![]() Q1 2013 Earnings Conference Call April 25, 2013 Exhibit 99.2 |
![]() Forward-Looking Statements 1 This slide presentation should be reviewed in conjunction with the First Quarter 2013 earnings releases of SunCoke Energy, Inc. (SunCoke) and SunCoke Energy Partners, L.P. (Partnership) and the conference call held on April 25, 2013 at 10:00 a.m. ET. Some of the information included in this presentation constitutes “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. All statements in this presentation that express opinions, expectations, beliefs, plans, objectives, assumptions or projections with respect to anticipated future performance of SunCoke or the Partnership, in contrast with statements of historical facts, are forward-looking statements. Such forward-looking statements are based on management’s beliefs and assumptions and on information currently available. Forward-looking statements include information concerning possible or assumed future results of operations, 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. Although management believes that its plans, intentions and expectations reflected in or suggested by the forward-looking statements made in this presentation are reasonable, no assurance can be given that these plans, intentions or expectations will be achieved when anticipated or at all. Moreover, such statements are subject to a number of assumptions, risks and uncertainties. Many of these risks are beyond the control of SunCoke and the Partnership, and may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Each of SunCoke and the Partnership 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. For more information concerning these factors, see the Securities and Exchange Commission filings of SunCoke and the Partnership. All forward-looking statements included in this presentation are expressly qualified in their entirety by such cautionary statements. Although forward-looking statements are based on current beliefs and expectations, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date hereof. SunCoke and the Partnership do 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. |
![]() SUNCOKE ENERGY, INC. RESULTS |
![]() Q1 2013 Highlights 3 • Executed SunCoke Energy Partners initial public offering – Declared first quarterly cash distribution prorated for the date of the IPO – Currently expect to increase quarterly distribution by ~2.5% for next quarter and anticipate an overall increase of ~7% for the Q4 2013 distribution to be paid in early 2014 • Completed VISA SunCoke JV, marking our entry to India – Invested $67.7 million for a 49% stake • Delivered improved coke performance driven by Middletown facility • Improved coal productivity and reduced cash costs • Ended quarter with substantial financial flexibility – ~$200 million cash attributable to SXC at quarter-end after India investment, and $106 million of cash at SXCP |
![]() Q1 2013 Earnings Overview Q1 2013 EPS of $0.03 reflects Adjusted EBITDA down on coal mining segment performance, partially offset by improved cokemaking results Reaffirm 2013 consolidated Adjusted EBITDA and EPS guidance of $205 million - $230 million and $0.30 - $0.55 (1) For a definition and reconciliation of Adjusted EBITDA, please see appendix. 4 $0.24 $0.03 Q1 2012 Q1 2013 Earnings Per Share (diluted) $55.5 $52.3 Q1 2012 Q1 2013 Adjusted EBITDA (1) (in millions) • Challenging coal price environment • Accelerated depreciation expense at Indiana Harbor • ($0.10) EPS impact related to debt issuance costs and unfavorable tax items • Income attributable to SXCP public holders ($0.07) in 2013 |
