Earnings call transcript Q1 2023

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Operator

Good morning, and welcome to Veritiv Corporation's First Quarter 2023 Financial Results Conference Call.

As a reminder, today's call is being recorded.

We will begin with the opening remarks and introductions.

At this time. I would like to turn the call over to Scott Palfreeman, Vice-President of Finance and Investor Relations.

Scott Palfreeman

you. Thank morning, good, everyone. and Colby am today's Sal by CEO, on and I our call Abbate CFO, our joined Eric Guerin. After update on followed will share quarter financials. on Sal will performance, details who by my business Eric, more our our remarks, first provide an Sal on initiatives. an update with will conclude our

will We questions. open call the then your for

could regarding material future note expectations and/or beliefs, please begin, the are we intentions, Actual some of a statements of the the differ made Before that in manner. forward-looking. results today's in presentation predictions

on in information cause includes the SEC. to SEC and Additional and factors that factors results XX-K company's forward-looking This Form other the differ could reports the exhibits in other described filed statements from XXXX available in the filings. the with those risks and is our contained company's publicly

presentation in Investor slides GAAP comparable to contain presentation slides also will non-GAAP measures, and at end-of-the non-GAAP of U.S. these of the the the call can Today's Relations found and section reconciliation our measures website. measures included are financial be

time. this call over turn I the to Sal. will At

Salvatore Abbate

joining and Thank for thank you everyone, and Scott, good morning, you, us.

Xnd. I'd to First, Eric in March January Eric joined and like officially Guerin. on CFO this earlier became Veritiv introduce year

a We him the are strategic on thrilled Eric. thought team to Welcome, as partner. have

first financial morning, we This published our quarter results XXXX.

difficult our of demonstrate resiliency benefits of the strategy. first experienced quarter, segments I that about the there multiyear market continued the we conditions in that our While speak are several will highlights ongoing and business

EBITDA as within our solution We segments. facility margin the well first as packaging achieved for record quarter company adjusted and overall,

earnings. process working flow cash driven improvement We our also achieved free quarter efforts robust and strong capital first by

difficult helped and commercial These bottom performance results initiatives our line environments. excellence demonstrate deliver macroeconomic how strong operational multi-year in

destocking, our levels. historical While EBITDA business significantly margins suffered and above adjusted pre-pandemic industry-wide it generated EBITDA from adjusted print

Print within Moving the first during basis of largely de-stocking Solutions declined organic our the by driven consolidated the effects a quarter for to on segment. performance the Total revenue quarter. X% year-over-year on

First million of the primarily declined of first a margin The $XXX of of reflecting the prior compared Canada a points. X%, X. sale EBITDA last our EBITDA year, year. over basis increase XX% XX to year was adjusted record quarter quarter adjusted business to due year resulting

was quarter Despite Net working for $X one a The contraction, prior the the disciplined due representing income quarter of X% the of and per prior a and in the earnings business free a tax significant of was $XX our represents year-over-year net million cash the benefit the income share to flow decline $XX of Canada to XXXX. in performance time diluted management only capital the sale compared and of decline over reflects first for quarter, of improvement drove solid earnings year. combination which first year. XX% million

that commercial our years, improvements conditions. foundational several past has the sustainable Over centered without impacted strategy are being significantly on market by

made divesting products. we decisions example, actions our margin optimize to all through tough geographies and certain For low channels, segments including

freight year, margin Canada included our Last strategically brokerage business. our business which exited we businesses, low and

continued Additionally, performance during our to and quarter. first pricing benefit strategy discipline the

our of positively adjusted performance. all margin segments, EBITDA across impacted management pricing which centralized established We has our

delivered we EBITDA challenges adjusted and packaging market. softer industry As a record result, the in first margin print despite significant a quarter

our our volume commercial quarter impacted the during negatively result and Packaging's resilient performance Industry-wide quarter. a was the direct destocking demand first of strategies. softening in go-to-market first

despite decreased the market and the prior year, only impact unfavorable sale. compared EBITDA both adjusted packaging from the Canada conditions X% However, to

customer best-in-class Our cost leading suppliers industry diversified and to vertical drive aligned and are mix value. with product

heavy Strength logistics in verticals industry manufacturing our healthcare the electronics verticals. partially offset soft demand and and consumer within industry

enhance and repeatable sustainable relationships. and and the testing, customer more solutions continue of design, including profile differentiators create the profitable added value margin kitting to Our automation, business

