Verso Paper (VRS) Reports Q4 Revenues Slightly Below Estimates; Offers 1Q18 Revenue Outlook Below Consensus

Verso Paper (NYSE: VRS) reported Q4 EPS of $, versus $0.77 reported last year. Revenue for the quarter came in at $639 million versus the consensus estimate of $639.95 million.

Guidance

The Company is providing the following guidance:

2018 First Quarter

• Net Sales of $610-625 million. Price increases are favorable.
• Capital Expenditures are expected to be approximately $10 million.
• Seasonal use of working capital is expected to rise by $20-30 million.
• Cash pension funding of $5-8 million.
• Excess cash flow payment pending as we continue to pay down Term Loan.

Expectations for Full Year 2018

• Net Sales to be greater than 2017 (primarily due to pricing and A3 volume).
• Significant increases in logistics/freight.
• Inflation in energy, raw material and other input costs headed up.
• Capital Expenditures to be $60-70 million, up from $40 million in 2017.
• Cash pension funding of $45-50 million.
• Cash taxes of $0-5 million, primarily state income and franchise taxes.
• Major maintenance costs up $14-18 million.

GUIDANCE:

Verso Paper sees Q1 2018 revenue of $610-625 million, versus the consensus of $642.66 million.

For earnings history and earnings-related data on Verso Paper (VRS) click here.

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