Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — Q4 2022 Earnings Presentation
23 slides from Suncoke Energy's earnings presentation, Feb 2, 2023
Slide 1: SunCoke Energy, Inc. Q4 & FY 2022 Earnings and 2023 Guidance
SunCoke Energy, Inc. Q4 & FY 2022 Earnings and 2023 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 2022 earnings release of SunCoke Energy, Inc. (SunCoke) and conference call held on February 2, 2023 at 11:00 a.m. ET. This presentation contains “forward-looking statements” (as de
Slide 3: 2022 Year In Review
2022 Year In Review 3 Delivered record FY 2022 Adjusted EBITDA of $297.7M; achieved growth in foundry coke market; increased quarterly dividend; and significantly reduced debt FY 2022 Objective 2022 Achievements Commentary Surpass FY 2022 Consolidated Adj. • Highest Adjusted EBITDA in Company’s • De
Slide 4: Q4 & FY 2022 Financial Performance
Q4 & FY 2022 Financial Performance 4 Q4 and FY 2022 Earnings Review Q4 '22 EPS of $0.14 per share, down $0.01 versus prior year ($/share) ($ in millions) quarter Diluted EPS Adj. EBITDA(1) • Lower export coke contribution margins partially offset by lower +$0.67 +$22.3 interest expense FY '22 EPS of
Slide 5: Adjusted EBITDA – FY '21 to FY '22
Adjusted EBITDA(1) – FY ‘21 to FY '22 5 FY '22 performance driven by higher contribution margins on export coke sales and higher volumes & pricing in Logistics ($ in millions) $297.7 $6.2 ($1.2) $275.4 $17.3 Higher throughput Higher employee related volumes and higher prices expenses, partially offs
Slide 6: FY 2022 Capital Deployment
FY 2022 Capital Deployment 6 Strong cash flow generation deployed strategically towards operational capital needs, deleveraging, and increased dividends to shareholders (Consolidated) 12/31/2021 12/31/2022 Revolver Total Debt $627M $544M Availability: Gross Leverage (1) 2.28x 1.83x $315.0M Net Lever
Slide 7: 2023 Guidance
2023 GUIDANCE )
Slide 8: Projected 2023 Adjusted EBITDA Guidance
Projected 2023 Adjusted EBITDA Guidance 8 Expect 2023 consolidated Adjusted EBITDA (1) of $250M - $265M mainly driven by lower price realization on export coke sales ($ in millions) $297.7 ($22) – ($30) ($5) – ($6) ($3) - $0 ($6) – ($9) $250 - $265 Running at full capacity Lower due to expiration bu
Slide 9: 2023 Domestic Coke Business Outlook
2023 Domestic Coke Business Outlook 9 Domestic Coke Adj. EBITDA estimated to be $234M - $242M; Expect to run at full capacity with continued growth in foundry market Domestic Coke Performance • Continue to operate coke fleet at full (Coke Sales, Kt) capacity $263.4M • ~3,600Kt contracted furnace cok
Slide 10: 2023 Logistics Business Outlook
2023 Logistics Business Outlook 10 Logistics Adjusted EBITDA estimated to be $47M - $50M; Anticipate similar volumes at CMT year-over-year Logistics Performance 2023 outlook based on current (Tons Handled, Kt) expectations for thermal coal $43.5M $49.7M $47M - $50M export volumes and pricing 22,291
Slide 11: 2023 Guidance Summary
2023 Guidance Summary 11 Expect 2023 Consolidated Adjusted EBITDA of $250M - $265M; 2023 Free Cash Flow of $105M - $120M 2022 2023 Metric Results Guidance (1) Adjusted EBITDA Consolidated $297.7M $250M - $265M Domestic Coke EBITDA $263.4M $234M - $242M Logistics EBITDA $49.7M $47M - $50M (2) Domesti
Slide 12: 2023 Key Initiatives
2023 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 14 FY '22 Domestic Coke Adjusted EBITDA above the revised guidance range driven by high contribution margins on export coke sales Domestic Coke Performance (Coke Production, Kt) $76.0M $76.6M $263.4M $64.3M $243.4M $234M - $242M $53.4M $46.5M 4,162 4,023 4,000 1,031 1,
Slide 15: Logistics Business Summary
Logistics Business Summary 15 FY '22 Logistics Adjusted EBITDA strong results driven by strong volume/price as well as minimal high water costs at CMT Logistics Performance (Tons Handled, Kt) $12.6M $12.5M $12.9M $11.7M $49.7M $9.6M $43.5M $47M - $50M 5,809 5,721 22,291 ~22,000 5,525 5,236 19,933 4,
Slide 16: Non-GAAP Financial Measures Definitions
16 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 17 (1) Contract Contract Facility Capacity Customer Expiry Volume Middletown 550 Kt (2) Cliffs Steel Dec. 2032 Capacity Haverhill II 550 Kt Cliffs Steel June 2025 Capacity Granite City 650 Kt US Steel Dec. 2024 Capacity Indiana Harbor 1,220 Kt Clif
Slide 18: Balance Sheet & Debt Metrics
Balance Sheet & Debt Metrics 18 As of 12/31/2022 As of 12/31/2021 Cash $ 90 $ 64 Available Revolver Capacity $ 315 $ 229 Total Liquidity $ 405 $ 293 Gross Debt (Long and Short-term) $ 544 $ 627 Net Debt (Total Debt less Cash) $ 454 $ 563 LTM Adj. EBITDA $ 298 $ 275 Gross Debt / LTM Adj. EBITDA 1.83x
Slide 19: 2023 Guidance Reconciliation
2023 Guidance Reconciliation 19 ($ in millions) Low High Net Income $59 $76 Depreciation and amortization expense 136 132 Interest expense, net 31 29 Income tax expense 24 28 Adjusted EBITDA (Consolidated) $250 $265 Adjusted EBITDA attributable to noncontrolling interest(1) (9) (9) Adjusted EBITDA a
Slide 20: SXC FCF/Share Reconciliation
SXC FCF/Share Reconciliation 20 2023E ($ in millions except per share amounts) Low End High End Net Income $59 $76 Depreciation and amortization expense 136 132 Interest expense, net 31 29 Income tax expense 24 28 Adjusted EBITDA $250 $265 Cash interest (28) (26) Cash taxes (12) (16) Total capex (95
Slide 21: Reconciliation to Adjusted EBITDA and Adjusted EBITDA attributable to SXC
Reconciliation to Adjusted EBITDA and Adjusted EBITDA 21 attributable to SXC ($ in millions) Q4 '21 FY '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 FY '22 Net income (loss) attributable to SunCoke Energy, Inc. $ 12.7 $ 43.4 $ 29.5 $ 18.0 $ 41.4 $ 11.8 $ 100.7 Net income attributable to noncontrolling interests 1
Slide 22: Adjusted EBITDA and Adjusted EBITDA per ton
Adjusted EBITDA and Adjusted EBITDA per ton 22 Reconciliation of Segment Adjusted EBITDA and Adjusted EBITDA per Ton Domestic Corporate and Brazil Coke Logistics Consolidated ($ in millions, except per ton data) Coke Other(1) FY 2022 Adjusted EBITDA $263.4 $14.5 $49.7 ($29.9) $297.7 Sales Volume (th
Slide 23: SunCoke Energy
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