ODP Corp (ODP) 2024 Q3 法說會逐字稿

Good morning and welcome to the ODP Corporation's third quarter 2024 earnings conference call. All lines will be in all is only mode. (Operator Instructions) At the request of the ODP Corporation today's call is being recorded.

早安，歡迎參加 ODP 公司 2024 年第三季財報電話會議。所有線路將處於僅全部模式。（操作員指示）應 ODP 公司的要求，今天的通話正在錄音。

I would like to introduce Tim Perrott, Vice President, Investor relations and Treasurer. Mr. Perrott. You may now begin.

我想介紹投資者關係副總裁兼財務主管 Tim Perrott。佩羅特先生。現在您就可以開始了。

Good morning and thank you for joining us for the ODP Corporation's third quarter 2024 earnings conference call. This is Tim Perrott and I'm here with Gerry Smith, our CEO. Also joining us on the call today is Max Hood, our Chief Accounting Officer and Co-Interim CFO; and Adam Haggard, our Senior Vice President of FP&A and Co-interim CFO.

早安，感謝您參加 ODP Corporation 2024 年第三季財報電話會議。我是蒂姆·佩羅特 (Tim Perrott)，和我們執行長格里·史密斯 (Gerry Smith) 一起在座。參加今天電話會議的還有我們的財務長兼聯席臨時財務長馬克斯‧胡德 (Max Hood)；以及我們的 FP&A 資深副總裁兼聯席臨時財務長 Adam Haggard。

During today's call, Gerry will provide an update on the business focusing much of his commentary on our results and accomplishments for the third quarter of 2024, including the progress we are making on our B2B pivot and initiatives to drive shareholder value. After Gerry's commentary, Max will then review the company's third quarter financial results including highlights of our divisional performance followed by Adam who will highlight our balance sheet and outlook. Following our comments, we will then open up the line for your questions.

在今天的電話會議中，Gerry 將介紹業務最新情況，重點評論我們 2024 年第三季的業績和成就，包括我們在 B2B 轉型方面取得的進展以及推動股東價值的舉措。在 Gerry 的評論之後，Max 將回顧該公司第三季度的財務業績，包括我們部門業績的亮點，然後 Adam 將重點介紹我們的資產負債表和前景。在我們發表評論之後，我們將開放熱線來回答您的問題。

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. These forward-looking statements reflect the company's current expectations concerning future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially. A detailed discussion of these risks and uncertainties are contained in the company's filings with the US Securities and Exchange Commission.

在我們開始之前，我需要通知您，本次電話會議中發表的某些評論包括前瞻性陳述，這些陳述受 1995 年《私人證券訴訟改革法》安全港條款的約束。這些前瞻性陳述反映了公司目前對未來事件的預期，並受到多種風險和不確定因素的影響，這些因素可能會導致實際結果大不相同。這些風險和不確定性的詳細討論包含在公司提交給美國證券交易委員會的文件中。

During the call, we will use some non-GAAP financial measures as we describe business performance. The SEC filings as well as the earnings press release presentation slides that accompany today's comments and reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are all available on our website at investor.theodpcorp.com.

在電話會議中，我們將使用一些非 GAAP 財務指標來描述業務績效。今天的言論以及非公認會計準則財務指標與最直接可比較的公認會計準則財務指標之間的對帳所附帶的美國證券交易委員會 (SEC) 文件和收益新聞稿演示幻燈片均可在我們的網站 investor.theodpcorp.com 上找到。

Today's call and slide presentation is being simulcast on our website and will be archived there for at least one year.

今天的電話會議和幻燈片演示將在我們的網站上同步播出，並將在那裡存檔至少一年。

I'll now turn the call over to Gerry Smith. Gerry?

現在我將電話轉給 Gerry Smith。格里？

Thank you, Tim and good morning to everyone joining our call today. We appreciate you being here with us to discuss our results and accomplishments for the third quarter of 2024. This morning I'll cover our recent performance along with our progress on our B2B pivot and the initiatives we're implementing to position the business for future growth.

謝謝你，提姆，大家早安，今天參加我們電話會議的各位。感謝您與我們一起討論 2024 年第三季的業績和成就。今天上午，我將介紹我們最近的表現、我們在 B2B 轉型方面的進展，以及我們為未來業務成長而實施的舉措。

As you can see in our press release this morning, our results in the third quarter were below expectations driven primarily by challenges in our retail division's performance. Weak macroeconomic conditions impacted demand in both our B2C and B2B channels. During what proved to be a highly competitive back to school season. This was further compounded by major hurricanes negatively affecting customer activity and some of our operations in our largest service areas in the South.

正如您在我們今天上午的新聞稿中看到的，我們第三季的業績低於預期，這主要是由於我們零售部門的業績面臨挑戰。疲軟的宏觀經濟條件影響了我們的 B2C 和 B2B 管道的需求。事實證明，這是一個競爭異常激烈的返校季。大型颶風對客戶活動和我們南部最大服務區的一些業務產生了負面影響，這進一步加劇了這種情況。

Despite these challenges, we are making significant progress on our strategic B2B pivot. By leveraging our core strengths, we're accelerating our pivot and gaining traction, securing key B2B contracts in our traditional business categories while expanding our influence in adjacent high value industry sectors where our expertise also resonates.

儘管面臨這些挑戰，我們在 B2B 策略轉型方面仍取得了重大進展。透過利用我們的核心優勢，我們正在加速我們的轉型並獲得發展動力，在我們傳統業務類別中獲得關鍵的B2B合同，同時擴大我們在相鄰高價值行業領域的影響力，我們的專業知識在這些領域也產生共鳴。

Although it would take time for these efforts to be fully reflected in our results. Our progress is helping us regain momentum and position ODP to pursue sustainable high growth market segments now and in the future. Let me provide more insight to our results and accomplishments for the third quarter. And then I will highlight a few key points about our strategy and focus as we move forward.

儘管這些努力需要時間才能完全反映在我們的成果中。我們的進步正在幫助我們重新獲得動力，並使ODP能夠在現在和未來追求可持續的高成長市場領域。讓我更深入地介紹一下我們第三季的業績和成就。然後，我將強調我們未來策略和重點的幾個關鍵點。

As I mentioned, our overall performance in the quarter was impacted by ongoing challenging macroeconomic conditions, impacting demand during a very competitive back to school season and creating headwinds into our efforts to regain revenue traction. The largest impact was felt in our B2C division Office Depot or consumer traffic and demand were lower due to challenging factors I mentioned along with changes in spending priority.

正如我所提到的，本季我們整體的業績受到持續嚴峻的宏觀經濟情勢的影響，在競爭激烈的返校季影響了需求，並對我們恢復收入成長的努力造成了阻力。受到最大影響的是我們的 B2C 部門 Office Depot，或者說由於我提到的挑戰性因素以及支出優先順序的變化，消費者流量和需求下降。

This wasn't unique to us much of the retail industry faced similar challenges. Overall for the industry back to school demand declined compared to last year down about 5% while consumers prioritize their budgets amidst rising energy and food costs. Additionally, the major hurricanes that hit our largest markets disrupted customer activities caused temporary store closures and affected surrounding communities. Fortunately, all of our employees are safe. However, the business impacts were still being felt as we entered the fourth quarter.

這並不是我們獨有的，許多零售業也面臨類似的挑戰。總體而言，與去年相比，返校需求下降了約 5%，而由於能源和食品成本上漲，消費者更優先考慮預算。此外，襲擊我們最大市場的強烈颶風擾亂了顧客活動，導致商店暫時關閉並影響了周邊社區。幸運的是，我們所有員工都很安全。然而，進入第四季度，業務影響仍在顯現。

Similar conditions affected our B2B segment ODP Business Solutions. The challenging macroeconomic environment including enterprise level workforce reductions continued to restrict spending during a highly competitive period. While we have yet to regain stronger revenue traction we do believe that the top line trends have largely stabilized.

類似的情況影響了我們的B2B部門ODP商業解決方案。包括企業層面裁員在內的嚴峻宏觀經濟環境在競爭激烈的時期持續限制支出。雖然我們尚未重新獲得更強勁的營收成長勢頭，但我們確實相信，營收趨勢已基本穩定。

Daily sales have shown more consistency over the past several weeks and throughout much of the quarter, given its growing confidence that we've reached the bottom of the cycle. Furthermore, we're seeing a stronger pipeline of exciting opportunities which we're successfully converting into new business wins. More to come on this in a few minutes.

由於我們越來越相信我們已經到達週期的底部，過去幾週以及整個季度的大部分時間裡，每日銷售額表現出了更大的一致性。此外，我們看到了更多令人興奮的機遇，我們正在成功地將其轉化為新的業務機會。幾分鐘後將會有更多相關內容。

And in our supply chain business there, we continue to see great progress as they execute across their growth strategy, attracting new third party customers and driving healthy increases in external revenue up about 30% over last year. Veyer also executing on its tech modernization road map investing integrating key technologies supported by Gartner Magic Quadrant-level partners and significantly advancing its capabilities and service levels.

