SunCoke Energy, Inc. Reports Fourth Quarter 2013 Results
-
Net income attributable to
SunCoke Energy, Inc. (NYSE: SXC) shareholders declined in fourth quarter and full year 2013 primarily due to weakness in our Coal Mining segment, the attribution of income toSunCoke Energy Partners, L.P. (NYSE: SXCP) public holders and lower performance at ourIndiana Harbor cokemaking operations -
Adjusted EBITDA was
$59.7 million in fourth quarter 2013 and$215.1 million for full year 2013, a decline of$10.0 million and$50.6 million , respectively, reflecting lower performance in our Coal Mining segment andIndiana Harbor cokemaking facility -
Domestic Coke segment generated
$56.5 million of Adjusted EBITDA in fourth quarter 2013 on sales of 1,047 thousand tons, resulting in Adjusted EBITDA per ton of$54 . Full year 2013 Domestic Coke Adjusted EBITDA was$243.2 million on sales of 4,263 thousand tons for an Adjusted EBITDA per ton of$57 -
Reaffirm 2014 Adjusted EBITDA and earnings per share of
$230 million to$255 million and$0.35 to$0.60 per share, respectively, but expect first quarter 2014 will be challenged by impact on operations of severe weather in January
"Despite a weak fourth quarter, we achieved our 2013 earnings targets
during a year that was challenging on many fronts," said
Henderson continued, "Looking ahead, we are currently evaluating the potential of dropping down our entire domestic coke business into SXCP over time and assessing strategic options for our coal business. We are in the early stages of this analysis and plan to provide an update on these initiatives in March.”
CONSOLIDATED RESULTS
| Three Months Ended | Years Ended | ||||||||||||||||||||||||||||||||||||
| (In millions, except per share amounts) | 2013 | 2012 | (Decrease) | 2013 | 2012 | (Decrease) | |||||||||||||||||||||||||||||||
| Total Revenues | $ | 399.6 | $ | 491.4 | $ | (91.8 | ) | $ | 1,647.7 | $ | 1,914.1 | $ | (266.4 | ) | |||||||||||||||||||||||
| Operating Income | 30.9 | 44.3 | (13.4 | ) | 111.3 | 173.7 | $ | (62.4 | ) | ||||||||||||||||||||||||||||
| Adjusted EBITDA(1) | 59.7 | 69.7 | (10.0 | ) | 215.1 | 265.7 | $ | (50.6 | ) | ||||||||||||||||||||||||||||
| Net Income Attributable to Shareholders | 11.0 | 27.6 | (16.6 | ) | 25.0 | 98.8 | $ | (73.8 | ) | ||||||||||||||||||||||||||||
| Earnings Per Diluted Share | 0.16 | 0.39 | (0.23 | ) | 0.36 | 1.40 | $ | (1.04 | ) | ||||||||||||||||||||||||||||
(1) See definition of Adjusted EBITDA and reconciliation elsewhere in this release. | |||||||||||||||||||||||||||||||||||||
Total revenues were down 18.7 percent to
Operating income declined 30.2 percent to
Net income attributable to shareholders was
SEGMENT RESULTS
Domestic Coke
Domestic Coke consists of cokemaking facilities and heat recovery
operations at our Jewell,
| Three Months Ended | |||||||||||||||
| (In millions, except per ton amounts) | 2013 | 2012 | (Decrease) | ||||||||||||
| Segment Revenues | $ | 359.9 | $ | 460.2 | $ | (100.3 | ) | ||||||||
| Adjusted EBITDA(1) | 56.5 | 62.4 | (5.9 | ) | |||||||||||
| Sales Volume (in thousands of tons) | 1,047 | 1,077 | (30 | ) | |||||||||||
| Adjusted EBITDA per ton(1) | 54 | 58 | (4 | ) | |||||||||||
(1) See definitions of Adjusted EBITDA and Adjusted EBITDA per Ton and reconciliations elsewhere in this release. | |||||||||||||||
-
Segment revenues in the fourth quarter 2013 were affected by the
pass-through of lower coal costs and lower coke sales volumes. The
lower coke sales volumes primarily reflects lower production at
Indiana Harbor due to the refurbishment effort currently underway. -
Segment Adjusted EBITDA decline of
$5.9 million was driven by$9.0 million of lower performance atIndiana Harbor and a$2.5 million accrual related to a customer coke quality claim, partly offset by$5 .6 million improvement across the rest of our coke fleet. Results atIndiana Harbor were impacted by higher costs and lower volumes due to the refurbishment project, which more than offset the higher fee per ton of coke sold we earned as a result of our 10 - year contract extension. In addition,Indiana Harbor suffered from an unfavorable comparison to prior year which benefited from a$4.2 million billing settlement.
