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Dec 31, 2022
ODP Q4 2022 Earnings Report
Announced fourth quarter and full year 2022 results, delivering full-year results consistent with previously issued guidance range.
Key Takeaways
The ODP Corporation reported Q4 2022 revenue of $2.1 billion, a 3% increase year-over-year. GAAP EPS was $0.76, and adjusted EPS was $0.85. The company repurchased $197 million of shares in the fourth quarter and provided 2023 guidance.
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.
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.
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
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
Revenue by Segment
Forward Guidance
The company provided full year guidance for 2023. Sales: $8.0 - $8.4 billion, Adjusted EBITDA: $400 - $430 million, Adjusted Operating Income: $270 - $300 million, Adjusted Earnings per Share: $4.50 - $5.10 per share, Adjusted Free Cash Flow: $200 - $230 million, Capital Expenditures: $100 - $120 million
Positive Outlook
- Numerous opportunities to pursue long-term profitable growth.
- Focused on prudently deploying capital to maximize shareholder value.
- Creating a compelling value proposition for all stakeholders.
- Cautiously optimistic regarding the evolving macroeconomic conditions.
- Laser focused on executing upon our four business unit strategy and continuing our commitment to our low-cost model approach.
Challenges Ahead
- Some consumer weakness during the fourth quarter.
- Continue to see near-term challenges ahead.
- Cautious on the state of the overall economy.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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