在我們的供應鏈業務中，我們繼續看到巨大的進步，因為他們執行了成長策略，吸引了新的第三方客戶，並推動外部收入比去年增長了約 30％。Veyer 也執行其技術現代化路線圖，投資整合 Gartner 魔力像限層級合作夥伴支援的關鍵技術，並顯著提升其能力和服務水準。

And while the brand Veyer is still relatively new, it leverages the long history of supply chain excellence. We have built servicing both retail and B2B customers. Veyer indeed represents a key B2B pivot for ODP and its future is very bright. So overall, while it was a challenging quarter for the business, we are making strong progress on our B2B pivot and securing new business wins.

儘管 Veyer 品牌還比較新，但它充分利用了其悠久的卓越供應鏈歷史。我們已經為零售和 B2B 客戶提供服務。Veyer 確實代表了 ODP 的一個關鍵 B2B 支點，其前景非常光明。因此總體而言，雖然這對公司業務來說是一個充滿挑戰的季度，但我們在 B2B 轉型方面取得了重大進展，並獲得了新的業務勝利。

Let me highlight some of this progress and key points regarding the strategy as we move forward. This is shown beginning on slide 5, recognize the evolving consumer dynamics and the opportunities in the enterprise space we are accelerating our pivot to B2B. Despite some perception of ODP as a retail only business, our true strength lies in our robust B2B asset base built over the last 40 years.

讓我強調一下我們未來推進過程中有關該戰略的一些進展和要點。從第 5 張投影片開始就顯示了這一點，認識到不斷變化的消費者動態和企業領域的機遇，我們正在加速向 B2B 的轉變。儘管有些人認為ODP只從事零售業務，但我們的真正優勢在於過去40年來建立的強大的B2B資產基礎。

Unlike traditional retailers, we can leverage our nationwide supply chain extensive B2B customer base, compelling value proposition and strong balance sheet to drive sustainable EBITDA and cash flow growth. And we're making significant progress capturing major new business wins and building momentum. In our business solutions division, our pipeline is expanding and today we're thrilled to announce a key new business win representing one of our largest B2B contracts in company history.

與傳統零售商不同，我們可以利用全國供應鏈廣泛的 B2B 客戶群、引人注目的價值主張和強勁的資產負債表來推動可持續的 EBITDA 和現金流成長。我們在贏得重大新業務和積聚發展勢頭方面取得了重大進展。在我們的業務解決方案部門，我們的管道正在擴大，今天我們很高興地宣布贏得一項重要的新業務，這是該公司歷史上最大的 B2B 合約之一。

This new contract worth up to $1.5 billion over a 10 year period will allow our new partnership to utilize our comprehensive offerings, national distribution and e-commerce platform to provide excellent service to customers. While we're not able to disclose the name of the new customer at this time, we will provide more specific details when appropriate in the future.

這份為期 10 年、價值高達 15 億美元的新合約將使我們的新合作夥伴能夠利用我們全面的產品、全國分銷和電子商務平台為客戶提供優質服務。雖然我們目前不能透露新客戶的名稱，但我們將在未來適當的時候提供更具體的細節。

We are very excited about this trajectory changing win for ODP and we've already begun the onboarding and transition process. Also with ODP Business Solutions division, in alignment with our strategic growth objectives we're actively pursuing opportunities in higher growth adjacent industry segments. Specifically, we're focused on building long term distribution relationships and product and service categories that go beyond our traditional office supply offerings.

我們對 ODP 改變發展軌蹟的勝利感到非常興奮，我們已經開始了入職和過渡過程。此外，對於ODP商業解決方案部門，根據我們的策略成長目標，我們正在積極尋求更高成長的鄰近產業領域的機會。具體來說，我們專注於建立長期分銷關係以及超越傳統辦公用品產品的產品和服務類別。

And I'm happy to report that we're making significant strides in this area forging new relationships and adjacent industry segments where our core competencies resonate. In fact, one of the areas that we are targeting and is showing great promise is the hospitality industry. The hospitality industry is a large and growing market segment and our core strengths in supply distribution and service reliability are an excellent match to meet the needs and requirements of customers in the space.

我很高興地報告，我們在這一領域取得了重大進展，建立了新的關係並建立了與我們的核心競爭力產生共鳴的相鄰行業領域。事實上，我們所瞄準的領域之一併且前景廣闊的領域就是酒店業。酒店業是一個龐大且不斷成長的細分市場，我們在供應分銷和服務可靠性方面的核心優勢能夠完美滿足該領域客戶的需求。

We are very excited about pursuing growth in this industry segment as it marks an important step in our B2B evolution and spotlights our distribution and supply chain proficiency. Our ability to supply products beyond office supplies and our commitment to service excellence. We're also continuing to execute our strategy at Veyer growing our supply chain business and gaining momentum by attracting new third party B2B customers.

我們對在這個產業領域實現成長感到非常興奮，因為這是我們 B2B 發展的重要一步，也凸顯了我們的分銷和供應鏈能力。我們有能力提供辦公用品以外的產品，並且我們致力於提供卓越的服務。我們也將繼續在 Veyer 執行我們的策略，發展我們的供應鏈業務，並透過吸引新的第三方 B2B 客戶來獲得發展動力。

We're already serving some of the most recognized internationally known brands providing essential supply chain services that support their operations. Building on the success they recently won a major contract with one of the world's largest social media focused e-commerce companies to deliver warehouse and fulfillment services for their online sales.

我們已經為一些最知名的國際品牌提供支援其營運的重要供應鏈服務。基於此成功，他們最近與世界上最大的以社交媒體為重點的電子商務公司之一贏得了一份重要合同，為其在線銷售提供倉儲和履行服務。

We've recently invested in additional resources and integrated their products into our distribution centers onboarding this customer in record time. The feedback to date has been excellent and we are poised to deliver exceptional service during upcoming holiday season. This relationship is not only significant in size but also represents a puzzled moment for ODP positioning us to pursue further growth and supply chain services for e-commerce companies.

我們最近投入了額外的資源，並將他們的產品整合到我們的配送中心，以創紀錄的速度為該客戶提供服務。迄今為止的反饋非常好，我們準備在即將到來的假期中提供卓越的服務。此次合作不僅在規模上意義重大，也代表著ODP正處於一個困惑的時刻，我們正定位自己以尋求進一步的成長和為電子商務公司提供供應鏈服務。

So overall, we're making significant strides in our B2B pivot successfully capturing meaningful new business and positioning ODP to pursue growth in new valuable industry segments. And as a component of this transformation, we've also streamlined operations by completing the sale of our various division. This action simplifies our business structure and removes future capital commitments to various outside of the transaction while allowing us to retain a minority stake to benefit from any potential future growth.

因此，總體而言，我們在 B2B 轉型方面取得了重大進展，成功捕獲了有意義的新業務，並定位 ODP 以追求新的有價值的行業領域的成長。作為此次轉型的一部分，我們也透過完成各部門的出售簡化了營運。此舉簡化了我們的業務結構，消除了對交易之外的各種未來資本承諾，同時允許我們保留少數股權以從任何潛在的未來成長中獲益。

We're also encouraged by our ongoing comprehensive strategy review with the board which includes the ongoing assessment of our B2C business to ensure we adopt the optimal operating model for the future. We have significant flexibility in a retail business with an average store lease life of just less than three years which affords us the opportunity to continue evaluating our store footprint strategy to optimize this business.

我們與董事會正在進行的全面策略審查也令我們感到鼓舞，其中包括對我們的 B2C 業務的持續評估，以確保我們採用面向未來的最佳營運模式。我們在零售業務中擁有很大的靈活性，平均門市租賃期不到三年，這使我們有機會繼續評估我們的門市佈局策略以優化這項業務。

So we're making excellent progress in our pivots, securing new business developing relationships to expand into related industry segments where our core compasses excel all position ODP to derive sustainable EBITDA and cash flow in the future. Next, we're accelerating our investment in core B2B resources to capture these large opportunities and drive top line growth.

因此，我們在轉型方面取得了巨大進展，確保了新業務發展關係，以擴展到相關行業領域，我們的核心指南針超越了所有定位 ODP，以在未來獲得可持續的 EBITDA 和現金流。接下來，我們將加快對核心B2B資源的投資，以抓住這些巨大的機會並推動營收成長。

Our capital allocation strategy remains centered on investing in areas that offer the highest returns. And with that focus and the goal of building a stronger foundation for sustainable growth we have an enormous opportunity to invest into our core business to improve our future trajectory. We're prioritizing investments in talent, operations and technology at both Veyer and business solutions positioning our B2B businesses for growth.

我們的資本配置策略仍以投資回報最高的領域為中心。有了這樣的重點和為永續成長建立更堅實基礎的目標，我們將有巨大的機會投資於我們的核心業務，以改善我們未來的發展軌跡。我們優先在 Veyer 和商業解決方案方面對人才、營運和技術進行投資，以實現我們的 B2B 業務的成長。

We're very excited to invest in these B2B growth initiatives as we believe this offers the best use of capital and generates the highest return on investment. Given our plans to reprioritize our capital allocation into our core to dread growth we expect to substantially reduce the pace of our share repurchases. We believe this investment approach will maximize long term value for shareholders.

