Completed Acquisition of Brown Wood
Preserving Company
First Quarter Sales of $497.6 Million vs. $513.4
Million in Prior Year Quarter
First Quarter Diluted EPS of $0.59 vs. $1.19 in
Prior Year Quarter
Adjusted EPS of $0.62 vs. $1.12 in
Prior Year Quarter
PITTSBURGH, May 3, 2024
/PRNewswire/ -- Koppers Holdings Inc. (NYSE: KOP), an integrated
global provider of treated wood products, wood treatment chemicals,
and carbon compounds, today reported net income attributable to
Koppers for the first quarter of 2024 of $13.0 million, or $0.59 per diluted share, compared to $25.5 million, or $1.19 per diluted share, in the prior year
quarter.
Adjusted net income attributable to Koppers and adjusted
earnings per share (EPS) were $13.6
million and $0.62 per share
for the first quarter of 2024, compared to $24.0 million and $1.12 per share in the prior year quarter.
Consolidated net sales of $497.6
million decreased by $15.8
million, or 3.1 percent, compared with $513.4 million in the prior year. Excluding a
$2.5 million unfavorable impact from
foreign currency changes, sales decreased by $13.3 million, or 2.6 percent.
The Railroad and Utility Products and Services (RUPS) business
generated record first-quarter sales and higher year-over-year
profitability as a result of higher crosstie volumes, pricing
increases and improved plant utilization, which combined to more
than offset higher expenses.
The Performance Chemicals (PC) segment delivered a strong first
quarter in sales and profitability, driven by volume increases,
primarily for copper-based preservatives in the Americas.
The Carbon Materials and Chemicals (CMC) segment experienced
reduced market demand, with sales and profitability unfavorably
impacted by price and volume decreases, as well as lower plant
utilization in North America
primarily due to an outage in January.
Chief Executive Officer Leroy
Ball said, "As projected, PC and RUPS showed year-over-year
improvement in profitability, which was unfortunately negated by
slumping CMC markets. Weather-related plant outages and
higher costs early in the quarter ultimately became too much to
overcome as end markets performed mostly as expected.
Additionally, various unfavorable factors affected our rail
maintenance-of-way businesses and created an additional unexpected
earnings drag. A mixed market outlook and specific short-term
customer challenges are causing us to be cautious about the
remainder of 2024. Our team will continue to focus on the
things that we can control, particularly actions related to cost
reduction and free cash flow."
First Quarter Financial Performance
- RUPS delivered record first-quarter sales of $225.1 million, an increase of $12.0 million, or 5.6 percent, compared to
$213.1 million in the prior year
quarter. Excluding an unfavorable impact from foreign currency
changes of $0.6 million, sales
increased by $12.6 million, or 5.9
percent, from the prior year quarter. The sales growth was largely
due to $9.6 million of volume
increases for crossties and a net $8.1
million of pricing increases across multiple markets,
particularly for crossties and domestic utility poles. These
increases were partly offset by lower activity in
maintenance-of-way businesses and a 4.2 percent volume decrease in
domestic utility poles due to temporary customer overstock and
budget realignment. Adjusted EBITDA for the first quarter was
$17.7 million, or 7.9 percent,
compared with $15.8 million, or 7.4
percent, in the prior year quarter. Profitability improved
year-over-year due primarily to net sales price increases and
$3.7 million from improved plant
utilization, which combined to more than offset $10.6 million of higher operating, raw material
and selling, general and administrative expenses.
- PC generated first-quarter sales of $150.1 million, an increase of $3.2 million, or 2.2 percent, compared to sales
of $146.9 million in the prior year
quarter. Excluding an unfavorable foreign currency impact of
$0.2 million, sales increased by
$3.4 million, or 2.3 percent, from
the prior year quarter. The year-over-year sales growth was the
result of volume increases of $6.8
million, including a 6.1 percent volume increase in the
Americas, primarily for copper-based preservatives. These increases
were partly offset by $3.3 million of
lower prices in the Americas and Australasia. Adjusted EBITDA for
the first quarter was $29.8 million,
or 19.9 percent, compared with $26.3
million, or 17.9 percent, in the prior year quarter.
