LISLE, Ill., Oct. 25, 2018 /PRNewswire/ -- SunCoke
Energy, Inc. (NYSE: SXC) today reported results for the third
quarter 2018, which reflect strong operating results in our coke
and logistics businesses. Third quarter results reflect the strong
performance at the company's Indiana Harbor facility and logistics
business as well as the impact of a planned outage and unrelated
machinery fire at the company's Granite
City facility.
"We are pleased with our third quarter consolidated operating
results in both the coke and logistics businesses. In the quarter,
we continue to see significant operational improvement at Indiana
Harbor driven by the diligent progress on our oven rebuild
initiative, and our CMT business continues to deliver strong
throughput volumes," said Mike
Rippey, President and Chief Executive Officer of SunCoke
Energy, Inc. "The solid performance we have achieved through the
first nine months of the year has positioned us well to deliver
full-year results at the top-end of our 2018 Adjusted EBITDA
guidance range."
The Company continued to execute its Indiana Harbor oven rebuild
initiative during the third quarter. Rippey commented, "The
majority of the A-battery ovens have been rebuilt as of the end of
the third quarter, and the improved operating performance has
allowed us to meaningfully increase our 2018 Indiana Harbor
guidance range."
Additionally, the Company will start on the last phase of our
multi-year rebuild initiative, completing comprehensive rebuilds on
all 57 remaining B-battery ovens in 2019. Rippey commented,
"We have demonstrated our ability to dramatically improve
operational performance through this rebuild process. We look
forward to implementing the knowledge and resources we have honed
to successfully execute the final phase of the rebuild project and
generate lasting benefits for our shareholders, customer,
employees, and the surrounding community."
THIRD QUARTER CONSOLIDATED RESULTS
|
Three Months Ended
September 30,
|
(Dollars in
millions)
|
2018
|
|
2017
|
|
Increase
(Decrease)
|
Revenues
|
$
|
364.5
|
|
|
$
|
339.0
|
|
|
$
|
25.5
|
|
Adjusted
EBITDA(1)
|
$
|
66.0
|
|
|
$
|
62.1
|
|
|
$
|
3.9
|
|
Net income
attributable to SXC
|
$
|
11.5
|
|
|
$
|
11.6
|
|
|
$
|
(0.1)
|
|
(1)
|
See definition of
Adjusted EBITDA and reconciliation elsewhere in this
release.
|
Revenues during the third quarter 2018 increased $25.5 million compared to the prior year period,
primarily reflecting higher sales volumes in our Domestic Coke and
Logistics segments as well as the pass-through of higher coal
prices in our Domestic Coke segment.
Adjusted EBITDA during the third quarter 2018 increased
$3.9 million to $66.0 million, due to improved sales volumes at
CMT as well as improved results at our Indiana Harbor facility.
These improvements were partially offset by the incremental
operating and maintenance costs and lower revenues related to a
planned outage and an unrelated machinery fire at our Granite City cokemaking facility.
Net income attributable to SXC was $11.5
million, or $0.18 per share,
for the third quarter 2018. The results reflect higher depreciation
expense due to revisions in estimated useful lives of certain
assets in our Domestic Coke segment, offset by improved operating
results in the current period discussed above.
THIRD 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
September 30,
|
(Dollars in
millions, except per ton amounts)
|
2018
|
|
2017
|
|
Increase
(Decrease)
|
Revenues
|
$
|
326.8
|
|
|
$
|
309.7
|
|
|
$
|
17.1
|
|
Adjusted
EBITDA(1)
|
$
|
49.1
|
|
|
$
|
55.6
|
|
|
$
|
(6.5)
|
|
Sales volumes
(thousands of tons)
|
1,012
|
|
|
975
|
|
|
37
|
|
Adjusted EBITDA per
ton(2)
|
$
|
48.52
|
|
|
$
|
57.03
|
|
|
$
|
(8.51)
|
|
(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 $17.1 million
primarily reflecting higher sales volumes and the pass-through of
higher coal prices.
