-
Net income attributable to SXCP was $36.3 million in fourth quarter
2015, up $14.9 million versus the same prior year period due to the
Convent Marine Terminal ("CMT") acquisition and increased ownership
interest in our Granite City cokemaking facility
-
Fourth quarter 2015 Adjusted EBITDA attributable to SXCP increased
$17.2 million to $56.1 million, driving distributable cash flow of
$32.2 million with a cash coverage ratio of 1.15x
-
Full-year 2015 Adjusted EBITDA attributable to SXCP increased $61.0
million to $191.9 million, driving distributable cash flow of $117.1
million. These full-year results were above revised guidance and
within our original guidance when excluding impact of the CMT and
Granite City 23% transactions
-
Declared fourth quarter 2015 cash distribution per unit of $0.5940
LISLE, Ill.--(BUSINESS WIRE)--
SunCoke Energy Partners, L.P. (NYSE: SXCP) today reported fourth quarter
2015 net income attributable to SXCP of $36.3 million, an increase of
$14.9 million from fourth quarter 2014. Full-year 2015 net income
attributable to SXCP was $85.4 million, an increase of $29.4 million
from full-year 2014. Both current year periods benefited from the
Convent Marine Terminal acquisition and higher ownership interest in our
cokemaking facilities.
"Despite the prolonged macro and industry-specific challenges impacting
the steel and coal markets throughout 2015, we continued to generate
consistent cash flows underpinned by a competitive coal logistics and
cokemaking asset base and backed by our long-term, take-or-pay contract
business model," said Fritz Henderson, President, Chairman and Chief
Executive Officer of SunCoke Energy Partners, L.P. "In the past year, we
expanded our operating portfolio with the Convent Marine Terminal
acquisition and the dropdown transactions for 98 percent interest in our
Granite City cokemaking facility, and successfully delivered against our
full-year Adjusted EBITDA and Distributable Cash Flow guidance."
At its December 2015 investor day, the Company provided a full-year 2016
Adjusted EBITDA attributable to SXCP guidance range of $207 million to
$217 million generating a distributable cash flow range of $158 million
to $172 million. We also announced our intent to implement a revised
capital allocation strategy that shifts excess cash flow towards
de-levering the balance sheet.
Henderson continued, "We began executing against our revised capital
allocation strategy by repurchasing approximately $48 million face value
of outstanding notes in the fourth quarter. As we enter 2016, we remain
focused on achieving our 2016 guidance while maintaining a robust
liquidity position and further reducing leverage."
2015 CONSOLIDATED RESULTS(1)
|
|
Three Months Ended December 31,
|
|
Years Ended December 31,
|
|
(Dollars in millions)
|
|
2015
|
|
2014
|
|
Increase/ (Decrease)
|
|
2015
|
|
2014
|
|
Increase/ (Decrease)
|
Revenues(2)
|
|
$
|
217.4
|
|
|
$
|
223.9
|
|
|
$
|
(6.5
|
)
|
|
$
|
838.5
|
|
|
$
|
873.0
|
|
|
$
|
(34.5
|
)
|
Operating Income(2)
|
|
$
|
40.5
|
|
|
$
|
32.4
|
|
|
$
|
8.1
|
|
|
$
|
137.2
|
|
|
$
|
135.1
|
|
|
$
|
2.1
|
|
Adjusted EBITDA(2)(3)
|
|
$
|
56.9
|
|
|
$
|
46.4
|
|
|
$
|
10.5
|
|
|
$
|
201.7
|
|
|
$
|
188.9
|
|
|
$
|
12.8
|
|
Net Income attributable to SXCP(4)
|
|
$
|
36.3
|
|
|
$
|
21.4
|
|
|
$
|
14.9
|
|
|
$
|
85.4
|
|
|
$
|
56.0
|
|
|
$
|
29.4
|
|
(1)
|
|
The current and prior year periods are not comparable due to the
impact of Convent Marine Terminal, which was acquired on August 12,
2015.
|
(2)
|
|
Includes 100 percent of Granite City in 2015 and 2014.
|
(3)
|
|
See definition of Adjusted EBITDA and reconciliation elsewhere in
this release.
|
(4)
|
|
Net income attributable to SXCP includes the impacts of SXCP’s 75
percent ownership interest in Granite City from January 13, 2015
through August 12, 2015 and SXCP’s 98 percent ownership interest in
Granite City from August 13, 2015 through December 31, 2015,
respectively.
|
|
|
|
The fourth quarter and full-year revenues declined $6.5 million and
$34.5 million, respectively, to $217.4 million and $838.5 million,
respectively. While we continue to achieve contract maximums, volumes in
excess of maximums as well as spot sales have decreased in 2015 as
compared to the prior year periods. Additionally, the declines in both
the fourth quarter and full-year 2015 were due to the pass-through of
lower coal costs and the impact of the reorganization of the Haverhill
Chemicals LLC facility. These decreases were partly offset by the
contribution of Convent Marine Terminal, which was acquired in August
2015.
Operating income and Adjusted EBITDA increased to $40.5 million and
$56.9 million, respectively, in fourth quarter 2015. Full-year 2015
operating income and Adjusted EBITDA were up $2.1 million and $12.8
million to $137.2 million and $201.7 million, respectively. The fourth
quarter and full-year 2015 increases were primarily due to contributions
from CMT, partly offset by lower sales volumes and the impact of the
reorganization of the Haverhill Chemicals LLC facility.
The fourth quarter and full-year net income attributable to SXCP
increased $14.9 million and $29.4 million, respectively, to $36.3
million and $85.4 million, respectively, due to the reasons discussed
above. Other factors that partially contributed to the increase in net
income attributable to SXCP include the acquisition of an ownership
interest in Granite City in 2015, as well as our increased ownership in
the Haverhill and Middletown cokemaking facilities in May 2014.
