Earnings call transcript Q3 2022

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Tim Perrott

Good morning, and thank you for joining us for The ODP Corporation's Third Quarter 2022 Earnings Conference Call and Investor Day meeting.

This is Tim Perrott. I'm here with Gerry Smith, our CEO; Anthony Scaglione, our Executive Vice President, and CFO; as well as several members of Gerry's executive team.

We will begin our presentation this morning with an overview of our third quarter 2022 results and accomplishments. Gerry will provide an update on the business, focusing much of his commentary on our accomplishments in the quarter, including our operational performance and the progress we have made on all of our initiatives to drive shareholder value.

will our the divisional Anthony including financial commentary, of highlights performance. Gerry's then company's review results, After

portal Following Day, this online structure, management with encourage review, plans provided you be your timely a Day your hear strategies, Meeting, followed to we questions, the will with team and our answering will early begin our possible along at Investor the live We This via to from manner. queue up four meeting. questions of as that our long-term get the your realigned in by performance you to business program capital a you when questions our unit attend our and section and submitted signed targets. submit respective get help highlighting their Investor in presentation, as allocation we during ensure Virtual will Day Investor each session to question-and-answer that

We as will endeavor to the Q&A questions during possible address as many session.

current Commission. in are of Securities U.S. materially. concerning A uncertainties discussion filings subject risks the detailed Exchange cause and our are begin to Harbor Securities and certain made company's results today program, need we company's of which number expectations contained differ Safe Act subject Private Reform Before These XXXX. provisions to future reflect of statements these that with and a and to may call could the to our and presentation are the on in events forward-looking Litigation actual uncertainties that the inform comments forward-looking of statements, the this you include risks I

non-GAAP performance. be describe accompany as investor.theodpcorp.com. as archived Web site press well presentation the SEC and the is non-GAAP financial the financial that most During will our available least at one site the call, on being filings, measures there simulcast our financial will to and we measures at comparable The comments measures of GAAP slides presentation as all call and release, reconciliations earnings we today's some year. Today's Web business are on directly for use slide

turn Smith. now the will I over to Gerry? call Gerry

Gerry Smith

morning everyone We appreciate us today. Thank you joining to our Tim. morning. you, Good this joining call

to discuss results today with We and third you follow accomplishments the be the our Day will here also quarter to only this to meeting, excited immediately for not really webcast. are XXXX Investor which host but

allocation and Investor respective structure of During event review unit shareholder mean executive our of will business and our our Day members growth to my and team provide deliver strategy targets, an plans, realigned long-range our capital sustainable strategies, virtual highlight in-depth value.

team, our Our and to But before entire is review provide the accomplishments brief company I set event for the we this, third quarter. say in we've this I fired for management the path fact, our a and up of to about results want future. would get entire

This commentary Day a operating quarter on more the we will changes and have our light given the Investor go-forward each structure business will keep performance, our much to basis. on we unit made detail provide

we quarter Anthony in our presentation. performance, to more the business for the like As mention this reporting on beginning of are later units. parts four our we information highlight moving I'd provide results that, each will

further million foremost, of value, we our we beginning slide will shareholder approximately driving third over to and shares for on that Board the announce address has four, continued the of and the turning happy accomplishments conclusion tender the effort Now $X Day. to billion of buyback Investor and authorization quarter, a new offer, first today, that our post Directors commitment at to repurchased approved in period our $XX

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it say again. me Let

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are assets We future. help fully EBITDA we Veyer's contribution our will very generate excited in path, expect and utilize strong it about us the more and

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third again slide Now turning to challenge challenges solid as quarter on the shown inflation delivered constraints. team and to our performance related in industry-wide the to despite six, operating and chain rose supply the quarter the continued highlights third performance

Depot's in Office performance year Depot stronger line traffic related Business trends were Office during revenue a the revenues and to relative top-line lower as which to recover COVID by service lower Our our as as continue season. last conditions trends year, performance office in ODP was to highly unit. back-to-school we and was softer as business helped to as fewer with last revenue offset comparable return at drive competitive Solutions, lower experienced stores well demand

in our Depot for quarter. Our despite investment largely model of and pricing drive approach the challenging to lower solid mix Business results low-cost That operating hope Office revenue than we year Varis. combined between the the to peak ODP continued Solutions as last hurdle backdrop was with distribution strategies, and said, year flexible and the related income operating

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to focused X nearly on back continue enhancing shares the buying million and quarter the we during shareholder Additionally, be shares value quarter. bought during back

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will I turn financial that, to detailed for Scaglione, Anthony results. call our With now a over our of more review CFO the

Anthony Scaglione

discuss Thank Investor you, for the be presentation. meeting about everyone. financial excited I'm Day to and and our XXXX Gerry, this happy quarter today that good here results to third morning, of follows our

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was shown consistent we previous generated Now last result provided had on year. XX eight, total fewer both We same of over last highlights $X the and GAAP to an revenue have in results third basis. our adjusted as year. on turning of to of as we billion flat slide quarter, a impressive quarters, results compared period the financial This the with our service stores QX in with

in supplies generated as line by results high revenue certain lower were sales continued top improve, core delivered Office We lower last growth at back-to-school driven stores in year offset demand both stronger business and consumer Our ODP lower return-to-office Solutions and revenue adjacency fewer pandemic by lower Solutions trends during strong traffic. by as omni-channel in as at sales the to offset our ODP at in driven well Business Depot, service categories in categories, by volumes. Business

along Depot down was between investment GAAP million from is to and last relative income the with operating largely Varis. ODP year-on-year $XXX income Lower revenue higher quarter operating Business $XX Solutions year. in Office mix year to million, last related in

We as full expense our related peak innovative gross year are this to incurring launch nearing of Varis the of are platform. year we this

as platform, path earlier, the we with strong breakeven. scale the rapidly stated a to flow cash and Gerry expect we grow revenue launch As defined business growth fully generating to

million $XX company's $X remaining our $X Veyer locations. our and Included routes stand related activities million to related in charges, million is BXC, retail charges to in our operating of of impairment associated asset costs ability to largely with The BXB, consisting facilitating income was the and to up primarily store non-cash realignment market.

of in operating Excluding This expenses million $XX in last includes to items, of the QX of third for year. income was $XX compared adjusted these quarter million million and and quarter our $XXX other other XXXX. unallocated the

respectively. adjusted third and EBITDA of quarter. the expense last the third million This and quarters million XXXX compared in Our quarter amortization million adjusted $XXX year's of million depreciation includes $XX in XXXX $XXX to was and $XX for

mentioned per in diluted share of impact $XX adjusted for items or Excluding the year for $X.XX $X.XX million earlier, share net the compared adjusted quarter or $XX net period. prior the after-tax per third to the was income million income diluted

cash disciplined cash $XXX including in to restructuring The last building of in the to operating million million capital, flow, $XXX $XX was inventory to compared flow which Turning operating quarter approach example and result to in year. related of year-over-year good flow, largely advance management. million operating cash of up flow our other included changes of was A back-to-school This inventory season. was this the change cash working in spend.

