SUNCOKE ENERGY PARTNERS LP LISLE, Ill., July 27, 2017 /PRNewswire/ --
-- Net loss attributable to SXCP was $12.9 million in the second quarter
2017, down $25.0 million versus the prior year period primarily driven
by $19.9 million of debt extinguishment costs related to our debt
refinancing activities in the current year period
-- Adjusted EBITDA attributable to SXCP was $42.2 million for the quarter,
up $1.3 million versus the prior year period
-- Second quarter 2017 Distributable Cash Flow ("DCF") and Distribution
Cash Coverage Ratio ("Cash Coverage") of $18.0 million and 0.61x,
respectively, include $8.4 million repayment of deferred corporate costs
and IDRs to SXC; excluding the repayment, DCF and Cash Coverage were
$26.4 million and 0.89x, respectively
-- Declared second quarter 2017 distribution of $0.5940 per unit
-- Reaffirm full-year 2017 Adjusted EBITDA attributable to SXCP guidance of
$210 million to $220 million
SunCoke Energy Partners, L.P. (NYSE: SXCP) today reported results for the second quarter 2017, which reflect comparable consolidated operating results and current period charges related to debt refinancing completed in the quarter.
"Our second quarter operating performance finished in line with our expectations and positions us to achieve our financial guidance targets in 2017," said Fritz Henderson, Chairman, President and Chief Executive Officer of SunCoke Energy Partners, L.P. "Additionally, in the quarter we successfully completed our debt refinancing which extends our revolver and note maturities and provides the flexibility to execute our growth and capital allocation strategies going forward."
SECOND QUARTER RESULTS
Three Months Ended June 30,
(Dollars in
millions) 2017 2016 Increase/
(Decrease)
--- ---------
Revenues $200.6 $181.4 $19.2
Adjusted
EBITDA(1) $43.0 $41.7 $1.3
Net (loss)
income
attributable
to SXCP $(12.9) $12.1 $(25.0)
------------- ------ ----- ------
(1) See definition of Adjusted
EBITDA and reconciliation
elsewhere in this release.
Revenues in second quarter 2017 increased $19.2 million from the same prior year period, reflecting the pass-through of higher coal prices in our Domestic Coke segment as well as higher sales volumes in our Coal Logistics segment.
Adjusted EBITDA in the quarter increased $1.3 million primarily due to higher sales volumes in our Coal Logistics segment as compared to the same prior year period. This improvement was partially offset by the impacts of a planned outage at our Granite City facility in the current quarter.
Net loss attributable to SXCP in the second quarter 2017 was $12.9 million, compared to a net gain of $12.1 million in the prior year period. This $25.0 million change is primarily driven by $19.9 million of debt extinguishment costs related to our debt refinancing activities in the current year period, compared to $3.5 million of debt extinguishment gains recorded in the prior year period.
SECOND QUARTER SEGMENT INFORMATION
Domestic Coke
Domestic Coke consists of cokemaking facilities and heat recovery operations at our Haverhill, Middletown and Granite City cokemaking facilities, located in Franklin Furnace and Middletown, Ohio, and Granite City, Illinois, respectively.
Three Months Ended June 30,
(Dollars
in
millions,
except
per
ton
amounts) 2017 2016 Increase/
(Decrease)
--- ---------
Revenues $182.0 $167.5 $14.5
Adjusted
EBITDA(1) $37.5 $41.1 $(3.6)
Sales
Volume
(thousands
of
tons) 569 579 (10)
Adjusted
EBITDA
per
ton(2) $65.91 $70.98 $(5.07)
-------- ------ ------ ------
(1) See definition of Adjusted
EBITDA and reconciliation
elsewhere in this release.
(2) Reflects Domestic Coke Adjusted
EBITDA divided by Domestic Coke
sales volumes.
-- Revenues increased $14.5 million, reflecting the pass-through of higher
coal prices in our Domestic Coke segment, partially offset by lower
energy sales due to the planned outage at our Granite City facility in
the current year period.
