LISLE, Ill., July 26, 2018
/PRNewswire/ -- SunCoke Energy, Inc. (NYSE: SXC) today
reported results for the second quarter 2018, which reflect
significant year-over-year improvement across our operating
segments.
"We are pleased with our strong second quarter 2018 operating
results in both the coke and logistics businesses. We continue to
execute against our 2018 objectives and remain solidly on pace to
achieve our full-year Adjusted EBITDA guidance," said
Mike Rippey, President and Chief
Executive Officer of SunCoke Energy, Inc.
The Company continued to execute its Indiana Harbor oven rebuild
initiative during the second quarter. At the end of the second
quarter, we had completed 21 of the 67 A-battery oven rebuilds and
remain on schedule to complete all A-battery ovens by the end of
November. Rippey commented, "We are encouraged with our progress to
date. The rebuilt ovens continue to demonstrate good performance,
which has resulted in significantly increased production and higher
coal-to-coke yields."
SECOND QUARTER CONSOLIDATED RESULTS
|
Three Months Ended
June 30,
|
(Dollars in
millions)
|
2018
|
|
2017
|
|
Increase
|
Revenues
|
$
|
367.0
|
|
|
$
|
323.2
|
|
|
$
|
43.8
|
|
Adjusted
EBITDA(1)
|
$
|
67.3
|
|
|
$
|
47.5
|
|
|
$
|
19.8
|
|
Net income (loss)
attributable to SXC
|
$
|
4.2
|
|
|
$
|
(24.2)
|
|
|
$
|
28.4
|
|
|
|
(1)
|
See definition of
Adjusted EBITDA and reconciliation elsewhere in this
release.
|
Revenues during the second quarter 2018 increased $43.8 million compared to the prior year period,
primarily reflecting higher sales volumes and the pass-through of
higher coal prices in our Domestic Coke segment as well as record
sales volumes at CMT.
Adjusted EBITDA during the second quarter 2018 increased
$19.8 million to $67.3 million, primarily due to improved sales
volumes at our Domestic Coke and Logistics segments.
Net income attributable to SXC was $4.2
million, or $0.06 per share,
for the second quarter 2018, which was favorable by $28.4 million as compared to the second quarter
2017 loss of $24.2 million, or
$0.38 per share. The improvement was
driven by improved operating results in the current period
discussed above as well as the absence of the loss on
extinguishment of debt attributable to SXC of $11.6 million related to the Company and the
Partnership's refinancing activities in the prior year period.
SECOND 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
June 30,
|
(Dollars in
millions, except per ton amounts)
|
2018
|
|
2017
|
|
Increase
|
Revenues
|
$
|
328.7
|
|
|
$
|
296.5
|
|
|
$
|
32.2
|
|
Adjusted
EBITDA(1)
|
$
|
52.9
|
|
|
$
|
44.0
|
|
|
$
|
8.9
|
|
Sales volumes
(thousands of tons)
|
1,007
|
|
|
953
|
|
|
54
|
|
Adjusted EBITDA per
ton(2)
|
$
|
52.53
|
|
|
$
|
46.17
|
|
|
$
|
6.36
|
|
|
|
(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 increased $32.2 million
primarily reflecting the pass-through of higher coal prices as well
as higher sales volumes.
- Adjusted EBITDA increased $8.9
million primarily driven by improved results at our Indiana
Harbor facility of $5.5 million.
Higher volumes and improved operating performance from our rebuilt
ovens coupled with favorable contractual operating and maintenance
recovery contributed to this year-over-year increase. Additionally,
Adjusted EBITDA at our remaining Domestic Coke facilities increased
by $3.4 million, primarily driven by
$3.6 million of higher sales volumes,
improved operational coal-to-coke yields and favorable energy
prices. Comparisons between periods were also impacted by the
timing and scope of planned outages and the absence of
under-recovered coal costs from unfulfilled coal supply
commitments, which provided a benefit of $3.4 million and $1.4
million, respectively, to Adjusted EBITDA as compared to the
prior year period. These improvements were partially offset by
$4.8 million of higher maintenance
and operating costs during the second quarter 2018 compared to
prior year period.