Through strategy. our additional share of needs an capturing near our important Mexico, we and operations customers needs our overseas of Additionally, geographic meeting their by to the storing risk evolving continues supporting in wallet. customers reduce continue be to

ahead, quarter. As we second look soft market expect we packaging in demand to remain the

inventory have run of destocking their largely However, course. we believe effects the customer

commercial on healthcare attracting focus recently strategic decreases We announced including such sourcing demand. chain customer initiatives, of strategy, cold offset alongside our and containerboard effects weakened believe and our as the price will markets

our As segment and full strategy. Facility a multiyear margins adjusted has expect beneficiary relative both EBITDA been The EBITDA improve to result, a we Solutions XXXX. packaging, continue to year adjusted significant to of commercial

greatly our profitability of of strategic both the this exits improved business through businesses. and have We redistribution the Canada

portfolio of needs XX% product We and Our against focused supply comparing the compared supporting results, complex despite Solutions quarter coupled contributed customer year's Canada. adjusted EBITDA our margin achieved expertise last first adjusted prior which in to record with include chain broad to Facility efforts on growth EBITDA year.

mentioned. supported demonstrates The business Solutions complementary created mix have of strength our Facility a we the was our performance balanced by portfolio. This and previously as I industry of the a components and of vertical business product healthier shedding the margin and diversified value low result

quarter strong for to Facility outlook performance on we as favorable Our execute Solutions our continue first and commercial build remains our strategy.

Solutions EBITDA margin to We to relative EBITDA year full continue and to improve adjusted expect XXXX. adjusted Facility

Print to the dynamics Moving affect negatively continued the Market-wide segment. industry. to Solutions

in a which X.X% performance to margin pre-XXXX remains However, our multiyear of well adjusted first levels. transformation above Print efforts strong our segment, quarter contributed Solutions EBITDA

product and model. made we and high chain our network, build supplier years, strategic serve high and our supply several to consolidate decisions cost past products, flexible to exit certain base, customers rationalize cost the a Over risk

All supported of these the adjusted EBITDA resilient profile of business. have margin the efforts

the market Looking could we into third across the ahead, now expect print quarter. destocking continue

be could low. pricing remains believe year demand also and the subsides challenged if of destocking half second in the We

believe term in the the place for we strategic have drive earnings and macroeconomic year. the balance playbook outlook performance resources uncertain, While near remains we to of strong the

detail the to and well XXXX. more financial segment over our sheet will call now as to Eric turn level for the performance, I provide balance as guidance on Eric?

Eric Guerin

look an is growth here. forward accelerate our outstanding leveraging Veritiv help be opportunities in position to company to to my background I honored with value I'm for the market. future creation. significant Sal. Thanks, and

our will our leverage, speak flow, capital referring are I we quarter organic provide allocation results on on business and XXXX. to our results, business, we Logistics Canada updates to of cash Veritiv segment's impact note sale the Solutions. and freight excluding and guidance of when Today, Please reported more for that details the first performance our logistics

previous a our same had the number basis a quarter. As the at business end that next count, April of the lap will day reminder, the I sale days selling fully year, would so we On of the of sold we the Canada XXXX last effects note quarter first year. of as

Packaging $XXX.X million, decline basis. year-over-year Revenue was representing a on of XX.X% the Starting segment. with reported

an revenue on decreased basis, While organic only X.X%.

