Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — Q1 2016 Earnings Presentation
22 slides from Suncoke Energy's earnings presentation, Apr 27, 2016
Slide 1: SunCoke Energy, Inc. Q1 2016 Earnings Conference Call
SunCoke Energy, Inc. Q1 2016 Earnings Conference Call April 27, 2016
Slide 2: Forward-Looking Statements
Forward-Looking Statements TM This slide presentation should be reviewed in conjunction with the First Quarter 2016 earnings release of SunCoke Energy, Inc. (SXC) and conference call held on April 27, 2016 at 11:00 a.m. ET. Some of the information included in this presentation constitutes “forward-l
Slide 3: Q1 Accomplishments
Q1 Accomplishments TM Achieved solid safety, environmental and operating performance across coke and coal logistics fleet Realized cost improvement at Indiana Harbor; continuing efforts to stabilize plant operations Supported ~$53M of face value bond repurchases at SXCP during Q1 Executed sa
Slide 4: Navigating Current Market Conditions
Navigating Current Market Conditions TM Remaining flexible and responsive to challenging industry landscape Adjusting 2016 production to accommodate customer requirements • Highlights operational agility and strength of customer relationships and contracts • Haverhill 2: reducing full-year productio
Slide 5: Q1 2016 Overview
Q1 2016 Overview TM Q1 2016 Earnings Overview (1) Consolidated Adj. EBITDA up $5.1M ($ in millions) ($/share) Consolidated Earnings per Share vs. Q1 ‘15 primarily due to Adj. EBITDA(1) (diluted) • Benefit of Convent acquisition • Improved performance at IHO, driven $53.0 ($0.06) ($0.06) largely by d
Slide 6: Adjusted EBITDA – Q1 '15 to Q1 '16
(1) Adjusted EBITDA – Q1 ‘15 to Q1 ‘16 TM First quarter results benefited from Convent contribution and improved cost management at Indiana Harbor ($ in millions) ($1.0) $53.0 $47.9 $6.0 ($6.2) $12.5 ($6.2) • ($3.7M) – Coal price erosion • $2.7M – Shift of coal transportation costs • ($4.0M) – OPEB
Slide 7: Domestic Coke Business Summary
Domestic Coke Business Summary TM Solid quarter performance despite items impacting Q1 comparability Domestic Cokemaking Performance Coke production & Adjusted (Production, Kt) EBITDA/ton impacted by $56/ton $54/ton $54/ton $51/ton • Shift of coal transportation $45/ton cost to Jewell Coke from Coal
Slide 8: Liquidity Position
Liquidity Position TM Maintain solid combined liquidity of ~$225M SXCP revolver Attributable availability: $67M to SXCP $4.9 ($12.4) SXC revolver $10.7 availability: $56M $123.4 $28.2 ($32.9) ($7.8) ($12.3) $101.8 $48.6 • ($9.6M) – Ongoing • ($2.8M) – Environmental & expansion $33.7 • $12.6M – Net i
Slide 9: IHO Operating Performance
IHO Operating Performance TM Encouraged with progress made at Indiana Harbor during Q1 2016; Continued focus on stabilizing operations plant-wide Revised Indiana Harbor Approach Q1 2016 Progress 1 Emphasis on stabilizing daily production, 1 Progress made, although disruptions not striving for 1.22Mt
Slide 10: Charge Weights: Oven Internals – Rebuild Pilot Program
Oven Internals – Rebuild Pilot Program TM Improvement in charge weights and coking times driving greater stability in rebuilt ovens Before Rebuilds Executed Current Status (as of March 31,2016) 44 44 Charge Weights 42 Better Worse 40 • Improved charge 38 weights across 36 rebuilt ovens 34 3434 Rebui
Slide 11: 2016 Priorities
2016 Priorities TM Manage Through Challenging Market Conditions • Remain flexible & responsive to industry backdrop while leveraging unique value proposition Stabilize Indiana Harbor Cokemaking Operations • Improve profitability by executing oven rebuilds and reducing O&M costs Deliver Operations Ex
Slide 12: Questions
QUESTIONS SXC Q1 2016 Earnings Call 11
Slide 13: Investor Relations
Investor Relations 630-824-1907 www.suncoke.com
Slide 14: Appendix
APPENDIX SXC Q1 2016 Earnings Call 13
Slide 15: Definitions
Definitions TM Adjusted EBITDA represents earnings before interest, (gain) loss on extinguishment of debt, taxes, depreciation and amortization (“EBITDA”), adjusted for impairments, coal rationalization costs, Coal Logistics deferred revenue, changes to our contingent consideration liability related
Slide 16: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA TM ($ in millions) Q1 '16 FY '15 Q4 '15 Q3 '15 Q2 '15 Q1 '15 FY '14 Net cash provided by Operating activities $29.4 $141.1 $58.1 $6.4 $65.5 $11.1 $112.3 Depreciation, depletion and amortization expense 28.2 109.1 33.3 25.6 26.4 23.8 106.3 (Gain) / loss on extinguish
Slide 17: Reconciliation of Segment Adjusted EBITDA and Adjusted EBITDA per Ton
Reconciliation of Segment Adjusted EBITDA and Adjusted EBITDA per ton TM Reconciliation of Segment Adjusted EBITDA and Adjusted EBITDA per Ton Corporate, Domestic India Legacy Costs ($ in millions, except per ton data) Coke Brazil Coke Coke (1) Coal Mining Coal Logistics and Other Consolidated Q1 20
Slide 18: Balance Sheet & Debt Metrics
Balance Sheet & Debt Metrics TM As of 03/31/2016 Balance SXC Attributable Attributable Consolidated to SXCP ($ in millions) to SXC Cash $ 112 $ 44 $ 68 Available Revolver Capacity 123 67 56 Total Liquidity 235 111 124 Total Debt (Long and Short-term) 951 846 105 Net Debt (Total Debt less Cash) 839 8
Slide 19: Debt Maturity Schedule
Debt Maturity Schedule TM Maintain sufficient liquidity position, with no near-term debt maturities ($ in millions; as of March 31, 2015) SXCP unsecured bonds: $500M SXC Maturities SXCP Maturities • SXCP secured revolver: $182M • SXCP secured term loan: $50M • SXC unsecured bonds: $45M $45 $500 SXCP
Slide 20: 2016 Outlook
2016 Outlook TM On-track to achieve FY 2016 Guidance; updated production and Adj. EBITDA/ton outlook to reflect Q1 developments 2015 2016 2016 Metric Results Original Guidance Update (1) Adjusted EBITDA (3) Consolidated $185.8M $210M – $235M $210M – $235M (1) Attrib. to SXC $104.6M $105M – $124M $10
Slide 21: 2016E Guidance Reconciliation
2016E Guidance Reconciliation TM 2016E 2016E ($ in millions) Low High Net cash provided by Operating activities $150 $170 Depreciation and amortization expense 106 106 (Gain) / loss on extinguishment of debt (20) (27) Asset impairment / loss on sale 14 14 Changes in working capital and other 6 7 Net
Slide 22: Capital Expenditures
Capital Expenditures TM 2015 CapEx ($ in millions) SXC SXCP Consolidated Ongoing(1) $30 $21 $51 Other 4 0 4 Environmental Project 0 21 21 Total CapEx (excl. pre-funded Ship loader) $34 $42 $76 Coal Logistics: Ship loader (pre-funded) $0 $5 $5 2016 Expected CapEx ($ in millions) SXC SXCP Consolidated