We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Suncoke Energy Partners, L.P. Common Units Representing Limited Partner Interests | NYSE:SXCP | NYSE | Ordinary Share |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 12.41 | 0.00 | 01:00:00 |
|
|
|
ý
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
Delaware
|
|
35-2451470
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
Large accelerated filer
|
|
¨
|
|
|
Accelerated filer
|
|
ý
|
Non-accelerated filer
|
|
¨
|
(Do not check if a smaller reporting company)
|
|
Smaller reporting company
|
|
¨
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Item 1.
|
Combined and Consolidated Financial Statements
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
(Dollars and units in millions, except per unit amounts)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
||||||||
Sales and other operating revenue
|
|
$
|
181.4
|
|
|
$
|
207.6
|
|
|
$
|
375.9
|
|
|
$
|
410.9
|
|
Costs and operating expenses
|
|
|
|
|
|
|
|
|
||||||||
Cost of products sold and operating expenses
|
|
128.6
|
|
|
155.6
|
|
|
262.8
|
|
|
303.0
|
|
||||
Selling, general and administrative expenses
|
|
11.1
|
|
|
7.3
|
|
|
19.5
|
|
|
14.9
|
|
||||
Depreciation and amortization expense
|
|
20.5
|
|
|
15.4
|
|
|
39.2
|
|
|
30.0
|
|
||||
Total costs and operating expenses
|
|
160.2
|
|
|
178.3
|
|
|
321.5
|
|
|
347.9
|
|
||||
Operating income
|
|
21.2
|
|
|
29.3
|
|
|
54.4
|
|
|
63.0
|
|
||||
Interest expense, net
|
|
11.7
|
|
|
10.8
|
|
|
24.2
|
|
|
22.0
|
|
||||
(Gain) loss on extinguishment of debt
|
|
(3.5
|
)
|
|
—
|
|
|
(23.9
|
)
|
|
9.4
|
|
||||
Income before income tax expense
|
|
13.0
|
|
|
18.5
|
|
|
54.1
|
|
|
31.6
|
|
||||
Income tax expense (benefit)
|
|
0.4
|
|
|
0.4
|
|
|
1.0
|
|
|
(2.9
|
)
|
||||
Net income
|
|
12.6
|
|
|
18.1
|
|
|
53.1
|
|
|
34.5
|
|
||||
Less: Net income attributable to noncontrolling interests
|
|
0.5
|
|
|
1.1
|
|
|
1.2
|
|
|
4.3
|
|
||||
Net income attributable to SunCoke Energy Partners, L.P./Previous Owner
|
|
$
|
12.1
|
|
|
$
|
17.0
|
|
|
$
|
51.9
|
|
|
$
|
30.2
|
|
Less: Net income attributable to Previous Owner
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
||||
Net income attributable to SunCoke Energy Partners, L.P.
|
|
$
|
12.1
|
|
|
$
|
17.0
|
|
|
$
|
51.9
|
|
|
$
|
29.6
|
|
|
|
|
|
|
|
|
|
|
||||||||
General partner's interest in net income
|
|
$
|
1.7
|
|
|
$
|
1.4
|
|
|
$
|
11.8
|
|
|
$
|
3.2
|
|
Limited partners' interest in net income
|
|
$
|
10.4
|
|
|
$
|
15.6
|
|
|
$
|
40.1
|
|
|
$
|
27.0
|
|
Net income per common unit (basic and diluted)
|
|
$
|
0.23
|
|
|
$
|
0.40
|
|
|
$
|
0.86
|
|
|
$
|
0.69
|
|
Net income per subordinated unit (basic and diluted)
|
|
$
|
—
|
|
|
$
|
0.40
|
|
|
$
|
—
|
|
|
$
|
0.69
|
|
Weighted average common units outstanding (basic and diluted)
|
|
46.2
|
|
|
23.6
|
|
|
46.2
|
|
|
23.4
|
|
||||
Weighted average subordinated units outstanding (basic and diluted)
|
|
—
|
|
|
15.7
|
|
|
—
|
|
|
15.7
|
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||
|
|
(Unaudited)
|
|
|
||||
|
|
(Dollars in millions)
|
||||||
Assets
|
|
|
||||||
Cash and cash equivalents
|
|
$
|
54.1
|
|
|
$
|
48.6
|
|
Receivables
|
|
34.7
|
|
|
40.0
|
|
||
Receivables from affiliates, net
|
|
—
|
|
|
1.4
|
|
||
Inventories
|
|
72.8
|
|
|
77.1
|
|
||
Other current assets
|
|
3.8
|
|
|
2.0
|
|
||
Total current assets
|
|
165.4
|
|
|
169.1
|
|
||
Restricted cash
|
|
2.3
|
|
|
17.7
|
|
||
Properties, plants and equipment (net of accumulated depreciation of $322.5 million and $291.1 million at June 30, 2016 and December 31, 2015, respectively)
|
|
1,313.1
|
|
|
1,326.5
|
|
||
Goodwill
|
|
67.1
|
|
|
67.7
|
|
||
Other intangible assets, net
|
|
182.0
|
|
|
187.4
|
|
||
Deferred charges and other assets
|
|
—
|
|
|
0.5
|
|
||
Total assets
|
|
$
|
1,729.9
|
|
|
$
|
1,768.9
|
|
Liabilities and Equity
|
|
|
|
|
||||
Accounts payable
|
|
$
|
50.4
|
|
|
$
|
45.3
|
|
Accrued liabilities
|
|
13.3
|
|
|
10.8
|
|
||
Deferred revenue
|
|
20.3
|
|
|
2.1
|
|
||
Payable to affiliate, net
|
|
9.4
|
|
|
—
|
|
||
Current portion of long-term debt
|
|
1.1
|
|
|
1.1
|
|
||
Interest payable
|
|
15.3
|
|
|
17.5
|
|
||
Total current liabilities
|
|
109.8
|
|
|
76.8
|
|
||
Long-term debt
|
|
824.1
|
|
|
894.5
|
|
||
Deferred income taxes
|
|
38.4
|
|
|
38.0
|
|
||
Asset retirement obligations
|
|
5.9
|
|
|
5.6
|
|
||
Other deferred credits and liabilities
|
|
6.0
|
|
|
9.0
|
|
||
Total liabilities
|
|
984.2
|
|
|
1,023.9
|
|
||
Equity
|
|
|
|
|
||||
Held by public:
|
|
|
|
|
||||
Common units
(issued 20,794,423 and 20,787,744 units at June 30, 2016 and December 31, 2015, respectively)
|
|
296.4
|
|
|
300.0
|
|
||
Held by parent:
|
|
|
|
|
|
|
||
Common units (issued 25,415,696 and 9,705,999 units at June 30, 2016 and December 31, 2015, respectively)
|
|
410.1
|
|
|
211.0
|
|
||
Subordinated units (issued zero units at June 30, 2016 and 15,709,697 units at December 31, 2015)
|
|
—
|
|
|
203.3
|
|
||
General partner interest
|
|
24.3
|
|
|
15.1
|
|
||
Partners' capital attributable to SunCoke Energy Partners, L.P.
