Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - SunCoke Energy, Inc. | d406507d8k.htm |
 Barclays
CEO Energy-Power
Conference
September 5, 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.
Barclays CEO Energy-Power Conference
2 |
 Largest
independent producer of metallurgical coke in the Americas
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
–
Four new plants since 2006 proves our ability
to permit, design, construct and start up
greenfield developments and work
internationally
–
Supply world class steelmakers: Arcelor
Mittal, US Steel and AK Steel
Coal mining operations represents
~15% of Adjusted EBITDA
(1)
–
2012 expected production of 1.6 million tons
–
114 million tons of primarily mid-vol.
metallurgical coal reserves in Virginia and
West Virginia
About SunCoke
About SunCoke
SunCoke
Cokemaking Capacity
(In thousands of tons)
Barclays CEO Energy-Power Conference
3
(1)
For a definition and reconciliation of Adjusted EBITDA, please see the appendix.
|
 Blast Furnaces
and Coke Blast Furnaces and Coke
4
1 short ton
of hot metal (NTHM)
Top Gas
BEST IN CLASS in lbs/ST
Iron
burden
Iron ore/
pellets
Scrap
3100
198
Flux
Limestone
30
Fuel
Coke
600
BEST IN CLASS in lbs/ST
Fuel
Nat Gas
Coal
Up to
80-120
Up to
120-180
Blast furnaces are the most
Blast furnaces are the most
efficient and proven method
efficient and proven method
of reducing iron oxides
of reducing iron oxides
into liquid iron
into liquid iron
Coke is a vital material to
Coke is a vital material to
blast furnace steel making
blast furnace steel making
We believe stronger, larger
We believe stronger, larger
coke is becoming more
coke is becoming more
important as blast furnaces
important as blast furnaces
seek to optimize fuel needs
seek to optimize fuel needs
Most efficient blast
furnaces require
800-900 lbs/NTHM
of fuel to produce
a ton of hot metal |
 SunCoke’s
Cokemaking Technology SunCoke’s Cokemaking Technology
5
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Our industry-leading cokemaking technology meets
U.S. EPA Maximum Achievable Control Technology (MACT) Standards |
 SunCoke’s
Heat Recovery vs. By-Product Oven SunCoke’s Heat Recovery vs. By-Product
Oven 6
Barclays CEO Energy-Power Conference
SunCoke Heat Recovery
Traditional By-Product Pressurization
Negative pressure
Positive pressure
Air Emissions
Meet
s
U.S. EPA MACT standards
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‘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
Barclays CEO Energy-Power Conference
7 |
 SunCoke’s
Contract Proposition SunCoke’s Contract Proposition
Barclays CEO Energy-Power Conference
We deliver coke to customers through a competitive turnkey solution,
which produces a consistent stream of earnings
8
What SunCoke Offers
Typical Key
Coke Contract Provisions
-Through)
-Through)
-Through)
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
Operating Cost Component
(Pass
Taxes, Transportation & Future
Environmental Costs
(Pass
Customer
SunCoke
Energy |
 Q1 & 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.
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9
Adjusted EBITDA
(1)
(in millions)
Earnings Per Share (diluted)
$0.17
$0.24
$0.32
$0.32
2011
2012
Q1
Q2
$26.6
$55.8
$37.7
$65.5
2011
2012
Q1
Q2 |
 Domestic Coke
Business Summary Domestic Coke Business Summary
(Jewell Coke & Other Domestic Coke)
(Jewell Coke & Other Domestic Coke)
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10
Domestic
Coke
Production
Domestic Coke Adjusted EBITDA
(1)
Per Ton
(Tons in thousands)
($ 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 $6.2 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 $1.3
million, net of NCI, lower cost or market adjustment on pad coal inventory and
lower coal-to-coke yields related to the startup at Middletown.
Strong performance driven by Middletown, Indiana Harbor and other operations
Jewell
Indiana Harbor
Haverhill
Granite City
Middletown
Jewell Coke Segment
Other Domestic Coke Segment
Adjusted EBITDA/ton
Q2 '11
Q3 '11
Q4 '11
Q1 '12
Q2 '12
Q2 '11
Q3 '11
Q4 '11
Q1 '12
Q2 '12 |
 Coal Mining
Financial Summary Coal Mining Financial Summary
Barclays CEO Energy-Power Conference
11
Coal
Mining
Adjusted
EBITDA
(1)
and
Avg.
