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    Michael Mathison • Sidoti & Company

    Michael Mathison's questions to Koppers Holdings Inc (KOP) leadership

    Michael Mathison's questions to Koppers Holdings Inc (KOP) leadership • Q2 2025

    Question

    Michael Mathison of Sidoti & Company asked about the potential impact of a proposed merger between two major rail companies and questioned how Koppers plans to achieve its high-teens EBITDA margin target after reaching 15% in the quarter.

    Answer

    CEO Leroy Ball stated it is too early to determine the impact of a potential rail merger but expressed hope that Koppers would continue to serve the combined entity. To reach the high-teens margin target, Ball explained the key driver will be volume recovery across its business segments, which are currently in a rare, simultaneous trough. He believes that as markets rebound, the cost savings already achieved through initiatives like 'Catalyst' will drop to the bottom line, creating a compounding effect on profitability, particularly looking ahead to 2026.

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    Michael Mathison's questions to Koppers Holdings Inc (KOP) leadership • Q4 2024

    Question

    Michael Mathison asked for an estimate on how free cash flow would be allocated between share repurchases and debt paydown, and also inquired about recent volume and pricing improvements in the RUPS segment's crosstie business.

    Answer

    CEO Leroy M. Ball stated that the primary use of free cash flow will be opportunistic share repurchases as long as the stock remains undervalued, with the remainder allocated to debt reduction. The goal is to reach a leverage ratio of approximately 3x by the end of 2025. He also confirmed they project an 8% increase in crosstie volume for 2025 and expect overall higher pricing due to contractual adjustments and ongoing negotiations.

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    Michael Mathison's questions to Genco Shipping & Trading Ltd (GNK) leadership

    Michael Mathison's questions to Genco Shipping & Trading Ltd (GNK) leadership • Q2 2025

    Question

    Michael Mathison from Sidoti & Company inquired about the trend in Chinese coal import demand during the second quarter and sought an early outlook on potential Time Charter Equivalent (TCE) rates for the fourth quarter.

    Answer

    President, CEO & Director John Wobensmith confirmed that Chinese coal import demand was soft during the quarter but noted a recent uptick in buying over the last month, suggesting a potential recovery by year-end. Regarding Q4 TCE rates, Wobensmith declined to predict specific levels but pointed to a strong forward curve. He highlighted that Genco is well-positioned for Q4 with most of its fleet on the spot market, minimal scheduled dry-dockings, and a cash flow breakeven rate expected to drop below $10,000 per day.

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    Michael Mathison's questions to Alliance Resource Partners LP (ARLP) leadership

    Michael Mathison's questions to Alliance Resource Partners LP (ARLP) leadership • Q2 2025

    Question

    Michael Mathison of Sidoti & Company questioned the impact of declining Chinese demand for seaborne coal on U.S. pricing. He also asked about future investment plans for the high-margin royalty portfolio, including target sectors and its potential scale in the coming years.

    Answer

    Chairman, CEO, and President Joseph Craft acknowledged that while recent inbound inquiries for seaborne coal show more attractive pricing, the domestic market still offers better netbacks, which ARLP will continue to prioritize. However, he sees a probability of higher export volumes next year. For the royalty business, Craft reiterated a strong commitment, with plans to reinvest the segment's EBITDA, targeting over $100 million annually. He stated the focus remains primarily on the Permian and Delaware Basins, with the capacity to pursue larger opportunities given the segment's lack of leverage.

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    Michael Mathison's questions to Alexander & Baldwin Inc (Hawaii) (ALEX) leadership

    Michael Mathison's questions to Alexander & Baldwin Inc (Hawaii) (ALEX) leadership • Q2 2025

    Question

    Michael Mathison inquired about the company's future debt paydown strategy and leverage targets, the overall health of its tenants, and whether tariffs have impacted construction costs for its build-to-suit projects.

    Answer

    CFO Clayton Chun stated the company's leverage is below its 5-6x target, so future cash will be prioritized for growth capital. SVP Kit Millan confirmed tenant health is strong, with rising foot traffic and sales. CEO Lance Parker noted that general inflation, rather than specific tariffs, affects construction costs, which they mitigate through forward pricing and efficient execution.

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