SunCoke Energy, Inc. - FORM 10-Q - EX-99.1 - August 3, 2020

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10-Q - 10-Q - SunCoke Energy, Inc.sxc-20200630.htm
EX-95.1 - EX-95.1 - SunCoke Energy, Inc.sxcex95110-q2020q2.htm
EX-32.2 - EX-32.2 - SunCoke Energy, Inc.sxcex32210-q2020q2.htm
EX-32.1 - EX-32.1 - SunCoke Energy, Inc.sxcex32110-q2020q2.htm
EX-31.2 - EX-31.2 - SunCoke Energy, Inc.sxcex31210-q2020q2.htm
EX-31.1 - EX-31.1 - SunCoke Energy, Inc.sxcex31110-q2020q2.htm
EX-22.1 - EX-22.1 - SunCoke Energy, Inc.sxcex22110-q2020q2.htm
EX-10.1 - EX-10.1 - SunCoke Energy, Inc.sxcex10110-q2020q2.htm

Exhibit 99.1
SunCoke Energy Partners Finance Corp.
Consolidated Statements of Operations
(Unaudited)
 
Three Months Ended June 30,Six Months Ended June 30,
 
2020201920202019
 
(Dollars and shares/units in millions, except per share/unit amounts)
Revenues
Sales and other operating revenue
$191.2  $246.9  $414.7  $477.3  
Costs and operating expenses
Cost of products sold and operating expenses
144.3  190.2  316.8  364.3  
Selling, general and administrative expenses
7.2  12.5  13.8  21.2  
Depreciation and amortization expense
22.6  28.0  45.4  56.4  
Total costs and operating expenses
174.1  230.7  376.0  441.9  
Operating income
17.1  16.2  38.7  35.4  
Interest expense, net
12.6  14.6  25.5  29.0  
Gain on extinguishment of debt
—  —  (2.9) —  
Income before income tax expense (benefit)
4.5  1.6  16.1  6.4  
Income tax expense (benefit)(1)
0.3  (89.2) 129.2  (89.3) 
Net income (loss)
4.2  90.8  (113.1) 95.7  
Less: Net income (loss) attributable to noncontrolling interests
—  2.1  —  2.5  
Net income (loss) attributable to SunCoke Energy Partners Finance Corp./SunCoke Energy Partners, L.P.(1)
$4.2  $88.7  $(113.1) $93.2  
General partner's interest in net income
N/A$1.8  N/A$1.9  
Limited partners' interest in net income
N/A$86.9  N/A$91.3  
Net income per common share/unit (basic and diluted)
$0.09  $1.88  $(2.45) $1.97  
Weighted average common shares/units outstanding (basic and diluted)
46.2  46.2  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 six months ended June 30, 2020 to reflect the deferred tax liabilities of SunCoke Energy Partners Finance Corp. and its subsidiaries.




SunCoke Energy Partners Finance Corp.
Consolidated Balance Sheets
(Unaudited)
 
June 30, 2020December 31, 2019
(Dollars in millions, except par value amounts)
Assets
Cash
$36.6  $29.3  
Receivables, net
28.1  34.7  
Receivables from affiliate, net4.7  1.3  
Inventories
95.3  106.9  
Other current assets
3.3  0.3  
Total current assets
168.0  172.5  
Properties, plants and equipment (net of accumulated depreciation of $603.7 million and $559.8 million at June 30, 2020 and December 31, 2019, respectively)
1,117.1  1,152.3  
Intangible assets, net33.2  34.2  
Deferred charges and other assets
4.1  4.4  
Total assets
$1,322.4  $1,363.4  
Liabilities and Equity
Accounts payable
$33.7  $83.3  
Accrued liabilities
14.0  13.3  
Current portion of financing obligation
3.0  2.9  
Interest payable
2.1  2.2  
Total current liabilities
52.8  101.7  
Long-term debt and financing obligation
627.2  639.4  
Deferred income taxes
158.6  26.3  
Other deferred credits and liabilities
13.2  12.4  
Total liabilities
851.8  779.8  
Equity
Common stock, $0.01 par value (issued 46,227,148 shares at June 30, 2020)
0.5  —  
Additional paid-in capital

