Fourth Quarter Financial Highlights
- Net Sales of $1.7 billion, a
decrease of 10.8% from prior year; organic sales growth of
1.8%
- Net Income of $71.6 million,
an increase of 25.8% from prior year
- Diluted EPS of $5.20, an
increase of 41.7% from prior year
- Adjusted EBITDA and Adjusted EBITDA margin1 of
$120.8 million and 7.3%,
respectively
- Net Leverage Ratio of 0.4x
Full Year 2022 Financial Highlights
- Net Income $337.9 million, an
increase of 133.7% from prior year
- Diluted EPS of $23.29, an
increase of 158.5% from prior year
- Adjusted EBITDA and Adjusted EBITDA margin1 of
$517.9 million and 7.2%,
respectively
ATLANTA, Feb. 28,
2023 /PRNewswire/ -- Veritiv Corporation (NYSE:
VRTV), a full-service provider of business-to-business products,
services and solutions, today announced financial results for the
fourth quarter and full year ended December 31, 2022.
"Disciplined execution of our strategic initiatives and a
diversified portfolio contributed to the best fourth quarter and
full year net income, EPS, Adjusted EBITDA, and Adjusted EBITDA
margin performance in company history," said Sal Abbate, Chief Executive Officer.
"Adjusted EBITDA margin for 2022 was a record 7.2%, which is more
than three times greater than 2019 pre-pandemic levels.
Throughout 2022, we invested in above-market growth initiatives to
maximize returns while simultaneously divesting lower-growth and
non-strategic businesses."
Abbate concluded, "Organic sales growth of 1.8% continued to be
positive in the fourth quarter, albeit a deceleration from the
third quarter, driven by customer inventory destocking and
softening demand. As we turn to 2023, we will continue to
both invest in value-added and sustainable solutions that solve
complexities for our customers, as well as execute on our next wave
of commercial and operational efficiency initiatives. We believe
these actions will support a sustainable Adjusted EBITDA margin
well above historical levels."
For the three months ended December 31, 2022, compared
to the three months ended December 31, 2021:
- Net sales were $1.7 billion, a
decrease of 10.8% from the prior year; organic sales increased
1.8%.
- Net income was $71.6 million,
compared to $56.9 million in the
prior year. Net restructuring charges were $(3.5) million, compared to $3.4 million in the prior year.
- Basic and diluted earnings per share were $5.31 and $5.20,
respectively, compared to $3.90 and
$3.67, respectively, in the prior
year.
- Adjusted EBITDA was $120.8
million, an increase of 4.2% from the prior year.
- Adjusted EBITDA margin was 7.3%, an increase of 110 basis
points from the prior year.
For the year ended December 31, 2022, compared to the
year ended December 31, 2021:
- Net sales were $7.1 billion, an
increase of 4.3% from the prior year; organic sales increased
13.5%.
- Net income was $337.9 million,
compared to $144.6 million in the
prior year. Net restructuring charges were $2.0 million, compared to $15.4 million in the prior year.
- Basic and diluted earnings per share were $23.85 and $23.29,
respectively, compared to $9.50 and
$9.01, respectively, in the prior
year.
- Adjusted EBITDA was $517.9
million, an increase of 51.2% from the prior year.
- Adjusted EBITDA margin was 7.2%, an increase of 220 basis
points from the prior year.
For the three months ended December 31, 2022, net cash
provided by operating activities was $93.5 million and free
cash flow was $89.7 million.
For the year ended December 31, 2022, net cash provided by
operating activities was $252.4
million and free cash flow was $230.5
million.
"During 2022, we returned $200
million to shareholders in the form of share repurchases and
approximately $8.5 million in the
form of our first quarterly dividend," said Steve Smith, Chief Financial Officer. "We
repurchased approximately 3.3 million shares, or approximately 20%
of shares outstanding since resuming share repurchases in March of
2021. Our strong earnings performance and a record leverage ratio
of 0.4x is significantly below our historic long-term target of
3.0x, which we believe provides the company strategic optionality
with its capital management."