Compared to the prior year, profitability was higher primarily as a
result of higher volumes. Lower sales prices were offset by
decreases in raw material costs.
- CMC reported first-quarter sales of $122.4 million, a decrease of $31.0 million, or 20.2 percent, compared to sales
of $153.4 million in the prior year
quarter. Excluding an unfavorable impact from foreign currency
changes of $1.7 million, sales
decreased by $29.3 million, or 19.1
percent, from the prior year quarter. The sales decline was driven
by reduced market demand, with $28.6
million of lower sales prices across most products,
including carbon pitch, where prices were down 24.6 percent
globally, along with $11.5 million of
lower volumes of carbon pitch and carbon black feedstock. The
decreases were partly offset by volume increases for phthalic
anhydride. Adjusted EBITDA for the first quarter was $4.0 million, or 3.3 percent, compared with
$19.4 million, or 12.6 percent, in
the prior year quarter. The year-over-year decline in profitability
reflected price and volume decreases along with lower North
American plant utilization, primarily due to a weather-related
plant outage in January, partly offset by an $18.6 million reduction in raw material costs,
particularly in Europe and
North America.
- Capital expenditures for the first quarter of 2024 were
$26.3 million compared with
$30.4 million for the prior year
period. Net of insurance proceeds and cash provided from asset
sales, capital expenditures were $25.8
million for the current year period compared with
$28.5 million for the prior year
period.
2024 Outlook
Koppers continues to expand and optimize its business and make
further progress on the company's strategic pillars toward its
long-term financial goals. After considering global economic
conditions, as well as the ongoing uncertainty associated with
geopolitical and supply chain challenges, Koppers expects 2024
sales of approximately $2.25 billion,
compared with $2.15 billion in
2023. Adjusted EBITDA is anticipated to be approximately
$265 million to $280 million in 2024, including the acquisition
of Brown Wood Preserving which closed on April 1, 2024, compared with $256.4 million in 2023.
The effective tax rate for adjusted net income attributable to
Koppers in 2024 is projected to be approximately 28 percent,
slightly above the adjusted tax rate in 2023. Accordingly, 2024
adjusted EPS is forecasted to be in the range of $4.10 to $4.60 per
share, compared with $4.36 per share
in 2023.
Koppers expects operating cash flows of approximately
$150 million in 2024, excluding any
impact from pension termination. The company is pursuing a
termination of its U.S. qualified pension plan and is targeting
this effort for completion in the first quarter 2025. An
estimated $25 million of funding will
be required when this is completed, which will impact operating
cash flow in 2025.
Koppers anticipates capital expenditures of approximately
$80 million to $90 million in 2024, including capitalized
interest, with approximately $23
million to $33 million
allocated to discretionary projects.
Commenting on the forecast, Mr. Ball said, "Lower than
originally forecast volumes for RUPS, driven by certain utility
pole customers right sizing inventories and a temporary slowdown in
project spend driven by the expectation of a higher interest rate
environment persisting for a longer period of time, are expected to
offset the contribution to this year's results from the Brown Wood
acquisition. While CMC will show definite improvement the
remainder of this year, it will be difficult to make up the first
quarter gap that was created by its poor results without an upward
turn in our end markets before year end. With that said, we
are actively working on several initiatives in CMC that will result
in long-term improvement but much of that will not materialize
until 2025 at the earliest. On the plus side, our PC business
overall is in good shape and expected to sustain its first quarter
outperformance through the rest of this year.
"As always, our business has many moving parts that are
constantly shifting in different directions, but I still remain
confident in our ability to not only exceed our original 2025
adjusted EBITDA goal of $300 million
but reach my last communicated range of $315
million to $325 million which
includes the addition of Brown."
Koppers does not provide reconciliations of guidance for
adjusted EBITDA and adjusted EPS to comparable GAAP measures, in
reliance on the unreasonable efforts exception. Koppers is
unable, without unreasonable efforts, to forecast certain items
required to develop meaningful comparable GAAP financial measures.