|
|
730.8
|
|
|
729.4
|
|
||
Noncontrolling interest
|
|
14.9
|
|
|
15.6
|
|
||
Total equity
|
|
745.7
|
|
|
745.0
|
|
||
Total liabilities and equity
|
|
$
|
1,729.9
|
|
|
$
|
1,768.9
|
|
|
|
Six Months Ended June 30,
|
||||||
|
|
2016
|
|
2015
|
||||
|
|
|
|
|
||||
|
|
(Dollars in millions)
|
||||||
Cash Flows from Operating Activities:
|
|
|
|
|
||||
Net income
|
|
$
|
53.1
|
|
|
$
|
34.5
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Depreciation and amortization expense
|
|
39.2
|
|
|
30.0
|
|
||
Deferred income tax expense (benefit)
|
|
0.4
|
|
|
(3.5
|
)
|
||
(Gain) loss on extinguishment of debt
|
|
(23.9
|
)
|
|
9.4
|
|
||
Changes in working capital pertaining to operating activities:
|
|
|
|
|
||||
Receivables
|
|
5.3
|
|
|
(11.4
|
)
|
||
Receivables (payables) from affiliate, net
|
|
9.4
|
|
|
4.0
|
|
||
Inventories
|
|
4.3
|
|
|
20.1
|
|
||
Accounts payable
|
|
5.3
|
|
|
(12.6
|
)
|
||
Accrued liabilities
|
|
2.5
|
|
|
1.7
|
|
||
Deferred revenue
|
|
18.2
|
|
|
—
|
|
||
Interest payable
|
|
(2.2
|
)
|
|
1.5
|
|
||
Other
|
|
(3.5
|
)
|
|
(1.2
|
)
|
||
Net cash provided by operating activities
|
|
108.1
|
|
|
72.5
|
|
||
Cash Flows from Investing Activities:
|
|
|
|
|
||||
Capital expenditures
|
|
(22.1
|
)
|
|
(16.2
|
)
|
||
Decrease in restricted cash
|
|
15.4
|
|
|
—
|
|
||
Other investing activities
|
|
2.1
|
|
|
—
|
|
||
Net cash used in investing activities
|
|
(4.6
|
)
|
|
(16.2
|
)
|
||
Cash Flows from Financing Activities:
|
|
|
|
|
||||
Proceeds from issuance of long-term debt
|
|
—
|
|
|
210.8
|
|
||
Repayment of long-term debt
|
|
(47.0
|
)
|
|
(149.5
|
)
|
||
Debt issuance costs
|
|
—
|
|
|
(4.5
|
)
|
||
Proceeds from revolving credit facility
|
|
20.0
|
|
|
—
|
|
||
Repayment of revolving credit facility
|
|
(20.0
|
)
|
|
—
|
|
||
Distributions to unitholders (public and parent)
|
|
(57.5
|
)
|
|
(46.0
|
)
|
||
Distributions to noncontrolling interest (SunCoke Energy, Inc.)
|
|
(1.9
|
)
|
|
(1.5
|
)
|
||
Capital contributions from SunCoke
|
|
8.4
|
|
|
—
|
|
||
Net cash (used in) provided by financing activities
|
|
(98.0
|
)
|
|
9.3
|
|
||
Net increase in cash and cash equivalents
|
|
5.5
|
|
|
65.6
|
|
||
Cash and cash equivalents at beginning of period
|
|
48.6
|
|
|
33.3
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
54.1
|
|
|
$
|
98.9
|
|
Supplemental Disclosure of Cash Flow Information
|
|
|
|
|
||||
Interest paid
|
|
$
|
28.3
|
|
|
$
|
21.0
|
|
|
|
Common
- Public |
|
Common
- SunCoke |
|
Subordinated
- SunCoke |
|
General Partner
- SunCoke |
|
Noncontrolling Interest
|
|
Total
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
(Dollars in millions)
|
|||||||||||||||||||||||
At December 31, 2015
|
|
$
|
300.0
|
|
|
$
|
211.0
|
|
|
$
|
203.3
|
|
|
$
|
15.1
|
|
|
$
|
15.6
|
|
|
$
|
745.0
|
|
Conversion of subordinated units to common units
|
|
—
|
|
|
203.3
|
|
|
(203.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Partnership net income
|
|
21.1
|
|
|
19.0
|
|
|
—
|
|
|
11.8
|
|
|
1.2
|
|
|
53.1
|
|
||||||
Distribution to unitholders
|
|
(24.7
|
)
|
|
(30.2
|
)
|
|
—
|
|
|
(4.0
|
)
|
|
—
|
|
|
(58.9
|
)
|
||||||
Distributions to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.9
|
)
|
|
(1.9
|
)
|
||||||
Capital contribution from SunCoke
|
|
—
|
|
|
7.0
|
|
|
—
|
|
|
1.4
|
|
|
|
|
|
8.4
|
|
||||||
At June 30, 2016
|
|
$
|
296.4
|
|
|
$
|
410.1
|
|
|
$
|
—
|
|
|
$
|
24.3
|
|
|
$
|
14.9
|
|
|
$
|
745.7
|
|
•
|
first
,
98 percent
to the holders of common units and
2 percent
to our general partner, until each common unit has received the minimum quarterly distribution of
$0.412500
plus any arrearages from prior quarters;
|
•
|
second,
98 percent
to the holders of subordinated units and
2 percent
to our general partner, until each subordinated unit has received the minimum quarterly distribution of
$0.412500
; and
|
•
|
third,
98 percent
to all unitholders, pro rata, and
2 percent
to our general partner, until each unit has received a distribution of
$0.474375
.
|
|
Total Quarterly Distribution Per Unit Target Amount
|
|
Marginal Percentage
Interest in Distributions
|
||||
|
Unitholders
|
|
General Partner
|
||||
Minimum Quarterly Distribution
|
$0.412500
|
|
98%
|
|
2%
|
||
First Target Distribution
|
above $0.412500
|
|
up to $0.474375
|
|
98%
|
|
2%
|
Second Target Distribution
|
above $0.474375
|
|
up to $0.515625
|
|
85%
|
|
15%
|
Third Target Distribution
|
above $0.515625
|
|
up to $0.618750
|
|
75%
|
|
25%
|
Thereafter
|
above $0.618750
|
|
50%
|
|
50%
|
Earned in Quarter Ended
|
|
Total Quarterly Distribution Per Unit
|
|
Total Cash Distribution including general partners IDRs
|
|
Date of Distribution
|
|
Unitholders Record Date
|
||||
|
|
|
|
(Dollars in millions)
|
|
|
|
|
||||
June 30, 2015
|
|
$
|
0.5825
|
|
|
$
|
29.0
|
|
|
August 31, 2015
|
|
August 14, 2015
|
September 30, 2015
|
|
$
|
0.5940
|
|
|
$
|
29.6
|
|
|
December 1, 2015
|
|
November 13, 2015
|
December 31, 2015
|
|
$
|
0.5940
|
|
|
$
|
29.5
|
|
|
March 1, 2016
|
|
February 15, 2016
|
March 31, 2016
(1)
|
|
$
|
0.5940
|
|
|
$
|
29.4
|
|
|
June 1, 2016
|
|
May 16, 2016
|
June 30, 2016
(2)
|
|
$
|
0.5940
|
|
|
$
|
29.5
|
|
|
September 1, 2016
|
|
August 15, 2016
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
(Dollars in millions)
|
||||||||||||||
Net income attributable to SunCoke Energy L.P./Previous Owner
|
|
$
|
12.1
|
|
|
$
|
17.0
|
|
|
$
|
51.9
|
|
|
$
|
30.2
|
|
Less: Expenses allocated to Common - SunCoke
(1)
|
|
—
|
|
|
—
|
|
|
(7.0
|
)
|
|
—
|
|
||||
Less: Allocation of net income attributable to the Previous Owner to the general partner
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
||||
Net income attributable to all partners
|
|
12.1
|
|
|
17.0
|
|
|
58.9
|
|
|
29.6
|
|
||||
General partner's incentive distribution rights
|
|
1.4
|
|
|
1.1
|
|
|
10.8
|
|
|
2.0
|
|
||||
Net income attributable to partners, excluding incentive distribution rights
|
|
10.7
|
|
|
15.9
|
|
|
48.1
|
|
|
27.6
|
|
||||
General partner's ownership interest:
|
|
2.0
|
%
|
|
2.0
|
%
|
|
2.0
|
%
|
|
2.0
|
%
|
||||
General partner's allocated interest in net income
|
|
0.3
|
|
|
0.3
|
|
|
1.0
|
|
|
0.6
|
|
||||
General partner's incentive distribution rights
|
|
1.4
|
|
|
1.1
|
|
|
10.8
|
|
|
2.0
|
|
||||
Net income attributable to the Previous Owner
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
||||
Total general partner's interest in net income
|
|
$
|
1.7
|
|
|
$
|
1.4
|
|
|
$
|
11.8
|
|
|
$
|
3.2
|
|
Common - public unitholder's interest in net income
|
|
$
|
4.6
|
|
|
$
|
6.7
|
|
|
$
|
21.1
|
|
|
$
|
11.6
|
|
Common - SunCoke interest in net income:
|
|
|
|
|
|
|
|
|
||||||||
Common - SunCoke interest in net income
|
|
5.8
|
|
|
2.7
|
|
|
26.0
|
|
|
4.6
|
|
||||
Expenses allocated to Common - SunCoke
(1)
|
|
—
|
|
|
—
|
|
|
(7.0
|
)
|
|
—
|
|
||||
Total common - SunCoke interest in net income
|
|
5.8
|
|
|
2.7
|
|
|
19.0
|
|
|
4.6
|
|
||||
Subordinated - SunCoke interest in net income
|
|
—
|
|
|
6.2
|
|
|
—
|
|
|
10.8
|
|
||||
Total limited partners' interest in net income
|
|
$
|
10.4
|
|
|
$
|
15.6
|
|
|
$
|
40.1
|
|
|
$
|
27.0
|
|
|
|
Three Months Ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
(Dollars and units in millions, except per unit amounts)
|
||||||||||||||
Net income attributable to SunCoke Energy L.P./Previous Owner
|
|
$
|
12.1
|
|
|
$
|
17.0
|
|
|
$
|
51.9
|
|
|
$
|
30.2
|
|
Less: Expenses allocated to Common - SunCoke
|
|
—
|
|
|
—
|
|
|
(7.0
|
)
|
|
—
|
|
||||
Less: Allocation of net income attributable to the Previous Owner to the general partner
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
||||
Net income attributable to all partners
|
|
12.1
|
|
|
17.0
|
|
|
58.9
|
|
|
29.6
|
|
||||
General partner's distributions (including, $1.4, $1.1, $2.8 and $2.0 million of incentive distribution rights, respectively)
|
|
2.0
|
|
|
1.5
|
|
|
4.0
|
|
|
2.9
|
|
||||
Limited partners' distributions on common units
|
|
27.5
|
|
|
13.7
|
|
|
54.9
|
|
|
27.1
|
|
||||
Limited partners' distributions on subordinated units
|
|
—
|
|
|
9.2
|
|
|
—
|
|
|
18.2
|
|
||||
Distributions less than (greater than) earnings
|
|
(17.4
|
)
|
|
(7.4
|
)
|
|
—
|
|
|
(18.6
|
)
|
||||
General partner's earnings:
|
|
|
|
|
|
|
|
|
||||||||
Distributions (including $1.4, $1.1, $2.8 and $2.0 million of cash incentive distribution rights, respectively)
|
|
2.0
|
|
|
1.5
|
|
|
4.0
|
|
|
2.9
|
|
||||
Allocation of distributions less than (greater than) earnings
|
|
(0.3
|
)
|
|
(0.1
|
)
|
|
7.8
|
|
|
(0.3
|
)
|
||||
Net income attributable to Previous Owner
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
||||
Total general partner's earnings
|
|
1.7
|
|
|
1.4
|
|
|
11.8
|
|
|
3.2
|
|
||||
Limited partners' earnings on common units:
|
|
|
|
|
|
|
|
|
||||||||
Distributions
|
|
27.5
|
|
|
13.7
|
|
|
54.9
|
|
|
27.1
|
|
||||
Expenses allocated to Common - SunCoke
|
|
—
|
|
|
—
|
|
|
(7.0
|
)
|
|
—
|
|
||||
Allocation of distributions less than (greater than) earnings
|
|
(17.1
|
)
|
|
(4.3
|
)
|
|
(7.8
|
)
|
|
(10.9
|
)
|
||||
Total limited partners' earnings on common units
|
|
10.4
|
|
|
9.4
|
|
|
40.1
|
|
|
16.2
|
|
||||
Limited partners' earnings on subordinated units:
|
|
|
|
|
|
|
|
|
||||||||
Distributions
|
|
—
|
|
|
9.2
|
|
|
—
|
|
|
18.2
|
|
||||
Allocation of distributions greater than earnings
|
|
—
|
|
|
(3.0
|
)
|
|
—
|
|
|
(7.4
|
)
|
||||
Total limited partners' earnings on subordinated units
|
|
—
|
|
|
6.2
|
|
|
—
|
|
|
10.8
|
|
||||
Weighted average limited partner units outstanding:
|
|
|
|
|
|
|
|
|
||||||||
Common - basic and diluted
|
|
46.2
|
|
|
23.6
|
|
|
46.2
|
|
|
23.4
|
|
||||
Subordinated - basic and diluted
|
|
—
|
|
|
15.7
|
|
|
—
|
|
|
15.7
|
|
||||
Net income per limited partner unit:
|
|
|
|
|
|
|
|
|
||||||||
Common - basic and diluted
|
|
$
|
0.23
|
|
|
$
|
0.40
|
|
|
$
|
0.86
|
|
|
$
|
0.69
|
|
Subordinated - basic and diluted
|
|
$
|
—
|
|
|
$
|
0.40
|
|
|
$
|
—
|
|
|
$
|
0.69
|
|
|
|
Common - Public
|
|
Common - SunCoke
|
|
Total Common
|
|
Subordinated - SunCoke
|
||||
At December 31, 2015
|
|
20,787,744
|
|
|
9,705,999
|
|
|
30,493,743
|
|
|
15,709,697
|
|
Units issued to directors
|
|
6,679
|
|
|
—
|
|
|
6,679
|
|
|
—
|
|
Conversion of subordinate units to common units
|
|
—
|
|
|
15,709,697
|
|
|
15,709,697
|
|
|
(15,709,697
|
)
|
At June 30, 2016
|
|
20,794,423
|
|
|
25,415,696
|
|
|
46,210,119
|
|
|
—
|
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||
|
|
|
|
|
||||
|
|
(Dollars in millions)
|
||||||
Coal
|
|
$
|
39.4
|
|
|
$
|
42.5
|
|
Coke
|
|
4.6
|
|
|
5.6
|
|
||
Materials, supplies, and other
|
|
28.8
|
|
|
29.0
|
|
||
Total inventories
|
|
$
|
72.8
|
|
|
$
|
77.1
|
|
|
Coal Logistics
|
||
|
|
||
|
(Dollars in millions)
|
||
Net balance at December 31, 2015
|
$
|
67.7
|
|
Adjustments
(1)
|
(0.6
|
)
|
|
Net balance at June 30, 2016
|
$
|
67.1
|
|
(1)
|
In the first quarter of 2016, a working capital adjustment to the acquisition date fair value of the acquired net assets decreased the amount of the purchase price allocated to goodwill by
$0.6 million
.
