PITTSBURGH, Aug. 5, 2020 /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 second quarter
of $29.2 million, or $1.39 per diluted share, a second-quarter record,
compared to net income of $14.7
million, or $0.70 per diluted
share, in the prior year quarter. Beginning in 2020, results
of Koppers (Jiangsu) Carbon
Chemical Company Limited (KJCC) are classified as held for sale and
as discontinued operations for the current year as well as the
comparable prior year period due to its pending divestiture.
The adjusted net income and adjusted earnings per share (EPS)
from continuing operations for the second quarter of 2020 were
$26.7 million and $1.27 per share, a second-quarter record,
compared to $24.1 million and
$1.14 per share in the prior year
quarter, respectively.
Adjustments to pre-tax income excluded $3.7 million in earnings for the second quarter
of 2020, compared with $13.0 million
in charges for the prior year quarter. For both periods, the
adjustments included restructuring expenses as well as non-cash
effects related to LIFO and mark-to-market commodity hedging.
The operating profit was $49.7
million, a second-quarter record, or 11.4 percent, compared
with $38.1 million, or 8.6 percent,
in the prior year period. The operating profit margin is
calculated as a percentage of sales.
For the second quarter of 2020, adjusted earnings before
interest, taxes, depreciation and amortization (EBITDA) was
$59.6 million, or 13.7 percent,
compared with $63.2 million, or 14.2
percent, in the prior year quarter. The adjusted EBITDA
margin is calculated as a percentage of sales.
Additional items excluded from adjusted EBITDA in the second
quarter of 2020 totaled $4.6 million
of pre-tax benefits, compared with $11.8
million of pre-tax charges in the prior year quarter.
For both periods, the adjustments included restructuring expenses
as well as non-cash effects related to LIFO and mark-to-market
commodity hedging.
Consolidated sales were $436.6
million for the second quarter of 2020, a decrease of
$7.2 million, or 1.6 percent, from
sales of $443.8 million in the prior
year quarter. Excluding a negative impact from foreign
currency translation of $3.7 million,
sales were lower by $3.5 million, or
0.8 percent.
Sales for the Railroad and Utility Products and Services (RUPS)
segment, a second-quarter record, were higher due to increased
crosstie volumes, favorable pricing for commercial crossties, and
higher volumes of utility poles, partially offset by weaker demand
in its Railroad Structures and Recovery Resources businesses.
The increased profitability for RUPS, also a second-quarter record,
was primarily driven by a favorable margin mix from the utility
pole and maintenance-of-way businesses. The Performance
Chemicals (PC) segment reported record sales and record adjusted
profitability, as demand for its copper-based wood preservatives
benefited from increased home repair and remodeling activities
during the pandemic. The Carbon Materials and Chemicals (CMC)
segment sales and profitability were negatively affected by
softening demand in its end markets and lower pricing due to the
steep decline in oil prices.
President and CEO Leroy Ball
said, "Final results for the second quarter were in line with what
was communicated in our press release issued on July 27, 2020. I remain heartened by the
resiliency of our various businesses throughout the pandemic thus
far, and look to continue building upon our first-half success over
the balance of this year."
Second-Quarter Financial Performance
- Sales for RUPS of $209.9 million,
which was a second-quarter record, increased by $10.8 million, or 5.4 percent, compared to sales
of $199.1 million in the prior year
quarter. Excluding an unfavorable impact from foreign currency
translation of $0.5 million, sales
increased by $11.3 million, or 5.7
percent, from the prior year quarter. The sales increase was
primarily due to higher crosstie volumes to Class I customers,
favorable pricing in the commercial crosstie market, and improved
demand for utility poles in the U.S. and Australia, partially offset by lower activity
in maintenance-of-way businesses. Operating profit for the second
quarter was $16.2 million, or 7.7
percent, compared with operating profit of $11.8 million, or 5.9 percent, in the prior year
quarter. Adjusted EBITDA, a second-quarter record, was $23.2 million, or 11.1 percent, in the second
quarter, compared with $18.9 million,
or 9.5 percent, in the prior year quarter. The margin expansion was
primarily driven by higher profitability in the domestic utility
pole business and maintenance-of-way projects, increased crosstie
production, and lower selling, general and administrative
costs.
- Sales for PC of $137.1 million,
which represented a record quarter, increased by $16.3 million, or 13.5 percent, compared to sales
of $120.8 million in the prior year
quarter. Excluding an unfavorable impact from foreign currency
translation of $1.9 million, sales
increased by $18.2 million, or 15.1
percent, from the prior year quarter. The sales increase was driven
by strong demand for copper-based preservatives in North America as consumers continued with home
improvement projects during the ongoing COVID-19 pandemic,
partially offset by lower market demand in all international
markets. Operating profit was $32.6
million, or 23.8 percent, for the second quarter, compared
with $14.0 million, or 11.6 percent,
in the prior year quarter. The year-over-year increase was due to
higher sales and $10.1 million of
mark-to-market copper hedging gains compared to the prior year
period. Adjusted EBITDA, a quarterly record, was $29.2 million, or 21.3 percent, for the second
quarter, compared with $21.0 million,
or 17.4 percent, in the prior year quarter. The profitability
increase was primarily due to higher sales volumes, higher
absorption on higher production volumes and lower year-over-year
raw material prices, partially offset by lower contributions from
international businesses.
- Sales for CMC totaling $89.6
million decreased by $34.3
million, or 27.7 percent, compared to sales of $123.9 million in the prior year quarter.
