ATLANTA, Nov. 3, 2021 /PRNewswire/ -- Veritiv
Corporation (NYSE: VRTV), a full-service provider of
business-to-business distribution solutions, today announced
financial results for the third quarter ended September 30,
2021.
"Double-digit Packaging sales growth contributed to our best
earnings and Adjusted EBITDA margin performance of any quarter in
company history," said Sal Abbate,
Chief Executive Officer. "The third quarter of 2021 marks the tenth consecutive quarter of
year-over-year improvement in our Packaging segment Adjusted EBITDA
margin performance. Demand and disciplined pass-through of
supplier-driven inflationary price increases led to sales growth
across most of our segments. The ongoing benefits of our 2020
Restructuring Plan, as well as commercial and supply chain
productivity, drove significant financial improvement throughout
the business resulting in net income nearly doubling in the third
quarter compared to prior year."
For the three months ended September 30, 2021,
compared to the three months ended September 30, 2020:
- Net sales were $1.8 billion, an
increase of 11.1% from the prior year.
- Net income was $40.0 million,
compared to $21.1 million in the
prior year. Net restructuring charges were $2.5 million, compared to $7.9 million in the prior year.
- Basic and diluted earnings per share were $2.69 and $2.54,
respectively, compared to $1.33 and
$1.30, respectively in the prior
year.
- Adjusted EBITDA was $93.7
million, an increase of 87.8% from the prior year.
- Adjusted EBITDA as a percentage of net sales was a record 5.3%,
an increase of 220 basis points from the prior year.
For the nine months ended September 30, 2021, compared to
the nine months ended September 30, 2020:
- Net sales were $5.0 billion, an
increase of 6.0% from the prior year.
- Net income was $87.7 million,
compared to $2.2 million in the prior
year. Net restructuring charges were $12.0
million, compared to $40.4
million in the prior year.
- Basic and diluted earnings per share were $5.68 and $5.40,
respectively, compared to $0.14 for
both basic and diluted earnings per share in the prior year.
- Adjusted EBITDA was $226.7
million, an increase of 80.1% from the prior year.
- Adjusted EBITDA as a percentage of net sales was 4.5%, an
increase of 180 basis points from the prior year.
For the three months ended September 30, 2021, net cash
provided by operating activities was $41.5
million and free cash flow was $36.5
million. For the nine months ended September 30, 2021,
net cash provided by operating activities was $91.6 million and free cash flow was $77.5 million.
"Our record earnings performance and corresponding free cash
flow drove our net leverage ratio to 1.5x, a record low. This
improvement in our leverage ratio includes the impact of the
completion of our $100 million share
repurchase program during the third quarter," said Steve Smith, Chief Financial Officer. "We
repurchased 1.7 million shares over the course of our share
repurchase program, which reflects an 11% reduction in shares
outstanding, at an average price of $58 per share."
2021 Revised Guidance
Given the strong financial performance so far this year, the
Company is increasing guidance for full year 2021. Diluted earnings
per share and net income for full year 2021 are expected to be in
the range of $8.00 to $9.00 and $130 to
$145 million, respectively. Adjusted
EBITDA is estimated to be in the range of $315 to $330
million. Capital expenditures are now estimated to be
approximately $25 million and free
cash flow for 2021 is expected to be at least $120 million.
1Adjusted EBITDA Margin is defined as Adjusted EBITDA
as a percentage of net sales.
-----
Veritiv Corporation will host a conference call and webcast
today, November 3, 2021, at 9 a.m.
(ET) to discuss its third quarter financial results and full
year 2021 guidance. To participate, callers within the United States (U.S.) and Canada can dial (833) 968-2031, and
international callers can dial (236) 714-2130, both using
conference ID number 4715619. Interested parties can also
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 webcast is completed.
Important information regarding U.S. generally accepted
accounting principles ("U.S. GAAP") and related reconciliations of
non-GAAP financial measures to the most comparable U.S. 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 full-service provider of packaging, JanSan and hygiene
products, services and solutions. Additionally, Veritiv provides
print and publishing products, and logistics and supply chain
management solutions. Serving customers in a wide range of
industries both in North America
and globally, Veritiv has distribution centers throughout the U.S.,
Canada and Mexico, and team members around the world
helping shape the success of its customers. For more
information about Veritiv and its business segments
visit www.veritivcorp.com.
