SUNCOKE ENERGY PARTNERS LP LISLE, Ill., Jan. 26, 2017 /PRNewswire/ -- SunCoke Energy Partners, L.P. (NYSE: SXCP) today reported fourth quarter 2016 net income attributable to SXCP of $45.9 million, up $9.6 million versus the same prior year period. Fourth quarter Adjusted EBITDA attributable to SXCP was $76.7 million, up $19.9 million versus the prior year period primarily due to the recognition of CMT deferred revenue.
Full-year 2016 net income attributable to SXCP was $119.1 million, representing a $33.7 million increase versus the same prior year period. The Company delivered full-year 2016 Adjusted EBITDA attributable to SXCP of $209.7 million which was $18.2 million higher than full-year 2015 and in line with its full-year guidance of between $207 million and $217 million.
"Fourth quarter and full-year results were in line with expectations, and again illustrate the ability for our coke and coal logistics segments to consistently generate stable results," said Fritz Henderson, President, Chairman and Chief Executive Officer of SunCoke Energy Partners, L.P. "In 2016, we set out to manage through the challenging market conditions that our customers faced while continuing to focus on de-levering our balance sheet and achieving our financial objectives. I am pleased that we have successfully delivered against these initiatives."
Looking forward, the Company expects 2017 Adjusted EBITDA attributable to SXCP to be between $210 million and $220 million. This outlook reflects higher Coal Logistics volumes and sustained Domestic Coke performance.
Henderson continued, "As we move into 2017, we are focused on executing against our 2017 objectives and delivering value to SunCoke unitholders."
2016 CONSOLIDATED RESULTS(1)
Three Months Ended Years Ended
December 31, December 31,
------------ ------------
(Dollars in
millions) 2016 2015 Increase/ 2016 2015 Increase/
(Decrease) (Decrease)
--- --------- ---------
Sales and
other
operating
revenue $218.3 $217.4 $0.9 $779.7 $838.5 $(58.8)
Net Income
attributable
to SXCP(2) $45.9 $36.3 $9.6 $119.1 $85.4 $33.7
Adjusted
EBITDA(3) $77.4 $57.6 $19.8 $213.0 $201.3 $11.7
(1) The current and prior year
periods are not comparable due
the contribution of Convent
Marine Terminal, which was
acquired on August 12, 2015.
(2) Net income attributable to SXCP
includes the impacts of SXCP's
75 percent ownership interest
in Granite City from January
13, 2015 through August 12,
2015 and SXCP's 98 percent
ownership interest in Granite
City from August 13, 2015
through December 31, 2016,
respectively.
(3) See definition of Adjusted
EBITDA and reconciliation
elsewhere in this release.
Total revenues increased $0.9 million to $218.3 million in the fourth quarter 2016, while full-year revenues decreased $58.8 million to $779.7 million. The quarter results reflect the pass-through of lower coal prices in our cokemaking business offset by the recognition of a full-year of deferred revenue at the Convent Marine Terminal ("CMT") facility. Full-year revenues benefited from a full-year contribution of the CMT acquisition, but this was more than offset by the pass-through of lower coal prices and lower sales volumes in the Domestic Coke and Coal Logistics segments.
Net income attributable to SXCP increased $9.6 million to $45.9 million in the fourth quarter 2016, while full-year 2016 net income attributable to SXCP increased $33.7 million to $119.1 million. Both the quarter and full-year results benefited from the positive contributions of CMT as previously discussed. Additionally, the full-year results were impacted by current year gains on extinguishment of debt of $25.0 million and favorable fair value adjustments to our contingent consideration obligation of $10.1 million.
Adjusted EBITDA was $77.4 million and $213.0 million in fourth quarter and full-year 2016, respectively, an increase of $19.8 million and $11.7 million, compared to the same prior year periods. Both the quarter and full-year results benefited from increases of $21.9 million and $29.9 million, respectively, at our CMT facility as described above, partially offset by lower year-over-year operating results in our Domestic Coke segment of $3.1 million and $10.1 million in the fourth quarter and full-year 2016, respectively driven by a turbine failure at our Haverhill facility in the fourth quarter as well as lower energy sales and coal-to-coke yield gains in the full-year period.
