Recent ODP transcripts
Associated ODP filings
| Tim Perrott | Vice President of Investor Relations |
| Gerry Smith | Chief Executive Officer |
| David Bleisch | Executive Vice President, Chief Legal & Administrative Officer |
| Anthony Scaglione | Executive Vice President & Chief Financial Officer |
| Chris McGinnis | Sidoti & Company |
| Michael Lasser | UBS |
| William Kafoure | Elevation |
Good morning and welcome to The ODP Corporation's Fourth Quarter and Full Year 2021 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 Perrott,
our Good Administrative today morning ODP This us The Vice Chief CFO. Gerry for Tim Executive and Scaglione, Vice President President David thank fourth quarter Bleisch, you and Smith, with Corporation's here call. joining and joining and XXXX Anthony Perrott, our Officer. us for Also I'm and and CEO; is earnings is Executive Legal conference our
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margins. comparable sales Our in fourth store strong again drove Retail results and division with terrific strong quarter the
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quarter. anticipate a stores comparable was from Same store sales in X% we sales about open we traffic store year. were up the basis, the However, from open in lower throughout
However, significantly was order an up this offset saw higher with in and rates sales We conversion a volumes print our demand healthy categories. and our for increase per copy in to strong XX% core services average shopper. to and resurgence leading continued over in supply demand
our Omni our X%. proposition up as success recently year, a customer to strong the during previous are comps XX-minute to Additionally, BOPUS we new versus the Also up height and reached our BOPUS are for Omni XX% sales by Supporting with highlighting pick-up high continued year drive which of value guarantee, BOPUS the sales customers. continues over the were channel presence demand strong last launched our pre-pandemic sales be while recognized from pandemic, over market period providing satisfaction. continues down levels, the the to the
XX an during quarter. year, million continued SG&A generated operating basis result. very in strong year. the the we products X operating representing in as included From despite the progress PCs saw from compared higher we the cost efficiencies We hit of out quarter this lease improvements milestone and the curbside cleaning operating in lower would These and income and stocks pandemic furniture sales added add Balancing of quarter, demand to cost margin as strong I and performance period drove this of over orders. certain also products, same a improvement, with technology perspective, also lower delivered the challenges. last like that pickup in last $XX million ink a X% technology. up relating PPE to to We an categories costs performance well points
$X.X million our balance and billion consisting we $XXX CompuCom that million. equivalents of enhance lending the asset overall the sheet returns. in had also to quarter point out our structure actions our the would approximately availability facility. drivers approximately quarter December of We facility. cash of XX. at to support Total effect XX, some base and debt to cash Now the and slide quarter the on borrowing the of with ended briefly I $XXX $XXX reducing end, which increasing highlight the million total quarter on and would our of part as turning was efforts under we subsequent in the to highlights as took sold base shareholder liquidity capital of end during the and I on cash ABL shown
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shares shares transaction. about the repurchase representing in authorization In repurchase in estimated approximately we for we the Next, the of million. XX% million $XXX existing about place before X.X and plan shares we $XXX and Under XXX,XXX we buyback accelerated share million ASR, $XX in approximately the continue the to ASR, million initial delivered received execute our quarter, share the from program's quarter. place QX, a put on in put
discipline to our of for confidence have with we under the business, million committed the shareholder in Reflecting in from investors ASR. and balance the as moves strategy, through capital we mid-March. share activity, delivered share value million capability BXB of for runs shares XXXX, platform buybacks. of capital As settlement the shares which and our BXB the $XXX be deliver early quarter, to accounted return for million to to XXXX, of the has to program retired allocation. total program, upon our In total and the delivered committed June repurchase about but the shares forward, as In additional could we digital and X.X to through be the settlement expect $XXX terminate approximately over board for
well of our to Our a growth the remain and XXXX. source drove balance continues as and sheet we've strength summary, executed flexibility we strategic In strong initiatives provide execute results in strategy. and pursue across our
unlocking transformation, upon digital all remains strategic BXB of benefit stakeholders. by the team future for and of continuing initiatives driving to our our value our to entire our execute building committed Our platform
I and Before touch wanted ahead. the to year briefly moving to capital on on commentary some allocation Q&A, provide
expect transformative to year We a for be XXXX ODP.