Adjusted EBITDA decreased $6.5
million primarily driven by the increased scope and duration
of the planned outage at our Granite
City facility as well as a machinery fire that occurred at
Granite City in July 2018, which negatively impacted results by
$8.2 million and $2.6 million, respectively. These decreases were
partially offset by improved results at our Indiana Harbor
facility, driven by improved operating performance from our rebuilt
ovens and favorable contractual operating and maintenance
recovery.
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
September 30,
|
(Dollars in
millions)
|
2018
|
|
2017
|
|
Increase
(Decrease)
|
Revenues
|
$
|
28.0
|
|
|
$
|
18.4
|
|
|
$
|
9.6
|
|
Intersegment
sales
|
$
|
5.7
|
|
|
$
|
4.8
|
|
|
$
|
0.9
|
|
Adjusted
EBITDA(1)
|
$
|
21.0
|
|
|
$
|
12.6
|
|
|
$
|
8.4
|
|
Tons handled
(thousands of tons)(2)
|
6,943
|
|
|
5,134
|
|
|
1,809
|
|
CMT take-or-pay
shortfall tons (thousands of tons)(3)
|
42
|
|
|
1,005
|
|
|
(963)
|
|
(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. Our two largest coal export customers did not have any
shortfall tons as of September 30, 2018.
|
Revenues and Adjusted EBITDA increased by $9.6 million and $8.4
million, respectively, driven by 1.8 million of incremental
tons primarily at CMT. At the end of third quarter, we do not have
any shortfall tons related to our coal export customers as they
have shipped over their annual contractual obligations to date.
Given throughput volumes year-to-date, and unlike previous fourth
quarters, we will not recognize deferred revenue in the fourth
quarter 2018.
Brazil Coke
Brazil Coke consists of a cokemaking
facility in Vitória, Brazil, which
we operate for an affiliate of ArcelorMittal.
Revenues were $9.7 million and
$10.9 million for the third quarter
2018 and 2017, respectively. The decrease of $1.2 million compared to the prior period was
driven by unfavorable foreign currency adjustments.
Adjusted EBITDA was $4.5 million
during third quarter 2018, which is comparable with the prior
period.
Corporate and Other
Corporate and other expenses,
which include costs related to our legacy coal mining business,
were $8.6 million in third quarter
2018, an improvement of $2.1 million
versus third quarter 2017, primarily driven by the absence of cost
to resolve certain legal matters in the prior year period.
2018 OUTLOOK
Our revised 2018 guidance is as follows:
- Domestic coke production is expected to be approximately
4.0 million tons
- Consolidated Adjusted EBITDA is expected to be at the top-end
of $240 million to $255 million
- Adjusted EBITDA attributable to SXC is expected to be at the
top-end of $160 million and
$171 million, reflecting the impact
of public ownership in SXCP
- Capital expenditures are projected to be approximately
$100 million, including between
$30 million to $35 million related to our Indiana Harbor oven
rebuild project and approximately $30
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 10:00 a.m.
Eastern Time (9:00 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
9683288.
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 September 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
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars and shares in millions,
except per share amounts)
|
Revenues
|
|
|
|
|
|
|
|
|
Sales and other
operating revenue
|
|
$
|
364.5
|
|
|
$
|
339.0
|
|
|
$
|
1,082.0
|
|
|
$
|
971.9
|
|
Costs and
operating expenses
|
|
|
|
|
|
|
|
|
Cost of products sold
and operating expenses
|
|
283.3
|
|
|
257.1
|
|
|
836.6
|
|
|
748.3
|
|
Selling, general and
administrative expenses
|
|
15.7
|
|
|
17.4
|
|
|
49.2
|
|
|
61.0
|
|
Depreciation and
amortization expense
|
|
35.4
|
|
|
30.6
|
|
|
100.3
|
|
|
97.2
|
|
Total costs and
operating expenses
|
|
334.4
|
|
|
305.1
|
|
|
986.1
|
|
|
906.5
|
|
Operating
income
|
|
30.1
|
|
|
33.9
|
|
|
95.9
|
|
|
65.4
|
|
Interest expense,
net
|
|
15.4
|
|
|
16.5
|
|
|
46.9
|
|
|
46.0
|
|
Loss on
extinguishment of debt
|
|
—
|
|
|
0.1
|
|
|
0.3
|
|
|
20.4
|
|
Income (loss) before
income tax (benefit) expense
|
|
14.7
|
|
|
17.3
|
|
|
48.7
|
|
|
(1.0)
|
|
Income tax (benefit)
expense
|
|
(2.4)
|
|
|
(1.5)
|
|
|
1.8
|
|
|
69.4
|
|
Loss from equity
method investment
|
|
—
|
|
|
—
|
|
|
5.4
|
|
|
—
|
|
Net income
(loss)
|
|
17.1
|
|
|
18.8
|
|
|
41.5
|
|
|
(70.4)
|
|
Less: Net income
(loss) attributable to noncontrolling interests
|
|
5.6
|
|
|
7.2
|
|
|
17.1
|
|
|
(58.8)
|
|
Net income (loss)
attributable to SunCoke Energy, Inc.
