LISLE, Ill., Jan. 29, 2020 /PRNewswire/ -- SunCoke
Energy, Inc. (NYSE: SXC) (the "Company") today reported fourth
quarter and full-year 2019 results, reflecting continued strong
operating performance from our Domestic Coke business.
"In 2019, we simplified our corporate structure to build
financial flexibility and made major strides in enhancing
performance and efficiency within our core domestic cokemaking
operations, leading to strong results for the year and a solid
foundation from which to drive momentum into 2020," said
Mike Rippey, President and Chief
Executive Officer of SunCoke Energy, Inc. "Despite the customer
challenges within our Logistics segment, we delivered robust cash
flows and aggressively pursued a balanced yet opportunistic
approach to capital allocation in 2019 and set the stage for
continued progress on our capital allocation priorities in
2020."
Looking forward, the Company expects 2020 consolidated Adjusted
EBITDA to be between $235 million and
$245 million, driven by continued
improvement in our cokemaking business, partially offset by the
challenges faced by our coal export customers in our logistics
business.
Rippey continued, "As we move forward in 2020, we will remain
focused on executing against our objectives of improved safety
performance and operational excellence. Additionally, we will work
towards development of new business opportunities for our Logistics
segment and navigating through the upcoming coke contract renewal
negotiations. We are committed to positioning the Company for
sustained success and delivering significant value to SunCoke
stakeholders."
CONSOLIDATED RESULTS
|
Three Months
Ended
December 31,
|
|
Years Ended
December 31,
|
(Dollars in
millions)
|
2019
|
2018
|
Increase/
(Decrease)
|
|
2019
|
2018
|
Increase/
(Decrease)
|
Sales and other
operating revenues
|
$
|
397.2
|
|
$
|
368.9
|
|
$
|
28.3
|
|
|
$
|
1,600.3
|
|
$
|
1,450.9
|
|
$
|
149.4
|
|
Net (loss) income
attributable to SXC
|
$
|
(1.4)
|
|
$
|
1.8
|
|
$
|
(3.2)
|
|
|
$
|
(152.3)
|
|
$
|
26.2
|
|
$
|
(178.5)
|
|
Adjusted
EBITDA(1)
|
$
|
50.8
|
|
$
|
65.9
|
|
$
|
(15.1)
|
|
|
$
|
247.9
|
|
$
|
263.2
|
|
$
|
(15.3)
|
|
|
|
(1)
|
See definition of
Adjusted EBITDA and reconciliation elsewhere in this
release.
|
Revenues increased $28.3 million
and $149.4 million for the fourth
quarter and full-year 2019, respectively, primarily reflecting the
pass-through of higher coal prices and higher sales volumes in our
Domestic Coke segment, partially offset by lower transloading
volumes in our Logistics segment.
Fourth quarter and full year 2019 Adjusted EBITDA decreased by
$15.1 million and $15.3 million, respectively. The decrease
reflects the impact of the previously announced bankruptcy of one
of our coal export customers, which was partially offset by the
improved performance in our Domestic Coke segment.
Net (loss) income attributable to SXC decreased $3.2 million for the fourth quarter 2019
reflecting lower operating results discussed above, partially
offset by lower depreciation expense and lower income attributable
to noncontrolling interest.
Net loss attributable to SXC was $152.3
million for the full-year 2019 and included
non-cash impairment related charges at Logistics, net of
taxes, of $174.8 million recorded in
the third quarter. Excluding these impairment related charges,
Adjusted net income attributable to SXC decreased $3.7 million for the full-year mainly due to
lower operating results discussed above.
