Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — Q3 2023 Earnings Presentation
18 slides from Suncoke Energy's earnings presentation, Nov 1, 2023
Slide 1: SunCoke Energy, Inc. Q3 2023 Earnings Conference Call
SunCoke Energy, Inc. Q3 2023 Earnings Conference Call
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 This presentation should be reviewed in conjunction with the third quarter 2023 earnings release of SunCoke Energy, Inc. (SunCoke) and conference call held on November 1, 2023 at 11:00 a.m. ET. This presentation contains “forward-looking statements” (as defined in Sectio
Slide 3: Q3 2023 Highlights
Q3 2023 Highlights 3 Delivered Q3 '23 Consolidated Adjusted EBITDA(1) of $65.4M Solid operating performance from our coke and logistics operations Continue to successfully navigate through challenging market conditions Declared cash dividend of $0.10 per share, payable on December 1, 2023
Slide 4: Q3 2023 Financial Performance
Q3 2023 Financial Performance 4 Q3 2023 Earnings Review • Q3 '23 EPS of $0.08, down $0.41 from the ($/share) ($ in millions) prior year quarter Diluted EPS Adjusted EBITDA(1) Primarily due to tax law changes in the U.S. and -$0.41 -$18.3M Brazil in 2022 and 2023, the quarter-over- quarter impact o
Slide 5: Domestic Coke Business Summary
Domestic Coke Business Summary 5 Domestic coke fleet delivered solid operational performance; Challenging market conditions for non-contracted blast coke sales Domestic Coke Performance • Delivered Adjusted EBITDA of (Coke Production, Kt) $64.0M in Q3 '23 vs $76.6M in Q3 $76.6M '22 $68.2M $60.4M $64
Slide 6: Logistics Business Summary
Logistics Business Summary 6 Weaker commodity markets continue to drive lower volumes at CMT Logistics Performance • Logistics segment contributed (Tons Handled, Kt) $8.4M to Q3 '23 Adjusted EBITDA $12.9M $13.5M Lower volumes at CMT during Q3 $11.7M $11.7M due to weaker commodity markets $8.4M 5,7
Slide 7: Q3 2023 Liquidity
Q3 2023 Liquidity 7 Maintained strong liquidity position of ~$476M (Consolidated) Q3 '23 Revolver Total Debt $506M Availability: $350.0M Gross Leverage(1) 1.91x Net Leverage(1) 1.43x ($ in millions) ($0.8) ($34.1) ($8.4) $125.9 $93.7 ($2.7) Dividend of $0.10 per share $78.2 Release of ~$30M in worki
Slide 8: 2023 Key Initiatives
2023 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: 2023 Guidance Summary
2023 Guidance Summary 11 Expect 2023 Consolidated Adjusted EBITDA at the high end of $250M - $265M; 2023 Free Cash Flow of $105M - $120M 2023 Metric Guidance (1) $250M - $265M Adjusted EBITDA Consolidated Domestic Coke EBITDA $234M - $242M Logistics EBITDA $47M - $50M Domestic Coke Sales(2) ~4M tons
Slide 12: Coke Facility Capacity and Contract Duration/Volume
Coke Facility Capacity and Contract Duration/Volume 12 (1) Contract Contract Facility Capacity Customer Expiry Volume Indiana Harbor 1,220 Kt Cliffs Steel Sep. 2035 Capacity Middletown 550 Kt (2) Cliffs Steel Dec. 2032 Capacity Haverhill II 550 Kt Cliffs Steel June 2025 Capacity Granite City 650 Kt
Slide 13: Balance Sheet & Debt Metrics
Balance Sheet & Debt Metrics 13 As of 9/30/2023 As of 12/31/2022 ($ in millions, except leverage ratios) Cash $ 126 $ 90 Available Revolver Capacity $ 350 $ 315 Total Liquidity $ 476 $ 405 Gross Debt (Long and Short-term) $ 506 $ 544 Net Debt (Total Debt less Cash) $ 380 $ 454 LTM Adjusted EBITDA $
Slide 14: 2023 Guidance Reconciliation Free Cash Flow Reconciliation
2023 Guidance Reconciliation 14 ($ in millions) Low High Net Income $49 $68 Depreciation and amortization expense 136 132 Interest expense, net 31 29 Income tax expense 34 36 Adjusted EBITDA (Consolidated) $250 $265 Free Cash Flow Reconciliation 2023E ($ in millions) Low High Operating Cash Flow $20
Slide 15: Net Income to FCF Reconciliation
Net Income to FCF Reconciliation 15 2023E ($ in millions) Low End High End Net Income $49 $68 Depreciation and amortization expense 136 132 Interest expense, net 31 29 Income tax expense 34 36 Adjusted EBITDA (Consolidated) $250 $265 Cash interest (28) (26) Cash taxes (12) (16) Total capex (95) (95)
Slide 16: Reconciliation to Adjusted EBITDA
16 Reconciliation to Adjusted EBITDA ($ in millions) Q1 '22 Q2 '22 Q3 '22 Q4 '22 FY '22 Q1 '23 Q2 '23 Q3 '23 Net Income $ 30.6 $ 19.0 $ 42.5 $ 12.8 $ 104.9 $ 17.7 $ 22.0 $ 8.5 Depreciation and amortization expense 35.2 35.8 35.7 35.8 142.5 35.3 36.4 35.5 Interest expense, net 8.0 8.3 8.0 7.7 32.0 7.
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 and Brazil Coke Logistics Consolidated ($ in millions, except per ton data) Coke Other(1) Q3 2023 Adjusted EBITDA $64.0 $2.2 $8.4 ($9.2) $65.4 Sales Volume (thousan
Slide 18: SunCoke Energy
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