Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - SunCoke Energy, Inc. | d292921d8k.htm |
| EX-99.1 - PRESS RELEASE DATED FEBRUARY 2, 2012 - SunCoke Energy, Inc. | d292921dex991.htm |
 Q4 2011
Earnings Conference Call February 2, 2012
Exhibit 99.2 |
 Safe Harbor
Statement This slide presentation should be reviewed in conjunction with SunCoke’s
Fourth Quarter 2011 earnings release and conference call held on February 2, 2012 at
4:30 p.m. ET. Some of the information included in this presentation contains
“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). Such forward-looking statements are based on management’s beliefs
and assumptions and on information currently available. Forward-looking statements include the information
concerning SunCoke’s possible or assumed future results of operations, business
strategies, financing plans, competitive position, potential growth opportunities,
potential operating performance improvements, effects resulting from our separation from Sunoco, the effects of
competition and the effects of future legislation or regulations. Forward-looking
statements include all statements that are not historical facts and may be identified
by the use of forward-looking terminology such as the words “believe,”
“expect,”
“plan,”
“intend,”
“anticipate,”
“estimate,”
“predict,”
“potential,”
“continue,”
“may,”
“will,”
“should”
or the negative of these terms or similar expressions. Forward-looking
statements involve risks, uncertainties and assumptions. Actual results may differ materially
from those expressed in these forward-looking statements. You should not put undue
reliance on any forward-looking statements. In accordance with the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995, SunCoke 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 SunCoke. For more
information concerning these factors, see SunCoke's Securities and Exchange Commission
filings. All forward-looking statements included in
this presentation are expressly qualified in their entirety by such cautionary statements.
SunCoke undertakes no obligation to update publicly any forward-looking statement
(or its associated cautionary language) whether as a result of new information or future events or
otherwise.
This presentation includes certain non-GAAP financial measures intended to supplement, not
substitute for, comparable GAAP measures. Reconciliations of non-GAAP financial
measures to GAAP financial measures are provided in the Appendix at the end of the presentation.
Investors are urged to consider carefully the comparable GAAP measures and the reconciliations
to those measures provided in the Appendix, or on our website at www.suncoke.com.
Fourth Quarter 2011 Earnings Conference Call
1 |
 Overview
Fourth Quarter 2011 Earnings Conference Call
•
Q4 2011 and Full Year 2011 missed expectations due to unfavorable
impact of $12.2 million (net of income attributable to noncontrolling
interests) in accounting adjustments at Indiana Harbor
•
Q4 2011 Net Income attributable to shareholders of $8.0 million and
EPS of $0.12 per share
•
Full Year Net Income attributable to shareholders of $60.6 million
and EPS of $0.87 per share
•
Q4 2011 Adjusted EBITDA of $31.4 million and Full Year 2011
Adjusted EBITDA of $140.5 million
•
Executed successful startup of Middletown in late October
•
Continued strong domestic coke plant performance
•
Full Year 2011 Coal Mining Adjusted EBITDA increased $28M over 2010
•
Solid year end liquidity position with cash balance of $128 million and
undrawn revolver
•
Separation from Sunoco, Inc. completed on January 17, 2012
•
Elected three new independent directors to the Board
2 |
 Indiana Harbor
Accounting Adjustments Fourth Quarter 2011 Earnings Conference Call
3
•
Combined adjustments reduced annual incentive accrual by $1.1 million in
Corporate Segment; consolidated impact of $11.1 million in Q4 2011 and Full
Year 2011
Contract Billing Resolution
•
In late January 2012,
customer questioned 2011
invoicing
•
Accepted customer
interpretation; will adjust
2011 and go-forward billing
accordingly
•
$7.0 million unfavorable
impact to 2011 pre-tax
earnings ($6.0 million net of
noncontrolling interests)
•
Taking measures to mitigate
impact in 2012 and 2013
Inventory Adjustment
•
Adjustment for coal and coke
inventory accounting
•
Understated cost of goods
sold/overstated inventory in
second half 2011
•
$7.3 million unfavorable
impact to 2011 pre-tax
earnings ($6.2 million net of
noncontrolling interests), of
which $3.6 million attributable
to Q3 2011
•
Instituting corrective actions |
 Q4 2011 &
Full Year 2011 Financial Results (1) Coke Adjusted EBITDA includes Adjusted
EBITDA from Jewell Coke, Other Domestic Coke, and International segments. (2)
Coal Adjusted EBITDA includes Adjusted EBITDA from Coal Mining segment. (3)
For a
definition
of
Adjusted
EBITDA
and
reconciliation
of
Adjusted
EBITDA
to
net
income
and
operating
income,
please
see
the
appendix.
