Through our PC business, we believe that we are the global leader in developing, manufacturing and marketing wood preservation chemicals and wood treatment technologies for use in the pressure treating of lumber for residential, industrial and agricultural applications.

Railroad and Utility Products and Services

Seasonality and Effects of Weather on Operations

Results of Operations - Comparison of Three Months Ended June 30, 2022 and 2021

Net sales for the three months ended June 30, 2022 and 2021 are summarized by segment in the following table:

Depreciation and amortization charges for the quarter ended June 30, 2022 were consistent with the prior year period.

Impairment and restructuring charges for the prior year period were $0.9 million and included demolition and other plant closure period costs related to the closure of our Denver, Colorado facility.

Segment adjusted EBITDA and adjusted EBITDA margin for the three months ended June 30, 2022 and 2021 is summarized by segment in the following table:

Results of Operations - Comparison of Six Months Ended June 30, 2022 and 2021

Net sales for the six months ended June 30, 2022 and 2021 are summarized by segment in the following table:

Impairment and restructuring charges for the six months ended June 30, 2021 were $2.1 million and included demolition and other plant closure period costs related to the closure of our Denver, Colorado facility.

Segment adjusted EBITDA and adjusted EBITDA margin for the six months ended June 30, 2022 and 2021 is summarized by segment in the following table:

The following table reconciles net income to adjusted EBITDA on a consolidated basis as calculated by us for the periods indicated below:

(1) Includes costs associated with restructuring, sales and closures of certain RUPS and CMC facilities as described in Note 3 - "Plant Closures and Divestitures".

Our Credit Facility is described in Note 14 "Debt."

Restrictions on Dividends to Koppers Holdings

At June 30, 2022, the basket totaled $287.3 million. Notwithstanding such restrictions, the indenture governing the 2025 Notes permits an additional aggregate amount of $0.30 per share each fiscal quarter to finance dividends on the capital stock of Koppers Holdings, whether or not there is any basket availability, provided that at the time of such payment, no default in the indenture has occurred or would result from financing the dividends.

The covenants under the Credit Facility, including the following financial covenants, may affect availability of the facility:

? The total net leverage ratio, calculated as of the last day of each fiscal

quarter (commencing with the fiscal quarter ending September 30, 2022), is

2022), is not permitted to be less than 2.0. The cash interest coverage

ratio as of June 30, 2022 was 5.56.

The information set forth in Note 18 to the Condensed Consolidated Financial Statements of Koppers Holdings Inc. included in Item 1 of this Part I is incorporated herein by reference.

The information set forth in Note 2 to the Condensed Consolidated Financial Statements of Koppers Holdings Inc. included in Item 1 of this Part I is incorporated herein by reference.

There have been no material changes to our critical accounting policies as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2021.

The information set forth in Note 18 to the Condensed Consolidated Financial Statements of Koppers Holdings Inc. included in Item 1 of this Part I is incorporated herein by reference.

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