SunCoke Energy, Inc. - FORM 8-K - EX-99.1 - AUGUST 1, 2012 - SLIDES

Attached files

file	filename
8-K - FORM 8-K - SunCoke Energy, Inc.	d388750d8k.htm

Exhibit 99.1

Goldman Sachs

Chicago Small Cap

Summit

August 1, 2012

Safe Harbor Statement

Some of the information included in 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). Such forward-looking

statements are based on management’s beliefs and assumptions and on information currently available. Forward-looking

statements include the information concerning SunCoke’s possible or assumed future results of operations, the planned Master

Limited Partnership, business strategies, financing plans, competitive position, potential growth opportunities, potential operating

performance improvements, the effects of competition and the effects of future legislation or regulations. Forward-looking

statements include all statements that are not historical facts and may be identified by the use of forward-looking terminology such

as the words “believe,”

“expect,”

“plan,”

“intend,”

“anticipate,”

“estimate,”

“predict,”

“potential,”

“continue,”

“may,”

“will,”

“should”

or the negative of these terms or similar expressions. Forward-looking statements involve risks, uncertainties and

assumptions. Actual results may differ materially from those expressed in these forward-looking statements. You should not put

undue reliance on any forward-looking statements.

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 more information concerning these factors, see SunCoke's Securities and Exchange Commission filings.

All

forward-looking statements included in this presentation are expressly qualified in their entirety by such cautionary statements.

SunCoke does not have any intention or obligation to update publicly any forward-looking statement (or its associated cautionary

language) whether as a result of new information or future events or after the date of this presentation, except as required by

applicable law.

This presentation includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP

measures. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided in the Appendix at the end of

the presentation. Investors are urged to consider carefully the comparable GAAP measures and the reconciliations to those

measures provided in the Appendix, or on our website at www.suncoke.com.

SunCoke Energy -

Goldman Sachs Small Cap Summit

About SunCoke

Largest independent producer of

metallurgical coke in the Americas

–

Coke is an essential ingredient in blast

furnace production of steel

Coal mining operations represents

~15% of Adjusted EBITDA

(1)

–

High quality mid-vol. metallurgical coal

reserves in Virginia and West Virginia

–

2012 expected production of 1.6 million

tons

Cokemaking business generates

~85% of Adjusted EBITDA

(1)

–

5.9 million tons of capacity in six

facilities; five in U.S. and one in Brazil

–

Represents 18% of North American coke

supply

(2)

SunCoke Energy -

Goldman Sachs Small Cap Summit

(1)

For a definition and reconciliation of Adjusted EBITDA, please see appendix.

(2)

Source: Company estimates

Jewell

Coke,

21%

Other

Domestic

Coke,

66%

Int'l Coke,

Coal

Mining,

12%

First Half 2012 Adjusted EBITDA

(1)

: $121 million

SunCoke Business

Segments

(excluding corporate costs)

More than doubled capacity since

2006 with four new plants

Proven ability

permit,

design,

construct and start up greenfield

developments and work

internationally

Industry-leading environmental

signature

–

Meet U.S. EPA Maximum Achievable

Control Technology

Secure, long-term take-or-pay

contracts with leading steelmakers

–

Coal, operating and transportation costs

are passed through

The Leading Independent Cokemaker

SunCoke

Cokemaking Capacity

(In thousands of tons)

SunCoke Energy -

Goldman Sachs Small Cap Summit

2006

2007

2008

2009

2010

2011

Jewell Coke

Indiana Harbor

Haverhill I

Vitória

Haverhill II

Granite City

Middletown

2,490

4,190

4,740

5,390

5,940

Our cokemaking operations are strategically located in

proximity to our customers’

