Consolidated sales of
Net income attributable to
Adjusted EBITDA for the quarter ended
Consolidated sales of
Net income attributable to
Adjusted EBITDA for the six months ended
Commenting on the results,
Mr. Turner continued, "Although we expect to be challenged with crosstie availability in our railroad business due to increased demand for lumber from housing and other markets and continued volatility in our global Carbon Materials and Chemicals business in the second half of the year, we should benefit from the impact of several cost-savings initiatives as well as the timing of certain product shipments. As a result, I anticipate that the second half of the year will be stronger than the first half."
The following reconciliations are attached to this press release: Unaudited Reconciliation of Net Income Attributable to
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About
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, restructuring, declines in the value of
| Koppers Holdings Inc. | |||||||||||||||||
| Unaudited Consolidated Statement of Income | |||||||||||||||||
| (Dollars in millions, except per share amounts) | |||||||||||||||||
| Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||||||
| Net sales | $ | 370.9 | $ | 411.3 | $ | 741.3 | $ | 792.2 | |||||||||
| Cost of sales (excluding items below) | 318.9 | 344.9 | 639.4 | 671.8 | |||||||||||||
| Depreciation and amortization | 7.3 | 7.6 | 14.6 | 14.4 | |||||||||||||
| Selling, general and administrative expenses | 16.2 | 18.1 | 33.9 | 36.1 | |||||||||||||
| Operating profit | 28.5 | 40.7 | 53.4 | 69.9 | |||||||||||||
| Other income | 1.0 | 0.4 | 1.5 | 1.1 | |||||||||||||
| Interest expense | 6.6 | 7.0 | 13.5 | 13.9 | |||||||||||||
| Income before income taxes | 22.9 | 34.1 | 41.4 | 57.1 | |||||||||||||
| Income taxes | 8.1 | 13.0 | 15.2 | 20.2 | |||||||||||||
| Income from continuing operations | 14.8 | 21.1 | 26.2 | 36.9 | |||||||||||||
| Loss from discontinued operations, net of tax | (0.1 | ) | (0.2 | ) | -- | (0.1 | ) | ||||||||||
| Net income | 14.7 | 20.9 | 26.2 | 36.8 | |||||||||||||
| Net income attributable to noncontrolling interests | 0.3 | 0.5 | 0.8 | 0.8 | |||||||||||||
| Net income attributable to Koppers | $ | 14.4 | $ | 20.4 | $ | 25.4 | $ | 36.0 | |||||||||
| Earnings (loss) per common share: | |||||||||||||||||
| Basic- | |||||||||||||||||
| Continuing operations | $ | 0.70 | $ | 1.00 | $ | 1.23 | $ | 1.74 | |||||||||
| Discontinued operations | (0.01 | ) | (0.01 | ) | -- | -- | |||||||||||
| Earnings per basic common share | $ | 0.69 | $ | 0.99 | $ | 1.23 | $ | 1.74 | |||||||||
| Diluted- | |||||||||||||||||
| Continuing operations | $ | 0.70 | $ | 0.99 | $ | 1.21 | $ | 1.72 | |||||||||
| Discontinued operations | (0.01 | ) | (0.01 | ) | -- | -- | |||||||||||
| Earnings per diluted common share | $ | 0.69 | $ | 0.98 | $ | 1.21 | $ | 1.72 | |||||||||
| Weighted average shares outstanding (in thousands): | |||||||||||||||||
| Basic | 20,727 | 20,764 | 20,697 | 20,717 | |||||||||||||
| Diluted | 20,945 | 20,959 | 20,935 | 20,943 | |||||||||||||
| Dividends declared per common share | $ | 0.25 | $ | 0.24 | $ | 0.50 | $ | 0.48 | |||||||||
| Koppers Holdings Inc. | |||||||||
| Unaudited Condensed Consolidated Balance Sheet | |||||||||
| (Dollars in millions, except per share amounts) | |||||||||
| June 30, 2013 | December 31, 2012 | ||||||||
| Assets | |||||||||
| Cash and cash equivalents | $ | 63.2 | $ | 66.7 | |||||