Fourth Quarter 2011 Earnings Conference Call
•
Q4 2011 Adjusted EBITDA
decreased YoY:
Q4 2010 impact of
Legal/Settlement costs
Coal Mining
profitability
Indiana Harbor
adjustments
Black Lung charge and
corporate costs
•
Full Year 2011 Adjusted
EBITDA decreased YoY:
ArcelorMittal Settlement
Standalone corporate
and relocation costs
Coal Mining profitability
4
($ in millions)
Q4 '10
2011
2010
Q4 '11 vs.
Q4 '10
2011 vs.
2010
Revenue
$424.1
$317.2
$1,538.9
$1,326.5
$106.9
$212.4
Operating Income
$11.7
$15.8
$67.5
$174.2
($4.1)
($106.7)
Net Income Attributable to
Shareholders
$8.0
$18.5
$60.6
$139.2
($10.5)
($78.6)
Earnings Per Share
$0.12
$0.26
$0.87
$1.99
($0.14)
($1.12)
Coke Adjusted EBITDA
(1)
$42.9
$46.6
$160.7
$245.0
($3.7)
($84.3)
Coal Adjusted EBITDA
(2)
$1.7
($7.8)
$24.0
($3.6)
$9.5
$27.6
Corporate/Other
($13.2)
($4.1)
($44.2)
($14.1)
($9.1)
($30.1)
Adjusted EBITDA
(3)
$31.4
$34.7
$140.5
$227.3
($3.3)
($86.8)
Domestic Coke Sales Volumes
1,003
912
3,770
3,638
91
132
Coal Sales Volumes
363
321
1,454
1,277
42
177
Q4 '11 |
 Q4 2010 to Q4
2011 Adjusted EBITDA
(1)
Bridge
Adjusted EBITDA decrease reflects Indiana Harbor adjustments, higher corporate
costs and Black Lung Liability charge, offset by improved performance in Coal Mining and
the absence of ArcelorMittal legal/settlement costs
($ in millions)
Fourth Quarter 2011 Earnings Conference Call
5
$34.7
$31.4
$10.2
$12.9
($12.2)
($6.5)
($6.0)
($1.7)
Q4 2010
Adjusted
EBITDA
Indiana Harbor
Adjustments
Corporate/Other
(Relocation/
Standalone) (2)
Black Lung
Liability Charge
Coke Segments
(Jewel Coke
Other Domestic Coke/
International)(3)
Net ArcelorMittal
Settlement Impact
Coal Mining (2) (3)
Q4 2011
Adjusted
EBITDA
(1) For a definition of Adjusted EBITDA and reconciliation of Adjusted EBITDA to net
income and operating income, please see the appendix. (2) Excludes Black Lung
Liability charge (3) Jewell Coke includes approximately $0.2 million in
favorable coal transfer impact, Coal Mining includes offsetting $0.2 million unfavorable coal transfer impact. |
 $44.8
$31.4
$3.8
$8.5
($12.2)
($6.0)
($3.8)
($2.9)
($0.8)
Q3 2011 to Q4 2011
Adjusted EBITDA
(1)
Bridge
Adjusted EBITDA decrease reflects Indiana Harbor adjustments, Black Lung Liability charge,
and higher Coal Mining costs, offset by lower corporate expenses
and preferred dividend accrual in International segment
($ in millions)
6
Fourth Quarter 2011 Earnings Conference Call
Q3 2011
Adjusted
EBITDA
Indiana Harbor
Adjustments
Black Lung
Liability Charge
Coal Mining (2)(4)
Jewell Coke (2)
Other Domestic
Coke (3)
Corporate and
Other(4)
International
(Preferred
Dividend Accrual)
Q4 2011
Adjusted
EBITDA
(1)
For a definition of Adjusted EBITDA and reconciliation of Adjusted EBITDA to net income and operating
income, please see the appendix. (2)
Jewell Coke includes approximately $0.4 million in unfavorable coal transfer impact, Coal Mining
includes offsetting $0.4 million favorable coal transfer impact. (3)
Other Domestic Coke includes Middletown decreasing results by approximately $0.4 million.