Brazil Coke
Formerly named International Coke, our Brazil Coke segment consists of a
cokemaking facility in Vitória,
-
Segment Adjusted EBITDA increased
$1.2 million to$11.4 million due to favorable comparison to prior year, which included a higher allocation of corporate costs.
-
Adjusted EBITDA in fourth quarter was
$2.2 million on total coke sales of approximately 53 thousand tons, representing our share of total coke sales of approximately 108 thousand tons. Adjusted EBITDA per ton was nearly $42 per ton and included a positive currency exchange impact of$17 per ton. India Coke recognized$0.3 million of income from equity method investment reflecting our share of earnings, depreciation, interest expense and taxes attributable to the venture.
Coal Mining
Coal Mining consists of our metallurgical coal mining activities
conducted in
| Three Months Ended | |||||||||||||||
| (In millions, except per ton amounts) | 2013 | 2012 | Increase/ | ||||||||||||
| Total Coal Mining Revenues(1) | $ | 47.0 | $ | 61.7 | $ | (14.7 | ) | ||||||||
| Segment Revenues (excluding sales to affiliates) | $ | 11.1 | $ | 10.8 | $ | 0.3 | |||||||||
| Adjusted EBITDA(2) | $ | (8.9 | ) | $ | 6.0 | $ | (14.9 | ) | |||||||
| Coal Production (in thousands of tons)(3) | 275 | 351 | (76 | ) | |||||||||||
| Sales Volumes (in thousands of tons)(1) | 389 | 370 | 19 | ||||||||||||
| Sales Price per ton (excludes transportation costs) | $ | 117.82 | $ | 165.77 | $ | (47.95 | ) | ||||||||
| Adjusted EBITDA per ton(1) | $ | (22.88 | ) | $ | 16.22 | $ | (39.10 | ) | |||||||
(1) Includes sales to affiliates. | |||||||||||||||
(2) See definitions of Adjusted EBITDA, Adjusted EBITDA per Ton and reconciliations elsewhere in this release. | |||||||||||||||
(3) Includes production from Company and contract-operated mines. | |||||||||||||||
-
Total Coal Mining revenues (including sales to affiliates) was down as
a result of a
$48 per ton decline in average coal sales price, partly offset by higher volumes. Excluding sales to affiliates, segment revenues were relatively flat on similar volumes. -
Adjusted EBITDA was negatively impacted by lower average coal sales
price, a
$2.3 million inventory mark-to-market impact and a$1.0 million increase in Black Lung liability costs. Partly offsetting this was approximately a$10 per ton reduction in cash production costs.
Coal Logistics
The Coal Logistics segment consists of the coal handling and blending
services operated by SXCP as result of its acquisition of
-
The Coal Logistics Segment contributed
$4.0 million to Adjusted EBITDA on 3,649 thousand tons of coal handled in fourth quarter 2013.
Corporate and Other
Corporate expenses in fourth quarter 2013 were
Financing Expense, Net
Net financing expense was relatively flat in fourth quarter 2013 at
Net cash provided by operations was
Cash used in investing activities was
2014 OUTLOOK
Our 2014 guidance is as follows:
- Domestic coke production is expected to be approximately 4.3 million tons
- Coal production is projected to be approximately 1.3 million tons
-
Adjusted EBITDA is expected to be between
$230 million and$255 million on a consolidated basis. Adjusted EBITDA attributable to SXC is expected to be between$183 million and $203 million, reflecting the impact of public ownership in SXCP -
Earnings per diluted share attributable to SXC is expected to be
between
$0.35 and$0.60 per diluted share, reflecting the impact of public ownership in SXCP -
Cash generated by operations is expected to be approximately
$170 million -
Capital expenditures are projected to be
$117 million . Approximately $36 million of the projected 2014 capital expenditures were pre-funded with the proceeds from SXCP's initial public offering inJanuary 2013 - The effective tax rate for the full year 2014 is expected to be between 20 percent and 26 percent, and the cash tax rate is expected to be between 10 percent and 18 percent
RELATED COMMUNICATIONS
We will host a investor conference call today at
UPCOMING EVENTS
Our senior management team will host a joint Investor Day with SXCP on
In addition, we will participate in the
DEFINITIONS
- 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 our equity method investment. 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 equity method investment. 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. Management believes Adjusted EBITDA is an important measure of the operating performance of the Company's net assets 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, does not represent and should not be considered a substitute for net income as determined in accordance with GAAP. Calculations of Adjusted EBITDA may not be comparable to those reported by other companies.