FOURTH QUARTER SEGMENT INFORMATION
Domestic Coke
Domestic Coke segment consists of our 98 percent interest in the Haverhill, Middletown and Granite City cokemaking facilities.
Three Months Ended
December 31,
------------
(Dollars in millions) 2016 2015 Increase/
(Decrease)
--- ---------
Sales and other
operating revenue $164.6 $182.7 $(18.1)
Adjusted EBITDA(1) $36.7 $39.8 $(3.1)
Sales Volume (in
thousands of tons) 581 583 (2)
Adjusted EBITDA per
ton(2) $63.17 $68.27 $(5.10)
(1) See definition
of Adjusted
EBITDA and
reconciliation
to GAAP
elsewhere in
this release.
(2) Reflects
Domestic Coke
Adjusted
EBITDA
divided by
Domestic Coke
sales
volumes.
-- Revenues were lower due
primarily to the pass-
through of lower coal
prices and decreased energy
sales due to a turbine
failure at our Haverhill
facility.
-- Adjusted EBITDA decreased
$3.1 million to $36.7
million, primarily
reflecting lower energy
sales and increased
operating costs due to the
turbine failure noted
above.
Coal Logistics
Coal Logistics consists of the coal handling and mixing services operated by SXCP at our Convent Marine Terminal ("CMT"), Lake Terminal and Kanawha River Terminals ("KRT"). The current and prior year periods are not comparable due to the recognition of a full-year of deferred revenue at CMT in 2016.
Three Months Ended
December 31,
------------
(Dollars in millions) 2016 2015 Increase/
(Decrease)
--- ---------
Sales and other operating
revenue $53.7 $34.7 $19.0
Adjusted EBITDA(1) 45.0 21.1 23.9
Tons handled, excluding CMT
(thousands of tons)(2) 3,710 4,160 (450)
Tons handled by CMT
(thousands of tons)(2) 1,731 1,395 336
(1) See definitions
of Adjusted
EBITDA and
reconciliation
elsewhere in
this release.
(2) Reflects
inbound tons
handled during
the period.
-- Revenues were up $19.0
million, driven by a $18.0
million increase in revenue
at CMT due primarily to
higher deferred revenue
recognized in the period
related to volume short-
falls over the full-year
versus only a partial year in
2015, partially offset by
lower volumes at KRT and Lake
Terminal.
-- Adjusted EBITDA was up $23.9
million, driven primarily by
a $21.9 million increase in
Adjusted EBITDA at CMT
resulting from higher
deferred revenue recognized.
Corporate and Other
Corporate and other costs of $4.3 million in fourth quarter 2016 increased $1.0 million over the same prior year period primarily due to an allocation of higher costs from SunCoke and unfavorable mark-to-market adjustments on deferred compensation driven by changes in the Partnership's unit price.
RELATED COMMUNICATIONS
The Partnership will host an investor conference call today at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). Investors may participate on this call by dialing 1-866-393-4306 in the U.S. or 1-617-826-1698 if outside the U.S., confirmation code 47873365. This conference call will be webcast live and archived for replay in the Investor Relations section of www.suncoke.com.
ABOUT 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 45 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, (gain)
loss on
extinguishment
of debt, taxes,
depreciation and
amortization
("EBITDA"),
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
generally
accepted
accounting
principles
(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.
----------------
-- 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.
