Veritiv Announces Q4 and Full Year 2015 Financial Results with Adjusted EBITDA of $182M
ATLANTA — March 16, 2016 — Veritiv Corp. (NYSE: VRTV), a North American leader in business-to-business distribution solutions, has announced financial results for the fourth quarter and full year ended Dec. 31, 2015.
"We are proud of our solid fourth quarter and full year 2015 results," says Mary Laschinger, chairman and CEO of Veritiv Corp. "Through hard work and a steadfast focus on our integration initiatives, we accelerated our planned synergies and exceeded our full year financial commitment to shareholders. The Veritiv team’s strong execution in 2015 kept us on track to meet our long-term financial goals and position the company for future growth. Looking ahead, we remain focused on our synergy and Adjusted EBITDA goals and committed to delivering long-term value to our shareholders."
For the three months ended Dec. 31, 2015, compared to the three months ended Dec. 31, 2014:
- Net sales were $2.2 billion, a decrease of 7.5% from the prior year. Excluding the effect of foreign currency, net sales declined 6.2% from the prior year.
- Adjusted EBITDA was $52.3 million, an increase of 29.8% from the prior year.
- Adjusted EBITDA as a percentage of net sales was 2.4%, an increase of 68 basis points from the prior year.
For the year ended December 31, 2015, compared to the year ended December 31, 2014 (on a pro forma basis):
- Net sales were $8.7 billion, a decrease of 6.4% from the prior year. Excluding the effect of foreign currency and one less day in the first quarter of 2015, net sales declined 4.7% from the prior year.
- Adjusted EBITDA was $182.0 million, an increase of 18.5% from the prior year.
- Adjusted EBITDA as a percentage of net sales was 2.1%, an increase of 44 basis points from the prior year.
Net income, as reported for the three months ended Dec. 31, 2015, was $10.1 million, which includes $9.0 million of integration expenses and restructuring charges. Net income, as reported for the year ended Dec. 31, 2015, was $26.7 million, which includes $46.2 million of integration expenses and restructuring charges. Basic and diluted earnings per share for the quarter and full year were $0.63 and $1.67, respectively.
In the fourth quarter of 2015, net sales per shipping day decreased 7.5% from the prior year. In fiscal year 2015, net sales per shipping day decreased 6.0% from the prior year. Fiscal year 2015 had one less shipping day compared to the same period in the prior year.
"Strong program management of our integration and a benefit from fuel prices were significant drivers of our fourth quarter and full year financial results. Our healthy cash flow enabled us to decrease our debt over the past year and, despite the uncertain economic conditions before us, we plan to continue significant debt reduction throughout 2016," explains Stephen Smith, senior VP and chief financial officer of Veritiv Corp.
The company plans for 2016 Adjusted EBITDA to be in the range of $185 to $195 million, which reflects the pacing of the next phase of synergy capture and the economic softness expected to continue throughout the year.
When reviewing the reconciliations included for the non-GAAP measures, please note that certain information is presented on a pro forma basis. The proforma information includes historical Unisource Worldwide ("Unisource") results, other purchase accounting adjustments and adjustments for onetime costs as if the merger of the legacy xpedx business and UWW Holdings, the parent company of Unisource, had occurred on Jan. 1, 2014.
Veritiv Corp. (NYSE: VRTV), headquartered in Atlanta, is a leading North American business-tobusiness 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 United States, Mexico and Canada, and employs approximately 8,800 team members worldwide that help shape the success of its customers.