and to As the expected environment promotional in season levels we more more inventory back-to-school market nature. we in competitive industry-wide, this be analyze

year environment. approach our Given disciplined market that it somewhat and competitive from with this, given last highly the to levels this be took demand we expect you in inventory for heard we expectations. a back-to-school to fact as was build highly Gerry, in softer of versus our appropriate terms And and

$XX were supply restructuring Adjusting million, compared digital our in with quarter transformation, and quarter adjusted to $XXX quarter in associated chain, prior-year plans cash for realignment cash million Capital million. investments free in reflecting targeted the $XX was the period, charges e-commerce. expenditures the of $XX million our in in growth the flow approximately and

I turning discussion BU to on like slide segment Now would unit I implemented quarter, this of four we're we of my aligned structure. to our begin business the performance, reporting quarter reporting changes structure. nine, before segment Beginning that a our highlight unit business have with four some this

shown As ODP consumer business. digital and our and Solutions, are procurement chain, these business, BXB Depot supply business, Office omni-channel Varis business, Veyer, Business segments our platform distribution our our procurement

now serving business consumer I and is acquired Depot. in our Federation primary previously segment, ODP pure our of One BXB former as well will Toy would enterprise-level Business business. small, companies. Grand is companies division reflected ODP contract Solution and changes, business reflected enterprise BSD now the highlight distribution a the businesses Solutions the Canada. our was be distribution as e-commerce its Business play medium, which of & a Office BSD business in or includes OfficeDepot.com, regional in

continue previously their was consumer had segments relationships pursue BSD chain assets needs and they and embedded both allocated and BXB to to supply which Veyer, and business our of own segment now is operations third-party retail optimize our the its support And new capabilities. to further and its as

in for future. We The utilizing And this entire are done BU meet about XPL and thank lift. services under would we our near path the business structure term this like I the capacity EBITDA hard generating for have the long-term Veyer to again work challenge. the from positioning excited our four a heavy excess work and was for to up report team to rising in

during just Day excited meeting few minutes. We to in share our are more Investor a

return-to-office business Business traction quarter to turning further of last shown as performance X% in QX in just improving up as revenue generating billion to our the XX, slide Solutions trends ODP deliver ODP results with Solutions unit the to Now Business starting of on continues $X over year. gain QX, relative

business business, our & year-over-year contract our Grand and companies, federation growth. delivered Canada strong core all in Our Toy

have companies are executed the federation over in regional expanding years, our reminder, underserved a As distribution we upon our past the reach tuck-in acquisitions previously few markets.

to and in the categories income and over print generating services our we including demand operating and as more services. Investor ODP Business Solutions Day year. operating basis significantly for as performance From presentation. XX% adjacency You board improve supplies $XX about as saw will million during a XXX jan/san, hear stronger of this well standpoint, represented tech, a increase the up point continued product breakroom, cleaning last across and for last percentage core sales. our This of an quarter, year, workspaces, over copy

data-driven Strong to started drive sales at us in the our pressures of helped utilizing we customer performing add and efficient that meeting core is customer year contracts margin to identify the and the this approach in pricing and of positioned supplies demands business, way. operations helping us these results. opportunities discipline I would most of mitigate efficient beginning the line-level strong reviews work inflationary

in XX $X.X X% to quarter versus store service fewer the to our and strong as to lower store consumer revenue Consumer Now Office division to office, Reported small year XX, on related turning customers. Division in driven third our consumer, slide provide as drove quarter, last closures this partially billion, the to year, solid well proposition by a business results education, our operating as continuing shown was stores traffic. home planned results down retail value again in Depot

service. contributed revenues. We with as approximately in quarter, good high products Lower quarter is XX cleaning for this previously of stores sales year-over-year X,XXX the in categories lower well ending the during demand in to product pandemic tech. the stores closed example as A

Additionally the sales order categories traffic and demand in environment strong lower same-store increases year. more back-to-school demand leading intense in higher our rates was average the aforementioned volumes, in Partially conversion lower shopper. per given was and to competitive offsetting sales this quarter slightly

well mail We print shipping by demand in our lower strong cleaning. core for services, categories as and saw in and demand services and as copy continued offset

happy to strong Supporting that with is our omni-channel strong to are on presence continued our BOPIS guarantee, pickup to the success a satisfaction. grow report drive sales quarter. in customer We basis, which the same-store XX-minute continues

X% From We or of income last costs as an generated related income operating operating in quarter deliver the perspective, sales to last to higher lower and we by solid operating continued percentage in challenges. despite year to million $XXX supply $XX quarter year. sales a to and inflation. traffic compared inflationary of cost margin primarily the the compared lower performance was and higher Lower chain, operating impacts driven and million

to and wanted Now Veyer's into slide financial insight operations. provide results highlight turning XX, I to

we includes and As in forward. into and service BXB sourcing moving sourcing, Asia. its fulfillment, business our with and global we also which earlier, and Veyer have transportation mentioned competencies purchasing, separated own reporting delivery, in operations unit global consumer core distribution, Veyer business specializes

from third customers provide time, internal opportunity provide great low-cost the world-class utilize a our build generate services investments future. its also over upon existing Veyer provide for third capacity its is go-to-market services be as to focus Day. at about Veyer external strategy well-positioned Business independent a aligned believe ODP Office services internal an will primarily business unit that to as and Depot, customers to Solutions This services with EBITDA pursue to will We other as in to more through more and full an XPL but parties to its well third and not to Investor fully business parties. its only further hear you organic parties, capabilities

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consolidation Veyer sales For the utilization business last the investors vendor reduce given billion up supporting where Depot, a to for growth picks growing income $X Veyer vendors, and quarter from for the was as unique Veyer's going able drove to improve million, included quarter $X EBITDA directly $X ODP Business million parties. and this product our and chain forward will from operations were over one mix. third of of Solutions amount and in we capabilities activities collection and time see This Through to purchasing products $X.X driven predominantly sales supply profitability. we benefit. the Office is highlight in million a costs freight in up and for we this how year, was operating external third-party asset contra-expense ODP flows by nature

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XX, approximately million availability Now the briefly a total source facility. cash quarter sheet balance million to $XXX our with strength, continues and consisting slide our on cash turning in $X.X sheet in ending to liquidity billion, under and lending $XXX balance equivalents of of be asset-based of our

enhance an Total debt actions have at we From approximately million. capital of the was $XXX the to continued allocation returns. take to quarter end overall shareholder perspective,

