Attached files
| file | filename |
|---|---|
| EX-95.1 - EX-95.1 - SunCoke Energy, Inc. | sxcex95110-q2020q3.htm |
| EX-32.2 - EX-32.2 - SunCoke Energy, Inc. | sxcex32210-q2020q3.htm |
| EX-32.1 - EX-32.1 - SunCoke Energy, Inc. | sxcex32110-q2020q3.htm |
| EX-31.2 - EX-31.2 - SunCoke Energy, Inc. | sxcex31210-q2020q3.htm |
| EX-31.1 - EX-31.1 - SunCoke Energy, Inc. | sxcex31110-q2020q3.htm |
| EX-22.1 - EX-22.1 - SunCoke Energy, Inc. | sxcex22110-q2020q3.htm |
| EX-10.4 - EX-10.4 - SunCoke Energy, Inc. | sxcex10410-q2020q3.htm |
| EX-10.3 - EX-10.3 - SunCoke Energy, Inc. | sxcex10310-q2020q3.htm |
| EX-10.2 - EX-10.2 - SunCoke Energy, Inc. | sxcex10210-q2020q3.htm |
| 10-Q - 10-Q - SunCoke Energy, Inc. | sxc-20200930.htm |
Exhibit 99.1
SunCoke Energy Partners Finance Corp.
Consolidated Statements of Operations
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
| (Dollars and shares/units in millions, except per share/unit amounts) | ||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||
Sales and other operating revenue | $ | 168.5 | $ | 243.8 | $ | 583.2 | $ | 721.1 | ||||||||||||||||||
Costs and operating expenses | ||||||||||||||||||||||||||
Cost of products sold and operating expenses | 130.5 | 180.6 | 447.3 | 544.9 | ||||||||||||||||||||||
Selling, general and administrative expenses | 7.1 | 6.6 | 20.9 | 27.8 | ||||||||||||||||||||||
Depreciation and amortization expense | 21.1 | 25.8 | 66.5 | 82.2 | ||||||||||||||||||||||
| Long-lived asset and goodwill impairment | — | 247.4 | — | 247.4 | ||||||||||||||||||||||
Total costs and operating expenses | 158.7 | 460.4 | 534.7 | 902.3 | ||||||||||||||||||||||
Operating income (loss) | 9.8 | (216.6) | 48.5 | (181.2) | ||||||||||||||||||||||
Interest expense, net | 12.6 | 14.3 | 38.1 | 43.3 | ||||||||||||||||||||||
Gain on extinguishment of debt | (0.5) | (1.9) | (3.4) | (1.9) | ||||||||||||||||||||||
| (Loss) income before income tax expense (benefit) | (2.3) | (229.0) | 13.8 | (222.6) | ||||||||||||||||||||||
Income tax expense (benefit)(1) | 0.5 | 1.5 | 129.7 | (87.8) | ||||||||||||||||||||||
| Net loss | (2.8) | (230.5) | (115.9) | (134.8) | ||||||||||||||||||||||
| Less: Net income attributable to noncontrolling interests | — | 0.5 | — | 3.0 | ||||||||||||||||||||||
Net loss attributable to SunCoke Energy Partners Finance Corp./SunCoke Energy Partners, L.P.(1) | $ | (2.8) | $ | (231.0) | $ | (115.9) | $ | (137.8) | ||||||||||||||||||
| General partner's interest in net loss | N/A | $ | (4.6) | N/A | $ | (2.8) | ||||||||||||||||||||
| Limited partners' interest in net loss | N/A | $ | (226.4) | N/A | $ | (135.0) | ||||||||||||||||||||
Net income per common share/unit (basic and diluted) | $ | (0.06) | $ | (4.90) | $ | (2.51) | $ | (2.92) | ||||||||||||||||||
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 nine months ended September 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)
| September 30, 2020 | December 31, 2019 | |||||||||||||
| (Dollars in millions, except par value amounts) | ||||||||||||||
Assets | ||||||||||||||
Cash | $ | 37.6 | $ | 29.3 | ||||||||||
Receivables, net | 26.3 | 34.7 | ||||||||||||
| Receivables from affiliate, net | 43.3 | 1.3 | ||||||||||||
Inventories | 90.7 | 106.9 | ||||||||||||
Other current assets | 4.9 | 0.3 | ||||||||||||
Total current assets | 202.8 | 172.5 | ||||||||||||
| Properties, plants and equipment (net of accumulated depreciation of $623.7 million and $559.8 million at September 30, 2020 and December 31, 2019, respectively) | 1,105.1 | 1,152.3 | ||||||||||||
| Intangible assets, net | 32.7 | 34.2 | ||||||||||||
Deferred charges and other assets | 3.9 | 4.4 | ||||||||||||
Total assets | $ | 1,344.5 | $ | 1,363.4 | ||||||||||
Liabilities and Equity | ||||||||||||||
Accounts payable | $ | 51.9 | $ | 83.3 | ||||||||||
Accrued liabilities | 13.8 | 13.3 | ||||||||||||
Current portion of financing obligation | 5.1 | 2.9 | ||||||||||||
Interest payable | 13.9 | 2.2 | ||||||||||||
Total current liabilities | 84.7 | 101.7 | ||||||||||||
Long-term debt and financing obligation | 617.7 | 639.4 | ||||||||||||
Deferred income taxes | 160.6 | 26.3 | ||||||||||||
Other deferred credits and liabilities | 13.7 | 12.4 | ||||||||||||
Total liabilities | 876.7 | 779.8 | ||||||||||||
Equity | ||||||||||||||
| Common stock, $0.01 par value (issued 46,227,148 shares at September 30, 2020) | 0.5 | — | ||||||||||||
Additional paid-in capital | 583.2 | — | ||||||||||||
Retained deficit | (115.9) | — | ||||||||||||
Total SunCoke Energy Partners Finance Corp. stockholders' equity | 467.8 | — | ||||||||||||
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 | 467.8 | 583.6 | ||||||||||||
Total liabilities and equity | $ | 1,344.5 | $ | 1,363.4 | ||||||||||
SunCoke Energy Partners Finance Corp.
