Verso Corporation (VRS) Misses Q3 EPS by 72c, Revenues Beat

Verso Corporation (NYSE: VRS) reported Q3 EPS of ($0.82), $0.72 worse than the analyst estimate of ($0.10). Revenue for the quarter came in at $310 million versus the consensus estimate of $300.87 million.

Third Quarter 2020 Highlights:

• Net sales of $306 million, up 14 percent versus the second quarter
• Net loss of $(31) million or $(0.92) per diluted share, compared to net income of $30 million or $0.85 per diluted share in third quarter 2019 and net loss of $(34) million in second quarter 2020
• Adjusted EBITDA of $12 million, compared to a loss of $9 million in the second quarter
• Paid quarterly and special dividends to stockholders totaling $3.10 per share

Overview "We were encouraged to see a slight uptick in coated paper demand and operating rates in the third quarter, which contributed to an Adjusted EBITDA of $12 million compared to a loss last quarter," said Verso Interim President and Chief Executive Officer Randy Nebel. "Verso continues to have a strong balance sheet and liquidity after payment of the regular and special dividend to our stockholders."

Net sales Net sales for the third quarter 2020 decreased $310 million compared to the third quarter of 2019, as a result of significant declines in sales volume and unfavorable price/mix. Of the $310 million, or 50%, net sales decline, $36 million, or 6%, was attributable to the closure of our Luke Mill in June 2019 and $145 million, or 24%, was a result of the sale of our Androscoggin and Stevens Point mills in February 2020, and $70 million, or 11%, was attributable to the indefinite idling of our Duluth and Wisconsin Rapids mills in July 2020. Total company sales volume was down from 679 thousand tons during the third quarter 2019, to 382 thousand tons during the same period of the current year. Of the 297 thousand ton volume decline, 36 thousand tons were attributable to the closure of our Luke Mill in June 2019, 146 thousand tons were a result of the sale of our Androscoggin and Stevens Point mills in February 2020, 79 thousand tons were attributable to the indefinite idling of our Duluth and Wisconsin Rapids mills in July 2020, and the additional decline in volume resulted from lower customer demand driven by the COVID-19 pandemic. We expect the COVID-19 pandemic to continue to have a negative impact on our net sales in the fourth quarter of 2020.

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

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