PITTSBURGH, May 20, 2020 /PRNewswire/ -- Koppers
Holdings Inc. (NYSE: KOP), an integrated global provider of treated
wood products, wood treatment chemicals and carbon compounds, today
reported its regularly scheduled monthly business update and will
conduct a conference call and related webcast at 11:00 a.m. Eastern Time today. This is part
of an ongoing series to share recent developments and highlight
strategic initiatives to the investment community. The
company plans to issue its next monthly business update on
June 17, 2020.
President and CEO Leroy Ball
said, "We have received positive feedback since announcing our
intention to provide monthly updates for the foreseeable future as
the world continues to deal with the direct and indirect effects of
the COVID-19 pandemic. This enhanced communication model is
designed to provide more clarity and transparency to our ability to
navigate the current business environment while also regularly
updating current and prospective shareholders of the developing
trends that could impact our sales, profitability and cash flow
either positively or negatively in both the near and
mid-term. While we continue to deal with rapidly changing
impacts to parts of our business brought on by the pandemic, our
overall business, on balance, has continued to remain on solid
footing."
The benefits of Koppers Zero Harm culture have never proven more
important as employees throughout the organization are taking care
of each other with great success. Maintaining the health and
safety of employees has allowed Koppers to maintain critical
business continuity in order to provide essential products and
services. To date, approximately 7 percent of global
employees tested or self-quarantined for a period of time with less
than 1 percent of employees currently under self-quarantine.
Currently, all the company's continuing operations are running
since the facility in Auckland, New
Zealand resumed operations on April
28, 2020.
April Sales by Business
Segment
For April 2020, consolidated sales
were $135.8 million compared to
$152.2 million in the prior year
period, representing a decrease of $16.4
million, or 10.8 percent. The decrease was due
primarily to lower sales from Carbon Materials and Chemicals (CMC)
and Performance Chemicals (PC), partially offset by higher sales
from Railroad and Utility Products and Services (RUPS). Sales
for the month were negatively affected by softer demand in
materials and chemicals brought on by the halting of major
economies around the world, particularly those outside of the
United States. In the meantime, the industrial wood treating
business and related chemicals continued to generate strong volumes
as did residential wood treatment preservatives in the United States.
- Sales for RUPS of $71.5 million
increased by $6.0 million, or 9.2
percent, compared to sales of $65.5
million in the prior year month. The sales increase was
primarily due to higher volumes of untreated crossties to Class I
customers and higher volumes of treated crossties for commercial
railroads as well as increased demand for utility poles.
- Sales for PC of $38.0 million
decreased by $2.1 million, or 5.2
percent, compared to sales of $40.1
million in the prior year month. The year-over-year decrease
was primarily due to the temporary shutdown in New Zealand and generally lower volumes in
overseas markets, partially offset by strong demand in the U.S. and
Australia.
- Sales for CMC totaling $26.3
million decreased by $20.3
million, or 43.6 percent, compared to sales of $46.6 million in the prior year month. The
year-over-year decrease was driven by weak markets in all
geographies, particularly in Europe.
- Capital expenditures for April
2020 were $3.6 million,
compared with $3.1 million in
April 2019. For the year-to-date
period ended April 30, 2020, capital
expenditures were $14.3 million
compared with $14.1 million for the
prior year period.
Mr. Ball commented, "In a normal business environment, April's
sales numbers would be disappointing. In the current
environment, however, I am actually heartened that sales finished
the month in line with and not below our expectations. If we
experience similar dynamics in May, our chances of successfully
managing through the worst period of the pandemic improve for the
second quarter. Beyond that, it will depend upon whether the
steel, aluminum, and oil markets stabilize and the U.S. demand for
residential treated wood does not decline precipitously due to
changes in discretionary spending brought on by the severe rate of
unemployment."
Beginning in 2020, in accordance with generally accepted
accounting principles, results of Koppers (Jiangsu) Carbon Chemical Company Limited
(KJCC) are classified as discontinued operations for the current
year as well as the comparable period in 2019 due to the pending
divestiture. Accordingly, the unaudited information for 2019
regarding segment sales and operating profit have been restated to
exclude KJCC. In addition, the company's non-GAAP reporting of
earnings before interest, taxes, depreciation and amortization and
adjusted earnings per share also exclude KJCC.
Pending Divestiture of Koppers (Jiangsu) Carbon Chemical Company
Limited
In February 2020, Koppers
announced that it entered into a definitive agreement to sell
Koppers (Jiangsu) Carbon Chemical
Company Limited (KJCC), a 75-percent owned China coal tar distillation business with the
remaining 25 percent owned by Yizhou Group Company Limited.
The KJCC facility, located in Pizhou City in Jiangsu Province, was shut down in the fourth
quarter of 2019 for planned maintenance and remained closed through
much of March 2020 due to concerns
related to COVID-19. The plant resumed operation in late
March and suspended production again in early May to accommodate a
previously scheduled maintenance turnaround at a major customer's
facility. The KJCC plant is scheduled to resume operations in
June 2020.
Since receiving approval from the State Administration for
Market Regulation of China (SAMR)
on April 29, 2020, approximately 45
days early, the timeline to close on the sale has improved to as
soon as July 2020, ahead of the
original expected date of mid-August 2020. Koppers expects to
realize approximately $65 million of
net cash, after taxes and expenses, and plans to apply the cash
proceeds toward debt reduction.
Debt and Liquidity
As of April 30, 2020, Koppers was
on target to be within its financial covenant metrics at the next
remeasurement date of June 30,
2020. Likewise, the company expects to maintain an
appropriate level of liquidity to operate its business without
undue hardship. As of March 31,
2020, Koppers had $185 million
of liquidity. The company continues to intently focus on
raising and conserving cash in all aspects of its operations as
part of driving additional cushion in its financial covenants.
Investor Conference Call and Webcast
Koppers management will conduct a conference call this morning,
beginning at 11:00 a.m. Eastern Time
to discuss its business update for April 2020. 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 by
dialing 1-833-366-1128 in the United
States and Canada, or
1-412-902-6774 for international, Conference ID number 10144364.
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 online at:
https://services.choruscall.com/links/koppers200520.html.
(Due to the length of this URL, it may be necessary to copy and
paste this hyperlink into your internet browser's URL address
field.)
An audio replay will be available approximately two hours after
the completion of the call at 1-877-344-7529 for U.S. toll free,
1-855-669-9658 for Canada toll
free, or 1-412-317-0088 for international, Conference ID number
10144364. The recording will be available for replay through
August 22, 2020.
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. Including our joint ventures, we serve our
customers through a comprehensive global manufacturing and
distribution network, with facilities located in North America, South
America, Australasia, China
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 us on the Web: www.koppers.com.
Questions concerning investor relations should be directed to
Michael Zugay at 412-227-2231 or
Quynh McGuire at 412-227-2049.
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 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; the length and
extent of economic contraction as a result of the coronavirus
(COVID-19) pandemic; disruption in the U.S. and global financial
markets; 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; potential
impairment of our goodwill and/or long-lived assets; demand for
Koppers goods and services; competitive conditions; interest rate
and foreign currency rate fluctuations; availability and costs of
key raw materials; 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.
BASIS OF PRESENTATION
Beginning in 2020, results of Koppers (Jiangsu) Carbon Chemical Company Limited
(KJCC) are classified as discontinued operations for the current
year as well as the comparable period in 2019 due to the company's
pending divestiture. The following tables set forth certain sales
and operating data, net of all intersegment transactions, for the
company's businesses, excluding the results of KJCC for the periods
indicated in 2019.
UNAUDITED SEGMENT
INFORMATION
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
|
March
31,
2019
|
|
|
June
30,
2019
|
|
|
September
30,
2019
|
|
|
December
31,
2019
|
|
|
December
31,
2019
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RUPS
|
|
$
|
166.1
|
|
|
$
|
199.1
|
|
|
$
|
198.8
|
|
|
$
|
169.5
|
|
|
$
|
733.5
|
|
PC
|
|
|
99.0
|
|
|
|
120.8
|
|
|
|
123.9
|
|
|
|
104.6
|
|
|
|
448.3
|
|
CMC
|
|
|
111.8
|
|
|
|
124.0
|
|
|
|
111.4
|
|
|
|
108.0
|
|
|
|
455.2
|
|
Total
|
|
$
|
376.9
|
|
|
$
|
443.9
|
|
|
$
|
434.1
|
|
|
$
|
382.1
|
|
|
$
|
1,637.0
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RUPS
|
|
$
|
14.3
|
|
|
$
|
18.9
|
|
|
$
|
16.9
|
|
|
$
|
10.2
|
|
|
$
|
60.2
|
|
PC
|
|
|
15.5
|
|
|
|
21.0
|
|
|
|
17.8
|
|
|
|
14.4
|
|
|
|
68.6
|
|
CMC
|
|
|
11.5
|
|
|
|
23.8
|
|
|
|
22.6
|
|
|
|
15.6
|
|
|
|
73.5
|
|
Corporate
|
|
|
(0.5)
|
|
|
|
(0.4)
|
|
|
|
(0.2)
|
|
|
|
(0.4)
|
|
|
|
(1.2)
|
|
Total
|
|
$
|
40.8
|
|
|
$
|
63.3
|
|
|
$
|
57.1
|
|
|
$
|
39.8
|
|
|
$
|
201.1
|
|
Adjusted EBITDA
%:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RUPS
|
|
|
8.6
|
%
|
|
|
9.5
|
%
|
|
|
8.5
|
%
|
|
|
6.0
|
%
|
|
|
8.2
|
%
|
PC
|
|
|
15.7
|
%
|
|
|
17.4
|
%
|
|
|
14.4
|
%
|
|
|
13.8
|
%
|
|
|
15.3
|
%
|
CMC
|
|
|
10.3
|
%
|
|
|
19.2
|
%
|
|
|
20.3
|
%
|
|
|
14.4
|
%
|
|
|
16.1
|
%
|
Total
|
|
|
10.8
|
%
|
|
|
14.3
|
%
|
|
|
13.2
|
%
|
|
|
10.4
|
%
|
|
|
12.3
|
%
|
UNAUDITED
RECONCILIATION OF OPERATING PROFIT TO EBITDA AND ADJUSTED
EBITDA
|
(In
millions)
|
|
|
|
Three Months Ended
March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
|
|
|
|
|
|
|
|
RUPS
|
|
|
PC
|
|
|
CMC
|
|
|
Unallocated
|
|
|
Consolidated
|
|
Operating profit
(loss)
|
|
$
|
8.7
|
|
|
$
|
12.8
|
|
|
$
|
3.3
|
|
|
$
|
(0.5)
|
|
|
$
|
24.3
|
|
Other income
(loss)
|
|
|
(0.2)
|
|
|
|
0.9
|
|
|
|
(0.1)
|
|
|
|
0.0
|
|
|
|
0.6
|
|
Depreciation and
amortization
|
|
|
4.8
|
|
|
|
4.9
|
|
|
|
3.9
|
|
|
|
0.0
|
|
|
|
13.6
|
|
Depreciation in
impairment and restructuring charges
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.2
|
|
|
|
0.0
|
|
|
|
0.2
|
|
EBITDA
|
|
$
|
13.3
|
|
|
$
|
18.6
|
|
|
$
|
7.3
|
|
|
$
|
(0.5)
|
|
|
$
|
38.7
|
|
Unusual items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CMC
restructuring
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
4.2
|
|
|
|
0.0
|
|
|
|
4.2
|
|
Non-cash LIFO
expense
|
|
|
1.0
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
1.0
|
|
Mark-to-market
commodity hedging
|
|
|
0.0
|
|
|
|
(3.1)
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
(3.1)
|
|
Adjusted
