Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — Q2 2024 Earnings Presentation
18 slides from Suncoke Energy's earnings presentation, Jul 31, 2024
Slide 1: SunCoke Energy, Inc. Q2 2024 Earnings Conference Call
SunCoke Energy, Inc. Q2 2024 Earnings Conference Call
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 This presentation should be reviewed in conjunction with the second quarter 2024 earnings release of SunCoke Energy, Inc. (SunCoke) and conference call held on July 31, 2024 at 11:00 a.m. ET. This presentation contains “forward-looking statements” (as defined in Section
Slide 3: Q2 2024 Highlights
Q2 2024 Highlights 3 ✓ Delivered solid Q2 '24 Consolidated Adjusted EBITDA(1) of $63.5M ✓ Raised quarterly dividend from $0.10 to $0.12 per share, a 20% increase, demonstrating continued progress and stability in the underlying core business ✓ Continued strong operational performance across our coke
Slide 4: Q2 2024 Financial Performance
Q2 2024 Financial Performance 4 Q2 2024 Earnings Review • Q2 '24 EPS of $0.25, up $0.01 from the prior ($/share) ($ in millions) year quarter Diluted EPS Adjusted EBITDA(1) ▪ Lower depreciation, tax, and net interest +$0.01 -$10.5M expense, mostly offset by lower sales volumes and pricing in Domesti
Slide 5: Domestic Coke Business Summary
Domestic Coke Business Summary 5 Domestic Coke fleet continues to operate at full capacity; all spot blast and foundry coke sales finalized for the year Domestic Coke Performance • Delivered Adjusted EBITDA of (Coke Production, Kt) $57.9M in Q2 ‘24 vs $68.2M in $68.2M $64.0M Q2 ‘23 $55.2M $61.4M $57
Slide 6: Logistics Business Summary
Logistics Business Summary 6 Higher volumes driving healthy Logistics performance; now expect to exceed Logistics FY 2024 Adjusted EBITDA and volume guidance Logistics Performance • Delivered Adjusted EBITDA of (Tons Handled, Kt) $12.2M in Q2 ‘24 vs $11.7M in Q2 ‘23 $13.0M $12.2M $11.7M $10.7M $8.4M
Slide 7: Q2 2024 Liquidity
Q2 2024 Liquidity 7 Maintained strong liquidity position of $431.9M; timing of cash receipts impacted operating cash flow and cash balance for the quarter (Consolidated) Q2 '24 Revolver Total Debt $500M Availability: Gross Leverage (1) 1.93x $350M (1) Net Leverage 1.61x ($ in millions) $120.1 ($9.3)
Slide 8: 2024 Key Initiatives
2024 Key Initiatives 8 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 cokemakin
Slide 9: Appendix
APPENDIX )
Slide 10: Non-GAAP Financial Measures Definitions
10 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 11: 2024 Guidance Summary
2024 Guidance Summary 11 Expect 2024 Consolidated Adjusted EBITDA(1) at high end of $240M - $255M; well positioned to exceed FY 2024 Logistics Adjusted EBITDA guidance 2024 Metric Guidance* (1) $240M - $255M Adjusted EBITDA Consolidated Domestic Coke EBITDA $238M - $245M Logistics EBITDA $30M - $35M
Slide 12: Coke Facility Capacity and Contract Duration/Volume
Coke Facility Capacity and Contract Duration/Volume 12 (1) Contract Contract Facility Capacity Customer Expiry Volume Indiana Harbor 1,220 Kt Cliffs Steel Sep. 2035 Capacity Middletown 550 Kt (2) Cliffs Steel Dec. 2032 Capacity Haverhill II 550 Kt Cliffs Steel Jun. 2025 Capacity Granite City 650 Kt
Slide 13: Balance Sheet & Debt Metrics
Balance Sheet & Debt Metrics 13 As of 6/30/2024 As of 12/31/2023 ($ in millions) Cash $ 82 $ 140 Available Revolver Capacity $ 350 $ 350 Total Liquidity $ 432 $ 490 Gross Debt (Long and Short-term) $ 500 $ 500 Net Debt (Total Debt less Cash) $ 418 $ 360 LTM Adjusted EBITDA $ 259 $ 269 Gross Debt / L
Slide 14: 2024 Guidance Reconciliation
2024 Guidance Reconciliation 14 ($ 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 $255 Free Cash Flow Guidance Reconciliation 2024E ($ in millions) Low High Operating Cash
Slide 15: Net Income to FCF Reconciliation
Net Income to FCF Reconciliation 15 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 $255 Cash interest (26) (24) Cash taxes (20) (25) Total capex (80) (75)
Slide 16: Reconciliation to Adjusted EBITDA
16 Reconciliation to Adjusted EBITDA ($ in millions) Q1 '23 Q2 '23 Q3 '23 Q4 '23 FY '23 Q1 '24 Q2 '24 Net Income $ 17.7 $ 22.0 $ 8.5 $ 15.3 $ 63.5 $ 21.1 $ 23.3 Depreciation and amortization expense 35.3 36.4 35.5 35.6 142.8 33.3 28.7 Interest expense, net 7.2 7.2 6.6 6.3 27.3 6.3 5.8 Income tax exp
Slide 17: Adjusted EBITDA and Adjusted EBITDA per ton
Adjusted EBITDA and Adjusted EBITDA per ton 17 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) Q2 2024 Adjusted EBITDA $57.9 $2.5 $12.2 ($9.1) $63.5 Sales Volume (thousa
Slide 18: SunCoke Energy
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