- Adjusted EBITDA attributable to SXC equals Adjusted EBITDA less Adjusted EBITDA attributable to noncontrolling interests.
- Adjusted EBITDA per Ton represents Adjusted EBITDA divided by tons sold.
FORWARD LOOKING STATEMENTS
Some of the statements included in this press release constitute “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). 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 the Company) 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 the Company, 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 the Company; and changes in tax, environmental and other laws and regulations applicable to the Company’s businesses.
Forward-looking statements are not guarantees of future performance, but are based upon the current knowledge, beliefs and expectations of Company management, and upon assumptions by the Company 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. The Company 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.
In accordance with the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, the Company has included in its filings
with the
| Consolidated Statements of Income | ||||||||||||||||||
Three Months Ended | Years Ended | |||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||||
| (Dollars and shares in millions, except per share amounts) | ||||||||||||||||||
| Revenues | ||||||||||||||||||
| Sales and other operating revenue | $ | 388.5 | $ | 480.6 | $ | 1,633.5 | $ | 1,902.0 | ||||||||||
| Other income, net | 11.1 | 10.8 | 14.2 | 12.1 | ||||||||||||||
| Total revenues | 399.6 | 491.4 | 1,647.7 | 1,914.1 | ||||||||||||||
| Costs and operating expenses | ||||||||||||||||||
| Cost of products sold and operating expenses | 316.7 | 403.0 | 1,348.0 | 1,577.6 | ||||||||||||||
| Selling, general and administrative expenses | 26.5 | 20.8 | 92.4 | 82.0 | ||||||||||||||
| Depreciation, depletion and amortization | 25.5 | 23.3 | 96.0 | 80.8 | ||||||||||||||
| Total costs and operating expenses | 368.7 | 447.1 | 1,536.4 | 1,740.4 | ||||||||||||||
| Operating income | 30.9 | 44.3 | 111.3 | 173.7 | ||||||||||||||
| Total financing expense, net | (12.3 | ) | (11.8 | ) | (52.3 | ) | (47.8 | ) | ||||||||||
Income before income tax expense and income from equity method investment | 18.6 | 32.5 | 59.0 | 125.9 | ||||||||||||||
| Income tax expense | (0.2 | ) | (3.5 | ) | (6.7 | ) | (23.4 | ) | ||||||||||
| Income (loss) from equity method investment | 0.3 | — | (2.2 | ) | — | |||||||||||||
| Net income | 18.7 | 29.0 | 50.1 | 102.5 | ||||||||||||||
| Less: Net income attributable to noncontrolling interests | 7.7 | 1.4 | 25.1 | 3.7 | ||||||||||||||
| Net income attributable to | $ | 11.0 | $ | 27.6 | $ | 25.0 | $ | 98.8 | ||||||||||
|
Earnings attributable to | ||||||||||||||||||
| Basic | $ | 0.16 | $ | 0.39 | $ | 0.36 | $ | 1.41 | ||||||||||
| Diluted | $ | 0.16 | $ | 0.39 | $ | 0.36 | $ | 1.40 | ||||||||||
| Weighted average number of common shares outstanding: | ||||||||||||||||||
| Basic | 69.6 | 70.0 | 69.9 | 70.0 | ||||||||||||||
| Diluted | 70.2 | 70.3 | 70.2 | 70.3 | ||||||||||||||
| Consolidated Balance Sheet | ||||||||||
| Years Ended | ||||||||||
| 2013 | 2012 | |||||||||
| (Unaudited) | ||||||||||
(Dollars in millions, except per share amounts) | ||||||||||
| Assets | ||||||||||
| Cash and cash equivalents | $ | 233.6 | $ | 239.2 | ||||||
| Receivables | 91.5 | 70.0 | ||||||||
| Inventories | 135.3 | 160.1 | ||||||||
| Income tax receivable | 6.6 | — | ||||||||
| Deferred income taxes | 12.6 | 2.6 | ||||||||
| Other current assets | 2.3 | 1.5 | ||||||||