EBITDA
|
|
$
|
14.3
|
|
|
$
|
15.5
|
|
|
$
|
11.5
|
|
|
$
|
(0.5)
|
|
|
$
|
40.8
|
|
Adj. EBITDA % of
Consolidated Adj. EBITDA (excluding
corporate unallocated)
|
|
|
34.6
|
%
|
|
|
37.5
|
%
|
|
|
27.8
|
%
|
|
|
|
|
|
|
|
|
UNAUDITED
RECONCILIATION OF OPERATING PROFIT TO EBITDA AND ADJUSTED
EBITDA
|
(In
millions)
|
|
|
|
Three Months Ended
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
|
|
|
|
|
|
|
|
RUPS
|
|
|
PC
|
|
|
CMC
|
|
|
Unallocated
|
|
|
Consolidated
|
|
Operating profit
(loss)
|
|
$
|
11.8
|
|
|
$
|
14.0
|
|
|
$
|
13.0
|
|
|
$
|
(0.6)
|
|
|
$
|
38.2
|
|
Other income
(loss)
|
|
|
(0.3)
|
|
|
|
0.5
|
|
|
|
(0.4)
|
|
|
|
0.2
|
|
|
|
0.0
|
|
Depreciation and
amortization
|
|
|
4.8
|
|
|
|
4.6
|
|
|
|
3.1
|
|
|
|
0.0
|
|
|
|
12.5
|
|
Depreciation in
impairment and restructuring charges
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.9
|
|
|
|
0.0
|
|
|
|
0.9
|
|
EBITDA
|
|
$
|
16.3
|
|
|
$
|
19.1
|
|
|
$
|
16.6
|
|
|
$
|
(0.4)
|
|
|
$
|
51.6
|
|
Unusual items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CMC
restructuring
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
6.9
|
|
|
|
0.0
|
|
|
|
6.9
|
|
Non-cash LIFO
expense
|
|
|
2.4
|
|
|
|
0.0
|
|
|
|
0.3
|
|
|
|
0.0
|
|
|
|
2.7
|
|
Mark-to-market
commodity hedging
|
|
|
0.0
|
|
|
|
1.9
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
1.9
|
|
RUPS treating plant
closures
|
|
|
0.2
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.2
|
|
Adjusted
EBITDA
|
|
$
|
18.9
|
|
|
$
|
21.0
|
|
|
$
|
23.8
|
|
|
$
|
(0.4)
|
|
|
$
|
63.3
|
|
Adj. EBITDA % of
Consolidated Adj. EBITDA (excluding
corporate unallocated)
|
|
|
29.7
|
%
|
|
|
33.0
|
%
|
|
|
37.4
|
%
|
|
|
|
|
|
|
|
|
UNAUDITED
RECONCILIATION OF OPERATING PROFIT TO EBITDA AND ADJUSTED
EBITDA
|
(In
millions)
|
|
|
|
Three Months Ended
September 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
|
|
|
|
|
|
|
|
RUPS
|
|
|
PC
|
|
|
CMC
|
|
|
Unallocated
|
|
|
Consolidated
|
|
Operating profit
(loss)
|
|
$
|
11.3
|
|
|
$
|
11.7
|
|
|
$
|
14.0
|
|
|
$
|
(0.5)
|
|
|
$
|
36.5
|
|
Other income
(loss)
|
|
|
(0.6)
|
|
|
|
0.3
|
|
|
|
0.0
|
|
|
|
0.3
|
|
|
|
0.0
|
|
Depreciation and
amortization
|
|
|
4.8
|
|
|
|
4.5
|
|
|
|
4.0
|
|
|
|
0.0
|
|
|
|
13.3
|
|
Depreciation in
impairment and restructuring charges
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
1.3
|
|
|
|
0.0
|
|
|
|
1.3
|
|
EBITDA
|
|
$
|
15.5
|
|
|
$
|
16.5
|
|
|
$
|
19.3
|
|
|
$
|
(0.2)
|
|
|
$
|
51.1
|
|
Unusual items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CMC
restructuring
