LISLE, Ill., April 24,
2019 /PRNewswire/ -- SunCoke Energy Partners, L.P. (NYSE:
SXCP) today reported results for the first quarter 2019.
"I would like to thank all our SunCoke employees for their
commitment and dedication throughout the quarter despite facing
adverse weather conditions, which impacted operations across our
business during the quarter," said Mike
Rippey, Chairman, President and Chief Executive Officer of
SunCoke Energy Partners, L.P.
FIRST QUARTER RESULTS
|
Three Months Ended
March 31,
|
|
(Dollars in
millions)
|
2019
|
|
2018
|
|
Increase
(Decrease)
|
|
Revenues
|
$
|
230.4
|
|
|
$
|
214.8
|
|
|
$
|
15.6
|
|
|
Adjusted
EBITDA(1)
|
$
|
47.7
|
|
|
$
|
49.5
|
|
|
$
|
(1.8)
|
|
|
Net income
attributable to SXCP
|
$
|
4.5
|
|
|
$
|
12.2
|
|
|
$
|
(7.7)
|
|
|
(1)
|
See definition of
Adjusted EBITDA and reconciliation elsewhere in this
release.
|
Revenues in first quarter 2019 increased $15.6 million from the prior year period,
primarily reflecting the pass-through of higher coal prices in our
Domestic Coke segment.
Adjusted EBITDA in the quarter decreased $1.8 million, primarily driven by adverse weather
conditions, which impacted both our Domestic Coke and Logistics
segments.
Net income attributable to SXCP in the first quarter 2019 was
$4.5 million, down $7.7 million versus the prior year period. The
decrease in the current period was driven by the operating results
discussed above and higher depreciation expense driven by revisions
in estimated useful lives of certain assets in our Domestic Coke
segment made during the third quarter 2018.
FIRST QUARTER SEGMENT INFORMATION
Domestic Coke
Domestic Coke consists of cokemaking
facilities and heat recovery operations at our Haverhill,
Middletown and Granite City cokemaking facilities, located in
Franklin Furnace and Middletown, Ohio, and Granite City, Illinois, respectively.
|
Three Months Ended
March 31,
|
|
(Dollars in
millions, except per ton amounts)
|
2019
|
|
2018
|
|
Increase
(Decrease)
|
|
Revenues
|
$
|
204.8
|
|
|
$
|
190.0
|
|
|
$
|
14.8
|
|
|
Adjusted
EBITDA(1)
|
$
|
39.3
|
|
|
$
|
40.3
|
|
|
$
|
(1.0)
|
|
|
Sales Volume
(thousands of tons)
|
570
|
|
|
568
|
|
|
2
|
|
|
Adjusted EBITDA per
ton(2)
|
$
|
68.95
|
|
|
$
|
70.95
|
|
|
$
|
(2.00)
|
|
|
(1)
|
See definition of
Adjusted EBITDA and reconciliation elsewhere in this
release.
|
|
(2)
|
Reflects Domestic
Coke Adjusted EBITDA divided by Domestic Coke sales
volumes.
|
Revenues increased $14.8 million
primarily reflecting the pass-through of higher coal prices.
Adjusted EBITDA decreased driven by lower coal-to-coke yields
primarily due to the impact from heavy rainfalls, which elevated
coal moisture levels. This decrease was partially offset by a
$1.0 million benefit from the timing
of planned outage costs.
Logistics
Logistics consists of the handling and
mixing services of coal and other aggregates operated by SXCP at
our Convent Marine Terminal ("CMT"), Lake Terminal and Kanawha
River Terminals ("KRT").
|
Three Months Ended
March 31,
|
|
(Dollars in
millions, except per ton amounts)
|
2019
|
|
2018
|
|
Increase
(Decrease)
|
|
Revenues
|
$
|
25.6
|
|
|
$
|
24.8
|
|
|
$
|
0.8
|
|
|
Intersegment
sales
|
$
|
2.0
|
|
|
$
|
1.7
|
|
|
$
|
0.3
|
|
|
Adjusted
EBITDA(1)
|
$
|
12.5
|
|
|
$
|
13.4
|
|
|
$
|
(0.9)
|
|
|
Tons handled
(thousands of tons)(2)
|
5,501
|
|
|
5,531
|
|
|
(30)
|
|
|
CMT take-or-pay
shortfall tons (thousands of tons)(3)
|
669
|
|
|
172
|
|
|
497
|
|
|
(1)
|
See definition of
Adjusted EBITDA and reconciliation elsewhere in this
release.
|
|
(2)
|
Reflects inbound tons
handled during the period.
|
|
(3)
|
Reflects tons billed
under take-or-pay contracts where services have not yet been
performed.
|
Revenues were reasonably consistent with prior year period.
Adjusted EBITDA decreased by $0.9
million, driven primarily by incremental high water costs at
CMT during the current period.
Corporate and Other
Corporate and other expenses were
$4.1 million in the first quarter
2019, which was comparable with the prior year period of
$4.2 million.