and across was industry first economic of performance all of volume uncertainty verticals effects continued quarter. as the the throughout Packaging customer our destocking challenged

mid Volume volume within aggregate, greatest the declined In in manufacturing in year-over-year quarter. electronics. digit declines our the industry light vertical, were consumer first domestic driven range in partially weakness single by

While growth verticals volumes the positive wholesale several year-over-year heavy for quarter, price industry to revenue healthcare. manufacturing, were depressed during resiliency the and including in quarter, and led retail

From Corrugated was decline offset volume than declined of a and better corrugated remained versus X.X%. pricing decline. which prior the year, X% the most product strong of the market volume perspective, our

business just a EBITDA adjusted to of X.X% was $X in quarter the adjusted basis. on This When decline million compared reported a year. improved first XXXX, $XX.X represents the year-over-year the for sale Packaging's adjusted EBITDA million. prior Canada of

first drove EBITDA XXX our points commercial to XX.X%, Continued strategy execution year. the margin of an reflecting adjusted our basis improvement of compared quarter record prior of

year-over-year to decline represents million Moving segment. a Revenue Solutions of reported Facility the XX.X%. of $XXX.X

quarter strengthen away X.X%, increased revenue the basis, hospitality organic volume with and mid entertainment as from the an first on during teens. While categories in such growth home continued

saw benefit more business to from believe return office services. ongoing We well-positioned to positive verticals to like volume office. shift employees from the also We is growth in this as goods

Adjusted adjusted the XX.X% the million. prior quarter compared to year, margin EBITDA the first a EBITDA to increased record Canada of was of $XX.X resulting business, Despite X.X%. divestiture the

Moving to Solutions the segment. Print

First excess mid-XX% in XX.X% led range during the We continued while to year, to weak customer resulting reported prior believe first their inventory. year, work to prior revenue to revenue as quarter quarter customers through volume stocking XX.X%. declines declined compared the compared continue demand in the declined organic the

weakness. first resiliency offsetting Price continued partially volume in quarter, the

adjusted $XX.X remains well representing was First decline this margin XX quarter represents adjusted pre-XXXX. EBITDA basis million, a of its EBITDA for margin quarter X.X%While point EBITDA first a adjusted the XX.X%, decline above year-over-year year, compared was prior to

operations Shifting to drove of strong from capital from results of million. $XX.X our quarter The the segment level consolidated cash combination working free earnings flow strong cash first disciplined flow. management and

low X.X quarter. million of capital healthy for million to cash After free contributed flow adjusted the EBITDA Strong net earnings subtracting leverage expenditures, $XX debt to times. flow of was cash $X.X and record ratio free

leverage the opportunities, to during quarterly allocation first We of in allocation perspective, ratio, an dividend. returned we our pipeline a simultaneously. to multiple believe provide active company million capital $X.X optionality along the inorganic approximately of shareholders to favorable act priorities strategic with capital on with form a quarter the From

return well XX XXXX point represents balance the as XX, improvement ROIC months XX This as to nearly improved our a now Because initiatives, improvement since March capital. on our Moving efficiency of XXXX. percentage sustained and invested was for earnings sheet, ending XX.X%.

and of our to macroeconomic adjusted the performance in income net to year. reaffirming $XXX to full are execution the uncertainty, to-date of slowing and we $XXX continue given for initiatives, we million market $XXX EBITDA $XXX in strategic million million, guidance Finally, demand continued million. and the range our Despite range of expect to be

range maintaining diluted $XX.X million $XX, be share based shares earnings fully the to of diluted per in outstanding. on We to are $XX

flow cash free unchanged. million $XXX Our of expectations approximately remains

turn on to now Sal I the to initiatives. back update provide Sal? will call an our

