Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — Q4 2020 Earnings Presentation
25 slides from Suncoke Energy's earnings presentation, Feb 4, 2021
Slide 1: Q4 & FY 2020 Earnings and 2021 Guidance Conference Call
SunCoke Energy, Inc. Q4 & FY 2020 Earnings and 2021 Guidance Conference Call
Slide 2: Forward-Looking Statements
Forward‐Looking Statements 2 This slide presentation should be reviewed in conjunction with the Fourth Quarter and Full‐Year 2020 earnings release of SunCoke Energy, Inc. (SunCoke) and conference call held on February 4, 2021 at 10:30 a.m. ET. This presentation call contains “forward‐looking stateme
Slide 3: 2020 Year In Review
2020 Year In Review 3 Delivered FY 2020 results above expectations while continuing to navigate the COVID‐19 pandemic; renewed expiring contracts; reduced debt FY 2020 Objective 2020 Achievements Commentary • Delivered FY 2020 consolidated • Exceeded the revised guidance due to Deliver FY 2020 Conso
Slide 4: Q4 & FY 2020 Financial Performance
Q4 & FY 2020 Financial Performance 4 Q4 and FY 2020 Earnings Review Q4 ‘20 EPS of ($0.06) per share, down $0.04 per share from the prior year quarter ($/share) ($ in millions) Diluted EPS Adj. EBITDA (1) FY’20 EPS of $0.04, up $2.02 per share from the prior year period • FY ’19 EPS included impact o
Slide 5: Adjusted EBITDA – Q4 '19 to Q4 '20
Adjusted EBITDA(1) – Q4 ‘19 to Q4 ‘20 5 Q4 ‘20 performance driven by lower volumes offset partially by lower operating costs ($ in millions) $50.8 ($9.1) • Mainly due to higher non‐cash legacy liability expense ($1.8) ($2.9) $37.0 Q4 2019 (1) Domestic & Brazil Coke Logistics Corporate and Other Q4 2
Slide 6: Adjusted EBITDA – FY '19 to FY '20
Adjusted EBITDA(1) – FY ‘19 to FY ‘20 6 FY ‘20 performance driven by lower volumes from customer turndown agreement and impact of coal customer bankruptcy partially offset by lower operating costs ($ in millions) $247.9 ($12.2) ($25.3) • Lower volumes due to customer relief partially offset by ($4.5
Slide 7: FY 2020 Capital Deployment
FY 2020 Capital Deployment 7 Strong cash flow generation deployed strategically towards operational capital needs, deleveraging and dividends to shareholders 12/31/2019 12/31/2020 Revolver Total Debt $801M $691M Availability: Gross Leverage 3.23x 3.35x $300M ($ in millions) ($73.9) $157.8 $10.9M fou
Slide 8: 2021 Guidance
2021 GUIDANCE )
Slide 9: Coal/CMT Market Outlook
Market Outlook 9 Recent recovery in steel to continue in 2021; Long‐term coke demand outlook looks constructive; Export thermal coal market showing signs of strength; CMT exploring other bulk commodity products Domestic steel markets struggled early to mid‐year in 2020 due to COVID‐19 but rallied st
Slide 10: Projected 2021 Adjusted EBITDA Guidance
Projected 2021 Adjusted EBITDA Guidance 10 Expect 2021 consolidated Adjusted EBITDA of $215M ‐ $230M mainly driven by domestic coke plants running at full capacity, potential upside at CMT and lower corporate costs ($ in millions) $4 ‐ $8 $215 ‐ $230 $3 ‐ $8 $2 ‐ $7 $0 – $1 $205.9 • Running domestic
Slide 11: 2021 Domestic Coke Business Outlook
2021 Domestic Coke Business Outlook 11 Domestic Coke Adj. EBITDA expected to be $219M ‐ $224M; Expect to run at full capacity Domestic Coke Performance Anticipate a $2M to $7M increase in Domestic Coke Adj. EBITDA in $227M $219M ‐ $224M $217M 2021 mainly due to: • Running fleet at full capacity • Un
Slide 12: 2021 Logistics Business Outlook
2021 Logistics Business Outlook 12 Logistics Adjusted EBITDA guidance of $20M ‐ $25M; 2021 Logistics guidance includes potential to handle additional volumes and new products Logistics Performance 2021 Plan based on the new coal (Tons Handled, Kt) handling agreement with Javelin at CMT and potential
