Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — Q3 2020 Earnings Presentation
19 slides from Suncoke Energy's earnings presentation, Nov 6, 2020
Slide 1: SunCoke Energy, Inc. Q3 2020 Earnings Conference Call
SunCoke Energy, Inc. Q3 2020 Earnings Conference Call
Slide 2: Forward-Looking Statements
Forward‐Looking Statements 2 This slide presentation should be reviewed in conjunction with the Third Quarter 2020 earnings release of SunCoke Energy, Inc. (SunCoke) and conference call held on November 6, 2020. This conference call contains “forward‐looking statements” (as defined in Section 27A of
Slide 3: Q3 2020 Highlights
Q3 2020 Highlights 3 Enhanced measures to protect the health and safety of our employees and contractors remain in place and are strictly enforced Achieved Q3 ‘20 Adjusted EBITDA of $47.8M; YTD Adjusted EBITDA of $168.9M Extended Haverhill II contract with AK Steel for additional two years; ne
Slide 4: Q3 2020 Financial Performance
Q3 2020 Financial Performance 4 Q3 2020 Earnings Review Q3 ‘20 EPS of ($0.03) per share, up $1.78 per ($ in millions) ($/share) (1) share from the prior year quarter Diluted EPS Adj. EBITDA • Prior year quarter included impact of CMT long‐ ($0.03) lived asset and Logistics goodwill impairment relate
Slide 5: Adjusted EBITDA – Q3 '19 to Q3 '20
Adjusted EBITDA(1) – Q3 ‘19 to Q3 ‘20 5 Q3 ‘20 performance driven by lower volumes partially offset by lower operating costs ($ in millions) $66.7 ($11.8) ($5.3) ($1.8) $47.8 Lower volumes Foundry related and lower prices R&D costs and partially offset mark‐to‐market by lower adjustments to operatin
Slide 6: Domestic Coke Business Summary
Domestic Coke Business Summary 6 Q3 ’20 cokemaking performance driven by lower volumes and lower operating costs Domestic Coke Performance Delivered Adj. EBITDA/ton(1) of (Coke Production, Kt) $63/ton ~$56 in Q3 ‘20 vs. ~$57 in Q3 ‘19 $60/ton $57/ton $56/ton • Lower production across the fleet $48/t
Slide 7: Logistics Business Summary
Logistics Business Summary 7 Lower throughput rate and volumes at CMT driving Logistics results Logistics Performance • Logistics segment contributed (Tons Handled, Kt) $9.6MM $8.5M $4.3M to Q3 ‘20 Adj. EBITDA $4.3M $3.3M $3.0M CMT contributed $1.7M 4,971 4,706 4,214 • Lower rate and volumes at CM
Slide 8: Q3 2020 Liquidity
Q3 2020 Liquidity 8 Maintain strong liquidity position of ~$370M; Repurchased SXCP bonds and reduced revolver borrowings as outlook becomes clearer (Consolidated) Q3 ’20 Revolver Total Debt $739.9M Availability: Gross Leverage (1) 3.37x $283.9M (1) Net Leverage 2.98x ($ in millions) ($16.5) $6.9M SX
Slide 9: 2020 Revised Key Initiatives
2020 Revised Key Initiatives 9 Successfully Navigate through the Pandemic Crisis • Protect the safety and well‐being of employees and contractors during health crisis Deliver Operational Excellence and Optimize Asset Base • Continue to deliver strong operational performance and asset optimization wh
Slide 10: Appendix
10 APPENDIX
Slide 11: Definitions
Definitions 11 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, a
Slide 12: Coke Facility Capacity and Contract Duration/Volume
Coke Facility Capacity and Contract Duration/Volume 12 Contract Contract Facility Capacity Customer Expiry Volume Middletown 550 Kt (1) AK Steel Dec. 2032 Capacity Haverhill II 550 Kt AK Steel June 2025 Capacity Granite City 650 Kt US Steel Dec. 2024 Capacity Indiana Harbor 1,220 Kt AM USA Oct. 2023
Slide 13: Balance Sheet & Debt Metrics
Balance Sheet & Debt Metrics 13 As of 9/30/2020 As of 12/31/2019 Cash $ 86 $ 97 Available Revolver Capacity 284 245 Total Liquidity $ 370 $ 342 Gross Debt (Long and Short‐term) $ 740 $ 801 Net Debt (Total Debt less Cash) $ 654 $ 704 LTM Adj. EBITDA $ 220 $ 248 Gross Debt / LTM Adj. EBITDA 3.37x 3.23
Slide 14: 2020 Revised Guidance Summary
2020 Revised Guidance Summary 14 Revised 2020 Adjusted EBITDA guidance of $190M ‐ $200M based on short‐term relief to steel customers net of reduced operating costs and other cost savings; Revised capex guidance includes ~$12m for Foundry Coke 2020 2020 Metric Original Revised Guidance Guidance Adju
Slide 15: SXC FCF/Share
SXC FCF/Share 15 2020E ($ in millions except per share amounts) Low End High End Net Income ($4) $3 Depreciation and amortization expense 136 134 Interest expense, net 56 56 Gain on extinguishment of debt, net (6) (6) Income tax benefit 6 11 Restructuring charges (1) 2 2 Adjusted EBITDA $190 $200 Ca
Slide 16: 2020 Guidance Reconciliation
2020 Guidance Reconciliation 16 ($ in millions) Low High Net Income ($4) $3 Depreciation and amortization expense 136 134 Interest expense, net 56 56 Gain on extinguishment of debt (6) (6) Income tax expense 6 11 Restructuring charges (1) 2 2 Adjusted EBITDA (Consolidated) $190 $200 Adjusted EBITDA
Slide 17: Reconciliation to Adjusted EBITDA and Adjusted EBITDA attributable to SXC
Reconciliation to Adjusted EBITDA and Adjusted EBITDA 17 attributable to SXC ($ in millions) Q1 '19 Q2 '19 Q3 '19 Q4 '19 FY '19 Q1 '20 Q2 '20 Q3 '20 YTD '20 Net income (loss) attributable to SunCoke Energy, Inc. $ 9.8 $ 2.3 $ (163.0) $ (1.4) $ (152.3) $ 4.9 $ 6.5 $ (2.7) $ 8.7 Net income (loss) attr
Slide 18: Adjusted EBITDA and Adjusted EBITDA per ton
Adjusted EBITDA and Adjusted EBITDA per ton 18 Reconciliation of Segment Adjusted EBITDA and Adjusted EBITDA per Ton Domestic Corporate ($ in millions, except per ton data) Coke Brazil Coke Logistics and Other(1) Consolidated Q3 2020 Adjusted EBITDA $48.7 $3.2 $4.3 ($8.4) $47.8 Sales Volume (thousan
Slide 19: SunCoke Energy
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