Catalyst Paper today announced the appointment of Sean Krajnik as Vice President & General Manager of the Biron mill, effective January 2, 2018. Mr. Krajnik brings extensive experience in the pulp and paper industry to his new role. He has spent more than 20 years in the coated specialty papers segment working in progressively senior roles, including product development, quality management, technical services, and production and mill management. Most recently, Mr. Krajnik was the mill manager of a major Las Vegas-based tissue, paper and converting facility. Click Read More below for additional information.
Verso Corporation (NYSE: VRS) today reported financial results for the third quarter of 2021 and announced that its Board of Directors has declared a quarterly cash dividend for the quarter ending December 31, 2021, in the amount of $0.10 per each outstanding share of Verso’s Class A common stock. The quarterly cash dividend is payable on December 29, 2021 to Verso’s stockholders of record holding shares of common stock at the close of business December 17, 2021.
Third Quarter 2021 Highlights:
• Net sales of $339 million, an 11% increase over third quarter 2020 and a 3% increase over second quarter 2021
• Net income of $58 million compared to a net loss of $31 million in third quarter 2020 and net income of $16 million in second quarter 2021
• Adjusted EBITDA of $67 million compared to $12 million in third quarter 2020 and $52 million in second quarter 2021
• Adjusted EBITDA margin of 19.8% compared to a 3.9% margin in third quarter 2020 and a 15.8% margin in second quarter 2021
• $286 million in available liquidity including $166 million in cash
• Returned $14 million in capital to shareholders in repurchases and quarterly dividends
“This was a strong quarter for Verso in which our people drove robust cash flow, reflecting steadfast execution and positive macro trends, including price increases, for our business. Over the past few years, Verso has streamlined our operations and reduced costs while strategically investing in projects to enhance our ability to support our customers. Additionally, strong demand with reduced industry capacity has led to healthy order rates across our product lines,” said Verso President and Chief Executive Officer Randy Nebel. “Verso maintains a strong, debt-free balance sheet, which provides a solid foundation for generating long-term value for shareholders.”
Net sales for the three months ended September 30, 2021 increased $33 million, or 11%, compared to the three months ended September 30, 2020, driven by favorable price/mix of $47 million, partially offset by $14 million, or 5%, largely attributable to our sold Duluth and idled Wisconsin Rapids mills. Total company sales volume was down from 382 thousand tons during the three months ended September 30, 2020, to 358 thousand tons during the same period of the current year, primarily attributable to our sold Duluth and idled Wisconsin Rapids mills.
Operating income (loss)
Operating income was $35 million for the three months ended September 30, 2021, an increase of $79 million when compared to an operating loss of $44 million for the three months ended September 30, 2020.
Operating results for the three months ended September 30, 2021 were positively impacted by:
• Favorable price/mix of $47 million driven by price increase realization across all grades, including pulp
• Improved operating income of $11 million resulting from the conversion to our current two mill system
• Lower depreciation expense of $3 million
• Lower net operating expenses of $29 million driven primarily by $22 million lower closed/idled mill spend, lower wood costs, improved performance and cost reduction initiatives across our mill system
• Higher other operating income of $10 million, driven primarily by $6 million in insurance recoveries during the third quarter of 2021 associated with a 2019 insurance claim at our Quinnesec Mill and $3 million loss on sale or disposal of assets in 2020
Operating results for the three months ended September 30, 2021 were negatively impacted by:
• Inflationary cost increases of $19 million driven by purchased pulp, latex, energy and freight
• Favorable restructuring charge adjustments of $2 million in the third quarter of 2020 for activities associated with the closure of our Luke Mill in 2019
further detail at: https://investor.versoco.com/2021-11-05-Verso-Corporation-Reports-Third-Quarter-2021-Financial-Results-and-Declares-Quarterly-Cash-Dividend-of-0-10-per-Share