Safe Harbor Provision
Certain statements contained in this press release regarding
Veritiv Corporation's (the "Company") future operating results,
performance, business plans, prospects, guidance, the 2020
Restructuring Plan and any other restructuring, statements related
to the impact of COVID-19 and any other statements not constituting
historical fact are "forward-looking statements" subject to the
safe harbor created by the Private Securities Litigation Reform Act
of 1995. Where possible, the words "believe," "expect,"
"anticipate," "continue," "intend," "should," "will," "would,"
"planned," "estimated," "potential," "goal," "outlook," "may,"
"predicts," "could," or the negative of such terms, or other
comparable expressions, as they relate to the Company or its
business, have been used to identify such forward-looking
statements. All forward-looking statements reflect only the
Company's current beliefs and assumptions with respect to future
operating results, performance, business plans, prospects, guidance
and other matters, and are based on information currently available
to the Company. Accordingly, the statements are subject to
significant risks, uncertainties and contingencies, which could
cause the Company's actual operating results, performance, business
plans, prospects or guidance to differ materially from those
expressed in, or implied by, these statements.
Factors that could cause actual results to differ materially
from current expectations include risks and other factors described
under "Risk Factors" and elsewhere in our Annual Report on Form
10-K and elsewhere in the Company's publicly available reports
filed with the Securities and Exchange Commission ("SEC"), which
contain a discussion of various factors that may affect the
Company's business or financial results. Such risks and other
factors, which in some instances are beyond the Company's control,
include: adverse impacts of the COVID-19 pandemic; the
industry-wide decline in demand for paper and related products;
increased competition from existing and non-traditional sources;
procurement and other risks in obtaining packaging, facility
products and paper from our suppliers for resale to our customers;
changes in prices for raw materials; changes in trade policies and
regulations; increases in the cost of fuel and third-party freight
and the availability of third-party freight providers; the loss of
any of our significant customers; uncertainties as to the
structure, timing, benefits and costs of the 2020 Restructuring
Plan or any future restructuring plan that the Company may
undertake; adverse developments in general business and economic
conditions that could impair our ability to use net operating loss
carryforwards and other deferred tax assets; our ability to
adequately protect our material intellectual property and other
proprietary rights, or to defend successfully against intellectual
property infringement claims by third parties; our ability to
attract, train and retain highly qualified employees; our pension
and health care costs and participation in multi-employer pension,
health and welfare plans; the effects of work stoppages, union
negotiations and labor disputes; our ability to generate sufficient
cash to service our debt; increasing interest rates; our ability to
refinance or restructure our debt on reasonable terms and
conditions as might be necessary from time to time; our ability to
comply with the covenants contained in our debt agreements; costs
to comply with laws, rules and regulations, including
environmental, health and safety laws, and to satisfy any liability
or obligation imposed under such laws; changes in tax laws; adverse
results from litigation, governmental investigations or audits, or
tax-related proceedings or audits; regulatory changes and judicial
rulings impacting our business; the impact of adverse developments
in general business and economic conditions as well as conditions
in the global capital and credit markets on demand for our products
and services, our business including our international operations,
and our customers; foreign currency fluctuations; inclement
weather, widespread outbreak of an illness, anti-terrorism measures
and other disruptions to our supply chain, distribution system and
operations; our dependence on a variety of information technology
and telecommunications systems and the Internet; our reliance on
third-party vendors for various services; cybersecurity risks; and
other events of which we are presently unaware or that we currently
deem immaterial that may result in unexpected adverse operating
results.
The Company is not responsible for updating the information
contained in this press release beyond the published date, or for
changes made to this document by wire services or Internet service
providers. This press release is being furnished to the SEC through
a Form 8-K. The Company's Quarterly Report on Form 10-Q for the
three and nine months ended September 30, 2021 to be filed
with the SEC may contain updates to the information included in
this release.