FOURTH QUARTER SEGMENT INFORMATION
Domestic Coke
Domestic Coke segment consists of our 98 percent interest in the
Haverhill, Middletown and Granite City cokemaking facilities, located in
Franklin Furnace and Middletown, Ohio; and Granite City, Illinois,
respectively.
|
|
Three Months Ended December 31,
|
|
(Dollars in millions)
|
|
2015
|
|
2014
|
|
Increase/ (Decrease)
|
Revenues
|
|
$
|
182.7
|
|
|
$
|
212.0
|
|
|
$
|
(29.3
|
)
|
Adjusted EBITDA(1)
|
|
$
|
39.8
|
|
|
$
|
44.5
|
|
|
$
|
(4.7
|
)
|
Sales Volume (in thousands of tons)
|
|
613
|
|
|
648
|
|
|
(35
|
)
|
Adjusted EBITDA per ton(2)
|
|
$
|
64.88
|
|
|
$
|
68.67
|
|
|
$
|
(3.79
|
)
|
(1)
|
|
See definition of Adjusted EBITDA and reconciliation to GAAP
elsewhere in this release.
|
(2)
|
|
Reflects Domestic Coke Adjusted EBITDA divided by Domestic Coke
sales volumes.
|
|
|
|
Adjusted EBITDA, which is reported on a 100 percent ownership basis, was
$39.8 million, a decrease of $4.7 million from the same prior year
period, caused by lower sales volume as well as the impact of the
reorganization of the Haverhill Chemicals LLC facility, with whom we had
a steam supply agreement.
Coal Logistics
Coal Logistics consists of the coal handling and blending services
operated by SXCP at CMT located on the Mississippi river in Louisiana,
Lake Terminal in East Chicago, IN and Kanawha River Terminals, LLC,
which has terminals along the Ohio, Big Sandy and Kanawha rivers in West
Virginia and Kentucky. The current and prior year periods are not
comparable due to the impact of CMT, which was acquired on August 12,
2015.
|
|
Three Months Ended December 31,
|
|
(Dollars in millions)
|
|
2015
|
|
2014
|
|
Increase/ (Decrease)
|
Revenues
|
|
$
|
34.7
|
|
|
$
|
11.9
|
|
|
$
|
22.8
|
Intersegment sales
|
|
$
|
1.5
|
|
|
$
|
1.4
|
|
|
$
|
0.1
|
Adjusted EBITDA(1)
|
|
$
|
20.4
|
|
|
$
|
3.4
|
|
|
$
|
17.0
|
Tons handled (thousands of tons)
|
|
5,555
|
|
|
4,301
|
|
|
1,254
|
Adjusted EBITDA per ton(2)
|
|
$
|
3.67
|
|
|
$
|
0.79
|
|
|
$
|
2.88
|
(1)
|
|
See definition of Adjusted EBITDA and reconciliation to GAAP
elsewhere in this release.
|
(2)
|
|
Reflects Coal Logistics Adjusted EBITDA divided by Coal Logistics
tons handled.
|
|
|
|
-
Revenues were up $22.8 million, driven by a $22.9 million contribution
from CMT.
-
Adjusted EBITDA was up $17.0 million, driven by the $15.6 million
contribution of CMT. During the period, Convent handled 1,395 thousand
tons of coal.
Corporate and Other
Corporate and other costs of $3.3 million in fourth quarter 2015
increased $1.8 million over the same prior year period due to an
allocation of higher costs from SunCoke.
CASH DISTRIBUTIONS
On January 25, 2016, the Board of Directors of SXCP's general partner
declared a quarterly cash distribution of $0.5940 per unit, an increase
of 10 percent versus the same prior year period. This distribution will
be paid on March 1, 2016, to unitholders of record on February 15, 2016.
RELATED COMMUNICATIONS
We will host an investor conference call today at 10:00 a.m. Eastern
Time (9:00 a.m. Central Time). Investors may participate on this call by
dialing 1-877-201-0168 in the U.S. or 1-647-788-4901 if outside the
U.S., confirmation code 22723340. This conference call will be webcast
live and archived for replay in the Investor Relations section of www.suncoke.com.
UPCOMING EVENTS
We plan to participate in the following investor conferences:
-
Barclays Select Series 2016: MLP Corporate Access Day on March 1, 2016
in New York, NY
-
Morgan Stanley's MLP/Diversified Natural Gas Conference on March 2,
2016 in New York, NY
NOTICE
This statement is intended to serve as qualified notice to nominees as
provided for under Treasury Regulation Section 1.1446-4(b)(4) and (d)
given by a publicly traded partnership for the nominee to be treated as
a withholding agent. Please note that SXCP's quarterly cash
distributions are treated as partnership distributions for federal
income tax purposes and that 100 percent of these distributions to
foreign investors are attributable to income that is effectively
connected with a United States trade or business. Accordingly, all of
SXCP's distributions to a nominee on behalf of foreign investors are
subject to federal income tax withholding at the highest marginal tax
rate for individuals or corporations, as applicable. Nominees, and not
SXCP, are treated as the withholding agents responsible for withholding
on the distributions received by them on behalf of foreign investors.
ABOUT SUNCOKE ENERGY PARTNERS, L.P.
