sxc-20210331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

____________________________________________________________________

FORM 10-Q

_____________________________________________________________________


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-35243

_____________________________________________________________________

SUNCOKE ENERGY, INC.

(Exact name of registrant as specified in its charter)

______________________________________________________________________


Delaware						90-0640593
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

1011 Warrenville Road, Suite 600

Lisle, Illinois 60532

(630) 824-1000

(Registrant’s telephone number, including area code)

____________________________________________________________

Securities registered pursuant to section 12(b) of the Act:

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.01 per share

SXC

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ý Yes ¨ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ý Yes ¨ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). ☐ Yes ý No

As of April 23, 2021, there were 82,977,875 shares of the Registrant’s $0.01 par value Common Stock outstanding.

Table of Contents

SUNCOKE ENERGY, INC.

TABLE OF CONTENTS


PART I – FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements			1

Consolidated Statements of Income (Unaudited) For the Three Months Ended March 31, 2021 and 2020			1

Consolidated Statements of Comprehensive Income (Unaudited) For the Three Months Ended March 31, 2021 and 2020			2

Consolidated Balance Sheets at March 31, 2021 (Unaudited) and December 31, 2020			3

Consolidated Statements of Cash Flows (Unaudited) For the Three Months Ended March 31, 2021 and 2020			4

Consolidated Statements of Equity (Unaudited) For the Three Months Ended March 31, 2021 and 2020			5

Notes to the Consolidated Financial Statements			6

1. General			6

2. Inventories			7

3. Intangible Assets			7

4. Income Taxes			7

5. Accrued Liabilities			8

6. Debt and Financing Obligation			8

7. Commitments and Contingent Liabilities			9

8. Share-Based Compensation			10

9. Earnings per Share			11

10. Fair Value Measurement			12

11. Revenue from Contracts with Customers			12

12. Business Segment Information			14





Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			16

Item 3. Quantitative and Qualitative Disclosures about Market Risk			28

Item 4. Controls and Procedures			28

PART II – OTHER INFORMATION

Item 1. Legal Proceedings			29

Item 1A. Risk Factors			29

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			29

Item 4. Mine Safety Disclosures			29

Item 6. Exhibits*			30

Signature			31

*Included as Exhibit 99.1 to this Quarterly Report on Form 10-Q are unaudited financial statements of SunCoke Energy Partners Finance Corp. ("Finance Corp."), to comply with applicable reporting requirements of the indenture dated May 24, 2017, by and among SunCoke Energy Partners, L.P. ("the Partnership"), which merged with and into Finance Corp. on January 1, 2020 and resulted in Finance Corp. replacing the Partnership as the issuer pursuant to a supplemental indenture, and The Bank of New York Mellon Trust Company, N.A., as amended by the supplemental indentures, dated August 5, 2019 and January 1, 2020.

Table of Contents

PART I – FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements

SunCoke Energy, Inc.

Consolidated Statements of Income

(Unaudited)


	Three Months Ended March 31,
	2021		2020

	(Dollars and shares in millions, except per share amounts)
Revenues
Sales and other operating revenue	$	359.9	$	382.7
Costs and operating expenses
Cost of products sold and operating expenses	274.0		304.4
Selling, general and administrative expenses	15.3		16.2
Depreciation and amortization expense	32.4		34.1
Total costs and operating expenses	321.7		354.7
Operating income	38.2		28.0
Interest expense, net	12.7		14.6
Gain on extinguishment of debt	—		(2.9)
Income before income tax expense	25.5		16.3
Income tax expense	7.3		10.4
Net income	18.2		5.9
Less: Net income attributable to noncontrolling interests	1.7		1.0
Net income attributable to SunCoke Energy, Inc.	$	16.5	$	4.9
Earnings attributable to SunCoke Energy, Inc. per common share:
Basic	$	0.20	$	0.06
Diluted	$	0.20	$	0.06
Weighted average number of common shares outstanding:
Basic	82.8		83.7
Diluted	83.5		83.9

(See Accompanying Notes)

Table of Contents

SunCoke Energy, Inc.

Consolidated Statements of Comprehensive Income

(Unaudited)


	Three Months Ended March 31,
	2021		2020

	(Dollars in millions)
Net income	$	18.2	$	5.9
Other comprehensive income:
Reclassifications of prior service benefit and actuarial benefit amortization to earnings, net of tax	0.1		—
Currency translation adjustment	(0.7)		(1.1)
Comprehensive income	17.6		4.8
Less: Comprehensive income attributable to noncontrolling interests	1.7		1.0
Comprehensive income attributable to SunCoke Energy, Inc.	$	15.9	$	3.8

(See Accompanying Notes)

Table of Contents

SunCoke Energy, Inc.

Consolidated Balance Sheets


	March 31, 2021		December 31, 2020
	(Unaudited)
	(Dollars in millions, except par value amounts)
Assets
Cash and cash equivalents	$	54.0	$	48.4
Receivables, net	45.8		46.3
Inventories	136.1		126.6
Income tax receivable	1.7		5.5
Other current assets	6.7		2.9
Total current assets	244.3		229.7
Properties, plants and equipment (net of accumulated depreciation of $1,065.3 million and $1,032.9 million at March 31, 2021 and December 31, 2020, respectively)	1,304.9		1,328.0
Intangible assets, net	36.7		37.2
Deferred charges and other assets	19.2		18.5
Total assets	$	1,605.1	$	1,613.4
Liabilities and Equity
Accounts payable	$	106.2	$	104.1
Accrued liabilities	46.0		49.8
Current portion of financing obligation	3.0		3.0
Interest payable	13.0		2.0
Total current liabilities	168.2		158.9
Long-term debt and financing obligation	641.6		673.9
Accrual for black lung benefits	60.9		60.0
Retirement benefit liabilities

SEC Form 10-Q filed by SunCoke Energy, Inc.