CLEVELAND, March 7, 2018
/PRNewswire/ --
Highlights:
- Q4 2017 Consolidated income from continuing
operations of $9.7 million vs. a
consolidated loss from continuing operations of $4.6 million in Q4 2016
- Q4 2017 Consolidated income from continuing operations
includes a tax benefit of $4.5
million, or $0.65 per diluted
share, related to U.S. tax reform legislation
- Q4 2017 North American Coal income before income tax of
$8.2 million vs. $1.1 million in Q4 2016
NACCO Industries, Inc. (NYSE: NC) today announced fourth quarter
and full-year results for 2017. As a result of NACCO's
spin-off of its housewares-related business in September 2017, the attached financial statements
and related 2017 and 2016 financial information in this news
release have been reclassified to reflect the housewares business'
operating results as discontinued operations.
For the fourth quarter of 2017, NACCO reported consolidated
revenues of $26.4 million and
consolidated income from continuing operations of $9.7 million, or $1.40 per diluted share, which includes a
provisional discrete tax benefit of $4.5
million, or $0.65 per diluted
share, related to U.S. tax reform. For the fourth quarter of
2016, NACCO reported revenues of $25.3 million and a consolidated loss from
continuing operations of $4.6 million, or $0.68 per diluted share.
For the year ended December 31,
2017, consolidated revenues were $104.8 million and consolidated income from
continuing operations was $28.5
million, or $4.14 per diluted
share, compared with consolidated revenues of $111.1 million and consolidated income from
continuing operations of $3.0 million, or $0.43 per diluted share, for the year ended
December 31, 2016. Full-year
2017 consolidated income from continuing operations includes a tax
benefit of $3.1 million, or
$0.45 per diluted share, related to
U.S. tax reform. This full-year benefit differs from the
$4.5 million fourth quarter benefit
due to the fourth quarter reversal of a valuation allowance
established in the third quarter of 2017 prior to the repeal of the
corporate alternative minimum tax under U.S. tax reform enacted in
December 2017. Full-year 2016 consolidated income from
continuing operations includes a $17.4
million impairment charge, or $12.5
million after a tax benefit of $4.9
million, related to North American Coal's Centennial mining
operation, which is no longer active.
NACCO's consolidated Adjusted EBITDA from continuing operations
for the fourth quarter and year ended December 31, 2017 was $10.5 million and $46.1
million, respectively. Adjusted EBITDA in this press
release is provided solely as a supplemental non-GAAP disclosure of
operating results as defined in the reconciliation of GAAP results
to Adjusted EBITDA, on page 8.
Consolidated Cash Flow from Continuing
Operations and Liquidity Discussion
For the 2017 full year, NACCO generated consolidated cash flow
before financing activities from continuing operations
of $38.3 million, which was comprised of net cash provided by
operating activities of $49.0 million less net cash used
for investing activities of $10.7 million. For the 2016 full
year, NACCO generated consolidated cash flow before financing
activities from continuing operations of $27.5 million, which
was comprised of net cash provided by operating activities
of $31.4 million less net cash used for investing
activities of $3.9 million.
NACCO ended 2017 with consolidated cash on hand of $101.6 million, debt of $58.1 million and net cash of $43.5 million.
In February 2018, NACCO's Board of
Directors authorized a stock buyback program to purchase up to
$25 million of the Company's
outstanding Class A common stock through December 31, 2019. The Company's previously
authorized share repurchase program expired on December 31, 2017. Under that program,
NACCO repurchased approximately 109,300 shares for an aggregate
purchase price of $6.0 million.
The Company did not repurchase any shares during 2017.
Detailed Discussion of Results
North
American Coal - Fourth Quarter Results
North American Coal's deliveries for the fourth
quarter of 2017 and 2016 were as follows:
|
2017
|
|
2016
|
Coal tons
delivered
|
(in
millions)
|
Unconsolidated mines
|
8.7
|
|
8.0
|
Consolidated mines
|
0.5
|
|
0.6
|
Total coal tons delivered
|
9.2
|
|
8.6
|
Limerock deliveries
(cubic yards)
|
7.9
|
|
5.8
|
North American Coal reported income before income tax of
$8.2 million and revenues of
$26.4 million in the fourth quarter
of 2017, compared with income before income tax of $1.1 million and revenues of $25.3 million in the fourth quarter of 2016.
Revenues increased moderately primarily as a result of higher
royalty and other income, mostly offset by a substantial decrease
in revenues at Mississippi Lignite Mining Company due to a decrease
in tons delivered. Tons delivered declined because an
increase in outage days at the customer's power plant in the fourth
quarter of 2017 reduced customer requirements for coal.