Salvatore Abbate

Eric. you, Thank

environment support we As line of EBITDA generate work destocking, will not execute but through effects strategic we will growth, accelerate adjusted the inventory margin also our industry stability. several challenging initiatives to continue top macro to only position that the and market the the in customer continues believe and

as next initiatives sourcing continues The strategic our of to progress planned. wave

quality with partnering price of and provide to packaging of our strategic products. solutions combination the facility spectrum across full are suppliers and We best

and our in result efforts contribute our These margin for further better value overall should sustainability. to customers

make and We technology on progress front end initiatives. continue to our back

to to customer expected experience and contribute are line top revenue investments improve These growth. the

we needs to generation Additionally, supply invest meet next in continue chain evolving our our of to the customers.

report. of to the call, mention the question-and-answer want last XXXX published that our move we we portion Responsibility to I week, Corporate Social Before

journey. made We sustainability progress our are on pleased the with continued

participating of lead sustainability not to customer's attributes. We products value-added are solutions industry we and intend expanded just with organization, goals an our our through in by As supporting sustainable sustainability. portfolio

the updates we detail within emissions well Key many reduced X from we Scope our targeted Scope of our and are year progressing and There our X highlights which are from goal XX% last against proudly report. reduction baseline. that combined XXXX include

and in workplace. positive equitable continue invest a to We

points higher conducted of engagement the overall XX Last surveyed. year, of in a benchmark XX which industry employee five benchmark we than the score than an all and received was higher out XXX, and categories survey

We also to way to shared launched experiences a connect grow through employee and employees learn and to opportunities provide Allyship. resource groups background and over

extremely am recently say because Fortune many these to recognized proud in Magazine's companies most XXXX. I were efforts of admired of one as we that others, and

the ESG Responsibility first our included report. we scorecard Additionally, in Corporate Social

The on our website multiple performance the work scorecard I our on targets against the call across to sustainability everyone section. ESG our available key encourage read measures streams. report

footprint more meet learn and our our work, we about customers doing employees carbon to goals. work sustainability can their where support and we the communities live the You are and our great reduce help

delight go to above for your employees work. supporting to approximately dedication our customers. their and Every day, our want for to customers. I our thank passion employees Thank you beyond all hard XXXX and our Finally,

our We remarks. open can for call the questions. prepared now this Colby, concludes

Operator

comes question first from Your Staphos of of Bank George from the line America.

is open. line Your

George Staphos

me Can morning. you hear Good everyone. okay? Hi,

Salvatore Abbate

We can. Good morning, George.

George Staphos

details. quarter. or print third quarter on that now And a we the are second expect guess, the by is out? able want being I you be thing ultimately one We you're quarter, side, you to first How lot question for of companies saying I Thanks done destocking detail. quarter say with third Where the appreciate hear to our the that destocking. figure start doing? of they or to

what's difficult sell know through inventory. to decline the you relative the will, destocking. it's in to is parse in of what to if end It's very or At true, sell through day, very difficult

the it previously quarter. why quarter So informs destocking print, inning by think opposed now third that in regards I to what view, and second as was particular as to move

Salvatore Abbate

quarter. what the the and/or Yes. we anticipated first announced of George. We had we this question said in Thanks quarter. destocking for When toward the originally end

mainly we're a So now we factors, did expect it the May Well, to informing June May, quarter are our of in into now. to frame. into continue the And our suppliers. what's couple be third outlook time

they see the into that half their are of to third and shipments sort So mid with hearing quarter their being pushed in our of suppliers inventory signaling levels. latter their business the

is own second informing inventory. point And our the

of amount the we look the has comes that significant as a inventory days on as of year. inventory And hand and result have at We from inventory our Europe. a last whiplash that in our occurred buildup,

Our late calculations to say mid summer timeframe. it's going into to that more be

technical. the they to when The That's third And start be demand as demand customers quarter, this third But would Would is point that. in maybe indicating does that expect themselves not healthy. decline word. to expect their a subjective healthy. The inventory is shipments up. our pick we

kind three hone to a using in are the very we're So imprecise points of those on timeframe.

