Third Quarter Financial Highlights
- Net sales of $1.8 Billion, an
increase of 2.1% from prior year; organic sales growth of
14.9%
- Net Income and Diluted EPS of $96.7
Million and $6.86,
respectively
- Adjusted EBITDA and Adjusted EBITDA Margin1 of
$141.3 Million and 7.8%,
respectively
- Net Leverage Ratio of 0.6x
Dividend Highlights
- Company is announcing today that the Board of Directors
authorized a quarterly cash dividend of $0.63 per share
- Annual dividend yield of approximately 2%, based on our
recent share price
- Initial dividend to be paid during fourth quarter
2022
ATLANTA, Nov. 8, 2022
/PRNewswire/ -- Veritiv Corporation (NYSE: VRTV), a full-service
provider of business-to-business products, services and solutions,
today announced financial results for the third quarter ended
September 30, 2022.
"Organic sales for the third quarter grew 15% fueled by a
combination of above market volume performance in the U.S.
corrugated and flexible Packaging businesses, pricing actions, and
growth-oriented initiatives within key industry verticals," said
Sal Abbate, Chief Executive Officer.
"Ongoing commercial and operational efficiency initiatives coupled
with disciplined execution helped drive more than 50%
year-over-year Adjusted EBITDA growth and our best Adjusted EBITDA
margin performance across each of our segments for any quarter in
company history. We believe our strategic actions over the past
several years have fundamentally improved our business and
positions us well to navigate the uncertain global economic
environment."
Abbate continued, "Today's dividend announcement is the result
of our fortified balance sheet and strong cash flow generation. Our
improved and consistently strong financial performance and ongoing
commercial and operational efficiency initiatives provide us with
the confidence and flexibility to return excess capital to our
shareholders while at the same time continuing to strategically
invest in our business."
For the three months ended September 30, 2022,
compared to the three months ended September 30, 2021:
- Net sales were $1.8 billion, an increase of 2.1% from the
prior year; organic sales increased 14.9%.
- Net income was $96.7 million,
compared to $40.0 million in the
prior year. Net restructuring charges were $1.4 million, compared to $2.5 million in the prior year.
- Basic and diluted earnings per share were $6.98 and $6.86,
respectively, compared to $2.69 and
$2.54, respectively, in the prior
year.
- Adjusted EBITDA was $141.3 million, an increase of 50.8%
from the prior year.
- Adjusted EBITDA margin was 7.8%, an increase of 250 basis
points from the prior year.
For the nine months ended September 30, 2022, compared to
the nine months ended September 30, 2021:
- Net sales were $5.5 billion, an increase of 10.0% from the
prior year; organic sales increased 17.9%.
- Net income was $266.3 million,
compared to $87.7 million in the
prior year. Net restructuring charges were $5.5 million, compared to $12.0 million in the prior year.
- Basic and diluted earnings per share were $18.49 and $18.04,
respectively, compared to $5.68 and
$5.40, respectively, in the prior
year.
- Adjusted EBITDA was $397.1 million, an increase of 75.2%
from the prior year.
- Adjusted EBITDA margin was 7.2%, an increase of 270 basis
points from the prior year.
For the three months ended September 30, 2022, net cash
provided by operating activities was $96.6
million and free cash flow was $90.1
million. For the nine months ended September 30, 2022,
net cash provided by operating activities was $158.9 million and free cash flow was
$140.8 million.
"Our record earnings performance in the third quarter
contributed to a record low net leverage ratio of 0.6x," said
Steve Smith, Chief Financial
Officer. "We also completed our $200
million share repurchase program during the third quarter
and repurchased 1.6 million shares over the course of this program,
or approximately 10% of the shares outstanding. Since resuming
share repurchases in March of 2021, we have repurchased
approximately 3.3 million shares, or approximately 20% of the
shares outstanding."
Revised 2022 Guidance
Given the strong financial performance so far this year and
favorable outlook for the remainder of the year, the Company now
expects full year 2022 net income to be in the range of
$320 to $340
million. Diluted earnings per share is estimated to be in
the range of $22.00 to $23.50, based on approximately 14.5 million fully
diluted shares outstanding. Adjusted EBITDA is now expected to be
in the range of $510 to $530 million. Net cash provided by operating
activities and free cash flow are still expected to be
approximately $280 million and
$250 million, respectively. Capital
expenditures are still estimated to be approximately $30 million.