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,
|
|
Years Ended
December 31,
|
(Dollars in millions,
except per ton amounts)
|
2019
|
2018
|
Increase/
(Decrease)
|
|
2019
|
2018
|
Increase
|
Sales and other
operating revenues
|
$
|
373.3
|
|
$
|
334.7
|
|
$
|
38.6
|
|
|
$
|
1,489.1
|
|
$
|
1,308.3
|
|
$
|
180.8
|
|
Adjusted
EBITDA(1)
|
$
|
52.1
|
|
$
|
51.6
|
|
$
|
0.5
|
|
|
$
|
226.7
|
|
$
|
207.9
|
|
$
|
18.8
|
|
Sales Volume (in
thousands of tons)
|
1,080
|
|
1,040
|
|
40
|
|
|
4,171
|
|
4,033
|
|
138
|
|
Adjusted EBITDA per
ton(2)
|
$
|
48.24
|
|
$
|
49.62
|
|
$
|
(1.38)
|
|
|
$
|
54.35
|
|
$
|
51.55
|
|
$
|
2.80
|
|
|
|
(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 increased $38.6 million
and $180.8 million, for the fourth
quarter and full-year 2019, respectively, compared with the same
prior year periods, reflecting the pass-through of higher coal
prices and higher sales volumes.
- Adjusted EBITDA increased $0.5
million and $18.8 million for
the fourth quarter and full-year 2019, respectively, reflecting
additional sales volume at Indiana Harbor and lower outage impact
at Granite City.
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
December 31,
|
|
Years Ended
December 31,
|
|
|
(Dollars in
millions)
|
2019
|
2018
|
Decrease
|
|
2019
|
2018
|
Increase/
(Decrease)
|
|
Sales and other
operating revenues
|
$
|
14.8
|
|
$
|
23.8
|
|
$
|
(9.0)
|
|
|
$
|
72.8
|
|
$
|
102.2
|
|
$
|
(29.4)
|
|
|
Intersegment
sales
|
$
|
7.0
|
|
$
|
7.9
|
|
$
|
(0.9)
|
|
|
$
|
26.3
|
|
$
|
24.5
|
|
$
|
1.8
|
|
|
Adjusted
EBITDA(1)
|
$
|
8.5
|
|
$
|
18.3
|
|
$
|
(9.8)
|
|
|
$
|
42.6
|
|
$
|
72.6
|
|
$
|
(30.0)
|
|
|
Tons handled
(thousands of tons)(2)
|
4,971
|
|
6,861
|
|
(1,890)
|
|
|
21,053
|
|
26,605
|
|
(5,552)
|
|
|
|
|
(1)
|
See definitions of
Adjusted EBITDA and reconciliation elsewhere in this
release.
|
(2)
|
Reflects inbound tons
handled during the period.
|
- Revenues decreased $9.0 million
for the fourth quarter 2019 and $29.4
million for the full-year 2019. Lower demand and depressed
export pricing drove lower throughput volumes in the fourth quarter
and full-year 2019.
- Adjusted EBITDA decreased $9.8
million for the fourth quarter 2019 and $30.0 million for the full-year 2019 mainly due
to lower throughput volumes as described above. Results in 2019
reflect the impact of bankruptcy of Murray Energy - one of our coal
export customers. We do not expect any throughput volumes from
Murray Energy in 2020.
Brazil Coke
Brazil Coke consists of a cokemaking facility in Vitória,
Brazil, which we operate for an
affiliate of ArcelorMittal.
- Revenues were $9.1 million and
$38.4 million for the fourth quarter
and full-year 2019, respectively, a decrease of $1.3 million and $2.0
million, respectively, as compared to the same prior year
periods. These decreases were the result of lower volumes and
unfavorable foreign currency adjustments.
- Adjusted EBITDA was $3.3 million
and $16.0 million for the fourth
quarter and full-year 2019, respectively, a decrease of
$1.1 million and $2.4 million, respectively, as compared with the
same prior year periods, mainly due to lower volumes.
Corporate and Other
Corporate and other expenses,
which includes activity from our legacy coal mining business,
increased $4.7 million and
$1.7 million, for the fourth quarter
and full-year 2019, respectively, compared to the same prior year
periods. The fourth quarter increase was primarily due to the
timing of employee related expenses as well as higher legacy costs.
The impact of higher legacy costs on the full year period was
mostly offset by lower legal costs.
2020 OUTLOOK
Our 2020 guidance assumes Indiana Harbor achieving full
production of 1.2 million tons and run-rate EBITDA of
approximately $50 million. It also
assumes continued Logistics customer disruption, including an
anticipated renegotiated contract with our CMT customer, Foresight
Energy.