-- Adjusted EBITDA decreased $3.6 million, driven primarily by lower energy
sales and higher operating and maintenance spend for the planned Granite
City outage described above.
Coal Logistics
Coal Logistics consists of the coal handling and mixing services operated by SXCP at Convent Marine Terminal ("CMT") located on the Mississippi river in Louisiana, Lake Terminal in East Chicago, Indiana and Kanawha River Terminals, LLC ("KRT"), which has terminals along the Ohio and Kanawha rivers in West Virginia.
Three Months Ended June 30,
(Dollars in millions, except per ton amounts) 2017 2016 Increase/
(Decrease)
--------------------------------------------- ---- ---- ----------
Revenues $18.6 $13.9 $4.7
Intersegment sales $1.5 $1.7 $(0.2)
Adjusted EBITDA(1) $9.6 $5.3 $4.3
Tons handled (thousands of tons)(2) 4,909 3,938 971
CMT take-or-pay shortfall tons (thousands of tons)(3) 956 1,616 (660)
-------------------------------- --- ----- ----
(1) See definition of Adjusted
EBITDA and reconciliation
elsewhere in this release.
(2) Reflects inbound tons handled
during the period.
(3) Reflects tons billed under take-
or-pay contracts where
services have not yet been
performed.
-- Revenues and Adjusted EBITDA were up $4.7 million and $4.3 million,
respectively, driven by higher sales volumes at our CMT and KRT
terminals in the current year period.
Corporate and Other
Corporate and other expenses improved $0.6 million to $4.1 million due to lower spending on professional services in the current year period.
RELATED COMMUNICATIONS
We will host our quarterly earnings call at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) today. 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 47072600.
SUNCOKE ENERGY PARTNERS, L.P.
SunCoke Energy Partners, L.P. (NYSE: SXCP) is a publicly traded master limited partnership that manufactures high-quality coke used in the blast furnace production of steel and provides export and domestic coal handling services to the coke, coal, steel and power industries. In our cokemaking business, we utilize an innovative heat-recovery technology that captures excess heat for steam or electrical power generation and have long-term, take-or-pay coke contracts that pass through commodity and certain operating costs. Our coal handling terminals have the collective capacity to blend and transload more than 35 million tons of coal each year and are strategically located to reach Gulf Coast, East Coast, Great Lakes and international ports. SXCP's General Partner is a wholly owned subsidiary of SunCoke Energy, Inc. (NYSE: SXC), which has more than 50 years of cokemaking experience serving the integrated steel industry. To learn more about SunCoke Energy Partners, L.P., visit our website at www.suncoke.com.
DEFINITIONS
-- Adjusted EBITDA represents earnings before interest, loss (gain) on
extinguishment of debt, taxes, depreciation and amortization, adjusted
for changes to our contingent consideration liability related to our
acquisition of CMT and the expiration of certain acquired contractual
obligations. Adjusted EBITDA does not represent and should not be
considered an alternative to net income or operating income under GAAP
and may not be comparable to other similarly titled measures in other
businesses. Management believes Adjusted EBITDA is an important measure
of the operating performance and liquidity of the Partnership's net
assets and its ability to incur and service debt, fund capital
expenditures and make distributions. Adjusted EBITDA provides useful
information to investors because it highlights trends in our business
that may not otherwise be apparent when relying solely on GAAP measures
and because it eliminates items that have less bearing on our operating
performance and liquidity. EBITDA and Adjusted EBITDA are not measures
calculated in accordance with GAAP, and they should not be considered an
alternative to net income, operating cash flow or any other measure of
financial performance presented in accordance with GAAP.
-- Adjusted EBITDA attributable to SXCP equals Adjusted EBITDA less
Adjusted EBITDA attributable to noncontrolling interests.
-- Distributable Cash Flow equals Adjusted EBITDA plus sponsor support and
Coal Logistics deferred revenue; less net cash paid for interest
expense, ongoing capital expenditures, accruals for replacement capital
expenditures and cash distributions to noncontrolling interests; plus
amounts received under the Omnibus Agreement and acquisition expenses
deemed to be Expansion Capital under our Partnership Agreement.