Excluding an unfavorable impact from foreign currency translation
of $1.3 million, sales decreased by
$33.0 million, or 26.7 percent, from
the prior year quarter. The lower average oil prices as well as a
slowdown of markets during the pandemic has resulted in lower
volumes and prices for carbon pitch globally, reduced volumes and
prices for phthalic anhydride in North
America, and reduced prices for carbon black feedstock in
Europe and Australia. Operating profit was $1.5 million, or 1.7 percent, in the second
quarter, compared with $13.0 million,
or 10.5 percent, in the prior year quarter. Adjusted EBITDA was
$7.1 million, or 7.9 percent in the
second quarter, compared with $23.7
million, or 19.1 percent, in the prior year quarter. The
lower profitability was primarily from demand weakness and pricing
pressures related to sudden end market contraction, as well as
lower oil prices.
- Capital expenditures for the six months ended June 30, 2020, were $26.5
million compared with $18.5
million for the prior year period.
- At June 30, 2020, total debt was
$907.1 million and, net of cash and
cash equivalents, the net debt was $874.1
million, compared with total debt of $953.2 million and net debt of $899.0 million at March
31, 2020, and total debt of $901.2
million and net debt of $868.9
million at December 31, 2019.
Compared to March 31, 2020, total
debt was lower by $46.1 million and
net debt was lower by $24.9 million.
Compared to December 31, 2019, total
debt was higher by $5.9 million and
net debt was higher by $5.2 million.
At June 30, 2020, the company's net
leverage ratio was 4.5, unchanged from March
31, 2020, and 4.3 at December 31,
2019.
Monthly Business Update
Koppers management plans to provide its next monthly business
update on August 25, 2020, to discuss
its July 2020 operations, including
sales by business segment and related market trends. The
company also will conduct a conference call on that day to provide
additional commentary to the investment community, which will be
broadcast live on www.koppers.com and a replay will be made
available following the event.
Pending Divestiture of Koppers (Jiangsu) Carbon Chemical Company
Limited
In February, 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.
On April 29, 2020, the State
Administration for Market Regulation of China (SAMR) decided not to conduct further
review and gave approval for the pending divestiture to proceed,
which represents a significant step in the process. Koppers
continues to work diligently toward the goal of closing the
transaction in the third-quarter timeframe. Closing is subject to
satisfaction of various closing conditions contained in the
definitive agreement. The company expects to realize
approximately $65 million of net
cash, after taxes and expenses, and plans to apply the cash
proceeds toward debt reduction.
2020 Outlook
Although the worldwide effects of the COVID-19 pandemic are
continuing to unfold, based on current market and customer
indications, Koppers expects that 2020 sales will be approximately
$1.6 billion. By comparison,
sales in 2019 (excluding KJCC) were $1.65
billion. Accordingly, Koppers expects adjusted EBITDA
will be approximately $190 million to
$200 million for 2020, compared with
adjusted EBITDA of $201 million in
the prior year.
The effective tax rate for adjusted net income in 2020 is
projected to be approximately 25 percent, compared to the tax rate
in 2019, excluding special tax items, of 26 percent and adjusted
EPS is forecasted to be in the range of $3.10 to $3.40,
compared with adjusted EPS of $3.31
in the prior year.
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 restructuring, impairment,
non-cash LIFO charges, acquisition-related costs, and non-cash
mark-to-market commodity hedging that are difficult to predict in
advance in order to include in a GAAP estimate and may be
significant.
Koppers continues to anticipate investments of $50 million to $60
million in capital expenditures in 2020, which are primarily
related to improving the safety and reliability of its existing
infrastructure.
Additionally, Koppers plans to reduce debt by approximately
$120 million in 2020, which includes
and will be contingent on the successful closing of the KJCC
divestiture.
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.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial
measures. Koppers believes that adjusted EBITDA, adjusted
EBITDA margin, adjusted net income, adjusted earnings per share,
net debt and net leverage ratio 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.
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 Operating Profit to EBITDA and Adjusted
EBITDA; Unaudited Reconciliation of Net Income to EBITDA and
Adjusted EBITDA; Unaudited Reconciliation of Net Income
Attributable to Koppers and Adjusted Net Income; Unaudited
Reconciliation of Diluted Earnings Per Share and Adjusted Earnings
Per Share; Unaudited Reconciliation of Total Debt to Net Debt and
Net Leverage Ratio; and Unaudited Reconciliation of Net Income to
EBITDA and Adjusted EBITDA on a Latest Twelve Month Basis.
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.
|
|
|
For Information:
|
|
Michael J. Zugay,
Chief Financial Officer
|
|
|
412 227
2231
|
|
|
ZugayMJ@koppers.com
|
Koppers Holdings
Inc.