Logistics
Logistics consists of the handling and mixing services of coal
and other aggregates operated by SunCoke Energy Partners, L.P. at
our Convent Marine Terminal ("CMT"), Lake Terminal and Kanawha
River Terminals ("KRT"). Additionally, Dismal River Terminal
("DRT") is operated by SXC.
|
Three Months Ended
June 30,
|
(Dollars in
millions)
|
2018
|
|
2017
|
|
Increase
(Decrease)
|
Revenues
|
$
|
28.1
|
|
|
$
|
16.2
|
|
|
$
|
11.9
|
|
Intersegment
sales
|
$
|
5.5
|
|
|
$
|
5.1
|
|
|
$
|
0.4
|
|
Adjusted
EBITDA(1)
|
$
|
19.7
|
|
|
$
|
10.0
|
|
|
$
|
9.7
|
|
Tons handled
(thousands of tons)(2)
|
6,980
|
|
|
5,173
|
|
|
1,807
|
|
CMT take-or-pay
shortfall tons (thousands of tons)(3)
|
63
|
|
|
956
|
|
|
(893)
|
|
|
|
(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 increased by $11.9 million and $9.7
million, respectively, driven primarily by record sales
volumes at CMT in the current year period. CMT had minimal
take-or-pay shortfall tons from our long-term, take-or-pay
arrangements at the end of the second quarter 2018 with no
shortfall tons attributable to our two largest coal export
customers.
Brazil Coke
Brazil Coke consists of a cokemaking facility in Vitória,
Brazil, which we operate for an
affiliate of ArcelorMittal.
- Revenues and Adjusted EBITDA were $10.2
million and $4.8 million,
respectively, and were comparable with the prior year period.
Corporate and Other
Corporate and other expenses, which include costs related to our
legacy coal mining business, were $10.1
million in second quarter 2018, an improvement of
$0.9 million versus second quarter
2017, primarily driven by lower employee-related costs.
2018 OUTLOOK
Our 2018 guidance is as follows:
- Domestic coke production is expected to be approximately 3.9
million tons
- Consolidated Adjusted EBITDA is expected to be between
$240 million to $255 million
- Adjusted EBITDA attributable to SXC is expected to be between
$160 million and $171 million, reflecting the impact of public
ownership in SXCP
- Capital expenditures are projected to be approximately
$95 million, including $25 to $30 million
related to our Indiana Harbor oven rebuild project and
approximately $35 million related to
our Granite City gas sharing
project
- Cash generated by operations is estimated to be between
$150 million and $165 million
- Cash taxes are projected to be between $7 million and $14
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 1-833-236-5757 in the U.S. or 1-647-689-4185 if outside the
U.S., confirmation code 8552559.
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 June 30, 2018, we
owned the general partner of the Partnership, which consists of a
2.0 percent ownership interest and incentive distribution rights,
and owned a 60.4 percent limited partner interest in the
Partnership. Our cokemaking facilities are located in
Illinois, Indiana, Ohio, Virginia and Brazil. To learn more about
SunCoke Energy, Inc., visit our website at www.suncoke.com.
DEFINITIONS
- Adjusted EBITDA represents earnings before interest,
taxes, depreciation and amortization ("EBITDA"), adjusted for any
impairments, loss (gain) on extinguishment of debt, changes to our
contingent consideration liability related to our acquisition of
CMT and/or loss on the disposal of our interest in VISA
SunCoke. 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.
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
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars and shares in millions,
except per share amounts)
|
Revenues
|
|
|
|
|
|
|
|
|
Sales and other
operating revenue
|
|
$
|
367.0
|
|
|
$
|
323.2
|
|
|
$
|
717.5
|
|
|
$
|
632.9
|
|
Costs and
operating expenses
|
|
|
|
|
|
|
|
|
Cost of products sold
and operating expenses
|
|
282.7
|
|
|
257.0
|
|
|
553.3
|
|
|
491.2
|
|
Selling, general and
administrative expenses
|
|
17.6
|
|
|
24.0
|
|
|
33.5
|
|
|
43.6
|
|
Depreciation and
amortization expense
|
|
32.0
|
|
|
33.3
|
|
|
64.9
|
|
|
66.6
|
|
Total costs and
operating expenses
|
|
332.3
|
|
|
314.3
|
|
|
651.7
|
|
|
601.4
|
|
Operating
income
|
|
34.7
|
|
|
8.9
|
|
|
65.8
|
|
|
31.5
|
|
Interest expense,
net
|
|
15.7
|
|
|
15.5
|
|
|
31.5
|
|
|
29.5
|
|
Loss on
extinguishment of debt
|
|
—
|
|
|
20.2
|
|
|
0.3
|
|
|
20.3
|
|
Income (loss) before
income tax expense
|
|
19.0
|
|
|
(26.8)
|
|
|
34.0
|
|
|
(18.3)
|
|
Income tax
expense
|
|
2.2
|
|
|
4.7
|
|
|
4.2
|
|
|
70.9
|
|
Loss from equity
method investment
|
|
5.4
|
|
|
—
|
|
|
5.4
|
|
|
—
|
|
Net income
(loss)
|
|
11.4
|
|
|
(31.5)
|
|
|
24.4
|
|
|
(89.2)
|
|
Less: Net income
(loss) attributable to noncontrolling interests
|
|
7.2
|
|
|
(7.3)
|
|
|
11.5
|
|
|
(66.0)
|
|
Net income (loss)
attributable to SunCoke Energy, Inc.