我們非常高興投資這些 B2B 成長計劃，因為我們相信這可以最大限度地利用資本並產生最高的投資回報。鑑於我們計劃重新調整資本配置至核心業務以因應成長，我們預期將大幅降低股票回購的速度。我們相信這種投資方式將為股東實現長期價值最大化。

Additionally, as we accelerate investment in our core business against the backdrop of our year-to-date performance and challenging macroeconomic environment. We have decided to modify our operational guidance for 2024.

此外，鑑於今年迄今的業績和充滿挑戰的宏觀經濟環境，我們加快了對核心業務的投資。我們決定修改2024年的營運指導。

In summary, despite the near term challenges, we have an attractive path to the future, leveraging our core strengths and accelerating our B2B focus. While it is taking time to be reflected in our results, we are making meaningful progress to regain traction and we're building a more sustainable foundation to drive future profitable growth.

總而言之，儘管面臨近期的挑戰，但我們擁有一條通往未來的理想之路，我們可以利用核心優勢並加快 B2B 重點。雖然這需要時間才能反映在我們的業績中，但我們正在取得有意義的進展以重新獲得動力，並正在建立更永續的基礎以推動未來的獲利成長。

We're already seeing progress in prioritizing our investments for the future in our core B2B business to capture these opportunities. Our team is committed and focused, confident in our operational excellence to drive long term success.

為了抓住這些機遇，我們在優先考慮核心 B2B 業務的未來投資方面已經取得了進展。我們的團隊全心投入、專心致志，堅信我們的卓越營運能夠推動長期成功。

With that, I will turn the call over to Max Wood.

說完這些，我將把電話轉給馬克斯·伍德 (Max Wood)。

Thank you Gerry and good morning to everyone on the call. I'm Max Hood, Chief Accounting Officer and Co- Interim CFO. I would like to cover the specifics of our results for the third quarter on slide 7. Please note that our results as presented are for continuing operations. We generated total revenue of $1.8 billion in the quarter which was down about 11% compared to last year's third quarter.

謝謝 Gerry，祝電話中的各位早安。我是馬克斯‧胡德 (Max Hood)，首席會計長兼聯席臨時財務長。我想在第 7 張投影片上介紹我們第三季業績的具體情況。請注意，我們所呈現的結果適用於持續經營。本季我們的總營收為 18 億美元，與去年第三季相比下降約 11%。

This was primarily driven by lower sales in Office Depot including the effect of 53 fewer stores in service compared to last year and lower volume in a highly competitive back to school season. As well as lower sales and ODP Business Solutions. GAAP operating income in the quarter was $102 million versus $108 million in the prior year period.

這主要是由於 Office Depot 銷售額下降，包括與去年相比減少了 53 家在職商店，以及競爭激烈的返校季節銷量下降。以及較低的銷售額和ODP商業解決方案。本季 GAAP 營業收入為 1.02 億美元，去年同期為 1.08 億美元。

Operating results in the third quarter of 2024 included $61 million of credits primarily due to the company recognizing $70 million of income related to legal matter monetization where the company is engaged in legal proceedings as a plaintiff. This was partially offset by $2 million in net, merger and restructuring expenses and $7 million non-cash asset impairment.

2024 年第三季的經營業績包括 6,100 萬美元的信貸，這主要是由於公司確認了 7,000 萬美元與法律事務貨幣化相關的收入，其中公司作為原告參與法律訴訟。但其中 200 萬美元的淨額、合併重組費用以及 700 萬美元的非現金資產減損部分抵銷了這一損失。

Related to the operating lease, right of use assets associated with the company's retail store locations, excluding these charges our adjusted operating income for the third quarter was $41 million compared to $112 million in last year's third quarter. Unallocated corporate expenses were $19 million in Q3 adjusted EBITDA was $62 million in the quarter compared to $138 million in last year's third quarter.

與公司零售店面相關的經營租賃、使用權資產相關，不包括這些費用，我們第三季的調整後營業收入為 4,100 萬美元，而去年同期為 1.12 億美元。第三季未分配公司費用為 1,900 萬美元，調整後 EBITDA 為 6,200 萬美元，而去年同期為 1.38 億美元。

This includes depreciation and amortization expense of $24 million in the third quarters of 2024 and 2023, respectively. Excluding the after tax impact from the items mentioned earlier adjusted net income from continuing operations for the third quarter was $24 million or $0.71 per diluted share compared to adjusted net income of $85 million or $2.17 per diluted share in the prior year period.

其中包括 2024 年和 2023 年第三季分別的 2,400 萬美元的折舊和攤提費用。除去前面提到的項目的稅後影響，第三季度調整後的持續經營淨利潤為 2400 萬美元，即每股攤薄收益 0.71 美元，而去年同期調整後的淨利潤為 8500 萬美元，即每股攤薄收益 2.17 美元。

Turning to cash flow, operating cash flow from continuing operations in the quarter was $81 million which included about $10 million of restructuring spend. This was down compared to $120 million in the same period last year primarily due to the flow through impact of lower sales and timing related to working capital. Capital expenditures in the quarter were $22 million versus $20 million in the prior year period reflecting growth, investments in the company's core operations. Adjusted free cash flow in the quarter was $68 million compared to $102 million last year.

談到現金流，本季來自持續經營的經營現金流為 8,100 萬美元，其中包括約 1,000 萬美元的重組支出。與去年同期的 1.2 億美元相比，這一數字有所下降，主要原因是銷售額下降和營運資本相關時間的流動影響。本季的資本支出為 2,200 萬美元，而去年同期為 2,000 萬美元，反映了公司核心業務的成長和投資。本季調整後的自由現金流為 6,800 萬美元，去年同期為 1.02 億美元。

Now, turning to our results and our business units starting with our B2B distribution division on slide 8, ODP Business Solutions performance was impacted by the continued weak macro environment and challenging business conditions. Including the effects of well publicized corporate layoffs these conditions led to continued tight budgets and constrained enterprise spending all against a very intense competitive period for the business.

現在，讓我們回顧一下我們的業績和業務部門，從第 8 頁的 B2B 分銷部門開始，ODP 商業解決方案的業績受到持續疲軟的宏觀環境和充滿挑戰的商業條件的影響。包括廣為人知的公司裁員的影響，這些情況導致預算持續緊縮，企業支出受到限制，而這一切都發生在企業競爭非常激烈的時期。

Additionally, the hurricanes also impacted performance, shutting down distribution centers and disrupting business usage in our largest markets. While we have seen pressure throughout much of this year in our B2B division, as Gerry mentioned, it does not appear to be getting worse and topline trends have largely stabilized.

此外，颶風也影響了業績，導致配送中心關閉並擾亂了我們最大市場的業務使用。正如 Gerry 所說，雖然今年大部分時間我們的 B2B 部門都面臨壓力，但情況似乎並沒有變得更糟，營收趨勢基本上已經穩定。

Our daily sales trends have remained generally consistent over the past several weeks, giving us greater confidence that we are at the bottom end of the cycle. Revenue was $916 million in the third quarter, which was down about 8% compared to last year driven by the factors I mentioned. From a product standpoint, most categories were lower on a year over year basis as were the sales of technology products. A factor that many other companies are experiencing industry wide. Lower sales of larger ticket items in our furniture category also contributed to the softer top line.

在過去幾週中，我們的每日銷售趨勢基本上保持穩定，這讓我們更加相信我們正處於週期的底端。第三季的營收為 9.16 億美元，由於我提到的因素，與去年相比下降了約 8%。從產品角度來看，大多數類別的銷售額年比都有所下降，科技產品的銷售額也是如此。許多其他公司在整個行業中都面臨的一個因素。家具類別中大件商品銷售下降也是導致營收下滑的原因之一。

While we expect some enterprise softness to remain in the near term, we are encouraged by the early signs of traction resulting from the initiatives that we've put in place. We just signed one of the largest contracts in our company's history and we're beginning to see better deal flow and larger opportunities building in our late stage pipeline.

雖然我們預期短期內企業仍將保持一定的疲軟態勢，但我們對所採取的措施所帶來的早期推動跡象感到鼓舞。我們剛剛簽署了公司歷史上最大的合約之一，我們開始看到更好的交易流程和後期管道中更大的機會。

And as Gerry mentioned, we are well positioned to target additional growth opportunities in the large and growing non-traditional industry segments, namely in the hospitality arena, breaking down our sales data further our adjacency product categories as a percentage of total revenue a primary KPI was 44% in the quarter generally consistent with last year and recent trends.

正如 Gerry 所提到的，我們已做好準備，在龐大且不斷增長的非傳統行業領域（即酒店業）中尋找額外的增長機會。

From an operating perspective the flowthrough effect of lower revenues pricing mix and the related fixed cost deleveraging resulted in operating income of $28 million in the quarter compared to $56 million in the prior year period. EBITDA margins were approximately 4% in the quarter down year over year.