George Staphos

print any a end within question farther the progression? there I'm is be great appreciate out terms you'll bit it. a particular challenging where share are. Are particular The to there rundown, in whether more Sal, we little able or may Are markets there that's No, of products be – destocking sure them. or

Salvatore Abbate

would mix I customer a and for Yes. us. that issue it's really say channel

And George, and combined so, our if print publishing year. you segments our we recall last

And reporting so, we've them in now. tandem been

Our really our than demand traditional more toward printer is a promotion is publishing seeing which advertising softer geared and business. segment,

destocking would and grades, longer And those is in that with those so, say I customers. that taking

customer And store in last of customers ability which inventory. who did our those burning customers again, capital the some stark through of the still the in our of finding to just people the then, larger – availability frankly, inventory inventory some out mix, are of had most that XXXX, because we're larger year,

large a a and publishing customers. with and business advertising issue combined really So mix companies issue our customer toward it's their

George Staphos

how relatively back And question, too see talk I about But turn to queue, from What you your from help and pricing. I'll will more second centralized that measures. benefit in I'll can company actions, to a seasonal nothing to one, there self that are new, generate from assume on equal we for relatively If result you aside if Understood. expect we pricing and earnings like else constant self come please. standpoint and market But sourcing, had. the demand should much we hold one And help destocking measures know other you your the so have it from over centralized this. more add if and all will, and any controllable your much doesn't on.

doing that though terrific. worse. for year even is or. guidance destocking either and in maintaining you're question, second then And the print that's We appreciate you're And that

So that argue that are would things going better. other

segments? within terms So what's been and better segments driving than expected categories within of the if in those you you. earnings Thank will,

Salvatore Abbate

try Okay. one. Thanks, those George. break down one I'll by to

The first self question around what you're help. titling

refer tell -- centralized metric. pricing certainly our one a of projecting as I our of we're margins driver the that key so our you And we in that's would guidance. to resiliency

very supply are is our we that mechanism other flexible The chain. with

So chain we supply demand. on can flex our based

sales and at And that expense so, ebb to flow. and operating looking spend we're we ratio of of –

watching we of decline it then attrition up ramping draconian natural when obviously through anything need as in that's to. as and just is not layoffs much And or times

operational drives area one really that. is flexibility our that So,

pricing centralized but business is really second mentioned a the you moment of for even about packaging our third let's only our is added talk Our diversification area And as a by within, not inside segment, packaging value solutions. area.

that testing, the the more business really and the our we margins. or fact around design frankly stickiness front solutions, designed customers create that all are to in our delivery end in kitting, with of So, cradle-to-cradle resiliency helps

a a wider typically To the range why things. uncertainty. we're given this One little pronounced? part is than seems guidance be do. holding couple we destocking year of of the And more we wider your range the that second around hold provided relatively to question a Well, when

absorbing we particularly And believe is packaging range the print and the markets. that uncertainty, in so,

actions. does think So, cost in about that if in cutting and if further end of packaging that you assume volume the about what talking by print, greater bottom the be would – we pricing offset deterioration were or range, and

higher assuming packaging. market the better projected than at this slightly Towards point that of range, end we're the in rebounds the

is don't that year in guidance. signs could in the the have print but of business is in latter some half there improve and our we packaging to large guidance, that baked So, a the upside the toward

or is Specifically Facility some offset the mean, performing that, surprises of year. around an at the business the I positives question are Solutions things definitely can rate this is one. what our around that that it accelerated

The first month frankly of in and in FS quarter. the the quarter stronger is first strong, both and packaging been

some we're there. So, seeing resiliency

is other the America. piece And then, our North

packaging now. of part being is the North business European than – the months our our XX core American business for Asian international better North business better American soft business. is cited We've and Our the