|
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
|
Weighted - Average Remaining Amortization Years
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net
|
||||||||||||
|
|
|
(Dollars in millions)
|
||||||||||||||||||||||
Customer contracts
|
6
|
|
$
|
24.0
|
|
|
$
|
2.8
|
|
|
$
|
21.2
|
|
|
$
|
24.0
|
|
|
$
|
1.2
|
|
|
$
|
22.8
|
|
Customer relationships
|
14
|
|
28.7
|
|
|
2.9
|
|
|
25.8
|
|
|
28.7
|
|
|
1.8
|
|
|
26.9
|
|
||||||
Permits
|
26
|
|
139.0
|
|
|
4.5
|
|
|
134.5
|
|
|
139.0
|
|
|
1.9
|
|
|
137.1
|
|
||||||
Trade name
|
2
|
|
1.2
|
|
|
0.7
|
|
|
0.5
|
|
|
1.2
|
|
|
0.6
|
|
|
0.6
|
|
||||||
Total
|
|
|
$
|
192.9
|
|
|
$
|
10.9
|
|
|
$
|
182.0
|
|
|
$
|
192.9
|
|
|
$
|
5.5
|
|
|
$
|
187.4
|
|
|
Amount
|
||
|
|
||
|
(Dollars in millions)
|
||
2016
(1)
|
$
|
5.1
|
|
2017
|
10.5
|
|
|
2018
|
10.5
|
|
|
2019
|
10.3
|
|
|
2020
|
10.3
|
|
|
2021-Thereafter
|
135.3
|
|
|
Total
|
$
|
182.0
|
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||
|
|
|
|
|
||||
|
|
(Dollars in millions)
|
||||||
7.375% senior notes, due 2020 ("Partnership Notes")
|
|
$
|
482.6
|
|
|
$
|
552.5
|
|
Revolving credit facility, due 2019 ("Partnership Revolver")
|
|
182.0
|
|
|
182.0
|
|
||
Promissory note payable, due 2021 ("Promissory Note")
|
|
113.7
|
|
|
114.3
|
|
||
Partnership's term loan, due 2019 ("Partnership Term Loan")
|
|
50.0
|
|
|
50.0
|
|
||
Total borrowings
|
|
828.3
|
|
|
898.8
|
|
||
Original issue premium
|
|
9.1
|
|
|
12.1
|
|
||
Debt issuance cost
|
|
(12.2
|
)
|
|
(15.3
|
)
|
||
Total debt
|
|
825.2
|
|
|
895.6
|
|
||
Less: current portion of long-term debt
|
|
1.1
|
|
|
1.1
|
|
||
Total long-term debt
|
|
$
|
824.1
|
|
|
$
|
894.5
|
|
|
|
Six Months Ended June 30,
|
||||||
|
|
2016
|
|
2015
|
||||
|
|
|
|
|
||||
|
|
(Dollars in millions)
|
||||||
Debt assumed by SunCoke Energy Partners, L.P.
|
|
$
|
—
|
|
|
$
|
135.0
|
|
Net assets of the Previous Owner not assumed by SunCoke Energy Partners, L.P.
|
|
|
|
|
||||
Receivables
|
|
—
|
|
|
9.1
|
|
||
Property, plants and equipment
|
|
—
|
|
|
7.0
|
|
||
Deferred income taxes, net
|
|
—
|
|
|
62.8
|
|
•
|
Level 1—inputs to the valuation methodology are quoted prices (unadjusted) for an identical asset or liability in an active market.
|
•
|
Level 2—inputs to the valuation methodology include quoted prices for a similar asset or liability in an active market or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability.
|
•
|
Level 3—inputs to the valuation methodology are unobservable and significant to the fair value measurement of the asset or liability.
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
(Dollars in millions)
|
||||||||||||||
Sales and other operating revenue:
|
|
|
|
|
|
|
|
|
||||||||
Domestic Coke
|
|
$
|
167.5
|
|
|
$
|
195.7
|
|
|
$
|
346.4
|
|
|
$
|
388.7
|
|
Coal Logistics
|
|
13.9
|
|
|
11.9
|
|
|
29.5
|
|
|
22.2
|
|
||||
Coal Logistics intersegment sales
|
|
1.7
|
|
|
1.6
|
|
|
3.2
|
|
|
3.3
|
|
||||
Elimination of intersegment sales
|
|
(1.7
|
)
|
|
(1.6
|
)
|
|
(3.2
|
)
|
|
(3.3
|
)
|
||||
Total sales and other operating revenue
|
|
$
|
181.4
|
|
|
$
|
207.6
|
|
|
$
|
375.9
|
|
|
$
|
410.9
|
|
Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
||||||||
Domestic Coke
|
|
$
|
41.1
|
|
|
$
|
42.2
|
|
|
$
|
87.4
|
|
|
$
|
90.7
|
|
Coal Logistics
|
|
5.3
|
|
|
5.0
|
|
|
11.2
|
|
|
7.6
|
|
||||
Corporate and Other
|
|
(4.7
|
)
|
|
(2.5
|
)
|
|
(8.7
|
)
|
|
(5.3
|
)
|
||||
Total Adjusted EBITDA
|
|
$
|
41.7
|
|
|
$
|
44.7
|
|
|
$
|
89.9
|
|
|
$
|
93.0
|
|
Depreciation and amortization expense:
|
|
|
|
|
|
|
|
|
||||||||
Domestic Coke
|
|
$
|
12.7
|
|
|
$
|
13.5
|
|
|
$
|
26.0
|
|
|
$
|
26.3
|
|
Coal Logistics
(1)
|
|
7.8
|
|
|
1.9
|
|
|
13.2
|
|
|
3.7
|
|
||||
Total depreciation and amortization expense
|
|
$
|
20.5
|
|
|
$
|
15.4
|
|
|
$
|
39.2
|
|
|
$
|
30.0
|
|
Capital expenditures:
|
|
|
|
|
|
|
|
|
||||||||
Domestic Coke
|
|
$
|
5.5
|
|
|
$
|
10.4
|
|
|
$
|
11.4
|
|
|
$
|
15.7
|
|
Coal Logistics
|
|
8.6
|
|
|
0.3
|
|
|
10.7
|
|
|
0.5
|
|
||||
Total capital expenditures
|
|
$
|
14.1
|
|
|
$
|
10.7
|
|
|
$
|
22.1
|
|
|
$
|
16.2
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
(Dollars in millions)
|
||||||||||||||
Sales and other operating revenue:
|
|
|
|
|
|
|
|
|
||||||||
Cokemaking revenues
|
|
$
|
152.2
|
|
|
$
|
180.8
|
|
|
$
|
315.5
|
|
|
$
|
357.2
|
|
Energy revenues
|
|
14.2
|
|
|
14.9
|
|
|
28.6
|
|
|
31.5
|
|
||||
Coal logistics revenues
|
|
13.6
|
|
|
11.4
|
|
|
28.9
|
|
|
21.5
|
|
||||
Other revenues
|
|
1.4
|
|
|
0.5
|
|
|
2.9
|
|
|
0.7
|
|
||||
Total revenues
|
|
$
|
181.4
|
|
|
$
|
207.6
|
|
|
$
|
375.9
|
|
|
$
|
410.9
|
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||
|
|
|
|
|
||||
|
|
(Dollars in millions)
|
||||||
Segment assets:
|
|
|
|
|
||||
Domestic Coke
|
|
$
|
1,214.2
|
|
|
$
|
1,233.1
|
|
Coal Logistics
|
|
513.7
|
|
|
534.6
|
|
||
Corporate and Other
|
|
2.0
|
|
|
1.2
|
|
||
Total assets
|
|
$
|
1,729.9
|
|
|
$
|
1,768.9
|
|
•
|
does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments;
|
•
|
does not reflect items such as depreciation and amortization;
|
•
|
does not reflect changes in, or cash requirements for, working capital needs;
|
•
|
does not reflect our interest expense, or the cash requirements necessary to service interest on or principal payments of our debt;
|
•
|
does not reflect certain other non-cash income and expenses;
|
•
|
excludes income taxes that may represent a reduction in available cash; and
|
•
|
includes net income attributable to noncontrolling interests.