SunCoke Energy Partners, L.P. (NYSE: SXCP) is a publicly traded master
limited partnership that manufactures high-quality coke used in the
blast furnace production of steel and provides export and domestic coal
handling services to the coke, coal, steel and power industries. In our
cokemaking business, we utilize an innovative heat-recovery technology
that captures excess heat for steam or electrical power generation and
have long-term, take-or-pay coke contracts that pass through commodity
and certain operating costs. Our coal handling terminals have the
collective capacity to blend and transload more than 45 million tons of
coal each year and are strategically located to reach Gulf Coast, East
Coast,Great Lakes and international ports. SXCP’s General Partner is a
wholly owned subsidiary of SunCoke Energy, Inc. (NYSE: SXC), which has
more than 50 years of cokemaking experience serving the integrated steel
industry. To learn more about SunCoke Energy Partners, L.P., visit our
website at www.suncoke.com.
DEFINITIONS
-
Adjusted EBITDA represents
earnings before interest, taxes, depreciation and amortization
adjusted for sales discounts, and Coal Logistics deferred revenue.
Prior to the expiration of our nonconventional fuel tax credits in
2013, Adjusted EBITDA included an add-back of sales discounts related
to the sharing of these credits with our customers. Any adjustments to
these amounts subsequent to 2013 have been included in Adjusted
EBITDA. Coal Logistics deferred revenue adjusts for differences
between the timing of recognition of take-or-pay shortfalls into
revenue for GAAP purposes versus the timing of payments from our
customers. This adjustment aligns Adjusted EBITDA more closely with
cash flow. Adjusted EBITDA does not represent and should not be
considered an alternative to net income or operating income under GAAP
and may not be comparable to other similarly titled measures in other
businesses. Management believes Adjusted EBITDA is an important
measure of the operating performance and liquidity of the
Partnership’s net assets and its ability to incur and service debt,
fund capital expenditures and make distributions. Adjusted EBITDA
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 and liquidity. EBITDA and
Adjusted EBITDA are not measures calculated in accordance with GAAP,
and they should not be considered an alternative to net income,
operating cash flow or any other measure of financial performance
presented in accordance with GAAP.
-
Adjusted EBITDA attributable to SXCP
equals Adjusted EBITDA less Adjusted EBITDA attributable to
noncontrolling interests.
-
Distributable Cash Flow equals
Adjusted EBITDA less net cash paid for interest expense, ongoing
capital expenditures, accruals for replacement capital expenditures,
and cash distributions to noncontrolling interests; plus amounts
received under the Omnibus Agreement and acquisition expenses deemed
to be Expansion Capital under our Partnership Agreement. Distributable
Cash Flow is a non-GAAP supplemental financial measure that management
and external users of SXCP's financial statements, such as industry
analysts, investors, lenders and rating agencies use to assess:
-
SXCP's operating performance as compared to other publicly traded
partnerships, without regard to historical cost basis;
-
the ability of SXCP's assets to generate sufficient cash flow to
make distributions to SXCP's unitholders;
-
SXCP'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.
We believe that Distributable Cash Flow provides useful information to
investors in assessing SXCP'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, our
definition of Distributable Cash Flow may not be comparable to similarly
titled measures of other companies, thereby diminishing its utility.
-
Ongoing capital expenditures (“capex”)
are capital expenditures made to maintain the existing operating
capacity of our assets and/or to extend their useful lives. Ongoing
capex also includes new equipment that improves the efficiency,
reliability or effectiveness of existing assets. Ongoing capex does
not include normal repairs and maintenance, which are expensed as
incurred, or significant capital expenditures. For purposes of
calculating distributable cash flow, the portion of ongoing capex
attributable to SXCP is used.
-
Replacement capital expenditures (“capex”)
represents an annual accrual necessary to fund SXCP’s share of the
estimated costs to replace or rebuild our facilities at the end of
their working lives. This accrual is estimated based on the average
quarterly anticipated replacement capital that we expect to incur over
the long term to replace our major capital assets at the end of their
working lives. The replacement capex accrual estimate will be subject
to review and prospective change by SXCP’s general partner at least
annually and whenever an event occurs that causes a material
adjustment of replacement capex, provided such change is approved by
our conflicts committee.
FORWARD-LOOKING STATEMENTS
Some of the statements included in this press release constitute
“forward-looking statements.” Forward-looking statements include all
statements that are not historical facts and may be identified by the
use of such words as “believe,” “expect,” “plan,” “project,” “intend,”
“anticipate,” “estimate,” “predict,” “potential,” “continue,” “may,”
“will,” “should” or the negative of these terms or similar expressions.
Forward-looking statements are inherently uncertain and involve
significant known and unknown risks and uncertainties (many of which are
beyond the control of SXCP) that could cause actual results to differ
materially.
Such risks and uncertainties include, but are not limited to domestic
and international economic, political, business, operational,
competitive, regulatory and/or market factors affecting SXCP, as well as
uncertainties related to: pending or future litigation, legislation or
regulatory actions; liability for remedial actions or assessments under
existing or future environmental regulations; gains and losses related
to acquisition, disposition or impairment of assets; recapitalizations;
access to, and costs of, capital; the effects of changes in accounting
rules applicable to SXCP; and changes in tax, environmental and other
laws and regulations applicable to SXCP's businesses.
Forward-looking statements are not guarantees of future performance, but
are based upon the current knowledge, beliefs and expectations of SXCP
management, and upon assumptions by SXCP concerning future conditions,
any or all of which ultimately may prove to be inaccurate. The reader
should not place undue reliance on these forward-looking statements,
which speak only as of the date of this press release. SXCP does not
intend, and expressly disclaims any obligation, to update or alter its
forward-looking statements (or associated cautionary language), whether
as a result of new information, future events or otherwise after the
date of this press release except as required by applicable law.