2019 OUTLOOK
Our 2019 guidance is as follows:
- Adjusted EBITDA attributable to SXCP is expected to be between
$215 to $225
million
- Distributable Cash Flow expect to be between $93 to $108
million
- Capital expenditures are projected to be between $55 to $60 million,
expect $6 million related to
completing our Granite City gas
sharing project
SUNCOKE ENERGY PARTNERS, L.P.
SunCoke Energy Partners, L.P. (NYSE: SXCP) is a publicly traded
master limited partnership that manufactures high-quality coke used
in the blast furnace production of steel and provides export and
domestic material handling services to coke, coal, steel, power and
other bulk and liquids customers. In our cokemaking business,
we utilize an innovative heat-recovery technology that captures
excess heat for steam or electrical power generation and have
long-term, take-or-pay coke contracts that pass through commodity
and certain operating costs. Our logistics terminals have the
collective capacity to mix and transload more than 40 million tons
of material each year and are strategically located to reach Gulf
Coast, East Coast, Great Lakes and international ports. SXCP's
General Partner is a wholly owned subsidiary of SunCoke Energy,
Inc. (NYSE: SXC), which has approximately 55 years of cokemaking
experience serving the integrated steel industry. To learn
more about SunCoke Energy Partners, L.P., visit our website at
www.suncoke.com.
DEFINITIONS
- Adjusted EBITDA represents earnings before interest,
taxes, depreciation and amortization ("EBITDA"), adjusted for any
loss on extinguishment of debt, changes to our contingent
consideration liability related to our acquisition of CMT and/or
transaction costs incurred as part of the Simplification
Transaction. Adjusted EBITDA does not represent and should not be
considered an alternative to net income or operating income under
accounting principles generally accepted in the U.S. ("GAAP") and
may not be comparable to other similarly titled measures in other
businesses. Management believes Adjusted EBITDA is an important
measure of the operating performance and liquidity of the
Partnership's net assets and its ability to incur and service debt,
fund capital expenditures and make distributions. Adjusted EBITDA
provides useful information to investors because it highlights
trends in our business that may not otherwise be apparent when
relying solely on GAAP measures and because it eliminates items
that have less bearing on our operating performance and liquidity.
EBITDA and Adjusted EBITDA are not measures calculated in
accordance with GAAP, and they should not be considered an
alternative to net income, operating cash flow or any other measure
of financial performance presented in accordance with GAAP.
- Adjusted EBITDA attributable to SXCP equals Adjusted
EBITDA less Adjusted EBITDA attributable to noncontrolling
interests.
- Distributable Cash Flow equals Adjusted EBITDA plus
sponsor support and Logistics deferred revenue, less net cash paid
for interest expense, ongoing capital expenditures, accruals for
replacement capital expenditures, and cash distributions to
noncontrolling interests; plus amounts received under the Omnibus
Agreement and acquisition expenses deemed to be Expansion Capital
under our Partnership Agreement. Distributable Cash Flow is a
non-GAAP supplemental financial measure that management and
external users of SXCP's financial statements, such as industry
analysts, investors, lenders and rating agencies use to
assess:
-
- SXCP's operating performance as compared to other publicly
traded partnerships, without regard to historical cost basis;
- the ability of SXCP's assets to generate sufficient cash flow
to make distributions to SXCP's unitholders;
- SXCP's ability to incur and service debt and fund capital
expenditures; and
- the viability of acquisitions and other capital expenditure
projects and the returns on investment of various investment
opportunities.
We believe that Distributable Cash Flow provides useful
information to investors in assessing SXCP's financial condition
and results of operations. Distributable Cash Flow should not be
considered an alternative to net income, operating income, cash
flows from operating activities, or any other measure of financial
performance or liquidity presented in accordance with GAAP.
Distributable Cash Flow has important limitations as an analytical
tool because it excludes some, but not all, items that affect net
income and net cash provided by operating activities and used in
investing activities. Additionally, because Distributable Cash Flow
may be defined differently by other companies in the industry, our
definition of Distributable Cash Flow may not be comparable to
similarly titled measures of other companies, thereby diminishing
its utility.
- Distributable Cash Flow Coverage Ratio equals
Distributable Cash Flow divided by estimated distributions to the
limited and general partners.
- Operating Cash Flow Coverage Ratio equals net cash
provided by operating activities divided by total estimated
distributions to the limited and general partners. Operating cash
flow is generally expected to be higher than Distributable Cash
Flow as Distributable Cash Flow is further reduced by certain cash
reserves including capital expenditures, an investing cash flow
item. Additionally, Distributable Cash Flow represents only the
Partnership's share of available cash by excluding Adjusted EBITDA
attributable to noncontrolling interest, while operating cash flow
is reported on a consolidated basis.
- Ongoing capital expenditures ("capex") are capital
expenditures made to maintain the existing operating capacity of
our assets and/or to extend their useful lives. Ongoing capex also
includes new equipment that improves the efficiency, reliability or
effectiveness of existing assets. Ongoing capex does not include
normal repairs and maintenance, which are expensed as incurred, or
significant capital expenditures. For purposes of calculating
distributable cash flow, the portion of ongoing capex attributable
to SXCP is used.
