Koppers Reports Fourth Quarter and Full-Year 2023 Results; Provides 2024 Outlook
- Record sales and operating profit reported by Koppers Holdings Inc. in Q4 2023.
- Net income for Q4 2023 was $12.9 million, with a consolidated sales increase of 6.3% to $513.2 million.
- RUPS and PC segments showed sales growth, while CMC segment experienced a decline in Q4 2023.
- Adjusted EBITDA for Q4 2023 reached $53.9 million.
- CEO Leroy Ball commended the global team for strong performance in a challenging environment.
- Full year 2023 saw Koppers achieve record sales of $2.15 billion and net income of $89.2 million.
- Koppers expects sales of $2.25 billion and adjusted EBITDA of $275 million in 2024.
- Adjusted net income and earnings per share (EPS) decreased in Q4 2023 compared to the prior year quarter.
- CMC segment experienced declining sales and profitability in Q4 2023.
- Adjusted EBITDA for CMC segment decreased significantly in Q4 2023 compared to the prior year quarter.
- Capital expenditures for 2023 increased compared to the prior year period.
Insights
Examining Koppers Holdings Inc.'s financial performance reveals several key points that are crucial for stakeholders. The record sales figures for both the fourth quarter and the full year signify a robust demand for the company's products, which is a positive signal for investors. The reported 25 percent increase in operating profit is a testament to the company's operational efficiency and pricing strategy, particularly within the Railroad and Utility Products and Services (RUPS) and Performance Chemicals (PC) segments. This level of profitability growth is significant and exceeds average industry benchmarks, indicating strong management execution.
However, the decline in net income and adjusted earnings per share (EPS) for the fourth quarter, compared to the prior year, raises questions about the sustainability of profit margins, especially in light of increased raw material and operating costs. This discrepancy suggests that while top-line growth is strong, bottom-line pressures persist, potentially affecting future earnings. The mixed performance within segments, with CMC experiencing a downturn, also highlights the importance of portfolio diversification and the cyclical nature of different market segments.
Furthermore, the increase in capital expenditures suggests an aggressive investment strategy, which could enhance long-term growth but may also impact short-term cash flow. The projected operating cash flows and adjusted EBITDA for 2024, along with the anticipated tax rate and adjusted EPS, provide a forward-looking perspective that will be closely monitored by investors for alignment with strategic initiatives and market conditions.
From a market perspective, Koppers' performance is indicative of effective pricing strategies and market adaptation. The record fourth-quarter sales in the RUPS business, driven by pricing increases and higher volumes for crossties, reflect an ability to leverage product demand amidst a challenging environment. The PC segment's return to historical profitability norms suggests successful renegotiation of customer contracts and price management to counteract raw material cost increases.
The CMC segment's decline, however, underscores the volatility in global commodity markets, which can significantly impact segment-specific performance. The global pricing initiatives and volume increases in the PC segment, particularly for copper-based preservatives, show responsiveness to global market trends, an essential factor for maintaining competitive advantage.
The 2024 outlook, with expected sales growth and adjusted EBITDA increase, indicates management's confidence in continued demand and operational performance. Yet, the cautious tone regarding global economic conditions and supply chain challenges is an implicit acknowledgment of the external risks that could affect the company's performance. This forward-looking statement will be crucial for market analysts to assess Koppers' resilience in navigating potential headwinds.
An economist's view on Koppers' report would focus on broader economic indicators and their interplay with the company's performance. The increased operating costs and raw material prices are reflective of inflationary pressures that businesses are currently facing. These cost pressures, if sustained, could erode margins and necessitate further price adjustments, with potential impacts on consumer demand.
The anticipated increase in the effective tax rate for 2024 is another economic factor that could affect net income and available capital for reinvestment. The strategic decision to terminate the U.S. qualified pension plan could be seen as a move to optimize the company's financial structure in anticipation of these economic pressures.
Lastly, the company's projected growth amidst ongoing geopolitical and supply chain uncertainties suggests a cautiously optimistic outlook on the global economy's ability to sustain industrial demand. This outlook, coupled with strategic capital allocation to discretionary projects, signals confidence in long-term growth despite short-term economic challenges.
Record Fourth-Quarter Sales of
Record Year Sales of
Record Operating Profit of
Adjusted net income attributable to Koppers and adjusted earnings per share (EPS) were
Consolidated sales of
The Railroad and Utility Products and Services (RUPS) business delivered record fourth-quarter sales and adjusted EBITDA as a result of pricing increases and higher volumes for crossties, which improved throughput, partially offset by increased raw material and operating costs. In addition, fourth-quarter records in operating profit and adjusted EBITDA from the domestic utility pole business contributed to the favorable performance.
