LISLE, Ill., July 30, 2019
/PRNewswire/ -- SunCoke Energy, Inc. (NYSE: SXC) today
reported results for the second quarter 2019, reflecting the strong
performance at our Domestic Coke segment, including disciplined
cost control across our cokemaking fleet.
"We are pleased with our second quarter operational performance
and the completion of the Simplification Transaction. The
simplified corporate structure has increased liquidity and improved
financial flexibility, which strengthens our ability to execute on
strategic objectives and generate significant value for SunCoke
stockholders," said Mike Rippey,
President and Chief Executive Officer of SunCoke Energy, Inc. "We
are focused on executing against our remaining 2019 objectives and
are well-positioned to achieve our full-year Adjusted EBITDA
guidance."
SECOND QUARTER CONSOLIDATED RESULTS
|
Three Months Ended
June 30,
|
(Dollars in
millions)
|
2019
|
|
2018
|
|
Increase/
(Decrease)
|
Revenues
|
$
|
407.5
|
|
|
$
|
367.0
|
|
|
$
|
40.5
|
|
Adjusted
EBITDA(1)
|
$
|
63.1
|
|
|
$
|
67.3
|
|
|
$
|
(4.2)
|
|
Net income
attributable to SXC
|
$
|
2.3
|
|
|
$
|
4.2
|
|
|
$
|
(1.9)
|
|
|
|
(1)
|
See definition of
Adjusted EBITDA and reconciliation elsewhere in this
release.
|
Revenues in the second quarter 2019 increased $40.5 million compared to the prior year period,
primarily reflecting the pass-through of higher coal prices,
partially offset by lower volumes in our Logistics segment.
Adjusted EBITDA in the second quarter 2019 was $63.1 million, a $4.2
million decrease from the prior year period, driven by lower
volumes in our Logistics segment, partially offset by improved
performance in our Domestic Coke segment.
Net income attributable to SXC was $2.3
million, or $0.03 per share,
for the second quarter 2019. The results reflect lower volumes at
CMT discussed above, certain transaction costs related to the
Simplification Transaction and higher depreciation expense. These
decreases were partially offset by the absence of the $5.4 million loss on the sale of VISA SunCoke
Limited that occurred in second quarter 2018.
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)
|
2019
|
|
2018
|
|
Increase
|
Revenues
|
$
|
378.0
|
|
|
$
|
328.7
|
|
|
$
|
49.3
|
|
Adjusted
EBITDA(1)
|
$
|
56.3
|
|
|
$
|
52.9
|
|
|
$
|
3.4
|
|
Sales volumes
(thousands of tons)
|
1,030
|
|
|
1,007
|
|
|
23
|
|
Adjusted EBITDA per
ton(2)
|
$
|
54.66
|
|
|
$
|
52.53
|
|
|
$
|
2.13
|
|
|
|
(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 $49.3 million
primarily reflecting the pass-through of higher coal prices.
Adjusted EBITDA increased $3.4
million and included $2.3
million from higher volumes at Indiana Harbor, primarily due
to the performance of the rebuilt ovens. Additionally, the Company
demonstrated strong cost control during the period resulting in a
benefit of $3.0 million as compared
to the prior year period. Results also included an increase in coal
cost recovery driven by higher coal prices during the current year
period. These benefits were partially offset by lower coal-to-coke
yields, which decreased Adjusted EBITDA by $4.0 million during the current year period, and
reflected the impact from higher coal moisture levels as a result
of heavy rainfall during the quarter.
Logistics
Logistics consists of the handling and
mixing services of coal and other aggregates at our Convent Marine
Terminal ("CMT"), Lake Terminal, Kanawha River Terminals ("KRT")
and Dismal River Terminal ("DRT").
|
Three Months Ended
June 30,
|
(Dollars in
millions)
|
2019
|
|
2018
|
|
Increase
(Decrease)
|
Revenues
|
$
|
19.5
|
|
|
$
|
28.1
|
|
|
$
|
(8.6)
|
|
Intersegment
sales
|
$
|
6.7
|
|
|
$
|
5.5
|
|
|
$
|
1.2
|
|
Adjusted
EBITDA(1)
|
$
|
11.8
|
|
|
$
|
19.7
|
|
|
$
|
(7.9)
|
|
Tons handled
(thousands of tons)(2)
|
5,592
|
|
|
6,980
|
|
|
(1,388)
|
|
CMT take-or-pay
shortfall tons (thousands of tons)(3)
|
858
|
|
|
63
|
|
|
795
|
|
|
|
(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 decreased by $8.6 million and $7.9
million, respectively, driven by lower volumes at the
Convent Marine Terminal facility, resulting in deferred revenue of
$5.5 million in the second quarter.
