Record Fourth-Quarter Sales of $513.2 Million vs. $482.6
Million in Prior Year Quarter
Record Year Sales of $2.15 Billion vs. $1.98
Billion in Prior Year
Record Operating Profit of $195.2 Million, 25 percent higher than previous
record
PITTSBURGH, Feb. 28,
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 fourth quarter of 2023 of
$12.9 million, or $0.59 per diluted share, compared to $13.8 million, or $0.65 per diluted share, in the prior year
quarter.
Adjusted net income attributable to Koppers and adjusted
earnings per share (EPS) were $14.5
million and $0.67 per share
for the fourth quarter of 2023, compared to $23.0 million and $1.09 per share in the prior year quarter.
Adjusted earnings before interest, taxes, depreciation and
amortization (EBITDA) for the fourth quarter of 2023 were
$53.9 million, compared with
$52.1 million in the prior year
quarter.
Consolidated sales of $513.2
million increased by $30.6
million, or 6.3 percent, compared with $482.6 million in the prior year quarter.
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, an increase of $23.4 million, or 12.1 percent, compared to
$193.0 million in the prior year
quarter. The sales increase was largely due to $16.0 million of pricing increases across
multiple markets, particularly for crossties and utility poles in
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, or 9.6 percent,
compared with $13.3 million, or 6.9
percent, in the prior year quarter. Profitability increased due
primarily to net sales price increases and improved plant
utilization, which more than offset higher raw material and
operating costs and increased selling, general, and administrative
expenses. The domestic utility pole business achieved
fourth-quarter records in operating profit and adjusted EBITDA,
which contributed to the strong results.
- PC delivered sales of $164.4
million, an increase of $23.6
million, or 16.8 percent, compared to sales of $140.8 million in the prior year quarter.
Excluding a favorable foreign currency impact of $0.4 million, sales increased by $23.2 million, or 16.4 percent, from the prior
year quarter. The year-over-year sales growth resulted from global
price increases of $15.1 million, or
10.7 percent, particularly in the Americas, for copper-based
preservatives. Volumes increased by 6.0 percent globally, including
in the Americas, primarily for copper-based preservatives. As a
result of these price and volume increases, adjusted EBITDA was
$29.4 million, or 17.9 percent,
compared with $17.6 million, or 12.5
percent, in the prior year quarter. These increases were slightly
offset by higher raw material costs and increased selling, general,
and administrative expenses.
- Sales for CMC of $132.4 million
decreased by $16.4 million, or 11.0
percent, compared to sales of $148.8
million in the prior year quarter. Excluding a favorable
foreign currency impact of $2.4
million, sales decreased by $18.9
million, or 12.7 percent, from the prior year quarter. The
sales decline was driven by reduced market pricing, with
$25.5 million of lower sales prices
across most products, including carbon pitch, where prices were
down 24.3 percent globally, partly offset by higher carbon pitch
volumes. Adjusted EBITDA for the fourth quarter was $3.8 million, or 2.9 percent, compared with
$21.2 million, or 14.2 percent, in
the prior year quarter. The year-over-year profitability decrease
was due to lower prices and a $2.8
million bad debt reserve, partly offset by reduced raw
material costs and increased volumes, particularly in Europe.
2023 Financial Performance
- Consolidated sales of $2.15
billion, a record year, increased $174 million, or 8.8 percent, compared to
$1.98 billion in the prior year.
- RUPS delivered a record $897.9
million in sales for the year, an increase of $109.6 million, or 13.9 percent, compared to
sales of $788.3 million in the prior
year. Adjusted EBITDA was $84.0
million, or 9.4 percent, compared with $53.6 million, or 6.8 percent, in the prior
year.
- PC reported $671.6 million in
sales for the year, an increase of $91.7
million, or 15.8 percent, compared to sales of $579.9 million in the prior year. Adjusted EBITDA
was $123.1 million, or 18.3 percent,
compared with $75.5 million, or 13.0
percent, in the prior year.
- Sales for CMC, totaling $584.7
million, decreased by $27.6
million, or 4.5 percent, compared to sales of $612.3 million in the prior year. Adjusted EBITDA
was $49.3 million, or 8.4 percent,
compared with $99.0 million, or 16.2
percent, in the prior year.
- Net income attributable to Koppers was $89.2 million, compared with $63.4 million in the prior year. Adjusted net
income attributable to Koppers was $94.0
million, compared with $88.3
million in the prior year. Adjusted EBITDA was $256.4 million, compared with $228.1 million, in the prior year.
- Diluted EPS was $4.14, compared
with $2.98 per share in the prior
year. Adjusted EPS was $4.36,
compared with $4.14 for the prior
year.
- Operating cash flows were $146.1
million, a record year, compared with $102.3 million in the prior year.
- Capital expenditures for the year ended December 31, 2023, were $120.5 million, compared with $105.3 million for the prior year period. Net of
insurance proceeds and cash provided from asset sales, capital
expenditures were $116.0 million for
the current year period, compared with $100.1 million for the prior year period.
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 $2.25 billion,
compared with $2.15 billion in
2023. Adjusted EBITDA is anticipated to be approximately
$275 million in 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 $4.60 to $4.80 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 fourth quarter 2024. An
estimated $25 million of funding will
be required when this is completed, which will impact operating
cash flow.
Koppers anticipates capital expenditures of approximately
$100 million in 2024, including
capitalized interest, with approximately $29
million allocated to discretionary projects.
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 Leesville,
Louisiana, facility coming online to feed the Texas pole market; and the benefits of a full
year of cost efficiencies from our North
Little Rock, Arkansas, treating facility. We
anticipate softer results in early 2024 versus strong comps from
the first quarter of 2023 as we emerge from the bottom of the
carbon markets cycle and recover from the intense winter storm
activity in the U.S. which affected much of Koppers and our
customers' operating network. I expect that as the year
progresses, we will make up any ground lost in the first quarter
and deliver another year of record performance."
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 the United
States and Canada, or
412-902-6774 for international, Conference ID number 10184851.
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
1964782. The recording will be available for replay through
May 28, 2024.
About Koppers
Koppers, with corporate headquarters in Pittsburgh, Pennsylvania, is an integrated
global provider of treated wood products, wood treatment chemicals,
and carbon compounds. Our products and services are used in a
variety of niche applications in a diverse range of end markets,
including the railroad, specialty chemical, utility, residential
lumber, agriculture, aluminum, steel, rubber, and construction
industries. We serve our customers through a comprehensive
global manufacturing and distribution network, with facilities
located in North America,
South America, Australasia, and
Europe. The stock of Koppers Holdings Inc. is publicly traded
on the New York Stock Exchange under the symbol "KOP."
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
December 31,
|
|
|
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
common shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
2023
|
|
|
December 31,
2022
|
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
66.5
|
|
|
$
|
33.3
|
|
Accounts receivable,
net of allowance of $6.5 and $3.5
|
|
|
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, $0.01 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;
25,163,238 and 24,547,000 shares issued
|
|
|
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
liabilities
|
|
$
|
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
(in thousands)
|
|
|
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
|
|
|
McGuireQT@koppers.com
|
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SOURCE KOPPERS HOLDINGS INC.