Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — Q3 2015 Earnings Presentation
23 slides from Suncoke Energy's earnings presentation, Oct 12, 2015
Slide 1: SunCoke Energy, Inc. Q3 2015 Earnings Conference Call
SunCoke Energy, Inc. Q3 2015 Earnings Conference Call October 12, 2015
Slide 2: Forward-Looking Statements
Forward-Looking Statements TM This slide presentation should be reviewed in conjunction with the Third Quarter 2015 earnings release of SunCoke Energy, Inc. (SXC) and conference call held on October 12, 2015 at 9:00 a.m. ET. Some of the information included in this presentation constitutes “forward-
Slide 3: Management Perspective
Management Perspective TM Completed successful Convent Marine Terminal integration Executed ~$16M of share repurchases and declared quarterly dividend of $0.15 per share Initiated additional measures to strengthen improvement efforts at Indiana Harbor due to continued challenges Flattened or
Slide 4: Q3 '15 Overview
Q3 ‘15 Overview TM Q3 2015 Earnings Overview Consolidated Adj. EBITDA(1) down $14M ($ in millions) ($/share) Consolidated Adj. EBITDA(1) Earnings per Share (diluted) vs. Q3 ‘14 primarily due to ($0.05) • Indiana Harbor operating challenges ($0.36) ($0.63) $158.8 ($0.87) • Items impacting comparabili
Slide 5: Adjusted EBITDA – Q3 '14 to Q3 '15
(1) Adjusted EBITDA – Q3 ‘14 to Q3 ‘15 TM Quarter impacted by Indiana Harbor and other items impacting comparability, offset partially by Convent benefit ($ in millions) $64.2 (2) ($11.4) ($3.7) $50.2 ($3.5) $44.8 $5.4 • ($5.3M) – Cost under-recovery ($2.0) $1.2 • ($3.7M) – Lower volumes • ($2.9M) –
Slide 6: Domestic Coke Business Summary
Domestic Coke Business Summary TM Reduced Full Year 2015 Adj. EBITDA per ton outlook to $50 – $55 on Indiana Harbor performance Domestic Coke Production Domestic Coke Adjusted EBITDA(1) Per Ton (thousands of tons) ($ in millions, except per ton amounts) 1,090 1,083 1,047 1,049 $67/ton 998 155 156 15
Slide 7: Liquidity Position
Liquidity Position TM Prudently managing liquidity in light of customers’ ongoing labor contract negotiations SXCP revolver Attributable availability: $65M to SXCP $20.2 ($22.9) $201.7 SXC revolver availability: $148M ($16.5) $25.6 ($26.8) • $19.4M – India impairment ($29.6) $98.9 • ($18.1M) – Payme
Slide 8: Executing Capital Allocation Strategy
Executing Capital Allocation Strategy TM Continued commitment to meaningfully create shareholder value Executed ~$16M of share repurchases, representing highly attractive opportunity to repurchase undervalued SXC shares • Intend to opportunistically execute against remaining ~$39M authorization, sub
Slide 9: 2015 Adjusted EBITDA Guidance
2015 Adjusted EBITDA Guidance TM Excluding Indiana Harbor, performance across other assets in-line with original Adjusted EBITDA guidance ($ in millions) $190 – $210 (2) ~$15 ~($15) $180 – $190 ($30 – $40) $160 – $170 ~$20 • Outperformance at Middletown, Jewell Coke, and International Coke • Haverhi
Slide 10: Indiana Harbor Update
Indiana Harbor Update TM Additional steps taken to strengthen improvement efforts and address significant underperformance at Indiana Harbor Conducted comprehensive review of refurbishment project & plant operations • Continue to engage workforce in turnaround activities • Maintain focus on material
Slide 11: Indiana Harbor Update
Indiana Harbor Update TM Applied lessons learned from unique, one-of-a-kind facility refurbishment to establish revised path forward Operating challenges persist despite Strengthening improvement effort with necessary, innovative refurbishment holistic oven rebuild approach • Replaced stacks & rebui
Slide 12: Cokemaking Value Proposition
Cokemaking Value Proposition TM SunCoke is advantaged supplier of coke from a cost, quality and logistics perspective • Logistically advantaged to serve customer • Customers required to take all the coke Long-term, BF assets via conveyor, rail or truck Logistics we produce up to contract maximum Tak
Slide 13: Concluding Remarks
Concluding Remarks TM Deliver Operations Excellence • Focused on driving strong operational performance across our fleet Positioned with Unique Cokemaking Value Proposition • Strong cokemaking value proposition positions SunCoke as preferred supplier of coke Executing Disciplined Capital Allocation
Slide 14: Questions
QUESTIONS SXC Q3 2015 Earnings Call 13
Slide 15: Investor Relations
Investor Relations 630-824-1907 www.suncoke.com
Slide 16: Appendix
APPENDIX SXC Q3 2015 Earnings Call 15
Slide 17: Definitions
Definitions TM Adjusted EBITDA represents earnings before interest, taxes, depreciation, depletion and amortization (“EBITDA”) adjusted for impairments, coal rationalization costs, sales discounts, Coal Logistics deferred revenue and interest, taxes, depreciation and amortization attributable to our
Slide 18: Consolidated Guidance Summary
Consolidated Guidance Summary TM 2015 Guidance updated to reflect operational performance and benefit from Convent Marine Terminal acquisition Revised Metric 2015 Guidance 2015 Guidance Adjusted EBITDA(1) Consolidated $190 – $210 million $180 – $190 million Attributable to SXC $115 – $130 million $1
Slide 19: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA TM ($ in millions) Q3 '15 Q2 '15 Q1 '15 FY '14 Q4 '14 Q3 '14 Q2 '14 Q1 '14 Net cash provided by Operating activities $6.4 $65.5 $11.1 $112.3 $53.9 $33.1 $36.6 ($11.3) Depreciation, depletion and amortization expense 25.6 26.4 23.8 106.3 25.9 22.8 28.6 29.0 Loss on e
Slide 20: Reconciliation of Segment Adjusted EBITDA and Adjusted EBITDA per ton
Reconciliation of Segment Adjusted EBITDA and Adjusted EBITDA per ton TM Reconciliation of Segment Adjusted EBITDA and Adjusted EBITDA per Ton Corporate, Domestic India Legacy Costs ($ in millions, except per ton data) Coke Brazil Coke Coke (1) Coal Mining Coal Logistics and Other Consolidated Q3 20
Slide 21: 2015E Guidance Reconciliation
2015E Guidance Reconciliation TM 2015E 2015E ($ in millions) Low High Net cash provided by Operating activities $125 $145 Depreciation, depletion and amortization expense (103) (103) Loss on extinguishment of debt (9) (9) Asset and goodwill impairment - - Coal Logistics deferred revenue(1) 3 3 Chang
Slide 22: Balance Sheet & Debt Metrics
Balance Sheet & Debt Metrics TM (1) As of 9/30/2015 Balance SXC Attributable Attributable Consolidated to SXCP ($ in millions) to SXC Cash $ 103 $ 61 $ 42 Available Revolver Capacity 213 65 148 Total Liquidity 316 126 190 Total Debt (Long and Short-term) 999 941 58 Net Debt (Total Debt less Cash) 89
Slide 23: Capital Expenditures
Capital Expenditures TM 2015 Expected CapEx ($ in millions) SXC SXCP(1) Consolidated Ongoing(2) $32 $20 $52 Expansion 5 0 5 Environmental Project 0 20 20 Total CapEx (Consolidated) $37 $40 $77 (1) Represents SXCP capex on 100% basis, including Granite City and Convent Marine Terminal. (2) Consolidat