(4)
Excludes Black Lung Liability charge and Corporate and Other includes Middletown losses.
|
 $227.3
$140.5
$31.0
($34.7)
($23.9)
($28.5)
($12.2)
($7.3)
($11.2)
Full Year 2010 to 2011
Adjusted EBITDA
(1)
Bridge
Adjusted EBITDA decrease reflects impact of ArcelorMittal settlement and higher corporate
costs,
offset by improved Coal Mining results
($ in millions)
Fourth Quarter 2011 Earnings Conference Call
7
2010
Adjusted
EBITDA
Net ArcelorMittal
Settlement Impact
Corporate/Other
(Relocation/
Standalone Costs)
(2)(4)
Jewell Coke (3)
(ex-settlement)
Indiana Harbor
Adjustments
Other Domestic
Coke
(ex-settlement)(4)
Other
(Black Lung/
Middletown/
International)
Coal Mining (2)(3)
2011
Adjusted
EBITDA
(1) For a definition of Adjusted EBITDA and reconciliation of Adjusted EBITDA to net
income and operating income, please see the appendix. (2)
Excludes Black Lung Liability charge
(3)
Jewell Coke includes approximately $16.0 million in unfavorable coal transfer impact,
Coal Mining includes offsetting $16.0 million favorable coal transfer impact.
(4)
Excludes Middletown losses |
 Domestic Coke
Financial Summary (Jewell Coke & Other Domestic Coke)
Domestic Coke Production
Domestic Coke Pro Forma Adjusted EBITDA
(1)
, Pro Forma for
ArcelorMittal Settlement and Coal Transfer Price
(Tons in thousands)
($ in millions, except per ton amounts)
Other
Domestic
Coke:
736
Other
Domestic
Coke:
745
Other
Domestic
Coke:
786
915
922
965
(1) For a definition of Pro Forma Adjusted EBITDA and Pro Forma Adjusted EBITDA/Ton
and a reconciliation of Pro Forma Adjusted EBITDA to operating income, please
see the appendix. (2) Other Domestic Coke results for Q4 ‘11 excludes
Middletown loss of approximately $0.4 million. (3) Includes Indiana Harbor
contract billing resolution of $6.0 million and inventory adjustment of $6.2 million,
of which $3.1 million is attributable to Q3 ’11.
Fourth Quarter 2011 Earnings Conference Call
Other
Domestic
Coke:
687
861
$48
$36
$19
•
Q4 ‘11 increase over Q4 ‘10 reflects Middletown startup
and improvement at Indiana Harbor
•
Q4 ‘11 performance impacted by Indiana Harbor
accounting adjustments
1,014
Other
Domestic
Coke:
838
$42
$32
8
(2)
(3)
$11
$11
$11
$14
$11
$31
$8
$25
$34
$21
$46/ton
$22/ton
$39/ton
$50/ton
$34/ton
$ 0
$ 20
$ 40
$ 60
$ 80
$ 100
$ 120
$ 140
($5)
$5
$15
$25
$35
$45
$55
$65
$75
Q4 '10
Q1 '11
Q2 '11
Q3 '11
Q4 '11
Jewell Coke Segment
Other Domestic Coke Segment
Pro Forma Adjusted EBITDA/ton |
 Coal Mining
Financial Summary Coal Sales, Production and Purchases
Cost/Ton
(Tons in thousands)
Coal
Mining
Coal
Cash
Cost
(1)
($ per ton)
(1)
Mining and preparation costs, excluding depreciation, depletion and amortization,
divided by coal production volume. Q4 ‘11 excludes $300K reduction in fair value of HKCC
contingent consideration liability, $1.8M of OPEB expense allocation and $3.4M Black
Lung Liability charge.
