As I begin my discussion on our accomplishments for the quarter, I'd like to start off with our continued commitment to safety. Having been classified as an essential business operation, our businesses remained open throughout the pandemic. This increase was largely related to lower SG&A from cost efficiency initiatives and an improvement in distribution and inventory management costs as well as lower operating lease cost recognized as a result of the new lease accounting standard. The strength of these assets along with strong free cash flow growth and the ability to generate substantially higher EBITDA growth over time was very compelling and I believe there is a tremendous opportunity to create significant value at ODP, expand our multiple and deliver substantial long-term growth. Safety of our associates, customers and families in our communities continue to remain our top priority. We source and work with vendors around the globe to procure cost effect [Technical Issues] to meet the needs of our customers. And then, just any kind of indication in terms of what you're thinking for the back half of the year, is obviously -- I know there's a lot of uncertainty, but anything that could help a little bit around demand trends? Sales increased over 20% in our e-commerce channel and demand increased for products supporting work and learn-from-home and essential products with technology sales up 17% and cleaning and breakroom sales up 20% versus last year. Office Depot sells office supplies under its own name as well as that of OfficeMax (its former U.S. rival, now a subsidiary) and Grand & Toy (a Canadian chain). The company's brand portfolio includes Office Depot(R), OfficeMax(R), CompuCom(R) and Grand&Toy (R). I'm pretty darn proud of the team for adjusted operating profitability as well as a pretty much net cash neutral from that perspective. Its North American Retail division sells an assortment of merchandise, such as general office supplies, computer supplies, business machines and related supplies, and office furniture under various labels, including Office Depot, Viking Office Products, Foray, Ativa, Break Escapes, Niceday, and Worklife through its chain of office … I mean, the entire focus is we -- as I always say is that you need a low cost model to win in this space. We have implemented strategies to address including working with our distribution partners and evaluating delivery schedules and fees, all of which are helping control delivery costs going forward. Outside of back-to-school, we continue to work with our business customers to help them in any scenario when they return to work in a more normal fashion or if they remain remote. Sales were $214 million, down 17% versus the prior year period. Christopher Horvers -- J.P. Morgan & Co. -- Analyst. Cumulative Growth of a $10,000 Investment in Stock Advisor, Office Depot Inc (ODP) Q2 2020 Earnings Call Transcript @themotleyfool #stocks $ODP, How ODP Corporation Stock Rose 45.7% in January. So we've built a DNA here in our culture about driving cost and being efficient and are very pleased with the progress we made across not just -- our finance teams have done a tremendous job but all our organization has done a tremendous job of driving to efficiencies and productivity and even this acceleration of work-from-home is, we found all kinds of opportunity of efficiencies and productivity that by being in a work environment, you did realize things we didn't need anymore. Much of this impact we felt early in the quarter followed by improving trends in May and June. Our retail division continued to drive reasonably strong demand for the quarter for essential products for businesses in homes. And with the restructuring program, how many retail stores do you expect to close? At sales our e-commerce channel was up double-digits versus last year as business customers and consumers recognized the convenience of our online presence and supply chain capabilities to safely procure the products to help maintain their business operations. We have provided a few examples below that you can copy and paste to your site: Your image export is now complete. This all points to our underlining sourcing and supply chain strength and I'm proud of the team's execution during the quarter. At the heart of our ecosystem is our unique and expansive supply chain and services capabilities. Office Depot® and UF Student Faculty Staff and Alumni Group have partnered to provide exclusive benefits and savings on a wide selection of products and services including: Office Essentials Cleaning and Breakroom Solutions We'll obviously let Tim get to you with offline with some of the more specifics. Mr. Perrott, you may now begin. This balance helped to partially offset the negative impacts related to the COVID-19 pandemic. The pace of the program's restructuring, investments and other costs will be dependent on overall business conditions and shifting customer dynamics as the effects of COVID-19 continue to be managed and understood. So we're not going to see the same level of degradation at the top line that we saw in Q2 continuing but there is going to be continued headwinds. Yeah. Moving to Maximize B2B. I think as we look into the second half and given the unknown and one of the reasons why we continue to withdraw guidance, we're seeing improvement. Number three, continue to leverage our assets across supply chain and procurement, expanding the product and services that we offer our customers, driving value and building upon our sourcing capabilities. Total debt at the end of the quarter was approximately $672 million. We have built a powerful and agile platform of assets to meet the needs of our customers, which has helped us achieve balance during the challenging business environment in 2020. Today's call and slide presentation is being simulcast on our website and will be archived there for at least one year. Revenue can be defined as the amount of money a company receives from its customers in exchange for the sales of goods or services. 