Financial Statements
VERITIV
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in millions, except
per share data, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net sales
|
|
$
|
1,767.8
|
|
|
$
|
1,591.2
|
|
|
$
|
4,985.7
|
|
|
$
|
4,703.3
|
|
Cost of products sold
(exclusive of depreciation and
amortization shown separately below)
|
|
1,402.1
|
|
|
1,262.4
|
|
|
3,959.2
|
|
|
3,728.8
|
|
Distribution
expenses
|
|
103.4
|
|
|
100.6
|
|
|
308.9
|
|
|
323.9
|
|
Selling and
administrative expenses
|
|
189.7
|
|
|
177.4
|
|
|
533.9
|
|
|
545.4
|
|
Depreciation and
amortization
|
|
13.3
|
|
|
15.0
|
|
|
42.1
|
|
|
43.1
|
|
Restructuring
charges, net
|
|
2.5
|
|
|
7.9
|
|
|
12.0
|
|
|
40.4
|
|
Operating income
(loss)
|
|
56.8
|
|
|
27.9
|
|
|
129.6
|
|
|
21.7
|
|
Interest expense,
net
|
|
3.8
|
|
|
5.5
|
|
|
13.4
|
|
|
19.7
|
|
Other (income)
expense, net
|
|
(1.1)
|
|
|
1.4
|
|
|
(3.8)
|
|
|
0.0
|
|
Income (loss)
before income taxes
|
|
54.1
|
|
|
21.0
|
|
|
120.0
|
|
|
2.0
|
|
Income tax expense
(benefit)
|
|
14.1
|
|
|
(0.1)
|
|
|
32.3
|
|
|
(0.2)
|
|
Net income
(loss)
|
|
$
|
40.0
|
|
|
$
|
21.1
|
|
|
$
|
87.7
|
|
|
$
|
2.2
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
2.69
|
|
|
$
|
1.33
|
|
|
$
|
5.68
|
|
|
$
|
0.14
|
|
Diluted
|
|
$
|
2.54
|
|
|
$
|
1.30
|
|
|
$
|
5.40
|
|
|
$
|
0.14
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
14.86
|
|
|
15.89
|
|
|
15.44
|
|
|
15.99
|
|
Diluted
|
|
15.76
|
|
|
16.21
|
|
|
16.24
|
|
|
16.18
|
|
VERITIV
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(dollars in millions,
except par value, unaudited)
|
|
|
|
|
|
|
|
September 30,
2021
|
|
December 31,
2020
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
43.4
|
|
|
$
|
120.6
|
|
Accounts receivable,
less allowances of $37.8 and $41.6, respectively
|
|
958.2
|
|
|
849.5
|
|
Inventories
|
|
482.7
|
|
|
465.4
|
|
Other current
assets
|
|
128.2
|
|
|
119.5
|
|
Total current
assets
|
|
1,612.5
|
|
|
1,555.0
|
|
Property and
equipment (net of accumulated depreciation and amortization
of $323.6 and $375.9, respectively)
|
|
164.9
|
|
|
194.7
|
|
Goodwill
|
|
99.6
|
|
|
99.6
|
|
Other intangibles,
net
|
|
43.9
|
|
|
47.4
|
|
Deferred income tax
assets
|
|
60.3
|
|
|
60.0
|
|
Other non-current
assets
|
|
371.8
|
|
|
378.3
|
|
Total
assets
|
|
$
|
2,353.0
|
|
|
$
|
2,335.0
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
|
564.7
|
|
|
$
|
471.9
|
|
Accrued payroll and
benefits
|
|
90.8
|
|
|
80.6
|
|
Other accrued
liabilities
|
|
172.9
|
|
|
182.2
|
|
Current portion of
debt
|
|
15.5
|
|
|
14.7
|
|
Total current
liabilities
|
|
843.9
|
|
|
749.4
|
|
Long-term debt, net
of current portion
|
|
533.6
|
|
|
589.1
|
|
Defined benefit
pension obligations
|
|
15.7
|
|
|
18.2
|
|
Other non-current
liabilities
|
|
392.8
|
|
|
395.2
|
|
Total
liabilities
|
|
1,786.0
|
|
|
1,751.9
|
|
Commitments and
contingencies
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
Preferred stock,
$0.01 par value, 10.0 million shares authorized, none
issued
|
|
—
|
|
|
—
|
|
Common stock, $0.01
par value, 100.0 million shares authorized; shares
issued - 17.0 million and 16.6 million, respectively; shares
outstanding - 14.6
million and 15.9 million, respectively
|
|
0.2
|
|
|
0.2
|
|
Additional paid-in
capital
|
|
632.2
|
|
|
634.9
|
|
Accumulated earnings
(deficit)
|
|
86.3
|
|
|
(1.4)
|
|
Accumulated other
comprehensive loss
|
|
(34.6)
|
|
|
(33.5)
|
|
Treasury stock at
cost - 2.4 million shares in 2021 and 0.7 million shares in
2020
|
|
(117.1)
|
|
|
(17.1)
|
|
Total
shareholders' equity
|
|
567.0
|
|
|
583.1
|
|
Total liabilities
and shareholders' equity
|
|
$
|
2,353.0
|
|
|
$
|
2,335.0
|
|
VERITIV
