Koppers Reports Third Quarter 2024 Results; Reaffirms 2024 Outlook
Koppers Holdings reported third quarter 2024 results with record sales of $554.3 million, up 0.7% from $550.4 million in the prior year. Net income was $22.8 million ($1.09 per diluted share), compared to $26.3 million ($1.22) last year. Adjusted EPS increased to $1.37 from $1.32. The Railroad and Utility Products segment achieved record quarterly sales, Performance Chemicals saw improved profitability despite lower sales, and Carbon Materials showed increased profitability despite price decreases. The company reaffirmed its 2024 outlook, expecting sales of approximately $2.1 billion and adjusted EBITDA of $270-275 million.
Koppers Holdings ha riportato i risultati del terzo trimestre 2024, con vendite record di 554,3 milioni di dollari, in aumento dello 0,7% rispetto ai 550,4 milioni di dollari dell'anno precedente. L'utile netto è stato di 22,8 milioni di dollari (1,09 dollari per azione diluita), rispetto ai 26,3 milioni di dollari (1,22) dell'anno scorso. EPS rettificato è aumentato a 1,37 dollari rispetto a 1,32 dollari. Il segmento Prodotti Ferroviari e Utilità ha raggiunto vendite trimestrali record, i Prodotti Chimici per Performance hanno visto un miglioramento della redditività nonostante un calo delle vendite, e i Materiali Carboniosi hanno mostrato un aumento della redditività nonostante il calo dei prezzi. L'azienda ha confermato le sue previsioni per il 2024, prevedendo vendite di circa 2,1 miliardi di dollari e un EBITDA rettificato di 270-275 milioni di dollari.
Koppers Holdings presentó los resultados del tercer trimestre de 2024, con ventas récord de 554.3 millones de dólares, un aumento del 0.7% respecto a 550.4 millones de dólares del año anterior. La utilidad neta fue de 22.8 millones de dólares (1.09 dólares por acción diluida), en comparación con 26.3 millones de dólares (1.22) el año pasado. El EPS ajustado aumentó a 1.37 dólares desde 1.32 dólares. El segmento de Productos Ferroviarios y de Utilidad alcanzó ventas trimestrales récord, los Productos Químicos de Rendimiento vieron una mejora en la rentabilidad a pesar de la disminución de ventas, y los Materiales de Carbono mostraron un aumento en la rentabilidad a pesar de la disminución de precios. La empresa reafirmó sus pronósticos para 2024, esperando ventas de aproximadamente 2.1 mil millones de dólares y un EBITDA ajustado de 270-275 millones de dólares.
Koppers Holdings는 2024년 3분기 실적을 발표하며 554.3백만 달러의 기록적인 매출을 기록하였고, 이는 작년 550.4백만 달러에 비해 0.7% 증가한 수치입니다. 순이익은 2280만 달러(희석주당 1.09달러)로, 작년 2630만 달러(1.22달러)와 비교됩니다. 조정 EPS는 1.37달러로 증가하였으며, 이는 1.32달러에서 상승한 수치입니다. 철도 및 유틸리티 제품 부문은 분기 매출 기록을 달성했으며, 성능 화학 제품은 매출 감소에도 불구하고 수익성이 개선되었고, 탄소 재료는 가격 하락에도 불구하고 수익성이 증가했습니다. 회사는 2024년 전망을 재확인하며 약 21억 달러의 매출과 2억7000만~2억7500만 달러의 조정 EBITDA를 기대하고 있습니다.
Koppers Holdings a annoncé les résultats du troisième trimestre 2024, avec des ventes record de 554,3 millions de dollars, en hausse de 0,7 % par rapport à 550,4 millions de dollars l'année précédente. Le bénéfice net s'est élevé à 22,8 millions de dollars (1,09 dollar par action diluée), contre 26,3 millions de dollars (1,22) l'année dernière. L'EPS ajusté a augmenté à 1,37 dollar par rapport à 1,32 dollar. Le segment Produits Ferroviaires et Utilitaires a atteint des ventes trimestrielles record, les Produits Chimiques de Performance ont vu leur rentabilité s'améliorer malgré une baisse des ventes, et les Matériaux Carbone ont montré une rentabilité accrue malgré la baisse des prix. L'entreprise a réaffirmé ses prévisions pour 2024, anticipant des ventes d'environ 2,1 milliards de dollars et un EBITDA ajusté de 270 à 275 millions de dollars.
Koppers Holdings hat die Ergebnisse des dritten Quartals 2024 vorgestellt, mit Rekordverkäufen von 554,3 Millionen Dollar, was einem Anstieg von 0,7% im Vergleich zu 550,4 Millionen Dollar im Vorjahr entspricht. Der Nettogewinn betrug 22,8 Millionen Dollar (1,09 Dollar pro verwässerter Aktie), im Vergleich zu 26,3 Millionen Dollar (1,22) im Vorjahr. Der bereinigte EPS stieg auf 1,37 Dollar von 1,32 Dollar. Das Segment Eisenbahn- und Versorgungsprodukte erzielte Rekordverkäufe im Quartal, die Leistungschemikalien verzeichneten eine verbesserte Rentabilität trotz niedrigeren Verkäufen, und die Kohlenstoffmaterialien wiesen eine erhöhte Rentabilität trotz Preisrückgängen auf. Das Unternehmen bestätigte seine Aussichten für 2024 und erwartet einen Umsatz von etwa 2,1 Milliarden Dollar und ein bereinigtes EBITDA von 270-275 Millionen Dollar.
- Record Q3 sales of $554.3 million, up 0.7% year-over-year
- Adjusted EPS increased to $1.37 from $1.32 year-over-year
- Performance Chemicals segment profitability improved to 22.6% from 19.6%
- Railroad segment achieved record quarterly sales of $248.1 million
- Company reaffirmed 2024 guidance with adjusted EBITDA of $270-275 million
- Net income decreased to $22.8 million from $26.3 million year-over-year
- Diluted EPS declined to $1.09 from $1.22 in prior year quarter
- CMC segment sales decreased 5.5% to $129.5 million
- Carbon pitch prices down approximately 20% globally
- Expected 2024 sales of $2.1 billion lower than 2023's $2.15 billion
Insights
Koppers delivered a mixed but generally positive Q3 2024 performance. Record quarterly sales of
The company's segment performance reveals important market dynamics. The
Record Third Quarter Sales of
Third 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 third-quarter sales, but profitability remained flat as higher costs and decreased activity in the crosstie recovery business offset sales increases and improved plant utilization.
The Performance Chemicals (PC) segment reported a slight decline in sales, as sales to Brown Wood are now considered affiliate sales, while profitability increased year-over-year as a result of lower costs, which were favorably impacted by timing.
The Carbon Materials and Chemicals (CMC) segment saw increased profitability despite experiencing lower sales prices, primarily driven by reduced raw material costs, lower selling, general and administrative costs, and higher volumes of carbon pitch and phthalic anhydride.
Chief Executive Officer Leroy Ball said, "Once again, I am pleased with the solid performance delivered by our global Koppers team in the third quarter, as evidenced by our strong financial results and solid safety performance. On the plus side, we generated improved sequential profitability in our railroad and carbon materials businesses, primarily driven by cost reduction initiatives undertaken earlier this year. However, we continued to experience reduced volumes year-over-year in our legacy utility pole business and lower sequential profitability in Performance Chemicals as a result of higher raw material costs. As always, the balance of our diversified business portfolio and our team's ongoing commitment to solving everyday challenges demonstrated its value, keeping us on track to meet our 2024 goals."
Third Quarter Financial Performance
- RUPS delivered record third-quarter sales of
$248.1 million $14.1 million $234.0 million $10.0 million Australia , and increased activity in the railroad bridge services business, partly offset by lower activity in the crosstie recovery business. Sales in the domestic utility pole business increased 11.0 percent, primarily attributable to Brown Wood. Adjusted EBITDA for the third quarter of 2024 was$24.7 million $25.1 million $3.4 million $14.1 million - PC generated third quarter sales of
$176.7 million $2.7 million $179.4 million $40.0 million $35.2 million - CMC reported third quarter sales of
$129.5 million $7.5 million $137.0 million $1.8 million $9.3 million $16.6 million Europe . The decreases were partly offset by volume increases for carbon pitch and phthalic anhydride. Adjusted EBITDA for the third quarter of 2024 was$12.7 million $10.4 million $9.2 million Europe , lower selling, general and administrative costs, and higher volumes of carbon pitch and phthalic anhydride. These favorable drivers were partly offset by price decreases and higher operating expenses. - Capital expenditures for the nine months ended September 30, 2024, were
$58.8 million $91.3 million $55.0 million $88.3 million
2024 Outlook
After considering the current competitive environment, 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, consistent with the adjusted tax rate in 2023. Accordingly, 2024 adjusted EPS is forecasted to be in the range of
Koppers now expects operating cash flows of approximately
Koppers continues to anticipate capital expenditures of approximately
Commenting on the forecast, Mr. Ball said, "As 2024 winds down, I am gratified by our team's resilience in the face of adversity. To be posting new highs across a number of important metrics in a challenging market environment is a testament to our grit and determination. Looking beyond this year, I believe we remain on track for continued growth in profitability and free cash flow, despite an intensely competitive environment. To ensure that improvement, during the fourth quarter, we will begin taking measures to streamline our organization to support an increasingly cost-conscious customer base. I believe these actions will help to extend our decade-long growth in profitability and support a higher margin profile by leveraging a smaller global team highly focused on serving customer preferences."
