Veritiv Reports Q1 Adjusted EBITDA of $28M; On Track for Multi-Year Synergy Capture
ATLANTA—May 13, 2015—Veritiv Corp., a North American leader in business-to-business distribution solutions, today announced financial results for the first fiscal quarter ended March 31, 2015.
"Veritiv is off to a strong start for 2015," said Mary Laschinger, chairman and CEO of Veritiv Corp. "Coming off a successful 2014, our first quarter results today continue to give us confidence in our plans for Veritiv to succeed as a leading distribution solutions company focused on driving operational excellence and delivering superior customer service."
For the three months ended March 31, 2015, compared to the three months ended March 31, 2014 (on a pro forma basis):
- Net sales were $2.1 billion, a decrease of 4.5 percent from the prior year.
- Adjusted EBITDA was $28.4 million, an increase of 18.8 percent from the prior year.
- Adjusted EBITDA as a percentage of net sales was 1.3 percent, an increase of 26 basis points from the prior year.
The net loss, as reported, for the three months ended March 31, 2015 was $2.2 million, which includes $13.4 million of integration expenses and restructuring charges.
In the first quarter of 2015, net sales per shipping day decreased 2.9 percent from the prior year. Net sales per shipping day was impacted by the calendar structure for the first quarter of 2015 having one less shipping day compared to the same period in the prior year.
"Our solid first quarter financial results were driven by cost reductions as we continue to execute our robust integration plan and make progress in delivering net synergies in the range of $150 million to $225 million," relayed Stephen Smith, senior vice president and CFO of Veritiv Corp.
The company continues to expect Adjusted EBITDA for 2015 in the range of $165 million to $175 million, which is in line with its long term guidance to improve Adjusted EBITDA by an incremental $100 million over its first few years post merger.
Veritiv Corp. (NYSE: VRTV), with executive offices in Atlanta, and significant operations in the Greater Cincinnati, Ohio area, is a North American leader in business-to-business distribution solutions. Serving customers across virtually every industry, Veritiv provides print, publishing, packaging, facility and logistics solutions that help shape the success of its customers. Established in 2014, following the merger of International Paper Company’s xpedx division and Unisource Worldwide, the company employs approximately 8,900 team members across more than 180 distribution centers throughout the United States, Mexico and Canada.