![]() ![]() Q1 2013 Financial Results (1) Coke Adjusted EBITDA includes Domestic Coke and International segments. (2) For a definition and reconciliation of Adjusted EBITDA and Adjusted EBITDA per ton, please see appendix. Reflects impact of lower coal prices in coke and coal segments Coke business performed well, led by Middletown, which increased $8.8 million Coal weakness driven by $50/ton yr/yr decline in prices, partially offset by lower cash production costs ($ in millions) Q1'13 Q1'12 Q1'13 vs. Q1'12 Domestic Coke Sales Volumes 1,058 1,078 (20) Coal Sales Volumes 373 373 - Revenue $453.9 $481.3 ($27.4) Operating Income $27.0 $33.9 ($6.9) Net Income Attributable to Shareholders $2.1 $16.9 ($14.8) Earnings Per Share $0.03 $0.24 ($0.21) Coke Adjusted EBITDA (1) $62.7 $54.9 $7.8 Coal Adjusted EBITDA (2) ($4.6) $7.4 ($12.0) Corporate/Other ($5.8) ($6.8) $1.0 Adjusted EBITDA (2) $52.3 $55.5 ($3.2) 5 Revenues lower by 5.7% Adjusted EBITDA down 5.8% EPS decline to $0.03 reflects Accelerated depreciation at Indiana Harbor ($0.06) Write-off of unamortized debt issuance costs and debt-related fees ($0.05) Unfavorable tax items ($0.05) Income attributable to SXCP public holders in 2013 ($0.07) |
![]() Adjusted EBITDA (1) Bridge – Q1 ‘12 to Q1 ‘13 Weak coal mining segment results partially offset by improved coke operations driven by Middletown ($ in millions) (1) For a definition and reconciliation of Adjusted EBITDA, please see the appendix (2) Includes a $2.8 million charge related to coke inventory reduction and a $1.5 million lower cost or market adjustment on pad coal inventory at Indiana Harbor in 2012 • $4.8M better cost recovery • Favorable comparison to 1Q12’s ($4.0M) of start-up costs and yield performance •Net improvement of $1.2M 6 $55.5 $52.3 $8.8 $4.3 $1.0 ($3.1) ($2.2) ($12.0) Q1 2012 Adjusted EBITDA (1) Middletown Indiana Harbor (non- recurring)(2) Indiana Harbor Coke Business (excl. Middletown & Indiana Harbor) Coal Mining Corporate Costs Q1 2013 Adjusted EBITDA (1) |
![]() Diluted EPS Bridge – Q1 ‘12 to Q1 ‘13 EPS impacted by higher depreciation costs due to Indiana Harbor refurbishment and approximately ($0.10) of non-recurring items (1) For a definition and reconciliation of Adjusted EBITDA, please see the appendix Reflects ($0.05) impact of unfavorable tax items 7 $0.24 $0.03 $0.01 ($0.02) ($0.02) ($0.06) ($0.05) ($0.07) Q1 2012 EPS (Diluted) EBITDA Depreciation, Depletion & Amortization Indiana Harbor Accelerated Depreciation Financing Costs Taxes Net Income/(Loss) Attributable to NCI Q1 2013 EPS (Diluted) Attributable to SXC |
![]() SXC Liquidity Position Ended quarter with strong cash position and virtually undrawn revolver even after making ~$68 million VISA SunCoke JV investment 8 (1) Reflects timing of payment of a $24.5 million receivable due on the last day of quarter, but paid first day of next (2) Includes early payment on $11.8 million of accrued sales discounts (3) Excludes $6.5 million in offering expenses paid in 2012 and includes $0.7 million of fees related to the amendment of SXC credit facility ($ in millions) SXCP IPO transaction Includes: • Includes $16.2M for Indiana Harbor • Accts Receivable: ($27.0M) (1) • Inventories: $18.9M • Accts Payable: $19.0M • Accrued Liabilities: ($21.4M) (2) Q4 2012 Cash Balance Q1 2013 Net Income Depreciation, Depletion & Amortization Working Capital, Deferred Taxes & Other Capital Expenditures VISA SunCoke JV SXCP Equity & Debt Offerings (net of fees)(3) SXC Debt Paydown Other Cash Used In Financing Activities Q1 2013 Cash Balance |
![]() Domestic Coke Business Summary 9 Domestic Coke Production Domestic Coke Adjusted EBITDA (1) Per Ton (Tons in thousands) ($ in millions, except per ton amounts) Overall cokemaking business performed well, delivering Adjusted EBITDA per ton of $58 in first quarter 174 176 177 171 178 291 299 291 294 264 286 291 297 291 290 175 177 178 173 167 142 153 154 153 152 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Jewell Indiana Harbor Haverhill Granite City Middletown 1,051 1,068 1,095 1,097 1,082 $55 $63 $70 $62 $61 $ 51 $ 58 $ 62 $ 58 $ 58 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Domestic Coke Segment Adjusted EBITDA/ton /ton (2) /ton /ton (3) /ton /ton (1) For a definition of Adjusted EBITDA and Adjusted EBITDA/Ton and reconciliations, see appendix. (2) Includes a $2.8 million charge related to coke inventory reduction and a $1.5 million lower cost or market adjustment on pad coal inventory at Indiana Harbor and $4.0 million of non-recurring startup costs at Middletown. (3) Includes $4.2 million favorable adjustment at Indiana Harbor due to finalization of 2011 billing review. |
