This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Verso Paper Corp. Reports Third Quarter 2012 Results

Stocks in this article: VRS

 
  Nine     Three   Nine   Twelve
Months Year Months Months Months
Ended Ended Ended Ended Ended
September 30, December 31, September 30, September 30, September 30,
(Dollars in millions)   2011   2011   2012   2012   2012
Net loss $ (69.2 ) $ (137.1 ) $ (104.7 ) $ (199.3 ) $ (267.2 )
Income tax expense 0.1 0.2 - (0.1 ) -
Interest expense, net 94.7 126.5 33.2 98.6 130.4

Depreciation, amortization, and depletion

    94.2       125.3       28.1       91.3       122.4  
EBITDA 119.8 114.9 (43.4 ) (9.5 ) (14.4 )
Adjustments to EBITDA:

Loss (gain) on early extinguishment of debt, net (1)

26.1 26.1 - 8.2 8.2
Goodwill impairment (2) - 18.7 - - 18.7
Restructuring and other charges (3) - 24.5 97.0 97.0 121.5
Hedge losses (gains) (4) - 7.5 (3.7 ) (3.6 ) 3.9
Equity award expense (5) 1.8 2.4 0.7 2.3 2.9
Other items, net (6)     7.1       8.4       (0.4 )     4.6       5.9  

Adjusted EBITDA before pro forma effects of profitability program

154.8 202.5 50.2 99.0 146.7

Pro forma effects of profitability program (7)

        31.3  
Adjusted EBITDA       $ 178.0  

(1) Represents net loss related to debt refinancing.

(2) Represents impairment of goodwill allocated to the coated paper segment.

(3) Represents costs associated with the shutdown of three paper machines in 2011 and the closure of the Sartell mill in 2012.

(4) Represents unrealized losses (gains) on energy-related derivative contracts.

(5) Represents amortization of non-cash incentive compensation.

(6) Represents miscellaneous non-cash and other earnings adjustments.

(7) Represents cost savings expected to be realized as part of our cost savings program.

 

Forward-Looking Statements

In this press release, all statements that are not purely historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by the words “believe,” “expect,” “anticipate,” “project,” “plan,” “estimate,” “intend,” and similar expressions. Forward-looking statements are based on currently available business, economic, financial, and other information and reflect management’s current beliefs, expectations, and views with respect to future developments and their potential effects on Verso. Actual results could vary materially depending on risks and uncertainties that may affect Verso and its business. For a discussion of such risks and uncertainties, please refer to Verso’s filings with the Securities and Exchange Commission. Verso assumes no obligation to update any forward-looking statement made in this press release to reflect subsequent events or circumstances or actual outcomes.

7 of 8

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs