Consolidated sales of
Net loss attributable to
Adjusted EBITDA for the quarter ended
Consolidated sales of
Net income attributable to
Adjusted EBITDA for the year ended
Commenting on the results,
The following reconciliations are attached to this press release: Unaudited Reconciliation of Net Income Attributable to
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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 December 31, |
Twelve Months Ended December 31, |
||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net sales | $ | 341.8 | $ | 374.9 | $ | 1,478.3 | $ | 1,555.0 | |||||||||
Cost of sales (excluding items below) | 294.7 | 321.4 | 1,264.7 | 1,324.6 | |||||||||||||
Depreciation and amortization | 19.8 | 7.1 | 41.6 | 28.2 | |||||||||||||
Selling, general and administrative expenses | 19.5 | 20.5 | 71.7 | 75.6 | |||||||||||||
Operating profit | 7.8 | 25.9 | 100.3 | 126.6 | |||||||||||||
Other income | 0.7 | 0.2 | 3.5 | 1.9 | |||||||||||||
Interest expense | 6.6 | 7.1 | 26.8 | 27.9 | |||||||||||||
Income before income taxes | 1.9 | 19.0 | 77.0 | 100.6 | |||||||||||||
Income taxes | 7.5 | 4.8 | 36.8 | 33.3 | |||||||||||||
Income (loss) from continuing operations | (5.6 | ) | 14.2 | 40.2 | 67.3 | ||||||||||||
Loss from discontinued operations, net of tax | -- | -- | (0.1 | ) | (0.1 | ) | |||||||||||
Net income (loss) | (5.6 | ) | 14.2 | 40.1 | 67.2 | ||||||||||||
Net income attributable to noncontrolling interests | (1.5 | ) | 0.6 | (0.3 | ) | 1.6 | |||||||||||
Net income (loss) attributable to Koppers | $ | (4.1 | ) | $ | 13.6 | $ | 40.4 | $ | 65.6 | ||||||||
Earnings (loss) per common share: | |||||||||||||||||
Basic- | |||||||||||||||||
Continuing operations | $ | (0.20 | ) | $ | 0.66 | $ | 1.96 | $ | 3.18 | ||||||||
Discontinued operations | -- | -- | -- | (0.01 | ) | ||||||||||||
Earnings (loss) per basic common share | $ | (0.20 | ) | $ | 0.66 | $ | 1.96 | $ | 3.17 | ||||||||
Diluted- | |||||||||||||||||
Continuing operations | $ | (0.20 | ) | $ | 0.65 | $ | 1.94 | $ | 3.14 | ||||||||
Discontinued operations | -- | -- | -- | (0.01 | ) | ||||||||||||
Earnings (loss) per diluted common share | $ | (0.20 | ) | $ | 0.65 | $ | 1.94 | $ | 3.13 | ||||||||
Weighted average shares outstanding (in thousands): | |||||||||||||||||
Basic | 20,332 | 20,600 | 20,575 | 20,681 | |||||||||||||
Diluted | 20,597 | 20,851 | 20,815 | 20,927 | |||||||||||||
Dividends declared per common share | $ | 0.25 | $ | 0.24 | $ | 1.00 | $ | 0.96 | |||||||||
Koppers Holdings Inc. | |||||||||
Unaudited Condensed Consolidated Balance Sheet | |||||||||
(Dollars in millions, except per share amounts) | |||||||||
December 31, 2013 | December 31, 2012 | ||||||||
Assets | |||||||||
Cash and cash equivalents | $ | 82.2 | $ | 66.7 | |||||
Accounts receivable, net of allowance of $3.6 and $3.7 | 157.9 | 162.7 | |||||||
Income tax receivable | 9.0 | 1.6 | |||||||
Inventories, net | 168.8 | 195.8 | |||||||
Deferred tax assets | 10.0 | 15.1 | |||||||
Loan to related party | 9.5 | 9.5 | |||||||
Other current assets | 35.7 | 29.8 | |||||||
Total current assets | 473.1 | 481.2 | |||||||
Equity in non-consolidated investments | 6.6 | 5.8 | |||||||
Property, plant and equipment, net | 197.0 | 161.1 | |||||||
Goodwill | 72.7 | 75.6 | |||||||
Deferred tax assets | 9.3 | 27.2 | |||||||
Other assets | 26.2 | 29.1 | |||||||
Total assets | $ | 784.9 | $ | 780.0 | |||||
Liabilities | |||||||||
Accounts payable | $ | 107.6 | $ | 103.5 | |||||
Accrued liabilities | 82.4 | 72.1 | |||||||
Dividends payable | 5.1 | 5.6 | |||||||
Total current liabilities | 195.1 | 181.2 | |||||||
Long-term debt | 303.1 | 296.1 | |||||||
Accrued postretirement benefits | 41.6 | 89.9 | |||||||
Other long-term liabilities | 55.3 | 44.7 | |||||||
Total liabilities | 595.1 | 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 | 158.9 | 153.3 | |||||||
Retained earnings | 71.3 | 52.0 | |||||||
Accumulated other comprehensive loss | (10.2 | ) | (22.0 | ) | |||||
Treasury stock, at cost; 1,390,494 and 951,026 shares | (50.4 | ) | (32.9 | ) | |||||