|
|
$
|
4.2
|
|
|
$
|
(24.2)
|
|
|
$
|
12.9
|
|
|
$
|
(23.2)
|
|
Earnings (loss)
attributable to SunCoke Energy, Inc. per common share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.06
|
|
|
$
|
(0.38)
|
|
|
$
|
0.20
|
|
|
$
|
(0.36)
|
|
Diluted
|
|
$
|
0.06
|
|
|
$
|
(0.38)
|
|
|
$
|
0.20
|
|
|
$
|
(0.36)
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
64.7
|
|
|
64.3
|
|
|
64.6
|
|
|
64.3
|
|
Diluted
|
|
65.6
|
|
|
64.3
|
|
|
65.5
|
|
|
64.3
|
|
SunCoke Energy,
Inc.
Consolidated
Balance Sheets
|
|
|
June 30,
2018
|
|
December 31,
2017
|
|
|
(Unaudited)
|
|
|
|
|
(Dollars in
millions, except par value amounts)
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
143.0
|
|
|
$
|
120.2
|
|
Receivables
|
|
80.5
|
|
|
68.5
|
|
Inventories
|
|
116.4
|
|
|
111.0
|
|
Income tax
receivable
|
|
4.8
|
|
|
4.8
|
|
Other current
assets
|
|
9.5
|
|
|
6.7
|
|
Total current
assets
|
|
354.2
|
|
|
311.2
|
|
Properties, plants
and equipment (net of accumulated depreciation of $792.1 and $733.2
million at June 30, 2018 and December 31, 2017,
respectively)
|
|
1,487.9
|
|
|
1,501.3
|
|
Goodwill
|
|
76.9
|
|
|
76.9
|
|
Other intangible
assets, net
|
|
162.3
|
|
|
167.9
|
|
Deferred charges and
other assets
|
|
3.0
|
|
|
2.8
|
|
Total
assets
|
|
$
|
2,084.3
|
|
|
$
|
2,060.1
|
|
Liabilities and
Equity
|
|
|
|
|
Accounts
payable
|
|
$
|
134.8
|
|
|
$
|
115.5
|
|
Accrued
liabilities
|
|
44.4
|
|
|
53.2
|
|
Deferred
revenue
|
|
3.2
|
|
|
1.7
|
|
Current portion of
long-term debt and financing obligation
|
|
3.8
|
|
|
2.6
|
|
Interest
payable
|
|
4.1
|
|
|
5.4
|
|
Total current
liabilities
|
|
190.3
|
|
|
178.4
|
|
Long-term debt and
financing obligation
|
|
860.0
|
|
|
861.1
|
|
Accrual for black
lung benefits
|
|
45.9
|
|
|
44.9
|
|
Retirement benefit
liabilities
|
|
27.1
|
|
|
28.2
|
|
Deferred income
taxes
|
|
257.8
|
|
|
257.8
|
|
Asset retirement
obligations
|
|
14.2
|
|
|
14.0
|
|
Other deferred
credits and liabilities
|
|
16.6
|
|
|
16.1
|
|
Total
liabilities
|
|
1,411.9
|
|
|
1,400.5
|
|
Equity
|
|
|
|
|
Preferred stock,
$0.01 par value. Authorized 50,000,000 shares; no issued shares at
both June 30, 2018 and December 31, 2017
|
|
—
|
|
|
—
|
|
Common stock, $0.01
par value. Authorized 300,000,000 shares; issued 72,205,859 and
72,006,905 shares at June 30, 2018 and December 31, 2017,
respectively
|
|
0.7
|
|
|
0.7
|
|
Treasury stock,
7,477,657 shares at both June 30, 2018 and December 31,
2017
|
|
(140.7)
|
|
|
(140.7)
|
|
Additional paid-in
capital
|
|
487.3
|
|
|
486.2
|
|
Accumulated other
comprehensive loss
|
|
(13.5)
|
|
|
(21.2)
|
|
Retained
earnings
|
|
114.1
|
|
|
101.2
|
|
Total SunCoke Energy,
Inc. stockholders' equity
|
|
447.9
|
|
|
426.2
|
|
Noncontrolling
interests
|
|
224.5
|
|
|
233.4
|
|
Total
equity
|
|
672.4
|
|
|
659.6
|
|
Total liabilities and
equity
|
|
$
|
2,084.3
|
|
|
$
|
2,060.1
|
|
SunCoke Energy,
Inc.