Distributable Cash Flow is a non-GAAP supplemental financial measure
that management and external users of SXCP's financial statements, such
as industry analysts, investors, lenders and rating agencies use to
assess:
-- SXCP's operating performance as compared to other publicly traded
partnerships, without regard to historical cost basis;
-- the ability of SXCP's assets to generate sufficient cash flow to
make distributions to SXCP's unitholders;
-- SXCP's ability to incur and service debt and fund capital
expenditures; and
-- the viability of acquisitions and other capital expenditure projects
and the returns on investment of various investment opportunities.
We believe that Distributable Cash Flow provides useful information to investors in assessing SXCP's financial condition and results of operations. Distributable Cash Flow should not be considered an alternative to net income, operating income, cash flows from operating activities, or any other measure of financial performance or liquidity presented in accordance with GAAP. Distributable Cash Flow has important limitations as an analytical tool because it excludes some, but not all, items that affect net income and net cash provided by operating activities and used in investing activities. Additionally, because Distributable Cash Flow may be defined differently by other companies in the industry, our definition of Distributable Cash Flow may not be comparable to similarly titled measures of other companies, thereby diminishing its utility.
-- Ongoing capital expenditures ("capex") are capital expenditures made to
maintain the existing operating capacity of our assets and/or to extend
their useful lives. Ongoing capex also includes new equipment that
improves the efficiency, reliability or effectiveness of existing
assets. Ongoing capex does not include normal repairs and maintenance,
which are expensed as incurred, or significant capital expenditures. For
purposes of calculating distributable cash flow, the portion of ongoing
capex attributable to SXCP is used and includes capital expenditures
included in working capital at the end of the period.
-- Replacement capital expenditures ("capex") represents an annual accrual
necessary to fund SXCP's share of the estimated costs to replace or
rebuild our facilities at the end of their working lives. This accrual
is estimated based on the average quarterly anticipated replacement
capital that we expect to incur over the long term to replace our major
capital assets at the end of their working lives. The replacement capex
accrual estimate will be subject to review and prospective change by
SXCP's general partner at least annually and whenever an event occurs
that causes a material adjustment of replacement capex, provided such
change is approved by our conflicts committee.
FORWARD-LOOKING STATEMENTS
Some of the statements included in this press release constitute "forward-looking statements." Forward-looking statements include all statements that are not historical facts and may be identified by the use of such words as "believe," "expect," "plan," "project," "intend," "anticipate," "estimate," "predict," "potential," "continue," "may," "will," "should" or the negative of these terms or similar expressions. Forward-looking statements are inherently uncertain and involve significant known and unknown risks and uncertainties (many of which are beyond the control of SXCP) that could cause actual results to differ materially.
Such risks and uncertainties include, but are not limited to, domestic and international economic, political, business, operational, competitive, regulatory, and/or market factors affecting SXCP, as well as uncertainties related to: pending or future litigation, legislation or regulatory actions; liability for remedial actions or assessments under existing or future environmental regulations; gains and losses related to acquisition, disposition or impairment of assets; recapitalizations; access to, and costs of, capital; the effects of changes in accounting rules applicable to SXCP; and changes in tax, environmental and other laws and regulations applicable to SXCP's businesses.
Forward-looking statements are not guarantees of future performance, but are based upon the current knowledge, beliefs and expectations of SXCP management, and upon assumptions by SXCP concerning future conditions, any or all of which ultimately may prove to be inaccurate. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. SXCP does not intend, and expressly disclaims any obligation, to update or alter its forward-looking statements (or associated cautionary language), whether as a result of new information, future events or otherwise after the date of this press release except as required by applicable law.
SXCP 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 SXCP. For information concerning these factors, see SXCP's Securities and Exchange Commission filings such as its annual and quarterly reports and current reports on Form 8-K, copies of which are available free of charge on SXCP's website at www.suncoke.com. All forward-looking statements included in this press release are expressly qualified in their entirety by such cautionary statements. Unpredictable or unknown factors not discussed in this release also could have material adverse effects on forward-looking statements.
