SunCoke Energy, Inc. Announces 2023 Results and Provides Full-Year 2024 Guidance
- SunCoke reported solid performance from the cokemaking business in 2023
- The company navigated through challenging market conditions and proved operational capability
- Revenues increased in 2023 due to higher coal costs in the Domestic Coke segment
- Expected 2024 consolidated Adjusted EBITDA between $240-255 million
- Domestic Coke segment saw increased revenues but decreased Adjusted EBITDA
- Logistics segment experienced lower revenues and Adjusted EBITDA due to volume decreases
- Brazil Coke segment revenues and Adjusted EBITDA decreased due to the expiration of technology fees
- Corporate and Other Adjusted EBITDA was unfavorable due to valuation adjustments and higher legacy costs
- SunCoke's 2024 outlook includes expected total production of 4.1 million tons of Domestic coke, consolidated net income of $67-84 million, and capital expenditures of $75-80 million
- Net income attributable to SXC for full-year 2023 decreased from the same prior year period
- Full-year 2023 Adjusted EBITDA decreased compared to the same prior year period
- Lower contribution margins on non-contracted coke sales and lower volumes at CMT in the Logistics segment
- Decrease in Brazil Coke segment revenues and Adjusted EBITDA due to the expiration of technology fees
- Unfavorable Corporate and Other Adjusted EBITDA due to valuation adjustments and higher legacy costs
Insights
The reported financial results for SunCoke Energy, Inc. (SXC) indicate a mixed performance with a year-over-year decrease in net income but an increase in revenues for both the fourth quarter and full year of 2023. The decrease in net income for the full year can be attributed to factors such as tax law changes in the United States and Brazil, impacting deferred tax benefits and valuation allowances related to foreign tax credits.
From a financial perspective, the reduction of gross debt by approximately $44 million and the increase in quarterly dividend by 25% are positive indicators of the company's capital allocation strategy and its commitment to shareholder returns. However, the expected consolidated Adjusted EBITDA for 2024 being lower than that of 2023 suggests potential headwinds or conservative estimates for the upcoming fiscal year.
Investors should consider the segment performance, particularly the Domestic Coke segment, which seems to be the primary revenue driver, while the Logistics segment faces challenges due to weakness in the thermal coal markets. The long-term extension of the Indiana Harbor coke contract with Cleveland-Cliffs is a strategic move that could provide stability and predictability in cash flows.
The cokemaking industry is heavily influenced by the steel production market, as coke is a critical input for blast furnace operations. The pass-through of higher coal costs and the improvement in coal-to-coke yields are reflective of the company's operational efficiency and its ability to manage input cost volatility. However, the lower contribution margins on non-contracted coke sales point to market pressures and potential pricing challenges in the open market.
For stakeholders, the expansion of the foundry business and the completion of the foundry coke expansion project are indicative of SunCoke's growth initiatives and diversification efforts within its core business areas. The guidance for 2024, including capital expenditure projections and operating cash flow estimates, provides a framework for assessing the company's investment in growth and operational maintenance against its cash generation capabilities.
The performance of SunCoke Energy needs to be contextualized within the broader economic environment, where industrial demand and commodity prices play a significant role. The mention of challenging market conditions faced in 2023 could be reflective of macroeconomic factors such as trade tensions, fluctuating demand for steel and the overall economic cycle. The logistics segment's performance, impacted by the thermal coal market, underscores the interplay between energy markets and transportation logistics.
Investors should be aware of the potential impact of economic downturns on SunCoke's business, as reduced industrial activity could lead to lower demand for coke. Conversely, economic expansion could enhance the company's prospects. The focus on exceptional safety performance and operational excellence are critical in maintaining cost efficiency and competitiveness in a capital-intensive industry.
-
Net income attributable to SXC was
$57.5 million $0.68 $13.8 million $0.16 -
Full-year 2023 consolidated Adjusted EBITDA(1) was
$268.8 million $62.3 million -
Operating cash flow was
$249.0 million -
Full-year 2024 consolidated Adjusted EBITDA(1) is expected to be between
$240 million $255 million
"In 2023, the SunCoke team successfully navigated through challenging market conditions and proved our operational capability, with strong Domestic Coke performance driving solid results," said Katherine Gates, President of SunCoke Energy, Inc. "We are pleased with the progress we made on our capital allocation goals in 2023, notably reducing gross debt by approximately
"We expect 2024 consolidated Adjusted EBITDA to be between
(1) See definition and reconciliation of Adjusted EBITDA elsewhere in this release.