Combined and Consolidated Statements of Income
Three Months Ended Years Ended
December 31, December 31,
2016 2015 2016 2015
---- ---- ---- ----
(Unaudited) (Unaudited)
(Dollars and units in millions, except per unit amounts)
Revenues
Sales and other operating revenue $218.3 $217.4 $779.7 $838.5
------ ------ ------ ------
Costs and operating expenses
Cost of products sold and operating expenses 128.9 146.9 517.2 599.6
Selling, general and administrative expenses 10.2 9.6 38.7 34.3
Depreciation and amortization expense 20.4 20.4 77.7 67.4
---- ----
Total costs and operating expenses 159.5 176.9 633.6 701.3
----- ----- ----- -----
Operating income 58.8 40.5 146.1 137.2
Interest expense, net 12.0 13.8 47.7 48.2
Gain on extinguishment of debt (0.1) (10.1) (25.0) (0.7)
---- ----- ----- ----
Income before income tax expense 46.9 36.8 123.4 89.7
Income tax expense (benefit) 0.6 (0.1) 2.0 (2.5)
Net income $46.3 $36.9 $121.4 $92.2
Less: Net income attributable to
noncontrolling interests 0.4 0.6 2.3 6.2
Net income attributable to SunCoke Energy
Partners, L.P./Previous Owner $45.9 $36.3 $119.1 $86.0
----- ----- ------ -----
Less: Net income attributable to Previous
Owner(1) - - - 0.6
Net income attributable to SunCoke Energy
Partners, L.P. $45.9 $36.3 $119.1 $85.4
===== ===== ====== =====
General partner's interest in net income $10.0 $3.5 $23.6 $8.6
Limited partners' interest in net income $35.9 $32.8 $95.5 $77.4
Net income per common unit (basic and diluted) $0.78 $0.71 $2.07 $1.92
Net income per subordinated unit (basic and
diluted) $ - $0.71 $ - $1.71
Weighted average common units outstanding
(basic and diluted) 46.2 30.6 46.2 26.2
Weighted average subordinated units outstanding
(basic and diluted) - 15.7 - 15.7
(1) Reflects net income
generated by our Granite
City facility prior to the
Granite City Dropdown on
January 13, 2015.
SunCoke Energy Partners, L.P.
Consolidated Balance Sheets
December 31,
2016 2015
---- ----
(Unaudited)
(Dollars in millions)
Assets
Cash and cash
equivalents $41.8 $48.6
Receivables 39.7 40.0
Receivables
from
affiliates,
net - 1.4
Inventories 66.9 77.1
Other current
assets 1.6 2.0
--- ---
Total current
assets 150.0 169.1
----- -----
Restricted cash 0.5 17.7
Properties,
plants and respectively)
equipment (net
of accumulated
depreciation
of $352.6
million, and
$291.1million
at December
31, 2016 and
2015, 1,294.9 1,326.5
Goodwill 73.5 67.7
Other
intangible
assets 176.7 187.4
Deferred
charges and
other assets 0.4 0.5
--- ---
Total assets $1,696.0 $1,768.9
======== ========
Liabilities and
Equity
Accounts
payable $47.0 $45.3
Accrued
liabilities 11.7 10.8
Deferred
revenue 2.5 2.1
Payable to
affiliate, net 4.7 -
Current portion
of long-term
debt and
financing
obligation 4.9 1.1
Interest
payable 14.7 17.5
Total current
liabilities 85.5 76.8
---- ----
Long-term debt
and financing
obligation 805.7 894.5
Deferred income
taxes 37.9 38.0
Other deferred
credits and
liabilities 13.2 14.6
Total
liabilities 942.3 1,023.9
===== =======
Equity
Held by public:
Common units
20,800,181,
and 20,787,744
units issued
at December
31, 2016 and
2015,
respectively) 296.9 300.0
Held by parent:
Common units
25,415,696 and
9,705,999
units issued
at December
31, 2016 and
2015,
respectively) 410.3 211.0
Subordinated
units (issued
zero units at
December 31,
2016 and
15,709,697
units at
December 31,
2015) - 203.3
General partner
interest 32.1 15.1
---- ----
Partners'
capital
attributable
to SunCoke
Energy
Partners, L.P. 739.3 729.4
Noncontrolling
interest 14.4 15.6
---- ----
Total equity 753.7 745.0
Total
liabilities
and equity $1,696.0 $1,768.9
======== ========
SunCoke Energy Partners, L.P.