| Total current assets | 481.9 | 473.4 | ||||||||
| Investment in Brazilian cokemaking operations | 41.0 | 41.0 | ||||||||
|
Equity method investment in | 56.8 | — | ||||||||
| Properties, plants and equipment, net | 1,544.1 | 1,396.6 | ||||||||
| Lease and mineral rights, net | 52.8 | 52.5 | ||||||||
| Goodwill and other intangible assets, net | 25.4 | 9.4 | ||||||||
| Deferred charges and other assets | 41.9 | 38.1 | ||||||||
| Total assets | $ | 2,243.9 | $ | 2,011.0 | ||||||
| Liabilities and Equity | ||||||||||
| Accounts payable | $ | 154.3 | $ | 132.9 | ||||||
| Current portion of long-term debt | 41.0 | 3.3 | ||||||||
| Accrued liabilities | 69.5 | 91.2 | ||||||||
| Interest payable | 18.2 | 15.7 | ||||||||
| Income taxes payable | — | 3.9 | ||||||||
| Total current liabilities | 283.0 | 247.0 | ||||||||
| Long-term debt | 648.1 | 720.1 | ||||||||
| Accrual for black lung benefits | 32.4 | 34.8 | ||||||||
| Retirement benefit liabilities | 34.8 | 42.5 | ||||||||
| Deferred income taxes | 376.6 | 361.5 | ||||||||
| Asset retirement obligations | 17.9 | 13.5 | ||||||||
| Other deferred credits and liabilities | 18.8 | 16.7 | ||||||||
| Total liabilities | 1,411.6 | 1,436.1 | ||||||||
| Equity | ||||||||||
Preferred stock, | — | — | ||||||||
Common stock, | 0.7 | 0.7 | ||||||||
Treasury stock, 1,255,355 shares and 603,528 shares at | (19.9 | ) | (9.4 | ) | ||||||
| Additional paid-in capital | 446.9 | 436.9 | ||||||||
| Accumulated other comprehensive loss | (14.1 | ) | (7.9 | ) | ||||||
| Retained earnings | 143.8 | 118.8 | ||||||||
| 557.4 | 539.1 | |||||||||
| Noncontrolling interests | 274.9 | 35.8 | ||||||||
| Total equity | 832.3 | 574.9 | ||||||||
| Total liabilities and equity | $ | 2,243.9 | $ | 2,011.0 | ||||||
| Consolidated Statements of Cash Flows | ||||||||||
| Years Ended | ||||||||||
| 2013 | 2012 | |||||||||
| (Unaudited) | ||||||||||
| (Dollars in millions) | ||||||||||
| Cash Flows from Operating Activities: | ||||||||||
| Net income | $ | 50.1 | $ | 102.5 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
| Depreciation, depletion and amortization | 96.0 | 80.8 | ||||||||
| Share-based compensation expense | 7.6 | 6.7 | ||||||||
| Deferred income tax expense | 1.6 | 34.3 | ||||||||
| Payments in excess of expense for retirement plans | (2.2 | ) | (6.6 | ) | ||||||
| Loss from equity method investment | 2.2 | — | ||||||||
Changes in working capital pertaining to operating activities (net of acquisitions): | ||||||||||
| Receivables | (18.1 | ) | (3.8 | ) | ||||||
| Inventories | 29.2 | 56.1 | ||||||||
| Accounts payable | 20.0 | (49.0 | ) | |||||||
| Accrued liabilities | (24.7 | ) | 15.2 | |||||||
| Interest payable | 2.5 | (0.2 | ) | |||||||
| Income taxes payable | (10.2 | ) | (17.4 | ) | ||||||
| Other | (2.7 | ) | (12.5 | ) | ||||||
| Net cash provided by operating activities | 151.3 | 206.1 | ||||||||
| Cash Flows from Investing Activities: | ||||||||||
| Capital expenditures | (145.6 | ) | (80.6 | ) | ||||||
| Acquisition of businesses, net of cash received | (113.3 | ) | (3.5 | ) | ||||||
|
Equity method investment in | (67.7 | ) | — | |||||||
| Net cash used in investing activities | (326.6 | ) | (84.1 | ) | ||||||
| Cash Flows from Financing Activities: | ||||||||||
Proceeds from issuance of common units of | 237.8 | — | ||||||||
| Proceeds from issuance of long-term debt | 150.0 | — | ||||||||
| Repayment of long-term debt | (225.0 | ) | (3.3 | ) | ||||||
| Debt issuance costs | (6.9 | ) | — | |||||||
| Proceeds from revolving facility | 40.0 | — | ||||||||
| Cash distributions to noncontrolling interests | (17.8 | ) | (2.3 | ) | ||||||