|
Unaudited
Condensed Consolidated Statement of Operations
|
(Dollars in
millions, except per share amounts)
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
Net sales
|
|
$
|
436.6
|
|
|
$
|
443.8
|
|
|
$
|
838.5
|
|
|
$
|
820.7
|
|
Cost of
sales
|
|
|
334.7
|
|
|
|
351.1
|
|
|
|
675.0
|
|
|
|
652.9
|
|
Depreciation and
amortization
|
|
|
13.3
|
|
|
|
12.5
|
|
|
|
26.8
|
|
|
|
26.1
|
|
Impairment and
restructuring charges
|
|
|
4.1
|
|
|
|
3.8
|
|
|
|
3.9
|
|
|
|
4.1
|
|
Selling, general and
administrative expenses
|
|
|
34.8
|
|
|
|
38.3
|
|
|
|
69.5
|
|
|
|
75.2
|
|
Operating
profit
|
|
|
49.7
|
|
|
|
38.1
|
|
|
|
63.3
|
|
|
|
62.4
|
|
Other income (loss),
net
|
|
|
0.5
|
|
|
|
(0.1)
|
|
|
|
1.0
|
|
|
|
0.4
|
|
Interest
expense
|
|
|
12.8
|
|
|
|
15.7
|
|
|
|
26.8
|
|
|
|
32.0
|
|
Income from
continuing operations before income taxes
|
|
|
37.4
|
|
|
|
22.3
|
|
|
|
37.5
|
|
|
|
30.8
|
|
Income tax
provision
|
|
|
8.0
|
|
|
|
8.0
|
|
|
|
6.2
|
|
|
|
6.8
|
|
Income from
continuing operations
|
|
|
29.4
|
|
|
|
14.3
|
|
|
|
31.3
|
|
|
|
24.0
|
|
Income (loss) from
discontinued operations, net of tax benefit (expense) of $0.2, $0.0, $1.0, and
$(1.1)
|
|
|
0.0
|
|
|
|
0.1
|
|
|
|
(4.4)
|
|
|
|
2.8
|
|
Net income
|
|
|
29.4
|
|
|
|
14.4
|
|
|
|
26.9
|
|
|
|
26.8
|
|
Net income (loss)
attributable to noncontrolling interests
|
|
|
0.2
|
|
|
|
(0.3)
|
|
|
|
(0.9)
|
|
|
|
0.6
|
|
Net income
attributable to Koppers
|
|
$
|
29.2
|
|
|
$
|
14.7
|
|
|
$
|
27.8
|
|
|
$
|
26.2
|
|
Earnings (loss) per
common share attributable to Koppers common shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
|
1.40
|
|
|
$
|
0.70
|
|
|
$
|
1.50
|
|
|
$
|
1.17
|
|
Discontinued
operations
|
|
|
(0.01)
|
|
|
|
0.02
|
|
|
|
(0.17)
|
|
|
|
0.10
|
|
Earnings per basic
common share
|
|
$
|
1.39
|
|
|
$
|
0.72
|
|
|
$
|
1.33
|
|
|
$
|
1.27
|
|
Diluted -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
|
1.40
|
|
|
$
|
0.68
|
|
|
$
|
1.49
|
|
|
$
|
1.15
|
|
Discontinued
operations
|
|
|
(0.01)
|
|
|
|
0.02
|
|
|
|
(0.17)
|
|
|
|
0.10
|
|
Earnings per diluted
common share
|
|
$
|
1.39
|
|
|
$
|
0.70
|
|
|
|
1.32
|
|
|
|
1.25
|
|
Comprehensive
income
|
|
$
|
73.7
|
|
|
$
|
9.6
|
|
|
$
|
22.8
|
|
|
$
|
30.3
|
|
Comprehensive income
(loss) attributable to
noncontrolling interests
|
|
|
0.2
|
|
|
|
(0.6)
|
|
|
|
(1.0)
|
|
|
|
0.6
|
|
Comprehensive income
attributable to Koppers
|
|
$
|
73.5
|
|
|
$
|
10.2
|
|
|
$
|
23.8
|
|
|
$
|
29.7
|
|
Weighted average
shares outstanding (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
21,001
|
|
|
|
20,662
|
|
|
|
20,927
|
|
|
|
20,619
|
|
Diluted
|
|
|
21,068
|
|
|
|
21,044
|
|
|
|
21,084
|
|
|
|
20,949
|
|
Koppers Holdings
Inc.
|
Unaudited
Condensed Consolidated Balance Sheet
|
(Dollars in
millions, except per share amounts)
|
|
|
|
June 30,
2020
|
|
|
December 31,
2019
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
33.0
|
|
|
$
|
32.3
|
|
Accounts receivable,
net of allowance of $2.5 and $2.6
|
|
|
189.2
|
|
|
|
161.7
|
|
Income tax
receivable
|
|
|
3.6
|
|
|
|
1.1
|
|
Inventories,
net
|
|
|
261.1
|
|
|
|
288.5
|
|
Assets of
discontinued operations held for sale
|
|
|
68.1
|
|
|
|
17.1
|
|
Other current
assets
|
|
|
18.1
|
|
|
|
18.8
|
|
Total current
assets
|
|
|
573.1
|
|
|
|
519.5
|
|
Property, plant and
equipment, net
|
|
|
369.3
|
|
|
|
358.8
|
|
Operating lease
right-of-use assets
|
|
|
102.7
|
|
|
|
112.3
|
|
Goodwill
|
|
|
294.4
|
|
|
|
296.1
|
|
Intangible assets,
net
|
|
|
157.8
|
|
|
|
168.4
|
|
Deferred tax
assets
|
|
|
25.9
|
|
|
|
23.7
|
|
Non-current assets of
discontinued operations held for sale
|
|
|
0.0
|
|
|
|
59.3
|
|
Other
assets
|
|
|
32.6
|
|
|
|
26.5
|
|
Total
assets
|
|
$
|
1,555.8
|
|
|
$
|
1,564.6
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
131.1
|
|
|
$
|
162.8
|
|
Accrued
liabilities
|
|
|
96.1
|
|
|
|
89.3
|
|
Current operating
lease liabilities
|
|
|
21.0
|
|
|
|
22.0
|
|
Current maturities of
long-term debt
|
|
|
10.2
|
|
|
|
10.2
|
|
Liabilities of
discontinued operations held for sale
|
|
|
34.4
|
|
|
|
11.9
|
|
Total current
liabilities
|
|
|
292.8
|
|
|
|
296.2
|
|
Long-term
debt
|
|
|
896.9
|
|
|
|
891.0
|
|
Accrued
postretirement benefits
|
|
|
46.4
|
|
|
|
46.6
|
|
Deferred tax
liabilities
|
|
|
6.7
|
|
|
|
6.8
|
|
Operating lease
liabilities
|
|
|
83.1
|
|
|
|
91.5
|
|
Non-current
liabilities of discontinued operations held for sale
|
|
|
0.0
|
|
|
|
25.1
|
|
Other long-term
liabilities
|
|
|
43.6
|
|
|
|
48.7
|
|
Total
liabilities
|
|
|
1,369.5
|
|
|
|
1,405.9
|
|
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; 23,620,402 and
23,321,087 shares issued
|
|
|
0.2
|
|
|
|
0.2
|
|
Additional paid-in
capital
|
|
|
228.0
|
|
|
|
221.9
|
|
Retained
earnings
|
|
|
121.6
|
|
|
|
93.8
|
|
Accumulated other
comprehensive loss
|
|
|
(81.8)
|
|
|
|
(77.7)
|
|
Treasury stock, at
cost, 2,574,675 and 2,515,925 shares
|
|
|
(92.1)
|
|
|
|
(90.9)
|
|
Total Koppers
shareholders' equity
|
|
|
175.9
|
|
|
|
147.3
|
|
Noncontrolling
interests
|
|
|
10.4
|
|
|
|
11.4
|
|
Total
equity
|
|
|
186.3
|
|
|
|
158.7
|
|
Total liabilities and
equity
|
|
$
|
1,555.8
|
|
|
$
|
1,564.6
|
|
Koppers Holdings
Inc.
