LISLE, Ill., April 24, 2019 /PRNewswire/ -- SunCoke
Energy, Inc. (NYSE: SXC) today reported results for the first
quarter 2019, reflecting the strong performance at our Domestic
Coke segment, including higher sales volumes at our Indiana Harbor
facility driven by our oven rebuild initiative, which continues to
deliver sustained operating results.
"We are pleased with the operational performance that our team
delivered in the quarter despite the adverse weather conditions,
which impacted operations across our business. We continue to
execute against our 2019 objectives, and our record setting first
quarter performance has positioned us well to achieve our full-year
Adjusted EBITDA guidance," said Mike
Rippey, President and Chief Executive Officer of SunCoke
Energy, Inc.
The Company has filed a Form S-4 Registration Statement in
connection with the announced acquisition of all outstanding common
units of SunCoke Energy Partners, L.P. (NYSE: SXCP) not already
owned by SXC in a stock-for-unit exchange transaction (the
"Simplification Transaction"). Rippey continued, "Our team has made
significant progress working to close the Simplification
Transaction and we continue to be encouraged by the benefits it
will allow us to achieve, including a simplified corporate
structure, increased liquidity and improved financial flexibility.
Together, these benefits will best-position the Company to execute
against our strategic objectives and create immediate and long-term
value for SunCoke stakeholders."
FIRST QUARTER CONSOLIDATED RESULTS
|
Three Months Ended
March 31,
|
(Dollars in
millions)
|
2019
|
|
2018
|
|
Increase
|
Revenues
|
$
|
391.3
|
|
|
$
|
350.5
|
|
|
$
|
40.8
|
|
Adjusted
EBITDA(1)
|
$
|
67.3
|
|
|
$
|
64.0
|
|
|
$
|
3.3
|
|
Net income
attributable to SXC
|
$
|
9.8
|
|
|
$
|
8.7
|
|
|
$
|
1.1
|
|
|
|
(1)
|
See definition of
Adjusted EBITDA and reconciliation elsewhere in this
release.
|
Revenues during the first quarter 2019 increased $40.8 million compared to the prior year period,
primarily reflecting the pass-through of higher coal prices as well
as higher sales volumes in our Domestic Coke segment.
Adjusted EBITDA during the first quarter 2019 increased
$3.3 million to $67.3 million, driven by improved performance in
our Domestic Coke segment.
Net income attributable to SXC was $9.8
million, or $0.15 per share,
for the first quarter 2019. The results reflect improved operating
results discussed above partially offset by higher depreciation
expense, primarily due to the revisions in the estimated useful
lives of certain assets in our Domestic Coke segment made during
the third quarter 2018.
FIRST 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
March 31,
|
(Dollars in
millions, except per ton amounts)
|
2019
|
|
2018
|
|
Increase
|
Revenues
|
$
|
359.3
|
|
|
$
|
318.1
|
|
|
$
|
41.2
|
|
Adjusted
EBITDA(1)
|
$
|
58.5
|
|
|
$
|
54.3
|
|
|
$
|
4.2
|
|
Sales volumes
(thousands of tons)
|
1,004
|
|
|
974
|
|
|
30
|
|
Adjusted EBITDA per
ton(2)
|
$
|
58.27
|
|
|
$
|
55.75
|
|
|
$
|
2.52
|
|
|
|
(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 $41.2 million
primarily reflecting the pass-through of higher coal prices and
increased sales volumes.
Adjusted EBITDA increased $4.2
million and benefited $2.6
million from higher volumes primarily due to the performance
of the rebuilt ovens at our Indiana Harbor facility. Additionally,
the timing of planned outage costs resulted in a benefit of
$1.0 million as compared to the prior
year period. The remaining improvement was due to an increase in
coal cost recovery and yields driven by higher coal prices during
the current period. This benefit was partially offset by the impact
from heavy rainfalls, which elevated coal moisture levels and
negatively impacted coal-to-coke yields and Adjusted EBITDA.
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
March 31,
|
(Dollars in
millions)
|
2019
|
|
2018
|
|
Increase
(Decrease)
|
Revenues
|
$
|
22.3
|
|
|
$
|
22.3
|
|
|
$
|
—
|
|
Intersegment
sales
|
$
|
6.5
|
|
|
$
|
5.4
|
|
|
$
|
1.1
|
|
Adjusted
EBITDA(1)
|
$
|
12.7
|
|
|
$
|
13.6
|
|
|
$
|
(0.9)
|
|
Tons handled
(thousands of tons)(2)
|
5,784
|
|
|
5,821
|
|
|
(37)
|
|
CMT take-or-pay
shortfall tons (thousands of tons)(3)
|
669
|
|
|
172
|
|
|
497
|
|
|
|
(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 were reasonably consistent with the prior year period.
