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Veritiv Announces Q3 Results, Reaffirms 2015 Earnings Expectations

Friday, November 13, 2015

Press release from the issuing company

ATLANTA - Veritiv Corporation (NYSE: VRTV), a North American leader in business-to-business distribution solutions, today announced financial results for the third fiscal quarter ended September 30, 2015. 

“We are pleased with our third quarter performance and the resulting 18 percent increase in Adjusted EBITDA, both of which reflect our ongoing focus on the integration and our commitment to deliver value to customers and shareholders. Although our top-line continues to be impacted by challenging economic conditions, currency headwinds, and management decisions around markets, customers and products, we maintained our steady execution and achieved $61 million in Adjusted EBITDA. As a result, we are well ahead of where we were last year and remain on track to deliver on our full year commitments,” said Mary Laschinger, Chairman and CEO of Veritiv Corporation. 

For the three months ended September 30, 2015, compared to the three months ended September 30, 2014:

  • Net sales were $2.2 billion, a decrease of 7.1% from the prior year.
  • Adjusted EBITDA was $60.6 million, an increase of 17.7% from the prior year.
  • Adjusted EBITDA as a percentage of net sales was 2.7%, an increase of 58 basis points from the prior year. 

For the nine months ended September 30, 2015, compared to the nine months ended September 30, 2014 (on a pro forma basis):

  • Net sales were $6.5 billion, a decrease of 6.0% from the prior year.
  • Adjusted EBITDA was $129.7 million, an increase of 14.5% from the prior year.
  • Adjusted EBITDA as a percentage of net sales was 2.0%, an increase of 36 basis points from the prior year.

Net income, as reported for the three months ended September 30, 2015, was $14.5 million, which includes $11.3 million of integration expenses and restructuring charges. Net income, as reported for the nine months ended September 30, 2015, was $16.6 million, which includes $37.2 million of integration expenses and restructuring charges.

In the third quarter of 2015, net sales per shipping day decreased 7.1% from the prior year. Year-to-date net sales per shipping day decreased 5.5% from the prior year. The nine months ended September 30, 2015 had one less shipping day compared to the same period in the prior year. 

“Our continued company-wide focus on synergy capture and efficiency improvements resulted in sound financial results in the third quarter,” said Stephen Smith, Senior Vice President and Chief Financial Officer of Veritiv Corporation. “We expect to sustain this momentum into the fourth quarter through strong program management of our integration, and are reaffirming our expectation to reach the middle to higher end of our range for Adjusted EBITDA of $165 to $175 million for the full year 2015.”  

Veritiv Corporation will host a live conference call and webcast today, November 12, 2015, at 10 a.m. (ET) to discuss its third quarter 2015 financial results. All interested parties are invited to listen online at ir.veritivcorp.com. A replay of the call and webcast will be available online for a limited period of time at ir.veritivcorp.com shortly after the live webcast is completed. 

Important information regarding GAAP and pro forma operating results and related reconciliations of non-GAAP financial measures to the most comparable GAAP measures can be found in the schedules and related footnotes to this press release, which should be thoroughly reviewed.

When reviewing the reconciliations included for the non-GAAP measures, please note that certain information is presented on a pro forma basis. The pro forma information includes historical Unisource Worldwide, Inc. ("Unisource") results, other purchase accounting adjustments and adjustments for one-time costs as if the merger of the legacy xpedx business and UWW Holdings, Inc., the parent company of Unisource, had occurred on January 1, 2013.

 

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