LISLE, Ill., April 20, 2017 /PRNewswire/ --
- Net income attributable to SXC was up $5.1 million to $1.0 million, or $0.02 per share, in the current period compared
to a loss of $4.1 million, or
$0.06 per share, in the prior year
period
- Adjusted EBITDA for the quarter was $55.6 million, up $11.8
million versus the prior year period
- Reaffirm full-year 2017 Consolidated Adjusted EBITDA guidance
of $220 million to $235 million
- Discussions with the SXCP Conflicts Committee regarding the
proposed Simplification Transaction were terminated with no
agreement reached
SunCoke Energy, Inc. (NYSE: SXC) today reported results for the
first quarter 2017, which reflect significant year-over-year
improvement driven primarily by higher logistics volumes and lower
corporate costs.
"We are pleased with our first quarter performance, and this
fast start has positioned us to deliver upon our financial guidance
in 2017," said Fritz Henderson,
Chairman, President and Chief Executive Officer of SunCoke Energy,
Inc.
The Company also announced the termination of discussions with
the Conflicts Committee of the Board of Directors of SunCoke Energy
Partners, L.P. regarding the proposed Simplification Transaction,
announced on October 31, 2016. The
Conflicts Committee and its independent advisors reviewed the
proposal made by SXC and had several discussions with the Company
over the last few months regarding the potential transaction. At
this time, the parties have determined that they will not be able
to reach an agreement and have therefore terminated discussions
regarding the Simplification Transaction.
"While we continue to believe strongly in the merits of a
simplified structure, we were focused on taking a disciplined
approach and ultimately it became clear we would not reach an
agreement with the Conflicts Committee on a value, through the
exchange ratio, for the unaffiliated LP units," said Henderson.
"Going forward, we still see real opportunity for SunCoke as we
remain well-positioned to leverage our strong competitive
advantages in cokemaking and logistics. We remain focused on
executing on our strategic initiatives to drive operational
excellence and optimize our asset base as we seek to capitalize on
the continued improvement in the steel and coal markets."
FIRST QUARTER CONSOLIDATED RESULTS
|
Three Months Ended
March 31,
|
(Dollars in
millions)
|
2017
|
|
2016
|
|
Increase/(Decrease)
|
Revenues
|
$
|
309.7
|
|
|
$
|
311.1
|
|
|
$
|
(1.4)
|
|
Adjusted
EBITDA(1)
|
$
|
55.6
|
|
|
$
|
43.8
|
|
|
$
|
11.8
|
|
Net income (loss)
attributable to SXC
|
$
|
1.0
|
|
|
$
|
(4.1)
|
|
|
$
|
5.1
|
|
(1)
|
See definition of
Adjusted EBITDA and reconciliation elsewhere in this
release.
|
|
|
Revenues during the first quarter of 2017 declined $1.4 million compared to the same prior year
period, reflecting lower sales volumes in our Domestic Coke
segment, mostly offset by higher sales volumes in our Coal
Logistics segment.
Adjusted EBITDA during the first quarter of 2017 increased
$11.8 million to $55.6 million, primarily due to higher sales
volumes in our Coal Logistics segment as compared the same prior
year period, as well as lower corporate costs and the benefit of
the divestiture of our coal mining business. These improvements
were partially offset by lower Adjusted EBITDA in our Domestic Coke
segment, driven primarily by the impact of oven rebuilds at our
Indiana Harbor facility in the quarter.
Net income attributable to SXC was up $5.1 million to $1.0 million, or $0.02 per share, which included the operating
impacts discussed above, partially offset by the absence of
$20.4 million of debt extinguishment
gains recorded in the prior year period, net of a $10.7 million non-cash impairment charge
associated with the divestiture of our Coal Mining business in the
first quarter 2016.
