Veritiv Corporation (NYSE:VRTV), a North American leader in business-to-business distribution solutions, today announced financial results for the third quarter ended September 30, 2016.
“Our third quarter results met our expectations, and we continue to be on track with our 2016 commitments,” said Mary Laschinger, Chairman and CEO of Veritiv Corporation. “Given the results and our outlook for the balance of the year, we are reaffirming the upper end of our full year 2016 Adjusted EBITDA guidance.”
For the three months ended September 30, 2016:
| • | Net sales were $2.1 billion, a decrease of 4.2% from the prior year. Excluding the negative effect of foreign currency (0.2%) in the third quarter of 2016, net sales declined 4.0% from the prior year. |
| • | Net income was $5.6 million, compared to $14.5 million in the prior year. Integration and restructuring charges were $13.1 million in the quarter and $11.3 million in the prior year. |
| • | Basic and diluted earnings per share were $0.35 and $0.34, respectively, compared to $0.91 for both in the prior year. |
| • | Adjusted EBITDA was $57.1 million, a decrease of 5.8% from the prior year. |
| • | Adjusted EBITDA as a percentage of net sales was 2.7%, unchanged from the prior year. |
For the nine months ended September 30, 2016:
| • | Net sales were $6.2 billion, a decrease of 4.8% from the prior year. Excluding the negative effect of foreign currency (0.6%) and positive effect of two more shipping days (1.0%) in the first nine months of 2016, net sales declined 5.2% from the prior year. |
| • | Net income was $16.8 million, compared to $16.6 million in the prior year. Integration and restructuring charges were $26.8 million in the first nine months of 2016 and $37.2 million in the prior year. |
| • | Basic and diluted earnings per share were $1.05 and $1.04, respectively, compared to $1.04 for both in the prior year. |
| • | Adjusted EBITDA was $142.1 million, an increase of 9.6% from the prior year. |
| • | Adjusted EBITDA as a percentage of net sales was 2.3%, an increase of 30 basis points from the prior year. |
“Our third quarter Adjusted EBITDA was impacted by continued headwinds in our Print and Publishing segments, as well as the planned slowing of our synergy capture,” said Stephen Smith, Senior Vice President and Chief Financial Officer of Veritiv Corporation. “While our third quarter margins remained flat, we anticipate improved margins and Adjusted EBITDA in the fourth quarter of 2016 compared to the prior year’s fourth quarter.”
Veritiv Corporation will host a live conference call and webcast today, November 9, 2016, at 10 a.m. (ET) to discuss its third quarter 2016 financial results and full year 2016 guidance. All interested parties are invited to listen online at ir.veritivcorp.com. A replay of the call and webcast will be available online for a limited period of time at ir.veritivcorp.com shortly after the live webcast is completed.
Important information regarding GAAP and related reconciliations of non-GAAP financial measures to the most comparable GAAP measures can be found in the schedules to this press release, which should be thoroughly reviewed.
About Veritiv
Veritiv Corporation (NYSE:VRTV), headquartered in Atlanta and a Fortune 500® company, is a leading North American business-to-business distributor of print, publishing, packaging, and facility solutions; and also a provider of logistics and supply chain management services. Serving customers in a wide range of industries, the Company has approximately 180 distribution centers throughout the U.S., Mexico and Canada, and employs approximately 8,800 team members worldwide that help shape the success of its customers. For more information about Veritiv and its business segments visit www.veritivcorp.com.