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
(1)
|
|
2015
|
||||||||
|
|
(Dollars in millions)
|
||||||||||||||
Net cash provided by operating activities
|
|
$
|
67.7
|
|
|
$
|
42.8
|
|
|
$
|
108.1
|
|
|
$
|
72.5
|
|
Subtract:
|
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization expense
|
|
20.5
|
|
|
15.4
|
|
|
39.2
|
|
|
30.0
|
|
||||
(Gain) loss on extinguishment of debt
|
|
(3.5
|
)
|
|
—
|
|
|
(23.9
|
)
|
|
9.4
|
|
||||
Changes in working capital and other
|
|
38.1
|
|
|
9.3
|
|
|
39.7
|
|
|
(1.4
|
)
|
||||
Net income
|
|
$
|
12.6
|
|
|
$
|
18.1
|
|
|
$
|
53.1
|
|
|
$
|
34.5
|
|
Add:
|
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization expense
|
|
$
|
20.5
|
|
|
$
|
15.4
|
|
|
$
|
39.2
|
|
|
$
|
30.0
|
|
Interest expense, net
|
|
11.7
|
|
|
10.8
|
|
|
24.2
|
|
|
22.0
|
|
||||
(Gain) loss on extinguishment of debt
|
|
(3.5
|
)
|
|
—
|
|
|
(23.9
|
)
|
|
9.4
|
|
||||
Income tax, net
|
|
0.4
|
|
|
0.4
|
|
|
1.0
|
|
|
(2.9
|
)
|
||||
Reduction of contingent consideration
(2)
|
|
—
|
|
|
—
|
|
|
(3.7
|
)
|
|
—
|
|
||||
Adjusted EBITDA
|
|
$
|
41.7
|
|
|
$
|
44.7
|
|
|
$
|
89.9
|
|
|
$
|
93.0
|
|
Subtract:
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA attributable to Previous Owner
(3)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1.5
|
|
Adjusted EBITDA attributable to noncontrolling interest
(4)
|
|
0.8
|
|
|
2.6
|
|
|
1.7
|
|
|
5.6
|
|
||||
Adjusted EBITDA attributable to SunCoke Energy Partners, L.P.
|
|
$
|
40.9
|
|
|
$
|
42.1
|
|
|
$
|
88.2
|
|
|
$
|
85.9
|
|
(1)
|
In response to the SEC’s May 2016 update to its guidance on the appropriate use of non-GAAP financial measures, first quarter of 2016 Adjusted EBITDA has been recast to no longer include Coal Logistics deferred revenue until it is recognized as GAAP revenue.
|
(2)
|
The Partnership amended the contingent consideration terms with The Cline Group, which reduced the fair value of the contingent consideration liability, resulting in a
$3.7 million
gain recorded during the six months ended June 30, 2016, which was excluded from Adjusted EBITDA.
|
(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.
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
Facility
|
|
Location
|
|
Coke
Customer
|
|
Year of
Start Up
|
|
Contract
Expiration
|
|
Number of
Coke Ovens
|
|
Annual Cokemaking
Capacity
(thousands of tons)
|
|
Use of Waste Heat
|
||
Granite City
|
|
Granite City, Illinois
|
|
U.S. Steel
|
|
2009
|
|
2025
|
|
120
|
|
|
650
|
|
|
Steam for power generation
|
Haverhill 1
|
|
Franklin Furnace, Ohio
|
|
ArcelorMittal
|
|
2005
|
|
2020
|
|
100
|
|
|
550
|
|
|
Process steam
|
Haverhill 2
|
|
Franklin Furnace, Ohio
|
|
AK Steel
|
|
2008
|
|
2022
|
|
100
|
|
|
550
|
|
|
Power generation
|
Middletown
(1)
|
|
Middletown, Ohio
|
|
AK Steel
|
|
2011
|
|
2032
|
|
100
|
|
|
550
|
|
|
Power generation
|
Total
|
|
|
|
|
|
|
|
|
|
420
|
|
|
2,300
|
|
|
|
(1)
|
Cokemaking capacity represents stated capacity for the production of blast furnace coke. The Middletown coke sales agreement provides for coke sales on a “run of oven” basis, which includes both blast furnace coke and small coke. Middletown capacity on a “run of oven” basis is
578 thousand
tons per year.
|
•
|
Total revenues
decreased
$26.2 million
, or
12.6 percent
, to
$181.4 million
in the
three months ended June 30, 2016
primarily due to the pass-through of lower coal prices in our Domestic Coke segment and lower sales volumes.
|
•
|
Net income attributable to unitholders
decreased
$4.9 million
to
$12.1 million
for the
three months ended June 30, 2016
due to lower Coal Logistics sales volumes and the write-off of a $1.4 million receivable related to 2015 spot coke sales to Essar Algoma, partially offset by a
$3.5 million
gain on extinguishment of debt.
|
•
|
Cash distributions paid per unit were $0.5940 and $0.5715 during the
three months ended June 30, 2016
and
2015
, respectively.
|
•
|
Adjusted EBITDA
decreased
$3.0 million
to
$41.7 million
in the
three months ended June 30, 2016
compared to
$44.7 million
for the same period in
2015
due to lower Coal Logistics sales volumes and the $1.4 million write-off discussed above. These decreases were partially offset by contributions from CMT, which increased Adjusted EBITDA by
$4.2 million
.
|
•
|
Convent Marine Terminal.
Comparability between periods was impacted by the timing of the acquisition of CMT during the third quarter of 2015. CMT contributed revenues of $7.0 million and $14.7 million, respectively, costs and operating expense of $6.4 million and $10.2 million, respectively, and Adjusted EBITDA of $4.2 million and $8.0 million during three and six months ended June 30, 2016, respectively. The costs and operating expenses for the six months ended June 30, 2016, included the $3.7 million gain from the reduction in fair value to the contingent consideration liability discussed below.
|
•
|
Contingent consideration.