Our 2020 guidance is as follows:
- Domestic coke production is expected to be approximately 4.3
million tons
- Consolidated Adjusted EBITDA is expected to be between
$235 million to $245 million
- Capital expenditures are projected to be between $70 million to $80
million
- Cash generated by operations is estimated to be between
$170 million and $185 million
- Cash taxes are projected to be between $4 million to $8
million
RELATED COMMUNICATIONS
Today, we will host an investor conference call at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). 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 6073206. 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. 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, (gain) 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 Limited,
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.
- Adjusted net income attributable to SXC represents net
income (loss) attributable to SXC adjusted for impairments, changes
to our contingent consideration liability as a result of
impairments and related tax impacts. Adjusted earnings per
share is Adjusted net income attributable to SXC divided by the
weighted average number of diluted common shares outstanding.
Management believes Adjusted net income attributable to SXC and
Adjusted earnings per share provide useful information to investors
because it eliminates non-cash impairment related charges that are
not representative of our ongoing business. These measures are not
calculated in accordance with GAAP, and should not be considered a
substitute for net income or any other measure of financial
performance presented in accordance with GAAP.
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
|
|
|
|
Three Months
Ended
December 31,
|
|
Years
Ended
December 31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Audited)
|
|
|
(Dollars and shares in millions,
except per share amounts)
|
Revenues
|
|
|
|
|
|
|
|
|
Sales and other
operating revenue
|
|
$
|
397.2
|
|
|
$
|
368.9
|
|
|
$
|
1,600.3
|
|
|
$
|
1,450.9
|
|
Costs and
operating expenses
|
|
|
|
|
|
|
|
|
Cost of products sold
and operating expenses
|
|
323.8
|
|
|
287.9
|
|
|
1,277.6
|
|
|
1,124.5
|
|
Selling, general and
administrative expenses
|
|
22.9
|
|
|
16.9
|
|
|
75.8
|
|
|
66.1
|
|
Depreciation and
amortization expense
|
|
34.0
|
|
|
41.3
|
|
|
143.8
|
|
|
141.6
|
|
Long-lived asset and
goodwill impairment
|
|
—
|
|
—
|
|
—
|
|
|
247.4
|
|
|
—
|
|
Total costs and
operating expenses
|
|
380.7
|
|
|
346.1
|
|
|
1,744.6
|
|
|
1,332.2
|
|
Operating income
(loss)
|
|
16.5
|
|
|
22.8
|
|
|
(144.3)
|
|
|
118.7
|
|
Interest expense,
net
|
|
14.7
|
|
|
14.5
|
|
|
60.3
|
|
|
61.4
|
|
(Gain) loss on
extinguishment of debt, net
|
|
—
|
|
|
—
|
|
|
(1.5)
|
|
|
0.3
|
|
Income (loss) before
income tax expense (benefit)
|
|
1.8
|
|
|
8.3
|
|
|
(203.1)
|
|
|
57.0
|
|
Income tax expense
(benefit)
|
|
2.6
|
|
|
2.8
|
|
|
(54.7)
|
|
|
4.6
|
|
Loss from equity
method investment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.4
|
|
Net (loss)
income
|
|
(0.8)
|
|
|
5.5
|
|
|
(148.4)
|
|
|
47.0
|
|
Less: Net income
attributable to noncontrolling interests
|
|
0.6
|
|
|
3.7
|
|
|
3.9
|
|
|
20.8
|
|
Net (loss) income
attributable to SunCoke Energy, Inc.
|
|
$
|
(1.4)
|
|
|
$
|
1.8
|
|
|
$
|
(152.3)
|
|
|
$
|
26.2
|
|
(Loss) earnings
attributable to SunCoke Energy, Inc. per common share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.02)
|
|
|
$
|
0.03
|
|
|
$
|
(1.98)
|
|
|
$
|
0.40
|
|
Diluted
|
|
$
|
(0.02)
|
|
|
$
|
0.03
|
|
|
$
|
(1.98)
|
|
|
$
|
0.40
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
86.0
|
|
|
64.7
|
|
|
76.8
|
|
|
64.7
|
|
Diluted
|
|
86.0
|
|
|
65.4
|
|
|
76.8
|
|
|
65.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SunCoke Energy,
Inc.