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you share plan a Day significant a our see meeting as testament the hear new business. more our and Additionally, value will Investor Board in to our in about we repurchase approved

guidance for the year. we Lastly, reaffirming on our slide are and year full XX, shown, as

I the that, to Tim. back over With turn will call

Tim Perrott

Day Thank to our you, we Investor remind begin a virtual pause, brief will just I after meeting. Anthony. In closing, that want our listeners

strategies respective will targets. hear allocation meeting, with Gerry four long-term this During our plans unit Smith highlighting team and structure, from business members capital along our of and you and his

many us as as a as order after in which submit the allow this and early we progresses possible have questions through as presentation you to as meeting questions get session question-and-answer to will We encourage to time possible. in efficiently

XXXX. the quarter of results this And concludes of our you. the for third Thank review

Playing] [Video

Gerry Smith

welcome Gerry the Corporation Investor And XXXX be I'm you realigned so to the newly excited ODP business unlock Corporation. about tell of you drive saw you as we've well as strong shareholders. assets, The powerful past value built power value of strategy expand foundation to here to the our sustained I and highlights I'm as unlock Day create Smith, our to meeting. to that path want for the morning we more CEO the and power opening years, with this evolutionary Hi, that proposition of the valuable to our our a you over video XX our The ODP business. our

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Anthony Scaglione

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we we're and to forward, Going are business be believe prepared cycles. economic well-equipped a to tackle stronger

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I Gerry will to for over that, With hand it remarks. closing

Gerry Smith

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presentation excited today's enjoyed future are are. ODP as you hope We we the as Corporation's and about

you open pause, our brief a for after attending Q&A. speakers today. we'll panel Now Thank for up

Tim Perrott

our of today. here meeting heard all members you Gerry Q&A And welcome our the Head Corporation, I'm Investor the and Perrott, of of ODP portion I'm our Tim from today. Smith, CEO to Relations The and who team with for

toss Q&A, it go opening had over I we Gerry, wanted into comments. you just any Before to see if to

Gerry Smith

for to Day. Investor few things. reaffirm with a joining today take our Thanks, here moments Want you super to Tim. We're thanks a excited few quick to and be

that QX to from deliver per going share Investor and operating to for a plan billion also and the First and almost double about of confident our perspective, excited this super we're redeliver all, we're year. year. the I earnings our And results, XXXX to Day I our to share. ability perspective from nearly a $X continue repurchase message both the the wanted that year, reaffirm Anthony and guidance in for

Additionally, I our we think, a investors an outstanding low-cost have the really is, key we call operating business all model. model, point for

us repositioned put closures an savings. us this shareholders. does driven the We have operating it's the over today return not over allows $XXX last five way and million and from by to us really capital perspective position EBITDA of to That years store include the in that

assets confidence business engine Depot a so And super And from unleash multiples. and digital these we're our transparency the us business across growth earnings as perspective that's value chance great Veyer to strong ability a ODP gives from I future to expand balance a solutions from our our across of an again, these that that units, segments platform with important think with investor, going be it transparency four of to growth for that's in see across a excited having a cash and us units able business unleashing to all all Varis Office and four gives sheet. you're gives us across it think I

you being dive we're excited, and questions. into thank Tim, the So, for let's here today,

Tim Perrott

our of We you, as by submitting we've Thank questions. a Great. on many all Gerry, actually received we've and for we and procedural group together What done and forward. a listeners as standpoint. as from thank imagine questions of you you to the lot questions these the might either same are of these address since topic go questions same we topic the will today

start Gerry. with with to you, I'm that, So, going

repurchase heard enhancing is market to billion $X question is that for given the you commitment we are you've narratives to a One key will heard that of is, the value the recession. environment, have be that shareholders. for share our potential today plan. our the question given confident How -- And investors able on deliver today first

Gerry Smith

share to to the it's low back cost through have important buyback, look we I say, and committed what we think do have execution, we We're operational pandemic, a do great model.

culture going it we in XC expect we buyback QX. time our you of can this all committed saw our and for we're maintain have deliver also in program additionally, we to And aggressiveness we've results clear. share demonstrated, periods to and that We made we're that

acquisitions. We have no major

share We still future I'll to some this buyback let growth forward. for we're committed in well. all Anthony, program in extremely to growth the going is plan. going Now, can invest growth, add color as invest but

Anthony Scaglione

Gerry. Thanks, Sure.

the our just the with pace executed really on feel we we value confident I disciplined is three about heard the of we Gerry, we long-term be feel and the from returning and So, think more in and the both, we first stability a capital maintaining I our today and We the in years. will and plan in in short-term shareholders. QX foremost, commitment that you've to see there over importantly to buyback interest see opportunities next with mentioned, aggressive Gerry as is best ODP. consistency that continue

Gerry Smith

undervalued. last Tim, thing both add do. And the is is, stock think the I'll Well, we we

Tim Perrott

back it turn Thanks get thanks. margins. part margins returning question. EBITDA than narrative question you is is X% the key which is and to, turn good and going ODP why can't why I'll can't this much. and And the X%, a another Great, I'm today sooner? very higher Yes. to to here so do of plus to Business Solutions David, at And

David Centrella

I I've over role. I Tim, day since new took gotten think question every that single my

Tim Perrott

that submit question? you did Gerry,

Gerry Smith

even I maybe the I'm in higher future. and I'll every did than X% asked it day. the guy that

know. never You

David Centrella

addressing a aside, Strong actions. exceed that to done that That's goal. can strategic a the looking to how expect drive try we partnering some leverage We've of customers. cost true, We're purchasing with EBITDA fully our infrastructure, it. in worked do floor. efficiencies. customers better. as X% we margins customers. kidding with a proved lot our our of fixed this little all can to We've We're quarter unprofitable at We our We're

deploy our orders, sales looking or opportunities optimized a more to So, fashion. reducing organization small in for

at. look sales We can We have that. a inside organization that do us great help

and in then expansion penetration will strategy You'll federation changes our also assortment through see margin overall our mix. mix, some private margin leveraging our improve brand

I clear, get we to also margin But consistent penetration. a making the plan adjacency to do targeted So, floor. acquisition investments while on be want X% and a customer basis, our to X%

Tim Perrott

to on as going well. I'm David, with And you stay Excellent. this

executing in as question came Another your question of narrative value insights a categories can that and bring tell and is, key categories our we is customers you on our part our adjacency adjacency to well traction. strategy can upon about us more high the customer strategy specific any as that

David Centrella

great question. That's a Yes.