In connection with the CMT acquisition, the Partnership entered into a contingent consideration arrangement that requires the Partnership to make future payments to The Cline Group based on future volumes over a specified threshold, price, and contract renewals.
During the first quarter of 2016, the Partnership amended the contingent consideration terms with The Cline Group, which reduced the fair value of the contingent consideration liability
, resulting in a $3.7 million gain recognized as a reduction to costs of products sold and operating expenses on the Combined and Consolidated Statements of Income during the six months ended June 30, 2016.
|
•
|
Energy sales.
Until the second quarter of 2015, Haverhill 1 sold steam to Haverhill Chemicals, which filed for relief under Chapter 11 of the U.S. Bankruptcy Code during 2015. Beginning in the fourth quarter of 2015, Haverhill 1 provided steam, at no cost, to Altivia Petrochemicals, LLC ("Altivia"), which purchased the facility from Haverhill Chemicals. In the current arrangement, the Partnership is not currently generating revenues from providing steam to Altivia, which may be renegotiated beginning in 2018. The current arrangement mitigates costs associated with disposing of steam as well as potential compliance issues. Both revenues and Adjusted EBITDA decreased $0.6 million and $2.6 million during three and six months ended June 30, 2016, respectively, compared to the corresponding period of 2015 as a result of these arrangements.
|
•
|
(Gain) loss on extinguishment of debt.
During the three and six months ended June 30, 2016, the Partnership recognized a gain on extinguishment of debt of
$3.5 million
and
$23.9 million
, respectively, in connection with the repurchase of Partnership Notes. See
Note 7
to our combined and consolidated financial statements.
|
•
|
Income taxes
.
Income tax expense was
$1.0 million
for six months ended June 30, 2016 compared to the income tax benefit of
$2.9 million
in the same prior year period. The periods presented are not comparable, as earnings from the six months ended June 30, 2015 includes an income tax benefit of
$4.0 million
related to the tax impacts of the Granite City Dropdown.
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
(Dollars in millions)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
||||||||
Sales and other operating revenue
|
|
$
|
181.4
|
|
|
$
|
207.6
|
|
|
$
|
375.9
|
|
|
$
|
410.9
|
|
Costs and operating expenses
|
|
|
|
|
|
|
|
|
||||||||
Cost of products sold and operating expenses
|
|
128.6
|
|
|
155.6
|
|
|
262.8
|
|
|
303.0
|
|
||||
Selling, general and administrative expenses
|
|
11.1
|
|
|
7.3
|
|
|
19.5
|
|
|
14.9
|
|
||||
Depreciation and amortization expense
|
|
20.5
|
|
|
15.4
|
|
|
39.2
|
|
|
30.0
|
|
||||
Total costs and operating expenses
|
|
160.2
|
|
|
178.3
|
|
|
321.5
|
|
|
347.9
|
|
||||
Operating income
|
|
21.2
|
|
|
29.3
|
|
|
54.4
|
|
|
63.0
|
|
||||
Interest expense, net
|
|
11.7
|
|
|
10.8
|
|
|
24.2
|
|
|
22.0
|
|
||||
(Gain) loss on extinguishment of debt
|
|
(3.5
|
)
|
|
—
|
|
|
(23.9
|
)
|
|
9.4
|
|
||||
Income before income tax expense
|
|
13.0
|
|
|
18.5
|
|
|
54.1
|
|
|
31.6
|
|
||||
Income tax expense (benefit)
|
|
0.4
|
|
|
0.4
|
|
|
1.0
|
|
|
(2.9
|
)
|
||||
Net income
|
|
12.6
|
|
|
18.1
|
|
|
53.1
|
|
|
34.5
|
|
||||
Less: Net income attributable to noncontrolling interests
|
|
0.5
|
|
|
1.1
|
|
|
1.2
|
|
|
4.3
|
|
||||
Net income attributable to SunCoke Energy Partners, L.P./Previous Owner
|
|
$
|
12.1
|
|
|
$
|
17.0
|
|
|
$
|
51.9
|
|
|
$
|
30.2
|
|
Less: Net income attributable to Previous Owner
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
||||
Net income attributable to SunCoke Energy Partners, L.P.
|
|
$
|
12.1
|
|
|
$
|
17.0
|
|
|
$
|
51.9
|
|
|
$
|
29.6
|
|
•
|
Domestic Coke consists of our Haverhill, Middletown and Granite City cokemaking and heat recovery operations located in Franklin Furnace, Ohio; Middletown, Ohio; and Granite City, Illinois, respectively.
|
•
|
Coal Logistics consists of our coal handling and/or mixing services in East Chicago, Indiana; Ceredo, West Virginia; Belle, West Virginia; and Convent, Louisiana.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Sales and other operating revenues:
|
|
|
|
|
|
|
|
||||||||
Domestic Coke
|
$
|
167.5
|
|
|
$
|
195.7
|
|
|
$
|
346.4
|
|
|
$
|
388.7
|
|
Coal Logistics
|
13.9
|
|
|
11.9
|
|
|
29.5
|
|
|
22.2
|
|
||||
Coal Logistics intersegment sales
|
1.7
|
|
|
1.6
|
|
|
3.2
|
|
|
3.3
|
|
||||
Elimination of intersegment sales
|
(1.7
|
)
|
|
(1.6
|
)
|
|
(3.2
|
)
|
|
(3.3
|
)
|
||||
Total
|
$
|
181.4
|
|
|
$
|
207.6
|
|
|
$
|
375.9
|
|
|
$
|
410.9
|
|
Adjusted EBITDA
(1)
:
|
|
|
|
|
|
|
|
||||||||
Domestic Coke
|
$
|
41.1
|
|
|
$
|
42.2
|
|
|
$
|
87.4
|
|
|
$
|
90.7
|
|
Coal Logistics
|
5.3
|
|
|
5.0
|
|
|
11.2
|
|
|
7.6
|
|
||||
Corporate and Other
|
(4.7
|
)
|
|
(2.5
|
)
|
|
(8.7
|
)
|
|
(5.3
|
)
|
||||
Total
|
$
|
41.7
|
|
|
$
|
44.7
|
|
|
$
|
89.9
|
|
|
$
|
93.0
|
|
Domestic Coke Operating Data:
|
|
|
|
|
|
|
|
||||||||
Domestic Coke capacity utilization (%)
|
101
|
|
|
106
|
|
|
102
|
|
|
106
|
|
||||
Domestic Coke production volumes (thousands of tons)
|
583
|
|
|
605
|
|
|
1,158
|
|
|
1,209
|
|
||||
Domestic Coke sales volumes (thousands of tons)
|
579
|
|
|
633
|
|
|
1,160
|
|
|
1,211
|
|
||||
Domestic Coke Adjusted EBITDA per ton
(2)
|
$
|
70.98
|
|
|
$
|
66.67
|
|
|
$
|
75.34
|
|
|
$
|
74.90
|
|
Coal Logistics Operating Data:
|
|
|
|
|
|
|
|
||||||||
Tons handled, excluding CMT (thousands of tons)
(3)
|
2,962
|
|
|
4,366
|
|
|
6,052
|
|
|
8,160
|
|
||||
Tons handled by CMT (thousands of tons)
(3)
|
976
|
|
|
—
|
|
|
1,921
|
|
|
—
|
|
(1)
|
See definition of Adjusted EBITDA and reconciliation to GAAP at the end of this Item.