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in millions,
unaudited)
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
2021
|
|
2020
|
Operating
activities
|
|
|
|
|
Net income
(loss)
|
|
$
|
87.7
|
|
|
$
|
2.2
|
|
Depreciation and
amortization
|
|
42.1
|
|
|
43.1
|
|
Amortization and
write-off of deferred financing fees
|
|
1.1
|
|
|
1.8
|
|
Net losses (gains) on
disposition of assets and sale of a business
|
|
(9.1)
|
|
|
(8.1)
|
|
Provision for
expected credit losses
|
|
4.6
|
|
|
11.2
|
|
Deferred income tax
provision (benefit)
|
|
(0.3)
|
|
|
(0.6)
|
|
Stock-based
compensation
|
|
5.7
|
|
|
14.9
|
|
Other non-cash items,
net
|
|
1.3
|
|
|
8.4
|
|
Changes in operating
assets and liabilities
|
|
|
|
|
Accounts receivable
and related party receivable
|
|
(120.1)
|
|
|
58.1
|
|
Inventories
|
|
(20.4)
|
|
|
65.3
|
|
Other current
assets
|
|
(5.8)
|
|
|
0.6
|
|
Accounts payable and
related party payable
|
|
97.7
|
|
|
52.8
|
|
Accrued payroll and
benefits
|
|
10.3
|
|
|
12.6
|
|
Other accrued
liabilities
|
|
(11.6)
|
|
|
1.6
|
|
Other
|
|
8.4
|
|
|
16.8
|
|
Net cash provided by
(used for) operating activities
|
|
91.6
|
|
|
280.7
|
|
Investing
activities
|
|
|
|
|
Property and
equipment additions
|
|
(14.1)
|
|
|
(19.8)
|
|
Proceeds from asset
sales and sale of a business
|
|
15.8
|
|
|
12.0
|
|
Net cash provided by
(used for) investing activities
|
|
1.7
|
|
|
(7.8)
|
|
Financing
activities
|
|
|
|
|
Change in book
overdrafts
|
|
(0.9)
|
|
|
(30.1)
|
|
Borrowings of
long-term debt
|
|
4,353.6
|
|
|
4,100.6
|
|
Repayments of
long-term debt
|
|
(4,401.1)
|
|
|
(4,252.0)
|
|
Payments under
right-of-use finance leases
|
|
(10.2)
|
|
|
(9.5)
|
|
Deferred financing
fees
|
|
(3.3)
|
|
|
(3.4)
|
|
Purchase of treasury
stock
|
|
(100.0)
|
|
|
(3.5)
|
|
Payments under Tax
Receivable Agreement
|
|
—
|
|
|
(0.3)
|
|
Other
|
|
(8.2)
|
|
|
(0.3)
|
|
Net cash provided by
(used for) financing activities
|
|
(170.1)
|
|
|
(198.5)
|
|
Effect of exchange
rate changes on cash
|
|
(0.4)
|
|
|
0.1
|
|
Net change in cash
and cash equivalents
|
|
(77.2)
|
|
|
74.5
|
|
Cash and cash
equivalents at beginning of period
|
|
120.6
|
|
|
38.0
|
|
Cash and cash
equivalents at end of period
|
|
$
|
43.4
|
|
|
$
|
112.5
|
|
Supplemental cash
flow information
|
|
|
|
|
Cash paid for income
taxes, net of refunds
|
|
$
|
37.2
|
|
|
$
|
2.8
|
|
Cash paid for
interest
|
|
11.9
|
|
|
17.2
|
|
Non-cash investing
and financing activities
|
|
|
|
|
Non-cash additions to
property and equipment for right-of-use finance
leases
|
|
$
|
1.9
|
|
|
$
|
13.4
|
|
Non-cash additions to
other non-current assets for right-of-use
operating leases
|
|
59.3
|
|
|
18.3
|
|
Non-GAAP Measures
We supplement our financial information prepared in accordance
with U.S. GAAP with certain non-GAAP measures including Adjusted
EBITDA (earnings before interest, income taxes, depreciation and
amortization, restructuring charges, net, integration and
acquisition expenses and other similar charges including any
severance costs, costs associated with warehouse and office
openings or closings, consolidation, and relocation and other
business optimization expenses, stock-based compensation expense,
changes in the LIFO reserve, non-restructuring asset impairment
charges, non-restructuring severance charges, non-restructuring
pension charges, net, fair value adjustments related to contingent
liabilities assumed in mergers and acquisitions and certain other
adjustments), free cash flow and other non-GAAP measures such as
the Net Debt to Adjusted EBITDA ratio. We believe investors
commonly use Adjusted EBITDA, free cash flow and these other
non-GAAP measures as key financial metrics for valuing companies.
