(1) |
As presented throughout this release, adjusted results represent
non-GAAP financial measures and exclude charges or credits not indicative of core operations and the tax effect of these items, which may include but not be limited to merger integration, restructuring,
acquisition costs, and asset impairments. Reconciliations from GAAP to non-GAAP financial measures can be found in this release as well as on the Companys Investor Relations website at
investor.theodpcorp.com. |
(2) |
As used in this release, Adjusted Free Cash Flow is defined as free cash flow, which we define as cash flows
from operating activities less capital expenditures, excluding cash charges associated with the Companys Maximize B2B Restructuring program. Adjusted Free Cash Flow is a non-GAAP financial measure.
Reconciliations from GAAP to non-GAAP financial measures can be found in this release as well as on the Companys Investor Relations website at investor.theodpcorp.com. |
(3) |
The Companys outlook for 2022 included in this release includes
non-GAAP measures, such as adjusted EBITDA, adjusted operating income, adjusted earnings per share, and adjusted free cash flow. These measures exclude charges or credits not indicative of core operations,
which may include but not be limited to merger integration expenses, restructuring charges, acquisition-related costs, executive transition costs, asset impairments and other significant items that currently cannot be predicted without unreasonable
efforts. The exact amount of these charges or credits are not currently determinable but may be significant. Accordingly, the Company is unable to provide equivalent GAAP measures or reconciliations from GAAP to
non-GAAP for these financial measures. |
(4) |
The Companys outlook for 2022 Adjusted Earnings per Share does not include potential impact from the
planned tender offer. |
About The ODP Corporation
The ODP Corporation (NASDAQ:ODP) is a leading provider of business services and supplies, products and digital workplace technology solutions to small, medium
and enterprise businesses, through an integrated business-to-business (B2B) distribution platform, which includes world-class supply chain and distribution operations,
dedicated sales professionals and technicians, online presence, and approximately 1,000 stores. Through its banner brands Office Depot®,
OfficeMax®, ODP Business Solutions, Varis and Grand&Toy®, as well as others, the Company offers its customers the tools and resources they need to focus on their passion of starting, growing and running their business. For more information, visit
news.theodpcorp.com and investor.theodpcorp.com.
ODP, ODP Business Solutions and Office Depot are trademarks of The Office Club, Inc.
OfficeMax is a trademark of OMX, Inc. Varis is a trademark of Varis, LLC. Grand&Toy is a trademark of Grand & Toy, LLC in Canada. ©2022 Office Depot, LLC. All rights reserved.
Any other product or company names mentioned herein are the trademarks of their respective owners.
FORWARD LOOKING STATEMENTS
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including statements
regarding our preliminary second quarter unaudited results and our expected full year guidance. These statements or disclosures may discuss goals, intentions and expectations as to future trends, plans, events, results of operations, cash flow or
financial condition, the potential impacts on our business due to the unknown severity and duration of the COVID-19 pandemic, or state other information relating to, among other things, the Company, based on
current beliefs and assumptions made by, and information currently available to, management. Forward-looking statements generally will be accompanied by words such as anticipate, believe, plan, could,
estimate, expect, forecast, guidance, expectations, outlook, intend, may, possible, potential, predict,
project, propose or other similar words, phrases or expressions, or other variations of such words. These forward-looking statements are subject to various risks and uncertainties, many of which are outside of the
Companys control. There can be no assurances that the Company will realize these expectations or that these beliefs will prove correct, and therefore investors and stakeholders should not place undue reliance on such statements.
Factors that could cause actual results to differ materially from those in the forward-looking statements include, among other things, highly competitive
office products market and failure to differentiate the Company from other office supply resellers or respond to decline in general office supplies sales or to shifting consumer demands; competitive pressures on the Companys sales and pricing;
the adverse effects of an unsolicited tender offer on our business, operating results or financial condition; the risk that the Company is unable to transform the business into a service-driven, B2B platform that such a strategy will not result in
the benefits anticipated; the risk that the Company will not be able to achieve its strategic plans, and the high costs in connection with these transactions may not be recouped if these transactions are not consummated; the risk that the Company
may not be able to realize the anticipated benefits of acquisitions due to unforeseen liabilities, future capital expenditures, expenses, indebtedness and the unanticipated loss of key customers or the inability to achieve expected revenues,
synergies, cost savings or financial performance; the risk that the Company is unable to successfully maintain a relevant omni-channel experience for its customers; the risk that the Company is unable to execute the Maximize B2B