Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — Q3 2021 Earnings Presentation
17 slides from Suncoke Energy's earnings presentation, Nov 1, 2021
Slide 1: SunCoke Energy, Inc. Q3 2021 Earnings Conference Call
SunCoke Energy, Inc. Q3 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 November 1, 2021 at 10:00 a.m. ET. This presentation call contains “forward‐looking statements” (as defin
Slide 3: Q3 2021 Highlights
Q3 2021 Highlights 3 Continued strong performance across coke and logistics operations Delivered Q3 ‘21 Adjusted EBITDA of $73.9M; representing record Q3 performance CMT recovered quickly from Hurricane Ida with only minor damage and minimal business disruption Export and foundry coke initia
Slide 4: Q3 2021 Financial Performance
Q3 2021 Financial Performance 4 Q3 2021 Earnings Review Q3 ‘21 EPS of $0.27, up $0.30 from the prior year ($/share) ($ in millions) (1) quarter Diluted EPS Adj. EBITDA +0.30 +54.6% • Absence of low volumes related to turndown agreements $0.27 Adjusted EBITDA(1) of $73.9M, up $26.1M from the $73.9 $4
Slide 5: Domestic Coke Business Summary
Domestic Coke Business Summary 5 Coke business driven by operational excellence, full capacity utilization and successful execution of export/ foundry coke initiatives Domestic Coke Performance Delivered Adj. EBITDA/ton(1) of ~$62 in (Coke Production, Kt) Q3 ‘21 vs. ~$56 in Q3 ‘20 $61/ton $62/ton $5
Slide 6: Logistics Business Summary
Logistics Business Summary 6 Surge in energy demand across the globe resulting in excellent demand and pricing environment for thermal coal benefiting Logistics Logistics Performance and Guidance • Logistics segment contributed $11.6M to (Tons Handled, Kt) Q3 ‘21 Adj. EBITDA $10.9M $11.4M $11.6M $6.
Slide 7: Q3 2021 Liquidity
Q3 2021 Liquidity 7 No significant debt maturity until 2026 as a result of debt refinancing; Continue to pay down revolver (Consolidated) Q3 ’21 Revolver Total Debt $615M Availability: (1) $235.9M Gross Leverage 2.46x (1) Net Leverage 2.25x ($ in millions) ($53.3) $79.4 ($18.4) $51.7 ($5.0) $54.6 $0
Slide 8: 2021 Initiatives
2021 Initiatives 8 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 b
Slide 9: Appendix
APPENDIX )
Slide 10: Definitions
Definitions 10 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 11: 2021 Revised Guidance Summary
2021 Revised Guidance Summary 11 Well positioned to modestly exceed Adjusted EBITDA guidance driven by success in export/ foundry coke markets 2021 2021 Metric Original Revised Guidance Guidance Adjusted EBITDA Consolidated(1) $215M ‐ $230M $255M ‐ $265M Domestic Coke EBITDA $219M ‐ $224M $234M ‐ $2
Slide 12: Balance Sheet & Debt Metrics
Balance Sheet & Debt Metrics 12 As of 9/30/2021 As of 12/31/2020 Cash $ 55 $ 48 Available Revolver Capacity $ 236 $ 300 Total Liquidity $ 291 $ 348 Gross Debt (Long and Short‐term) $ 615 $ 691 Net Debt (Total Debt less Cash) $ 560 $ 642 LTM Adj. EBITDA $ 250 $ 206 Gross Debt / LTM Adj. EBITDA 2.46x
Slide 13: 2021 Guidance Reconciliation
2021 Guidance Reconciliation 13 ($ 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 $265 Adjusted EBITDA attributable to noncontrolling i
Slide 14: SXC FCF/Share Reconciliation
SXC FCF/Share Reconciliation 14 2021E ($ in millions except per share amounts) Low End Low 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 $265 Cash interest (42) (38) C
Slide 15: Reconciliation to Adjusted EBITDA and Adjusted EBITDA attributable to SXC
Reconciliation to Adjusted EBITDA and Adjusted EBITDA 15 attributable to SXC Q3 '20 Q4 '20 FY '20 Q1 '21 Q2 '21 Q3 '21 ($ in millions) Net income (loss) attributable to SunCoke Energy, Inc. $ (2.7) $ (5.0) $ 3.7 $ 16.5 $ (8.8) $ 23.0 Net income attributable to noncontrolling interests 1.3 1.5 5.1 1.
Slide 16: Adjusted EBITDA and Adjusted EBITDA per ton
Adjusted EBITDA and Adjusted EBITDA per ton 16 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 Q3 2021 Adjusted EBITDA $65.1 $4.5 $11.6 ($7.3) $73.9 Sales Volume (thousa
Slide 17: SunCoke Energy
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