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KOPPERS HOLDINGS INC. filed this Form DEF 14A on 04/04/2017
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ANNEX A — Unaudited Reconciliations of Non-GAAP Financial Measures

This proxy statement contains the non-GAAP financial measures adjusted earnings (loss) before interest, income taxes, depreciation, depletion and amortization (“EBITDA”) and adjusted earnings per share (“EPS”).

We believe that adjusted EBITDA and adjusted EPS provide information useful to investors in understanding the underlying operational performance of our company, its business and performance trends, and facilitates 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 our management internally assesses the company’s performance. In addition, the board of directors and executive management team use adjusted EBITDA and adjusted EPS as performance measures under the company’s incentive plans.

Although we believe that these non-GAAP financial measures enhance investors’ understanding of our 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 our 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.


(in millions)


     Year Ended December 31, 2016  
      Railroad and
Utility Products
and Services
Materials and
    Corporate     Consolidated  

 Operating profit

   $ 51.1     $ 62.0     $ (25.1   $ (1.6   $ 86.4  

 Other income (loss)

     (0.1     3.4       (0.4           2.9  

 Corporate allocation, net of depreciation

     1.1       1.8       1.3       (4.2      

 Depreciation and amortization

     13.0       18.7       21.1       0.1       52.9  

 Impairment charge and other depreciation

                 7.6             7.6  

 Earnings before interest, taxes, depreciation and amortization (EBITDA)

     65.1       85.9       4.7       (5.9     149.8  

 Adjustments to EBITDA:


Restructuring and plant closure costs

     4.3             28.9             33.2  

Non-cash LIFO benefit

     0.8             (10.3           (9.5

Loss on sale of RUPS businesses

     1.7                         1.7  

Reimbursement of environmental costs

           (2.7                 (2.7

Escrow recovery

           (1.0                 (1.0

Mark-to-market commodity hedging (non-cash)

           (1.7                 (1.7

Pension settlement

                       4.4       4.4  

 Adjusted EBITDA with noncontrolling interests

   $ 71.9     $ 80.5     $ 23.3     $ (1.5   $ 174.2  


KOPPERS HOLDINGS INC. - 2017 Proxy Statement    A-7