These items include, but are not limited to, restructuring and
impairment charges, acquisition-related costs, mark-to-market
commodity hedging, and LIFO adjustments that are difficult to
forecast for a GAAP estimate and may be significant.
Investor Conference Call and Webcast
Interested parties may access the live audio broadcast toll free
by dialing 833-366-1128 in the United
States and Canada, or
412-902-6774 for international, Conference ID number 10184852.
Participants are requested to access the call at least five minutes
before the scheduled start time to complete a brief
registration. The conference call will be broadcast live on
www.koppers.com and can also be accessed here.
An audio replay will be available approximately two hours after
the completion of the call at 877-344-7529 for U.S. toll free,
855-669-9658 for Canada toll free,
or 412-317-0088 for international, using replay access code
6337257. The recording will be available for replay through
August 3, 2024.
About Koppers
Koppers (NYSE: KOP) is an integrated global provider of
essential treated wood products, wood preservation technologies and
carbon compounds. Our team of 2,200 employees create, protect and
preserve key elements of our global infrastructure – including
railroad crossties, utility poles, outdoor wooden structures, and
production feedstocks for steel, aluminum and construction
materials, among others – applying decades of industry-leading
expertise while constantly innovating to anticipate the needs of
tomorrow. Together we are providing safe and sustainable solutions
to enable rail transportation, keep power flowing, and create
spaces of enjoyment for people everywhere. Protecting What Matters,
Preserving The Future. Learn more at Koppers.com.
Inquiries from the media should be directed to Ms. Jessica Franklin Black at BlackJF@koppers.com or
412-227-2025. Inquiries from the investment community should
be directed to Ms. Quynh McGuire at
McGuireQT@koppers.com or 412-227-2049.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial
measures. Koppers believes that adjusted EBITDA, adjusted net
income attributable to Koppers and adjusted earnings per share
provide information useful to investors in understanding the
underlying operational performance of the company, its business and
performance trends, and facilitate comparisons between periods and
with other corporations in similar industries. The exclusion of
certain items permits evaluation and a comparison of results for
ongoing business operations, and it is on this basis that Koppers
management internally assesses the company's performance. In
addition, the Board of Directors and executive management team use
adjusted EBITDA as a performance measure under the company's annual
incentive plans and for certain performance share units granted to
management.
Although Koppers believes that these non-GAAP financial measures
enhance investors' understanding of its business and performance,
these non-GAAP financial measures should not be considered an
alternative to GAAP basis financial measures and should be read in
conjunction with the relevant GAAP financial measure. Other
companies in a similar industry may define or calculate these
measures differently than the company, limiting their usefulness as
comparative measures. Because of these limitations, these
non-GAAP financial measures should not be considered in isolation
or as substitutes for performance measures calculated in accordance
with GAAP.
See the attached tables for the following reconciliations of
non-GAAP financial measures included in this press release:
Unaudited Reconciliation of Net Income to Adjusted EBITDA, and
Unaudited Reconciliations of Net Income Attributable to Koppers to
Adjusted Net Income Attributable to Koppers and Diluted Earnings
Per Share and Adjusted Earnings Per Share.
Safe Harbor Statement
Certain statements in this press release are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 and may include, but are not limited to,
statements about sales levels, acquisitions, restructuring,
declines in the value of Koppers assets and the effect of any
resulting impairment charges, profitability and anticipated
expenses and cash outflows. All forward-looking statements involve
risks and uncertainties.
All statements contained herein that are not clearly historical
in nature are forward-looking, and words such as "outlook,"
"guidance," "forecast," "believe," "anticipate," "expect,"
"estimate," "may," "will," "should," "continue," "plan,"
"potential," "intend," "likely," or other similar words or phrases
are generally intended to identify forward-looking statements. Any
forward-looking statement contained herein, in other press
releases, written statements or other documents filed with the
Securities and Exchange Commission, or in Koppers communications
and discussions with investors and analysts in the normal course of
business through meetings, phone calls and conference calls,
regarding future dividends, expectations with respect to sales,
earnings, cash flows, operating efficiencies, restructurings, the
benefits of acquisitions, divestitures, joint ventures or other
matters as well as financings and debt reduction, are subject to
known and unknown risks, uncertainties and contingencies.