![]() ![]() Coal Mining Financial Summary Q1 2013 Adjusted EBITDA down $12 million from Q1 2012 Delivered significant improvement in per ton cash production costs – $129 in Q1 2013; $149 (3) in Q4 2012; $159 in Q1 2012 Coal action plan progress Expect Coal Mining segment to deliver FY 2013 Adjusted EBITDA of $0 – ($15) million; consistent with guidance Coal Mining Adjusted EBITDA (1) and Avg. Sales Price/Ton (2) ($ in millions, except per ton amounts) Coal Sales, Production and Purchases Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Coal Sales 373 365 392 371 373 Coal Production 375 401 349 351 349 Purchased Coal 19 4 10 9 18 Reject Rate (%) 68 66 67 66 66 10 • Rationalized mining plans, idled mines and reduced headcount • Upgraded equipment and training programs • Installed new cyclone system at prep plant • Driven by $50 decline in average sales price • Sales volume flat • Jewell underground costs down sequentially and yr/yr $171 $167 $165 $166 $121 $150 $137 $143 $144 $127 (3) $7 $9 $11 $6 ($5) $20 $25 $27 $16 ($12) Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 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) Avg. Sales Price is weighted avg. price for all sales, including to affiliates and Jewell Coke. (3) Excludes Black Lung liability charge of $0.8 million and accrued potential fines and penalties of $1.5 million. |
![]() SUNCOKE ENERGY PARTNERS, LP RESULTS |
![]() SXCP Q1 2013 Financial Results Sustained solid results at Middletown and Haverhill provide a strong platform for future growth n/a - Not applicable * - Proforma Jan 1-Mar 31, 2013 for offerings completed on January 24, 2013 12 Q1'13 Q1'12 Q1'13 vs Q1'12 ($ in millions except where noted) Actual Actual Change Coke Production (in '000s of tons) 442 428 14 Coke Sales Volumes (in '000s of tons) 448 424 24 Financial Results: Revenues 184.9 $ 176.7 $ 8.2 $ Operating Income 34.5 $ 20.3 $ 14.2 $ Net Income (1) 23.9 $ 12.4 $ 11.5 $ Net Income attributable to SXCP (1) 15.3 $ 12.4 $ 2.9 $ Profitability Measures: Proforma* Adjusted EBITDA attributable to SXCP (2) 26.5 $ n/a - Proforma* Adj. EBITDA per ton attributable to SXCP (2) 91.19 $ n/a - Distributable Cash Flow Proforma* Distributable Cash Flow (2) 22.0 $ n/a - Minimum Quarterly Cash Distribution 13.2 $ n/a - Distribution Coverage Ratio 1.66x n/a - (1) Reflects impact of local income taxes (2) For a definition and related reconciliations of Adjusted EBITDA, Adjusted EBITDA/Ton and Distributable Cash Flow, please see appendix |
![]() SXCP Liquidity Position Reserved for environmental remediation A solid cash balance and undrawn $100 million revolver provide SXCP the flexibility to seize potential new growth opportunities • Ongoing CapEx: ($1.2M) • Pre-funded environmental remediation: ($4.5M) Includes settlement of accrued sales discounts ($11.8M) SXCP IPO transaction 13 |
![]() SXCP Updated 2013 Outlook 14 Based on solid operating performance and outlook, we have increased our Adjusted EBITDA and cash distribution coverage expectations for 2013 Prospectus Revised 2013 Outlook ($ and units in millions, except per unit data) 2013 Forecast High Low Adjusted EBITDA attributable to SXCP (1) $88.3 $93.0 $88.3 Less: Cash interest ($150 million senior notes @ 7.375% plus $0.5 million revolver commitment fee) 11.6 11.6 11.6 Accrual for replacement capital expenditures 3.7 3.7 3.7 Ongoing capital expenditures (65% share of Haverhill and Middletown attributable to SXCP) 9.1 9.1 9.1 Public partnership expense 2.5 2.5 2.5 Estimated Distributable Cash Flow $61.4 $66.1 $61.4 Excess distributable cash flow available for distribution 8.5 13.2 8.5 Total estimated minimum annual distribution $52.9 $52.9 $52.9 Minimum annual distribution per unit $1.65 $1.65 $1.65 Total unit coverage ratio (2) 1.16x 1.25x 1.16x (1) Adjusted EBITDA equals SXCP’s 65% interest in Haverhill and Middletown’s Adjusted EBITDA (i.e., 65% net income attributable to the controlling and noncontrolling interests plus depreciation expense, interest expense, incremental public partnership expenses, and incremental corporate expenses allocated to the MLP). (2) Total unit coverage ratio calculated as cash available for distribution divided by total distributions at the minimum distribution rate of $52.9 million. |
