Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — Q2 2020 Earnings Presentation
19 slides from Suncoke Energy's earnings presentation, Aug 3, 2020
Slide 1: SunCoke Energy, Inc. Q2 2020 Earnings Conference Call
SunCoke Energy, Inc. Q2 2020 Earnings Conference Call
Slide 2: Forward-Looking Statements
Forward‐Looking Statements 2 This slide presentation should be reviewed in conjunction with the Second Quarter 2020 earnings release of SunCoke Energy, Inc. (SunCoke) and conference call held on August 3, 2020. This conference call contains “forward‐looking statements” (as defined in Section 27A of
Slide 3: Highlights and COVID-19 Update
Highlights and COVID‐19 Update 3 All facilities continue to operate safely Enhanced measures to protect the health and safety of our employees and contractors remain in place and are strictly enforced Reached agreement with Cliffs/AK Steel for coke supply reduction of 200k tons in 2020 in exch
Slide 4: Foundry Coke
Foundry Coke 4 SunCoke has been evaluating the foundry coke market and our ability to commercially produce high quality foundry coke After significant testing and development, we expect to produce and sell foundry coke and related industrial coke in 2021 Blast Furnace Coke in Oven Domestic fou
Slide 5: Q2 2020 Financial Performance
Q2 2020 Financial Performance 5 Q2 2020 Earnings Review Q2 ‘20 EPS of $0.08 per share, up $0.05 ($/share) ($ in millions) (1) per share from the prior year quarter Diluted EPS Adj. EBITDA • Mainly driven by absence of simplification transaction costs (1) $0.08 $59.0 $63.1 Adjusted EBITDA of $59.0M,
Slide 6: Adjusted EBITDA – Q2 '19 to Q2 '20
Adjusted EBITDA(1) – Q2 ‘19 to Q2 ‘20 6 Q2 ‘20 performance driven by lower logistics volumes partially offset by strong cost performance in Domestic Coke segment ($ in millions) $4.2 ($8.8) $63.1 $0.5 $59.0 Lower volumes Lower employee and lower prices costs partially partially offset offset by by l
Slide 7: Q2 2020 Liquidity
Q2 2020 Liquidity 7 Maintain strong liquidity position of ~$326M; Reduced revolver borrowings as outlook becomes clearer (Consolidated) Q2 ’20 Revolver Total Debt $787.1M Availability: Gross Leverage (1) 3.30x $244.9M (1) Net Leverage 2.96x ($ in millions) $235.8 $21.8 ($14.1) ($156.7) ($5.0) $81.1
Slide 8: Domestic Coke Business Summary and 2020 Outlook
Domestic Coke Business Summary and 2020 Outlook 8 Q2 ’20 cokemaking performance driven by improved cost recovery and lower operating costs; Expect 2020 Domestic Coke Adj. EBITDA to be $198M ‐ $202M Domestic Coke Performance and Guidance Delivered Adj. EBITDA/ton(1) of ~$63 in (Coke Production, Kt) $
Slide 9: Logistics Business Summary and 2020 Outlook
Logistics Business Summary and 2020 Outlook 9 Expect logistics to be at the lower end of original guidance; Volumes impacted by COVID‐19 partially offset by proactive cost management Logistics Performance and Guidance • Logistics segment contributed $3.0M to $11.8M (Tons Handled, Kt) Q2 ‘20 Adj. EBI
Slide 10: 2020 Revised Guidance Summary
2020 Revised Guidance Summary 10 Revised 2020 Adjusted EBITDA guidance of $190M ‐ $200M based on short‐term relief to steel customers net of reduced operating costs and other cost savings; Revised capex guidance includes ~$12m for Foundry Coke 2020 2020 Metric Original Revised Guidance Guidance Adju
Slide 11: 2020 Revised Key Initiatives
2020 Revised Key Initiatives 11 Successfully Navigate through the Pandemic Crisis • Protect the safety and well‐being of employees and contractors during health crisis Deliver Operational Excellence and Optimize Asset Base • Continue to deliver strong operational performance and asset optimization w
Slide 12: Appendix
12 APPENDIX
Slide 13: Definitions
Definitions 13 Adjusted EBITDA represents earnings before interest, loss (gain) on extinguishment of debt, taxes, depreciation and amortization (“EBITDA”), adjusted for impairments, loss on extinguishment of debt, changes to our contingent consideration liability related to our acquisition of CMT, a
Slide 14: Reconciliation to Adjusted EBITDA and Adjusted EBITDA attributable to SXC
Reconciliation to Adjusted EBITDA and Adjusted EBITDA 14 attributable to SXC ($ in millions) Q1 '19 Q2 '19 Q3 '19 Q4 '19 FY '19 Q1 '20 Q2 '20 Net income (loss) attributable to SunCoke Energy, Inc. $ 9.8 $ 2.3 $ (163.0) $ (1.4) $ (152.3) $ 4.9 $ 6.5 Net income (loss) attributable to noncontrolling in
Slide 15: Adjusted EBITDA and Adjusted EBITDA per ton
Adjusted EBITDA and Adjusted EBITDA per ton 15 Reconciliation of Segment Adjusted EBITDA and Adjusted EBITDA per Ton Domestic Corporate and ($ in millions, except per ton data) Coke Brazil Coke Logistics Other(1) Consolidated Q2 2020 Adjusted EBITDA $61.6 $3.2 $3.0 ($8.8) $59.0 Sales Volume (thousan
Slide 16: Balance Sheet & Debt Metrics
Balance Sheet & Debt Metrics 16 As of 6/30/2020 As of 12/31/2019 Cash $ 81 $ 97 Available Revolver Capacity 245 245 Total Liquidity $ 326 $ 342 Gross Debt (Long and Short‐term) $ 787 $ 801 Net Debt (Total Debt less Cash) $ 706 $ 704 LTM Adj. EBITDA $ 239 $ 248 Gross Debt / LTM Adj. EBITDA 3.30x 3.23
Slide 17: 2020 Guidance Reconciliation
2020 Guidance Reconciliation 17 ($ in millions) Low High Net Income $0 $10 Depreciation and amortization expense 132 128 Interest expense, net 57 57 Gain on extinguishment of debt (3) (3) Income tax expense 2 5 Restructuring Charges (1) 2 3 Adjusted EBITDA (Consolidated) $190 $200 Adjusted EBITDA at
Slide 18: SXC FCF/Share
SXC FCF/Share 18 2020E ($ in millions except per share amounts) Low End High End Net Income $0 $10 Depreciation and amortization expense 132 128 Interest expense, net 57 57 Gain on extinguishment of debt, net (3) (3) Income tax benefit 2 5 Restructuring Charges (1) 2 3 Adjusted EBITDA $190 $200 Cash
Slide 19: SunCoke Energy
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