Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — Q3 2022 Earnings Presentation
18 slides from Suncoke Energy's earnings presentation, Oct 31, 2022
Slide 1: SunCoke Energy, Inc. Q3 2022 Earnings Conference Call
SunCoke Energy, Inc. Q3 2022 Earnings Conference Call
Slide 2: Forward-Looking Statements
Forward‐Looking Statements 2 This slide presentation should be reviewed in conjunction with the Third Quarter 2022 earnings release of SunCoke Energy, Inc. (SunCoke) and conference call held on October 31, 2022 at 11:00 a.m. ET. This presentation contains “forward‐looking statements” (as defined in
Slide 3: Q3 2022 Highlights
Q3 2022 Highlights 3 Delivered Q3 ‘22 Adjusted EBITDA(1) of $83.7M, representing record third quarter performance • Continued strong performance across our coke and logistics operations along with high margin on export coke sales Export and foundry coke businesses continued to perform well in Q3
Slide 4: Q3 2022 Financial Performance
Q3 2022 Financial Performance 4 Q3 2022 Earnings Review • Q3 ‘22 EPS of $0.49, up $0.22 from the prior ($/share) ($ in millions) (1) Diluted EPS Adj. EBITDA year quarter +$0.22 +$9.8 M Primarily driven by higher margins on export coke sales and income tax benefits from foreign and R&D tax credits
Slide 5: Q3 2022 Liquidity
Q3 2022 Liquidity 5 Maintained strong liquidity position of ~$342M; continued focus on strengthening the balance sheet (Consolidated) Q3 ’22 Revolver Total Debt $577M Availability: (1) $283.0M Gross Leverage 1.91x (1) Net Leverage 1.71x ($ in millions) ($33.8) $54.4 ($21.7) $63.4 $59.3 ($6.6) $3.6 D
Slide 6: Domestic Coke Business Summary
Domestic Coke Business Summary 6 Higher margins on export sales driving favorable Domestic Coke results Domestic Coke Performance • Delivered Adj. EBITDA of $76.6M (Coke Production, Kt) $76.0M $76.6M in Q3 ‘22 vs $65.1M in Q3 ‘21 $65.1M $64.3M Record Domestic Coke Adj. EBITDA driven by higher marg
Slide 7: Logistics Business Summary
Logistics Business Summary 7 Strong thermal coal market and sustained customer demand continue to drive healthy Logistics performance Logistics Performance • Logistics segment contributed (Tons Handled, Kt) $12.9M to Q3 ‘22 Adj. EBITDA $12.9M $12.6M $12.5M Higher volumes and pricing vs Q3 ‘21 $11.
Slide 8: 2022 Key Initiatives
2022 Key Initiatives 8 Deliver Safety/Operational Excellence and Offset 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, taxes, depreciation and amortization (“EBITDA”), adjusted for any impairments, restructuring costs, gains or losses on extinguishment of debt and transaction costs (“Adjusted EBITDA”). EBITDA and Adjusted EBITDA do not represent and
Slide 11: 2022 Revised Guidance Summary
2022 Revised Guidance Summary 11 Well positioned to surpass Adjusted EBITDA guidance due to higher margins on export coke sales and API2 coal price benefit at CMT 2022 Original 2022 Revised Metric Guidance Guidance Adjusted EBITDA Consolidated(1) $240M ‐ $255M $270M ‐ $285M Domestic Coke EBITDA $229
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 9/30/2022 As of 12/31/2021 Cash $ 59 $ 64 Available Revolver Capacity $ 283 $ 229 Total Liquidity $ 342 $ 293 Gross Debt (Long and Short‐term) $ 577 $ 627 Net Debt (Total Debt less Cash) $ 517 $ 563 LTM Adj. EBITDA $ 302 $ 275 Gross Debt / LTM Adj. EBITDA 1.91x
Slide 14: 2022 Guidance Reconciliation
2022 Guidance Reconciliation 14 ($ in millions) Low High Net Income $73 $92 Depreciation and amortization expense 145 140 Interest expense, net 33 31 Income tax expense 16 20 Transaction Costs (2) 3 2 Adjusted EBITDA (Consolidated) $270 $285 Adjusted EBITDA attributable to noncontrolling interest(1)
Slide 15: SXC FCF/Share Reconciliation
SXC FCF/Share Reconciliation 15 2022E ($ in millions except per share amounts) Low End High End Net Income $73 $92 Depreciation and amortization expense 145 140 Interest expense, net 33 31 Income tax expense 16 20 Transaction Costs (1) 3 2 Adjusted EBITDA $270 $285 Cash interest (30) (28) Cash taxes
Slide 16: Reconciliation to Adjusted EBITDA and Adjusted EBITDA attributable to SXC
Reconciliation to Adjusted EBITDA and Adjusted EBITDA 16 attributable to SXC ($ in millions) Q1 '21 Q2 '21 Q3 '21 Q4 '21 FY '21 Q1 '22 Q2 '22 Q3 '22 Net income (loss) attributable to SunCoke Energy, Inc. $ 16.5 $ (8.8) $ 23.0 $ 12.7 $ 43.4 $ 29.5 $ 18.0 $ 41.4 Net income attributable to noncontrolli
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 Brazil Coke Logistics Consolidated ($ in millions, except per ton data) Coke and Other(1) Q3 2022 Adjusted EBITDA $76.6 $3.3 $12.9 ($9.1) $83.7 Sales Volume (thousa
Slide 18: SunCoke Energy
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