SunCoke Energy, Inc. Reports Second Quarter 2014 Results
-
Second quarter 2014 net loss was
$49.2 million , or$0.71 per share, reflecting the impact of a$103.1 million Coal Mining non-cash impairment charge. Excluding this charge, net income was$1.8 million , or$0 .03 per share -
Executed the drop down of a 33 percent interest in the Haverhill and
Middletown cokemaking facilities toSunCoke Energy Partners, L.P. (NYSE: SXCP) in second quarter 2014, incurring transaction costs of$17 .4 million -
Adjusted EBITDA increased
$8.1 million to$60.5 million in second quarter 2014, primarily due to the contribution of our new Coal Logistics segment -
Domestic Coke segment generated
$64.3 million of Adjusted EBITDA in second quarter 2014 on sales of 1,059 thousand tons resulting in Adjusted EBITDA per ton of$61 , up from$57 per ton in 2013 -
New
$150 million share repurchase program authorized;$75 million to be bought back via an Accelerated Share Repurchase program
"Excluding impairment charges, Adjusted EBITDA in the second quarter was
driven by the contribution of our new Coal Logistics business and higher
fees earned at
CONSOLIDATED RESULTS
| Three Months Ended | |||||||||||||||
| Increase/ | |||||||||||||||
| (In millions, except per share amounts) | 2014 | 2013 | (Decrease) | ||||||||||||
| Total Revenues | $ | 372.2 | $ | 403.7 | $ | (31.5 | ) | ||||||||
| Operating Income | (71.4 | ) | 26.1 | (97.5 | ) | ||||||||||
| Adjusted EBITDA(1)(2) | 60.5 | 52.4 | 8.1 | ||||||||||||
| Net (Loss) Income Attributable to Shareholders | (49.2 | ) | 5.7 | (54.9 | ) | ||||||||||
| (Loss) Earnings Per Diluted Share | (0.71 | ) | 0.08 | (0.79 | ) | ||||||||||
(1) | See definition of Adjusted EBITDA and reconciliation elsewhere in this release. | |
(2) |
Excludes impact of Coal Mining non-cash impairment charge of | |
Total revenues fell 7.8 percent to
The second quarter 2014 operating loss of
Net loss attributable to shareholders was
SEGMENT RESULTS
Domestic Coke
Domestic Coke consists of cokemaking facilities and heat recovery
operations at our Jewell,
| Three Months Ended | ||||||||||||||
| Increase/ | ||||||||||||||
| (In millions, except per ton amounts) | 2014 | 2013 | (Decrease) | |||||||||||
| Segment Revenues | $ | 344.5 | $ | 375.8 | $ | (31.3 | ) | |||||||
| Adjusted EBITDA(1) | 64.3 | 61.3 | 3.0 | |||||||||||
| Sales Volume (in thousands of tons) | 1,059 | 1,074 | (15 | ) | ||||||||||
| Adjusted EBITDA per ton(1) | $ | 60.72 | $ | 57.08 | 3.64 | |||||||||
(1) | See definitions of Adjusted EBITDA and Adjusted EBITDA per Ton and reconciliation elsewhere in this release. | |
-
Segment revenues were affected by the pass-through of lower coal costs
and lower coke sales volumes at Haverhill and
Indiana Harbor . -
Adjusted EBITDA increased
$3.0 million , due to a higher fee per ton of coke sold atIndiana Harbor and improved performance atGranite City , partly offset by lower coal-to-coke yields and higher costs at our Haverhill facility.
Brazil Coke
Brazil Coke consists of a cokemaking facility in Vitória,
-
Segment Adjusted EBITDA increased
$0.9 million to$2.5 million on higher production.
-
Adjusted EBITDA declined
$1.3 million for a loss of$0.5 million in second quarter 2014. The Adjusted EBITDA loss per ton was$12 per ton. Import competition fromChina continues to depress coke pricing inIndia , resulting in weak margins. India Coke's net loss in second quarter 2014 was$0.9 million versus a loss of$0.2 million in the same prior year period.
