LISLE, Ill., Feb. 4, 2021 /PRNewswire/ -- SunCoke Energy,
Inc. (NYSE: SXC) (the "Company" or "Suncoke") today reported fourth
quarter and full-year 2020 results, reflecting strong and resilient
performance from our cokemaking business during an unprecedented
and challenging year.
"In 2020, while dealing with the challenges presented by the
COVID-19 pandemic, our Domestic Coke fleet demonstrated excellent
cost discipline and delivered extraordinary results despite running
at sub-optimal levels. We extended expiring contracts with our
customers in exchange for providing near-term coke supply relief,
delivered robust cash flows and made significant progress towards
our capital allocation objectives," said Mike Rippey, President and Chief Executive
Officer of SunCoke Energy, Inc. "We also implemented a company-wide
cost-reduction initiative resulting in $10
million annualized savings and developed a new product line
of foundry coke during this year, further positioning SunCoke for
sustained success in the future."
Looking forward, the Company expects 2021 consolidated Adjusted
EBITDA to be between $215 million and
$230 million, driven by our Domestic
Coke plants operating at full capacity and higher volumes at
Logistics.
Rippey continued, "As we move forward in 2021, we will remain
focused on executing against our objectives of excellent safety
performance, operational excellence and balanced capital
allocation. Additionally, we will work towards further enhancing
our customer contracts and providing stability to our coke
operations. We will also continue our work to optimize CMT with
additional products and customers. We are committed to positioning
the Company for sustained success and delivering significant value
to SunCoke stakeholders."
CONSOLIDATED RESULTS
|
Three Months
Ended
December 31,
|
|
Years Ended
December 31,
|
(Dollars in
millions)
|
2020
|
2019
|
Increase/
(Decrease)
|
|
2020
|
2019
|
Increase/
(Decrease)
|
Sales and other
operating revenues
|
$
|
310.1
|
|
$
|
397.2
|
|
$
|
(87.1)
|
|
|
$
|
1,333.0
|
|
$
|
1,600.3
|
|
$
|
(267.3)
|
|
Net (loss) income
attributable to SXC
|
$
|
(5.0)
|
|
$
|
(1.4)
|
|
$
|
(3.6)
|
|
|
$
|
3.7
|
|
$
|
(152.3)
|
|
$
|
156.0
|
|
Adjusted
EBITDA(1)
|
$
|
37.0
|
|
$
|
50.8
|
|
$
|
(13.8)
|
|
|
$
|
205.9
|
|
$
|
247.9
|
|
$
|
(42.0)
|
|
|
|
(1)
|
See definition of
Adjusted EBITDA and reconciliation elsewhere in this
release.
|
Revenues decreased $87.1 million
and $267.3 million for the fourth
quarter and full-year 2020, respectively, primarily reflecting
lower sales volumes in both Domestic Coke and Logistics
segments.
Fourth quarter and full-year 2020 Adjusted EBITDA decreased by
$13.8 million and $42.0 million, respectively, reflecting lower
volumes, which were partially offset by operating cost savings in
our Domestic Coke and Logistics segments.
Net loss attributable to SXC for the fourth quarter 2020
increased $3.6 million from the same
prior year period, driven by lower operating results discussed
above, mostly offset by income tax benefits, a gain on the
extinguishment of our debt and slightly lower depreciation expense
recognized during the current year period.
Net income attributable to SXC for the full-year 2020 increased
$156.0 million as compared to 2019
driven largely by the absence of non-cash impairment related
charges at Logistics, net of taxes, of $174.8 million recorded during the third quarter
of 2019. The impact of the impairment related charges recorded
during the prior year period were partly offset by lower
depreciation expense, lower interest on lower debt balances as well
as a larger gain on extinguishment of debt recorded during 2020 as
compared to 2019.
