Koppers Reports Second Quarter 2024 Results; Reaffirms 2024 Outlook
Koppers Holdings Inc. (NYSE: KOP) reported second quarter 2024 results with net income of $26.8 million, or $1.25 per diluted share, compared to $24.5 million, or $1.15 per share, in the prior year quarter. Adjusted EPS increased to $1.36 from $1.26. Consolidated sales decreased by 2.4% to $563.2 million. The Railroad and Utility Products and Services (RUPS) segment achieved record-quarter sales, while Performance Chemicals (PC) saw slight declines and Carbon Materials and Chemicals (CMC) experienced softness in demand. Koppers reaffirmed its 2024 outlook, expecting sales of approximately $2.15 billion and adjusted EBITDA between $265 million and $280 million. The company forecasts 2024 adjusted EPS in the range of $4.10 to $4.60 per share.
Koppers Holdings Inc. (NYSE: KOP) ha riportato i risultati del secondo trimestre 2024 con un utile netto di 26,8 milioni di dollari, pari a 1,25 dollari per azione diluita, rispetto ai 24,5 milioni di dollari, o 1,15 dollari per azione, dello stesso trimestre dell'anno precedente. L'EPS rettificato è aumentato a 1,36 dollari rispetto a 1,26 dollari. Le vendite consolidate sono diminuite del 2,4% a 563,2 milioni di dollari. Il segmento Prodotti e Servizi Ferroviari e Utilità (RUPS) ha raggiunto vendite record per il trimestre, mentre i Chimici per Prestazioni (PC) hanno registrato lievi cali e i Materiali e Chimici a base di Carbonio (CMC) hanno visto un indebolimento della domanda. Koppers ha rieffermato le previsioni per il 2024, prevedendo vendite di circa 2,15 miliardi di dollari e un EBITDA rettificato compreso tra 265 milioni e 280 milioni di dollari. L'azienda prevede un EPS rettificato per il 2024 nella fascia di 4,10 a 4,60 dollari per azione.
Koppers Holdings Inc. (NYSE: KOP) reportó los resultados del segundo trimestre de 2024 con una ganancia neta de 26.8 millones de dólares, o 1.25 dólares por acción diluida, en comparación con 24.5 millones de dólares, o 1.15 dólares por acción, en el mismo trimestre del año anterior. El EPS ajustado aumentó a 1.36 dólares desde 1.26 dólares. Las ventas consolidadas disminuyeron en un 2.4% a 563.2 millones de dólares. El segmento de Productos y Servicios Ferroviarios y de Utilidad (RUPS) alcanzó ventas récord en el trimestre, mientras que los Químicos de Rendimiento (PC) vieron ligeras caídas y los Materiales y Químicos de Carbono (CMC) experimentaron una debilidad en la demanda. Koppers reafirmó su pronóstico para 2024, esperando ventas de aproximadamente 2.15 mil millones de dólares y un EBITDA ajustado entre 265 millones y 280 millones de dólares. La empresa prevé un EPS ajustado para 2024 en el rango de 4.10 a 4.60 dólares por acción.
Koppers Holdings Inc. (NYSE: KOP)는 2024년 2분기 실적을 보고하며 순이익이 2,680만 달러, 즉 희석주당 1.25달러라고 발표했습니다. 이는 전년 동기 2,450만 달러, 즉 주당 1.15 달러와 비교됩니다. 조정 EPS는 1.26 달러에서 1.36 달러로 증가했습니다. 통합 매출은 2.4% 감소하여 5억 6,320만 달러에 이릅니다. 철도 및 유틸리티 제품 및 서비스(RUPS) 부문은 기록적인 분기 매출을 달성했으며, 성능 화학물질(PC)은 약간의 감소를 보였고 탄소 소재 및 화학물질(CMC)은 수요 약세를 경험했습니다. Koppers는 2024년 전망을 재확인했습니다, 약 21억 5천만 달러의 매출과 2억 6,500만 달러에서 2억 8,000만 달러 사이의 조정 EBITDA를 예측하고 있습니다. 이 회사는 2024년 조정 EPS가 주당 4.10달러에서 4.60달러 범위에 이를 것으로 예상하고 있습니다.
Koppers Holdings Inc. (NYSE: KOP) a annoncé les résultats du deuxième trimestre 2024 avec un bénéfice net de 26,8 millions de dollars, soit 1,25 dollar par action diluée, comparé à 24,5 millions de dollars, soit 1,15 dollar par action, au cours du trimestre de l'année précédente. Le BPA ajusté a augmenté à 1,36 dollar par rapport à 1,26 dollar. Les ventes consolidées ont diminué de 2,4 % pour atteindre 563,2 millions de dollars. Le secteur des Produits et Services Ferroviaires et Utilitaires (RUPS) a réalisé des ventes record, tandis que les Produits Chimiques de Performance (PC) ont connu de légers recul et les Matériaux et Chimiques à Base de Carbone (CMC) ont ressenti une légère faiblesse de la demande. Koppers a réaffirmé ses prévisions pour 2024, s'attendant à des ventes d'environ 2,15 milliards de dollars et un EBITDA ajusté compris entre 265 millions et 280 millions de dollars. L'entreprise prévoit un BPA ajusté pour 2024 dans une fourchette de 4,10 à 4,60 dollars par action.
Koppers Holdings Inc. (NYSE: KOP) hat die Ergebnisse des zweiten Quartals 2024 berichtet, mit einem Nettogewinn von 26,8 Millionen Dollar oder 1,25 Dollar pro verwässerter Aktie, verglichen mit 24,5 Millionen Dollar oder 1,15 Dollar pro Aktie im entsprechenden Vorjahresquartal. Der bereinigte EPS stieg von 1,26 Dollar auf 1,36 Dollar. Die konsolidierten Verkäufe gingen um 2,4% auf 563,2 Millionen Dollar zurück. Der Bereich Eisenbahn- und Versorgungsprodukte und -dienstleistungen (RUPS) erzielte Rekordverkäufe im Quartal, während die Leistungschemikalien (PC) leichte Rückgänge verzeichneten und die Kohlenstoffmaterialien und -chemikalien (CMC) eine schwache Nachfrage erfuhren. Koppers hat seinen Ausblick für 2024 bekräftigt und erwartet Verkäufe von etwa 2,15 Milliarden Dollar und ein bereinigtes EBITDA zwischen 265 Millionen und 280 Millionen Dollar. Das Unternehmen prognostiziert einen bereinigten EPS für 2024 im Bereich von 4,10 bis 4,60 Dollar pro Aktie.
- Record-quarter sales in the Railroad and Utility Products and Services (RUPS) segment
- Adjusted EPS increased to $1.36 from $1.26 year-over-year
- Performance Chemicals segment profitability improved due to lower costs
- Reaffirmed 2024 outlook with expected adjusted EBITDA of $265-$280 million
- Forecasted 2024 adjusted EPS range of $4.10 to $4.60 per share
- Consolidated sales decreased by 2.4% to $563.2 million
- Carbon Materials and Chemicals segment experienced significant declines in sales and profitability
- Performance Chemicals segment saw a slight decline in sales
- Higher raw material, operating, and SG&A expenses in the RUPS segment
- Reduced demand and lower prices in the CMC segment, especially in Europe
Insights
Koppers' Q2 2024 results show mixed performance across segments. While overall sales decreased by
The company's reaffirmed 2024 outlook, projecting sales of
The resilience of Koppers' residential wood-treatment preservatives business, despite unfavorable industry trends, is noteworthy. This suggests potential market share gains or product differentiation advantages. The record sales in the RUPS segment, driven by pricing increases and volume growth in crossties and utility poles, indicate strong demand in infrastructure-related markets.