SXCP 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 made by SXCP. For information concerning these factors, see
SXCP's Securities and Exchange Commission filings such as its annual and
quarterly reports and current reports on Form 8-K, copies of which are
available free of charge on SXCP's website at www.suncoke.com.
All forward-looking statements included in this press release are
expressly qualified in their entirety by such cautionary statements.
Unpredictable or unknown factors not discussed in this release also
could have material adverse effects on forward-looking statements.
|
|
|
|
|
SunCoke Energy Partners, L.P.
|
Combined and Consolidated Statements of Income
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Years Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
(Dollars and units in millions, except per unit amounts)
|
Revenues
|
|
|
|
|
|
|
|
|
Sales and other operating revenue
|
|
$
|
217.4
|
|
|
$
|
223.9
|
|
|
$
|
838.5
|
|
|
$
|
873.0
|
Costs and operating expenses
|
|
|
|
|
|
|
|
|
Cost of products sold and operating expenses
|
|
146.9
|
|
|
171.0
|
|
|
599.6
|
|
|
656.3
|
Selling, general and administrative expenses
|
|
9.6
|
|
|
6.5
|
|
|
34.3
|
|
|
27.3
|
Depreciation and amortization expense
|
|
20.4
|
|
|
14.0
|
|
|
67.4
|
|
|
54.3
|
Total costs and operating expenses
|
|
176.9
|
|
|
191.5
|
|
|
701.3
|
|
|
737.9
|
Operating income
|
|
40.5
|
|
|
32.4
|
|
|
137.2
|
|
|
135.1
|
Interest expense, net
|
|
3.7
|
|
|
7.0
|
|
|
47.5
|
|
|
37.1
|
Income before income tax expense
|
|
36.8
|
|
|
25.4
|
|
|
89.7
|
|
|
98.0
|
Income tax (benefit) expense
|
|
(0.1
|
)
|
|
1.5
|
|
|
(2.5
|
)
|
|
10.5
|
Net income
|
|
$
|
36.9
|
|
|
$
|
23.9
|
|
|
$
|
92.2
|
|
|
$
|
87.5
|
Less: Net income attributable to noncontrolling interests
|
|
0.6
|
|
|
0.6
|
|
|
6.2
|
|
|
15.7
|
Net income attributable to SunCoke Energy Partners, L.P./Previous
Owner
|
|
36.3
|
|
|
23.3
|
|
|
86.0
|
|
|
71.8
|
Less: Net income attributable to Previous Owner(1)
|
|
—
|
|
|
1.9
|
|
|
0.6
|
|
|
15.8
|
Net income attributable to SunCoke Energy Partners, L.P.
|
|
$
|
36.3
|
|
|
$
|
21.4
|
|
|
$
|
85.4
|
|
|
$
|
56.0
|
|
|
|
|
|
|
|
|
|
General partner's interest in net income
|
|
$
|
3.5
|
|
|
$
|
2.9
|
|
|
$
|
8.6
|
|
|
$
|
18.2
|
Limited partners' interest in net income
|
|
$
|
32.8
|
|
|
$
|
20.4
|
|
|
$
|
77.4
|
|
|
$
|
53.6
|
Net income per common unit (basic and diluted)
|
|
$
|
0.71
|
|
|
$
|
0.55
|
|
|
$
|
1.92
|
|
|
$
|
1.58
|
Net income per subordinated unit (basic and diluted)
|
|
$
|
0.71
|
|
|
$
|
0.55
|
|
|
$
|
1.71
|
|
|
$
|
1.43
|
Weighted average common units outstanding (basic and diluted)
|
|
30.6
|
|
|
21.7
|
|
|
26.2
|
|
|
19.7
|
Weighted average subordinated units outstanding (basic and diluted)
|
|
15.7
|
|
|
15.7
|
|
|
15.7
|
|
|
15.7
|
(1) Reflects net income generated by our Granite City facility prior to
the Granite City Dropdown on January 13, 2015.
|
|
|
SunCoke Energy Partners, L.P.
|
Consolidated Balance Sheets
|
|
|
|
|
|
December 31,
|
|
|
2015
|
|
2014
|
|
|
(Unaudited)
|
|
|
|
|
(Dollars in millions)
|
Assets
|
|
|
Cash and cash equivalents
|
|
$
|
48.6
|
|
|
$
|
33.3
|
Receivables
|
|
40.0
|
|
|
36.3
|
Receivables from affiliates, net
|
|
1.4
|
|
|
3.1
|
Inventories
|
|
77.1
|
|
|
90.4
|
Other current assets
|
|
2.0
|
|
|
0.9
|
Total current assets
|
|
169.1
|
|
|
164.0
|
Restricted cash
|
|
17.7
|
|
|
—
|
Properties, plants and equipment, net
|
|
1,326.5
|
|
|
1,213.4
|
Goodwill
|
|
67.7
|
|
|
8.2
|
Other intangible assets
|
|
187.4
|
|
|
6.9
|
Deferred income taxes
|
|
—
|
|
|
22.2
|
Deferred charges and other assets
|
|
0.5
|
|
|
2.3
|
Total assets
|
|
$
|
1,768.9
|
|
|
$
|
1,417.0
|
|
|
|
|
|
Liabilities and Equity
|
|
|
|
|
Accounts payable
|
|
$
|
45.3
|
|
|
$
|
61.1
|
Accrued liabilities
|
|
12.9
|
|
|
11.2
|
Current portion of long-term debt
|
|
1.1
|
|
|
—
|
Interest payable
|
|
17.5
|
|
|
12.3
|
Total current liabilities
|
|
76.8
|
|
|
84.6
|
Long-term debt
|
|
894.5
|
|
|
399.0
|
Deferred income taxes
|
|
38.0
|
|
|
—
|
Asset retirement obligation
|
|
5.6
|
|
|
5.3
|
Other deferred credits and liabilities
|
|
9.0
|
|
|
1.4
|
Total liabilities
|
|
1,023.9
|
|
|
490.3
|
|
|
|
|
|
Equity
|
|
|
|
|
Held by public:
|
|
|
|
|
Common units 20,787,744 and 16,789,164 units issued at December 31,
2015 and 2014, respectively)
|
|
300.0
|
|
|
239.1
|
Held by parent:
|
|
|
|
|
Common units 9,705,999 and 4,904,752 units issued at December 31,
2015 and 2014, respectively)
|
|
211.0
|
|
|
113.8
|
Subordinated units (15,709,697 units issued at December 31, 2015 and
2014, respectively)
|
|
203.3
|
|
|
203.7
|
General partner interest
|
|
15.1
|
|
|
9.2
|
Parent net equity
|
|
—
|
|
|
349.8
|
Partners’ capital attributable to SunCoke Energy Partners, L.P. /
Previous Owner's net equity
|
|
729.4
|
|
|
915.6
|
Noncontrolling interest
|
|
15.6
|
|
|
11.1
|
Total equity
|
|
745.0
|
|
|
926.7
|
Total liabilities and equity
|
|
$
|
1,768.9
|
|
|
$
|
1,417.0
|
|
|
|
SunCoke Energy Partners, L.P.