As a reminder, CMT has long-term take-or-pay contracts with volume
commitments covering 10 million tons of its annual capacity. Due to
the nature of these contracts, the lower volumes at CMT during the
first half will not have a material impact on full-year
expectations. The first half 2019 take-or-pay volume shortfall at
CMT generated $9.5 million in
deferred revenue, which will be recognized into revenue and
Adjusted EBITDA in the second half of 2019.
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 $10.0
million and $4.3 million,
respectively, during the second quarter 2019, which was slightly
lower than revenues and Adjusted EBITDA of $10.2 million and $4.8
million, respectively, during the second quarter 2018. The
decreases were driven by unfavorable foreign currency
adjustments.
Corporate and Other
Corporate and other Adjusted
EBITDA loss, which include costs related to our legacy coal mining
business, was $9.3 million during the
second quarter 2019, an improvement of $0.8
million compared to second quarter 2018, primarily driven by
lower professional service costs.
2019 OUTLOOK
Our 2019 guidance is as follows:
- Domestic coke production is expected to be approximately 4.1
million tons
- Consolidated Adjusted EBITDA is expected to be between
$266 to $276
million
- Adjusted EBITDA attributable to SXC is expected to be between
$226 to $232
million
- Capital expenditures are projected to be between $110 to $120
million, including $40 million
to $48 million related to our Indiana
Harbor oven rebuild project and approximately $6 million related to completing our Granite City gas sharing project
- Cash generated by operations is estimated to be between
$176 million and $191 million
- Cash taxes are projected to be between $4 to $8
million
RELATED COMMUNICATIONS
We will host our quarterly earnings call at 10:30 a.m.
Eastern Time (9:30 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
4939068.
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. Our cokemaking facilities are located
in Illinois, Indiana, Ohio, Virginia and Brazil. We have more than 55 years of
cokemaking experience serving the integrated steel industry. In
addition, we provide export and domestic material handling services
to coke, coal, steel, power and other bulk and liquids customers.
Our logistics terminals have the collective capacity to mix and
transload more than 40 million tons of material each year and are
strategically located to reach Gulf Coast, East Coast, Great Lakes
and international ports. 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 on extinguishment of debt, changes to our
contingent consideration liability related to our acquisition of
CMT, loss on the disposal of our interest in VISA SunCoke, and/or
transaction costs incurred as part of the Simplification
Transaction. EBITDA and Adjusted EBITDA do not represent and should
not be considered alternatives to net income or operating income
under accounting principles generally accepted in the U.S. ("GAAP")
and may not be comparable to other similarly titled measures in
other businesses. Management believes Adjusted EBITDA is an
important measure in assessing operating performance. 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. EBITDA and Adjusted EBITDA are not measures calculated
in accordance with GAAP, and they should not be considered a
substitute for net income 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 Income
|
(Unaudited)
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars and shares in millions,
except per share amounts)
|
Revenues
|
|
|
|
|
|
|
|
|
Sales and other
operating revenue
|
|
$
|
407.5
|
|
|
$
|
367.0
|
|
|
$
|
798.8
|
|
|
$
|
717.5
|
|
Costs and
operating expenses
|
|
|
|
|
|
|
|
|
Cost of products sold
and operating expenses
|
|
327.0
|
|
|
282.7
|
|
|
634.4
|
|
|
553.3
|
|
Selling, general and
administrative expenses
|
|
21.9
|
|
|
17.6
|
|
|
38.6
|
|
|
33.5
|
|
Depreciation and
amortization expense
|
|
37.0
|
|
|
32.0
|
|
|
74.2
|
|
|
64.9
|
|
Total costs and
operating expenses
|
|
385.9
|
|
|
332.3
|
|
|
747.2
|
|
|
651.7
|
|
Operating
income
|
|
21.6
|
|
|
34.7
|
|
|
51.6
|
|
|
65.8
|
|
Interest expense,
net
|
|
15.1
|
|
|
15.7
|
|
|
29.9
|
|
|
31.5
|
|
Loss on
extinguishment of debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
Income before income
tax expense
|
|
6.5
|
|
|
19.0
|
|
|
21.7
|
|
|
34.0
|
|
Income tax
expense
|
|
3.2
|
|
|
2.2
|
|
|
6.2
|
|
|
4.2
|
|
Loss from equity
method investment
|
|
—
|
|
|
5.4
|
|
|
—
|
|
|
5.4
|
|
Net income
|
|
3.3
|
|
|
11.4
|
|
|
15.5
|
|
|
24.4
|
|
Less: Net income
attributable to noncontrolling interests
|
|
1.0
|
|
|
7.2
|
|
|
3.4
|
|
|
11.5
|
|
Net income
attributable to SunCoke Energy, Inc.
