Verso Corporation Reports Fourth Quarter and Full Year 2020 Financial Results

Fourth Quarter 2020 Highlights:
• Net sales of $314 million, up 3 percent versus the third quarter of 2020
• Net loss of $90 million, compared to net loss of $31 million in the third quarter of 2020
• Adjusted EBITDA of $9 million, compared to Adjusted EBITDA of $12 million in the third quarter of 2020

Net sales for the three months ended December 31, 2020 declined by $273 million or 47% compared to the three months ended December 31, 2019 as a result of significant declines in sales volume and unfavorable price/mix. Of the $273 million, or 47% net sales decline, $138 million, or 24%, was a result of the sale of our Androscoggin and Stevens Point mills in February 2020 and $77 million, or 13%, was attributable to the indefinite idling of our Duluth and Wisconsin Rapids mills in July 2020. Total company sales volume was down from 657 thousand tons during the three months ended December 31, 2019, to 392 thousand tons during the three months ended December 31, 2020. Of the 265 thousand ton volume decline, 140 thousand tons were a result of the sale of our Androscoggin and Stevens Point mills in February 2020, 91 thousand tons were attributable to the indefinite idling of our Duluth and Wisconsin Rapids mills in July 2020, and the additional decline resulted from lower customer demand driven by the COVID-19 pandemic.

Operating loss was $118 million for the three months ended December 31, 2020, a decrease of $128 million when compared to operating income of $10 million for the three months ended December 31, 2019.

Net sales for the twelve months ended December 31, 2020 declined by $1,085 million or 44% compared to the twelve months ended December 31, 2019 as a result of significant declines in sales volume and unfavorable price/mix. Of the $1,085 million, or 44% net sales decline, $186 million, or 8%, was attributable to the closure of our Luke Mill in June 2019, $489 million, or 20%, was a result of the sale of our Androscoggin and Stevens Point mills in February 2020, and $146 million, or 6%, was attributable to the indefinite idling of our Duluth and Wisconsin Rapids mills in July 2020. Total company sales volume was down from 2,647 thousand tons during the twelve months ended December 31, 2019, to 1,674 thousand tons during the twelve months ended December 31, 2020. Of the 973 thousand ton volume decline, 185 thousand tons were attributable to the closure of our Luke Mill in June 2019, 479 thousand tons were a result of the sale of our Androscoggin and Stevens Point mills in February 2020, 170 thousand tons were attributable to the indefinite idling of our Duluth and Wisconsin Rapids mills in July 2020, and the additional decline resulted from lower customer demand driven by the COVID-19 pandemic.

Operating loss was $128 million for the twelve months ended December 31, 2020, a decrease of $91 million when compared to operating loss of $37 million for the twelve months ended December 31, 2019.
details at: http://investor.versoco.com/2021-02-25-Verso-Corporation-Reports-Fourth-Quarter-and-Full-Year-2020-Financial-Results

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