Many of these risks, uncertainties and contingencies are beyond
our control, and may cause actual results, performance or
achievements to differ materially from anticipated results,
performance or achievements. Factors that might affect such
forward-looking statements include, among other things, the impact
of changes in commodity prices, such as oil and copper, on product
margins; general economic and business conditions; potential
difficulties in protecting our intellectual property; the ratings
on our debt and our ability to repay or refinance our outstanding
indebtedness as it matures; our ability to operate within the
limitations of our debt covenants; unexpected business disruptions;
potential impairment of our goodwill and/or long-lived assets;
demand for Koppers goods and services; competitive conditions;
capital market conditions, including interest rates, borrowing
costs and foreign currency rate fluctuations; availability and
fluctuations in the prices of key raw materials; disruptions and
inefficiencies in the supply chain; economic, political and
environmental conditions in international markets; changes in laws;
the impact of environmental laws and regulations; unfavorable
resolution of claims against us, as well as those discussed more
fully elsewhere in this release and in documents filed with the
Securities and Exchange Commission by Koppers, particularly our
latest annual report on Form 10-K and any subsequent filings by
Koppers with the Securities and Exchange Commission. Any
forward-looking statements in this release speak only as of the
date of this release, and we undertake no obligation to update any
forward-looking statement to reflect events or circumstances after
that date or to reflect the occurrence of unanticipated events.
KOPPERS HOLDINGS
INC.
UNAUDITED
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars in
millions, except share and per share amounts)
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2024
|
|
|
2023
|
|
Net sales
|
|
$
|
497.6
|
|
|
$
|
513.4
|
|
Cost of
sales
|
|
|
401.4
|
|
|
|
409.3
|
|
Depreciation and
amortization
|
|
|
16.1
|
|
|
|
14.0
|
|
Selling, general and
administrative expenses
|
|
|
45.5
|
|
|
|
41.6
|
|
(Gain) on sale of
assets
|
|
|
0.0
|
|
|
|
(1.8)
|
|
Operating
profit
|
|
|
34.6
|
|
|
|
50.3
|
|
Other loss,
net
|
|
|
(0.1)
|
|
|
|
(0.2)
|
|
Interest
expense
|
|
|
17.1
|
|
|
|
14.0
|
|
Income before income
taxes
|
|
|
17.4
|
|
|
|
36.1
|
|
Income tax
provision
|
|
|
4.4
|
|
|
|
9.9
|
|
Net income
|
|
|
13.0
|
|
|
|
26.2
|
|
Net income attributable
to noncontrolling interests
|
|
|
0.0
|
|
|
|
0.7
|
|
Net income attributable
to Koppers
|
|
$
|
13.0
|
|
|
$
|
25.5
|
|
Earnings per common
share attributable to Koppers common shareholders:
|
|
|
|
|
|
|
Basic
|
|
$
|
0.61
|
|
|
$
|
1.22
|
|
Diluted
|
|
$
|
0.59
|
|
|
$
|
1.19
|
|
Weighted average shares
outstanding (in thousands):
|
|
|
|
|
|
|
Basic
|
|
|
21,066
|
|
|
|
20,842
|
|
Diluted
|
|
|
21,909
|
|
|
|
21,385
|
|
KOPPERS HOLDINGS
INC.