| Restricted cash | 1.5 | -- | |||||||
| Accounts receivable, net of allowance of $3.5 and $3.7 | 166.6 | 162.7 | |||||||
| Inventories, net | 184.3 | 195.8 | |||||||
| Deferred tax assets | 14.9 | 15.1 | |||||||
| Loan to related party | 9.5 | 9.5 | |||||||
| Other current assets | 31.5 | 31.4 | |||||||
| Total current assets | 471.5 | 481.2 | |||||||
| Equity in non-consolidated investments | 6.2 | 5.8 | |||||||
| Property, plant and equipment, net | 161.2 | 161.1 | |||||||
| Goodwill | 72.8 | 75.6 | |||||||
| Deferred tax assets | 22.8 | 27.2 | |||||||
| Other assets | 28.0 | 29.1 | |||||||
| Total assets | $ | 762.5 | $ | 780.0 | |||||
| Liabilities | |||||||||
| Accounts payable | $ | 101.4 | $ | 103.5 | |||||
| Accrued liabilities | 56.4 | 72.1 | |||||||
| Dividends payable | 5.8 | 5.6 | |||||||
| Total current liabilities | 163.6 | 181.2 | |||||||
| Long-term debt | 301.4 | 296.1 | |||||||
| Accrued postretirement benefits | 77.2 | 89.9 | |||||||
| Other long-term liabilities | 43.2 | 44.7 | |||||||
| Total liabilities | 585.4 | 611.9 | |||||||
| Commitments and contingent liabilities | |||||||||
| Equity | |||||||||
| Senior Convertible Preferred Stock, $0.01 par value per share; 10,000,000 shares authorized; no shares issued | -- | -- | |||||||
| Common Stock, $0.01 par value per share; 40,000,000 shares authorized; 21,722,492 and 21,585,129 shares issued | 0.2 | 0.2 | |||||||
| Additional paid-in capital | 156.7 | 153.3 | |||||||
| Retained earnings | 66.8 | 52.0 | |||||||
| Accumulated other comprehensive loss | (32.5 | ) | (22.0 | ) | |||||
| Treasury stock, at cost; 990,594 and 951,026 shares | (34.6 | ) | (32.9 | ) | |||||
| Total Koppers shareholders' equity | 156.6 | 150.6 | |||||||
| Noncontrolling interests | 20.5 | 17.5 | |||||||
| Total equity | $ | 177.1 | $ | 168.1 | |||||
| Total liabilities and equity | $ | 762.5 | $ | 780.0 | |||||
| Koppers Holdings Inc. | ||||||||||||
| Unaudited Condensed Consolidated Statement of Cash Flows | ||||||||||||
| (Dollars in millions) | ||||||||||||
| Six Months Ended June 30, 2013 |
Six Months Ended June 30, 2012 |
|||||||||||
| Cash provided by (used in) operating activities: | ||||||||||||
| Net income | $ | 26.2 | $ | 36.8 | ||||||||
| Adjustments to reconcile net cash provided by operating activities: | ||||||||||||
| Depreciation and amortization | 14.6 | 14.4 | ||||||||||
| Deferred income taxes | 1.8 | 4.4 | ||||||||||
| Equity income, net of dividends received | (0.4 | ) | (0.8 | ) | ||||||||
| Gain on sale of assets | (0.8 | ) | -- | |||||||||
| Change in other liabilities | (8.6 | ) | (4.8 | ) | ||||||||
| Non-cash interest expense | 0.8 | 0.8 | ||||||||||
| Stock-based compensation | 2.8 | 3.2 | ||||||||||
| Other | 0.4 | (1.0 | ) | |||||||||
| (Increase) decrease in working capital: | ||||||||||||
| Accounts receivable | (6.1 | ) | (34.7 | ) | ||||||||
| Inventories | 5.7 | (31.0 | ) | |||||||||
| Accounts payable | (0.2 | ) | 12.5 | |||||||||
| Accrued liabilities and other working capital | (16.2 | ) | 3.6 | |||||||||
| Net cash provided by operating activities | $ | 20.0 | $ | 3.4 | ||||||||
| Cash provided by (used in) investing activities: | ||||||||||||
| Capital expenditures | $ | (15.7 | ) | $ | (9.3 | ) | ||||||
| Net cash proceeds from divestitures and asset sales | 0.9 | 0.4 | ||||||||||
| Net cash used in investing activities | $ | (14.8 | ) | $ | (8.9 | ) | ||||||
