Verso’s net sales up 142 per cent during Q2 2015

Photo: Verso Paper

Verso Corporation recently reported financial results for the second quarter of 2015. Results for the quarters ended June 30, 2015 and 2014 include:

Net sales of $778 million in the second quarter of 2015 compared to $321 million in the second quarter of 2014.

Operating income before special items of $14 million in the second quarter of 2015 compared to $12 million in the second quarter of 2014.

Adjusted EBITDA before pro forma effects of the profitability program of $80 million in the second quarter of 2015, compared to $65 million in the second quarter of 2014.

Verso's net sales for the second quarter of 2015 increased $457 million, or 142%, due primarily to the addition of net sales resulting from the NewPage acquisition, compared to the second quarter of 2014.

During the second quarter of 2015, Verso recorded special items affecting operating income totaling $9 million, or $0.11 per diluted share, primarily related to integrating the legacy Verso and NewPage operations, restructuring costs associated with the NewPage acquisition and closure of the Bucksport mill. During the second quarter of 2014, special items of $9 million, or $0.16 per diluted share, were primarily attributable to costs related to the NewPage acquisition.

"Verso's results for the second quarter showed our resilience in the face of industry headwinds," said Verso President and Chief Executive Officer David Paterson. "The results reflected strong performance improvements which include increased gross margin, a 16% reduction in SG&A compared to the first quarter of 2015, and double-digit adjusted EBITDA growth. As our integration efforts continue, our synergy achievement is ahead of expectations, with savings to date of $41 million.