Fourth Quarter 2011 Earnings Conference Call
•
Q4 2011 Coal operations delivered
highest production levels of year on
increases at Jewell and HKCC
•
Coal Cash Costs continued to
increase QoQ despite higher
production
•
Additional staffing in Q4 2011
at Jewell
•
Contract mining incentives
•
Jewell Q4 2011 also impacted
by royalty true-up and
employee retention costs
•
Full Year Jewell Coal Cash Costs
remained high at $138/ton
66
323
308
256
269
337
272
HKCC production
49
HKCC third-party sales
26
84
48
68
53
76
310
273
9
(1)
321
386
334 340
371
363
259
335
340
349
57
51
24
22
20
Q4 '10
Q1 '11
Q2 '11
Q4 '11
Coal sales
Coal production
Coal purchases
$123
$116
$126
$132
$138
$123
$123
$137
$138
$152
Q4 '10
Q1 '11
Q2 '11
Q3 '11
Q4 '11
Jewell
Coal
Cash
Cost
Q3 '11 |
 Coal Mining
Financial Summary Coal Mining Pro Forma Adjusted EBITDA
(1)
and Avg. Sales
Price/Ton
(2)
Pro Forma for Coal Transfer Price Impact
($ in millions, except per ton amounts)
Pro Forma Adjusted EBITDA
Pro Forma Adjusted EBITDA / ton
Fourth Quarter 2011 Earnings Conference Call
•
Q4 2011 Pro Forma Adjusted EBITDA
declined QoQ due to higher Coal Cash
Costs offset partially by higher average
sales pricing
•
Q4 2011 Pro Forma Adjusted EBITDA
improved by $9 million YoY on higher
coal prices and HKCC acquisition
•
$5.2 million of costs from Black
Lung Liability charge and OPEB
expense allocation
•
2012 Mid-Vol. coal volumes 88%
committed at
approximately
$177 per ton
•
Expect Full Year 2012 Coal Cash Costs
to be approximately $125-$130 per ton
combined (Jewell/HKCC/Revelation)
and $135 per ton for Jewell
Pro Forma Sales Price (2)
Coal Cash Cost per Ton
(3) Q4 ‘11 Pro Forma Adjusted EBITDA inclusive of Black Lung Liability
charge of $3.4 million and OPEB expense allocation of $1.8 million.
10
(1)
For a definition of Pro Forma Adjusted EBITDA and a reconciliation of ProForma Adjusted
EBITDA to operating income, please see the appendix.
(2)
Average Sales Price is the weighted average sales price for all coal sales volumes, includes
sales to affiliates and sales to Jewell Coke established via a transfer pricing agreement. The
transfer price per ton to Jewell Coke was $103.86, $133.57, $156.12, $163.53, and
$162.05 for Q4 ‘10, Q1 ‘11, Q2 ’11, Q3 ‘11, and Q4 ‘11
respectively. Pro Forma Sales Price is the Average Sales Price adjusted to set the
internal transfer price on Jewell Coke coal purchase volumes equal to the Jewell Coke
coal component contract price. The per ton coal cost component included in the Jewell
Coke contract was approximately $100, $165, $165, $165 and $165 for Q4 ‘10,
Q1 ‘11, Q2 ’11, Q3 ’11 and Q4 ‘11, respectively. |
 Fourth Quarter 2011 Earnings Conference Call
Pretax Return on Invested Capital
11
1)
For
a
definition
of
Pretax
ROIC,
please
see
the
definitions
page
in
the
appendix.
2)
Pretax
ROIC
is
calculated
as
Pro
Forma
Adjusted
Pretax
Operating
Income
divided
by
average
invested
capital
(stockholders’
equity
plus
total
debt
net
of
cash
and cash equivalents); for a reconciliation of Adjusted Pretax Operating Income to Pro Forma
Adjusted EBITDA, please see appendix. 3)
IncludesIndiana Harbor contract billing resolution of $6.0 million and inventory adjustment of
$6.2 million, of which $3.1 million is attributable to Q3 ’11. 16%
Pretax ROIC, ex-Middletown
(1)(2)
2009
2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
2011
Total Domestic Coke (Includes Jewell Coke and Other Domestic Coke)
10%
17%
2%
15%
24%
21%
15%
International Coke
59%
35%
9%
8%
19%
114%
35%
Coal Mining
140%
32%
46%
28%
20%
-4%
22%
Total SunCoke (Including Corp./Other)
19%
17%
4%
11%
16%
14%
11%
2%
15%
24%
21%
10%
17%
15%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
2009
2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
2011
Pretax ROIC
(1)(2)
:
Domestic Coke, ex-
Middletown
(3)
(3)
14% |
 $14.1
$44.2
$14.9
$7.2
$4.4
$3.6
2010
Standalone Costs
Relocation
Costs
Business Development/
Black Lung/
Legal/Other
Middletown
2011
2012E
Full Year 2011 Corporate (Adjusted EBITDA)
Fourth Quarter 2011 Earnings Conference Call
2011 corporate costs primarily reflect costs associated with becoming a standalone company
and
relocation
costs;
2012
corporate
costs
expected
to
be
between
$30
-
$35
million
($ in millions)
$30 -
$35
12 |
 Liquidity
Update Fourth Quarter 2011 Earnings Conference Call
•
Began decrease of 2011 working
capital build in Q4 2011
•
Targeting lower coal
inventories and sale of
cover coke
•
Borrowed incremental $30 million
from existing term loan facility,
due in 2018
•
Provides additional flexibility
to finance ongoing and
expansion projects
•
Expect 2012 free cash flow of
$50+ million, weighted to the
second half of 2012
•
Intend to build liquidity in near
term to support potential future
growth projects
(1) Free Cash Flow represents cash from operations less cash from investing less
payments to minority interest. For a definition of Free
Cash Flow and a reconciliation of Free Cash Flow, please see the appendix. (2)
For a definition of Adjusted
EBITDA
and
reconciliation
of
Adjusted
EBITDA
to
net
income
and
operating
income,
please
see
the
appendix.
