{"id":519610,"date":"2021-07-29T06:48:40","date_gmt":"2021-07-29T10:48:40","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/suncoke-energy-inc-reports-strong-second-quarter-2021-results\/"},"modified":"2021-07-29T06:48:40","modified_gmt":"2021-07-29T10:48:40","slug":"suncoke-energy-inc-reports-strong-second-quarter-2021-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/suncoke-energy-inc-reports-strong-second-quarter-2021-results\/","title":{"rendered":"SunCoke Energy, Inc. Reports Strong Second Quarter 2021 Results"},"content":{"rendered":"
\n

– Second quarter 2021 net loss attributable to SXC was $8.8 million, or $0.11 per share, reflecting a $22.7 million, or $0.27 per share impact of debt extinguishment costs related to our debt refinancing<\/h2>\n

– Adjusted EBITDA(1) for the quarter was $68.0 million, up 15 percent versus the prior year period; Year-to-date Adjusted EBITDA was $138.6 million<\/h2>\n

– Completed debt refinancing, extending the revolver and notes maturities while achieving significant interest rate savings of approximately $17 million on an annual basis<\/h2>\n

– Increasing full-year 2021 Adjusted EBITDA guidance range from $215 million – $230 million to $255 million – $265 million reflecting successful execution of foundry\/export coke initiatives and robust performance at CMT driven by strength in commodity markets<\/h2>\n

PR Newswire<\/p>\n<\/p><\/div>\n

\n

\n LISLE, Ill.<\/span>, July 29, 2021<\/span> \/PRNewswire\/ — SunCoke Energy, Inc. (NYSE: SXC) today reported results for the second quarter\u00a02021, reflecting continued strong performance in both the Domestic Coke and Logistics segments.<\/p>\n

\n

\n
\n \"SunCoke
\n <\/a>\n <\/p>\n<\/p><\/div>\n

“We are pleased with our second quarter results and the successful execution of our Company’s debt refinancing. This refinancing significantly lowers our cost of debt, extends debt maturities and aligns with the Company’s long term goal of gross leverage ratio of three times or lower.” said Mike Rippey<\/span>, President and Chief Executive Officer of SunCoke Energy, Inc. “The strength in the global coke market along with strong operating performance are the key drivers of our excellent financial results in the Domestic Coke segment. Our Logistics business performance was driven by increased shipments from our Convent Marine Terminal. Record first half performance and the expected strength in steel and coal markets for the remainder of the year, leads us to significantly increase our full year Adjusted EBITDA guidance.”<\/p>\n

\n SECOND QUARTER CONSOLIDATED RESULTS<\/b>\n <\/p>\n

\n\n\n\n\n\n\n
\n \n <\/td>\n\n

\n
\n Three Months Ended June 30,<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n
\n (Dollars in millions)<\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 2021<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 2020<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Increase <\/b>
\n <\/span>\n <\/p>\n

\n
\n (Decrease)<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Revenues<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 364.3<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 338.0<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 26.3<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Net (loss) income attributable to SXC<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n (8.8)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 6.5<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n (15.3)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Adjusted EBITDA(1)<\/sup><\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 68.0<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 59.0<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 9.0<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n<\/table><\/div>\n
\n\n\n
\n

\n (1)<\/span>\n <\/p>\n<\/td>\n

\n

\n See definition of Adjusted EBITDA and reconciliation elsewhere in this release.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

Revenues in the second quarter of 2021 increased $26.3 million<\/span> as compared to the prior year period, reflecting higher volumes in our Domestic Coke and Logistics segment partially offset by the pass through of lower costs in our Domestic Coke segment.<\/p>\n

Net income attributable to SXC decreased $15.3 million<\/span> as compared to the prior year period, reflecting a $22.7 million<\/span>, net of tax impact of debt extinguishment costs related to our debt refinancing, which more than offset our improved operating results.<\/p>\n

Adjusted EBITDA increased $9.0 million<\/span> as compared to the prior year period primarily driven by higher volumes in the Logistics segment.<\/p>\n

\n SECOND QUARTER SEGMENT RESULTS<\/b>\n <\/p>\n

\n
\n Domestic Coke
<\/u>
\n <\/b>Domestic Coke consists of cokemaking facilities and heat recovery operations at our Jewell, Indiana Harbor, Haverhill, Granite City<\/span> and Middletown<\/span> plants. <\/p>\n