![]() SXCP Distribution Growth Outlook 15 • Declared initial quarterly cash distribution of $0.3071 – Reflects proration of the $0.4125 minimum quarterly distribution rate for the January 24, 2013 closing of the IPO • Given confidence in current outlook, expect to increase quarterly cash distribution rate – Currently expect to increase quarterly cash distribution by ~2.5% for next quarter and anticipate an overall increase of ~7% for the Q4 2013 distribution to be paid in early 2014 |
![]() 2013 OUTLOOK & PRIORITIES |
![]() SXC: 2013 Guidance Summary Revised Guidance: 2013 Post SXCP IPO Adjusted EBITDA (1) Consolidated Attributable to SXC Shareholders $205 – $230 million $165 – $190 million EPS Attributable to SXC Shareholders (diluted) $0.30 – $0.55 Cash Flow from Operations ~$140 million (3) Capital Expenditures and Investments (2) ~ $200 million Effective Tax Rate 14% – 20% Cash Tax Rate 12% – 20% Domestic Coke Production 4.3+ million tons Coal Production ~ 1.4 million tons (1) For a reconciliation of 2013E Adjusted EBITDA, please see reconciliation on slide 27 (2) See appendix for details (3) Includes ~$38 million of sales discounts payable to customers of which ~$12million is pre-funded at SXCP with IPO proceeds 17 Prior range 7-14% Metric |
![]() 2013 Priorities Operational Excellence Sustain momentum at coke facilities Execute Indiana Harbor Plan Execute refurbishment Resolve NOV Renew coke contract with return on refurbishment capital Implement environmental project at Haverhill and Granite City Execute coal mining action plan to decrease cash cost Maintain top quartile safety performance Grow The Coke Business Domestic Obtain permit for next potential U.S. facility Identify and pursue strategic acquisition opportunities in the U.S. and Canada Evaluate adjacent business lines to extend growth opportunities International Closed VISA SunCoke joint venture transaction Identify potential follow-on opportunities in India Strategically Optimize Assets SXCP Achieve smooth launch, governance and operation of SXCP Coal Reposition mining operations for near-term weakness and long-term strategic flexibility Efficient Capital Allocation Put SXC and SXCP balance sheets to work 18 |
![]() North America M&A Growth Strategy 19 Cokemaking Coal Handling/ Processing Iron Ore Processing FOCUS Acquisition of existing cokemaking facilities with long- term off take agreements FOCUS Selective acquisition of met coal related handling & processing assets, with long-term off take agreements and limited commodity exposure FOCUS Investment in ferrous side of steel value chain (concentrating, pelletizing, transport/handling) First priority for core business Opportunistic acquisitions of adjacent assets Evaluation for future value chain expansion In active discussion with owners of targeted assets Degree of integration in steel operations and environmental issues will impact complexity and timing of transaction Customer concentration likely to remain high Initiated discussions with potential parties Current opportunities available and less complex assets implies potentially shorter deal cycle Potential to add value to core business and diversify customer base Researching qualifying income status and market opportunity Potential to deploy tolling/ pass through model Potential to diversify customer base and enhance value-add to steel industry |
![]() QUESTIONS |
![]() www.suncoke.com Investor Relations: 630-824-1907 |
![]() APPENDIX |
![]() • Adjusted EBITDA represents earnings before interest, taxes, depreciation, depletion and amortization (“EBITDA”) adjusted for sales discounts and the interest, taxes, depreciation, depletion and amortization attributable to equity earnings in our unconsolidated affiliates. EBITDA reflects sales discounts included as a reduction in sales and other operating revenue. The sales discounts represent the sharing with customers of a portion of nonconventional fuel tax credits, which reduce our income tax expense. However, we believe 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 that is not included in EBITDA. Accordingly, in computing Adjusted EBITDA, we have added back these sales discounts. Our Adjusted EBITDA also includes EBITDA attributable to our unconsolidated affiliates. EBITDA