NYSE$KOP

Koppers Holdings Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported record net income and adjusted EPS, driven by strong performance in Performance Chemicals segment and gain on sale of KJCC.

Koppers Holdings Inc. reported a strong third quarter with record net income attributable to Koppers of $75.6 million, or $3.53 per diluted share. Adjusted EPS was a record $1.64. Consolidated sales increased slightly to $437.5 million. The Performance Chemicals segment reported record sales and adjusted profitability, while the CMC segment showed sequential improvement. The company reaffirmed its 2020 outlook.

  • Net income attributable to Koppers was $75.6 million, or $3.53 per diluted share, compared to $19.9 million, or $0.94 per diluted share, in the prior year quarter.
  • Adjusted EPS for the third quarter of 2020 was $1.64 per share, a record quarter, compared to $1.16 per share in the prior year quarter.
  • Consolidated sales for the third quarter of 2020 were $437.5 million, an increase of 0.8 percent compared with $434.2 million in the prior year quarter.
  • The Performance Chemicals (PC) segment reported record sales and record adjusted profitability, benefiting from strong demand in the U.S. home repair and remodeling markets.

Headline financials

Total Revenue

$438M

Previous: $475M-7.9%
EPS (adj)

$1.64

Previous: $1.24+32.3%
Adjusted EBITDA

$66.7M

Previous: $57.1M+16.8%
Adjusted EBITDA Margin

15.2%

Previous: 13.2%+15.2%
Capital Expenditures

-$43.8M

Previous: -$26.8M-63.4%
Free Cash Flow

$31.8M

Previous: -$7M+554.3%
Net Income

$75.6M

Previous: $19.8M+281.8%
Operating Income

$58.6M

Previous: $39.6M+48.0%
Gross Profit

$108M

Previous: $92.6M+16.3%
Cash & Equivalents

$39.5M

Previous: $40.7M-2.9%
Total Assets

$1.53B

Previous: $1.55B-1.2%
Stock-Based Comp

$3M

Previous: $3.1M-3.2%

Revenue & EPS history

Koppers · Revenue · Quarterly

$438M

Q3 2020-7.9%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Koppers · $438M total across 3 segments · Q3 2020

  • Railroad & Utility Products
    $191M-3.9%
  • Performance Chemicals
    $148M+19.4%
  • Carbon Materials & Chemicals
    $98.6M-11.6%

Forward guidance

Koppers expects 2020 sales to be approximately $1.6 billion. The company anticipates that adjusted EBITDA in 2020 will be in the range of $204 million to $210 million. Adjusted earnings per share (EPS) is projected to be in the range of $3.65 to $3.90 in 2020. Koppers anticipates investments of $55 million to $60 million in capital expenditures in 2020 and plans to reduce debt by approximately $125 million in 2020.

Tailwinds

  • Sales to be approximately $1.6 billion
  • Adjusted EBITDA in the range of $204 million to $210 million
  • Adjusted EPS is projected to be in the range of $3.65 to $3.90
  • Investments of $55 million to $60 million in capital expenditures
  • Plans to reduce debt by approximately $125 million

Headwinds

  • Worldwide effects of the COVID-19 pandemic are continuing to unfold
  • Unable, without unreasonable efforts, to forecast certain items required to develop meaningful comparable GAAP financial measures
  • These items include restructuring, impairment, non-cash LIFO charges, acquisition-related costs, and non-cash mark-to-market commodity hedging
  • These items are difficult to predict in advance in order to include in a GAAP estimate
  • These items may be significant

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 Q3 2020

Historical avgQ3 2020

+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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