MIAMISBURG, Ohio, Aug. 6, 2020 -- Verso Corporation (NYSE: VRS) today reported financial results for the second quarter of 2020 and announced that it will pay a special cash dividend of $3.00 per share of common stock and a quarterly cash dividend of $0.10 per share of common stock, each to be paid on September 28, 2020.
Second Quarter 2020 Highlights:
- Net sales of $268 million, down $334 million compared to second quarter 2019
- Net loss of $(34) million or $(0.99) per diluted share, compared to net loss of $(112) million or $(3.23) per diluted share in second quarter 2019
- Adjusted EBITDA of $(9) million, compared to $44 million in second quarter 2019
"As expected, the second quarter was extremely challenging for Verso. The rapidly-evolving COVID-19 pandemic continues to force many of our end use customer segments to significantly reduce their print advertising, therefore decreasing demand for our graphic papers, and impacting our financial performance," said Verso President and Chief Executive Officer Adam St. John. "During these uncertain and unprecedented times, the safety and health of our essential employees remain our top concern as we take decisive, proactive actions to respond to the economic environment and adverse market conditions. Strategically, the decision to idle our Duluth and Wisconsin Rapids mills allows us to streamline our business and build a stronger, more flexible operating model and product strategy around our remaining two high performing mills. We believe this strategy, together with our cost reduction efforts, including managing SG&A under 5% of revenues and controlling capital spending, will create a cash generating platform and long-term value for all of our stakeholders. As we navigate this ever changing environment, we remain steadfast in positioning our business for long-term stockholder value, including returning considerable capital to our stockholders through means such as cash dividends and share repurchases. With this additional special cash dividend, we have ramped up delivery on our commitment to return to our stockholders a substantial portion of the net cash proceeds from the sale of our Androscoggin and Stevens Point mills."
The special cash dividend of $3.00 per share will return approximately $100 million of the net cash proceeds from the sale of Verso's Androscoggin and Stevens Point mills to Verso's stockholders. Verso has made a corresponding reduction of its previously announced authorization to repurchase shares of Verso's outstanding common stock, from $250 million to $150 million, leaving approximately $127 million authorized for the repurchase of shares after giving effect to prior repurchases.