SEGMENT RESULTS
Domestic Coke
Domestic Coke consists of cokemaking
facilities and heat recovery operations at our Jewell, Indiana
Harbor, Haverhill, Granite City
and Middletown plants.
|
Three Months
Ended
December 31,
|
|
Years Ended
December 31,
|
(Dollars in millions,
except per ton amounts)
|
2020
|
2019
|
Increase/
(Decrease)
|
|
2020
|
2019
|
Increase/
(Decrease)
|
Sales and other
operating revenues
|
$
|
289.6
|
|
$
|
373.3
|
|
$
|
(83.7)
|
|
|
$
|
1,265.4
|
|
$
|
1,489.1
|
|
$
|
(223.7)
|
|
Adjusted
EBITDA(1)
|
$
|
43.3
|
|
$
|
52.1
|
|
$
|
(8.8)
|
|
|
$
|
217.0
|
|
$
|
226.7
|
|
$
|
(9.7)
|
|
Sales Volume (in
thousands of tons)
|
880
|
|
1,080
|
|
(200)
|
|
|
3,789
|
|
4,171
|
|
(382)
|
|
Adjusted EBITDA per
ton(2)
|
$
|
49.20
|
|
$
|
48.24
|
|
$
|
0.96
|
|
|
$
|
57.27
|
|
$
|
54.35
|
|
$
|
2.92
|
|
|
|
(1)
|
See definitions of
Adjusted EBITDA and reconciliation elsewhere in this
release.
|
(2)
|
Reflects Domestic
Coke Adjusted EBITDA divided by Domestic Coke sales
volumes.
|
- Revenues decreased $83.7 million
and $223.7 million for the fourth
quarter and full-year 2020, respectively, compared with the same
prior year periods, reflecting lower volumes across most of the
fleet as well as the pass-through of lower coal costs, partially
offset by increased volumes at Indiana Harbor from the rebuilt
ovens, which were completed during 2019.
- Adjusted EBITDA decreased $8.8
million and $9.7 million for
the fourth quarter and full-year 2020, respectively, as operating
and maintenance cost savings across the Domestic Coke fleet
partially offset the decrease in volume discussed above.
Logistics
Logistics consists of the handling and
mixing services of coal and other aggregates at our Convent Marine
Terminal ("CMT"), Lake Terminal, Kanawha River Terminals ("KRT")
and Dismal River Terminal ("DRT").
|
Three Months
Ended
December 31,
|
|
Years Ended
December 31,
|
|
(Dollars in
millions)
|
2020
|
2019
|
Increase/
(Decrease)
|
|
2020
|
2019
|
Increase/
(Decrease)
|
|
Sales and other
operating revenues
|
$
|
11.7
|
|
$
|
14.8
|
|
$
|
(3.1)
|
|
|
$
|
36.0
|
|
$
|
72.8
|
|
$
|
(36.8)
|
|
|
Intersegment
sales
|
$
|
5.3
|
|
$
|
7.0
|
|
$
|
(1.7)
|
|
|
$
|
22.1
|
|
$
|
26.3
|
|
$
|
(4.2)
|
|
|
Adjusted
EBITDA(1)
|
$
|
6.7
|
|
$
|
8.5
|
|
$
|
(1.8)
|
|
|
$
|
17.3
|
|
$
|
42.6
|
|
$
|
(25.3)
|
|
|
Tons handled
(thousands of tons)(2)
|
4,265
|
|
4,971
|
|
(706)
|
|
|
14,678
|
|
21,053
|
|
(6,375)
|
|
|
|
|
(1)
|
See definitions of
Adjusted EBITDA and reconciliation elsewhere in this
release.
|
(2)
|
Reflects inbound tons
handled during the period.
|
- Revenues decreased $3.1 million
for the fourth quarter 2020 and $36.8
million for the full-year 2020. Lower demand and depressed
export pricing drove lower throughput volumes in the fourth quarter
and full-year 2020.
- Adjusted EBITDA decreased $1.8
million for the fourth quarter 2020 and $25.3 million for the full-year 2020 due to coal
customer bankruptcy partially offset by operating and maintenance
cost savings.
Brazil Coke
Brazil Coke consists of a cokemaking
facility in Vitória, Brazil, which
we operate for an affiliate of ArcelorMittal.
- Revenues were $8.8 million and
$31.6 million for the fourth quarter
and full-year 2020, respectively, reflecting a decrease of
$0.3 million and $6.8 million, respectively, as compared to the
same prior year periods. The decrease in full year was driven by
lower volumes and the unfavorable impact of foreign currency.
- Adjusted EBITDA was $3.0 million
and $13.5 million for the fourth
quarter and full-year 2020, respectively, a decrease of
$0.3 million and $2.5 million, respectively, as compared with the
same prior year periods. The decrease in full year was mainly due
to lower volumes.
Corporate and Other
Corporate and other expenses,
which includes activity from our legacy coal mining business, were
$16.0 million and $41.9 million during the fourth quarter and
full-year 2020, respectively, $2.9
million and $4.5 million
higher than during the fourth quarter and full-year 2019,
respectively. Corporate expenses in the current year periods
included foundry related research and development costs of
$1.5 million and $3.9 million during the fourth quarter and
full-year 2020, respectively, as well as higher legacy costs of
approximately $2.0 million during
both the fourth quarter and full-year of 2020, respectively, as
compared to the same prior year periods. These increases to
corporate and other expense were partly offset by lower employee
related expenses.
2021 OUTLOOK
Our 2021 guidance is based on our Domestic Coke plants running
at full capacity with uncontracted capacity filled by export sales
and Foundry coke sales. It also assumes higher volumes at Logistics
facilities.
Our 2021 guidance is as follows:
- Domestic coke total production is expected to be approximately
4.1 million tons
- Consolidated Adjusted EBITDA is expected to be $215 million to $230
million
- Capital expenditures are projected to be approximately
$80 million
- Cash generated by operations is estimated to be between
$160 million and $180 million
- Cash taxes are projected to be between $5 million to $10
million
RELATED COMMUNICATIONS
We will host our quarterly earnings call at 10:30 a.m. Eastern Time (9:30 a.m. Central Time) today. The conference
call will be webcast live and archived for replay in the Investors
section of www.suncoke.com. Investors and analysts may participate
in this call by using the following link:
http://www.directeventreg.com/registration/event/9394703
Upon registration, each participant will be emailed a confirmation,
dial-in details, and a registrant ID.
SUNCOKE ENERGY, INC.
SunCoke Energy, Inc. (NYSE: SXC) supplies high-quality coke to
the integrated steel industry under long-term, take-or-pay
contracts that pass through commodity and certain operating costs
to customers. We utilize an innovative heat-recovery
cokemaking technology that captures excess heat for steam or
electrical power generation. Our cokemaking facilities are located
in Illinois, Indiana, Ohio, Virginia and Brazil. We have more than 60 years of
cokemaking experience serving the integrated steel industry. In
addition, we provide export and domestic material handling services
to coke, coal, steel, power and other bulk and liquids customers.
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. To learn more about SunCoke Energy, Inc.,
visit our website at www.suncoke.com.
SunCoke routinely announces material information to investors
and the marketplace using press releases, Securities and Exchange
Commission filings, public conference calls, webcasts and SunCoke's
website at http://www.suncoke.com/English/investors/sxc. The
information that SunCoke posts to its website may be deemed to be
material. Accordingly, SunCoke encourages investors and others
interested in SunCoke to routinely monitor and review the
information that SunCoke posts on its website, in addition to
following SunCoke's press releases, Securities and Exchange
Commission filings and public conference calls and webcasts.
DEFINITIONS
- Adjusted EBITDA represents earnings before
interest, taxes, depreciation and amortization ("EBITDA"), adjusted
for any impairments, (gain) loss on extinguishment of debt,
restructuring costs, changes to our contingent consideration
liability related to our acquisition of CMT, and/or transaction
costs incurred as part of the Simplification Transaction.
EBITDA and Adjusted EBITDA do not represent and should not be
considered alternatives 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 in assessing operating performance. 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. EBITDA
and Adjusted EBITDA are not measures calculated in accordance with
GAAP, and they should not be considered a substitute for net income
or any other measure of financial performance presented in
accordance with GAAP.