0. Please state your company name then proceed with your question. Unallocated corporate expenses were $25 million in the quarter, basically flat with last year. Anthony anything to add? We also strengthened our senior management team with the appointment of new team members with significant experience in managing transformation efforts in the B2B space. We're going to continue to look for new categories like we did in PPE, work-from-home, learn-from-home is all kinds of different innovations going on there. The ODP Corporation EPS beats by $0.71, beats on revenue. Operating income of $3 million — far bette than a $15 million operating loss in the first quarter of 2019. We also continue with our strategy of acquiring small regional distributors with attractive business customer bases and assets increasing our reach in the marketplace. But obviously with BAT as well as our Maximize project that we announced. I'm very proud of our team in accomplishing this in such a short period of time and the takeaway here is the strength of our platform and the sourcing and execution capabilities we have. See individual notice for details. This broad diverse channel approach is proving to be a very important asset during the unusual business environment we find ourselves in this year, providing our customers with options in helping us balance revenue performance. I'm very proud of our entire team for their efforts in safely servicing customers, leveraging our supply chain and service delivery capabilities to meet our customers' needs and giving back to the community during this time of need. BAT cost efficiency measures and other cost reduction efforts helped to drive the year-over-year increase. Now turning to how this is helping us navigate one of the most challenging business environments in our nation's history, please turn to Slide 6 for business highlights. This action simplifies our corporate structure and begins to better align our assets with respective operating channels creating more flexibility for the future. In total, our adjacency categories comprised 48% of our total revenue in our BSD division, highlighting again the success of our strategy increase our value proposition to customers and the benefit of a diverse channel mix. In fact, we expanded into a new category during the quarter, Personal Protection Equipment or PPE quickly launching this category meeting our customer needs. While we are encouraged by the improving month-to-month performance that we drove throughout the second quarter and quarter-to-date, there continues to be a lot of uncertainty on the overall systemic pace of back-to-work and back-to-school scenarios. Excluding these items and other items, our adjusted operating income for the second quarter was $10 million compared to $71 million in the prior year period. The CompuCom division reported operating income of $4 million in the second quarter of 2020 compared to operating income of $1 million in the prior year period. With that, I will turn the call over to Anthony for overview of our financial results. In our BSD division, we continue to win customers in both traditional and new areas of business. We also made significant progress on our B2B transformation plan, improving our foundation and building our capabilities to drive long-term profitable growth. Just to add some color on the cost side. Well, let me maybe put it into the context of the second half. We plan to accomplish this across all channels, including maximizing the value of our retail presence by continuing to rationalize the footprint, reducing our longer-term lease exposure and improving the overall cash flow and earnings profile of the business going forward. Cleaning and breakroom and technology products all sporting double-digit increases in sales relative to last year, helping to offset lower demand in other categories. Taking these actions in leveraging our various channels allowed us to meet our customer needs across the platform. Good morning, guys. And as I highlighted earlier, our sourcing and supply chain strengths allowed us to quickly identify, initiate and launch a new product category for our business. So as the business modulates and areas for us to improve the top line recapture, those are the areas that we'll look at reinvesting. We also sanitize our facilities and required our employees in our supply chain and distribution operations to wear Personal Protective Equipment and continue to promote social distancing by staggering shifts and increasing space in common areas. So as we said in the script we -- obviously, the early part of Q2 was very, very tough. And finally, continue to promote our 5C Culture across associates and the finance team. Our sourcing and supply chain capabilities also provide us with ability to quickly expand the sets of products and services we offer to our customers. So every element of cost is looked at, benchmarked and driven. We are excited to have Anthony as a senior member of our team and we look forward to his leadership in executing our transformation. Let's now turn to Slide 10, which highlights the performance of our BSD division. Our next question will come from the line of William Kafoure. And I think the way to look at it is we will invest in areas that are going to produce the growth. During today's call, Gerry will provide an update on the business, focusing much of his commentary on our accomplishments in the second quarter and highlighting how the strength of our platform, financial position and strategy is helping to address the challenges posed by the pandemic and positioning ODP for future growth. And I am pleased to say that trend has continued as we sit here today. But depending on the overall reopenings and our commercial and education clients, they're going to look to us for different products and services. We're not going to add G&A for the sake of adding G&A. Our product breadth and diverse channel presence also helped generate demand to help offset some of the impacts from the pandemic. This is uncharted territory for the market and we may have an impact on buying