SunCoke Energy Partners, L.P. Announces Solid Third Quarter 2015 Results and Increases Full Year 2015 Guidance
-
Net income attributable to SXCP and Adjusted EBITDA remained
relatively flat year-on-year at $19.5 million and $51.8 million,
respectively
-
Adjusted EBITDA attributable to SXCP increased $12.3 million to $49.9
million reflecting our acquired interest in the Granite City coke
facility and the acquisition of Convent Marine Terminal
-
Distributable cash flow totaled $31.8 million in third quarter 2015,
benefiting from the Convent Marine Terminal and Granite City dropdown
transactions
-
Increased full year outlook for 2015 Adjusted EBITDA attributable to
SunCoke Energy Partners to $185 million to $190 million and 2015
distributable cash flow to $110 million to $116 million
-
Repurchased $10 million of units and declared tenth consecutive
quarterly distribution increase
SunCoke Energy Partners, L.P. (NYSE:SXCP) today reported third quarter
2015 net income attributable to SXCP of $19.5 million as compared to
$20.2 million in the same prior year period. The quarter's results
reflect the Granite City cokemaking facility dropdown and Convent Marine
Terminal transactions, offset by higher financing costs and the impact
of the idling of our customer's facility, Haverhill Chemicals LLC, with
whom we have a steam supply agreement.
“The acquisition of the Convent Marine Terminal had an immediate
positive impact on results, adding $5.4 million to the quarter’s
Adjusted EBITDA,” said Fritz Henderson, Chairman, President and Chief
Executive Officer of SunCoke Energy Partners, L.P. “We are excited about
Convent's expected contribution to our existing Coal Logistics business
and are increasing 2015 Adjusted EBITDA attributable to SunCoke Energy
Partners guidance to $185 million to $190 million as a result of this
and the Granite City dropdown transaction.”
Henderson continued, “The strength and stability of our cash flows,
underpinned by solid operating results and the security of our long-term
take-or-pay contracts, has supported our ability to increase cash
distributions per unit for ten consecutive quarters. Looking ahead, we
expect the Convent and Granite City transactions will drive incremental
cash flow, which we intend to deploy on accretive opportunities to drive
unitholder value.”
THIRD QUARTER RESULTS
|
|
Three Months Ended September 30,
|
(Dollars in millions)
|
|
2015
|
|
2014
|
|
Decrease
|
Revenues(1)
|
|
$
|
210.2
|
|
|
$
|
216.8
|
|
|
$
|
(6.6
|
)
|
Operating income(1)
|
|
$
|
33.7
|
|
|
$
|
38.8
|
|
|
$
|
(5.1
|
)
|
Adjusted EBITDA (1)(2)
|
|
$
|
51.8
|
|
|
$
|
52.5
|
|
|
$
|
(0.7
|
)
|
Net income attributable to SXCP(3)
|
|
$
|
19.5
|
|
|
$
|
20.2
|
|
|
$
|
(0.7
|
)
|
(1) Includes 100 percent of Granite City in third quarter 2015 and 2014.
(2)
See definition of Adjusted EBITDA and reconciliation elsewhere in this
release.
(3) Net income attributable to SXCP includes the impacts
of SXCP's 75 percent ownership interest in Granite City from July 1,
2015 through August 11, 2015 and SXCP's 98 percent ownership interest in
Granite City from August 12, 2015 through September 30, 2015,
respectively.
Revenues were $210.2 million in third quarter 2015, a decline of $6.6
million from the same prior year period primarily due to the
pass-through of lower coal costs in our Domestic Coke segment, partially
offset by revenue generated by our new Convent Marine Terminal.
Operating income and Adjusted EBITDA decreased $5.1 million and $0.7
million, respectively. The impact on Adjusted EBITDA of our customer's
decision to idle its Haverhill Chemicals LLC facility was mostly offset
by the acquisition of Convent Marine Terminal. Operating income also
reflects higher depreciation and amortization, primarily related to
Convent Marine Terminal.
THIRD 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.
Domestic Coke Results
|
|
Three Months Ended September 30,
|
(Dollars in millions)
|
|
2015
|
2014
|
Decrease
|
Revenues
|
|
$
|
192.4
|
|
$
|
204.8
|
|
$
|
(12.4
|
)
|
Adjusted EBITDA(1)
|
|
$
|
46.6
|
|
$
|
50.2
|
|
$
|
(3.6
|
)
|
Sales Volume (thousands of tons)
|
|
615
|
|
616
|
|
(1
|
)
|
Adjusted EBITDA per ton(1)
|
|
$
|
75.77
|
|
$
|
81.49
|
|
$
|
(5.72
|
)
|
(1) See definitions of Adjusted EBITDA and Adjusted EBITDA per ton and
reconciliation elsewhere in this release.
