Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — FY2019 Earnings Presentation
25 slides from Suncoke Energy's earnings presentation, Jan 29, 2020
Slide 1: Q4 & FY 2019 Earnings and 2020 Guidance Conference Call
SunCoke Energy, Inc. Q4 & FY 2019 Earnings and 2020 Guidance Conference Call Exhibit 99.2
Slide 2: Forward-Looking Statements
This slide presentation should be reviewed in conjunction with the Fourth Quarter 2019 earnings release of SunCoke Energy, Inc. (SunCoke) and conference call held on January 29, 2020 at 10:00 a.m. ET. Except for statements of historical fact, information contained in this presentation constitutes “f
Slide 3: 2019 Year In Review
2019 Year In Review Delivered FY 2019 results within the revised guidance range despite continued challenges at Logistics; Domestic Coke Adj. EBITDA above guidance range FY 2019 Objective 2019 Achievements Commentary Deliver FY 2019 Consolidated Adj. EBITDA(1) of $240M – $250M Generate $150M – $160M
Slide 4: Q4 & FY 2019 Financial Performance
Q4 & FY 2019 Financial Performance Q4 ‘19 EPS of ($0.02) down 5 cents as compared to Q4 ‘18 FY ’19 EPS of ($1.98) includes impact of CMT long-lived asset and Logistics goodwill impairment related charges of ($2.27) per share Excluding the non-cash charges, FY ’19 Adjusted EPS(1) was $0.29 per share,
Slide 5: Adjusted EBITDA – Q4 '18 to Q4 '19
Adjusted EBITDA(1) – Q4 ‘18 to Q4 ‘19 ($0.6) ($9.8) $65.9 $50.8 See appendix for a definition and reconciliation of Adjusted EBITDA (1) Impact of coal export customer bankruptcy Lower volumes at other logistics terminals ($ in millions) (1) Q4 ‘19 performance impacted by coal export customer bankrup
Slide 6: Adjusted EBITDA – FY '18 to FY '19
Adjusted EBITDA(1) – FY ‘18 to FY ‘19 $16.4 ($30.0) $247.9 See appendix for a definition and reconciliation of Adjusted EBITDA (1) Higher volumes at IHO Shorter duration and scope of outage work at GCO Impact of coal export customer bankruptcy ($ in millions) (1) Strong domestic coke performance off
Slide 7: FY 2019 Capital Deployment
Revolver Availability: $244.5M 12/31/2018 12/31/2019 Total Debt $859M $801M Gross Leverage(1) 3.26x 3.23x Gross leverage calculated using FY 2018 and FY 2019 Adjusted EBITDA respectively Average bond repurchase price of $0.934 per $1.00 face value (8.95% YTW), resulting in ~$50M of face value SXCP n
Slide 8: 2020 Guidance
2020 GUIDANCE )
Slide 9: Market: 2019 Recap and Future Outlook
Market: 2019 Recap and Future Outlook Expect more of the same for domestic steel and coal export markets in the short-term; Long-term coke demand outlook looks constructive Domestic steel markets struggled in 2019 despite tariffs and import duties “Price recession” caused HRC benchmark to dip to a l
Slide 10: Projected 2020 Adjusted EBITDA Guidance
Projected 2020 Adjusted EBITDA Guidance $247.9 $16-$20 $0 -($1) ($23)-($26) $0-($2) $235 - $245 See appendix for a definition and reconciliation of Adjusted EBITDA (1) ($ in millions) Expect 2020 Consolidated Adjusted EBITDA of $235M - $245M mainly driven by higher volumes at Indiana Harbor offset b
Slide 11: 2020 Domestic Coke Business Outlook
2020 Domestic Coke Business Outlook Expect Strong Domestic Coke operations in 2020; Domestic Coke Adj. EBITDA expected to be $243M - $247M Domestic Coke Performance $243M - $247M ~4,300Kt Kt Kt $M $M Anticipate a $16M to $20M increase in Domestic Coke Adj. EBITDA in 2020 mainly due to: IHO expected
Slide 12: 2020 Logistics Business Outlook
