SunCoke Energy, Inc. (NYSE:SXC) Q3 2023 Earnings Conference Call November 1, 2023 11:00 AM ET

Company Participants

Shantanu Agrawal - Investor Relations

Katherine Gates - President

Mark Marinko - Senior Vice President & Chief Financial Officer

Conference Call Participants

Lucas Pipes - B. Riley

Nathan Martin - Benchmark Company

Operator

Good morning, everyone and welcome to the SunCoke Energy Third Quarter 2023 Earnings Call. My name is Chad and I'll be coordinating your call today. [Operator Instructions] I'd now like to hand over to Shantanu Agrawal, VP Finance to begin. Please go ahead.

Shantanu Agrawal

Thank you, Chad. Good morning and thank you for joining us this morning to discuss SunCoke Energy's third quarter 2023 results. With me today are Mike Rippey, Chief Executive Officer; Katherine Gates, President; and Mark Marinko, Senior Vice President and Chief Financial Officer. Following management's prepared remarks, we'll open the call for Q&A. This conference call is being webcast live on the Investor Relations section of our website and a replay will be available later today. If we do not get to your questions on the call today, please feel free to reach out to our Investor Relations team.

Before I turn things over to Katherine, let me remind you that the various remarks we make on today's call regarding future expectations constitute forward-looking statements. The cautionary language regarding forward-looking statements in our SEC filings apply to the remarks we make today. These documents are available on our website as are reconciliations to non-GAAP financial measures discussed on today's call.

With that, I'll now turn things over to Katherine.

Katherine Gates

Thanks, Shantanu. Good morning and thank you for joining us on today's call. Earlier today, we announced SunCoke Energy's Third Quarter Results. Before I turn it over to Mark to review the results in detail, I do want to share a few highlights from Q3. I'd like to start by thanking all of our SunCoke employees for their contributions to our third quarter results. Our domestic coke plants operated well and continued to run at full capacity. When compared to last year's record third quarter results, we delivered lower contribution margins on noncontracted blast coke sales. Similarly, our logistics terminals continued to operate well but saw lower volumes and pricing driven by weaker demand during the quarter.

Through our collective efforts, we delivered consolidated adjusted EBITDA of $65.4 million. We continue to successfully navigate through challenging market conditions with all of our noncontracted blast furnace coke sales finalized for the remainder of the year. Earlier today, we announced a $0.10 per share dividend payable to shareholders on December 1, 2023. From a balance sheet perspective, we ended the third quarter with a strong liquidity position of $475.9 million. Our gross leverage was approximately 1.91x on a trailing 12-month adjusted EBITDA basis at the end of the quarter. Finally, we continue to execute against our 2023 objectives and remain well positioned to achieve the high end of our full year adjusted EBITDA guidance range of $250 million to $265 million. With that, I'll turn it over to Mark to review our third quarter earnings in detail. Mark?