LISLE, Ill., Jan. 26, 2017 /PRNewswire/ -- SunCoke
Energy, Inc. (NYSE: SXC) today reported fourth quarter 2016 net
income attributable to SXC of $17.0
million, or $0.26 per share,
down $2.0 million versus the prior
year period. Fourth quarter Consolidated Adjusted EBITDA was
$77.3 million, up $22.3 million versus the prior year period
primarily due to the recognition of CMT deferred revenue.
Full-year 2016 net income attributable to SXC was $14.4 million, or $0.22 per share, representing a $36.4 million increase versus the same prior year
period. The Company delivered full-year 2016 Consolidated Adjusted
EBITDA of $217.0 million, which was
in line with its full-year guidance, and $31.6 million higher than full-year 2015.
"Fourth quarter and full-year results were in line with
expectations, and again illustrate the ability for our coke and
coal logistics segments to consistently generate stable results,"
said Fritz Henderson, President,
Chairman and Chief Executive Officer of SunCoke Energy, Inc. "In
2016, we set out to manage through the challenging market
conditions that our customers faced while continuing to focus on
de-levering our balance sheet and achieving our financial
objectives. I am pleased that we have successfully delivered
against these initiatives."
Looking forward, the Company expects 2017 Consolidated Adjusted
EBITDA to be between $220 million and $235
million. This outlook reflects higher Coal Logistics volumes
and lower Corporate spending, partially offset by the impact of the
continued oven work at the Company's Indiana Harbor facility.
Henderson continued, "As we move into 2017, we are focused on
executing against our 2017 objectives and delivering value to
SunCoke shareholders."
2016 CONSOLIDATED
RESULTS(1)
|
|
|
Three Months
Ended
December 31,
|
|
Years Ended
December 31,
|
(Dollars in
millions)
|
2016
|
2015
|
Increase/
(Decrease)
|
|
2016
|
2015
|
Increase/
(Decrease)
|
Total
revenues
|
$
|
325.6
|
|
$
|
353.6
|
|
$
|
(28.0)
|
|
|
$
|
1,223.3
|
|
$
|
1,362.7
|
|
$
|
(139.4)
|
|
Net income (loss)
attributable to SXC
|
$
|
17.0
|
|
$
|
19.0
|
|
$
|
(2.0)
|
|
|
$
|
14.4
|
|
$
|
(22.0)
|
|
$
|
36.4
|
|
Adjusted
EBITDA(2)
|
$
|
77.3
|
|
$
|
55.0
|
|
$
|
22.3
|
|
|
$
|
217.0
|
|
$
|
185.4
|
|
$
|
31.6
|
|
|
|
(1)
|
The current and prior
year periods are not comparable due to the divestiture of our Coal
Mining business in April 2016 and the contribution of Convent
Marine Terminal, which was acquired on August 12, 2015.
|
(2)
|
See definition of
Adjusted EBITDA and reconciliation elsewhere in this
release.
|
Total revenues from operations were $325.6 million and $1,223.3 million in fourth quarter and full-year
2016, respectively, a decrease of $28.0
million and $139.4 million,
respectively, compared with the same prior year periods. These
decreases in revenue primarily reflect the pass-through of lower
coal prices and lower sales volumes in our Domestic Coke segment.
The full-year impact was partly offset by the full-year
contribution from the Convent Marine Terminal ("CMT") versus the
prior year period.
Fourth quarter 2016 net income attributable to SXC was
$17.0 million, or $0.26 per share, down from net income of
$19.0 million, or $0.30 per share, in the same prior year period.
The prior year results include $8.9
million of gains on debt extinguishment and lower income
taxes driven primarily by a deduction related to the liquidation of
a coal mining subsidiary.
Full-year 2016 net income attributable to SXC was $14.4 million, or $0.22 per share, versus a loss of $22.0 million, or $0.34 per share, for full-year 2015. The
improvement in full-year results was impacted by current year gains
on extinguishment of debt of $25.0
million and favorable fair value adjustments to our
contingent consideration obligation of $10.1
million. Additionally, in 2015 we recorded a $19.4 million impairment on our equity method
investment in Visa SunCoke. These year-over-year improvements were
offset by the unfavorable current year impacts from higher income
tax expense, higher non-controlling interest related to earnings at
SXCP, as well as losses of $14.7
million relating to the divestiture of our coal mining
business.