CONSOLIDATED RESULTS
|
Three Months Ended
|
|
Years Ended
|
|||||||||||
(Dollars in millions) |
|
2023 |
|
2022 |
Increase/
|
|
|
2023 |
|
2022 |
Increase/
|
|||
Revenues |
$ |
520.6 |
$ |
514.0 |
$ |
6.6 |
|
$ |
2,063.2 |
$ |
1,972.5 |
$ |
90.7 |
|
Net income attributable to SXC |
$ |
13.8 |
$ |
11.8 |
$ |
2.0 |
|
$ |
57.5 |
$ |
100.7 |
$ |
(43.2 |
) |
Adjusted EBITDA(1) |
$ |
62.3 |
$ |
58.9 |
$ |
3.4 |
|
$ |
268.8 |
$ |
297.7 |
$ |
(28.9 |
) |
(1) See definition and reconciliation of Adjusted EBITDA elsewhere in this release. |
||||||||||||||
Revenues increased during both the fourth quarter and full-year 2023 as compared to the same prior year periods, primarily reflecting the pass-through of higher coal costs in the Domestic Coke segment, partially offset by lower volumes at Convent Marine Terminal (“CMT”) in the Logistics segment.
Net income attributable to SXC for the fourth quarter 2023 increased from the same prior year period, driven by higher coal-to-coke yields and favorable O&M recovery on our long-term, take-or-pay contracts and lower interest expense. Net income attributable to SXC for the full-year 2023 decreased from the same prior year period, driven by the same factors contributing to the lower Adjusted EBITDA described below and tax law changes in
Fourth quarter 2023 Adjusted EBITDA increased as compared to the same prior year period, primarily driven by higher coal-coke-yields and favorable O&M recovery on our long-term, take-or-pay contracts, partially offset by lower volumes at CMT in the Logistics segment. Full-year 2023 Adjusted EBITDA decreased as compared to the same prior year period, primarily driven by lower contribution margins on non-contracted coke sales and lower volumes at CMT in the Logistics segment, partially offset by higher coal-to-coke yields on our long-term, take-or-pay contracts.
SEGMENT RESULTS
Domestic Coke
Domestic Coke consists of cokemaking facilities and heat recovery operations at our Jewell, Indiana Harbor, Haverhill,
|
Three Months Ended
|
|
Years Ended
|
||||||||||||
(Dollars in millions, except per ton amounts) |
|
2023 |
|
2022 |
Increase/
|
|
|
2023 |
|
2022 |
Increase/
|
||||
Revenues |
$ |
493.6 |
$ |
485.1 |
$ |
8.5 |
|
|
$ |
1,954.0 |
$ |
1,856.9 |
$ |
97.1 |
|
Adjusted EBITDA(1) |
$ |
55.2 |
$ |
46.5 |
$ |
8.7 |
|
|
$ |
247.8 |
$ |
263.4 |
$ |
(15.6 |
) |
Sales Volume (in thousands of tons) |
|
1,037 |
|
1,040 |
|
(3 |
) |
|
|
4,046 |
|
4,031 |
|
15 |
|
Adjusted EBITDA per ton(2) |
$ |
53.23 |
$ |
44.71 |
$ |
8.52 |
|
|
$ |
61.25 |
$ |
65.34 |
$ |
(4.09 |
) |
(1) See definition and reconciliation of Adjusted EBITDA elsewhere in this release. (2) Reflects Domestic Coke Adjusted EBITDA divided by Domestic Coke sales volumes. |
|||||||||||||||
The increases in revenues for both the fourth quarter and full-year 2023 as compared to the same prior year periods primarily reflect the pass-through of higher coal costs.
