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December 2017
Exhibit 99.1
Investors and Media:
Jonathan Lock & Ryan Rendino
(630) 824-1987
SUNCOKE ENERGY PARTNERS, L.P. ANNOUNCES FULL-YEAR 2017 RESULTS ABOVE GUIDANCE RANGE
AND PROVIDES GUIDANCE FOR STRONG FULL-YEAR 2018 PERFORMANCE
| Net income attributable to SXCP was $101.5 million in fourth quarter 2017, reflecting benefits associates with the new tax legislation; net loss attributable to SXCP was $18.1 million in full-year 2017, reflecting the net tax impacts of the final regulations on qualifying income and the new tax legislation |
| Operating cash flow was $136.7 million and $24.0 million in the full-year and fourth quarter 2017, with operating cash flow coverage of 1.16x and 0.82x, respectively |
| Full-year 2017 Adjusted EBITDA attributable to SXCP increased $11.6 million, or 5.5%, to $221.3 million, and finished above our guidance range of $210 million to $220 million |
| Adjusted EBITDA attributable to SXCP was $70.8 million in fourth quarter 2017, reflecting record volumes at CMT and the recognition of $16.4 million of deferred revenue on take-or-pay contracts |
| Full-year 2017 Distributable Cash Flow of $127.6 million and Distributable Cash Coverage of 1.08x were both at the top end of our guidance ranges |
| Full-year 2018 Adjusted EBITDA attributable to SXCP guidance of $215 million to $225 million |
LISLE, Ill. (January 31, 2018) - SunCoke Energy Partners, L.P. (NYSE: SXCP) today reported fourth quarter and full-year 2017 results, reflecting improved operating performance and the net impact of tax items discussed above.
A solid fourth quarter contributed to SunCokes success in delivering full-year Adjusted EBITDA above our guidance range, and again illustrated the strength of our coke and logistics businesses, said Mike Rippey, Chairman, President and Chief Executive Officer of SunCoke Energy Partners, L.P. In 2017, our teams delivered strong operating results, which included the continued work on our Granite City gas sharing project as well as our successful efforts to diversify CMTs customer and product base, and also optimized SXCPs capital structure.
Looking forward, the Partnership expects 2018 Adjusted EBITDA attributable to SXCP to be between $215 million and $225 million. This outlook reflects higher logistics volumes, partially offset by our coke business returning to normalized performance as compared to the prior year period.
Rippey continued, As we move into 2018, we will remain focused on operations excellence, including leveraging our unique capabilities at CMT to secure new business. In doing so, I am confident that we can again execute against our objectives and deliver value to SXCP unitholders.
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Expansion capital expenditures to acquire andor construct complementary assets to grow our business and to expand existing facilities as well as capital expenditures made to enable the renewal of a coke sales agreement andor logistics service agreement and on which we expect to earn a reasonable return.
Adjustments to our contingent consideration liability decreased cost of products sold and operating expenses by $1.7 million and $10.1 million in 2017 and 2016, respectively.
The decrease in operating cash flows is primarily driven by the unfavorable year-over-year change in primary working capital, which is comprised of accounts receivable, inventories and accounts payable, of which approximately $25 million was due to fluctuating coal prices and inventory levels.
The decrease in cost of products sold and operating expense in 2016 as compared to 2015 was primarily due to the result of lower coal costs in our Domestic Coke segment.
The increase in cost of products sold and operating expense in 2017 as compared to 2016 was primarily due to higher coal costs associated with higher coal prices in our Domestic Coke segment.
The increase in selling, general...Read more
We secured new volumes at...Read more
Larger decreases to coal inventory...Read more
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The improvement in corporate expenses...Read more
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Below are reconciliations of 2018...Read more
our ability to enter into...Read more
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Management believes Adjusted EBITDA is...Read more
our ability to consummate investments...Read more
The decrease in sales and...Read more
The following table explains year-over-year...Read more
The following table explains year-over-year...Read more
To the extent changes in...Read more
effects of railroad, barge, truck...Read more
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our ability to consummate assets...Read more
our ability to identify acquisitions,...Read more
Logistics delivered Adjusted EBITDA of...Read more
Intangible assets are amortized over...Read more
The increase in sales and...Read more
For a reconciliation of these...Read more
Includes $1.7 million and $10.1...Read more
Intangible assets are primarily comprised...Read more
our ability to enter into...Read more
The impairment recognized is the...Read more
We may be required to...Read more
See Note 16 in our...Read more
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our ability to comply with...Read more
These net cash inflows were...Read more
We had outstanding surety bonds...Read more
We delivered Adjusted EBITDA attributable...Read more
The cash outflows were a...Read more
A purchase obligation is an...Read more
Logistics is expected to continue...Read more
changes in the marketplace that...Read more
changes in the marketplace that...Read more
Net cash used in investing...Read more
This measure is not in...Read more
proposed or final changes in...Read more
Financial Statements, Disclosures and Schedules
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Suncoke Energy Partners, L.P. provided additional information to their SEC Filing as exhibits
Ticker: SXCP
CIK: 1555538
Form Type: 10-K Annual Report
Accession Number: 0001555538-18-000001
Submitted to the SEC: Thu Feb 15 2018 5:03:50 PM EST
Accepted by the SEC: Thu Feb 15 2018
Period: Sunday, December 31, 2017
Industry: Steel Works Blast Furnaces And Rolling Mills Coke Ovens