- Adjusted EBITDA attributable to SXC represents
Adjusted EBITDA less Adjusted EBITDA attributable to noncontrolling
interests.
FORWARD-LOOKING STATEMENTS
This press release and related conference call contain
"forward-looking statements" (as defined in Section 27A of the
Securities Act of 1933, as amended and Section 21E of the
Securities Exchange Act of 1934, as amended). Such
forward-looking statements include statements that are not strictly
historical facts, and include, among other things, statements
regarding: our expectations of financial results, condition and
outlook; anticipated effects of the COVID-19 pandemic and
responses thereto, including the pandemic's impact on general
economic and market conditions, as well as on our business, our
customers, our results of operations and financial condition;
anticipated actions to be taken by management to sustain SunCoke
during the economic uncertainty caused by the pandemic and related
business actions; and anticipated actions by governments to contain
the spread of COVID-19 or mitigate the severity thereof.
Forward-looking statements often 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 SunCoke)
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 SunCoke, 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 SunCoke; and
changes in tax, environmental and other laws and regulations
applicable to SunCoke's businesses.
Currently, such risks and uncertainties also include: SunCoke's
ability to manage its business during and after the COVID-19
pandemic; the impact of the COVID-19 pandemic on SunCoke's results
of operations, revenues, earnings and cash flows; SunCoke's ability
to reduce costs and capital spending in response to the COVID-19
pandemic; SunCoke's balance sheet and liquidity throughout and
following the COVID-19 pandemic; SunCoke's prospects for financial
performance and achievement of strategic objectives following the
COVID-19 pandemic; capital allocation strategy following the
COVID-19-related outbreak; and the general impact on our industry
and on the U.S. and global economy resulting from COVID-19,
including actions by domestic and foreign governments and others to
contain the spread, or mitigate the severity, thereof.
Forward-looking statements are not guarantees of future
performance, but are based upon the current knowledge, beliefs and
expectations of SunCoke management, and upon assumptions by SunCoke
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. SunCoke 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.
In accordance with the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995, SunCoke 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 SunCoke. For information concerning these factors and other
important information regarding the matters discussed in this press
release, see SunCoke'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 SunCoke'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,
Inc.
|
Consolidated
Statements of Operations
|
|
|
Three Months
Ended
December 31,
|
|
Years
Ended December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Audited)
|
|
(Dollars and shares in millions,
except per share amounts)
|
Revenues
|
|
|
|
|
|
|
|
Sales and other
operating revenue
|
$
|
310.1
|
|
|
$
|
397.2
|
|
|
$
|
1,333.0
|
|
|
$
|
1,600.3
|
|
Costs and operating
expenses
|
|
|
|
|
|
|
|
Cost of products sold
and operating expenses
|
243.0
|
|
|
323.8
|
|
|
1,048.2
|
|
|
1,277.6
|
|
Selling, general and
administrative expenses
|
30.3
|
|
|
22.9
|
|
|
81.4
|
|
|
75.8
|
|
Depreciation and
amortization expense
|
32.0
|
|
|
34.0
|
|
|
133.7
|
|
|
143.8
|
|
Long-lived asset and
goodwill impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
247.4
|
|
Total costs and
operating expenses
|
305.3
|
|
|
380.7
|
|
|
1,263.3
|
|
|
1,744.6
|
|
Operating income
(loss)
|
4.8
|
|
|
16.5
|
|
|
69.7
|
|
|
(144.3)
|
|
Interest expense,
net
|
13.1
|
|
|
14.7
|
|
|
56.3
|
|
|
60.3
|
|
Gain on
extinguishment of debt, net
|
(2.3)
|
|
|
—
|
|
|
(5.7)
|
|
|
(1.5)
|
|
(Loss) income before
income tax (benefit) expense
|
(6.0)
|
|
|
1.8
|
|
|
19.1
|
|
|
(203.1)
|
|
Income tax (benefit)
expense
|
(2.5)
|
|
|
2.6
|
|
|
10.3
|
|
|
(54.7)
|
|
Net (loss)
income
|
(3.5)
|
|
|
(0.8)
|
|
|
8.8
|
|
|
(148.4)
|
|
Less: Net income
attributable to noncontrolling interests
|
1.5
|
|
|
0.6
|
|
|
5.1
|
|
|
3.9
|
|
Net (loss) income
attributable to SunCoke Energy, Inc.
