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Office Depot Reaffirms 2019 Sales, Adj. EBITDA Guidance - Quick Facts

Office Depot, Inc. (ODP), announced, for 2019, the company continues to project: sales in a range of $10.8 billion - $10.9 billion; adjusted EBITDA in a range of $525 - $550 million; and adjusted operating income of $325 - $350 million. Analysts polled by Thomson Reuters expect the company to report revenue of $10.84 billion.

For the second-quarter, adjusted earnings per share from continuing operations was $0.07 compared to $0.05, previous year. On average, five analysts polled by Thomson Reuters expected the company to report profit per share of $0.05, for the quarter. Analysts' estimates typically exclude special items. Adjusted EBITDA increased year-on-year to $125 million from $115 million. Adjusted operating income was $71 million compared to $63 million. The company said the primary driver of the improved performance was stronger results in the BSD division as well as the benefits from BAP-related cost efficiency efforts.

Second-quarter reported sales were $2.6 billion, a decrease of 2% from prior year. Analysts expected revenue of $2.59 billion for the quarter. The company said the decrease was the result of lower sales in the Retail division, primarily driven by lower same store sales combined with fewer retail stores, and lower sales in the CompuCom division. Product sales were down 1%, for the quarter.

Gerry Smith, CEO of Office Depot, said: "Our strong operating results were driven by growth in our BSD division and improving performance at our CompuCom division. Our strategic focus on our B2B businesses, which consists of our BSD and CompuCom divisions, generated over 60% of our revenue and over 90% of our division level operating income in the second quarter."

Office Depot said its Board declared a dividend of $0.025 per share ($0.10 per share on an annualized basis) on the common stock. The dividend is payable on September 13, 2019, to shareholders of record at the close of business on August 23, 2019.

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