Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — Q3 2022 Earnings Presentation
18 slides from Suncoke Energy's earnings presentation, Oct 31, 2022
Slide 1: SunCoke Energy, Inc. Q3 2022 Earnings Conference Call
SunCoke Energy, Inc. Q3 2022 Earnings Conference Call
Slide 2: Forward-looking statements
2 This slide presentation should be reviewed in conjunction with the Third Quarter 2022 earnings release of SunCoke Energy, Inc. (SunCoke) and conference call held on October 31, 2022 at 11:00 a.m. ET. This presentation contains “forward-looking statements” (as defined in Section 27A of the Securiti
Slide 3: Q3 2022 Highlights
3Q3 2022 Highlights Delivered Q3 ‘22 Adjusted EBITDA(1) of $83.7M, representing record third quarter performance • Continued strong performance across our coke and logistics operations along with high margin on export coke sales Export and foundry coke businesses continued to perform well in Q3
Slide 4: Q3 2022 Financial Performance
4Q3 2022 Financial Performance (1) See appendix for a definition and reconciliation of Adjusted EBITDA (2) Coke Adjusted EBITDA includes Domestic Coke and Brazil Coke (3) Q3 ’22 Corporate and Other Adj. EBITDA includes activity from our legacy coal mining business ($/share) ($ in millions) Adj. EBIT
Slide 5: Q3 2022 Liquidity
5 $63.4 $59.3 $54.4 Net Change in DebtCash @ Q2 2022 Dividends ($33.8) Net Cash Provided by Ops. Activities ($21.7) ($6.6) CapEx $3.6 Other Cash @ Q3 2022 Revolver Availability: $283.0M (Consolidated) Q3 ’22 Total Debt $577M Gross Leverage(1) 1.91x Net Leverage(1) 1.71x (1) Gross leverage and Net le
Slide 6: Domestic Coke Performance
6 Domestic Coke Performance Domestic Coke Business Summary 147 136 111 132 122 298 309 296 295 306 280 275 258 270 277 174 169 158 170 172 142 142 152 131 151 1,028 $65.1M Q3 ’21 $53.4M Q2 ’22Q4 ’21 997 $76.0M Q1 ’22 $64.3M $76.6M Q3 ’22 1,041 1,031 975 Adjusted EBITDA Middletown Granite City Haverh
Slide 7: Logistics Performance
7Logistics Business Summary (Tons Handled, Kt) • Logistics segment contributed $12.9M to Q3 ‘22 Adj. EBITDA Higher volumes and pricing vs Q3 ‘21 • Expect strong performance to continue through remainder of the year • Logistics Full Year 2022 Adjusted EBITDA guidance of $48M - $52M remains unchange
Slide 8: 2022 Key Initiatives
8 • Execute Foundry coke expansion project and grow market participation for long-term success • Support full capacity utilization of cokemaking assets Build on the Commercial Success of Foundry/Export Business 2022 Key Initiatives • Surpass Adjusted EBITDA guidance high end of $285M Achieve 2022 Fi
Slide 9: Appendix
APPENDIX im
Slide 10: Adjusted EBITDA definition
10 Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted for any impairments, restructuring costs, gains or losses on extinguishment of debt and transaction costs (“Adjusted EBITDA”). EBITDA and Adjusted EBITDA do not represent and should not
Slide 11: 2022 Revised Guidance Summary
112022 Revised Guidance Summary Well positioned to surpass Adjusted EBITDA guidance due to higher margins on export coke sales and API2 coal price benefit at CMT (1) See appendix for a definition and reconciliation of Adjusted EBITDA (2) Domestic coke sales for 2022 estimate includes production for
Slide 12: Coke Facility Capacity and Contract Duration/Volume
12Coke Facility Capacity and Contract Duration/Volume (1) Capacity represents blast furnace equivalent production capacity (2) Represents production capacity for blast-furnace sized coke, however, customer takes all on a “run of oven” basis, which represents >600k tons per year. Facility Capacity (1
Slide 13: Balance Sheet & Debt Metrics
13Balance Sheet & Debt Metrics 2022 2023 2024 2025 2026 2027 2028 2029 Consolidated Total Sr. Notes -$ -$ -$ -$ -$ -$ -$ 500.0$ 500.0$ Sale Leaseback 0.8 3.3 5.5 - - - - - 9.6 Revolver - - - - 67.0 - - - 67.0 Total 0.8$ 3.3$ 5.5$ -$ 67.0$ -$ -$ 500.0$ 576.6$ As of 9/30/2022 ($ in millions) As of 9/3
Slide 14: 2022 Guidance Reconciliation
142022 Guidance Reconciliation (1) Reflects non-controlling interest in Indiana Harbor (2) Costs incurred as part of the granulated pig iron project with U.S. Steel Free Cash Flow Reconciliation ($ in millions) Low High Operating Cash Flow $200 $215 Capital Expenditures (80) (80) Free Cash Flow (FCF
Slide 15: SXC FCF/Share Reconciliation
15SXC FCF/Share Reconciliation (1) Costs incurred as part of the granulated pig iron project with U.S. Steel Low End High End Net Income $73 $92 Depreciation and amortization expense 145 140 Interest expense, net 33 31 Income tax expense 16 20 Transaction Costs (1) 3 2 Adjusted EBITDA $270 $285 Cash
Slide 16: Reconciliation to Adjusted EBITDA and Adjusted EBITDA attributable to SXC
16Reconciliation to Adjusted EBITDA and Adjusted EBITDA attributable to SXC (1) Reflects non-controlling interests in Indiana Harbor and the portion of the Partnership owned by public unitholders prior to the closing of the Simplification Transaction (2) Costs incurred as part of the granulated pig
Slide 17: Adjusted EBITDA and Adjusted EBITDA per ton
17Adjusted EBITDA and Adjusted EBITDA per ton (1) Corporate and Other includes the results of our legacy coal mining business. Reconciliation of Segment Adjusted EBITDA and Adjusted EBITDA per Ton ($ in millions, except per ton data) Domestic Coke Brazil Coke Logistics Corporate and Other(1) Consoli
Slide 18: SunCoke Energy
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