FIRST QUARTER SEGMENT RESULTS
Domestic Coke
Domestic Coke consists of cokemaking
facilities and heat recovery operations at our Jewell, Indiana
Harbor, Haverhill, Granite City
and Middletown plants.
|
Three Months Ended
March 31,
|
(Dollars in
millions, except per ton amounts)
|
2017
|
|
2016
|
|
Increase/(Decrease)
|
Revenues
|
$
|
278.7
|
|
|
$
|
289.0
|
|
|
$
|
(10.3)
|
|
Adjusted
EBITDA(1)
|
$
|
49.7
|
|
|
$
|
54.3
|
|
|
$
|
(4.6)
|
|
Sales volumes
(thousands of tons)
|
|
946
|
|
|
|
1,000
|
|
|
|
(54)
|
|
Adjusted EBITDA per
ton(2)
|
$
|
52.54
|
|
|
$
|
54.30
|
|
|
$
|
(1.76)
|
|
(1)
|
See definition of
Adjusted EBITDA and reconciliation elsewhere in this
release.
|
(2)
|
Reflects Domestic
Coke Adjusted EBITDA divided by Domestic Coke sales
volumes.
|
- Revenues decreased $10.3 million,
reflecting a decrease in sales volume of 54 thousand tons,
primarily due to lower production at Indiana Harbor associated with
oven rebuilds as well as lower sales to AK Steel at Haverhill, for
which AK Steel made make-whole payments.
- Adjusted EBITDA decreased $4.6
million, reflecting lower coke sales volumes and
$2.3 million of higher operating and
maintenance spending driven by oven rebuilds at Indiana Harbor in
the quarter. The remaining coke facilities were consistent
with prior year performance, with $2.4
million of favorable contracted coal prices at our Jewell
facility offset by unfavorable coal cost recovery and Middletown's return to a normalized run-rate
performance after a record year in 2016.
Coal Logistics
Coal Logistics consists of the coal
handling and mixing services operated by SXCP at Convent Marine
Terminal ("CMT") located on the Mississippi river in Louisiana, Lake Terminal in East Chicago, Indiana and Kanawha River
Terminals, LLC ("KRT"), which has terminals along the Ohio and
Kanawha rivers in West Virginia. Additionally, Dismal River
Terminal ("DRT"), located in Virginia adjacent to our Jewell Cokemaking
facility, is operated by SXC. DRT was formed to accommodate
Jewell in its direct procurement of third-party coal, beginning in
2016.
|
Three Months Ended
March 31,
|
(Dollars in
millions, except per ton amounts)
|
2017
|
|
2016
|
|
Increase/(Decrease)
|
Revenues
|
$
|
20.2
|
|
|
$
|
13.0
|
|
|
$
|
7.2
|
|
Intersegment
sales
|
$
|
5.1
|
|
|
$
|
5.2
|
|
|
$
|
(0.1)
|
|
Adjusted
EBITDA(1)
|
$
|
13.1
|
|
|
$
|
5.9
|
|
|
$
|
7.2
|
|
Tons handled
(thousands of tons)(2)
|
5,719
|
|
|
4,315
|
|
|
1,404
|
|
CMT take-or-pay
shortfall tons (thousands of tons)(3)
|
544
|
|
|
1,638
|
|
|
(1,094)
|
|
(1)
|
See definition of
Adjusted EBITDA and reconciliation elsewhere in this
release.
|
(2)
|
Reflects inbound tons
handled during the period.
|
(3)
|
Reflects tons billed
under take-or-pay contracts where services have not yet been
performed.
|
- Revenues and Adjusted EBITDA were up both up $7.2 million, driven by higher sales volumes at
our CMT and KRT terminals in the current year period.
Brazil Coke
Brazil Coke consists of a cokemaking
facility in Vitória, Brazil, which
we operate for an affiliate of ArcelorMittal. In the fourth quarter
of 2016, ArcelorMittal Brazil redeemed SunCoke's indirectly held
preferred and common equity interest in Sol Coqueria Tubarão S.A.
("Brazil Investment") for consideration of $41.0 million, half of which was received in the
fourth quarter 2016 and the other half of which was received in the
first quarter 2017.
- Adjusted EBITDA increased $2.1
million to $4.4 million,
driven primarily by incremental technology and licensing fees
related to the addition of certain patents to our existing
intellectual property licensing agreement in the fourth quarter of
2016.