Adjusted EBITDA was $77.3 million
and $217.0 million in fourth quarter
and full-year 2016, respectively, representing an increase of
$22.3 million and $31.6 million compared to the same prior year
periods. Both fourth quarter and full-year 2016 were favorably
impacted by increased contributions from CMT of $21.9 million and $29.9
million, respectively. The divestiture of our coal mining
business, as discussed above, resulted in lower operating costs
which favorably impacted Adjusted EBITDA in 2016. Offsetting these
contributions were lower year-over-year operating results in our
Domestic Coke segment of $8.8 million
and $16.2 million in the fourth
quarter and full-year 2016, respectively, driven by a turbine
failure at our Haverhill facility in the fourth quarter as well as
lower energy sales and coal-to-coke yield gains in the full-year
period. Full-year 2016 also benefited from the absence of a
$12.6 million non-cash pension plan
termination charge recorded in 2015.
FOURTH QUARTER 2016 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
December 31,
|
(Dollars in millions,
except per ton amounts)
|
2016
|
2015
|
Increase/
(Decrease)
|
Sales and other
operating revenues
|
$
|
261.2
|
|
$
|
302.5
|
|
$
|
(41.3)
|
|
Adjusted
EBITDA(1)
|
$
|
36.5
|
|
$
|
45.3
|
|
$
|
(8.8)
|
|
Sales Volume (in
thousands of tons)
|
964
|
|
1,013
|
|
(49)
|
|
Adjusted EBITDA per
ton(2)
|
$
|
37.86
|
|
$
|
44.72
|
|
$
|
(6.86)
|
|
|
|
(1)
|
See definitions of
Adjusted EBITDA and reconciliation elsewhere in this
release.
|
(2)
|
Reflects Domestic
Coke Adjusted EBITDA divided by Domestic Coke sales
volumes.
|
- Revenues were affected by both the pass-through of lower coal
prices and a decrease in sales volume of 49 thousand tons,
primarily due to lower production at Indiana Harbor and the impact
of customer volume accommodations at Haverhill. The impact of
customer volume accommodations on Adjusted EBITDA was mitigated by
make-whole payments from AK Steel.
- Adjusted EBITDA decreased $8.8
million to $36.5 million
driven by lower volumes at Indiana Harbor due to the impact of the
ongoing oven rebuilds and lower coal-to-coke yields. Additionally,
the quarter was impacted by a turbine failure at our Haverhill
facility, resulting in an unfavorable net impact of $3.5 million. These impacts were partially offset
by favorable operating and maintenance spend.
Coal Logistics
Coal Logistics consists of the coal handling and mixing services
operated by SXCP at our Convent Marine Terminal ("CMT"), Lake
Terminal and Kanawha River Terminals ("KRT"). Additionally,
Dismal River Terminal ("DRT"), which serves our Jewell cokemaking
facility, is operated by SXC. The current and prior year periods
are not comparable due to the construction of DRT in early 2016 and
the recognition of a full-year of deferred revenue at CMT in
2016.
|
Three Months Ended
December 31,
|
|
(Dollars in millions,
except per ton amounts)
|
2016
|
2015
|
Increase/
(Decrease)
|
|
Sales and other
operating revenues
|
$
|
48.2
|
|
$
|
31.1
|
|
$
|
17.1
|
|
|
Adjusted
EBITDA(1)
|
$
|
45.3
|
|
$
|
21.1
|
|
$
|
24.2
|
|
|
Tons handled,
excluding CMT (thousands of tons)(2)
|
3,981
|
|
4,160
|
|
(179)
|
|
|
Tons handled by CMT
(thousands of tons)(2)
|
1,731
|
|
1,395
|
|
336
|
|
|
|
|
(1)
|
See definitions of
Adjusted EBITDA and reconciliation elsewhere in this
release.
|
(2)
|
Reflects inbound tons
handled during the period.
|
- Revenues were up $17.1 million,
driven by a $18.0 million increase in
revenue at CMT due primarily to higher deferred revenue recognized
in the period related to volume short-falls over the full-year
versus only a partial year in 2015, as well as a $1.0 million contribution at DRT, partially
offset by lower volumes at KRT and Lake Terminal.
- Adjusted EBITDA was up $24.2
million, driven primarily by a $21.9
million increase at CMT resulting from higher deferred
revenue recognized.
Brazil Coke
Brazil Coke consists of a cokemaking facility in Vitória,
Brazil, which we operate for an
affiliate of ArcelorMittal. In the fourth quarter, 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 which will be received on April 1,
2017.
With the redemption, the Company will no longer receive the
$9.5 million annual dividend on its
Brazil Investment. Also, starting in 2016, SunCoke will receive an
incremental $5.1 million in licensing
fees per year through 2023 related to the addition of certain
patents to its existing intellectual property licensing agreement,
which are currently in use by ArcelorMittal. SunCoke will continue
to earn existing operating and technology fees of
approximately $10 million per year through 2023 and, when
combined with the new $5.1 million in technology fees,
the total expected Adjusted EBITDA contribution from
the Brazil facility is expected to be
approximately $15 million per year.
- Adjusted EBITDA decreased $4.0
million to $8.3 million in
fourth quarter 2016, primarily due to the change in the Brazil Coke
dividend net of incremental licensing fees as discussed above.
Coal Mining
In April 2016, the Company
divested substantially all of its coal mining business to
Revelation Energy, LLC.
- Adjusted EBITDA was a loss of $0.4
million in the current year period compared to a loss of
$5.5 million in the prior year
period. The improved results reflect lower operating costs due to
the divestiture of the business.
Corporate and Other
Corporate and other expenses, including legacy costs, in fourth
quarter 2016 were $12.4 million, an
improvement of $5.8 million versus
fourth quarter 2015 primarily due to the timing of certain legacy
expenses and lower professional service spend in the current year
period. This was partially offset by $1.6
million unfavorable mark-to-market adjustments on deferred
compensation driven by changes in the Company's share price.
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
Today, we will host an investor conference call at 11:00 a.m. Eastern Time (10:00 a.m. Central Time). 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 47813261.
This conference call will be webcast live and archived for replay
in the Investor Relations section of www.suncoke.com.
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. (NYSE: SXCP), a publicly traded master limited
partnership, holding a 2 percent general partner interest, 54
percent limited partnership interest and all of the incentive
distribution rights. 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, the expiration of
certain acquired contractual obligations, and interest, taxes,
depreciation and amortization and impairments attributable to our
equity method investment. 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/SXCP represents
consolidated Adjusted EBITDA less Adjusted EBITDA attributable to
noncontrolling interests.
- Legacy Costs include royalty revenues, costs associated with
former mining employee-related liabilities prior to the
implementation of our contractor mining business and ultimate
disposal of our mining operation.
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
December 31,
|
|
Years
Ended
December
31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(Dollars and shares in millions,
except per share amounts)
|
Revenues
|
|
|
|
|
|
|
|
|
Sales and other
operating revenue
|
|
$
|
325.4
|
|
|
$
|
343.6
|
|
|
$
|
1,222.2
|
|
|
$
|
1,351.3
|
|
Other income,
net
|
|
0.2
|
|
|
10.0
|
|
|
1.1
|
|
|
11.4
|
|
Total
revenues
|
|
325.6
|
|
|
353.6
|
|
|
1,223.3
|
|
|
1,362.7
|
|
Costs and
operating expenses
|
|
|
|
|
|
|
|
|
Cost of products sold
and operating expenses
|
|
224.0
|
|
|
274.0
|
|
|
906.5
|
|
|
1,098.4
|
|
Selling, general and
administrative expenses
|
|
22.5
|
|
|
21.5
|
|
|
91.3
|
|
|
75.4
|
|
Depreciation and
amortization expense
|
|
31.8
|
|
|
33.3
|
|
|
114.2
|
|
|
109.1
|
|
Loss on divestiture
of business
|
|
—
|
|
|
—
|
|
|
14.7
|
|
|
—
|
|
Total costs and
operating expenses
|
|
278.3
|
|
|
328.8
|
|
|
1,126.7
|
|
|
1,282.9
|
|
Operating
income
|
|
47.3
|
|
|
24.8
|
|
|
96.6
|
|
|
79.8
|
|
Interest expense,
net
|
|
13.2
|
|
|
14.7
|
|
|
53.5
|
|
|
56.2
|
|
(Gain) loss on
extinguishment of debt
|
|
(0.1)
|
|
|
(8.9)
|
|
|
(25.0)
|
|
|
0.5
|
|
Income before income
tax expense (benefit) and loss from equity method
investment
|
|
34.2
|
|
|
19.0
|
|
|
68.1
|
|
|
23.1
|
|
Income tax expense
(benefit)
|
|
2.7
|
|
|
(13.9)
|
|
|
8.6
|
|
|
(8.8)
|
|
Loss from equity
method investment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21.6
|
|
Net income
|
|
31.5
|
|
|
32.9
|
|
|
59.5
|
|
|
10.3
|
|
Less: Net income
attributable to noncontrolling interests
|
|
14.5
|
|
|
13.9
|
|
|
45.1
|
|
|
32.3
|
|
Net income (loss)
attributable to SunCoke Energy, Inc.
|
|
$
|
17.0
|
|
|
$
|
19.0
|
|
|
$
|
14.4
|
|
|
$
|
(22.0)
|
|
Earnings (loss)
attributable to SunCoke Energy, Inc. per common share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.26
|
|
|
$
|
0.30
|
|
|
$
|
0.22
|
|
|
$
|
(0.34)
|
|
Diluted
|
|
$
|
0.26
|
|
|
$
|
0.30
|
|
|
$
|
0.22
|
|
|
$
|
(0.34)
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
64.2
|
|
|
64.0
|
|
|
64.2
|
|
|
65.0
|
|
Diluted
|
|
64.9
|
|
|
64.0
|
|
|
64.4
|
|
|
65.0
|
|
SunCoke Energy,
Inc.
|
Consolidated
Balance Sheets
|
(Unaudited)
|
|
|
December
31,
|
|
2016
|
|
2015
|
|
(Dollars in millions, except par
value amounts)
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
134.0
|
|
|
$
|
123.4
|
|
Receivables
|
60.7
|
|
|
64.6
|
|
Receivable from
redemption of Brazilian investment
|
20.5
|
|
|
—
|
|
Inventories
|
92.5
|
|
|
121.8
|
|
Income tax
receivable
|
4.6
|
|
|
11.6
|
|
Other current
assets
|
3.8
|
|
|
3.9
|
|
Assets held for
sale
|
—
|
|
|
0.9
|
|
Total current
assets
|
316.1
|
|
|
326.2
|
|
Restricted
cash
|
0.5
|
|
|
18.2
|
|
Investment in
Brazilian cokemaking operations
|
—
|
|
|
41.0
|
|
Properties, plants
and equipment (net of accumulated depreciation of $625.9 million
and $590.2 million at December 31, 2016 and 2015,
respectively)
|
1,542.6
|
|
|
1,582.0
|
|
Goodwill
|
76.9
|
|
|
71.1
|
|
Other intangible
assets, net
|
179.0
|
|
|
190.2
|
|
Deferred charges and
other assets
|
5.8
|
|
|
15.4
|
|
Long-term assets held
for sale
|
—
|
|
|
11.4
|
|
Total
assets
|
$
|
2,120.9
|
|
|
$
|
2,255.5
|
|
Liabilities and
Equity
|
|
|
|
Accounts
payable
|
$
|
98.6
|
|
|
$
|
99.8
|
|
Accrued
liabilities
|
49.8
|
|
|
42.9
|
|
Deferred
revenue
|
2.5
|
|
|
2.1
|
|
Current portion of
long-term debt and financing obligation
|
4.9
|
|
|
1.1
|
|
Interest
payable
|
16.2
|
|
|
18.9
|
|
Liabilities held for
sale
|
—
|
|
|
0.9
|
|
Total current
liabilities
|
172.0
|
|
|
165.7
|
|
Long-term debt and
financing obligation
|
849.2
|
|
|
997.7
|
|
Accrual for black
lung benefits
|
45.4
|
|
|
44.7
|
|
Retirement benefit
liabilities
|
29.0
|
|
|
31.3
|
|
Deferred income
taxes
|
352.5
|
|
|
349.0
|
|
Asset retirement
obligations
|
13.9
|
|
|
16.3
|
|
Other deferred
credits and liabilities
|
19.0
|
|
|
22.1
|
|
Long-term liabilities
held for sale
|
—
|
|
|
5.9
|
|
Total
liabilities
|
1,481.0
|
|
|
1,632.7
|
|
Equity
|
|
|
|
Preferred stock,
$0.01 par value. Authorized 50,000,000 shares; no issued shares at
December 31, 2016 and 2015
|
—
|
|
|
—
|
|
Common stock, $0.01
par value. Authorized 300,000,000 shares; issued 71,707,304 shares
and 71,489,448 shares at December 31, 2016 and 2015,
respectively
|
0.7
|
|
|
0.7
|
|
Treasury stock,
7,477,657 shares at December 31, 2016 and 2015
respectively
|
(140.7)
|
|
|
(140.7)
|
|
Additional paid-in
capital
|
492.1
|
|
|
486.1
|
|
Accumulated other
comprehensive loss
|
(19.0)
|
|
|
(19.8)
|
|
Retained
deficit
|
(22.0)
|
|
|
(36.4)
|
|
Total SunCoke Energy,
Inc. stockholders' equity
|
311.1
|
|
|
289.9
|
|
Noncontrolling
interests
|
328.8
|
|
|
332.9
|
|
Total
equity
|
639.9
|
|
|
622.8
|
|
Total liabilities and
equity
|
$
|
2,120.9
|
|
|
$
|
2,255.5
|
|
SunCoke Energy,
Inc.