and Adjusted EBITDA do not represent and should not be considered alternatives to net income or operating income under GAAP and may not be comparable to other similarly titled measures in other businesses. Adjusted EBITDA does not represent and should not be considered as an alternative to net income as determined by GAAP, and calculations thereof may not be comparable to those reported by other companies. We believe Adjusted EBITDA is an important measure of operating performance and provides useful information to investors because it highlights trends in our business that may not otherwise be apparent when relying solely on GAAP measures and because it eliminates items that have less bearing on our operating performance. Adjusted EBITDA is a measure of operating performance that is not defined by GAAP and should not be considered a substitute for net (loss) income as determined in accordance with GAAP. • Adjusted EBITDA attributable to SXC/SXCP equals Adjusted EBITDA less Adjusted EBITDA attributable to noncontrolling interests. • Adjusted EBITDA/Ton represents Adjusted EBITDA divided by tons sold. When applicable to Adjusted EBITDA attributable to SXC or SXCP, tons sold are prorated according to the respective ownership interest of SXC or SXCP as applicable. Definitions 23 |
![]() • Distributable Cash Flow equals Adjusted EBITDA less net cash paid for interest expense, on-going capital expenditures, accruals for replacement capital expenditures, and cash distributions to noncontrolling interests. Distributable Cash Flow is a non-GAAP supplemental financial measure that management and external users of the Partnership's financial statements, such as industry analysts, investors, lenders, and rating agencies, use to assess: • the Partnership's operating performance as compared to other publicly traded partnerships, without regard to historical cost basis; • the ability of the Partnership's assets to generate sufficient cash flow to make distributions to the Partnership's unitholders; • the Partnership's ability to incur and service debt and fund capital expenditures; and • the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities. The Partnership believes that Distributable Cash Flow provides useful information to investors in assessing the Partnership's financial condition and results of operations. Distributable Cash Flow should not be considered an alternative to net income, operating income, cash flows from operating activities, or any other measure of financial performance or liquidity presented in accordance with generally accepted accounting principles (GAAP). Distributable Cash Flow has important limitations as an analytical tool because it excludes some, but not all, items that affect net income and net cash provided by operating activities and used in investing activities. Additionally, because Distributable Cash Flow may be defined differently by other companies in the industry, the Partnership's definition of Distributable Cash Flow may not be comparable to similarly titled measures of other companies, thereby diminishing their utility. Definitions 24 |
![]() Reconciliations 25 $ in millions Q1 2013 FY 2012 Q4 2012 Q3 2012 Q2 2012 Q1 2012 FY 2011 Q4 2011 Q3 2011 Q2 2011 Q1 2011 Net Income 6.4 102.5 29.0 32.9 24.0 16.6 58.9 7.5 21.6 24.1 5.7 Subtract: Depreciation, depletion and amortization (23.9) (80.8) (23.3) (18.9) (20.2) (18.4) (58.4) (16.0) (14.7) (14.7) (13.0) Subtract: Interest expense, net (15.8) (47.8) (11.8) (12.2) (11.8) (12.0) (1.4) (7.1) (3.3) 4.5 4.5 Subtract: Income Tax (4.8) (23.4) (3.5) (7.6) (7.0) (5.3) (7.2) 2.9 (5.1) (1.9) (3.1) EBITDA 50.9 254.5 67.6 71.6 63.0 52.3 125.9 27.7 44.7 36.2 17.3 Add: Sales Discount 1.4 11.2 2.1 2.1 3.8 3.2 12.9 3.2 3.5 3.1 3.1 Add: Adjustment to unconsolidated affiliate earnings - - - - - - - - - - - Adjusted EBITDA 52.3 265.7 69.7 73.7 66.8 55.5 138.8 30.9 48.2 39.3 20.4 Adjusted EBITDA attributable to noncontrolling interests (8.4) (3.0) (1.5) (1.1) (0.9) 0.5 4.0 0.8 (2.7) (0.9) 6.8 Adjusted EBITDA attributable to SXC 43.9 262.7 68.2 72.6 65.9 56.0 142.8 31.7 45.5 38.4 27.2 Reconciliations from Net Income to Adjusted EBITDA |
