Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — Q2 2022 Earnings Presentation
18 slides from Suncoke Energy's earnings presentation, Aug 2, 2022
Slide 1: SunCoke Energy, Inc. Q2 2022 Earnings Conference Call
SunCoke Energy, Inc. Q2 2022 Earnings Conference Call
Slide 2: Forward-Looking Statements
Forward‐Looking Statements 2 This slide presentation should be reviewed in conjunction with the Second Quarter 2022 earnings release of SunCoke Energy, Inc. (SunCoke) and conference call held on August 2, 2022 at 11:30 a.m. ET. This presentation contains “forward‐looking statements” (as defined in S
Slide 3: Q2 2022 Highlights
Q2 2022 Highlights 3 Delivered Q2 ‘22 Adjusted EBITDA of $71.3M Continued strong performance across our coke and logistics operations Export and foundry coke initiatives continue to perform well Entered into a non‐binding letter of intent with US Steel to manufacture granulated pig iron (GPI
Slide 4: Q2 2022 Financial Performance
Q2 2022 Financial Performance 4 Q2 2022 Earnings Review • Q2 ‘22 EPS of $0.21, up $0.32 from the prior ($/share) ($ in millions) (1) Diluted EPS Adj. EBITDA year quarter $3.3M $0.32 Prior year quarter EPS included a ($0.27) impact of debt extinguishment charges related to debt refinancing $0.21 •
Slide 5: Q2 2022 Liquidity
Q2 2022 Liquidity 5 Maintained strong liquidity position of ~$313M; Continued objective to strengthen the balance sheet (Consolidated) Q2 ’22 Revolver Total Debt $610M Availability: (1) $250.0M Gross Leverage 2.09x (1) Net Leverage 1.87x ($ in millions) ($30.8) $43.5 $79.7 ($21.1) ($5.3) $63.4 ($2.6
Slide 6: Domestic Coke Business Summary and 2022 Outlook
Domestic Coke Business Summary and 2022 Outlook 6 Coke results driven by higher margins on export sales; now expect 2022 Domestic Coke Adj. EBITDA to be $247M ‐ $255M Domestic Coke Performance and Guidance • Delivered Adj. EBITDA of $64.3M (Coke Production, Kt) $76.0M in Q2 ‘22 vs $61.4M in Q2 ‘21 $
Slide 7: Logistics Business Summary and 2022 Outlook
Logistics Business Summary and 2022 Outlook 7 Strong commodities market continues to drive robust Logistics performance; now expect Logistics Adj. EBITDA to be $48M ‐ $52M Logistics Performance and Guidance • Logistics segment contributed (Tons Handled, Kt) $12.5M to Q2 ‘22 Adj. EBITDA $11.6M $12.6M
Slide 8: 2022 Revised Guidance Summary
2022 Revised Guidance Summary 8 Increasing Adjusted EBITDA guidance by approximately $30M driven by higher margins on export coke sales and API2 coal price benefit at CMT 2022 Original 2022 Revised Metric Guidance Guidance (1) $240M ‐ $255M $270M ‐ $285M Adjusted EBITDA Consolidated Domestic Coke EB
Slide 9: 2022 Key Initiatives
2022 Key Initiatives 9 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 10: Appendix
APPENDIX )
Slide 11: Definitions
Definitions 11 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. EBITDA and Adjusted EBITDA do not represent and should not be consi
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 6/30/2022 As of 12/31/2021 Cash $ 63 $ 64 Available Revolver Capacity $ 250 $ 229 Total Liquidity $ 313 $ 293 Gross Debt (Long and Short‐term) $ 610 $ 627 Net Debt (Total Debt less Cash) $ 547 $ 563 LTM Adj. EBITDA $ 292 $ 275 Gross Debt / LTM Adj. EBITDA 2.09x
Slide 14: 2022 Guidance Reconciliation
2022 Guidance Reconciliation 14 ($ in millions) Low High Net Income $67 $83 Depreciation and amortization expense 141 137 Interest expense, net 33 31 Income tax expense 26 32 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 $67 $83 Depreciation and amortization expense 141 137 Interest expense, net 33 31 Income tax expense 26 32 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 Net income (loss) attributable to SunCoke Energy, Inc. $ 16.5 $ (8.8) $ 23.0 $ 12.7 $ 43.4 $ 29.5 $ 18.0 Net income attributable to noncontrolling interests 1
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) Q2 2022 Adjusted EBITDA $64.3 $3.9 $12.5 ($9.4) $71.3 Sales Volume (thousa
Slide 18: SunCoke Energy
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