Quarterly Dividend
Veritiv Corporation's Board of Directors approved a dividend of
$0.63 per share payable on
December 19, 2022 to shareholders of
record as of the close of business on November 18, 2022.
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 8, 2022, at 9 a.m.
(ET) to discuss its third quarter financial results and full
year 2022 guidance. To participate, callers within the United States (U.S.) and Canada can dial (888) 330-2469, and
international callers can use the following link for international
access numbers,
https://events.evolveirportal.com/custom/access/2324, both using
conference ID number 3047006. 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. Serving customers in a wide range of
industries both in North America
and globally, Veritiv has distribution centers throughout the U.S.
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, strategy, business plans, prospects and guidance,
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, 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 the risks and other factors
described under "Risk Factors" and elsewhere in our Annual Report
on Form 10-K and in the Company's other publicly available reports
filed with the Securities and Exchange Commission ("SEC"). 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; inability
to realize expected benefits of restructuring plans; 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, 2022 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,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net sales
|
|
$ 1,804.1
|
|
$ 1,767.8
|
|
$ 5,482.9
|
|
$ 4,985.7
|
Cost of products sold
(exclusive of depreciation and amortization shown separately
below)
|
|
1,388.3
|
|
1,402.1
|
|
4,254.6
|
|
3,959.2
|
Distribution
expenses
|
|
93.4
|
|
103.4
|
|
303.8
|
|
308.9
|
Selling and
administrative expenses
|
|
194.9
|
|
189.7
|
|
573.5
|
|
537.0
|
Gain on sale of
businesses
|
|
(18.6)
|
|
—
|
|
(28.6)
|
|
(3.1)
|
Depreciation and
amortization
|
|
10.8
|
|
13.3
|
|
34.6
|
|
42.1
|
Restructuring charges,
net
|
|
1.4
|
|
2.5
|
|
5.5
|
|
12.0
|
Operating income (loss)
|
|
133.9
|
|
56.8
|
|
339.5
|
|
129.6
|
Interest expense,
net
|
|
4.8
|
|
3.8
|
|
12.3
|
|
13.4
|
Other (income) expense,
net
|
|
0.0
|
|
(1.1)
|
|
(7.2)
|
|
(3.8)
|
Income (loss) before income
taxes
|
|
129.1
|
|
54.1
|
|
334.4
|
|
120.0
|
Income tax expense
(benefit)
|
|
32.4
|
|
14.1
|
|
68.1
|
|
32.3
|
Net income (loss)
|
|
$
96.7
|
|
$
40.0
|
|
$
266.3
|
|
$
87.7
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
6.98
|
|
$
2.69
|
|
$
18.49
|
|
$
5.68
|
Diluted
|
|
$
6.86
|
|
$
2.54
|
|
$
18.04
|
|
$
5.40
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
13.85
|
|
14.86
|
|
14.40
|
|
15.44
|
Diluted
|
|
14.10
|
|
15.76
|
|
14.76
|
|
16.24
|
VERITIV CORPORATION
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
(dollars in millions,
except par value, unaudited)
|
|
|
|
|
|
|
|
September 30, 2022
|
|
December 31, 2021
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
33.8
|
|
$
49.3
|
Accounts receivable,
less allowances of $28.6 and $34.4, respectively
|
|
962.3
|
|
1,011.2
|
Inventories
|
|
449.2
|
|
484.5
|
Other current
assets
|
|
138.7
|
|
132.7
|
Total current assets
|
|
1,584.0
|
|
1,677.7
|
Property and equipment
(net of accumulated depreciation and amortization
