Koppers Holdings Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Koppers Holdings Inc. filed its 2023 10-K, detailing segment performance, financial health, and executive compensation.</b>

AI Summary

Koppers Holdings Inc. (KOP) filed a Annual Report (10-K) with the SEC on February 28, 2024. Koppers Holdings Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The filing covers the company's operations in Railroad and Utility Products and Services, and Carbon Materials and Chemicals. Key financial data and segment performance for the fiscal year 2023 are detailed. The report includes information on executive compensation and stock performance metrics. Risk factors and financial health indicators are presented for the reporting period.

Why It Matters

For investors and stakeholders tracking Koppers Holdings Inc., this filing contains several important signals. This 10-K provides a comprehensive overview of Koppers' financial performance and strategic positioning for the fiscal year 2023, crucial for investors assessing the company's trajectory. The detailed segment information and risk factors offer insights into the operational challenges and opportunities within the Railroad and Utility Products and Services, and Carbon Materials and Chemicals sectors.

Risk Assessment

Risk Level: medium — Koppers Holdings Inc. shows moderate risk based on this filing. The company's financial health and operational performance are subject to various market and economic factors, as indicated by the detailed risk factors and segment reporting in the 10-K.

Analyst Insight

Investors should review the detailed segment performance and risk factors in the 10-K to understand Koppers' operational and financial outlook for the upcoming fiscal year.

Key Numbers

• 20231231 — Fiscal Year End (Reported fiscal year end)
• 20240228 — Filing Date (Date the 10-K was filed)
• 127 — Public Document Count (Number of documents in the filing)

Key Players & Entities

• Koppers Holdings Inc. (company) — Filer of the 10-K report
• PA (location) — State of incorporation
• 20231231 (date) — Fiscal year end
• 20240228 (date) — Filing date
• 001-32737 (other) — SEC file number
• Pittsburgh (location) — Business and mailing address city

FAQ

Industry Context

Koppers Holdings Inc. operates within the lumber and wood products industry, focusing on treated wood products and carbon-based chemicals.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to disclose material information about their business, financial condition, and operations.

What Investors Should Do

1. Analyze the financial statements and segment data for revenue and profitability trends.
2. Review the identified risk factors to understand potential challenges to Koppers' business.
3. Examine executive compensation details for insights into management incentives and alignment.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K
• 2024-02-28: Filing Date — Date Koppers Holdings Inc. submitted its 10-K

Year-Over-Year Comparison

This is the initial filing of the 2023 10-K, providing the latest annual financial and operational data for Koppers Holdings Inc.

Filing Documents

• kop-20231231.htm (10-K) — 3917KB
• kop-ex10_43.htm (EX-10.43) — 119KB
• kop-ex10_44.htm (EX-10.44) — 149KB
• kop-ex10_45.htm (EX-10.45) — 147KB
• kop-ex10_46.htm (EX-10.46) — 120KB
• kop-ex21.htm (EX-21) — 55KB
• kop-ex23_1.htm (EX-23.1) — 3KB
• kop-ex24.htm (EX-24) — 83KB
• kop-ex31_1.htm (EX-31.1) — 12KB
• kop-ex31_2.htm (EX-31.2) — 12KB
• kop-ex32_1.htm (EX-32.1) — 14KB
• kop-ex97.htm (EX-97) — 49KB
• 0000950170-24-021787.txt (&nbsp;) — 19459KB
• kop-20231231.xsd (EX-101.SCH) — 2276KB
• kop-20231231_htm.xml (XML) — 4385KB

Risk Factors

Risk Factors 10 1B. Unresolved Staff Comments 24 1C. Cybersecurity 24 2.

Properties

Properties 26 3.

Legal Proceedings

Legal Proceedings 26 4. Mine Safety Disclosures 26 Information About Our Executive Officers 27 Part II 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 28 6. Reserved 28 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 29 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 36 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 37 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 70 9A.

Controls and Procedures

Controls and Procedures 70 9B. Other Information 70 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 70 Part III 10. Directors, Executive Officers and Corporate Governance 70 11.

