ODP
Odp CORP
NASDAQ
8-K: ODP Corp Provides Supplemental Cash Flow Information for First Half of 2024
Sentiment:
Supplemental Financial Information
8 August 2024 7:00 AM
ODP Corporation released supplemental financial information detailing cash flows from operating, investing, and financing activities for the first two quarters of 2024, separating continuing and discontinued operations.
Worse than expected
The company reported a net loss of $58 million for the first half of 2024, which is worse than a profit.
The company's cash balance decreased by $202 million in the first half of 2024, which is worse than maintaining or increasing cash reserves.
Summary
- ODP Corporation has provided additional details on its cash flows for the first and second quarters of 2024, as well as the first half of the year.
- The supplemental information breaks down cash flows between continuing and discontinued operations.
- For the first quarter of 2024, net income was $15 million, but there was a loss of $73 million in the second quarter, resulting in a net loss of $58 million for the first half.
- Net cash provided by operating activities from continuing operations was $44 million in Q1 but decreased to -$1 million in Q2, resulting in $43 million for the first half.
- Net cash used in investing activities was $30 million in Q1 and $18 million in Q2 for continuing operations, totaling $48 million for the first half.
- Net cash used in financing activities was $113 million in Q1 and $61 million in Q2, totaling $174 million for the first half.
- The company's cash, cash equivalents, and restricted cash decreased from $395 million at the beginning of the year to $193 million by the end of the first half.
Sentiment
Score: 3
Explanation: The document reveals a significant net loss and a substantial decrease in cash, indicating a negative financial trend. The lack of positive forward-looking statements further contributes to the low sentiment score.
Positives
- Net cash provided by operating activities from continuing operations was $44 million in the first quarter of 2024.
Negatives
- The company reported a net loss of $73 million in the second quarter of 2024.
- The company's cash balance decreased by $202 million in the first half of 2024.
- There was a significant net cash outflow of $174 million from financing activities in the first half of 2024.
- Net cash provided by operating activities from continuing operations decreased to -$1 million in the second quarter of 2024.
Risks
- The significant decrease in cash balance could pose a risk to the company's liquidity.
- The net loss in the second quarter and for the first half of the year could indicate underlying financial challenges.
- The large cash outflow from financing activities may indicate a need for further debt or equity financing.
Industry Context
This announcement provides insight into ODP Corporation's financial performance during a period of economic uncertainty, and the separation of continuing and discontinued operations is likely related to strategic restructuring efforts.
Comparison to Industry Standards
- It is difficult to make a direct comparison without knowing the specific industry benchmarks for ODP's business segments.
- However, the significant decrease in cash and the net loss for the first half of the year would likely be viewed negatively compared to companies with stronger cash positions and profitability.
- Companies like Staples and Amazon, which also operate in the office supply and e-commerce space, have reported varying results, but a direct comparison would require a more detailed analysis of their specific business segments and financial metrics.
Stakeholder Impact
- Shareholders may be concerned about the net loss and decrease in cash.
- Employees may be impacted by potential cost-cutting measures.
- Suppliers and creditors may be concerned about the company's ability to meet its obligations.
Key Dates
- 2024-03-30: End of the first quarter of 2024.
- 2024-06-29: End of the second quarter and first half of 2024.
- 2024-08-08: Date of the 8-K filing and release of supplemental financial information.
Keywords
cash flow, financial results, operating activities, investing activities, financing activities, net income, ODP Corporation, discontinued operations
ODP
Odp CORP
NASDAQ
Sector: TBD
Filings with Classifications
Worse than expected
7 May 2025 1:01 PM
Quarterly Report
- The company reported a net loss compared to a net income in the same quarter last year.
- Sales decreased by 9% year-over-year.
- Diluted loss per share was $(0.97) compared to diluted earnings per share of $0.40 in the same quarter last year.
Worse than expected
7 May 2025 6:50 AM
Earnings Release
- The company's revenue decreased by 9% year-over-year.