|
Combined and Consolidated Statements of Cash Flows
|
|
|
|
|
|
Years Ended December 31,
|
|
|
2015
|
|
2014
|
|
|
(Dollars in millions)
|
Cash Flows from Operating Activities:
|
|
|
|
|
Net income
|
|
$
|
92.2
|
|
|
$
|
87.5
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
Depreciation and amortization expense
|
|
67.4
|
|
|
54.3
|
|
Deferred income tax (benefit) expense
|
|
(2.5
|
)
|
|
10.5
|
|
(Gain) loss on extinguishment of debt
|
|
(0.7
|
)
|
|
15.4
|
|
Changes in working capital pertaining to operating activities (net
of acquisitions):
|
|
|
|
|
Receivables
|
|
(8.6
|
)
|
|
(10.1
|
)
|
Receivables from affiliate, net
|
|
3.3
|
|
|
3.3
|
|
Inventories
|
|
15.0
|
|
|
(9.4
|
)
|
Accounts payable
|
|
(12.1
|
)
|
|
(18.4
|
)
|
Accrued liabilities
|
|
(5.4
|
)
|
|
(13.3
|
)
|
Interest payable
|
|
0.5
|
|
|
7.7
|
|
Other
|
|
0.3
|
|
|
(1.0
|
)
|
Net cash provided by operating activities
|
|
149.4
|
|
|
126.5
|
|
Cash Flows from Investing Activities:
|
|
|
|
|
Capital expenditures
|
|
(42.3
|
)
|
|
(67.6
|
)
|
Acquisitions of business, net of cash received
|
|
(191.7
|
)
|
|
—
|
|
Restricted cash
|
|
(17.7
|
)
|
|
—
|
|
Net cash used in investing activities
|
|
(251.7
|
)
|
|
(67.6
|
)
|
Cash Flows from Financing Activities:
|
|
|
|
|
Proceeds from issuance of common units, net of offering costs
|
|
30.0
|
|
|
90.5
|
|
Proceeds from issuance of long-term debt
|
|
260.8
|
|
|
268.1
|
|
Repayment of long-term debt
|
|
(231.3
|
)
|
|
(276.3
|
)
|
Debt issuance costs
|
|
(5.3
|
)
|
|
(5.8
|
)
|
Proceeds from revolving credit facility
|
|
232.0
|
|
|
40.0
|
|
Repayment of revolving credit facility
|
|
(50.0
|
)
|
|
(80.0
|
)
|
Distributions to unitholders (public and parent)
|
|
(104.5
|
)
|
|
(74.7
|
)
|
Distributions to noncontrolling interest (SunCoke Energy, Inc.)
|
|
(3.6
|
)
|
|
(20.9
|
)
|
Common public unit repurchases
|
|
(12.8
|
)
|
|
—
|
|
Capital contribution from SunCoke Energy Partners GP LLC
|
|
2.3
|
|
|
0.3
|
|
Net transfers to parent net equity
|
|
—
|
|
|
(13.1
|
)
|
Net cash provided by (used in) financing activities
|
|
117.6
|
|
|
(71.9
|
)
|
Net increase (decrease) in cash and cash equivalents
|
|
15.3
|
|
|
(13.0
|
)
|
Cash and cash equivalents at beginning of year
|
|
33.3
|
|
|
46.3
|
|
Cash and cash equivalents at end of year
|
|
$
|
48.6
|
|
|
$
|
33.3
|
|
Supplemental Disclosure of Cash Flow Information
|
|
|
|
|
Interest paid
|
|
$
|
49.8
|
|
|
$
|
15.7
|
|
Income taxes paid
|
|
$
|
0.8
|
|
|
$
|
—
|
|
|
|
|
|
|
SunCoke Energy Partners, L.P.
