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SunCoke Energy, Inc.
10/31/2022
Good morning. My name is Dennis, and I will be your conference operator today. At this time, I would like to welcome everyone to the Suncoke Energy Third Quarter 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, then the number one on your telephone keypad. To withdraw your question, press star one again. I would now like to turn the conference over to Shantanu Agrawal, VP Finance and Treasurer. Please go ahead.
Thanks, Dennis. Good morning, and thank you for joining us this morning to discuss Suncoke Energy's third quarter 2022 results. With me today are Mike Rippey, 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 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'll now turn things over to Mike.
Thanks, Shantanu. Good morning, and thank you all for joining us today. Today, we announced Suncoke Energy's third quarter results. And before I turn it over to Mark, who will review the results in detail, I want to discuss a few highlights. First, I would like to thank all of our Suncoke employees for their continued best-in-class safety performance while achieving record third quarter results. For our collective efforts, we delivered consolidated adjusted EBITDA of $83.7 million. Our domestic Coke business performed exceptionally well during the quarter, which allowed us to fully realize the benefits of a strong export Coke market. In our logistics segment, we continue to see elevated levels of customer demand and favorable pricing. Our foundry and export coke initiatives continue to perform well, and we are pleased with the positive impact they've had on our financial results. Looking forward, we are experiencing softening in export coke markets, particularly in pricing, driven by global economic uncertainties. We are pleased to announce that our board of directors approved a new capital project that will enable our dual facility to produce 100% foundry coke. Suncoke has become a highly reliable supplier in the foundry market, and we continue to see strong demand for our quality product. This project, which is expected to be completed in the third quarter of 2023, will allow Suncoke to continue to grow in the foundry market. Importantly, the Juul facility will not lose the flexibility to alternate between blast and foundry coke production after this project is completed. Our gross leverage ratio at the end of this quarter was at approximately 1.9 times on a trailing 12-month adjusted EBITDA basis. Lastly, recognizing our year-to-date financial performance, we now expect to surpass the high end of our full year adjusted EBITDA guidance range of $285 million. With that, I'll turn it over to Mark to review our third quarter earnings in detail. Mark? Thanks, Mike.
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