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Verso Paper Corp. Reports Third Quarter 2012 Results

 
  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.

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