business way first because all, we billion So, a we of adjacency we've a really but business. the $X.X business supply got really at already that have core was got solid almost strong

the into really needed share the We to categories. get us have given relationships supplies these that strong almost of to other has market core XX% some credibility and go are that in

addressable over is So, business adjacency the our as space, now adjacencies, but TAM got $XXX market the look I of the about billion. XX% at we've in total

really the really, there So, big. opportunity is growth

today furniture is $XXX over our business In fact, million.

and and cleaning is facilities million. breakroom Our business almost $XXX

Our and technology million. million promo apparel $XXX business and over is almost $XXX print,

some already we've credibility. So, got

that space. that space. vendor got We great We've have great relationships customer relationships in in

do to deep pretty customers categories, product into have categories, are from convince buy convince the buy part and us. it that. to we of have proposition best so We them to we have categories these to value these we already And to by just don't them is, think, a I compelling our

the and company money some reduce really I'm that of right. bring for number our this save growth we help table opportunities for and much forward, And customers excited them going super how have to they can create so, vendors about the them

Tim Perrott

with David. you be Varis, Maybe, first of turn John and both, John, examples to Great. give and Prentis. Could going and specific customers That's both incremental revenue? Prentis. you then to I'm I'm you, this so that to can now some generate excellent. Thank transactions sending to and Veyer external question going Veyer at go at Varis

John Gannfors

glad Sure. to. I'd be

the Infinity type have as think, and fulfillment where we great want of distribution Le Tigre, apparel and of on that's we're to for and looking services testimonials brand, heard I of today provide example type customer their for you a that example great with we provide. the Global, one the we

as so for You going are we [Ph] provide their Hydration] we're where and from distribution well, great these type of opportunities, products, also [Flow water us to heard the go opportunities after.

Tim Perrott

Prentis?

Prentis Wilson

I'll Yes. of examples. Awesome. couple a give

every there to acquire though, examples just important month. went that customer customer through it's couple last So, live looking we who over for was A both, Varis a revenue interesting Varis drives of out incremental and at point ODP. the

we at the generates they're the is through importantly It but and area, over first run our a rate geographical so, and revenue ODP ramped the terms are that went XX% of And saving year purchases. customer million spread these platform, Varis. on for Varis, platform up look wins in across that they them, suppliers are the to generates they including generating directly it's money. four that so on locations of their going net $X when live and And north that for suppliers the suppliers of weeks, all our for to now revenue new revenue their

they lot we we're want an these their direct where purchases is, to them of the find working times technology lack to they Another mid-market customer customers interesting really the be. and a example customer, with ODP

amount but with is intention And contract have a have tools spend so, has that. certain go the who to you a to of they do money, whose don't a customer ODP

ODP and suppliers customer those the so, the Business our from revenue incremental the more ramps on an purchases gets And they to Solutions Varis platform customer, what tools also is revenue revenue that platform, as but get transactions. gets now when whether existing has happens from in transact now those the want, Varis that now customer because all

a it's all win-win way the So, around. complete

Tim Perrott

much Thanks I'm Thanks. going great. a question and cash to stripped perspective, both this question if but so to and flow what On out both and related different a would on you be maybe Anthony. The XXXX to John and Veyer? Varis from question Veyer is Prentis. That's direct Varis

Anthony Scaglione

question. Great

internal So, you positive primary support utilization ODP operations Veyer continues early Depot. flow third-party Solutions just Business of if the Veyer's mentioned, It's and Office about you John to as stages, business look And and today. in at business. that think as cash the assets our both the that's launching the business

you flow mentioned, cash to As the beginning outlined year cash XXXX, is equal a around as to-date operating look roughly been peak our flow what from we at and at for of is standpoint million. of year, Varis, investment, we to-date has XXXX $XX

Tim Perrott

Great. Thank much. you so

Gerry Smith

number I'll investments, using add asset. in capacity, we're existing these a leveraging Veyer. We're capacity one, not adding Varis that All comment.

cost our would it's not into And built have did anyway. this So, perspective, a center from is huge plan. a a that and long-range Varis There all We investments investment. are modernizing. as

already. We have into account all this

no there're above. over investments So, incremental and

creation, billion for well. is So, make and avenues other and expansion understand is value this multiple have continue committed, we we investors to expansion, and committed, to growth sure, secured $X if also want to as

Tim Perrott

that from way. could explain the to capabilities with well and really chain Excellent differentiation Could other assets Veyer's appreciate going Getting those question as thank are out John go in that much, those have a of to some regarding in what from that. companies is you we've question a market And that supply so because that? form I you seen different think supply I next on lot are differentiates this chains questions news a XPLs you other follow-up, and trying is, Gerry, today. But expand other the leverage lot to Veyer. integrated

John Gannfors

breadth answer short our The Absolutely. of offering. is the

network, makes you mile, have, market processing matched and returns sourcing, differentiates capabilities. we're players we unique leverage at market these to us feature So, nearly us other our to day and that's last delivery, the we end-to-end competitive if and our capabilities product the We're with new XPL development, have our customers be able capabilities distribution, provide capabilities market. fulfillment prices perfectly to excited large fulfillment, look really and in what distribution that and to at against really next truly and

about for we are excited positioned sure. really So, the uniquely opportunity and

Tim Perrott

Excellent.

Gerry Smith

both because the supply And This of times. I've the been codes asset to turn and recognize right, years. is would Tim delivering of value it, feet day, capacity, zip valuable multiple said asset how for don't the dollars think I of of trying it's and have millions go great to into for and unlock a most this Anthony build X XX chain asset, let's We this next is. the hundreds important XX.X% that this, in just people our value do. leverage for million can't Companies this We've out be let's shareholders. square got people

Tim Perrott

Exactly.

Prentis Wilson

optimizing And I assets utilization that we it's incremental utilization just in EBITDA. It's mentioned the of would John and have place. driving really the add, it, and that that

conversion the into. at the areas look that highly to one you the or it's unit overall leaning business economics, when to be of the So, accretive and we're going

Gerry Smith

Well said.

Tim Perrott

the to well as desktop advantage too, not the do. capability big delivery which that a Yes, others have that's is directly great, as to

So, this I and come I'm got going last is We've years been for is great think, have over we this Zoe. point on a the question a I talent, an because questions, which the interesting in as strategy journey involves several to turn to now. and a -- our think we've question, few

that attracting So, on journey in are been talent? of we've we how light

Zoe Maloney

of have fundamental and and proud our success. it been hasn't parts and attract areas across great continued fact to been of organization the that And a easy. our business always question am able we talent top to so the all just of That's I

into last that's organization exemplified attract XC really individualized to performance. and continuing directly associates to our et able of component the Over programs talent the really in that We've their been but in that our and with we stretch, continue culture. to been it ways is have the business incentive cetera we've critical well identify managed commitments aligned a terms to

morning joining and associates. a as They to both daily is and existing and for hire me, that on that a see it as key lot draw a that's that this well about heard well others and candidates Gerry, our new it and as a basis associates fundamental new earlier organization attractor. You the and live breathe

continue journey effectively. we the plan to operate for on that able and to So, be

Tim Perrott

That's great. narrative to I'm going And That's turn message our now a key excellent. from topic today. that really a to is

our our Specifically and I would business say is DNA risk low ingrained in model.

