So we've built a DNA here in our culture about driving cost and being efficient and are very pleased with the progress we made across not just -- our finance teams have done a tremendous job but all our organization has done a tremendous job of driving to efficiencies and productivity and even this acceleration of work-from-home is, we found all kinds of opportunity of efficiencies and productivity that by being in a work environment, you did realize things we didn't need anymore. The outbreak of COVID-19 caused significant business disruption for our B2B customers and many schools. Office Depot, which belongs to the Zacks Retail - Miscellaneous industry, posted revenues of $2.78 billion for the quarter ended September 2019, missing the Zacks … We're not going to add G&A for the sake of adding G&A. Thank you, Gerry, and good morning, everyone. Office Depot, Inc. (NASDAQ:ODP) is a leading provider of business services and supplies, products and technology solutions through its fully integrated omni-channel platform of approximately 1,400 stores, online presence, and dedicated sales professionals and technicians to small, medium and enterprise businesses. Included in the non-cash asset impairment charges was an impairment related to goodwill and intangibles at CompuCom and in our contract business, mostly related to the COVID-19 impact to overall business conditions. But a huge focus on low cost model and we'll continue to drive that in the future. We have direct supplies serving our large enterprise customers, a robust e-commerce platform serving both businesses and consumers, many retail locations supporting those products and services and about 6,500 technologies support personnel including our tech field force serving the technology and service support needs of our customers. Now turning to how this is helping us navigate one of the most challenging business environments in our nation's history, please turn to Slide 6 for business highlights. So depending on the composition of products we can shift up and down relative to whatever our customers' need and have that capability, which is why, I keep saying a platform is important because we can offer more than just our current offerings, we want to continue to bring more and more adjacencies on this to -- and your cost of distribution that we deliver in five different things, five different categories versus one category, you're going to get scaling in that business as well. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. We also sanitize our facilities and required our employees in our supply chain and distribution operations to wear Personal Protective Equipment and continue to promote social distancing by staggering shifts and increasing space in common areas. The launch of PPE added to this performance. So we think there's an opportunity for both channels to actually pull through. Looking at Slide 11, we highlight the performance of the CompuCom division. During the quarter, we recorded charges totaling $456 million, consisting of $401 million of non-cash asset impairment charges and $65 million of restructuring cost, primarily associated with our business acceleration plan and recently announced Maximize B2B program, which I will go into more detail shortly. For DBI shares: Computershare Phone: 1.800.622.6757. But again, it's always about getting the right cost structure in place and making sure we deliver the right essential products and services for people. And so, we're always -- Maximize is -- one of the primary goals of Maximize is to drive from a fixed cost model to a low-cost -- to a variable cost model that allows us that flexibility, although this is never repeated the COVID experience but we believe this has demonstrated the ability for us to pivot and successfully manage cash and cost in a very, very difficult environment. That said we remain in a position of strength to not only continue to address these challenges but also to position us for future growth. Well, thanks for the question. The CompuCom division reported operating income of $4 million in the second quarter of 2020 compared to operating income of $1 million in the prior year period. We also added new customers for our PPE category as well as CompuCom new business wins continue for both service contracts and products, adding about $250 million in expected lifetime contract value during the quarter. whether it's going to be a hybrid model or school from -- from home model. Welcome, Anthony. In our retail stores, we've installed counter shields and require employees to use masks and gloves to help protect customers and employees during interactions. I think as we look into the second half and given the unknown and one of the reasons why we continue to withdraw guidance, we're seeing improvement. In total, we generated $2.2 billion of revenue, down about 17% in the quarter relative to last year almost entirely due to the effects of COVID. Have a great morning and again, thank you for joining the call. Steele will develop and execute Office Depot's investor relations strategy, serving as the primary interface for management with the financial community. Before I turn it over to Anthony, I want to make a few comments about our focus and position going into the second half of the year. Webcast Transcript. Peer Group: Retail. Higher average order volumes and sales per shopper along with our diverse product mix and channel availability helped offset some of the negative impact to store traffic. Save on printer ink and toner to keep your office efficient and productive. To expand upon that we combined our sourcing supply chain capabilities with balanced routes-to-market to reach our customers, we created a platform that our customers can access to most appropriately satisfy their needs. We will also continue to make strategic investments in our supply chain and B2B capabilities. I'm also happy to announce that we are joined by Anthony Scaglione, our newly appointed Executive Vice President and CFO, who will provide additional details on our financial results. We drove an increase in demand for essential products to support work and learn-from-home environments as well as essential cleaning products including PPE to address customers' needs posed by the pandemic. Gerry P. Smith -- Chief Executive Officer. May 17, 2018 1:10 PM ET | | About: The ODP Corporation (ODP) by: SA Transcripts. We hope that all of our listeners and their families are safe and healthy. Thanks for that and again congrats on the PPE, it does look pretty successful so far. Turning to 2Q highlights. ©2018 Office Depot, Inc. All rights reserved. By