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.
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, cost reduction efforts, 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 delays in timing or changes to expected benefits from cost reduction efforts; 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 | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Net sales | $ | 554.3 | $ | 550.4 | $ | 1,615.1 | $ | 1,641.0 | ||||||||
Cost of sales | 433.1 | 439.0 | 1,276.1 | 1,313.0 | ||||||||||||
Depreciation and amortization | 17.9 | 14.3 | 52.2 | 42.7 | ||||||||||||
Selling, general and administrative expenses | 43.9 | 43.8 | 135.3 | 129.1 | ||||||||||||
Loss (gain) on sale of assets | 9.7 | 0.0 | 9.7 | (1.8) | ||||||||||||
Operating profit | 49.7 | 53.3 | 141.8 | 158.0 | ||||||||||||
Other income, net | 0.1 | 0.2 | 0.1 | 0.2 | ||||||||||||
Interest expense | 20.2 | 19.0 | 57.9 | 53.3 | ||||||||||||
Income before income taxes | 29.6 | 34.5 | 84.0 | 104.9 | ||||||||||||
Income tax expense | 10.6 | 8.3 | 25.2 | 28.1 | ||||||||||||
Net income | 19.0 | 26.2 | 58.8 | 76.8 | ||||||||||||
Net (loss) income attributable to noncontrolling interests | (3.8) | (0.1) | (3.8) | 0.5 | ||||||||||||
Net income attributable to Koppers | $ | 22.8 | $ | 26.3 | $ | 62.6 | $ | 76.3 | ||||||||
Earnings per common share attributable to Koppers | ||||||||||||||||
Basic | $ | 1.12 | $ | 1.27 | $ | 3.01 | $ | 3.66 | ||||||||
Diluted | $ | 1.09 | $ | 1.22 | $ | 2.92 | $ | 3.54 | ||||||||
Weighted average shares outstanding (in thousands): | ||||||||||||||||
Basic | 20,409 | 20,828 | 20,790 | 20,838 | ||||||||||||
Diluted | 20,961 | 21,659 | 21,448 | 21,546 | ||||||||||||
KOPPERS HOLDINGS INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET (Dollars in millions, except share and per share amounts) | ||||||||
September 30, | December 31, | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 44.5 | $ | 66.5 | ||||
Accounts receivable, net of allowance of | 238.0 | 202.4 | ||||||
Inventories, net | 405.9 | 395.7 | ||||||
Derivative contracts | 12.7 | 7.1 | ||||||
Other current assets | 29.0 | 27.3 | ||||||
Total current assets | 730.1 | 699.0 | ||||||
Property, plant and equipment, net of accumulated depreciation | 673.1 | 631.7 | ||||||
Goodwill | 319.8 | 294.4 | ||||||
Intangible assets, net | 123.2 | 102.2 | ||||||
Operating lease right-of-use assets | 91.9 | 90.5 | ||||||
Deferred tax assets | 9.9 | 10.4 | ||||||
Other assets | 11.6 | 7.3 | ||||||
Total assets | $ | 1,959.6 | $ | 1,835.5 | ||||
Liabilities | ||||||||
Accounts payable | $ | 169.5 | $ | 202.9 | ||||
Accrued liabilities | 86.8 | 95.1 | ||||||
Current operating lease liabilities | 25.7 | 22.9 | ||||||
Current maturities of long-term debt | 5.0 | 5.0 | ||||||
Total current liabilities | 287.0 | 325.9 | ||||||
Long-term debt | 975.9 | 835.4 | ||||||
Operating lease liabilities | 66.0 | 67.4 | ||||||
Accrued postretirement benefits | 25.3 | 31.6 | ||||||
Deferred tax liabilities | 27.3 | 25.9 | ||||||
Other long-term liabilities | 45.5 | 46.3 | ||||||
Total liabilities | 1,427.0 | 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 | 311.7 | 291.1 | ||||||
Retained earnings | 502.0 | 444.0 | ||||||