|
Consolidated
Statements of Cash Flows
|
(Unaudited)
|
|
|
Years Ended
December 31,
|
|
2016
|
|
2015
|
|
(Dollars in
millions)
|
Cash Flows from
Operating Activities:
|
|
|
|
Net income
|
$
|
59.5
|
|
|
$
|
10.3
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Loss on divestiture
of business
|
14.7
|
|
|
—
|
|
Loss from equity
method investment
|
—
|
|
|
21.6
|
|
Depreciation and
amortization expense
|
114.2
|
|
|
109.1
|
|
Deferred income tax
benefit
|
3.1
|
|
|
(5.6)
|
|
Settlement loss and
expense for pension plan
|
—
|
|
|
13.1
|
|
Gain on curtailment
and payments in excess of expense for postretirement plan
benefits
|
(2.6)
|
|
|
(8.0)
|
|
Share-based
compensation expense
|
6.5
|
|
|
7.2
|
|
(Gain) loss on
extinguishment of debt
|
(25.0)
|
|
|
0.5
|
|
Changes in working
capital pertaining to operating activities (net of the effects of
divestiture and acquisition):
|
|
|
|
Receivables
|
3.7
|
|
|
18.8
|
|
Inventories
|
29.4
|
|
|
23.2
|
|
Accounts
payable
|
(0.8)
|
|
|
(17.9)
|
|
Accrued
liabilities
|
6.8
|
|
|
(24.3)
|
|
Deferred
revenue
|
0.4
|
|
|
(4.4)
|
|
Interest
payable
|
(2.7)
|
|
|
(1.0)
|
|
Income
taxes
|
7.0
|
|
|
(5.6)
|
|
Accrual for black
lung benefits
|
0.3
|
|
|
6.0
|
|
Other
|
4.6
|
|
|
(1.9)
|
|
Net cash provided by
operating activities
|
219.1
|
|
|
141.1
|
|
Cash Flows from
Investing Activities:
|
|
|
|
Capital
expenditures
|
(63.7)
|
|
|
(75.8)
|
|
Acquisition of
businesses, net of cash received
|
—
|
|
|
(191.7)
|
|
Decrease (increase)
in restricted cash
|
17.7
|
|
|
(17.7)
|
|
Divestiture of coal
business
|
(12.8)
|
|
|
—
|
|
Return of Brazilian
investment
|
20.5
|
|
|
—
|
|
Other investing
activities
|
2.1
|
|
|
—
|
|
Net cash used in
investing activities
|
(36.2)
|
|
|
(285.2)
|
|
Cash Flows from
Financing Activities:
|
|
|
|
Proceeds from
issuance of long-term debt
|
—
|
|
|
260.8
|
|
Repayment of
long-term debt
|
(66.1)
|
|
|
(248.1)
|
|
Debt issuance
costs
|
(0.2)
|
|
|
(5.7)
|
|
Proceeds from
revolving facility
|
28.0
|
|
|
292.4
|
|
Repayment of
revolving facility
|
(98.4)
|
|
|
(50.0)
|
|
Proceeds from
financing obligation
|
16.2
|
|
|
—
|
|
Repayment of
financing obligation
|
(1.0)
|
|
|
—
|
|
Dividends
paid
|
—
|
|
|
(28.0)
|
|
Cash distributions to
noncontrolling interests
|
(49.4)
|
|
|
(43.3)
|
|
Shares
repurchased
|
—
|
|
|
(35.7)
|
|
SunCoke Energy
Partners, L.P. units repurchased
|
—
|
|
|
(12.8)
|
|
Other financing
activities
|
(1.4)
|
|
|
(1.1)
|
|
Net cash (used in)
provided by financing activities
|
(172.3)
|
|
|
128.5
|
|
Net increase
(decrease) in cash and cash equivalents
|
10.6
|
|
|
(15.6)
|
|
Cash and cash
equivalents at beginning of year
|
123.4
|
|
|
139.0
|
|
Cash and cash
equivalents at end of year
|
$
|
134.0
|
|
|
$
|
123.4
|
|
Supplemental
Disclosure of Cash Flow Information
|
|
|
|
Interest
paid
|
$
|
58.4
|
|
|
$
|
58.1
|
|
Income taxes paid,
net of refunds of $8.2 million and $1.5 million,
respectively
|
$
|
(2.3)
|
|
|
$
|
2.4
|
|
SunCoke Energy,
Inc.