Coal Mining (excluding impact of impairment charge)
Coal Mining consists of our metallurgical coal mining activities
conducted in
| Three Months Ended | ||||||||||||||||
| Increase/ | ||||||||||||||||
| (In millions, except per ton amounts) | 2014 | 2013 | (Decrease) | |||||||||||||
| Total Coal Mining Revenues(1) | $ | 42.9 | $ | 52.7 | $ | (9.8 | ) | |||||||||
| Segment Revenues (excluding sales to affiliates) | $ | 7.5 | $ | 19.8 | $ | (12.3 | ) | |||||||||
| Adjusted EBITDA(1) | $ | (1.2 | ) | $ | (2.6 | ) | $ | 1.4 | ||||||||
| Coal Production (in thousands of tons)(2) | 336 | 367 | (31 | ) | ||||||||||||
| Sales Volumes (in thousands of tons)(3) | 419 | 457 | (38 | ) | ||||||||||||
| Sales Price per ton (excludes transportation costs) | $ | 98.64 | $ | 114.18 | $ | (15.54 | ) | |||||||||
| Adjusted EBITDA per ton(1) | $ | (2.86 | ) | $ | (5.69 | ) | $ | 2.83 | ||||||||
| (1) | See definitions of Adjusted EBITDA, Adjusted EBITDA per Ton and reconciliation elsewhere in this release. | |
| (2) | Includes production from Company and contract-operated mines. | |
| (3) | Includes sales to affiliates. | |
-
Total Coal Mining revenues (including sales to affiliates) fell as a
result of a nearly
$16 per ton decline in average coal sales price and lower volumes. Excluding sales to affiliates, segment revenues were down on lower average sales price and sales volumes. The difference between coal sales volumes and coal production in second quarter 2014 was due to an increase in raw coal purchases. -
Adjusted EBITDA reflects the negative impact of lower average sales
price and volumes, offset by a
$4.3 million favorable fair value adjustment to aHarold Keene Coal Co., Inc. (HKCC) contingent consideration arrangement and $4 per ton reduction in cash production costs. - Effective third quarter 2014, the Coal Mining segment will be considered as "held for sale" and will be reflected as discontinued operations for future financial reporting.
Coal Logistics
The Coal Logistics segment consists of the coal handling and blending
services operated by SXCP as a result of its acquisitions of
-
Coal Logistics handled 5,605 thousand tons of coal, contributing
$5.0 million to Adjusted EBITDA.
Corporate and Other
Corporate and other expenses in second quarter 2014 were
Interest Expense, Net
Net interest expense increased
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 4.2 million tons
-
Excluding impairment charge and costs related to the exit from our
Coal Mining segment, consolidated Adjusted EBITDA is expected to be
between
$220 million and$240 million . Adjusted EBITDA attributable to SXC is expected to be between$160 million and $177 million -
Adjusted EBITDA from continuing operations is expected to be between
$235 million and$255 million -
Capital expenditures are projected to be
$138 million . Approximately $36 million of the projected 2014 capital expenditures were pre-funded with the proceeds from SXCP's initial public offering inJanuary 2013
RELATED COMMUNICATIONS
We will host a investor conference call on
UPCOMING EVENTS
We plan to participate in the following investor conferences:
-
Citi's 2014
One-on-One MLP/Midstream Infrastructure Conference onAugust 20-21, 2014 inLas Vegas, NV -
Barclays 2014 CEO
Energy-Power Conference onSeptember 2-4, 2014 inNew York, NY -
Deutsche Bank’s 22nd Annual
Leveraged Finance Conference onSeptember 29-October 1, 2014 inScottsdale, AZ
DEFINITIONS