The Performance Chemicals (PC) segment benefited from global pricing initiatives, as well as higher volumes. Profitability returned to historical norms as renegotiated customer contracts allowed for price increases to address higher raw material and other operating costs experienced in the prior year.
The Carbon Materials and Chemicals (CMC) segment sales and profitability declined from the prior year, primarily due to lower market prices and weaker demand for most products, partly offset by higher carbon pitch volumes.
Chief Executive Officer Leroy Ball said, "We finished the year on a strong note near the top end of our adjusted EBITDA range of guidance. Once again, for the things we control, our global team did an amazing job of executing by continuing to provide our customer base with the highest-quality products and services in a challenging environment. Our diversified portfolio drove the strong performance, as our PC and RUPS business segments picked up a struggling CMC segment that continues to work through the trough of its business cycle. As always, I credit our global team for remaining focused on performing safely and at a high level, as our success begins with them."
Fourth Quarter Financial Performance
- RUPS reported record fourth-quarter sales of
$216.4 million $23.4 million $193.0 million $16.0 million the United States . In addition, increased volumes for Class I crossties contributed to the sales growth. The increases were partly offset by decreased volumes in utility poles. Adjusted EBITDA, a fourth-quarter record, was$20.7 million $13.3 million - PC delivered sales of
$164.4 million $23.6 million $140.8 million $0.4 million $23.2 million $15.1 million Americas , for copper-based preservatives. Volumes increased by 6.0 percent globally, including in theAmericas , primarily for copper-based preservatives. As a result of these price and volume increases, adjusted EBITDA was$29.4 million $17.6 million - Sales for CMC of
$132.4 million $16.4 million $148.8 million $2.4 million $18.9 million $25.5 million $3.8 million $21.2 million $2.8 million Europe .
2023 Financial Performance
- Consolidated sales of
$2.15 billion $174 million $1.98 billion - RUPS delivered a record
$897.9 million $109.6 million $788.3 million $84.0 million $53.6 million - PC reported
$671.6 million $91.7 million $579.9 million $123.1 million $75.5 million - Sales for CMC, totaling
$584.7 million $27.6 million $612.3 million $49.3 million $99.0 million - Net income attributable to Koppers was
$89.2 million $63.4 million $94.0 million $88.3 million $256.4 million $228.1 million - Diluted EPS was
$4.14 $2.98 $4.36 $4.14 - Operating cash flows were
$146.1 million $102.3 million - Capital expenditures for the year ended December 31, 2023, were
$120.5 million $105.3 million $116.0 million $100.1 million
2023 Accomplishments
In 2023, Koppers continued implementing its value creation strategy and further positioned the company for long-term growth and profitability, as highlighted by the following:
- Record sales for the 5th straight year.
- Record operating profit.
- Record operating cash flow and the 5th consecutive year of more than
$100 million - 2nd highest diluted EPS from continuing operations.
- 2nd best-ever safety rate.
- 3rd year named to Newsweek's list of Most Responsible Companies.
- Named to
USA Today's inaugural list of America's Climate Leaders.
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
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
Koppers expects operating cash flows of approximately
Koppers anticipates capital expenditures of approximately
Commenting on the forecast, Mr. Ball said, "I feel good about meeting our 2024 targets, as long as demand in our segments meets our projections of flat to slightly up from 2023 in existing markets. Factors driving the 7 percent increase in adjusted EBITDA include some carry-over pricing benefits from prior year; contributions from our
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
Koppers management will conduct a conference call this morning, beginning at 11:00 a.m. Eastern Time to discuss the company's results for the quarter. Presentation materials will be available at least 15 minutes before the call on www.koppers.com in the Investor Relations section of the company's website.
