NYSE$KOP

Koppers Holdings Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Koppers reported an increase in sales and net income for the fourth quarter of 2021, driven by strong performance in the Carbon Materials and Chemicals segment, which offset challenges in the Railroad and Utility Products and Services segment.

Koppers Holdings Inc. reported a positive fourth quarter in 2021, with net income attributable to Koppers increasing to $22.2 million, or $1.02 per diluted share, compared to $18.6 million, or $0.86 per diluted share, in the prior year quarter. Consolidated sales also saw an increase, reaching $405.3 million, a 3.1 percent rise from the $393.1 million in the prior year quarter. The Carbon Materials and Chemicals segment delivered significantly higher sales and record profitability, offsetting lower sales and profitability in the Railroad and Utility Products and Services and Performance Chemicals segments.

  • Net income attributable to Koppers increased to $22.2 million, or $1.02 per diluted share, compared to $18.6 million, or $0.86 per diluted share, in the prior year quarter.
  • Adjusted EPS increased to $0.77 compared to $0.75 for the prior year period.
  • Consolidated sales increased to $405.3 million, a 3.1 percent increase compared to $393.1 million in the prior year quarter.
  • The Carbon Materials and Chemicals segment delivered significantly higher sales and record profitability due to strong end market demand and favorable pricing.

Headline financials

Total Revenue

$405M

Previous: $393M+3.1%
EPS (adj)

$0.77

Previous: $0.75+2.7%
Adjusted EBITDA

$48.8M

Previous: $47.1M+3.6%
Adjusted EBITDA Margin

12.0%

Previous: 12.0%+0.0%
Capital Expenditures

$37.4M

Previous: $26M+43.8%
Free Cash Flow

$6M

Previous: $35.6M-83.1%
Net Income

$22.2M

Previous: $18.6M+19.4%
Operating Income

$43.7M

Previous: $34.8M+25.6%
Gross Profit

$72.9M

Previous: $89.2M-18.3%
Cash & Equivalents

$45.5M

Previous: $38.5M+18.2%
Total Assets

$1.66B

Previous: $1.6B+4.0%
Stock-Based Comp

$3.2M

Previous: $2.8M+14.3%

Revenue & EPS history

Koppers · Revenue · Quarterly

$405M

Q4 2021+3.1%vs Q4 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Koppers · $405M total across 3 segments · Q4 2021

  • Railroad & Utility Products
    $156M-7.5%
  • Carbon Materials & Chemicals
    $131M+37.7%
  • Performance Chemicals
    $119M-8.5%

Forward guidance

Koppers expects 2022 sales to be approximately $1.8 billion and adjusted EBITDA to be approximately $230 million. Adjusted EPS is forecasted to be approximately $4.25.

Tailwinds

  • Strong end markets supporting CMC
  • Solid but normalized demand levels for PC
  • Improving backdrop for hardwood sourcing in RUPS business
  • Eighth straight year of adjusted EBITDA improvement
  • Third straight new high for adjusted EPS

Headwinds

  • Higher costs
  • Challenging labor situation
  • Higher tax rates taking a bite out of EPS
  • Requires $80 million to $100 million of price increases to neutralize headwinds
  • Economic uncertainty associated with the pandemic

Historical earnings impact

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

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2021

Historical avgQ4 2021

+0.1%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+1.8%

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+6.9%+3.6%
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 2010+6.3%
Q3 2009+6.3%
Q2 2010-7.8%
Q2 2009-7.8%
Q4 2009-7.8%

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