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
3.3
|
|
|
|
0.0
|
|
|
|
3.3
|
|
Mark-to-market
commodity hedging
|
|
|
0.0
|
|
|
|
1.3
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
1.3
|
|
Non-cash LIFO
expense
|
|
|
1.2
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
1.2
|
|
RUPS treating plant
closures
|
|
|
0.2
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.2
|
|
Adjusted
EBITDA
|
|
$
|
16.9
|
|
|
$
|
17.8
|
|
|
$
|
22.6
|
|
|
$
|
(0.2)
|
|
|
$
|
57.1
|
|
Adj. EBITDA % of
Consolidated Adj. EBITDA (excluding
corporate unallocated)
|
|
|
29.5
|
%
|
|
|
31.1
|
%
|
|
|
39.4
|
%
|
|
|
|
|
|
|
|
|
UNAUDITED
RECONCILIATION OF OPERATING PROFIT TO EBITDA AND ADJUSTED
EBITDA
|
(In
millions)
|
|
|
|
Three Months Ended
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
|
|
|
|
|
|
|
|
RUPS
|
|
|
PC
|
|
|
CMC
|
|
|
Unallocated
|
|
|
Consolidated
|
|
Operating profit
(loss)
|
|
$
|
4.0
|
|
|
$
|
13.6
|
|
|
$
|
8.9
|
|
|
$
|
(0.5)
|
|
|
$
|
26.0
|
|
Other income
(loss)
|
|
|
0.0
|
|
|
|
0.4
|
|
|
|
(0.5)
|
|
|
|
0.2
|
|
|
|
0.1
|
|
Depreciation and
amortization
|
|
|
5.0
|
|
|
|
4.3
|
|
|
|
2.5
|
|
|
|
0.0
|
|
|
|
11.8
|
|
Depreciation in
impairment and restructuring charges
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.8
|
|
|
|
0.0
|
|
|
|
0.8
|
|
EBITDA
|
|
$
|
9.0
|
|
|
$
|
18.3
|
|
|
$
|
11.7
|
|
|
$
|
(0.3)
|
|
|
$
|
38.7
|
|
Unusual items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CMC
restructuring
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
5.4
|
|
|
|
0.0
|
|
|
|
5.4
|
|
Non-cash LIFO
(benefit) expense
|
|
|
1.1
|
|
|
|
0.0
|
|
|
|
(1.5)
|
|
|
|
0.0
|
|
|
|
(0.4)
|
|
Mark-to-market
commodity hedging
|
|
|
0.0
|
|
|
|
(4.0)
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
(4.0)
|
|
Adjusted
EBITDA
|
|
$
|
10.1
|
|
|
$
|
14.3
|
|
|
$
|
15.6
|
|
|
$
|
(0.3)
|
|
|
$
|
39.7
|
|
Adj. EBITDA % of
Consolidated Adj. EBITDA (excluding
corporate unallocated)
|
|
|
25.3
|
%
|
|
|
35.8
|
%
|
|
|
39.0
|
%
|
|
|
|
|
|
|
|
|
UNAUDITED
RECONCILIATION OF OPERATING PROFIT TO EBITDA AND ADJUSTED
EBITDA
|
(In
millions)
|
|
|
|
Year Ended
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
|
|
|
|
|
|
|
|
RUPS
|
|
|
PC
|
|
|
CMC
|
|
|
Unallocated
|
|
|
Consolidated
|
|
Operating profit
(loss)
|
|
$
|
35.8
|
|
|
$
|
52.1
|
|
|
$
|
39.2
|
|
|
$
|
(2.1)
|
|
|
$
|
125.0
|
|
Other income
(loss)
|
|
|
(1.1)
|
|
|
|
2.2
|
|
|
|
(1.4)
|
|
|
|
0.9
|
|
|
|
0.6
|
|
Depreciation and
amortization
|
|
|
19.4
|
|
|
|
18.3
|
|
|
|
13.5
|
|
|
|
0.0
|
|
|
|
51.2
|
|
Depreciation in
impairment and restructuring charges
