Koppers Holdings (KOP) Tops Q3 EPS by $1.18, Reaffirms FY Guidance

Koppers Holdings (NYSE: KOP) reported Q3 EPS of $1.64, $1.18 better than the analyst estimate of $0.46. Revenue for the quarter came in at $437.5 million versus the consensus estimate of $365.4 million.

GUIDANCE:

Koppers Holdings sees FY2020 EPS of $3.65-$3.90, versus the consensus of $3.84. Koppers Holdings sees FY2020 revenue of $1.6-1.65 billion, versus the consensus of $1.64 billion.

• Although the worldwide effects of the COVID-19 pandemic are continuing to unfold, Koppers expects 2020 sales to be approximately $1.6 billion, compared with sales of $1.65 billion (excluding KJCC) in 2019. The company anticipates that adjusted EBITDA in 2020 will be in the range of $204 million to $210 million, which is higher than its previous forecast of $196 million to $204 million, and compares with $201.1 million in the prior year. Adjusted earnings per share (EPS) is projected to be in the range of $3.65 to $3.90 in 2020, which is higher than its previous estimate of $3.25 to $3.50, and compares with $3.18 in the prior year.
• Koppers anticipates investments of $55 million to $60 million in capital expenditures in 2020, which are primarily related to improving the safety and reliability of its existing infrastructure.
• Additionally, Koppers plans to reduce debt by approximately $125 million in 2020, which includes proceeds that were received from the KJCC divestiture. Based upon current adjusted EBITDA and debt reduction estimates, net leverage at December 31, 2020, is projected to be between 3.5 and 3.6.
• Koppers does not provide reconciliations of guidance for adjusted EBITDA, adjusted EPS, net debt or net leverage ratio 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. These items include restructuring, impairment, non-cash LIFO charges, acquisition-related costs, and non-cash mark-to-market commodity hedging that are difficult to predict in advance in order to include in a GAAP estimate and may be significant.

For earnings history and earnings-related data on Koppers Holdings (KOP) click here.

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