|
|
$
|
2.3
|
|
|
$
|
4.2
|
|
|
$
|
12.1
|
|
|
$
|
12.9
|
|
Earnings attributable
to SunCoke Energy, Inc. per common share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.03
|
|
|
$
|
0.06
|
|
|
$
|
0.19
|
|
|
$
|
0.20
|
|
Diluted
|
|
$
|
0.03
|
|
|
$
|
0.06
|
|
|
$
|
0.18
|
|
|
$
|
0.20
|
|
Weighted average
number of common shares
outstanding:(1)
|
|
|
|
|
|
|
|
|
Basic
|
|
65.9
|
|
|
64.7
|
|
|
65.4
|
|
|
64.6
|
|
Diluted
|
|
66.1
|
|
|
65.6
|
|
|
65.7
|
|
|
65.5
|
|
|
|
(1)
|
The Company issued
25.5 million shares on June 28, 2019, in exchange for the SunCoke
Energy Partners, L.P. outstanding common units not already owned by
SXC. The issuance of these shares occurred late in the second
quarter and as such had a minimum impact on the 2019 weighted
average number of common shares outstanding.
|
SunCoke Energy,
Inc.
|
Consolidated
Balance Sheets
|
|
|
|
June 30,
2019
|
|
December 31,
2018
|
|
|
(Unaudited)
|
|
|
|
|
(Dollars in
millions, except par value amounts)
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
102.2
|
|
|
$
|
145.7
|
|
Receivables
|
|
98.9
|
|
|
75.4
|
|
Inventories
|
|
175.7
|
|
|
110.4
|
|
Income tax
receivable
|
|
3.2
|
|
|
0.7
|
|
Other current
assets
|
|
4.9
|
|
|
2.8
|
|
Total current
assets
|
|
384.9
|
|
|
335.0
|
|
Properties, plants
and equipment (net of accumulated depreciation of $901.6 million
and $855.8 million at June 30, 2019 and December 31, 2018,
respectively)
|
|
1,454.8
|
|
|
1,471.1
|
|
Goodwill
|
|
76.9
|
|
|
76.9
|
|
Other intangible
assets, net
|
|
151.4
|
|
|
156.8
|
|
Deferred charges and
other assets
|
|
14.4
|
|
|
5.5
|
|
Total
assets
|
|
$
|
2,082.4
|
|
|
$
|
2,045.3
|
|
Liabilities and
Equity
|
|
|
|
|
Accounts
payable
|
|
$
|
137.2
|
|
|
$
|
115.0
|
|
Accrued
liabilities
|
|
49.9
|
|
|
45.6
|
|
Deferred
revenue
|
|
13.5
|
|
|
3.0
|
|
Current portion of
long-term debt and financing obligation
|
|
5.1
|
|
|
3.9
|
|
Interest
payable
|
|
3.9
|
|
|
3.6
|
|
Total current
liabilities
|
|
209.6
|
|
|
171.1
|
|
Long-term debt and
financing obligation
|
|
828.0
|
|
|
834.5
|
|
Accrual for black
lung benefits
|
|
46.4
|
|
|
44.9
|
|
Retirement benefit
liabilities
|
|
24.1
|
|
|
25.2
|
|
Deferred income
taxes
|
|
212.8
|
|
|
254.7
|
|
Asset retirement
obligations
|
|
13.4
|
|
|
14.6
|
|
Other deferred
credits and liabilities
|
|
25.3
|
|
|
17.6
|
|
Total
liabilities
|
|
1,359.6
|
|
|
1,362.6
|
|
Equity
|
|
|
|
|
Preferred stock,
$0.01 par value. Authorized 50,000,000 shares; no issued shares at
both June 30, 2019 and December 31, 2018
|
|
—
|
|
|
—
|
|
Common stock, $0.01
par value. Authorized 300,000,000 shares; issued 98,036,174 and
