Verso Corporation Reports Third Quarter 2016 Results

MEMPHIS, Tenn., Nov. 14, 2016

• Successful emergence from bankruptcy on July 15, 2016 and resumption of trading on the NYSE
• Net sales of $578 million for the period from July 15, 2016 to September 30, 2016 and $97 million for the period from July 1, 2016 to July 14, 2016, up 7% versus second quarter of 2016
• Net loss of $40 million for the period from July 15, 2016 to September 30, 2016 and net income of $1,299 million for the period from July 1, 2016 to July 14, 2016
• Net loss before reorganization items of $40 million for the period from July 15, 2016 to September 30, 2016 and loss before reorganization items of $3 million for the period from July 1, 2016 to July 14, 2016
• Adjusted EBITDA of $41 million for the period from July 15, 2016 to September 30, 2016 and Adjusted EBITDA of $9 million for the period from July 1, 2016 to July 14, 2016
• Reconfirmation of 2016 Adjusted EBITDA guidance of $180-190 million

Overview

"With our successful restructuring behind us, Verso is moving forward with a comprehensive strategy designed to drive continued improvement in our operating and financial performance," said Allen Campbell, Verso Senior Vice President and Chief Financial Officer. "We remain committed to providing the high quality products and exceptional service our customers have come to expect from us as we strive to improve our safety performance, increase manufacturing efficiency, drive down cost and deliver stronger financial results."

Verso's financial results for the quarter were significantly impacted by fresh-start accounting adjustments, pricing in the market and major maintenance costs incurred in the quarter.

Presentation of Predecessor and Successor Financial Results

Verso Corporation (the "Company") adopted fresh-start reporting as of July 15, 2016 (the "Effective Date"), the effective date of its First Modified Third Amended Joint Plan of Reorganization Under Chapter 11 of the Bankruptcy Code dated as of June 20, 2016 and the date that Verso emerged from its Chapter 11 cases. As a result of the application of fresh-start reporting, the Company's financial statements for periods prior to the Effective Date are not comparable to those for periods subsequent to the Effective Date. References to "Successor" refer to the Company on or after the Effective Date. References to "Predecessor" refer to the Company prior to the Effective Date. Operating results for the Successor and Predecessor periods are not necessarily indicative of the results to be expected for a full fiscal year. References such as the "Company," "we," "our" and "us" refer to Verso Corporation and its consolidated subsidiaries, whether Predecessor and/or Successor, as appropriate.

Summary Results