Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — Q1 2023 Earnings Presentation
18 slides from Suncoke Energy's earnings presentation, May 4, 2023
Slide 1: Q1 2023 Earnings Conference Call
SunCoke Energy, Inc. Q1 2023 Earnings Conference Call
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 This presentation should be reviewed in conjunction with the first quarter 2023 earnings release of SunCoke Energy, Inc. (SunCoke) and conference call held on May 4, 2023 at 11:00 a.m. ET. This presentation contains “forward-looking statements” (as defined in Section 27A
Slide 3: Q1 2023 Highlights
Q1 2023 Highlights 3 Solid start to the year across our coke and logistics operations Delivered Q1 '23 Consolidated Adjusted EBITDA(1) of $67.1M Extended Indiana Harbor contract with Cleveland-Cliffs through September 2035 • Key provisions of the 12-year extension are similar to our current ag
Slide 4: Q1 2023 Financial Performance
Q1 2023 Financial Performance 4 Q1 2023 Earnings Review • Q1 '23 EPS of $0.19, down $0.16 from the ($/share) ($ in millions) prior year quarter (1) Diluted EPS Adjusted EBITDA Primarily driven by lower contribution margin -$16.7M on export coke sales -$0.16 • Consolidated Adjusted EBITDA(1) of $67
Slide 5: Domestic Coke Business Summary
Domestic Coke Business Summary 5 Lower export coke sales contribution margin driving Domestic Coke results Domestic Coke Performance • Delivered Adjusted EBITDA of (Coke Production, Kt) $60.4M in Q1 '23 vs $76.0M in $76.0M $76.6M Q1 '22 $64.3M Domestic Coke fleet continues to operate $60.4M at ful
Slide 6: Logistics Business Summary
Logistics Business Summary 6 Sustained customer demand continues to drive healthy Logistics performance Logistics Performance • Logistics segment contributed (Tons Handled, Kt) $13.5M to Q1 '23 Adjusted EBITDA $13.5M Favorable logistics performance primarily $12.5M $12.9M driven by higher volumes
Slide 7: Q1 2023 Liquidity
Q1 2023 Liquidity 7 Maintained strong liquidity position of ~$398M (Consolidated) Q1 '23 Revolver Total Debt $543M Availability: (1) $315.0M Gross Leverage 1.93x (1) Net Leverage 1.64x ($ in millions) ($0.8) $30.2 ($22.6) $90.0 ($6.7) ($6.8) $83.3 Impacted by changes Dividend of in working capital $
Slide 8: 2023 Key Initiatives
2023 Key Initiatives 8 Continued Safety and Environmental Excellence • Continue to deliver strong safety and environmental performance Deliver Operational Excellence and Optimize Asset Utilization • Successfully execute on operational and capital plan • Support full capacity utilization of cokemakin
Slide 9: Appendix
APPENDIX )
Slide 10: Non-GAAP Financial Measures Definitions
10 NON-GAAP FINANCIAL MEASURES In order to assist readers in understanding the core operating results that our management uses to evaluate the business, we describe our non- GAAP measures referenced in this presentation below. In addition to U.S. GAAP measures, this presentation contains certain non
Slide 11: 2023 Guidance Summary
2023 Guidance Summary 11 Expect 2023 Consolidated Adjusted EBITDA of $250M - $265M; 2023 Free Cash Flow of $105M - $120M 2023 Metric Guidance (1) Adjusted EBITDA Consolidated $250M - $265M Domestic Coke EBITDA $234M - $242M Logistics EBITDA $47M - $50M (2) Domestic Coke Sales ~4M tons (3) $59 - $61/
Slide 12: Coke Facility Capacity and Contract Duration/Volume
Coke Facility Capacity and Contract Duration/Volume 12 (1) Contract Contract Facility Capacity Customer Expiry Volume Indiana Harbor 1,220 Kt Cliffs Steel Sep. 2035 Capacity Middletown 550 Kt (2) Cliffs Steel Dec. 2032 Capacity Haverhill II 550 Kt Cliffs Steel June 2025 Capacity Granite City 650 Kt
Slide 13: Balance Sheet & Debt Metrics
Balance Sheet & Debt Metrics 13 As of 3/31/2023 As of 12/31/2022 Cash $ 83 $ 90 Available Revolver Capacity $ 315 $ 315 Total Liquidity $ 398 $ 405 Gross Debt (Long and Short-term) $ 543 $ 544 Net Debt (Total Debt less Cash) $ 460 $ 454 LTM Adjusted EBITDA $ 281 $ 298 Gross Debt / LTM Adjusted EBITD
Slide 14: 2023 Guidance Reconciliation
2023 Guidance Reconciliation 14 ($ in millions) Low High Net Income $59 $76 Depreciation and amortization expense 136 132 Interest expense, net 31 29 Income tax expense 24 28 Adjusted EBITDA (Consolidated) $250 $265 Adjusted EBITDA attributable to noncontrolling interest(1) (9) (9) Adjusted EBITDA a
Slide 15: SXC FCF/Share Reconciliation
SXC FCF/Share Reconciliation 15 2023E ($ in millions except per share amounts) Low End High End Net Income $59 $76 Depreciation and amortization expense 136 132 Interest expense, net 31 29 Income tax expense 24 28 Adjusted EBITDA $250 $265 Cash interest (28) (26) Cash taxes (12) (16) Total capex (95
Slide 16: Reconciliation to Adjusted EBITDA and Adjusted EBITDA attributable to SXC
Reconciliation to Adjusted EBITDA and Adjusted EBITDA 16 attributable to SXC ($ in millions) Q1 '22 Q2 '22 Q3 '22 Q4 '22 FY '22 Q1 '23 Net income (loss) attributable to SunCoke Energy, Inc. $ 29.5 $ 18.0 $ 41.4 $ 11.8 $ 100.7 $ 16.3 Net income attributable to noncontrolling interests 1.1 1.0 1.1 1.0
Slide 17: Adjusted EBITDA and Adjusted EBITDA per ton
Adjusted EBITDA and Adjusted EBITDA per ton 17 Reconciliation of Segment Adjusted EBITDA and Adjusted EBITDA per Ton Domestic Corporate Brazil Coke Logistics Consolidated ($ in millions, except per ton data) Coke and Other(1) Q1 2023 Adjusted EBITDA $60.4 $2.4 $13.5 ($9.2) $67.1 Sales Volume (thousa
Slide 18: SunCoke Energy
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