2023 Guidance
The Company expects full year 2023 net income to be in the range
of $265 to $305 million. Diluted earnings per share is
estimated to be in the range of $19.00 to $22.00,
based on approximately 13.9 million fully diluted shares
outstanding. Adjusted EBITDA is expected to be in the range
of $430 to $490 million. Net cash provided by
operating activities and free cash flow are expected to be
approximately $305 million and
$275 million, respectively.
Capital investments are estimated to be approximately $45 million, consisting of approximately
$30 million of traditional capital
expenditures and approximately $15
million of cloud computing arrangements2,
consistent with our investments in technology.
Quarterly Dividend
Veritiv Corporation's Board of Directors approved a dividend of
$0.63 per share payable on
March 31, 2023 to shareholders of
record as of the close of business on March
9, 2023.
1Adjusted EBITDA margin, a non-GAAP metric, is
defined as Adjusted EBITDA as a percentage of net sales.
2Capital expenditures are reported in cash flow from
investing activities and cloud computing arrangements are reported
in cash flow from operating activities.
-----
Veritiv Corporation will host a conference call and webcast
today, February 28, 2023, at 9 a.m.
(ET) to discuss its fourth quarter and full year financial
results and full year 2023 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 measures not presented in
accordance with 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 customer demand, supply and demand
imbalances, the expected competitive landscape, the expected 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," "will," "may," "should," "could," "would,"
"plan," "estimate," "predict," "potential," "goal," "outlook," 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 results 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, strategy, 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: 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 multiple significant customers;
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 appropriately 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; 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; our ability to adequately address environmental,
social and governance matters, 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; adverse impacts from the COVID-19
pandemic, 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 Annual Report on Form 10-K for the
year ended December 31, 2022 to be filed with the SEC may
contain updates to the information included in this release.
Financial Statements
VERITIV
CORPORATION
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(in millions, except
per share data, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net sales
|
|
$ 1,663.4
|
|
$ 1,864.8
|
|
$ 7,146.3
|
|
$ 6,850.5
|
Cost of products sold
(exclusive of depreciation and
amortization shown separately below)
|
|
1,271.4
|
|
1,458.7
|
|
5,526.0
|
|
5,417.9
|
Distribution
expenses
|
|
94.7
|
|
110.4
|
|
398.5
|
|
419.3
|
Selling and
administrative expenses
|
|
189.2
|
|
198.8
|
|
762.7
|
|
735.8
|
Gain on sale of
businesses
|
|
(1.1)
|
|
—
|
|
(29.7)
|
|
(3.1)
|
Depreciation and
amortization
|
|
11.0
|
|
13.1
|
|
45.6
|
|
55.2