72,233,750 shares at June 30, 2019 and December 31, 2018,
respectively
|
|
1.0
|
|
|
0.7
|
|
Treasury stock,
7,477,657 shares at both June 30, 2019 and December 31,
2018
|
|
(140.7)
|
|
|
(140.7)
|
|
Additional paid-in
capital
|
|
709.7
|
|
|
488.8
|
|
Accumulated other
comprehensive loss
|
|
(13.0)
|
|
|
(13.1)
|
|
Retained
earnings
|
|
139.5
|
|
|
127.4
|
|
Total SunCoke Energy,
Inc. stockholders' equity
|
|
696.5
|
|
|
463.1
|
|
Noncontrolling
interests
|
|
26.3
|
|
|
219.6
|
|
Total
equity
|
|
722.8
|
|
|
682.7
|
|
Total liabilities and
equity
|
|
$
|
2,082.4
|
|
|
$
|
2,045.3
|
|
SunCoke Energy,
Inc.
|
Consolidated
Statements of Cash Flows
|
(Unaudited)
|
|
|
|
Six Months Ended
June 30,
|
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
Cash Flows from
Operating Activities:
|
|
|
|
|
Net income
|
|
$
|
15.5
|
|
|
$
|
24.4
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization expense
|
|
74.2
|
|
|
64.9
|
|
Deferred income tax
expense
|
|
1.8
|
|
|
0.3
|
|
Payments in excess of
expense for postretirement plan benefits
|
|
(1.1)
|
|
|
(1.1)
|
|
Share-based
compensation expense
|
|
2.1
|
|
|
1.6
|
|
Loss on
extinguishment of debt
|
|
—
|
|
|
0.3
|
|
Loss from equity
method investment
|
|
—
|
|
|
5.4
|
|
Changes in working
capital pertaining to operating activities:
|
|
|
|
|
Receivables
|
|
(23.5)
|
|
|
(12.0)
|
|
Inventories
|
|
(65.3)
|
|
|
(5.4)
|
|
Accounts
payable
|
|
23.0
|
|
|
16.8
|
|
Accrued
liabilities
|
|
0.2
|
|
|
(9.0)
|
|
Deferred
revenue
|
|
10.5
|
|
|
1.5
|
|
Interest
payable
|
|
0.3
|
|
|
(1.3)
|
|
Income
taxes
|
|
(2.5)
|
|
|
—
|
|
Other
|
|
0.4
|
|
|
(1.1)
|
|
Net cash provided by
operating activities
|
|
35.6
|
|
|
85.3
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
Capital
expenditures
|
|
(53.1)
|
|
|
(43.6)
|
|
Sale of equity method
investment
|
|
—
|
|
|
4.0
|
|
Other investing
activities
|
|
0.2
|
|
|
0.3
|
|
Net cash used in
investing activities
|
|
(52.9)
|
|
|
(39.3)
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
Proceeds from
issuance of long-term debt
|
|
—
|
|
|
45.0
|
|
Repayment of
long-term debt
|
|
(0.6)
|
|
|
(45.2)
|
|
Debt issuance
costs
|
|
—
|
|
|
(0.5)
|
|
Proceeds from
revolving credit facility
|
|
175.6
|
|
|
92.5
|
|
Repayment of
revolving credit facility
|
|
(180.6)
|
|
|
(92.5)
|
|
Repayment of
financing obligation
|
|
(1.4)
|
|
|
(1.3)
|
|
Acquisition of
additional interest in the Partnership
|
|
—
|
|
|
(4.2)
|
|
Cash distribution to
noncontrolling interests
|
|
(14.2)
|
|
|
(17.7)
|
|
Other financing
activities
|
|
(5.0)
|
|
|
0.7
|
|
Net cash used in
financing activities
|
|
(26.2)
|
|
|
(23.2)
|
|
