SunCoke Energy, Inc.
For the period ended Mar 31, 2025. Filed Apr 30, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed Apr 30, 2025
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12. 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 Convent Marine Terminal (“CMT”), Kanawha River Terminal (“KRT”), and Lake Terminal, which provides services to our Indiana Harbor cokemaking facility. Handling and mixing results are presented in the Logistics segment.
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 reportable segment, but which also includes activity from our legacy coal mining business.
Segment assets are those assets utilized within a specific segment.
In considering the financial performance of the business, the chief operating decision maker (“CODM”), who is the Company’s President and Chief Executive Officer, evaluates the performance of its segments based on 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”). The CODM uses this measure to help determine the allocation of costs and resources to our reportable segments. Additionally, other companies may calculate Adjusted EBITDA reportable segments differently than we do, limiting its usefulness as a comparative measure.
The following tables include Adjusted EBITDA reportable segments, as defined above, 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.
| (Dollars in millions) | ||||
|---|---|---|---|---|
| Domestic Coke | Brazil Coke | Logistics | Total | |
| Sales and other operating revenue | $405.8 | $7.8 | $22.4 | $436.0 |
| Intersegment revenues | — | — | 5.6 | 5.6 |
| Net revenues | 405.8 | 7.8 | 28.0 | 441.6 |
| Reconciliation of revenue | ||||
| Elimination of intersegment revenues | (5.6) | |||
| Total consolidated revenues | 436.0 | |||
| Less:(1) | ||||
| Operating and maintenance expense | 71.1 | 4.8 | 14.0 | |
| Cost of products sold and other expenses(2) | 277.9 | — | — | |
| Selling, general and administrative expenses | 6.9 | 0.7 | 0.3 | |
| Adjusted EBITDA reportable segments | 49.9 | 2.3 | 13.7 | 65.9 |
| Depreciation and amortization expense | 28.8 | |||
| Interest expense, net(3) | 5.2 | |||
| Other corporate expenses(4) | 6.9 | |||
| Income before income tax expense | $25.0 | |||
(1)The significant expense categories and amounts align with segment-level information that is regularly provided to the CODM.
(2)Cost of products sold and other expenses includes coal and transportation costs.
(3)Interest expense, net of $5.2 million reflects (i) consolidated interest expense of $6.8 million and (ii) consolidated interest income of $1.6 million.
(4)Other corporate expenses represents business expenses not allocated to the Company’s reportable segments and are included in Corporate, which is not a reportable segment.
| (Dollars in millions) | ||||
|---|---|---|---|---|
| Domestic Coke | Brazil Coke | Logistics | Total | |
| Sales and other operating revenue | $459.5 | $8.3 | $20.6 | $488.4 |
| Intersegment revenues | — | — | 5.9 | 5.9 |
| Net revenues | 459.5 | 8.3 | 26.5 | 494.3 |
| Reconciliation of revenue | ||||
| Elimination of intersegment revenues | (5.9) | |||
| Total consolidated revenues | 488.4 | |||
| Less:(1) | ||||
| Operating and maintenance expense | 71.5 | 5.1 | 13.0 | |
| Cost of products sold and other expenses(2) | 318.7 | — | — | |
| Selling, general and administrative expenses | 7.9 | 0.8 | 0.5 | |
| Adjusted EBITDA reportable segments | 61.4 | 2.4 | 13.0 | 76.8 |
| Depreciation and amortization expense | 33.3 | |||
| Interest expense, net(3) | 6.3 | |||
| Other corporate expenses(4) | 9.0 | |||
| Income before income tax expense | $28.2 | |||
(1)The significant expense categories and amounts align with segment-level information that is regularly provided to the CODM.
(2)Cost of products sold and other expenses includes coal and transportation costs.
(3)Interest expense, net of $6.3 million reflects (i) consolidated interest expense of $7.2 million and (ii) consolidated interest income of $0.9 million.
(4)Other corporate expenses represents business expenses not allocated to the Company’s reportable segments and are included in Corporate, which is not a reportable segment.
The following table sets forth the Company’s depreciation and amortization expense as well as its capital expenditures:
| Three Months Ended March 31, | ||
|---|---|---|
| 2025 | 2024 | |
| (Dollars in millions) | ||
| Depreciation and amortization expense: | ||
| Domestic Coke | $25.1 | $29.9 |
| Logistics | 3.1 | 3.2 |
| Brazil Coke | 0.1 | 0.1 |
| Total reportable segments | $28.3 | $33.2 |
| Corporate and Other | 0.5 | 0.1 |
| Total depreciation and amortization expense | $28.8 | $33.3 |
| Capital expenditures: | ||
| Domestic Coke | $2.1 | $14.5 |
| Logistics | 2.7 | 0.6 |
| Brazil Coke | 0.1 | — |
| Total reportable segments | $4.9 | $15.1 |
| Corporate and Other | — | 0.4 |
| Total capital expenditures | $4.9 | $15.5 |
The following table sets forth the Company's segment assets:
| March 31, 2025 | December 31, 2024 | |
|---|---|---|
| (Dollars in millions) | ||
| Segment assets: | ||
| Domestic Coke | $1,335.1 | $1,351.1 |
| Logistics | 161.8 | 158.2 |
| Brazil Coke | 11.3 | 10.2 |
| Total reportable segments | $1,508.2 | $1,519.5 |
| Corporate and Other | 160.2 | 148.7 |
| Total assets | $1,668.4 | $1,668.2 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.