Total Koppers shareholders' equity | 169.8 | 150.6 | |||||||
Noncontrolling interests | 20.0 | 17.5 | |||||||
Total equity | $ | 189.8 | $ | 168.1 | |||||
Total liabilities and equity | $ | 784.9 | $ | 780.0 | |||||
Koppers Holdings Inc. | ||||||||||||
Unaudited Condensed Consolidated Statement of Cash Flows | ||||||||||||
(Dollars in millions) | ||||||||||||
Twelve Months Ended December 31, 2013 |
Twelve Months Ended December 31, 2012 |
|||||||||||
Cash provided by (used in) operating activities: | ||||||||||||
Net income | $ | 40.1 | $ | 67.2 | ||||||||
Adjustments to reconcile net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 41.6 | 28.2 | ||||||||||
(Gain) loss on sale of fixed assets | (2.3 | ) | 0.1 | |||||||||
Deferred income taxes | 19.5 | 8.0 | ||||||||||
Non-cash interest expense | 1.7 | 1.7 | ||||||||||
Equity income, net of dividends received | (0.8 | ) | (0.8 | ) | ||||||||
Change in other liabilities | (13.3 | ) | (13.0 | ) | ||||||||
Stock-based compensation | 4.3 | 6.9 | ||||||||||
Other | 0.5 | (1.1 | ) | |||||||||
Decrease (increase) in working capital: | ||||||||||||
Accounts receivable | 2.9 | (0.2 | ) | |||||||||
Inventories | 21.6 | (26.5 | ) | |||||||||
Accounts payable | 4.9 | (0.1 | ) | |||||||||
Accrued liabilities and other working capital | (3.1 | ) | 7.4 | |||||||||
Net cash provided by operating activities | 117.6 | 77.8 | ||||||||||
Cash provided by (used in) investing activities: | ||||||||||||
Capital expenditures | (72.9 | ) | (28.9 | ) | ||||||||
Acquisitions, net of cash acquired | (2.3 | ) | (14.0 | ) | ||||||||
Net cash proceeds (payments) from loan to related party | -- | 2.2 | ||||||||||
Net cash proceeds from divestitures and asset sales | 2.9 | 0.8 | ||||||||||
Net cash used in investing activities | (72.3 | ) | (39.9 | ) | ||||||||
Cash (used in) provided by financing activities: | ||||||||||||
Borrowings of revolving credit | 97.9 | 259.4 | ||||||||||
Repayments of revolving credit | (97.9 | ) | (265.8 | ) | ||||||||
Borrowings of long-term debt | 6.6 | -- | ||||||||||
Issuances of Common Stock | 0.2 | 1.5 | ||||||||||
Repurchases of Common Stock | (17.5 | ) | (8.1 | ) | ||||||||
Proceeds from issuance of noncontrolling interest | 2.3 | 3.7 | ||||||||||
Excess tax benefit from employee stock plans | 0.5 | 1.6 | ||||||||||
Payment of deferred financing costs | (1.3 | ) | (0.1 | ) | ||||||||
Dividends paid | (21.1 | ) | (19.5 | ) | ||||||||
Net cash used in financing activities | (30.3 | ) | (27.3 | ) | ||||||||
Effect of exchange rate changes on cash | 0.5 | 2.0 | ||||||||||
Net increase in cash and cash equivalents | 15.5 | 12.6 | ||||||||||
Cash and cash equivalents at beginning of year | 66.7 | 54.1 | ||||||||||
Cash and cash equivalents at end of period | $ | 82.2 | $ | 66.7 | ||||||||
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 December 31, |
Twelve Months Ended December 31, |
|||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Net sales: | ||||||||||||||||||
Carbon Materials and Chemicals | $ | 213.7 | $ | 242.4 | $ | 906.1 | $ | 999.7 | ||||||||||
Railroad and Utility Products and Services | 128.1 | 132.5 | 572.2 | 555.3 | ||||||||||||||
Total | $ | 341.8 | $ | 374.9 | $ | 1,478.3 | $ | 1,555.0 | ||||||||||
Operating profit: | ||||||||||||||||||
Carbon Materials and Chemicals | $ | (3.5 | ) | $ | 18.0 | $ | 43.9 | $ | 83.1 | |||||||||
Railroad and Utility Products and Services | 11.7 | 8.2 | 58.3 | 45.1 | ||||||||||||||
Corporate | (0.4 | ) | (0.3 | ) | (1.9 | ) | (1.6 | ) | ||||||||||
Total | $ | 7.8 | $ | 25.9 | $ | 100.3 | $ | 126.6 | ||||||||||
Operating margin: | ||||||||||||||||||
Carbon Materials and Chemicals | (1.6) | % | 7.4 | % | 4.8 | % | 8.3 | % | ||||||||||
Railroad and Utility Products and Services | 9.1 | % | 6.2 | % | 10.2 | % | 8.1 | % | ||||||||||
Total | 2.3 | % | 6.9 | % | 6.8 | % | 8.1 | % | ||||||||||
Adjusted operating profit (1): | ||||||||||||||||||
Carbon Materials and Chemicals | $ | 13.0 | $ | 18.0 | $ | 60.4 | $ | 83.1 | ||||||||||