|
|
$
|
11.5
|
|
|
$
|
11.6
|
|
|
$
|
24.4
|
|
|
$
|
(11.6)
|
|
Earnings (loss)
attributable to SunCoke Energy, Inc. per common share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.18
|
|
|
$
|
0.18
|
|
|
$
|
0.38
|
|
|
$
|
(0.18)
|
|
Diluted
|
|
$
|
0.18
|
|
|
$
|
0.18
|
|
|
$
|
0.37
|
|
|
$
|
(0.18)
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
64.7
|
|
|
64.3
|
|
|
64.7
|
|
|
64.3
|
|
Diluted
|
|
65.5
|
|
|
65.2
|
|
|
65.5
|
|
|
64.3
|
|
SunCoke Energy,
Inc.
Consolidated Balance Sheets
|
|
|
|
September 30,
2018
|
|
December 31,
2017
|
|
|
(Unaudited)
|
|
|
|
|
(Dollars in
millions, except
par value amounts)
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
168.4
|
|
|
$
|
120.2
|
|
Receivables
|
|
75.5
|
|
|
68.5
|
|
Inventories
|
|
118.0
|
|
|
111.0
|
|
Income tax
receivable
|
|
2.7
|
|
|
4.8
|
|
Other current
assets
|
|
5.3
|
|
|
6.7
|
|
Total current
assets
|
|
369.9
|
|
|
311.2
|
|
Properties, plants
and equipment (net of accumulated depreciation of
$824.0 million and $733.2 million at September 30, 2018 and
December 31, 2017, respectively)
|
|
1,488.8
|
|
|
1,501.3
|
|
Goodwill
|
|
76.9
|
|
|
76.9
|
|
Other intangible
assets, net
|
|
159.6
|
|
|
167.9
|
|
Deferred charges and
other assets
|
|
3.0
|
|
|
2.8
|
|
Total
assets
|
|
$
|
2,098.2
|
|
|
$
|
2,060.1
|
|
Liabilities and
Equity
|
|
|
|
|
Accounts
payable
|
|
$
|
154.9
|
|
|
$
|
115.5
|
|
Accrued
liabilities
|
|
45.7
|
|
|
53.2
|
|
Deferred
revenue
|
|
2.6
|
|
|
1.7
|
|
Current portion of
long-term debt and financing obligation
|
|
3.9
|
|
|
2.6
|
|
Interest
payable
|
|
16.7
|
|
|
5.4
|
|
Total current
liabilities
|
|
223.8
|
|
|
178.4
|
|
Long-term debt and
financing obligation
|
|
834.7
|
|
|
861.1
|
|
Accrual for black
lung benefits
|
|
45.9
|
|
|
44.9
|
|
Retirement benefit
liabilities
|
|
26.5
|
|
|
28.2
|
|
Deferred income
taxes
|
|
253.5
|
|
|
257.8
|
|
Asset retirement
obligations
|
|
14.4
|
|
|
14.0
|
|
Other deferred
credits and liabilities
|
|
16.8
|
|
|
16.1
|
|
Total
liabilities
|
|
1,415.6
|
|
|
1,400.5
|
|
Equity
|
|
|
|
|
Preferred stock,
$0.01 par value. Authorized 50,000,000 shares; no issued
shares at both September 30, 2018 and December 31,
2017
|
|
—
|
|
|
—
|
|
Common stock, $0.01
par value. Authorized 300,000,000 shares; issued 72,214,823 and
72,006,905 shares at September 30, 2018 and
December 31, 2017,
respectively
|
|
0.7
|
|
|
0.7
|
|
Treasury stock,
7,477,657 shares at both September 30, 2018 and
December 31, 2017
|
|
(140.7)
|
|
|
(140.7)
|
|
Additional paid-in
capital
|
|
488.0
|
|
|
486.2
|
|
Accumulated other
comprehensive loss
|
|
(14.0)
|
|
|
(21.2)
|
|
Retained
earnings
|
|
125.6
|
|
|
101.2
|
|
Total SunCoke Energy,
Inc. stockholders' equity
|
|
459.6
|
|
|
426.2
|
|
Noncontrolling
interests
|
|
223.0
|
|
|
233.4
|
|
Total
equity
|
|
682.6
|
|
|
659.6
|
|
Total liabilities and
equity
|
|
$
|
2,098.2
|
|
|
$
|
2,060.1
|
|
SunCoke Energy,
Inc.
