SUNCOKE ENERGY, INC. SunCoke Energy, Inc.
Q2 2023 Earnings Conference Call
Forward-Looking Statements | 2 |
This presentation should be reviewed in conjunction with the second quarter 2023 earnings release of SunCoke Energy, Inc. (SunCoke) and conference call held on August 1, 2023 at 11:00 a.m. ET.
This presentation contains "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). 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. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. Any statements made in this presentation that are not statements of historical fact, including statements about our full-year 2023 guidance and our ability to achieve the high end of the 2023 Consolidated Adjusted EBITDA guidance range, our 2023 key initiatives, the amount and timing of our quarterly dividend, the timing and anticipated expenses of our foundry expansion project, the ability of our domestic coke plants to continue to operate at full capacity, future sales commitments, and our export coke market expectations, are forward-looking statements and should be evaluated as such. Forward-looking statements represent only our beliefs regarding future events, many of which are inherently uncertain and involve significant known and unknown risks and uncertainties (many of which are beyond the control of SunCoke) that could cause our actual results and financial condition to differ materially from the anticipated results and financial condition indicated in such forward-looking statements. These risks and uncertainties include, but are not limited to, the risks and uncertainties described in Item 1A ("Risk Factors") of our Annual Report on Form 10-K for the most recently completed fiscal year, as well as those described from time to time in our other reports and filings with the Securities and Exchange Commission (SEC).
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 presentation, see SunCoke's Securities and Exchange Commission filings, copies of which are available free of charge on SunCoke's website at www.suncoke.com or on the SEC's website at www.sec.gov. All forward-looking statements included in this presentation are expressly qualified in their entirety by such cautionary statements. Unpredictable or unknown factors not discussed in this presentation also could have material adverse effects on forward-looking statements.
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. You should not place undue reliance on these forward-looking statements, which speak only as of the date of the earnings 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 the earnings release except as required by applicable law.
Q2 2023 Highlights | 3 |
- Delivered Q2 '23 Consolidated Adjusted EBITDA(1) of $74.0M, representing record second quarter performance
- Raised quarterly dividend from $0.08 to $0.10 per share, a 25% increase, demonstrating continued progress and stability in the underlying core business
- Continued solid performance across our coke and logistics operations
- Foundry coke business continues to perform well
- Recently completed foundry coke expansion project on time and on budget
- Substantially all non-contracted blast coke sales finalized for the full year
- Gross leverage at 1.79x on a trailing 12 month Adjusted EBITDA(1) basis
- Well positioned to achieve high end of FY 2023 Consolidated Adjusted EBITDA(1) guidance range of $250M - $265M
(1) See appendix for a definition and reconciliation of Adjusted EBITDA
Q2 2023 Financial Performance | 4 |
Q2 2023 Earnings Review
($/share) | ($ in millions) |
Diluted EPS | Adjusted EBITDA(1) |
+$0.03 | +$2.7 M | ||
$0.24 | $74.0 | $71.3 | |
$0.21 | |||
Q2 '23 | Q2 '22 | Q2 '23 | Q2 '22 |
Q2 '23 vs |
($ in millions, except volumes) | Q2 '23 | Q2 '22 | Q2 '22 |
Domestic Coke Sales Volumes | 1,043 | 1,007 | 36 |
Logistics Volumes | 5,191 | 5,809 | (618) |
Coke Adjusted EBITDA(2) | $70.5 | $68.2 | $2.3 |
Logistics Adjusted EBITDA | $11.7 | $12.5 | ($0.8) |
Corporate and Other Adjusted EBITDA (3) | ($8.2) | ($9.4) | $1.2 |
Consolidated Adjusted EBITDA (1) | $74.0 | $71.3 | $2.7 |
- Q2 '23 EPS of $0.24, up $0.03 from the prior year quarter
- Consolidated Adjusted EBITDA(1) of $74.0M, an increase of $2.7M from the prior year quarter
- Coke segment up $2.3M, driven by favorable coal-to-coke yields and higher coke sales volumes due to timing, partially offset by lower contribution margin on non-contracted blast coke sales
- Logistics segment down $0.8M, primarily driven by lower transloading volumes
- See appendix for a definition and reconciliation of Adjusted EBITDA
- Coke Adjusted EBITDA includes Domestic Coke Adjusted EBITDA and Brazil Coke Adjusted EBITDA, combined
- Q2 '23 Corporate and Other Adjusted EBITDA includes activity from our legacy coal mining business
Domestic Coke Business Summary | ||
5 | ||
Excellent operational performance driving Domestic Coke results | ||
Domestic Coke Performance
(Coke Production, Kt)
$76.6M
• Delivered Adjusted EBITDA of |
$68.2M in Q2 '23 vs $64.3M in Q2 |
'22 |
$64.3M
997
131
170
270
295
132
1,028
151
172
277
306
122
$46.5M
1,023
156
173
267
311
116
$60.4M
994
147
161
264
309
113
$68.2M
998
133
171
272
304
118
Domestic Coke fleet continues to operate |
at full capacity |
Favorable coal-to-coke yields and higher |
coke sales volumes due to timing driving |
performance |
Lower contribution margin on non- |
contracted blast coke sales |
• Substantially all non-contracted |
blast coke sales finalized for the |
full year |
• Well positioned to achieve high |
end of FY 2023 Domestic Coke |
Q2 '22 | Q3 '22 | Q4 '22 | Q1 '23 | Q2 '23 | |||||||
Sales | 1,007K | 1,022K | 1,040K | 950K | 1,043K | ||||||
Tons | |||||||||||
(1) | |||||||||||
Total Domestic Coke Adjusted EBITDA | Granite City | Indiana Harbor | |||||||||
Middletown | Haverhill | Jewell | |||||||||
Adjusted EBITDA guidance range |
of $234M - $242M |
(1) See appendix for a definition and reconciliation of Adjusted EBITDA
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SunCoke Energy Inc. published this content on 01 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 August 2023 11:44:14 UTC.