- The company reported a GAAP operating loss of $32 million compared to an operating income of $41 million in the prior year period.
- The company's net loss from continuing operations was $29 million compared to a net income of $31 million in the prior year period.
- The company's adjusted EBITDA decreased to $76 million from $91 million in the prior year period.
Worse than expected
20 March 2025 4:30 PM
Proxy Statement
- Total sales were down 11% versus prior year on a reported basis.
- Adjusted EBITDA for 2024 was lower than in 2023.
- GAAP earnings per share from continuing operations (EPS) were lower than in 2023.
- Adjusted EPS from continuing operations was lower than in 2023.
Worse than expected
26 February 2025 2:00 PM
Annual Results
- The company's consolidated sales decreased by 11% to $6.99 billion in 2024.
- The company reported a net loss of $3 million in 2024 compared to a net income of $139 million in 2023.
- The company's diluted earnings per share from continuing operations was $3.08 in 2024 compared to $6.22 in 2023.
Worse than expected
26 February 2025 6:50 AM
Earnings Release
- The company's sales, operating income, and net income were all lower than the prior year period.
Worse than expected
6 November 2024 2:06 PM
Quarterly Report
- The company's sales, gross profit, and net income were all lower than the same period last year, indicating worse than expected results.
Worse than expected
6 November 2024 6:50 AM
Quarterly Report
- The company's third-quarter results were below expectations, with significant declines in sales, operating income, and adjusted EBITDA.
- The company has amended its full-year guidance, indicating a weaker outlook for the remainder of the year.
- The company's adjusted earnings per share of $0.71 was significantly lower than the $2.17 reported in the same quarter last year.
Worse than expected
8 August 2024 7:00 AM
Supplemental Financial Information
- The company reported a net loss of $58 million for the first half of 2024, which is worse than a profit.
- The company's cash balance decreased by $202 million in the first half of 2024, which is worse than maintaining or increasing cash reserves.
Worse than expected
7 August 2024 3:06 PM
Quarterly Report
- The company's net loss of $73 million in Q2 2024 is a significant downturn compared to the net income of $34 million in Q2 2023.
- Sales decreased by 10% in Q2 2024 and 11% in the first half of 2024, indicating a decline in demand.
- Diluted loss per share from continuing operations was $(0.12) in Q2 2024, compared to diluted earnings per share of $1.09 in Q2 2023.
Worse than expected
7 August 2024 6:50 AM
Quarterly Report
- The company's sales, operating income, and net income were all significantly lower than the prior year, indicating worse than expected results.
- The company also lowered its full-year guidance, further confirming that the results were worse than anticipated.
Better than expected
9 May 2024 8:59 AM
Credit Facility Amendment and Extension Announcement
- The document indicates better than expected results due to the improved credit terms and conditions, and the oversubscription of the facility.
Worse than expected
8 May 2024 4:01 PM
Quarterly Report
- The company's sales, net income, and earnings per share were all significantly lower than the same period last year, indicating worse than expected results.
Worse than expected
8 May 2024 6:50 AM
Quarterly Report
- The company's revenue, operating income, and net income all decreased significantly compared to the prior year, indicating worse than expected results.
Delay expected
8 May 2024 6:50 AM
Quarterly Report
- The document mentions ongoing delays in the onboarding of new customers at ODP Business Solutions, impacting their performance.
Delay expected
28 February 2024 1:38 PM
Annual Results
- The implementation of the Maximize B2B Restructuring Plan was extended through the end of 2024.
Worse than expected
28 February 2024 1:38 PM
Annual Results
- The company's total sales decreased by 8% year-over-year, indicating worse than expected performance.
- The Office Depot division experienced a 13% sales decrease, indicating worse than expected performance.
- The company recorded $85 million in asset impairment charges, including $68 million related to goodwill in the Varis division, indicating worse than expected performance.
Worse than expected
28 February 2024 6:50 AM
Quarterly Report
- The company's sales declined by 14% in Q4, and the company reported a GAAP operating loss of $31 million, indicating worse than expected results.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.