|
Restructuring charges,
net
|
|
(3.5)
|
|
3.4
|
|
2.0
|
|
15.4
|
Operating income
(loss)
|
|
101.7
|
|
80.4
|
|
441.2
|
|
210.0
|
Interest expense,
net
|
|
5.4
|
|
3.8
|
|
17.7
|
|
17.2
|
Other (income) expense,
net
|
|
(1.2)
|
|
(0.9)
|
|
(8.4)
|
|
(4.7)
|
Income (loss) before
income taxes
|
|
97.5
|
|
77.5
|
|
431.9
|
|
197.5
|
Income tax expense
(benefit)
|
|
25.9
|
|
20.6
|
|
94.0
|
|
52.9
|
Net income
(loss)
|
|
$
71.6
|
|
$
56.9
|
|
$
337.9
|
|
$
144.6
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
5.31
|
|
$
3.90
|
|
$
23.85
|
|
$
9.50
|
Diluted
|
|
$
5.20
|
|
$
3.67
|
|
$
23.29
|
|
$
9.01
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
13.48
|
|
14.59
|
|
14.17
|
|
15.22
|
Diluted
|
|
13.76
|
|
15.51
|
|
14.51
|
|
16.05
|
VERITIV
CORPORATION
|
CONSOLIDATED BALANCE
SHEETS
|
(dollars in millions,
except par value, unaudited)
|
|
|
|
|
|
|
|
December 31,
2022
|
|
December 31,
2021
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
40.6
|
|
$
49.3
|
Accounts receivable,
less allowances of $26.7 and $34.4, respectively
|
|
889.6
|
|
1,011.2
|
Inventories
|
|
423.9
|
|
484.5
|
Other current
assets
|
|
103.7
|
|
132.7
|
Total current
assets
|
|
1,457.8
|
|
1,677.7
|
Property and equipment
(net of accumulated depreciation and amortization
of $325.5 and $332.4, respectively)
|
|
127.5
|
|
162.9
|
Goodwill
|
|
96.3
|
|
99.6
|
Other intangibles,
net
|
|
35.6
|
|
42.7
|
Deferred income tax
assets
|
|
29.0
|
|
47.1
|
Other non-current
assets
|
|
343.4
|
|
408.4
|
Total
assets
|
|
$
2,089.6
|
|
$
2,438.4
|
Liabilities and
shareholders' equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
452.9
|
|
$
561.9
|
Accrued payroll and
benefits
|
|
106.2
|
|
110.0
|
Other accrued
liabilities
|
|
154.1
|
|
185.7
|
Current portion of
debt
|
|
13.4
|
|
16.0
|
Total current
liabilities
|
|
726.6
|
|
873.6
|
Long-term debt, net of
current portion
|
|
264.8
|
|
499.7
|
Defined benefit pension
obligations
|
|
0.4
|
|
7.2
|
Other non-current
liabilities
|
|
341.7
|
|
422.1
|
Total
liabilities
|
|
1,333.5
|
|
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
|
|
613.1
|
|
633.8
|
Accumulated earnings
(deficit)
|
|
472.6
|
|
143.2
|
Accumulated other
comprehensive loss
|
|
(12.7)
|
|
(24.3)
|
Treasury stock at cost
- 4.0 million and 2.4 million shares, respectively
|
|
(317.1)
|
|
(117.1)
|
Total shareholders'
equity
|
|
756.1
|
|
635.8
|
Total liabilities
and shareholders' equity
|
|
$
2,089.6
|
|
$
2,438.4
|
VERITIV
CORPORATION
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(in millions,
unaudited)
|
|
|
|
|
|
|
|
Year Ended December
31,
|
|
|
2022
|
|
2021
|
Operating
activities
|
|
|
|
|
Net income
(loss)
|
|
$
337.9
|
|
$
144.6
|
Depreciation and
amortization
|
|
45.6
|
|
55.2
|
Amortization and
write-off of deferred financing fees
|
|
1.7
|
|
1.5
|
Net (gains) losses on
disposition of assets and sale of businesses
|
|
(41.1)
|
|
(9.2)
|
Long-lived asset
impairment charges
|
|
—
|
|
0.5
|
Provision for expected
credit losses
|
|
4.0
|
|
4.7
|
Deferred income tax
provision (benefit)
|
|
17.1
|
|
9.2
|
Stock-based
compensation
|
|
9.5
|
|
7.4
|
Other non-cash items,
net
|
|
(6.1)
|
|
9.8
|
Changes in operating
assets and liabilities
|
|
|
|
|
Accounts
receivable
|
|
6.7
|
|
(172.6)
|
Inventories
|
|
(24.2)