However, the significant sales decline in the CMC segment, particularly in Europe, points to broader economic challenges affecting industrial demand. The company's ability to offset some of these headwinds through cost reduction measures demonstrates effective management, but also highlights the importance of diversification across segments and geographies in maintaining overall performance.
Koppers' acquisition of Brown Wood Preserving Company, completed on April 1, 2024, appears to be a strategic move to strengthen its position in the wood treatment market. This vertical integration could potentially lead to cost synergies and improved supply chain control. The company's focus on optimizing its business and progress on strategic pillars indicates a long-term growth orientation.
The planned termination of the U.S. qualified pension plan, targeted for Q1 2025, is a significant financial move. While it will require a
Second Quarter Sales of
Second Quarter Diluted EPS of
Adjusted EPS 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 generated record-quarter sales, but profitability remained flat, as higher costs and a decline in the crosstie recovery business offset top-line increases and improved plant utilization.
The Performance Chemicals (PC) segment saw a slight decline in sales, as sales to Brown Wood are now considered affiliate sales, along with pricing decreases, while profitability benefited from lower costs, some of which related to the timing of copper hedging.
The Carbon Materials and Chemicals (CMC) segment experienced ongoing softness in demand, with sales and profitability significantly impacted by lower prices and reduced volumes for carbon pitch globally.
Chief Executive Officer Leroy Ball said, "All three business segments showed significant sequential improvement in the second quarter, pushing consolidated results to new heights. Performance Chemicals delivered the most improvement, as demand for our residential wood-treatment preservatives continued to be resilient despite unfavorable industry trends. In addition, cost reduction measures across the board helped to offset current market conditions and keep us on track for a strong 2024."
Second Quarter Financial Performance
- RUPS delivered record sales for the quarter of
$253.9 million $19.5 million $234.4 million $0.3 million $19.8 million $12.7 million $9.4 million $22.4 million $22.3 million $3.9 million $13.8 million - PC generated second quarter sales of
$176.9 million $4.0 million $180.9 million $3.5 million Americas , primarily as a result of sales to Brown Wood now being affiliated sales, and pricing decreases globally, partly offset by higher volumes inAustralasia . Adjusted EBITDA for the second quarter of 2024 was$44.3 million $32.3 million - CMC reported second quarter sales of
$132.4 million $29.5 million $161.9 million $0.3 million $29.2 million Europe where sales were down$22.0 million $25.3 million $10.8 million $15.7 million Europe , partly offset by a$16.3 million Europe , and higher volumes of phthalic anhydride. - Capital expenditures for the six months ended June 30, 2024, were
$43.4 million $62.6 million $41.8 million $60.6 million
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 continues to expect operating cash flows of approximately
Koppers continues to anticipate capital expenditures of approximately
Commenting on the forecast, Mr. Ball said, "With second quarter results on par with our expectations, I feel confident in reaffirming our full-year guidance as previously communicated. Although 2024 has been challenging across most of our business lines, our global team has done a great job of managing the controllables, providing a clear line of sight to another year of top performance. Delivering as we have amid some tough near-term dynamics gives me confidence that as markets improve, we will be poised to further capitalize on future growth opportunities."
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 (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.