Centennial had income before tax of $0.6 million in the fourth quarter of 2017
compared with a pre-tax loss of $2.9
million in the fourth quarter of 2016. Centennial's
2016 loss included a $3.3
million pre-tax charge related to the resolution of a legal
matter.
Excluding Centennial, North American Coal's income before income
tax improved substantially primarily as a result of higher royalty
and other income, an increase in earnings at the unconsolidated
mining operations and a reduction in lease expense. The
increase in earnings at the unconsolidated mining operations was
mainly due to an increase in deliveries to customers, as well as
contractual escalation. An increase in North American Coal's
operating expenses, primarily higher employee-related costs, as
well as substantially lower results at Mississippi Lignite Mining
Company due to fewer tons delivered and an increase in the cost per
ton delivered, partially offset the improvement in income before
income tax.
North American Coal - Full Year
Results
North American Coal reported income before income tax of
$37.2 million and revenues of
$104.8 million for the year ended
December 31, 2017, compared with
income before income tax of under $0.1 million and
revenues of $111.1 million for the year ended
December 31, 2016. Results in
2016 include a non-cash asset impairment charge of $17.4 million at Centennial.
For the 2017 full year, Centennial generated operating profit of
$0.5 million primarily as a result of
a $3.1 million gain on sale of
assets, a $2.8 million reduction in
its mine reclamation liability and lower ongoing operating
costs. These benefits were partially offset by a $1.0 million asset impairment charge.
North American Coal - Cash Flow
Discussion
In 2017, North American Coal generated cash flow before
financing activities of $37.1
million, comprised of net cash provided by operating
activities of $48.6 million less net
cash used for investing activities of $11.5
million. In 2016, North American Coal generated cash flow
before financing activities of $31.0 million, comprised of net
cash provided by operating activities of $34.9
million less net cash used for investing activities
of $3.9 million.
NACCO & Other - Fourth Quarter and
Full-Year 2017 Results
NACCO and Other, which includes the parent company operations
and Bellaire Corporation, reported a loss from continuing
operations before income tax of $2.4
million in the fourth quarter of 2017 compared with a loss
from continuing operations before income tax of $1.4 million in the fourth quarter of 2016.
For the year ended December 31,
2017, NACCO and Other reported a loss from continuing
operations before income tax of $8.1
million compared with a loss from continuing operations
before income tax of $6.7 million for
the year ended December 31, 2016.
The increase in both the fourth quarter and full year losses was
primarily attributable to revisions of estimated long-term
Bellaire mine reclamation
expenses, partially offset by lower employee-related costs.
NACCO Consolidated Income Tax - Fourth Quarter
and Full Year 2017
For the fourth quarter of 2017, NACCO reported consolidated
income before income tax from continuing operations of $5.8 million and an income tax benefit from
continuing operations of $3.9
million. For the fourth quarter of 2016, NACCO
reported a consolidated loss before income tax from continuing
operations of $0.3 million and an
income tax provision from continuing operations of $4.3 million.
For the year ended December 31,
2017, NACCO reported consolidated income before income tax
from continuing operations of $29.1
million and an income tax provision on continuing operations
of $0.6 million. For the year
ended December 31, 2016, NACCO
reported a consolidated loss before income tax from continuing
operations of $6.6 million and an
income tax benefit from continuing operations of $9.6 million.
Income tax for the 2017 fourth quarter and full year includes a
provisional discrete tax benefit of $4.5
million and $3.1 million
respectively, related to U.S. tax reform. NACCO applied the
intraperiod tax allocation rules to all periods shown to allocate
the tax provision for income tax between continuing and
discontinued operations. As a result of this intraperiod tax
allocation, a comparison of the change in the income tax provision
(benefit) between periods is not meaningful and the 2017 effective
income tax rate is not indicative of future expectations.
Consolidated Outlook
In 2018, NACCO expects consolidated income before income tax
from continuing operations to decrease compared with 2017 and
expects an effective income tax rate in the range of 9% -
12%. The effective income tax rate is affected by items such
as percentage depletion and the mix of earnings, including losses
at entities with higher effective income tax rates.
