Verso Corporation Q3 Results Impacted by Idled Wisconsin Paper Mills

SEATTLE (Scrap Monster): Verso Corporation reported third quarter 2020 financial results. The quarterly results were badly impacted by the idled paper mills in Wisconsin Rapids and Duluth, Minnesota.

The company reported net loss of $31 million or $0.92 per diluted share during the quarter. This compares to net income of $30 million or $0.85 per diluted share in the corresponding quarter a year before. The adjusted EBITDA totalled $12 million, as against a loss of $9 million during the sequential quarter.

The net sales declined by more than half to $306 million over the prior year quarter. Of that amount, $36 million was attributable to the closure of Luke Mill, $145 million was a result of sale of its Androscoggin and Stevens Point mills and $70 million is attributable to the indefinite idling of its Duluth and Wisconsin Rapids mills.

ALSO READ: Verso Has No Plans in Place Yet for Duluth Paper Mill

The company reported operating loss of $44 million in Q3 this year. The operating loss was $10 million for the first nine months of the year.

Verso’s Board of Directors declared a quarterly cash dividend, in the amount of $0.10 per each outstanding share of Verso's Class A common stock, which will be payable on December 29, 2020.

Randy Nebel , Interim President and Chief Executive Officer stated that the company is encouraged to see slight uptick in coated paper demand and operating rates during the quarter.