loss was $4 million, or adjusted loss per share of $(0.07).
Total Reported Sales of $2.2 Billion, down 17% versus last year, reflecting ongoing impact of the COVID-19 outbreak on the business environment.
GAAP operating loss includes charges of $466 million, including $401 million of non-cash asset impairment charges related to goodwill and intangibles, which led to a GAAP operating loss of $456 million and a net loss of $439 million, or $(8.19) per share.
Adjusted operating income of $10 million and adjusted EBITDA of $59 million.
Prudent cash management resulted in operating cash flow of $(8) million and adjusted free cash flow of $(7) million, versus $(58) and $(48) million, respectively in prior year.
Forward Guidance
Due to the continued uncertainty of the severity and duration of the impacts related to the COVID-19 outbreak, the Company’s 2020 guidance remains withdrawn.
Positive Outlook
- utilizing our global sourcing and supply chain capabilities to secure additional sources of essential products and supplies
- continuing to facilitate work from home and virtual learning environments
- continuing efforts to drive a low cost business model
- strong balance sheet
- available liquidity position
Challenges Ahead
- uncertainty related to the full impact of the COVID-19 pandemic
- business disruption
- uncertainty related to the severity of the health crisis
- uncertainty related to the duration of the health crisis
Historical Earnings Impact
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Avg. Return Before/After Earnings
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