- Replacement capital expenditures ("capex") represents an
annual accrual necessary to fund SXCP's share of the estimated
costs to replace or rebuild our facilities at the end of their
working lives. This accrual is estimated based on the average
quarterly anticipated replacement capital that we expect to incur
over the long term to replace our major capital assets at the end
of their working lives. The replacement capex accrual estimate will
be subject to review and prospective change by SXCP's general
partner at least annually and whenever an event occurs that causes
a material adjustment of replacement capex, provided such change is
approved by our conflicts committee.
IMPORTANT NOTICE TO INVESTORS
SXCP and SXC previously have announced the execution of a
definitive merger agreement for the acquisition by SXC of all
publicly held common units of SXCP. SXC has filed a registration
statement on Form S-4 with the Securities and Exchange Commission
("SEC") containing a draft joint prospectus/consent statement/proxy
statement of SXC and SXCP. Once the SEC has completed its
review of this filing and declared it effective, SXC and SXCP
security holders are urged to read the definitive joint
prospectus/consent statement/proxy statement and other documents
filed with the SEC regarding the proposed transaction carefully and
in their entirety when they become available because they will
contain important information. Investors may obtain a free
copy of the draft joint prospectus/consent statement/proxy
statement at any time and will be able to obtain a free copy of the
definitive joint prospectus/consent statement/proxy statement when
it becomes available, as well as other filings containing
information about the proposed transaction, without charge, at the
SEC's internet site (http://www.sec.gov). Copies of the definitive
joint prospectus/consent statement/proxy statement when it becomes
available, as well as copies of the filings with the SEC that will
be incorporated by reference in such definitive joint
prospectus/consent statement/proxy statement, can be obtained,
without charge by directing a request either to SXC, 1011
Warrenville Road, 6th Floor, Lisle,
IL 60532 USA, Attention: Investor Relations or to SXCP, 1011
Warrenville Road, 6th Floor, Lisle,
IL 60532 USA, Attention: Investor Relations.
The respective directors and executive officers of SXC and SXCP
may be deemed to be "participants" (as defined in Schedule 14A
under the Securities Exchange Act of 1934 as amended) in respect of
the proposed transaction. Information about SXC's directors and
executive officers is available in SXC's annual report on Form 10-K
for the fiscal year ended December 31,
2018, filed with the SEC on February
15, 2019. Information about SXCP's directors and executive
officers is available in SXCP's annual report on Form 10-K for the
fiscal year ended December 31, 2018
filed with the SEC on February 15,
2019. Other information regarding the participants in the
solicitation and a description of their direct and indirect
interests, by security holdings or otherwise, will be contained in
the joint definitive prospectus/consent statement/proxy statement,
when available, and other relevant materials filed with the
SEC.
This communication shall not constitute an offer to sell or the
solicitation of an offer to buy any securities or a solicitation of
any vote or approval, nor shall there be any sale of securities in
any jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. No offering of securities
shall be made except by means of a prospectus meeting the
requirements of Section 10 of the U.S. Securities Act of 1933, as
amended.
FORWARD-LOOKING STATEMENTS
Some of the statements included in this press release constitute
"forward-looking statements." Forward-looking statements
include all statements that are not historical facts and may be
identified by the use of such words as "believe," "expect," "plan,"
"project," "intend," "anticipate," "estimate," "predict,"
"potential," "continue," "may," "will," "should" or the negative of
these terms or similar expressions. Forward-looking
statements are inherently uncertain and involve significant known
and unknown risks and uncertainties (many of which are beyond the
control of SXCP) that could cause actual results to differ
materially.
Such risks and uncertainties include, but are not limited to,
domestic and international economic, political, business,
operational, competitive, regulatory, and/or market factors
affecting SXCP, as well as uncertainties related to: pending or
future litigation, legislation or regulatory actions; liability for
remedial actions or assessments under existing or future
environmental regulations; gains and losses related to acquisition,
disposition or impairment of assets; recapitalizations; access to,
and costs of, capital; the effects of changes in accounting rules
applicable to SXCP; and changes in tax, environmental and other
laws and regulations applicable to SXCP's businesses.
Forward-looking statements are not guarantees of future
performance, but are based upon the current knowledge, beliefs and
expectations of SXCP management, and upon assumptions by SXCP
concerning future conditions, any or all of which ultimately may
prove to be inaccurate. The reader should not place undue
reliance on these forward-looking statements, which speak only as
of the date of this press release. SXCP does not intend, and
expressly disclaims any obligation, to update or alter its
forward-looking statements (or associated cautionary language),
whether as a result of new information, future events or otherwise
after the date of this press release except as required by
applicable law.