從營運角度來看，較低的收入定價組合和相關的固定成本去槓桿的流通效應導致本季的營運收入為 2,800 萬美元，而去年同期為 5,600 萬美元。本季 EBITDA 利潤率年減約 4%。

While we are disappointed with our performance in the quarter and year-to-date results, we are encouraged by the traction we're gaining on our initiatives, leveraging our strong competitive position and value added capabilities, winning new business and positioning to target higher growth industry sectors in the future.

雖然我們對本季和年初至今的表現感到失望，但我們對自己舉措所取得的進展感到鼓舞，利用我們強大的競爭地位和增值能力，贏得新業務並定位於未來瞄準更高增長的行業領域。

Now turning to our results in our consumer division Office Depot is shown on slide 9, in the third quarter Office Depot's top line continued to be challenged as the weaker economy and the impact of inflation reduced the pace of spending during what turned out to be a highly competitive back to school season. Demand in certain back to school categories, industry wide were lower compounded by consumers reprioritizing spend due to rising energy and food costs.

現在來看看我們消費部門 Office Depot 的業績（幻燈片 9），第三季 Office Depot 的營收繼續面臨挑戰，因為經濟疲軟和通貨膨脹的影響降低了在競爭激烈的返校季的支出速度。由於能源和食品成本上漲，消費者重新調整支出優先順序，導致整個行業中某些返校類別的需求下降。

Additionally, fewer stores in service versus last year compounded by the hurricanes that hit our largest service territories also negatively impacted sales. Reported revenue for the quarter stood at $861 million a 15% decline driven by 53 fewer retail stores in service versus last year as well as lower traffic and transactions in both our retail and e-commerce channels.

此外，與去年相比，提供服務的門市數量減少，加上颶風襲擊了我們最大的服務區域，也對銷售產生了負面影響。本季報告的收入為 8.61 億美元，下降 15%，因為與去年相比，零售店減少了 53 家，而且零售和電子商務通路的客流量和交易量都有所下降。

Demand was lower across most categories including supplies, print and furniture. On a comparable store basis sales were down about 10% as lower traffic, fewer transactions and lower average order volume outweighed strong conversion metrics. From an operating perspective, operating income was $23 million in the quarter driven by the flow through effect of lower sales, mix and deleveraging and supply chain and occupancy costs.

大多數類別的需求都較低，包括用品、印刷品和家具。與同店相比，銷售額下降了約 10%，因為客流量減少、交易量減少以及平均訂單量下降抵消了強勁的轉換率指標。從營運角度來看，本季營運收入為 2,300 萬美元，這得益於銷售額下降、產品組合和去槓桿以及供應鏈和占用成本的傳導效應。

Moving forward, we will continue optimizing our store footprint and look to further expand our customer value proposition through a wider variety of products and services. We're also enhancing our value proposition through a multitude of partnerships including with Telos for our TSA signup programs available in about 170 stores and relationships with Dormify, Hallmark and Dun and Bradstreet, among others.

展望未來，我們將繼續優化我們的門市佈局，並尋求透過更多樣化的產品和服務進一步擴大我們的客戶價值主張。我們也透過多種合作來增強我們的價值主張，包括與 Telos 合作在約 170 家商店推出的 TSA 註冊計劃，以及與 Dormify、Hallmark、鄧白氏等公司的合作。

Also, we're taking the learnings from our recent performance in back to school category sales and we're implementing strategies that focus on earlier execution of our capabilities such as school supply lists and teacher wish lists for their classrooms. We also have refined our pricing and promotion strategy moving forward to maximize elasticity of demand.

此外，我們正在吸取近期返校類銷售表現的經驗教訓，並正在實施一些策略，重點是儘早發揮我們的能力，例如學校用品清單和教師對教室的願望清單。我們也改進了定價和促銷策略，以最大限度地提高需求彈性。

Now turning to Veyer's performance as shown on slide 10. Veyer continued to drive strong momentum in the quarter, managing the lower volumes from its internal customers ODP Business Solutions and Office Depot, while continuing to build its momentum and driving revenue growth from third party customers. On a consolidated basis Veyer delivered sales of approximately $1.2 billion derived predominantly from supporting our purchasing and supply chain operations which are effectively eliminated upon consolidation.

現在來看看幻燈片 10 中展示的 Veyer 的表現。Veyer 在本季持續保持強勁勢頭，管理來自其內部客戶 ODP Business Solutions 和 Office Depot 的較低銷量，同時繼續保持成長勢頭並推動來自第三方客戶的收入成長。從合併口徑來看，Veyer 的銷售額約為 12 億美元，主要來自於支持我們的採購和供應鏈運營，而這些銷售額在合併後實際上被抵消了。

Veyer continue to make strong progress with third party customers including winning a major contract with one of the world's largest social media focused e-commerce companies as Gerry mentioned earlier. Keeping in mind that some of Veyer's third-party profitability is accounted for as a contra expense instead of flowing through revenue for Q3 Veyer delivered third party revenue of over $14 million or approximately a 30% increase over last year. Veyer drove third party EBITDA of $3 million slightly down year over year as the company invested in resources to quickly onboard its slate of new customers in the quarter.

Veyer 在與第三方客戶的合作中繼續取得重大進展，包括贏得與世界上最大的以社交媒體為重點的電子商務公司之一的重要合同，正如 Gerry 之前提到的。請記住，Veyer 的部分第三方獲利能力被記為備抵費用而不是流動收入，第三季 Veyer 的第三方收入超過 1,400 萬美元，比去年同期成長了約 30%。由於 Veyer 在本季度投入資源以迅速吸引新客戶，因此第三方 EBITDA 為 300 萬美元，比去年同期略有下降。

Now turning to other recent accomplishments in October, we completed the sale of our Veyer's division while retaining a 19.9% stake in the company after the sale. As part of the agreement, we will fund up to $4 million of expenses that may be incurred by Veyer's following the transaction date until the end of 2025. Beyond this, we have no other funding obligations to Veyer's. Other terms of the transaction did not result in a materially different impact than we previously estimated in our Q2 financial statements.

現在回顧 10 月的其他最新成就，我們完成了 Veyer 部門的出售，同時在出售後保留了該公司 19.9% 的股份。作為協議的一部分，我們將為 Veyer's 在交易日期之後至 2025 年底之間可能產生的最高 400 萬美元的費用提供資金。除此之外，我們對 Veyer's 沒有其他融資義務。交易的其他條款並未產生與我們先前在第二季財務報表中所估計的重大不同的影響。

The completion of this sale unburdens our P&L and reduces cash flow demands while continuing an invested interest in future growth opportunities.

此次出售的完成減輕了我們的損益負擔並減少了現金流需求，同時繼續投資於未來的成長機會。

Now I'll turn it over to Adam to cover our balance sheet highlights and amended 2024 guidance.

現在我將把時間交給亞當來介紹我們的資產負債表重點和修訂後的 2024 年指引。

Thank you, Max and it's great to be here with everyone this morning. I'm Adam Haggard, Senior Vice President of FP&A and Co-Interim CFO.

謝謝你，馬克斯，很高興今天早上能和大家在一起。我是 Adam Haggard，FP&A 資深副總裁兼聯席臨時財務長。

Turning to slide 12, our balance sheet and liquidity position remains strong and in the quarter with total liquidity of $728 million consisting of $192 million in cash and cash equivalents including $11 million that is presented in current assets held for sale related to the various division. And $536 million of available credit under the fourth amended credit agreement. Total debt was $246 million.

轉到第 12 頁，我們的資產負債表和流動性狀況依然強勁，本季總流動性為 7.28 億美元，包括 1.92 億美元的現金和現金等價物，其中包括與各部門相關的持有待售流動資產中的 1,100 萬美元。根據第四次修訂的信貸協議，可提供 5.36 億美元的信貸。總債務為 2.46 億美元。

Moving on to capital allocation. We continue to execute our capital allocation strategy both investing in the future of our business while returning capital to shareholders under our buyback authorization. In the third quarter, we repurchased just over $100 million of our stock and a total of $295 million for the year-to-date.

繼續進行資本配置。我們將繼續執行我們的資本配置策略，既投資於我們業務的未來，也根據我們的回購授權向股東返還資本。第三季度，我們回購了價值超過 1 億美元的股票，今年迄今回購總額已達 2.95 億美元。

As Gerry mentioned, moving forward, we are redirecting investment into core B2B resources to capture the large growth opportunities that are before us at ODP Business Solutions and Veyer. Considering the large amount of shares we already repurchased this year and our focus on reprioritizing investments into our core to drive growth. We expect to substantially reduce the pace of our share repurchases as we close out the year. We have a tremendous opportunity to invest in growth in our B2B businesses and we believe this approach will drive the highest ROI and create long term value for shareholders.