Railroad and Utility Products and Services | 12.2 | 8.6 | 59.8 | 48.5 | ||||||||||||||
All Other | (0.4 | ) | (0.3 | ) | (1.9 | ) | (1.6 | ) | ||||||||||
Total | $ | 24.8 | $ | 26.3 | $ | 118.3 | $ | 130.0 | ||||||||||
Adjusted operating margin: | ||||||||||||||||||
Carbon Materials and Chemicals | 6.1 | % | 7.4 | % | 6.7 | % | 8.3 | % | ||||||||||
Railroad and Utility Products and Services | 9.5 | % | 6.5 | % | 10.5 | % | 8.7 | % | ||||||||||
Total | 7.3 | % | 7.0 | % | 8.0 | % | 8.4 | % | ||||||||||
(1) | Cost of sales for CMC for the three and twelve months ended December 31, 2013 includes $3.6 million of pre-tax expense consisting of $1.0 million related to capacity rationalization activities at our Follansbee, West Virginia and Uithoorn, The Netherlands facilities, and $2.6 million for tank and tank car cleaning expenses. Cost of sales for RUPS for the three months ended December 31, 2013 includes $0.5 million 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 twelve months ended December 31, 2013 includes $2.6 million of pre-tax expense related to Grenada and $1.1 million of income from environmental reserve reversals related to the sale of our former wood treating facility in Hume, Australia. Depreciation and amortization for CMC for the three and twelve months ended December 31, 2013 includes $12.3 million of pre-tax expense comprised of $12.0 million of impairment charges for our Tangshan, China, Follansbee, West Virginia, Portland, Oregon and Uithoorn, The Netherlands facilities and $0.3 million of charges related to tank and tank car cleaning expenses. Selling, general and administrative expense for CMC for the three and twelve months ended December 31, 2013 includes $0.6 million of pre-tax expense related to the discontinuation of distillation activities at the Uithoorn facility. Cost of sales for RUPS for the three and twelve months ended December 31, 2012 includes $0.4 million and $2.8 million, respectively, of pre-tax expense related to the Grenada closure, and depreciation and amortization for RUPS for the twelve months ended December 31, 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 December 31, |
Twelve Months Ended December 31, |
||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income (loss) attributable to Koppers | $ | (4.1 | ) | $ | 13.6 | $ | 40.4 | $ | 65.6 | ||||||
Items impacting pre-tax income (1) | |||||||||||||||
Impairment and restructuring costs | 14.1 | 0.4 | 16.2 | 3.4 | |||||||||||
Sale of former wood treating facility | -- | -- | (1.8 | ) | -- | ||||||||||
Tank cleaning and repair costs | 2.9 | -- | 2.9 | -- | |||||||||||
Items impacting net income, net of tax and non-controlling interests | 13.1 | 0.3 | 13.6 | 2.2 | |||||||||||
Income tax provision for European consolidation | -- | -- | -- | 0.8 | |||||||||||
Adjusted net income including discontinued operations | 9.0 | 13.9 | 54.0 | 68.6 | |||||||||||
Discontinued operations | -- | -- | 0.1 | 0.1 | |||||||||||
Adjusted net income | $ | 9.0 | $ | 13.9 | $ | 54.1 | $ | 68.7 | |||||||
(1) | Cost of sales for CMC for the three and twelve months ended December 31, 2013 includes $3.6 million of pre-tax expense consisting of $1.0 million related to capacity rationalization activities at our Follansbee and Uithoorn facilities, and $2.6 million for tank and tank car cleaning expenses. Cost of sales for RUPS for the three months ended December 31, 2013 includes $0.5 million of pre-tax expense related to the June 2012 closing of our Grenada facility and cost of sales for RUPS for the twelve months ended December 31, 2013 includes $2.6 million of pre-tax expense related to Grenada and $1.1 million of income from environmental reserve reversals related to the sale of our Hume facility. Depreciation and amortization for CMC for the three and twelve months ended December 31, 2013 includes $12.3 million of pre-tax expense comprised of $12.0 million of impairment charges for our Tangshan, Follansbee, Portland, and Uithoorn facilities and $0.3 million of charges related to tank and tank car cleaning expenses. Selling, general