SXCP has included in its filings with the Securities and
Exchange Commission cautionary language identifying important
factors (but not necessarily all the important factors) that could
cause actual results to differ materially from those expressed in
any forward-looking statement made by SXCP. For information
concerning these factors, see SXCP's Securities and Exchange
Commission filings such as its annual and quarterly reports and
current reports on Form 8-K, copies of which are available free of
charge on SXCP's website at www.suncoke.com. All
forward-looking statements included in this press release are
expressly qualified in their entirety by such cautionary
statements. Unpredictable or unknown factors not discussed in
this release also could have material adverse effects on
forward-looking statements.
|
SunCoke Energy
Partners, L.P.
|
|
Consolidated
Statements of Income
|
|
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2019
|
|
2018
|
|
|
|
|
|
|
(Dollars and units
in millions, except per unit
amounts)
|
|
Revenues
|
|
|
|
|
|
Sales and other
operating revenue
|
|
$
|
230.4
|
|
|
$
|
214.8
|
|
|
Costs and
operating expenses
|
|
|
|
|
|
Cost of products sold
and operating expenses
|
|
174.1
|
|
|
157.1
|
|
|
Selling, general and
administrative expenses
|
|
8.7
|
|
|
8.2
|
|
|
Depreciation and
amortization expense
|
|
28.4
|
|
|
21.5
|
|
|
Total costs and
operating expenses
|
|
211.2
|
|
|
186.8
|
|
|
Operating
income
|
|
19.2
|
|
|
28.0
|
|
|
Interest expense,
net
|
|
14.4
|
|
|
15.0
|
|
|
Income before income
tax (benefit) expense
|
|
4.8
|
|
|
13.0
|
|
|
Income tax (benefit)
expense
|
|
(0.1)
|
|
|
0.3
|
|
|
Net
income
|
|
4.9
|
|
|
12.7
|
|
|
Less: Net income
attributable to noncontrolling interests
|
|
0.4
|
|
|
0.5
|
|
|
Net income
attributable to SunCoke Energy Partners, L.P.
|
|
$
|
4.5
|
|
|
$
|
12.2
|
|
|
|
|
|
|
|
General partner's
interest in net income
|
|
$
|
0.1
|
|
|
$
|
0.3
|
|
|
Limited partners'
interest in net income
|
|
$
|
4.4
|
|
|
$
|
11.9
|
|
|
Net income per common
unit (basic and diluted)
|
|
$
|
0.10
|
|
|
$
|
0.26
|
|
|
Weighted average
common units outstanding (basic and diluted)
|
|
46.2
|
|
|
46.2
|
|
|
SunCoke Energy
Partners, L.P.
|
|
Consolidated
Balance Sheets
|
|
|
|
March 31,
2019
|
|
December 31,
2018
|
|
|
(Unaudited)
|
|
|
|
|
(Dollars in
millions)
|
|
Assets
|
|
|
|
Cash
|
|
$
|
2.7
|
|
|
$
|
12.6
|
|
|
Receivables
|
|
61.4
|
|
|
48.8
|
|
|
Receivables from
affiliate, net
|
|
—
|
|
|
3.1
|
|
|
Inventories
|
|
104.6
|
|
|
79.0
|
|
|
Other current
assets
|
|
3.0
|
|
|
1.0
|
|
|
Total current
assets
|
|
171.7
|
|
|
144.5
|
|
|
Properties, plants
and equipment (net of accumulated depreciation of $521.7 million
and $499.9 million at March 31, 2019 and December 31, 2018,
respectively)
|
|
1,233.0
|
|
|
1,245.1
|
|
|
Goodwill
|
|
73.5
|
|
|
73.5
|
|
|
Other intangible
assets, net
|
|
153.2
|
|
|
155.8
|
|
|
Deferred charges and
other assets
|
|
2.4
|
|
|
0.2
|
|
|
Total
assets
|
|
$
|
1,633.8
|
|
|
$
|
1,619.1
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Accounts
payable
|
|
$
|
78.3
|
|
|
$
|
68.8
|
|
|
Accrued
liabilities
|
|
13.1
|
|
|
13.5
|
|
|
Deferred
revenue
|
|
7.5
|
|
|
3.0
|
|
|
Current portion of
long-term debt and financing obligation
|
|
2.8
|
|
|
2.8
|
|
|
Interest
payable
|
|
16.3
|
|
|
3.2
|
|
|
Payable to affiliate,
net
|
|
2.7
|
|
|
—
|
|
|
Total current
liabilities
|
|
120.7
|
|
|
91.3
|
|
|
Long-term debt and
financing obligation
|
|
788.3
|
|
|
793.3
|
|
|
Deferred income
taxes
|
|
115.6
|
|
|
115.7
|
|
|
Other deferred
credits and liabilities
|
|
13.2
|
|
|
12.1
|
|
|
Total
liabilities
|
|
1,037.8
|
|
|
1,012.4
|
|
|
Equity
|
|
|
|
|
|
Held by
public:
|
|
|
|
|
|
Common
units (issued 17,727,249 units at both March 31, 2019 and
December 31, 2018, respectively)
|
|
188.7
|
|
|
194.1
|
|
|
Held by
parent:
|
|
|
|
|
|
Common units (issued
28,499,899 units at both March 31, 2019 and December 31, 2018,
respectively)
|
|
342.9
|
|
|
351.6
|
|
|
General partner's
interest
|
|
53.0
|
|
|
49.3
|
|
|
Partners' capital
attributable to SunCoke Energy Partners, L.P.