Corporate and Other
Corporate and other expenses,
which include costs related to our legacy coal mining business,
were $11.6 million in first quarter
2017, an improvement of $7.1 million
versus first quarter 2016. The improvement includes a
$2.8 million year-over-year benefit
associated with the divestiture of our coal mining business
completed in April 2016. The remaining improvement was driven
by the absence of costs to resolve certain legal matters incurred
in the prior year period, as well as favorable mark-to-market
adjustments in deferred compensation caused by changes in the
Company's share price and the Partnership's unit price, partially
offset by $1.5 million of costs in
connection with the Simplification Transaction in the current year
period.
2017 OUTLOOK
Our 2017 guidance is as follows:
- Domestic coke production is expected to be approximately 3.9
million tons
- Consolidated Adjusted EBITDA is expected to be between
$220 million and $235 million
- Adjusted EBITDA attributable to SXC is expected to be between
$130 million and $141 million,
reflecting the impact of public ownership in SXCP
- Capital expenditures are projected to be approximately
$80 million
- Cash generated by operations is estimated to be between
$140 million and $155 million
- Cash taxes are projected to be between $8 million and $15 million
RELATED COMMUNICATIONS
We will host our quarterly earnings call at 11:00 a.m.
Eastern Time (10:00 a.m. Central
Time) today. The conference call will be webcast live and
archived for replay in the Investors section
of www.suncoke.com. Investors may participate in this call by
dialing 1-877-201-0168 in the U.S. or 1-647-788-4901 if outside the
U.S., confirmation code 3347802.
SUNCOKE ENERGY, INC.
SunCoke Energy, Inc. (NYSE: SXC) supplies high-quality coke to
the integrated steel industry under long-term, take-or-pay
contracts that pass through commodity and certain operating costs
to customers. We utilize an innovative heat-recovery
cokemaking technology that captures excess heat for steam or
electrical power generation. We are the sponsor of SunCoke
Energy Partners, L.P. ("Partnership") (NYSE: SXCP), a publicly
traded master limited partnership. At March 31, 2017, we
owned the general partner of the Partnership, which consists of a
2.0 percent ownership interest and incentive distribution rights,
and owned a 53.9 percent limited partner interest in the
Partnership. Our cokemaking facilities are located in
Illinois, Indiana, Ohio, Virginia, Brazil and India. To learn more about
SunCoke Energy, Inc., visit our website at www.suncoke.com.
DEFINITIONS
- Adjusted EBITDA represents earnings before interest,
(gain) loss on extinguishment of debt, taxes, depreciation and
amortization ("EBITDA"), adjusted for impairments, coal
rationalization costs, changes to our contingent consideration
liability related to our acquisition of CMT and the expiration of
certain acquired contractual obligations. EBITDA and Adjusted
EBITDA do not represent and should not be considered alternatives
to net income or operating income under GAAP and may not be
comparable to other similarly titled measures in other businesses.
Management believes Adjusted EBITDA is an important measure of the
operating performance and liquidity of the Company's net assets and
its ability to incur and service debt, fund capital expenditures
and make distributions. Adjusted EBITDA provides useful
information to investors because it highlights trends in our
business that may not otherwise be apparent when relying solely on
GAAP measures and because it eliminates items that have less
bearing on our operating performance and liquidity. EBITDA
and Adjusted EBITDA are not measures calculated in accordance with
GAAP, and they should not be considered a substitute for net
income, operating cash flow or any other measure of financial
performance presented in accordance with GAAP.
- Adjusted EBITDA attributable to SXC represents Adjusted
EBITDA less Adjusted EBITDA attributable to noncontrolling
interests.
- Simplification Transaction the Company's proposal, made
on October 31, 2016, to acquire all
of the Partnership's common units not already owned by the
Company.
FORWARD-LOOKING STATEMENTS
Some of the statements included in this press release constitute
"forward-looking statements" (as defined in Section 27A of the
Securities Act of 1933, as amended and Section 21E of the
Securities Exchange Act of 1934, as amended). Forward-looking
statements include all statements that are not historical facts and
may be identified by the use of such words as "believe," "expect,"
"plan," "project," "intend," "anticipate," "estimate," "predict,"
"potential," "continue," "may," "will," "should" or the negative of
these terms or similar expressions. Forward-looking
statements are inherently uncertain and involve significant known
and unknown risks and uncertainties (many of which are beyond the
control of SXC) that could cause actual results to differ
materially.
