Shares of Veritiv (VRTV 6.64%) got crushed today, down by 22% as of 2 p.m. EDT, after the company reported first-quarter earnings.
Revenue in the first quarter totaled $2 billion, which translated into a net loss of $2.2 million, or $0.14 per share. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell 15% to $29.8 million, for an adjusted EBITDA margin of 1.5%. The business-to-business distributor said it incurred $10.5 million in integration and restructuring charges during the quarter.
In a statement, CEO Mary Laschinger acknowledged that "results were mixed." Sales stabilized thanks to strong performance in the company's packaging segment, but adjusted EBITDA took a meaningful hit as Veritiv invested in the business. The company's print and publishing business continues to suffer due to industrywide challenges, but Laschinger is optimistic that the packaging and facility solutions segment will help offset that weakness. Meanwhile, the company's integration is on track as it focuses on consolidating its distribution center footprint and invests in improving its IT infrastructure.