Recent ODP transcripts
Associated ODP filings
| Tim Perrott | VP, IR |
| Gerry Smith | CEO |
| Anthony Scaglione | EVP and CFO |
| David Bleisch | EVP and Chief Legal & Administrative Officer |
| Chris McGinnis Sidoti | Company |
| Mark Carden | UBS |
| Christian Carlino | JPMorgan |
Good morning and welcome to the ODP Corporation's Fourth Quarter and Full-Year 2020 Enhanced Earnings Conference Call. All lines will be on a listen-only mode for today's call, after which instructions will be given in order to ask a question. At the request of the ODP Corporation, today's call is being recorded. I would like to introduce Tim Perrott, Vice President, Investor Relations. Mr. begin. now may you Perott,
and Good David morning ODP Tim us the and & joining our for and President Legal Executive and Chief CFO. our thank enhanced earnings Executive you Also CEO Smith, Corporation's Gerry is today here joining Scaglione, conference our I'm Vice is for us with and Officer. Anthony Bleisch, call. Perrott President Administrative This Vice
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[Operator the from then Our question. your McGinnis. of and with Chris first line Please company question Instructions] state comes proceed your name
Good morning, & Sidoti Company. Thanks question. my for taking
how changes you the ODP? Just Microsoft announcements, way a do little the a they about the you why more? prior transformation, fits talk that the agreement, bit and BXB And the talk portfolio got few the bit choose service acquisition Thanks. just little you acquisition about the market within questions a that how can recent and can to maybe on pivot
and morning. Sure thanks, good Chris
their has market. a piece is all obviously chain BuyerQuest out The [indiscernible] addressed to BuyerQuest obviously our And ability acquisition team accelerates the digital done, by platform world-class have believe has The a platform. our piece, and eCommerce their perspective, procure-to-pay as move both has XXX Jack that it relationship digital product, to ERP Azure procure-to-pay to get piece. from as a from and well of is Gartner. So support, build is into procure-to-pay have a Microsoft. very to think this that our Dynamics to Microsoft element opportunity, and ability announced an We especially perspective. marketplace for thank we them - the partner with that's huge it excited procure-to-pay in accelerated a we it it I rated high What with it’s ability easy supply really as we that bracket.
obviously buy of a that on the that we we're companies a on open platform go future procure-to-pay with customers their Jack And help in up of, a obviously activities and being there off procure-to-pay BuyerQuest the Investor market come around or going that. to the Dynamics ability that's base, And and team, partnering front to opportunities platform that's opportunities that more have on as of existing on obviously, obviously, work to on a accelerate Microsoft. the and all marketplace huge opportunity huge in is Day. well. to for those that more to customer we really and broader opportunity go-to-market XXX, end once think have huge buy come Because both especially a So procure-to-pay having
that. Okay, there help I Is you have an can thanks and just, like something an from they is the agreement you. taken with Amazon for build open marketplace business that, to And you've guess be Alibaba. on or Alibaba intended transformation? this the you Thank
spend defined of eCommerce where world-class, actually agreement, platform, give And very important it's at perspective Amazon, BXB think as to really supply supply We or buyers relationship different from a to we contractual have you're tail curated sellers. a I our trying back this, settle the chain But into than spend. to contractual simpler Think it's a loose capability chain. to of huge some Zip dock. by day source well. the Alibaba. XX% very really of our BuyerQuest assets BXB a We codes with not procurement buyers, we're far and almost that looking platform. effective think Chris, leveraging But deliver and next as also connecting comes
marketplace. real the of And only that so, curated no to it's know with to digital with procurement and leverage Prentis think marketplace the successful that built. is that team settle opportunity exist. But assets in BXB We physical especially have a a force the under-penetrated, we've market $X have very there now. very, and capabilities XX% that very has can assets. is market that They we digital we Terry And be and trillion we there is how huge think our a
of or and asset question $X kind in just compete cost place cost there Great, of and the largely to market? last going that be on a the pursue to trillion kind is more in follow-up to one this, now, the What's that. is
- will traditional across business. $XX other end of - $XX having stay million an to the million to script, you And in our Anthony is It's massive million obviously million million his this done within but million have said but who confines not the an perspective. successfully, efficient within our capital about Anthony, else CapEx entire in you'd of help like seen reallocated to have on the OpEx. anywhere very $XXX again well. dollars of a with at it investment. investment, anything our between will our it this what Office the some investment it's as to obviously, people confines before very we But be and add it in our Depot $XX from $XX year, spends about $XXX we of ability investment But of to those guys traditionally that?
go-to-market dictate will make this approach just would we year, plan later as the I say, future going investments capital No we to it forward.