|
Segment Operating Data
|
|
The following tables set forth financial and operating data for
the three and twelve months ended December 31, 2015 and 2014:
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Years Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
(Dollars in millions)
|
Sales and other operating revenues:
|
|
|
|
|
|
|
|
|
Domestic Coke
|
|
$
|
182.7
|
|
|
$
|
212.0
|
|
|
$
|
763.8
|
|
|
$
|
823.7
|
|
Coal Logistics(1)
|
|
34.7
|
|
|
11.9
|
|
|
74.7
|
|
|
49.3
|
|
Coal Logistics intersegment sales
|
|
1.5
|
|
|
1.4
|
|
|
6.5
|
|
|
5.7
|
|
Elimination of intersegment sales
|
|
(1.5
|
)
|
|
(1.4
|
)
|
|
(6.5
|
)
|
|
(5.7
|
)
|
Total
|
|
$
|
217.4
|
|
|
$
|
223.9
|
|
|
$
|
838.5
|
|
|
$
|
873.0
|
|
Adjusted EBITDA(2):
|
|
—
|
|
|
—
|
|
|
|
|
|
Domestic Coke
|
|
$
|
39.8
|
|
|
$
|
44.5
|
|
|
$
|
177.1
|
|
|
$
|
181.8
|
|
Coal Logistics(1)
|
|
20.4
|
|
|
3.4
|
|
|
38.4
|
|
|
14.3
|
|
Corporate and Other
|
|
(3.3
|
)
|
|
(1.5
|
)
|
|
(13.8
|
)
|
|
(7.2
|
)
|
Total
|
|
$
|
56.9
|
|
|
$
|
46.4
|
|
|
$
|
201.7
|
|
|
$
|
188.9
|
|
Coke Operating Data:
|
|
|
|
|
|
|
|
|
Domestic Coke capacity utilization (%)
|
|
106
|
|
|
108
|
|
|
105
|
|
|
106
|
|
Domestic Coke production volumes (thousands of tons)
|
|
616
|
|
|
628
|
|
|
2,423
|
|
|
2,435
|
|
Domestic Coke sales volumes (thousands of tons)
|
|
613
|
|
|
648
|
|
|
2,409
|
|
|
2,443
|
|
Domestic Coke Adjusted EBITDA per ton(3)
|
|
$
|
64.88
|
|
|
$
|
68.67
|
|
|
$
|
73.52
|
|
|
$
|
74.42
|
|
Coal Logistics Operating Data:(1)
|
|
|
|
|
|
|
|
|
Tons handled (thousands of tons)
|
|
5,555
|
|
|
4,301
|
|
|
18,864
|
|
|
19,037
|
|
Coal Logistics Adjusted EBITDA per ton handled(4)
|
|
$
|
3.67
|
|
|
$
|
0.79
|
|
|
$
|
2.04
|
|
|
$
|
0.75
|
|
(1)
|
|
The current and prior year periods are not comparable due to the
impact of CMT, which was acquired on August 12, 2015.
|
(2)
|
|
See definition of Adjusted EBITDA and reconciliation to GAAP
elsewhere in this release.
|
(3)
|
|
Reflects Domestic Coke Adjusted EBITDA divided by Domestic Coke
sales volumes.
|
(4)
|
|
Reflects Coal Logistics Adjusted EBITDA divided by Coal Logistics
tons handled.
|
|
|
|
|
|
SunCoke Energy Partners, L.P.
|
Reconciliations of Non-GAAP Information
|
Adjusted EBITDA to Net Income and Net Cash Provided by Operating
Activities
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Years Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
(Dollars in millions)
|
Adjusted EBITDA attributable to SunCoke Energy Partners, L.P.
|
|
$
|
56.1
|
|
|
$
|
38.9
|
|
|
$
|
191.9
|
|
|
$
|
130.9
|
|
Add: Adjusted EBITDA attributable to Previous Owner(1)
|
|
—
|
|
|
6.7
|
|
|
1.5
|
|
|
38.3
|
|
Add: Adjusted EBITDA attributable to noncontrolling interest (2)
|
|
0.8
|
|
|
0.8
|
|
|
8.3
|
|
|
19.7
|
|
Adjusted EBITDA
|
|
$
|
56.9
|
|
|
$
|
46.4
|
|
|
$
|
201.7
|
|
|
$
|
188.9
|
|
Less:
|
|
|
|
|
|
|
|
|
Depreciation and amortization expense
|
|
$
|
20.4
|
|
|
$
|
14.0
|
|
|
$
|
67.4
|
|
|
$
|
54.3
|
|
Interest expense, net
|
|
3.7
|
|
|
7.0
|
|
|
47.5
|
|
|
37.1
|
|
Income tax (benefit) expense
|
|
(0.1
|
)
|
|
1.5
|
|
|
(2.5
|
)
|
|
10.5
|
|
Sales discounts provided to customers due to sharing of
nonconventional fuel tax credits (3)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
Coal Logistics deferred revenue (4)
|
|
(4.0
|
)
|
|
—
|
|
|
(2.9
|
)
|
|
—
|
|
Net income
|
|
$
|
36.9
|
|
|
$
|
23.9
|
|
|
$
|
92.2
|
|
|
$
|
87.5
|
|
Add:
|
|
|
|
|
|
—
|
|
|
|
Depreciation and amortization expense
|
|
$
|
20.4
|
|
|
$
|
14.0
|
|
|
$
|
67.4
|
|
|
$
|
54.3
|
|
(Gain) loss on extinguishment of debt
|
|
(10.1
|
)
|
|
—
|
|
|
(0.7
|
)
|
|
15.4
|
|
Changes in working capital and other
|
|
14.0
|
|
|
2.0
|
|
|
(9.5
|
)
|
|
(30.7
|
)
|
Net cash provided by operating activities
|
|
$
|
61.2
|
|
|
$
|
39.9
|
|
|
$
|
149.4
|
|
|
$
|
126.5
|
|
(1)
|
|
Reflects net income attributable to our Granite City facility prior
to the Granite City Dropdown on January 13, 2015 adjusted for
Granite City's share of interest, taxes, depreciation and
amortization during the same period.
