Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — Q1 2024 Earnings Presentation
18 slides from Suncoke Energy's earnings presentation, May 1, 2024
Slide 1: SunCoke Energy, Inc. Q1 2024 Earnings Conference Call
SunCoke Energy, Inc. Q1 2024 Earnings Conference Call
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 This presentation should be reviewed in conjunction with the first quarter 2024 earnings release of SunCoke Energy, Inc. (SunCoke) and conference call held on May 1, 2024 at 11:30 a.m. ET. This presentation contains “forward-looking statements” (as defined in Section 27A
Slide 3: Q1 2024 Highlights
Q1 2024 Highlights 3 ✓ Strong start to the year across our coke and logistics operations ✓ Delivered Q1 '24 Consolidated Adjusted EBITDA(1) of $67.9M ✓ All spot blast and foundry coke sales finalized for the full year ✓ Gross leverage at 1.86x on a trailing 12 month Adjusted EBITDA(1) basis ✓ Ended
Slide 4: Q1 2024 Financial Performance
Q1 2024 Financial Performance 4 Q1 2024 Earnings Review • Q1 '24 EPS of $0.23, up $0.04 from the prior ($/share) ($ in millions) year quarter Diluted EPS Adjusted EBITDA(1) (1) +$0.8 M • Consolidated Adjusted EBITDA of $67.9M, +$0.04 an increase of $0.8M from the prior year quarter ▪ Coke segment up
Slide 5: Domestic Coke Business Summary
Domestic Coke Business Summary 5 Domestic coke fleet continues to operate at full capacity; all spot blast and foundry coke sales finalized for the year Domestic Coke Performance • Delivered Adjusted EBITDA of (Coke Production, Kt) $61.4M in Q1 ‘24 vs $60.4M in Q1 ‘23 $68.2M $64.0M ▪ Domestic coke f
Slide 6: Logistics Business Summary
Logistics Business Summary 6 Higher volumes driving domestic terminals performance; continue to see lower volumes at CMT due to weak commodity markets Logistics Performance • Logistics segment contributed (Tons Handled, Kt) $13.0M to Q1 ‘24 Adjusted EBITDA $13.5M $13.0M ▪ Logistics performance prima
Slide 7: Q1 2024 Liquidity
Q1 2024 Liquidity 7 Maintained strong liquidity position of $470.1M (Consolidated) Q1 '24 Revolver Total Debt $500M Availability: Gross Leverage(1) 1.86x $350M (1) Net Leverage 1.41x ($ in millions) $140.1 $10.0 ($15.5) ($9.0) $120.1 Negatively impacted by ($5.5) the timing of working capital change
Slide 8: 2024 Key Initiatives
2024 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: 2024 Guidance Summary
2024 Guidance Summary 11 Expect 2024 Consolidated Adjusted EBITDA(1) of $240M - $255M; 2024 Free Cash Flow(2) of $105M - $125M 2024 Metric Guidance* Adjusted EBITDA Consolidated (1) $240M - $255M Domestic Coke EBITDA $238M - $245M Logistics EBITDA $30M - $35M Domestic Coke Sales ~4.1M tons Domestic
Slide 12: Coke Facility Capacity and Contract Duration/Volume
Coke Facility Capacity and Contract Duration/Volume 12 (1) Contract Contract Facility Capacity Customer Expiry Volume Indiana Harbor 1,220 Kt Cliffs Steel Sep. 2035 Capacity Middletown 550 Kt (2) Cliffs Steel Dec. 2032 Capacity Haverhill II 550 Kt Cliffs Steel June 2025 Capacity Granite City 650 Kt
Slide 13: Balance Sheet & Debt Metrics
Balance Sheet & Debt Metrics 13 As of 3/31/2024 As of 12/31/2023 ($ in millions, except leverage ratios) Cash $ 120 $ 140 Available Revolver Capacity $ 350 $ 350 Total Liquidity $ 470 $ 490 Gross Debt (Long and Short-term) $ 500 $ 500 Net Debt (Total Debt less Cash) $ 380 $ 360 LTM Adjusted EBITDA $
Slide 14: 2024 Guidance Reconciliation
2024 Guidance Reconciliation 14 ($ in millions) Low High Net Income $67 $84 Depreciation and amortization expense 122 118 Interest expense, net 28 26 Income tax expense 23 27 Adjusted EBITDA (Consolidated) $240 $255 Free Cash Flow Guidance Reconciliation 2024E ($ in millions) Low High Operating Cash
Slide 15: Net Income to FCF Reconciliation
Net Income to FCF Reconciliation 15 2024E ($ in millions) Low End High End Net Income $67 $84 Depreciation and amortization expense 122 118 Interest expense, net 28 26 Income tax expense 23 27 Adjusted EBITDA (Consolidated) $240 $255 Cash interest (26) (24) Cash taxes (20) (25) Total capex (80) (75)
Slide 16: Reconciliation to Adjusted EBITDA
16 Reconciliation to Adjusted EBITDA ($ in millions) Q1 '23 Q2 '23 Q3 '23 Q4 '23 FY '23 Q1 '24 Net Income $ 17.7 $ 22.0 $ 8.5 $ 15.3 $ 63.5 $ 21.1 Depreciation and amortization expense 35.3 36.4 35.5 35.6 142.8 33.3 Interest expense, net 7.2 7.2 6.6 6.3 27.3 6.3 Income tax expense (benefit) 6.8 8.3
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 2024 Adjusted EBITDA $61.4 $2.4 $13.0 ($8.9) $67.9 Sales Volume (thousa
Slide 18: SunCoke Energy
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