Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — FY2021 Earnings Presentation
23 slides from Suncoke Energy's earnings presentation, Feb 1, 2022
Slide 1: Q4 & FY 2021 Earnings and 2022 Guidance
SunCoke Energy, Inc. Q4 & FY 2021 Earnings and 2022 Guidance Conference Call
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 This slide presentation should be reviewed in conjunction with the Fourth Quarter and Full-Year 2021 earnings release of SunCoke Energy, Inc. (SunCoke) and conference call held on February 1, 2022 at 10:30 a.m. ET. This presentation call contains “forward-looking stateme
Slide 3: 2021 Year In Review
2021 Year In Review 3 Delivered FY 2021 results above revised guidance; Successfully entered new coke markets; Significantly reduced interest expense and extended debt maturities FY 2021 Objective 2021 Achievements Commentary Deliver FY 2021 Consolidated Adj. • Delivered FY 2021 consolidated Adj. •
Slide 4: Q4 & FY 2021 Financial Performance
Q4 & FY 2021 Financial Performance 4 Q4 and FY 2021 Earnings Review Q4 ‘21 EPS of $0.15 per share, up $0.21 per share from the prior year quarter ($/share) ($ in millions) Diluted EPS Adj. EBITDA(1) • Driven by absence of supply relief provided to certain customers in the prior year period FY’21 EPS
Slide 5: Adjusted EBITDA – FY '20 to FY '21
Adjusted EBITDA(1) – FY ‘20 to FY ‘21 5 FY ‘21 performance driven by higher price/volume across coke and logistics businesses as well as lower legacy liability expenses (non-cash) at corporate ($ in millions) $13.2 $275.4 $26.2 $30.1 • Lower legacy liability expense (non-cash) , absence of foundry r
Slide 6: FY 2021 Capital Deployment
FY 2021 Capital Deployment 6 Strong cash flow generation deployed strategically towards operational capital needs, deleveraging, and dividends to shareholders 12/31/2020 12/31/2021 Revolver Total Debt $691M $627M Availability: Gross Leverage 3.35x 2.28x $228.8M ($ in millions) ($98.6) $233.1 ($63.5)
Slide 7: 2022 Guidance
2022 GUIDANCE p
Slide 8: Projected 2022 Adjusted EBITDA Guidance
Projected 2022 Adjusted EBITDA Guidance 8 Expect 2022 consolidated Adjusted EBITDA (1) of $240M - $255M mainly driven by lower price realizations at Coke and Logistics businesses and normalized legacy liability expense (non-cash) ($ in millions) $275.4 ($8) – ($14) ($2) – ($3) $240 - $255 ($4) – ($1
Slide 9: 2022 Domestic Coke Business Outlook
2022 Domestic Coke Business Outlook 9 Domestic Coke Adj. EBITDA estimated to be $229M - $235M; Expect to run at full capacity; Grow market share in foundry and growing export business Domestic Coke Performance • Continue to run coke fleet at full capacity $243M $229M - $235M • ~3,550Kt contracted fu
Slide 10: 2022 Logistics Business Outlook
2022 Logistics Business Outlook 10 Logistics Adjusted EBITDA guidance of $34M - $40M; Anticipate similar volumes across the Logistics segment year over year Logistics Performance 2022 outlook based on current (Tons Handled, Kt) expectations for thermal coal export volume and price $43.5M $34M - $40M
Slide 11: 2022 Guidance Summary
2022 Guidance Summary 11 Expected 2022 Adjusted EBITDA of $240M - $255M; 2022 Free Cash Flow of $110M - $125M 2021 2022 Metric Results Guidance Adjusted EBITDA Consolidated(1) $275.4M $240M - $255M Domestic Coke EBITDA $243.4M $229M - $235M Logistics EBITDA $43.5M $34M - $40M Domestic Coke Sales(2)
Slide 12: 2022 Key Initiatives
2022 Key Initiatives 12 Deliver Safety/Operational Excellence and Combat 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 furt
Slide 13: Appendix
APPENDIX )
Slide 14: Domestic Coke Business Summary
Domestic Coke Business Summary 14 Achieved FY ’21 Domestic Coke Adjusted EBITDA above the revised guidance range driven by full capacity utilization as well as strong performance in export and foundry markets Domestic Coke Performance (Coke Production, Kt) $57/ton $58/ton $56-$57/ton $61/ton $62/ton
Slide 15: Logistics Business Summary
Logistics Business Summary 15 FY ’21 Logistics Adjusted EBITDA strong results driven by strong volume/price as well as minimal high water costs at CMT Logistics Performance (Tons Handled, Kt) $10.9M $11.4M $11.6M $9.6M $6.7M $43.5M $34M - $40M $17.3M 5,300 19,933 18,700 – 20,700 5,104 4,940 4,589 4,
Slide 16: Definitions
Definitions 16 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, restructuring costs, changes to our contingent consideration liability related to our
Slide 17: Coke Facility Capacity and Contract Duration/Volume
Coke Facility Capacity and Contract Duration/Volume 17 (1) Contract Contract Facility Capacity 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 18: Balance Sheet & Debt Metrics
Balance Sheet & Debt Metrics 18 As of 12/31/2021 As of 12/31/2020 Cash $ 64 $ 48 Available Revolver Capacity $ 229 $ 300 Total Liquidity $ 293 $ 348 Gross Debt (Long and Short-term) $ 627 $ 691 Net Debt (Total Debt less Cash) $ 563 $ 643 LTM Adj. EBITDA $ 275 $ 206 Gross Debt / LTM Adj. EBITDA 2.28x
Slide 19: 2022 Guidance Reconciliation
2022 Guidance Reconciliation 19 ($ in millions) Low High Net Income $50 $65 Depreciation and amortization expense 141 137 Interest expense, net 31 29 Income tax expense 18 24 Adjusted EBITDA (Consolidated) $240 $255 Adjusted EBITDA attributable to noncontrolling interest(1) (9) (9) Adjusted EBITDA a
Slide 20: SXC FCF/Share Reconciliation
SXC FCF/Share Reconciliation 20 2022E ($ in millions except per share amounts) Low End High End Net Income $50 $65 Depreciation and amortization expense 141 137 Interest expense, net 31 29 Income tax expense 18 24 Adjusted EBITDA $240 $255 Cash interest (28) (26) Cash taxes (8) (12) Total capex (80)
Slide 21: Reconciliation to Adjusted EBITDA and Adjusted EBITDA attributable to SXC
Reconciliation to Adjusted EBITDA and Adjusted EBITDA 21 attributable to SXC ($ in millions) Q4 '20 FY '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 FY '21 Net income (loss) attributable to SunCoke Energy, Inc. $ (5.0) $ 3.7 $ 16.5 $ (8.8) $ 23.0 $ 12.7 $ 43.4 Net income attributable to noncontrolling interests 1
Slide 22: Adjusted EBITDA and Adjusted EBITDA per ton
Adjusted EBITDA and Adjusted EBITDA per ton 22 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) FY 2021 Adjusted EBITDA $243.4 $17.2 $43.5 ($28.7) $275.4 Sales Volume (th
Slide 23: SunCoke Energy
SunCoke Energy’