Verso Paper ends Q1 with $56 million cash, total debt of $1.3 billion

By Lisa Kerner

Charlotte, N.C., May 9 - Verso Paper Corp. had total liquidity of $216 million at the end of the first quarter, including cash of $56 million. This compares to $159 million for the prior-year period and $204 million at the end of 2012, according to the company's first-quarter 2013 earnings presentation.

Net Holdco debt at March 31 was about $1.3 billion.

President and chief financial officer Dave Patterson said following its successful exchange offer, the company has no significant debt maturities until 2016, with the balance of maturities due at 2019.

Patterson said pricing was flat sequentially and year over year during Verso's earnings conference call on Thursday.

The company was also impacted by the delivered cost of natural gas to its two facilities in Maine, according to Patterson.

Financial highlights

Verso reported a first-quarter operating loss of $1.1 million, compared to an operating loss of $12.3 million in the first quarter of 2012.

The company had a net loss of $38.4 million or $0.72 per diluted share, compared to net loss of $73.9 million, or $1.40 per diluted share, in the prior-year period.

First-quarter 2013 EBITDA was $22.3 million, compared to a negative $10.5 million in the first quarter of 2012.

Net sales for the first quarter were down 11.2% at $333.2 million.

Net sales for the coated papers segment decreased 17.4% to $250.5 million, while net sales for the market pulp segment increased 13.3% to $37.2 million.

Verso's net sales from its other segment increased 16.0% to $45.5 million.

Selling, general, and administrative expenses were flat at $18.8 million.

Verso is a Memphis-based producer of coated papers.

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