2020 Logistics Business Outlook 2020 Logistics guidance assumes revised economics with Foresight Energy at CMT; Logistics Adjusted EBITDA guidance of $17M - $20M Logistics Performance $42.6M M ~ $17M - $20M ~13,200 2020 Plan assumes renegotiation of coal handling contract for coal export customer at
Slide 13: 2020 Guidance Summary
2020 Guidance Summary See appendix for a definition and reconciliation of Adjusted EBITDA. Capital expenditures exclude the impact of capitalized interest. Included in Operating Cash Flow. Expect 2020 Adjusted EBITDA of $235M - $245M; 2020 Capex of $70M - $80M Based on 2019 results and mid-point of
Slide 14: Capital Allocation Priorities
Capital Allocation Priorities Capital allocation tools deployed in 2019 demonstrate SXC’s financial flexibility; Will remain disciplined, opportunistic and nimble to maximize stakeholders value long-term Capital Allocation Priorities Organic Growth Projects, Capital Expenditures and M&A Return Addit
Slide 15: 2020 Key Initiatives
Continued strong operational and safety performance while optimizing asset utilization Successfully execute on capital plan Deliver Operations Excellence and Optimize Asset Base Revitalize Convent Marine Terminal with new product and customer mix New Customer and Business Development at CMT Successf
Slide 16: Appendix
APPENDIX ) |
Slide 17: Domestic Coke Performance
Domestic Coke Performance Domestic Coke Business Summary /ton /ton /ton $55/ton /ton Sales Tons (Coke Production, Kt) Q4 ’19 Adjusted EBITDA of $52.1M and Adjusted EBITDA/ton of ~$48/ton Delivered FY ’19 Domestic Coke Adj. EBITDA of $226.7M, above full-year guidance of $217M - $223M Increase of ~$19
Slide 18: Logistics Business Summary
Logistics Business Summary M M M M M (Tons Handled, Kt) Logistics segment contributed $8.5M to Q4’ 19 and $42.6M to FY Adj. EBITDA CMT contributed $5.2M to Q4 ‘19 and $31.1M to FY Adj. EBITDA Logistics year over year lower by ~$30M mainly due to coal export customer bankruptcy Depressed export prici
Slide 19: 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, changes to our contingent consideration liability related to our acquisition of CMT, loss on the disp
Slide 20: Reconciliation to Adjusted EBITDA, Adjusted Net Income and Adjusted EPS
Reconciliation to Adjusted EBITDA, Adjusted net income attributable to SXC and Adjusted EPS In June 2018, the Company recorded a loss in connection with the disposal of our interest in VISA SunCoke Limited. In connection with the CMT acquisition, the Company entered into a contingent consideration a
Slide 21: 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 22: Balance Sheet & Debt Metrics
Balance Sheet & Debt Metrics 22 2 97 $ 146 Cash Available Revolver Capacity 245, 254 Total Liquidity $ 342_$ 400 Gross Debt (Long and Short-term) $ 801 $ 859 Net Debt (Total Debt less Cash) $ 704 $ 713 2019 FY Adj. EBITDA $ 248 $ 263 Gross Debt / 2019 FY Adj. EBITDA 3.23x 3.26x Net Debt / 2019 FY Ad
Slide 23: 2020 Guidance Reconciliation
2020 Guidance Reconciliation Reflects non-controlling interest in Indiana Harbor.
Slide 24: SXC FCF/Share
SXC FCF/Share In connection with the CMT acquisition, the Partnership entered into a contingent consideration arrangement that requires the Partnership to make future payments to the seller based on future volume over a specified threshold, price and contract renewals. Adjustments to the fair value
Slide 25: SunCoke Energy
SunCoke Energy”