For more information, visit: www.koppers.com. Inquiries from the media should be directed to Ms. Julia Millman at MillmanJR@koppers.com or 412-227-2114. 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. | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Net sales | $ | 563.2 | $ | 577.2 | $ | 1,060.8 | $ | 1,090.6 | ||||||||
Cost of sales | 441.6 | 464.7 | 843.0 | 874.0 | ||||||||||||
Depreciation and amortization | 18.2 | 14.4 | 34.3 | 28.4 | ||||||||||||
Selling, general and administrative expenses | 45.9 | 43.7 | 91.4 | 85.3 | ||||||||||||
(Gain) on sale of assets | 0.0 | 0.0 | 0.0 | (1.8) | ||||||||||||
Operating profit | 57.5 | 54.4 | 92.1 | 104.7 | ||||||||||||
Other income, net | 0.1 | 0.2 | 0.0 | 0.0 | ||||||||||||
Interest expense | 20.6 | 20.3 | 37.7 | 34.3 | ||||||||||||
Income before income taxes | 37.0 | 34.3 | 54.4 | 70.4 | ||||||||||||
Income tax provision | 10.2 | 9.9 | 14.6 | 19.8 | ||||||||||||
Net income | 26.8 | 24.4 | 39.8 | 50.6 | ||||||||||||
Net income (loss) attributable to noncontrolling interests | 0.0 | (0.1) | 0.0 | 0.6 | ||||||||||||
Net income attributable to Koppers | $ | 26.8 | $ | 24.5 | $ | 39.8 | $ | 50.0 | ||||||||
Earnings per common share attributable to Koppers | ||||||||||||||||
Basic | $ | 1.29 | $ | 1.17 | $ | 1.90 | $ | 2.40 | ||||||||
Diluted | $ | 1.25 | $ | 1.15 | $ | 1.83 | $ | 2.34 | ||||||||
Weighted average shares outstanding (in thousands): | ||||||||||||||||
Basic | 20,901 | 20,843 | 20,983 | 20,842 | ||||||||||||
Diluted | 21,559 | 21,351 | 21,709 | 21,366 | ||||||||||||
KOPPERS HOLDINGS INC. | ||||||||
June 30, | December 31, | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 48.9 | $ | 66.5 | ||||
Accounts receivable, net of allowance of | 224.1 | 202.4 | ||||||
Inventories, net | 402.3 | 395.7 | ||||||
Derivative contracts | 16.0 | 7.1 | ||||||
Other current assets | 30.1 | 27.3 | ||||||
Total current assets | 721.4 | 699.0 | ||||||
Property, plant and equipment, net of accumulated depreciation | 671.3 | 631.7 | ||||||
Goodwill | 319.0 | 294.4 | ||||||
Intangible assets, net | 127.2 | 102.2 | ||||||
Operating lease right-of-use assets | 89.0 | 90.5 | ||||||
Deferred tax assets | 9.4 | 10.4 | ||||||
Other assets | 10.7 | 7.3 | ||||||
Total assets | $ | 1,948.0 | $ | 1,835.5 | ||||
Liabilities | ||||||||
Accounts payable | $ | 184.0 | $ | 202.9 | ||||
Accrued liabilities | 72.1 | 95.1 | ||||||
Current operating lease liabilities | 23.8 | 22.9 | ||||||
Current maturities of long-term debt | 5.0 | 5.0 | ||||||
Total current liabilities | 284.9 | 325.9 | ||||||
Long-term debt | 986.7 | 835.4 | ||||||
Operating lease liabilities | 65.2 | 67.4 | ||||||
Accrued postretirement benefits | 27.6 | 31.6 | ||||||
Deferred tax liabilities | 28.9 | 25.9 | ||||||
Other long-term liabilities | 41.4 | 46.3 | ||||||
Total liabilities | 1,434.7 | 1,332.5 | ||||||
Commitments and contingent liabilities | ||||||||
Equity | ||||||||
Senior Convertible Preferred Stock, | 0.0 | 0.0 | ||||||
Common Stock, | 0.3 | 0.3 | ||||||
Additional paid-in capital | 306.1 | 291.1 | ||||||
Retained earnings | 480.7 | 444.0 | ||||||