|
|
(22.1)
|
Other current
assets
|
|
3.7
|
|
(9.3)
|
Accounts
payable
|
|
(74.4)
|
|
110.0
|
Accrued payroll and
benefits
|
|
(10.8)
|
|
19.9
|
Other accrued
liabilities
|
|
(4.4)
|
|
(1.3)
|
Other
|
|
(12.8)
|
|
6.4
|
Net cash provided by
(used for) operating activities
|
|
252.4
|
|
154.7
|
Investing
activities
|
|
|
|
|
Property and equipment
additions
|
|
(21.9)
|
|
(20.4)
|
Proceeds from asset
sales and sale of businesses, net of cash
transferred
|
|
186.7
|
|
16.1
|
Proceeds from insurance
related to property and equipment
|
|
3.2
|
|
—
|
Net cash provided by
(used for) investing activities
|
|
168.0
|
|
(4.3)
|
Financing
activities
|
|
|
|
|
Change in book
overdrafts
|
|
37.0
|
|
(16.5)
|
Borrowings of long-term
debt
|
|
6,181.3
|
|
5,734.4
|
Repayments of long-term
debt
|
|
(6,392.9)
|
|
(5,814.5)
|
Payments under
right-of-use finance leases
|
|
(11.6)
|
|
(13.8)
|
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
|
|
(30.2)
|
|
(8.5)
|
Dividends paid to
shareholders
|
|
(8.5)
|
|
—
|
Other
|
|
(0.5)
|
|
0.8
|
Net cash provided by
(used for) financing activities
|
|
(428.6)
|
|
(221.4)
|
Effect of exchange
rate changes on cash
|
|
(0.5)
|
|
(0.3)
|
Net change in cash
and cash equivalents
|
|
(8.7)
|
|
(71.3)
|
Cash and cash
equivalents at beginning of period
|
|
49.3
|
|
120.6
|
Cash and cash
equivalents at end of period
|
|
$
40.6
|
|
$
49.3
|
Supplemental cash
flow information
|
|
|
|
|
Cash paid for income
taxes, net of refunds
|
|
$
83.9
|
|
$
40.1
|
Cash paid for
interest
|
|
15.6
|
|
15.0
|
Non-cash investing
and financing activities
|
|
|
|
|
Non-cash additions to
property and equipment for right-of-use
finance leases and vendor-based financing arrangements
|
|
$
21.3
|
|
$
4.1
|
Non-cash additions to
other non-current assets for right-of-use
operating leases
|
|
38.9
|
|
111.6
|
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. Consolidated
EBITDA and ROIC are also used as a basis for certain compensation
programs sponsored by the Company.
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
December
31,
|
|
Year
Ended
December
31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net income
(loss)
|
|
$
71.6
|
|
$
56.9
|
|
$ 337.9
|
|
$
144.6
|
Interest expense,
net
|
|
5.4
|
|
3.8
|
|
17.7
|
|
17.2
|
Income tax expense
(benefit)
|
|
25.9
|
|
20.6
|
|
94.0
|
|
52.9
|
Depreciation and
amortization
|
|
11.0
|
|
13.1
|
|
45.6
|
|
55.2
|
EBITDA
|
|
113.9
|
|
94.4
|
|
495.2
|
|
269.9
|
Restructuring charges,
net
|
|
(3.5)
|
|
3.4
|
|
2.0
|
|
15.4
|
Gain on sale of
businesses
|
|
(1.1)
|
|
—
|
|
(29.7)
|
|
(3.1)
|
Facility closure
charges, including (gain) loss
from asset disposition
|
|
(1.0)
|
|
1.1
|
|
0.0
|
|
0.1
|
Stock-based
compensation
|
|
1.8
|
|
1.7
|
|
9.5
|
|
7.4
|
LIFO reserve (decrease)
increase
|
|
2.0
|
|
12.4
|
|
32.1
|
|
43.6
|
Non-restructuring
severance charges
|
|
2.3
|
|
2.3
|
|
4.3
|
|
7.8
|
Non-restructuring
pension charges (benefits)
|
|
4.9
|
|
0.5
|
|
(2.1)
|
|
0.5
|
Other
|
|
1.5
|
|
0.1
|
|
6.6
|
|
1.0
|
Adjusted
EBITDA
|
|
$ 120.8
|
|
$ 115.9
|
|
$ 517.9
|
|
$
342.6
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
1,663.4
|
|
$
1,864.8
|
|
$
7,146.3
|
|
$
6,850.5
|
Adjusted EBITDA as a %
of net sales
|
|
7.3 %
|
|
6.2 %
|
|
7.2 %
|
|
5.0 %
|
Table
I.a.