|
Consolidated
Balance Sheets
|
|
|
December
31,
|
|
2019
|
|
2018
|
|
(Unaudited)
|
|
(Audited)
|
|
(Dollars in millions, except
par value amounts)
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
97.1
|
|
|
$
|
145.7
|
|
Receivables,
net
|
59.5
|
|
|
75.4
|
|
Inventories
|
147.0
|
|
|
110.4
|
|
Income tax
receivable
|
2.2
|
|
|
0.7
|
|
Other current
assets
|
2.5
|
|
|
2.8
|
|
Total current
assets
|
308.3
|
|
|
335.0
|
|
Properties, plants
and equipment (net of accumulated depreciation of $903.7 million
and $855.8 million at December 31, 2019 and 2018,
respectively)
|
1,390.2
|
|
|
1,471.1
|
|
Goodwill
|
3.4
|
|
|
76.9
|
|
Other intangible
assets, net
|
34.7
|
|
|
156.8
|
|
Deferred charges and
other assets
|
17.2
|
|
|
5.5
|
|
Total
assets
|
$
|
1,753.8
|
|
|
$
|
2,045.3
|
|
Liabilities and
Equity
|
|
|
|
Accounts
payable
|
$
|
142.4
|
|
|
$
|
115.0
|
|
Accrued
liabilities
|
47.0
|
|
|
45.6
|
|
Deferred
revenue
|
0.3
|
|
|
3.0
|
|
Current portion of
long-term debt and financing obligation
|
2.9
|
|
|
3.9
|
|
Interest
payable
|
2.2
|
|
|
3.6
|
|
Total current
liabilities
|
194.8
|
|
|
171.1
|
|
Long-term debt and
financing obligation
|
780.0
|
|
|
834.5
|
|
Accrual for black
lung benefits
|
50.5
|
|
|
44.9
|
|
Retirement benefit
liabilities
|
24.5
|
|
|
25.2
|
|
Deferred income
taxes
|
147.6
|
|
|
254.7
|
|
Asset retirement
obligations
|
14.4
|
|
|
14.6
|
|
Other deferred
credits and liabilities
|
23.6
|
|
|
17.6
|
|
Total
liabilities
|
1,235.4
|
|
|
1,362.6
|
|
Equity
|
|
|
|
Preferred stock,
$0.01 par value. Authorized 50,000,000 shares; no issued shares at
both December 31, 2019 and 2018
|
—
|
|
|
—
|
|
Common stock, $0.01
par value. Authorized 300,000,000 shares; issued 98,047,389 and
72,233,750 shares at December 31, 2019 and 2018,
respectively
|
1.0
|
|
|
0.7
|
|
Treasury stock,
13,783,182 and 7,477,657 shares at December 31, 2019 and 2018,
respectively
|
(177.0)
|
|
|
(140.7)
|
|
Additional paid-in
capital
|
712.1
|
|
|
488.8
|
|
Accumulated other
comprehensive loss
|
(14.4)
|
|
|
(13.1)
|
|
Retained (deficit)
earnings
|
(30.1)
|
|
|
127.4
|
|
Total SunCoke Energy,
Inc. stockholders' equity
|
491.6
|
|
|
463.1
|
|
Noncontrolling
interests
|
26.8
|
|
|
219.6
|
|
Total
equity
|
518.4
|
|
|
682.7
|
|
Total liabilities and
equity
|
$
|
1,753.8
|
|
|
$
|
2,045.3
|
|
SunCoke Energy,
Inc.