patterns with scenarios ranging from an increase in demand for certain school products, supplies and technologies to establish remote learning to some scenarios showing less demand in certain categories, backpacks for example, if there are prevalent delays in openings. From basic office supplies, such as printer paper and labels, to office equipment, like file cabinets and stylish office furniture, Office Depot and OfficeMax have the office products you need to get the job done.Maintain a well-stocked office breakroom.Save on printer ink and toner to keep your office efficient and productive. And then, I guess on the SG&A side, very strong expense control despite the COVID top line headwinds, $406 million in SG&A. I mean, you cover wide geographies and do you see any indication that maybe they're just buying early, are you able to look at that in terms of areas where the students are going back-to-school where -- or versus the work-from-home, sorry, learn-from-home environment will stay in place? Company name is Elevation. Employees and consumers have adhered to stay at home and restricted travel orders, making every day life a challenge. Email: investor_relations@homedepot.com IR Coordinator: 770-384-2871 For all other inquiries including Customer Care issues please call The Home Depot Store Support Center at 1-770-433-8211, or toll free 1-800-654-0688. So, with that being said, you didn't reference the improvement throughout the quarter and into July. Our buy on-line pick-up in store offering or BOPIS experienced a 152% increase in demand as customers chose the convenience of this option to limit time spent in the store. Considering our recent refinancing of our credit facilities, our maturity profile is attractive with our ABL not maturing until 2025. Few supply chains in North America have this capability, enabled us to consistently and reliably serve customers no matter what channel they choose for our products and services. We believe this bodes well for our BSD business in the long run as we work to expand our value proposition and use our supply chain and distribution capabilities to drive long-term profitable growth. Our stock buyback program and quarterly dividend remain suspended and we will reevaluate these programs when appropriate. I'm happy to be here today with you to discuss results for the second quarter and the significant progress we've made on our B2B pivot, however, before I do I'd like to introduce you to a new member of our team, Anthony Scaglione who has joined us as Executive Vice President and CFO. But -- and we're obviously we have a lot more confidence today than we did early in Q2 and to be honest, with Q2 we produced the results we did in this, to be honest, the worse economic times in the country's history. Office Depot to conduct 1-for-10 reverse stock split effective June 30 Jun. During the call, we will use some non-GAAP financial measures as we describe business performance. Welcome to the Minnesota Department of Revenue website. We've substantially improved our cost management. So we were able to reduce our overall inventory in the category. Excluding the after tax impact from the items mentioned earlier, adjusted net loss for the second quarter was $4 million or $0.07 per diluted share compared to adjusted net income of $37 million or $0.68 per diluted share in the prior year. 26, 2020 at 6:17 a.m. Before we begin, I need to inform you that certain comments made on this call include forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Office Depot OfficeMax The ODP Corporation (NASDAQ:ODP) is a leading provider of business services, products and digital workplace technology solutions to small, medium and enterprise… Read More Consistent with previous quarters, we have provided our results on both a GAAP basis and on an adjusted basis. Now turning to the highlights of our financial results, as shown in Slide 9. We saw like April was, it was very difficult, May was improved and June was even better. I just want to thank everyone for joining the call today and I just wish everyone stays safe in this difficult environment and we look forward to our conversation when we close Q3. Our network touches many customers and we will be focusing on delivering even more value for our customer base across all of our channels. Our tech support teams at CompuCom transitioned to a work-from-home environment very early in the crisis as they continue to provide uninterrupted support for many of our customers who transitioned to a distributed workforce. He noted that its retail store network, though shrinking, still serves as a good way to reach many of its business customers.Office Depot will emphasize growth in its B2B sales of products and services, both … The market expects Office Depot (ODP) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended March 2020. School-from-home spending could boost Best Buy and Office Depot. We have continued the actions we took in the early stage of the outbreak to enhance the safety protocols to help protect our employees and create a safer work environment for our customers. And can you maybe just touch a little bit on the remote status in terms of the work-from-home and the cost to serve there and just how you're kind of driving that down and how you see that? Operating income was $18 million in the second quarter, up 100% over the same period last year or as a percentage of sales, a 110 basis points improvement in margins. The decrease in operating income versus last year was related to the impact of COVID impacting sales, product mix and higher overall distribution costs. So I think, we're all learning that, hey, what do I need to be successful in this environment so we'll continue to be that platform out there. To expand upon that we combined our sourcing supply chain capabilities with balanced routes-to-market to reach our customers, we created a platform that our customers can access to most appropriately satisfy their needs. Has that transitioned a little bit since we've seen some economies start to reopen? We're watching