Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — Q1 2022 Earnings Presentation
18 slides from Suncoke Energy's earnings presentation, May 2, 2022
Slide 1: SunCoke Energy, Inc. Q1 2022 Earnings Conference Call
SunCoke Energy, Inc. Q1 2022 Earnings Conference Call
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 This slide presentation should be reviewed in conjunction with the First Quarter 2022 earnings release of SunCoke Energy, Inc. (SunCoke) and conference call held on May 2, 2022 at 11:30 a.m. ET. This presentation call contains “forward-looking statements” (as defined in
Slide 3: Q1 2022 Highlights
Q1 2022 Highlights 3 Strong start to the year across our coke and logistics operations Delivered Q1 ‘22 Adjusted EBITDA of $83.8M, representing best ever quarterly results Export and foundry coke initiatives continue to excel Extended coal handling contract at CMT through 2024; 4.0M tons ann
Slide 4: Q1 2022 Financial Performance
Q1 2022 Financial Performance 4 Q1 2022 Earnings Review Q1 ‘22 EPS of $0.35, up $0.15 from the prior year ($/share) ($ in millions) quarter Diluted EPS Adj. EBITDA(1) +0.15 $13.2M (1) Adjusted EBITDA of $83.8M, up $13.2M from the prior year quarter $0.35 • Coke operations up $12.2M, driven by higher
Slide 5: Domestic Coke Business Summary
Domestic Coke Business Summary 5 Coke business driven by higher margins on export sales including one time benefit of lower cost carry over coal from 2021 Domestic Coke Performance Delivered Adj. EBITDA of $76.0M in Q1 (Coke Production, Kt) ‘22 vs $63.5M in Q1 ‘21 $76.0M $63.5M $65.1M • Higher Adj.
Slide 6: Logistics Business Summary
Logistics Business Summary 6 Q1 ’22 CMT volumes lower than Q1 ’21 driven by coal supply and rail delivery issues; Domestic terminals experiencing increased demand and new customers Logistics Performance and Guidance Logistics segment contributed $12.6M (Tons Handled, Kt) to Q1 ‘22 Adj. EBITDA $11.6M
Slide 7: Q1 2022 Liquidity
Q1 2022 Liquidity 7 Maintained strong liquidity position of ~$300M; Continued objective to strengthen the balance sheet (Consolidated) Q1 ’22 Revolver Total Debt $641M Availability: $220.0M Gross Leverage(1) 2.22x Net Leverage(1) 1.94x ($ in millions) $14.2 ($12.9) ($5.0) $79.7 ($3.1) $22.7 $63.8 •
Slide 8: 2022 Key Initiatives
2022 Key Initiatives 8 Deliver Safety/Operational Excellence and Combat Inflationary Pressures • Continue to deliver strong safety and operational excellence • Continued focus on developing projects to minimize inflationary impacts Pursue New Customers for Logistics Business • Continue work on furth
Slide 9: Appendix
APPENDIX )
Slide 10: Definitions
Definitions 10 Adjusted EBITDA represents earnings before interest, loss (gain) on extinguishment of debt, taxes, depreciation and amortization (“EBITDA”), adjusted for impairments, loss on extinguishment of debt, restructuring costs, changes to our contingent consideration liability related to our
Slide 11: 2022 Guidance Summary
2022 Guidance Summary 11 Well positioned to modestly exceed Adjusted EBITDA guidance driven by higher margins on export coke sales and coal handling at CMT 2022 Metric Guidance (1) Adjusted EBITDA Consolidated $240M - $255M Domestic Coke EBITDA $229M - $235M Logistics EBITDA $34M - $40M Domestic Cok
Slide 12: Coke Facility Capacity and Contract Duration/Volume
Coke Facility Capacity and Contract Duration/Volume 12 Contract Contract Facility Capacity (1) Customer Expiry Volume Middletown 550 Kt (2) Cliffs Steel Dec. 2032 Capacity Haverhill II 550 Kt Cliffs Steel June 2025 Capacity Granite City 650 Kt US Steel Dec. 2024 Capacity Indiana Harbor 1,220 Kt Clif
Slide 13: Balance Sheet & Debt Metrics
Balance Sheet & Debt Metrics 13 As of 3/31/2022 As of 12/31/2021 Cash $ 80 $ 64 Available Revolver Capacity $ 220 $ 229 Total Liquidity $ 300 $ 293 Gross Debt (Long and Short-term) $ 641 $ 627 Net Debt (Total Debt less Cash) $ 561 $ 563 LTM Adj. EBITDA $ 289 $ 275 Gross Debt / LTM Adj. EBITDA 2.22x
Slide 14: 2022 Guidance Reconciliation
2022 Guidance Reconciliation 14 ($ in millions) Low High Net Income $50 $65 Depreciation and amortization expense 141 137 Interest expense, net 31 29 Income tax expense 18 24 Adjusted EBITDA (Consolidated) $240 $255 Adjusted EBITDA attributable to noncontrolling interest (1) (9) (9) Adjusted EBITDA
Slide 15: SXC FCF/Share Reconciliation
SXC FCF/Share Reconciliation 15 2022E ($ in millions except per share amounts) Low End High End Net Income $50 $65 Depreciation and amortization expense 141 137 Interest expense, net 31 29 Income tax expense 18 24 Adjusted EBITDA $240 $255 Cash interest (28) (26) Cash taxes (8) (12) Total capex (80)
Slide 16: Reconciliation to Adjusted EBITDA and Adjusted EBITDA attributable to SXC
Reconciliation to Adjusted EBITDA and Adjusted EBITDA 16 attributable to SXC ($ in millions) Q1 '21 Q2 '21 Q3 '21 Q4 '21 FY '21 Q1 '22 Net income (loss) attributable to SunCoke Energy, Inc. $ 16.5 $ (8.8) $ 23.0 $ 12.7 $ 43.4 $ 29.5 Net income attributable to noncontrolling interests 1.7 1.3 1.1 1.3
Slide 17: Adjusted EBITDA and Adjusted EBITDA per ton
Adjusted EBITDA and Adjusted EBITDA per ton 17 Reconciliation of Segment Adjusted EBITDA and Adjusted EBITDA per Ton Domestic Corporate and Brazil Coke Consolidated Coke Logistics Other(1) ($ in millions, except per ton data) Q1 2022 Adjusted EBITDA $76.0 $4.2 $12.6 ($9.0) $83.8 Sales Volume (thousa
Slide 18: SunCoke Energy
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