|
$
|
(5.0)
|
|
|
$
|
(1.4)
|
|
|
$
|
3.7
|
|
|
$
|
(152.3)
|
|
(Loss) earnings
attributable to SunCoke Energy, Inc. per common share:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.06)
|
|
|
$
|
(0.02)
|
|
|
$
|
0.04
|
|
|
$
|
(1.98)
|
|
Diluted
|
$
|
(0.06)
|
|
|
$
|
(0.02)
|
|
|
$
|
0.04
|
|
|
$
|
(1.98)
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
82.8
|
|
|
86.0
|
|
|
83.0
|
|
|
76.8
|
|
Diluted
|
82.8
|
|
|
86.0
|
|
|
83.2
|
|
|
76.8
|
|
SunCoke Energy,
Inc.
|
Consolidated
Balance Sheets
|
|
|
December
31,
|
|
2020
|
|
2019
|
|
(Unaudited)
|
|
(Audited)
|
|
(Dollars in millions, except par
value amounts)
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
48.4
|
|
|
$
|
97.1
|
|
Receivables,
net
|
46.3
|
|
|
59.5
|
|
Inventories
|
126.6
|
|
|
147.0
|
|
Income tax
receivable
|
5.5
|
|
|
2.2
|
|
Other current
assets
|
2.9
|
|
|
2.5
|
|
Total current
assets
|
229.7
|
|
|
308.3
|
|
Properties, plants
and equipment (net of accumulated depreciation of $1,032.9 million
and $903.7 million at December 31, 2020 and 2019,
respectively)
|
1,328.0
|
|
|
1,390.2
|
|
Goodwill and other
intangible assets, net
|
37.2
|
|
|
38.1
|
|
Deferred charges and
other assets
|
18.5
|
|
|
17.2
|
|
Total
assets
|
$
|
1,613.4
|
|
|
$
|
1,753.8
|
|
Liabilities and
Equity
|
|
|
|
Accounts
payable
|
$
|
104.1
|
|
|
$
|
142.4
|
|
Accrued
liabilities
|
49.8
|
|
|
47.3
|
|
Current portion of
financing obligations
|
3.0
|
|
|
2.9
|
|
Interest
payable
|
2.0
|
|
|
2.2
|
|
Total current
liabilities
|
158.9
|
|
|
194.8
|
|
Long-term debt and
financing obligations
|
673.9
|
|
|
780.0
|
|
Accrual for black
lung benefits
|
60.0
|
|
|
50.5
|
|
Retirement benefit
liabilities
|
24.7
|
|
|
24.5
|
|
Deferred income
taxes
|
159.3
|
|
|
147.6
|
|
Asset retirement
obligations
|
11.4
|
|
|
14.4
|
|
Other deferred
credits and liabilities
|
24.3
|
|
|
23.6
|
|
Total
liabilities
|
1,112.5
|
|
|
1,235.4
|
|
Equity
|
|
|
|
Preferred stock,
$0.01 par value. Authorized 50,000,000 shares; no issued shares at
both December 31, 2020 and 2019
|
—
|
|
|
—
|
|
Common stock, $0.01
par value. Authorized 300,000,000 shares; issued 98,177,941 and
98,047,389 shares at December 31, 2020 and 2019,
respectively
|
1.0
|
|
|
1.0
|
|
Treasury stock,
15,404,482 and 13,783,182 shares at December 31, 2020 and
2019, respectively
|
(184.0)
|
|
|
(177.0)
|
|
Additional paid-in
capital
|
715.7
|
|
|
712.1
|
|
Accumulated other
comprehensive loss
|
(17.1)
|
|
|
(14.4)
|
|
Retained
deficit
|
(46.6)
|
|
|
(30.1)
|
|
Total SunCoke Energy,
Inc. stockholders' equity
|
469.0
|
|
|
491.6
|
|
Noncontrolling
interests
|
31.9
|
|
|
26.8
|
|
Total
equity
|
500.9
|
|
|
518.4
|
|
Total liabilities and
equity
|
$
|
1,613.4
|
|
|
$
|
1,753.8
|
|
SunCoke Energy,
Inc.