Combined and Consolidated Statements of Cash Flows
Years Ended December 31,
2016 2015
(Dollars in millions)
Cash Flows from Operating Activities:
Net income $121.4 $92.2
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization expense 77.7 67.4
Deferred income tax benefit (0.1) (2.5)
Gain on extinguishment of debt (25.0) (0.7)
Changes in working capital pertaining to operating activities
(net of the effects of acquisition):
Receivables 0.3 (8.6)
Receivables/payables from affiliate, net 4.7 3.3
Inventories 10.2 15.0
Accounts payable 2.3 (12.1)
Accrued liabilities 0.5 (1.0)
Deferred revenue 0.4 (4.4)
Interest payable (2.8) 0.5
Other (6.0) 0.3
---- ---
Net cash provided by operating activities 183.6 149.4
----- -----
Cash Flows from Investing Activities:
Capital expenditures (37.1) (42.3)
Acquisitions of business, net of cash received - (191.7)
Decrease (increase) in restricted cash 17.2 (17.7)
Other investing activities 2.1 -
--- ---
Net cash used in investing activities (17.8) (251.7)
----- ------
Cash Flows from Financing Activities:
Proceeds from issuance of common units, net of offering costs - 30.0
Proceeds from issuance of long-term debt - 260.8
Repayment of long-term debt (66.1) (231.3)
Debt issuance costs (0.2) (5.3)
Proceeds from revolving credit facility 28.0 232.0
Repayment of revolving credit facility (38.0) (50.0)
Proceeds from financing obligation 16.2 -
Repayment of financing obligation (1.0) -
Distributions to unitholders (public and parent) (116.4) (104.5)
Distributions to noncontrolling interest (SunCoke Energy, Inc.) (3.5) (3.6)
Common public unit repurchases - (12.8)
Capital contribution from SunCoke Energy Partners GP LLC 8.4 2.3
---
Net cash (used in) provided by financing activities (172.6) 117.6
------ -----
Net (decrease) increase in cash and cash equivalents (6.8) 15.3
Cash and cash equivalents at beginning of year 48.6 33.3
---- ----
Cash and cash equivalents at end of year $41.8 $48.6
===== =====
Supplemental Disclosure of Cash Flow Information
Interest paid $54.0 $49.8
Income taxes paid $1.5 $0.8
SunCoke Energy Partners, L.P.
Segment Operating Data
The following tables set forth financial and operating data for the three and twelve months ended December 31, 2016 and 2015:
Three Months Ended Years Ended
December 31, December 31,
2016 2015 2016(1) 2015(1)
---- ---- ------ ------
(Dollars in millions)
Sales and other operating
revenue:
Domestic Coke $164.6 $182.7 $681.8 $763.8
Coal Logistics 53.7 34.7 97.9 74.7
Coal Logistics
intersegment sales 1.4 1.5 6.1 6.5
Elimination of
intersegment sales (1.4) (1.5) (6.1) (6.5)
---- ---- ----
Total $218.3 $217.4 $779.7 $838.5
====== ====== ====== ======
Adjusted EBITDA(2):
Domestic Coke $36.7 $39.8 $167.0 $177.1
Coal Logistics 45.0 21.1 63.2 38.0
Corporate and Other (4.3) (3.3) (17.2) (13.8)
---- ----- -----
Total $77.4 $57.6 $213.0 $201.3
===== ===== ====== ======
Coke Operating Data:
Domestic Coke capacity
utilization (%) 101 103 101 105
Domestic Coke production
volumes (thousands of
tons) 583 595 2,334 2,423
Domestic Coke sales
volumes (thousands of
tons) 581 583 2,336 2,409
Domestic Coke Adjusted
EBITDA per ton(3) $63.17 $68.27 $71.49 $73.52
Coal Logistics Operating
Data:
Tons handled, excluding
CMT (thousands of
tons)(4) 3,710 4,160 12,976 16,652
Tons handled by CMT
(thousands of tons)(4) 1,731 1,395 4,493 2,212
(1) The current and prior full year
periods are not comparable due
to the impact of CMT, which was
acquired on August 12, 2015.