continuing to browse the site you are agreeing to our use of cookies. We have net new customer wins in the quarter and a significant amount of renewals. What else do kids need from a learn-from-home or an education perspective, what do remote workers need, all of us are in that environment now. We also strengthened our senior management team with the appointment of new team members with significant experience in managing transformation efforts in the B2B space. As I mentioned, the outbreak of COVID-19 has created one of the most challenging business environments in recent memory. Dec 02, 2020. Reported sales in the quarter for our retail division declined 9% to $912 million. back to top. I will start by highlighting this as shown on Slide 5. The strength of these assets along with strong free cash flow growth and the ability to generate substantially higher EBITDA growth over time was very compelling and I believe there is a tremendous opportunity to create significant value at ODP, expand our multiple and deliver substantial long-term growth. That concludes the Q&A session for today. Obviously, there are some categories that are lower than some of our core suppliers, but there are categories we're looking at adding that are also pretty margin accretive as well. Just to add some color on the cost side. The decrease in operating income versus last year was related to the impact of COVID impacting sales, product mix and higher overall distribution costs. Today's call and slide presentation is being simulcast on our website and will be archived there for at least one year. To take advantage of exclusive offers like these, join Office Depot® OfficeMax® Rewards now! Thanks for taking my questions. This action simplifies our corporate structure and begins to better align our assets with respective operating channels creating more flexibility for the future. Our actions ensured businesses and consumers were able to procure the products and services they need across our platform. The immediate effects related to the COVID outbreak also impacted sales performance at CompuCom in the quarter. This balance helped to partially offset the negative impacts related to the COVID-19 pandemic. Designer Brands Recognized for Commitment to Women in Leadership . I mean, the entire focus is we -- as I always say is that you need a low cost model to win in this space. Just maybe what are you seeing so far in back-to-school? And in our CompuCom division, despite the near-term impacts from COVID, which continue to the second half of the year, we believe that CompuCom is in the right place, at the right time to leverage their ability to support remote workforces to help maintain business continuity for our customers. For example, back-to-school season's upon us in Q3, which typically generates an additional 5% or more demand on the top line. From basic office supplies, such as printer paper and labels, to office equipment, like file cabinets and stylish office furniture, Office Depot and OfficeMax have the office products you need to get the job done. Having been classified as an essential business operation, our businesses remained open throughout the pandemic. Lastly, we have a very large sales marketing presence throughout North America and has forged strong relationships with business enterprise customers creating strong brand recognition with the consumers built on a reputation for quality and service. But depending on the overall reopenings and our commercial and education clients, they're going to look to us for different products and services. First, we completed our holding company reorganization, created a new publicly traded company named the ODP Corporation. Good luck in Q3 and thank you for taking my question. As expected, the business environment during the quarter was very challenging due to the impacts of the COVID-19 outbreak. We'll obviously let Tim get to you with offline with some of the more specifics. We also continue to expand our value proposition through expanding our product offerings and leverage our global sourcing and supply chain capabilities, resulting in expanding our customer base and positioning us for future growth. I'm very proud of our entire team for their efforts in safely servicing customers, leveraging our supply chain and service delivery capabilities to meet our customers' needs and giving back to the community during this time of need. While it takes time to realize this revenue is a strong indication of CompuCom's value proposition but we look forward to returning to growth over the next several quarters. Turning to the balance sheet and cash flow highlights on Slide 13. Our recent announcement regarding Maximize B2B continues our strategic pivot to becoming a platform that our customers can rely on for their business needs. Turning to Slide 12. This increase was largely related to lower SG&A from cost efficiency initiatives and an improvement in distribution and inventory management costs as well as lower operating lease cost recognized as a result of the new lease accounting standard. Terry will help accelerate our digital transformation, both at the core of who we are today, into the development of new channels and markets. Our total adjacency categories grew relative to last year and comprised approximately 48% of total revenue in our BSD division. I covered cash flow in my earlier remarks however, given the challenges caused by the pandemic and generally tough overall operating conditions, we still prudently managed cash in the quarter resulting in adjusted free cash flow use of $7 million versus a use of $48 million in the prior year period. We have continued the actions we took in the early stage of the outbreak to enhance the safety protocols to help protect our employees and create a safer work environment for our customers. Good morning, guys. So obviously Q2 as the prepared remarks referenced, we saw improvement along the quarter. We continue to expand our value proposition with new product offerings and continue to win new business in the quarter. As Gerry mentioned, sales improved in each month throughout the second quarter and has thus far continued per quarter-to-date, as business activity increased and companies began to adjust their needs for the work-from-home environment. Employees and consumers have adhered to stay at home and restricted travel orders, making every day life a challenge. Hi, good morning. November 12, 2020 10:00 AM - PT. So we had a very comprehensive cost model. I think it's -- again this very emphasizes the value of the routes-to-market. 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