Verso Q2 Sales Beats Estimates, Declares Dividend

Verso Corp VRS reported second-quarter FY21 sales growth of 23% year-on-year, to $329 million, beating the analyst consensus of $287.22 million.
The revenue increase was driven by increases in volume and favorable prices as the economy began to open.
Verso incurred Inflationary costs of $5 million driven by purchased pulp, energy, and freight.
The operating margin was 3.34%, and operating income for the quarter was $11 million versus $(42) million a year ago.
The company held $119 million in cash and equivalents as of June 30, 2021.
Adjusted EBITDA was $52 million versus $(9) million last year, and the adjusted EBITDA margin was 15.8%.
Verso recorded a net income of $16 million in the quarter versus a loss of $(34) million last year.
"Continued capacity reduction in the industry, combined with heightened demand as the economy reopens, is driving growth in order rates and backlogs as well as price increases across our product lines," said CEO Randy Nebel.
The company's quarterly cash dividend of $0.10 per Class A common stock is payable on September 28, 2021, to stockholders of record on September 17, 2021.
On July 14, 2021, Verso confirmed receiving a non-binding proposal from Atlas Holdings LLC at $20 per share in cash.
Price action: VRS shares traded higher by 0.56% at $19.75 on the last check Friday.