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEET
(Dollars in
millions, except share and per share amounts)
|
|
|
|
March 31,
2024
|
|
|
December 31,
2023
|
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
49.0
|
|
|
$
|
66.5
|
|
Accounts receivable,
net of allowance of $6.7 and $6.5
|
|
|
218.3
|
|
|
|
202.4
|
|
Inventories,
net
|
|
|
399.0
|
|
|
|
395.7
|
|
Derivative
contracts
|
|
|
11.4
|
|
|
|
7.1
|
|
Other current
assets
|
|
|
30.0
|
|
|
|
27.3
|
|
Total current
assets
|
|
|
707.7
|
|
|
|
699.0
|
|
Property, plant and
equipment, net of accumulated depreciation
of $479.4 and $473.2
|
|
|
640.5
|
|
|
|
631.7
|
|
Goodwill
|
|
|
293.1
|
|
|
|
294.4
|
|
Intangible assets,
net
|
|
|
98.5
|
|
|
|
102.2
|
|
Operating lease
right-of-use assets
|
|
|
85.8
|
|
|
|
90.5
|
|
Deferred tax
assets
|
|
|
9.8
|
|
|
|
10.4
|
|
Other assets
|
|
|
9.9
|
|
|
|
7.3
|
|
Total
assets
|
|
$
|
1,845.3
|
|
|
$
|
1,835.5
|
|
Liabilities
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
195.2
|
|
|
$
|
202.9
|
|
Accrued
liabilities
|
|
|
87.5
|
|
|
|
95.1
|
|
Current operating lease
liabilities
|
|
|
22.2
|
|
|
|
22.9
|
|
Current maturities of
long-term debt
|
|
|
4.0
|
|
|
|
5.0
|
|
Total current
liabilities
|
|
|
308.9
|
|
|
|
325.9
|
|
Long-term
debt
|
|
|
865.1
|
|
|
|
835.4
|
|
Operating lease
liabilities
|
|
|
63.4
|
|
|
|
67.4
|
|
Accrued postretirement
benefits
|
|
|
27.9
|
|
|
|
31.6
|
|
Deferred tax
liabilities
|
|
|
28.1
|
|
|
|
25.9
|
|
Other long-term
liabilities
|
|
|
42.0
|
|
|
|
46.3
|
|
Total
liabilities
|
|
|
1,335.4
|
|
|
|
1,332.5
|
|
Commitments and
contingent liabilities
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Senior Convertible
Preferred Stock, $0.01 par value per share; 10,000,000
shares authorized; no shares issued
|
|
|
0.0
|
|
|
|
0.0
|
|
Common Stock, $0.01 par
value per share; 80,000,000 shares authorized;
25,630,272 and 25,163,238 shares issued
|
|
|
0.3
|
|
|
|
0.3
|
|
Additional paid-in
capital
|
|
|
300.0
|
|
|
|
291.1
|
|
Retained
earnings
|
|
|
455.4
|
|
|
|
444.0
|
|
Accumulated other
comprehensive loss
|
|
|
(95.3)
|
|
|
|
(88.8)
|
|
Treasury stock, at
cost, 4,441,930 and 4,302,996 shares
|
|
|
(154.6)
|
|
|
|
(147.7)
|
|
Total Koppers
shareholders' equity
|
|
|
505.8
|
|
|
|
498.9
|
|
Noncontrolling
interests
|
|
|
4.1
|
|
|
|
4.1
|
|
Total
equity
|
|
|
509.9
|
|
|
|
503.0
|
|
Total liabilities and
equity
|
|
$
|
1,845.3
|
|
|
$
|
1,835.5
|
|
KOPPERS HOLDINGS
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
(Dollars in
millions)
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2024
|
|
|
2023
|
|
Cash provided by (used
in) operating activities:
|
|
|
|
|
|
|
Net income
|
|
$
|
13.0
|
|
|
$
|
26.2
|
|
Adjustments to
reconcile net cash used in operating activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
16.1
|
|
|
|
14.0
|
|
Stock-based
compensation