In addition, the credit agreement governing our Asset-Based Lending
Facility (the "ABL Facility") permits us to exclude the foregoing
and other charges in calculating "Consolidated EBITDA", as defined
in the ABL Facility.
Adjusted EBITDA, free cash flow and these other non-GAAP
measures are not alternative measures of financial performance or
liquidity under U.S. GAAP. Non-GAAP measures do not have
definitions under U.S. GAAP and may be defined differently by, and
not be comparable to, similarly titled measures used by other
companies. As a result, we consider and evaluate non-GAAP measures
in connection with a review of the most directly comparable measure
calculated in accordance with U.S. GAAP. We caution investors not
to place undue reliance on such non-GAAP measures and to consider
them with the most directly comparable U.S. GAAP measures. Adjusted
EBITDA, free cash flow and these other non-GAAP measures have
limitations as analytical tools and should not be considered in
isolation or as a substitute for analyzing our results as reported
under U.S. GAAP. Please see the following tables for
reconciliations of non-GAAP measures to the most comparable U.S.
GAAP measures.
Table
I
|
VERITIV
CORPORATION
|
RECONCILIATION OF
NON-GAAP MEASURES
|
NET INCOME (LOSS)
TO ADJUSTED EBITDA; ADJUSTED EBITDA MARGIN
|
(in millions,
unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net income
(loss)
|
|
$
|
40.0
|
|
|
$
|
21.1
|
|
|
$
|
87.7
|
|
|
$
|
2.2
|
|
Interest expense,
net
|
|
3.8
|
|
|
5.5
|
|
|
13.4
|
|
|
19.7
|
|
Income tax expense
(benefit)
|
|
14.1
|
|
|
(0.1)
|
|
|
32.3
|
|
|
(0.2)
|
|
Depreciation and
amortization
|
|
13.3
|
|
|
15.0
|
|
|
42.1
|
|
|
43.1
|
|
EBITDA
|
|
71.2
|
|
|
41.5
|
|
|
175.5
|
|
|
64.8
|
|
Restructuring
charges, net
|
|
2.5
|
|
|
7.9
|
|
|
12.0
|
|
|
40.4
|
|
Facility closure
charges, including (gain) loss
from asset disposition
|
|
0.2
|
|
|
(7.4)
|
|
|
(1.0)
|
|
|
(5.4)
|
|
Stock-based
compensation
|
|
1.0
|
|
|
4.8
|
|
|
5.7
|
|
|
14.9
|
|
LIFO reserve
(decrease) increase
|
|
15.1
|
|
|
(0.4)
|
|
|
31.2
|
|
|
(4.6)
|
|
Non-restructuring
severance charges
|
|
3.6
|
|
|
0.8
|
|
|
5.5
|
|
|
3.2
|
|
Non-restructuring
pension charges, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7.2
|
|
Fair value adjustment
on Tax Receivable
Agreement contingent liability
|
|
—
|
|
|
2.0
|
|
|
—
|
|
|
1.0
|
|
Fair value adjustment
on contingent
consideration liability
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
Other
|
|
0.1
|
|
|
0.7
|
|
|
(2.2)
|
|
|
3.4
|
|
Adjusted
EBITDA
|
|
$
|
93.7
|
|
|
$
|
49.9
|
|
|
$
|
226.7
|
|
|
$
|
125.9
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
1,767.8
|
|
|
$
|
1,591.2
|
|
|
$
|
4,985.7
|
|
|
$
|
4,703.3
|
|
Adjusted EBITDA as a
% of net sales
|
|
5.3
|
%
|
|
3.1
|
%
|
|
4.5
|
%
|
|
2.7
|
%
|
Table
I.a.