Adjusted EBITDA decreased by $0.9
million, driven primarily by incremental high water costs at
CMT during the current period.
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 $9.7
million and $4.5 million,
respectively, during the first quarter 2019, which was comparable
to Revenues and Adjusted EBITDA of $10.1
million and $4.7 million,
respectively, during the first quarter 2018.
Corporate and Other
Corporate and other expenses, which include costs related to our
legacy coal mining business, were $8.4
million during the first quarter 2019, which was comparable
with the prior year period of $8.6
million.
2019 OUTLOOK
Our 2019 guidance, which does not include the benefit from the
Simplification Transaction, is as follows:
- Domestic coke production is expected to be approximately 4.1
million tons
- Consolidated Adjusted EBITDA is expected to be between
$265 to $275
million
- Adjusted EBITDA attributable to SXC is expected to be between
$182 to $188
million, reflecting the impact of public ownership in
SXCP
- 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
$180 million and $195 million
- Cash taxes are projected to be between $4 to $8
million
RELATED COMMUNICATIONS
We will host our quarterly earnings call at 8:30 a.m.
Eastern Time (7:30 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
4246288.
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 March 31, 2019, 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 on extinguishment of debt, changes to our
contingent consideration liability related to our acquisition of
CMT 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 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.
IMPORTANT NOTICE TO INVESTORS
This communication includes important information about the
proposed and pending acquisition by SXC of all publicly held common
units of SXCP. SXC has filed a registration statement on Form S-4
with the Securities and Exchange Commission ("SEC") containing a
draft joint prospectus/consent statement/proxy statement of SXC and
SXCP. Once the SEC has completed its review of this filing
and declared it effective, SXC and SXCP security holders are urged
to read the definitive joint prospectus/consent statement/proxy
statement and other documents filed with the SEC regarding the
proposed transaction carefully and in their entirety when they
become available because they will contain important
information. Investors may obtain a free copy of the draft
joint prospectus/consent statement/proxy statement at any time and
will be able to obtain a free copy of the definitive joint
prospectus/consent statement/proxy statement when it becomes
available, as well as other filings containing information about
the proposed transaction, without charge, at the SEC's internet
site (http://www.sec.gov). Copies of the definitive joint
prospectus/consent statement/proxy statement when it becomes
available, as well as copies of the filings with the SEC that will
be incorporated by reference in such definitive joint
prospectus/consent statement/proxy statement, can be obtained,
without charge by directing a request either to SXC, 1011
Warrenville Road, 6th Floor, Lisle,
IL 60532 USA, Attention: Investor Relations or to SXCP, 1011
Warrenville Road, 6th Floor, Lisle,
IL 60532 USA, Attention: Investor Relations.
The respective directors and executive officers of SXC and SXCP
may be deemed to be "participants" (as defined in Schedule 14A
under the Securities Exchange Act of 1934 as amended) in respect of
the proposed transaction. Information about SXC's directors and
executive officers is available in SXC's annual report on Form 10-K
for the fiscal year ended December 31,
2018, filed with the SEC on February
15, 2019. Information about SXCP's directors and executive
officers is available in SXCP's annual report on Form 10-K for the
fiscal year ended December 31, 2018
filed with the SEC on February 15,
2019. Other information regarding the participants in the
solicitation and a description of their direct and indirect
interests, by security holdings or otherwise, will be contained in
the joint definitive prospectus/consent statement/proxy statement,
when available, and other relevant materials filed with the
SEC.
This communication shall not constitute an offer to sell or the
solicitation of an offer to buy any securities or a solicitation of
any vote or approval, nor shall there be any sale of securities in
any jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. No offering of securities
shall be made except by means of a prospectus meeting the
requirements of Section 10 of the U.S. Securities Act of 1933, as
amended.
