LISLE, Ill., July 27, 2017 /PRNewswire/ --
- Net loss attributable to SXCP was $12.9
million in the second quarter 2017, down $25.0 million versus the prior year period
primarily driven by $19.9 million of
debt extinguishment costs related to our debt refinancing
activities in the current year period
- Adjusted EBITDA attributable to SXCP was $42.2 million for the quarter, up $1.3 million versus the prior year period
- Second quarter 2017 Distributable Cash Flow ("DCF") and
Distribution Cash Coverage Ratio ("Cash Coverage") of $18.0 million and 0.61x, respectively, include
$8.4 million repayment of deferred
corporate costs and IDRs to SXC; excluding the repayment, DCF and
Cash Coverage were $26.4 million and
0.89x, respectively
- Declared second quarter 2017 distribution of $0.5940 per unit
- Reaffirm full-year 2017 Adjusted EBITDA attributable to SXCP
guidance of $210 million to $220
million
SunCoke Energy Partners, L.P. (NYSE: SXCP) today reported
results for the second quarter 2017, which reflect comparable
consolidated operating results and current period charges related
to debt refinancing completed in the quarter.
"Our second quarter operating performance finished in line with
our expectations and positions us to achieve our financial guidance
targets in 2017," said Fritz
Henderson, Chairman, President and Chief Executive Officer
of SunCoke Energy Partners, L.P. "Additionally, in the
quarter we successfully completed our debt refinancing which
extends our revolver and note maturities and provides the
flexibility to execute our growth and capital allocation strategies
going forward."
SECOND QUARTER RESULTS
|
Three Months Ended
June 30,
|
(Dollars in
millions)
|
2017
|
|
2016
|
|
Increase/
(Decrease)
|
Revenues
|
$
|
200.6
|
|
|
$
|
181.4
|
|
|
$
|
19.2
|
|
Adjusted
EBITDA(1)
|
$
|
43.0
|
|
|
$
|
41.7
|
|
|
$
|
1.3
|
|
Net (loss) income
attributable to SXCP
|
$
|
(12.9)
|
|
|
$
|
12.1
|
|
|
$
|
(25.0)
|
|
|
|
(1)
|
See definition
of Adjusted EBITDA and reconciliation elsewhere in this
release.
|
Revenues in second quarter 2017 increased $19.2 million from the same prior year period,
reflecting the pass-through of higher coal prices in our Domestic
Coke segment as well as higher sales volumes in our Coal Logistics
segment.
Adjusted EBITDA in the quarter increased $1.3 million primarily due to higher sales
volumes in our Coal Logistics segment as compared to the same prior
year period. This improvement was partially offset by the impacts
of a planned outage at our Granite
City facility in the current quarter.
Net loss attributable to SXCP in the second quarter 2017 was
$12.9 million, compared to a net gain
of $12.1 million in the prior year
period. This $25.0 million
change is primarily driven by $19.9
million of debt extinguishment costs related to our debt
refinancing activities in the current year period, compared to
$3.5 million of debt extinguishment
gains recorded in the prior year period.
SECOND 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
June 30,
|
(Dollars in
millions, except per ton amounts)
|
2017
|
|
2016
|
|
Increase/
(Decrease)
|
Revenues
|
$
|
182.0
|
|
|
$
|
167.5
|
|
|
$
|
14.5
|
|
Adjusted
EBITDA(1)
|
$
|
37.5
|
|
|
$
|
41.1
|
|
|
$
|
(3.6)
|
|
Sales Volume
(thousands of tons)
|
569
|
|
|
579
|
|
|
(10)
|
|
Adjusted EBITDA per
ton(2)
|
$
|
65.91
|
|
|
$
|
70.98
|
|
|
$
|
(5.07)
|
|
|
|
(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 $14.5 million,
reflecting the pass-through of higher coal prices in our Domestic
Coke segment, partially offset by lower energy sales due to the
planned outage at our Granite City
facility in the current year period.
- Adjusted EBITDA decreased $3.6
million, driven primarily by lower energy sales and higher
operating and maintenance spend for the planned Granite City outage described above.
Coal Logistics
Coal Logistics consists of the coal handling and mixing services
operated by SXCP at Convent Marine Terminal ("CMT") located on the
Mississippi river in Louisiana,
Lake Terminal in East Chicago,
Indiana and Kanawha River Terminals, LLC ("KRT"), which has
terminals along the Ohio and Kanawha rivers in West Virginia.
|
Three Months Ended
June 30,
|
(Dollars in
millions, except per ton amounts)
|
2017
|
|
2016
|
|
Increase/(Decrease)
|
Revenues
|
$
|
18.6
|
|
|
$
|
13.9
|
|
|
$
|
4.7
|
|
Intersegment
sales
|
$
|
1.5
|
|
|
$
|
1.7
|
|
|
$
|
(0.2)
|
|
Adjusted
EBITDA(1)
|
$
|
9.6
|
|
|
$
|
5.3
|
|
|
$
|
4.3
|
|
Tons handled
(thousands of tons)(2)
|
4,909
|
|
|
3,938
|
|
|
971
|
|
CMT take-or-pay
shortfall tons (thousands of tons)(3)
|
956
|
|
|
1,616
|
|
|
(660)
|
|
|
|
(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 and Adjusted EBITDA were up $4.7 million and $4.3
million, respectively, driven by higher sales volumes at our
CMT and KRT terminals in the current year period.
Corporate and Other
Corporate and other expenses improved $0.6 million to $4.1 million due to lower
spending on professional services in the current year period.
RELATED COMMUNICATIONS
We will host our quarterly earnings call at 10:00 a.m.
Eastern Time (9:00 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
may participate in this call by dialing 1-866-393-4306 in the U.S.
or 1-617-826-1698 if outside the U.S., confirmation code
47072600.
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 coal handling services to the coke, coal, steel and power
industries. 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 coal handling terminals have the
collective capacity to blend and transload more than 35 million
tons of coal 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 more than 50 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,
loss (gain) on extinguishment of debt, taxes, depreciation and
amortization, adjusted for changes to our contingent consideration
liability related to our acquisition of CMT and the expiration of
certain acquired contractual obligations. Adjusted EBITDA
does not represent and should not be considered an alternative to
net income or operating income under 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 Coal 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.
- 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 and includes capital
expenditures included in working capital at the end of the
period.
- 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.
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
Operations (Unaudited)
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars and units
in millions, except per unit amounts)
|
Revenues
|
|
|
|
|
|
|
|
|
Sales and other
operating revenue
|
|
$
|
200.6
|
|
|
$
|
181.4
|
|
|
$
|
396.2
|
|
|
$
|
375.9
|
|
Costs and
operating expenses
|
|
|
|
|
|
|
|
|
Cost of products sold
and operating expenses
|
|
149.4
|
|
|
128.6
|
|
|
284.8
|
|
|
262.8
|
|
Selling, general and
administrative expenses
|
|
8.5
|
|
|
11.1
|
|
|
17.0
|
|
|
19.5
|
|
Depreciation and
amortization expense
|
|
21.5
|
|
|
20.5
|
|
|
43.1
|
|
|
39.2
|
|
Total costs and
operating expenses
|
|
179.4
|
|
|
160.2
|
|
|
344.9
|
|
|
321.5
|
|
Operating
income
|
|
21.2
|
|
|
21.2
|
|
|
51.3
|
|
|
54.4
|
|
Interest expense,
net
|
|
14.0
|
|
|
11.7
|
|
|
26.6
|
|
|
24.2
|
|
Loss (gain) on
extinguishment of debt(1)
|
|
19.9
|
|
|
(3.5)
|
|
|
19.9
|
|
|
(23.9)
|
|
(Loss) income before
income tax (benefit) expense
|
|
(12.7)
|
|
|
13.0
|
|
|
4.8
|
|
|
54.1
|
|
Income tax (benefit)
expense(2)
|
|
(0.2)
|
|
|
0.4
|
|
|
149.0
|
|
|
1.0
|
|
Net (loss)
income
|
|
(12.5)
|
|
|
12.6
|
|
|
(144.2)
|
|
|
53.1
|
|
Less: Net income
(loss) attributable to noncontrolling interests
|
|
0.4
|
|
|
0.5
|
|
|
(2.0)
|
|
|
1.2
|
|
Net (loss) income
attributable to SunCoke Energy Partners, L.P.