- Adjusted EBITDA represents earnings before interest, taxes, depreciation, depletion and amortization (“EBITDA”) adjusted for asset and goodwill impairment, 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 Operations | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| 2014 | 2013 | 2014 | 2013 | ||||||||||||
(Dollars and shares in millions, | |||||||||||||||
| Revenues | |||||||||||||||
| Sales and other operating revenue | $ | 371.7 | $ | 403.6 | $ | 729.7 | $ | 855.1 | |||||||
| Other income | 0.5 | 0.1 | 2.1 | 2.5 | |||||||||||
| Total revenues | 372.2 | 403.7 | 731.8 | 857.6 | |||||||||||
| Costs and operating expenses | |||||||||||||||
| Cost of products sold and operating expenses | 290.0 | 332.4 | 594.0 | 714.8 | |||||||||||
| Selling, general and administrative expenses | 21.9 | 21.8 | 43.8 | 42.4 | |||||||||||
| Depreciation, depletion and amortization | 28.6 | 23.4 | 57.6 | 47.3 | |||||||||||
| Asset and goodwill impairment | 103.1 | — | 103.1 | — | |||||||||||
| Total costs and operating expenses | 443.6 | 377.6 | 798.5 | 804.5 | |||||||||||
| Operating (loss) income | (71.4 | ) | 26.1 | (66.7 | ) | 53.1 | |||||||||
| Interest expense, net | 27.1 | 12.1 | 39.2 | 27.9 | |||||||||||
| (Loss) income before income tax (benefit) expense and loss from equity method investment | (98.5 | ) | 14.0 | (105.9 | ) | 25.2 | |||||||||
| Income tax (benefit) expense | (50.8 | ) | 1.1 | (55.0 | ) | 5.9 | |||||||||
| Loss from equity method investment | 0.9 | 0.2 | 1.5 | 0.2 | |||||||||||
| Net (loss) income | (48.6 | ) | 12.7 | (52.4 | ) | 19.1 | |||||||||
| Less: Net income attributable to noncontrolling interests | 0.6 | 7.0 | 4.6 | 11.3 | |||||||||||
| Net (loss) income attributable to | $ | (49.2 | ) | $ | 5.7 | $ | (57.0 | ) | $ | 7.8 | |||||
|
(Loss) earnings attributable to | |||||||||||||||
| Basic | $ | (0.71 | ) | $ | 0.08 | $ | (0.82 | ) | $ | 0.11 | |||||
| Diluted | $ | (0.71 | ) | $ | 0.08 | $ | (0.82 | ) | $ | 0.11 | |||||
| Weighted average number of common shares outstanding: | |||||||||||||||
| Basic | 69.5 | 70.0 | 69.6 | 70.0 | |||||||||||
| Diluted | 69.5 | 70.2 | 69.6 | 70.2 | |||||||||||
| Consolidated Balance Sheets | ||||||||
| 2014 | 2013 | |||||||
| (Unaudited) | ||||||||
(Dollars in millions, | ||||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 204.4 | $ | 233.6 | ||||
| Receivables | 70.3 | 91.5 | ||||||
| Inventories | 140.4 | 135.3 | ||||||
| Income tax receivable | — | 6.6 | ||||||
| Deferred income taxes | 12.6 | 12.6 | ||||||
| Other current assets | 5.7 | 2.3 | ||||||
| Total current assets | 433.4 | 481.9 | ||||||
| Investment in Brazilian cokemaking operations | 41.0 | 41.0 | ||||||
|
Equity method investment in | 58.5 | 56.8 | ||||||
| Properties, plants and equipment, net | 1,499.3 | 1,544.1 | ||||||
| Lease and mineral rights, net | 18.7 | 52.8 | ||||||
| Goodwill and other intangible assets, net | 18.9 | 25.4 | ||||||
| Deferred charges and other assets | 47.4 | 41.9 | ||||||
| Total assets | $ | 2,117.2 | $ | 2,243.9 | ||||
| Liabilities and Equity | ||||||||
| Accounts payable | $ | 121.8 | $ | 154.3 | ||||
| Accrued liabilities | 52.3 | 69.5 | ||||||
| Short-term debt, including current portion of long-term debt | 13.0 | 41.0 | ||||||
| Interest payable | 14.9 | 18.2 | ||||||
| Income taxes payable | 3.3 | — | ||||||
| Total current liabilities | 205.3 | 283.0 | ||||||
| Long-term debt | 652.5 | 648.1 | ||||||
| Accrual for black lung benefits | 32.2 | 32.4 | ||||||
| Retirement benefit liabilities | 34.5 | 34.8 | ||||||
| Deferred income taxes | 305.9 | 376.6 | ||||||
| Asset retirement obligations | 18.4 | 17.9 | ||||||
| Other deferred credits and liabilities | 16.3 | 18.8 | ||||||
| Total liabilities | 1,265.1 | 1,411.6 | ||||||
| Equity | ||||||||
|
Preferred stock, | — | — | ||||||
|
Common stock, | 0.7 | 0.7 | ||||||
|
Treasury stock 1,755,355 shares at | (30.0 | ) | (19.9 | ) | ||||
| Additional paid-in capital | 536.6 | 446.9 | ||||||
| Accumulated other comprehensive loss | (11.7 | ) | (14.1 | ) | ||||
| Retained earnings | 86.8 | 143.8 | ||||||
|
Total | 582.4 | 557.4 | ||||||
| Noncontrolling interests | 269.7 | 274.9 | ||||||
| Total equity | 852.1 | 832.3 | ||||||
| Total liabilities and equity | $ | 2,117.2 | $ | 2,243.9 | ||||
| Consolidated Statements of Cash Flows | ||||||||
| (Unaudited) | ||||||||
| Six Months Ended | ||||||||
| 2014 | 2013 | |||||||
| (Dollars in millions) | ||||||||
| Cash Flows from Operating Activities: | ||||||||
| Net (loss) income | $ | (52.4 | ) | $ | 19.1 | |||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||
| Asset and goodwill impairment | 103.1 | — | ||||||
| Depreciation, depletion and amortization | 57.6 | 47.3 | ||||||
| Deferred income tax (benefit) expense | (69.9 | ) | 3.4 | |||||
| Payments in excess of expense for retirement plans | (0.5 | ) | (0.9 | ) | ||||
| Share-based compensation expense | 5.3 | 3.6 | ||||||
| Excess tax benefit from share-based awards | (0.2 | ) | — | |||||
| Loss from equity method investment | 1.5 | 0.2 | ||||||
| Changes in working capital pertaining to operating activities: | ||||||||
| Receivables | 21.2 | 10.5 | ||||||
| Inventories | (5.1 | ) | 21.5 | |||||
| Accounts payable | (32.5 | ) | 6.4 | |||||
| Accrued liabilities | (17.2 | ) | (16.2 | ) | ||||
| Interest payable | (3.3 | ) | 2.7 | |||||
| Income taxes | 10.1 | (5.9 | ) | |||||
| Other | (2.9 | ) | (2.7 | ) | ||||
| Net cash provided by operating activities | 14.8 | 89.0 | ||||||
| Cash Flows from Investing Activities: | ||||||||
| Capital expenditures | (77.8 | ) | (61.4 | ) | ||||
|
Equity method investment in | — | (67.7 | ) | |||||
| Net cash used in investing activities | (77.8 | ) | (129.1 | ) | ||||
| Cash Flows from Financing Activities: | ||||||||
|
Net proceeds from issuance of common units of | 88.7 | 237.8 | ||||||
| Proceeds from issuance of long-term debt | 268.1 | 150.0 | ||||||
| Repayment of long-term debt | (260.1 | ) | (225.0 | ) | ||||
| Debt issuance costs | (6.7 | ) | (6.0 | ) | ||||
| Proceeds from revolving facility | 40.0 | — | ||||||
| Repayment of revolving facility | (72.0 | ) | — | |||||
| Cash distribution to noncontrolling interests | (14.8 | ) | (6.3 | ) | ||||
| Shares repurchased | (10.1 | ) | (2.4 | ) | ||||
| Proceeds from exercise of stock options | 0.5 | 0.9 | ||||||
| Excess tax benefit from share-based awards | 0.2 | — | ||||||
| Net cash provided by financing activities | 33.8 | 149.0 | ||||||
| Net (decrease) increase in cash and cash equivalents | (29.2 | ) | 108.9 | |||||
| Cash and cash equivalents at beginning of period | 233.6 | 239.2 | ||||||
| Cash and cash equivalents at end of period | $ | 204.4 | $ | 348.1 | ||||
| Segment Financial and Operating Data | ||||||||||||||||
The following tables set forth financial and operating data for
the three and six months ended | ||||||||||||||||
| ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| (Dollars in millions) | ||||||||||||||||
| Sales and other operating revenues: | ||||||||||||||||
| Domestic Coke | $ | 344.5 | $ | 375.8 | $ | 678.0 | $ | 804.0 | ||||||||
| Brazil Coke | 8.9 | 8.0 | 18.2 | 17.7 | ||||||||||||
| 0.1 | — | 0.1 | — | |||||||||||||
| Coal Mining | 7.5 | 19.8 | 14.0 | 33.4 | ||||||||||||
| Coal Mining intersegment sales | 35.4 | 32.9 | 69.3 | 65.1 | ||||||||||||
| Coal Logistics | 10.7 | — | 19.4 | — | ||||||||||||
| Coal Logistics intersegment sales | 4.5 | — | 8.7 | — | ||||||||||||
| Elimination of intersegment sales | (39.9 | ) | (32.9 | ) | (78.0 | ) | (65.1 | ) | ||||||||
| Total | $ | 371.7 | $ | 403.6 | $ | 729.7 | $ | 855.1 | ||||||||
| Adjusted EBITDA (1): | ||||||||||||||||
| Domestic Coke | $ | 64.3 | $ | 61.3 | $ | 111.1 | $ | 122.4 | ||||||||
| Brazil Coke | 2.5 | 1.6 | 4.2 | 3.2 | ||||||||||||
| (0.5 | ) | 0.8 | (0.4 | ) | 0.8 | |||||||||||
| Coal Mining | (1.2 | ) | (2.6 | ) | (9.2 | ) | (7.2 | ) | ||||||||
| Coal Logistics | 5.0 | — | 7.1 | — | ||||||||||||
| Corporate and Other | (9.6 | ) | (8.7 | ) | (18.7 | ) | (14.5 | ) | ||||||||
| Total | $ | 60.5 | $ | 52.4 | $ | 94.1 | $ | 104.7 | ||||||||
| Coke Operating Data: | ||||||||||||||||
| Domestic Coke capacity utilization (%) | 100 | 102 | 95 | 101 | ||||||||||||
| Domestic Coke production volumes (thousands of tons) | 1,059 | 1,081 | 2,003 | 2,132 | ||||||||||||
| Domestic Coke sales volumes (thousands of tons)(2) | 1,059 | 1,074 | 2,007 | 2,132 | ||||||||||||
| Domestic Coke Adjusted EBITDA per ton(3) | $ | 60.72 | $ | 57.08 | $ | 55.36 | $ | 57.41 | ||||||||
| Brazilian Coke production—operated facility (thousands of tons) | 413 | 217 | 665 | 433 | ||||||||||||
| Indian Coke sales (thousands of tons)(4) | 85 | 26 | 207 | 26 | ||||||||||||
| Coal Operating Data(5): | ||||||||||||||||
| Coal sales volumes (thousands of tons): | ||||||||||||||||
| Internal use | 340 | 281 | 667 | 558 | ||||||||||||
| Third parties | 79 | 176 | 150 | 272 | ||||||||||||
| Total | 419 | 457 | 817 | 830 | ||||||||||||
| Coal production (thousands of tons) | 336 | 367 | 642 | 716 | ||||||||||||
| Purchased coal (thousands of tons) | 139 | 91 | 230 | 109 | ||||||||||||
| Coal sales price per ton (excludes transportation costs)(6) | $ | 98.64 | $ | 114.18 | $ | 98.83 | $ | 117.33 | ||||||||
| Coal cash production cost per ton(7) | $ | 112.93 | $ | 117.36 | $ | 115.48 | $ | 121.96 | ||||||||
| Purchased coal cost per ton(8) | $ | 101.24 | $ | 109.34 | $ | 102.75 | $ | 107.32 | ||||||||
| Total coal production cost per ton(9) | $ | 113.23 | $ | 127.49 | $ | 121.20 | $ | 133.36 | ||||||||
| Coal Logistics Operating Data: | ||||||||||||||||
| Tons handled (thousands of tons) | 5,605 | $ | — | 9,964 | $ | — | ||||||||||
| Coal Logistics Adjusted EBITDA per ton handled(10) | $ | 0.89 | $ | — | $ | 0.71 | $ | — | ||||||||
| (1) | See definition of Adjusted EBITDA and reconciliation to GAAP elsewhere in this release. | |
| (2) |
Excludes 22 thousand tons of cosigned coke sales in the six months
ended | |
| (3) | Reflects Domestic Coke Adjusted EBITDA divided by Domestic Coke sales volumes. | |
| (4) | Represents 100% of VISA SunCoke sales volumes. | |
| (5) | Includes production from Company and contract-operated mines. | |
| (6) |
Includes sales to affiliates. The transfer price per ton to our
Jewell cokemaking facility was | |
| (7) | Mining and preparation costs, excluding depreciation, depletion and amortization, divided by coal production volume. | |
| (8) | Costs of purchased raw coal divided by purchased coal volume. | |
| (9) |
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 | |
| (10) | Reflects Coal Logistics Adjusted EBITDA divided by Coal Logistics tons handled. | |
| Reconciliations of Non-GAAP Information | |||||||||||||||
| Adjusted EBITDA to Net Income | |||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||
| 2014 | 2013 | 2014 | 2013 | ||||||||||||
| (Dollars in millions) | |||||||||||||||
|
Adjusted EBITDA attributable to | $ | 46.0 | $ | 41.7 | $ | 70.3 | $ | 85.6 | |||||||
| Add: Adjusted EBITDA attributable to noncontrolling interest(1) | 14.5 | 10.7 | 23.8 | 19.1 | |||||||||||
| Adjusted EBITDA | 60.5 | 52.4 | $ | 94.1 | $ | 104.7 | |||||||||
| Subtract: | |||||||||||||||
| Adjustments to unconsolidated affiliate earnings(2) | 1.1 | 1.0 | 2.1 | 1.0 | |||||||||||
| Depreciation, depletion and amortization | 28.6 | 23.4 | 57.6 | 47.3 | |||||||||||
| Interest expense, net | 27.1 | 12.1 | 39.2 | 27.9 | |||||||||||
| Income tax (benefit) expense | (50.8 | ) | 1.1 | (55.0 | ) | 5.9 | |||||||||
| Sales discounts provided to customers due to sharing of nonconventional fuel tax credits (3) | — | 2.1 | (0.5 | ) | 3.5 | ||||||||||
| Asset and goodwill impairment | 103.1 | 103.1 | |||||||||||||
| Net income | $ | (48.6 | ) | $ | 12.7 | $ | (52.4 | ) | $ | 19.1 | |||||
| (1) |
Reflects non-controlling interest in | |
| (2) | Reflects estimated share of interest, taxes, depreciation and amortization related to VISA SunCoke. | |
| (3) |
At | |
Consolidated - Estimated 2014 Adjusted EBITDA to Estimated Net Income | ||||||||
| 2014 | ||||||||
| Low | High | |||||||
| Net Income | $ | (30 | ) | $ | (10 | ) | ||
| Depreciation, depletion and amortization(1) | 115 | 105 | ||||||
| Interest expense, net | 68 | 65 | ||||||
| Income tax expense | (39 | ) | (29 | ) | ||||
| EBITDA | $ | 114 | $ | 131 | ||||
| Sales discounts | (1 | ) | (1 | ) | ||||
| Adjustment to unconsolidated affiliate earnings(2) | 4 | 7 | ||||||
| Goodwill and asset impairment charges | 103 | 103 | ||||||
| Adjusted EBITDA | $ | 220 | $ | 240 | ||||
| EBITDA attributable to noncontrolling interests(3) | (60 | ) | (63 | ) | ||||
| Adjusted EBITDA attributable to SXC | $ | 160 | $ | 177 | ||||
| (1) | Excludes depreciation, depletion and amortization in the Coal Mining segment for 2H 2014. | |
| (2) | Represents SXC share of India JV interest, taxes and depreciation expense. | |
| (3) |
Represents Adjusted EBITDA attributable to SXCP public unitholders
and to DTE Energy's interest in | |
Continuing Operations (excluding Coal Mining Segment) - Estimated 2014 Adjusted EBITDA to Estimated Net Income | ||||||||
| 2014 | ||||||||
| Low | High | |||||||
| Net Income | $ | 49 | $ | 69 | ||||
| Depreciation, depletion and amortization(1) | 100 | 95 | ||||||
| Interest expense, net | 68 | 65 | ||||||
| Income tax expense | 15 | 20 | ||||||
| EBITDA | $ | 232 | $ | 249 | ||||
| Sales discounts | (1 | ) | (1 | ) | ||||
| Adjustment to unconsolidated affiliate earnings(2) | 4 | 7 | ||||||
| Adjusted EBITDA | $ | 235 | $ | 255 | ||||
| EBITDA attributable to noncontrolling interests(3) | (60 | ) | (63 | ) | ||||
| Adjusted EBITDA attributable to SXC | $ | 175 | $ | 192 | ||||
| (1) | Excludes depreciation, depletion and amortization in Coal Mining segment for FY 2014. | |
| (2) | Represents SXC share of India JV interest, taxes and depreciation expense. | |
| (3) |
Represents Adjusted EBITDA attributable to SXCP public unitholders
and to DTE Energy's interest in | |
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