SunCoke Energy Partners, L.P.
Consolidated Statements of Operations
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2017 2016 2017 2016
---- ---- ---- ----
(Dollars and units in millions, except per unit amounts)
Revenues
Sales and other operating
revenue $200.6 $181.4 $396.2 $375.9
------ ------ ------ ------
Costs and operating expenses
Cost of products sold and
operating expenses 149.4 128.6 284.8 262.8
Selling, general and
administrative expenses 8.5 11.1 17.0 19.5
Depreciation and amortization
expense 21.5 20.5 43.1 39.2
---- ---- ---- ----
Total costs and operating
expenses 179.4 160.2 344.9 321.5
----- ----- ----- -----
Operating income 21.2 21.2 51.3 54.4
Interest expense, net 14.0 11.7 26.6 24.2
Loss (gain) on extinguishment
of debt(1) 19.9 (3.5) 19.9 (23.9)
(Loss) income before income
tax (benefit) expense (12.7) 13.0 4.8 54.1
Income tax (benefit)
expense(2) (0.2) 0.4 149.0 1.0
Net (loss) income (12.5) 12.6 (144.2) 53.1
Less: Net income (loss)
attributable to
noncontrolling interests 0.4 0.5 (2.0) 1.2
--- --- ---
Net (loss) income attributable
to SunCoke Energy Partners,
L.P. $(12.9) $12.1 $(142.2) $51.9
====== ===== ======= =====
General partner's interest in
net income (loss) $1.2 $1.7 $(0.1) $11.8
Limited partners' interest in
net (loss) income $(14.1) $10.4 $(142.1) $40.1
Net (loss) income per common
unit (basic and diluted) $(0.30) $0.23 $(3.08) $0.86
Weighted average common units
outstanding (basic and
diluted) 46.2 46.2 46.2 46.2
(1) The Partnership recorded a loss on
extinguishment of debt as a result
of its debt refinancing activities
during the second quarter of 2017.
The Partnership recorded a gain on
extinguishment of debt as a result
of senior note repurchases through
the first half of 2016.
(2) In January 2017, the Internal
Revenue Service ("IRS") announced
its decision to exclude cokemaking
as a qualifying income generating
activity in its final regulations
(the "Final Regulations") issued
under section 7704(d)(1)(E) of the
Internal Revenue Code relating to
the qualifying income exception for
publicly traded partnerships.
However, the Final Regulations
include a transition period for
activities that were reasonably
interpreted to be qualifying income
and carried on by publicly traded
partnerships prior to the Final
Regulations. The Partnership
previously received a will-level
opinion from its counsel, Vinson &
Elkins LLP, that the Partnership's
cokemaking operations generated
qualifying income prior to the
Final Regulations. Therefore, the
Partnership believes it had a
reasonable basis to conclude its
cokemaking operations were
considered qualifying income before
the issuance of the new regulations
and as such expects to maintain its
treatment as a partnership through
the transition period. Cokemaking
entities in the Partnership will
become taxable as corporations on
January 1, 2028, after the
transition period ends.
As a result of the Final
Regulations, the Partnership
recorded deferred income tax
expense of $148.6 million to setup
its initial deferred income tax
liability during the first quarter
of 2017, primarily related to
differences in the book and tax
basis of fixed assets, which are
expected to exist at the end of the
10-year transition period when the
cokemaking operations become
taxable.
SunCoke Energy Partners, L.P.