Adjusted EBITDA declined $3.6 million to $46.6 million in third quarter
2015 primarily driven by the impact of idling of the Haverhill Chemicals
LLC facility, with whom we have a steam supply agreement.
Coal Logistics
Coal Logistics consists of the coal handling and blending services
operated by SXCP at Convent Marine Terminal located on the Mississippi
river in Louisiana, Lake Terminal in East Chicago, IN, and Kanawha River
Terminals, LLC (KRT), which has terminals along the Ohio, Big Sandy and
Kanawha rivers in West Virginia and Kentucky.
Coal Logistics Results
|
|
Three Months Ended September 30,
|
(Dollars in millions)
|
|
2015
|
2014
|
Increase
|
Revenues
|
|
$
|
17.8
|
|
$
|
12.0
|
|
$
|
5.8
|
Adjusted EBITDA(1)
|
|
$
|
10.4
|
|
$
|
3.8
|
|
$
|
6.6
|
Tons handled (thousands of tons)
|
|
5,149
|
|
4,772
|
|
377
|
Adjusted EBITDA per ton(1)
|
|
$
|
2.02
|
|
$
|
0.80
|
|
$
|
1.22
|
(1) See definitions of Adjusted EBITDA and Adjusted EBITDA per ton and
reconciliation elsewhere in this release.
Adjusted EBITDA was up $6.6 million, driven by the $5.4 million
contribution of our recently acquired Convent Marine Terminal facility.
Convent Marine Terminal handled 817 thousand tons during the period.
Corporate and Other
Corporate and other costs increased to $5.2 million, primarily
reflecting acquisition and business development costs.
Interest Expense, net
Interest expense, net, increased $5.6 million to $12.4 million in third
quarter 2015, primarily related to interest incurred on higher debt
balances associated with the Granite City dropdown transactions and the
Convent Marine Terminal acquisition.
RELATED COMMUNICATIONS
We will host an investor conference call at 8:00 a.m. Eastern Time (7:00
a.m. Central Time) today. This conference call will be webcast live and
archived for replay under the Featured Financials section of www.suncoke.com.
Investors may participate on this call by dialing 1-800-446-1671 in the
U.S. or 1-847-413-3362 if outside the U.S., confirmation code 40761283.
UPCOMING EVENTS
Additionally, we plan to to participate in the following events:
-
SunCoke Energy Investor Day, December 17, 2015, New York City, NY
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. The Coal Logistics deferred revenue represents cash received
on Coal Logistics take-or-pay contracts for which revenue has not yet
been recognized under US GAAP. Including Coal Logistics deferred
revenue in Adjusted EBITDA reflects the cash flow of our contractual
arrangements. 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
represents 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 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 and includes capital expenditures included in working
capital at the end of the period.
-
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.sxcpartners.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.
BASIS OF PRESENTATION
On January 13, 2015, we acquired a 75 percent interest in the Granite
City cokemaking operation from SXC. Because this was a transfer between
entities under common control, all historical financial results of
Granite City prior to the dropdown have been included in our financial
results. On August 12, 2015, we acquired an additional 23 percent
interest in the Granite City cokemaking facility. Net income
attributable to SunCoke Energy Partners, L.P./Predecessor includes 100
percent of Granite City net income prior to dropdown, 75 percent after
the January dropdown and 98 percent after dropdown in August. Net income
attributable to Predecessor includes 100% of Granite City net income
prior to the dropdown on January 13, 2015.
|
SunCoke Energy Partners, L.P.