Interested parties may access the live audio broadcast toll free by dialing 833-366-1128 in
An audio replay will be available approximately two hours after the completion of the call at 877-344-7529 for
About Koppers
Koppers, with corporate headquarters in
For more information, visit: www.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 CONSOLIDATED STATEMENT OF OPERATIONS (Dollars in millions, except share and per share amounts) | ||||||||||||||||
Three Months Ended | Year Ended December 31, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net sales | $ | 513.2 | $ | 482.6 | $ | 2,154.2 | $ | 1,980.5 | ||||||||
Cost of sales | 416.7 | 406.5 | 1,729.7 | 1,635.9 | ||||||||||||
Depreciation and amortization | 14.3 | 11.6 | 57.0 | 56.1 | ||||||||||||
Selling, general and administrative expenses | 45.0 | 36.9 | 174.1 | 153.3 | ||||||||||||
(Gain) on sale of assets | 0.0 | 0.0 | (1.8) | (2.5) | ||||||||||||
Operating profit | 37.2 | 27.6 | 195.2 | 137.7 | ||||||||||||
Other income, net | 0.2 | 0.7 | 0.4 | 2.5 | ||||||||||||
Interest expense | 17.7 | 12.5 | 71.0 | 44.8 | ||||||||||||
Income from continuing operations before income taxes | 19.7 | 15.8 | 124.6 | 95.4 | ||||||||||||
Income tax provision | 6.7 | 1.9 | 34.8 | 31.6 | ||||||||||||
Income from continuing operations | 13.0 | 13.9 | 89.8 | 63.8 | ||||||||||||
Loss on sale of discontinued operations | 0.0 | (0.1) | 0.0 | (0.6) | ||||||||||||
Net income | 13.0 | 13.8 | 89.8 | 63.2 | ||||||||||||
Net income (loss) attributable to noncontrolling interests | 0.1 | 0.0 | 0.6 | (0.2) | ||||||||||||
Net income attributable to Koppers | $ | 12.9 | $ | 13.8 | $ | 89.2 | $ | 63.4 | ||||||||
Earnings (loss) per common share attributable to Koppers | ||||||||||||||||
Basic - | ||||||||||||||||
Continuing operations | $ | 0.62 | $ | 0.67 | $ | 4.28 | $ | 3.05 | ||||||||
Discontinued operations | 0.00 | (0.01) | 0.00 | (0.03) | ||||||||||||
Earnings per basic common share | $ | 0.62 | $ | 0.66 | $ | 4.28 | $ | 3.02 | ||||||||
Diluted - | ||||||||||||||||
Continuing operations | $ | 0.59 | $ | 0.66 | $ | 4.14 | $ | 3.00 | ||||||||
Discontinued operations | 0.00 | (0.01) | 0.00 | (0.02) | ||||||||||||
Earnings per diluted common share | $ | 0.59 | $ | 0.65 | $ | 4.14 | $ | 2.98 | ||||||||
Weighted average shares outstanding (in thousands): | ||||||||||||||||
Basic | 20,826 | 20,839 | 20,835 | 20,977 | ||||||||||||
Diluted | 21,687 | 21,224 | 21,539 | 21,313 | ||||||||||||
KOPPERS HOLDINGS INC. UNAUDITED CONSOLIDATED BALANCE SHEET (Dollars in millions, except share and per share amounts) | ||||||||
December 31, | December 31, | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 66.5 | $ | 33.3 | ||||
Accounts receivable, net of allowance of | 202.4 | 215.7 | ||||||
Inventories, net | 395.7 | 355.7 | ||||||
Derivative contracts | 7.1 | 3.1 | ||||||
Other current assets | 27.3 | 29.0 | ||||||
Total current assets | 699.0 | 636.8 | ||||||
Property, plant and equipment, net | 631.7 | 557.3 | ||||||
Operating lease right-of-use assets | 90.5 | 86.3 | ||||||
Goodwill | 294.4 | 294.0 | ||||||
Intangible assets, net | 102.2 | 116.1 | ||||||
Deferred tax assets | 10.4 | 11.7 | ||||||
Other assets | 7.3 | 9.2 | ||||||
Total assets | $ | 1,835.5 | $ | 1,711.4 | ||||
Liabilities | ||||||||
Accounts payable | $ | 202.9 | $ | 207.4 | ||||
Accrued liabilities | 95.1 | 96.1 | ||||||
Current operating lease liabilities | 22.9 | 20.5 | ||||||
Current maturities of long-term debt | 5.0 | 0.0 | ||||||
Total current liabilities | 325.9 | 324.0 | ||||||
Long-term debt | 835.4 | 817.7 | ||||||
Accrued post-retirement benefits | 31.6 | 34.7 | ||||||
Deferred tax liabilities | 25.9 | 21.5 | ||||||
Operating lease liabilities | 67.4 | 66.3 | ||||||
Other long-term liabilities | 46.3 | 44.2 | ||||||