| Repurchase of common stock | (10.9 | ) | (9.4 | ) | ||||||
| Proceeds from exercise of stock options | 2.5 | 4.7 | ||||||||
| Net cash provided by (used in) financing activities | 169.7 | (10.3 | ) | |||||||
| Net (decrease) increase in cash and cash equivalents | (5.6 | ) | 111.7 | |||||||
| Cash and cash equivalents at beginning of year | 239.2 | 127.5 | ||||||||
| Cash and cash equivalents at end of year | 233.6 | 239.2 | ||||||||
| Segment Financial and Operating Data | |||||||||||||||||||
The following tables set forth the sales and other operating
revenues and Adjusted EBITDA(1) of our segments and
operating data for the three and twelve months ended | |||||||||||||||||||
| |||||||||||||||||||
| Three Months Ended | Years Ended | ||||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||
| Sales and other operating revenues: | |||||||||||||||||||
| Domestic Coke | $ | 359.9 | $ | 460.2 | $ | 1,528.7 | $ | 1,816.8 | |||||||||||
| Brazil Coke | 9.5 | 9.6 | 35.4 | 36.9 | |||||||||||||||
| Coal Mining | 11.1 | 10.8 | 61.3 | 48.3 | |||||||||||||||
| Coal Mining intersegment sales | 35.9 | 50.9 | 136.7 | 203.4 | |||||||||||||||
| Coal Logistics | 8.0 | 8.1 | |||||||||||||||||
| Coal Logistics intersegment sales | 4.5 | 5.5 | |||||||||||||||||
| Elimination of intersegment sales | (40.4 | ) | (50.9 | ) | (142.2 | ) | (203.4 | ) | |||||||||||
| Total | $ | 388.5 | $ | 480.6 | $ | 1,633.5 | $ | 1,902.0 | |||||||||||
| Adjusted EBITDA(1): | |||||||||||||||||||
| Domestic Coke | $ | 56.5 | $ | 62.4 | $ | 243.2 | $ | 249.4 | |||||||||||
| Brazil Coke | 11.4 | 10.2 | 16.1 | 11.9 | |||||||||||||||
| 2.2 | 0.9 | ||||||||||||||||||
| Coal Mining | (8.9 | ) | 6.0 | (18.7 | ) | 33.4 | |||||||||||||
| Coal Logistics | 4.0 | 4.7 | |||||||||||||||||
| Corporate and Other | (5.5 | ) | (8.9 | ) | (31.1 | ) | (29.0 | ) | |||||||||||
| Total | $ | 59.7 | $ | 69.7 | $ | 215.1 | $ | 265.7 | |||||||||||
| Coke Operating Data: | |||||||||||||||||||
| Domestic Coke capacity utilization (%) | 99 | 101 | 101 | 102 | |||||||||||||||
| Domestic Coke production volumes (thousands of tons) | 1,056 | 1,082 | 4,269 | 4,342 | |||||||||||||||
| Domestic Coke sales volumes (thousands of tons) | 1,047 | 1,077 | 4,263 | 4,345 | |||||||||||||||
| Domestic Coke Adjusted EBITDA per ton(2) | $ | 53.96 | $ | 57.94 | $ | 57.05 | $ | 57.40 | |||||||||||
| Brazilian Coke production—operated facility (thousands of tons) | 222 | 239 | 876 | 1,209 | |||||||||||||||
| 108 | 257 | ||||||||||||||||||
| Coal Operating Data(4): | |||||||||||||||||||
| Coal sales volumes (thousands of tons): | |||||||||||||||||||
| Internal use | 304 | 287 | 1,164 | 1,149 | |||||||||||||||
| Third parties | 85 | 83 | 488 | 351 | |||||||||||||||
| Total | 389 | 370 | 1,652 | 1,500 | |||||||||||||||
| Coal production (thousands of tons) | 275 | 351 | 1,342 | 1,476 | |||||||||||||||
| Purchased coal (thousands of tons) | 115 | 9 | 334 | 42 | |||||||||||||||
| Coal sales price per ton (excludes transportation costs)(5) | $ | 117.82 | $ | 165.77 | $ | 118.05 | $ | 167.23 | |||||||||||
| Coal cash production cost per ton(6) | $ | 139.95 | $ | 149.53 | $ | 125.87 | $ | 144.93 | |||||||||||
| Purchased coal cost per ton(7) | $ | 105.04 | $ | 119.98 | $ | 107.27 | $ | 103.17 | |||||||||||
| Total coal production cost per ton(8) | $ | 155.73 | $ | 159.54 | $ | 139.22 | $ | 152.75 | |||||||||||
| Coal Logistics Operating Data: | |||||||||||||||||||
| Tons handled (thousands of tons) | 3,649 | 3,785 | |||||||||||||||||