it carefully. The launch of PPE added to this performance. As with our successful launch of PPE, we are evaluating new product and service offerings to help support work-from-home and learn-from-home business environments. Very few companies have the scale and portfolio of assets to drive their business. This list comprises the largest companies in the United States by consolidated revenue as of 2020, according to the Fortune 500 tally. Number one is to continue supporting the key initiatives across our platform that will drive long-term growth accelerating our B2B pivot. In my few short weeks at the company, I've been very impressed with the company's strong and innovative culture, creating the foundation to drive our mission and reach our goals with all of our stakeholders at the core. While the effects of the pandemic negatively impact our results, the power of our B2B platform and diverse routes- to-market helped us offset some of these impacts enable us to deliver positive adjusted operating results, preserve cash and maintain a strong balance sheet and liquidity position. The pace of the restructuring and referring to Maximize,it's really going be dependent on a lot of factors. And I think that whether it's a hybrid model, whether it's, I'll say, continuous work-from-home I think we are well positioned with our broader product offerings to go out and be successful. Traditional enterprise sales volumes dropped on our contract channel related to business and school closures, retail traffic trends were lower and service volumes and project-related work at CompuCom were negatively impacted. Gerry P. Smith -- Chief Executive Officer. We have continued our curbside pickup option at nearly all of our locations. [Operator Instructions] Our first question will come from the line of Chris McGinnis. The bright spot, though, is its managed services unit, CompuCom, which is doing relatively well and could prove to be a lifeboat in choppy post-pandemic waters. The ODP Corporation is a provider of business services, products and digital workplace technology solutions to small, medium and enterprise businesses. Among the attributes that was extremely attractive to us was Anthony's leadership role in developing and executing ABM's long-term strategic transformation. The decrease was largely due to customer imposed project delays and lower service volumes as the COVID-19 pandemic impacted our customers' business operations. And we adjusted some from a cost structure perspective as well. Revenue; Retail/Wholesale: Retail - Miscellaneous & Diversified: $2.501B: $10.647B: The ODP Corporation is a provider of business services, products and digital workplace technology solutions to small, medium and enterprise businesses. Our supply chain has a unique capability to reach nearly all of our customers the next day and directly to the desktop for enterprise customers. Office Depot’s Q1 ecommerce sales rise as total sales dip 2% Paul Demery | May 6, 2020 The supplier of business supplies and services said its ecommerce channel and sales of cleaning, breakroom and technology products helped … In an effort to boost revenue after disappointing Q4 earnings, Office Depot is turning its attention to business-to-business (B2B) eCommerce, according to reports. Aligned with our strategic objectives, we made significant progress across our platform on a number of fronts. Included in the non-cash asset impairment charges was an impairment related to goodwill and intangibles at CompuCom and in our contract business, mostly related to the COVID-19 impact to overall business conditions. Market data powered by FactSet and Web Financial Group. The combination of all these components gives us a balancing confidence as we navigate the current challenges in front of us as well as we continue to invest in building upon our B2B platform to pursue higher growth in the future. The multibillion-dollar provider of business supplies and services will emphasize growth in its B2B sales, both online and offline, CEO Gerry Smith said today. Have a great morning and again, thank you for joining the call. We appreciate you joining us during what we expect has been a challenging time for most. Combined with our core competency in supporting enterprises in a distributed environment, we believe that CompuCom remains in an excellent position going forward. Facing these tough conditions, strong execution by our team helped us mitigate some of the revenue declines and drive positive operating results on an adjusted basis. This is Gerry, so I appreciate the question. While product revenue held its own and was down 4% compared to last year, service revenue was down 38% as copy and print services and subscription offerings were negatively impacted by the COVID-19 pandemic. These cost reduction efforts helped offset the expense incurred in anticipation of supporting the implementation of new future service contracts, as CompuCom continues to win new service contracts and project work during the quarter. With that, operator, we will now open up the line for questions. Okay. In terms of revenue generation our increasingly diverse product portfolio and multiple routes-to-market helped us offset some of the conditions caused by the COVID pandemic. This includes adjusted depreciation and amortization expense of $47 million and $51 million in the second quarter of 2020 and 2019, respectively. We have net new customer wins in the quarter and a significant amount of renewals. It's really going be dependent on where we see the products and suites of services across the platform to drive the value that ultimately, our education clients are going to need for their students if they're going to be at home or a hybrid. Anthony will then review the Company's financial results, including highlights of our divisional performance and following Anthony's comments we will open up the line for your questions. Office Depot, Inc. engages in the provision of office products, services, supplies, and technology solutions. 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