Total liabilities | 1,332.5 | 1,308.4 | ||||||
Commitments and contingent liabilities | ||||||||
Equity | ||||||||
Senior Convertible Preferred Stock, | 0.0 | 0.0 | ||||||
Common Stock, | 0.3 | 0.2 | ||||||
Additional paid-in capital | 291.1 | 263.9 | ||||||
Retained earnings | 444.0 | 360.2 | ||||||
Accumulated other comprehensive loss | (88.8) | (97.3) | ||||||
Treasury stock, at cost, 4,302,996 and 3,783,901 shares | (147.7) | (127.6) | ||||||
Total Koppers shareholders' equity | 498.9 | 399.4 | ||||||
Noncontrolling interests | 4.1 | 3.6 | ||||||
Total equity | 503.0 | 403.0 | ||||||
Total liabilities and equity | $ | 1,835.5 | $ | 1,711.4 | ||||
KOPPERS HOLDINGS INC. UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS (Dollars in millions) | ||||||||
Year Ended December 31, | ||||||||
2023 | 2022 | |||||||
Cash provided by (used in) operating activities: | ||||||||
Net income | $ | 89.8 | $ | 63.2 | ||||
Adjustments to reconcile net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 57.0 | 56.1 | ||||||
Stock-based compensation | 17.3 | 13.2 | ||||||
Change in derivative contracts | (0.9) | 6.5 | ||||||
Non-cash interest expense | 4.9 | 2.8 | ||||||
(Gain) on sale of assets and investment | (2.0) | (2.6) | ||||||
Insurance proceeds | (1.7) | (0.8) | ||||||
Deferred income taxes | 5.7 | 2.7 | ||||||
Change in other liabilities | 0.2 | 1.1 | ||||||
Other - net | 2.2 | 5.3 | ||||||
Changes in working capital: | ||||||||
Accounts receivable | 14.9 | (32.3) | ||||||
Inventories | (37.2) | (41.8) | ||||||
Accounts payable | (0.4) | 32.7 | ||||||
Accrued liabilities | (2.4) | (7.3) | ||||||
Other working capital | (1.3) | 3.5 | ||||||
Net cash provided by operating activities | 146.1 | 102.3 | ||||||
Cash (used in) provided by investing activities: | ||||||||
Capital expenditures | (120.5) | (105.3) | ||||||
Insurance proceeds | 1.7 | 0.8 | ||||||
Acquisitions | 0.0 | (14.7) | ||||||
Net cash provided by sale of discontinued operations and asset sales | 2.8 | 4.4 | ||||||
Net cash used in investing activities | (116.0) | (114.8) | ||||||
Cash provided by (used in) financing activities: | ||||||||
Borrowings of credit facility | 1,032.5 | 444.4 | ||||||
Repayments of credit facility | (896.4) | (406.1) | ||||||
Borrowings of long-term debt | 388.0 | 0.0 | ||||||
Repayments of long-term debt | (501.0) | (2.0) | ||||||
Issuances of Common Stock | 9.9 | 1.1 | ||||||
Repurchases of Common Stock | (20.1) | (23.6) | ||||||
Payment of debt issuance costs | (5.3) | (4.8) | ||||||
Dividends paid | (5.0) | (4.2) | ||||||
Net cash provided by financing activities | 2.6 | 4.8 | ||||||
Effect of exchange rate changes on cash | 0.5 | (4.5) | ||||||
Net increase (decrease) in cash and cash equivalents | 33.2 | (12.2) | ||||||
Cash and cash equivalents at beginning of period | 33.3 | 45.5 | ||||||
Cash and cash equivalents at end of period | $ | 66.5 | $ | 33.3 | ||||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||
Right-of-use assets obtained in exchange for new operating lease | $ | 26.6 | $ | 12.1 | ||||
Accrued capital expenditures | 5.6 | 11.1 | ||||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid during the year for: | ||||||||
Interest | $ | 70.0 | $ | 41.3 | ||||
Income taxes | 34.3 | 20.7 | ||||||
UNAUDITED SEGMENT INFORMATION (Dollars in millions) | ||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net sales: | ||||||||||||||||
Railroad and Utility Products and Services | $ | 216.4 | $ | 193.0 | $ | 897.9 | $ | 788.3 | ||||||||
Performance Chemicals | 164.4 | 140.8 | 671.6 | 579.9 | ||||||||||||
Carbon Materials and Chemicals | 132.4 | 148.8 | 584.7 | 612.3 | ||||||||||||
Total | $ | 513.2 | $ | 482.6 | $ | 2,154.2 | $ | 1,980.5 | ||||||||