|
(2)
|
Reflects Domestic Coke Adjusted EBITDA divided by Domestic Coke sales volumes.
|
(3)
|
Reflects inbound tons handled during the period.
|
|
|
Six Months Ended June 30,
|
||||||
|
|
2016
|
|
2015
|
||||
|
|
|
|
|
||||
|
|
(Dollars in millions)
|
||||||
Net cash provided by operating activities
|
|
$
|
108.1
|
|
|
$
|
72.5
|
|
Net cash used in investing activities
|
|
(4.6
|
)
|
|
(16.2
|
)
|
||
Net cash (used in) provided by financing activities
|
|
(98.0
|
)
|
|
9.3
|
|
||
Net increase in cash and cash equivalents
|
|
$
|
5.5
|
|
|
$
|
65.6
|
|
•
|
Ongoing capital expenditures required to maintain equipment reliability, ensure the integrity and safety of our coke ovens and steam generators and to comply with environmental regulations. Ongoing capital expenditures are made to replace partially or fully depreciated assets in order to maintain the existing operating capacity of the assets and/or to extend their useful lives and also include new equipment that improves the efficiency, reliability or effectiveness of existing assets. Ongoing capital expenditures do not include normal repairs and maintenance expenses, which are expensed as incurred;
|
•
|
Environmental remediation project expenditures required to implement design changes to ensure that our existing facilities operate in accordance with existing environmental permits; and
|
•
|
Expansion capital expenditures to acquire and/or 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 and on which we expect to earn a reasonable return.
|
|
|
Six Months Ended June 30,
|
||||||
|
|
2016
|
|
2015
|
||||
|
|
|
|
|
||||
|
|
(Dollars in millions)
|
||||||
Ongoing capital
|
|
$
|
6.3
|
|
|
$
|
9.8
|
|
Environmental remediation capital
(1)
|
|
5.1
|
|
|
6.4
|
|
||
Expansion capital - CMT
(2)
|
|
10.7
|
|
|
—
|
|
||
Total
|
|
$
|
22.1
|
|
|
$
|
16.2
|
|
(1)
|
Includes capitalized interest of
$1.4 million
and
$1.5 million
during the
six months ended June 30, 2016
and
2015
, respectively.
|
(2)
|
Includes capital expenditures of
$9.5 million
on the ship loader expansion project paid for with pre-funded cash, which was restricted in conjunction with the acquisition of CMT and
$1.2 million
of interest capitalized in connection with the project.
|
•
|
does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments;
|
•
|
does not reflect items such as depreciation and amortization;
|
•
|
does not reflect changes in, or cash requirements for, working capital needs;
|
•
|
does not reflect our interest expense, or the cash requirements necessary to service interest on or principal payments of our debt;
|
•
|
does not reflect certain other non-cash income and expenses;
|
•
|
excludes income taxes that may represent a reduction in available cash; and
|
•
|
includes net income attributable to noncontrolling interests.
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
(1)
|
|
2015
|
||||||||
|
|
(Dollars in millions)
|
||||||||||||||
Net cash provided by operating activities
|
|
$
|
67.7
|
|
|
$
|
42.8
|
|
|
$
|
108.1
|
|
|
$
|
72.5
|
|
Subtract:
|
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization expense
|
|
20.5
|
|
|
15.4
|
|
|
39.2
|
|
|
30.0
|
|
||||
(Gain) loss on extinguishment of debt
|
|
(3.5
|
)
|
|
—
|
|
|
(23.9
|
)
|
|
9.4
|
|
||||
Changes in working capital and other
|
|
38.1
|
|
|
9.3
|
|
|
39.7
|
|
|
(1.4
|
)
|
||||
Net income
|
|
$
|
12.6
|
|
|
$
|
18.1
|
|
|
$
|
53.1
|
|
|
$
|
34.5
|
|
Add:
|
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization expense
|
|
$
|
20.5
|
|
|
$
|
15.4
|
|
|
$
|
39.2
|
|
|
$
|
30.0
|
|
Interest expense, net
|
|
11.7
|
|
|
10.8
|
|
|
24.2
|
|
|
22.0
|
|
||||
(Gain) loss on extinguishment of debt
|
|
(3.5
|
)
|
|
—
|
|
|
(23.9
|
)
|
|
9.4
|
|
||||
Income tax, net
|
|
0.4
|
|
|
0.4
|
|
|
1.0
|
|
|
(2.9
|
)
|
||||
Reduction of contingent consideration
(2)
|
|
—
|
|
|
—
|
|
|
(3.7
|
)
|
|
—
|
|
||||
Adjusted EBITDA
|
|
$
|
41.7
|
|
|
$
|
44.7
|
|
|
$
|
89.9
|
|
|
$
|
93.0
|
|
Subtract:
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA attributable to Previous Owner
(3)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1.5
|
|
Adjusted EBITDA attributable to noncontrolling interest
(4)
|
|
0.8
|
|
|
2.6
|
|
|
1.7
|
|
|
5.6
|
|
||||
Adjusted EBITDA attributable to SunCoke Energy Partners, L.P.
|
|
$
|
40.9
|
|
|
$
|
42.1
|
|
|
$
|
88.2
|
|
|
$
|
85.9
|
|
(1)
|
In response to the Securities & Exchange Commission’s May 2016 update to its guidance on the appropriate use of non-GAAP financial measures, first quarter of 2016 Adjusted EBITDA has been recast to no longer include Coal Logistics deferred revenue until it is recognized as GAAP revenue.
|
(2)
|
The Partnership amended the contingent consideration terms with The Cline Group, which reduced the fair value of the contingent consideration liability, resulting in a
$3.7 million
gain recorded during the six months ended June 30, 2016, which was excluded from Adjusted EBITDA.
|
(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.
|
|
|
2016
|
||||||
|
|
Low
|
|
High
|
||||
Net cash provided by operating activities
|
|
$
|
149
|
|
|
$
|
163
|
|
Subtract:
|
|
|
|
|
||||
Depreciation and amortization expense
|
|
74
|
|
|
74
|
|
||
Gain on extinguishment of debt
|
|
(20
|
)
|
|
(27
|
)
|
||
Changes in working capital and other
|
|
(7
|
)
|
|
(7
|
)
|
||
Net Income
|
|
$
|
102
|
|
|
$
|
123
|
|
Add:
|
|
|
|
|
||||
Depreciation and amortization expense
|
|
74
|
|
|
74
|
|
||
Interest expense, net
|
|
57
|
|
|
53
|
|
||
(Gain) loss on extinguishment of debt
|
|
(20
|
)
|
|
(27
|
)
|
||
Income tax expense
|
|
1
|
|
|
1
|
|
||
Reduction of contingent consideration
(1)
|
|
(4
|
)
|
|
(4
|
)
|
||
Adjusted EBITDA
|
|
$
|
210
|
|
|
$
|
220
|
|
Subtract: Adjusted EBITDA attributable to noncontrolling interest
(2)
|
|
3
|
|
|
3
|
|
||
Adjusted EBITDA attributable to SunCoke Energy Partners, L.P.
|
|
$
|
207
|
|
|
$
|
217
|
|
(1)
|
The Partnership amended the contingent consideration terms with The Cline Group, which reduced the fair value of the contingent consideration liability, resulting in a
$3.7 million
gain recorded during the six months ended June 30, 2016, which was excluded from Adjusted EBITDA.