Such risks and uncertainties include, but are not limited to
domestic and international economic, political, business,
operational, competitive, regulatory and/or market factors
affecting SXC, as well as uncertainties related to: pending
or future litigation, legislation or regulatory actions; liability
for remedial actions or assessments under existing or future
environmental regulations; gains and losses related to acquisition,
disposition or impairment of assets; recapitalizations; access to,
and costs of, capital; the effects of changes in accounting rules
applicable to SXC; and changes in tax, environmental and other laws
and regulations applicable to SXC's businesses.
Forward-looking statements are not guarantees of future
performance, but are based upon the current knowledge, beliefs and
expectations of SXC management, and upon assumptions by SXC
concerning future conditions, any or all of which ultimately may
prove to be inaccurate. The reader should not place undue
reliance on these forward-looking statements, which speak only as
of the date of this press release. SXC does not intend, and
expressly disclaims any obligation, to update or alter its
forward-looking statements (or associated cautionary language),
whether as a result of new information, future events or otherwise
after the date of this press release except as required by
applicable law.
In accordance with the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995, SXC has included in its
filings with the Securities and Exchange Commission cautionary
language identifying important factors (but not necessarily all the
important factors) that could cause actual results to differ
materially from those expressed in any forward-looking statement
made by SXC. For information concerning these factors, see
SXC's Securities and Exchange Commission filings such as its annual
and quarterly reports and current reports on Form 8-K, copies of
which are available free of charge on SXC's website at
www.suncoke.com. All forward-looking statements included in
this press release are expressly qualified in their entirety by
such cautionary statements. Unpredictable or unknown factors
not discussed in this release also could have material adverse
effects on forward-looking statements.
SunCoke Energy,
Inc.
|
Consolidated
Statements of Operations
|
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2017
|
|
2016
|
|
|
(Dollars and shares in millions,
except per share amounts)
|
Revenues
|
|
|
|
|
Sales and other
operating revenue
|
|
$
|
309.7
|
|
|
$
|
311.1
|
|
Costs and
operating expenses
|
|
|
|
|
Cost of products sold
and operating expenses
|
|
234.4
|
|
|
239.0
|
|
Selling, general and
administrative expenses
|
|
19.7
|
|
|
23.7
|
|
Depreciation and
amortization expense
|
|
33.3
|
|
|
28.2
|
|
Asset
impairment
|
|
—
|
|
|
10.7
|
|
Total costs and
operating expenses
|
|
287.4
|
|
|
301.6
|
|
Operating
income
|
|
22.3
|
|
|
9.5
|
|
Interest expense,
net
|
|
13.7
|
|
|
14.0
|
|
Loss (gain) on
extinguishment of debt
|
|
0.1
|
|
|
(20.4)
|
|
Income before income
tax expense
|
|
8.5
|
|
|
15.9
|
|
Income tax
expense(1)
|
|
66.2
|
|
|
3.3
|
|
Net (loss)
income
|
|
(57.7)
|
|
|
12.6
|
|
Less: Net (loss)
income attributable to noncontrolling
interests(1)
|
|
(58.7)
|
|
|
16.7
|
|
Net income (loss)
attributable to SunCoke Energy, Inc.
|
|
$
|
1.0
|
|
|
$
|
(4.1)
|
|
Earnings (loss)
attributable to SunCoke Energy, Inc. per common share:
|
|
|
|
|
Basic
|
|
$
|
0.02
|
|
|
$
|
(0.06)
|
|
Diluted
|
|
$
|
0.02
|
|
|
$
|
(0.06)
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
Basic
|
|
64.3
|
|
|
64.1
|
|
Diluted
|
|
65.1
|
|
|
64.1
|
|
|
|
|
|
(1)
|
In January 2017, the
Internal Revenue Service ("IRS") announced its decision to exclude
cokemaking as a qualifying income generating activity in its final
regulations (the "Final Regulations") issued under section
7704(d)(1)(E) of the Internal Revenue Code relating to the
qualifying income exception for publicly traded partnerships.
However, the Final Regulations include a 10-year transition period
for activities that were reasonably interpreted to be qualifying
income and carried on by publicly traded partnerships prior to the
Final Regulations. The Partnership previously received a will-level
opinion from its counsel, Vinson & Elkins LLP, that the
Partnership's cokemaking operations generated qualifying income
prior to the Final Regulations. Therefore, the Partnership believes
it had a reasonable basis to conclude its cokemaking operations
were considered qualifying income before the issuance of the new
regulations and as such expects to maintain its treatment as a
partnership through the 10-year transition period. After the
10-year transition period, cokemaking entities in the Partnership
will become taxable as corporations.
|
|
|
|
|
|
As a result of the
Final Regulations, the Partnership recorded deferred income tax
expense of $148.6 million for the three months ended March 31,
2017, primarily related to differences in the book and tax basis of
fixed assets, which are expected to exist at the end of the 10-year
transition period when the cokemaking operations become
taxable. As the Company consolidates the Partnership, this
entire deferred tax expense was recognized during the first quarter
of 2017. However, the Company had already recorded $84.4 million of
the deferred tax liability in its financial statements related to
the Company's share of the deferred tax liability for the book and
tax differences in its investment in the Partnership. Therefore,
the net impact to the Company's deferred tax expense was $64.2
million during the three months ended March 31, 2017. This
incremental tax impact is solely attributable to Partnership's
public unitholders. As such, an equal reduction to noncontrolling
interest was recorded. As a result, the Final Regulations have no
impact to net income attributable to the Company.
|
SunCoke Energy,
Inc.
|
Consolidated
Balance Sheets
|
|
|
|
March 31,
2017
|
|
December 31,
2016
|
|
|
(Unaudited)
|
|
|
|
|
(Dollars in
millions, except
par value amounts)
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
157.2
|
|
|
$
|
134.0
|
|
Receivables
|
|
62.2
|
|
|
60.7
|
|
Receivable from
redemption of Brazilian investment
|
|
—
|
|
|
20.5
|
|
Inventories
|
|
111.1
|
|
|
92.5
|
|
Income tax
receivable
|
|
5.7
|
|
|
4.6
|
|
Other current
assets
|
|
7.8
|
|
|
3.8
|
|
Total current
assets
|
|
344.0
|
|
|
316.1
|
|
Properties, plants
and equipment (net of accumulated depreciation of $649.1 and $625.9
million at March 31, 2017 and December 31, 2016,
respectively)
|
|
1,523.3
|
|
|
1,542.6
|
|
Goodwill
|
|
76.9
|
|
|
76.9
|
|
Other intangible
assets, net
|
|
176.2
|
|
|
179.0
|
|
Deferred charges and
other assets
|
|
5.3
|
|
|
6.3
|
|
Total
assets
|
|
$
|
2,125.7
|
|
|
$
|
2,120.9
|
|
Liabilities and
Equity
|
|
|
|
|
Accounts
payable
|
|
$
|
123.6
|
|
|
$
|
98.6
|
|
Accrued
liabilities
|
|
40.9
|
|
|
49.8
|
|
Deferred
revenue
|
|
5.6
|
|
|
2.5
|
|
Current portion of
long-term debt and financing obligation
|
|
6.1
|
|
|
4.9
|
|
Interest
payable
|
|
6.7
|
|
|
16.2
|
|
Total current
liabilities
|
|
182.9
|
|
|
172.0
|
|
Long-term debt and
financing obligation
|
|
847.0
|
|
|
849.2
|
|
Accrual for black
lung benefits
|
|
45.8
|
|
|
45.4
|
|
Retirement benefit
liabilities
|
|
28.3
|
|
|
29.0
|
|
Deferred income
taxes
|
|
418.1
|
|
|
352.5
|
|
Asset retirement
obligations
|
|
13.9
|
|
|
13.9
|
|
Other deferred
credits and liabilities
|
|
18.5
|
|
|
19.0
|
|
Total
liabilities
|
|
1,554.5
|
|
|
1,481.0
|
|
Equity
|
|
|
|
|
Preferred stock,
$0.01 par value. Authorized 50,000,000 shares; no issued shares at
March 31, 2017 and December 31, 2016
|
|
—
|
|
|
—
|
|
Common stock, $0.01
par value. Authorized 300,000,000 shares; issued 71,796,912 and
71,707,304 shares at March 31, 2017 and December 31, 2016,
respectively
|
|
0.7
|
|
|
0.7
|
|
Treasury stock,
7,477,657 shares at March 31, 2017 and December 31, 2016,
respectively
|
|
(140.7)
|
|
|
(140.7)
|
|
Additional paid-in
capital
|
|
493.6
|
|
|
492.1
|
|
Accumulated other
comprehensive loss
|
|
(18.9)
|
|
|
(19.0)
|
|
Retained
deficit
|
|
(21.3)
|
|
|
(22.0)
|
|
Total SunCoke Energy,
Inc. stockholders' equity
|
|
313.4
|
|
|
311.1
|
|
Noncontrolling
interests
|
|
257.8
|
|
|
328.8
|
|
Total
equity
|
|
571.2
|
|
|
639.9
|
|
Total liabilities and
equity
|
|
$
|
2,125.7
|
|
|
$
|
2,120.9
|
|
SunCoke Energy,
Inc.
|
Consolidated
Statements of Cash Flows
|
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
Cash Flows from
Operating Activities:
|
|
|
|
|
Net (loss)
income
|
|
$
|
(57.7)
|
|
|
$
|
12.6
|
|
Adjustments to
reconcile net (loss) income to net cash provided by operating
activities:
|
|
|
|
|
Asset
impairment
|
|
—
|
|
|
10.7
|
|
Depreciation and
amortization expense
|
|
33.3
|
|
|
28.2
|
|
Deferred income tax
expense
|
|
65.8
|
|
|
3.2
|
|
Payments in excess of
expense for postretirement plan benefits
|
|
(0.7)
|
|
|
(0.6)
|
|
Share-based
compensation expense
|
|
1.6
|
|
|
1.7
|
|
Loss (gain) on
extinguishment of debt
|
|
0.1
|
|
|
(20.4)
|
|
Changes in working
capital pertaining to operating activities (net of the effects of
held for sale working capital):
|
|
|
|
|
Receivables
|
|
(1.5)
|
|
|
(7.0)
|
|
Inventories
|
|
(18.6)
|
|
|
14.2
|
|
Accounts
payable
|
|
26.4
|
|
|
(5.8)
|
|
Accrued
liabilities
|
|
(8.9)
|
|
|
0.2
|
|
Deferred
revenue
|
|
3.1
|
|
|
9.2
|
|
Interest
payable
|
|
(9.5)
|
|
|
(11.6)
|
|
Income
taxes
|
|
(1.1)
|
|
|
(0.6)
|
|
Other
|
|
(2.8)
|
|
|
(4.6)
|
|
Net cash provided by
operating activities
|
|
29.5
|
|
|
29.4
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
Capital
expenditures
|
|
(12.7)
|
|
|
(13.8)
|
|
Decrease in
restricted cash
|
|
0.1
|
|
|
7.9
|
|
Return of Brazilian
investment
|
|
20.5
|
|
|
—
|
|
Other investing
activities
|
|
—
|
|
|
0.6
|
|
Net cash provided by
(used in) investing activities
|
|
7.9
|
|
|
(5.3)
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
Repayment of
long-term debt
|
|
(0.3)
|
|
|
(32.9)
|
|
Repayment of
financing obligation
|
|
(0.6)
|
|
|
—
|
|
Proceeds from
revolving credit facility
|
|
10.0
|
|
|
20.0
|
|
Repayment of
revolving credit facility
|
|
(10.0)
|
|
|
(20.0)
|
|
Debt issuance
costs
|
|
(0.6)
|
|
|
—
|
|
Cash distribution to
noncontrolling interests
|
|
(12.4)
|
|
|
(12.3)
|
|
Other financing
activities
|
|
(0.3)
|
|
|
(0.5)
|
|
Net cash used in
financing activities
|
|
(14.2)
|
|
|
(45.7)
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
23.2
|
|
|
(21.6)
|
|
Cash and cash
equivalents at beginning of period
|
|
134.0
|
|
|
123.4
|
|
Cash and cash
equivalents at end of period
|
|
$
|
157.2
|
|
|
$
|
101.8
|
|
Supplemental
Disclosure of Cash Flow Information
|
|
|
|
|
Interest
paid
|
|
$
|
22.6
|
|
|
$
|
26.4
|
|
Income taxes paid,
net of refunds of $0.1 million in 2017 and no refunds in
2016
|
|
$
|
1.5
|
|
|
$
|
0.8
|
|
SunCoke Energy,
Inc.
|
Segment Financial
and Operating Data
|
|
The following tables
set forth financial and operating data for the three months ended
March 31, 2017 and 2016:
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
(Dollars in
millions,
except per ton amounts)
|
Sales and other
operating revenues:
|
|
|
|
|
Domestic
Coke
|
|
$
|
278.7
|
|
|
$
|
289.0
|
|
Brazil
Coke
|
|
10.8
|
|
|
7.7
|
|
Coal
Logistics
|
|
20.2
|
|
|
13.0
|
|
Coal Logistics
intersegment sales
|
|
5.1
|
|
|
5.2
|
|
Corporate and
Other(1)
|
|
—
|
|
|
1.4
|
|
Corporate and Other
intersegment sales(1)
|
|
—
|
|
|
21.3
|
|
Elimination of
intersegment sales
|
|
(5.1)
|
|
|
(26.5)
|
|
Total sales and other
operating revenue
|
|
$
|
309.7
|
|
|
$
|
311.1
|
|
Adjusted
EBITDA(2):
|
|
|
|
|
Domestic
Coke
|
|
$
|
49.7
|
|
|
$
|
54.3
|
|
Brazil
Coke
|
|
4.4
|
|
|
2.3
|
|
Coal
Logistics
|
|
13.1
|
|
|
5.9
|
|
Corporate and Other(3)
|
|
(11.6)
|
|
|
(18.7)
|
|
Total Adjusted
EBITDA
|
|
$
|
55.6
|
|
|
$
|
43.8
|
|
Coke Operating
Data:
|
|
|
|
|
Domestic Coke
capacity utilization (%)
|
|
91
|
|
|
94
|
|
Domestic Coke
production volumes (thousands of tons)
|
|
948
|
|
|
991
|
|
Domestic Coke sales
volumes (thousands of tons)
|
|
946
|
|
|
1,000
|
|
Domestic Coke
Adjusted EBITDA per ton(4)
|
|
$
|
52.54
|
|
|
$
|
54.30
|
|
Brazilian Coke
production—operated facility (thousands of tons)
|
|
435
|
|
|
415
|
|
Coal Logistics
Operating Data:
|
|
|
|
|
Tons handled
(thousands of tons)(5)
|
|
5,719
|
|
|
4,315
|
|
CMT take-or-pay
shortfall tons (thousands of tons)(6)
|
|
544
|
|
|
1,638
|
|
|
|
|
|
(1)
|
Corporate and Other
revenues related to our legacy coal mining business.
|
|
(2)
|
See definition of
Adjusted EBITDA and reconciliation to GAAP elsewhere in this
release.
|
|
(3)
|
Corporate and Other
includes the activity from our legacy coal mining business which,
incurred Adjusted EBITDA losses of $3.5 million and $6.3 million
during the three months ended March 31, 2017 and 2016,
respectively.
|
|
(4)
|
Reflects Domestic
Coke Adjusted EBITDA divided by Domestic Coke sales
volumes.
|
|
(5)
|
Reflects inbound tons
handled during the period.
|
|
(6)
|
Reflects tons billed
under take-or-pay contracts where services have not yet been
performed.
|
SunCoke Energy,
Inc.