point As of we're this mentioned, from an ROI an a year. will that investment to reprioritization ensure it's the a and that see spend and to is our going throttled of with return Gerry perspective, really capital it's it
platform. - out expected as will and the around build returns at future, from providing we we we capabilities that the be look So, more that details are
of Our question Lasser. the next proceed your and name from company state with your Michael then comes Please question. line
a operating Carden $XX Michael, delving million the the questions. a question. bit Thanks guess return lot last a It's is company to expect for XXXX? you on do investments you on are How Thanks. actually Mark I the see then for million supply spread pretty taking UBS. investment first, be us chain be today on buckets fast incremental in to other $XX And expenses there BSD sizable toward are could or digital evenly expecting these in in across going? to
said Well, perspective, from the and the we've in an is our building a investment future. obviously platform this for and year presentation foundation as XXXX a we're
a model. is So accretive. low as built, it's your I question Once have scalable - cost the the this a very it's platform first to we much better business and on, answer model, very want thing
if making ability culture. that's team our with enter relative This this enter market, we to perfectly and of high Prentis a it’s we longer the value it's cost low ability strategy aligns is focused growth model so, business to obviously our with sure And and that, - where high tenants model, to with term superior and out. on because as and myself as built Anthony, market
more in too. building the as and let we material obviously but the of XXXX, So a make Anthony, sense future I think on nothing lot bit add it more more will announcements future. make to color little you in I'll come
and look you and that Yes of Gerry. in deferral worked based business characterize impact COVID on that were thanks, us based of in Mark, as project. was the had project on Yes that XXXX, I we reduction projects on the if deferring what the most at CapEx the maintenance would most
So saw level way XXXX. we've moving we in going probably into would levels more in look as the you and guidance, we're between and XXXX XXXX while to I towards be seen years specific characterize one, not previous that the we're providing
SG&A quarter, XQ, the additional quarters double-digits, And then more the adjusted change X% recent in in in been only of down was responsible the dollars. declining so any what trajectory there for primarily in be was Thanks. color would It's great?
investments SG&A with that had associated we're the making. we additional Yes,
business perspective. those new were starting So, platform investments we a from
legal year, end associated at true-up had with accruals to the also well We related some as of some additional the accruals. as bonus accruals
compare a So, impacted there is the that some you one-time when it basis. on item year-over-year quarter
time for one have We more question.
Our final with company question. Please proceed Christian the your your question line from state then Carlino. comes name, of
wondering was slowing on I and more the JPMorgan. or not And be, division, categories that's between adjacency or from whether core contracted from Christian your the morning, gap product over good Hi that core a talk BSD quarter the you bit about whether product. can adjacency improving?
and in back-to-school mentioned impact tech. continued strength BSD to adjacencies, and we and the the of our work on to our around While be as our strength PPE, a continued things having given call, our core the adjacency furniture, products the on around back saw specifically strength we saw we continue challenge but category channel,
capabilities bridge So to us that we our of and broad some the our broad channel saw mix well allowed core supply as gaps our distribution supply as in office categories.
actually decline the in a then higher for good BSD, And within costs what year-over-year they out guy operating supply than where within chain talk about XQ. was Could called but retail. you you it. to that more seem Got margins, differences,
So drove flow in what BXB? yes, the through declines beyond drove speak you could negative the operating to what margin -
Thanks.
incrementally were other that are we basis to also the in you BSD saw delivery offset costs, as look locations, a we that location is chain supply a our cost we higher were a channel. cost shift serve has probably some the the favorable residential there And residential relative see cost channel. you've what cheaper costs. So so from deliveries to when third-party than retail on logistics our many seen impacted retail chain supply in industries through This perspective, at coming served continue mix to to higher impacts BSD overall by
our of Now logistic those by firm we private have overall with fleet, local the we were a reducing that to well have that of many benefit supply challenges chain third-party our have we as on the and other many basis. mitigated things having were challenges for one able we providers eCommerce own saw of as mitigate as relationship the relative privacy,
you talk the it to potentially you if what more, synergies BXB could itself, and needs what ask recent Got company drove sells to that could come the platform? through of make asset acquisition, purchase add the of business BuyerQuest just your could you out could what better one thought I just it. within And think the it, do on the
acceleration ranked Yes, it's as partnership an of we've software a that. already excellent. the significant get the primary our to to had world-class reasons. with think I that its said one business package, around BuyerQuest with announced our a Microsoft on platform customer high, strategically ability market faster, that's the level extremely I high of Gartner And it’s as software from but platform was obviously before feedback a very a
platform. building overall a business And get to take key Jack a integrate market that with platform and we of obviously board. believe his and And the team great to his even make market, Jack ability But a to we more a stronger team our our into have that we'll and and great great And significant, job can have faster. our so, go-to-market very capabilities it's and our a the key product our on across acceleration future. and we're and and that reach platform digital done excited of in
call the that And concludes will remarks. to today. back for I Office CEO, closing session turn any Gerry Depot now for the over Q&A Smith
and just want point The everyone and team XXXX. operating you and were performance a free thank thank of joining company the flow. for our call pandemic across across it, like We today. from I are expanded well cash Yes, we did we at out before in way the again to I today results position the proposition. than to and value look we stronger our outstanding
building for our digital the We platform are future.
and have we for very, on significant a sheet strong We evolution balance excited very and our future. have progress very made our
details platform We in our giving the and built have this Investor future. around in forward and an and we're looking that more opportunities we've year team later will the great Day to digital
have for everyone call and Stay today. thanks So, joining good morning. a safe the
you Thank call. participation. today's concludes your for This
may You now disconnect.
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