正如 Gerry 所提到的，展望未來，我們將把投資重新轉向核心 B2B 資源，以抓住 ODP Business Solutions 和 Veyer 面臨的巨大成長機會。考慮到我們今年已經回購了大量股票，並且我們專注於重新調整核心投資以推動成長。我們預計在年底時將大幅減緩股票回購的速度。我們在 B2B 業務成長方面擁有巨大的投資機會，我們相信這種方法將帶來最高的投資回報率並為股東創造長期價值。

Now turning to our guidance on slide 13. As you heard this morning, our results here to date have clearly been pressured by the continued challenging macro and business environment. Strong competition and the impacts from the recent hurricanes. That said we are making very meaningful progress on several initiatives to drive sustainable growth in the future.

現在轉到第 13 頁的指示。正如大家今天早上所聽到的，我們迄今為止的業績顯然受到了持續嚴峻的宏觀和商業環境的壓力。激烈的競爭和最近颶風的影響。也就是說，我們在推動未來永續成長的多項措施上取得了非常有意義的進展。

While it does take time to be reflected in our results, we are investing in these opportunities and are confident we are on the right path to create increased shareholder value. Considering our performance to date current market dynamics and our decision to fast forward investments in future growth opportunities.

雖然這需要時間才能反映在我們的業績中，但我們正在投資這些機會，並相信我們正走在創造更多股東價值的正確道路上。考慮到我們迄今為止的表現、當前的市場動態以及我們加快對未來成長機會的投資的決定。

We are amending our 2024 guidance as follows. We are maintaining our revenue guidance at approximately $7 billion for 2024. We're lowering our adjusted EBITDA outlook to a range of $260 million to $300 million and our adjusted operating income to a range of $160 million to $200 million.

我們將對 2024 年指引進行以下修改。我們維持 2024 年約 70 億美元的營收預期。我們將調整後的 EBITDA 預期下調至 2.6 億至 3 億美元之間，並將調整後的營業收入預期下調至 1.6 億至 2 億美元之間。

We are also lowering our outlook for adjusted earnings per share to a range of 310 to 380 per share. And finally, we are suspending our guidance for adjusted free cash flow as we invest in the exciting growth opportunities that we previously mentioned. Overall to reiterate our revised guidance takes into consideration the near term investment demands occurring before year end and initiatives to capture new growth opportunities we described including the pursuit of attractive new industry segments as discussed.

我們也將調整後每股盈餘預期下調至每股 310 至 380 美分之間。最後，由於我們正在投資之前提到的令人興奮的成長機會，我們暫停對調整後自由現金流的指導。總體而言，重申我們的修訂指引，考慮到年底之前的短期投資需求以及我們所描述的抓住新增長機會的舉措，包括追求如上所述的有吸引力的新行業領域。

With that, I will turn the call over to Gerry for his final remarks.

說完這些，我將把電話轉給格里，請他發表最後的發言。

Thank you, Adam. Before I turn over for Q&A, I would like to highlight four key points about our performance and strategy and the reason for our enthusiasm as we move forward.

謝謝你，亞當。在進入問答環節之前，我想強調我們的業績和策略的四個要點，以及我們前進的熱情所在。

First, there's no question that our business has faced challenges this year and our overall performance has been below expectations. While it has been difficult, we are working to navigate through the challenging macroeconomic environment. We are making progress in positioning our business to gain better traction in the future.

首先，毫無疑問，我們的業務今年面臨挑戰，整體業績低於預期。儘管很困難，我們仍在努力應對充滿挑戰的宏觀經濟環境。我們正在不斷推進業務定位，以便在未來獲得更好的發展。

Second underneath the surface, we're making significant progress in leveraging our core strengths to evolve our business to higher growth and more sustainable B2B market opportunities. Our core strengths are centered around our flexible nationwide supply chain. Our large and growing B2B customer base and our strong value proposition all backed by a solid balance sheet.

其次，從表面來看，我們在利用核心優勢將業務發展到更高成長、更永續的 B2B 市場機會方面取得了重大進展。我們的核心優勢集中在靈活的全國供應鏈。我們龐大且不斷成長的 B2B 客戶群以及強大的價值主張均由穩健的資產負債表支撐。

Third, we are gaining traction and building momentum for the future. We are leveraging these assets and winning meaningful new contracts in our traditional business including winning one of the largest contracts in our company's history. We're also evolving our capabilities to pursue growth in new non-traditional industry segments. These new industry segments are relevant adjacencies to our core and offer tremendous opportunities for growth. And as I mentioned, one of the areas we are targeting and showing great promise is in the hospitality industry segment.

第三，我們正在獲得關注並為未來儲蓄力量。我們正在利用這些資產，在我們的傳統業務中贏得有意義的新合同，包括贏得公司歷史上最大的合約之一。我們也不斷提升自身能力，以追求新的非傳統產業領域的成長。這些新的行業領域與我們的核心業務相關，並提供了巨大的成長機會。正如我所提到的，我們所瞄準的並且前景廣闊的領域之一是酒店業。

And last, we are strategically investing to seize these opportunities. We believe that channeling capital into our core areas to drive growth will yield strong returns on investment and deliver the best long term value for our shareholders. While it may take time for these efforts to reflect in our results, we have a clear and promising path ahead. Our team is focused on capturing these B2B opportunities, driving operational excellence and delivering long term value to our shareholders.

最後，我們正在進行策略性投資以抓住這些機會。我們相信，將資本引入我們的核心領域以推動成長將產生強勁的投資回報，並為我們的股東帶來最佳的長期價值。雖然這些努力可能需要一些時間才能體現在成果中，但我們前面的道路清晰而充滿希望。我們的團隊專注於抓住這些 B2B 機會、推動卓越營運並為我們的股東創造長期價值。

With that, operator will turn it over for questions and answers.

說完，操作員將把它交給操作員進行提問和解答。

(Operator Instructions)

（操作員指令）

Michael Lasser, UBS.

瑞銀的麥可‧拉瑟 (Michael Lasser)。

Good morning. Thank you so much for taking my question. It's on how did ODPs market share trend across both the business solutions division as well as retail within not just the last quarter but over the last few quarters because it does seem like there is progressive weakness in the business driven in part by a loss of customers. And that is harder to ascribe to simply the macro environment. Thank you very much and then I have a follow up.

早安.非常感謝您回答我的問題。這是關於 ODP 的市場份額在商業解決方案部門以及零售部門的趨勢，不僅是上個季度，而且是過去幾個季度，因為看起來業務確實出現了逐漸疲軟的跡象，部分原因是客戶流失。而這很難簡單地歸咎於宏觀環境。非常感謝，然後我會跟進。

Hi, good morning, Michael. This is Gerry and I'll let Adam and Max jump in as well. I would say we're holding our own. I mean, you saw the B2B win we just had, that's a very, very sizable win on the B2B space. And in the traditional office supply segment, that's obviously will be extremely accretive to us over as we ramped up that over a period of time.

嗨，早上好，麥可。這是格里，我也讓亞當和馬克斯加入。我想說我們堅守住了自己的立場。我的意思是，您看到了我們剛剛取得的 B2B 勝利，這是 B2B 領域一次非常非常大的勝利。在傳統辦公用品領域，隨著我們一段時間內不斷擴大業務，這顯然會為我們帶來極大的增值。

From a B2C perspective, definitely, you know, I would say we're holding our own, I mean, the hurricane impact and having three hurricanes in the quarter in our biggest markets in Florida and Texas. Those weren't just a couple of day type of impacts. We had distribution centers, we had B2B business all impacted by that. But I think I'll let Max and Adam jump in, but I don't think we're losing a huge amount of market share to a specific person.

從 B2C 的角度來看，我肯定會說我們能夠抵禦颶風的影響，本季我們最大的市場佛羅裡達州和德州遭遇了三次颶風。這些不只是幾天的影響。我們有一個配送中心，我們的 B2B 業務都受到了它的影響。但我想我會讓馬克斯和亞當加入，但我不認為我們會因為某個特定的人而失去大量的市場份額。

Yeah, and I'll jump in as well. Hi Michael. This is Adam Haggard. One of the nice things that we're seeing is that the trends moving forward are definitely more positive for us as we exit Q3 into Q4 and heading into next year. We're very optimistic the new wins that we have and we think that they're going to be really accretive to the business as we move forward as time moves on. Obviously, those winds need to ramp up and they'll take some time and we need some near term investment around them, which is great. It's a great problem to have for us and we really are excited about the trajectory changing new wins that we have underneath our --

是的，我也要加入。你好，麥可。這是亞當·哈加德。我們看到的一件好事是，隨著我們結束第三季度，進入第四季度並邁入明年，未來的趨勢對我們來說肯定更加積極。我們對於所取得的新勝利非常樂觀，我們認為，隨著時間的推移，這些勝利將真正對我們業務產生增值作用。顯然，這些風力需要增強，這需要一些時間，我們需要在短期內對它們進行投資，這很好。這對我們來說是個大問題，我們真的很高興看到我們改變軌跡並取得新的勝利。--

In October, in November it's been stronger across especially the B2C business compared to Q3.