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
March 31,
|
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
(Dollars and shares in millions,
except per share amounts)
|
Revenues
|
|
|
|
|
Sales and other
operating revenue
|
|
$
|
391.3
|
|
|
$
|
350.5
|
|
Costs and
operating expenses
|
|
|
|
|
Cost of products sold
and operating expenses
|
|
307.4
|
|
|
270.6
|
|
Selling, general and
administrative expenses
|
|
16.7
|
|
|
15.9
|
|
Depreciation and
amortization expense
|
|
37.2
|
|
|
32.9
|
|
Total costs and
operating expenses
|
|
361.3
|
|
|
319.4
|
|
Operating
income
|
|
30.0
|
|
|
31.1
|
|
Interest expense,
net
|
|
14.8
|
|
|
15.8
|
|
Loss on
extinguishment of debt
|
|
—
|
|
|
0.3
|
|
Income before income
tax expense
|
|
15.2
|
|
|
15.0
|
|
Income tax
expense
|
|
3.0
|
|
|
2.0
|
|
Net income
|
|
12.2
|
|
|
13.0
|
|
Less: Net income
attributable to noncontrolling interests
|
|
2.4
|
|
|
4.3
|
|
Net income
attributable to SunCoke Energy, Inc.
|
|
$
|
9.8
|
|
|
$
|
8.7
|
|
Earnings attributable
to SunCoke Energy, Inc. per common share:
|
|
|
|
|
Basic
|
|
$
|
0.15
|
|
|
$
|
0.13
|
|
Diluted
|
|
$
|
0.15
|
|
|
$
|
0.13
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
Basic
|
|
64.9
|
|
|
64.6
|
|
Diluted
|
|
65.3
|
|
|
65.4
|
|
SunCoke Energy,
Inc.
|
Consolidated
Balance Sheets
|
|
|
|
March 31,
2019
|
|
December 31,
2018
|
|
|
(Unaudited)
|
|
|
|
|
(Dollars in
millions, except
par value amounts)
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
143.9
|
|
|
$
|
145.7
|
|
Receivables
|
|
86.3
|
|
|
75.4
|
|
Inventories
|
|
150.7
|
|
|
110.4
|
|
Income tax
receivable
|
|
—
|
|
|
0.7
|
|
Other current
assets
|
|
6.2
|
|
|
2.8
|
|
Total current
assets
|
|
387.1
|
|
|
335.0
|
|
Properties, plants
and equipment (net of accumulated depreciation of $866.0 million
and $855.8 million at March 31, 2019 and December 31, 2018,
respectively)
|
|
1,459.0
|
|
|
1,471.1
|
|
Goodwill
|
|
76.9
|
|
|
76.9
|
|
Other intangible
assets, net
|
|
154.1
|
|
|
156.8
|
|
Deferred charges and
other assets
|
|
20.2
|
|
|
5.5
|
|
Total
assets
|
|
$
|
2,097.3
|
|
|
$
|
2,045.3
|
|
Liabilities and
Equity
|
|
|
|
|
Accounts
payable
|
|
$
|
145.7
|
|
|
$
|
115.0
|
|
Accrued
liabilities
|
|
42.3
|
|
|
45.6
|
|
Deferred
revenue
|
|
7.5
|
|
|
3.0
|
|
Current portion of
long-term debt and financing obligation
|
|
4.5
|
|
|
3.9
|
|
Interest
payable
|
|
16.8
|
|
|
3.6
|
|
Income tax
payable
|
|
1.2
|
|
|
—
|
|
Total current
liabilities
|
|
218.0
|
|
|
171.1
|
|
Long-term debt and
financing obligation
|
|
828.8
|
|
|
834.5
|
|
Accrual for black
lung benefits
|
|
45.6
|
|
|
44.9
|
|
Retirement benefit
liabilities
|
|
24.6
|
|
|
25.2
|
|
Deferred income
taxes
|
|
254.3
|
|
|
254.7
|
|
Asset retirement
obligations
|
|
13.2
|
|
|
14.6
|
|
Other deferred
credits and liabilities
|
|
25.8
|
|
|
17.6
|
|
Total
liabilities
|
|
1,410.3
|
|
|
1,362.6
|
|
Equity
|
|
|
|
|
Preferred stock,
$0.01 par value. Authorized 50,000,000 shares; no issued shares at
both March 31, 2019 and December 31, 2018
|
|
—
|
|
|
—
|
|
Common stock, $0.01
par value. Authorized 300,000,000 shares; issued 72,578,808 and
72,233,750 shares at March 31, 2019 and December 31, 2018,
respectively
|
|
0.7
|
|
|
0.7
|
|
Treasury stock,
7,477,657 shares at both March 31, 2019 and December 31,
2018
|
|
(140.7)
|
|
|
(140.7)
|
|
Additional paid-in
capital
|
|
488.0
|
|
|
488.8
|
|
Accumulated other
comprehensive loss
|
|
(13.1)
|
|
|
(13.1)
|
|
Retained
earnings
|
|
137.2
|
|
|
127.4
|
|
Total SunCoke Energy,
Inc. stockholders' equity
|
|
472.1
|
|
|
463.1
|
|
Noncontrolling
interests
|
|
214.9
|
|
|
219.6
|
|
Total
equity
|
|
687.0
|
|
|
682.7
|
|
Total liabilities and
equity
|
|
$
|
2,097.3
|
|
|
$
|
2,045.3
|
|
SunCoke Energy,
Inc.