|
Unaudited
Condensed Consolidated Statement of Cash Flows
|
(Dollars in
millions)
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
2020
|
|
|
2019
|
|
Cash provided by
(used in) operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
26.9
|
|
|
$
|
26.8
|
|
Adjustments to
reconcile net cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
27.3
|
|
|
|
28.0
|
|
Stock-based
compensation
|
|
|
5.5
|
|
|
|
5.9
|
|
Change in derivative
liability
|
|
|
(0.3)
|
|
|
|
(1.3)
|
|
Non-cash interest
expense
|
|
|
1.3
|
|
|
|
1.2
|
|
Loss on disposal of
assets and investment
|
|
|
0.0
|
|
|
|
0.3
|
|
Insurance
proceeds
|
|
|
0.0
|
|
|
|
(3.0)
|
|
Deferred income
taxes
|
|
|
(4.7)
|
|
|
|
0.4
|
|
Change in other
liabilities
|
|
|
0.8
|
|
|
|
(4.3)
|
|
Other - net
|
|
|
1.0
|
|
|
|
(1.1)
|
|
Changes in working
capital:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(31.7)
|
|
|
|
(25.4)
|
|
Inventories
|
|
|
28.8
|
|
|
|
5.9
|
|
Accounts
payable
|
|
|
(34.3)
|
|
|
|
(30.5)
|
|
Accrued
liabilities
|
|
|
(0.2)
|
|
|
|
(6.0)
|
|
Other working
capital
|
|
|
1.8
|
|
|
|
4.5
|
|
Net cash provided by
operating activities
|
|
|
22.2
|
|
|
|
1.4
|
|
Cash (used in)
provided by investing activities:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(26.5)
|
|
|
|
(18.5)
|
|
Insurance proceeds
received
|
|
|
0.0
|
|
|
|
3.0
|
|
Net cash provided by
divestitures and asset sales
|
|
|
0.1
|
|
|
|
0.5
|
|
Net cash used in
investing activities
|
|
|
(26.4)
|
|
|
|
(15.0)
|
|
Cash provided by
(used in) financing activities:
|
|
|
|
|
|
|
|
|
Net increase in credit
facility borrowings
|
|
|
9.9
|
|
|
|
35.0
|
|
Repayments of
long-term debt
|
|
|
(5.1)
|
|
|
|
(18.7)
|
|
Issuances of Common
Stock
|
|
|
0.5
|
|
|
|
0.6
|
|
Repurchases of Common
Stock
|
|
|
(1.2)
|
|
|
|
(0.9)
|
|
Payment of debt
issuance costs
|
|
|
(0.2)
|
|
|
|
(0.9)
|
|
Net cash provided by
financing activities
|
|
|
3.9
|
|
|
|
15.1
|
|
Effect of exchange
rate changes on cash
|
|
|
0.8
|
|
|
|
0.0
|
|
Change in cash and
cash equivalents of discontinued operations held for
sale
|
|
|
0.2
|
|
|
|
(0.8)
|
|
Net increase in cash
and cash equivalents
|
|
|
0.7
|
|
|
|
0.7
|
|
Cash and cash
equivalents at beginning of period
|
|
$
|
32.3
|
|
|
$
|
37.4
|
|
Cash and cash
equivalents at end of period
|
|
$
|
33.0
|
|
|
$
|
38.1
|
|
Cash paid for amounts
included in the measurement of lease liabilities:
|
|
|
|
|
|
|
|
|
Operating cash outflow
from operating leases
|
|
$
|
15.1
|
|
|
$
|
15.3
|
|
Supplemental
disclosure of non-cash investing and financing
activities:
|
|
|
|
|
|
|
|
|
Right-of-use assets
obtained in exchange for new operating lease liabilities
|
|
$
|
1.7
|
|
|
$
|
16.5
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
|
|
|
|
Non-cash investing
activities
|
|
|
|
|
|
|
|
|
Accrued capital
expenditures
|
|
$
|
2.3
|
|
|
$
|
4.8
|
|
UNAUDITED SEGMENT
INFORMATION
|
|
The following tables
set forth certain sales and operating data, net of all intersegment
transactions, for the company's businesses for the periods
indicated.