Accumulated other comprehensive loss | (84.5) | (88.8) | ||||||
Treasury stock, at cost, 5,450,278 and 4,302,996 shares | (197.2) | (147.7) | ||||||
Total Koppers shareholders' equity | 532.3 | 498.9 | ||||||
Noncontrolling interests | 0.3 | 4.1 | ||||||
Total equity | 532.6 | 503.0 | ||||||
Total liabilities and equity | $ | 1,959.6 | $ | 1,835.5 | ||||
KOPPERS HOLDINGS INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Dollars in millions) | ||||||||
Nine Months Ended | ||||||||
September 30, | ||||||||
2024 | 2023 | |||||||
Cash provided by (used in) operating activities: | ||||||||
Net income | $ | 58.8 | $ | 76.8 | ||||
Adjustments to reconcile net cash used in operating activities: | ||||||||
Depreciation and amortization | 52.2 | 42.7 | ||||||
Stock-based compensation | 16.1 | 13.0 | ||||||
Change in derivative contracts | (3.0) | 0.0 | ||||||
Non-cash interest expense | 2.5 | 4.1 | ||||||
Loss (gain) on sale of assets | 9.4 | (2.0) | ||||||
Insurance proceeds | (1.0) | (0.8) | ||||||
Deferred income taxes | 1.0 | 1.6 | ||||||
Change in other liabilities | (7.8) | 0.6 | ||||||
Other - net | 0.3 | (1.0) | ||||||
Changes in working capital: | ||||||||
Accounts receivable | (32.1) | (27.5) | ||||||
Inventories | 4.7 | (16.8) | ||||||
Accounts payable | (31.3) | 4.3 | ||||||
Accrued liabilities | (19.8) | (10.0) | ||||||
Other working capital | (5.3) | (5.5) | ||||||
Net cash provided by operating activities | 44.7 | 79.5 | ||||||
Cash (used in) provided by investing activities: | ||||||||
Capital expenditures | (58.8) | (91.3) | ||||||
Insurance proceeds received | 1.0 | 0.8 | ||||||
Acquisitions | (99.4) | 0.0 | ||||||
Cash provided by sale of assets | 2.8 | 2.2 | ||||||
Net cash (used in) investing activities | (154.4) | (88.3) | ||||||
Cash provided by (used in) financing activities: | ||||||||
Borrowings of credit facility | 599.1 | 909.8 | ||||||
Repayments of credit facility | (555.7) | (749.9) | ||||||
Borrowings of long-term debt | 100.0 | 388.0 | ||||||
Repayments of long-term debt | (4.5) | (501.0) | ||||||
Issuances of Common Stock | 4.5 | 3.2 | ||||||
Repurchases of Common Stock | (49.5) | (9.8) | ||||||
Payment of debt issuance costs | (0.9) | (4.9) | ||||||
Dividends paid | (4.6) | (3.8) | ||||||
Net cash provided by financing activities | 88.4 | 31.6 | ||||||
Effect of exchange rate changes on cash | (0.7) | (2.6) | ||||||
Net (decrease) increase in cash and cash equivalents | (22.0) | 20.2 | ||||||
Cash and cash equivalents at beginning of period | 66.5 | 33.3 | ||||||
Cash and cash equivalents at end of period | $ | 44.5 | $ | 53.5 | ||||
UNAUDITED SEGMENT INFORMATION (Dollars in millions) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Net sales: | ||||||||||||||||
Railroad and Utility Products and Services | $ | 248.1 | $ | 234.0 | $ | 727.1 | $ | 681.5 | ||||||||
Performance Chemicals | 176.7 | 179.4 | 503.7 | 507.2 | ||||||||||||
Carbon Materials and Chemicals | 129.5 | 137.0 | 384.3 | 452.3 | ||||||||||||
Total | $ | 554.3 | $ | 550.4 | $ | 1,615.1 | $ | 1,641.0 | ||||||||
Adjusted EBITDA(1): | ||||||||||||||||
Railroad and Utility Products and Services | $ | 24.7 | $ | 25.1 | $ | 64.8 | $ | 63.2 | ||||||||
Performance Chemicals | 40.0 | 35.2 | 114.1 | 93.8 | ||||||||||||
