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Office Depot, Inc. (NYSE: ODP), a leading global provider of
office products, services, and solutions formed by the merger of Office Depot and OfficeMax Incorporated (“OfficeMax”), today announced results for the fourth quarter and full year ended December 28, 2013.
Merger Integration and Organizational Update
On November 5, 2013, Office Depot completed its merger transaction with OfficeMax. Since that date, the company has been aggressively executing its integration plan. Roland Smith, Chairman and CEO of Office Depot, noted, “We have taken decisive steps and made substantial progress toward executing our integration strategy. With our leadership team now in place, we have moved quickly to establish a lean organizational structure with the best talent from across the legacy businesses as well as adding new external leadership. We expect to complete a comprehensive reorganization of the company by the end of February 2014.” Smith continued, “Based on the team’s efforts since merger close, we have validated and increased the expected total annual run-rate of previously quantified cost synergies to be more than $600 million by the end of 2016.”
Smith added, “As we look forward in 2014, our company is focused on a number of key priorities, which include creating a lean organization with clear roles and accountabilities, delivering our 2014 operating plan, generating targeted synergies and efficiencies, and defining our vision, mission, and long-term global growth strategy. Our management team will be focused on improving profitability and return on invested capital. For 2014, we are committed to delivering not less than $140 million of adjusted operating income.”
The company’s fourth quarter and full year 2013 results include OfficeMax’s operations from the date of the merger through December 28, 2013 (the “stub period”), which generated $939 million of sales.
Reported (GAAP) Results
Total sales for the fourth quarter of 2013 increased 33% to $3.5 billion compared to the fourth quarter of 2012. Sales were $11.2 billion in the full year 2013, an increase of 5% compared to the prior year.