Veritiv (VRTV) Misses Q1 EPS by 97c, Revenues Miss

Veritiv (NYSE: VRTV) reported Q1 EPS of ($1.68), $0.97 worse than the analyst estimate of ($0.71). Revenue for the quarter came in at $1.9 billion versus the consensus estimate of $2.11 billion.

"In the first quarter we generated a significant improvement in cash flow. However, volume declines in our Print segment and general market softness impacted our revenues and earnings," said Mary Laschinger, Chairman and CEO of Veritiv Corporation. "Given the challenging market conditions in certain parts of our business, we are lowering our 2019 guidance for Adjusted EBITDA from the previous range of $190 to $200 million, to a range of $165 to $180 million. Looking ahead, we expect to see a significant improvement in free cash flow for 2019 when compared to 2018, and, as a result, we now expect free cash flow of at least $85 million for the year, up from our previous guidance of at least $55 million."

For the three months ended March 31, 2019, compared to the three months ended March 31, 2018:

• Net sales were $1.9 billion, a decrease of 7.6% from the prior year. Net sales decreased 5.7% from the prior year, excluding the negative effect of foreign currency (0.4%) and one less shipping day (1.5%) in the first quarter of 2019.
• Net loss was $(26.7) million, compared to net loss of $(15.8) million in the prior year. Net integration, acquisition and restructuring charges were $6.7 million in the first quarter of 2019 compared to $20.2 million in the prior year.
• Basic and diluted loss per share were $(1.68) compared to $(1.00) in the prior year.
• Adjusted EBITDA was $20.4 million, a decrease of 31.3% from the prior year.
• Adjusted EBITDA as a percentage of net sales was 1.1%, a decrease of 30 basis points from the prior year.

"Our positive cash flow performance in the first quarter was driven by our revenue pattern, as well as post-integration process improvements including a lowering of accounts receivable and inventory," said Stephen Smith, Senior Vice President and Chief Financial Officer of Veritiv Corporation.

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

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