Consolidated Statements of Cash Flows
(Unaudited)
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
Cash Flows from
Operating Activities:
|
|
|
|
|
Net income
(loss)
|
|
$
|
41.5
|
|
|
$
|
(70.4)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by
operating activities:
|
|
|
|
|
Depreciation and
amortization expense
|
|
100.3
|
|
|
97.2
|
|
Deferred income tax
(benefit) expense
|
|
(4.0)
|
|
|
70.4
|
|
Payments in excess of
expense for postretirement plan benefits
|
|
(1.8)
|
|
|
(1.6)
|
|
Share-based
compensation expense
|
|
2.2
|
|
|
4.1
|
|
Loss on
extinguishment of debt
|
|
0.3
|
|
|
20.4
|
|
Loss from equity
method investment
|
|
5.4
|
|
|
—
|
|
Changes in working
capital pertaining to operating activities:
|
|
|
|
|
Receivables
|
|
(7.0)
|
|
|
(9.5)
|
|
Inventories
|
|
(7.0)
|
|
|
(29.2)
|
|
Accounts
payable
|
|
30.6
|
|
|
32.9
|
|
Accrued
liabilities
|
|
(7.3)
|
|
|
1.3
|
|
Deferred
revenue
|
|
0.9
|
|
|
14.1
|
|
Interest
payable
|
|
11.3
|
|
|
1.4
|
|
Income
taxes
|
|
2.1
|
|
|
(4.4)
|
|
Other
|
|
3.1
|
|
|
1.6
|
|
Net cash provided by
operating activities
|
|
170.6
|
|
|
128.3
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
Capital
expenditures
|
|
(70.7)
|
|
|
(49.6)
|
|
Sale of equity method
investment
|
|
4.0
|
|
|
—
|
|
Return of Brazilian
investment
|
|
—
|
|
|
20.5
|
|
Other investing
activities
|
|
0.3
|
|
|
—
|
|
Net cash used in
investing activities
|
|
(66.4)
|
|
|
(29.1)
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
Proceeds from
issuance of long-term debt
|
|
45.0
|
|
|
620.6
|
|
Repayment of
long-term debt
|
|
(45.4)
|
|
|
(644.9)
|
|
Debt issuance
costs
|
|
(0.5)
|
|
|
(16.6)
|
|
Proceeds from
revolving credit facility
|
|
127.2
|
|
|
268.0
|
|
Repayment of
revolving credit facility
|
|
(152.2)
|
|
|
(240.0)
|
|
Repayment of
financing obligation
|
|
(1.9)
|
|
|
(1.8)
|
|
Acquisition of
additional interest in the Partnership
|
|
(4.2)
|
|
|
(33.6)
|
|
Cash distribution to
noncontrolling interests
|
|
(24.8)
|
|
|
(36.0)
|
|
Other financing
activities
|
|
0.8
|
|
|
(0.3)
|
|
Net cash used in
financing activities
|
|
(56.0)
|
|
|
(84.6)
|
|
Net increase in cash,
cash equivalents and restricted cash
|
|
48.2
|
|
|
14.6
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
|
120.2
|
|
|
134.5
|
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$
|
168.4
|
|
|
$
|
149.1
|
|
Supplemental
Disclosure of Cash Flow Information
|
|
|
|
|
Interest
paid
|
|
$
|
34.6
|
|
|
$
|
41.7
|
|
Income taxes paid,