will our our As we upon our channel continue to and momentum our in supply business as to for return consumer the with execute BXC complete store optimize to the supporting strategic momentum continue path benefit. there. we work and BXB Varis through our chain our and and build gain business, enhance out their customers to continue gain capabilities more for office footprint contract to leverage businesses Operationally, in greater and to
opportunities, to platform higher growth pursue deployment board our In to balanced returning a take our we terms working approach, with of strategic continue capital in capital investments will to while continuing shareholders. on our
XXXX, the framework platform's the in help platform. expect In digital our our out these growth initiatives and CapEx in Varis Varis expenditures, and preview private also $XX make making strengthen amounts million our increase efforts consistent are expecting building and to expenses. we is the this As you to to note base in revenue $XX we suppliers build make help digital transformation we in build that Ecommerce an of It investment. traditional the to exit within investments heard CapEx will base, and and $XX XXXX, historical and reprioritizing Microsoft we allocated platform and $XX to this Central, gross investments our continue CapEx to BXB our our of important significant of as capital expect capital range our launched million is flywheel with and million business in year. This of also core volume, operating platform fit component of in supply strong digital earlier, continues Dynamics total In incur expenditures are progress that in a Business the chain our increase support company us a with Varis of customers. to million a
we providing the look various upcoming quarters. to on in more So forward information
guidance specific to our well at do are Regarding activity continued That for previously guidance, macro-economic supply strategic XXXX, as said not we range consistent cash we'll we that to operating initiatives year be the as elements hope with currently it we are time. the of dynamics, strategic operator, a annual and turn conclude and we over will our results considering flow and progresses. guidance related specific to disclosed views prior underway, of pandemic refine in revenue, for the And considerations the for the as providing year. pace XXXX questions. chain as results With of the anticipate that this
McGinnis. first the from Our line comes Instructions] of question [Operator Chris
from Company. good & Sidoti Yes, morning
can Anthony, maybe the And little maybe expectation First, CapEx shareholders? to thanks capital for maybe for taking expand bit just on allocation and around my a questions. a ‘XX? return you
from to Good hear Chris. Thanks you.
mentioned, near drove great exhibited, on cleaning clearly as a debt. at well I further our XXXX, return support good a we've to had some standpoint business, term I our to to align from a balance. as strategy investments think capital We if to and we you up core organic M&A as executed look shareholders,
exhibited as ‘XX. board that So continues value work and XXXX maximize our as to on we at approach shareholder we in beyond, we'll an with look
the will question line from next of Lasser. come Michael Our
Michael Schwartz size from the the price in inflation the Mike top be line inflation is Can from to from Thanks expecting what our are you Lasser you question. And from taking XXXX? quarter? this UBS. Hi, fourth contribution in on impact for
at of our pressured we areas in we're we're not a as But mentioned XXXX. Well, seeing providing this remarks. time at across coming guidance number prepared
across inventory mix mid it a will the portfolio obviously, an broad have in look portfolio. shift impact to relates single pricing think X% across at pricing. at line, as had to a you saw But we lens, digits it this impact to one the in because X% really can't the portfolio top high actions I on
look channel, just to in in bit given more channels, and through pricing elastic little channels our our to we strong imagine, categories continue capture some future for at with the customers. So continue And we key the in nature, mentioned, our key but contractual working is to about as a look in we've our have we us think you to continue share process. pricing very pricing at state, we a through BSD as the lever can of as place that inventory challenging challenges continue processes that drive to
We've throughout our that. think of costs results team. again, I'll system foundation the And through management that. And to And ability pricing add the model pressures all the would indicate cost I'm is our those position business proud low pass XXXX. had in operating around I our appropriately.