So, you operating word. the going the for Gerry, will question can elaborate Corporation I'm low and ODP model? it directly word read on a strategies prioritizes to use specific cost this as

Gerry Smith

I Yes, Tim. said think, well, you it

If operating my of out the delivered. this you here things XC the million mean go tenure culture. of is I team most did what our that the this done think hadn't in but back here in difference I'm we taking and in sort of last $XXX proud five one and that, costs of it's part years we in of company, that, has the

Prentis Zoe we of system. a type management Kevin have our in but XX or BMS looked I piece, mean dough budgeting in, took DNA. different I involved but streams Anthony work business and said our benchmark, and zero-based We as at I in I my what approach, before and of rigorous John all were and call Dave, it's intimately joined,

out methodologies challenging drive or cost transformation cost Sigma or teams each business. to Six our we how how this we other, Lean teams, are projects do differently, use do workout of drive All of this are challenging

our productivity, took We and think ability it, we cost well advantage the out we continue stronger. through DNA, and wins, talk as model while, I say at sheet model. us the about, balance to you of it competitive balance the about strong next helped cost for and we're what's because pandemic our it's does. a buyback billion have this a it's business drove $X ability we what With position share it's we're year, running a now the execute and And huge our always about all and part to well. started all but going next, when can we for I better. us low look going we it it to forward. do else efficiency, it looking fuel take And cost-wise, think at now It's sheet low

Tim Perrott

wins. cost Excellent. model low Yes, the

Gerry Smith

a few why comments? you don't Anthony, join

Anthony Scaglione

Sure.

one place the first the walk realized I ODP and joined and It's I relevant is, embedded sat with ZBX he We're DNA. type the initial And my exercise. business reaction forward. So, when Gerry okay. one-time the going over drive they it through into of put to programs most think really move and me the to years was a was and little ago. cost on in that continue I two I

important I think working shared every here. Low ways From constantly operate processes. way looking cost specifically, services that's the the better of perspective, a most each we we're redesigning is at takeaway day. and

looking with out. place ways our internal to work engage to We has eliminate put and great, have we're great tremendous always that team at to automation drive further in cost some initiatives a low value partners

encapsulate part So, DNA low you best is cost probably the our the of way do Kevin, model. business want to to?

Kevin Moffitt

a distribution at up costs, line, picture, time seem that things When single even make thinking across to outstanding Yes, think process what's Dave management our change cash has flow, an that visible the I real make little really X,XXX really process stores individual Every footprint. the drive travel well. especially the And P&L job decisions small. that decisions piece you're been mean, organization. look of as and of of talked items you expense through tremendous of part done every all big you not chain over and estate line are you when make optimize making I about as the obviously but our optimizing as about they our we've every gone the detailed of we've can and right, most we add value as to manage can visible expense, little around

proud that versus most trying One and to associates on is in really and of things doing repetitive time client of amount maximize the focusing in on tasks. the menial operations our efficiency we're focusing engagement we of have

work lot in John well. done And of on efficiency and know similar a so, some chain things I as operational you've we've done supply

share You want that? to

John Gannfors

Yes, focused a operating mean you think cost, right. absolutely. on to I have chain, I be large supply

cost continuous embrace a the of fully model. we so, And drive We improvement. low culture

teams drive of business. Lean efficiencies hundreds the that to have projects We Six Sigma drive of out

us just proprietary working in have also algorithms the to time retailers. allow that We minimize capital for

Tim Perrott

John. appreciated, Much

John Gannfors

labor Right labor really costs pass great of managing to we've challenging and a done really maybe environment. it in job I'll you. and And a Zoe

a You Zoe. the little can talk bit about across enterprise,

Zoe Maloney

tables. and in and around a back zero-based organization around cost topic those passionate but such it's Yes, some able see the of associates pride the and last initiatives make round can the this associates are the budgeting operations, and really we especially Kevin's efficiency asking retention that really this we organization, going team John's challenges to and as low automation help segue, in empowering even driving having having we've we differently feedback the part do we have it our where with a years. in able help and organization about model was that's more changes, we pause our market from and and the for where again business, of organization. look the mitigate rest great that in to do of been so, our few business, feedback. the elsewhere entire very the get to was times chain really for over not number our critical. of to team what Gerry point opportunity so DNA efficient are stabilize across I labor And asking become The that And did proud where a and needing we of to really waste, super of supply unleashing and been only

Gerry Smith

over comments. give that a don't You've of a of cost this year changing that's Hey, few but perspective. Thanks, from job business that profitability a model, A low taken why lot love of Zoe. and trajectory Dave, great comments? you your done

David Centrella

Yes. Thanks, Gerry.

business took the from I of one over the of So, things kind business, was bottom. the first at I when look did top to

kind were increases. how opportunities the expense there on and we're rethink you and looking blocking to need also well passing we're structure. line of rethink there just lots So, how to a The kind to opportunities top of cost but do from was an things lot of it at that of the of kind tackling,

business. the copied Kevin was things I friend rolled your here of I CEO of over One the my out, being

So, bottom. to top dollar every be business. of to the ODP they Group need to single person every to spend. within the knows They They that they about their Business CEO need think have think

and travel mentioned Kevin entertainment.

bottom have dollar that single they single line. spend have thinking every We in to our every to matters the person organization

a we're got little our find frankly team So, the around working to We're whole try folks why Prentis, with working working we're the and a at aligned from thinking making Zoe, team together Varis with speak we've cost. John our end the optimize platform? deliveries? partnering grow And to our appropriate you users don't organization chain lower levels. can it. the we bit and with we're Prentis' how hiring customer Varis how about We're ways to to quite sure really perspective, supply paying

Prentis Wilson

Yes, I'd be happy to do that.

of and for about grade we've and to is Okay, platform. you serve a be and design BXB we suppliers built sort cost the the how the it first it built our essentially to that compliance and built drive we've architected growth. We Varis it customers way lowers This helps we've commerce built their how able BXB think if such platform.