Sales
Price/Ton
(2)
($ 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. and thermal
pricing/volumes
–
Cash costs up $11/ton, reflecting decreased mix and
higher costs of hi-vol. and 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
$11
$9
$2
$7
$9
$162
$155
$159
$171
$167
$34
$25
$20
$20
$25
$126
$132
$138
$151
$137
Q2 '11
Q3 '11
Q4 '11(3)
Q1 '12
Q2 '12
Coal Adjusted EBITDA
Average Sales Price
Coal Adj EBITDA / ton
Coal Cash Cost / ton
(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)
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12
(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
2011
Adjusted
EBITDA
Coke Business
Coal Mining
Corporate
Costs
2012 Adjusted
EBITDA
(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 –
$35 million
Coke Production
In excess of 4.3 million tons
Coal Production
Approximately 1.6 million tons
*Diluted
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13
For a definition of Adjusted EBITDA and Free Cash Flow and their reconciliations, please see
the appendix.
(1) |
 Strategies for
Enhancing Shareholder Value Strategies for Enhancing Shareholder Value
14
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Operational
Excellence
•
Maintain focus on details
and discipline of coke and
coal mining operations
•
Sustain and enhance top
quartile safety
performance and ability to
meet environment
standards
•
Leverage operating know-
how and technology to
continuously improve
yields and operating costs
Grow The Coke
Business
•
U.S. & Canada
•
Continue permitting
efforts for next potential
U.S. facility
•
Explore opportunities to
make strategic
investments in existing
capacity
•
International
•
Execute India entry and
pursue follow-on growth
Strategically Optimize
Assets
•
Coke MLP
•
Execute plan to place a
portion of our
cokemaking assets into
an MLP structure
•
Coal
•
Optimize operations and
investments to enhance
long-term strategic
flexibility |
 Barclays CEO
Energy-Power Conference Source: CRU, The Annual Outlook for Metallurgical Coke
2012. Replace aging coke batteries operated by integrated steel producers
Source: CRU, The Annual Outlook for Metallurgical Coke 2012
51% of coke capacity is at facilities >30 years old
Grow the Coke Business:
Grow the Coke Business:
U.S. and Canada
U.S. and Canada
15
U.S. & Canada Coke Supply
Total 2011 Coke Demand: 19.5 million tons
Integrated
Integrated
Steel
Steel
Producers
Producers
63%
63%
SunCoke
18%
DTE
5%
Other Merchant
Other Merchant
& Foundry
& Foundry
6%
6%
Imports
Imports
8%
8%
9
37
27%
24%
SunCoke
U.S. &
Canada
(excl SXC)
30-40 years
40+ years
Aging Cokemaking Facilities
%
of U.S. & Canada
coke production
Average Age |
 SunCoke
believes it has the opportunity to displace higher cost coke imports (US$/ton) Source: Steel Business Briefing, 2012
(1)
Other Domestic Coke sales and other operating revenues less energy sales divided by
tons sold.
Grow the Coke Business:
Grow the Coke Business:
U.S. and Canada
U.S. and Canada
16
Source: CRU, Metallurgical Coke Market Outlook 2012
(Tons in millions)
Barclays CEO Energy-Power Conference
Chinese Coke Price vs. Representative SunCoke Price
(1)
U.S. and Canada Coke Imports |
 Coke Price
Comparison Coke Price Comparison
17
Delivered
Coke
Prices
-
$/ton
SunCoke’s coke is highly competitive on price,
quality and reliability versus imported coke
Barclays CEO Energy-Power Conference
$551
Based on June 2012 prices
$341
$54
$327
$407
$144
Other Domestic Coke
(Delivered Price)
Ukrainian
Coke (2)
Chinese
Coke (1)
SunCoke Coke Price @ Spot Coal Price
SunCoke Price -
Contracted Coal Price Differential
Chinese Coke Price
Chinese 40% Export Tax Premium (Tariff)
1
Includes $50/ton freight and $40/ton handling loss
2
Includes $40/ton freight and $30/ton handling loss
$395
$327
Source: World Price(DTC) – June 2012, Coke Market Report - June 2012
, CRU and company estimates |
 Natural Gas in
The Blast Furnace Natural Gas in The Blast Furnace
Impact of Low Natural Gas Prices
•
Natural gas cannot completely replace
coke in blast furnace
–
We estimate natural gas and other
injectants can replace up to about 30%
–
The less coke used the more important
the coke’s quality
•
Alternative technologies take time to
implement, require significant capital
commitments and are energy intensive
•
Coke oven gases produced by
integrated steelmakers’
own coke
ovens is less valuable in low cost
natural gas environment, potentially
impacting steelmakers’
future
reinvest/rebuild decisions
Blast Furnace Fuel Pricing
18
Source: CRU, SXC Analysis
US$/MMBtu |
 Grow the Coke
Business: U.S. and Canada
Aging battery
replacement
Import displacement
and demand growth
Expected demand opportunity
by 2015
in millions of tons
5
19
Barclays CEO Energy-Power Conference
U.S. and Canada
Potential Coke Market
Opportunity
SunCoke’s
North America
Strategy
Permit a potential new
Permit a potential new
multi-customer
multi-customer
660k/TPY U.S. plant
660k/TPY U.S. plant
Explore acquisition of
Explore acquisition of
existing coke assets
existing coke assets |
 Sources: CRU, The Annual Outlook for
Metallurgical Coke 2011, CIA World Factbook.