13
Summary Cash Flow
($ in millions, except where indicated)
Net Income
$8
$59
$146
Loss on firm purchase commitment
(0)
18
-
Depreciation, depletion, and amortization
16
58
48
Deferred income tax expense
9
24
15
Payments (in excess of) less than expense for retirement plans
6
6
(6)
Changes in working capital pertaining to operating activities
4
(61)
91
Other
0
(3)
2
Net cash provided by operations
$42
$101
$297
Capital Expenditures
Ongoing
($28)
($59)
($46)
Expansion
(25)
(179)
(170)
Proceeds from sale of assets
-
-
2
Acquisition of business, net of cash received
(0)
(38)
-
Net cash used in investing activities
($54)
($276)
($214)
Proceeds from issuance of long-term debt/costs/repayments
$28
$707
$0
Contribution from parent
-
-
$1
Purchase of noncontrolling interest in Indiana Harbor facility
-
(34)
-
Distributions to noncontrolling interests in cokemaking operations
(0)
(2)
(21)
Increase (decrease) in advances/payable to/from affiliate
-
(408)
(25)
Repayment of notes payable assumed in acquisition
-
(2)
-
Net cash provided by (used in) financing activities
$28
$262
($45)
Net increase in cash
$16
$87
$36
Cash balance at beginning of period
$111
$40
$3
Cash balance at end of period
$128
$128
$40
Free Cash Flow
(1)
($12)
($177)
$62
Liquidity and leverage ratios as of December 31, 2011
Undrawn revolver
$150
Total liquidity
$278
Total Debt
$726
Total Debt / Adj. EBITDA
(2)
4.8x
Net Debt
$598
Net Debt / Adj. EBITDA
(2)
3.9x
For the
Three
Months
Ended
December
31, 2011
For the
Twelve
Months
Ended
December
31, 2011
For the
Twelve
Months
Ended
December
31, 2010 |
 Tax
Overview Fourth Quarter 2011 Earnings Conference Call
14
•
SunCoke entered tax sharing
agreement with Sunoco
(SUN) as part of separation
•
Provides SUN with right to
use SunCoke NOLs while
consolidated for periods
prior to January 17, 2012
(distribution date)
•
Provides SUN with right to
elect Middletown bonus
depreciation rate
•
Limits ability of SunCoke to
restructure business and
repurchase shares within 2
years of Distribution
•
SunCoke indemnifies SUN
against tax-related liabilities
related to separation
•
Additional Q4 2011 reduction of deferred
tax assets and equity of ~ $100M
•
SunCoke retains future NOLs/tax credits
•
Tax credits primary driver of lower
effective rate (20-24% for 2012);
migrating toward higher statutory rate as
credit eligibility exhausted
•
SunCoke 2011 NOL from Middletown
bonus depreciation likely used by SUN
•
Expect cash tax rate of 10% to 15% in
2012
•
Limited ability to restructure coal mining
business
•
Potential for limited coke business
restructuring
•
Limited ability for share repurchases
Tax Sharing Agreement
Balance
Sheet/
Effective Tax
Rate Impacts
Cash Tax Rate
Impacts
Restructuring
Restrictions
within
2
Years
of
Distribution |
 2012
Priorities Fourth Quarter 2011 Earnings Conference Call
•
Execute the ramp up of Middletown; expect to reach full production
levels in Q2 2012
•
Achieve targeted coke production volumes of 4.0 to 4.2 million tons
•
Continue permitting work for potential new U.S. plant in anticipation of a
market recovery
•
Implement India entry strategy by completing due diligence and