|
(2)
|
|
Reflects net income attributable to noncontrolling interest adjusted
for noncontrolling interest's share of interest, taxes, depreciation
and amortization.
|
(3)
|
|
Sales discounts are related to nonconventional fuel tax credits,
which expired in 2013. At December 31, 2013, we had $13.6 million
accrued related to sales discounts to be paid to our Granite City
customer. During first quarter of 2014, we settled this obligation
for $13.1 million which resulted in a gain of $0.5 million. This
gain is recorded in sales and other operating revenue on our
Combined and Consolidated Statement of Operations.
|
(4)
|
|
Coal Logistics deferred revenue adjusts for differences between the
timing of recognition of take-or-pay shortfalls into revenue for
GAAP purposes versus the timing of payments from our customers. This
adjustment aligns Adjusted EBITDA more closely with cash flow.
|
|
|
|
|
SunCoke Energy Partners, L.P.
|
Reconciliations of Non-GAAP Information
|
Reconciliation of Adjusted EBITDA and Distributable Cash Flow
to Net Income
|
|
|
|
|
|
Three Months Ended
|
|
Years Ended
|
|
December 31,
|
|
December 31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(Dollars in millions)
|
Net cash provided by operating activities
|
$
|
61.2
|
|
|
$
|
39.9
|
|
|
$
|
149.4
|
|
|
$
|
126.5
|
|
Less:
|
|
|
|
|
|
|
|
Depreciation and amortization expense
|
20.4
|
|
|
14.0
|
|
|
67.4
|
|
|
54.3
|
|
(Gain) loss on extinguishment of debt
|
(10.1
|
)
|
|
—
|
|
|
(0.7
|
)
|
|
15.4
|
|
Changes in working capital and other
|
14.0
|
|
|
2.0
|
|
|
(9.5
|
)
|
|
(30.7
|
)
|
Net income
|
$
|
36.9
|
|
|
$
|
23.9
|
|
|
$
|
92.2
|
|
|
$
|
87.5
|
|
Add:
|
|
|
|
|
|
|
|
Depreciation and amortization expense
|
$
|
20.4
|
|
|
$
|
14.0
|
|
|
$
|
67.4
|
|
|
$
|
54.3
|
|
Interest expense, net
|
3.7
|
|
|
7.0
|
|
|
47.5
|
|
|
37.1
|
|
Income tax (benefit) expense
|
(0.1
|
)
|
|
1.5
|
|
|
(2.5
|
)
|
|
10.5
|
|
Sales discounts provided to customers due to sharing of
nonconventional fuel tax credits(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
Coal Logistics deferred revenue (2)
|
(4.0
|
)
|
|
—
|
|
|
(2.9
|
)
|
|
—
|
|
Adjusted EBITDA
|
$
|
56.9
|
|
|
$
|
46.4
|
|
|
$
|
201.7
|
|
|
$
|
188.9
|
|
Less:
|
|
|
|
|
|
|
|
Adjusted EBITDA attributable to Previous Owner (3)
|
—
|
|
|
6.7
|
|
|
1.5
|
|
|
38.3
|
|
Adjusted EBITDA attributable to noncontrolling interest (4)
|
0.8
|
|
|
0.8
|
|
|
8.3
|
|
|
19.7
|
|
Adjusted EBITDA attributable to SunCoke Energy Partners, L.P.
|
$
|
56.1
|
|
|
$
|
38.9
|
|
|
$
|
191.9
|
|
|
$
|
130.9
|
|
Less:
|
|
|
|
|
|
|
|
Ongoing capex
|
$
|
9.0
|
|
|
$
|
3.2
|
|
|
$
|
20.4
|
|
|
15.2
|
|
Replacement capex accrual
|
1.9
|
|
|
1.4
|
|
|
7.2
|
|
|
4.9
|
|
Cash interest accrual
|
13.6
|
|
|
7.1
|
|
|
47.2
|
|
|
22.9
|
|
Cash tax accrual
|
(0.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
Distributable cash flow
|
$
|
32.2
|
|
|
$
|
27.2
|
|
|
$
|
117.1
|
|
|
$
|
87.9
|
|
|
|
|
|
|
|
|
|
Quarterly cash distribution
|
$
|
28.0
|
|
|
$
|
22.2
|
|
|
$
|
110.2
|
|
|
81.7
|
|
Distribution coverage ratio(5)
|
1.15x
|
|
1.23x
|
|
1.06x
|
|
1.08x
|
(1)
|
|
Sales discounts are related to nonconventional fuel tax credits,
which expired in 2013. At December 31, 2013, we had $13.6 million
accrued related to sales discounts to be paid to our Granite City
customer. During first quarter of 2014, we settled this obligation
for $13.1 million which resulted in a gain of $0.5 million. This
gain is recorded in sales and other operating revenue on our
Combined and Consolidated Statement of Operations.
|
(2)
|
|
Coal Logistics deferred revenue adjusts for differences between the
timing of recognition of take-or-pay shortfalls into revenue for
GAAP purposes versus the timing of payments from our customers. This
adjustment aligns Adjusted EBITDA more closely with cash flow.
|
(3)
|
|
Reflects net income attributable to the Previous Owner adjusted for
the Previous Owner's share of interest, taxes, depreciation and
amortization.
|
(4)
|
|
Reflects net income attributable to noncontrolling interest adjusted
for noncontrolling interest's share of interest, taxes, depreciation
and amortization.
|
(5)
|
|
Distribution cash coverage ratio is distributable cash flow divided
by total estimated distributions to the limited and general partners.
|
|
|
|
SunCoke Energy Partners, L.P.