of $317.8 and $332.4, respectively)
|
|
131.3
|
|
162.9
|
Goodwill
|
|
96.3
|
|
99.6
|
Other intangibles,
net
|
|
36.7
|
|
42.7
|
Deferred income tax
assets
|
|
53.8
|
|
47.1
|
Other non-current
assets
|
|
337.5
|
|
408.4
|
Total assets
|
|
$
2,239.6
|
|
$
2,438.4
|
Liabilities and shareholders'
equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
543.2
|
|
$
561.9
|
Accrued payroll and
benefits
|
|
84.9
|
|
110.0
|
Other accrued
liabilities
|
|
157.7
|
|
185.7
|
Current portion of
debt
|
|
13.8
|
|
16.0
|
Total current liabilities
|
|
799.6
|
|
873.6
|
Long-term debt, net of
current portion
|
|
389.9
|
|
499.7
|
Defined benefit pension
obligations
|
|
4.2
|
|
7.2
|
Other non-current
liabilities
|
|
360.8
|
|
422.1
|
Total liabilities
|
|
1,554.5
|
|
1,802.6
|
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 - 17.5 million and 17.0 million, respectively; shares
outstanding - 13.5
million and 14.6 million, respectively
|
|
0.2
|
|
0.2
|
Additional paid-in
capital
|
|
611.5
|
|
633.8
|
Accumulated earnings
(deficit)
|
|
409.5
|
|
143.2
|
Accumulated other
comprehensive loss
|
|
(19.0)
|
|
(24.3)
|
Treasury stock at cost
- 4.0 million and 2.4 million shares, respectively
|
|
(317.1)
|
|
(117.1)
|
Total shareholders' equity
|
|
685.1
|
|
635.8
|
Total liabilities and shareholders'
equity
|
|
$
2,239.6
|
|
$
2,438.4
|
VERITIV CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
(in millions,
unaudited)
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
2022
|
|
2021
|
Operating activities
|
|
|
|
|
Net income
(loss)
|
|
$
266.3
|
|
$
87.7
|
Depreciation and
amortization
|
|
34.6
|
|
42.1
|
Amortization and
write-off of deferred financing fees
|
|
1.2
|
|
1.1
|
Net (gains) losses on
disposition of assets and sale of businesses
|
|
(33.7)
|
|
(9.1)
|
Provision for expected
credit losses
|
|
2.6
|
|
4.6
|
Deferred income tax
provision (benefit)
|
|
(6.7)
|
|
(0.3)
|
Stock-based
compensation
|
|
7.7
|
|
5.7
|
Other non-cash items,
net
|
|
(7.5)
|
|
1.3
|
Changes in operating
assets and liabilities
|
|
|
|
|
Accounts
receivable
|
|
(66.1)
|
|
(120.1)
|
Inventories
|
|
(51.5)
|
|
(20.4)
|
Other current
assets
|
|
(5.5)
|
|
(5.8)
|
Accounts
payable
|
|
40.5
|
|
97.7
|
Accrued payroll and
benefits
|
|
(19.0)
|
|
10.3
|
Other accrued
liabilities
|
|
(1.3)
|
|
(11.6)
|
Other
|
|
(2.7)
|
|
8.4
|
Net cash provided by (used for) operating
activities
|
|
158.9
|
|
91.6
|
Investing activities
|
|
|
|
|
Property and equipment
additions
|
|
(18.1)
|
|
(14.1)
|
Proceeds from asset
sales and sale of businesses, net of cash transferred
|
|
158.2
|
|
15.8
|
Proceeds from insurance
related to property and equipment
|
|
3.3
|
|
—
|
Net cash provided by (used for) investing
activities
|
|
143.4
|
|
1.7
|
Financing activities
|
|
|
|
|
Change in book
overdrafts
|
|
12.3
|
|
(0.9)
|
Borrowings of long-term
debt
|
|
4,713.1
|
|
4,353.6
|
Repayments of long-term
debt
|
|
(4,799.4)
|
|
(4,401.1)
|
Payments under
right-of-use finance leases
|
|
(9.1)
|
|
(10.2)
|
Payments under
vendor-based financing arrangements
|
|
(3.2)
|
|
—
|
Deferred financing
fees
|
|
—
|
|
(3.3)
|
Purchase of treasury
stock
|
|
(200.0)
|
|
(100.0)
|
Impact of tax
withholding on share-based compensation
|
|
(30.0)
|
|
(8.4)
|
Other
|
|
(0.2)
|
|
0.2
|
Net cash provided by (used for) financing
activities
|
|
(316.5)