\n\n\n\n\n\n\n\n
\n \n <\/td>\n\n

\n
\n Three Months Ended June 30,<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n
\n (Dollars in millions, except per ton amounts)<\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 2021<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 2020<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Increase <\/b>
\n <\/span>\n <\/p>\n

\n
\n (Decrease)<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Revenues<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 338.6<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 323.5<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 15.1<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Adjusted EBITDA(1)<\/sup><\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 61.4<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 61.6<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n (0.2)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Sales volumes (thousands of tons)<\/span>\n <\/p>\n<\/td>\n

\n

\n 1,063<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 977<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 86<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Adjusted EBITDA per ton(2)<\/sup><\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 57.76<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 63.05<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n (5.29)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n<\/table><\/div>\n
\n\n\n\n
\n

\n (1)<\/span>\n <\/p>\n<\/td>\n

\n

\n See definition of Adjusted EBITDA and reconciliation elsewhere in this release.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n (2)<\/span>\n <\/p>\n<\/td>\n

\n

\n Reflects Domestic Coke Adjusted EBITDA divided by Domestic Coke sales volumes.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

Revenues increased $15.1 million<\/span> largely due to higher volumes as well as higher energy revenue partially offset by\u00a0 pass through of lower coal costs as well as lower coal pricing <\/p>\n

Adjusted EBITDA decreased by $0.2 million<\/span>. Higher volumes and energy revenues were more than offset by higher operating and maintenance cost and lower coal-to-coke yields resulting from the lower coal pricing discussed above. <\/p>\n

\n
\n Logistics
<\/u>
\n <\/b>Logistics consists of the handling and mixing services of coal and other aggregates at our Convent Marine Terminal (“CMT”), Lake Terminal, Kanawha River Terminals (“KRT”) and Dismal River Terminal (“DRT”). <\/p>\n

\n\n\n\n\n\n\n\n
\n \n <\/td>\n\n

\n
\n Three Months Ended June 30,<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n
\n (Dollars in millions, except per ton amounts)<\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 2021<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 2020<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Increase <\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Revenues<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 16.7<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 7.3<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 9.4<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Intersegment sales<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 7.4<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 5.2<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 2.2<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Adjusted EBITDA(1)<\/sup><\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 11.4<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 3.0<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 8.4<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Tons handled (thousands of tons)<\/span>\n <\/p>\n<\/td>\n

\n

\n 5,104<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 2,853<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 2,251<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n<\/table><\/div>\n
\n\n\n
\n

\n (1)<\/span>\n <\/p>\n<\/td>\n

\n

\n See definition of Adjusted EBITDA and reconciliation elsewhere in this release.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

Revenues and Adjusted EBITDA increased by $9.4 million<\/span> and $8.4 million<\/span>, respectively, as compared to the same prior year period driven by continued improvement in the export coal market, which resulted in higher throughput volumes at CMT as well as higher iron ore volumes. <\/p>\n

\n
\n Brazil Coke
<\/u>
\n <\/b>Brazil Coke consists of a cokemaking facility in Vit\u00f3ria, Brazil<\/span>, which we operate for an affiliate of ArcelorMittal. <\/p>\n

Revenues and Adjusted EBITDA were $9.0 million<\/span> and $4.0 million<\/span>, respectively, during the second quarter 2021, which were higher than revenues and Adjusted EBITDA of $7.2 million<\/span> and $3.2 million<\/span>, respectively, during the second quarter 2020. The increase was driven by higher volumes as compared to the same prior year period as well as production bonuses for meeting certain volume targets during the current year period.<\/p>\n

\n
\n Corporate and Other
<\/u>
\n <\/b>Corporate and other expenses, which include activity from our legacy coal mining business, was $8.8 million<\/span> during second quarter 2021, consistent with the prior year period. Lower legacy related expenses of $0.9 million<\/span> and the absence of $0.6 million<\/span> of foundry related research and development costs incurred during the second quarter of 2020 were offset by higher employee related costs during the second quarter of 2021. <\/p>\n

\n
\n 2021 REVISED OUTLOOK<\/u>
\n <\/b>\n <\/p>\n

Our 2021 revised guidance is based on higher margin and volume in our Domestic Coke plants driven by export and foundry coke sales. It also assumes higher Logistics volumes.<\/p>\n

Our 2021 revised guidance is as follows:<\/p>\n