|
VERITIV
CORPORATION
|
RECONCILIATION OF
NON-GAAP MEASURES
|
NET INCOME (LOSS)
TO ADJUSTED EBITDA GUIDANCE
|
(in millions,
unaudited)
|
|
|
|
|
|
|
|
Forecast for Year
Ending December 31, 2021
|
|
|
Low
|
|
High
|
Net income
(loss)
|
|
$
|
130
|
|
|
$
|
145
|
|
Interest expense,
net
|
|
20
|
|
|
20
|
|
Income tax expense
(benefit)
|
|
50
|
|
|
55
|
|
Depreciation and
amortization
|
|
55
|
|
|
55
|
|
Other reconciling
items
|
|
60
|
|
|
55
|
|
Adjusted
EBITDA
|
|
$
|
315
|
|
|
$
|
330
|
|
Table
II
|
VERITIV
CORPORATION
|
RECONCILIATION OF
NON-GAAP MEASURES
|
FREE CASH
FLOW
|
(in millions,
unaudited)
|
|
|
|
|
|
|
Three Months
Ended
September 30, 2021
|
Nine Months
Ended
September 30, 2021
|
Net cash provided by
(used for) operating activities
|
|
$
|
41.5
|
|
$
|
91.6
|
|
Less: Capital
expenditures
|
|
(5.0)
|
|
(14.1)
|
|
Free cash
flow
|
|
$
|
36.5
|
|
$
|
77.5
|
|
Table
II.a
|
VERITIV
CORPORATION
|
RECONCILIATION OF
NON-GAAP MEASURES
|
FREE CASH FLOW
GUIDANCE
|
(in millions,
unaudited)
|
|
|
|
|
|
Forecast for Year
Ending December 31, 2021
|
Net cash provided by
(used for) operating activities
|
|
at least
$145
|
Less: Capital
expenditures
|
|
(25)
|
Free cash
flow
|
|
at least
$120
|
Table
III
|
VERITIV
CORPORATION
|
RECONCILIATION OF
NON-GAAP MEASURES
|
NET DEBT TO
ADJUSTED EBITDA
|
(in millions,
unaudited)
|
|
|
|
September 30,
2021
|
Amount drawn on ABL
Facility
|
$
|
473.4
|
|
Less: Cash and cash
equivalents
|
(43.4)
|
|
Net debt
|
$
|
430.0
|
|
|
|
Last Twelve Months
Adjusted EBITDA
|
$
|
288.4
|
|
|
|
Net debt to Adjusted
EBITDA
|
1.5x
|
|
|
|
Last Twelve
Months
|
|
September 30,
2021
|
Net income
(loss)
|
$
|
119.7
|
|
Interest expense,
net
|
18.8
|
|
Income tax expense
(benefit)
|
41.3
|
|
Depreciation and
amortization
|
56.7
|
|
EBITDA
|
236.5
|
|
Restructuring
charges, net
|
23.8
|
|
Facility closure
charges, including (gain) loss from asset disposition
|
0.7
|
|
Stock-based
compensation
|
8.5
|
|
LIFO reserve
(decrease) increase
|
34.3
|
|
Non-restructuring
severance charges
|
6.4
|
|
Fair value adjustment
on Tax Receivable Agreement contingent liability
|
(20.1)
|
|
Escheat audit
contingent liability
|
(0.2)
|
|
Other
|
(1.5)
|
|
Adjusted
EBITDA
|
$
|
288.4
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/veritiv-announces-record-third-quarter-2021-net-income-adjusted-ebitda-and-adjusted-ebitda-margin-raises-guidance-301414582.html
SOURCE Veritiv Corporation