| Coal Logistics Adjusted EBITDA per ton handled (9) | $ | 1.10 | $ | 1.24 | |||||||||||||||
| (1) | See definition of Adjusted EBITDA and reconciliation to US GAAP at the end of this Item. | ||
| (2) | Reflects Domestic Coke Adjusted EBITDA divided by Domestic Coke sales volumes. | ||
| (3) | Represents 100% of VISA SunCoke sales volumes. | ||
| (4) | Includes production from Company and contract-operated mines. | ||
| (5) |
Includes sales to affiliates. The transfer price per ton to our
Jewell cokemaking facility was | ||
| (6) | Mining and preparation costs, excluding depreciation, depletion and amortization, divided by coal production volume. Prior periods have been restated for a change in allocation methodology which resulted in additional costs being allocated to purchased coal. | ||
| (7) | Costs of purchased raw coal divided by purchased coal volume. Prior periods have been restated for a change in allocation methodology which resulted in additional costs being allocated to purchased coal. | ||
| (8) |
Cost of mining and preparation costs, purchased raw coal costs, and
depreciation, depletion and amortization divided by coal sales
volume. Depreciation, depletion and amortization per ton were | ||
| (9) | Reflects Coal Logistics Adjusted EBITDA divided by Coal Logistics tons handled. |
| Reconciliations of Non-GAAP Information | |||||||||||||||||
| Adjusted EBITDA to Net Income | |||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||
| (Dollars in millions) | |||||||||||||||||
|
Adjusted EBITDA attributable to | $ | 47.5 | $ | 68.2 | $ | 173.9 | $ | 262.7 | |||||||||
| Add: Adjusted EBITDA attributable to noncontrolling interest(1) | 12.2 | 1.5 | 41.2 | 3.0 | |||||||||||||
| Adjusted EBITDA | $ | 59.7 | $ | 69.7 | $ | 215.1 | $ | 265.7 | |||||||||
| Subtract: | |||||||||||||||||
| Adjustment to unconsolidated affiliate earnings | 1.9 | — | 3.2 | — | |||||||||||||
| Depreciation, depletion and amortization | 25.5 | 23.3 | 96.0 | 80.8 | |||||||||||||
| Financing expense, net | 12.3 | 11.8 | 52.3 | 47.8 | |||||||||||||
| Income tax expense | 0.2 | 3.5 | 6.7 | 23.4 | |||||||||||||
| Sales discounts provided to customers due to sharing of nonconventional fuel tax credits | 1.1 | 2.1 | 6.8 | 11.2 | |||||||||||||
| Net income | $ | 18.7 | $ | 29.0 | $ | 50.1 | $ | 102.5 | |||||||||
| (1) | Reflects net income attributable to noncontrolling interest adjusted for the noncontrolling interest share of interest, taxes, depreciation and amortization. |
Estimated 2014 Adjusted EBITDA to Estimated Net Income | ||||||||||
| 2014 | ||||||||||
| Low | High | |||||||||
|
Adjusted EBITDA attributable to | $ | 183 | $ | 203 | ||||||
| Add: Adjusted EBITDA attributable to noncontrolling interest(1) | 47 | 52 | ||||||||
| Estimated 2014 Adjusted EBITDA | 230 | 255 | ||||||||
| Subtract: | ||||||||||
| Sales discounts provided to customers due to sharing of nonconventional fuel tax credits | — | — | ||||||||
| Adjustments to unconsolidated affiliate earnings(2) | 4 | 7 | ||||||||
| Estimated 2014 EBITDA | 226 | 248 | ||||||||
| Subtract: | ||||||||||
| Depreciation, depletion and amortization | 105 | 100 | ||||||||
| Financing expense, net | 55 | 53 | ||||||||
| Income tax expense | 13 | 24 | ||||||||
| Net income | $ | 53 | $ | 71 | ||||||
| (1) | Reflects net income attributable to noncontrolling interest adjusted for the noncontrolling interest share of interest, taxes, depreciation and amortization. | ||
| (2) | Reflects estimated pro-rata 2013 earnings related to our equity method investment in the joint venture. |
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