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SunCoke Energy, Inc.
2/1/2022
Good morning. My name is Chris and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Suncoke Energy fourth quarter 2021 earnings call. All lines have been placed in mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star, then the number one on your telephone keypad. And to withdraw your question, please press star one again. Thank you. Shantanu Agrawal, Vice President of Investor Relations and Treasurer, you may begin. Shantanu Agrawal, Vice President of Investor Relations and Treasurer, you may begin.
Shantanu Agrawal, Vice President of Investor Relations and Treasurer, you may begin. Shantanu Agrawal, Vice President of Investor Relations and Treasurer, you may begin. Shantanu Agrawal, Vice President of Investor Relations and Treasurer, you may begin. Shantanu Agrawal, Vice President of Investor Relations and Treasurer, you may begin. Shantanu Agrawal, Vice President of Investor Relations and Treasurer, you may begin. Shantanu Agrawal, Vice President of Investor Relations and Treasurer, you may begin. Shantanu Agrawal, Vice President of Investor Relations and Treasurer, you may begin. Shantanu Agrawal, Vice President of Investor Relations and Treasurer, you may begin. Shantanu Ag 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 to 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 will now turn things over to Mike.
Thanks, Shantanu. Good morning, and thank you all for joining us on today's call. Today, we announce Suncoke Energy's fourth quarter and full-year results. And before I turn it over to Shantanu, who will review the results in detail, I want to discuss a few highlights. Let me start by first thanking all of our Suncoke employees for their commitment and contributions in what has been an historic year for Suncoke, not only from a financial results perspective, but also because of the steps we have taken towards transforming the company. The dedication of our team is clearly visible through our safety record, operational excellence, and financial results. On slide three, you can see the key initiatives that we set out and how we performed against these objectives. We delivered $275.4 million of adjusted EBITDA in 2021, the highest in Suncoke's history. exceeding our revised guidance range of $255 to $265 million. Additionally, we generated $101 million in free cash flow, which was also above our revised guidance range of $80 to $100 million. We operated our domestic Coke fleet at full capacity, and the main driver behind that was our successful entry into the foundry and export Coke markets. This was our first year of entering these new markets on a commercial scale, and we are extremely pleased with the success we achieved. We developed strong customer relationships, and our high-quality products are well received in both markets. Our operational and technical expertise, combined with a strong commodity market environment, provided an excellent opportunity to enter these markets. We expect to further increase our participation in both the foundry and export Coke markets in 2022. Additionally, we signed a five-year take-or-pay agreement to supply blast furnace coke to Algoma Steel beginning this year, with an average sales volume of 150,000 tons per year. This new contract addresses a portion of the uncontracted coke tons for the next five years, along with providing further customer diversification. We are excited to begin working with this new customer. Looking at our progress on capital structure, we successfully refinanced the company's debt in 2021, significantly reducing the cost of debt and extending debt maturities. The interest rate savings resulting from the refinancing are in excess of $17 million on an annual basis. The debt refinancing is a significant step toward matching Suncoke's capital structure with our operating plans. From a capital allocation perspective, we deployed our free cash flow to reduce our gross debt by approximately $64 million. Additionally, we returned $20 million to our shareholders, paying a $0.24 per share annual dividend and anticipate this dividend to continue in 2022. With that, I'll turn it over to Shantanu to review our fourth quarter and full year earnings in detail. Shantanu?
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