Income before income tax in 2017 included $4.6 million of gains on sales of assets, mostly
realized at Centennial, and $2.8
million of favorable adjustments to Centennial mine
reclamation liabilities. Excluding these favorable 2017
items, NACCO expects 2018 income before income tax to increase
compared with the prior year primarily as a result of lower
operating expenses, improved income at both the consolidated and
unconsolidated mining operations and reduced interest
expense. These improvements are expected to be partially
offset by an anticipated substantial decrease in royalty and other
income. Royalties on oil, gas and coal extracted by third
parties are subject to changes in market forces and the activities
of third parties, making it difficult to forecast whether recent
high levels of income will continue.
At the consolidated mining operations, Mississippi Lignite
Mining Company's 2018 full-year results are expected to improve
over 2017 because customer demand is expected to return to
historical levels due to an anticipated reduction in outage days at
the customer's power plant. While the total number of power
plant outage days for the full year is expected to decline, a
majority of the outage days are expected to occur in the second
half of 2018. As a result, pre-tax income in the first half
of 2018 at Mississippi Lignite Mining Company is expected to be
comparable to the first half of 2017. Pre-tax income in the
second half of 2018 is expected to increase compared with the low
income generated in the second-half of 2017. However, if
customer demand remains low at Mississippi Lignite Mining Company,
it could unfavorably affect North American Coal's 2018 and future
earnings significantly.
Centennial's pre-tax loss in 2018 is expected to be
modestly lower than its 2017 pre-tax loss excluding gains on
sales of assets of $3.1 million and
mine reclamation adjustments. Centennial will continue to
evaluate strategies to optimize cash flow, including the continued
assessment of a range of strategies for its remaining Alabama mineral reserves, including holding
reserves with substantial unmined coal tons for sale or
contract mining when conditions permit. Cash expenditures
related to mine reclamation will continue until reclamation is
complete, or ownership of, or responsibility for, the remaining
mines is transferred.
Income from the unconsolidated mining operations is expected to
be modestly higher in 2018 due in part to higher fees at Liberty
Fuels and increases at North American Mining's unconsolidated
limerock mining operations. North American Mining entered
into a contract with a new customer in South Florida during the fourth quarter of
2017 that includes operation of a dragline and an electric rope
shovel. North American Mining added two new contracts in 2017
that are expected to contribute to increases in earnings from the
unconsolidated mining operations in 2018.
Bisti Fuels, one of North American Coal's unconsolidated mining
operations, began operation at the Navajo mine on January 1, 2017. The customer's ability to
take coal deliveries during the fourth quarter of 2017 was limited
as the power plant's owners were installing additional
environmental controls. Bisti Fuels expects the installation
of this equipment to continue to limit the power plant's ability to
take coal deliveries in the first half of 2018 as well, resulting
in a significant reduction in coal deliveries and income in the
first half of 2018 compared with 2017. However, Bisti's
full-year 2018 income is expected to be comparable to 2017.
Once installation is complete, this plant should enjoy the benefits
of an improved environmental profile. Production at Bisti
Fuels is anticipated to be 5 million to 6 million tons of coal per
year when the plant is operating at expected levels, which is
currently anticipated to occur in 2019.
On June 28, 2017, Southern Company
and its subsidiary, Mississippi Power, suspended operations
involving the coal gasifier portion of the Kemper County energy
facility. Liberty Fuels, an unconsolidated mining operation,
was the sole supplier of coal to fuel the gasifier under its
contract with Mississippi Power. On February 8, 2018, Mississippi Power instructed
Liberty Fuels to permanently cease all mining and delivery of
lignite and to commence mine reclamation. The terms of the
contract specify that Mississippi Power is responsible for all mine
closure costs. Under the contract, Liberty Fuels is specified
as the contractor to complete final mine closure and will receive
compensation for these services. The customer's decision to
close the mine does not negatively impact NACCO's earnings outlook
for Liberty Fuels during 2018, but it does unfavorably affect North
American Coal's long-term earnings potential from this mine.
Cash flow before financing activities is expected to decrease
substantially in 2018 compared with 2017. Capital
expenditures are expected to be approximately $33 million in 2018 due to planned expenditures
at both Mississippi Lignite Mining Company and North American
Mining, which includes expenditures for new and replacement
equipment and land required for future mining. Capital
expenditures can vary significantly in any given year based on the
type of asset needed and its relative cost.
While the current regulatory environment for development of new
coal projects has improved, continued low natural gas prices and
growth in renewable energy sources, such as solar and wind, could
unfavorably affect the amount of electricity generation
attributable to coal-fired power plants over the longer term.
North American Coal continues to seek opportunities for new coal
mining projects, although future opportunities are likely to be
very limited. In addition, North American Coal continues to
pursue additional non-coal mining opportunities, principally
related to its North American Mining business and elsewhere where
it might provide value-added services.