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
(Dollars in
millions)
|
|
|
|
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Railroad and Utility
Products and Services
|
|
$
|
209.9
|
|
|
$
|
199.1
|
|
|
$
|
399.9
|
|
|
$
|
365.2
|
|
Performance
Chemicals
|
|
|
137.1
|
|
|
|
120.8
|
|
|
|
248.5
|
|
|
|
219.8
|
|
Carbon Materials and
Chemicals
|
|
|
89.6
|
|
|
|
123.9
|
|
|
|
190.1
|
|
|
|
235.7
|
|
Total
|
|
$
|
436.6
|
|
|
$
|
443.8
|
|
|
$
|
838.5
|
|
|
$
|
820.7
|
|
Operating profit
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Railroad and Utility
Products and Services
|
|
$
|
16.2
|
|
|
$
|
11.8
|
|
|
$
|
25.4
|
|
|
$
|
20.5
|
|
Performance
Chemicals
|
|
|
32.6
|
|
|
|
14.0
|
|
|
|
36.7
|
|
|
|
26.8
|
|
Carbon Materials and
Chemicals
|
|
|
1.5
|
|
|
|
13.0
|
|
|
|
2.2
|
|
|
|
16.2
|
|
Corporate
Unallocated
|
|
|
(0.6)
|
|
|
|
(0.7)
|
|
|
|
(1.0)
|
|
|
|
(1.1)
|
|
Total
|
|
$
|
49.7
|
|
|
$
|
38.1
|
|
|
$
|
63.3
|
|
|
$
|
62.4
|
|
Operating profit
(loss) margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Railroad and Utility
Products and Services
|
|
|
7.7
|
%
|
|
|
5.9
|
%
|
|
|
6.4
|
%
|
|
|
5.6
|
%
|
Performance
Chemicals
|
|
|
23.8
|
%
|
|
|
11.6
|
%
|
|
|
14.8
|
%
|
|
|
12.2
|
%
|
Carbon Materials and
Chemicals
|
|
|
1.7
|
%
|
|
|
10.5
|
%
|
|
|
1.2
|
%
|
|
|
6.9
|
%
|
Total
|
|
|
11.4
|
%
|
|
|
8.6
|
%
|
|
|
7.5
|
%
|
|
|
7.6
|
%
|
Depreciation and
amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Railroad and Utility
Products and Services
|
|
$
|
5.0
|
|
|
$
|
4.8
|
|
|
$
|
9.9
|
|
|
$
|
9.6
|
|
Performance
Chemicals
|
|
|
4.4
|
|
|
|
4.6
|
|
|
|
8.9
|
|
|
|
9.5
|
|
Carbon Materials and
Chemicals
|
|
|
3.9
|
|
|
|
3.1
|
|
|
|
8.0
|
|
|
|
7.0
|
|
Total
|
|
$
|
13.3
|
|
|
$
|
12.5
|
|
|
$
|
26.8
|
|
|
$
|
26.1
|
|
Adjusted
EBITDA(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Railroad and Utility
Products and Services
|
|
$
|
23.2
|
|
|
$
|
18.9
|
|
|
$
|
36.6
|
|
|
$
|
33.2
|
|
Performance
Chemicals
|
|
|
29.2
|
|
|
|
21.0
|
|
|
|
46.2
|
|
|
|
36.4
|
|
Carbon Materials and
Chemicals
|
|
|
7.1
|
|
|
|
23.7
|
|
|
|
14.1
|
|
|
|
35.2
|
|
Corporate
Unallocated
|
|
|
0.1
|
|
|
|
(0.4)
|
|
|
|
0.3
|
|
|
|
(0.7)
|
|
Total
|
|
$
|
59.6
|
|
|
$
|
63.2
|
|
|
$
|
97.2
|
|
|
$
|
104.1
|
|
Adjusted EBITDA
margin(2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Railroad and
Utility Products and Services
|
|
|
11.1
|
%
|
|
|
9.5
|
%
|
|
|
9.2
|
%
|
|
|
9.1
|
%
|
Performance
Chemicals
|
|
|
21.3
|
%
|
|
|
17.4
|
%
|
|
|
18.6
|
%
|
|
|
16.6
|
%
|
Carbon Materials and
Chemicals
|
|
|
7.9
|
%
|
|
|
19.1
|
%
|
|
|
7.4
|
%
|
|
|
14.9
|
%
|
Total
|
|
|
13.7
|
%
|
|
|
14.2
|
%
|
|
|
11.6
|
%
|
|
|
12.7
|
%
|
|
|
(1)
|
The tables below
describe the adjustments to EBITDA for the three and six months
ended June 30, 2020 and 2019, respectively.
|
(2)
|
Adjusted EBITDA as a
percentage of GAAP sales.