| Cash provided by (used in) financing activities: | ||||||||||||
| Borrowings of revolving credit | $ | 86.3 | $ | 169.0 | ||||||||
| Repayments of revolving credit | (81.2 | ) | (157.0 | ) | ||||||||
| Issuances of Common Stock | 0.2 | 0.6 | ||||||||||
| Repurchases of Common Stock | (1.6 | ) | (1.7 | ) | ||||||||
| Proceeds from issuance of noncontrolling interest | 2.3 | -- | ||||||||||
| Payment of deferred financing costs | (1.2 | ) | -- | |||||||||
| Dividends paid | (10.2 | ) | (9.5 | ) | ||||||||
| Net cash provided by (used in) financing activities | $ | (5.4 | ) | $ | 1.4 | |||||||
| Effect of exchange rate changes on cash | (3.3 | ) | 0.3 | |||||||||
| Net decrease in cash and cash equivalents | $ | (3.5 | ) | $ | (3.8 | ) | ||||||
| Cash and cash equivalents at beginning of year | 66.7 | 54.1 | ||||||||||
| Cash and cash equivalents at end of period | $ | 63.2 | $ | 50.3 | ||||||||
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, |
|||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||||
| (Dollars in millions) | ||||||||||||||||||
| Net sales: | ||||||||||||||||||
| Carbon Materials and Chemicals | $ | 220.3 | $ | 266.7 | $ | 450.8 | $ | 516.2 | ||||||||||
| Railroad and Utility Products | 150.6 | 144.6 | 290.5 | 276.0 | ||||||||||||||
| Total | $ | 370.9 | $ | 411.3 | $ | 741.3 | $ | 792.2 | ||||||||||
| Operating profit: | ||||||||||||||||||
| Carbon Materials and Chemicals | $ | 12.5 | $ | 26.2 | $ | 25.6 | $ | 46.7 | ||||||||||
| Railroad and Utility Products | 16.5 | 15.0 | 28.8 | 24.1 | ||||||||||||||
| Corporate | (0.5 | ) | (0.5 | ) | (1.0 | ) | (0.9 | ) | ||||||||||
| Total | $ | 28.5 | $ | 40.7 | $ | 53.4 | $ | 69.9 | ||||||||||
| Operating margin: | ||||||||||||||||||
| Carbon Materials and Chemicals | 5.7 | % | 9.8 | % | 5.7 | % | 9.0 | % | ||||||||||
| Railroad and Utility Products | 11.0 | % | 10.4 | % | 9.9 | % | 8.7 | % | ||||||||||
| Total | 7.7 | % | 9.9 | % | 7.2 | % | 8.8 | % | ||||||||||
| Adjusted operating profit (1): | ||||||||||||||||||
| Carbon Materials and Chemicals | $ | 12.5 | $ | 26.2 | $ | 25.6 | $ | 46.7 | ||||||||||
| Railroad and Utility Products | 16.9 | 16.1 | 29.7 | 25.2 | ||||||||||||||
| All Other | (0.5 | ) | (0.5 | ) | (1.0 | ) | (0.9 | ) | ||||||||||
| Total | $ | 28.9 | $ | 41.8 | $ | 54.3 | $ | 71.0 | ||||||||||
| Adjusted operating margin: | ||||||||||||||||||
| Carbon Materials and Chemicals | 5.7 | % | 9.8 | % | 5.7 | % | 9.0 | % | ||||||||||
| Railroad and Utility Products | 11.2 | % | 11.1 | % | 10.2 | % | 9.1 | % | ||||||||||
| Total | 7.8 | % | 10.2 | % | 7.3 | % | 9.0 | % | ||||||||||
| (1) | Cost of sales for RUPS for the three and six months ended June 30, 2013 includes $0.4 million and $0.9 million, respectively, of pre-tax expense related to the June 2012 closing of our wood treating plant in Grenada, Mississippi. Cost of sales for RUPS for the three and six months ended June 30, 2012 includes $0.5 million of pre-tax expense related to the Grenada closure, and depreciation and amortization for RUPS for the three and six months ended June 30, 2012 includes $0.6 million of impairment charges for our co-generation plant in Muncy, Pennsylvania. |
Although
| UNAUDITED RECONCILIATION OF NET INCOME ATTRIBUTABLE TO KOPPERS AND ADJUSTED NET INCOME | |||||||||||||
| (In millions) | |||||||||||||
| Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||
| Net income attributable to Koppers | $ | 14.4 | $ | 20.4 | $ | 25.4 | $ | 36.0 | |||||