negotiating definitive agreements
•
Drive improved productivity at existing mines; mining a
projected
1.8 million tons and positioning segment for future expansion
15 |
 2012 Outlook
Summary Metric
Expected 2012 Outlook
Adjusted EBITDA
(1)
$250 million –
$280 million
Capital Expenditures
& Investments
Approximately $150 million
Free Cash Flow
(2)
$50 million +
Cash Tax Rate
10% –
15%
Effective Tax Rate
20% –
24%
Corporate Costs
$30 million -
$35 million
Coke Production
4.0 -
4.2 million tons
Coal Production
Approximately 1.8 million tons
EPS (at 22% tax rate)
$1.30 -
$1.65
(1) For a definition of Adjusted EBITDA, please see the appendix
(2) For a definition of Free Cash Flow, please see the appendix
Fourth Quarter 2011 Earnings Conference Call
16 |
 Strategy for
Shareholder Value Creation Fourth Quarter 2011 Earnings Conference Call
17
Operational Excellence
•
Rigorous execution in
existing operations
•
Maintain focus on
safety and environment
•
Deliver returns through
strong, consistent coke
earnings and optimize
coal operations
Grow The Coke Business
•
Domestic
•
Secure permits for
next potential facility
•
Capitalize on aging
domestic capacity,
demand growth and
import displacement
•
International
•
Execute India entry
and pursue follow-on
growth
•
Continue evaluating
China for potential
entry
Potential Structuring
Alternatives
•
Coke MLP
•
Domestic assets well
suited and expected to
qualify
•
Will evaluate in 2012
•
Coal
•
Aggressively manage
the business
•
Optimize value in near
term and enhance
strategic flexibility |
 Questions
Fourth Quarter 2011 Earnings Conference Call
18 |
 Appendix
Fourth Quarter 2011 Earnings Conference Call
19 |
 Definitions
Fourth Quarter 2011 Earnings Conference Call
20 |
  21
2012E
Low
2012E
High
Net Income
$98
$122
Depreciation, Depletion and Amortization
74
72
Total financing costs, net
48
46
Income tax expense
25
37
EBITDA
$245
$277
Sales discounts
11
10
Noncontrolling interests
(6)
(7)
Adjusted EBITDA
$250
$280
Estimated EBITDA Reconciliation, $MM
2012E Net Income to Adjusted EBITDA Reconciliation
Fourth Quarter 2011 Earnings Conference Call |
 22
EBITDA and Pretax ROIC Reconciliation, $MM
Fourth Quarter 2011 Earnings Conference Call
For The Year Ended 2011 |
 23
EBITDA and Pretax ROIC Reconciliation, $MM
Fourth Quarter 2011 Earnings Conference Call
For The Three Months Ended December 31, 2011 |
 EBITDA and
Pretax ROIC Reconciliation, $MM For The Three Months Ended September 30,
2011 Fourth Quarter 2011 Earnings Conference Call
24 |
 EBITDA and
Pretax ROIC Reconciliation, $MM For The Three Months Ended June 30, 2011
Fourth Quarter 2011 Earnings Conference Call
25 |
 EBITDA and
Pretax ROIC Reconciliation, $MM For The Three Months Ended March 31, 2011
Fourth Quarter 2011 Earnings Conference Call
26 |
 EBITDA and
Pretax ROIC Reconciliation, $MM For The Year Ended 2010
Fourth Quarter 2011 Earnings Conference Call
27 |
 EBITDA and
Pretax ROIC Reconciliation, $MM For The Three Months Ended December 31,
2010 Fourth Quarter 2011 Earnings Conference Call
28 |
 EBITDA and
Pretax ROIC Reconciliation, $MM For The Year Ended 2009
