Attached files
| file | filename |
|---|---|
| EX-95.1 - EXHIBIT 95.1 - SunCoke Energy, Inc. | sxcex95110-q2020q1.htm |
| EX-32.2 - EXHIBIT 32.2 - SunCoke Energy, Inc. | sxcex32210-q2020q1.htm |
| EX-32.1 - EXHIBIT 32.1 - SunCoke Energy, Inc. | sxcex32110-q2020q1.htm |
| EX-31.2 - EXHIBIT 31.2 - SunCoke Energy, Inc. | sxcex31210-q2020q1.htm |
| EX-31.1 - EXHIBIT 31.1 - SunCoke Energy, Inc. | sxcex31110-q2020q1.htm |
| EX-22.1 - EXHIBIT 22.1 - SunCoke Energy, Inc. | sxcex22110-q2020q1.htm |
| 10-Q - 10-Q - SunCoke Energy, Inc. | sxc-20200331x10q.htm |
Exhibit 99.1
SunCoke Energy Partners Finance Corp.
Consolidated Statements of Operations
(Unaudited)
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
(Dollars and units in millions, except per unit amounts) | ||||||||
Revenues | ||||||||
Sales and other operating revenue | $ | 223.5 | $ | 230.4 | ||||
Costs and operating expenses | ||||||||
Cost of products sold and operating expenses | 172.5 | 174.1 | ||||||
Selling, general and administrative expenses | 6.6 | 8.7 | ||||||
Depreciation and amortization expense | 22.8 | 28.4 | ||||||
Total costs and operating expenses | 201.9 | 211.2 | ||||||
Operating income | 21.6 | 19.2 | ||||||
Interest expense, net | 12.9 | 14.4 | ||||||
Gain on extinguishment of debt | (2.9 | ) | — | |||||
Income before income tax expense (benefit) | 11.6 | 4.8 | ||||||
Income tax expense (benefit)(1) | 128.9 | (0.1 | ) | |||||
Net (loss) income | (117.3 | ) | 4.9 | |||||
Less: Net income attributable to noncontrolling interests | — | 0.4 | ||||||
Net (loss) income attributable to SunCoke Energy Partners Finance Corp./SunCoke Energy Partners, L.P.(1) | $ | (117.3 | ) | $ | 4.5 | |||
General partner's interest in net (loss) income | N/A | $ | 0.1 | |||||
Limited partners' interest in net (loss) income | N/A | $ | 4.4 | |||||
Net (loss) income per common share/unit (basic and diluted) | $ | (2.54 | ) | $ | 0.10 | |||
Weighted average common shares/units outstanding (basic and diluted) | 46.2 | 46.2 | ||||||
(1) | As of January 1, 2020, SunCoke Energy Partners, L.P. merged with and into SunCoke Energy Partners Finance Corp., both of which are wholly-owned subsidiaries of SunCoke Energy, Inc. As a result, non-cash deferred tax expense was recorded during the three months ended March, 31, 2020 to reflect the deferred tax liabilities of SunCoke Energy Partners Finance Corp. and its subsidiaries. |
SunCoke Energy Partners Finance Corp.
Consolidated Balance Sheets
March 31, 2020 | December 31, 2019 | |||||||
(Unaudited) | ||||||||
(Dollars in millions) | ||||||||
Assets | ||||||||
Cash | $ | 46.4 | $ | 29.3 | ||||
Receivables, net | 30.1 | 34.7 | ||||||
Receivables from affiliate, net | — | 1.3 | ||||||
Inventories | 104.2 | 106.9 | ||||||
Other current assets | 1.5 | 0.3 | ||||||
Total current assets | 182.2 | 172.5 | ||||||
Properties, plants and equipment (net of accumulated depreciation of $581.7 million and $559.8 million at March 31, 2020 and December 31, 2019, respectively) | 1,134.0 | 1,152.3 | ||||||
Intangible assets, net | 33.7 | 34.2 | ||||||
Deferred charges and other assets | 4.3 | 4.4 | ||||||
Total assets | $ | 1,354.2 | $ | 1,363.4 | ||||
Liabilities and Equity | ||||||||
Accounts payable | $ | 60.3 | $ | 83.3 | ||||
Accrued liabilities | 14.1 | 13.3 | ||||||
Current portion of financing obligation | 3.0 | 2.9 | ||||||
Interest payable | 14.1 | 2.2 | ||||||
Total current liabilities | 91.5 | 101.7 | ||||||
Long-term debt and financing obligation | 627.4 | 639.4 | ||||||
Deferred income taxes | 156.4 | 26.3 | ||||||
Other deferred credits and liabilities | 12.5 | 12.4 | ||||||
Total liabilities | 887.8 | 779.8 | ||||||
Equity | ||||||||
Common stock, $0.01 par value (issued 46,227,148 shares at March 31, 2020) | 0.5 | — | ||||||
Additional paid-in capital | 583.2 | — | ||||||
Retained deficit | (117.3 | ) | — | |||||
Total SunCoke Energy Partners Finance Corp. stockholders' equity | 466.4 | — | ||||||
Common units (issued 46,227,148 units at December 31, 2019) | — | 518.2 | ||||||
General partner's interest | — | 52.6 | ||||||
Partners' capital attributable to SunCoke Energy Partners, L.P. | — | 570.8 | ||||||
Noncontrolling interest | — | 12.8 | ||||||
Total equity | 466.4 | 583.6 | ||||||
Total liabilities and equity | $ | 1,354.2 | $ | 1,363.4 | ||||
SunCoke Energy Partners Finance Corp.
Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
(Dollars in millions) | ||||||||
Cash Flows from Operating Activities: | ||||||||
Net (loss) income | $ | (117.3 | ) | $ | 4.9 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Depreciation and amortization expense | 22.8 | 28.4 | ||||||
Deferred income tax expense (benefit) | 130.1 | (0.1 | ) | |||||
Gain on extinguishment of debt | (2.9 | ) | — | |||||
Changes in working capital pertaining to operating activities: | ||||||||
Receivables, net | 4.6 | (12.6 | ) | |||||
Receivables/payables from affiliate, net | 1.3 | 5.8 | ||||||
Inventories | 2.7 | (25.6 | ) | |||||
Accounts payable | (13.4 | ) | 9.3 | |||||
Accrued liabilities | 0.8 | 3.9 | ||||||
Interest payable | 11.9 | 13.1 | ||||||
Other | (0.1 | ) | (1.4 | ) | ||||
Net cash provided by operating activities | 40.5 | 25.7 | ||||||
Cash Flows from Investing Activities: | ||||||||
Capital expenditures | (13.8 | ) | (13.4 | ) | ||||
Net cash used in investing activities | (13.8 | ) | (13.4 | ) | ||||
Cash Flows from Financing Activities: | ||||||||
Repayment of financing obligation | (0.7 | ) | (0.7 | ) | ||||
Repayment of long-term debt | (8.9 | ) | — | |||||
Proceeds from revolving credit facility | — | 60.7 | ||||||
Repayment of revolving credit facility | — | (65.7 | ) | |||||
Distributions to unitholders (public and parent) | — | (18.9 | ) | |||||
Distributions to noncontrolling interest (SunCoke Energy, Inc.) | — | (0.7 | ) | |||||
Capital contributions from SunCoke | — | 4.0 | ||||||
Other financing activities | — | (0.9 | ) | |||||
Net cash used in financing activities | (9.6 | ) | (22.2 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 17.1 | (9.9 | ) | |||||
Cash and cash equivalents at beginning of period | 29.3 | 12.6 | ||||||
Cash and cash equivalents at end of period | $ | 46.4 | $ | 2.7 | ||||
Supplemental Disclosure of Cash Flow Information | ||||||||
Interest paid, net of capitalized interest of zero and $1.2 million, respectively | $ | 0.3 | $ | 0.4 | ||||
SunCoke Energy Partners Finance Corp.
Reconciliation of Non-GAAP Information
Adjusted EBITDA to Net (Loss) Income
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
(Dollars in millions) | ||||||||
Net (loss) income attributable to SunCoke Energy Partners Finance Corp./SunCoke Energy Partners, L.P.(1) | $ | (117.3 | ) | $ | 4.5 | |||
Add: Net income attributable to noncontrolling interests | — | 0.4 | ||||||
Net (loss) income | $ | (117.3 | ) | $ | 4.9 | |||
Add: | ||||||||
Depreciation and amortization expense | 22.8 | 28.4 | ||||||
Interest expense, net | 12.9 | 14.4 | ||||||
Income tax expense (benefit) | 128.9 | (0.1 | ) | |||||
Gain on extinguishment of debt | (2.9 | ) | — | |||||
Contingent consideration adjustments(2) | — | (0.4 | ) | |||||
Simplification Transaction costs(3) | — | 0.5 | ||||||
Adjusted EBITDA | $ | 44.4 | $ | 47.7 | ||||
Subtract: Adjusted EBITDA attributable to noncontrolling interest(4) | — | 0.8 | ||||||
Adjusted EBITDA attributable to SunCoke Energy Partners Finance Corp./SunCoke Energy Partners, L.P.(1) | $ | 44.4 | $ | 46.9 | ||||
(1) | As of January 1, 2020, SunCoke Energy Partners, L.P. (the "Partnership") merged with and into SunCoke Energy Partners Finance Corp., both of which are wholly-owned subsidiaries of SunCoke Energy, Inc. |
(2) | In connection with the CMT acquisition, the Partnership entered into a contingent consideration arrangement that required the Partnership to make future payments to the seller based on future volume over a specified threshold, price and contract renewals. Adjustments to the fair value of the contingent consideration were primarily the result of modifications to the volume forecast. Customer events during the third quarter of 2019 reduced the contingent consideration liability to zero. |
(3) | Costs expensed by the Partnership associated with the Simplification Transaction. |
(4) | Reflects net income attributable to noncontrolling interest adjusted for noncontrolling interest's share of interest, taxes, income, and depreciation and amortization. Noncontrolling interest in the prior year period reflects the portion of the Partnership owned by public unitholders prior to the Simplification Transaction. |