|
Consolidated
Statements of Cash Flows
|
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
Cash Flows from
Operating Activities:
|
|
|
|
|
Net income
|
|
$
|
12.2
|
|
|
$
|
13.0
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization expense
|
|
37.2
|
|
|
32.9
|
|
Deferred income tax
(benefit) expense
|
|
(0.4)
|
|
|
0.2
|
|
Payments in excess of
expense for postretirement plan benefits
|
|
(0.6)
|
|
|
(0.6)
|
|
Share-based
compensation expense
|
|
0.9
|
|
|
0.8
|
|
Loss on
extinguishment of debt
|
|
—
|
|
|
0.3
|
|
Changes in working
capital pertaining to operating activities:
|
|
|
|
|
Receivables
|
|
(10.9)
|
|
|
(6.8)
|
|
Inventories
|
|
(40.3)
|
|
|
0.9
|
|
Accounts
payable
|
|
29.9
|
|
|
14.0
|
|
Accrued
liabilities
|
|
(4.4)
|
|
|
(8.7)
|
|
Deferred
revenue
|
|
4.5
|
|
|
1.9
|
|
Interest
payable
|
|
13.2
|
|
|
11.7
|
|
Income
taxes
|
|
1.9
|
|
|
(0.6)
|
|
Other
|
|
(7.9)
|
|
|
(1.7)
|
|
Net cash provided by
operating activities
|
|
35.3
|
|
|
57.3
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
Capital
expenditures
|
|
(20.9)
|
|
|
(15.4)
|
|
Net cash used in
investing activities
|
|
(20.9)
|
|
|
(15.4)
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
Proceeds from
issuance of long-term debt
|
|
—
|
|
|
45.0
|
|
Repayment of
long-term debt
|
|
(0.3)
|
|
|
(44.9)
|
|
Debt issuance
costs
|
|
—
|
|
|
(0.5)
|
|
Proceeds from
revolving credit facility
|
|
60.7
|
|
|
53.5
|
|
Repayment of
revolving credit facility
|
|
(65.7)
|
|
|
(53.5)
|
|
Repayment of
financing obligation
|
|
(0.7)
|
|
|
(0.6)
|
|
Acquisition of
additional interest in the Partnership
|
|
—
|
|
|
(3.4)
|
|
Cash distribution to
noncontrolling interests
|
|
(7.1)
|
|
|
(10.6)
|
|
Other financing
activities
|
|
(3.1)
|
|
|
(0.1)
|
|
Net cash used in
financing activities
|
|
(16.2)
|
|
|
(15.1)
|
|
Net (decrease)
increase in cash and cash equivalents
|
|
(1.8)
|
|
|
26.8
|
|
Cash and cash
equivalents at beginning of period
|
|
145.7
|
|
|
120.2
|
|
Cash and cash
equivalents at end of period
|
|
$
|
143.9
|
|
|
$
|
147.0
|
|
Supplemental
Disclosure of Cash Flow Information
|
|
|
|
|
Interest paid, net of
capitalized interest of $1.2 million and $0.5 million,
respectively
|
|
$
|
0.9
|
|
|
$
|
3.0
|
|
Income taxes
paid
|
|
$
|
1.0
|
|
|
$
|
2.3
|
|
SunCoke Energy,
Inc.