與第三季相比，10 月和 11 月業務表現更加強勁，尤其是 B2C 業務。

Okay. My follow up question is obviously there's a ton of moving parts with ODP Corp P&L. But the market's going to extrapolate some of the recent performance into next year. So A, why is that wrong? Why should the market not just take what has been the performance of the last few quarters and think that's a reasonable basis on how to look at 2025 from a profitability perspective. And B, how will the new distribution agreement as well as customer wins quantifiably impact ODP Corp's profitability next year. Thank you very much.

好的。我的後續問題是，ODP 公司損益表中顯然有大量變動部分。但市場將把最近的一些表現延續到明年。那麼 A，這為什麼是錯的呢？為什麼市場不應該只考慮過去幾季的表現並認為這是從獲利角度看待 2025 年的合理基礎。B，新的分銷協議以及客戶勝利將如何量化影響ODP公司明年的獲利能力。非常感謝。

So I'll jump in first and let the guys jump in over the top after. But from the big difference is that the trajectory change in opportunities. I talked about that last time there's three, we're working on, we've delivered two and obviously the $1.5 billion over 10 years is very, very significant and work a lot of other pieces. So we think that plus the continued progress we made in there from a revenue perspective, our trajectory changing.

因此我會先進去，然後讓其他人從上面跳過去。但從大的方面來看，差異就在於機會軌跡的改變。我上次談到了有三個項目，我們正在努力，已經完成了兩個，顯然 10 年內的 15 億美元非常非常重要，並且還有很多其他項目。因此，我們認為，從收入角度來看，我們在該領域取得的持續進展以及我們的軌跡正在改變。

There's other things we're working on also that it's a new business that we're not disclosing and discussing at this time. So, and I think we're seeing some stabilization from a market perspective that, which has given us some optimism. The second piece and I want to emphasize is we're going to go look at the optimal operating model for B2C business.

我們還在進行其他工作，這是一項新業務，目前我們還未披露和討論。因此，我認為從市場角度來看我們看到了一些穩定，這給了我們一些樂觀的感覺。第二點我想強調的是，我們將研究 B2C 業務的最佳營運模式。

And just at a high level, we addressed SG&A really well with this company over the last six or seven years, we're really going to start digging into the fixed asset structure cost of the business. And we think that is a significant driver for future profitability as we assess that it will come back in the late February, early March when we do our earnings for 2024.

從高層次來看，過去六、七年來，我們與這家公司很好地解決了銷售、一般及行政費用問題，我們將真正開始深入研究該企業的固定資產結構成本。我們認為這是未來獲利能力的重要驅動力，因為我們評估它將在 2 月底或 3 月初我們計算 2024 年收益時回升。

And I think we'll have a very comprehensive strategy update for the market. And we're going to be able to address a exciting path to the future of how we get back to a profitable growth across the business. And again, and lastly, we do a really good job from an operating model perspective of driving cash. And we're going to continue to do that in driving costs across the business.

我認為我們將針對市場制定非常全面的策略更新。我們將能夠找到一條令人興奮的未來之路，即如何讓整個業務恢復獲利成長。最後，從營運模式的角度來看，我們在推動現金方面做得非常好。我們將繼續這樣做，降低整個企業的成本。

But I want to use the three words optimized for growth, that's going to be a rallying cry, what we've focused on strategy wise as a board. And we think we have the right adjacency markets that are similar in size, Michael to our office supply market and they're growing at a 4% to 6% CAGR depending on the market. And so, and those markets perfectly with what our capabilities and strengths are from a supply chain customer base many of the customers are already customers of our in some of these markets.

但我想用三個字來表達：優化成長，這將是一個戰鬥口號，也是我們董事會在策略方面關注的重點。我們認為，我們擁有與我們的辦公用品市場規模相似的相鄰市場，根據市場情況，它們的複合年增長率為 4% 至 6%。因此，這些市場與我們的能力和優勢完美契合，從供應鏈客戶群來看，其中許多客戶在某些市場已經是我們的客戶。

And so we're going to go leverage the entrance of these markets as a way to grow as well. Optimized for growth, optimize the BDC structure continue to look at the fixed cost structure and the new shoots are always to get a different trajectory in the business in '25.

因此，我們將利用這些市場的進入來促進成長。優化成長，優化 BDC 結構，繼續專注於固定成本結構和新芽，以在 25 年獲得不同的業務軌跡。

Greg Burns, Sidoti.

格雷格·伯恩斯、西多蒂。

Thanks. Just wanted to maybe follow up on the new industry segments you're targeting. You give us just a little bit of a color, the size and the growth of some of those markets. But could you just help us understand how you're penetrating those markets? What the conversations are like? Trying to move into these new markets sounds like hospitality may be a little bit more developed and maybe some of the other areas that you're looking at any other kind of additional color on how you're approaching, expanding into these non-traditional office categories.

謝謝。只是想跟進一下您所針對的新行業領域。您向我們簡單介紹一下這些市場的一些概況、規模和成長。但您能否幫助我們了解您是如何進入這些市場的？對話是什麼樣的？嘗試進入這些新市場聽起來好像酒店業可能更發達一些，也許您正在關注的其他一些領域在您如何處理、擴展到這些非傳統辦公類別方面有任何其他額外的色彩。

Yeah, the key is, it's leveraging our core strengths and some of the customers in these markets are already existing customers. And honestly, the conversations really were created out of conversations with our Dave sales team and the customers. And so we found that our core strengths can be leveraged in some of the other segments they operate in.

是的，關鍵是要利用我們的核心優勢，而這些市場中的一些客戶已經是現有客戶。老實說，這些對話確實是在我們的 Dave 銷售團隊和客戶之間的對話中產生的。因此，我們發現，我們的核心優勢可以在他們營運的其他一些領域中得到利用。

And what I like about these segments are, A, they're growing unlike office supplies, which is great. It's a similar market size. We already have a number of the customers as customers. We already have trucks delivered to a lot of these locations as well. So you can leverage that supply chain infrastructure and you need that competitive value we have of that same day, next day delivery that complex delivery type of capability to locations, ability to have visibility of inventory and tracking that a lot of things you can't just get from a normal e-commerce type of play.

我喜歡這些細分市場的原因是，A，它們的成長與辦公用品不同，這很好。市場規模相似。我們已經擁有一批客戶。我們已派遣卡車將貨物運送至許多此類地點。因此，您可以利用該供應鏈基礎設施，並且您需要我們所擁有的當天送達、次日送達的競爭價值，這種複雜的送貨到位的能力，以及庫存可見性和跟踪能力，而很多東西您無法從普通的電子商務類型遊戲中獲得。

And so it fits well from a competitive perspective and we think there's a growth opportunity and we're well into conversations and we're going to attack this market aggressively. We think it's a and I love the fact it's literally almost the same size as our current B2B office supply market as well. So get into the growth market, same skill set, same supply chain, same customer footprint, same sales team, et cetera.

因此，從競爭角度來看，這非常合適，我們認為這是一個成長機會，我們正在進行深入討論，我們將積極進入這個市場。我們認為這是一個事實，而且我喜歡這個事實，它的規模幾乎與我們目前的 B2B 辦公用品市場相同。因此進入成長市場，相同的技能組合，相同的供應鏈，相同的客戶足跡，相同的銷售團隊等等。

Okay. And obviously you announced the large $1.5 billion deal. But what does the pipeline look like in terms of maybe size of opportunities relative to maybe that $1.5 billion deal you announced and how far along maybe some of these conversations are where you maybe have line of sight on signing a couple of new kind of trajectory changing deals in the first half of next year.

好的。顯然，你宣布了這筆 15 億美元的大交易。但是，相對於您宣布的 15 億美元交易，機會的規模可能如何？ 這些談判可能進行到何種程度？

Yeah, so on the $1.5 billion deal that deal is signed and we're already working on the transition and implementation plans across that business. So you'll see that grow throughout, we'll start to ship a little bit this quarter and a lot more into '25. And so super happy because that is obviously, a tremendous number of basis points of growth for us as a company.

是的，這項價值 15 億美元的交易已經簽署，我們現在正在製定該業務的過渡和實施計劃。因此，您將看到整個過程都在成長，本季我們將開始出貨少量產品，到 25 年將出貨更多產品。我非常高興，因為這顯然是我們公司巨大的成長基點。

A number of other deals are in the pipeline, obviously for competitive reasons I'm not going to get a lot of detail, but we have some other trajectory changing opportunities. We're going to work on through Q4 and Q1 and we're very optimistic that I really want to emphasize that we think the B2B pivot is working and this is the first stake in the sand on that plus the Veyer supply chain opportunity is a significant opportunity.

還有許多其他交易正在籌備中，顯然出於競爭原因，我不會透露太多細節，但我們還有一些其他改變軌蹟的機會。我們將在第四季和第一季繼續努力，我們非常樂觀，我真的想強調的是，我們認為 B2B 轉型正在發揮作用，這是在這方面取得的第一步，再加上 Veyer 供應鏈機會是一個重要的機會。

And as I said, in the last earnings, it's as big as what 2023 revenue was for Veyer. And so that is the case and could be higher than that. And so we're going to continue to grow that opportunity because we think that can yield additional results for the Veyer business also. So we think our future is in B2B, we're going to go look for the optimal, operating model for B2C. Again, I want to really focus, have an investor here, but we're really going to look at the fixed cost infrastructure around that business and find the optimal model, put us in a more profitable competitive position going forward.

