Verso's Q4 Revenue Tops Estimate

Verso Corp VRS reported fourth-quarter FY21 sales growth of 4% year-on-year, to $328 million, beating the consensus of $298.4 million.
Total company sales volume decreased from 392 thousand tons during Q4 FY20 to 341 thousand tons in Q4 FY21, primarily attributable to sold Duluth and idled Wisconsin Rapids mills.
Verso incurred inflationary costs of $20 million driven by purchased pulp, latex, energy, and freight.
The operating margin was 10.4%, and operating income for the quarter was $34 million versus $(118) million a year ago.
Adjusted EBITDA was $74 million versus $9 million last year.
Verso recorded a net income of $13 million in the quarter versus a loss of $(90) million last year.
On December 19, 2021, Verso announced that it entered a merger agreement to be acquired by BillerudKorsnäs AB for $27.00 per share in cash.
Price Action: VRS shares traded lower by 0.06% at $26.59 on the last check Monday.