|
VERITIV
CORPORATION
|
RECONCILIATION OF
NON-GAAP MEASURES
|
ADJUSTED EBITDA
GUIDANCE
|
(in millions,
unaudited)
|
|
|
|
|
|
|
|
Forecast for Year
Ending December 31, 2023
|
|
|
Low
|
|
High
|
Net income
(loss)
|
|
$
265
|
|
$
305
|
Interest expense,
net
|
|
15
|
|
15
|
Income tax expense
(benefit)
|
|
95
|
|
110
|
Depreciation and
amortization
|
|
40
|
|
40
|
Other reconciling
items
|
|
15
|
|
20
|
Adjusted
EBITDA
|
|
$
430
|
|
$
490
|
Table
II
|
VERITIV
CORPORATION
|
RECONCILIATION OF
NON-GAAP MEASURES
|
FREE CASH
FLOW
|
(in millions,
unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
December 31, 2022
|
|
Year Ended
December
31, 2022
|
Net cash provided by
(used for) operating activities
|
|
$
93.5
|
|
$
252.4
|
Less: Capital
expenditures
|
|
(3.8)
|
|
(21.9)
|
Free cash
flow
|
|
$
89.7
|
|
$
230.5
|
Table
II.a
|
VERITIV
CORPORATION
|
RECONCILIATION OF
NON-GAAP MEASURES
|
FREE CASH FLOW
GUIDANCE
|
(in millions,
unaudited)
|
|
|
|
|
|
Forecast for Year
Ending December 31, 2023
|
Net cash provided by
(used for) operating activities
|
|
approximately
$305
|
Less: Capital
expenditures
|
|
approximately
($30)
|
Free cash
flow
|
|
approximately
$275
|
Table
III
|
VERITIV
CORPORATION
|
RECONCILIATION OF
NON-GAAP MEASURES
|
NET DEBT TO ADJUSTED
EBITDA
|
(in millions,
unaudited)
|
|
|
|
December 31,
2022
|
Amount drawn on ABL
Facility
|
$
229.2
|
Less: Cash and cash
equivalents
|
(40.6)
|
Net debt
|
$
188.6
|
|
|
Last Twelve Months
Adjusted EBITDA
|
$
517.9
|
|
|
Net debt to Adjusted
EBITDA
|
0.4x
|
|
|
|
Last Twelve
Months
|
|
December 31,
2022
|
Net income
(loss)
|
$
337.9
|
Interest expense,
net
|
17.7
|
Income tax expense
(benefit)
|
94.0
|
Depreciation and
amortization
|
45.6
|
EBITDA
|
495.2
|
Restructuring charges,
net
|
2.0
|
Gain on sale of
businesses
|
(29.7)
|
Facility closure
charges, including (gain) loss from asset disposition
|
0.0
|
Stock-based
compensation
|
9.5
|
LIFO reserve (decrease)
increase
|
32.1
|
Non-restructuring
severance charges
|
4.3
|
Non-restructuring
pension charges (benefits)
|
(2.1)
|
Other
|
6.6
|
Adjusted
EBITDA
|
$
517.9
|
Table
IV
|
VERITIV
CORPORATION
|
RECONCILIATION OF
NON-GAAP MEASURES
|
REPORTED NET SALES
TO ORGANIC SALES
|
(in millions,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Reported net
sales
|
|
$ 1,663.4
|
|
$ 1,864.8
|
|
$ 7,146.3
|
|
$ 6,850.5
|
Impact of change in
selling days (1)
|
|
—
|
|
—
|
|
—
|
|
—
|
Net sales (on an
average daily sales basis)
|
|
1,663.4
|
|
1,864.8
|
|
7,146.3
|
|
6,850.5
|
Business divestitures
(2)
|
|
—
|
|
(230.0)
|
|
(338.2)
|
|
(850.8)
|
Organic
sales
|
|
$
1,663.4
|
|
$
1,634.8
|
|
$
6,808.1
|
|
$
5,999.7
|
|
|
|
|
|
|
|
|
|
Business
Days
|
|
61
|
|
61
|
|
252
|
|
252
|
(1)
Adjustment for differences in the number of selling days, if
any.
|
(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