Net (decrease)
increase in cash and cash equivalents
|
|
(43.5)
|
|
|
22.8
|
|
Cash and cash
equivalents at beginning of period
|
|
145.7
|
|
|
120.2
|
|
Cash and cash
equivalents at end of period
|
|
$
|
102.2
|
|
|
$
|
143.0
|
|
Supplemental
Disclosure of Cash Flow Information
|
|
|
|
|
Interest paid, net of
capitalized interest of $2.3 million and $1.3 million,
respectively
|
|
$
|
28.0
|
|
|
$
|
30.5
|
|
Income taxes paid,
net of refunds of zero and $1.3 million, respectively
|
|
$
|
6.5
|
|
|
$
|
4.4
|
|
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, 2019 and 2018:
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions, except per ton amounts)
|
Sales and other
operating revenues:
|
|
|
|
|
|
|
|
|
Domestic
Coke
|
|
$
|
378.0
|
|
|
$
|
328.7
|
|
|
$
|
737.3
|
|
|
$
|
646.8
|
|
Brazil
Coke
|
|
10.0
|
|
|
10.2
|
|
|
19.7
|
|
|
20.3
|
|
Logistics
|
|
19.5
|
|
|
28.1
|
|
|
41.8
|
|
|
50.4
|
|
Logistics
intersegment sales
|
|
6.7
|
|
|
5.5
|
|
|
13.2
|
|
|
10.9
|
|
Elimination of
intersegment sales
|
|
(6.7)
|
|
|
(5.5)
|
|
|
(13.2)
|
|
|
(10.9)
|
|
Total sales and other
operating revenues
|
|
$
|
407.5
|
|
|
$
|
367.0
|
|
|
$
|
798.8
|
|
|
$
|
717.5
|
|
Adjusted
EBITDA(1):
|
|
|
|
|
|
|
|
|
Domestic
Coke
|
|
$
|
56.3
|
|
|
$
|
52.9
|
|
|
$
|
114.8
|
|
|
$
|
107.2
|
|
Brazil
Coke
|
|
4.3
|
|
|
4.8
|
|
|
8.8
|
|
|
9.5
|
|
Logistics
|
|
11.8
|
|
|
19.7
|
|
|
24.5
|
|
|
33.3
|
|
Corporate and
Other(2)
|
|
(9.3)
|
|
|
(10.1)
|
|
|
(17.7)
|
|
|
(18.7)
|
|
Total Adjusted
EBITDA
|
|
$
|
63.1
|
|
|
$
|
67.3
|
|
|
$
|
130.4
|
|
|
$
|
131.3
|
|
Coke Operating
Data:
|
|
|
|
|
|
|
|
|
Domestic Coke
capacity utilization
|
|
97
|
%
|
|
94
|
%
|
|
97
|
%
|
|
93
|
%
|
Domestic Coke
production volumes (thousands of tons)
|
|
1,030
|
|
|
999
|
|
|
2,036
|
|
|
1,961
|
|
Domestic Coke sales
volumes (thousands of tons)
|
|
1,030
|
|
|
1,007
|
|
|
2,034
|
|
|
1,981
|
|
Domestic Coke
Adjusted EBITDA per ton(3)
|
|
$
|
54.66
|
|
|
$
|
52.53
|
|
|
$
|
56.44
|
|
|
$
|
54.11
|
|
Brazilian Coke
production—operated facility (thousands of tons)
|
|
424
|
|
|
431
|
|
|
843
|
|
|
872
|
|
Logistics
Operating Data:
|
|
|
|
|
|
|
|
|
Tons handled
(thousands of tons)(4)
|
|
5,592
|
|
|
6,980
|
|
|
11,376
|
|
|
12,801
|
|
CMT take-or-pay
shortfall tons (thousands of tons)(5)
|
|
858
|
|
|
63
|
|
|
1,527
|
|
|
126
|
|
|
|
(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 $2.0 million and $3.8 million
during the three and six months ended June 30, 2019, respectively,
and $2.4 million and $4.7 million during the three and six months
ended June 30, 2018, 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.
