Koppers Holdings(US:KOP)2024-05-03 18:01Financial Projections - The company projects 2024 sales of approximately $2.25 billion and adjusted EBITDA between $265 million and $280 million[96]. - Capital expenditures in 2024 are expected to total approximately $80 million to $90 million, funded by cash from operations[117]. Sales Performance - In Q1 2024, net sales decreased by 3% to $497.6 million compared to $513.4 million in Q1 2023, with a notable 20% decline in the CMC segment[99][100]. - The company experienced a 6% increase in net sales for the Railroad and Utility Products segment, driven by $9.6 million in volume increases for crossties[100]. - The PC segment saw a 2% increase in net sales, attributed to a $6.8 million volume increase, primarily for copper-based preservatives[101]. - CMC segment net sales decreased by $28.6 million due to a 24.6% drop in carbon pitch prices globally[102]. Cost and Expenses - Cost of sales as a percentage of net sales increased to 81% from 80% in the prior year, primarily due to market-driven reductions in CMC pricing[103]. - Depreciation and amortization expenses rose by $2.1 million due to increased investment in growth projects[104]. - Selling, general and administrative expenses increased by $3.9 million, mainly due to higher compensation-related costs[105]. EBITDA Analysis - Total adjusted EBITDA for Q1 2024 was $51.5 million, a decrease of 16% from $61.5 million in Q1 2023[107]. - Adjusted EBITDA for Railroad and Utility Products and Services increased by 12% to $17.7 million, while Performance Chemicals rose by 13% to $29.8 million[107]. - Adjusted EBITDA for Carbon Materials and Chemicals decreased significantly by 79% to $4.0 million due to price and volume decreases[107]. Cash Flow and Liquidity - Net cash used in operating activities improved to $12.3 million in Q1 2024 from $15.3 million in the prior year, attributed to lower working capital usage[111]. - Net cash used in investing activities was $25.8 million in Q1 2024, down from $28.5 million in the prior year, primarily due to capital expenditures[112]. - Net cash provided by financing activities decreased to $23.0 million in Q1 2024 from $56.8 million in the prior year, with net borrowings of $27.9 million[113]. - As of March 31, 2024, liquidity was approximately $340 million, expected to be adequate for cash requirements for at least the next twelve months[116][117]. - The cash interest coverage ratio as of March 31, 2024, was 3.9, exceeding the minimum requirement of 2.0[125]. Leverage and Compliance - The total net leverage ratio as of March 31, 2024, was 3.2, compliant with the Credit Facility covenants[125].