Consolidated Statements of Cash Flows
(Unaudited)
| Nine Months Ended September 30, | ||||||||||||||
| 2020 | 2019 | |||||||||||||
| (Dollars in millions) | ||||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||
| Net loss | $ | (115.9) | $ | (134.8) | ||||||||||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||||
| Long-lived asset and goodwill impairment | — | 247.4 | ||||||||||||
Depreciation and amortization expense | 66.5 | 82.2 | ||||||||||||
Deferred income tax expense (benefit) | 134.3 | (87.7) | ||||||||||||
Gain on extinguishment of debt | (3.4) | (1.9) | ||||||||||||
Changes in working capital pertaining to operating activities: | ||||||||||||||
Receivables, net | 8.4 | 12.2 | ||||||||||||
Receivables/payables from affiliate, net | (42.0) | (3.8) | ||||||||||||
Inventories | 16.2 | (28.0) | ||||||||||||
Accounts payable | (23.5) | 0.1 | ||||||||||||
Accrued liabilities | 0.5 | (0.3) | ||||||||||||
Interest payable | 11.7 | 11.2 | ||||||||||||
Other | (0.6) | (2.1) | ||||||||||||
Net cash provided by operating activities | 52.2 | 94.5 | ||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||
Capital expenditures | (26.1) | (46.6) | ||||||||||||
Other | 0.2 | 0.2 | ||||||||||||
Net cash used in investing activities | (25.9) | (46.4) | ||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||
| Repayment of financing obligation | (2.2) | (46.6) | ||||||||||||
Repayment of long-term debt | (15.8) | (2.1) | ||||||||||||
Proceeds from revolving credit facility | — | 204.5 | ||||||||||||
Repayment of revolving credit facility | — | (309.5) | ||||||||||||
Distributions to unitholders (public and parent) | — | (37.8) | ||||||||||||
Distributions to noncontrolling interest (SunCoke Energy, Inc.) | — | (1.6) | ||||||||||||
| Capital contributions from SunCoke | — | 145.0 | ||||||||||||
Other financing activities | — | (0.9) | ||||||||||||
Net cash used in financing activities | (18.0) | (49.0) | ||||||||||||
| Net increase (decrease) in cash and cash equivalents | 8.3 | (0.9) | ||||||||||||
Cash and cash equivalents at beginning of period | 29.3 | 12.6 | ||||||||||||
Cash and cash equivalents at end of period | $ | 37.6 | $ | 11.7 | ||||||||||
| Supplemental Disclosure of Cash Flow Information | ||||||||||||||
Interest paid, net of capitalized interest of zero and $2.3 million, respectively | $ | 24.6 | $ | 29.7 | ||||||||||
| Income taxes paid | $ | — | $ | 1.8 | ||||||||||
SunCoke Energy Partners Finance Corp.
Reconciliation of Non-GAAP Information
Adjusted EBITDA to Net Loss
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||||||||
Net loss attributable to SunCoke Energy Partners Finance Corp./SunCoke Energy Partners, L.P.(1) | $ | (2.8) | $ | (231.0) | $ | (115.9) | $ | (137.8) | ||||||||||||||||||
Add: Net income attributable to noncontrolling interests | — | 0.5 | — | 3.0 | ||||||||||||||||||||||
| Net loss | $ | (2.8) | $ | (230.5) | $ | (115.9) | $ | (134.8) | ||||||||||||||||||
Add: | ||||||||||||||||||||||||||
| Long-lived asset and goodwill impairment | — | 247.4 | — | 247.4 | ||||||||||||||||||||||
| Depreciation and amortization expense | 21.1 | 25.8 | 66.5 | 82.2 | ||||||||||||||||||||||
| Interest expense, net | 12.6 | 14.3 | 38.1 | 43.3 | ||||||||||||||||||||||
| Income tax expense (benefit) | 0.5 | 1.5 | 129.7 | (87.8) | ||||||||||||||||||||||
| Gain on extinguishment of debt | (0.5) | (1.9) | (3.4) | (1.9) | ||||||||||||||||||||||
Contingent consideration adjustments(2) | — | (3.9) | — | (4.2) | ||||||||||||||||||||||
Simplification Transaction costs(3) | — | — | — | 4.9 | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 30.9 | $ | 52.7 | $ | 115.0 | $ | 149.1 | ||||||||||||||||||
Subtract: Adjusted EBITDA attributable to noncontrolling interest(4) | — | 0.9 | — | 2.5 | ||||||||||||||||||||||
Adjusted EBITDA attributable to SunCoke Energy Partners Finance Corp./SunCoke Energy Partners, L.P.(1) | $ | 30.9 | $ | 51.8 | $ | 115.0 | $ | 146.6 | ||||||||||||||||||
(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.