Veritiv Reports Q3 Adjusted EBITDA Increase of 17.7 Percent; Net Sales Decrease of 7.1 Percent

ATLANTA—November 13, 2015—Veritiv Corp. (NYSE: VRTV), a North American leader in business-to-business distribution solutions, has announced financial results for the third fiscal quarter ended Sept. 30, 2015.

“We are pleased with our third quarter performance and the resulting 18 percent increase in Adjusted EBITDA, both of which reflect our ongoing focus on the integration and our commitment to deliver value to customers and shareholders. Although our top-line continues to be impacted by challenging economic conditions, currency headwinds, and management decisions around markets, customers and products, we maintained our steady execution and achieved $61 million in Adjusted EBITDA. As a result, we are well ahead of where we were last year and remain on track to deliver on our full year commitments,” said Mary Laschinger, chairman and CEO of Veritiv Corp.

For the three months ended Sept. 30, 2015, compared to the three months ended Sept. 30, 2014:

• Net sales were $2.2 billion, a decrease of 7.1 percent from the prior year.
• Adjusted EBITDA was $60.6 million, an increase of 17.7 percent from the prior year.
• Adjusted EBITDA as a percentage of net sales was 2.7 percent, an increase of 58 basis points from the prior year.

For the nine months ended Sept. 30, 2015, compared to the nine months ended Sept. 30, 2014 (on a pro forma basis):

• Net sales were $6.5 billion, a decrease of 6.0 percent from the prior year.
• Adjusted EBITDA was $129.7 million, an increase of 14.5 percent from the prior year.
• Adjusted EBITDA as a percentage of net sales was 2.0 percent, an increase of 36 basis points from the prior year.

Net income, as reported for the three months ended Sept. 30, 2015, was $14.5 million, which includes $11.3 million of integration expenses and restructuring charges. Net income, as reported for the nine months ended Sept. 30, 2015, was $16.6 million, which includes $37.2 million of integration expenses and restructuring charges.

In the third quarter of 2015, net sales per shipping day decreased 7.1 percent from the prior year. Year-to-date net sales per shipping day decreased 5.5 percent from the prior year. The nine months ended Sept. 30, 2015 had one less shipping day compared to the same period in the prior year.

“Our continued company-wide focus on synergy capture and efficiency improvements resulted in sound financial results in the third quarter,” said Stephen Smith, senior vice president and chief financial officer of Veritiv Corp. “We expect to sustain this momentum into the fourth quarter through strong program management of our integration, and are reaffirming our expectation to reach the middle to higher end of our range for Adjusted EBITDA of $165 to $175 million for the full year 2015.”

About Veritiv Corp.
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's xpedx division and Unisource Worldwide, the Company employs approximately 8,900 team members across about 180 distribution centers throughout the United States, Mexico and Canada.

Source: Veritiv Corp.