Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — FY2020 Earnings Presentation
25 slides from Suncoke Energy's earnings presentation, Feb 4, 2021
Slide 1: Q4 & FY 2020 Earnings and 2021 Guidance Conference Call
SunCoke Energy, Inc. Q4 & FY 2020 Earnings and 2021 Guidance Conference Call Exhibit 99.2
Slide 2: Forward-looking statements
This slide presentation should be reviewed in conjunction with the Fourth Quarter and Full-Year 2020 earnings release of SunCoke Energy, Inc. (SunCoke) and conference call held on February 4, 2021 at 10:30 a.m. ET. This presentation call contains “forward-looking statements” (as defined in Section 2
Slide 3: 2020 Year In Review
2020 Year In Review Delivered FY 2020 results above expectations while continuing to navigate the COVID-19 pandemic; renewed expiring contracts; reduced debt FY 2020 Objective 2020 Achievements Commentary Deliver FY 2020 Consolidated Adj. EBITDA(1) of $190M – $200M Generate $36M – $56M Free Cash Flo
Slide 4: Q4 & FY 2020 Financial Performance
Q4 & FY 2020 Financial Performance See appendix for a definition and reconciliation of Adjusted EBITDA Coke Adjusted EBITDA includes Domestic Coke and Brazil Coke ($/share) ($ in millions) Diluted EPS Adj. EBITDA(1) Q4 and FY 2020 Earnings Review Q4 ‘20 EPS of ($0.06) per share, down $0.04 per share
Slide 5: Adjusted EBITDA – Q4 '19 to Q4 '20
Adjusted EBITDA(1) – Q4 ‘19 to Q4 ‘20 See appendix for a definition and reconciliation of Adjusted EBITDA (1) ($ in millions) (1) Q4 ‘20 performance driven by lower volumes offset partially by lower operating costs Mainly due to higher non-cash legacy liability expense
Slide 6: Adjusted EBITDA – FY '19 to FY '20
Adjusted EBITDA(1) – FY ‘19 to FY ‘20 See appendix for a definition and reconciliation of Adjusted EBITDA (1) Lower volumes due to customer relief partially offset by disciplined cost control Impact of coal customer bankruptcy at CMT Lower volumes at other logistics terminals ($ in millions) (1) FY
Slide 7: FY 2020 Capital Deployment
Revolver Availability: $300M 12/31/2019 12/31/2020 Total Debt $801M $691M Gross Leverage 3.23x 3.35x Average bond repurchase price of $0.892 per $1.00 face value Repurchased approximately 1.6 million shares at an average price of $4.29/share FY 2020 Capital Deployment Strong cash flow generation dep
Slide 8: 2021 Guidance
2021 GUIDANCE )
Slide 9: Market Outlook
Market Outlook Recent recovery in steel to continue in 2021; Long-term coke demand outlook looks constructive; Export thermal coal market showing signs of strength; CMT exploring other bulk commodity products Domestic steel markets struggled early to mid-year in 2020 due to COVID-19 but rallied stro
Slide 10: Projected 2021 Adjusted EBITDA Guidance
Projected 2021 Adjusted EBITDA Guidance $215 - $230 $2 - $7 $0 – $1 $3 - $8 $4 - $8 See appendix for a definition and reconciliation of Adjusted EBITDA (1) ($ in millions) Expect 2021 consolidated Adjusted EBITDA of $215M - $230M mainly driven by domestic coke plants running at full capacity, potent
Slide 11: 2021 Domestic Coke Business Outlook
2021 Domestic Coke Business Outlook Domestic Coke Adj. EBITDA expected to be $219M - $224M; Expect to run at full capacity Domestic Coke Performance $219M - $224M 3,840Kt Kt $M $217M ~Kt Anticipate a $2M to $7M increase in Domestic Coke Adj. EBITDA in 2021 mainly due to: Running fleet at full capaci
Slide 12: 2021 Logistics Business Outlook