|
Combined and Consolidated Statements of Income
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars and units in millions)
|
Revenues
|
|
|
|
|
|
|
|
|
Sales and other operating revenue
|
|
$
|
210.2
|
|
|
$
|
216.8
|
|
|
$
|
621.1
|
|
|
$
|
649.1
|
Costs and operating expenses
|
|
|
|
|
|
|
|
|
Cost of products sold and operating expenses
|
|
149.7
|
|
|
157.6
|
|
|
452.7
|
|
|
485.3
|
Selling, general and administrative expenses
|
|
9.8
|
|
|
6.7
|
|
|
24.7
|
|
|
20.8
|
Depreciation and amortization expense
|
|
17.0
|
|
|
13.7
|
|
|
47.0
|
|
|
40.3
|
Total costs and operating expenses
|
|
176.5
|
|
|
178.0
|
|
|
524.4
|
|
|
546.4
|
Operating income
|
|
33.7
|
|
|
38.8
|
|
|
96.7
|
|
|
102.7
|
Interest expense, net
|
|
12.4
|
|
|
6.8
|
|
|
43.8
|
|
|
30.1
|
Income before income tax expense
|
|
21.3
|
|
|
32.0
|
|
|
52.9
|
|
|
72.6
|
Income tax expense (benefit)
|
|
0.5
|
|
|
4.9
|
|
|
(2.4
|
)
|
|
9.0
|
Net income
|
|
20.8
|
|
|
27.1
|
|
|
55.3
|
|
|
63.6
|
Less: Net income attributable to noncontrolling interests
|
|
1.3
|
|
|
0.6
|
|
|
5.6
|
|
|
15.1
|
Net income attributable to SunCoke Energy Partners,
L.P./Predecessor
|
|
$
|
19.5
|
|
|
$
|
26.5
|
|
|
$
|
49.7
|
|
|
$
|
48.5
|
Less: Net income attributable to Predecessor
|
|
—
|
|
|
6.3
|
|
|
0.6
|
|
|
13.9
|
Net income attributable to SunCoke Energy Partners, L.P.
|
|
$
|
19.5
|
|
|
$
|
20.2
|
|
|
$
|
49.1
|
|
|
$
|
34.6
|
|
SunCoke Energy Partners, L.P.
|
Combined and Consolidated Balance Sheets
|
|
|
|
|
|
|
|
September 30, 2015
|
|
December 31, 2014
|
|
|
(Unaudited)
|
|
|
|
|
(Dollars in millions)
|
Assets
|
|
|
Cash and cash equivalents
|
|
$
|
61.3
|
|
|
$
|
33.3
|
Receivables
|
|
59.7
|
|
|
36.3
|
Receivables from affiliates, net
|
|
1.9
|
|
|
3.1
|
Inventories
|
|
75.4
|
|
|
90.4
|
Other current assets
|
|
2.9
|
|
|
1.5
|
Total current assets
|
|
201.2
|
|
|
164.6
|
Properties, plants and equipment, net
|
|
1,331.3
|
|
|
1,213.4
|
Goodwill
|
|
69.1
|
|
|
8.2
|
Other intangible assets, net
|
|
190.2
|
|
|
6.9
|
Deferred income taxes
|
|
—
|
|
|
21.6
|
Restricted cash
|
|
21.5
|
|
|
—
|
Deferred charges and other assets
|
|
1.1
|
|
|
2.3
|
Total assets
|
|
$
|
1,814.4
|
|
|
$
|
1,417.0
|
Liabilities and Equity
|
|
|
|
|
Accounts payable
|
|
$
|
51.1
|
|
|
$
|
61.1
|
Accrued liabilities
|
|
20.0
|
|
|
11.2
|
Short-term debt
|
|
1.1
|
|
|
—
|
Interest payable
|
|
8.3
|
|
|
12.3
|
Total current liabilities
|
|
80.5
|
|
|
84.6
|
Long-term debt
|
|
939.8
|
|
|
399.0
|
Deferred income taxes
|
|
38.1
|
|
|
—
|
Asset retirement obligations
|
|
5.6
|
|
|
5.3
|
Other deferred credits and liabilities
|
|
9.1
|
|
|
1.4
|
Total liabilities
|
|
1,073.1
|
|
|
490.3
|
Equity
|
|
|
|
|
Held by public:
|
|
|
|
|
Common units (issued 21,006,495 and 16,789,164 units at September
30, 2015 and December 31, 2014, respectively)
|
|
300.4
|
|
|
239.1
|
Held by parent:
|
|
|
|
|
Common units (issued 9,705,999 and 4,904,752 units at September 30,
2015 and December 31, 2014, respectively)
|
|
209.9
|
|
|
113.8
|
Subordinated units (issued 15,709,697 units at September 30, 2015
and December 31, 2014, respectively)
|
|
201.5
|
|
|
203.7
|
General partner interest
|
|
13.6
|
|
|
9.2
|
Parent net equity
|
|
—
|
|
|
349.8
|
Partners' capital attributable to SunCoke Energy Partners, L.P.
