Veritiv (VRTV) Misses Q2 EPS by $1.03, Revenues Beat

Veritiv (NYSE: VRTV) reported Q2 EPS of ($1.16), $1.03 worse than the analyst estimate of ($0.13). Revenue for the quarter came in at $1.4 billion versus the consensus estimate of $1.36 billion.

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

• Net sales were $1.4 billion, a decrease of 28.3% from the prior year. Net sales decreased 28.0% from the prior year, excluding the negative effect of foreign currency (0.3%).
• Net loss was $(18.5) million, compared to net loss of $(11.3) million in the prior year. Net restructuring charges were $32.5 million in the second quarter of 2020 compared to $6.9 million in the prior year.
• Basic and diluted loss per share were $(1.16), compared to $(0.70) in the prior year.
• Adjusted EBITDA was $39.8 million, a decrease of 8.1% from the prior year.
• Adjusted EBITDA as a percentage of net sales was 2.8%, an increase of 60 basis points from the prior year.

"We had solid Adjusted EBITDA and strong free cash flow in the second quarter, as our ongoing efficiency programs and the temporary actions we took to mitigate the impact of COVID-19, led to improved margins," said Mary Laschinger, Chairman and CEO of Veritiv Corporation. "As part of our efforts to address recent revenue declines from both COVID-19 and the continued structural decline in our Print and Publishing segments, we are implementing permanent changes to reduce our cost structure. We believe our substantial liquidity and the flexibility of our business model position us well to continue managing the impact of COVID-19 on our business, while safely and effectively serving our customers."

"Our second quarter free cash flow generation was strong due to lower inventories and accounts receivable, driven by reduced volumes," said Stephen Smith, Senior Vice President and Chief Financial Officer of Veritiv Corporation. "Our liquidity position remains healthy, and at the end of June 2020, our net debt to Adjusted EBITDA leverage ratio was 2.8x, down from 4.0x in the prior year period."

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

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