Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — Q3 2024 Earnings Presentation
19 slides from Suncoke Energy's earnings presentation, Oct 31, 2024
Slide 1: SunCoke Energy, Inc. Q3 2024 Earnings Conference Call
SunCoke Energy, Inc. Q3 2024 Earnings Conference Call
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 This presentation should be reviewed in conjunction with the third quarter 2024 earnings release of SunCoke Energy, Inc. (SunCoke) and conference call held on October 31, 2024 at 11:00 a.m. ET. This presentation contains “forward-looking statements” (as defined in Sectio
Slide 3: Q3 2024 Highlights
Q3 2024 Highlights 3 ✓ Delivered solid Q3 '24 Consolidated Adjusted EBITDA(1) of $75.3M • Includes a one-time gain of $9.5M resulting from a U.S. Department of Labor (DOL) regulatory exemption, eliminating the majority of legacy black lung liabilities ✓ Solid operational performance from coke and lo
Slide 4: 2024 Key Initiatives Update
2024 Key Initiatives Update 4 ✓ Reached an agreement with the DOL regarding legacy black lung liabilities • In exchange for a one-time payment of $36M to the DOL, SunCoke received a regulatory exemption, eliminating the majority ($45.5M) of accrued black lung liabilities • Lower annual legacy expens
Slide 5: Q3 2024 Financial Performance
Q3 2024 Financial Performance 5 Q3 2024 Earnings Review • Q3 '24 EPS of $0.36, up $0.28 from the prior ($/share) ($ in millions) year quarter (1) Diluted EPS Adjusted EBITDA ▪ Primarily driven by gain on elimination of the +$0.28 +$9.9 M majority of legacy black lung liabilities, lower depreciation,
Slide 6: Domestic Coke Business Summary
Domestic Coke Business Summary 6 Domestic Coke fleet continues to operate at full capacity; revising Domestic Coke Adjusted EBITDA guidance range Domestic Coke Performance • Delivered Adjusted EBITDA of $58.1M (Coke Production, Kt) in Q3 ‘24 vs $64.0M in Q3 ‘23 ▪ Domestic Coke fleet continues to $64
Slide 7: Logistics Business Summary
Logistics Business Summary 7 Higher volumes and API2 price adjustment driving Logistics performance; increasing Logistics Adjusted EBITDA guidance range to $47M - $52M Logistics Performance • Delivered Adjusted EBITDA of $13.7M in Q3 ‘24 vs $8.4M in Q3 ‘23 (Tons Handled, Kt) ▪ Logistics performance
Slide 8: Q3 2024 Liquidity
Q3 2024 Liquidity 8 Maintained strong liquidity position of $514.7M (Consolidated) Q3 '24 Revolver Total Debt $500M Availability: Gross Leverage (1) 1.86x $350M (1) Net Leverage 1.24x ($ in millions) ($15.1) ($10.1) $164.7 $0.8 $107.2 Dividend of $0.12 per share $81.9 Includes impact of $36M payment
Slide 9: 2024 Key Initiatives
2024 Key Initiatives 9 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 10: Appendix
APPENDIX )
Slide 11: Non-GAAP Financial Measures Definitions
11 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 12: 2024 Guidance Summary
2024 Guidance Summary 12 Increasing 2024 Consolidated Adjusted EBITDA(1) guidance to $260M-$270M; lowering OCF guidance, driven by one-time payment to the DOL 2024 Original 2024 Revised Metric Guidance Guidance* (1) $240M - $255M $260M - $270M Adjusted EBITDA Consolidated Domestic Coke EBITDA $238M
Slide 13: Coke Facility Capacity and Contract Duration/Volume
Coke Facility Capacity and Contract Duration/Volume 13 (1) Contract Contract Facility Capacity Customer Expiry Volume Indiana Harbor 1,220 Kt Cliffs Steel Sep. 2035 Capacity Middletown 550 Kt (2) Cliffs Steel Dec. 2032 Capacity Haverhill II 550 Kt Cliffs Steel Jun. 2025 Capacity (3) Granite City 650
Slide 14: Balance Sheet & Debt Metrics
Balance Sheet & Debt Metrics 14 As of 9/30/2024 As of 12/31/2023 ($ in millions) Cash $ 165 $ 140 Available Revolver Capacity $ 350 $ 350 Total Liquidity $ 515 $ 490 Gross Debt (Long and Short-term) $ 500 $ 500 Net Debt (Total Debt less Cash) $ 335 $ 360 LTM Adjusted EBITDA $ 269 $ 269 Gross Debt /
Slide 15: 2024 Guidance Reconciliation and Free Cash Flow Guidance
2024 Guidance Reconciliation 15 ($ in millions) Low High Net Income $85 $97 Depreciation and amortization expense 122 118 Interest expense, net 28 26 Income tax expense 25 29 Adjusted EBITDA (Consolidated) $260 $270 Free Cash Flow Guidance Reconciliation 2024E ($ in millions) Low High Operating Cash
Slide 16: Net Income to FCF Reconciliation
Net Income to FCF Reconciliation 16 2024E ($ in millions) Low End High End Net Income $85 $97 Depreciation and amortization expense 122 118 Interest expense, net 28 26 Income tax expense 25 29 Adjusted EBITDA (Consolidated) $260 $270 Cash interest (26) (24) Cash taxes (16) (20) Total capex (80) (75)
Slide 17: Reconciliation to Adjusted EBITDA
17 Reconciliation to Adjusted EBITDA ($ in millions) Q1 '23 Q2 '23 Q3 '23 Q4 '23 FY '23 Q1 '24 Q2 '24 Q3 '24 Net Income $ 17.7 $ 22.0 $ 8.5 $ 15.3 $ 63.5 $ 21.1 $ 23.3 $ 33.3 Depreciation and amortization expense 35.3 36.4 35.5 35.6 142.8 33.3 28.7 28.1 Interest expense, net 7.2 7.2 6.6 6.3 27.3 6.3
Slide 18: Adjusted EBITDA and Adjusted EBITDA per ton
Adjusted EBITDA and Adjusted EBITDA per ton 18 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) Q3 2024 Adjusted EBITDA $58.1 $2.5 $13.7 $1.0 $75.3 Sales Volume (thousand
Slide 19: SunCoke Energy
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