Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — Q2 2021 Earnings Presentation
18 slides from Suncoke Energy's earnings presentation, Jul 29, 2021
Slide 1: SunCoke Energy, Inc. Q2 2021 Earnings Conference Call
SunCoke Energy, Inc. Q2 2021 Earnings Conference Call
Slide 2: Forward-Looking Statements
Forward‐Looking Statements 2 This slide presentation should be reviewed in conjunction with the Second Quarter 2021 earnings release of SunCoke Energy, Inc. (SunCoke) and conference call held on July 29, 2021 at 10:30 a.m. ET. This presentation call contains “forward‐looking statements” (as defined
Slide 3: Q2 2021 Highlights
Q2 2021 Highlights 3 Continued strong operating performance across coke and logistics Delivered Q2 ‘21 Adjusted EBITDA of $68.0M Executed debt refinancing which extends notes and revolver maturities while providing significant interest rate savings Export and foundry coke initiatives continu
Slide 4: Q2 2021 Financial Performance
Q2 2021 Financial Performance 4 Q2 2021 Earnings Review Q2 ‘21 EPS of ($0.11), down $0.19 from the prior ($/share) ($ in millions) (1) year quarter Diluted EPS Adj. EBITDA • Q2 ’21 EPS of ($0.11) reflects a ($0.27) impact $0.08 of debt extinguishment charges related to debt refinancing $68.0 $(0.11)
Slide 5: Adjusted EBITDA – Q2 '20 to Q2 '21
Adjusted EBITDA(1) – Q2 ‘20 to Q2 ‘21 5 Q2 ’21 performance mainly driven by higher volumes at CMT and continued strong performance by coke operations ($ in millions) $8.4 $0.0 $68.0 $59.0 $0.6 • Higher volumes Q2 2020 Domestic & Brazil Coke Logistics Corporate and Other Q2 2021 (1) (1) Adj. EBITDA A
Slide 6: Q2 2021 Liquidity
Q2 2021 Liquidity 6 No significant debt maturity until 2026 as a result of debt refinancing; Continue to target gross leverage ratio of lower than 3.0x (Consolidated) Q2 ’21 Revolver Total Debt $667M Availability: (1) $184.9M Gross Leverage 2.98x (1) Net Leverage 2.75x ($ in millions) $9.0 ($13.6) (
Slide 7: Domestic Coke Business Summary and 2021 Outlook
Domestic Coke Business Summary and 2021 Outlook 7 Coke business driven by full capacity utilization, including successful execution of export/ foundry coke initiatives; Now expect 2021 Domestic Coke Adj. EBITDA to be $234M ‐ $238M Domestic Coke Performance and Guidance Delivered Adj. EBITDA/ton(1) o
Slide 8: Logistics Business Summary and 2021 Outlook
Logistics Business Summary and 2021 Outlook 8 Strong commodities market continue to drive robust Logistics performance; Now expect 2021 Logistics Adj. EBITDA to be $45M ‐ $48M Logistics Performance and Guidance • Logistics segment contributed $11.4M to (Tons Handled, Kt) $10.9M $11.4M Q2 ‘21 Adj. EB
Slide 9: 2021 Revised Guidance Summary
2021 Revised Guidance Summary 9 Increasing Adjusted EBITDA guidance by approximately $40M driven by higher CMT volumes and success in export/ foundry coke markets 2021 2021 Metric Original Revised Guidance Guidance Adjusted EBITDA Consolidated(1) $215M ‐ $230M $255M ‐ $265M Domestic Coke EBITDA $219
Slide 10: 2021 Initiatives
2021 Initiatives 10 Deliver Operational Excellence and Optimize Asset Base • Continue strong safety and operational performance while optimizing asset utilization • Successfully execute on capital plan Support Full Capacity Utilization via Export and Foundry Sales • Further develop foundry customer
Slide 11: Appendix
APPENDIX )
Slide 12: Definitions
Definitions 12 Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted for any impairments, restructuring costs and gains or losses on extinguishment of debt. EBITDA and Adjusted EBITDA do not represent and should not be considered alternatives
Slide 13: Balance Sheet & Debt Metrics
Balance Sheet & Debt Metrics 13 As of 6/30/2021 As of 12/31/2020 Cash $ 52 $ 48 Available Revolver Capacity $ 185 $ 300 Total Liquidity $ 237 $ 348 Gross Debt (Long and Short‐term) $ 667 $ 691 Net Debt (Total Debt less Cash) $ 615 $ 642 LTM Adj. EBITDA $ 223 $ 206 Gross Debt / LTM Adj. EBITDA 2.98x
Slide 14: 2021 Guidance Reconciliation
2021 Guidance Reconciliation 14 ($ in millions) Low High Net Income $30 $40 Depreciation and amortization expense 137 133 Interest expense, net 47 44 Income tax expense 9 16 Loss on extinguishment of debt 32 32 Adjusted EBITDA (Consolidated) $255 $265 Adjusted EBITDA attributable to noncontrolling i
Slide 15: SXC FCF/Share Reconciliation
SXC FCF/Share Reconciliation 15 2021E ($ in millions except per share amounts) Low End High End Net Income $30 $40 Depreciation and amortization expense 137 133 Interest expense, net 47 44 Income tax expense 9 16 Loss on extinguishment of debt 32 32 Adjusted EBITDA $255 $265 Cash interest (42) (38)
Slide 16: Reconciliation to Adjusted EBITDA and Adjusted EBITDA attributable to SXC
Reconciliation to Adjusted EBITDA and Adjusted EBITDA 16 attributable to SXC Q1 '20 Q2 '20 Q3 '20 Q4 '20 FY '20 Q1 '21 Q2 '21 ($ in millions) Net income (loss) attributable to SunCoke Energy, Inc. $ 4.9 $ 6.5 $ (2.7) $ (5.0) $ 3.7 $ 16.5 $ (8.8) Net income attributable to noncontrolling interests 1.
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 ($ in millions, except per ton data) Coke Brazil Coke Logistics and Other(1) Consolidated Q2 2021 Adjusted EBITDA $61.4 $4.0 $11.4 ($8.8) $68.0 Sales Volume (thousa
Slide 18: SunCoke Energy
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