正如我所說，在上一次收益中，它與 Veyer 2023 年的收入一樣多。事實確實如此，甚至可能更高。因此，我們將繼續擴大這一機會，因為我們認為這也可以為 Veyer 業務帶來額外的成果。所以我們認為我們的未來在 B2B，我們將尋找 B2C 的最佳營運模式。再說一次，我希望真正集中精力，在這裡吸引投資者，但我們實際上會關注該業務周圍的固定成本基礎設施，並找到最佳模型，使我們在未來處於更有利可圖的競爭地位。

Okay? And then when we think about kind of the level of reinvestment that you're making, you didn't talk too much about project core, and your prepare remarks. But how should we think about kind of what you've talked about targeting, I guess $100 million you're targeting from project core versus maybe what's going back in the business. Is there a net number we should think about next year or for in total?

好的？然後，當我們考慮您進行的再投資程度時，您並沒有過多談論專案核心和您的準備發言。但是，我們應該如何看待您談到的目標？我們是否應該考慮明年的淨數字或總計數字？

Let me talk high level, then I'll flip it over to Max and Adam. But I mean project core is pretty much complete. We did have -- we know $100 million for 2025 operating is a model is the right number. And again, as we look at the operating model for our B2C business, we're going to continue to look at the fixed cost structure plus the SG&A structure across the businesses and more to come in the late February early March meeting. But Max Adam, anything that.

讓我從高層次講一下，然後我會將話題轉給 Max 和 Adam。但我的意思是專案核心已經基本完成。我們確實有——我們知道 2025 年的營運預算為 1 億美元是一個正確的數字。再次，當我們審視 B2C 業務的營運模式時，我們將繼續審視整個業務的固定成本結構以及銷售、一般及行政費用結構，更多內容將在 2 月底 3 月初的會議上公佈。但是馬克斯亞當，任何事。

Yeah. Hi, Greg. This is Max. I just wanted to add quickly progress on project core. We are right on track of where we want to be. The majority of actions are in this year and we're substantially complete with our spend. So right on track for what Gerry said for next year.

是的。你好，格雷格。這是馬克斯。我只是想快速增加專案核心的進度。我們正沿著自己想要的方向前進。大多數行動都在今年完成，我們的支出也基本完成。這完全符合 Gerry 對明年的預測。

Okay. But just in terms of what you're now talking about reinvesting back in the B2B so that you're taking some of that 100 putting it back in the business. Is there like a net number maybe we should think about.

好的。但是就您現在談論的重新投資於 B2B 而言，您會拿出其中的部分資金重新投入業務。也許我們應該考慮一下淨數字。

No, that was that yes, we're putting investment back into the business, but from for competitive reasons, we want to make sure we can't disclose that. But we're investing in obviously ramping inventory to ramp up the large new win and obviously the infrastructure from Veyer perspective as to ramp up the large customer we already have as well.

不，是的，我們正在將投資重新投入到業務中，但出於競爭原因，我們希望確保不能透露這一點。但從 Veyer 的角度來看，我們顯然在投資增加庫存以增加新的大客戶，並且顯然在投資基礎設施以增加我們已經擁有的大客戶。

So that we are making investments in those categories and if we, as we enter into the, some of these other segments will make investments because those are new suppliers and the new opportunities and new inventory also. But we think, we did a great job of manage your inventory always and we'll continue to do that. And we're not being, it did disorderly from an investment inventory perspective.

因此，我們正在這些類別上進行投資，如果我們進入其他一些領域，我們也會進行投資，因為這些是新的供應商、新的機會和新的庫存。但我們認為，我們在管理您的庫存方面一直做得很好，而且我們會繼續這樣做。從投資庫存的角度來看，情況確實沒有那麼混亂。

So, but it is taking some in the short term, some of the cash I do want to highlight we're not negative on cash, we're producing positive cash flow through the year. We're just because of these investments, it was hard to guide to the right to the exact number. Adam, do you want to add any color on that?

所以，但這在短期內需要一些現金，我想強調的是，我們的現金不是負數，我們全年都在產生正現金流。我們只是因為這些投資，很難指導出準確的數字。亞當，你想添加一些顏色嗎？

Yeah. No, it's a great point, Gerry, right. At the end of the day, we have a little bit of a near term bubble of working capital investment that we expect between now and the end of the year, right? We're highly focused on that return on invested capital and moving into these new green shoots that we see out there. So very exciting. Yes, we have a high degree of belief in our cash generation throughout the end of the year, we do believe we'll create positive cash between now and the end of Q4. So we'll be able to manage the near term investment and creating a positive cash environment for ourselves. So exciting days ahead, we look forward to this opportunity to reinvest our capital as we move on.

是的。不，這是一個很好的觀點，格里，對吧。歸根結底，我們預計從現在到年底，營運資本投資會出現一些短期泡沫，對嗎？我們高度關注投資資本的回報以及我們所看到的這些新的綠芽。非常令人興奮。是的，我們對今年年底的現金創造能力充滿信心，我們確實相信從現在到第四季末我們將創造正現金。因此我們將能夠管理短期投資並為自己創造一個積極的現金環境。未來的日子是如此令人興奮，我們期待著這個機會在我們繼續前進的過程中重新投資我們的資本。

All right, thank you.

好的，謝謝。

Thank you so much.

太感謝了。

Joe Gomes, Noble capital.

喬‧戈麥斯，諾貝爾資本。

Good morning.

早安.

Good morning, Joe.

早安，喬。

I was wondering, could you quantify the impact of the hurricanes for the quarter?

我想知道，您能量化颶風對本季的影響嗎？

It's very difficult to do because yes, we can quantify a store was closed for this period of time. Here's the average store sales, but what it doesn't do is and which we know is a much larger impact and harder to quantify. And I'm looking at my Chief Legal Officer here because we've had that debate of, we know it's a big number but, we had DCs for example, closed after Helene and Milton in Florida that's today's B2B business.

這很難做到，因為是的，我們可以量化一家商店關閉的這段時間。這是平均商店銷售額，但它沒有做到的是，我們知道這會產生更大的影響，而且更難量化。我正在找我的首席法律官，因為我們有過這樣的爭論，我們知道這是一個很大的數字，但是，例如，在佛羅裡達州的 Helene 和 Milton 之後，我們關閉了 DC，這就是今天的 B2B 業務。

And we track, I sit in a daily retail B2C review with Kevin Moffett every day. And we know, I mean that those regions were down substantially for day after day. Helene is probably the most impactful hurricane we've ever seen and so hard to go quantify as we compare that number to other regions it was much, much lower. But, it's hard to say this is the exact number, but it is a big impact and three within the quarter and we saw it leaning into Q4 as well, obviously with Milton.

我們進行跟踪，我每天都會和 Kevin Moffett 一起進行每日零售 B2C 審查。我們知道，這些地區的經濟連續幾天大幅下滑。海倫可能是我們所見過的最具影響力的颶風，而且很難量化，因為與其他地區相比，這個數字要低得多。但是，很難說這是確切的數字，但它的影響很大，而且本季有三次，我們也看到它傾向於第四季度，顯然是米爾頓的影響。

And so another reason why it's like, you can't make up for hurricanes in 100 plus days. And so, but it is a substantial impact, and, but macroeconomic conditions are an impact as well, it's a competitive market as well. And so, all those things had an impact so it's really hard for us to land on it on an exact number. But in my tenure here it's the biggest impact we've seen.

另一個原因是，你無法在 100 多天內彌補颶風的影響。所以，但這是有實質影響的，而且宏觀經濟條件也會產生影響，這也是一個競爭激烈的市場。所有這些因素都會產生影響，所以我們很難確定一個確切的數字。但這是我任職期間所見過的最大影響。

Okay. And then on the adjacencies, I kind of want to take that one more time. You mentioned hospitality and maybe you can give us an idea of some of the other ones that you're looking at. And, obviously these people, these companies are getting the supplies that they need already. Is it similar competition? You know, some of the same on office supplies, are you looking at new competitors in that space? And if so, maybe, you know, give us some of the bigger competitors that you're going against in the new adjacent spaces.

好的。然後關於鄰接問題，我想再談一次。您提到了酒店業，也許您可以向我們介紹您正在關注的其他一些酒店業。顯然這些人、這些公司已經獲得了所需的物資。這是類似的競爭嗎？您知道，辦公用品領域也存在類似的情況，您是否正在尋找該領域的新競爭對手？如果是這樣，也許，你知道，請告訴我們一些你在新的相鄰領域中要面對的更大的競爭對手。

Well, it's new competitors, new suppliers and for example, in hospitality, there are companies that are we respect as competitors, but we also think there, obviously some of the conversations we're having, we think we have the ability to compete to win and be effective there as well. We've got 40 years of experience in supply chain. We have a great supply chain.