integrated steelmaking facilities

SunCoke Operations

Middletown

Haverhill 1

Haverhill 2

114M tons of

reserves

Coal

Mining

Vitoria,

Brazil

SunCoke Energy -

Goldman Sachs Small Cap Summit

Our metallurgical coal

mining business is located

in Central Appalachia

Jewell

Coke

Granite

City

Indiana

Harbor

SunCoke’s Cokemaking Technology

SunCoke Energy -

Goldman Sachs Small Cap Summit

SunCoke’s Heat Recovery vs. By-Product Oven

Pressurization

Negative pressure

Positive pressure

Air Emissions

MACT standard for new batteries

Potential for emission of hazardous

compounds

Power Generation

Cogenerates power

Power consuming process

Hazardous Inputs

None

Yes – sulfuric acid

Volatile Organic Compounds

Complete combustion

No combustion

Solid Wastes

No toxic solid wastes

Process produces toxic waste streams

SunCoke Energy -

Goldman Sachs Small Cap Summit

SunCoke Heat Recovery

Traditional By-Product

SunCoke‘s Value Proposition

SunCoke Energy -

Goldman Sachs Small Cap Summit

High Quality

& Reliable

Coke Supply

Turndown

Flexibility

Coal

Flexibility

Capital

Efficiency

& Flexibility

Environment

/Economic

Trade-offs

Provide an assured supply of coke to steelmakers

Larger, stronger coke for improved blast furnace performance

Demonstrated sustained 15%-20% turndown

High quality coke with cheaper coal blends

—

Burn loss vs. by-product

Capital preservation and lower capacity cost per ton;

particularly relative to greenfield

investment

Stringent U.S. regulatory environment

Power prices and reliability versus value of coke oven gas and

product "credits"

SunCoke’s Contract Proposition

SunCoke Energy -

Goldman Sachs Small Cap Summit

We deliver coke to customers through a competitive turnkey solution,

which produces a consistent stream of earnings

SunCoke

Energy

Customer

Capital Funding and Ownership

Permits and Approvals

Engineering, Procurement

& Construction

Plant Production and

Environmental Compliance

Reliable, High-Quality

Coke Supply

Take-Or-Pay

Fixed Fee

(Profit and Return on Capital)

Coal Cost Component

(Pass-Through)

Operating Cost Component

(Pass-Through)

Taxes, Transportation & Future

Environmental Costs

(Pass-Through)

What SunCoke Offers

Typical Key

Coke Contract Provisions

Q2 2012 Earnings Overview

Results driven by strong Coke business

performance

–

Middletown startup has been a success

–

Continued improvement at Indiana Harbor

–

Strong operations at other facilities

Coal action plan progressing

–

Difficult demand/price environment

–

Taking action to reduce high cash

production costs

–

Achieved improved sequential quarter

performance

Strong liquidity position

–

Generated $66 million of free cash flow

(2)

first half 2012

–

Cash balance of $190 million and virtually

undrawn revolver of $150 million

(1)

For a definition and reconciliation of Adjusted EBITDA, please see the appendix.

(2)

For a definition and reconciliation of free cash flow, please see the appendix.

SunCoke Energy -

Goldman Sachs Small Cap Summit

$0.17

$0.24

$0.32

2011

2012

$26.6

$55.8

$37.7

$65.5

2011

2012

Earnings Per Share (diluted)

Adjusted EBITDA

(1)

(in millions)

Adjusted EBITDA

(1)

Bridge –

Q2 2011 to Q2 2012

SunCoke Energy -

Goldman Sachs Small Cap Summit

Quarter’s performance led by strong Coke business results

($ in millions)

Q2 2011

Adjusted

EBITDA (1)

Middletown

Coke Business

(Jewel/Haverhill/

Indiana Harbor/

Granite City/Int'l)

Coal Mining

Corporate

Costs

Q2 2012

Adjusted

EBITDA (1)

$37.7

$65.5

$4.9

$11.1

$14.0

($2.2)

For a definition and reconciliation of Adjusted EBITDA, please see the appendix.

(1)

Domestic Coke Business Summary

(Jewell Coke & Other Domestic Coke)

SunCoke Energy -

Goldman Sachs Small Cap Summit

Strong performance driven by Middletown, Indiana Harbor and other operations

Domestic Coke Adjusted EBITDA

(1)

Per Ton

Domestic Coke Production

(1)

For a definition of EBITDA and Adjusted EBITDA/Ton and reconciliations, please see the appendix.

(2)

Includes Indiana Harbor contract billing adjustment of $6.0 million, net of NCI, and inventory

adjustment of $6.2 million, net of NCI, of which $3.1 million is attributable to Q3 2011.

(3)

Includes a $2.4 million, net of NCI, charge related to coke inventory reduction and a $1.3 million, net of

NCI, lower cost or market adjustment on pad coal inventory and lower coal-to-coke yields related to the

startup at Middletown.

Domestic Coke Business Outlook

($ in millions, except as noted)

Estimated

Low

Estimated

High

Domestic Coke Adjusted EBITDA

(1)

Per Ton

$55

$60

Annual Domestic Coke Sales Volumes (in millions of tons)

x 4.3

x 4.4

Domestic Coke Adjusted EBITDA

(1)

$237

$264

Less: Ongoing Capital Expenditures

($35)

Annual Domestic Coke Adjusted EBITDA

(1)

less Ongoing

Capital Expenditures

$202

$229

Illustrative Liquidity Ratios for Domestic Coke Business

Estimated

Net Debt

(2)

to Adjusted EBITDA

(1)

2.7x

2.3x

Interest Coverage

(3)

4.6x

5.2x

All figures are estimates based on current expectations for domestic coke business (Jewell Coke and Other Domestic Coke segments); for example purposes only

•

Expect

domestic

coke

Adjusted

EBITDA

(1)

per

ton

$55

$60

for

balance

2012

•

Based on current sentiment, 2012 coke sales volume expected to be in middle of range

SunCoke Energy -

Goldman Sachs Small Cap Summit

(1)

For a definition and reconciliation of Adjusted EBITDA, please see the appendix.

(2)

Net Debt represents Total Debt less cash balance at end of period. Net Debt provides a perspective on the Company's overall debt position. Net Debt was calculated by subtracting our 6/30/2012

cash balance of $190.0 million from our Total Debt of $724.9 million on 6/30/2012.

(3)

Interest coverage is Adjusted EBITDA divided by expected 2012 interest expense of $44 million, net of amortization of issuance, discount and other fees.

Coal Mining Financial Summary

SunCoke Energy -

Goldman Sachs Small Cap Summit

($ in millions, except per ton amounts)

Cash production costs increasing in face of

difficult demand/price environment

–

Pricing up modestly, reflecting strong mid-vol.

pricing/volumes, offset by weak

hi-vol. & thermal pricing/volumes

–

Cash costs up $11/ton, reflecting decreased mix and

higher costs of hi-vol. & thermal production

Coal action plan implemented in Q1 2012

gaining traction

–

Focus on most productive mines to reduce costs

delivered sequential quarter improvement

–

Cash cost per ton at Jewell decreased from

$161 in Q1 2012 to 143 in Q2 2012

–

Jewell reject rates improved from 68% in Q1

2012 to 66% in Q2 2012,

–

Expect further cash cost reductions for 2013

Intend to maintain cash neutral position in

2012

–

Reduced capital spending in line with outlook

Coal Sales, Production and Purchases

Coal Mining Adjusted EBITDA

(1)

and Avg. Sales

Price/Ton

(2)

(1)

For a definition and a reconciliation of Adjusted EBITDA, please see the appendix.

(2)

Average Sales Price is the weighted average sales price for all coal sales volumes, including sales to affiliates and sales to Jewell Coke.

(3)

Q4 2011 Adjusted EBITDA inclusive of Black Lung Liability charge of $3.4 million and OPEB expense allocation of $1.8 million.

2012 Adjusted EBITDA

(1)

Outlook

($ in millions)

SunCoke Energy -

Goldman Sachs Small Cap Summit

(1)

For a definition of Adjusted EBITDA and reconciliation of Adjusted EBITDA, please see the appendix.

Strong U.S. cokemaking business expected to

drive increase in Adjusted EBITDA

(1)

in 2012

$95 -

$110

$5 -

$15

$9 -

$14

$141

$250 -

$280

Coke Business

Coal Mining

Corporate

Costs

2011

Adjusted

EBITDA

2012 Adjusted

EBITDA

(1)

2012 Guidance

Metric

Expected 2012 Outlook

Adjusted EBITDA

(1)

$250 million –

$280 million

EPS* (at 22% tax rate)

$1.30 –

$1.65

Capital Expenditures

& Investments

Approximately $85million

Free Cash Flow

(1)

$100 million +

Cash Tax Rate

10% –

15%

Effective Tax Rate

20% –

24%

Corporate Costs

$30 million –

$35 million

Coke Production

In excess of 4.3 million tons

Coal Production

Approximately 1.6 million tons

*Diluted

SunCoke Energy -

Goldman Sachs Small Cap Summit

(1)

For a definition of Adjusted EBITDA and Free Cash Flow and their reconciliations, please see the appendix.

Strategies for Enhancing Shareholder Value

SunCoke Energy -

Goldman Sachs Small Cap Summit

Maintain focus on details

and discipline of coke and

coal mining operations

Sustain and enhance top

quartile safety performance

and ability to meet

environment standards

Leverage operating know-

how and technology to

continuously improve yields

and operating costs

Coke MLP

Execute plan to place a

portion of our

cokemaking assets into

an MLP structure

Coal

Optimize operations

and investments to

enhance long-term

strategic flexibility

U.S. & Canada

Continue permitting

efforts for next

potential U.S. facility

Explore opportunities to

make strategic

investments in existing

capacity

International

Execute India entry and

pursue follow-on growth

Operational

Excellence

Grow The Coke

Business

Strategically Optimize

Assets

Operations Excellence

SunCoke Energy -

Goldman Sachs Small Cap Summit

Financial

Performance

Rigorous focus on the details

and discipline

of coke and

coal mining operations

Sustain and enhance

top quartile safety

performance

Meet and exceed

environmental

standards

Leverage operating know-

how and technology to

continuously improve yields

and operating

& maintenance costs

Execution

Safety & Environment

Productivity

The SunCoke Way

SunCoke believes it has the opportunity to displace higher cost coke imports

(US$/ton)

Source: Steel Business Briefing, 2012

(1)

Other Domestic Coke sales and other operating revenues less energy sales divided by

tons sold.

SunCoke

(1)

Chinese

Q2 2012:

$395

$449

2011 Average:

$371

$454

2008-2010 Average:

$326

$430

Grow the Coke Business:

U.S. and Canada

Source: CRU, Metallurgical Coke Market Outlook 2012

(Tons in millions)

SunCoke Energy -

Goldman Sachs Small Cap Summit

U.S. and Canada Coke Imports

Chinese

Coke

Price

vs.

Representative

SunCoke

Price

(1)

Coke Price Comparison

SunCoke’s coke is highly competitive on price, quality and reliability

versus Chinese imported coke

Source: World Price (DTC), CRU and Coke Market Report, company estimates

SunCoke Energy -

Goldman Sachs Small Cap Summit

$551

SunCoke Coke Price

Chinese Coke Price FOB Ex. Export Tax

(Includes $50/ton freight and $40 handling loss)

Jewel

Other

Domestic

Coke

Chinese

Coke

$399

$395

$407

$144

Delivered Coke Prices -

$/ton

Chinese Export Tax Premium (40%)

SunCoke Energy -

Goldman Sachs Small Cap Summit

Source: CRU, The Annual Outlook for Metallurgical Coke 2012.

Replace aging coke batteries operated by integrated steel producers

Source: CRU, The Annual Outlook for Metallurgical Coke 2012

51% of coke capacity is at facilities >30 years old

Integrated

Steel

Producers

63%

SunCoke

18%

DTE

Other Merchant

& Foundry

Imports

Grow the Coke Business:

U.S. and Canada

27%

24%

SunCoke

U.S. &

Canada

(excl SXC)

30-40 years

40+ years

Aging Cokemaking Facilities

Average Age

of U.S. & Canada

coke production

U.S. & Canada Coke Supply

Grow the Coke Business:

U.S. and Canada

Impact of low natural gas prices on

coke demand

–

Displaces coke in blast furnace

–

Natural gas cannot completely

replace coke; coke provides

structure in blast furnace,

facilitating the flow of

oxygen/air and hot liquid metal

–

The less coke used the more

important the coke’s quality

–

Makes coke oven gases less valuable

–

Integrated steelmakers capture

coke oven gases produced in

their own coke batteries for use

in downstream operations

–

This may impact steelmakers’

decision to reinvest/rebuild in

their own coke batteries

Source: CRU, The Annual Outlook for Metallurgical Coke 2011; Company estimates.

SunCoke Energy -

Goldman Sachs Small Cap Summit

2010 Coke Rate:

894 lbs/thm

2015E Coke Rate:

800 lbs/thm

In million tons

BF/BOF Crude Steel Production

and Blast Furnace Coke Demand

Grow the Coke Business:

U.S. and Canada

SunCoke Energy -

Goldman Sachs Small Cap Summit

U.S. and Canada

Coke Market Opportunity

in millions of tons

Permit a potential new

660k/TPY U.S. plant

(likely multi-customer)

Explore acquisition of

existing coke assets

SunCoke’s Strategy

Aging battery

replacement

Import displacement

Expected demand opportunity

by 2015

Sources: CRU, The Annual Outlook for

Metallurgical Coke 2011, CIA World Factbook.

Grow the Coke Business:

International -

India

SunCoke Energy -

Goldman Sachs Small Cap Summit

India

Steel/Coke

Market

Growing Steel

Market

Coke supply

Deficit

Active

Merchant

Market

Electric Power

Deficit

Projected to be 3rd largest

steel market by 2020

Blast furnace to play a

critical role in growth

Importing approximately

2 million tons annually

Coke capacity investment

lags steel investment

3.5 million tons merchant

production or 13% of total

17 active merchant

coke producers

10% -

20% short power

Average wholesale price

>$80 mwh (2x U.S. rate)

•

Committed to

India entry

strategy

–

Discussing

opportunities in

India

–

Targeting potential

entry

by early 2013

Master Limited Partnership

Board approved formation of MLP

Expected Assets/Structure

–

A portion of our interests in

Haverhill and Middletown

–

SXC to own General Partner,

incentive distribution rights and a

portion of the partnership units

Proceeds to SXC

–

Expected uses will include paying

down debt, funding expansion and

other general corporate purposes

Timing

–

Expect to close no sooner than

fourth quarter 2012

Additional details will be in S-1

SunCoke Energy -

Goldman Sachs Small Cap Summit

Middletown Operations

Haverhill Operations

____ __ ____ _____ ____ ______

_____ _____

____ _____

_____ _____

____ _____

Appendix

Definitions

•

Adjusted

EBITDA

represents

earnings

before

interest,

taxes,

depreciation,

depletion

and

amortization

(“EBITDA”)

adjusted for sales discounts and the deduction of income attributable to non-controlling interests in our Indiana

Harbor

cokemaking

operations.

EBITDA

reflects

sales

discounts

included

reduction

sales

and

other

operating

revenue.

The

sales

discounts

represent

the

sharing

with

our

customers

portion

nonconventional

fuels

tax

credits,

which

reduce

our

income

tax

expense.

However,

believe

that

our

Adjusted

EBITDA

would

inappropriately penalized if these discounts were treated as a reduction of EBITDA since they represent sharing of a

tax benefit which is not included in EBITDA. Accordingly, in computing Adjusted EBITDA, we have added back these

sales discounts. Our Adjusted EBITDA also reflects the deduction

of income attributable to noncontrolling interest in

our Indiana Harbor cokemaking operations. EBITDA and Adjusted EBITDA do not represent and should not be

considered alternatives to net income or operating income under United States generally accepted

accounting

principles

(GAAP)

and

may

not

comparable

other

similarly

titled

measures

other

businesses.

Management believes Adjusted EBITDA is an important measure of the operating performance of the Company’s

assets and is indicative of the Company’s ability to generate cash from operations.

•

Adjusted

EBITDA/Ton

represents

Adjusted

EBITDA

divided

tons

sold.

•

Free Cash Flow

equals cash from operations less cash used in investing activities less cash distributions to non-

controlling interests. Management believes Free Cash Flow information enhances an investor’s understanding

of a business’

ability to generate cash. Free Cash Flow does not represent and should not be considered an

alternative to net income or cash flows from operating activities as determined under GAAP and may not be

comparable to other similarly titled measures of other businesses.

SunCoke Energy -

Goldman Sachs Small Cap Summit

Reconciliations

SunCoke Energy -

Goldman Sachs Small Cap Summit

$ in millions

Q2 2012

Q1 2012

Q4 2011

Q3 2011

Q2 2011

Q1 2011

Adjusted Operating Income

46.6

37.1

14.9

33.5

24.6

7.4

Net Income (Loss) attributable to Noncontrolling Interest

1.3

(0.3)

(0.5)

3.4

1.6

(6.2)

Subtract: Depreciation Expense

(20.2)

(18.4)

(16.0)

(14.7)

(13.0)

Adjusted EBITDA

65.5

55.8

31.4

44.8

37.7

26.6

Subtract: Depreciation, depletion and amortization

(20.2)

(18.4)

(16.0)

(14.7)

(13.0)

Subtract: Financing expense, net

(11.8)

(12.0)

(7.1)

(3.3)

4.5

Subtract: Income Tax

(7.0)

(5.3)

2.9

(5.1)

(1.9)

(3.1)

Subtract: Sales Discount

(3.8)

(3.2)

(3.5)

(3.1)

Add: Net Income attributable to NCI

1.3

(0.3)

(0.5)

3.4

1.6

(6.2)

Net Income

24.0

16.6

7.5

21.6

24.1

5.7

Reconciliations from Adjusted Operating Income and Adjusted EBITDA to Net Income

Reconciliations

SunCoke Energy -

Goldman Sachs Small Cap Summit

$ in millions, except per ton data

Jewell Coke

Other

Domestic

Coke

International

Coke

Jewell Coal

Corporate

Combined

Domestic

Coke

Q2 2012

Adjusted EBITDA

12.5

48.6

0.7

9.3

(5.6)

65.5

61.1

Subtract: Depreciation, depletion and amortization

(1.3)

(13.7)

(0.1)

(4.3)

(0.8)

(20.2)

(15.0)

Add (Subtract): Net (Income) loss attributable

to noncontrolling interests

1.3

Adjusted Pre-Tax Operating Income

11.2

36.2

0.6

5.0

(6.4)

46.6

47.4

Adjusted EBITDA

12.5

48.6

0.7

9.3

(5.6)

65.5

61.1

Sales Volume (thousands of tons)

170

892

358

373

1,062

Adjusted EBITDA per Ton

73.5

54.5

2.0

24.9

57.5

Q1 2012

Adjusted EBITDA

15.0

40.1

0.1

7.4

(6.8)

55.8

55.1

Subtract: Depreciation, depletion and amortization

(1.3)

(12.6)

(0.1)

(4.1)

(0.3)

(18.4)

(13.9)

Add (Subtract): Net (Income) loss attributable

to noncontrolling interests

(0.3)

Adjusted Pre-Tax Operating Income

13.7

27.2

3.3

(7.1)

37.1

40.9

Adjusted EBITDA

15.0

40.1

0.1

7.4

(6.8)

55.8

55.1

Sales Volume (thousands of tons)

186

892

358

373

1,078

Adjusted EBITDA per Ton

80.6

45.0

0.3

19.8

51.1

Reconciliations from Adjusted EBITDA to Adjusted Pre-Tax Operating Income

Reconciliations

SunCoke Energy -

Goldman Sachs Small Cap Summit

$ in millions, except per ton data

Jewell Coke

Other

Domestic

Coke

International

Coke

Jewell Coal

Corporate

Combined

Domestic

Coke

Q4 2011

Adjusted EBITDA

10.6

21.3

10.2

2.5

(13.2)

31.4

31.9

Subtract: Depreciation, depletion and amortization

(1.2)

(10.6)

(0.1)

(3.7)

(0.4)

(16.0)

(11.8)

Add (Subtract): Net (Income) loss attributable

to noncontrolling interests

(0.5)

Adjusted Pre-Tax Operating Income

9.4

10.2

10.1

(1.2)

(13.6)

14.9

19.6

Adjusted EBITDA

10.6

21.3

10.2

2.5

(13.2)

31.4

31.9

Sales Volume (thousands of tons)

166

837

295

363

1,003

Adjusted EBITDA per Ton

63.9

25.4

34.6

6.9

31.8

Q3 2011

Adjusted EBITDA

13.9

34.3

1.7

9.2

(14.3)

44.8

48.2

Subtract: Depreciation, depletion and amortization

(1.2)

(9.9)

(3.3)

(0.3)

(14.7)

(11.1)

Add (Subtract): Net (Income) loss attributable

to noncontrolling interests

3.4

Adjusted Pre-Tax Operating Income

12.7

27.8

1.7

5.9

(14.6)

33.5

40.5

Adjusted EBITDA

13.9

34.3

1.7

9.2

(14.3)

44.8

48.2

Sales Volume (thousands of tons)

191

777

373

371

968

Adjusted EBITDA per Ton

72.8

44.1

4.6

24.8

49.8

Reconciliations from Adjusted EBITDA to Adjusted Pre-Tax Operating Income

Reconciliations

SunCoke Energy -

Goldman Sachs Small Cap Summit

$ in millions, except per ton data

Jewell Coke

Other

Domestic

Coke

International

Coke

Jewell Coal

Corporate

Combined

Domestic

Coke

Q2 2011

Adjusted EBITDA

10.6

25.3

0.8

11.5

(10.5)

37.7

35.9

Subtract: Depreciation, depletion and amortization

(1.4)

(9.6)

(0.1)

(3.2)

(0.4)

(14.7)

(11.0)

Add (Subtract): Net (Income) loss attributable

to noncontrolling interests

1.6

Adjusted Pre-Tax Operating Income

9.2

17.3

0.7

8.3

(10.9)

24.6

26.5

Adjusted EBITDA

10.6

25.3

0.8

11.5

(10.5)

37.7

35.9

Sales Volume (thousands of tons)

170

757

412

334

927

Adjusted EBITDA per Ton

62.4

33.4

1.9

34.4

38.7

Q1 2011

Adjusted EBITDA

11.0

8.5

1.0

12.3

(6.2)

26.6

19.5

Subtract: Depreciation, depletion and amortization

(1.1)

(8.6)

(2.7)

(0.6)

(13.0)

(9.7)

Add (Subtract): Net (Income) loss attributable

to noncontrolling interests

(6.2)

Adjusted Pre-Tax Operating Income

9.9

(6.3)

1.0

9.6

(6.8)

7.4

3.6

Adjusted EBITDA

11.0

8.5

1.0

12.3

(6.2)

26.6

19.5

Sales Volume (thousands of tons)

175

697

362

386

872

Adjusted EBITDA per Ton

62.9

12.2

2.8

31.9

22.4

Reconciliations from Adjusted EBITDA to Adjusted Pre-Tax Operating Income

(in millions)

2012E

Low

2012E

High

Net Income

$98

$122

Depreciation, Depletion and Amortization

Total financing costs, net

Income tax expense

EBITDA

$245

$277

Sales discounts

Noncontrolling interests

(6)

(7)

Adjusted EBITDA

$250

$280

Estimated EBITDA Reconciliation

2012E Net Income to Adjusted EBITDA Reconciliation

SunCoke Energy -

Goldman Sachs Small Cap Summit

Free Cash Flow Reconciliations

2012E Estimated Free Cash Flow Reconciliation

SunCoke Energy -

Goldman Sachs Small Cap Summit

(in millions)

Half

2012

Cash from operations

$ 86.7

Less cash used for investing activities

(20.7)

Less payments to minority interest

( -

)

Free Cash Flow

$ 66.0

(in millions)

2012

Cash from operations

In excess of

$ 189

Less cash used for investing activities

Approx.

(85)

Less payments to minority interest

Approx.

(4)

Free Cash Flow

In excess of

$ 100

First Half 2012 Free Cash Flow Reconciliation

Attached files

Stock widget

Investing forum

SunCoke Energy, Inc. Reports

Also read