net of refunds of $3.2 million and $1.0 million in 2018 and 2017,
respectively
|
|
$
|
3.4
|
|
|
$
|
3.5
|
|
SunCoke Energy,
Inc. Segment Financial and Operating Data
|
|
The following tables
set forth financial and operating data for the three and nine
months ended September 30, 2018 and 2017:
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions, except per ton amounts)
|
Sales and other
operating revenues:
|
|
|
|
|
|
|
|
|
Domestic
Coke
|
|
$
|
326.8
|
|
|
$
|
309.7
|
|
|
$
|
973.6
|
|
|
$
|
884.9
|
|
Brazil
Coke
|
|
9.7
|
|
|
10.9
|
|
|
30.0
|
|
|
32.2
|
|
Logistics
|
|
28.0
|
|
|
18.4
|
|
|
78.4
|
|
|
54.8
|
|
Logistics
intersegment sales
|
|
5.7
|
|
|
4.8
|
|
|
16.6
|
|
|
15.0
|
|
Elimination of
intersegment sales
|
|
(5.7)
|
|
|
(4.8)
|
|
|
(16.6)
|
|
|
(15.0)
|
|
Total sales and other
operating revenues
|
|
$
|
364.5
|
|
|
$
|
339.0
|
|
|
$
|
1,082.0
|
|
|
$
|
971.9
|
|
Adjusted
EBITDA(1):
|
|
|
|
|
|
|
|
|
Domestic
Coke
|
|
$
|
49.1
|
|
|
$
|
55.6
|
|
|
$
|
156.3
|
|
|
$
|
149.3
|
|
Brazil
Coke
|
|
4.5
|
|
|
4.6
|
|
|
14.0
|
|
|
13.5
|
|
Logistics
|
|
21.0
|
|
|
12.6
|
|
|
54.3
|
|
|
35.7
|
|
Corporate and
Other(2)
|
|
(8.6)
|
|
|
(10.7)
|
|
|
(27.3)
|
|
|
(33.3)
|
|
Total Adjusted
EBITDA
|
|
$
|
66.0
|
|
|
$
|
62.1
|
|
|
$
|
197.3
|
|
|
$
|
165.2
|
|
Coke Operating
Data:
|
|
|
|
|
|
|
|
|
Domestic Coke
capacity utilization
|
|
95
|
%
|
|
92
|
%
|
|
94
|
%
|
|
91
|
%
|
Domestic Coke
production volumes (thousands of tons)
|
|
1,011
|
|
|
981
|
|
|
2,972
|
|
|
2,879
|
|
Domestic Coke sales
volumes (thousands of tons)
|
|
1,012
|
|
|
975
|
|
|
2,993
|
|
|
2,874
|
|
Domestic Coke
Adjusted EBITDA per ton(3)
|
|
$
|
48.52
|
|
|
$
|
57.03
|
|
|
$
|
52.22
|
|
|
$
|
51.95
|
|
Brazilian Coke
production—operated facility (thousands
of tons)
|
|
454
|
|
|
444
|
|
|
1,326
|
|
|
1,316
|
|
Logistics
Operating Data:
|
|
|
|
|
|
|
|
|
Tons handled
(thousands of tons)(4)
|
|
6,943
|
|
|
5,134
|
|
|
19,744
|
|
|
16,026
|
|
CMT take-or-pay
shortfall tons (thousands of tons)(5)
|
|
42
|
|
|
1,005
|
|
|
147
|
|
|
2,505
|
|
(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 $2.9 million and $7.6 million
during the three and nine months ended September 30, 2018,
respectively, as well as $2.0 million and $8.2 million during the
three and nine months ended September 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. Our two largest coal export customers did not have any
shortfall tons as of September 30, 2018.
|
SunCoke Energy,
Inc.