Consolidated Balance Sheets
June 30, 2017 December 31, 2016
------------- -----------------
(Unaudited)
(Dollars in millions)
Assets
Cash
and
cash
equivalents $23.5 $41.8
Receivables 45.9 39.7
Receivables
from
affiliate,
net 2.1 -
Inventories 82.5 66.9
Other
current
assets 3.5 1.6
--- ---
Total
current
assets 157.5 150.0
----- -----
Properties,
plants and 2016,
and $352.6 respectively)
equipment million
(net at
of June
accumulated 30,
depreciation 2017
of and
$390.1 December
million 1,273.8 1,294.9
Goodwill 73.5 73.5
Other
intangible
assets,
net 171.5 176.7
Deferred
charges
and
other
assets 0.7 0.9
--- ---
Total
assets $1,677.0 $1,696.0
======== ========
Liabilities
and
Equity
Accounts
payable $66.8 $47.0
Accrued
liabilities 11.5 11.7
Deferred
revenue 12.0 2.5
Current
portion
of
long-
term
debt
and
financing
obligation 3.7 4.9
Interest
payable 5.2 14.7
Payable
to
affiliate,
net - 4.7
Total
current
liabilities 99.2 85.5
---- ----
Long-
term
debt
and
financing
obligation 827.8 805.7
Deferred
income
taxes 186.7 37.9
Other
deferred
credits
and
liabilities 13.7 13.2
---- ----
Total
liabilities 1,127.4 942.3
------- -----
Equity
Held
by
public:
Common
units and
(issued December
19,347,604 31,
and 2016,
20,800,181 respectively)
units
at
June
30,
2017 193.2 296.9
Held
by
parent:
Common
units and
(issued December
26,876,100 31,
and 2016,
25,415,696 respectively)
units
at
June
30,
2017 317.1 410.3
General
partner
interest 28.0 32.1
---- ----
Partners'
capital
attributable
to
SunCoke
Energy
Partners,
L.P. 538.3 739.3
Noncontrolling
interest 11.3 14.4
---- ----
Total
equity 549.6 753.7
----- -----
Total
liabilities
and
equity $1,677.0 $1,696.0
======== ========
SunCoke Energy Partners, L.P.
Consolidated Statements of Cash Flows
(Unaudited)
Six Months Ended June 30,
2017 2016
---- ----
(Dollars in millions)
Cash Flows from Operating Activities:
Net (loss) income $(144.2) $53.1
Adjustments to reconcile net (loss) income
to net cash provided by operating
activities:
Depreciation and amortization expense 43.1 39.2
Deferred income tax expense 148.8 0.4
Loss (gain) on extinguishment of debt 19.9 (23.9)
Changes in working capital pertaining to
operating activities:
Receivables (6.2) 5.3
Receivables (payables) from affiliate, net (5.4) 9.4
Inventories (15.6) 4.3
Accounts payable 12.0 5.3
Accrued liabilities (0.2) 2.5
Deferred revenue 9.5 18.2
Interest payable (9.5) (2.2)
Other (0.6) (3.5)
----
Net cash provided by operating activities 51.6 108.1
---- -----
Cash Flows from Investing Activities:
Capital expenditures (9.9) (22.1)
Decrease in restricted cash 0.1 15.4
Other investing activities - 2.1
---
Net cash used in investing activities (9.8) (4.6)
---- ----
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt 620.6 -
Repayment of long-term debt (532.2) (47.0)
Repayment of financing obligation (1.2) -
Proceeds from revolving credit facility 128.0 20.0
Repayment of revolving credit facility (200.0) (20.0)
Debt issuance costs (13.9) -
Distributions to unitholders (public and
parent) (60.3) (57.5)
Distributions to noncontrolling interest
(SunCoke Energy, Inc.) (1.1) (1.9)
Capital contributions from SunCoke - 8.4
---
Net cash used in financing activities (60.1) (98.0)
----- -----
Net (decrease) increase in cash and cash
equivalents (18.3) 5.5
Cash and cash equivalents at beginning of
period 41.8 48.6
Cash and cash equivalents at end of period $23.5 $54.1
===== =====
Supplemental Disclosure of Cash Flow
Information
Interest paid $35.5 $28.3
SunCoke Energy Partners, L.P.