Fourth Quarter 2011 Earnings Conference Call
29 |
 Free Cash Flow
Reconciliation, $MM Fourth Quarter 2011 Earnings Conference Call
30 |
 Fourth Quarter 2011 Earnings Conference Call
Pretax Return on Invested Capital Reconciliation, $MM
For the period ended
Consolidated Sun Coke Energy
2011
Q4 2011
Q3 2011
Q2 2011
Q1 2011
2010
2009
2008
Adjusted Pretax Operating Income
(1)
$80.4
$14.9
$33.4
$24.6
$7.4
$151.5
$148.4
$111.7
Invested Capital
Q4 2011
Q3 2011
Q2 2011
Q1 2011
2010
2009
2008
Long-term Debt (including current portion)
$726.4
$697.8
$794.7
$715.7
$655.3
$145.3
$109.6
Total equity
559.9
604.5
457.3
433.4
429.3
815.6
636.9
Less: Cash and cash equivalents
(127.5)
(110.9)
(30.5)
(11.0)
(40.1)
(2.7)
(23.0)
Less: Middletown Identifiable Assets
(402.8)
(387.6)
(346.1)
(286.7)
(242.2)
(72.5)
(47.1)
Invested Capital
$756.0
$803.8
$875.4
$851.5
$802.4
$885.6
$676.4
Average Invested Capital
$817.8
$779.9
$839.6
$863.4
$826.9
$844.0
$781.0
Q4 2011
Q3 2011
Q2 2011
Q1 2011
2010
2009
2008
Annualized Quarterly Pretax ROIC
7.6%
15.9%
11.4%
3.6%
Last Twelve Months' Pretax ROIC
9.8%
18.0%
19.0%
For the period ended
Long-term Debt (Prior to Separation / IPO)
Q2 2011
Q1 2011
2010
2009
2008
Interest receivable from affiliate
(3.6)
(1.8)
0.0
0.0
0.0
Notes receivable from affiliate
(289.0)
(289.0)
(289.0)
(289.0)
(289.0)
Advances from affiliate
1,087.3
1,006.5
944.3
434.3
398.6
Total Debt
794.7
715.7
655.3
145.3
109.6
(1) See Adjusted EBITDA and Pretax ROIC Reconciliation for respective
periods 31 |
 Fourth Quarter 2011 Earnings Conference Call
Pretax Return on Invested Capital Reconciliation, $MM
32
Period ended
Jewell
Coke
Other
Domestic
Coke
International
Coke
Coal
Mining
Corporate
and Other
Total
Identifiable Assets for
Allocating Invested Capital
Q4 2011
$81.6
$991.8
$62.8
$182.1
$220.8
$1,539.0
Q3 2011
77.7
990.6
52.7
178.3
192.3
1,491.6
Q2 2011
85.1
954.4
53.6
173.5
67.2
1,333.9
Q1 2011
82.6
922.6
61.2
167.2
48.9
1,282.6
2010
80.9
962.6
59.7
76.7
7.3
1,187.3
2009
82.7
972.1
59.2
67.6
3.7
1,185.2
2008
93.1
772.6
49.0
56.0
6.1
976.8
Invested Capital Allocation Percentage
Q4 2011
6.2%
75.2%
4.8%
13.8%
NMF
100.0%
Q3 2011
6.0%
76.2%
4.1%
13.7%
NMF
100.0%
Q2 2011
6.7%
75.4%
4.2%
13.7%
NMF
100.0%
Q1 2011
6.7%
74.8%
5.0%
13.6%
NMF
100.0%
2010
6.9%
81.6%
5.1%
6.5%
NMF
100.0%
2009
7.0%
82.3%
5.0%
5.7%
NMF
100.0%
2008
9.6%
79.6%
5.0%
5.8%
NMF
100.0%
Allocated Invested Capital
Q4 2011
$46.8
$568.8
$36.0
$104.4
-
$756.0
Q3 2011
48.1
612.9
32.6
110.3
-
803.8
Q2 2011
58.8
659.6
37.0
119.9
-
875.4
Q1 2011
57.0
636.8
42.3
115.4
-
851.5
2010
55.0
654.6
40.6
52.1
-
802.4
2009
62.0
728.7
44.4
50.6
-
885.6
2008
64.9
538.3
34.1
39.0
-
676.4
Note: Excludes Middletown in all periods shown; at the end of Q4 2011, identifiable assets
included in Other Domestic Coke attributable to Middletown were $402.8m (prior
to Q4 2011, Middletown was included in the Corporate and Other segment); see
historical segment detail in public filings for additional detail
|
 Media releases and SEC filings are available
on our website at www.suncoke.com
Contact Investor Relations for more information: 630-824-1907
Fourth Quarter 2011 Earnings Conference Call
33 |