follow sales And quick in and fourth from PC as of PPE? how does quarter? the that technology how lower the track And sales just sales Thanks. much lower Thanks. up, a compare was to
Yes, PPE category year-over-year was a definitely a impact. significant that had
at think you that in height below hand disclosed specifically excess moving much we've I that very into If think impact we've this inventory, the been about XXXX cost. coming we inventory the from aggressive like of the at had sanitizers, pandemic, retailers, many of
the impact challenges in specifically And on in we top XXXX, of look So as really lot that performance actions take Gerry million in a across the team around the the you actions momentum saw PPE I reduction to at look with say and and other pricing point, take just the the the year-over-year probably you to line. of to proud overall with XXXX, at process of PPE the in $XXX address results, and overall. when other exiting portfolio category, again, some having
Your Kafoure. from next line comes of William question the
consistent At on segment a embedded Colliers. similar is in Can individual range or commentary? helpful color commentary being for improvement that's the question any with is given around seen range think the My the to that I guys. it'd retail the XXXX retail Kafoure least outlook directionally Thanks. XXXX. in moving from provide BSD over This year. margin be this that we've all the Hi, you past operations pieces on and Will including
to I’ll we're guarantee as on addressing Glad great with the low give high the on addressing ‘XX -- XXXX same please. to why William, we're going we're we now, us relatively of ’XX in team, be from we're costs leadership you're the level Anthony, three you welcome going the saying Kevin's team, as we're and basically as to of and that we're to in that to following same through have well low going headwinds confident to the culture, as post segment, my some model, well see from we're as -- call. retail, a trends us go weeks a starting a some positive across our the last XXXX. perspective joining that's the mechanics we're contract at it, color And two start, the more sort focus to or the appreciate this well, Omicron cost cost range. model
I of from a re-openings. business the side, our to specifically Gerry aside our enterprises recovery their BSD, see we channel consumers to retail review pace and is BXC, was see large you year said home presence the as Yes, leverage point think strategic Omni for of continue we this small if in We and put reopening continue the to to tied story contractors significant needs. last primarily reopening, strength office
continued expect to have to pre-pandemic. and K contract seeing the those on businesses good medium as a higher pace through Ed, normalcy, and side, XX small progress progress continue We we're return consistent begin on with to
as see we're and we to see benefits going us reopening to continue that's pace, in the confidence continue So what the gives to prepared remarks.
Chris next comes Our McGinnis. of question the to line
you taking Thank for my question.
to back. increasing that ’XX? Just of And expectation pace trends around I to an that? you return just office how ramps in as seen talking up Have the they customers, guess follow of
or progress adjacencies It built sort where that. you overall to decline nothing, businesses, from we good sort continue of we've but two in yet, some Omicron as was. the -- that, From up Omicron positiveness and encouraged we'll flatness opportunities on of with hit, anything three went it weeks, Anthony, the from exceptional that's throughout to a weeks We'd add to two Chris, last that? to a starting the of that see new -- won’t back a saw saw or to pre I three we done for try again, year. finding perspective. flat last look and think across And across demand job we're
we customers to those Yes, state tailwind office hybrid, I'd Whether working meaningful as as just that are our it, around in returned a begin provide for to progress return to point, it's seeing a add strategy progress we're all Gerry's that continue To customers. fully we're some through we're more should XXXX. more us with future way. office, trends the whole define monitoring to
just a are Varis, talk and when we should just things the Thanks. then does about and look around in just and can for relationship, Varis, officially you that launch? around Veyer question maybe ‘XX And Great. what the
And real So and was from of building of a really of to Varis ‘XX add by really and with and and near sort pilot the and and obviously, some XXX work throughout year, customer exit year. the starting of continue the we're buyers that continue team important. super development the building and Dynamics supply as throughout highlighted here those both the to you Anthony the I'm future, their perspective, glad a buyers Chris, the sellers businesses. it opportunity Microsoft program having Veyer sourcing Veyer procurement to that part services momentum, is going excited platform. with a for launching, base. perspective, and out very the chain of be and recruiting the year in we the of but large continuing the BXB sellers From ‘XX provides services call it, SMB that development platform, we're of the BXC rest to
business the it's and the future, our think talked there. financial especially we're And advisors value analysis from more especially exciting of always and about and I've unlocking depending I the business we for and of so our an us, our BXC that value the legal after unlock supply that formalizing value potentially, board the And how advisors in on more. chain, opportunity
business excited recovers. as our feel position Veyer Varis we platform services, future with digital procurement which obviously in chain having really a the that and having for contract will position So supply the BXB we're sourcing for having that good and
I'll Depot session Gerry the Office any to concludes Q&A call remarks. the back turn for over closing for CEO, That Smith today.
for in forward talking joining day. and healthy call. Please Have look to everyone and again stay Thank you the results. safe a you to great our QX
This Thank concludes call. for participation. today's you your
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