|
|
$
|
(12.9)
|
|
|
$
|
12.1
|
|
|
$
|
(142.2)
|
|
|
$
|
51.9
|
|
|
|
|
|
|
|
|
|
|
General partner's
interest in net income (loss)
|
|
$
|
1.2
|
|
|
$
|
1.7
|
|
|
$
|
(0.1)
|
|
|
$
|
11.8
|
|
Limited partners'
interest in net (loss) income
|
|
$
|
(14.1)
|
|
|
$
|
10.4
|
|
|
$
|
(142.1)
|
|
|
$
|
40.1
|
|
Net (loss) income per
common unit (basic and diluted)
|
|
$
|
(0.30)
|
|
|
$
|
0.23
|
|
|
$
|
(3.08)
|
|
|
$
|
0.86
|
|
Weighted average
common units outstanding (basic and diluted)
|
|
46.2
|
|
|
46.2
|
|
|
46.2
|
|
|
46.2
|
|
|
|
(1)
|
The Partnership
recorded a loss on extinguishment of debt as a result of its debt
refinancing activities during the second quarter of 2017. The
Partnership recorded a gain on extinguishment of debt as a result
of senior note repurchases through the first half of
2016.
|
|
|
(2)
|
In January 2017, the
Internal Revenue Service ("IRS") announced its decision to exclude
cokemaking as a qualifying income generating activity in its final
regulations (the "Final Regulations") issued under section
7704(d)(1)(E) of the Internal Revenue Code relating to the
qualifying income exception for publicly traded partnerships.
However, the Final Regulations include a transition period for
activities that were reasonably interpreted to be qualifying income
and carried on by publicly traded partnerships prior to the Final
Regulations. The Partnership previously received a will-level
opinion from its counsel, Vinson & Elkins LLP, that the
Partnership's cokemaking operations generated qualifying income
prior to the Final Regulations. Therefore, the Partnership believes
it had a reasonable basis to conclude its cokemaking operations
were considered qualifying income before the issuance of the new
regulations and as such expects to maintain its treatment as a
partnership through the transition period. Cokemaking entities in
the Partnership will become taxable as corporations on January 1,
2028, after the transition period ends.
|
|
|
|
As a result of the
Final Regulations, the Partnership recorded deferred income tax
expense of $148.6 million to setup its initial deferred income tax
liability during the first quarter of 2017, primarily related to
differences in the book and tax basis of fixed assets, which are
expected to exist at the end of the 10-year transition period when
the cokemaking operations become taxable.