|
Consolidated
Statements of Cash Flows
|
|
|
Years Ended
December 31,
|
|
2020
|
|
2019
|
|
(Unaudited)
|
|
(Audited)
|
|
(Dollars in
millions)
|
Cash Flows from
Operating Activities:
|
|
|
|
Net income
(loss)
|
$
|
8.8
|
|
|
$
|
(148.4)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
Long-lived asset and
goodwill impairment
|
—
|
|
|
247.4
|
|
Depreciation and
amortization expense
|
133.7
|
|
|
143.8
|
|
Deferred income tax
expense (benefit)
|
12.1
|
|
|
(63.1)
|
|
Payments in excess of
expense for postretirement plan benefits
|
(1.7)
|
|
|
(1.9)
|
|
Share-based
compensation expense
|
3.8
|
|
|
4.5
|
|
Gain on extinguishment
of debt, net
|
(5.7)
|
|
|
(1.5)
|
|
Changes in working
capital pertaining to operating activities:
|
|
|
|
Receivables,
net
|
13.2
|
|
|
15.9
|
|
Inventories
|
21.8
|
|
|
(36.6)
|
|
Accounts
payable
|
(38.0)
|
|
|
23.5
|
|
Accrued
liabilities
|
2.5
|
|
|
(2.4)
|
|
Interest
payable
|
(0.2)
|
|
|
(1.4)
|
|
Income
taxes
|
(3.3)
|
|
|
(1.5)
|
|
Other
|
10.8
|
|
|
3.6
|
|
Net cash provided by
operating activities
|
157.8
|
|
|
181.9
|
|
Cash Flows from
Investing Activities:
|
|
|
|
Capital
expenditures
|
(73.9)
|
|
|
(110.1)
|
|
Other investing
activities
|
(1.4)
|
|
|
0.3
|
|
Net cash used in
investing activities
|
(75.3)
|
|
|
(109.8)
|
|
Cash Flows from
Financing Activities:
|
|
|
|
Repayment of
long-term debt
|
(55.9)
|
|
|
(90.5)
|
|
Debt issuance
costs
|
—
|
|
|
(2.1)
|
|
Proceeds from
revolving facility
|
629.9
|
|
|
408.6
|
|
Repayment of
revolving facility
|
(684.9)
|
|
|
(370.3)
|
|
Proceeds from
financing obligation
|
10.0
|
|
|
—
|
|
Repayment of
financing obligations
|
(3.0)
|
|
|
(2.9)
|
|
Dividends
paid
|
(19.9)
|
|
|
(5.1)
|
|
Shares
repurchased
|
(7.0)
|
|
|
(36.3)
|
|
Cash distributions to
noncontrolling interests
|
—
|
|
|
(14.2)
|
|
Other financing
activities
|
(0.4)
|
|
|
(7.9)
|
|
Net cash used in
financing activities
|
(131.2)
|
|
|
(120.7)
|
|
Net (decrease)
increase in cash and cash equivalents
|
(48.7)
|
|
|
(48.6)
|
|
Cash and cash
equivalents at beginning of year
|
97.1
|
|
|
145.7
|
|
Cash and cash
equivalents at end of year
|
$
|
48.4
|
|
|
$
|
97.1
|
|
Supplemental
Disclosure of Cash Flow Information
|
|
|
|
Interest paid, net of
capitalized interest of $0.2 million and $2.3 million,
respectively
|
$
|
51.8
|
|
|
$
|
58.2
|
|
Income taxes paid,
net of refunds of $3.0 million and $0.3 million,
respectively
|
$
|
1.1
|
|
|
$
|
9.5
|
|
SunCoke Energy,
Inc.
