Koppers Holdings Inc. · NYSE:KOP
Koppers — Q3 2019 Earnings Presentation
23 slides from Koppers's earnings presentation, Nov 7, 2019
Slide 1: Q3 2019 Earnings Call & Webcast
Q3 2019 Earnings Call & Webcast November 7, 2019
Slide 2: Forward Looking Statement
Forward Looking Statement Certain statements in this presentation 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, profitability and anticip
Slide 3: Q3 Results
Q3 Results 3
Slide 4: Q3: Record Sales of $475M Driven by Wood-Preservation Businesses
Q3: Record Sales of $475M Driven by Wood-Preservation Businesses Sales ($in Millions) 4
Slide 5: Q3: Third-Quarter Record Adj EBITDA of $61M
Q3: Third-Quarter Record Adj EBITDA of $61M Higher Profitability in All Business Segments Adjusted EBITDA ($in Millions) 5
Slide 6: Refocus on Debt Reduction: $80M Minimum in 2019
Refocus on Debt Reduction: $80M Minimum in 2019 Net Leverage Ratio 6.0 5.1 4.7 4.8 5.0 4.6 4.2 4.2 4.0 3.7 4.1 3.1 3.8 3.0 2.0 1.0 0.0 2014 2015 2016 2017 2018 (a) Q1 2019 Q2 2019 Q3 2019 Q4 2019 Projected (a) Pro-forma • Proven track record of disciplined debt reduction (2015-2017) Net Leverage • N
Slide 7: 2019 Guidance
2019 Guidance 7
Slide 8: 2019 Adjusted EBITDA Forecast: RUPS
2019 Adjusted EBITDA Forecast: RUPS Full-year of Acquisitions; Favorable Volumes & Pricing; Higher Crosstie Procurement Adjusted EBITDA* ($ in millions) $62-$64 $13-$15 * Excluding special charges 8
Slide 9: 2019 Adjusted EBITDA Forecast: PC Volumes Will Drive Improvement
2019 Adjusted EBITDA Forecast: PC Volumes Will Drive Improvement Adjusted EBITDA* ($ in millions) $13-$14 $71-$72 * Excluding special charges 9
Slide 10: 2019 Adjusted EBITDA Forecast: CMC Represents Return to Normalized Profitability
2019 Adjusted EBITDA Forecast: CMC Represents Return to Normalized Profitability Adjusted EBITDA* ($ in millions) $82-$84 ($17)-($19) * Excluding special charges 10
Slide 11: 2019 Sales Forecast of $1.8B: Growth Driven by Wood-Based Businesses
2019 Sales Forecast of $1.8B: Growth Driven by Wood-Based Businesses Sales ($ in millions) ~$1.8B 11
Slide 12: 2019 Adjusted EBITDA Forecast: Improved Profitability in Wood-Based Businesses
2019 Adjusted EBITDA Forecast: Improved Profitability in Wood-Based Businesses Adjusted EBITDA* ($ in millions) $9-$10 $21-$23 $215-$220 ($35)-($37) * Excluding special charges 12
Slide 13: Q&A Session
Q&A Session
Slide 14: Appendix
Appendix
Slide 15: Non-GAAP Measures and Guidance
Non-GAAP Measures and Guidance This presentation includes unaudited “non-GAAP financial measures” as defined in Regulation G under the Securities Exchange Act of 1934, including adjusted EBITDA and net leverage ratio. Koppers believes that the presentation of non-GAAP financial measures such as adju
Slide 16: Unaudited Segment Information
Unaudited Segment Information Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (Dollars in millions) Net sales: Railroad and Utility Products and Services $ 198.8 $ 185.0 $ 564.0 $ 470.6 Performance Chemicals 123.9 108.2 343.7 320.7 Carbon Materials and Chemicals
Slide 17: Unaudited Reconciliation of Operating Profit to EBITDA and Adjusted EBITDA
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 $ 17.1 $ (0.5 ) $ 39.6 Other (loss) income (0.6 ) 0.3 0.0 0.3 0.0 Depreciation and amor
Slide 18: Unaudited Reconciliation of Operating Profit to EBITDA and Adjusted EBITDA
Unaudited Reconciliation of Operating Profit to EBITDA and Adjusted EBITDA* (In millions) Three months ended September 30, 2018 Corporate RUPS PC CMC Unallocated Consolidated Operating profit (loss) $ 5.8 $ 11.0 $ 14.9 $ (0.5 ) $ 31.2 Other income (loss) (0.2 ) 0.2 (0.6 ) (0.1 ) (0.7 ) Depreciation
Slide 19: Unaudited Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Unaudited Reconciliation of Net Income to EBITDA and Adjusted EBITDA* (In millions) Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net income $ 20.4 $ 6.9 $ 47.2 $ 31.6 Interest expense 15.5 15.1 48.2 40.1 Depreciation and amortization 14.3 14.0 42.3 42.2 Deprec
Slide 20: Unaudited Reconciliation of Total Debt To Net Debt and Net Leverage Ratio
Unaudited Reconciliation of Total Debt To Net Debt and Net Leverage Ratio 20
Slide 21: Unaudited Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Unaudited Reconciliation of Net Income to EBITDA and Adjusted EBITDA 21
Slide 22: Koppers Holdings Inc. 436 Seventh Avenue Pittsburgh, PA 15219-1800
Koppers Holdings Inc. 436 Seventh Avenue Pittsburgh, PA 15219-1800 Koppers is an integrated global provider of treated wood products, wood treatment chemicals and carbon compounds for the railroad, specialty chemical, utility, residential lumber, agriculture, aluminum, steel, rubber, and constructio
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