|
|
(170.1)
|
Effect of exchange rate changes on
cash
|
|
(1.3)
|
|
(0.4)
|
Net change in cash and cash
equivalents
|
|
(15.5)
|
|
(77.2)
|
Cash and cash
equivalents at beginning of period
|
|
49.3
|
|
120.6
|
Cash and cash equivalents at end of
period
|
|
$
33.8
|
|
$
43.4
|
Supplemental cash flow
information
|
|
|
|
|
Cash paid for income
taxes, net of refunds
|
|
$
78.7
|
|
$
37.2
|
Cash paid for
interest
|
|
10.7
|
|
11.9
|
Non-cash investing and financing
activities
|
|
|
|
|
Non-cash additions to
property and equipment for right-of-use
finance leases and vendor-based financing arrangements
|
|
$
18.6
|
|
$
1.9
|
Non-cash additions to
other non-current assets for right-of-use
operating leases
|
|
38.7
|
|
59.3
|
Non-GAAP Measures
We supplement our financial information prepared in accordance
with U.S. GAAP with certain non-GAAP measures including organic
sales (net sales on an average daily sales basis, excluding revenue
from sold businesses and revenue from acquired businesses for a
period of 12 months after we complete the acquisition), 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 (benefits), 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 Leverage Ratio (calculated as net debt
divided by trailing twelve months of Adjusted EBITDA) and Return on
Invested Capital (calculated as Net Operating Profit After Tax
divided by the sum of net working capital and property and
equipment. Net Operating Profit After Tax is defined as Adjusted
EBITDA less depreciation and amortization times 1 minus the
standard tax rate1). We believe investors commonly use
Adjusted EBITDA, free cash flow and these other non-GAAP measures
as key financial metrics for valuing companies; we also present
organic sales to help investors better compare period-over-period
results. 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.
Organic sales, 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. Organic
sales, 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.
1 The Company uses a standard tax rate of 26% due to
the historic volatility of the Company's effective tax rate.
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,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net income
(loss)
|
|
$
96.7
|
|
$
40.0
|
|
$ 266.3
|
|
$
87.7
|
Interest expense,
net
|
|
4.8
|
|
3.8
|
|
12.3
|
|
13.4
|
Income tax expense
(benefit)
|
|
32.4
|
|
14.1
|
|
68.1
|
|
32.3
|
Depreciation and
amortization
|
|
10.8
|
|
13.3
|
|
34.6
|
|
42.1
|
EBITDA
|
|
144.7
|
|
71.2
|
|
381.3
|
|
175.5
|
Restructuring charges,
net
|
|
1.4
|
|
2.5
|
|
5.5
|
|
12.0
|
Gain on sale of
businesses
|
|
(18.6)
|
|
—
|
|
(28.6)
|
|
(3.1)
|
Facility closure
charges, including (gain) loss from asset disposition
|
|
1.9
|
|
0.2
|
|
1.0
|
|
(1.0)
|
Stock-based
compensation
|
|
1.8
|
|
1.0
|
|
7.7
|
|
5.7
|
LIFO reserve (decrease)
increase
|
|
7.3
|
|
15.1
|
|
30.1
|
|
31.2
|
Non-restructuring
severance charges
|
|
0.5
|
|
3.6
|
|
2.0
|
|
5.5
|
Non-restructuring
pension charges (benefits)
|
|
—
|
|
—
|
|
(7.0)
|
|
—
|
Other
|
|
2.3
|
|
0.1
|
|
5.1
|
|
0.9
|
Adjusted
EBITDA
|
|
$ 141.3
|
|
$
93.7
|
|
$ 397.1
|
|
$
226.7
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
1,804.1
|
|
$
1,767.8
|
|
$
5,482.9
|
|
$
4,985.7
|
Adjusted EBITDA as a %
of net sales
|
|
7.8 %
|
|
5.3 %
|
|
7.2 %
|
|
4.5 %
|
Table I.a.
