Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — Q4 2015 Earnings Presentation
22 slides from Suncoke Energy's earnings presentation, Jan 28, 2016
Slide 1: Q4 2015 Earnings Conference Call
SunCoke Energy, Inc. Q4 2015 Earnings Conference Call January 28, 2016
Slide 2: Forward-Looking Statements
Forward-Looking Statements TM This slide presentation should be reviewed in conjunction with the Fourth Quarter 2015 earnings release of SunCoke Energy, Inc. (SXC) and conference call held on January 28, 2016 at 11:00 a.m. ET. Some of the information included in this presentation constitutes “forwar
Slide 3: 2015 Overview
2015 Overview TM Achieved solid safety, environmental and operating performance across coke & coal logistics fleet (excl. IHO) Delivered FY 2015 Consolidated Adj. EBITDA of ~$186M(1), in line with revised guidance range of $180M to $190M(2) Initiated additional measures to strengthen Indiana H
Slide 4: Q4 and Full Year 2015 Overview
Q4 and Full Year 2015 Overview TM Q4 and FY 2015 Earnings Overview (1) Consolidated Adj. EBITDA up $2.4M ($ in millions) ($/share) Consolidated Adj. EBITDA(1) Earnings per Share (diluted) vs. Q4 ‘14 primarily due to $0.30 • $15.6M benefit of Convent acquisition ($0.34) • Largely offset by IHO underp
Slide 5: Adjusted EBITDA – Q4 '14 to Q4 '15
(1) Adjusted EBITDA – Q4 ‘14 to Q4 ‘15 TM Fourth quarter results benefited from Convent performance, partially offset by lower coke results ($ in millions) $54.3 $51.9 ($10.1) $15.6 ($7.5) $1.5 $1.4 $1.5 • ($6.2M) – Lower yield & volumes • ($5.4M) – O&M under-recovery • ~1.4M transloaded tons • $2.3
Slide 6: Adjusted EBITDA – FY '14 to FY '15
(1) Adjusted EBITDA – FY ‘14 to FY ‘15 TM Full-year results impacted by lower coke results, offset partially by strong Coal Logistics performance ($ in millions) $210.7 ($23.7) $185.8 ($9.4) ($13.0) $21.0 ($2.9) $3.1 • ($30.7M) – O&M under-recovery • ($4.3M) – Lower coke sales • $12.4M – Lower nomin
Slide 7: Domestic Coke Business Summary
Domestic Coke Business Summary TM Delivered FY volumes at contract maximum levels and achieved FY 2015 Adjusted EBITDA per ton of $51 (1) Domestic Coke Production and Adj. EBITDA Per Ton (Production in thousands of tons, $ in per ton amounts) FY Adj. EBITDA per ton of $51 $58/ton within revised guid
Slide 8: Liquidity Position
Liquidity Position TM Maintain solid combined liquidity of >$275M SXCP revolver availability: $68M Attributable to SXCP $5.9 SXC revolver ($26.5) availability: $87M $33.3 $8.2 ($12.4) ($12.3) $123.4 $24.0 $103.2 • ($23.5M) – Ongoing $48.6 • ($3.0M) – Environmental & expansion $61.3 • $32.9M – Net in
Slide 9: 2015 Performance & 2016 Outlook
2015 Performance & 2016 Outlook TM Delivered 2015 results in-line with revised guidance and remain poised to achieve 2016 objectives Revised 2015 2015 Guidance 2016 Guidance Metric (Provided Oct. 2015) Results (1) Adjusted EBITDA (3) (3) Consolidated $180M – $190M $185.8M $210M – $235M (1) (1) Attri
Slide 10: 2016 Priorities
2016 Priorities TM Managing Through Challenging Market Conditions • Remain flexible & responsive to industry backdrop while leveraging unique value proposition Stabilize Indiana Harbor Cokemaking Operations • Improve profitability by executing oven rebuilds and reducing O&M costs Deliver Operations