|
|
725.4
|
|
|
915.6
|
Noncontrolling interest
|
|
15.9
|
|
|
11.1
|
Total equity
|
|
741.3
|
|
|
926.7
|
Total liabilities and partners' net equity
|
|
$
|
1,814.4
|
|
|
$
|
1,417.0
|
|
SunCoke Energy Partners, L.P.
|
Combined and Consolidated Statements of Cash Flows
|
(Unaudited)
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
(Dollars in millions)
|
Cash Flows from Operating Activities:
|
|
|
|
|
Net income
|
|
$
|
55.3
|
|
|
$
|
63.6
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
Depreciation and amortization expense
|
|
47.0
|
|
|
40.3
|
|
Deferred income tax (benefit) expense
|
|
(3.1
|
)
|
|
9.0
|
|
Loss on debt extinguishment
|
|
9.4
|
|
|
15.4
|
|
Changes in working capital pertaining to operating activities:
|
|
|
|
|
Receivables
|
|
(28.0
|
)
|
|
(6.0
|
)
|
Receivables from affiliate, net
|
|
2.8
|
|
|
5.6
|
|
Inventories
|
|
16.7
|
|
|
(15.0
|
)
|
Accounts payable
|
|
(4.1
|
)
|
|
(12.8
|
)
|
Accrued liabilities
|
|
1.4
|
|
|
(12.7
|
)
|
Interest payable
|
|
(8.7
|
)
|
|
0.3
|
|
Other
|
|
(0.5
|
)
|
|
(1.1
|
)
|
Net cash provided by operating activities
|
|
88.2
|
|
|
86.6
|
|
Cash Flows from Investing Activities:
|
|
|
|
|
Capital expenditures
|
|
(31.7
|
)
|
|
(57.0
|
)
|
Acquisition of business
|
|
(214.6
|
)
|
|
—
|
|
Net cash used in investing activities
|
|
(246.3
|
)
|
|
(57.0
|
)
|
Cash Flows from Financing Activities:
|
|
|
|
|
Proceeds from issuance of common units of SunCoke Energy Partners,
L.P., net of offering costs
|
|
30.0
|
|
|
90.5
|
|
Proceeds from issuance of long-term debt
|
|
210.8
|
|
|
268.1
|
|
Repayment of long-term debt, including market premium
|
|
(149.8
|
)
|
|
(276.3
|
)
|
Debt issuance costs
|
|
(4.5
|
)
|
|
(5.8
|
)
|
Proceeds from revolving credit facility
|
|
185.0
|
|
|
40.0
|
|
Repayment of revolving facility
|
|
—
|
|
|
(80.0
|
)
|
Distributions to unitholders (public and parent)
|
|
(75.0
|
)
|
|
(54.2
|
)
|
Distributions to noncontrolling interest (SunCoke Energy, Inc.)
|
|
(2.7
|
)
|
|
(20.4
|
)
|
Common public unit repurchases
|
|
(10.0
|
)
|
|
—
|
|
Capital contributions from SunCoke Energy Partners GP LLC
|
|
2.3
|
|
|
0.3
|
|
Net transfers to parent
|
|
—
|
|
|
(11.2
|
)
|
Net cash provided by (used in) financing activities
|
|
186.1
|
|
|
(49.0
|
)
|
Net increase in cash and cash equivalents
|
|
28.0
|
|
|
(19.4
|
)
|
Cash and cash equivalents at beginning of period
|
|
33.3
|
|
|
46.3
|
|
Cash and cash equivalents at end of period
|
|
$
|
61.3
|
|
|
$
|
26.9
|
|
|
SunCoke Energy Partners, L.P.
|
Segment Operating Data
|
|
The following tables set forth financial and operating data for
the three and nine months ended September 30, 2015 and 2014:
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions)
|
Sales and other operating revenues:
|
|
|
|
|
|
|
|
|
Domestic Coke
|
|
$
|
192.4
|
|
|
$
|
204.8
|
|
|
$
|
581.1
|
|
|
$
|
611.7
|
|
Coal Logistics
|
|
17.8
|
|
|
12.0
|
|
|
40.0
|
|
|
37.4
|
|
Coal Logistics intersegment sales
|
|
1.7
|
|
|
1.6
|
|
|
5.0
|
|
|
4.3
|
|
Elimination of intersegment sales
|
|
(1.7
|
)
|
|
(1.6
|
)
|
|
(5.0
|
)
|
|
(4.3
|
)
|
Total
|
|
$
|
210.2
|
|
|
$
|
216.8
|
|
|
$
|
621.1
|
|
|
$
|
649.1
|
|
Adjusted EBITDA(1):
|
|
|
|
|
|
|
|
|
Domestic Coke
|
|
$
|
46.6
|
|
|
$
|
50.2
|
|
|
$
|
137.3
|
|
|
$
|
137.3
|
|
Coal Logistics
|
|
10.4
|
|
|
3.8
|
|
|
18.0
|
|
|
10.9
|
|
Corporate and Other
|
|
(5.2
|
)
|
|
(1.5
|
)
|
|
(10.5
|
)
|
|
(5.7
|
)
|
Total
|
|
$
|
51.8
|
|
|
$
|
52.5
|
|
|
$
|
144.8
|
|
|
$
|
142.5
|
|
Coke Operating Data:
|
|
|
|
|
|
|
|
|
Domestic Coke capacity utilization (%)
|
|
107
|
|
|
109
|
|
|
106
|
|
|
105
|
|
Domestic Coke production volumes (thousands of tons)
|
|
619
|
|
|
629
|
|
|
1,828
|
|
|
1,807
|
|
Domestic Coke sales volumes (thousands of tons)
|
|
615
|
|
|
616
|
|
|
1,826
|
|
|
1,795
|
|
Domestic Coke Adjusted EBITDA per ton(2)
|
|
$
|
75.77
|
|
|
$
|
81.49
|
|
|
$
|
75.19
|
|
|
$
|
76.49
|
|
Coal Logistics Operating Data:
|
|
|
|
|
|
|
|
|
Tons handled (thousands of tons)
|
|
5,149
|
|
|
4,772
|
|
|
13,309
|
|
|
14,736
|
|
Coal Logistics Adjusted EBITDA per ton handled(3)
|
|
$
|
2.02
|
|
|
$
|
0.80
|
|
|
$
|
1.35
|
|
|
$
|
0.74
|
|
(1) See definition of Adjusted EBITDA and reconciliation elsewhere in
this release.
(2) Reflects Domestic Coke Adjusted EBITDA divided by
Domestic Coke sales volumes.
(3) Reflects Coal Logistics Adjusted
EBITDA, inclusive of take-or-pay deferred revenue, 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 September 30,
|
|
Nine Months Ended September 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions)
|
Adjusted EBITDA attributable to SunCoke Energy Partners, L.P.
|
|
$
|
49.9
|
|
|
$
|
37.6
|
|
|
$
|
135.8
|
|
|
$
|
92.0
|
|
Add: Adjusted EBITDA attributable to Predecessor(1)
|
|
—
|
|
|
14.2
|
|
|
1.5
|
|
|
31.6
|
|
Add: Adjusted EBITDA attributable to noncontrolling interest(2)
|
|
1.9
|
|
|
0.7
|
|
|
7.5
|
|
|
18.9
|
|
Adjusted EBITDA
|
|
$
|
51.8
|
|
|
$
|
52.5
|
|
|
$
|
144.8
|
|
|
$
|
142.5
|
|
Subtract:
|
|
|
|
|
|
|
|
|
Depreciation and amortization expense
|
|
17.0
|
|
|
13.7
|
|
|
47.0
|
|
|
40.3
|
|
Interest expense, net
|
|
12.4
|
|
|
6.8
|
|
|
43.8
|
|
|
30.1
|
|
Income tax expense (benefit)
|
|
0.5
|
|
|
4.9
|
|
|
(2.4
|
)
|
|
9.0
|
|
Sales discounts provided to customers due to sharing of
nonconventional fuel tax credits(3)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
Coal Logistics deferred revenue(4)
|
|
1.1
|
|
|
—
|
|
|
1.1
|
|
|
—
|
|
Net income
|
|
$
|
20.8
|
|
|
$
|
27.1
|
|
|
$
|
55.3
|
|
|
$
|
63.6
|
|
Add:
|
|
|
|
|
|
|
|
|
Depreciation and amortization expense
|
|
17.0
|
|
|
13.7
|
|
|
47.0
|
|
|
40.3
|
|
Loss on extinguishment of debt
|
|
—
|
|
|
—
|
|
|
9.4
|
|
|
15.4
|
|
Changes in working capital and other
|
|
(22.1
|
)
|
|
(6.3
|
)
|
|
(23.5
|
)
|
|
(32.7
|
)
|
Net cash provided by operating activities
|
|
$
|
15.7
|
|
|
$
|
34.5
|
|
|
$
|
88.2
|
|
|
$
|
86.6
|
|
(1) Reflects Granite City Adjusted EBITDA prior to the January 13, 2015
dropdown transaction.