2021 Logistics Business Outlook Logistics Adjusted EBITDA guidance of $20M - $25M; 2021 Logistics guidance includes potential to handle additional volumes and new products Logistics Performance 6,500 – 8,000 ~10,500 $20M - $25M 17,000 – 18,500 2021 Plan based on the new coal handling agreement with
Slide 13: 2021 Guidance Summary
2021 Guidance Summary Expected 2021 Adjusted EBITDA of $215M - $230M; 2021 Free Cash Flow of $80M - $100M See appendix for a definition and reconciliation of Adjusted EBITDA Domestic coke production for 2021 estimate includes production for foundry and export sales Domestic Coke Adj. EBITDA/ton calc
Slide 14: 2021 Key Initiatives
Provide stability in coke business by addressing uncontracted coke tons in the near future Continue to work towards revitalizing CMT with new product and customer mix Position Coke Business and CMT for Long-Term Success 2021 Key Initiatives $215M - $230M Adjusted EBITDA Achieve 2021 Financial Object
Slide 15: Appendix
APPENDIX ) |
Slide 16: Domestic Coke Performance
Domestic Coke Performance Domestic Coke Business Summary /ton /ton /ton /ton /ton Sales Tons (Coke Production, Kt) See appendix for a definition and reconciliation of Adjusted EBITDA and Adjusted EBITDA per ton 977K 1,080K Achieved FY ’20 Domestic Coke Adjusted EBITDA above the revised guidance rang
Slide 17: Logistics Business Summary
$8.5M $3.3M $3.0M Logistics Business Summary (Tons Handled, Kt) $1.7M $5.2M CMT Adj.(1) EBITDA $1.3M See appendix for a definition and reconciliation of Adjusted EBITDA. FY ’20 Logistics Adjusted EBITDA at the lower end of the guidance range driven by lower volumes mostly offset by operating cost di
Slide 18: Adjusted EBITDA definition
Adjusted EBITDA represents earnings before interest, loss (gain) on extinguishment of debt, taxes, depreciation and amortization (“EBITDA”), adjusted for impairments, loss on extinguishment of debt, restructuring costs, changes to our contingent consideration liability related to our acquisition of
Slide 19: Coke Facility Capacity and Contract Duration/Volume
Coke Facility Capacity and Contract Duration/Volume Capacity represents blast furnace equivalent production capacity Represents production capacity for blast-furnace sized coke, however, customer takes all on a “run of oven” basis, which represents >600k tons per year.
Slide 20: Balance Sheet & Debt Metrics
Balance Sheet & Debt Metrics | As of 12/31/2020 | As of 12/31/2019 Cash S$ 48.4 $ 97.1 Available Revolver Capacity S 299.9 S 244.5 Total Liquidity Ss 348.3 S$ 341.6 Gross Debt (Long and Short-term) $ 690.5 $ 800.5 Net Debt (Total Debt less Cash) s 642.1 S$ 703.4 LTM Adj. EBITDA 205.9 $ 247.8 Gross D
Slide 21: 2021 Guidance Reconciliation
2021 Guidance Reconciliation Reflects non-controlling interest in Indiana Harbor Free Cash Flow Reconciliation
Slide 22: SXC FCF/Share Reconciliation
SXC FCF/Share Reconciliation
Slide 23: Reconciliation to Adjusted EBITDA attributable to SXC
Reconciliation to Adjusted EBITDA and Adjusted EBITDA attributable to SXC In connection with the CMT acquisition, the Company entered into a contingent consideration arrangement that required the Company to make future payments to the seller based on future volume over a specified threshold, price a
Slide 24: Adjusted EBITDA and Adjusted EBITDA per ton
Adjusted EBITDA and Adjusted EBITDA per ton (1) Corporate and Other includes the results of our legacy coal mining business.
Slide 25: SunCoke Energy
SunCoke Energy”