Segment Operating Data
The following tables set forth financial and operating data for the three months ended June 30, 2017 and 2016:
Three Months Ended June 30, Six Months Ended June 30,
2017 2016 2017 2016
---- ---- ---- ----
(Dollars in millions)
Sales and other operating
revenues:
Domestic Coke $182.0 $167.5 $355.2 $346.4
Coal Logistics 18.6 13.9 41.0 29.5
Coal Logistics
intersegment
sales 1.5 1.7 3.3 3.2
Elimination of
intersegment
sales (1.5) (1.7) (3.3) (3.2)
---- ---- ---- ----
Total Sales and
other operating
revenues $200.6 $181.4 $396.2 $375.9
====== ====== ====== ======
Adjusted EBITDA(1):
Domestic Coke $37.5 $41.1 $80.0 $87.4
Coal Logistics 9.6 5.3 22.6 11.2
Corporate and
Other (4.1) (4.7) (7.9) (8.7)
---- ---- ---- ----
Total Adjusted
EBITDA $43.0 $41.7 $94.7 $89.9
===== ===== ===== =====
Coke Operating Data:
Domestic Coke
capacity
utilization (%) 98 101 99 102
Domestic Coke
production
volumes
(thousands of
tons) 565 583 1,132 1,158
Domestic Coke
sales volumes
(thousands of
tons) 569 579 1,133 1,160
Domestic Coke
Adjusted EBITDA
per ton(2) $65.91 $70.98 $70.61 $75.34
Coal Logistics Operating Data:
Tons handled
(thousands of
tons)(3) 4,909 3,938 10,358 7,973
CMT take-or-pay
shortfall tons
(thousands of
tons)(4) 956 1,616 1,500 3,254
(1) See definition of Adjusted
EBITDA and reconciliation
elsewhere in this release.
(2) Reflects Domestic Coke Adjusted
EBITDA divided by Domestic Coke
sales volumes.
(3) Reflects inbound tons handled
during the period.
(4) Reflects tons billed under take-
or-pay contracts where
services have not yet been
performed.
SunCoke Energy Partners, L.P.
Reconciliations of Non-GAAP Information
Net Cash Provided by Operating Activities
to Net (Loss) Income and Adjusted EBITDA
Three Months Ended June 30, Six Months Ended June 30,
2017 2016 2017 2016
---- ---- ---- ----
(Dollars in millions)
Net cash provided by operating
activities $12.2 $67.7 $51.6 $108.1
Subtract:
Depreciation and amortization
expense 21.5 20.5 43.1 39.2
Loss (gain) on extinguishment of
debt 19.9 (3.5) 19.9 (23.9)
Deferred income tax (benefit)
expense (0.4) 0.1 148.8 0.4
Changes in working capital and
other (16.3) 38.0 (16.0) 39.3
Net (loss) income $(12.5) $12.6 $(144.2) $53.1
------ ----- ------- -----
Add:
Depreciation and amortization
expense $21.5 $20.5 $43.1 $39.2
Interest expense, net 14.0 11.7 26.6 24.2
Loss (gain) on extinguishment of
debt 19.9 (3.5) 19.9 (23.9)
Income tax (benefit) expense, net (0.2) 0.4 149.0 1.0
Contingent consideration
adjustments(1) 0.3 - 0.3 (3.7)
Adjusted EBITDA(2) $43.0 $41.7 $94.7 $89.9
----- ----- ----- -----
Subtract:
Adjusted EBITDA attributable to
noncontrolling interest (3) 0.8 0.8 1.6 1.7
Adjusted EBITDA attributable to
SunCoke Energy Partners, L.P. $42.2 $40.9 $93.1 $88.2
===== ===== ===== =====
(1) As a result of the increase in
fair value of the contingent
consideration liability during
the second quarter of 2017, the
Partnership recognized expense of
$0.3 million during the three and
six months ended June 30, 2017.
The Partnership amended its
contingent consideration terms
with The Cline Group during the
first quarter of 2016. This
amendment resulted in a gain of
$3.7 million recorded during the
six months ended June 30, 2016.
(2) In accordance with the SEC's May
2016 update to its guidance on
the appropriate use of non-GAAP
financial measures, Adjusted
EBITDA does not include Coal
Logistics deferred revenue until
it is recognized as GAAP revenue.