|
Consolidated
Statements of Cash Flows
|
|
|
Years Ended
December 31,
|
|
2019
|
|
2018
|
|
(Unaudited)
|
|
(Audited)
|
|
(Dollars in
millions)
|
Cash Flows from
Operating Activities:
|
|
|
|
Net (loss)
income
|
$
|
(148.4)
|
|
|
$
|
47.0
|
|
Adjustments to
reconcile net (loss) income to net cash provided by operating
activities:
|
|
|
|
Long-lived asset and
goodwill impairment
|
247.4
|
|
|
—
|
|
Depreciation and
amortization expense
|
143.8
|
|
|
141.6
|
|
Deferred income tax
benefit
|
(63.1)
|
|
|
(3.4)
|
|
Payments in excess of
expense for postretirement plan benefits
|
(1.9)
|
|
|
(2.4)
|
|
Share-based
compensation expense
|
4.5
|
|
|
3.1
|
|
(Gain) loss on
extinguishment of debt, net
|
(1.5)
|
|
|
0.3
|
|
Loss from equity
method investment
|
—
|
|
|
5.4
|
|
Changes in working
capital pertaining to operating activities:
|
|
|
|
Receivables,
net
|
15.9
|
|
|
(6.9)
|
|
Inventories
|
(36.6)
|
|
|
0.6
|
|
Accounts
payable
|
23.5
|
|
|
(0.7)
|
|
Accrued
liabilities
|
0.3
|
|
|
(7.3)
|
|
Deferred
revenue
|
(2.7)
|
|
|
1.3
|
|
Interest
payable
|
(1.4)
|
|
|
(1.8)
|
|
Income
taxes
|
(1.5)
|
|
|
4.5
|
|
Other
|
3.6
|
|
|
4.5
|
|
Net cash provided by
operating activities
|
181.9
|
|
|
185.8
|
|
Cash Flows from
Investing Activities:
|
|
|
|
Capital
expenditures
|
(110.1)
|
|
|
(100.3)
|
|
Sale of equity method
investment
|
—
|
|
|
4.0
|
|
Other investing
activities
|
0.3
|
|
|
0.5
|
|
Net cash used in
investing activities
|
(109.8)
|
|
|
(95.8)
|
|
Cash Flows from
Financing Activities:
|
|
|
|
Proceeds from
issuance of long-term debt
|
—
|
|
|
45.0
|
|
Repayment of
long-term debt
|
(90.5)
|
|
|
(45.7)
|
|
Debt issuance
costs
|
(2.1)
|
|
|
(0.5)
|
|
Proceeds from
revolving facility
|
408.6
|
|
|
179.5
|
|
Repayment of
revolving facility
|
(370.3)
|
|
|
(204.5)
|
|
Repayment of
financing obligation
|
(2.9)
|
|
|
(2.6)
|
|
Cash distributions to
noncontrolling interests
|
(14.2)
|
|
|
(31.9)
|
|
Acquisition of
additional interest in the Partnership
|
—
|
|
|
(4.2)
|
|
Shares
repurchased
|
(36.3)
|
|
|
—
|
|
Dividends
paid
|
(5.1)
|
|
|
—
|
|
Other financing
activities
|
(7.9)
|
|
|
0.4
|
|
Net cash used in
financing activities
|
(120.7)
|
|
|
(64.5)
|
|
Net (decrease)
increase in cash and cash equivalents
|
(48.6)
|
|
|
25.5
|
|
Cash and cash
equivalents at beginning of year
|
145.7
|
|
|
120.2
|
|
Cash and cash
equivalents at end of year
|
$
|
97.1
|
|
|
$
|
145.7
|
|
Supplemental
Disclosure of Cash Flow Information
|
|
|
|
Interest paid, net of
capitalized interest of $2.3 million and $3.2 million,
respectively
|
$
|
58.2
|
|
|
$
|
59.6
|
|
Income taxes paid,
net of refunds of $0.3 million and $4.3 million,
respectively
|
$
|
9.5
|
|
|
$
|
3.7
|
|
SunCoke Energy,
Inc.