I on thousands benefit and driving that, our incremental example exact and revenue, us fallen playbook have thousands revenue, but gave this at that how ODP model to so, that other frankly serve. can who suppliers incremental picking you in that with it there's the also of platform, And customers our ODP use up same as around cost drives lowers but just from earlier we're

So, a expand growth they and that to as benefit don't have from invest and fund and benefit platform the in, of from then that they they're commerce getting comes grow, it out well. the they get a get

Tim Perrott

to commentary. turn side everybody I'm the for going consumer Thanks to the on Excellent. And a the table for over more minute.

Kevin. We lot you But our yet store have rationalization from talk heard about optimization. and did a

part Kevin, regarding will been The for rate and is the footprint transfer business earlier kind of you our store optimization remaining traditionally store what flow. stores generation rate. XXX the and Why footprint being it's XXXX to our of than transfer strong cash cash of so? So, your aren't and completing question kind change XXX

Kevin Moffitt

their challenging to as empowering expectations local years. treating financial their the for opportunity is of thrilled which results. priority, incredible And contributing years We've we very across to to and team last of maintain future our is ODP locations about organization. planned. want excited done ago the take really generate businesses, Office associates and we've that really And to the about the a create thank one we're our health operations CEOs talked say the job I number of and I and locally teams and EBITDA run first, organization I the more Well, power committed Gerry on to really able than and who Dave exceed significant and and originally value. business our and retail many generated during amazing it's to Right. cash investments to just portfolio an to our Depot businesses positivity, aligned want our very, have three been result shareholder just

including for looks terms and data are profitability, been even we extension run stores and targets a individual an sales, lease at about for store a that well in that process decision, number information thorough As disciplined local closure as of that that comes renewal years store or up very for market points, the some the transfer traffic, or market. as we've activating

localized together extremely way that this we We market all find we're point. generate decisions make So, that most that decision process to trying all optimal around In take chain information led at the have those really and location, can competitive that the the value we it. and profitable and that through the demographics. cases, to of an

are In EBITDA positive fact, our over of currently. locations XX%

Tim Perrott

That's testimony leadership great you the and and organization. and team

Kevin Moffitt

Really, it's talks about culture. that

Tim Perrott

externally but the story. of our probably how not XX% That's people think

Kevin Moffitt

and to I many are surprising accountability built. we've And people think really show be the the talk it. about client would does that and to that results culture of there engagement

years. excited on record look more integrated Gerry business profitability look a last We're implement and perspective, as even company sustainable results an between future. omni-channel the have have said, in know, forward as several we the we've to positive integrated and the for we to a customer So, on over and first that generated our retail the focused satisfaction an connecting impact more And healthier from stronger history margins stores. we omni-channel e-commerce and really company's dots new and time the strategy the high make

Tim Perrott

appreciate or three and but over going the of now doing plan? Kevin. great. long-term a of question that. We've of I the business, gone part through years Thanks, ODP strategic I'm Gerry. divestitures. lot of divestitures parts of our turn still Excellent, This two the our years question to involves a M&A to Thanks. past a review

Gerry Smith

excited I want the First, to Tim, by strategy. answer four BU this we're first.

super important. and Depot. up set structure a We I agreements these where commercial ODP between think units, it's are and Office independent there's Veyer

there's top as a make expenses. that is never the efficient there transparency corporate talking the retailer, I looks we're we've have I lot other we have sure of a all three but and valued a had we're units that structure that transparency, capital We and opportunity keep think value well. allocation before But about as have expansion multiple over a

we as billion value. Not number just on CEOs, and in I I the showed, FTE. plan Now, have testimony do what focus to our we Depot do one had Office at do how of maximize think from I also that great the here shareholder our short-term long-term repurchase growth thing have as a and slide $X also investment well. share is we today that but a They maintenance some and capital the

And will always way will look And the we at filter committed is opportunity evaluation an well. first look shareholder that not our we for us time use driving have value. the maximize can our balanced so, help what's the Tim, shareholders. gives it's them it every they to tell structured, to We're I shareholder at we as and transparency value. never opportunity being That's before we think that

Tim Perrott

look of lot four at here Speakers] BU opportunities the and what a Right. shareholders process, led forward to structure and What you, the possible. BU great. but as Gerry, value model that's our first do And, in creating the going question. time the for unveiled the And lens for great was really terms excellent. of in-depth of most is to have our I'm four the That's going stick they a and [Multiple with Always strategies, -- because, today

Gerry Smith

learned one ton. be most think our for people the process we effective learn. potential it supported why so I captured much a way we job. to going discussed and questions and for have Well, and learnings potential great great think We all effective Board to of is We went so done we Board and leaders better learned those through we're back And asked from our observe for we sale together? a of much learned separation this, and think again process, we we that and

that's has him as than I push and done Dave day, asset, than valuable them digit continue of job. operated with want those that I job. value to fantastic and ton a and unlock that. Wow! for for are a we having that And five We an have in and knew customer piece think so were Number out there some you said I that's I, do was and is, even creating we just the to opportunity with looked they future those assets. value partners more? low-cost with, How where obviously model, conversations we need And because, have as most companies. I differently going the of a is We to done a customers there, point him, thank federation value our literally we is nickname to, want and our produces growth. really sales relationship operating us. business We're five. And there. excited said, a values and we're leaders about Anthony tremendous has higher second customers but some I through every want company. we we the think this federation have I it's that well. this of But saw growth one for four engine of those a the the operating cash a mean the relationships process, It's the for

these of is and and for for I said, up, let's a it's as built looked platform platform." And and an We the investments a Varis go did make to, be there well." successfully. let's We kept a the sheet having mean, sure procurement $XX BXB then, investment ability at team they Veyer our we short-term protect let's balance that. "Hey, "Hey, team obviously lastly, didn't strong, -- of assets this held and time company, period Dave's not we here, investors just lever billion build of Prentis all that is and BXB learnings. bunch that the his business a those long

and to key, the that. learning Back to going we're leverage go

go we're the and four with to future, road, near and on to go super talk BU a lot the starting we're we're -- the a retail very of out today super-excited but and in going our with multiple brilliant retail-focused Kevin his with the because and So, structure, expansion, And we a investors the done now importantly, multiple, most growth. happy business. be a has right driving should for job transparency here opportunity

we together plus well earnings for value opportunities I share going things other three create had business. our three the next because these share over is cash engine is, a with drive all as the deliver going these as value nearly value, culture is -- reality buyback to value all to to specific have be We doubling drive the that's the and years but target, our on won't to well. going per

Tim Perrott

today. to Anthony's I that I'm different in and Excellent. and for the presentation model maybe BU appreciate going Gerry, with and stick topic Thank four from you, now right a perspective

structure a from heard we capital to a over moving think BU single structure. time four capital I

does So, the that question transition what just is entail?

