Office Depot, Inc. (NASDAQ:ODP) has released on Wednesday its second quarter earnings report.
Q2 Financial Highlights
Office Depot had an operating income and net income of $253 million and $210 million, respectively, posting earnings per share (EPS) of $0.38 for the period. On an adjusted basis, the company had a net income of $19 million, which is equivalent to an EPS of $0.03.
During the second quarter, Office Depot had a total sale of $3.20 billion, which dropped 6% year-over-year from $3.40 billion. Meanwhile, operating loss and net loss were seen at $51 million and $58 million, respectively.
Retail Division sales in North America, where there are more than 1,500 retail stores as of the second quarter, tumbled 7% year-over-year to $1.20 billion from $1.30 billion. The division also reported an operating income of $30 million, down from last year’s $42 million. Moreover, the sales in the International segment, which ended the quarter with a total of 289 retail stores, also plunged 4% year-over-year to $600 million.
Meanwhile, Business Solutions in North America declined 7% year-over-year to $1.30 billion. For the second quarter, it had a flat operating income growth with $63 million. The International segment posted an operating loss of $10 million, which highlights a poor year-over-year performance from an operating income of $2 million during the same period last year.
Roland Smith, Office Depot Chairman and CEO, reiterated that the company is committed to pursuing further growth prospects for the long term.
Office Depot ended the second quarter with total cash and cash equivalents of about $1.10 billion.
On Wednesday, the company has also revealed a quarterly dividend of $0.025 per share. Shareholders of record on August 25 are entitled to receive the quarterly dividend, which is payable on September 15. This indicates an annualized dividend of $0.10, representing about 3% yield based on Tuesday’s closing price.
2019 Senior Secured Notes
Office Depot has also revealed on Wednesday that the 9.75% senior secured notes due by 2019 are up for redemption on September 15.