Fourth quarter 2023 Adjusted EBITDA increased as compared to the same prior year period, primarily reflecting higher coal-to-coke yields and favorable O&M recovery on our long-term, take-or-pay contracts, partially offset by lower contribution margins on non-contracted blast coke sales. Full-year 2023 Adjusted EBITDA decreased as compared to the same prior year period, driven by lower contribution margins on non-contracted blast coke sales, partially offset by higher coal-to-coke yields on our long-term, take-or-pay contracts.
Logistics
Logistics consists of the handling and mixing services of coal and other aggregates at our Convent Marine Terminal (“CMT”), Lake Terminal, and Kanawha River Terminals (“KRT”).
|
Three Months Ended
|
|
Years Ended
|
||||||||||||
(Dollars in millions) |
|
2023 |
|
2022 |
Increase/
|
|
|
2023 |
|
2022 |
Increase/
|
||||
Revenues |
$ |
17.6 |
$ |
18.8 |
$ |
(1.2 |
) |
|
$ |
74.0 |
$ |
77.6 |
$ |
(3.6 |
) |
Intersegment sales |
$ |
5.2 |
$ |
6.7 |
$ |
(1.5 |
) |
|
$ |
22.1 |
$ |
28.9 |
$ |
(6.8 |
) |
Adjusted EBITDA(1) |
$ |
10.7 |
$ |
11.7 |
$ |
(1.0 |
) |
|
$ |
44.3 |
$ |
49.7 |
$ |
(5.4 |
) |
Tons handled (thousands of tons)(2) |
|
5,022 |
|
5,525 |
|
(503 |
) |
|
|
20,483 |
|
22,291 |
|
(1,808 |
) |
(1) See definition and reconciliation of Adjusted EBITDA elsewhere in this release. (2) Reflects inbound tons handled during the period. |
|||||||||||||||
The decreases in both revenues and Adjusted EBITDA for the fourth quarter and full-year 2023 as compared to the same prior year periods were driven by lower volumes at CMT.
Brazil Coke
Brazil Coke consists of a cokemaking facility in Vitória,
Three Months Ended
|
Years Ended
|
||||||||||||||
(Dollars in millions) |
|
2023 |
|
2022 |
Increase/
|
|
|
2023 |
|
2022 |
Increase/
|
||||
Revenues |
$ |
9.4 |
$ |
10.1 |
$ |
(0.7 |
) |
|
$ |
35.2 |
$ |
38.0 |
$ |
(2.8 |
) |
Adjusted EBITDA(1) |
$ |
2.2 |
$ |
3.1 |
$ |
(0.9 |
) |
|
$ |
9.1 |
$ |
14.5 |
$ |
(5.4 |
) |
Brazilian Coke production—operated facility (thousands of tons) |
|
383 |
|
377 |
|
6 |
|
|
|
1,558 |
|
1,585 |
|
(27 |
) |
(1) See definition and reconciliation of Adjusted EBITDA elsewhere in this release. |
|||||||||||||||
Revenues and Adjusted EBITDA for the fourth quarter and full-year 2023 decreased as compared to the same prior year periods, primarily driven by the absence of technology fees, which expired at the end of 2022.
Corporate and Other
Corporate expenses that can be identified with a segment have been included in determining segment results. The remainder is included in Corporate and Other, which is not a reportable segment.
Three Months Ended
|
Years Ended
|
||||||||||||||||||
(Dollars in millions) |
|
2023 |
|
|
2022 |
|
Increase/
|
|
|
2023 |
|
|
2022 |
|
Increase/
|
||||
Adjusted EBITDA(1) |
$ |
(5.8 |
) |
$ |
(2.4 |
) |
$ |
(3.4 |
) |
|
$ |
(32.4 |
) |
$ |
(29.9 |
) |
$ |
(2.5 |
) |
(1) See definition and reconciliation of Adjusted EBITDA elsewhere in this release. |
|||||||||||||||||||
Corporate and Other Adjusted EBITDA results were unfavorable for the fourth quarter and full-year 2023 as compared to the same prior year periods, reflecting unfavorable valuation adjustments as a result of changes in discount rates on certain legacy liabilities, which increased legacy cost approximately
2024 OUTLOOK
Our 2024 guidance is as follows:
- Domestic coke total production is expected to be approximately 4.1 million tons
-
Consolidated Net Income is expected to be between
$67 million $84 million -
Consolidated Adjusted EBITDA is expected to be between
$240 million $255 million -
Capital expenditures are projected to be between
$75 million $80 million -
Operating cash flow is estimated to be between
$185 million $200 million -
Cash taxes are projected to be between
$20 million $25 million
RELATED COMMUNICATIONS
We will host our quarterly earnings call at 11:00 a.m. Eastern Time (10:00 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 and analysts may participate in this call by dialing 1-833-470-1428 in the
SUNCOKE ENERGY, INC.
SunCoke Energy, Inc. (NYSE: SXC) supplies high-quality coke to domestic and international customers. Our coke is used in the blast furnace production of steel as well as the foundry production of casted iron, with the majority of sales under long-term, take-or-pay contracts. We also export coke to overseas customers seeking high-quality product for their blast furnaces. Our process utilizes an innovative heat-recovery technology that captures excess heat for steam or electrical power generation and draws upon more than 60 years of cokemaking experience to operate our facilities in
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.
NON-GAAP FINANCIAL MEASURES
In addition to
DEFINITIONS
- Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted for any impairments, restructuring costs, gains or losses on extinguishment of debt, and/or transaction costs ("Adjusted EBITDA"). EBITDA and Adjusted EBITDA do not represent and should not be considered alternatives 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 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.
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). 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 press release or during the related conference call that are not statements of historical fact, including statements about our full-year 2024 guidance and outlook, the ability of our domestic coke plants to continue to operate at full capacity, our expectation of weakness in commodity markets, our ability to deliver significant value to our stakeholders, our intention to maintain a balanced approach to capital allocation, and our anticipation to continue a quarterly dividend, 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 SEC 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 and related conference call, see SunCoke's SEC 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 press release and related conference call are expressly qualified in their entirety by such cautionary statements. Unpredictable or unknown factors not discussed in this press release and related conference call 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 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.
SunCoke Energy, Inc. Consolidated Statements of Income |
||||||||||||
|
|
Three Months Ended
|
|
Years Ended
|
||||||||
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
||||
|
|
(Dollars and shares in millions, except per share amounts) |
||||||||||
Revenues |
|
|
|
|
|
|
|
|
||||
Sales and other operating revenue |
|
$ |
520.6 |
|
$ |
514.0 |
|
$ |
2,063.2 |
|
$ |
1,972.5 |
Costs and operating expenses |
|
|
|
|
|
|
|
|
||||
Cost of products sold and operating expenses |
|
|
443.4 |
|
|
441.7 |
|
|
1,724.6 |
|
|
1,604.9 |
Selling, general and administrative expenses |
|
|
15.4 |
|
|
13.5 |
|
|
70.7 |
|
|
71.4 |
Depreciation and amortization expense |
|
|
35.6 |
|
|
35.8 |
|
|
142.8 |
|
|
142.5 |
Total costs and operating expenses |
|
|
494.4 |
|
|
491.0 |
|
|
1,938.1 |
|
|
1,818.8 |
Operating income |
|
|
26.2 |
|
|
23.0 |
|
|
125.1 |
|
|
153.7 |
Interest expense, net |
|
|
6.3 |
|
|
7.7 |
|
|
27.3 |
|
|
32.0 |
Income before income tax expense |
|
|
19.9 |
|
|
15.3 |
|
|
97.8 |
|
|
121.7 |
Income tax expense |
|
|
4.6 |
|
|
2.5 |
|
|
34.3 |
|
|
16.8 |
Net income |
|
|
15.3 |
|
|
12.8 |
|
|
63.5 |
|
|
104.9 |
Less: Net income attributable to noncontrolling interests |
|
|
1.5 |
|
|
1.0 |
|
|
6.0 |
|
|
4.2 |
Net income attributable to SunCoke Energy, Inc. |
|
$ |
13.8 |
|
$ |
11.8 |
|
$ |
57.5 |
|
$ |
100.7 |
Earnings attributable to SunCoke Energy, Inc. per common share: |
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.16 |
|
$ |
0.14 |
|
$ |
0.68 |
|
$ |
1.20 |
Diluted |
|
$ |
0.16 |
|
$ |
0.14 |
|
$ |
0.68 |
|
$ |
1.19 |
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
||||
Basic |
|
|
84.8 |
|
|
83.9 |
|
|
84.7 |
|
|
83.8 |
Diluted |
|
|
85.0 |
|
|
84.8 |
|
|
84.9 |
|
|
84.6 |
SunCoke Energy, Inc. Consolidated Balance Sheets |
|||||||
|
December 31, |
||||||
|
|
2023 |
|
|
|
2022 |
|
|
(Unaudited) |
|
(Audited) |
||||
|
(Dollars in millions, except par value amounts) |
||||||
Assets |
|
|
|
||||
Cash and cash equivalents |
$ |
140.1 |
|
|
$ |
90.0 |
|
Receivables, net |
|
88.3 |
|
|
|
104.8 |
|
Inventories |
|
182.6 |
|
|
|
175.2 |
|
Income tax receivable |
|
1.4 |
|
|
|
— |
|
Other current assets |
|
4.4 |
|
|
|
4.0 |
|
Total current assets |
|
416.8 |
|
|
|
374.0 |
|
Properties, plants and equipment (net of accumulated depreciation of |
|
1,191.1 |
|
|
|
1,229.3 |
|
Intangible assets, net |
|
31.1 |
|
|
|
33.2 |
|
Deferred charges and other assets |
|
21.4 |
|
|
|
18.1 |
|
Total assets |
$ |
1,660.4 |
|
|
$ |
1,654.6 |
|
Liabilities and Equity |
|
|
|
||||
Accounts payable |
$ |
172.1 |
|
|
$ |
159.3 |
|
Accrued liabilities |
|
51.7 |
|
|
|
61.4 |
|
Current portion of financing obligation |
|
— |
|
|
|
3.3 |
|
Total current liabilities |
|
223.8 |
|
|
|
224.0 |
|
Long-term debt and financing obligation |
|
490.3 |
|
|
|
528.9 |
|
Accrual for black lung benefits |
|
53.2 |
|
|
|
52.2 |
|
Retirement benefit liabilities |
|
15.8 |
|
|
|
16.4 |
|
Deferred income taxes |
|
190.8 |
|
|
|
172.3 |
|
Asset retirement obligations |
|
14.1 |
|
|
|
13.4 |
|
Other deferred credits and liabilities |
|
26.9 |
|
|
|
24.7 |
|
Total liabilities |
|
1,014.9 |
|
|
|
1,031.9 |
|
Equity |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
1.0 |
|
|
|
1.0 |
|
Treasury stock, 15,404,482 shares at both December 31, 2023 and 2022 |
|
(184.0 |
) |
|
|
(184.0 |
) |
Additional paid-in capital |
|
729.8 |
|
|
|
728.1 |
|
Accumulated other comprehensive loss |
|
(12.8 |
) |
|
|
(13.0 |
) |
Retained earnings |
|
80.2 |
|
|
|
53.5 |
|
Total SunCoke Energy, Inc. stockholders' equity |
|
614.2 |
|
|
|
585.6 |
|
Noncontrolling interests |
|
31.3 |
|
|
|
37.1 |
|
Total equity |
|
645.5 |
|
|
|
622.7 |
|
Total liabilities and equity |
$ |
1,660.4 |
|
|
$ |
1,654.6 |
|
SunCoke Energy, Inc. Consolidated Statements of Cash Flows |
|||||||
|
Years Ended December 31, |
||||||
|
|
2023 |
|
|
|
2022 |
|
|
(Unaudited) |
|
(Audited) |
||||
|
(Dollars in millions) |
||||||
Cash Flows from Operating Activities: |
|
|
|
||||
Net income |
$ |
63.5 |
|
|
$ |
104.9 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization expense |
|
142.8 |
|
|
|
142.5 |
|
Deferred income tax expense |
|
18.6 |
|
|
|
2.3 |
|
Share-based compensation expense |
|
5.1 |
|
|
|
6.7 |
|
Changes in working capital pertaining to operating activities: |
|
|
|
||||
Receivables, net |
|
16.8 |
|
|
|
(32.3 |
) |
Inventories |
|
(7.2 |
) |
|
|
(48.2 |
) |
Accounts payable |
|
19.7 |
|
|
|
27.4 |
|
Accrued liabilities |
|
(10.2 |
) |
|
|
8.4 |
|
Income taxes |
|
(1.4 |
) |
|
|
— |
|
Other |
|
1.3 |
|
|
|
(2.8 |
) |
Net cash provided by operating activities |
|
249.0 |
|
|
|
208.9 |
|
Cash Flows from Investing Activities: |
|
|
|
||||
Capital expenditures |
|
(109.2 |
) |
|
|
(75.5 |
) |
Other investing activities |
|
— |
|
|
|
5.3 |
|
Net cash used in investing activities |
|
(109.2 |
) |
|
|
(70.2 |
) |
Cash Flows from Financing Activities: |
|
|
|
||||
Proceeds from revolving facility |
|
291.0 |
|
|
|
596.0 |
|
Repayment of revolving facility |
|
(326.0 |
) |
|
|
(676.0 |
) |
Repayment of financing obligation |
|
(8.8 |
) |
|
|
(3.2 |
) |
Dividends paid |
|
(30.7 |
) |
|
|
(23.6 |
) |
Cash distributions to noncontrolling interests |
|
(11.8 |
) |
|
|
(4.4 |
) |
Other financing activities |
|
(3.4 |
) |
|
|
(1.3 |
) |
Net cash used in financing activities |
|
(89.7 |
) |
|
|
(112.5 |
) |
Net increase in cash and cash equivalents |
|
50.1 |
|
|
|
26.2 |
|
Cash and cash equivalents at beginning of year |
|
90.0 |
|
|
|
63.8 |
|
Cash and cash equivalents at end of year |
$ |
140.1 |
|
|
$ |
90.0 |
|
Supplemental Disclosure of Cash Flow Information |
|
|
|
||||
Interest paid |
$ |
25.7 |
|
|
$ |
28.5 |
|
Income taxes paid, net of refunds of zero and |
$ |
17.7 |
|
|
$ |
14.5 |
|
SunCoke Energy, Inc. Segment Operating Data |
||||||||||||||||
|
|
Three Months Ended
|
|
Years Ended
|
||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
Unaudited) |
|
(Audited) |
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
(Dollars in millions) |
||||||||||||||
Sales and other operating revenues: |
|
|
|
|
|
|
|
|
||||||||
Domestic Coke |
|
$ |
493.6 |
|
|
$ |
485.1 |
|
|
$ |
1,954.0 |
|
|
$ |
1,856.9 |
|
Brazil Coke |
|
|
9.4 |
|
|
|
10.1 |
|
|
|
35.2 |
|
|
|
38.0 |
|
Logistics |
|
|
17.6 |
|
|
|
18.8 |
|
|
|
74.0 |
|
|
|
77.6 |
|
Logistics intersegment sales |
|
|
5.2 |
|
|
|
6.7 |
|
|
|
22.1 |
|
|
|
28.9 |
|
Elimination of intersegment sales |
|
|
(5.2 |
) |
|
|
(6.7 |
) |
|
|
(22.1 |
) |
|
|
(28.9 |
) |
Total sales and other operating revenue |
|
$ |
520.6 |
|
|
$ |
514.0 |
|
|
$ |
2,063.2 |
|
|
$ |
1,972.5 |
|
Adjusted EBITDA(1) |
|
|
|
|
|
|
|
|
||||||||
Domestic Coke |
|
$ |
55.2 |
|
|
$ |
46.5 |
|
|
$ |
247.8 |
|
|
$ |
263.4 |
|
Brazil Coke |
|
|
2.2 |
|
|
|
3.1 |
|
|
|
9.1 |
|
|
|
14.5 |
|
Logistics |
|
|
10.7 |
|
|
|
11.7 |
|
|
|
44.3 |
|
|
|
49.7 |
|
Corporate and Other(2) |
|
|
(5.8 |
) |
|
|
(2.4 |
) |
|
|
(32.4 |
) |
|
|
(29.9 |
) |
Total Adjusted EBITDA |
|
$ |
62.3 |
|
|
$ |
58.9 |
|
|
$ |
268.8 |
|
|
$ |
297.7 |
|
Coke Operating Data: |
|
|
|
|
|
|
|
|
||||||||
Domestic Coke capacity utilization(3) |
|
|
100 |
% |
|
|
101 |
% |
|
|
101 |
% |
|
|
100 |
% |
Domestic Coke production volumes (thousands of tons) |
|
|
1,025 |
|
|
|
1,023 |
|
|
|
4,049 |
|
|
|
4,023 |
|
Domestic Coke sales volumes (thousands of tons) |
|
|
1,037 |
|
|
|
1,040 |
|
|
|
4,046 |
|
|
|
4,031 |
|
Domestic Coke Adjusted EBITDA per ton(4) |
|
$ |
53.23 |
|
|
$ |
44.71 |
|
|
$ |
61.25 |
|
|
$ |
65.34 |
|
Brazilian Coke production—operated facility (thousands of tons) |
|
|
383 |
|
|
|
377 |
|
|
|
1,558 |
|
|
|
1,585 |
|
Logistics Operating Data: |
|
|
|
|
|
|
|
|
||||||||
Tons handled (thousands of tons) |
|
|
5,022 |
|
|
|
5,525 |
|
|
|
20,483 |
|
|
|
22,291 |
|
(1) |
See definition of Adjusted EBITDA and reconciliation to GAAP elsewhere in this release. |
(2) |
Corporate and Other is not a reportable segment. |
(3) |
The production of foundry coke tons does not replace blast furnace coke tons on a ton for ton basis, as foundry coke requires longer coking time. The Domestic Coke capacity utilization is calculated assuming a single ton of foundry coke replaces approximately two tons of blast furnace coke. |
(4) |
Reflects Domestic Coke Adjusted EBITDA divided by Domestic Coke sales volumes. |
SunCoke Energy, Inc. Reconciliation of Non-GAAP Information Net Income to Adjusted EBITDA |
||||||||||||
|
|
Three Months Ended
|
|
Years Ended
|
||||||||
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
||||
|
|
(Dollars in millions) |
||||||||||
Net income |
|
$ |
15.3 |
|
$ |
12.8 |
|
$ |
63.5 |
|
$ |
104.9 |
Add: |
|
|
|
|
|
|
|
|
||||
Depreciation and amortization expense |
|
|
35.6 |
|
|
35.8 |
|
|
142.8 |
|
|
142.5 |
Interest expense, net |
|
|
6.3 |
|
|
7.7 |
|
|
27.3 |
|
|
32.0 |
Income tax expense |
|
|
4.6 |
|
|
2.5 |
|
|
34.3 |
|
|
16.8 |
Transaction costs(1) |
|
|
0.5 |
|
|
0.1 |
|
|
0.9 |
|
|
1.5 |
Adjusted EBITDA |
|
$ |
62.3 |
|
$ |
58.9 |
|
$ |
268.8 |
|
$ |
297.7 |
(1) |
Costs incurred as part of the granulated pig iron project with |
SunCoke Energy, Inc Reconciliation of Non-GAAP Information Estimated 2024 Net Income to Estimated 2024 Adjusted EBITDA |
||||||
|
|
2024 |
||||
|
|
Low |
|
High |
||
Net income |
|
$ |
67 |
|
$ |
84 |
Add: |
|
|
|
|
||
Depreciation and amortization expense |
|
|
122 |
|
|
118 |
Interest expense, net |
|
|
28 |
|
|
26 |
Income tax expense |
|
|
23 |
|
|
27 |
Adjusted EBITDA |
|
$ |
240 |
|
$ |
255 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240201886767/en/
Investor/Media Inquiries:
Sharon Doyle
Manager, Investor Relations
(630) 824-1907
Source: SunCoke Energy, Inc.
FAQ
What was SunCoke Energy, Inc.'s (SXC) net income for full-year 2023?
What was the net income for SXC in the fourth quarter of 2023?
What is the expected 2024 consolidated Adjusted EBITDA for SunCoke Energy, Inc.?
What were the key drivers of increased revenues in 2023 for SunCoke Energy, Inc.?
What segments of SunCoke Energy, Inc. saw decreased Adjusted EBITDA in 2023?
What factors led to the unfavorable Corporate and Other Adjusted EBITDA for SunCoke Energy, Inc. in 2023?