|
Reconciliations of Non-GAAP Information
|
Reconciliation of Adjusted EBITDA and Distributable Cash Flow
to Net Income
|
|
|
|
|
|
Years Ended
|
|
|
December 31,
|
|
|
2015
|
|
2014
|
|
|
(Proforma)(1)
|
|
|
(Dollars in millions)
|
Net cash provided by operating activities
|
|
$
|
157.8
|
|
|
$
|
106.8
|
|
Less:
|
|
|
|
|
Depreciation and amortization expense
|
|
68.9
|
|
|
40.6
|
|
Changes in working capital and other
|
|
—
|
|
|
(12.9
|
)
|
(Gain) loss on debt extinguishment
|
|
(10.1
|
)
|
|
15.4
|
|
Net income
|
|
$
|
99.0
|
|
|
$
|
63.7
|
|
Add:
|
|
|
|
|
Depreciation and amortization expense
|
|
$
|
68.9
|
|
|
$
|
40.6
|
|
Interest expense, net
|
|
48.8
|
|
|
43.7
|
|
Income tax (benefit) expense
|
|
(2.5
|
)
|
|
1.2
|
|
Coal Logistics deferred revenue(2)
|
|
(2.9
|
)
|
|
—
|
|
Adjusted EBITDA
|
|
$
|
211.3
|
|
|
$
|
149.2
|
|
Less:
|
|
|
|
|
Adjusted EBITDA attributable to noncontrolling interest(3)
|
|
7.7
|
|
|
2.9
|
|
Adjusted EBITDA attributable to SunCoke Energy Partners, L.P.
|
|
$
|
203.6
|
|
|
$
|
146.3
|
|
Less:
|
|
|
|
|
Ongoing capex
|
|
$
|
21.2
|
|
|
$
|
17.1
|
|
Replacement capex accrual
|
|
7.3
|
|
|
5.6
|
|
Cash interest accrual
|
|
49.0
|
|
|
28.7
|
|
Distributable cash flow
|
|
$
|
126.1
|
|
|
$
|
94.9
|
|
|
|
|
|
|
Quarterly Cash Distribution
|
|
105.6
|
|
|
81.4
|
|
Distribution Coverage Ratio(4)
|
|
1.19x
|
|
1.17x
|
(1)
|
|
Proforma adjustments made for changes in EBITDA and ongoing capex
attributable to the partnership, cash interest costs, replacement
capital accruals, Corporate cost allocations, distribution levels
and units outstanding. Proforma assumes the following: (a) dropdown
of 75 percent in Granite City occurred January 1, 2015; (b)
distributions were not paid to units issued in conjunction with the
CMT acquisition and dropdown of 23 percent in Granite City closed
August 12, 2015; (c) the CMT transaction and dropdown of 23 percent
in Granite City were completed on July 1, 2015; and (d) pro-rata,
annualized EBITDA contribution from CMT.
|
(2)
|
|
Coal Logistics deferred revenue adjusts for differences between the
timing of recognition of take-or-pay shortfalls into revenue for
GAAP purposes versus the timing of payments from our customers. This
adjustment aligns Adjusted EBITDA more closely with cash flow.
|
(3)
|
|
Reflects net income attributable to noncontrolling interest adjusted
for noncontrolling interest's share of interest, taxes, depreciation
and amortization.
|
(4)
|
|
Distribution cash coverage ratio is distributable cash flow divided
by total estimated distributions to the limited and general partners.
|
|
SunCoke Energy Partners, L.P.
|
Reconciliations of Non-GAAP Information
|
Estimated 2016 Consolidated Adjusted EBITDA to Estimated Net
Income
|
and Net Cash Provided by Operating Activities
|
|
|
|
|
|
2016
|
|
|
Low
|
|
High
|
Net Cash Provided by Operating Activities
|
|
$
|
149
|
|
|
$
|
163
|
|
Less:
|
|
|
|
|
Depreciation and amortization expense
|
|
74
|
|
|
74
|
|
Changes in working capital and other
|
|
(2
|
)
|
|
(2
|
)
|
Income tax expense
|
|
(1
|
)
|
|
(1
|
)
|
Net income
|
|
$
|
78
|
|
|
$
|
92
|
|
Add:
|
|
|
|
|
Depreciation and amortization expense
|
|
74
|
|
|
74
|
|
Interest expense,net
|
|
57
|
|
|
53
|
|
Income tax expense
|
|
1
|
|
|
1
|
|
Adjusted EBITDA
|
|
$
|
210
|
|
|
$
|
220
|
|
EBITDA attributable to noncontrolling interest(1)
|
|
(3
|
)
|
|
(3
|
)
|
Adjusted EBITDA attributable to SXCP
|
|
$
|
207
|
|
|
$
|
217
|
|
Less:
|
|
|
|
|
Corporate allocation addback
|
|
(28
|
)
|
|
(28
|
)
|
Ongoing capex (SXCP share)
|
|
15
|
|
|
15
|
|
Replacement capex accrual
|
|
8
|
|
|
8
|
|
Cash interest accrual
|
|
53
|
|
|
49
|
|
Cash tax accrual(2)
|
|
1
|
|
|
1
|
|
Distributable cash flow
|
|
$
|
158
|
|
|
$
|
172
|
|
(1)
|
|
Adjusted EBITDA attributable to noncontrolling interests represents
SXC's 2% interest in Haverhill, Middletown and Granite City
cokemaking facilities.
|
(2)
|
|
Cash tax impacts from the operations of Gateway Cogeneration Company
LLC, which is an entity subject to income taxes for federal and
state purposes at the corporate level.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160128005305/en/
Source: SunCoke Energy Partners, L.P.