Our better than timeframe. businesses quarter and our business and think I first in April better international the the market core both into U.S. is performing than now

is to categories, that something so a again, product of And we're little And function is the seeing of a bit are to the your that part on we about our to and be strong. continue balanced that I'll around question counting talk verticals. Back category. third

corrugated market. our bit the stronger packaging stronger but healthcare. Eric the of be the little And portfolio negative type with a than a to along better seems in seeing mentioned balance market. solutions we're our and still year-over-year, business than that cold than chain our bit products E-commerce the volume Still

those others. we've lines areas resiliency seen product the where And are so, over

the pandemic food XX% be to Tow our service, the new solution a products settling office as traditional environment this like in to On really again, really facility of Tissue pre as, side, mentioned, of well, like are to XX% products level. and and seems it's our doing return Eric normal

for range guidance. So we couple point in of to us that a areas that strength those our have are confidence the

George Staphos

respect me. you I'll Sal. And try Hey, can time. one give answer I whatever more

of is based the this on self-help With baseline us with reduction you're that in cost dollar terms? year you'll [ph] in. that you an generate could said, somewhat in the to a self-help be there accordion is market there is I going So, to that recognize -- share that

Salvatore Abbate

Yes. And a trying dollar George of I'm question to in you that? terms. triangulate have sense -- Eric, that do

Eric Guerin

Yes.

the a to to market the George, specific performance of see expanded ready look the with our you if started don't the I number. the side and look a on perspective, pricing you approach if George? margin the being type quarter, going very of performance of for on don't front from continuing cost should going what we're would we're help give them. specific last I continue and year, give from I at and half with suppliers side you how that on we're margin But that if think, our and is then year you but disciplined cost half Does our I we're to think that know partnering at say last and our pricing front that this the year, and first year number, discipline.

George Staphos

I'll A little appreciate I in bit. come the thoughts. queue. back

Eric Guerin

Yes. Thanks.

Operator

apologize. any not questions time, this At I'm queue. more the in showing Disregard, I

We have Staphos America. Bank George from of

Your line open. is

George Staphos

you. Yes. Hi, Thank guys.

So, terms a and results how about out and it what as is now, bit mean right real it near-shoring helping say call to talk might that in can you practical XXXX?. we look

does how this. on I'll your other this into ask Additionally, it by the mean you of and and my after about Sal, can one benefit does one as was what XXXX mean that in well, XXXX? some then, supply think, generation chain? in doing talk comments. I And it results actually what your follow-on But you next

Salvatore Abbate

Yes. Sure.

and our around would first say, George it's in that meaningful near-shoring, factor performance. a I the specifically, not XXXX question On

but is our still more and international coming not performed to this our more business. While our Asian XX% to XX% business relatively part of a quite and international business migration year, we're Mexico. Mexico small of our Mexico the our including to our year, business. roughly seeing Overall, well business It's business from while last only packaging

up to we about force going already have sure gear your to not XXXX, half to transitioning our our in are resources Mexico. back labor be But in actively toward thinking around question Mexico continue XXXX. We've meaningful it's impact to there facilities. So, our customers working a we're And make continue we've that -- we the there of expanded ready. expanded as to

more So it's would it than XXXX? forward tell a I you, impact looking in of a preparedness is media

George Staphos

might XXXX, aggregate, million, be we're what their XX saying, okay, $XX Those and exit the based XXXX, they customers, do million, look way is all to the is in XXXX? in customers doing to on number and million, million across going they're making equate rate I'm total revenues $XX there what like opportunity $XX your a say, up, on that

Salvatore Abbate

because migrate XX% to approximation difficult it to a the say a That's XX% If I takes would that rough it, double, than had question, really more ramp XX% while on up I put customer-by-customer. over. Yes. a it's to or just

George Staphos

Understood. the chain? supply And on

Salvatore Abbate

Yes.