|
Segment Operating
Data
|
|
|
Three Months
Ended
December 31,
|
|
Years Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Unaudited)
|
|
(Audited)
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
Sales and other
operating revenues:
|
|
|
|
|
|
|
|
Domestic
Coke
|
$
|
289.6
|
|
|
$
|
373.3
|
|
|
$
|
1,265.4
|
|
|
$
|
1,489.1
|
|
Brazil
Coke
|
8.8
|
|
|
9.1
|
|
|
31.6
|
|
|
38.4
|
|
Logistics
|
11.7
|
|
|
14.8
|
|
|
36.0
|
|
|
72.8
|
|
Logistics
intersegment sales
|
5.3
|
|
|
7.0
|
|
|
22.1
|
|
|
26.3
|
|
Elimination of
intersegment sales
|
(5.3)
|
|
|
(7.0)
|
|
|
(22.1)
|
|
|
(26.3)
|
|
Total sales and other
operating revenue
|
$
|
310.1
|
|
|
$
|
397.2
|
|
|
$
|
1,333.0
|
|
|
$
|
1,600.3
|
|
Adjusted
EBITDA(1)
|
|
|
|
|
|
|
|
Domestic
Coke
|
$
|
43.3
|
|
|
$
|
52.1
|
|
|
$
|
217.0
|
|
|
$
|
226.7
|
|
Brazil Coke
|
3.0
|
|
|
3.3
|
|
|
13.5
|
|
|
16.0
|
|
Logistics
|
6.7
|
|
|
8.5
|
|
|
17.3
|
|
|
42.6
|
|
Corporate and
Other(2)
|
(16.0)
|
|
|
(13.1)
|
|
|
(41.9)
|
|
|
(37.4)
|
|
Total Adjusted
EBITDA
|
$
|
37.0
|
|
|
$
|
50.8
|
|
|
$
|
205.9
|
|
|
$
|
247.9
|
|
Coke Operating
Data:
|
|
|
|
|
|
|
|
Domestic Coke
capacity utilization (%)
|
85
|
%
|
|
100
|
%
|
|
91
|
%
|
|
98
|
%
|
Domestic Coke
production volumes (thousands of tons)
|
907
|
|
|
1,073
|
|
|
3,840
|
|
|
4,168
|
|
Domestic Coke sales
volumes (thousands of tons)
|
880
|
|
|
1,080
|
|
|
3,789
|
|
|
4,171
|
|
Domestic Coke
Adjusted EBITDA per ton(3)
|
$
|
49.20
|
|
|
$
|
48.24
|
|
|
$
|
57.27
|
|
|
$
|
54.35
|
|
Brazilian Coke
production—operated facility (thousands of tons)
|
415
|
|
|
371
|
|
|
1,396
|
|
|
1,641
|
|
Logistics
Operating Data:
|
|
|
|
|
|
|
|
Tons handled
(thousands of tons)(4)
|
4,265
|
|
|
4,971
|
|
|
14,678
|
|
|
21,053
|
|
|
|
(1)
|
See definition of
Adjusted EBITDA and reconciliation to GAAP elsewhere in this
release.
|
(2)
|
Corporate and Other
includes the activity from our legacy coal mining business, which
incurred Adjusted EBITDA losses of $7.4 million and $13.2 million
during the three and twelve months ended December 31, 2020,
respectively, as well as losses of $5.4 million and $11.2 million
during the three and twelve months ended December 31, 2019,
respectively. Additionally, Corporate and Other includes foundry
related research and development costs of $3.9 million during
2020.
|
(3)
|
Reflects Domestic
Coke Adjusted EBITDA divided by Domestic Coke sales
volumes.
|
(4)
|
Reflects inbound tons
handled during the period.
|
SunCoke Energy,
Inc.
|
Reconciliation of
Non-GAAP Information
|
Adjusted Net
(Loss) Income to Adjusted EBITDA
|
|
|
Three Months
Ended
December 31,
|
|
Years Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Audited)
|
|
(Dollars in
millions)
|
Net (loss) income
attributable to SunCoke Energy, Inc.