Conference Call
In conjunction with this news release, the management of NACCO
Industries, Inc. will host a conference call on Thursday, March 8, 2018 at 8:00 a.m. Eastern Time. The call may be
accessed by dialing (844) 855-9691 (Toll Free) or (647) 689-2407
(International), Conference ID: 6291859, or over the Internet
through NACCO Industries' website at www.nacco.com. Please
allow 15 minutes to register, download and install any necessary
audio software required to listen to the broadcast. A replay
of the call will be available shortly after the end of the
conference call through March 15,
2018. The online archive of the broadcast will be available
on the NACCO website.
Annual Report on Form 10-K
NACCO Industries, Inc.'s Annual Report on Form 10-K has been
filed with the Securities and Exchange Commission. This
document may be obtained free of charge by directing such requests
to NACCO Industries, Inc., 5875 Landerbrook Drive, Suite 220,
Cleveland, Ohio 44124, Attention:
Investor Relations, by calling (440) 229-5130, or from NACCO
Industries, Inc.'s website at www.nacco.com.
Non-GAAP and Other Measures
For certain pre-tax disclosures included in this earnings
release, the resulting after-tax amount and the related income tax
amount have been included. The tax effect is based on the
statutory tax rate generally applicable to the transaction or the
effective income tax rate of the entity to which the disclosure
relates. Certain after-tax amounts are considered non-GAAP
measures in accordance with Regulation G. Management believes
that after-tax information is useful in analyzing the Company's
income from continuing operations.
This release contains non-GAAP financial measures within the
meaning of Regulation G promulgated by the Securities and
Exchange Commission. Included in this release are reconciliations
of these non-GAAP financial measures to the most directly
comparable financial measures calculated in accordance with U.S.
generally accepted accounting principles ("GAAP"). Adjusted income
before income tax and Adjusted EBITDA differ from financial results
measured in accordance with GAAP. The adjusted income before
income tax is a GAAP financial measure adjusted to exclude the 2017
and 2016 Centennial results. Adjusted EBITDA from continuing
operations is defined as income from continuing operations before
asset impairment charge and income tax provision (benefit), plus
net interest expense and depreciation, depletion and amortization
expense. Adjusted income before income tax and Adjusted
EBITDA from continuing operations in this press release are
provided solely as supplemental non-GAAP disclosures of operating
results. Management believes that Adjusted income before income tax
and Adjusted EBITDA from continuing operations assist investors in
understanding the results of operations of NACCO Industries,
Inc. In addition, management evaluates results using these
non-GAAP measures.
Forward-looking Statements Disclaimer
The statements contained in this news release that are not
historical facts are "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. These
forward-looking statements are made subject to certain risks and
uncertainties, which could cause actual results to differ
materially from those presented. Readers are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date hereof. The Company undertakes no
obligation to publicly revise these forward-looking statements to
reflect events or circumstances that arise after the date
hereof. Among the factors that could cause plans, actions and
results to differ materially from current expectations are, without
limitation: (1) changes in tax laws or regulatory requirements,
including changes in mining or power plant emission regulations and
health, safety or environmental legislation, (2) changes in costs
related to geological conditions, repairs and maintenance, new
equipment and replacement parts, fuel or other similar items, (3)
regulatory actions, changes in mining permit requirements or delays
in obtaining mining permits that could affect deliveries to
customers, (4) weather conditions, extended power plant outages,
liquidity events or other events that would change the level of
customers' coal or limerock requirements, (5) weather or equipment
problems that could affect deliveries to customers, (6) changes in
the power industry that would affect demand for North American
Coal's reserves, (7) changes in the costs to reclaim North American
Coal mining areas, (8) costs to pursue and develop new mining and
value-added service opportunities, (9) changes to or termination of
a long-term mining contract, or a customer default under a
contract, (10) delays or reductions in coal deliveries at North
American Coal's mines, (11) increased competition, including
consolidation within the industry, and (12) the possibility that
the impact of the U.S. Tax Cuts and Jobs Act could be less
favorable than current estimates.
About NACCO Industries, Inc.
NACCO Industries, Inc. is the public holding company for The
North American Coal Corporation. North American Coal operates
surface mines that supply coal primarily to power generation
companies under long-term contracts, and provides other value-added
services to natural resource companies. In addition, its
North American Mining business maintains and operates draglines and
other equipment under contracts with sellers of aggregates.
North American Coal's service-based business model aligns its
operating goals with customers' objectives. For more
information about NACCO Industries, visit the Company's website at
www.nacco.com.