Consolidated
Statements of Cash Flows
(Unaudited)
|
|
|
|
Six Months Ended
June 30,
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
Cash Flows from
Operating Activities:
|
|
|
|
|
Net income
(loss)
|
|
$
|
24.4
|
|
|
$
|
(89.2)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization expense
|
|
64.9
|
|
|
66.6
|
|
Deferred income tax
expense
|
|
0.3
|
|
|
79.8
|
|
Payments in excess of
expense for postretirement plan benefits
|
|
(1.1)
|
|
|
(1.2)
|
|
Share-based
compensation expense
|
|
1.6
|
|
|
3.0
|
|
Loss on
extinguishment of debt
|
|
0.3
|
|
|
20.3
|
|
Loss from equity
method investment
|
|
5.4
|
|
|
—
|
|
Changes in working
capital pertaining to operating activities:
|
|
|
|
|
Receivables
|
|
(12.0)
|
|
|
(4.6)
|
|
Inventories
|
|
(5.4)
|
|
|
(23.9)
|
|
Accounts
payable
|
|
16.8
|
|
|
15.6
|
|
Accrued
liabilities
|
|
(9.0)
|
|
|
(6.2)
|
|
Deferred
revenue
|
|
1.5
|
|
|
9.5
|
|
Interest
payable
|
|
(1.3)
|
|
|
(9.6)
|
|
Income
taxes
|
|
—
|
|
|
(11.9)
|
|
Other
|
|
(1.1)
|
|
|
6.2
|
|
Net cash provided by
operating activities
|
|
85.3
|
|
|
54.4
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
Capital
expenditures
|
|
(43.6)
|
|
|
(22.4)
|
|
Sale of equity method
investment
|
|
4.0
|
|
|
—
|
|
Return of Brazilian
investment
|
|
—
|
|
|
20.5
|
|
Other investing
activities
|
|
0.3
|
|
|
—
|
|
Net cash used in
investing activities
|
|
(39.3)
|
|
|
(1.9)
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
Proceeds from
issuance of long-term debt
|
|
45.0
|
|
|
620.6
|
|
Repayment of
long-term debt
|
|
(45.2)
|
|
|
(532.2)
|
|
Debt issuance
costs
|
|
(0.5)
|
|
|
(15.6)
|
|
Proceeds from
revolving credit facility
|
|
92.5
|
|
|
128.0
|
|
Repayment of
revolving credit facility
|
|
(92.5)
|
|
|
(200.0)
|
|
Repayment of
financing obligation
|
|
(1.3)
|
|
|
(1.2)
|
|
Acquisition of
additional interest in the Partnership
|
|
(4.2)
|
|
|
(24.6)
|
|
Cash distribution to
noncontrolling interests
|
|
(17.7)
|
|
|
(24.6)
|
|
Other financing
activities
|
|
0.7
|
|
|
(0.3)
|
|
Net cash used in
financing activities
|
|
(23.2)
|
|
|
(49.9)
|
|
Net increase in cash,
cash equivalents and restricted cash
|
|
22.8
|
|
|
2.6
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
|
120.2
|
|
|
134.5
|
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$
|
143.0
|
|
|
$
|
137.1
|
|
Supplemental
Disclosure of Cash Flow Information
|
|
|
|
|
Interest
paid
|
|
$
|
31.8
|
|
|
$
|
37.2
|
|
Income taxes paid,
net of refunds of $1.3 million and $0.1 million in 2018 and 2017,
respectively
|
|
$
|
4.4
|
|
|
$
|
3.1
|
|
SunCoke Energy, Inc.
