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 Exhibit 99.2
Slide 2: Forward-looking statements
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 the Securities Act of 1933,
Slide 3: Q3 2020 Highlights
Q3 2020 Highlights 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; new expira
Slide 4: Q3 2020 Financial Performance
Q3 2020 Financial Performance Coke Adjusted EBITDA includes Domestic Coke and Brazil Coke Q3 ’20 Corporate and Other Adj. EBITDA includes foundry related research and developments costs of $0.9M See appendix for a definition and reconciliation of Adjusted EBITDA Q3 ‘20 EPS of ($0.03) per share, up $
Slide 5: Adjusted EBITDA – Q3 '19 to Q3 '20
Adjusted EBITDA(1) – Q3 ‘19 to Q3 ‘20 See appendix for a definition and reconciliation of Adjusted EBITDA (1) Lower volumes due to customer relief partially offset by disciplined cost control Lower volumes and lower prices partially offset by lower operating costs ($ in millions) (1) Q3 ‘20 performa
Slide 6: Domestic Coke Performance
Domestic Coke Performance Domestic Coke Business Summary /ton /ton /ton /ton /ton Sales Tons (Coke Production, Kt) Delivered Adj. EBITDA/ton(1) of ~$56 in Q3 ‘20 vs. ~$57 in Q3 ‘19 Lower production across the fleet driven by volume relief provided to customers Despite the lower volumes, delivered $5
Slide 7: Logistics Performance
$3.3M M $3.0M $8.5M Logistics Business Summary (Tons Handled, Kt) Logistics segment contributed $4.3M to Q3 ‘20 Adj. EBITDA CMT contributed $1.7M Lower rate and volumes at CMT Domestic logistics terminals delivered higher Adj. EBITDA on lower volumes driven by lower costs $1.7M $7.4M CMT Adj.(1) EBI
Slide 8: Q3 2020 Liquidity
Revolver Availability: $283.9M (Consolidated) Q3 ’20 Total Debt $739.9M Gross Leverage(1) 3.37x Net Leverage(1) 2.98x Gross leverage and Net leverage for Q3 2020 calculated using Last Twelve Month(LTM) Adjusted EBITDA Average bond repurchase price of $0.915 per $1.00 face value, resulting in ~$7.5M
Slide 9: 2020 Revised Key Initiatives
Protect the safety and well-being of employees and contractors during health crisis Successfully Navigate through the Pandemic Crisis Continue to deliver strong operational performance and asset optimization while following safety guidelines Deliver Operational Excellence and Optimize Asset Base Bus
Slide 10: Appendix
APPENDIX
Slide 11: Adjusted EBITDA definition and reconciliation
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, and/or transacti
Slide 12: Coke Facility Capacity and Contract Duration/Volume
Coke Facility Capacity and Contract Duration/Volume 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 13: Balance Sheet & Debt Metrics
Balance Sheet & Debt Metrics 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) s 654 $ 704 LTM Adj. EBITDA $ 220 $ 248 Gross Debt / LTM Adj. EBITDA 3.37x 3.23x
Slide 14: 2020 Revised Guidance Summary
2020 Revised Guidance Summary See slide 11 and slide 16 for a definition and reconciliation of Adjusted EBITDA Capital expenditures exclude the impact of capitalized interest Revised capital expenditures guidance of approx. $80M includes approx. $12M for Foundry which was not contemplated in origina
Slide 15: 2020 Free Cash Flow Reconciliation
SXC FCF/Share Charges related to company-wide restructuring and cost reduction initiative Based on revised 2020E guidance 2020 Free Cash Flow Reconciliation
Slide 16: 2020 Guidance Reconciliation
2020 Guidance Reconciliation Charges related to company-wide restructuring and cost reduction initiative Reflects non-controlling interest in Indiana Harbor 2020 Capital Expenditures Guidance
Slide 17: 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 18: 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 19: SunCoke Energy
SunCoke Energy”