Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — Q4 2023 Earnings Presentation
23 slides from Suncoke Energy's earnings presentation, Feb 1, 2024
Slide 1: Q4 & FY 2023 Earnings and 2024 Guidance Conference Call
SunCoke Energy, Inc. Q4 & FY 2023 Earnings and 2024 Guidance Conference Call
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 This presentation should be reviewed in conjunction with the Fourth Quarter and Full-Year 2023 earnings release of SunCoke Energy, Inc. (SunCoke) and conference call held on February 1, 2024 at 11:00 a.m. ET. This presentation contains “forward-looking statements” (as de
Slide 3: 2023 Year In Review
2023 Year In Review 3 Delivered FY 2023 Adjusted EBITDA(1) of $268.8M; continued success in foundry coke market; increased quarterly dividend; and further reduced debt FY 2023 Objective 2023 Achievements Commentary Achieve FY 2023 Consolidated Adj. • Delivered FY 2023 consolidated Adj. • Exceeded gu
Slide 4: Q4 & FY 2023 Financial Performance
Q4 & FY 2023 Financial Performance 4 Q4 and FY 2023 Earnings Review Q4 ‘23 EPS of $0.16 per share, up $0.02 versus prior year quarter ($/share) ($ in millions) FY ‘23 EPS of $0.68, down $0.51 per share from the prior year (1) Diluted EPS Adj. EBITDA period -$0.51 -$28.9 • Primarily due to tax law ch
Slide 5: Adjusted EBITDA – FY '22 to FY '23
(1) Adjusted EBITDA – FY ‘22 to FY ‘23 5 FY ‘23 performance impacted by lower contribution margins on non-contracted blast coke sales and lower volumes in the Logistics segment ($ in millions) $297.7 ($21.0) ($5.4) $268.8 ($2.5) Lower contribution margins from non-contracted blast coke Lower through
Slide 6: FY 2023 Capital Deployment
FY 2023 Capital Deployment 6 Strong cash flow generation deployed strategically towards operational capital needs, deleveraging, and increased dividends to shareholders (Consolidated) 12/31/2022 12/31/2023 Revolver Total Debt $544M $500M Availability: Gross Leverage (1) 1.83x 1.86x $350.0M Net Lever
Slide 7: 2024 Guidance
2024 GUIDANCE )
Slide 8: Projected 2024 Adjusted EBITDA Guidance
(1) Projected 2024 Adjusted EBITDA Guidance 8 Expect 2024 consolidated Adjusted EBITDA (1) of $240M - $255M mainly driven by lower volumes and pricing at CMT ($ in millions) $268.8 ($3) – ($10) $0 – $1 ($9) – ($14) ($3) – ($5) $240 - $255 Running at full capacity but expect lower coal-to-coke yields
Slide 9: 2024 Domestic Coke Business Outlook
2024 Domestic Coke Business Outlook 9 Domestic Coke Adjusted EBITDA estimated to be $238M - $245M; expect to run full with non-contracted capacity sold in spot blast and foundry coke markets Domestic Coke Performance • Continue to operate coke fleet at full capacity (Coke Sales, Kt) $247.8M $238M -
Slide 10: 2024 Logistics Business Outlook
2024 Logistics Business Outlook 10 Logistics Adjusted EBITDA estimated to be $30M - $35M driven by significantly weaker market conditions at CMT impacting both volumes and pricing Logistics Performance 2024 outlook based on low expectations (Tons Handled, Kt) for thermal coal export volumes and pric
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 2023 2024 Metric Results Guidance Adjusted EBITDA Consolidated (1) $268.8M $240M - $255M Domestic Coke EBITDA $247.8M $238M - $245M Logistics EBITDA $44.3M $30M - $35M Domes
Slide 12: 2024 Key Initiatives
2024 Key Initiatives 12 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 cokemaki
Slide 13: Appendix
APPENDIX )
Slide 14: Domestic Coke Business Summary
Domestic Coke Business Summary 15 FY ‘23 Domestic Coke Adjusted EBITDA driven by strong operational performance; expect lower coal-to-coke yield value driven by lower coal prices in 2024 Domestic Coke Performance (Coke Production, Kt) $68.2M $247.8M $64.0M $238M - $245M $60.4M $55.2M $46.5M 4,049 4,
Slide 15: Logistics Business Summary
Logistics Business Summary 16 FY ‘23 Logistics Adjusted EBITDA results impacted by weak commodity markets; expect soft demand and pricing to persist in 2024 Logistics Performance (Tons Handled, Kt) $44.3M $13.5M $11.7M $11.7M $10.7M $30M - $35M $8.4M 20,483 5,525 ~19,400 5,309 5,191 4,961 5,022 2,94
Slide 16: Non-GAAP Financial Measures Definitions
17 NON-GAAP FINANCIAL MEASURES In order to assist readers in understanding the core operating results that our management uses to evaluate the business, we describe our non- GAAP measures referenced in this presentation below. In addition to U.S. GAAP measures, this presentation contains certain non
Slide 17: Coke Facility Capacity and Contract Duration/Volume
Coke Facility Capacity and Contract Duration/Volume 18 Contract Contract Facility Capacity (1) Customer Expiry Volume Indiana Harbor 1,220 Kt Cliffs Steel Sep. 2035 Capacity Middletown 550 Kt (2) Cliffs Steel Dec. 2032 Capacity Haverhill II 550 Kt Cliffs Steel June 2025 Capacity Granite City 650 Kt
Slide 18: Balance Sheet & Debt Metrics
Balance Sheet & Debt Metrics 19 As of 12/31/2023 As of 12/31/2022 ($ in millions) Cash $ 140 $ 90 Available Revolver Capacity $ 350 $ 315 Total Liquidity $ 490 $ 405 Gross Debt (Long and Short-term) $ 500 $ 544 Net Debt (Total Debt less Cash) $ 360 $ 454 LTM Adjusted EBITDA $ 269 $ 298 Gross Debt /
Slide 19: 2024 Guidance Reconciliation / Free Cash Flow Reconciliation
2024 Guidance Reconciliation 20 ($ 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 $255 Free Cash Flow Reconciliation 2023 2024E ($ in millions) Actuals Low High Operating
Slide 20: Net Income to FCF Reconciliation
Net Income to FCF Reconciliation 21 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 $255 Cash interest (26) (24) Cash taxes (20) (25) Total capex (80) (75)
Slide 21: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA 22 ($ in millions) Q4 '22 FY '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 FY '23 Net Income $ 12.8 $104.9 $ 17.7 $ 22.0 $ 8.5 $ 15.3 $ 63.5 Depreciation and amortization expense 35.8 142.5 35.3 36.4 35.5 35.6 142.8 Interest expense, net 7.7 32.0 7.2 7.2 6.6 6.3 27.3 Income tax e
Slide 22: Adjusted EBITDA and Adjusted EBITDA per ton
Adjusted EBITDA and Adjusted EBITDA per ton 23 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) FY 2023 Adjusted EBITDA $247.8 $9.1 $44.3 ($32.4) $268.8 Sales Volume (tho
Slide 23: SunCoke Energy
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