583.2  —  
Retained deficit

(113.1) —  
Total SunCoke Energy Partners Finance Corp. stockholders' equity
470.6  —  
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
470.6  583.6  
Total liabilities and equity
$1,322.4  $1,363.4  




SunCoke Energy Partners Finance Corp.
Consolidated Statements of Cash Flows
(Unaudited)
 
Six Months Ended June 30,
 
20202019
 
(Dollars in millions)
Cash Flows from Operating Activities:
Net (loss) income
$(113.1) $95.7  
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization expense
45.4  56.4  
Deferred income tax expense (benefit)
132.3  (89.2) 
Gain on extinguishment of debt
(2.9) —  
Changes in working capital pertaining to operating activities:
Receivables, net
6.6  (24.0) 
Receivables/payables from affiliate, net
(3.4) 5.9  
Inventories
11.6  (35.6) 
Accounts payable
(39.5) 8.3  
Accrued liabilities
0.7  14.8  
Interest payable
(0.1) 0.3  
Other
(0.7) 0.9  
Net cash provided by operating activities
36.9  33.5  
Cash Flows from Investing Activities:
Capital expenditures
(19.3) (32.1) 
Other
—  0.2  
Net cash used in investing activities
(19.3) (31.9) 
Cash Flows from Financing Activities:
Repayment of financing obligation(1.4) (1.4) 
Repayment of long-term debt
(8.9) —  
Proceeds from revolving credit facility
—  175.6  
Repayment of revolving credit facility
—  (180.6) 
Distributions to unitholders (public and parent)
—  (37.8) 
Distributions to noncontrolling interest (SunCoke Energy, Inc.)
—  (0.9) 
Capital contributions from SunCoke—  34.0  
Other financing activities
—  (0.9) 
Net cash used in financing activities
(10.3) (12.0) 
Net increase (decrease) in cash and cash equivalents7.3  (10.4) 
Cash and cash equivalents at beginning of period
29.3  12.6  
Cash and cash equivalents at end of period
$36.6  $2.2  
Supplemental Disclosure of Cash Flow Information
Interest paid, net of capitalized interest of zero and $2.3 million, respectively
$24.4  $27.0  
Income taxes paid$—  $1.5  


SunCoke Energy Partners Finance Corp.
Reconciliation of Non-GAAP Information
Adjusted EBITDA to Net Income (Loss)
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
(Dollars in millions)
Net income (loss) attributable to SunCoke Energy Partners Finance Corp./SunCoke Energy Partners, L.P.(1)
$4.2  $88.7  $(113.1) $93.2  
Add: Net income attributable to noncontrolling interests
—  2.1  —  2.5  
Net income (loss) $4.2  $90.8  $(113.1) $95.7  
Add:
Depreciation and amortization expense22.6  28.0  45.4  56.4  
Interest expense, net12.6  14.6  25.5  29.0  
Income tax expense (benefit)0.3  (89.2) 129.2  (89.3) 
Gain on extinguishment of debt—  —  (2.9) —  
Contingent consideration adjustments(2)
—  0.1  —  (0.3) 
Simplification Transaction costs(3)
—  4.4  —  4.9  
Adjusted EBITDA$39.7  $48.7  $84.1  $96.4  
Subtract: Adjusted EBITDA attributable to noncontrolling interest(4)
—  0.8  —  1.6  
Adjusted EBITDA attributable to SunCoke Energy Partners Finance Corp./SunCoke Energy Partners, L.P.(1)
$39.7  $47.9  $84.1  $94.8  
(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. This liability was written to zero during the third quarter of 2019, and the related contract was terminated in 2020.
(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 SunCoke Energy, Inc.'s two percent ownership of our cokemaking facilities.




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