Office Depot Inc. (NASDAQ:ODP) announced results for the third quarter ended September 28, 2019.
Total reported sales were $2.8 Billion during the quarter, down 4% from prior-year period.
In the third quarter of 2019, Office Depot reported operating income of $108 million, compared to $105 million in the prior-year period.
Operating income included approximately $22 million in merger and restructuring costs, $16 million of which is associated with charges related to the Business Acceleration Program (BAP) recognized in the quarter.
Net income from continuing operations was $60 million, or $0.11 per diluted share, in the third quarter of 2019, compared to net income from continuing operations of $60 million, or $0.11 per diluted share in the third quarter of 2018.
Operating cash flow of $212 million and Adjusted Free Cash Flow of $209 million
Said CEO Gary Smith, "Profit margins were up in all three of our divisions as a result of our Business Acceleration Program, delivering a 14% increase year-over-year in adjusted operating income and over $200 million in adjusted free cash flow.
"Under strong new leadership in both our Business Solutions Division (BSD) and CompuCom Division, we are taking actions to develop a more robust sales pipeline for future growth."
During the third quarter, ODP paid a quarterly cash dividend of $0.025 per share on September 13, for approximately $14 million and made a $19-million scheduled debt repayment on the 2022 term loan.
In terms of guidance, the company projects sales of $10.8 to $10.9 billion, and adjusted EBITDA of $525 - $550 million
Shares picked up 26 cents, or 11.9%, to $2.45
