Business Context and Reporting Period
Koppers Holdings Inc. filed this Form 8-K on June 22, 2006, reporting a strategic asset disposal. The company is incorporated in Pennsylvania and operates in the specialty trackwork sector.
Key Financial Metrics
- Asset Sale Proceeds: $1.75 million (subject to working capital adjustments).
- Expected Pre-Tax Loss: $1.5 million to $2.0 million (non-cash, recognized in Q2 2006).
- Historical Revenue: The sold facility generated approximately $8.1 million in revenue during 2005.
- Debt and Liquidity: The filing text does not provide a clear value for current debt levels or liquidity positions.
Material Changes
The company completed the sale of its specialty trackwork facility in Alorton, Illinois. This transaction represents a strategic exit from a specific non-core asset. The sale terms include the retention of trade receivables and payables by Koppers, while all other assets and liabilities were transferred to the buyer.
Outlook, Risks, and Management Commentary
Management characterized the sale as a result of a strategic evaluation of the marketplace and the company's core business strategy. The filing includes standard forward-looking statement disclaimers, noting that actual results may differ due to industry conditions, economic factors, and other uncertainties. No specific financial guidance for future periods was provided in this report.
Investor Verification Checklist
- Confirm the final working capital adjustments to the $1.75 million sale price.
- Verify the exact non-cash loss amount within the $1.5-$2.0 million range in the Q2 2006 earnings release.
- Assess the impact of the $8.1 million revenue reduction on future quarterly revenue targets.
- Review subsequent filings for any changes in the company's strategic direction regarding specialty trackwork.