Executive Compensation

Executive Compensation 71 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 71 13. Certain Relationships and Related Transactions, and Director Independence 71 14. Principal Accountant Fees and Services 71 Part IV 15. Exhibits and Financial Statement Schedules 72 16. Form 10-K Summary 76

Signatures

Signatures 77 2 Koppers Holdings Inc. 2023 Annual Report

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This report and the documents incorporated herein by reference contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and may include, but are not limited to, statements about sales levels, acquisitions, restructuring, declines in the value of Koppers assets and the effect of any resulting impairment charges, profitability and anticipated synergies, expenses and cash outflows. All forward-looking statements involve risks and uncertainties. All statements contained herein that are not clearly historical in nature are forward-looking, and words such as outlook, guidance, forecast, believe, anticipate, expect, estimate, may, will, should, continue, plan, potential, intend, likely or other similar words or phrases are generally intended to identify forward-looking statements. Any forward-looking statement contained herein, regarding future dividends, expectations with respect to sales, earnings, cash flows, operating efficiencies, restructurings, product introduction or expansion, the benefits of acquisitions and divestitures or other matters, as well as financings and debt reduction, are subject to known and unknown risks, uncertainties and contingencies. Many of these risks, uncertainties and contingencies are beyond our control, and may cause actual results, performance or achievements to differ materially from anticipated results, performance or achievements. Factors that might affect such forward-looking statements include, among other things: availability of and fluctuations in the prices of key raw materials, including coal tar, lumber and scrap copper; the impact of changes in commodity prices, such as oil, copper and chemicals, on product margins; the ratings on our debt and our ability to repay or refinance our outstanding indebtedness as it matures; our ability to operate within the limitations of our debt covenants; capital market conditions, including interest ra

B USINESS

ITEM 1. B USINESS General In this report, unless otherwise noted or the context otherwise requires, (i) the term Koppers, Koppers Holdings, the Company, we or us refers to Koppers Holdings Inc. and its consolidated subsidiaries, (ii) the term KH refers to Koppers Holdings Inc. and not any of its subsidiaries and (iii) the term KI refers to Koppers Inc. and not any of its subsidiaries. Koppers Inc. is a wholly-owned subsidiary of Koppers Holdings Inc. Koppers Holdings Inc. has substantially no operations independent of Koppers Inc. and its subsidiaries. The use of these terms is not intended to imply that Koppers Holdings Inc. and Koppers Inc. are not separate and distinct legal entities from each other and from their respective subsidiaries. Koppers Holdings Inc. was incorporated in November 2004 as a holding company for Koppers Inc. We are a leading integrated global provider of treated wood products, wood preservation chemicals and carbon compounds. Our products and services are used in a variety of niche applications in a diverse range of end-markets, including the railroad, specialty chemical, utility, residential lumber, agriculture, aluminum, steel, rubber and construction industries. We serve our customers through a comprehensive global manufacturing and distribution network, with manufacturing capabilities in North America, South America, Australasia and Europe. Business Segments and Products We operate three principal business segments: Railroad and Utility Products and Services (RUPS), Performance Chemicals (PC) and Carbon Materials and Chemicals (CMC). We believe our three business segments command leading market positions. Through our RUPS business, we believe that we are the largest supplier of railroad crossties to the Class I railroads in North America. Through our CMC business, we believe we are the largest global supplier of creosote to the North American railroad industry. Through our PC business, we believe that we are the global leade

Business

Business Salaried Non-Salaried Total Railroad and Utility Products and Services 348 802 1,150 Performance Chemicals 233 122 355 Carbon Materials and Chemicals 232 204 436 Administration 158 9 167 Total Employees 971 1,137 2,108 Approximately 500 of our employees are represented by a number of different labor unions and are covered under numerous labor agreements. The labor contract at one of our facilities covering 59 employees is scheduled to expire during 2024. Human Capital Management Our ability to positively affect our communities starts with investing in our people. We put the health, safety and well-being of our employees at the forefront of everything we do as part of our Zero Harm culture. Our people-focused strategy considers all aspects of the employee experience, from hiring practices and onboarding to health and wellness and talent management. We seek to create and foster an inclusive and welcoming culture where all employees feel empowered and can directly impact and share in the organization's success. Key to this effort is delivering a consistent onboarding experience, as well as communications and safety training in all of our facilities across the globe. 7 Koppers Holdings Inc. 2023 Annual Report Talent Attraction and Retention Our talented employees are a critical element to make our business successful, so it is essential that we position them for success. It is also important that we continue attracting top talent to our workforce. Our Culture and Engagement team leads these efforts to attract, retain and develop our employees and has created various programs to enhance the skill set of our workforce. Recognizing the importance of a consistent and comprehensive onboarding and safety training experience for new hires across our facility footprint, we have

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View this 10-K filing on SEC EDGAR