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
3.4
|
|
|
|
0.0
|
|
|
|
3.4
|
|
EBITDA
|
|
$
|
54.1
|
|
|
$
|
72.6
|
|
|
$
|
54.7
|
|
|
$
|
(1.2)
|
|
|
$
|
180.2
|
|
Unusual items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CMC
restructuring
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
19.8
|
|
|
|
0.0
|
|
|
|
19.8
|
|
Non-cash LIFO expense
(benefit)
|
|
|
5.7
|
|
|
|
0.0
|
|
|
|
(1.2)
|
|
|
|
0.0
|
|
|
|
4.5
|
|
RUPS treating plant
closures
|
|
|
0.5
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.5
|
|
Mark-to-market
commodity hedging
|
|
|
0.0
|
|
|
|
(3.9)
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
(3.9)
|
|
Adjusted
EBITDA
|
|
$
|
60.3
|
|
|
$
|
68.7
|
|
|
$
|
73.3
|
|
|
$
|
(1.2)
|
|
|
$
|
201.1
|
|
Adj. EBITDA % of
Consolidated Adj. EBITDA (excluding
corporate unallocated)
|
|
|
29.8
|
%
|
|
|
34.0
|
%
|
|
|
36.2
|
%
|
|
|
|
|
|
|
|
|
UNAUDITED
RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED
EBITDA
|
(In
millions)
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
|
March
31,
2019
|
|
|
June
30,
2019
|
|
|
September
30,
2019
|
|
|
December
31,
2019
|
|
|
December
31,
2019
|
|
Net income
|
|
$
|
12.5
|
|
|
$
|
14.4
|
|
|
$
|
20.4
|
|
|
$
|
20.1
|
|
|
$
|
67.4
|
|
Interest
expense
|
|
|
16.2
|
|
|
|
15.9
|
|
|
|
15.5
|
|
|
|
14.3
|
|
|
|
61.9
|
|
Depreciation and
amortization
|
|
|
13.6
|
|
|
|
12.6
|
|
|
|
13.3
|
|
|
|
11.9
|
|
|
|
51.4
|
|
Depreciation in
impairment and
restructuring charges
|
|
|
0.2
|
|
|
|
0.9
|
|
|
|
1.3
|
|
|
|
0.8
|
|
|
|
3.2
|
|
Income
taxes
|
|
|
(1.2)
|
|
|
|
8.0
|
|
|
|
2.9
|
|
|
|
(9.7)
|
|
|
|
0.0
|
|
(Income) loss from
discontinued
operations
|
|
|
(2.7)
|
|
|
|
(0.1)
|
|
|
|
(2.3)
|
|
|
|
1.4
|
|
|
|
(3.7)
|
|
EBITDA
|
|
|
38.6
|
|
|
|
51.7
|
|
|
|
51.1
|
|
|
|
38.8
|
|
|
|
180.2
|
|
Unusual items
impacting net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment,
restructuring and plant closure costs
|
|
|
4.3
|
|
|
|
7.2
|
|
|
|
3.5
|
|
|
|
5.4
|
|
|
|
20.4
|
|
Non-cash LIFO expense
(benefit)
|
|
|
1.0
|
|
|
|
2.6
|
|
|
|
1.2
|
|
|
|
(0.4)
|
|
|
|
4.4
|
|
Mark-to-market
commodity hedging
|
|
|
(3.1)
|
|
|
|
1.8
|
|
|
|
1.3
|
|
|
|
(3.9)
|
|
|
|
(3.9)
|
|
Total
adjustments
|
|
|
2.2
|
|
|
|
11.6
|
|
|
|
6.0
|
|
|
|
1.1
|
|
|
|
20.9
|
|
Adjusted
EBITDA
|
|
$
|
40.8
|
|
|
$
|
63.3
|
|
|
$
|
57.1
|
|
|
$
|
39.9
|
|
|
$
|
201.1
|
|
UNAUDITED
RECONCILIATION OF NET INCOME ATTRIBUTABLE TO KOPPERS AND ADJUSTED
NET INCOME
|
(In
millions)
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
|
March
31,
2019