![]() Reconciliations 26 $ in millions, except per ton data Domestic Coke International Coke Jewell Coal Corporate Combined Q1 2013 61.1 1.6 (4.6) (5.8) 52.3 Adjusted EBITDA 61.1 1.6 (4.6) (5.8) 52.3 Sales Volume (thousands of tons) 1,058 216 373 Adjusted EBITDA per Ton 57.8 7.41 (12.3) FY 2012 Adjusted EBITDA 249.4 11.9 33.4 (29.0) 265.7 Sales Volume (thousands of tons) 4,345 1,209 1,500 Adjusted EBITDA per Ton 57.4 9.8 22.3 Q4 2012 Adjusted EBITDA 62.4 10.2 6.0 (8.9) 69.7 Sales Volume (thousands of tons) 1,077 239 370 Adjusted EBITDA per Ton 57.9 42.7 16.2 Q3 2012 69.8 0.9 10.7 (7.7) 73.7 Adjusted EBITDA 69.8 0.9 10.7 (7.7) 73.7 Sales Volume (thousands of tons) 1,116 310 392 Adjusted EBITDA per Ton 62.5 2.9 27.3 Q2 2012 62.4 0.7 9.3 (5.6) 66.8 Adjusted EBITDA 62.4 0.7 9.3 (5.6) 66.8 Sales Volume (thousands of tons) 1,074 302 365 Adjusted EBITDA per Ton 58.1 2.3 25.5 Q1 2012 Adjusted EBITDA 54.8 0.1 7.4 (6.8) 55.5 Sales Volume (thousands of tons) 1,078 358 373 Adjusted EBITDA per Ton 50.8 0.3 19.8 Reconciliations of Segment Adjusted EBITDA and Adjusted EBITDA Per Ton |
![]() 2013E Net Income to Adjusted EBITDA Reconciliation - SXC SXC – Expected 2013E EBITDA Reconciliation 27 (1) Represents SXC share of India JV interest, taxes and depreciation expense (2) Represents Adjusted EBITDA attributable to SXCP public unitholders and to DTE’s interest in Indiana Harbor (in millions) 2013E Low 2013E High Net Income $40 $57 Depreciation, Depletion and Amortization 97 95 Total financing costs, net 55 55 Income tax expense 7 14 EBITDA $199 $221 Sales discounts 6 6 Adjustment to unconsolidated affiliate earnings (1) – 3 Adjusted EBITDA $205 $230 EBITDA attributable to noncontrolling interests (2) (40) (40) Adjusted EBITDA attributable to SXC $165 $190 |
![]() 28 2013E Net Income to Adjusted EBITDA Reconciliation - SXCP SXCP – Expected 2013E EBITDA Reconciliation (1) Represents Adjusted EBITDA attributable to SXC’s 35% interest in Haverhill and Middletown facilities (in millions) 2013E Low 2013E High Net Income 79.2 $ 89.9 $ Depreciation, Depletion and Amortization 32.0 31.0 Total financing costs, net 17.0 15.0 Income tax expense 4.7 4.7 EBITDA 132.9 $ 140.6 $ Sales discounts (0.6) (0.6) Adjusted EBITDA 132.3 $ 140.0 $ EBITDA attributable to noncontrolling interest (1) (44.0) (47.0) Adjusted EBITDA attributable to SXCP 88.3 $ 93.0 $ |
![]() 2013E Capital Expenditures and Investments 29 ($ in millions) SXC SXCP Consolidated On-Going Approx. $49 $9 $58 Environmental Remediation Approx. - $15 $15 Expansion Approx. 60 - 60 Total CapEx Approx. $109 $24 $133 Investments Approx. $67 - $67 Total CapEx & Investments Approx. $176 $24 $200 For Year Ended December 31, 2013 • Expansion includes approx. $60m for Indiana Harbor Refurbishment • SXCP expenditures prefunded from IPO proceeds • To fund investment in India JV (Visa SunCoke) • SXC includes approximately $25m coke and $24m coal • SXCP includes 65% of $14m expected at Haverhill and Middletown |
![]() SXCP – Adjusted EBITDA and Distributable Cash Flow Reconciliations 30 Proforma for period 1/1/2013 - Proforma ($ in Millions) Q1'13 1/23/2013 Q1'13 Net cash (used in) provided by operating activities 5.7 $ (0.2) $ 5.5 $ Depreciation (7.6) (7.6) Changes in working capital and other 25.8 25.8 Net income 23.9 $ 23.7 $ Add: Depreciation 7.6 7.6 Financing expense, net 6.7 6.7 Income tax expense 3.9 3.9 Sales discounts (0.6) (0.6) Adjusted EBITDA 41.5 $ 41.3 $ Adjusted EBITDA attributable to NCI (11.4) (3.4) (14.8) Adjusted EBITDA attributable to Predecessor/SXCP 30.1 $ 26.5 $ Less: On-going capex (0.7) (0.7) Replacement capex accrual (0.9) (0.9) Cash interest accrual (2.9) (2.9) Distributable cash flow 25.6 $ 22.0 $ Minimum Quarterly Cash Distribution 13.2 13.2 Distribution Coverage Ratio 1.94x 1.66x Adjusted EBITDA per ton reconciliation Adjusted EBITDA attributable to SXCP 26.5 $ Sales tons attributable to SXCP 291 Adjusted EBITDA/ton 91.1 $ (1) (2) (3) (1) SG&A expense for the time period prior to the January 24, 2013 IPO date (January 1 -23, 2013) (2) Represents Adjusted EBITDA attributable to SXC’s 35% interest in Haverhill and Middletown facilities prior to the IPO date (3) Includes 65% of the total sales tons of Haverhill and Middletown |