11/1/2021

speaker
David
Conference Operator

Good morning. My name is David, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Suncoke Energy third quarter 2021 earnings call. Today's conference is being recorded. All lines have been placed on mute to prevent any background noise. After the speaker remarks, there will be a question and answer session. If you would like to ask a question during that time, simply press the number 1 followed by a star. If you'd like to withdraw your question, press star 1 once again. I'll now turn the call over to Shantanu Agrawal, Head of Investor Relations. You may begin your conference.

speaker
Shantanu Agrawal
Head of Investor Relations

Thanks, David. Good morning, and thank you for joining us this morning to discuss Suncook Energy's third quarter 2021 results. With me today is Mike Rippey, President and Chief Executive 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 don't get your questions on the call today, please feel free to reach out to our investor relations team. Before I turn things over to Mike, 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 Mike.

speaker
Mike Rippey
President and Chief Executive Officer

Thanks, Shantanu. Good morning, and thank you all for joining us today. I want to discuss a few highlights of our third quarter results before turning it back to Shantanu, who will review them in detail. First, I would like to thank all of our Sun Coke teammates for their continued commitment to our shared goals of working safely and efficiently to deliver high quality products and services to our customers. Turning to our financial performance in the quarter, we are pleased with how our teams delivered across both the Coke and logistics segments. Coke making operations continue to operate at full capacity, while our logistics segment delivered another solid quarter despite the disruption caused by Hurricane Ida. For the third quarter of 2021, we delivered adjusted EBITDA of 73.9 million, representing record third quarter performance. As I mentioned, CMT operations were disrupted due to Hurricane Ida, but the terminal recovered quickly with only minor damage and minimal business disruption. The resilient nature of our operations and commitment to our employees was clearly visible through the speed at which CMT returned to normal operations. Operationally, our export and foundry coke initiatives continue to perform well, as evident from our financial results. In addition, positive market dynamics are proving that our entry into these markets was timely. Our products are well received by customers, and we have established ourselves as a reliable supplier of quality products in both markets. Our gross leverage stands at approximately 2.5 times our trailing 12-month adjusted EBITDA basis. We are committed to continue paying down our revolver for the remainder of the year. Based on our year-to-date performance and the expectation of continued strength in steel and coal markets, For the remainder of the year, we are well positioned to modestly exceed our full year 2021 adjusted EBITDA guidance of $255 to $265 million. With that, I'll turn it over to Shantanu to review our third quarter earnings in detail. Shantanu?

Disclaimer

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