|
Reconciliation of
Non-GAAP Information
|
Net Income to
Adjusted EBITDA
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
(Dollars in
millions)
|
Net
income
|
|
$
|
3.3
|
|
|
$
|
11.4
|
|
|
$
|
15.5
|
|
|
$
|
24.4
|
|
Add:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
$
|
37.0
|
|
|
$
|
32.0
|
|
|
$
|
74.2
|
|
|
$
|
64.9
|
|
Interest expense,
net
|
|
15.1
|
|
|
15.7
|
|
|
29.9
|
|
|
31.5
|
|
Loss on
extinguishment of debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
Income tax
expense
|
|
3.2
|
|
|
2.2
|
|
|
6.2
|
|
|
4.2
|
|
Contingent
consideration adjustments(1)
|
|
0.1
|
|
|
0.6
|
|
|
(0.3)
|
|
|
0.6
|
|
Loss from equity
method investment
|
|
—
|
|
|
5.4
|
|
|
—
|
|
|
5.4
|
|
Simplification
Transaction costs(2)
|
|
4.4
|
|
|
—
|
|
|
4.9
|
|
|
—
|
|
Adjusted
EBITDA
|
|
63.1
|
|
|
67.3
|
|
|
130.4
|
|
|
131.3
|
|
Subtract: Adjusted
EBITDA attributable to noncontrolling
interest(3)
|
|
18.6
|
|
|
21.6
|
|
|
37.5
|
|
|
40.6
|
|
Adjusted EBITDA
attributable to SunCoke Energy, Inc.
|
|
$
|
44.5
|
|
|
$
|
45.7
|
|
|
$
|
92.9
|
|
|
$
|
90.7
|
|
|
|
(1)
|
In connection with
the CMT acquisition, the Company entered into a contingent
consideration arrangement that requires the Company to make future
payments to the seller based on future volume over a specified
threshold, price and contract renewals. Contingent
consideration adjustments were primarily the result of
modifications to the volume forecast.
|
(2)
|
Costs expensed by the
Partnership associated with the Simplification
Transaction.
|
(3)
|
Reflects
noncontrolling interest in Indiana Harbor and the portion of the
Partnership owned by public unitholders prior to the closing of the
Simplification Transaction.
|
SunCoke Energy,
Inc.
|
Reconciliation of
Non-GAAP Information
|
Estimated 2019 Net
Income
|
to Estimated
Consolidated Adjusted EBITDA
|
|
|
|
2019
|
|
|
Low
|
|
High
|
Net
income
|
|
$
|
40
|
|
|
$
|
47
|
|
Add:
|
|
|
|
|
Depreciation and
amortization expense
|
|
150
|
|
|
145
|
|
Interest expense,
net
|
|
65
|
|
|
65
|
|
Income tax
expense
|
|
6
|
|
|
14
|
|
Simplification
Transaction costs(1)
|
|
5
|
|
|
5
|
|
Adjusted
EBITDA
|
|
$
|
266
|
|
|
$
|
276
|
|
Subtract:
|
|
|
|
|
Adjusted EBITDA
attributable to noncontrolling interests(2)
|
|
40
|
|
|
44
|
|
Adjusted EBITDA
attributable to SunCoke Energy, Inc.
|
|
$
|
226
|
|
|
$
|
232
|
|
|
|
(1)
|
Costs expensed by the
Partnership associated with the Simplification
Transaction.
|
(2)
|
Reflects
noncontrolling interest in Indiana Harbor and the portion of the
Partnership owned by public unitholders prior to the closing of the
Simplification Transaction.
|
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SOURCE SunCoke Energy, Inc.