Grow the Coke Business:
Grow the Coke Business:
International -
International -
India
India
Barclays CEO Energy-Power Conference
20
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)
Discussing
Discussing
opportunities in
opportunities in
India
India
Targeting potential
Targeting potential
entry
entry
by early 2013
by early 2013
–
–
•
•
Committed to
Committed to
India entry
India entry
strategy
strategy |
 Master Limited
Partnership Master Limited Partnership
Filed S-1 on August 8, 2012
Expected Assets/Structure
–
At closing of offering, MLP will
own 60% interest 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
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21
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. Barclays CEO Energy-Power Conference
23 |
 Reconciliations
Barclays CEO Energy-Power Conference
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$ in millions
Q2 2012
Q1 2012
FY 2011
Q4 2011
Q3 2011
Q2 2011
Q1 2011
Adjusted Operating Income
46.6
37.1
80.4
14.9
33.5
24.6
7.4
Net Income (Loss) attributable to Noncontrolling Interest
1.3
(0.3)
(1.7)
(0.5)
3.4
1.6
(6.2)
Subtract: Depreciation Expense
(20.2)
(18.4)
(58.4)
(16.0)
(14.7)
(14.7)
(13.0)
Adjusted EBITDA
65.5
55.8
140.5
31.4
44.8
37.7
26.6
Subtract: Depreciation, depletion and amortization
(20.2)
(18.4)
(58.4)
(16.0)
(14.7)
(14.7)
(13.0)
Subtract: Financing expense, net
(11.8)
(12.0)
(1.4)
(7.1)
(3.3)
4.5
4.5
Subtract: Income Tax
(7.0)
(5.3)
(7.2)
2.9
(5.1)
(1.9)
(3.1)
Subtract: Sales Discount
(3.8)
(3.2)
(12.9)
(3.2)
(3.5)
(3.1)
(3.1)
Add: Net Income attributable to NCI
1.3
(0.3)
(1.7)
(0.5)
3.4
1.6
(6.2)
Net Income
24.0
16.6
58.9
7.5
21.6
24.1
5.7
Reconciliations from Adjusted Operating Income and Adjusted EBITDA to Net Income
|
     Reconciliations
Barclays CEO Energy-Power Conference
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$ 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
Barclays CEO Energy-Power Conference
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$ in millions, except per ton data
Jewell Coke
Other
Domestic
Coke
International
Coke
Jewell Coal
Corporate
Combined
Domestic
Q4 2011
Adjusted EBITDA
10.6
21.3
10.2
2.5
(13.2)
31.4
Subtract: Depreciation, depletion and amortization
(1.2)
(10.6)
(0.1)
(3.7)
(0.4)
(16.0)
Add (Subtract): Net (Income) loss attributable
to noncontrolling interests
(0.5)
(0.5)
Adjusted Pre-Tax Operating Income
9.4
10.2
10.1
(1.2)
(13.6)
14.9
Adjusted EBITDA
10.6
21.3
10.2
2.5
(13.2)
31.4
Sales Volume (thousands of tons)
166
837
295
363
Adjusted EBITDA per Ton
63.9
25.4
34.6
6.9
Q3 2011
Adjusted EBITDA
13.9
34.3
1.7
9.2
(14.3)
44.8
Subtract: Depreciation, depletion and amortization
(1.2)
(9.9)
-
(3.3)
(0.3)
(14.7)
Add (Subtract): Net (Income) loss attributable
to noncontrolling interests
3.4
3.4
Adjusted Pre-Tax Operating Income
12.7
27.8
1.7
5.9
(14.6)
33.5
Adjusted EBITDA
13.9
34.3
1.7
9.2
(14.3)
44.8
Sales Volume (thousands of tons)
191
777
373
371
Adjusted EBITDA per Ton
72.8
44.1
4.6
24.8
Reconciliations from Adjusted EBITDA to Adjusted Pre-Tax Operating Income
Coke
31.9
(11.8)
(0.5)
19.6
31.9
1,003
31.8
48.2
(11.1)
3.4
40.5
48.2
968
49.8 |
 Reconciliations
Barclays CEO Energy-Power Conference
27
$ 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
Barclays CEO Energy-Power Conference
28 |
 Free Cash Flow
Reconciliations 2012E Estimated Free Cash Flow Reconciliation
Barclays CEO Energy-Power Conference
29
(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 |