|
Segment Financial
and Operating Data
|
|
The following tables
set forth financial and operating data for the three months ended
March 31, 2019 and 2018:
|
|
|
|
Three Months Ended
March 31,
|
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
(Dollars in
millions, except per ton
amounts)
|
Sales and other
operating revenues:
|
|
|
|
|
Domestic
Coke
|
|
$
|
359.3
|
|
|
$
|
318.1
|
|
Brazil
Coke
|
|
9.7
|
|
|
10.1
|
|
Logistics
|
|
22.3
|
|
|
22.3
|
|
Logistics
intersegment sales
|
|
6.5
|
|
|
5.4
|
|
Elimination of
intersegment sales
|
|
(6.5)
|
|
|
(5.4)
|
|
Total sales and other
operating revenues
|
|
$
|
391.3
|
|
|
$
|
350.5
|
|
Adjusted
EBITDA(1):
|
|
|
|
|
Domestic
Coke
|
|
$
|
58.5
|
|
|
$
|
54.3
|
|
Brazil
Coke
|
|
4.5
|
|
|
4.7
|
|
Logistics
|
|
12.7
|
|
|
13.6
|
|
Corporate and
Other(2)
|
|
(8.4)
|
|
|
(8.6)
|
|
Total Adjusted
EBITDA
|
|
$
|
67.3
|
|
|
$
|
64.0
|
|
Coke Operating
Data:
|
|
|
|
|
Domestic Coke
capacity utilization
|
|
96
|
%
|
|
92
|
%
|
Domestic Coke
production volumes (thousands of tons)
|
|
1,006
|
|
|
962
|
|
Domestic Coke sales
volumes (thousands of tons)
|
|
1,004
|
|
|
974
|
|
Domestic Coke
Adjusted EBITDA per ton(3)
|
|
$
|
58.27
|
|
|
$
|
55.75
|
|
Brazilian Coke
production—operated facility (thousands of tons)
|
|
419
|
|
|
441
|
|
Logistics
Operating Data:
|
|
|
|
|
Tons handled
(thousands of tons)(4)
|
|
5,784
|
|
|
5,821
|
|
CMT take-or-pay
shortfall tons (thousands of tons)(5)
|
|
669
|
|
|
172
|
|
|
|
(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 $1.8 million and $2.3 million
during the three months ended March 31, 2019, and 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.
|
Reconciliations of
Non-GAAP Information
|
Net Cash Provided
by Operating Activities
|
to Net Income and
Adjusted EBITDA
|
|
|
|
Three Months Ended
March 31,
|
|
|
2019
|
|
2018
|
|
|
(Dollars in
millions)
|
Net cash provided
by operating activities
|
|
$
|
35.3
|
|
|
$
|
57.3
|
|
Subtract:
|
|
|
|
|
Depreciation and
amortization expense
|
|
37.2
|
|
|
32.9
|
|
Deferred income tax
(benefit) expense
|
|
(0.4)
|
|
|
0.2
|
|
Changes in working
capital and other
|
|
(13.7)
|
|
|
11.2
|
|
Net
income
|
|
$
|
12.2
|
|
|
$
|
13.0
|
|
Add:
|
|
|
|
|
Depreciation and
amortization expense
|
|
$
|
37.2
|
|
|
$
|
32.9
|
|
Interest expense,
net
|
|
14.8
|
|
|
15.8
|
|
Loss on
extinguishment of debt
|
|
—
|
|
|
0.3
|
|
Income tax
expense
|
|
3.0
|
|
|
2.0
|
|
Contingent
consideration adjustments(1)
|
|
(0.4)
|
|
|
—
|
|
Simplification
Transaction costs
|
|
0.5
|
|
|
—
|
|
Adjusted
EBITDA
|
|
67.3
|
|
|
64.0
|
|
Subtract: Adjusted
EBITDA attributable to noncontrolling
interest(2)
|
|
18.9
|
|
|
19.0
|
|
Adjusted EBITDA
attributable to SunCoke Energy, Inc.
|
|
$
|
48.4
|
|
|
$
|
45.0
|
|
|
|
(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. Contingent
consideration adjustments in 2019 were primarily the result of
modifications to the volume forecast.
|
(2)
|
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 2019 Net
Cash Provided by Operating Activities to Estimated Net
Income
|
and
Estimated Consolidated Adjusted EBITDA
|
|
|
|
2019
|
|
|
Low
|
|
High
|
Net cash provided
by operating activities
|
|
$
|
180
|
|
|
$
|
195
|
|
Subtract:
|
|
|
|
|
Depreciation and
amortization expense
|
|
150
|
|
|
145
|
|
Changes in working
capital and other
|
|
(14)
|
|
|
(1)
|
|
Net
income
|
|
$
|
44
|
|
|
$
|
51
|
|
Add:
|
|
|
|
|
Depreciation and
amortization expense
|
|
150
|
|
|
145
|
|
Interest expense,
net
|
|
65
|
|
|
65
|
|
Income tax
expense
|
|
6
|
|
|
14
|
|
Adjusted
EBITDA
|
|
$
|
265
|
|
|
$
|
275
|
|
Subtract:
|
|
|
|
|
Adjusted EBITDA
attributable to noncontrolling interests(1)
|
|
83
|
|
|
87
|
|
Adjusted EBITDA
attributable to SunCoke Energy, Inc.
|
|
$
|
182
|
|
|
$
|
188
|
|
|
|
(1)
|
Reflects
non-controlling interest in Indiana Harbor and the portion of the
Partnership owned by public unitholders.
|
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SOURCE SunCoke Energy, Inc.