SunCoke Energy, Inc. (NYSE:SXC) Q3 2024 Earnings Conference Call October 31, 2024 11:00 AM ET

Company Participants

Shantanu Agrawal - Vice President, Finance and Treasurer
Katherine Gates - President and Chief Executive Officer
Mark Marinko - Senior Vice President and Chief Financial Officer

Conference Call Participants

Nick Giles - B. Riley

Operator

Good day, and welcome to the Third Quarter 2024 SunCoke Energy, Inc. Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Shantanu Agrawal, Vice President, Finance and Treasurer. Please go ahead.

Shantanu Agrawal

Thanks, Meghan. Good morning, and thank you for joining us this morning to discuss SunCoke Energy's third quarter 2024 results.

With me today are Katherine Gates, President and Chief Executive Officer, 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 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.

This morning, we announced SunCoke Energy's third quarter results. I want to share a few highlights from the quarter as well as some updates on our 2024 key initiatives. First, I would like to thank all of our employees for their contributions to our results. Our domestic coke plants continued to run at full capacity and our logistics terminals again had strong results. Through our collective efforts, we delivered consolidated adjusted EBITDA of $75.3 million during the quarter.

This includes a one-time gain of $9.5 million due to a regulatory exemption received from the Department of Labor that eliminates the majority of our legacy federal black lung liabilities. From a leverage perspective, we ended the quarter at 1.86 times on a trailing 12 months adjusted EBITDA basis. Finally, we are increasing our guidance and now expect full year consolidated adjusted EBITDA between $260 million to $270 million, primarily driven by favorable logistics performance and the gain from the Department of Labor regulatory exemption.