|
UNAUDITED
RECONCILIATION OF OPERATING PROFIT TO EBITDA AND ADJUSTED
EBITDA*
|
(In
millions)
|
|
|
|
Three Months Ended
June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
|
|
|
|
|
|
|
|
RUPS
|
|
|
PC
|
|
|
CMC
|
|
|
Unallocated
|
|
|
Consolidated
|
|
Operating profit
(loss)
|
|
$
|
16.2
|
|
|
$
|
32.6
|
|
|
$
|
1.5
|
|
|
$
|
(0.6)
|
|
|
$
|
49.7
|
|
Other income
(loss)
|
|
|
(0.4)
|
|
|
|
0.4
|
|
|
|
0.0
|
|
|
|
0.7
|
|
|
|
0.7
|
|
Depreciation and
amortization
|
|
|
5.0
|
|
|
|
4.4
|
|
|
|
3.9
|
|
|
|
0.0
|
|
|
|
13.3
|
|
Depreciation in
impairment and restructuring charges
|
|
|
0.7
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.7
|
|
EBITDA with
noncontrolling interest
|
|
$
|
21.5
|
|
|
$
|
37.4
|
|
|
$
|
5.4
|
|
|
$
|
0.1
|
|
|
$
|
64.4
|
|
Unusual items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CMC
restructuring
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
3.3
|
|
|
|
0.0
|
|
|
|
3.3
|
|
Non-cash LIFO
benefit
|
|
|
(1.8)
|
|
|
|
0.0
|
|
|
|
(1.6)
|
|
|
|
0.0
|
|
|
|
(3.4)
|
|
RUPS treating plant
closures
|
|
|
3.5
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
3.5
|
|
Mark-to-market
commodity hedging
|
|
|
0.0
|
|
|
|
(8.2)
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
(8.2)
|
|
Adjusted
EBITDA
|
|
$
|
23.2
|
|
|
$
|
29.2
|
|
|
$
|
7.1
|
|
|
$
|
0.1
|
|
|
$
|
59.6
|
|
Adj. EBITDA % of
Consolidated Adj. EBITDA (excluding corporate
unallocated)
|
|
|
39.0
|
%
|
|
|
49.1
|
%
|
|
|
11.9
|
%
|
|
|
|
|
|
|
|
|
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
|
|
|
$
|
(0.7)
|
|
|
$
|
38.1
|
|
Other income
(loss)
|
|
|
(0.3)
|
|
|
|
0.5
|
|
|
|
(0.5)
|
|
|
|
0.3
|
|
|
|
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 with
noncontrolling interest
|
|
$
|
16.3
|
|
|
$
|
19.1
|
|
|
$
|
16.5
|
|
|
$
|
(0.4)
|
|
|
$
|
51.5
|
|
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
|
|
RUPS treating plant
closures
|
|
|
0.2
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.2
|
|
Mark-to-market
commodity hedging
|
|
|
0.0
|
|
|
|
1.9
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
1.9
|
|
Adjusted
EBITDA
|
|
$
|
18.9
|
|
|
$
|
21.0
|
|
|
$
|
23.7
|
|
|
$
|
(0.4)
|
|
|
$
|
63.2
|
|
Adj. EBITDA % of
Consolidated Adj. EBITDA (excluding corporate
unallocated)
|
|
|
29.7
|
%
|
|
|
33.0
|
%
|
|
|
37.3
|
%
|
|
|
|
|
|
|
|
|
|
*A reconciliation of
segment net income to adjusted segment EBITDA is not available
without unreasonable efforts as we do not measure net income at the
segment level or use it as a measure of operating
performance.
|
UNAUDITED
RECONCILIATION OF OPERATING PROFIT TO EBITDA AND ADJUSTED
EBITDA*
|
(In
millions)
|
|
|
|
Six Months Ended
June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
|
|
|
|
|
|
|
|
RUPS
|
|
|
PC
|
|
|
CMC
|
|
|
Unallocated
|
|
|
Consolidated
|
|
Operating profit
(loss)
|
|
$
|
25.4
|
|
|
$
|
36.7
|
|
|
$
|
2.2
|
|
|
$
|
(1.0)
|
|
|
$
|
63.3
|
|
Other income
(loss)
|
|
|
(0.7)
|
|
|
|
0.9
|
|
|
|
(0.4)
|
|
|
|
1.3
|
|
|
|
1.1
|
|
Depreciation and
amortization
|
|
|
9.9
|
|
|
|
8.9
|
|
|
|
8.0
|
|
|
|
0.0
|
|
|
|
26.8
|
|
Depreciation in
impairment and restructuring charges
|
|
|
0.7
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.7
|
|
EBITDA with
noncontrolling interest
|
|
$
|
35.3
|
|
|
$
|
46.5
|
|
|
$
|
9.8
|
|
|
$
|
0.3
|
|
|
$
|
91.9
|
|
Unusual items
impacting net income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CMC
restructuring
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
6.0
|
|
|
|
0.0
|
|
|
|
6.0
|
|
Non-cash LIFO
expense
|
|
|
(2.3)
|
|
|
|
0.0
|
|
|
|
(1.7)
|
|
|
|
0.0
|
|
|
|
(4.0)
|
|
RUPS treating plant
closures
|
|
|
3.6
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
3.6
|
|
Mark-to-market
commodity hedging
|
|
|
0.0
|
|
|
|
(0.3)
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
(0.3)
|
|
Adjusted
EBITDA
|
|
$
|
36.6
|
|
|
$
|
46.2
|
|
|
$
|
14.1
|
|
|
$
|
0.3
|
|
|
$
|
97.2
|
|
Adj. EBITDA % of
Consolidated Adj. EBITDA (excluding corporate
unallocated)
|
|
|
37.8
|
%
|
|
|
47.7
|
%
|
|
|
14.6
|
%
|
|
|
|
|
|
|
|
|
UNAUDITED
RECONCILIATION OF OPERATING PROFIT TO EBITDA AND ADJUSTED
EBITDA*
|
(In
millions)
|
|
|
|
Six Months Ended
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
|
|
|
|
|
|
|
|
RUPS
|
|
|
PC
|
|
|
CMC
|
|
|
Unallocated
|
|
|
Consolidated
|
|
Operating profit
(loss)
|
|
$
|
20.5
|
|
|
$
|
26.8
|
|
|
$
|
16.2
|
|
|
$
|
(1.1)
|
|
|
$
|
62.4
|
|
Other income
(loss)
|
|
|
(0.5)
|
|
|
|
1.3
|
|
|
|
(0.8)
|
|
|
|
0.4
|
|
|
|
0.4
|
|
Depreciation and
amortization
|
|
|
9.6
|
|
|
|
9.5
|
|
|
|
7.0
|
|
|
|
0.0
|
|
|
|
26.1
|
|
Depreciation in
impairment and restructuring charges
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
1.2
|
|
|
|
0.0
|
|
|
|
1.2
|
|
EBITDA with
noncontrolling interest
|
|
$
|
29.6
|
|
|
$
|
37.6
|
|
|
$
|
23.6
|
|
|
$
|
(0.7)
|
|
|
$
|
90.1
|
|
Unusual items
impacting net income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CMC
restructuring
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
11.3
|
|
|
|
0.0
|
|
|
|
11.3
|
|
Non-cash LIFO
expense
|
|
|
3.4
|
|
|
|
0.0
|
|
|
|
0.3
|
|
|
|
0.0
|
|
|
|
3.7
|
|
RUPS treating plant
closures
|
|
|
0.2
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.2
|
|
Mark-to-market
commodity hedging
|
|
|
0.0
|
|
|
|
(1.2)
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
(1.2)
|
|
Adjusted
EBITDA
|
|
$
|
33.2
|
|
|
$
|
36.4
|
|
|
$
|
35.2
|
|
|
$
|
(0.7)
|
|
|
$
|
104.1
|
|
Adj. EBITDA % of
Consolidated Adj. EBITDA (excluding corporate
unallocated)
|
|
|
31.7
|
%
|
|
|
34.7
|
%
|
|
|
33.6
|
%
|
|
|
|
|
|
|
|
|
|
*A reconciliation of
segment net income to adjusted segment EBITDA is not available
without unreasonable efforts as we do not measure net income at the
segment level or use it as a measure of operating
performance.