|
$
|
(5.0)
|
|
|
$
|
(1.4)
|
|
|
$
|
3.7
|
|
|
$
|
(152.3)
|
|
Add: Net income
attributable to noncontrolling interests
|
1.5
|
|
|
0.6
|
|
|
5.1
|
|
|
3.9
|
|
Net (loss)
income
|
$
|
(3.5)
|
|
|
$
|
(0.8)
|
|
|
$
|
8.8
|
|
|
$
|
(148.4)
|
|
Add:
|
|
|
|
|
|
|
|
Long-lived asset and
goodwill impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
247.4
|
|
Depreciation and
amortization expense
|
32.0
|
|
|
34.0
|
|
|
133.7
|
|
|
143.8
|
|
Interest expense,
net
|
13.1
|
|
|
14.7
|
|
|
56.3
|
|
|
60.3
|
|
Gain on extinguishment
of debt, net
|
(2.3)
|
|
|
—
|
|
|
(5.7)
|
|
|
(1.5)
|
|
Income tax (benefit)
expense
|
(2.5)
|
|
|
2.6
|
|
|
10.3
|
|
|
(54.7)
|
|
Contingent
consideration adjustments(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.2)
|
|
Restructuring
costs(2)
|
0.2
|
|
|
—
|
|
|
2.5
|
|
|
—
|
|
Simplification
Transaction costs(3)
|
—
|
|
|
0.3
|
|
|
—
|
|
|
5.2
|
|
Adjusted
EBITDA
|
$
|
37.0
|
|
|
$
|
50.8
|
|
|
$
|
205.9
|
|
|
$
|
247.9
|
|
Subtract: Adjusted
EBITDA attributable to noncontrolling
interest(4)
|
2.5
|
|
|
1.6
|
|
|
9.1
|
|
|
40.7
|
|
Adjusted EBITDA
attributable to SunCoke Energy, Inc.
|
$
|
34.5
|
|
|
$
|
49.2
|
|
|
$
|
196.8
|
|
|
$
|
207.2
|
|
|
|
(1)
|
In connection with
the CMT acquisition, the Partnership entered into a contingent
consideration arrangement that required the Partnership to make
future payments to the seller based on future volume over a
specified threshold, price and contract renewals. Adjustments
to the fair value of the contingent consideration were primarily
the result of modifications to the volume forecast. Customer events
during the third quarter of 2019 reduced contingent consideration
liability to zero.
|
(2)
|
Charges related to a
company-wide restructuring and cost-reduction
initiative.
|
(3)
|
Costs expensed by the
Partnership associated with SunCoke's acquisition of all
outstanding Partnership common units not already owned by SunCoke
on June 28, 2019 ("Simplification Transaction").
|
(4)
|
Reflects
noncontrolling interests in Indiana Harbor and the portion of the
Partnership owned by public unitholder prior to the closing of the
Simplification Transaction.
|
SunCoke Energy,
Inc.
|
Reconciliation of
Non-GAAP Information
|
Estimated 2021
Consolidated Adjusted EBITDA to Estimated Net Income
|
|
|
|
2021
|
|
|
Low
|
|
High
|
Net
income
|
|
$
|
15
|
|
|
$
|
35
|
|
Add:
|
|
|
|
|
Depreciation and
amortization expense
|
|
137
|
|
|
133
|
|
Interest expense,
net
|
|
55
|
|
|
50
|
|
Income tax
expense
|
|
8
|
|
|
12
|
|
Adjusted
EBITDA
|
|
$
|
215
|
|
|
$
|
230
|
|
Subtract: Adjusted
EBITDA attributable to noncontrolling
interest(1)
|
|
9
|
|
|
9
|
|
Adjusted EBITDA
attributable to SunCoke Energy, Inc.
|
|
$
|
206
|
|
|
$
|
221
|
|
|
|
(1)
|
Reflects
non-controlling interest in Indiana Harbor.
|
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SOURCE SunCoke Energy, Inc.