|
SunCoke Energy
Partners, L.P. Consolidated Balance Sheets
|
|
|
|
June 30,
2017
|
|
December 31,
2016
|
|
|
(Unaudited)
|
|
|
|
|
(Dollars in
millions)
|
Assets
|
|
|
Cash and cash
equivalents
|
|
$
|
23.5
|
|
|
$
|
41.8
|
|
Receivables
|
|
45.9
|
|
|
39.7
|
|
Receivables from
affiliate, net
|
|
2.1
|
|
|
—
|
|
Inventories
|
|
82.5
|
|
|
66.9
|
|
Other current
assets
|
|
3.5
|
|
|
1.6
|
|
Total current
assets
|
|
157.5
|
|
|
150.0
|
|
Properties, plants
and equipment (net of accumulated depreciation of $390.1 million
and $352.6 million at June 30, 2017 and December 31, 2016,
respectively)
|
|
1,273.8
|
|
|
1,294.9
|
|
Goodwill
|
|
73.5
|
|
|
73.5
|
|
Other intangible
assets, net
|
|
171.5
|
|
|
176.7
|
|
Deferred charges and
other assets
|
|
0.7
|
|
|
0.9
|
|
Total
assets
|
|
$
|
1,677.0
|
|
|
$
|
1,696.0
|
|
Liabilities and
Equity
|
|
|
|
|
Accounts
payable
|
|
$
|
66.8
|
|
|
$
|
47.0
|
|
Accrued
liabilities
|
|
11.5
|
|
|
11.7
|
|
Deferred
revenue
|
|
12.0
|
|
|
2.5
|
|
Current portion of
long-term debt and financing obligation
|
|
3.7
|
|
|
4.9
|
|
Interest
payable
|
|
5.2
|
|
|
14.7
|
|
Payable to affiliate,
net
|
|
—
|
|
|
4.7
|
|
Total current
liabilities
|
|
99.2
|
|
|
85.5
|
|
Long-term debt and
financing obligation
|
|
827.8
|
|
|
805.7
|
|
Deferred income
taxes
|
|
186.7
|
|
|
37.9
|
|
Other deferred
credits and liabilities
|
|
13.7
|
|
|
13.2
|
|
Total
liabilities
|
|
1,127.4
|
|
|
942.3
|
|
Equity
|
|
|
|
|
Held by
public:
|
|
|
|
|
Common
units (issued 19,347,604 and 20,800,181 units at June 30, 2017
and December 31, 2016, respectively)
|
|
193.2
|
|
|
296.9
|
|
Held by
parent:
|
|
|
|
|
Common units (issued
26,876,100 and 25,415,696 units at June 30, 2017 and December 31,
2016, respectively)
|
|
317.1
|
|
|
410.3
|
|
General partner
interest
|
|
28.0
|
|
|
32.1
|
|
Partners' capital
attributable to SunCoke Energy Partners, L.P.
|
|
538.3
|
|
|
739.3
|
|
Noncontrolling
interest
|
|
11.3
|
|
|
14.4
|
|
Total
equity
|
|
549.6
|
|
|
753.7
|
|
Total liabilities and
equity
|
|
$
|
1,677.0
|
|
|
$
|
1,696.0
|
|
SunCoke Energy
Partners, L.P. Consolidated Statements of Cash
Flows (Unaudited)
|
|
|
|
Six Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
Cash Flows from
Operating Activities:
|
|
|
|
|
Net (loss)
income
|
|
$
|
(144.2)
|
|
|
$
|
53.1
|
|
Adjustments to
reconcile net (loss) income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization expense
|
|
43.1
|
|
|
39.2
|
|
Deferred income tax
expense
|
|
148.8
|
|
|
0.4
|
|
Loss (gain) on
extinguishment of debt
|
|
19.9
|
|
|
(23.9)
|
|
Changes in working
capital pertaining to operating activities:
|
|
|
|
|
Receivables
|
|
(6.2)
|
|
|
5.3
|
|
Receivables
(payables) from affiliate, net
|
|
(5.4)
|
|
|
9.4
|
|
Inventories
|
|
(15.6)
|
|
|
4.3
|
|
Accounts
payable
|
|
12.0
|
|
|
5.3
|
|
Accrued
liabilities
|
|
(0.2)
|
|
|
2.5
|
|
Deferred
revenue
|
|
9.5
|
|
|
18.2
|
|
Interest
payable
|
|
(9.5)
|
|
|
(2.2)
|
|
Other
|
|
(0.6)
|
|
|
(3.5)
|
|
Net cash provided by
operating activities
|
|
51.6
|
|
|
108.1
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
Capital
expenditures
|
|
(9.9)
|
|
|
(22.1)
|
|
Decrease in
restricted cash
|
|
0.1
|
|
|
15.4
|
|
Other investing
activities
|
|
—
|
|
|
2.1
|
|
Net cash used in
investing activities
|
|
(9.8)
|
|
|
(4.6)
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
Proceeds from
issuance of long-term debt
|
|
620.6
|
|
|
—
|
|
Repayment of
long-term debt
|
|
(532.2)
|
|
|
(47.0)
|
|
Repayment of
financing obligation
|
|
(1.2)
|
|
|
—
|
|
Proceeds from
revolving credit facility
|
|
128.0
|
|
|
20.0
|
|
Repayment of
revolving credit facility
|
|
(200.0)
|
|
|
(20.0)
|
|
Debt issuance
costs
|
|
(13.9)
|
|
|
—
|
|
Distributions to
unitholders (public and parent)
|
|
(60.3)
|
|
|
(57.5)
|
|
Distributions to
noncontrolling interest (SunCoke Energy, Inc.)