|
UNAUDITED
RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED
EBITDA
|
(In
millions)
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
Net income
|
|
$
|
29.4
|
|
|
$
|
14.4
|
|
|
$
|
26.9
|
|
|
$
|
26.8
|
|
Interest
expense
|
|
|
12.8
|
|
|
|
15.7
|
|
|
|
26.8
|
|
|
|
32.0
|
|
Depreciation and
amortization
|
|
|
13.3
|
|
|
|
12.5
|
|
|
|
26.8
|
|
|
|
26.1
|
|
Depreciation in
impairment and restructuring charges
|
|
|
0.7
|
|
|
|
0.9
|
|
|
|
0.7
|
|
|
|
1.2
|
|
Income
taxes
|
|
|
8.0
|
|
|
|
8.0
|
|
|
|
6.2
|
|
|
|
6.8
|
|
Income (loss) from
discontinued operations
|
|
|
0.0
|
|
|
|
(0.1)
|
|
|
|
4.4
|
|
|
|
(2.8)
|
|
EBITDA with
noncontrolling interests
|
|
|
64.2
|
|
|
|
51.4
|
|
|
|
91.8
|
|
|
|
90.1
|
|
Unusual items
impacting net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment,
restructuring and plant closure costs
|
|
|
7.0
|
|
|
|
7.1
|
|
|
|
9.7
|
|
|
|
11.5
|
|
Non-cash LIFO
(benefit) expense
|
|
|
(3.4)
|
|
|
|
2.7
|
|
|
|
(4.0)
|
|
|
|
3.7
|
|
Mark-to-market
commodity hedging
|
|
|
(8.2)
|
|
|
|
2.0
|
|
|
|
(0.3)
|
|
|
|
(1.2)
|
|
Total
adjustments
|
|
|
(4.6)
|
|
|
|
11.8
|
|
|
|
5.4
|
|
|
|
14.0
|
|
Adjusted
EBITDA
|
|
$
|
59.6
|
|
|
$
|
63.2
|
|
|
$
|
97.2
|
|
|
$
|
104.1
|
|
UNAUDITED
RECONCILIATION OF NET INCOME ATTRIBUTABLE TO KOPPERS AND ADJUSTED
NET INCOME
|
(In
millions)
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
Net income
attributable to Koppers
|
|
$
|
29.2
|
|
|
$
|
14.7
|
|
|
$
|
27.8
|
|
|
$
|
26.2
|
|
Unusual items
impacting net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment,
restructuring and plant closure costs
|
|
|
8.0
|
|
|
|
8.5
|
|
|
|
11.4
|
|
|
|
14.4
|
|
Non-cash LIFO
(benefit) expense
|
|
|
(3.4)
|
|
|
|
2.6
|
|
|
|
(4.1)
|
|
|
|
3.7
|
|
Mark-to-market
commodity hedging
|
|
|
(8.3)
|
|
|
|
1.9
|
|
|
|
(0.3)
|
|
|
|
(1.3)
|
|
Total
adjustments
|
|
|
(3.7)
|
|
|
|
13.0
|
|
|
|
7.0
|
|
|
|
16.8
|
|
Adjustments to income
tax and noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax on
adjustments to pre-tax income
|
|
|
1.0
|
|
|
|
(3.2)
|
|
|
|
(1.6)
|
|
|
|
(5.4)
|
|
Noncontrolling
interest
|
|
|
0.2
|
|
|
|
(0.3)
|
|
|
|
(0.9)
|
|
|
|
0.6
|
|
Effect on adjusted net
income
|
|
|
(2.5)
|
|
|
|
9.5
|
|
|
|
4.5
|
|
|
|
12.0
|
|
Adjusted net income
including discontinued operations
|
|
|
26.7
|
|
|
|
24.2
|
|
|
|
32.3
|
|
|
|
38.2
|
|
Income (loss) from
discontinued operations
|
|
|
0.0
|
|
|
|
(0.1)
|
|
|
|
4.4
|
|
|
|
(2.8)
|
|
Adjusted net income
attributable to Koppers
|
|
$
|
26.7
|
|
|
$
|
24.1
|
|
|
$
|
36.7
|
|
|
$
|
35.4
|
|
UNAUDITED
RECONCILIATION OF DILUTED EARNINGS PER SHARE AND
|
ADJUSTED EARNINGS
PER SHARE
|
(In millions
except share amounts)
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
Net income
attributable to Koppers
|
|
$
|
29.2
|
|
|
$
|
14.7
|
|
|
$
|
27.8
|
|
|
$
|
26.2
|
|
Adjusted net income
attributable to Koppers
|
|
$
|
26.7
|
|
|
$
|
24.1
|
|
|
$
|
36.7
|
|
