Verso Paper Corp. (NYSE: VRS) today reported financial results for the fourth quarter and year ended December 31, 2011. Results for the years ended December 31, 2011 and 2010 include:
- Net sales increased 7.3% to $1,722.5 million in 2011 from $1,605.3 million in 2010.
- Operating income before items of $72.5 million in 2011 compared to $1.2 million in 2010.
- Net loss before items of $54.3 million in 2011, or $1.02 per diluted share, compared to a net loss before items of $126.4 million, or $2.41 per diluted share in 2010.
- Adjusted EBITDA before pro forma effects of profitability program of $202.5 million for 2011 compared to $132.1 million in 2010. (Note: EBITDA and Adjusted EBITDA are non-GAAP financial measures and are defined and reconciled to net income later in this release).
Verso’s net sales for the fourth quarter of 2011 increased $42.6 million, or 10.4%, compared to the fourth quarter of 2010, reflecting a 6.2% increase in sales volume and a 4.0% increase in the average sales price for all of our products.
During the fourth quarter of 2011, Verso recorded special items totaling $51.5 million, or $0.98 per diluted share, primarily related to restructuring costs associated with the shutdown of three paper machines, goodwill impairment, and the negative impact of de-designating certain hedges. During the fourth quarter of 2010, special items of $1.0 million, or $0.02 per diluted share, were primarily related to new product development. In the fourth quarter of 2011, Verso reported a net loss of $67.9 million, or $1.29 per diluted share, and an operating loss of $36.0 million including special items. Verso reported a net loss of $14.0 million, or $0.27 per diluted share, and operating income of $17.4 million including special items in the fourth quarter of 2010.