Veritiv (VRTV) Reports Q1 EPS of $1.28, Revenues Beat

Veritiv (NYSE: VRTV) reported Q1 EPS of $1.28, versus ($0.02) reported last year. Revenue for the quarter came in at $1.6 billion versus the consensus estimate of $1.52 billion.

For the three months ended March 31, 2021, compared to the three months ended March 31, 2020:

• Net sales were $1.6 billion, a decrease of 8.7% from the prior year.
• Income before income taxes was $30.4 million, compared to $0.0 million in the prior year.
• Net income was $21.3 million, compared to net loss of $(0.4) million in the prior year. Net restructuring charges were $4.3 million in the first quarter of 2021 compared to none in the prior year.
• Basic and diluted earnings per share were $1.34 and $1.28, respectively, compared to a loss for both basic and diluted earnings per share of $(0.02) in the prior year.
• Adjusted EBITDA was $59.5 million, an increase of 64.4% from the prior year.
• Adjusted EBITDA as a percentage of net sales was 3.8%, an increase of 170 basis points from the prior year.

"Our disciplined working capital management and rapid net leverage reduction over the last two years, in combination with our strong earnings prospects for 2021, enabled the Company to purchase approximately $25 million of our shares in the first quarter as part of our previously authorized share repurchase program," said Stephen Smith, Senior Vice President and Chief Financial Officer. "Due in part to our share repurchase activities in the first quarter, a historically large shareholder, UWW Holdings, LLC, has completely exited its long-term position."

2021 Revised Guidance

Given the strong financial performance in the first quarter, the Company is increasing guidance for full year 2021. Income before taxes for full year 2021 is expected to be in the range of $95 to $115 million and Adjusted EBITDA in the range of $220 to $240 million. Free cash flow for 2021 is still expected to be at least $75 million and capital expenditures for the year are still estimated to be approximately $35 million.

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

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