SunCoke Energy, Inc. Announces Second Quarter 2016 Earnings Date and Change to Definition of Adjusted EBITDA
SunCoke Energy, Inc. (NYSE: SXC) plans to release its second quarter
2016 financial results, including quarterly coke production volumes, on
Thursday, July 28, 2016, before trading opens on the New York Stock
Exchange.
SXC will host its quarterly earnings call at 11:00 am ET on July 28,
2016. The conference call will be webcast live and archived for replay
in the Investors section of www.suncoke.com.
Investors may participate in this call by dialing 1-866-393-4306 in the
U.S. or 1-617-826-1698 if outside the U.S., confirmation code 43197747.
CHANGE TO DEFINITION OF ADJUSTED EBITDA
In response to the Securities & Exchange Commission’s updated
interpretation of the appropriate use of non-GAAP financial measures
(specifically regarding revenue recognition), SXC’s Adjusted EBITDA
definition will no longer include Coal Logistics deferred
revenue. Deferred revenue represents customer payments for quarterly
volume shortfalls against ratable annual contract commitments on Coal
Logistics take-or-pay contracts, which the Company historically included
in Adjusted EBITDA when it was billed. To the extent that deferred
revenue is recorded, it will no longer be reflected in Adjusted EBITDA
until it is recognized as GAAP revenue, typically at the end of the
annual contract period or December 31. This change in definition aligns
Adjusted EBITDA reporting with GAAP accounting treatment and does not
impact SXC’s full-year 2016 consolidated Adjusted EBITDA guidance nor
its annual results.
A recast of the results for the first quarter 2016 is shown below
reflecting this change.
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SunCoke Energy, Inc.
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Reconciliations of Non-GAAP Information
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Adjusted EBITDA to Net Income and Net Cash Provided by Operating
Activities
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Three Months Ended
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March 31, 2016
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As Reported
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Recast
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(Dollars in millions)
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Adjusted EBITDA attributable to SunCoke Energy, Inc.
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$
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28.7
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$
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23.5
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Add: Adjusted EBITDA attributable to noncontrolling interests(1)
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24.3
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20.3
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Adjusted EBITDA
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$
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53.0
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$
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43.8
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Subtract:
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Coal rationalization income(2)
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(0.9
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)
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(0.9
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)
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Depreciation and amortization expense
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28.2
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28.2
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Interest expense, net
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14.0
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14.0
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Gain on extinguishment of debt
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(20.4
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)
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(20.4
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)
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Income tax expense
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3.3
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3.3
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Loss on divestiture of business(3)
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10.7
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10.7
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Coal Logistics deferred revenue(4)
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9.2
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—
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Reduction of contingent consideration(5)
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(3.7
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)
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(3.7
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)
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Net (loss) income
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$
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12.6
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$
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12.6
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Add:
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Loss on divestiture of business(3)
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10.7
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10.7
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Depreciation and amortization expense
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28.2
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28.2
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Deferred income tax expense
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3.2
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3.2
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Gain on extinguishment of debt
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(20.4
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)
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(20.4
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)
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Changes in working capital and other
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(4.9
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)
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(4.9
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)
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Net cash provided by operating activities
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$
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29.4
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$
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29.4
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(1)
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Reflects noncontrolling interest in Indiana Harbor and the portion
of SXCP owned by public unitholders.
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(2)
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Reflects employee severance, contract termination costs and other
costs to idle mines incurred during the execution of our coal
rationalization plan.
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(3)
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Reflects loss recognized in connection with the 2016 disposal of the
coal mining business.
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(4)
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Coal Logistics deferred revenue adjusts for coal and liquid tons the
Partnership did not handle. To the extent that deferred revenue is
recorded, it will no longer be reflected in Adjusted EBITDA until it
is recognized as GAAP revenue, typically at the end of the annual
contract period or December 31.
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(5)
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The Partnership amended its contingent consideration terms with The
Cline Group, which reduced the fair value of the contingent
consideration liability from $7.9 million at December 31, 2015, to
$4.2 million at March 31, 2016, resulting in a $3.7 million gain,
which was excluded from Adjusted EBTIDA.
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ABOUT SUNCOKE ENERGY, INC.
SunCoke Energy, Inc. (NYSE: SXC) supplies high-quality coke to the
integrated steel industry under long-term, take-or-pay contracts that
pass through commodity and certain operating costs to customers. We
utilize an innovative heat-recovery cokemaking technology that captures
excess heat for steam or electrical power generation. We are the sponsor
of SunCoke Energy Partners, L.P. (NYSE: SXCP), a publicly traded master
limited partnership, holding a 2 percent general partner interest,
55 percent limited partnership interest and all of the incentive
distribution rights. Our cokemaking facilities are located in Illinois,
Indiana, Ohio, Virginia, Brazil and India. To learn more about SunCoke
Energy, Inc., visit our website at www.suncoke.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160705005214/en/
Copyright Business Wire 2016
Source: Business Wire
(July 5, 2016 - 6:45 AM EDT)
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