SunCoke Energy Partners LP (NYSE: SXCP) Gears Up For Earnings Report


SunCoke Energy Partners LP (NYSE: SXCP) has updated on when it will release 2Q2016 earnings results and what will change in its adjusted EBITDA reports. The company said that 2Q financial results and operational update will be released on July 28 just before the markets open.

After the release of the results, the company will hold a conference call at which the management will discuss the quarterly performance in details. But a few things will change in SXCP’s future earnings report with one of them being adjusted EBITDA.

The company said that it has decided to exclude Coal Logistics deferred revenue from its adjusted EBITDA. It said the move is in response to changes in SEC’s view concerning the appropriate use of non-GAAP measures in financial reports. What the change means is that any deferred revenue recorded will not reflect on adjusted EBITDA until when it is recognized as GAAP revenue.

SunCoke Energy Partners LP (NYSE:SXCP) said the change in definition of adjusted EBITDA will neither affects its full-year 2016 results nor consolidated adjusted EBITDA for the year. The company is expecting consolidated adjusted EBITDA for the year in the band of $210 to $235 million. Additionally, adjusted revenue attributable to shareholders is expected to come in the range of $105 to $124 million.

SXCP projected 2016 capital expenditure of about $45 million.

What happened in 1Q?

SXCP had a fairly successful 1Q2016 in which adjusted EPS of $0.05 outpaced the consensus estimate by $0.01 despite reported EPS falling 16.7% from a year ago. On GAAP basis, the company posted EPS loss of $0.06, which was flat compared to the same quarter a year ago.

Revenue in the quarter came in at $311.1 million, indicating a 4% pullback from a year-ago quarter. Lower coal prices at the company’s domestic coke division were responsible for the decline in topline figure.

Financial position SunCoke Energy Partners LP (NYSE: SXCP)

But SunCoke Energy Partners LP (NYSE: SXCP) managed to strengthen its balance sheet in 1Q, reducing its long-term debt to $944.8 million from $997.7 million in the prior quarter. But the debt reduction ate into the company’s cash positions, thus reducing its cash and equivalents to just $101.8 million compared to $123.4 million a year ago.


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