|
|
584.6
|
|
|
595.0
|
|
|
Noncontrolling
interest
|
|
11.4
|
|
|
11.7
|
|
|
Total
equity
|
|
596.0
|
|
|
606.7
|
|
|
Total liabilities and
equity
|
|
$
|
1,633.8
|
|
|
$
|
1,619.1
|
|
|
SunCoke Energy
Partners, L.P.
|
|
Consolidated
Statements of Cash Flows
|
|
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2019
|
|
2018
|
|
|
(Dollars in
millions)
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
Net income
|
|
$
|
4.9
|
|
|
$
|
12.7
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
28.4
|
|
|
21.5
|
|
|
Deferred income tax
expense
|
|
(0.1)
|
|
|
0.4
|
|
|
Changes in working
capital pertaining to operating activities:
|
|
|
|
|
|
Receivables
|
|
(12.6)
|
|
|
(5.6)
|
|
|
Receivables/payables
from affiliate, net
|
|
5.8
|
|
|
5.7
|
|
|
Inventories
|
|
(25.6)
|
|
|
(0.3)
|
|
|
Accounts
payable
|
|
9.3
|
|
|
20.9
|
|
|
Accrued
liabilities
|
|
(0.6)
|
|
|
(3.0)
|
|
|
Deferred
revenue
|
|
4.5
|
|
|
1.9
|
|
|
Interest
payable
|
|
13.1
|
|
|
12.8
|
|
|
Other
|
|
(1.4)
|
|
|
(0.9)
|
|
|
Net cash provided by
operating activities
|
|
25.7
|
|
|
66.1
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
Capital
expenditures
|
|
(13.4)
|
|
|
(10.6)
|
|
|
Net cash used in
investing activities
|
|
(13.4)
|
|
|
(10.6)
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
Repayment of
financing obligation
|
|
(0.7)
|
|
|
(0.6)
|
|
|
Proceeds from
revolving credit facility
|
|
60.7
|
|
|
53.5
|
|
|
Repayment of
revolving credit facility
|
|
(65.7)
|
|
|
(53.5)
|
|
|
Distributions to
unitholders (public and parent)
|
|
(18.9)
|
|
|
(29.5)
|
|
|
Distributions to
noncontrolling interest (SunCoke Energy, Inc.)
|
|
(0.7)
|
|
|
(0.5)
|
|
|
Capital contributions
from SunCoke
|
|
4.0
|
|
|
10.0
|
|
|
Other financing
activities
|
|
(0.9)
|
|
|
—
|
|
|
Net cash used in
financing activities
|
|
(22.2)
|
|
|
(20.6)
|
|
|
Net (decrease)
increase in cash and cash equivalents
|
|
(9.9)
|
|
|
34.9
|
|
|
Cash and cash
equivalents at beginning of period
|
|
12.6
|
|
|
6.6
|
|
|
Cash and cash
equivalents at end of period
|
|
$
|
2.7
|
|
|
$
|
41.5
|
|
|
Supplemental
Disclosure of Cash Flow Information
|
|
|
|
|
|
Interest paid, net of
capitalized interest of $1.2 million and $0.5 million,
respectively
|
|
$
|
0.4
|
|
|
$
|
1.5
|
|
|
Income taxes
paid
|
|
$
|
—
|
|
|
$
|
1.3
|
|
|
SunCoke Energy
Partners, L.P.
|
|
Segment Financial
and Operating Data
|
|
|
The following tables
set forth financial and operating data for the three months ended
March 31, 2019 and 2018:
|
|
|
|
Three Months Ended
March 31,
|
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
(Dollars in millions, except per ton
amounts)
|
|
Sales and other
operating revenues:
|
|
|
|
|
|
Domestic
Coke
|
|
$
|
204.8
|
|
|
$
|
190.0
|
|
|
Logistics
|
|
25.6
|
|
|
24.8
|
|
|
Logistics
intersegment sales
|
|
2.0
|
|
|
1.7
|
|
|
Elimination of
intersegment sales
|
|
(2.0)
|
|
|
(1.7)
|
|
|
Total sales and other
operating revenues
|
|
$
|
230.4
|
|
|
$
|
214.8
|
|
|
Adjusted
EBITDA(1):
|
|
|
|
|
|
Domestic
Coke
|
|
$
|
39.3
|
|
|
$
|
40.3
|
|
|
Logistics
|
|
12.5
|
|
|
13.4
|
|
|
Corporate and
Other
|
|
(4.1)
|
|
|
(4.2)
|
|
|
Total Adjusted
EBITDA
|
|
$
|
47.7
|
|
|
$
|
49.5
|
|
|
Coke Operating
Data:
|
|
|
|
|
|
Domestic Coke
capacity utilization
|
|
101
|
%
|
|
98
|
%
|
|
Domestic Coke
production volumes (thousands of tons)
|
|
572
|
|
|
554
|
|
|
Domestic Coke sales
volumes (thousands of tons)
|
|
570
|
|
|
568
|
|
|
Domestic Coke
Adjusted EBITDA per ton(2)
|
|
$
|
68.95
|
|
|
$
|
70.95
|
|
|
Logistics
Operating Data:
|
|
|
|
|
|
Tons handled
(thousands of tons)(3)
|
|
5,501
|
|
|
5,531
|
|
|
CMT take-or-pay
shortfall tons (thousands of tons)(4)
|
|
669
|
|
|
172
|
|
|
(1)
|
See definition of
Adjusted EBITDA and reconciliation to GAAP elsewhere in this
release.