|
$
|
35.4
|
|
Denominator for
diluted earnings per share (in
thousands)
|
|
|
21,068
|
|
|
|
21,044
|
|
|
|
21,084
|
|
|
|
20,949
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
|
1.39
|
|
|
$
|
0.70
|
|
|
$
|
1.32
|
|
|
$
|
1.25
|
|
Adjusted earnings per
share
|
|
$
|
1.27
|
|
|
$
|
1.14
|
|
|
$
|
1.74
|
|
|
$
|
1.69
|
|
UNAUDITED
RECONCILIATION OF TOTAL DEBT TO NET DEBT AND NET LEVERAGE
RATIO
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
Twelve months
ended
|
|
|
|
June
30,
2020
|
|
|
|
|
March
31,
2020
|
|
|
December
31,
2019
|
|
|
September
30,
2019
|
|
|
June
30,
2019
|
|
|
March
30,
2019
|
|
Total Debt
|
|
$
|
907.1
|
|
|
|
|
$
|
953.2
|
|
|
$
|
901.2
|
|
|
$
|
959.1
|
|
|
$
|
1,001.0
|
|
|
$
|
1,002.7
|
|
Less: Cash
|
|
|
33.0
|
|
|
|
|
|
54.2
|
|
|
|
32.3
|
|
|
|
30.8
|
|
|
|
38.1
|
|
|
|
32.7
|
|
Net Debt
|
|
$
|
874.1
|
|
|
|
|
$
|
899.0
|
|
|
$
|
868.9
|
|
|
$
|
928.3
|
|
|
$
|
962.9
|
|
|
$
|
970.0
|
|
Adjusted
EBITDA
|
|
$
|
194.2
|
|
|
|
|
$
|
197.9
|
|
|
$
|
201.1
|
|
|
$
|
206.6
|
|
|
$
|
203.4
|
|
|
$
|
191.5
|
|
Net Leverage
Ratio
|
|
|
4.5
|
|
|
|
|
|
4.5
|
|
|
|
4.3
|
|
|
|
4.5
|
|
|
|
4.7
|
|
|
|
5.1
|
|
UNAUDITED
RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED
EBITDA
|
ON A LATEST TWELVE
MONTH BASIS
|
(In
millions)
|
|
|
|
|
|
|
|
Twelve months
ended
|
|
|
|
June
30, 2020
|
|
|
March
31, 2020
|
|
|
December 31, 2019
|
|
|
September
30, 2019
|
|
|
June
30, 2019
|
|
|
March
31, 2019
|
|
Net income
|
|
$
|
67.4
|
|
|
$
|
52.4
|
|
|
$
|
67.4
|
|
|
$
|
44.8
|
|
|
$
|
31.4
|
|
|
$
|
18.0
|
|
Interest
expense
|
|
|
56.6
|
|
|
|
59.8
|
|
|
|
61.9
|
|
|
|
63.4
|
|
|
|
62.2
|
|
|
|
60.2
|
|
Depreciation and
amortization
|
|
|
54.9
|
|
|
|
54.3
|
|
|
|
54.6
|
|
|
|
53.5
|
|
|
|
52.0
|
|
|
|
52.6
|
|
Income tax
provision
|
|
|
(0.6)
|
|
|
|
(0.6)
|
|
|
|
0.0
|
|
|
|
11.9
|
|
|
|
17.7
|
|
|
|
15.5
|
|
Discontinued
operations, net of
tax
|
|
|
3.6
|
|
|
|
3.4
|
|
|
|
(3.7)
|
|
|
|
(5.7)
|
|
|
|
(1.4)
|
|
|
|
(3.4)
|
|
EBITDA
|
|
|
181.9
|
|
|
|
169.3
|
|
|
|
180.2
|
|
|
|
167.9
|
|
|
|
161.9
|
|
|
|
142.9
|
|
Unusual items
impacting net income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment,
restructuring and plant
closure
|
|
|
18.5
|
|
|
|
18.8
|
|
|
|
20.4
|
|
|
|
26.1
|
|
|
|
27.2
|
|
|
|
23.5
|
|
Non-cash LIFO
(benefit) expense
|
|
|
(3.1)
|
|
|
|
2.8
|
|
|
|
4.5
|
|
|
|
11.2
|
|
|
|
11.6
|
|
|
|
12.0
|
|
Mark-to-market
commodity hedging
|
|
|
(3.1)
|
|
|
|
7.0
|
|
|
|
(4.0)
|
|
|
|
1.3
|
|
|
|
1.1
|
|
|
|
0.3
|
|
Acquisition and exit
activity related
costs
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.1
|
|
|
|
1.6
|
|
|
|
12.8
|
|
Adjusted EBITDA
with noncontrolling
interests
|
|
$
|
194.2
|
|
|
$
|
197.9
|
|
|
$
|
201.1
|
|
|
$
|
206.6
|
|
|
$
|
203.4
|
|
|
$
|
191.5
|
|
View original
content:http://www.prnewswire.com/news-releases/koppers-holdings-inc-reports-second-quarter-2020-results-301106576.html
SOURCE Koppers