|
Segment Financial
and Operating Data
|
(unaudited)
|
|
The following tables
set forth financial and operating data for the three and twelve
months ended December 31, 2016 and 2015:
|
|
|
|
Three Months
Ended
December 31,
|
|
Years
Ended
December 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(Dollars in
millions)
|
Sales and other
operating revenues:
|
|
|
|
|
|
|
|
|
Domestic
Coke
|
|
$
|
261.2
|
|
|
$
|
302.5
|
|
|
$
|
1,097.2
|
|
|
$
|
1,243.6
|
|
Brazil
Coke
|
|
16.0
|
|
|
7.6
|
|
|
39.5
|
|
|
34.0
|
|
Coal
Logistics(1)
|
|
48.2
|
|
|
31.1
|
|
|
84.7
|
|
|
60.8
|
|
Coal Logistics
intersegment sales
|
|
7.9
|
|
|
5.1
|
|
|
23.2
|
|
|
20.4
|
|
Coal
Mining
|
|
—
|
|
|
2.4
|
|
|
0.8
|
|
|
12.9
|
|
Coal Mining
intersegment sales
|
|
—
|
|
|
26.7
|
|
|
22.0
|
|
|
101.0
|
|
Elimination of
intersegment sales
|
|
(7.9)
|
|
|
(31.8)
|
|
|
(45.2)
|
|
|
(121.4)
|
|
Total sales and other
operating revenue
|
|
$
|
325.4
|
|
|
$
|
343.6
|
|
|
$
|
1,222.2
|
|
|
$
|
1,351.3
|
|
Adjusted
EBITDA(2)
|
|
|
|
|
|
|
|
|
Domestic
Coke
|
|
$
|
36.5
|
|
|
$
|
45.3
|
|
|
$
|
193.9
|
|
|
$
|
210.1
|
|
Brazil
Coke
|
|
8.3
|
|
|
12.3
|
|
|
16.2
|
|
|
22.4
|
|
Coal
Logistics(1)
|
|
45.3
|
|
|
21.1
|
|
|
63.9
|
|
|
38.0
|
|
Coal
Mining
|
|
(0.4)
|
|
|
(5.5)
|
|
|
(6.0)
|
|
|
(18.9)
|
|
Corporate and Other,
including legacy costs, net(3)
|
|
(12.4)
|
|
|
(18.2)
|
|
|
(51.0)
|
|
|
(66.2)
|
|
Total Adjusted
EBITDA
|
|
$
|
77.3
|
|
|
$
|
55.0
|
|
|
$
|
217.0
|
|
|
$
|
185.4
|
|
Coke Operating
Data:
|
|
|
|
|
|
|
|
|
Domestic Coke
capacity utilization (%)
|
|
90
|
|
|
96
|
|
|
93
|
|
|
97
|
|
Domestic Coke
production volumes (thousands of tons)
|
|
964
|
|
|
1,028
|
|
|
3,954
|
|
|
4,122
|
|
Domestic Coke sales
volumes (thousands of tons)
|
|
964
|
|
|
1,013
|
|
|
3,956
|
|
|
4,115
|
|
Domestic Coke
Adjusted EBITDA per ton(4)
|
|
$
|
37.86
|
|
|
$
|
44.72
|
|
|
$
|
49.01
|
|
|
$
|
51.06
|
|
Brazilian Coke
production—operated facility (thousands of tons)
|
|
446
|
|
|
436
|
|
|
1,741
|
|
|
1,760
|
|
Coal Logistics
Operating Data:
|
|
|
|
|
|
|
|
|
Tons handled,
excluding CMT (thousands of tons)(5)
|
|
3,981
|
|
|
4,160
|
|
|
14,076
|
|
|
16,652
|
|
Tons handled by CMT
(thousands of tons)(1)(5)
|
|
1,731
|
|
|
1,395
|
|
|
4,493
|
|
|
2,212
|
|
|
|
(1)
|
The current and prior
full year periods are not comparable due to the impact of CMT,
which was acquired on August 12, 2015.