|
(2)
|
Reflects net income attributable to noncontrolling interest adjusted for noncontrolling interest's share of interest, taxes, income, and depreciation and amortization.
|
•
|
changes in levels of production, production capacity, pricing and/or margins for coal and coke;
|
•
|
variation in availability, quality and supply of metallurgical coal used in the cokemaking process, including as a result of non-performance by our suppliers;
|
•
|
changes in the marketplace that may affect our coal logistics business, including the supply and demand for thermal and/or metallurgical coals;
|
•
|
changes in the marketplace that may affect our cokemaking business, including the supply and demand for our coke, as well as increased imports of coke from foreign producers;
|
•
|
competition from alternative steelmaking and other technologies that have the potential to reduce or eliminate the use of coke;
|
•
|
our dependence on, relationships with, and other conditions affecting, our customers;
|
•
|
severe financial hardship or bankruptcy of one or more of our major customers, or the occurrence of a customer default or other event affecting our ability to collect payments from our customers;
|
•
|
volatility and cyclical downturns in the coal market, in the carbon steel industry and other industries in which our customers operate;
|
•
|
our ability to enter into new, or renew existing, long-term agreements upon favorable terms for the sale of coke steam, or electric power, or for coal handling and logistics services;
|
•
|
our ability to identify acquisitions, execute them under favorable terms and integrate them into our existing business operations;
|
•
|
our ability to realize expected benefits from investments and acquisitions;
|
•
|
our ability to consummate investments under favorable terms, including with respect to existing cokemaking facilities, which may utilize by-product technology, in the U.S. and Canada, and integrate them into our existing businesses and have them perform at anticipated levels;
|
•
|
our ability to develop, design, permit, construct, start up or operate new cokemaking facilities in the U.S.;
|
•
|
our ability to successfully implement our growth strategy;
|
•
|
age of, and changes in the reliability, efficiency and capacity of the various equipment and operating facilities used in our cokemaking and/or coal logistics operations, and in the operations of our major customers, business partners and/or suppliers;
|
•
|
changes in the expected operating levels of our assets;
|
•
|
our ability to meet minimum volume requirements, coal-to-coke yield standards and coke quality standards in our coke sales agreements;
|
•
|
changes in the level of capital expenditures or operating expenses, including any changes in the level of environmental capital, operating or remediation expenditures;
|
•
|
our ability to service our outstanding indebtedness;
|
•
|
our ability to comply with the restrictions imposed by our financing arrangements;
|
•
|
our ability to comply with federal or state environmental statutes, rules or regulations;
|
•
|
nonperformance or force majeure by, or disputes with, or changes in contract terms with, major customers, suppliers, dealers, distributors or other business partners;
|
•
|
availability of skilled employees for our cokemaking and/or coal logistics operations, and other workplace factors;
|
•
|
effects of railroad, barge, truck and other transportation performance and costs, including any transportation disruptions;
|
•
|
effects of adverse events relating to the operation of our facilities and to the transportation and storage of hazardous materials (including equipment malfunction, explosions, fires, spills, and the effects of severe weather conditions);
|
•
|
effects of adverse events relating to the business or commercial operations of all customers or supplies;
|
•
|
disruption in our information technology infrastructure and/or loss of our ability to securely store, maintain, or transmit data due to security breach by hackers, employee error or malfeasance, terrorist attack, power loss, telecommunications failure or other events;
|
•
|
our ability to enter into joint ventures and other similar arrangements under favorable terms;
|
•
|
our ability to consummate assets sales, other divestitures and strategic restructuring in a timely manner upon favorable terms, and/or realize the anticipated benefits from such actions;
|
•
|
changes in the availability and cost of equity and debt financing;
|
•
|
impact on our liquidity and ability to raise capital as a result of changes in the credit ratings assigned to our indebtedness;
|
•
|
changes in credit terms required by our suppliers;
|
•
|
risks related to labor relations and workplace safety;
|
•
|
proposed or final changes in existing, or new, statutes, regulations, rules, governmental policies and taxes, or their interpretations, including those relating to environmental matters and taxes;
|
•
|
the existence of hazardous substances or other environmental contamination on property owned or used by us;
|
•
|
receipt of regulatory approvals and compliance with contractual obligations required in connection with our operations;
|
•
|
claims of noncompliance with any statutory and regulatory requirements;
|
•
|
the accuracy of our estimates of any necessary reclamation and/or remediation activities;
|
•
|
proposed or final changes in accounting and/or tax methodologies, laws, regulations, rules, or policies, or their interpretations, including those affecting inventories, leases, pensions, or income;
|
•
|
historical combined and consolidated financial data may not be reliable indicator of future results;
|
•
|
public company costs;
|
•
|
our indebtedness and certain covenants in our debt documents;
|
•
|
changes in product specifications for the coke that we produce or the coals that we mix, store and transport;
|
•
|
changes in insurance markets impacting costs and the level and types of coverage available, and the financial ability of our insurers to meet their obligations;
|
•
|
changes in accounting rules and/or tax laws or their interpretations, including the method of accounting for inventories, leases and/or pensions;
|
•
|
changes in financial markets impacting pension expense and funding requirements;
|
•
|
inadequate protection of our intellectual property rights; and
|
•
|
effects of geologic conditions, weather, natural disasters and other inherent risks beyond our control.
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4.
|
Controls and Procedures
|
Item 1.
|
Legal Proceedings
|
Item 1A.
|
Risk Factors
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Item 6.
|
Exhibits
|
Exhibit
Number
|
|
|
|
Description
|
|
|
|
|
|
31.1*
|
|
|
|
Chief Executive Officer Certification Pursuant to Exchange Act Rule 13a-14(a) or Rule 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
||
31.2*
|
|
|
|
Chief Financial Officer Certification Pursuant to Exchange Act Rule 13a-14(a) or Rule 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
|
32.1*
|
|
|
|
Chief Executive Officer Certification Pursuant to Exchange Act Rule 13a-14(b) or Rule 15d-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code, as Adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
|
32.2*
|
|
|
|
Chief Financial Officer Certification Pursuant to Exchange Act Rule 13a-14(b) or Rule 15d-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code, as Adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
|
95.1*
|
|
|
|
Mine Safety Disclosures
|
|
|
|
|
|
101*
|
|
|
|
The following financial statements from SunCoke Energy Partners L.P.'s Quarterly Report on Form 10-Q for the three months ended June 30, 2016, filed with the Securities and Exchange Commission on July 29, 2016, formatted in XBRL (eXtensible Business Reporting Language is attached to this report): (i) the Combined and Consolidated Statements of Income; (ii) the Consolidated Balance Sheets; (iii) the Combined and Consolidated Statements of Cash Flows; (iv) the Consolidated Statement of Equity; and, (v) the Notes to Combined and Consolidated Financial Statements.
|
*
|
Filed herewith.
|
SunCoke Energy Partners, L.P.
|
||
|
|
|
By:
|
|
SunCoke Energy Partners GP LLC, its general partner
|
|
|
|
By:
|
|
/s/ Fay West
|
|
|
Fay West
|
|
|
Senior Vice President and Chief Financial Officer
(As Principal Financial Officer and Duly Authorized Officer of SunCoke Energy Partners GP LLC)
|
1 Year Suncoke Energy Partners, L.P. Common Units Representing Limited Partner Interests Chart |
1 Month Suncoke Energy Partners, L.P. Common Units Representing Limited Partner Interests Chart |
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions