Attached files
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| 8-K - FORM 8-K - SunCoke Energy, Inc. | d391625d8k.htm |
 Investor
Meetings August 2012
Exhibit 99.1 |
    Safe Harbor
Statement 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.
Investor Meetings -
August 2012
2 |
    About
SunCoke 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)
Investor Meetings -
August 2012
(1)
For a definition and reconciliation of Adjusted EBITDA, please see appendix.
(2)
Source: Company estimates
3 |
    More than doubled
capacity since 2006 with four new plants
Proven ability to 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
The Leading Independent Cokemaker
SunCoke
Cokemaking Capacity
(In thousands of tons)
Investor Meetings -
August 2012
4 |
    Our cokemaking
operations are strategically located in proximity to our customers’
integrated steelmaking facilities
SunCoke Operations
SunCoke Operations
Indiana
Harbor
Middletown
Haverhill 1
Haverhill 2
Coal
Mining
Vitoria,
Brazil
Investor Meetings -
August 2012
5
Our metallurgical coal
mining business is located
in Central Appalachia
Jewell
Coke
Granite
City
114M tons of
reserves |
    SunCoke’s
Cokemaking Technology SunCoke’s Cokemaking Technology
6
Investor Meetings -
August 2012 |
    SunCoke’s Heat
Recovery vs. By-Product Oven 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
7
Investor Meetings -
August 2012
SunCoke Heat
Recovery Traditional By-Product |
    SunCoke‘s
Value Proposition SunCoke‘s Value Proposition
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
by-product "credits"
High Quality
& Reliable
Coke Supply
Turndown
Flexibility
Coal
Flexibility
Capital
Efficiency
& Flexibility
Environment
/Economic
Trade-offs
Investor Meetings -
August 2012
8 |
    SunCoke’s
Contract Proposition SunCoke’s Contract Proposition
Investor Meetings -
August 2012
We deliver coke to customers through a competitive turnkey solution,
which produces a consistent stream of earnings
Customer
SunCoke
Energy
9
What SunCoke
Offers
Capital Funding and Ownership
Permits and Approvals
Engineering, Procurement
& Construction
Plant Production and
Environmental Compliance
Reliable, High
-Quality
Coke Supply
Typical Key
Coke Contract Provisions
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) |
    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)
in
first half 2012
-
Cash balance of $190 million and virtually
undrawn revolver of $150 million
(1)
For a definition and reconciliation of Adjusted EBITDA, please see the appendix.
(2)
For a definition and reconciliation of free cash flow, please see the appendix.
Investor Meetings -
August 2012
10 |
    Adjusted
EBITDA Adjusted EBITDA
(1)
(1)
Bridge –
Bridge –
Q2 2011 to Q2 2012
Q2 2011 to Q2 2012
Investor Meetings -
August 2012
11
Quarter’s performance led by strong Coke business results
($ in millions)
(1)
For a definition and reconciliation of Adjusted EBITDA, please see the appendix. |
    Domestic Coke
Business Summary Domestic Coke Business Summary
(Jewell Coke & Other Domestic Coke)
(Jewell Coke & Other Domestic Coke)
Investor Meetings -
August 2012
12
Domestic
Coke
Production
Domestic Coke Adjusted EBITDA
(1)
Per Ton
(Tons in thousands)
($ in millions, except per ton amounts)
(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
$6.2million,
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 $1.3
million, net of NCI, lower cost or market adjustment on pad coal inventory and
lower coal-to-coke yields related to the startup at Middletown.
Strong performance driven by Middletown, Indiana Harbor and other operations
/Ton
/Ton
/Ton
(3)
/Ton
(2) |
    Domestic Coke
Business Outlook Domestic Coke Business
Outlook ($ 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)
($35)
Annual Domestic Coke Adjusted EBITDA
(1)
less Ongoing
Capital Expenditures
$202
$229
Illustrative Liquidity Ratios for Domestic Coke Business
Estimated
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 to be $55 -
$60 for balance of 2012
•
Based on current sentiment, 2012 coke sales volume expected to be in middle of range
Investor Meetings -
August 2012
13
(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 $44 million,
net of amortization of issuance, discount and other fees. |
    Coal Mining
Financial Summary Coal Mining Financial Summary
Investor Meetings -
August 2012
14
Coal Mining Adjusted EBITDA
(1)
and Avg. Sales
Price/Ton
(2)
($ 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
(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 $1.8 million. |
    2012 Adjusted
EBITDA 2012 Adjusted EBITDA
(1)
(1)
Outlook
Outlook
($ in millions)
Investor Meetings -
August 2012
15
(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
$141
$250 -
$280
$95 -
$110
$5 -
$15
$9 -
$14
2011
Adjusted
EBITDA
Coke Business
Coal Mining
2012 Adjusted
EBITDA
Corporate
Costs
(1)
(1) |
    2012
Guidance 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 $85 million
Free Cash Flow
(1)
$100 million +
Cash Tax Rate
10% –
15%
Effective Tax Rate
20% –
24%
Corporate Costs
$30 million –
$35 million
Coke Production
In excess of 4.3 million tons
Coal Production
Approximately 1.6 million tons
*Diluted
Investor Meetings -
August 2012
16
(1)
For a definition of Adjusted EBITDA and Free Cash Flow and their reconciliations, please see
the appendix. |
 Strategies for
Enhancing Shareholder Value Strategies for Enhancing Shareholder Value
17
Investor Meetings -
August 2012
Operational
Excellence
•
Maintain focus on details
and discipline of coke and
coal mining operations
•
Sustain and enhance top
quartile safety
performance and ability to
meet environment
standards
•
Leverage operating know-
how and technology to
continuously improve
yields and operating costs
Grow The Coke
Business
•
U.S. & Canada
•
Continue permitting
efforts for next potential
U.S. facility
•
Explore opportunities to
make strategic
investments in existing
capacity
•
International
•
Execute India entry and
pursue follow-on growth
Strategically Optimize
Assets
•
Coke MLP
•
Execute plan to place a
portion of our
cokemaking assets into
an MLP structure
•
Coal
•
Optimize operations and
investments to enhance
long-term strategic
flexibility |
 Operations
Excellence Operations Excellence
Investor Meetings -
August 2012
18
The SunCoke Way
Safety & Environment
Sustain and enhance
top quartile safety
performance
Meet and exceed
environmental
standards
Execution
Rigorous focus on the details
and discipline
of coke and
coal mining operations
Productivity
Leverage operating know-
how and technology to
continuously improve yields
and operating
& maintenance costs
Financial
Financial
Performance
Performance |
    Chinese Coke
Price vs. Representative SunCoke Price SunCoke believes it has the opportunity to
displace higher cost coke imports .
