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Exhibit 99.1
Investors and Media:
Shantanu Agrawal
(630) 824-1907
SUNCOKE ENERGY, INC. REPORTS THIRD QUARTER 2019 RESULTS
| Third quarter 2019 net loss attributable to SXC was $163.0 million, or $1.81 per share, reflecting the impact of non-cash impairment related charges at Logistics, net of taxes, of $174.8 million, or $1.94 per share. Excluding the non-cash charges, adjusted net income attributable to SXC was $11.8 million, or $0.13 per share. |
| Adjusted EBITDA for the quarter was $66.7 million, up $0.7 million versus the prior year period |
| Extinguished $50.0 million face value of outstanding 2025 Senior Notes; gross leverage at 3.0x (based on LTM EBITDA) |
| Beginning in early August, repurchased approximately 2.1 million shares during the third quarter under the existing share repurchase program |
| Board of Directors authorized a new $100 million share repurchase program. Repurchases under the new program may commence following completion of SunCokes existing repurchase program. |
| Lowering full-year 2019 Consolidated Adjusted EBITDA guidance range to $240 million to $250 million reflecting the chapter 11 bankruptcy filing by one of our CMT coal export customers |
LISLE, Ill. (November 5, 2019) - SunCoke Energy, Inc. (NYSE: SXC) today reported results for the third quarter 2019, reflecting the continued strong performance of the Domestic Coke segment and customer challenges facing the Logistics segment.
In the third quarter, cokemaking operations performed at a high level and delivered excellent results, partially driven by the success of our oven rebuild program at Indiana Harbor, said Mike Rippey, President and Chief Executive Officer of SunCoke Energy, Inc. In our Coal Logistics segment, we experienced a meaningful shift in the operating environment as one of the two coal export customer filed for bankruptcy and the other continues to explore potential restructuring alternatives. This development led us to lower our guidance for the full year and record a non-cash impairment charge in the current quarter.
Rippey continued, Going forward, while we navigate through these difficult market conditions, we remain committed to our logistics business and are continuing to optimize asset performance across our businesses to generate significant value for SunCoke stakeholders in the long term. Despite the challenges in our logistics business, we continue to deliver strong cash flows and are committed to prioritizing capital allocation, as demonstrated by the 2.1 million shares repurchased during the quarter and the new $100 million share repurchase authorization approved by our Board.
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(3) Favorable recovery of operating and maintenance costs benefited Adjusted EBITDA during both the three and nine months ended September 30, 2019.
Current period results reflect lower legal costs and favorable deferred compensation expense.
Selling, general and administrative expenses benefited from lower legal costs and favorable deferred compensation caused by decreases in the Company's share price during the three and nine months ended September 30, 2019.
The following table sets forth a summary of the net cash provided by (used in) operating, investing and financing activities for the nine months ended September 30, 2019 and 2018: Cash Flows from Operating Activities Net cash provided by operating activities decreased by $50.1 million to $120.5 million for the nine months ended September 30, 2019 as compared to the corresponding prior year period.
Interest expense, net was higher during the three months ended September 30, 2019, due to the absence of capitalized interest on the environmental remediation project in the third quarter of 2019.
While we expect the U.S....Read more
The following table provides details...Read more
Sales and other operating revenue...Read more
These coke sales agreements have...Read more
As a result of the...Read more
Cash Flows from Investing Activities...Read more
Cash Flows from Financing Activities...Read more
Dividend Effective November 5, 2019,...Read more
The resulting undiscounted cash flows...Read more
(2) The loss during the...Read more
$ (158 ) $ (151...Read more
Management believes Adjusted EBITDA is...Read more
Net (loss) income attributable to...Read more
Corporate and Other Adjusted EBITDA...Read more
The increase in depreciation and...Read more
Deferred revenue will be recognized...Read more
Repurchases under the new program...Read more
With the closing of the...Read more
Intangible assets are amortized over...Read more
(2) Higher coal prices resulted...Read more
As a result, the Company...Read more
The Simplification Transaction was accounted...Read more
Long-Lived Assets Long-lived assets are...Read more
The impairment recognized is the...Read more
Ongoing capital expenditures do not...Read more
The coke sales agreement and...Read more
Inventory levels increased during 2019...Read more
These benefits were offset by...Read more
The Company concluded the impact...Read more
Share Repurchase Programs Since September...Read more
Billings to CMT customers for...Read more
This measure is not in...Read more
The impact of the decline...Read more
Additionally, in May 2019, Moody's...Read more
Income Tax (Benefit) Expense....Read more
Financial Statements, Disclosures and Schedules
Inside this 10-Q Quarterly Report
Material Contracts, Statements, Certifications & more
Suncoke Energy, Inc. provided additional information to their SEC Filing as exhibits
Ticker: SXC
CIK: 1514705
Form Type: 10-Q Quarterly Report
Accession Number: 0001514705-19-000022
Submitted to the SEC: Tue Nov 05 2019 7:10:49 AM EST
Accepted by the SEC: Tue Nov 05 2019
Period: Monday, September 30, 2019
Industry: Steel Works Blast Furnaces And Rolling Mills Coke Ovens