Carbon Materials and Chemicals | 12.7 | 10.4 | 27.5 | 45.5 | ||||||||||||
Total | $ | 77.4 | $ | 70.7 | $ | 206.4 | $ | 202.5 | ||||||||
Adjusted EBITDA margin as a percentage of GAAP sales: | ||||||||||||||||
Railroad and Utility Products and Services | 10.0 | % | 10.7 | % | 8.9 | % | 9.3 | % | ||||||||
Performance Chemicals | 22.6 | % | 19.6 | % | 22.7 | % | 18.5 | % | ||||||||
Carbon Materials and Chemicals | 9.8 | % | 7.6 | % | 7.2 | % | 10.1 | % | ||||||||
(1) | The table below describes the adjustments to arrive at adjusted EBITDA. |
UNAUDITED RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (Dollars in millions) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Net income | $ | 19.0 | $ | 26.2 | $ | 58.8 | $ | 76.8 | ||||||||
Interest expense | 20.2 | 19.0 | 57.9 | 53.3 | ||||||||||||
Depreciation and amortization | 17.9 | 14.3 | 52.2 | 42.7 | ||||||||||||
Income tax expense | 10.6 | 8.3 | 25.2 | 28.1 | ||||||||||||
Sub-total | 67.7 | 67.8 | 194.1 | 200.9 | ||||||||||||
Adjustments to arrive at adjusted EBITDA: | ||||||||||||||||
LIFO (benefit) expense(1) | (1.2) | 2.8 | 2.9 | 3.3 | ||||||||||||
Impairment, restructuring and plant closure costs | 0.4 | 0.1 | 0.4 | 0.1 | ||||||||||||
Loss (gain) on sale of assets | 9.7 | 0.0 | 9.7 | (1.8) | ||||||||||||
Mark-to-market commodity hedging gains | 0.0 | 0.0 | (3.0) | 0.0 | ||||||||||||
Acquisition inventory step-up amortization | 0.8 | 0.0 | 2.3 | 0.0 | ||||||||||||
Total adjustments | 9.7 | 2.9 | 12.3 | 1.6 | ||||||||||||
Adjusted EBITDA | $ | 77.4 | $ | 70.7 | $ | 206.4 | $ | 202.5 | ||||||||
(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 | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Net income attributable to Koppers | $ | 22.8 | $ | 26.3 | $ | 62.6 | $ | 76.3 | ||||||||
Adjustments to arrive at adjusted net income: | ||||||||||||||||
LIFO (benefit) expense(1) | (1.2) | 2.8 | 2.9 | 3.3 | ||||||||||||
Impairment, restructuring and plant closure costs | 0.4 | 0.1 | 1.9 | 0.1 | ||||||||||||
Loss (gain) on sale of assets | 9.7 | 0.0 | 9.7 | (1.8) | ||||||||||||
Mark-to-market commodity hedging gains | 0.0 | 0.0 | (3.0) | 0.0 | ||||||||||||
Acquisition inventory step-up amortization | 0.8 | 0.0 | 2.3 | 0.0 | ||||||||||||
Write-off of debt issuance costs | 0.0 | 0.0 | 0.0 | 2.0 | ||||||||||||
Total adjustments | 9.7 | 2.9 | 13.8 | 3.6 | ||||||||||||
Adjustments to income tax and noncontrolling interests: | ||||||||||||||||
Income tax on adjustments to pre-tax income | 0.1 | (0.6) | (1.0) | (1.2) | ||||||||||||
Deferred tax adjustments | 0.0 | 0.0 | 0.0 | 0.2 | ||||||||||||
Noncontrolling interest | (3.9) | 0.0 | (3.9) | 0.6 | ||||||||||||
Effect on adjusted net income | 5.9 | 2.3 | 8.9 | 3.2 | ||||||||||||
Adjusted net income attributable to Koppers | $ | 28.7 | $ | 28.6 | $ | 71.5 | $ | 79.5 | ||||||||
Diluted weighted average common shares outstanding (in | 20,961 | 21,659 | 21,448 | 21,546 | ||||||||||||
Diluted earnings per share | $ | 1.09 | $ | 1.22 | $ | 2.92 | $ | 3.54 | ||||||||
Adjusted earnings per share | $ | 1.37 | $ | 1.32 | $ | 3.34 | $ | 3.69 | ||||||||
(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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