Slide 1: SunCoke Energy, Inc. Q3 2019 Earnings Conference Call
SunCoke Energy, Inc. Q3 2019 Earnings Conference Call
Slide 2: Forward-Looking Statements
Forward‐Looking Statements 2 This slide presentation should be reviewed in conjunction with the Third Quarter 2019 earnings release of SunCoke Energy, Inc. (SunCoke) and conference call held on November 5, 2019 at 10:30 a.m. ET. Except for statements of historical fact, information contained in this
Slide 3: Q3 2019 Highlights
Q3 2019 Highlights 3 Operations: Delivered Q3 ‘19 Adjusted EBITDA of $66.7M and YTD 2019 Adjusted EBITDA of $197.1; ended quarter with ample liquidity position of ~$338M Continued solid operating performance across the coke fleet Remain on track with 2019 IHO oven rebuild campaign; well positi
Slide 4: Q3 2019 Financial Performance
Q3 2019 Financial Performance 4 Q3 2019 Earnings Review Q3 ‘19 EPS of ($1.81) includes impact of ($/share) ($ in millions) Diluted EPS Adj. EBITDA (1) CMT long‐lived asset and Logistics goodwill impairment related charges of $0.18 ($1.94) per share $66.7 • Excluding the non‐cash charge, Q3 ’19 Adjus
Slide 5: Adjusted EBITDA – Q3 '18 to Q3 '19
Adjusted EBITDA(1) – Q3 ‘18 to Q3 ‘19 5 Q3 ‘19 performance driven by strong Domestic Coke operations offset by lower Logistics volumes ($ in millions) $10.1 ($11.4) $66.0 $2.0 $66.7 • Lower CMT volumes • Lower legal costs and favorable deferred compensation • $2.1M – Higher volumes at IHO • $7.6M –
Slide 6: Domestic Coke Business Summary
Domestic Coke Business Summary 6 Strong operational performance buoyed by IHO oven rebuilds Domestic Coke Performance Delivered Adj. EBITDA/ton(1) of ~$57 (Coke Production, Kt) vs. ~$49 in Q3 ‘18 $58/ton $57/ton $55/ton • Increased production at IHO due to oven $49/ton $50/ton rebuilds • Significant
Slide 7: Logistics Business Summary
Logistics Business Summary 7 Lower throughput volumes at CMT continue to impact quarterly results; adjusting full year guidance to reflect coal export customer bankruptcy Logistics Performance • Logistics segment contributed $9.6M to Q3’ (Tons Handled, Kt) 19 and $34.1M to YTD Adj. EBITDA • CMT cont
Slide 8: Q3 2019 Liquidity
Q3 2019 Liquidity 8 Maintain strong consolidated liquidity of ~$338M; SunCoke well positioned to respond to changing market conditions (Consolidated) Q3 ’19 Revolver Total Debt $801.3M Availability: Gross Leverage (1) 3.05x $244.5M • $46.6M SXCP Notes repurchase ($50M face value) (2) ($ in millions)
Slide 9: SXC Capital Allocation Priorities
SXC Capital Allocation Priorities 9 Capital allocation tools deployed demonstrates SunCoke’s financial flexibility; will remain disciplined, opportunistic and nimble to maximize stakeholders value long‐term Capital Allocation Priorities Organic Growth Projects, Reduce Long‐Term Debt / Return Additio
Slide 10: 2019 Revised Guidance Summary
2019 Revised Guidance Summary 10 Guidance updated to reflect expected financial impact at logistics due to CMT coal export customer bankruptcy 2018 2019 2019 Metric Results Previous Guidance Revised Guidance Adjusted EBITDA(1) Consolidated $263.2M $266M ‐ $276M $240M ‐ $250M Attrib. to SXC $181.2M $
Slide 11: 2019 Key Initiatives
2019 Key Initiatives 11 Deliver Operations Excellence and Optimize Asset Base • Drive strong operational and safety performance while optimizing asset utilization • Successfully execute on capital plan Complete last phase of oven rebuilds at Indiana Harbor • Complete 57 planned B‐battery oven rebuil
Slide 12: Appendix
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, l
Slide 14: Reconciliation to Adjusted EBITDA, Adjusted net income and Adjusted EPS
Reconciliation to Adjusted EBITDA, Adjusted net income 14 attributable to SXC and Adjusted EPS ($ in millions) Q1 '18 Q2 '18 Q3 '18 Q4 '18 FY '18 Q1 '19 Q2 '19 Q3 '19 YTD '19 Net Income $ 13.0 $ 11.4 $ 17.1 $ 5.5 $ 47.0 $ 12.2 $ 3.3 $(163.1) $(147.6) Depreciation and amortization expense 32.9 32.0 3
Slide 15: Adjusted EBITDA and Adjusted EBITDA per ton
Adjusted EBITDA and Adjusted EBITDA per ton 15 Reconciliation of Segment Adjusted EBITDA and Adjusted EBITDA per Ton Domestic Corporate and ($ in millions, except per ton data) Coke Brazil Coke Logistics Other(1) Consolidated Q3 2019 Adjusted EBITDA $59.8 $3.9 $9.6 ($6.6) $66.7 Sales Volume (thousan
Slide 16: Balance Sheet & Debt Metrics
Balance Sheet & Debt Metrics 16 ($ in millions) As of 9/30/2019 As of 12/31/2018 Cash $ 94 $ 146 Available Revolver Capacity 245 254 Total Liquidity $ 338 $ 400 Gross Debt (Long and Short‐term) $ 801 $ 859 Net Debt (Total Debt less Cash) $ 707 $ 713 Adj. EBITDA (LTM) $ 263 $ 263 Gross Debt / Adj. EB
Slide 17: 2019 Capital Expenditures
2019 Capital Expenditures 17 2019 CapEx Overview ($ in millions) Low High Ongoing $64 $66 IHO Oven Rebuilds 40 48 Total Ongoing CapEx(1) $104 $114 Environmental Project (Gas Sharing)(2)(3) 6 6 Total CapEx $110 $120 1) At the midpoint of the range 2019 ongoing CapEX includes approximately $104M in on
Slide 18: 2019 Guidance Reconciliation
2019 Guidance Reconciliation 18 ($ in millions) Low High Net Loss ($158) ($151) Long‐lived asset and goodwill Impairment 247 247 Depreciation and amortization expense 150 145 Interest expense, net 60 60 Gain on extinguishment of debt, net (2) (2) Income tax benefit (58) (50) Contingent consideration
Slide 19: Pro Forma SXC FCF/Share 2019E
Pro Forma SXC FCF/Share 2019E 19 ($ in millions except per share amounts) Low End High End Net Loss ($158) ($151) Long‐lived asset and goodwill impairment 247 247 Depreciation and amortization expense 150 145 Interest expense, net 60 60 Gain on extinguishment of debt, net (2) (2) Income tax benefit
Slide 20: SunCoke Energy
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