(US$/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:
Grow the Coke Business:
U.S. and Canada
U.S. and Canada
19
U.S. and Canada Coke Imports
Source: CRU, Metallurgical Coke Market Outlook 2012
(Tons in millions)
Investor Meetings -
August 2012 |
 Coke Price
Comparison 20
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
Investor Meetings -
August 2012
$551
$399
$395
$407
$144
Jewel
Other
Domestic
Coke
Chinese
Coke
SunCoke Coke Price
Chinese Coke Price FOB Ex. Export Tax
(Includes $50/ton freight and $40/ton handling loss)
Chinese Export Tax Premium (40%)
Delivered Coke Prices -
$/ton |
 Investor
Meetings - August 2012
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
Integrated
Steel
Steel
Producers
Producers
63%
63%
SunCoke
18%
DTE
5%
Other Merchant
Other Merchant
& Foundry
& Foundry
6%
6%
Imports
Imports
8%
8%
Grow the Coke Business:
Grow the Coke Business:
U.S. and Canada
U.S. and Canada
21 |
    BF/BOF Crude Steel Production
and Blast Furnace Coke Demand
2010 Coke Rate:
894 lbs/thm
2015E Coke Rate:
800 lbs/thm
In million tons
Grow
Grow
the
the
Coke
Coke
Business:
Business:
U.S. and Canada
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.
Investor Meetings -
August 2012
22 |
 Grow the Coke
Business: Grow the Coke Business:
U.S. and Canada
U.S. and Canada
Aging battery
replacement
Import displacement
Expected demand opportunity
by 2015
in millions of tons
5
23
Investor Meetings -
August 2012
U.S. and Canada
Coke Market Opportunity
SunCoke’s Strategy
Permit a potential new
(likely multi-customer)
660k/TPY U.S. plant
660k/TPY U.S. plant
Explore acquisition of
Explore acquisition of
existing coke assets
existing coke assets
2
3 |
    Sources:
CRU, The Annual Outlook for Metallurgical Coke 2011, CIA World Factbook.
Grow the Coke Business:
Grow the Coke Business:
International -
International -
India
India
Investor Meetings -
August 2012
24
India
Steel/Coke
Market
Growing Steel
Market
Projected to be 3rd largest steel
market by 2020
Blast furnace to play a critical
role in growth
Coke supply
Deficit
Importing approximately
2 million tons annually
Coke capacity investment lags
steel investment
Active
Merchant
Market
3.5 million tons merchant
production or 13% of total
17 active merchant
coke producers
Electric Power
Deficit
10% -
20% short power
Average wholesale price >$80
mwh (2x U.S. rate)
•
•
Committed to
Committed to
India entry
India entry
strategy
strategy
–
–
Discussing
Discussing
opportunities in
opportunities in
India
India
–
–
Targeting potential
Targeting potential
entry
entry
by early 2013
by early 2013 |
 Master Limited
Partnership 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
Investor Meetings -
August 2012
25
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
as
a
reduction
in
sales
and
other
operating
revenue.
The
sales
discounts
represent
the
sharing
with
our
customers
of
a
portion
of
nonconventional
fuels
tax
credits,
which
reduce
our
income
tax
expense.
However,
we
believe
that
our
Adjusted
EBITDA
would
be
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
be
comparable
to
other
similarly
titled
measures
of
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
by
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. Investor Meetings -
August 2012
27 |
    Reconciliations
Investor Meetings -
August 2012
28
$ 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)
(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)
(14.7)
(13.0)
Subtract: Financing expense, net
(11.8)
(12.0)
(7.1)
(3.3)
4.5
4.5
Subtract: Income Tax
(7.0)
(5.3)
2.9
(5.1)
(1.9)
(3.1)
Subtract: Sales Discount
(3.8)
(3.2)
(3.2)
(3.5)
(3.1)
(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
Investor Meetings -
August 2012
29
$ 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
1.3
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)
(0.3)
(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
Investor Meetings -
August 2012
30
$ 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)
(0.5)
(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
3.4
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
Investor Meetings -
August 2012
31
$ 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
1.6
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)
(6.2)
(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
74
72
Total financing costs, net
48
46
Income tax expense
25
37
EBITDA
$245
$277
Sales discounts
11
10
Noncontrolling interests
(6)
(7)
Adjusted EBITDA
$250
$280
Estimated EBITDA Reconciliation
2012E Net Income to Adjusted EBITDA Reconciliation
Investor Meetings -
August 2012
32 |
    Free Cash Flow
Reconciliations 2012E Estimated Free Cash Flow Reconciliation
Investor Meetings -
August 2012
33
(in millions)
1 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
st |