嗯，這是新的競爭對手，新的供應商，例如，在酒店業，有些公司我們尊重它們為競爭對手，但我們也認為，顯然我們正在進行的一些對話表明，我們認為我們有能力競爭取勝，並且在競爭中取得成效。我們在供應鏈方面有40年的經驗。我們擁有優秀的供應鏈。

We've got great, ability to go off and deliver that. You know, I'll say complicated type of delivery that's difficult to do from an e-commerce perspective or a different path. And it's really an adjacency segment. It's not a big step outside the core too far. And so we think we can compete, we think we can be cost competitive. In the Veyer business has ability to cost in a very unique way that very few people have.

我們擁有強大的能力去實現這一目標。你知道，我會說從電子商務的角度或其他途徑來說，複雜的交付類型很難做到。它實際上是一個鄰接段。這並不是偏離核心太遠的一大步。因此我們認為我們能夠參與競爭，我們認為我們能夠在成本上具有競爭力。在 Veyer 業務中，很少有人能夠以非常獨特的方式計算成本。

We built that tool internally, we have the ability to cost to it a skew pick level which very few three PLS have. And so we know we can be competitive, we know we can do it at a competitive rate. And so we think it's a market we can compete in and put pressure on some of the competitors in space but always respect competitors.

我們在內部建立了該工具，我們有能力對偏差選擇等級進行評估，而很少有三個 PLS 具備這種評估能力。因此我們知道我們可以具有競爭力，我們知道我們可以以有競爭力的速度做到這一點。因此，我們認為這是一個我們可以競爭的市場，我們可以對太空領域的一些競爭對手施加壓力，但始終尊重競爭對手。

I am I going to go off and say, we think we can compete and be effective. Are we going to get 100% share? Heck no, but we're going to go off and we think we can compete into a growth market with the infrastructure we have, we do it again, we deliver trucks to a lot of those customers already. So there's a fixed cost, competitive infrastructure advantages. If that truck is already going there, it's incremental, cost to add something else to the truck.

我要說的是，我們認為我們能夠參與競爭，並且取得成效。我們會獲得 100% 的份額嗎？當然不是，但我們會繼續前進，我們認為我們可以利用現有的基礎設施在成長型市場中競爭，我們再次這樣做了，我們已經向許多客戶運送了卡車。因此，存在固定成本和競爭性基礎設施優勢。如果那輛卡車已經開往那裡，那麼在卡車上添加其他東西的成本就是增量成本。

And so we think there's a, there's a unique advantage that we have compared to others. And I think, we're excited with that opportunity. And I think if you look at, you know, beyond that, we think we can get into, for example, some of the same suppliers that deliver into hospitality, we think could deliver into some of the much larger health care areas.

因此我們認為，與其他人相比，我們擁有獨特的優勢。我認為，我們對這個機會感到非常興奮。而且我認為，如果你看一下，你知道，除此之外，我們認為我們可以進入一些為酒店業提供服務的供應商，我們認為這些供應商也可以進入一些更大的醫療保健領域。

If you think how you set out a hotel room, you can think similar to a cruise ship lines or you can think of hospitals or elder care homes, etcetera. There's all kinds of opportunity again, leveraging the same delivery supply chain network and again to our core, a clear one step adjacency at the most. But we think we can be competitive in all those areas.

如果您考慮如何佈置飯店房間，您可以將其想像成類似遊輪的航線，或者您可以將其想像成醫院或養老院等等。這裡再次存在各種各樣的機會，利用相同的交付供應鏈網絡，並再次回到我們的核心，最多實現明顯的一步相鄰。但我們認為我們在所有這些領域都具有競爭力。

And Dave and his team and Tom and that team have done a great job of identifying this. And again, our customers helped identify some of these segments, which is fantastic. And so we're going to pivot hard to it. We're going to get into growth segments. And I think that's how we grow value in this business over the long term. Leverage our fixed cost infrastructure, make sure it's optimal. Go get the B2B business growing and add our capabilities. What we really do well at and that's where we're going to go in.

戴夫和他的團隊以及湯姆和他的團隊在識別這一點上做得非常出色。而且，我們的客戶再次幫助我們確定了其中的一些細分市場，這真是太棒了。因此我們將大力轉向這一方向。我們將進入成長領域。我認為這就是我們長期增加業務價值的方法。利用我們的固定成本基礎設施，確保其最佳效果。去發展 B2B 業務並增強我們的能力。我們真正擅長的就是這個領域，這就是我們要努力的方向。

Okay, great. Thanks for taking my questions.

好的，太好了。感謝您回答我的問題。

Thank you. Appreciate it.

謝謝。非常感謝。

Michael Lasser, UBS.

瑞銀的麥可‧拉瑟 (Michael Lasser)。

One quick follow up question for you guys. When do you think you'll have enough visibility into your free cash flow generation to start providing guidance on that again? And is there a minimum that you would expect to be able to generate?

我要向你們問一個簡單的後續問題。您認為什麼時候才能對自由現金流的產生有足夠的了解，以便再次開始提供指導？您期望能夠產生的最低限度是多少？

I'll let Adam and Max take that one.

我會讓亞當和馬克斯拿走那個。

So we know, we'll have positive cash in Q4. That's going to be the key. The reason why we're not running with guidance right now on that metric is because there is a little uncertainty in term on the shifting of working capital needs that are warranted, right? Also, we're investing in people and processes. So we have a little bit of a technology investment that's going to be going on as well, which is going to utilize cash. So there's a little bit of a short term bubble of volatility that we have to get through.

所以我們知道，我們在第四季將有正現金。這才是關鍵。我們目前沒有根據該指標制定指導方針，是因為在合理的營運資本需求轉變方面存在一些不確定性，對嗎？此外，我們也正在對人才和流程進行投資。因此，我們也將進行一些技術投資，這將利用現金。因此，我們必須渡過短期波動泡沫。

But I can say that we do think that there will be a nice positive cash generation just how much a little uncertain right now, just because of all the opportunities we see in front of us and how we're allocating the capital in the right places at the right time to really propel ourselves into 2025.

但我可以說，我們確實認為將會產生良好的正現金流，只是現在有點不確定，因為我們看到面前的所有機會，以及我們如何在正確的時間在正確的地點分配資本，以真正推動我們邁向 2025 年。

Thank you very much.

非常感謝。

Thank you, Michael.

謝謝你，麥可。

If there are no more questions, I will turn the call back over to Gerry Smith, ODP's CEO.

如果沒有其他問題，我將把電話轉回給 ODP 執行長 Gerry Smith。

Thank you for our analysts as well as all our other listeners today for joining us. Again, we're not happy with Q3 performance and we're doing our best to turn that into a change that we're seeing some stabilization here in the last three or four weeks and going into November, we are very excited about our pivot to -- the harder pivot to B2B we'll evaluate and find the optimized operating model for our B2C business. We'll come back to you in the next earnings piece of that.

感謝我們的分析師以及今天所有其他聽眾的參與。再說一次，我們對第三季度的表現並不滿意，我們正在盡最大努力將其轉化為改變，我們在過去三四周看到一些穩定，進入 11 月，我們對我們的轉型感到非常興奮——更難的轉向 B2B，我們將評估並找到優化我們 B2C 業務的運營模式。我們將在下一篇收益文章中再次與您討論這個問題。

I've talked about trajectory changing opportunities and the last one, we delivered two big ones and we're very pleased with that and there's more to come and we're going to continue to work on that. And we believe we have the right operating model. We have the right infrastructure as a supply chain was a huge asset for us.

我已經談到了改變軌蹟的機會，最後一個機會，我們已經實現了兩個大機會，我們對此感到非常高興，未來還會有更多的機會，我們將繼續努力。我們相信我們的營運模式是正確的。我們擁有正確的基礎設施，因為供應鏈對我們來說是一筆巨大的資產。

Our 5C culture, our low cost model and our ability and we haven't talked about it all. We have a strong balance sheet and we continue to have a strong balance sheet and we're continue, we're liquid and we're continue to generate cash as a company. And so we're going to invest that cash into growing this B2B segment, both the 3PLs supply chain segment as well as the B2B traditional segment, our federation, as well as our hospitality and other segments going forward.

我們的5C文化、我們的低成本模式、我們的能力，我們還沒有全部談論。我們擁有強勁的資產負債表，我們繼續擁有強勁的資產負債表，我們繼續保持流動性，並作為一家公司繼續產生現金。因此，我們將把這些資金投入到發展 B2B 領域，包括 3PL 供應鏈領域、B2B 傳統領域、我們的聯盟、以及我們的酒店業和其他領域。

So we're thank you for your time today. Come back to you in 90 days with a fuller plan on the B2C optimal optimization plan. Thank you, team for joining us today.

非常感謝您今天抽出時間。90 天內帶著更全面的 B2C 最優優化計畫回來找您。感謝團隊今天加入我們。

Thank you for your participation. This concludes today's call. You may now disconnect.

感謝您的參與。今天的電話會議到此結束。您現在可以斷開連線。