Segment
Financial and Operating Data
The following tables set forth financial and operating data for
the three and six months ended June 30,
2018 and 2017:
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions, except per ton amounts)
|
Sales and other
operating revenues:
|
|
|
|
|
|
|
|
|
Domestic
Coke
|
|
$
|
328.7
|
|
|
$
|
296.5
|
|
|
$
|
646.8
|
|
|
$
|
575.2
|
|
Brazil
Coke
|
|
10.2
|
|
|
10.5
|
|
|
20.3
|
|
|
21.3
|
|
Logistics
|
|
28.1
|
|
|
16.2
|
|
|
50.4
|
|
|
36.4
|
|
Logistics
intersegment sales
|
|
5.5
|
|
|
5.1
|
|
|
10.9
|
|
|
10.2
|
|
Elimination of
intersegment sales
|
|
(5.5)
|
|
|
(5.1)
|
|
|
(10.9)
|
|
|
(10.2)
|
|
Total sales and other
operating revenues
|
|
$
|
367.0
|
|
|
$
|
323.2
|
|
|
$
|
717.5
|
|
|
$
|
632.9
|
|
Adjusted
EBITDA(1):
|
|
|
|
|
|
|
|
|
Domestic
Coke
|
|
$
|
52.9
|
|
|
$
|
44.0
|
|
|
$
|
107.2
|
|
|
$
|
93.7
|
|
Brazil
Coke
|
|
4.8
|
|
|
4.5
|
|
|
9.5
|
|
|
8.9
|
|
Logistics
|
|
19.7
|
|
|
10.0
|
|
|
33.3
|
|
|
23.1
|
|
Corporate and
Other(2)
|
|
(10.1)
|
|
|
(11.0)
|
|
|
(18.7)
|
|
|
(22.6)
|
|
Total Adjusted
EBITDA
|
|
$
|
67.3
|
|
|
$
|
47.5
|
|
|
$
|
131.3
|
|
|
$
|
103.1
|
|
Coke Operating
Data:
|
|
|
|
|
|
|
|
|
Domestic Coke
capacity utilization
|
|
94
|
%
|
|
90
|
%
|
|
93
|
%
|
|
90
|
%
|
Domestic Coke
production volumes (thousands of tons)
|
|
999
|
|
|
950
|
|
|
1,961
|
|
|
1,898
|
|
Domestic Coke sales
volumes (thousands of tons)
|
|
1,007
|
|
|
953
|
|
|
1,981
|
|
|
1,899
|
|
Domestic Coke
Adjusted EBITDA per ton(3)
|
|
$
|
52.53
|
|
|
$
|
46.17
|
|
|
$
|
54.11
|
|
|
$
|
49.34
|
|
Brazilian Coke
production—operated facility (thousands of tons)
|
|
431
|
|
|
437
|
|
|
872
|
|
|
872
|
|
Logistics
Operating Data:
|
|
|
|
|
|
|
|
|
Tons handled
(thousands of tons)(4)
|
|
6,980
|
|
|
5,173
|
|
|
12,801
|
|
|
10,892
|
|
CMT take-or-pay
shortfall tons (thousands of tons)(5)
|
|
63
|
|
|
956
|
|
|
126
|
|
|
1,500
|
|
|
|
(1)
|
See definition of
Adjusted EBITDA and reconciliation to GAAP elsewhere in this
release.
|
(2)
|
Corporate and Other
includes the activity from our legacy coal mining business, which
contributed Adjusted EBITDA losses of $2.4 million and $4.7 million
during the three and six months ended June 30, 2018, respectively,
as well as $2.7 million and $6.2 million million during the three
and six months ended June 30, 2017, respectively.
|
(3)
|
Reflects Domestic
Coke Adjusted EBITDA divided by Domestic Coke sales
volumes.
|
(4)
|
Reflects inbound tons
handled during the period.