|
VERITIV CORPORATION
|
RECONCILIATION OF NON-GAAP
MEASURES
|
ADJUSTED EBITDA GUIDANCE
|
(in millions,
unaudited)
|
|
|
|
|
|
|
|
Forecast for Year Ending December 31,
2022
|
|
|
Low
|
|
High
|
Net income (loss)
|
|
$
320
|
|
$
340
|
Interest expense,
net
|
|
15
|
|
15
|
Income tax expense
(benefit)
|
|
95
|
|
100
|
Depreciation and
amortization
|
|
45
|
|
45
|
Other reconciling
items
|
|
35
|
|
30
|
Adjusted EBITDA
|
|
$
510
|
|
$
530
|
Table II
|
VERITIV CORPORATION
|
RECONCILIATION OF NON-GAAP
MEASURES
|
FREE CASH FLOW
|
(in millions,
unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2022
|
|
Nine Months Ended
September 30, 2022
|
Net cash provided by
(used for) operating activities
|
|
$
96.6
|
|
$
158.9
|
Less: Capital
expenditures
|
|
(6.5)
|
|
(18.1)
|
Free cash
flow
|
|
$
90.1
|
|
$
140.8
|
Table II.a
|
VERITIV CORPORATION
|
RECONCILIATION OF NON-GAAP
MEASURES
|
FREE CASH FLOW GUIDANCE
|
(in millions,
unaudited)
|
|
|
|
|
|
Forecast for Year Ending December 31,
2022
|
Net cash provided by
(used for) operating activities
|
|
approximately
$280
|
Less: Capital
expenditures
|
|
approximately
($30)
|
Free cash flow
|
|
approximately $250
|
Table III
|
VERITIV CORPORATION
|
RECONCILIATION OF NON-GAAP
MEASURES
|
NET DEBT TO ADJUSTED EBITDA
|
(in millions,
unaudited)
|
|
|
|
September 30, 2022
|
Amount drawn on ABL
Facility
|
$
354.5
|
Less: Cash and cash
equivalents
|
(33.8)
|
Net debt
|
$
320.7
|
|
|
Last Twelve Months
Adjusted EBITDA
|
$
513.0
|
|
|
Net debt to Adjusted
EBITDA
|
0.6x
|
|
|
|
Last Twelve Months
|
|
September 30, 2022
|
Net income
(loss)
|
$
323.2
|
Interest expense,
net
|
16.1
|
Income tax expense
(benefit)
|
88.7
|
Depreciation and
amortization
|
47.7
|
EBITDA
|
475.7
|
Restructuring charges,
net
|
8.9
|
Gain on sale of
businesses
|
(28.6)
|
Facility closure
charges, including (gain) loss from asset disposition
|
2.1
|
Stock-based
compensation
|
9.4
|
LIFO reserve (decrease)
increase
|
42.5
|
Non-restructuring
severance charges
|
4.3
|
Non-restructuring
pension charges (benefits)
|
(6.5)
|
Other
|
5.2
|
Adjusted
EBITDA
|
$
513.0
|
Table IV
|
VERITIV CORPORATION
|
RECONCILIATION OF NON-GAAP
MEASURES
|
REPORTED SALES GROWTH TO ORGANIC SALES
GROWTH
|
(in millions,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Reported sales
growth
|
|
2.1 %
|
|
11.1 %
|
|
10.0 %
|
|
6.0 %
|
Impact of change in
selling days1
|
|
— %
|
|
— %
|
|
— %
|
|
0.6 %
|
Sales per day
growth
|
|
2.1 %
|
|
11.1 %
|
|
10.0 %
|
|
6.6 %
|
Business
divestitures2
|
|
12.8 %
|
|
1.5 %
|
|
7.9 %
|
|
(0.3) %
|
Organic sales growth
|
|
14.9 %
|
|
12.6 %
|
|
17.9 %
|
|
6.3 %
|
|
|
|
|
|
|
|
|
|
Business Days
|
|
64
|
|
64
|
|
191
|
|
191
|
1 Adjustment for differences in the
number of selling days.
|
|
|
|
|
|
|
|
|
2 Represents the net sales of each of
the following divested businesses prior to its respective
divestiture: Rollsource (March 31, 2021), Veritiv
Canada, Inc. (May 2, 2022) and the logistics solutions business
(September 1, 2022).
|
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SOURCE Veritiv Corporation