Veritiv (VRTV) Tops Q3 EPS by $1.90, Revenues Beat

Veritiv (NYSE: VRTV) reported Q3 EPS of $1.30, $1.90 better than the analyst estimate of ($0.60). Revenue for the quarter came in at $1.59 billion versus the consensus estimate of $1.52 billion.

For the three months ended September 30, 2020, compared to the three months ended September 30, 2019:

• Net sales were $1.6 billion, a decrease of 17.3% from the prior year. The foreign currency effect on net sales was negligible.
• Net income was $21.1 million, compared to net income of $5.1 million in the prior year. Net restructuring charges were $7.9 million in the third quarter of 2020 compared to $7.6 million in the prior year.
• Basic and diluted earnings per share were $1.33 and $1.30, respectively, compared to $0.32 and $0.31, respectively, in the prior year.
• Adjusted EBITDA was $49.9 million, an increase of 10.9% from the prior year.
• Adjusted EBITDA as a percentage of net sales was 3.1%, an increase of 80 basis points from the prior year.

"Continuing execution of our multi-year strategy and broad-based efficiency programs led to record Adjusted EBITDA margins in the third quarter," said Sal Abbate, Chief Executive Officer. "We are fully operational and meeting the needs of our employees and customers both safely and efficiently. Our significantly improved fundamentals and the flexibility of our business model drove a year-over-year improvement in Adjusted EBITDA despite a challenging and dynamic market environment."

"Our third quarter free cash flow generation was strong due to positive earnings, and lower days sales outstanding and days inventory on hand over sequential quarters, driven by our continuing efforts to improve working capital," said Stephen Smith, Senior Vice President and Chief Financial Officer. "Our liquidity position remains healthy, and at the end of September 2020, our net debt to Adjusted EBITDA leverage ratio was 2.4x, down from 3.6x in the prior year period and improved from the prior sequential quarter.

For earnings history and earnings-related data on Veritiv (VRTV) click here.

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