| Items impacting pre-tax income (1) | |||||||||||||
| Impairment and closure costs | 0.4 | 1.1 | 0.9 | 1.1 | |||||||||
| Items impacting net income, net of tax | 0.2 | 0.7 | 0.5 | 0.7 | |||||||||
| Income tax provision for European consolidation | -- | 0.8 | -- | 0.8 | |||||||||
| Adjusted net income including discontinued operations | 14.6 | 21.9 | 25.9 | 37.5 | |||||||||
| Discontinued operations | 0.1 | 0.2 | -- | 0.1 | |||||||||
| Adjusted net income | $ | 14.7 | $ | 22.1 | $ | 25.9 | $ | 37.6 | |||||
| (1) | Cost of sales for RUPS for the three and six months ended June 30, 2013 includes $0.4 million and $0.9 million, respectively, of pre-tax expense related to the June 2012 closing of our wood treating plant in Grenada, Mississippi and cost of sales for RUPS for the three and six months ended June 30, 2012 includes $0.5 million of pre-tax expense related to the Grenada closure, and depreciation and amortization for RUPS for the three and six months ended June 30, 2012 includes $0.6 million of impairment charges for our co-generation plant in Muncy, Pennsylvania. Income taxes for the three and six months ended June 30, 2012 includes $0.8 million of expense related to the Company's European consolidation project. |
| 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, |
|||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||
| Net income attributable to Koppers | $ | 14.4 | $ | 20.4 | $ | 25.4 | $ | 36.0 | ||||
| Adjusted net income including discontinued operations (from above) | $ | 14.6 | $ | 21.9 | $ | 25.9 | $ | 37.5 | ||||
| Adjusted net income (from above) | $ | 14.7 | $ | 22.1 | $ | 25.9 | $ | 37.6 | ||||
| Denominator for diluted earnings per share (in thousands) | 20,945 | 20,959 | 20,935 | 20,943 | ||||||||
| Earnings per share: | ||||||||||||
| Diluted earnings per share | $ | 0.69 | $ | 0.98 | $ | 1.21 | $ | 1.72 | ||||
| Adjusted earnings per share including discontinued operations | $ | 0.70 | $ | 1.04 | $ | 1.24 | $ | 1.79 | ||||
| Adjusted earnings per share | $ | 0.70 | $ | 1.05 | $ | 1.24 | $ | 1.80 | ||||
| UNAUDITED RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA | ||||||||||||||
| (In millions except share amounts) | ||||||||||||||
| Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||
| Net income | $ | 14.7 | $ | 20.9 | $ | 26.2 | $ | 36.8 | ||||||
| Interest expense | 6.6 | 7.0 | 13.5 | 13.9 | ||||||||||
| Depreciation and amortization | 7.3 | 7.6 | 14.6 | 14.4 | ||||||||||
| Income tax provision | 8.1 | 13.0 | 15.2 | 20.2 | ||||||||||
| Discontinued operations | 0.1 | 0.2 | -- | 0.1 | ||||||||||
| EBITDA with noncontrolling interests | 36.8 | 48.7 | 69.5 | 85.4 | ||||||||||
| Unusual items impacting net income (1) | ||||||||||||||
| Closure costs | 0.4 | 0.5 | 0.9 | 0.5 | ||||||||||
| Adjusted EBITDA with noncontrolling interests | $ | 37.2 | $ | 49.2 | $ | 70.4 | $ | 85.9 | ||||||
| (1) | Cost of sales for RUPS for the three and six months ended June 30, 2013 includes $0.4 million and $0.9 million, respectively, of pre-tax expense related to the June 2012 closing of our wood treating plant in Grenada, Mississippi, and cost of sales for RUPS for the three and six months ended June 30, 2012 includes $0.5 million of pre-tax expense related to the Grenada closure. |
For Information:
Vice President and Chief Financial Officer
412-227-2118
Email Contact
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