|
(5)
|
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 Income and
Adjusted EBITDA
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
(Dollars in
millions)
|
Net cash provided
by operating activities
|
|
$
|
28.0
|
|
|
$
|
24.9
|
|
|
$
|
85.3
|
|
|
$
|
54.4
|
|
Subtract:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
32.0
|
|
|
33.3
|
|
|
64.9
|
|
|
66.6
|
|
Deferred income tax
expense
|
|
0.1
|
|
|
14.0
|
|
|
0.3
|
|
|
79.8
|
|
Loss on
extinguishment of debt
|
|
—
|
|
|
20.2
|
|
|
0.3
|
|
|
20.3
|
|
Loss from equity
method investment(1)
|
|
5.4
|
|
|
—
|
|
|
5.4
|
|
|
—
|
|
Changes in working
capital and other
|
|
(20.9)
|
|
|
(11.1)
|
|
|
(10.0)
|
|
|
(23.1)
|
|
Net income
(loss)
|
|
$
|
11.4
|
|
|
$
|
(31.5)
|
|
|
$
|
24.4
|
|
|
$
|
(89.2)
|
|
Add:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
$
|
32.0
|
|
|
$
|
33.3
|
|
|
$
|
64.9
|
|
|
$
|
66.6
|
|
Interest expense,
net(2)
|
|
15.7
|
|
|
15.2
|
|
|
31.5
|
|
|
28.9
|
|
Loss on
extinguishment of debt
|
|
—
|
|
|
20.2
|
|
|
0.3
|
|
|
20.3
|
|
Income tax
expense
|
|
2.2
|
|
|
4.7
|
|
|
4.2
|
|
|
70.9
|
|
Contingent
consideration adjustments
|
|
0.6
|
|
|
0.3
|
|
|
0.6
|
|
|
0.3
|
|
Loss from equity
method investment
|
|
5.4
|
|
|
—
|
|
|
5.4
|
|
|
—
|
|
Expiration of land
deposits and write-off of costs related to potential new cokemaking
facility(3)
|
|
—
|
|
|
5.3
|
|
|
—
|
|
|
5.3
|
|
Adjusted
EBITDA
|
|
67.3
|
|
|
47.5
|
|
|
131.3
|
|
|
103.1
|
|
Subtract: Adjusted
EBITDA attributable to noncontrolling
interest(4)
|
|
21.6
|
|
|
17.5
|
|
|
40.6
|
|
|
39.1
|
|
Adjusted EBITDA
attributable to SunCoke Energy, Inc.
|
|
$
|
45.7
|
|
|
$
|
30.0
|
|
|
$
|
90.7
|
|
|
$
|
64.0
|
|
|
|
(1)
|
In June 2018, the
Company recorded a loss in connection with the disposal of our
interest in VISA SunCoke Limited.
|
(2)
|
In conjunction with
the adoption of ASU 2017-07, the non-service type expense associate
with the postretirement benefit plans was excluded from operating
income and recorded in interest expense, net on the Consolidated
Statements of Operations during the periods presented.
Amounts in prior periods were immaterial, and therefore, were not
reclassified in the reconciliation of Adjusted EBITDA to net income
and net cash provided by operating activities.
|
(3)
|
During the second
quarter of 2017, the Company wrote-off previously capitalized
engineering and land deposit costs of $5.3 million.
|
(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 2018 Net
Cash Provided by Operating Activities to Estimated Net
Income
and
Estimated Consolidated Adjusted EBITDA
|
|
|
|
2018
|
|
|
Low
|
|
High
|
Net cash provided
by operating activities
|
|
$
|
150
|
|
|
$
|
165
|
|
Subtract:
|
|
|
|
|
Depreciation and
amortization expense
|
|
137
|
|
|
129
|
|
Changes in working
capital and other
|
|
(22)
|
|
|
(14)
|
|
Loss from equity
method investment
|
|
5
|
|
|
5
|
|
Net
income
|
|
$
|
30
|
|
|
$
|
45
|
|
Add:
|
|
|
|
|
Loss from equity
method investment
|
|
5
|
|
|
5
|
|
Depreciation and
amortization expense
|
|
137
|
|
|
129
|
|
Interest expense,
net
|
|
63
|
|
|
63
|
|
Income tax
expense
|
|
5
|
|
|
13
|
|
Adjusted
EBITDA
|
|
$
|
240
|
|
|
$
|
255
|
|
Subtract:
|
|
|
|
|
Adjusted EBITDA
attributable to noncontrolling interests(1)
|
|
80
|
|
|
84
|
|
Adjusted EBITDA
attributable to SunCoke Energy, Inc.
|
|
$
|
160
|
|
|
$
|
171
|
|
|
|
(1)
|
Reflects
non-controlling interest in Indiana Harbor and the portion of the
Partnership owned by public unitholders.
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/suncoke-energy-inc-announces-strong-second-quarter-2018-results-300686754.html
SOURCE SunCoke Energy, Inc.