|
Reconciliations of
Non-GAAP Information
|
Net Cash Provided
by Operating Activities to Net (Loss) Income and Adjusted
EBITDA
|
|
|
|
Three Months Ended
March 31,
|
|
|
2017
|
|
2016(1)
|
|
|
(Dollars in
millions)
|
Net cash provided
by operating activities
|
|
$
|
29.5
|
|
|
$
|
29.4
|
|
Subtract:
|
|
|
|
|
Asset
impairment
|
|
—
|
|
|
10.7
|
|
Depreciation and
amortization expense
|
|
33.3
|
|
|
28.2
|
|
Deferred income tax
expense
|
|
65.8
|
|
|
3.2
|
|
Loss (gain) on
extinguishment of debt
|
|
0.1
|
|
|
(20.4)
|
|
Changes in working
capital and other
|
|
(12.0)
|
|
|
(4.9)
|
|
Net (loss)
income
|
|
$
|
(57.7)
|
|
|
$
|
12.6
|
|
Add:
|
|
|
|
|
Coal rationalization
income, net(2)
|
|
—
|
|
|
(0.9)
|
|
Depreciation and
amortization expense
|
|
33.3
|
|
|
28.2
|
|
Interest expense,
net
|
|
13.7
|
|
|
14.0
|
|
Loss (gain) on
extinguishment of debt
|
|
0.1
|
|
|
(20.4)
|
|
Income tax
expense
|
|
66.2
|
|
|
3.3
|
|
Asset
impairment
|
|
—
|
|
|
10.7
|
|
Contingent
consideration adjustments(3)
|
|
—
|
|
|
(3.7)
|
|
Adjusted
EBITDA
|
|
$
|
55.6
|
|
|
$
|
43.8
|
|
Subtract: Adjusted
EBITDA attributable to noncontrolling
interest(4)
|
|
21.6
|
|
|
20.3
|
|
Adjusted EBITDA
attributable to SunCoke Energy, Inc.
|
|
$
|
34.0
|
|
|
$
|
23.5
|
|
|
|
|
|
(1)
|
In response to the
SEC's May 2016 update of its guidance on the appropriate use of
non-GAAP financial measures, Adjusted EBITDA no longer includes
Coal Logistics deferred revenue until it is recognized as GAAP
revenue. As such, Adjusted EBITDA for the three months ended
March 31, 2016 has been recast from previously reported results to
exclude Coal Logistics' deferred revenue.
|
|
(2)
|
Prior to the
divestiture of our coal mining business, the Company incurred coal
rationalization (income) costs including employee severance,
contract termination costs and other costs to idle mines incurred
during the execution of our coal rationalization plan. The first
quarter of 2016 includes a gain of $1.5 million on the divestiture
of certain coal mining permits and related reclamation
obligations.
|
|
(3)
|
The Partnership
amended its contingent consideration terms with The Cline Group
during the first quarter of 2016. These amendments resulted
in a gain of $3.7 million recorded during the three months ended
March 31, 2016, which was excluded from Adjusted EBITDA.
|
|
(4)
|
Reflects
noncontrolling interest in Indiana Harbor and the portion of the
Partnership owned by public unitholders.
|
SunCoke Energy,
Inc
|
Reconciliation of
Non-GAAP Information
|
Estimated 2017
Consolidated Adjusted EBITDA to Estimated Net Loss
|
and Net Cash
Provided by Operating Activities
|
|
|
|
2017
|
|
|
Low
|
|
High
|
Net cash provided
by operating activities
|
|
$
|
140
|
|
|
$
|
155
|
|
Subtract:
|
|
|
|
|
Depreciation and
amortization expense
|
|
131
|
|
|
131
|
|
Deferred income tax
expense
|
|
65
|
|
|
70
|
|
Changes in working
capital and other
|
|
(21)
|
|
|
(24)
|
|
Net
loss
|
|
$
|
(35)
|
|
|
$
|
(22)
|
|
Add:
|
|
|
|
|
Depreciation and
amortization expense
|
|
131
|
|
|
131
|
|
Interest expense,
net
|
|
57
|
|
|
54
|
|
Income tax
expense
|
|
67
|
|
|
72
|
|
Adjusted
EBITDA
|
|
$
|
220
|
|
|
$
|
235
|
|
Subtract:
|
|
|
|
|
Adjusted EBITDA
attributable to noncontrolling interests(1)
|
|
90
|
|
|
94
|
|
Adjusted EBITDA
attributable to SunCoke Energy, Inc.
|
|
$
|
130
|
|
|
$
|
141
|
|
|
|
|
|
(1)
|
Reflects
non-controlling interest in Indiana Harbor and the portion of the
Partnership owned by public unitholders.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/suncoke-energy-inc-announces-strong-first-quarter-2017-results-discussions-on-proposed-simplification-transaction-terminated-300442432.html
SOURCE SunCoke Energy, Inc.