Reconciliations of Non-GAAP Information
Net Cash Provided by Operating Activities
to Net Income and Adjusted EBITDA
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
(Dollars in
millions)
|
Net cash provided
by operating activities
|
|
$
|
85.3
|
|
|
$
|
73.9
|
|
|
$
|
170.6
|
|
|
$
|
128.3
|
|
Subtract:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
35.4
|
|
|
30.6
|
|
|
100.3
|
|
|
97.2
|
|
Deferred income tax
(benefit) expense
|
|
(4.3)
|
|
|
(9.4)
|
|
|
(4.0)
|
|
|
70.4
|
|
Loss on
extinguishment of debt
|
|
—
|
|
|
0.1
|
|
|
0.3
|
|
|
20.4
|
|
Loss from equity
method investment(1)
|
|
—
|
|
|
—
|
|
|
5.4
|
|
|
—
|
|
Changes in working
capital and other
|
|
37.1
|
|
|
33.8
|
|
|
27.1
|
|
|
10.7
|
|
Net income
(loss)
|
|
$
|
17.1
|
|
|
$
|
18.8
|
|
|
$
|
41.5
|
|
|
$
|
(70.4)
|
|
Add:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
$
|
35.4
|
|
|
$
|
30.6
|
|
|
$
|
100.3
|
|
|
$
|
97.2
|
|
Interest expense,
net(2)
|
|
15.4
|
|
|
16.1
|
|
|
46.9
|
|
|
45.0
|
|
Loss on
extinguishment of debt
|
|
—
|
|
|
0.1
|
|
|
0.3
|
|
|
20.4
|
|
Income tax (benefit)
expense
|
|
(2.4)
|
|
|
(1.5)
|
|
|
1.8
|
|
|
69.4
|
|
Contingent
consideration adjustments
|
|
0.5
|
|
|
(2.0)
|
|
|
1.1
|
|
|
(1.7)
|
|
Loss from equity
method investment
|
|
—
|
|
|
—
|
|
|
5.4
|
|
|
—
|
|
Expiration of land
deposits and write-off of costs related to potential new cokemaking
facility(3)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.3
|
|
Adjusted
EBITDA
|
|
66.0
|
|
|
62.1
|
|
|
197.3
|
|
|
165.2
|
|
Subtract: Adjusted
EBITDA attributable to noncontrolling
interest(4)
|
|
21.0
|
|
|
21.9
|
|
|
61.6
|
|
|
61.0
|
|
Adjusted EBITDA
attributable to SunCoke Energy, Inc.
|
|
$
|
45.0
|
|
|
$
|
40.2
|
|
|
$
|
135.7
|
|
|
$
|
104.2
|
|
(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
associated 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)
|
Write-off of
previously capitalized engineering and land deposit
costs.
|
(4)
|
Reflects
noncontrolling interests 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(1)
|
|
146
|
|
|
138
|
|
Changes in working
capital and other
|
|
(27)
|
|
|
(19)
|
|
Loss from equity
method investment
|
|
5
|
|
|
5
|
|
Net
income
|
|
$
|
26
|
|
|
$
|
41
|
|
Add:
|
|
|
|
|
Loss from equity
method investment
|
|
5
|
|
|
5
|
|
Depreciation and
amortization expense
|
|
146
|
|
|
138
|
|
Interest expense,
net
|
|
63
|
|
|
63
|
|
Income tax
expense(2)
|
|
—
|
|
|
8
|
|
Adjusted
EBITDA
|
|
$
|
240
|
|
|
$
|
255
|
|
Subtract:
|
|
|
|
|
Adjusted EBITDA
attributable to noncontrolling interests(3)
|
|
80
|
|
|
84
|
|
Adjusted EBITDA
attributable to SunCoke Energy, Inc.
|
|
$
|
160
|
|
|
$
|
171
|
|
(1)
|
Reflects revisions in
estimated useful lives of certain assets in our Domestic Coke
segment made in the third quarter.
|
(2)
|
Reflects revision in
estimated realizability of foreign tax credits made in third
quarter.
|
(3)
|
Reflects
non-controlling interests in Indiana Harbor and the portion of the
Partnership owned by public unitholders.
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/suncoke-energy-inc-announces-third-quarter-2018-results-300737478.html
SOURCE SunCoke Energy, Inc.