|
|
|
5.4
|
|
|
|
4.0
|
|
Change in derivative
contracts
|
|
|
(1.8)
|
|
|
|
(1.1)
|
|
Non-cash interest
expense
|
|
|
0.8
|
|
|
|
0.6
|
|
Loss (gain) on sale of
assets
|
|
|
0.1
|
|
|
|
(1.8)
|
|
Insurance
proceeds
|
|
|
(0.5)
|
|
|
|
0.0
|
|
Deferred income
taxes
|
|
|
0.5
|
|
|
|
(0.1)
|
|
Change in other
liabilities
|
|
|
(3.8)
|
|
|
|
0.4
|
|
Other - net
|
|
|
(0.8)
|
|
|
|
0.4
|
|
Changes in working
capital:
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(18.2)
|
|
|
|
(25.1)
|
|
Inventories
|
|
|
(8.2)
|
|
|
|
(22.4)
|
|
Accounts
payable
|
|
|
(4.3)
|
|
|
|
14.1
|
|
Accrued
liabilities
|
|
|
(9.0)
|
|
|
|
(18.5)
|
|
Other working
capital
|
|
|
(1.6)
|
|
|
|
(6.0)
|
|
Net cash (used in)
operating activities
|
|
|
(12.3)
|
|
|
|
(15.3)
|
|
Cash (used in) provided
by investing activities:
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(26.3)
|
|
|
|
(30.4)
|
|
Insurance proceeds
received
|
|
|
0.5
|
|
|
|
0.0
|
|
Cash provided by sale
of assets
|
|
|
0.0
|
|
|
|
1.9
|
|
Net cash (used in)
investing activities
|
|
|
(25.8)
|
|
|
|
(28.5)
|
|
Cash provided by (used
in) financing activities:
|
|
|
|
|
|
|
Borrowings of credit
facility
|
|
|
190.7
|
|
|
|
122.0
|
|
Repayments of credit
facility
|
|
|
(160.8)
|
|
|
|
(58.5)
|
|
Repayments of
long-term debt
|
|
|
(2.0)
|
|
|
|
0.0
|
|
Issuances of Common
Stock
|
|
|
3.5
|
|
|
|
1.2
|
|
Repurchases of Common
Stock
|
|
|
(6.9)
|
|
|
|
(5.8)
|
|
Payment of debt
issuance costs
|
|
|
0.0
|
|
|
|
(0.8)
|
|
Dividends
paid
|
|
|
(1.5)
|
|
|
|
(1.3)
|
|
Net cash provided by
financing activities
|
|
|
23.0
|
|
|
|
56.8
|
|
Effect of exchange rate
changes on cash
|
|
|
(2.4)
|
|
|
|
0.1
|
|
Net (decrease) increase
in cash and cash equivalents
|
|
|
(17.5)
|
|
|
|
13.1
|
|
Cash and cash
equivalents at beginning of period
|
|
|
66.5
|
|
|
|
33.3
|
|
Cash and cash
equivalents at end of period
|
|
$
|
49.0
|
|
|
$
|
46.4
|
|
UNAUDITED SEGMENT
INFORMATION
(Dollars in
millions)
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2024
|
|
|
2023
|
|
Net sales:
|
|
|
|
|
|
|
Railroad and Utility
Products and Services
|
|
$
|
225.1
|
|
|
$
|
213.1
|
|
Performance
Chemicals
|
|
|
150.1
|
|
|
|
146.9
|
|
Carbon Materials and
Chemicals
|
|
|
122.4
|
|
|
|
153.4
|
|
Total
|
|
$
|
497.6
|
|
|
$
|
513.4
|
|
Adjusted
EBITDA(1):
|
|
|
|
|
|
|
Railroad and Utility
Products and Services
|
|
$
|
17.7
|
|
|
$
|
15.8
|
|
Performance
Chemicals
|
|
|
29.8
|
|
|
|
26.3
|
|
Carbon Materials and
Chemicals
|
|
|
4.0
|
|
|
|
19.4
|
|
Total
|
|
$
|
51.5
|
|
|
$
|
61.5
|
|
Adjusted EBITDA
margin(2):
|
|
|
|
|
|
|
Railroad and
Utility Products and Services
|
|
|
7.9
|
%
|
|
|
7.4
|
%
|
Performance
Chemicals
|
|
|
19.9
|
%
|
|
|
17.9
|
%
|
Carbon Materials and
Chemicals
|
|
|
3.3
|
%
|
|
|
12.6
|
%
|
|
|
(1)
|
The tables below
describe the adjustments to arrive at adjusted
EBITDA.