|
|
(2)
|
Reflects Domestic
Coke Adjusted EBITDA divided by Domestic Coke sales
volumes.
|
|
(3)
|
Reflects inbound tons
handled during the period.
|
|
(4)
|
Reflects tons billed
under take-or-pay contracts where services have not yet been
performed.
|
|
SunCoke Energy
Partners, L.P.
|
|
Reconciliations of
Non-GAAP Information
|
|
Net Income and Net
Cash Provided by Operating Activities
|
|
to Adjusted
EBITDA
|
|
|
|
Three Months Ended
March 31,
|
|
|
2019
|
|
2018
|
|
|
(Dollars in
millions)
|
|
Net
income
|
|
$
|
4.9
|
|
|
$
|
12.7
|
|
|
Add:
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
28.4
|
|
|
21.5
|
|
|
Interest expense,
net
|
|
14.4
|
|
|
15.0
|
|
|
Income tax (benefit)
expense
|
|
(0.1)
|
|
|
0.3
|
|
|
Simplification
Transaction costs
|
|
0.5
|
|
|
—
|
|
|
Contingent
consideration adjustments(1)
|
|
(0.4)
|
|
|
—
|
|
|
Adjusted
EBITDA
|
|
$
|
47.7
|
|
|
$
|
49.5
|
|
|
Subtract:
|
|
|
|
|
|
Adjusted EBITDA
attributable to noncontrolling interest(2)
|
|
0.8
|
|
|
0.8
|
|
|
Adjusted EBITDA
attributable to SunCoke Energy Partners, L.P.
|
|
$
|
46.9
|
|
|
$
|
48.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2019
|
|
2018
|
|
|
(Dollars in
millions)
|
|
Net cash provided
by operating activities
|
|
$
|
25.7
|
|
|
$
|
66.1
|
|
|
Add:
|
|
|
|
|
|
Cash interest paid,
net of capitalized interest
|
|
0.4
|
|
|
1.5
|
|
|
Cash income tax
paid
|
|
—
|
|
|
1.3
|
|
|
Changes in working
capital(3)
|
|
19.2
|
|
|
(19.6)
|
|
|
Contingent
consideration adjustments(1)
|
|
(0.4)
|
|
|
—
|
|
|
Simplification
Transaction costs
|
|
0.5
|
|
|
—
|
|
|
Other adjustments to
reconcile cash provided by operating activities to Adjusted
EBITDA
|
|
2.3
|
|
|
0.2
|
|
|
Adjusted
EBITDA
|
|
$
|
47.7
|
|
|
$
|
49.5
|
|
|
Subtract:
|
|
|
|
|
|
Adjusted EBITDA
attributable to noncontrolling interest(2)
|
|
0.8
|
|
|
0.8
|
|
|
Adjusted EBITDA
attributable to SunCoke Energy Partners, L.P.
|
|
$
|
46.9
|
|
|
$
|
48.7
|
|
|
(1)
|
In connection with
the CMT acquisition, the Partnership entered into a contingent
consideration arrangement that requires the Partnership to make
future payments to the seller based on future volume over a
specified threshold, price and contract renewals. Contingent
consideration adjustments in 2019 were primarily the result of
modifications to the volume forecast.
|
|
(2)
|
Reflects net income
attributable to noncontrolling interest adjusted for noncontrolling
interest's share of interest, taxes, income, and depreciation and
amortization.
|
|
(3)
|
Changes in working
capital exclude those items not impacting Adjusted EBITDA, such as
changes in interest payable.
|
|
SunCoke Energy
Partners, L.P.