Accumulated other comprehensive loss | (91.1) | (88.8) | ||||||
Treasury stock, at cost, 5,176,306 and 4,302,996 shares | (186.8) | (147.7) | ||||||
Total Koppers shareholders' equity | 509.2 | 498.9 | ||||||
Noncontrolling interests | 4.1 | 4.1 | ||||||
Total equity | 513.3 | 503.0 | ||||||
Total liabilities and equity | $ | 1,948.0 | $ | 1,835.5 | ||||
KOPPERS HOLDINGS INC. | ||||||||
Six Months Ended June 30, | ||||||||
2024 | 2023 | |||||||
Cash provided by (used in) operating activities: | ||||||||
Net income | $ | 39.8 | $ | 50.6 | ||||
Adjustments to reconcile net cash used in operating activities: | ||||||||
Depreciation and amortization | 34.3 | 28.4 | ||||||
Stock-based compensation | 10.9 | 7.8 | ||||||
Change in derivative contracts | (3.0) | 0.0 | ||||||
Non-cash interest expense | 1.6 | 3.3 | ||||||
(Gain) on sale of assets | (0.1) | (1.8) | ||||||
Insurance proceeds | (1.0) | (0.1) | ||||||
Deferred income taxes | 0.5 | 0.9 | ||||||
Change in other liabilities | (5.6) | (0.9) | ||||||
Other - net | 0.8 | 0.7 | ||||||
Changes in working capital: | ||||||||
Accounts receivable | (20.7) | (41.8) | ||||||
Inventories | 3.1 | (17.2) | ||||||
Accounts payable | (17.1) | (7.5) | ||||||
Accrued liabilities | (25.0) | (18.7) | ||||||
Other working capital | (3.6) | (5.8) | ||||||
Net cash provided by (used in) operating activities | 14.9 | (2.1) | ||||||
Cash (used in) provided by investing activities: | ||||||||
Capital expenditures | (43.4) | (62.6) | ||||||
Insurance proceeds received | 1.0 | 0.1 | ||||||
Acquisitions | (99.8) | 0.0 | ||||||
Cash provided by sale of assets | 0.6 | 1.9 | ||||||
Net cash (used in) investing activities | (141.6) | (60.6) | ||||||
Cash provided by (used in) financing activities: | ||||||||
Borrowings of credit facility | 475.7 | 764.3 | ||||||
Repayments of credit facility | (421.9) | (561.2) | ||||||
Borrowings of long-term debt | 100.0 | 388.0 | ||||||
Repayments of long-term debt | (3.2) | (501.0) | ||||||
Issuances of Common Stock | 4.1 | 1.8 | ||||||
Repurchases of Common Stock | (39.1) | (5.9) | ||||||
Payment of debt issuance costs | (0.9) | (4.9) | ||||||
Dividends paid | (3.1) | (2.5) | ||||||
Net cash provided by financing activities | 111.6 | 78.6 | ||||||
Effect of exchange rate changes on cash | (2.5) | (1.0) | ||||||
Net (decrease) increase in cash and cash equivalents | (17.6) | 14.9 | ||||||
Cash and cash equivalents at beginning of period | 66.5 | 33.3 | ||||||
Cash and cash equivalents at end of period | $ | 48.9 | $ | 48.2 | ||||
UNAUDITED SEGMENT INFORMATION | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Net sales: | ||||||||||||||||
Railroad and Utility Products and Services | $ | 253.9 | $ | 234.4 | $ | 479.0 | $ | 447.5 | ||||||||
Performance Chemicals | 176.9 | 180.9 | 327.0 | 327.8 | ||||||||||||
Carbon Materials and Chemicals | 132.4 | 161.9 | 254.8 | 315.3 | ||||||||||||
Total | $ | 563.2 | $ | 577.2 | $ | 1,060.8 | $ | 1,090.6 | ||||||||
Adjusted EBITDA(1): | ||||||||||||||||
Railroad and Utility Products and Services | $ | 22.4 | $ | 22.3 | $ | 40.1 | $ | 38.1 | ||||||||
Performance Chemicals | 44.3 | 32.3 | 74.1 | 58.6 | ||||||||||||