(2) See definition of Adjusted
EBITDA and reconciliation to
GAAP elsewhere in this release.
(3) Reflects Domestic Coke Adjusted
EBITDA divided by Domestic Coke
sales volumes.
(4) Reflects inbound tons handled
during the period.
SunCoke Energy Partners, L.P.
Reconciliations of Non-GAAP Information
Net Cash Provided by Operating Activities to Net Income and Adjusted EBITDA
Three Months Ended Years Ended
December 31, December 31,
2016 2015 2016 2015
---- ---- ---- ----
(Dollars in millions)
Net cash provided by operating
activities $43.6 $61.2 $183.6 $149.4
Subtract:
Depreciation and amortization expense 20.4 20.4 77.7 67.4
Gain on extinguishment of debt (0.1) (10.1) (25.0) (0.7)
Changes in working capital and other (23.0) 14.0 9.5 (9.5)
Net income $46.3 $36.9 $121.4 $92.2
----- ----- ------ -----
Add:
Depreciation and amortization expense $20.4 $20.4 $77.7 $67.4
Interest expense, net 12.0 13.8 47.7 48.2
Gain on extinguishment of debt (0.1) (10.1) (25.0) (0.7)
Income tax (benefit) expense 0.6 (0.1) 2.0 (2.5)
Contingent consideration adjustments(1) (1.8) - (10.1) -
Non-cash reversal of acquired
contractual obligation(2) - (3.3) (0.7) (3.3)
Adjusted EBITDA $77.4 $57.6 $213.0 $201.3
----- ----- ------ ------
Subtract:
Adjusted EBITDA attributable to
Previous Owner(3) $ - $ - $ - $1.5
Adjusted EBITDA attributable to
noncontrolling interest(4) 0.7 0.8 3.3 8.3
Adjusted EBITDA attributable to SunCoke
Energy Partners, L.P. $76.7 $56.8 $209.7 $191.5
===== ===== ====== ======
(1) The Partnership amended its
contingent consideration terms
with The Cline Group during the
first quarter of 2016. This
amendment and subsequent fair
value adjustments to the
contingent consideration
liability, resulted in gains of
$1.8 million and $10.1 million
recorded during the three and
twelve months ended December 31,
2016, respectively, which were
excluded from Adjusted EBITDA.
(2) In association with the
acquisition of CMT, we assumed
certain performance obligations
under existing contracts and
recorded liabilities related to
such obligations. These
contractual performance
obligation expired without the
customer requiring performance.
As such, the Partnership reversed
the liabilities as we no longer
have any obligations under the
contract.
(3) Reflects net income attributable
to our Granite City facility
prior to the Granite City
Dropdown on January 13, 2015
adjusted for Granite City's share
of interest, taxes, depreciation
and amortization during the same
period.