Anthony Scaglione

Sure.

comments maybe first I'll the echo So, Gerry's transparency. just up, around

grow tremendous our supply I for. ability element. hopefully the chain we're adjacencies, both And structure, provide to gives than us investors new to front of think existing today, look capital that opportunity see important grow our the what when we The probably that's assets, to we're forward. going in us our a is and an to ability clearly transparency known really And investors opportunity just much more there at investors. a

we to start at look an opportunity as a think through stand-alone structure to a my holistically also, over to capital to ability enterprise be in really opinion, more from tactically lens, sheet, stand-alone gives about that the it take time. an perspective, more balance strategically the and we drive As perspective, the assets more look strategic operating is going capital structure this so Unit's us the at unit, really Business from but

Tim Perrott

And of you. Prentis obviously of four newest is that platforms structure one Varis. and part BU our Thank Great. is

for but in forward funding you jump to Varis? commentary, possibilities plan. So, help And The about Varis the Gerry. external heard to question this towards, are more and can fast for external I'm others direct looking question we is, why other going funding on then for

Gerry Smith

Varis extensive I look have we is unique met in We technology Prentis, lock had mean, need. It's like. I First this a and BXB super-excited asset is a both procurement this space. experience asset. the addressing vision and team. would platform say market huge what it should am Prentis a by I in thing unique I

super-excited And that. we're so, about

in what the and tech unusual. well. proves to do public provides of because value for Now, was again, start-up a the future we But company, is doing we're a validation which as a get within it company is growth, lot though need this future platform

some a win-win shared validates And the process. also value we shareholder statements believe some the do sharing assets, investment leveraging said just our it a perspective in started reference But proposition, future we gives And value. shareholder us of these the value the will it think again, that from again well. we've driving be cash because point a becomes And for in saw of a I opportunities as by flow partner. as you it

we transparent As that got we've super continue Weinberg I've happy team. here. progress with make said, bank a to be investors we'll investment and in great Perella and update And with our as

it's you I some think and I well. but have comments as all, know a win-win Anthony, for color

Anthony Scaglione

Yes.

that allows Gerry, it the and now of platform. that think an unlock think could and I enter point I for also investors provides an it it us value, ecosystem provides reference accelerate a to

a are all the win-win. this that partnership win-win attributes these make So, with Perella

Tim Perrott

And the Excellent, suppliers. a stay on a for topic Varis on getting minute, going are questions because lot Varis's to of excellent. we I'm of

suppliers Varis to going turn And what has we Prentis to going question seen? sell early want on to been, traction Varis I'm to question Why have I'm and the read So, specifically. how this would platform. the

Prentis Wilson

great a Yes. That's question.

out, in we're of once how connect, ones. way, this support particular you And durable it segment, the at should they doing is to extreme a about look helping sort grow so the BXB of these suppliers, clear. and particular, and we're we mid-market pretty in doing driving But we're And we've difficult very in And how the buyers architected I growth. think brings fostering when team know super-interesting understand And really platform their between be folks that's suppliers ours, Varis to of when that to compelling really, them value doing, think day minute came and there of for And point particularly what building a it and when we've made is Amazon really are a bit suppliers, a from going started and when exactly exactly I important create it's you like -- we're customers what are we a customers. it's the takes one, commerce both, on bunch we're to clear buyers you're the up transactions segment value and that suppliers relationships show that it we're customers value. sort when platform from business we're a would lot that. it.

growth. meeting them about efficient were four back grow. over we supplier platform sort of Incremental we an million engaged strategizing In growth cost and just last particular additional didn't that $XX.X super-efficient to mean brought opportunities last week them it them supplier incremental to and to after a with months we we were revenue talking and just growth of fact, and for be were the that. we as to anything saw, and And with look able I it's we as go

to-date So, you look wins. the progress, I when with the be couldn't And momentum. huge, more thrilled at and huge momentum

works, understand suppliers platform how seen once fact super-strong the growth. In it and we've

suppliers our next full categories I that hit now, revenue the the right look and suppliers breadth at to-date, enough year. acquired enough goals to acquired for we've when fact, In we've

And top platform. on just expanding that and so, now we're that adding of

triple to So, when are I is we win, at suppliers What a and we suppliers, what super-interesting,. look start that, call to start whereas engage. see see even the they we

about understand, want they and the growth. they then First, growth, then to the excited see understand once they they are

these works customers, for and We our they're we the want Now to at "Hey, use a And then thing from many how ourselves. are because benefit thing can start becoming they it." buy to we suppliers to supplies like, minute, look this this it of of to think we idea this see we want wait use super-efficient.

so from solution customers a moving more more that than get segment platform for couldn't value in we to thrilled about own value now, actually there, Varis there. Your customers. ours they commerce is certain because commerce their their And know they of can better they're be the

Tim Perrott

Sure. Got it.

Gerry Smith

couple a just Tim, And of comments. quick

Tim Perrott

Sure.

Gerry Smith

mid-market to Why supplier a it's both perspective that's for from way model expenses. value than the creating From successful, small knows, It's as the customers, well coverage less and a hard suppliers. as perspective, the buyers for and business as well. go-to-market, it's it, medium cover Dave as

Tim Perrott

Yes.

Gerry Smith

customer It's And it's really of of perspective, a to buy they're from name subscription-based I won't not a name, customers. dollars hard. I a, mean, go enterprise level thousands model years. expensive but the that's a hundreds

Ours is that a tremendous and value subscription value and but sellers. model, that was brings both potentially, to work. think GMV prop The small a buyers for has I

segment I super excited for retention. and we're model it's superior think a the business by this

Tim Perrott

great. That's

that. I in hold more affect term so think excellent. either which and I'm going so lightning Prentis, the I to this will [indiscernible]. and use stick is but will that with for minute now is I question a capital. tactical inventory think when that's No, we appreciate supplier/buyer heard working a And for of Varis this they bottle, from a the today Varis

Prentis Wilson

look, a Yes, we're platform. technology

and focus connections we're between a and in driving and establishing focus right on and on transactions particular relationships innovation facilitating is suppliers Our buyers now that area.

plans or inventory. own inventory We have to in no invest

do We we'll have our to so. continue them on platform to let do that world-class and suppliers

Tim Perrott

I you. thank I'm to And turn now Well, Great. appreciate to going that. Anthony.

we the business of in some of I'm on today whoever three-year range our we're questions the Day targets, Some portals, have plan. we at is our web that and put longer getting targets the that in the meeting -- confidence about out some Investor going three-year to up and what one night. -- is that cause what drive with keeps along another you our outlook our goes And could What to here that differ?