|
Segment Operating
Data
|
|
|
|
Three Months
Ended
December 31,
|
|
Years Ended
December 31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Unaudited)
|
|
(Audited)
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
Sales and other
operating revenues:
|
|
|
|
|
|
|
|
|
Domestic
Coke
|
|
$
|
373.3
|
|
|
$
|
334.7
|
|
|
$
|
1,489.1
|
|
|
$
|
1,308.3
|
|
Brazil
Coke
|
|
9.1
|
|
|
10.4
|
|
|
38.4
|
|
|
40.4
|
|
Logistics
|
|
14.8
|
|
|
23.8
|
|
|
72.8
|
|
|
102.2
|
|
Logistics
intersegment sales
|
|
7.0
|
|
|
7.9
|
|
|
26.3
|
|
|
24.5
|
|
Elimination of
intersegment sales
|
|
(7.0)
|
|
|
(7.9)
|
|
|
(26.3)
|
|
|
(24.5)
|
|
Total sales and other
operating revenue
|
|
$
|
397.2
|
|
|
$
|
368.9
|
|
|
$
|
1,600.3
|
|
|
$
|
1,450.9
|
|
Adjusted
EBITDA(1)
|
|
|
|
|
|
|
|
|
Domestic
Coke
|
|
$
|
52.1
|
|
|
$
|
51.6
|
|
|
$
|
226.7
|
|
|
$
|
207.9
|
|
Brazil
Coke
|
|
3.3
|
|
|
4.4
|
|
|
16.0
|
|
|
18.4
|
|
Logistics
|
|
8.5
|
|
|
18.3
|
|
|
42.6
|
|
|
72.6
|
|
Corporate and
Other(2)
|
|
(13.1)
|
|
|
(8.4)
|
|
|
(37.4)
|
|
|
(35.7)
|
|
Total Adjusted
EBITDA
|
|
$
|
50.8
|
|
|
$
|
65.9
|
|
|
$
|
247.9
|
|
|
$
|
263.2
|
|
Coke Operating
Data:
|
|
|
|
|
|
|
|
|
Domestic Coke
capacity utilization (%)
|
|
100
|
%
|
|
98
|
%
|
|
98
|
%
|
|
95
|
%
|
Domestic Coke
production volumes (thousands of tons)
|
|
1,073
|
|
|
1,044
|
|
|
4,168
|
|
|
4,016
|
|
Domestic Coke sales
volumes (thousands of tons)
|
|
1,080
|
|
|
1,040
|
|
|
4,171
|
|
|
4,033
|
|
Domestic Coke
Adjusted EBITDA per ton(3)
|
|
$
|
48.24
|
|
|
$
|
49.62
|
|
|
$
|
54.35
|
|
|
$
|
51.55
|
|
Brazilian Coke
production—operated facility (thousands of tons)
|
|
371
|
|
|
442
|
|
|
1,641
|
|
|
1,768
|
|
Logistics
Operating Data:
|
|
|
|
|
|
|
|
|
Tons handled
(thousands of tons)(4)
|
|
4,971
|
|
|
6,861
|
|
|
21,053
|
|
|
26,605
|
|
|
|
(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
incurred Adjusted EBITDA losses of $5.4 million and $11.2 million
during the three and twelve months ended December 31, 2019,
respectively, as well as losses of $2.2 million and $9.8 million
during the three and twelve months ended December 31, 2018,
respectively.
|
(3)
|
Reflects Domestic
Coke Adjusted EBITDA divided by Domestic Coke sales
volumes.
|
(4)
|
Reflects inbound tons
handled during the period.
|
SunCoke Energy,
Inc.
|
Reconciliation of
Non-GAAP Information
|
Net Loss
Attributable to SunCoke Energy, Inc. to Adjusted Net Income Attributable to SunCoke
Energy, Inc.
|
|
|
|
Year
Ended December 31,
2019
|
|
|
(Dollars in
millions)
|
Net loss
attributable to SunCoke Energy, Inc.
|
|
$
|
(152.3)
|
|
Add:
|
|
|
Long-lived asset and
goodwill impairment
|
|
247.4
|
|
Contingent
consideration adjustments(1)
|
|
(3.9)
|
|
Related income tax
benefit(2)
|
|
(69.1)
|
|
Adjusted net
income attributable to SunCoke Energy, Inc.
|
|
$
|
22.1
|
|
Adjusted earnings
attributable to SunCoke Energy, Inc. per common share:
|
|
|
Basic
|
|
$
|
0.29
|
|
Diluted
|
|
$
|
0.29
|
|
Weighted average
number of common shares outstanding:
|
|
|
Basic
|
|
76.8
|
|
Diluted
|
|
76.8
|
|
|
|
(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. Customer events
during the third quarter of 2019 reduced contingent consideration
liability to zero.
