Wed, May 7, 5:02 PM (10 days ago)
**The ODP Corporation (ODP, NASDAQ) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $1,699 million (down 9% YoY from $1,869 million). - **Gross Profit:** $360 million (down 12% YoY from $408 million). - **Operating Income:** $(32) million (down from $41 million). - **Net Income:** $(29) million (down from $15 million). - **EPS (Basic):** $(0.97) (down from $0.42). - **Cash Flow from Operations:** $57 million (up from $44 million). **Profit Margins:** - **Gross Margin:** 21% (down from 22%). - **Operating Margin:** -1.9% (down from 2.2%). **Cash Flow & Earnings Changes:** - **Cash Flow from Operations:** Increased by $13 million. - **Net Income:** Decreased by $44 million. - **EPS:** Decreased by $1.39. **Quarterly Performance Discussion:** - **Sales Decline:** Driven by lower demand in B2B and retail segments. - **Cost Management:** Reduced selling, general, and administrative expenses by $35 million. - **Impairments & Restructuring:** Recorded $38 million in asset impairments and $48 million in restructuring expenses related to the "Optimize for Growth" plan. **Trends & Uncertainties:** - **Macroeconomic Factors:** Weak U.S. economy impacting consumer spending and business demand. - **Tariffs & Trade Policy:** Potential new tariffs on imported goods. - **Restructuring:** Ongoing restructuring initiatives to optimize operations and reduce costs. **Future Operations Impact:** - **Store Closures:** Plans to close retail stores and distribution facilities, reducing the retail footprint significantly by 2028. - **Capital Expenditures:** Estimated at $72 million for 2025, funded through cash on hand and operating cash flows. - **Share Repurchases:** $725 million remaining under the current stock repurchase program, with a moderated pace due to macroeconomic conditions. **Segment Performance:** - **ODP Business Solutions:** Sales down 8%, operating income down 32%. - **Office Depot:** Sales down 11%, operating income down 10%. - **Veyer:** Sales up 89%, operating income down 11%. **Liquidity & Capital Resources:** - **Cash & Cash Equivalents:** $185 million (up from $166 million). - **Available Credit:** $468 million under the Fourth Amended Credit Agreement. - **Total Liquidity:** $653 million. **Dividends & Share Repurchases:** - **Dividends:** None declared in Q1 2025. - **Share Repurchases:** None in Q1 2025, $725 million remaining under the current program.