|
|
Reconciliations of
Non-GAAP Information
|
|
Net Income (loss)
and Operating Activities to
|
|
Distributable Cash
Flow
|
|
|
|
Three Months Ended
March 31,
|
|
|
2019
|
|
2018
|
|
|
(Dollars in
millions)
|
|
Net
Income
|
|
$
|
4.9
|
|
|
$
|
12.7
|
|
|
Add:
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
28.4
|
|
|
21.5
|
|
|
Interest expense,
net
|
|
14.4
|
|
|
15.0
|
|
|
Income tax (benefit)
expense
|
|
(0.1)
|
|
|
0.3
|
|
|
Contingent
consideration adjustments
|
|
(0.4)
|
|
|
—
|
|
|
Simplification
Transaction costs
|
|
0.5
|
|
|
—
|
|
|
Logistics volume
shortfall billings(1)
|
|
3.9
|
|
|
1.2
|
|
|
Subtract
|
|
|
|
|
|
Ongoing capex (SXCP
Share)
|
|
7.7
|
|
|
5.0
|
|
|
Replacement capex
accrual
|
|
1.9
|
|
|
1.9
|
|
|
Cash interest
accrual
|
|
14.9
|
|
|
14.9
|
|
|
Cash income tax
accrual(2)
|
|
0.3
|
|
|
0.6
|
|
|
Adjusted EBITDA
attributable to noncontrolling interest(3)
|
|
0.8
|
|
|
0.8
|
|
|
Distributable cash
flow
|
|
$
|
26.0
|
|
|
$
|
27.5
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2019
|
|
2018
|
|
|
(Dollars in
millions)
|
|
Net cash provided
by operating activities
|
|
$
|
25.7
|
|
|
$
|
66.1
|
|
|
Add:
|
|
|
|
|
|
Cash interest paid,
net of capitalized interest
|
|
0.4
|
|
|
1.5
|
|
|
Cash income tax
paid
|
|
—
|
|
|
1.3
|
|
|
Changes in working
capital(4)
|
|
19.2
|
|
|
(19.6)
|
|
|
Logistics volume
shortfall billings(1)
|
|
3.9
|
|
|
1.2
|
|
|
Simplification
Transaction costs
|
|
0.5
|
|
|
—
|
|
|
Contingent
consideration adjustments
|
|
(0.4)
|
|
|
—
|
|
|
Other adjustments to
reconcile cash provided by operating activities to Adjusted
EBITDA
|
|
2.3
|
|
|
0.2
|
|
|
Subtract:
|
|
|
|
|
|
Ongoing capex (SXCP
share)
|
|
7.7
|
|
|
5.0
|
|
|
Replacement capex
accrual
|
|
1.9
|
|
|
1.9
|
|
|
Cash interest
accrual
|
|
14.9
|
|
|
14.9
|
|
|
Cash income tax
accrual(2)
|
|
0.3
|
|
|
0.6
|
|
|
Adjusted EBITDA
attributable to noncontrolling interest(3)
|
|
0.8
|
|
|
0.8
|
|
|
Distributable cash
flow
|
|
$
|
26.0
|
|
|
$
|
27.5
|
|
|
Quarterly cash
distribution declared in the period
|
|
$
|
18.9
|
|
|
$
|
18.9
|
|
|
Operating cash
flow coverage ratio(5)
|
|
1.36
|
|
|
3.50
|
|
|
Distribution
coverage ratio(6)
|
|
1.38
|
|
|
1.46
|
|
|
|
|
(1)
|
Logistics volume
shortfall billings adjusts to include ton minimums billed
throughout the year in Distributable Cash Flow to better align with
cash collection. Volume shortfall billings on take-or-pay contracts
are recorded as deferred revenue and are recognized into GAAP
income based on the terms of the contract, at which time they will
be excluded from Distributable Cash Flow.
|
|
(2)
|
Cash tax impact from
the operations of Gateway Cogeneration Company LLC, which is an
entity subject to income taxes for federal and state purposes at
the corporate level.
|
|
(3)
|
Reflects net income
attributable to noncontrolling interest adjusted for noncontrolling
interest's share of interest, taxes, income, and depreciation and
amortization.
|
|
(4)
|
Changes in working
capital exclude those items not impacting Adjusted EBITDA, such as
changes in interest payable and income taxes payable.
|
|
(5)
|
Operating cash flow
coverage ratio is net cash provided by operating activities divided
by total estimated distributions to the limited and general
partners. Operating cash flow is generally expected to be
higher than Distributable Cash Flow as Distributable Cash Flow is
further reduced by certain cash reserves including capital
expenditures, an investing cash flow item. Additionally,
Distributable Cash Flow represents only the Partnership's share of
available cash by excluding Adjusted EBITDA attributable to
noncontrolling interest, while operating cash flow is reported on a
consolidated basis.
|
|
(6)
|
Distribution cash
coverage ratio is distributable cash flow divided by total
estimated distributions to the limited and general
partners.
|
|
SunCoke Energy
Partners, L.P.
|
|
Reconciliations of
Non-GAAP Information
|
|
Estimated Net
Income and Net Cash Provided by Operating Activities
|
|
to Estimated 2019
Consolidated Adjusted EBITDA
|
|
|
|
2019
|
|
|
Low
|
|
High
|
|
|
(Dollars in
millions)
|
|
Net
Income
|
|
$
|
46
|
|
|
$
|
61
|
|
|
Add:
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
110
|
|
|
105
|
|
|
Interest
expense
|
|
60
|
|
|
60
|
|
|
Income tax
expense
|
|
2
|
|
|
3
|
|
|
Adjusted
EBITDA
|
|
$
|
218
|
|
|
$
|
229
|
|
|
Subtract:
|
|
|
|
|
|
Adjusted EBITDA
attributable to noncontrolling interest(1)
|
|
3
|
|
|
4
|
|
|
Adjusted EBITDA
attributable to SunCoke Energy Partners, L.P.