|
(2)
|
Reflects the tax
impacts of long-lived asset and goodwill impairment and the
contingent consideration adjustment.
|
SunCoke Energy,
Inc.
|
Reconciliation of
Non-GAAP Information
|
Adjusted EBITDA to
Net (Loss) Income
|
|
|
|
Three Months
Ended
December 31,
|
|
Years Ended
December 31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Audited)
|
|
|
(Dollars in
millions)
|
Net (loss)
income
|
|
$
|
(0.8)
|
|
|
$
|
5.5
|
|
|
$
|
(148.4)
|
|
|
$
|
47.0
|
|
Add:
|
|
|
|
|
|
|
|
|
Long-lived asset and
goodwill impairment
|
|
—
|
|
|
—
|
|
|
247.4
|
|
|
—
|
|
Depreciation and
amortization expense
|
|
34.0
|
|
|
41.3
|
|
|
143.8
|
|
|
141.6
|
|
Interest expense,
net
|
|
14.7
|
|
|
14.5
|
|
|
60.3
|
|
|
61.4
|
|
(Gain) loss on
extinguishment of debt, net
|
|
—
|
|
|
—
|
|
|
(1.5)
|
|
|
0.3
|
|
Income tax expense
(benefit)
|
|
2.6
|
|
|
2.8
|
|
|
(54.7)
|
|
|
4.6
|
|
Contingent
consideration adjustments(1)
|
|
—
|
|
|
1.4
|
|
|
(4.2)
|
|
|
2.5
|
|
Loss from equity
method investment(2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.4
|
|
Transaction
costs(3)
|
|
0.3
|
|
|
0.4
|
|
|
5.2
|
|
|
0.4
|
|
Adjusted
EBITDA
|
|
$
|
50.8
|
|
|
$
|
65.9
|
|
|
$
|
247.9
|
|
|
$
|
263.2
|
|
Subtract: Adjusted
EBITDA attributable to noncontrolling
interest(4)
|
|
1.6
|
|
|
20.4
|
|
|
40.7
|
|
|
82.0
|
|
Adjusted EBITDA
attributable to SunCoke Energy, Inc.
|
|
$
|
49.2
|
|
|
$
|
45.5
|
|
|
$
|
207.2
|
|
|
$
|
181.2
|
|
|
|
(1)
|
In connection with
the CMT acquisition, the Partnership entered into a contingent
consideration arrangement that requires the Partnership to make
future payments to the seller based on future volume over a
specified threshold, price and contract renewals. Adjustments
to the fair value of the contingent consideration were primarily
the result of modifications to the volume forecast. Customer events
during the third quarter of 2019 reduced contingent consideration
liability to zero.
|
(2)
|
In June 2018, the
Company recorded a loss in connection with the sale of our interest
in VISA SunCoke Limited.
|
(3)
|
Costs expensed by the
Partnership associated with the Simplification
Transaction.
|
(4)
|
Reflects
noncontrolling interests in Indiana Harbor and the portion of the
Partnership owned by public unitholder prior to the closing of the
Simplification Transaction.
|
SunCoke Energy,
Inc
|
Reconciliation of
Non-GAAP Information
|
Estimated 2020
Consolidated Adjusted EBITDA to Estimated Net Income
|
|
|
|
2020
|
|
|
Low
|
|
High
|
Net
income
|
|
$
|
33
|
|
|
$
|
43
|
|
Add:
|
|
|
|
|
Depreciation and
amortization expense
|
|
132
|
|
|
128
|
|
Interest expense,
net
|
|
58
|
|
|
58
|
|
Income tax
expense
|
|
12
|
|
|
16
|
|
Adjusted
EBITDA
|
|
$
|
235
|
|
|
$
|
245
|
|
Subtract: Adjusted
EBITDA attributable to noncontrolling
interest(1)
|
|
7
|
|
|
7
|
|
Adjusted EBITDA
attributable to SunCoke Energy, Inc.
|
|
$
|
228
|
|
|
$
|
238
|
|
|
(1)
|
Reflects
non-controlling interest in Indiana Harbor.
|
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SOURCE SunCoke Energy, Inc.