|
|
(1.1)
|
|
|
(1.9)
|
|
Capital contributions
from SunCoke
|
|
—
|
|
|
8.4
|
|
Net cash used in
financing activities
|
|
(60.1)
|
|
|
(98.0)
|
|
Net (decrease)
increase in cash and cash equivalents
|
|
(18.3)
|
|
|
5.5
|
|
Cash and cash
equivalents at beginning of period
|
|
41.8
|
|
|
48.6
|
|
Cash and cash
equivalents at end of period
|
|
$
|
23.5
|
|
|
$
|
54.1
|
|
Supplemental
Disclosure of Cash Flow Information
|
|
|
|
|
Interest
paid
|
|
$
|
35.5
|
|
|
$
|
28.3
|
|
SunCoke Energy
Partners, L.P. Segment Operating Data The
following tables set forth financial and operating data for the
three months ended June 30, 2017 and 2016:
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
Sales and other
operating revenues:
|
|
|
|
|
|
|
|
Domestic
Coke
|
$
|
182.0
|
|
|
$
|
167.5
|
|
|
$
|
355.2
|
|
|
$
|
346.4
|
|
Coal
Logistics
|
18.6
|
|
|
13.9
|
|
|
41.0
|
|
|
29.5
|
|
Coal Logistics
intersegment sales
|
1.5
|
|
|
1.7
|
|
|
3.3
|
|
|
3.2
|
|
Elimination of
intersegment sales
|
(1.5)
|
|
|
(1.7)
|
|
|
(3.3)
|
|
|
(3.2)
|
|
Total Sales and other
operating revenues
|
$
|
200.6
|
|
|
$
|
181.4
|
|
|
$
|
396.2
|
|
|
$
|
375.9
|
|
Adjusted
EBITDA(1):
|
|
|
|
|
|
|
|
Domestic
Coke
|
$
|
37.5
|
|
|
$
|
41.1
|
|
|
$
|
80.0
|
|
|
$
|
87.4
|
|
Coal
Logistics
|
9.6
|
|
|
5.3
|
|
|
22.6
|
|
|
11.2
|
|
Corporate and
Other
|
(4.1)
|
|
|
(4.7)
|
|
|
(7.9)
|
|
|
(8.7)
|
|
Total Adjusted
EBITDA
|
$
|
43.0
|
|
|
$
|
41.7
|
|
|
$
|
94.7
|
|
|
$
|
89.9
|
|
Coke Operating
Data:
|
|
|
|
|
|
|
|
Domestic Coke
capacity utilization (%)
|
98
|
|
|
101
|
|
|
99
|
|
|
102
|
|
Domestic Coke
production volumes (thousands of tons)
|
565
|
|
|
583
|
|
|
1,132
|
|
|
1,158
|
|
Domestic Coke sales
volumes (thousands of tons)
|
569
|
|
|
579
|
|
|
1,133
|
|
|
1,160
|
|
Domestic Coke
Adjusted EBITDA per ton(2)
|
$
|
65.91
|
|
|
$
|
70.98
|
|
|
$
|
70.61
|
|
|
$
|
75.34
|
|
Coal Logistics
Operating Data:
|
|
|
|
|
|
|
|
Tons handled
(thousands of tons)(3)
|
4,909
|
|
|
3,938
|
|
|
10,358
|
|
|
7,973
|
|
CMT take-or-pay
shortfall tons (thousands of tons)(4)
|
956
|
|
|
1,616
|
|
|
1,500
|
|
|
3,254
|
|
|
|
(1)
|
See definition of
Adjusted EBITDA and reconciliation 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 Cash Provided by Operating
Activities to Net (Loss) Income and Adjusted
EBITDA