Slide 13: 2021 Guidance Summary
2021 Guidance Summary 13 Expected 2021 Adjusted EBITDA of $215M ‐ $230M; 2021 Free Cash Flow of $80M ‐ $100M 2020 2021 Metric Results Guidance Adjusted EBITDA Consolidated(1) $205.9M $215M ‐ $230M Domestic Coke EBITDA $217.0M $219M ‐ $224M Logistics EBITDA $17.3M $20M ‐ $25M (2) Domestic Coke Produc
Slide 14: 2021 Key Initiatives
2021 Key Initiatives 14 Deliver Operational Excellence and Optimize Asset Base • Continued strong operational and safety performance while optimizing asset utilization • Successfully execute on capital plan Support Full Capacity Utilization via Export and Foundry Sales • Further develop foundry cust
Slide 15: Appendix
APPENDIX )
Slide 16: Domestic Coke Business Summary
Domestic Coke Business Summary 16 Achieved FY ’20 Domestic Coke Adjusted EBITDA above the revised guidance range mainly driven by strong cost control Domestic Coke Performance (Coke Production, Kt) $57/ton $63/ton $54/ton $53‐$55/ton $60/ton $56/ton $48/ton $49/ton 4,168 4,120 3,840 615 600 1,073 1,
Slide 17: Logistics Business Summary
Logistics Business Summary 17 FY ’20 Logistics Adjusted EBITDA at the lower end of the guidance range driven by lower volumes mostly offset by operating cost discipline Logistics Performance (Tons Handled, Kt) $8.5M $6.7M $42.6M $3.3M $4.3M $3.0M $17.3M $20M ‐ $25M 21,053 4,971 17,000 – 18,500 4,214
Slide 18: Definitions
Definitions 18 Adjusted EBITDA represents earnings before interest, loss (gain) on extinguishment of debt, taxes, depreciation and amortization (“EBITDA”), adjusted for impairments, loss on extinguishment of debt, restructuring costs, changes to our contingent consideration liability related to our
Slide 19: Coke Facility Capacity and Contract Duration/Volume
Coke Facility Capacity and Contract Duration/Volume 19 (1) Contract Contract Facility Capacity Customer Expiry Volume Middletown 550 Kt (2) Cleveland Cliffs Dec. 2032 Capacity Haverhill II 550 Kt Cleveland Cliffs June 2025 Capacity Granite City 650 Kt US Steel Dec. 2024 Capacity Indiana Harbor 1,220
Slide 20: Balance Sheet & Debt Metrics
Balance Sheet & Debt Metrics 20 As of 12/31/2020 As of 12/31/2019 Cash $ 48.4 $ 97.1 Available Revolver Capacity $ 299.9 $ 244.5 Total Liquidity $ 348.3 $ 341.6 Gross Debt (Long and Short‐term) $ 690.5 $ 800.5 Net Debt (Total Debt less Cash) $ 642.1 $ 703.4 LTM Adj. EBITDA $ 205.9 $ 247.8 Gross Debt
Slide 21: 2021 Guidance Reconciliation
2021 Guidance Reconciliation 21 ($ in millions) Low High Net Income $15 $35 Depreciation and amortization expense 137 133 Interest expense, net 55 50 Income tax expense 8 12 Adjusted EBITDA (Consolidated) $215 $230 Adjusted EBITDA attributable to noncontrolling interest (1) (9) (9) Adjusted EBITDA a
Slide 22: SXC FCF/Share Reconciliation
SXC FCF/Share Reconciliation 22 2021E ($ in millions except per share amounts) Low End High End Net Income $15 $35 Depreciation and amortization expense 137 133 Interest expense, net 55 50 Income tax expense 8 12 Consolidated Adjusted EBITDA $215 $230 Cash interest (50) (45) Cash taxes (5) (10) Tota
Slide 23: Reconciliation to Adjusted EBITDA and Adjusted EBITDA attributable to SXC
Reconciliation to Adjusted EBITDA and Adjusted EBITDA 23 attributable to SXC ($ in millions) Q1 '19 Q2 '19 Q3 '19 Q4 '19 FY '19 Q1 '20 Q2 '20 Q3 '20 Q4 '20 FY '20 Net income (loss) attributable to SunCoke Energy, Inc. $ 9.8 $ 2.3 $ (163.0) $ (1.4) $ (152.3) $ 4.9 $ 6.5 $ (2.7) $ (5.0) $ 3.7 Net inco
Slide 24: Adjusted EBITDA and Adjusted EBITDA per ton
Adjusted EBITDA and Adjusted EBITDA per ton 24 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 FY 2020 Adjusted EBITDA $217.0 $13.5 $17.3 ($41.9) $205.9 Sales Volume (th
Slide 25: SunCoke Energy
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