and administrative expense for CMC for the three and twelve months ended December 31, 2013 includes $0.6 million of pre-tax expense related to the discontinuation of distillation activities at the Uithoorn facility. Other income for the three and twelve months ended December 31, 2013 includes $0.7 million of gain on sale of assets related to our Hume facility. Cost of sales for RUPS for the three and twelve months ended December 31, 2012 includes $0.4 million and $2.8 million, respectively, of pre-tax expense related to the Grenada closure, and depreciation and amortization for RUPS for the twelve months ended December 31, 2012 includes $0.6 million of impairment charges for our Muncy co-generation facility. Income taxes for the twelve months ended December 31, 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 December 31, |
Twelve Months Ended December 31, |
||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Net income (loss) attributable to Koppers | $ | (4.1 | ) | $ | 13.6 | $ | 40.4 | $ | 65.6 | ||||
Adjusted net income including discontinued operations (from above) | $ | 9.0 | $ | 13.9 | $ | 54.0 | $ | 68.6 | |||||
Adjusted net income (from above) | $ | 9.0 | $ | 13.9 | $ | 54.1 | $ | 68.7 | |||||
Denominator for diluted earnings per share (in thousands) | 20,597 | 20,851 | 20,815 | 20,927 | |||||||||
Earnings (loss) per share: | |||||||||||||
Diluted earnings (loss) per share | $ | (0.20 | ) | $ | 0.65 | $ | 1.94 | $ | 3.13 | ||||
Adjusted earnings per share including discontinued operations | $ | 0.44 | $ | 0.66 | $ | 2.59 | $ | 3.27 | |||||
Adjusted earnings per share | $ | 0.44 | $ | 0.66 | $ | 2.60 | $ | 3.27 | |||||
UNAUDITED RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA | ||||||||||||||||
(In millions except share amounts) | ||||||||||||||||
Three Months Ended December 31, |
Twelve Months Ended December 31, |
|||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income (loss) | $ | (5.6 | ) | $ | 14.2 | $ | 40.1 | $ | 67.2 | |||||||
Interest expense | 6.6 | 7.1 | 26.8 | 27.9 | ||||||||||||
Depreciation and amortization | 19.8 | 7.1 | 41.6 | 28.2 | ||||||||||||
Income tax provision | 7.5 | 4.8 | 36.8 | 33.3 | ||||||||||||
Discontinued operations | -- | -- | 0.1 | 0.1 | ||||||||||||
EBITDA with noncontrolling interests | 28.3 | 33.2 | 145.4 | 156.7 | ||||||||||||
Unusual items impacting net income (1) | ||||||||||||||||
Restructuring costs | 2.1 | 0.4 | 4.2 | 2.8 | ||||||||||||
Sale of former wood treating facility | -- | -- | (1.8 | ) | -- | |||||||||||
Tank cleaning and repair costs | 2.6 | -- | 2.6 | -- | ||||||||||||
Adjusted EBITDA with noncontrolling interests | $ | 33.0 | $ | 33.6 | $ | 150.4 | $ | 159.5 | ||||||||
(1) | Cost of sales for CMC for the three and twelve months ended December 31, 2013 includes $3.6 million of pre-tax expense consisting of $1.0 million related to capacity rationalization activities at our Follansbee and Uithoorn facilities, and $2.6 million for tank and tank car cleaning expenses. Cost of sales for RUPS for the three months ended December 31, 2013 includes $0.5 million of pre-tax expense related to the June 2012 closing of our Grenada facility, and cost of sales for RUPS for the twelve months ended December 31, 2013 includes $2.6 million of pre-tax expense related to Grenada and $1.1 million of income from environmental reserve reversals related to the sale of our Hume facility. Selling, general and administrative expense for CMC for the three and twelve months ended December 31, 2013 includes $0.6 million of pre-tax expense related to the discontinuation of distillation activities at the Uithoorn facility. Other income for the three and twelve months ended December 31, 2013 includes $0.7 million of gain on sale of assets related to our Hume facility. Cost of sales for RUPS for the three and twelve months ended December 31, 2012 includes $0.4 million and $2.8 million, respectively, of pre-tax expense related to the Grenada closure. |
For Information:
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