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
Net cash provided by
operating activities
|
|
$
|
12.2
|
|
|
$
|
67.7
|
|
|
$
|
51.6
|
|
|
$
|
108.1
|
|
Subtract:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
21.5
|
|
|
20.5
|
|
|
43.1
|
|
|
39.2
|
|
Loss (gain) on
extinguishment of debt
|
|
19.9
|
|
|
(3.5)
|
|
|
19.9
|
|
|
(23.9)
|
|
Deferred income tax
(benefit) expense
|
|
(0.4)
|
|
|
0.1
|
|
|
148.8
|
|
|
0.4
|
|
Changes in working
capital and other
|
|
(16.3)
|
|
|
38.0
|
|
|
(16.0)
|
|
|
39.3
|
|
Net (loss)
income
|
|
$
|
(12.5)
|
|
|
$
|
12.6
|
|
|
$
|
(144.2)
|
|
|
$
|
53.1
|
|
Add:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
$
|
21.5
|
|
|
$
|
20.5
|
|
|
$
|
43.1
|
|
|
$
|
39.2
|
|
Interest expense,
net
|
|
14.0
|
|
|
11.7
|
|
|
26.6
|
|
|
24.2
|
|
Loss (gain) on
extinguishment of debt
|
|
19.9
|
|
|
(3.5)
|
|
|
19.9
|
|
|
(23.9)
|
|
Income tax (benefit)
expense, net
|
|
(0.2)
|
|
|
0.4
|
|
|
149.0
|
|
|
1.0
|
|
Contingent
consideration adjustments(1)
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
(3.7)
|
|
Adjusted
EBITDA(2)
|
|
$
|
43.0
|
|
|
$
|
41.7
|
|
|
$
|
94.7
|
|
|
$
|
89.9
|
|
Subtract:
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
attributable to noncontrolling interest (3)
|
|
0.8
|
|
|
0.8
|
|
|
1.6
|
|
|
1.7
|
|
Adjusted EBITDA
attributable to SunCoke Energy Partners, L.P.
|
|
$
|
42.2
|
|
|
$
|
40.9
|
|
|
$
|
93.1
|
|
|
$
|
88.2
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
As a result of the
increase in fair value of the contingent consideration liability
during the second quarter of 2017, the Partnership recognized
expense of $0.3 million during the three and six months ended June
30, 2017. The Partnership amended its contingent consideration
terms with The Cline Group during the first quarter of 2016.
This amendment resulted in a gain of $3.7 million recorded during
the six months ended June 30, 2016.
|
(2)
|
In accordance with
the SEC's May 2016 update to its guidance on the appropriate use of
non-GAAP financial measures, Adjusted EBITDA does not include Coal
Logistics deferred revenue until it is recognized as GAAP
revenue.
|
(3)
|
Reflects net income
attributable to noncontrolling interest adjusted for noncontrolling
interest's share of interest, taxes, income, and depreciation and
amortization.