Adjusted EBITDA(1): | ||||||||||||||||
Railroad and Utility Products and Services | $ | 20.7 | $ | 13.3 | $ | 84.0 | $ | 53.6 | ||||||||
Performance Chemicals | 29.4 | 17.6 | 123.1 | 75.5 | ||||||||||||
Carbon Materials and Chemicals | 3.8 | 21.2 | 49.3 | 99.0 | ||||||||||||
Total | $ | 53.9 | $ | 52.1 | $ | 256.4 | $ | 228.1 | ||||||||
Adjusted EBITDA margin(2): | ||||||||||||||||
Railroad and Utility Products and Services | 9.6 | % | 6.9 | % | 9.4 | % | 6.8 | % | ||||||||
Performance Chemicals | 17.9 | % | 12.5 | % | 18.3 | % | 13.0 | % | ||||||||
Carbon Materials and Chemicals | 2.9 | % | 14.2 | % | 8.4 | % | 16.2 | % | ||||||||
(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 December 31, | Year Ended December 31, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net income | $ | 13.0 | $ | 13.8 | $ | 89.8 | $ | 63.2 | ||||||||
Interest expense | 17.7 | 12.5 | 71.0 | 44.8 | ||||||||||||
Depreciation and amortization | 14.3 | 11.6 | 57.0 | 56.1 | ||||||||||||
Income tax provision | 6.7 | 1.9 | 34.8 | 31.6 | ||||||||||||
Discontinued operations | 0.0 | 0.1 | 0.0 | 0.6 | ||||||||||||
Sub-total | 51.7 | 39.9 | 252.6 | 196.3 | ||||||||||||
Adjustments to arrive at adjusted EBITDA: | ||||||||||||||||
LIFO expense(1) | 2.7 | 12.8 | 6.0 | 25.6 | ||||||||||||
Impairment, restructuring and plant closure costs | 0.0 | 0.8 | 0.1 | 1.1 | ||||||||||||
(Gain) on sale of assets | 0.0 | 0.0 | (1.8) | (2.5) | ||||||||||||
Mark-to-market commodity hedging (gains) losses | (0.5) | (2.5) | (0.5) | 6.5 | ||||||||||||
Inventory adjustment | 0.0 | 1.1 | 0.0 | 1.1 | ||||||||||||
Total adjustments | 2.2 | 12.2 | 3.8 | 31.8 | ||||||||||||
Adjusted EBITDA | $ | 53.9 | $ | 52.1 | $ | 256.4 | $ | 228.1 | ||||||||
(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 December 31, | Year Ended December 31, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net income attributable to Koppers | $ | 12.9 | $ | 13.8 | $ | 89.2 | $ | 63.4 | ||||||||
Adjustments to arrive at adjusted net income: | ||||||||||||||||
LIFO expense(1) | 2.7 | 12.8 | 6.0 | 25.6 | ||||||||||||
Impairment, restructuring and plant closure costs | 0.0 | 0.8 | 0.1 | 1.0 | ||||||||||||
(Gain) on sale of assets | 0.0 | 0.0 | (1.8) | (2.5) | ||||||||||||
Mark-to-market commodity hedging (gains) losses | (0.5) | (2.5) | (0.5) | 6.5 | ||||||||||||
Inventory adjustment | 0.0 | 1.1 | 0.0 | 1.1 | ||||||||||||
Write-off of debt issuance costs | 0.0 | 0.0 | 2.0 | 0.4 | ||||||||||||
Total adjustments | 2.2 | 12.2 | 5.8 | 32.1 | ||||||||||||
Adjustments to income tax and noncontrolling interests: | ||||||||||||||||
Income tax on adjustments to pre-tax income | (0.6) | (3.1) | (1.8) | (7.6) | ||||||||||||
Deferred tax adjustments | 0.0 | 0.0 | 0.2 | 0.0 | ||||||||||||
Noncontrolling interest | 0.0 | 0.0 | 0.6 | (0.2) | ||||||||||||
Effect on adjusted net income | 1.6 | 9.1 | 4.8 | 24.3 | ||||||||||||
Adjusted net income including discontinued operations | 14.5 | 22.9 | 94.0 | 87.7 | ||||||||||||
Loss on sale of discontinued operations | 0.0 | 0.1 | 0.0 | 0.6 | ||||||||||||
Adjusted net income attributable to Koppers | $ | 14.5 | $ | 23.0 | $ | 94.0 | $ | 88.3 | ||||||||
Diluted weighted average common shares outstanding | 21,687 | 21,224 | 21,539 | 21,313 | ||||||||||||
Earnings per share: | ||||||||||||||||
Diluted earnings per share - continuing operations | $ | 0.59 | $ | 0.66 | $ | 4.14 | $ | 3.00 | ||||||||
Diluted earnings per share - net income | $ | 0.59 | $ | 0.65 | $ | 4.14 | $ | 2.98 | ||||||||
Adjusted earnings per share | $ | 0.67 | $ | 1.09 | $ | 4.36 | $ | 4.14 | ||||||||
(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 | ||
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SOURCE KOPPERS HOLDINGS INC.
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