(2) Reflects net income attributable to
noncontrolling interest adjusted for noncontrolling interest share of
interest, taxes, income and depreciation.
(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 represents revenue
excluded from sales and other operating income related to the timing of
revenue recognition on the Coal Logistics take-or-pay contracts.
|
SunCoke Energy Partners, L.P.
|
Reconciliations of Non-GAAP Information
|
Estimated 2015 Consolidated Adjusted EBITDA to Estimated Net
Income
and Net Cash Provided by Operating Activities
|
|
|
|
|
|
2015
|
|
|
Low
|
|
High
|
Adjusted EBITDA attributable to SunCoke Energy Partners, L.P.
|
|
$
|
185
|
|
|
$
|
190
|
|
Add: Adjusted EBITDA attributable to noncontrolling interest(1)
|
|
10
|
|
|
10
|
|
Adjusted EBITDA
|
|
$
|
195
|
|
|
$
|
200
|
|
Subtract:
|
|
|
|
|
Depreciation and amortization expense
|
|
65
|
|
|
65
|
|
Interest expense, net
|
|
59
|
|
|
59
|
|
Income tax expense (benefit)
|
|
(2
|
)
|
|
(2
|
)
|
Coal Logistics deferred revenue(2)
|
|
(3
|
)
|
|
(3
|
)
|
Net income
|
|
$
|
76
|
|
|
$
|
81
|
|
Add:
|
|
|
|
|
Depreciation and amortization expense
|
|
65
|
|
|
65
|
|
Loss on extinguishment of debt
|
|
9
|
|
|
9
|
|
Changes in working capital and other
|
|
(5
|
)
|
|
—
|
|
Coal Logistics deferred revenue(2)
|
|
(3
|
)
|
|
(3
|
)
|
Income tax expense
|
|
(2
|
)
|
|
(2
|
)
|
Net cash provided by operating activities
|
|
$
|
140
|
|
|
$
|
150
|
|
(1) Reflects net income attributable to noncontrolling interest adjusted
for noncontrolling interest share of interest, taxes, income and
depreciation.
(2) Coal Logistics deferred revenue represents
revenue excluded from sales and other operating income related to the
timing of revenue recognition on the Coal Logistics take-or-pay
contracts, and reflects take-or-pay volume during the pre-acquisition
period which, for U.S. GAAP purposes, is recognized as earnings at
year-end.
|
SunCoke Energy Partners, L.P.
|
Reconciliations of Non-GAAP Information
|
|
Reconciliation of Adjusted EBITDA and
Distributable Cash Flow to Net Income
|
|
|
|
|
|
Three Months Ended September 30, 2015
|
|
|
(As Reported)
|
|
|
(Dollars in millions)
|
Net cash provided by operating activities
|
|
$
|
15.7
|
|
Less:
|
|
|
Depreciation and amortization expense
|
|
17.0
|
|
Changes in working capital and other
|
|
(22.1
|
)
|
Net income
|
|
$
|
20.8
|
|
|
|
|
Add:
|
|
|
Depreciation and amortization expense
|
|
17.0
|
|
Interest expense, net
|
|
12.4
|
|
Income tax expense
|
|
0.5
|
|
Coal Logistics deferred revenue (1)
|
|
1.1
|
|
Adjusted EBITDA
|
|
$
|
51.8
|
|
|
|
|
Less:
|
|
|
Adjusted EBITDA attributable to noncontrolling interest
|
|
1.9
|
|
Adjusted EBITDA attributable to SXCP
|
|
$
|
49.9
|
|
|
|
|
Less:
|
|
|
Ongoing capex
|
|
2.9
|
|
Replacement capex accrual
|
|
1.8
|
|
Cash interest accrual
|
|
13.0
|
|
Cash tax accrual
|
|
0.4
|
|
Distributable cash flow
|
|
$
|
31.8
|
|
|
|
|
Quarterly Cash Distribution
|
|
$
|
29.6
|
|
Distribution Coverage Ratio(2)
|
|
1.07
|
(1) Coal Logistics deferred revenue represents revenue excluded from
sales and other operating income related to the timing of revenue
recognition on the Coal Logistics take-or-pay contracts.
(2)
Distribution coverage ratio is distributable cash flow divided by cash
distributions to the limited and general partners.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151012005248/en/
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