|
SunCoke Energy
Partners, L.P. Reconciliations of Non-GAAP
Information Net Cash Provided by Operating
Activities to Net Loss to Adjusted EBITDA
and Distributable Cash Flow
|
|
|
|
Three Months
Ended
June 30, 2017
|
|
|
(Dollars in
millions)
|
Net cash
provided by operating activities
|
|
$
|
12.2
|
|
Less:
|
|
|
Depreciation and
amortization expense
|
|
21.5
|
|
Loss on debt
extinguishment
|
|
19.9
|
|
Deferred income tax
benefit
|
|
(0.4)
|
|
Changes in working
capital and other
|
|
(16.3)
|
|
Net
loss
|
|
$
|
(12.5)
|
|
|
|
|
Add:
|
|
|
Depreciation and
amortization expense
|
|
21.5
|
|
Interest expense,
net
|
|
14.0
|
|
Loss on
extinguishment of debt
|
|
19.9
|
|
Income tax
benefit
|
|
(0.2)
|
|
Contingent
consideration adjustments(1)
|
|
0.3
|
|
Adjusted
EBITDA
|
|
$
|
43.0
|
|
|
|
|
Less:
|
|
|
Adjusted EBITDA attributable to noncontrolling
interest(1)
|
|
0.8
|
|
Adjusted EBITDA
attributable to SXCP
|
|
$
|
42.2
|
|
|
|
|
Plus:
|
|
|
Coal Logistics
deferred revenue(2)
|
|
5.5
|
|
Less:
|
|
|
Repayment of
Corporate cost holiday / deferral
|
|
8.4
|
|
Ongoing
capex
|
|
5.1
|
|
Replacement capex
accrual
|
|
1.9
|
|
Cash interest
accrual
|
|
13.7
|
|
Cash tax
accrual(3)
|
|
0.6
|
|
Distributable
cash flow
|
|
$
|
18.0
|
|
|
|
|
Quarterly Cash
Distribution
|
|
$
|
29.5
|
|
Distribution
Coverage Ratio(4)
|
|
0.61
|
|
|
|
(1)
|
Reflects net income
attributable to noncontrolling interest adjusted for noncontrolling
interest's share of interest, taxes, income, and depreciation and
amortization.
|
(2)
|
Coal Logistics
deferred revenue adjusts for coal and liquid tons the Partnership
did not handle, but are included in Distributable Cash Flow as the
associated take-or-pay fees are billed to the customer.
Deferred revenue on take-or-pay contracts is recognized into GAAP
income annually based on the terms of the contract, at which time
it will be excluded from Distributable Cash Flow.
|
(3)
|
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.
|
(4)
|
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 2017 Net Cash Provided by Operating
Activities to Net Loss to Consolidated Adjusted
EBITDA and Distributable Cash Flow (updated
post-refinancing)
|
|
|
|
2017
|
|
|
Low
|
|
High
|
Net Cash Provided
by Operating Activities
|
|
$
|
130
|
|
|
$
|
150
|
|
Subtract:
|
|
|
|
|
Depreciation and
amortization expense
|
|
86
|
|
|
86
|
|
Deferred income tax
expense
|
|
149
|
|
|
149
|
|
Changes in working
capital and other
|
|
(23)
|
|
|
(14)
|
|
Loss on
extinguishment of debt
|
|
20
|
|
|
20
|
|
Net
loss
|
|
$
|
(102)
|
|
|
$
|
(91)
|
|
Add:
|
|
|
|
|
Depreciation and
amortization expense
|
|
86
|
|
|
86
|
|
Interest expense,
net
|
|
58
|
|
|
57
|
|
Loss on
extinguishment of debt
|
|
20
|
|
|
20
|
|
Income tax
expense
|
|
151
|
|
|
151
|
|
Adjusted
EBITDA
|
|
$
|
213
|
|
|
$
|
223
|
|
Subtract: Adjusted
EBITDA attributable to noncontrolling
interest(1)
|
|
3
|
|
|
3
|
|
Adjusted EBITDA
attributable to SunCoke Energy Partners, L.P.
|
|
$
|
210
|
|
|
$
|
220
|
|
Subtract:
|
|
|
|
|
Corporate cost
holiday / deferral(2)
|
|
8
|
|
|
8
|
|
Ongoing capex (SXCP
share)
|
|
17
|
|
|
17
|
|
Replacement capex
accrual
|
|
8
|
|
|
8
|
|
Cash interest
accrual
|
|
55
|
|
|
54
|
|
Cash tax
accrual(3)
|
|
3
|
|
|
3
|
|
Estimated
distributable cash flow
|
|
$
|
119
|
|
|
$
|
130
|
|
|
|
(1)
|
Reflects net income
attributable to noncontrolling interest adjusted for noncontrolling
interest's share of interest, taxes, income, and depreciation and
amortization.
|
(2)
|
Represents repayment
of SXC corporate cost/IDR deferral from Q2 2016.
|
(3)
|
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.
|
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SOURCE SunCoke Energy Partners, L.P.