|
(2)
|
See definition of
Adjusted EBITDA and reconciliation to GAAP elsewhere in this
release.
|
(3)
|
Legacy costs, net
include costs associated with former mining employee-related
liabilities prior to the implementation of our contractor mining
business and ultimate disposal of mining operations, net of certain
royalty revenues. See details of these legacy items
below.
|
|
Three Months
Ended
December 31,
|
|
Years Ended
December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(Dollars in millions)
|
Black lung
expense
|
$
|
(2.9)
|
|
|
$
|
(6.5)
|
|
|
$
|
(8.1)
|
|
|
$
|
(9.8)
|
|
Postretirement
benefit plan (expense) benefit
|
(0.1)
|
|
|
(0.1)
|
|
|
(0.7)
|
|
|
3.6
|
|
Defined benefit plan
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
(13.1)
|
|
Workers compensation
expense
|
—
|
|
|
(0.7)
|
|
|
(0.6)
|
|
|
(2.3)
|
|
Other
|
0.2
|
|
|
—
|
|
|
0.4
|
|
|
(0.4)
|
|
Total legacy costs,
net
|
$
|
(2.8)
|
|
|
$
|
(7.3)
|
|
|
$
|
(9.0)
|
|
|
$
|
(22.0)
|
|
|
|
(4)
|
Reflects Domestic
Coke Adjusted EBITDA divided by Domestic Coke sales
volumes.
|
(5)
|
Reflects inbound tons
handled during the period.
|
SunCoke Energy,
Inc.
|
Reconciliations of
Non-GAAP Information
|
Adjusted EBITDA to
Net Income
|
|
|
|
Three Months
Ended
December 31,
|
|
Years Ended
December 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
Net cash provided
by operating activities
|
|
$
|
53.0
|
|
|
$
|
58.1
|
|
|
$
|
219.1
|
|
|
$
|
141.1
|
|
Subtract:
|
|
|
|
|
|
|
|
|
Loss on divestitures
of business
|
|
—
|
|
|
—
|
|
|
14.7
|
|
|
—
|
|
Depreciation and
amortization expense
|
|
31.8
|
|
|
33.3
|
|
|
114.2
|
|
|
109.1
|
|
Deferred income tax
expense (benefit)
|
|
(1.4)
|
|
|
(12.5)
|
|
|
3.1
|
|
|
(5.6)
|
|
(Gain) loss on
extinguishment of debt
|
|
(0.1)
|
|
|
(8.9)
|
|
|
(25.0)
|
|
|
0.5
|
|
Changes in working
capital and other
|
|
(8.8)
|
|
|
13.3
|
|
|
52.6
|
|
|
26.8
|
|
Net income
(loss)
|
|
$
|
31.5
|
|
|
$
|
32.9
|
|
|
$
|
59.5
|
|
|
$
|
10.3
|
|
Add:
|
|
|
|
|
|
|
|
|
Loss on divestitures
of business
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14.7
|
|
|
$
|
—
|
|
Adjustment to
unconsolidated affiliate earnings(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20.8
|
|
Coal rationalization
costs(2)
|
|
—
|
|
|
0.2
|
|
|
0.4
|
|
|
0.6
|
|
Depreciation and
amortization expense
|
|
31.8
|
|
|
33.3
|
|
|
114.2
|
|
|
109.1
|
|
Interest expense,
net
|
|
13.2
|
|
|
14.7
|
|
|
53.5
|
|
|
56.2
|
|
(Gain) loss on
extinguishment of debt
|
|
(0.1)
|
|
|
(8.9)
|
|
|
(25.0)
|
|
|
0.5
|
|
Income tax expense
(benefit)
|
|
2.7
|
|
|
(13.9)
|
|
|
8.6
|
|
|
(8.8)
|
|
Contingent
consideration adjustments(3)
|
|
(1.8)
|
|
|
—
|
|
|
(10.1)
|
|
|
—
|
|
Expiration of land
deposits(4)
|
|
—
|
|
|
—
|
|
|
1.9
|
|
|
—
|
|
Non-cash reversal of
acquired contractual obligations(5)
|
|
—
|
|
|
(3.3)
|
|
|
(0.7)
|
|
|
(3.3)
|
|
Adjusted
EBITDA
|
|
$
|
77.3
|
|
|
$
|
55.0
|
|
|
$
|
217.0
|
|
|
$
|
185.4
|
|
Subtract: Adjusted
EBITDA attributable to noncontrolling
interest(6)
|
|
28.8
|
|
|
24.9
|
|
|
86.6
|
|
|
81.2
|
|
Adjusted EBITDA
attributable to SunCoke Energy, Inc.