|
(2)
|
Adjusted EBITDA as a
percentage of GAAP sales.
|
UNAUDITED
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
(Dollars in
millions)
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2024
|
|
|
2023
|
|
Net income
|
|
$
|
13.0
|
|
|
$
|
26.2
|
|
Interest
expense
|
|
|
17.1
|
|
|
|
14.0
|
|
Depreciation and
amortization
|
|
|
16.1
|
|
|
|
14.0
|
|
Income tax
provision
|
|
|
4.4
|
|
|
|
9.9
|
|
Sub-total
|
|
|
50.6
|
|
|
|
64.1
|
|
Adjustments to arrive
at adjusted EBITDA:
|
|
|
|
|
|
|
LIFO
expense(1)
|
|
|
2.6
|
|
|
|
0.3
|
|
(Gain) on sale of
assets
|
|
|
0.0
|
|
|
|
(1.8)
|
|
Mark-to-market
commodity hedging gains
|
|
|
(1.7)
|
|
|
|
(1.1)
|
|
Total
adjustments
|
|
|
0.9
|
|
|
|
(2.6)
|
|
Adjusted
EBITDA
|
|
$
|
51.5
|
|
|
$
|
61.5
|
|
|
|
(1)
|
The LIFO expense
adjustment removes the entire impact of LIFO and effectively
reflects the results as if we were on a FIFO inventory
basis.
|
UNAUDITED
RECONCILIATIONS OF NET INCOME ATTRIBUTABLE TO KOPPERS
TO
ADJUSTED NET INCOME
ATTRIBUTABLE TO KOPPERS AND
DILUTED EARNINGS PER
SHARE AND ADJUSTED EARNINGS PER SHARE
(Dollars in
millions, except share and per share amounts)
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2024
|
|
|
2023
|
|
Net income attributable
to Koppers
|
|
$
|
13.0
|
|
|
$
|
25.5
|
|
Adjustments to arrive
at adjusted net income:
|
|
|
|
|
|
|
LIFO
expense(1)
|
|
|
2.6
|
|
|
|
0.3
|
|
(Gain) on sale of
assets
|
|
|
0.0
|
|
|
|
(1.8)
|
|
Mark-to-market
commodity hedging gains
|
|
|
(1.7)
|
|
|
|
(1.1)
|
|
Total
adjustments
|
|
|
0.9
|
|
|
|
(2.6)
|
|
Adjustments to income
tax and noncontrolling interests:
|
|
|
|
|
|
|
Income tax on
adjustments to pre-tax income
|
|
|
(0.3)
|
|
|
|
0.2
|
|
Deferred tax
adjustments
|
|
|
0.0
|
|
|
|
0.2
|
|
Noncontrolling
interest
|
|
|
0.0
|
|
|
|
0.7
|
|
Effect on adjusted net
income
|
|
|
0.6
|
|
|
|
(1.5)
|
|
Adjusted net income
attributable to Koppers
|
|
$
|
13.6
|
|
|
$
|
24.0
|
|
Diluted weighted
average common shares outstanding (in thousands)
|
|
|
21,909
|
|
|
|
21,385
|
|
Diluted earnings per
share
|
|
$
|
0.59
|
|
|
$
|
1.19
|
|
Adjusted earnings per
share
|
|
$
|
0.62
|
|
|
$
|
1.12
|
|
|
|
(1)
|
The LIFO expense
adjustment removes the entire impact of LIFO and effectively
reflects the results as if we were on a FIFO inventory
basis.
|
|
|
|
|
|
For
Information:
|
|
Quynh McGuire, Vice
President, Investor Relations
|
|
|
412 227 2049
|
|
|
McGuireQT@koppers.com
|
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SOURCE KOPPERS HOLDINGS INC.