|
|
|
June
30,
2019
|
|
|
September
30,
2019
|
|
|
December
31,
2019
|
|
|
December
31,
2019
|
|
Net income
attributable to Koppers
|
|
$
|
11.6
|
|
|
$
|
14.7
|
|
|
$
|
19.8
|
|
|
$
|
20.6
|
|
|
$
|
66.6
|
|
Unusual items
impacting net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment,
restructuring and plant closure costs
|
|
|
5.9
|
|
|
|
8.4
|
|
|
|
5.9
|
|
|
|
5.0
|
|
|
|
25.3
|
|
Non-cash LIFO expense
(benefit)
|
|
|
1.1
|
|
|
|
2.7
|
|
|
|
1.2
|
|
|
|
(0.4)
|
|
|
|
4.5
|
|
Mark-to-market
commodity hedging
|
|
|
(3.1)
|
|
|
|
1.9
|
|
|
|
1.3
|
|
|
|
(3.9)
|
|
|
|
(4.0)
|
|
Total
adjustments
|
|
|
3.9
|
|
|
|
13.0
|
|
|
|
8.4
|
|
|
|
0.7
|
|
|
|
25.8
|
|
Adjustments to income
tax and noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax on
adjustments to pre-tax income
|
|
|
(2.3)
|
|
|
|
(3.2)
|
|
|
|
(2.1)
|
|
|
|
(15.1)
|
|
|
|
(22.7)
|
|
Noncontrolling
interests
|
|
|
0.9
|
|
|
|
(0.3)
|
|
|
|
0.6
|
|
|
|
(0.4)
|
|
|
|
0.8
|
|
Effect on adjusted net
income
|
|
|
2.5
|
|
|
|
9.5
|
|
|
|
6.9
|
|
|
|
(14.8)
|
|
|
|
3.9
|
|
Adjusted net income
including discontinued operations
|
|
|
14.1
|
|
|
|
24.2
|
|
|
|
26.7
|
|
|
|
5.8
|
|
|
|
70.5
|
|
(Income) loss from
discontinued operations
|
|
|
(2.7)
|
|
|
|
(0.1)
|
|
|
|
(2.3)
|
|
|
|
1.4
|
|
|
|
(3.7)
|
|
Adjusted net income
attributable to Koppers
|
|
$
|
11.4
|
|
|
$
|
24.1
|
|
|
$
|
24.4
|
|
|
$
|
7.2
|
|
|
$
|
66.8
|
|
UNAUDITED
RECONCILIATION OF DILUTED EARNINGS PER SHARE AND
|
ADJUSTED EARNINGS
PER SHARE
|
(In millions
except share amounts)
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
|
March
31,
2019
|
|
|
June
30,
2019
|
|
|
September
30,
2019
|
|
|
December
31,
2019
|
|
|
December
31,
2019
|
|
Net income
attributable to Koppers
|
|
$
|
11.6
|
|
|
$
|
14.7
|
|
|
$
|
19.8
|
|
|
$
|
20.6
|
|
|
$
|
66.6
|
|
Adjusted net income
attributable to Koppers
|
|
$
|
11.4
|
|
|
$
|
24.1
|
|
|
$
|
24.4
|
|
|
$
|
7.2
|
|
|
$
|
66.8
|
|
Denominator for
diluted earnings per share
(in
thousands)
|
|
|
20,881
|
|
|
|
21,044
|
|
|
|
21,030
|
|
|
|
21,369
|
|
|
|
21,068
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
|
0.55
|
|
|
$
|
0.70
|
|
|
$
|
0.94
|
|
|
$
|
0.96
|
|
|
$
|
3.16
|
|
Adjusted earnings per
share
|
|
$
|
0.54
|
|
|
$
|
1.14
|
|
|
$
|
1.16
|
|
|
$
|
0.34
|
|
|
$
|
3.18
|
|
For Information:
|
|
Michael J. Zugay,
Chief Financial Officer
|
|
|
412 227
2231
|
|
|
ZugayMJ@koppers.com
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/koppers-holdings-inc-provides-first-in-a-series-of-monthly-updates-301062563.html
SOURCE Koppers