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Exhibit 99.1
Investors and Media:
Andy Kellogg & Kory Kutzke
(630) 824-1907
SUNCOKE ENERGY, INC. ANNOUNCES STRONG FULL-YEAR 2018 RESULTS ABOVE GUIDANCE RANGE AND PROVIDES GUIDANCE FOR FURTHER GROWTH IN 2019
| Net income attributable to SXC was $1.8 million, or $0.03 per share, and $26.2 million, or $0.40 per share, in fourth quarter and full-year 2018, respectively |
| Operating cash flow was $185.8 million in full-year 2018, above our guidance of $150 million to $165 million; operating cash flow was $15.2 million in fourth quarter 2018 |
| Full-year 2018 consolidated Adjusted EBITDA increased $28.5 million, or 12.1 percent, to $263.2 million, above our guidance range of $240 million to $255 million; fourth quarter Adjusted EBITDA was $65.9 million; 2018 results were fueled by a strong Indiana Harbor performance |
| Full-year 2019 consolidated Adjusted EBITDA expected to be $265 million to $275 million |
LISLE, Ill. (February 5, 2019) - SunCoke Energy, Inc. (NYSE: SXC) (the Company) today reported fourth quarter and full-year 2018 results, reflecting strong operating performances from our coke and logistics businesses.
Our fourth quarter results contributed to the Companys highest annual Adjusted EBITDA performance since 2012 and illustrate the strength of our businesses as well as the continued progress on our asset performance improvement initiatives, said Mike Rippey, President and Chief Executive Officer of SunCoke Energy, Inc. In 2018, we delivered strong operating results, which included exceptional operational improvement at Indiana Harbor driven by sound execution on our oven rebuild initiative as well as record volumes at Convent Marine Terminal.
Looking forward, the Company expects 2019 consolidated Adjusted EBITDA to be between $265 million and $275 million, reflecting continued improvement in our coke and logistics businesses.
In addition, the Company also announced it has entered into a definitive merger agreement with SunCoke Energy Partners, L.P. (NYSE: SXCP) whereby SXC will acquire all outstanding common units of SXCP not already owned by SXC in a stock-for-unit exchange transaction (Simplification Transaction). Pursuant to the terms of the merger agreement, SXCP unaffiliated common unitholders will receive 1.40 SXC common shares for each SXCP common unit.
Rippey continued, As we move forward into 2019, we remain focused on operational excellence, including the execution of the final phase of the Indiana Harbor rebuild initiative, as well as successfully completing the Simplification Transaction, which we believe will unlock our full potential. We are confident that we can again execute against our objectives and deliver significant value to SunCoke shareholders.
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The 2017 period also benefited from $4.6 million of lower employee-related and other costs and the $2.2 million favorable impact of period-over-period, mark-to-market adjustments in deferred compensation driven by changes in the Company's share price and the Partnership's unit price.
Additionally, revenue and Adjusted EBITDA benefited from improved operational coal-to-coke yields, primarily at our Indiana Harbor facility in 2017 and again in 2018 as the facility realized benefits from the oven rebuild initiative.
The increase was primarily driven by higher volumes, including higher production bonuses as described above and favorable translation adjustments.
Sales volumes increased over 180 thousand tons in 2018, primarily due to improved operating performance from rebuilt ovens at Indiana Harbor.
In 2017, sales volumes were 105 thousand tons lower than in 2016 and were negatively impacted by ovens that were out of service in connection with the ongoing oven rebuild initiative at Indiana Harbor as well as a decrease in volumes to AK Steel, for which AK Steel provided make whole payments.
Cash Flow Summary The following...Read more
The improvement in 2017 as...Read more
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During the first quarter of...Read more
This improvement was driven by...Read more
The remaining increase of $1.0...Read more
Management believes Adjusted EBITDA is...Read more
Revenues and the impact of...Read more
(2) The increase during 2018...Read more
The increase in sales and...Read more
Additionally, there was a favorable...Read more
To the extent permitted by...Read more
Sales and other operating revenue...Read more
The improvement included a $4.5...Read more
Additionally, we had outstanding surety...Read more
Interest expense in 2018 reflects...Read more
Further contributing to the decrease...Read more
The remaining improvement was driven...Read more
Ongoing capital expenditures do not...Read more
The Company successfully delivered against...Read more
A purchase obligation is an...Read more
(1) The discount rate is...Read more
Our future results and financial...Read more
The increase in related interest...Read more
The increase reflects improved operations...Read more
This measure is not in...Read more
For a reconciliation of these...Read more
Additionally, in May 2018, Moody?s...Read more
Key assumptions in our goodwill...Read more
Financial Statements, Disclosures and Schedules
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Suncoke Energy, Inc. provided additional information to their SEC Filing as exhibits
Ticker: SXC
CIK: 1514705
Form Type: 10-K Annual Report
Accession Number: 0001514705-19-000003
Submitted to the SEC: Fri Feb 15 2019 3:20:12 AM EST
Accepted by the SEC: Fri Feb 15 2019
Period: Monday, December 31, 2018
Industry: Steel Works Blast Furnaces And Rolling Mills Coke Ovens