Anthony Scaglione

BU multiple a we you market, for of up we seriously I lot a minutes few routes night, me today's in the have can what as but to each powerful saw presentations at of have across keeps we portfolio. confidence have go strategies and

business we pull balance is there to the have on We sheet as cost the low in levers. our tools have embedded that model and well

So, I in environment. any could we nimble think remain

Tim Perrott

provide I'm excellent. relates tuck-in just another CapEx M&A? for additional you as to stick Great, CapEx, any going to it clarity could you of one. is this with on But and the

Anthony Scaglione

Sure.

I no that's opportunities as proven of focus area. that's It's at a to So, relates foremost, that remarks. strategy it business material key look in to first a to M&A, and Dave's and federation as strategy going continue be a think the We'll been lot It's works. a as we his and And Gerry see strategy. mentioned a cost, acquisition strategy opportunities. mentioned prepared lower Dave in

We also rest with of the the see opportunities portfolio.

CapEx we've can years well. we've I when us extremely you're accelerate to consider and And are we that back, look If about been there's think CapEx, that, partnerships, joint that going help very disciplined but I as think dollars been ventures the accelerate, two And those I've transparent going been here. forward will see in where always going. disciplined the in CapEx in general, as

of plan us that's three-year combine to line confidence business flow our in historical results. capital with allocation when in cash the we're our levels. and model achieve CapEx shareholders the the that you with that back the we a that So, going CapEx and with out have to the investments laid our And gives we've generation confidence

Tim Perrott

Great, super.

We on are running time. tight

that So, to do industry to to hit have given trends. you going these flat or you positive quickly. I'm hit question same-store do a this Why try just sales? confidence Kevin, believe you, can you for the is your why

Kevin Moffitt

industry, grow highly positive flows and key time and mean the competitive is have challenging work to in I ultimately we stabilize our do maintaining us which is over a sustaining why to Yes, sales. cash

that. aligned Our is entire organization to

If our of to location, And you every our grow any are in primary promoting sales into innovative stores, is retail all we go know that program business operationally incentives aligned theme, associate out associates the our goal to at that our day. including several every bonus ago. of our very all rolled that that years

and promoter seen of scores programs achieved shopper per as Gerry, a NPS. know, timing on our but is last those We've week the everything. you growth record We've of the several of NPS new years, sales impact actually basis XXXX the net about last points high over retail score XX.X talked in and

our through results have know to acquisition the come our can So, We traffic that that we we patterns omni-channel retention. we'll I talked our and working. get about. that know strategy engage demand and into improve customers really to this are generate improve we If customers customer can The we is to have and positive and the our strategy improve is if connections with clear, strategies working. stores, really we

success retail to as of pickup attractive and proud excitement are these guarantee expand speed products united day that our really it's And team high. going know we a programs. very to need customers really portfolio, to so those terms of forward, supports omni-channel have and the know improve chances with omni-channel have but clear of and to our we in-store innovate and we be integrated in strategy, more best-in-class it. we never for easy, our and our we We and the future continually look our that experience, We're in easy. as No that our

Gerry Smith

see in know a dramatic store all model going It's early culture, to low up great conversations. the long Net how mean, entire from glide walk time, ground. leadership, from I the to test, the engagement. improvement. great Tim, I on will turned business the, retail had time a with to completely around I -- took the Kevin I some we heading customer the used be driving store, to the and but phone Score in the want path for are team, cost We team, take over cranky this was to hold thank time BXC Promoter

Kevin Moffitt

would direct Gerry. conversation, I some say

Gerry Smith

plan the But world-class, and This a huge now place I want it's thank is Score as super us. on -- engine to a it's omni-channel and lease of engine, that advantage Kevin's this is cash just Net XX mean also the for a team I over advantage but to that because in never bullish opportunity going the we've yet. excited well. taken Promoter I'm three-year competitive

Kevin Moffitt

Thank you, Gerry.

Tim Perrott

four offer go through to as I well restructuring? the that. the going employee Zoe. trended you and question How Kevin, sale This is to. Gerry appreciate attrition BU Thank has as

Zoe Maloney

excitement model BU I'm business across heard over the hours, of the is the around and you and so lot there momentum as inside of and four excitement question, great our around there's creates additional areas for last much it a couple Yes, as our well and organization employees opportunity smiling, all because that. different of

market to associates our shows areas BU now, in that in mentioned employment. especially internal continue the for maintain some traction earlier our so, stayed being it, around Kevin's that excitement that the We'll And to continue around of interestingly, challenges important retaining super in that terms we despite to et I about always through confident talent and pretty our and turnover the be the data stabilize, able we'll but hot this to of four John model. talked and we're able like monitor steady has cetera,

Tim Perrott

it to Well, closing I'm Excellent, technology more one Gerry turn Veyer. question was for excellent. supply John you for What I one chain? I going to going then thoughts, turn have this in but investing to and are at to

John Gannfors

Yes.

And in we We're sell is, our What So, going investing in not more it's that have that what technology into a stack. investing modernization is to it's capacity. really capacity. roadmap.

capable chain. supply ensure roadmap reliable to the So, modernization we us have a allows

will to have and enhance and these And baked continue ensure those lot capabilities, great plan. management, to transportation we're we'll are cost to that management, our and value planning we're allow provide technologies to and network in our all and in are of this differentiate into drive tools continue We allocation, about already a us that areas that. three-year warehouse partnerships and those design space leading excited invest companies leading really competitive customers these

Tim Perrott

Well, That's to it going any I'm for always one. Oh, great. closing to Gerry thoughts. turn great with that over

Gerry Smith

thank you And want I the call my us. Sure. of the thank team. on for today people all, for first joining to

here low a world-class team but business. we is going that well before know, is, on cost our you delivered I We've it to doesn't don't model. and I our how challenging how Thank have success drive as through world-class matter. a We're testimony think, the focus -- whether operating team. and and times you. It's deep team we think recession to

to I is with forward go Our the excellence, BU operating four opportunity the think tremendous. structure

of You across four that's saw transparency to think actions executing the of this of with this the EPS I before long-range create opportunity And importantly, we We're of going That's be and to just the value pillars shareholders, to $X creation you've billion drive seen and our louder expect value, were as the we also repurchase, recommitting as nearly is -- have as there will -- lot than times, I've share an a today. and believe businesses. expect going said value well. the well. that we a there's huge a also transparency, our value words and we each to for all of to a doubling across to expansion plan. very for that with is again speak our lot multiple opportunity have of I'm value aggressive number

So, and we have future to and today. thank commitments Look here you Thank I you and near and our joining day. to forward well. We're look everyone, excited as in our a are Anthony, us against for meet to great you, talking Tim. delivering shareholders that forward very the

Tim Perrott

you. Thank

The ODP Corporation (ODP) 2 Nov 222022 Q3 Earnings call transcript