|
|
$
|
48.5
|
|
|
$
|
30.1
|
|
|
$
|
130.4
|
|
|
$
|
104.2
|
|
|
|
(1)
|
Reflects share of
interest, taxes, depreciation and amortization related to VISA
SunCoke. During 2015, as a result of continued decline in demand
and price of coke in India an additional impairment of $19.4
million was recorded, resulting in an investment balance of zero.
Beginning in the fourth quarter of 2015, we no longer include the
results of our share of VISA SunCoke in our consolidated financial
statements.
|
(2)
|
Prior to the
divestiture of the coal mining business, we incurred coal
rationalization costs including employee severance, contract
termination costs and other costs to idle mines during the
execution of our coal rationalization plan. The year ended
December 31, 2015 included $2.3 million of income related to a
severance accrual adjustment.
|
(3)
|
The Partnership
amended its contingent consideration terms with The Cline Group
during the first quarter of 2016. This amendment and
subsequent fair value adjustments to the contingent consideration
liability, resulted in gains of $1.8 million and $10.1 million
recorded during the three and twelve months ended December 31,
2016, respectively, which were excluded from Adjusted
EBITDA.
|
(4)
|
Reflects the
expiration of land deposits in Kentucky.
|
(5)
|
In association with
the acquisition of CMT, we assumed certain performance obligations
under existing contracts and recorded liabilities related to such
obligations. These contractual performance obligation have
expired without the customer requiring performance. As such, the
Partnership reversed the liabilities as we no longer have any
obligations under the contract.
|
(6)
|
Reflects
non-controlling interest in Indiana Harbor and the portion of the
Partnership owned by public unitholders.
|
SunCoke Energy,
Inc.
|
Reconciliation of
Non-GAAP Information
|
Estimated 2017 Net
Cash Provided by Operating Activities to Estimated Net Income and
Consolidated Adjusted EBITDA
|
|
|
|
2017
|
|
|
Low
|
|
High
|
Net Cash Provided
by Operating activities
|
|
$
|
140
|
|
|
$
|
155
|
|
Subtract:
|
|
|
|
|
Depreciation and
amortization expense
|
|
131
|
|
|
131
|
|
Changes in working
capital and other
|
|
(20)
|
|
|
(18)
|
|
Net
Income
|
|
$
|
29
|
|
|
$
|
42
|
|
Add:
|
|
|
|
|
Depreciation and
amortization expense
|
|
131
|
|
|
131
|
|
Interest expense,
net
|
|
57
|
|
|
54
|
|
Income tax
expense
|
|
3
|
|
|
8
|
|
Adjusted
EBITDA
|
|
$
|
220
|
|
|
$
|
235
|
|
Subtract: Adjusted
EBITDA attributable to noncontrolling
interest(1)
|
|
90
|
|
|
94
|
|
Adjusted EBITDA
attributable to SXC
|
|
$
|
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-fourth-quarter-and-full-year-2016-results-and-provides-full-year-2017-guidance-300397074.html
SOURCE SunCoke Energy, Inc.