speak we and So, our one more when chain, supply traditionally I to tactically next just, generation say is footprint. would more

certain be And globe Should continue and that across so, have our? serve well where with past. should XXX radius us roughly We that we locations the mile a the positioned? served we in within has

and looking of Now our ship format. order pack be there a help at, small should combination that centers that and with we're pick combined with mega

in what play future? have really did overnight and with runs. routes we might facilities role seen our when experiment does You our truck experimenting transport we are between in automation do And driverless that the

to in to this market. as automation as next is continuing chain, really what the we generation the challenge So, items inside be around refer labor like box to supply face well that ready

George Staphos

for Sal. Understood. that, Thank you

I You used, about is mean, active, on, being I the certainly wording positive. what the you talked forget think but pipeline opportunity it's ultimately is M&A said. you I exact

Salvatore Abbate

is right. That's Active right.

George Staphos

what it's smaller mean right and again, should you're take So, activity? to Is the year, would month, we might before for last very a to larger that tomorrow you good What is be last at returns? and If next Is there earnings the becomes acquisition dig out it see comparison? it we three-year earnings mean? now, of means, year? or from accretive period How now, three years going make pipeline that. be, that something sort analyst, that and does is than might an whenever return? about have whether think yet the to And investor it the What you immediately what that us than away?

Salvatore Abbate

Yes.

pipeline So last would word use of you're it's year, year say, this than with the around, we less to question elevated last active year. this the slightly respect exactly more or right, year? is I is George. toward half it the The active

the everyone expensive. really markets opening to became debt a That seems knew, As bit. be up

so, recognizing And year. sellers more might a coming I environment think this little the are the half on conducive transactions there that of middle year the toward potential more in be for the end of

So, robust I would last active our is say pipeline than slightly year. and more

look your that those We enhance continue to question additive your scope things and opportunities, our second capabilities to being our around and part those scale accretion. of at scoping scale things be leverage could capabilities, to or

So scale traditional I be size folding would model. call and into it our would what

primarily acquisitions. We are focused packaging on

three-year would look runway time pipeline, accretion. be not that at that for a you we're things that would say we As at would looking it's I not the mentioned – frames. I say

that at strategic are in immediately commercial to that? we that kind things operational can could Eric, and much we the quickly you playbook So, our so more of looking returns and from we of and process. deploy add sooner that anything the acquisition benefit And reap more

Eric Guerin

nicely, covered No, it Sal. I think you

George Staphos

there's more Has And -- a not And side? obviously relative how markets to going valuations expectations on know bit. to average. realism year? sell to an be the attractive are up If I valuation that brought credit within the that, what last tightened -- the

you the the So of answer question. to kind I gave

terms size But on average acquisition of are You what at out. revenue kind terms? you of back can in looking

Eric Guerin

Yes.

your maybe So first first. question the George, part

that we're As a to tightness far to in the markets, loosen up as bit. caught on we still And see up elevated there's actually the the an market sellers. market. see the It's now, expectation not starting

I we at at there's But look and I what think we'll be M&A part second our activity. of may as approach continue multiples you question, the And disciplined look in So high the was from expectations your missed George, how have it? to still the market.

George Staphos

Just size.

billion $XX dollars, between. somewhere average what's looking So so a size? you the -- million,

Eric Guerin

Sal's Yes. scale. We're I'd the at back to go question. continue to going answer to and to scope look

ABL. As you know, our we have

So, those adjusted well, we're net right relatively we for option scale execute is scope us quickly. maybe and at to as would look in there debt about, But we well. as fit alternatives nicely $X.X talked at an there we've as could size and EBITDA,

as we that look across of the array scale. scope broad at we So both and pipeline, looking are

George Staphos

it back. Thank turn I'll answers. you. your Appreciate

Salvatore Abbate

Okay. Thank George. you,

Operator

this more in showing the I'm you questions not conference joining today's queue. for call. today's This any Thank all concludes At time, events.

may all You disconnect.

Veritiv (VRTV) 9 May 232023 Q1 Earnings call transcript