NYSE$KOP

Koppers Holdings Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported record-first quarter results with strong profitability driven by performance chemicals wood-treatment business.

Koppers Holdings Inc. reported a record-first quarter with net income attributable to Koppers of $25.9 million, or $1.18 per diluted share, compared to a net loss of $1.4 million, or $0.07 per diluted share, in the prior year quarter. Consolidated sales were $407.5 million, an increase of $5.6 million, or 1.4 percent, compared with $401.9 million in the prior year quarter. The Performance Chemicals segment continued to see strong sales growth and increased profitability.

  • Sales of $407.5 million vs. prior year of $401.9 million
  • Operating Profit of $43.9 million vs. prior year of $13.6 million
  • Net Income Attributable to Koppers of $25.9 million vs. Prior Year Net Loss of $1.4 million
  • Adjusted EBITDA of $55.1 million vs. Prior Year of $37.6 million

Headline financials

Total Revenue

$408M

Previous: $402M+1.4%
EPS (adj)

$1.02

Previous: $0.47+117.0%
Adjusted EBITDA

$55.1M

Previous: $37.6M+46.5%
Capital Expenditures

$24.2M

Previous: $10.6M+128.3%
Free Cash Flow

$1.7M

Previous: -$12M+114.2%
Net Income

$25.9M

Previous: -$1.4M+1950.0%
Operating Income

$43.9M

Previous: $13.6M+222.8%
Gross Profit

$88.2M

Previous: $61.6M+43.2%
Cash & Equivalents

$44.2M

Previous: $54.2M-18.5%
Total Assets

$1.65B

Previous: $1.57B+4.8%
Stock-Based Comp

$3.5M

Previous: $2.5M+40.0%

Revenue & EPS history

Koppers · Revenue · Quarterly

$408M

Q1 2021+1.4%vs Q1 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Koppers · $408M total across 3 segments · Q1 2021

  • Railroad & Utility Products
    $192M+1.0%
  • Performance Chemicals
    $124M+11.0%
  • Carbon Materials & Chemicals
    $92M-8.5%

Forward guidance

Koppers expects that 2021 sales will be approximately $1.7 billion to $1.8 billion and adjusted EBITDA will be approximately $220 million to $230 million. The 2021 adjusted EPS is forecasted to be in the range of $4.35 to $4.60.

Tailwinds

  • Strong first quarter performance
  • Increased confidence in an extended home improvement wave
  • 2021 should generate impressive year-over-year growth
  • Investments being made this year should add to our successful track record of earnings growth
  • Path that we believe will create more than $300 million in EBITDA by the end of 2025

Headwinds

  • Near-term economic uncertainty associated with the pandemic
  • Higher 2021 tax rate is primarily due to benefits in the prior year related to the federal Coronavirus Aid, Relief, and Economic Security Act and other tax regulations that are not expected to continue in 2021.
  • The higher tax rate anticipated in 2021 is estimated to have a negative impact on adjusted EPS of approximately $0.45 compared to 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.1%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+1.7%

Avg return

30 days after

44%

30 / 68 earnings

Positive

+26.3%

Q3 2019

Best reaction

-30.0%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+7.0%+3.7%-1.0%
Q4 2025+7.6%+6.4%+9.8%
Q3 2025-4.0%+2.6%+0.6%
Q1 2025+3.5%+16.4%+23.1%
Q4 2024-9.4%-13.5%-13.6%
Q3 2024-0.7%-0.3%-5.4%
Q2 2024-1.0%+4.1%+3.7%
Q1 2024-18.5%-15.7%-16.2%
Q4 2023+6.8%+0.0%+4.1%
Q3 2023-0.2%+2.2%+20.8%
Q2 2023+2.5%+2.2%+5.3%
Q1 2023+3.4%+1.4%+1.0%
Q4 2022+4.5%+9.3%-0.5%
Q3 2022+17.1%+10.8%+26.2%
Q2 2022-1.7%+0.8%-6.6%
Q1 2022-3.7%-4.9%+10.2%
Q4 2021+3.5%+4.3%+3.0%
Q3 2021-9.7%-10.1%-16.5%
Q2 2021+0.8%+6.2%+10.0%
Q1 2021+3.4%-4.1%-4.2%
Q4 2020-6.9%-5.9%-4.9%
Q3 2020+1.0%+1.7%+20.4%
Q2 2020+2.4%+3.9%-7.8%
Q1 2020+24.5%+7.3%+70.4%
Q4 2019-7.3%-16.9%-68.0%
Q3 2019+26.3%+22.2%+7.5%
Q2 2019+16.7%+21.2%+11.6%
Q1 2019+8.7%+11.3%-0.1%
Q4 2018+8.0%+8.3%+5.7%
Q3 2018-30.0%-23.9%-36.8%
Q2 2018-7.1%-7.5%-9.2%
Q1 2018-8.1%-11.2%-7.3%
Q4 2017-2.7%+0.2%-1.0%
Q3 2017+1.9%+0.5%+4.0%
Q2 2017+10.5%+8.5%+12.6%
Q1 2017-4.3%-4.3%-12.4%
Q4 2016-2.3%+0.5%-5.4%
Q3 2016-1.7%+2.0%+23.3%
Q2 2016+8.7%+7.7%+10.1%
Q1 2016+2.5%
Q4 2015+6.3%
Q3 2015+12.8%
Q2 2015+8.8%
Q1 2015+16.0%
Q4 2014-13.5%
Q3 2014-13.7%
Q2 2014-6.2%
Q1 2014-14.3%
Q4 2013-1.5%
Q3 2013+14.0%
Q2 2013-1.3%
Q1 2013-2.2%
Q4 2012-3.2%
Q3 2012-4.9%
Q2 2012-9.2%
Q1 2012-1.4%
Q4 2011-0.6%
Q1 2010-0.6%
Q3 2011-0.5%
Q2 2011-6.2%
Q1 2011+2.7%
Q4 2008-6.7%
Q4 2010-6.7%
Q3 2009+6.3%
Q3 2010+6.3%
Q2 2009-7.8%
Q4 2009-7.8%
Q2 2010-7.8%

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