SunCoke Energy Inc
For the period ended Dec 31, 2023. Filed Feb 22, 2024.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2023 · Filed Feb 22, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
19. Business Segment Information
- Business Segment Information
The Company reports its business through three reportable segments: Domestic Coke, Brazil Coke and Logistics. The Domestic Coke segment includes the Jewell, Indiana Harbor, Haverhill, Granite City and Middletown cokemaking facilities. Each of these facilities produces coke, and all facilities except Jewell recover waste heat, which is converted to steam or electricity.
The Brazil Coke segment includes the licensing and operating fees payable to us under long-term contracts with ArcelorMittal Brazil, under which we operate a cokemaking facility located in Vitória, Brazil through January 2028.
Logistics operations are comprised of CMT, KRT, and Lake Terminal, which provides services to our Indiana Harbor cokemaking facility. Handling and mixing results are presented in the Logistics segment. The Company elected to combine Dismal River Terminal (“DRT”) operations into the Jewell cokemaking operations in the Domestic Coke segment beginning January 1, 2023. The DRT results were included in the Logistics segment in 2022 and are not recast.
Corporate expenses that can be identified with a segment have been included in determining segment results. The remainder is included in Corporate and Other, which is not a reporting segment, but which also includes activity from our legacy coal mining business.
Segment assets are those assets utilized within a specific segment.
The following table includes Adjusted EBITDA reportable segments, as defined below, which is a measure of segment profit or loss reported to the chief operating decision maker for purposes of allocating resources to the segments and assessing their performance:
| Years Ended December 31, | |||
|---|---|---|---|
| 2023 | 2022 | 2021 | |
| (Dollars in millions) | |||
| Sales and other operating revenue: | |||
| Domestic Coke | $1,954.0 | $1,856.9 | $1,354.5 |
| Brazil Coke | 35.2 | 38.0 | 36.6 |
| Logistics | 74.0 | 77.6 | 64.9 |
| Logistics intersegment sales | 22.1 | 28.9 | 27.1 |
| Elimination of intersegment sales | (22.1) | (28.9) | (27.1) |
| Total sales and other operating revenue | $2,063.2 | $1,972.5 | $1,456.0 |
| Adjusted EBITDA reportable segments: | |||
| Domestic Coke | $247.8 | $263.4 | $243.4 |
| Brazil Coke | 9.1 | 14.5 | 17.2 |
| Logistics | 44.3 | 49.7 | 43.5 |
| Total Adjusted EBITDA reportable segments | $301.2 | $327.6 | $304.1 |
| Depreciation and amortization expense: | |||
| Domestic Coke | $129.4 | $126.8 | $119.0 |
| Brazil Coke | 0.3 | 0.2 | 0.4 |
| Logistics | 12.8 | 14.5 | 13.3 |
| Total reportable segments | $142.5 | $141.5 | $132.7 |
| Corporate and Other | 0.3 | 1.0 | 1.2 |
| Total depreciation and amortization expense | $142.8 | $142.5 | $133.9 |
| Capital expenditures: | |||
| Domestic Coke | $103.2 | $70.3 | $83.1 |
| Brazil Coke | 0.4 | 0.1 | 0.3 |
| Logistics | 5.1 | 4.5 | 14.7 |
| Total reportable segments | $108.7 | $74.9 | $98.1 |
| Corporate and Other | 0.5 | 0.6 | 0.5 |
| Total capital expenditures | $109.2 | $75.5 | $98.6 |
The following table sets forth the Company’s segment assets:
| December 31, | ||
|---|---|---|
| 2023 | 2022 | |
| (Dollars in millions) | ||
| Segment assets: | ||
| Domestic Coke | $1,405.5 | $1,422.6 |
| Brazil Coke | 11.9 | 15.7 |
| Logistics(1) | 158.4 | 193.5 |
| Total reportable segments | $1,575.8 | $1,631.8 |
| Corporate and Other | 84.6 | 22.8 |
| Total assets | $1,660.4 | $1,654.6 |
(1)Logistics segment assets included $21.7 million of DRT assets as of December 31, 2022, which are included in the Domestic Coke segment in 2023.
The Company evaluates the performance of its segments based on segment Adjusted EBITDA reportable segments, which is defined as earnings before interest, taxes, depreciation and amortization, adjusted for any impairments, restructuring costs, gains or losses on extinguishment of debt, transaction costs, and/or corporate/other expenses (“Adjusted EBITDA reportable segments”). Management believes Adjusted EBITDA reportable segments is an important measure in assessing operating performance. Additionally, other companies may calculate Adjusted EBITDA reportable segments differently than we do, limiting its usefulness as a comparative measure.
Reconciliation of Adjusted EBITDA Reportable Segments to Net Income
Below is a reconciliation of Adjusted EBITDA reportable segments to net income, which is its most directly comparable financial measure calculated and presented in accordance with GAAP:
| Years Ended December 31, | |||
|---|---|---|---|
| 2023 | 2022 | 2021 | |
| (Dollars in millions) | |||
| Net income | $63.5 | $104.9 | $48.8 |
| Add: | |||
| Depreciation and amortization expense | 142.8 | 142.5 | 133.9 |
| Interest expense, net | 27.3 | 32.0 | 42.5 |
| Loss on extinguishment of debt | — | — | 31.9 |
| Income tax expense | 34.3 | 16.8 | 18.3 |
| Transaction costs(1) | 0.9 | 1.5 | — |
| Corporate and Other | 32.4 | 29.9 | 28.7 |
| Adjusted EBITDA reportable segments | $301.2 | $327.6 | $304.1 |
(1)Costs incurred as part of the granulated pig iron project with U.S. Steel.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.