Office Depot, Inc. Announces Fourth Quarter and Full Year 2017 Results

Office Depot, Inc. (“Office Depot,” or the “Company”) (NASDAQ: ODP), a leading omni-channel provider of business services and supplies, products and technology solutions, today announced results for the fourth quarter and full year ended December 30, 2017.

“I’m pleased that we delivered strong fourth quarter results and achieved full year 2017 adjusted operating income that exceeded our most recent outlook, despite significant revenue pressure throughout the year,” said Gerry Smith, chief executive officer of Office Depot. “Fourth quarter sales trends in the Business Solutions Division continued to improve sequentially and we also saw relative improvement in store traffic recently as a result of strategic shifts in our offer and marketing mix. We are encouraged to see our initiatives to transform the Company beginning to gain traction, including our ability to generate Free Cash Flow to fund these future growth engines.”

Total reported sales for the fourth quarter of 2017 were $2.6 billion compared to $2.7 billion in the fourth quarter of 2016, a decrease of 5%. Sales for the full year 2017 were $10.2 billion, a decline of 7% compared to the prior year. Fourth quarter and full year 2016 results benefited from an additional 53rd week sales of approximately $143 million and have been removed from our adjusted sales change below.

In the fourth quarter of 2017, Office Depot reported operating income of $59 million. The Company recognized a net loss from continuing operations in the fourth quarter of 2017 of $48 million, or $0.09 per diluted share, resulting from a net tax expense of approximately $68 million associated with changes to the Company’s U.S. deferred tax assets and tax valuation allowance due to recent tax law reform. The impact of this change has been removed from our adjusted comparisons below.

In the fourth quarter of 2016, the Company reported operating income of $57 million, which included the benefit of approximately $15 million from the additional 53rd week. Net income from continuing operations in the fourth quarter of 2016 was $55 million, or $0.10 per diluted share.

For the full year 2017 period, Office Depot reported operating income of $341 million compared to an operating income of $531 million in the prior year period. Net income from continuing operations in 2017 was $146 million, or $0.27 per diluted share, compared to net income from continuing operations of $679 million, or $1.24 per diluted share in 2016. Full year 2016 results benefited from $250 million of operating income related to the Staples termination fee received in the second quarter of 2016 and from a net tax credit of approximately $240 million associated with the reduction of the U.S. tax valuation allowance in the third quarter of 2016, in addition to the 53rd week benefit stated above.
more detail at:  http://investor.officedepot.com/phoenix.zhtml?c=94746&p=irol-newsArticle&ID=2335220

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