Slide 11: Questions
QUESTIONS SXC Q4 2015 Earnings Call 10
Slide 12: Investor Relations
Investor Relations 630-824-1907 www.suncoke.com
Slide 13: Appendix
APPENDIX SXC Q4 2015 Earnings Call 12
Slide 14: Definitions
Definitions TM Adjusted EBITDA represents earnings before interest, taxes, depreciation, depletion and amortization (“EBITDA”) adjusted for impairments, coal rationalization costs, sales discounts, Coal Logistics deferred revenue and interest, taxes, depreciation and amortization attributable to our
Slide 15: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA TM ($ in millions) FY '15 Q4 '15 Q3 '15 Q2 '15 Q1 '15 FY '14 Q4 '14 Q3 '14 Q2 '14 Q1 '14 Net cash provided by Operating activities $141.1 $58.1 $6.4 $65.5 $11.1 $112.3 $53.9 $33.1 $36.6 ($11.3) Depreciation, depletion and amortization expense 109.1 33.3 25.6 26.4 23
Slide 16: Reconciliation of Segment Adjusted EBITDA and Adjusted EBITDA per ton
Reconciliation of Segment Adjusted EBITDA and Adjusted EBITDA per ton TM Reconciliation of Segment Adjusted EBITDA and Adjusted EBITDA per Ton Corporate, Domestic India Legacy Costs ($ in millions, except per ton data) Coke Brazil Coke Coke (1) Coal Mining Coal Logistics and Other Consolidated FY 20
Slide 17: Indiana Harbor Outlook
Indiana Harbor Outlook TM Targeting $10M – $20M Adjusted EBITDA 2016 Indiana Harbor Outlook improvement in 2016 Actual As-Reported Post-O&M reset • Emphasis on reducing O&M $16 $3 – $13 • Project sequential quarterly improvements $3 Outlook includes benefit of additional 19 oven rebuilds to be compl
Slide 18: Corporate Cash Costs
Corporate Cash Costs TM Significant reduction in Corporate expenses, driven by continued cost discipline and recent organizational rightsizing 2013 2014 2015 2016E Total Salaries & Compensation $44.0M $41.1M $38.2M ~$32M Other Controllable Corporate Expense(1) $40.5M $36.5M $38.9M ~$32M Total Corpor
Slide 19: Balance Sheet & Debt Metrics
Balance Sheet & Debt Metrics TM As of 12/31/2015 Balance SXC Attributable Attributable Consolidated to SXCP ($ in millions) to SXC Cash $ 123 $ 49 $ 75 Available Revolver Capacity 155 68 87 Total Liquidity 278 117 162 Total Debt (Long and Short-term) 1,004 899 105 Net Debt (Total Debt less Cash) 881
Slide 20: Debt Maturity Schedule
Debt Maturity Schedule TM Maintain sufficient liquidity position, with no near-term debt maturities ($ in millions; as of December 31, 2015) SXCP unsecured bonds: $552M SXC Maturities SXCP Maturities • SXCP secured revolver: $182M • SXCP secured term loan: $50M • SXC unsecured bonds: $45M $45 $552 S
Slide 21: 2016E Guidance Reconciliation
2016E Guidance Reconciliation TM 2016E 2016E ($ in millions) Low High Net cash provided by Operating activities $150 $170 Depreciation and amortization expense (104) (104) Gain on extinguishment of debt - - Asset and goodwill impairment - - Coal Logistics deferred revenue(1) - - Changes in working c
Slide 22: Capital Expenditures
Capital Expenditures TM 2015 CapEx ($ in millions) SXC SXCP Consolidated Ongoing(1) $30 $21 $51 Other 4 0 4 Environmental Project 0 21 21 Total CapEx (excl. pre-funded Ship loader) $34 $42 $76 Coal Logistics: Ship loader (pre-funded) $0 $5 $5 2016 Expected CapEx ($ in millions) SXC SXCP Consolidated