|
|
$
|
215
|
|
|
$
|
225
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
|
|
Low
|
|
High
|
|
|
(Dollars in
millions)
|
|
Net cash provided
by operating activities
|
|
$
|
145
|
|
|
$
|
160
|
|
|
Add:
|
|
|
|
|
|
Cash interest paid,
net of capitalized interest
|
|
60
|
|
|
60
|
|
|
Cash income tax
paid
|
|
2
|
|
|
3
|
|
|
Changes in working
capital and other(2)
|
|
11
|
|
|
6
|
|
|
Adjusted
EBITDA
|
|
$
|
218
|
|
|
$
|
229
|
|
|
Subtract:
|
|
|
|
|
|
Adjusted EBITDA
attributable to noncontrolling interest(1)
|
|
3
|
|
|
4
|
|
|
Adjusted EBITDA
attributable to SunCoke Energy Partners, L.P.
|
|
$
|
215
|
|
|
$
|
225
|
|
|
(1)
|
Reflects net income
attributable to noncontrolling interest adjusted for noncontrolling
interest's share of interest, taxes, income, and depreciation and
amortization.
|
|
(2)
|
Changes in working
capital exclude those items not impacting Adjusted EBITDA, such as
changes in interest payable.
|
|
SunCoke Energy
Partners, L.P.
|
|
Reconciliations of
Non-GAAP Information
|
|
Estimated Net
Income and Net Cash Provided by Operating Activities
|
|
to Estimated 2019
Distributable Cash Flow
|
|
|
|
2019
|
|
|
Low
|
|
High
|
|
Net
Income
|
|
$
|
46
|
|
|
$
|
61
|
|
|
Add:
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
110
|
|
|
105
|
|
|
Interest
expense
|
|
60
|
|
|
60
|
|
|
Income tax
expense
|
|
2
|
|
|
3
|
|
|
Subtract:
|
|
|
|
|
|
Ongoing capex (SXCP
share)
|
|
53
|
|
|
48
|
|
|
Replacement capex
accrual
|
|
8
|
|
|
8
|
|
|
Cash interest
accrual
|
|
60
|
|
|
60
|
|
|
Cash tax
accrual
|
|
1
|
|
|
1
|
|
|
Adjusted EBITDA
attributable to noncontrolling interest(1)
|
|
3
|
|
|
4
|
|
|
Distributable Cash
Flow
|
|
$
|
93
|
|
|
$
|
108
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
|
|
Low
|
|
High
|
|
Net cash provided
by operating activities
|
|
$
|
145
|
|
|
$
|
160
|
|
|
Add:
|
|
|
|
|
|
Cash Interest paid,
net of capitalized interest
|
|
60
|
|
|
60
|
|
|
Cash Income tax
paid
|
|
2
|
|
|
3
|
|
|
Changes in working
capital(2)
|
|
11
|
|
|
6
|
|
|
Subtract:
|
|
|
|
|
|
Ongoing capex (SXCP
share)
|
|
53
|
|
|
48
|
|
|
Replacement capex
accrual
|
|
8
|
|
|
8
|
|
|
Cash interest
accrual
|
|
60
|
|
|
60
|
|
|
Cash tax
accrual
|
|
1
|
|
|
1
|
|
|
Adjusted EBITDA
attributable to noncontrolling interest(1)
|
|
3
|
|
|
4
|
|
|
Distributable Cash
Flow
|
|
$
|
93
|
|
|
$
|
108
|
|
|
Estimated
distributions(3)
|
|
$
|
76
|
|
|
$
|
76
|
|
|
Operating cash
flow coverage ratio(4)
|
|
1.92x
|
|
|
2.12x
|
|
|
Distribution cash
coverage ratio(5)
|
|
1.23x
|
|
|
1.43x
|
|
|
|
|
(1)
|
Reflects net income
attributable to noncontrolling interest adjusted for noncontrolling
interest's share of interest, taxes, income, and depreciation and
amortization.
|
|
(2)
|
Changes in working
capital exclude those items not impacting Adjusted EBITDA, such as
changes in interest payable.
|
|
(3)
|
Estimated
distributions assumes distributions are held constant at $0.40 per
unit each quarter.
|
|
(4)
|
Operating cash flow
coverage ratio is net cash provided by operating activities divided
by total estimated distributions to the limited and general
partners. Operating cash flow is generally expected to be higher
than Distributable Cash Flow as Distributable Cash Flow is further
reduced by certain cash reserves including capital expenditures, an
investing cash flow item. Additionally, Distributable Cash Flow
represents only the Partnership's share of available cash by
excluding Adjusted EBITDA attributable to noncontrolling interest,
while operating cash flow is reported on a consolidated
basis.
|
|
(5)
|
Distribution cash
coverage ratio is distributable cash flow divided by total
estimated distributions to the limited and general
partners.
|
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SOURCE SunCoke Energy Partners, L.P.