Carbon Materials and Chemicals | 10.8 | 15.7 | 14.8 | 35.1 | ||||||||||||
Total | $ | 77.5 | $ | 70.3 | $ | 129.0 | $ | 131.8 | ||||||||
Adjusted EBITDA margin as a percentage of GAAP sales: | ||||||||||||||||
Railroad and Utility Products and Services | 8.8 | % | 9.5 | % | 8.4 | % | 8.5 | % | ||||||||
Performance Chemicals | 25.0 | % | 17.9 | % | 22.7 | % | 17.9 | % | ||||||||
Carbon Materials and Chemicals | 8.2 | % | 9.7 | % | 5.8 | % | 11.1 | % | ||||||||
(1) The table below describes the adjustments to arrive at adjusted EBITDA. |
UNAUDITED RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Net income | $ | 26.8 | $ | 24.4 | $ | 39.8 | $ | 50.6 | ||||||||
Interest expense | 20.6 | 20.3 | 37.7 | 34.3 | ||||||||||||
Depreciation and amortization | 18.2 | 14.4 | 34.3 | 28.4 | ||||||||||||
Income tax provision | 10.2 | 9.9 | 14.6 | 19.8 | ||||||||||||
Sub-total | 75.8 | 69.0 | 126.4 | 133.1 | ||||||||||||
Adjustments to arrive at adjusted EBITDA: | ||||||||||||||||
LIFO expense(1) | 1.5 | 0.2 | 4.1 | 0.4 | ||||||||||||
Impairment, restructuring and plant closure costs | 0.0 | 0.0 | 0.0 | 0.1 | ||||||||||||
(Gain) on sale of assets | 0.0 | 0.0 | 0.0 | (1.8) | ||||||||||||
Mark-to-market commodity hedging (gains) losses | (1.3) | 1.1 | (3.0) | 0.0 | ||||||||||||
Acquisition inventory step-up amortization | 1.5 | 0.0 | 1.5 | 0.0 | ||||||||||||
Total adjustments | 1.7 | 1.3 | 2.6 | (1.3) | ||||||||||||
Adjusted EBITDA | $ | 77.5 | $ | 70.3 | $ | 129.0 | $ | 131.8 | ||||||||
(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 | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Net income attributable to Koppers | $ | 26.8 | $ | 24.5 | $ | 39.8 | $ | 50.0 | ||||||||
Adjustments to arrive at adjusted net income: | ||||||||||||||||
LIFO expense(1) | 1.5 | 0.2 | 4.1 | 0.4 | ||||||||||||
Impairment, restructuring and plant closure costs | 1.5 | 0.0 | 1.5 | 0.1 | ||||||||||||
(Gain) on sale of assets | 0.0 | 0.0 | 0.0 | (1.8) | ||||||||||||
Mark-to-market commodity hedging (gains) losses | (1.3) | 1.1 | (3.0) | 0.0 | ||||||||||||
Acquisition inventory step-up amortization | 1.5 | 0.0 | 1.5 | 0.0 | ||||||||||||
Write-off of debt issuance costs | 0.0 | 2.0 | 0.0 | 2.0 | ||||||||||||
Total adjustments | 3.2 | 3.3 | 4.1 | 0.7 | ||||||||||||
Adjustments to income tax and noncontrolling interests: | ||||||||||||||||
Income tax on adjustments to pre-tax income | (0.8) | (0.8) | (1.1) | (0.6) | ||||||||||||
Deferred tax adjustments | 0.0 | 0.0 | 0.0 | 0.2 | ||||||||||||
Noncontrolling interest | 0.0 | (0.1) | 0.0 | 0.6 | ||||||||||||
Effect on adjusted net income | 2.4 | 2.4 | 3.0 | 0.9 | ||||||||||||
Adjusted net income attributable to Koppers | $ | 29.2 | $ | 26.9 | $ | 42.8 | $ | 50.9 | ||||||||
Diluted weighted average common shares outstanding (in thousands) | 21,559 | 21,351 | 21,709 | 21,366 | ||||||||||||
Diluted earnings per share | $ | 1.25 | $ | 1.15 | $ | 1.83 | $ | 2.34 | ||||||||
Adjusted earnings per share | $ | 1.36 | $ | 1.26 | $ | 1.97 | $ | 2.38 | ||||||||
(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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