NYSE$KOP

Koppers Holdings Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Koppers reported mixed results with revenue increase and earnings decrease in Q4 2020.

Koppers Holdings Inc. reported a slight increase in consolidated sales for Q4 2020, but net income attributable to Koppers decreased compared to the prior year quarter. The Performance Chemicals segment showed strong sales growth, while the Carbon Materials and Chemicals segment experienced a decrease. The company provided a 2021 outlook, expecting sales between $1.7 billion and $1.8 billion.

  • Consolidated sales increased by 2.9 percent to $393.1 million compared to the prior year quarter.
  • Net income attributable to Koppers was $18.6 million, compared to $20.6 million in the prior year quarter.
  • Adjusted EPS was $0.75, compared to $0.34 for the prior year period.
  • Performance Chemicals segment delivered strong sales growth, while Carbon Materials and Chemicals segment decreased.

Headline financials

Total Revenue

$393M

Previous: $393M-0.0%
EPS (adj)

$0.75

Previous: $0.29+158.6%
Adjusted EBITDA

$47.1M

Previous: $39M+20.8%
Adjusted EBITDA Margin

12.0%

Previous: 9.9%+21.2%
Capital Expenditures

$26M

Previous: $10.4M+150.0%
Free Cash Flow

$35.6M

Previous: $47.9M-25.7%
Net Income

$18.6M

Previous: $20.2M-7.9%
Operating Income

$34.8M

Previous: $24.3M+43.2%
Gross Profit

$89.2M

Previous: $74.9M+19.1%
Cash & Equivalents

$38.5M

Previous: $32.3M+19.2%
Total Assets

$1.6B

Previous: $1.56B+2.2%
Stock-Based Comp

$2.8M

Previous: $3.1M-9.7%

Revenue & EPS history

Koppers · Revenue · Quarterly

$393M

Q4 2020-0%vs Q4 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Koppers · $393M total across 3 segments · Q4 2020

  • Railroad & Utility Products
    $168M-0.8%
  • Performance Chemicals
    $130M+24.2%
  • Carbon Materials & Chemicals
    $95M-20.2%

Forward guidance

Koppers expects 2021 sales to be approximately $1.7 billion to $1.8 billion and adjusted EBITDA to be approximately $215 million to $225 million.

Tailwinds

  • Residential treated lumber markets will revert to normalized levels in the second half of the year.
  • Demand levels for the company’s other business segments improve modestly year-over-year.
  • Growth and/or cost reduction projects are estimated to generate $8 million to $12 million of EBITDA in 2022.
  • Koppers plans to reduce debt by approximately $30 million in 2021.
  • Net leverage ratio is projected to be in the range of 3.2 to 3.4 at December 31, 2021.

Headwinds

  • Facing tougher comparables in 2021 due to the extraordinary success of the Performance Chemicals business during the pandemic.
  • Likelihood of Performance Chemicals business shifting to more normalized volumes as life returns to pre-pandemic routines.
  • Effective tax rate for adjusted net income in 2021 is projected to be approximately 27 percent, compared to the tax rate in 2020 of 20.1 percent.
  • Higher tax rate anticipated in 2021 is estimated to have a negative impact on adjusted EPS of approximately $0.50 compared to the prior year.
  • Expects to invest $105 million to $115 million in capital expenditures in 2021.

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 Q4 2020

Historical avgQ4 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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