(3) Reflects net income attributable
to noncontrolling interest
adjusted for noncontrolling
interest's share of interest,
taxes, income, and depreciation
and amortization.
SunCoke Energy Partners, L.P.
Reconciliations of Non-GAAP Information
Net Cash Provided by Operating Activities
to Net Loss to Adjusted EBITDA and
Distributable Cash Flow
Three Months Ended
June 30, 2017
(Dollars in millions)
---------------------
Net cash provided by operating
activities $12.2
Less:
Depreciation and amortization
expense 21.5
Loss on debt extinguishment 19.9
Deferred income tax benefit (0.4)
Changes in working capital and other (16.3)
Net loss $(12.5)
======
Add:
Depreciation and amortization
expense 21.5
Interest expense, net 14.0
Loss on extinguishment of debt 19.9
Income tax benefit (0.2)
Contingent consideration
adjustments(1) 0.3
---
Adjusted EBITDA $43.0
=====
Less:
Adjusted EBITDA attributable to
noncontrolling interest(1) 0.8
Adjusted EBITDA attributable to SXCP $42.2
=====
Plus:
Coal Logistics deferred revenue(2) 5.5
Less:
Repayment of Corporate cost holiday
/deferral 8.4
Ongoing capex 5.1
Replacement capex accrual 1.9
Cash interest accrual 13.7
Cash tax accrual(3) 0.6
---
Distributable cash flow $18.0
=====
Quarterly Cash Distribution $29.5
Distribution Coverage Ratio(4) 0.61
(1) Reflects net income attributable
to noncontrolling interest
adjusted for noncontrolling
interest's share of interest,
taxes, income, and depreciation
and amortization.
(2) Coal Logistics deferred revenue
adjusts for coal and liquid tons
the Partnership did not handle,
but are included in Distributable
Cash Flow as the associated take-
or-pay fees are billed to the
customer. Deferred revenue on
take-or-pay contracts is
recognized into GAAP income
annually based on the terms of
the contract, at which time it
will be excluded from
Distributable Cash Flow.
(3) Cash tax impact from the
operations of Gateway
Cogeneration Company LLC, which
is an entity subject to income
taxes for federal and state
purposes at the corporate level.
(4) Distribution cash coverage ratio
is distributable cash flow
divided by total estimated
distributions to the limited and
general partners.
SunCoke Energy Partners, L.P.
Reconciliations of Non-GAAP Information
Estimated 2017 Net Cash Provided by Operating Activities
to Net Loss to Consolidated Adjusted EBITDA
and Distributable Cash Flow
(updated post-refinancing)
2017
Low High
--- ----
Net Cash Provided by
Operating Activities $130 $150
Subtract:
Depreciation and
amortization expense 86 86
Deferred income tax
expense 149 149
Changes in working
capital and other (23) (14)
Loss on extinguishment
of debt 20 20
Net loss $(102) $(91)
----- ----
Add:
Depreciation and
amortization expense 86 86
Interest expense, net 58 57
Loss on extinguishment
of debt 20 20
Income tax expense 151 151
--- ---
Adjusted EBITDA $213 $223
---- ----
Subtract: Adjusted
EBITDA attributable
to noncontrolling
interest(1) 3 3
--- ---
Adjusted EBITDA
attributable to
SunCoke Energy
Partners, L.P. $210 $220
---- ----
Subtract:
Corporate cost holiday
/deferral(2) 8 8
Ongoing capex (SXCP
share) 17 17
Replacement capex
accrual 8 8
Cash interest accrual 55 54
Cash tax accrual(3) 3 3
Estimated
distributable cash
flow $119 $130
==== ====
(1) Reflects net income attributable
to noncontrolling interest
adjusted for noncontrolling
interest's share of interest,
taxes, income, and depreciation
and amortization.
(2) Represents repayment of SXC
corporate cost/IDR deferral from
Q2 2016.
(3) Cash tax impact from the
operations of Gateway
Cogeneration Company LLC, which
is an entity subject to income
taxes for federal and state
purposes at the corporate level.
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SOURCE SunCoke Energy Partners, L.P.