(4) 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
Reconciliation of Adjusted EBITDA and Distributable Cash Flow to to Net Income
Three Months Ended December 31, Years Ended
December 31,
2016 2015 2016 2015
---- ---- ---- ----
(Dollars in millions)
Net cash provided by
operating activities $43.6 $61.2 $183.6 $149.4
Subtract:
Depreciation and
amortization expense 20.4 20.4 77.7 67.4
Gain on extinguishment of
debt (0.1) (10.1) (25.0) (0.7)
Changes in working capital
and other (23.0) 14.0 9.5 (9.5)
Net income $46.3 $36.9 $121.4 $92.2
----- ----- ------ -----
Add:
Depreciation and
amortization expense $20.4 $20.4 $77.7 $67.4
Interest expense, net 12.0 13.8 47.7 48.2
Gain on extinguishment of
debt (0.1) (10.1) (25.0) (0.7)
Income tax expense
(benefit) 0.6 (0.1) 2.0 (2.5)
Contingent consideration
adjustments(1) (1.8) - (10.1) -
Non-cash reversal of
acquired contractual
obligation(2) - (3.3) (0.7) (3.3)
Adjusted EBITDA $77.4 $57.6 $213.0 $201.3
----- ----- ------ ------
Subtract:
Adjusted EBITDA
attributable to Previous
Owner(3) - - - 1.5
Adjusted EBITDA
attributable to
noncontrolling interest(4) 0.7 0.8 3.3 8.3
Adjusted EBITDA
attributable to SunCoke
Energy Partners, L.P. $76.7 $56.8 $209.7 $191.5
----- ----- ------ ------
Plus :
Coal Logistics deferred
revenue(5) (25.4) (0.7) 1.5 0.4
Corporate cost holiday/
deferral - - 13.9 -
Subtract:
Ongoing capex 4.8 9.0 14.4 20.4
Replacement capex accrual 1.9 1.9 7.6 7.2
Cash interest accrual 11.9 13.6 49.0 47.2
Cash tax accrual 0.9 (0.6) 1.8 -
--- ---- --- ---
Distributable cash flow $31.8 $32.2 $152.3 $117.1
===== ===== ====== ======
Quarterly cash distribution $29.5 $28.0 $116.4 110.2
Distribution coverage
ratio(6) 1.08x 1.15x 1.31x 1.06x
(1) The Partnership amended its
contingent consideration terms
with The Cline Group. This
amendment and subsequent fair
value adjustments to the
contingent consideration
liability, resulted in gains of
$1.8 million and $10.1 million
recorded during the three and
twelve months ended December 31,
2016, respectively, which were
excluded from Adjusted EBITDA.
(2) In association with the
acquisition of CMT, we assumed
certain performance obligations
under existing contracts and
recorded liabilities related to
such obligations. These
contractual performance
obligation expired without the
customer requiring performance.
As such, the Partnership reversed
the liabilities as we no longer
have any obligations under the
contract.
(3) Reflects net income attributable
to our Granite City facility
prior to the Granite City
Dropdown on January 13, 2015
adjusted for Granite City's share
of interest, taxes, depreciation
and amortization during the same
period.
(4) Reflects net income attributable
to noncontrolling interest
adjusted for noncontrolling
interest's share of interest,
taxes, income, and depreciation
and amortization.
(5) 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.
(6) 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 Consolidated Adjusted EBITDA to Estimated Net Income
and Net Cash Provided by Operating Activities
2017
----
Low High
--- ----
Net Cash
Provided by
Operating
Activities $142 $162
Subtract:
Depreciation and
amortization
expense 86 86
Changes in
working capital
and other (17) (11)
Net income $73 $87
--- ---
Add:
Depreciation and
amortization
expense 86 86
Interest
expense, net 52 48
Income tax
expense 2 2
Adjusted EBITDA $213 $223
---- ----
Subtract:
Adjusted EBITDA
attributable to
non controlling
interest(1) 3 3
Adjusted EBITDA
attributable to
SunCoke Energy
Partners, L.P. $210 $220
Subtract:
SXC Corp Cost
Support Payback 8 8
Ongoing capex
(SXCP share) 17 17
Replacement
capex accrual 8 8
Cash interest
accrual 48 48
Cash tax
accrual(2) 3 3
Estimated
distributable
cash flow $126 $136
---- ----
(1) Adjusted EBITDA attributable to
noncontrolling interests
represents SXC's 2% interest in
Haverhill, Middletown and Granite
City cokemaking facilities.
(2) Cash tax impacts 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.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/suncoke-energy-partners-lp-announces-fourth-quarter-and-full-year-2016-results-and-provides-full-year-2017-guidance-300397071.html
SOURCE SunCoke Energy Partners, L.P.