*****
NACCO INDUSTRIES,
INC. AND SUBSIDIARIES
|
CONDENSED
STATEMENTS OF OPERATIONS
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31
|
|
December
31
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
26,437
|
|
|
$
|
25,303
|
|
|
$
|
104,778
|
|
|
$
|
111,081
|
|
Cost of
sales
|
21,148
|
|
|
23,073
|
|
|
87,859
|
|
|
98,999
|
|
Gross
profit
|
5,289
|
|
|
2,230
|
|
|
16,919
|
|
|
12,082
|
|
Earnings of
unconsolidated mines
|
16,734
|
|
|
14,453
|
|
|
61,361
|
|
|
55,238
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
15,683
|
|
|
18,077
|
|
|
47,491
|
|
|
48,863
|
|
Centennial asset impairment
charge
|
982
|
|
|
â
|
|
|
982
|
|
|
17,443
|
|
Amortization of intangible
assets
|
482
|
|
|
567
|
|
|
2,123
|
|
|
2,503
|
|
(Gain) loss on sale of
assets
|
(1,630)
|
|
|
(1,254)
|
|
|
(5,130)
|
|
|
170
|
|
|
15,517
|
|
|
17,390
|
|
|
45,466
|
|
|
68,979
|
|
Operating profit
(loss)
|
6,506
|
|
|
(707)
|
|
|
32,814
|
|
|
(1,659)
|
|
Other (income)
expense
|
|
|
|
|
|
|
|
Interest expense
|
634
|
|
|
1,136
|
|
|
3,440
|
|
|
4,318
|
|
Income from other
unconsolidated affiliates
|
(314)
|
|
|
(308)
|
|
|
(1,246)
|
|
|
(1,221)
|
|
Closed mine
obligations
|
519
|
|
|
(1,162)
|
|
|
1,590
|
|
|
(214)
|
|
Other, net, including
interest income
|
(87)
|
|
|
(78)
|
|
|
(72)
|
|
|
2,151
|
|
|
752
|
|
|
(412)
|
|
|
3,712
|
|
|
5,034
|
|
Income (loss) from
continuing operations before income
tax provision (benefit)
|
5,754
|
|
|
(295)
|
|
|
29,102
|
|
|
(6,693)
|
|
Income tax provision
(benefit) from continuing operations
|
(3,925)
|
|
|
4,321
|
|
|
639
|
|
|
(9,649)
|
|
Income (loss) from
continuing operations
|
9,679
|
|
|
(4,616)
|
|
|
28,463
|
|
|
2,956
|
|
Discontinued
operations, net of tax
|
493
|
|
|
28,747
|
|
|
1,874
|
|
|
26,651
|
|
Net
Income
|
$
|
10,172
|
|
|
$
|
24,131
|
|
|
$
|
30,337
|
|
|
$
|
29,607
|
|
|
|
|
|
|
|
|
|
Basic earnings
(loss) per share:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
1.41
|
|
|
$
|
(0.68)
|
|
|
$
|
4.17
|
|
|
$
|
0.43
|
|
Discontinued
operations
|
$
|
0.07
|
|
|
$
|
4.24
|
|
|
$
|
0.27
|
|
|
$
|
3.91
|
|
Basic earnings per
share
|
$
|
1.48
|
|
|
$
|
3.56
|
|
|
$
|
4.44
|
|
|
$
|
4.34
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
1.40
|
|
|
$
|
(0.68)
|
|
|
$
|
4.14
|
|
|
$
|
0.43
|
|
Discontinued
operations
|
$
|
0.07
|
|
|
$
|
4.21
|
|
|
$
|
0.27
|
|
|
$
|
3.89
|
|
Diluted earnings
per share
|
$
|
1.47
|
|
|
$
|
3.53
|
|
|
$
|
4.41
|
|
|
$
|
4.32
|
|
|
|
|
|
|
|
|
|
Dividends per
share
|
$
|
0.1650
|
|
|
$
|
0.2675
|
|
|
$
|
0.9775
|
|
|
$
|
1.0650
|
|
|
|
|
|
|
|
|
|
Basic Weighted
Average Shares Outstanding
|
6,848
|
|
|
6,777
|
|
|
6,830
|
|
|
6,818
|
|
Diluted Weighted
Average Shares Outstanding
|
6,923
|
|
|
6,832
|
|
|
6,873
|
|
|
6,854
|
|
|
|
|
|
|
|
|
|
NACCO INDUSTRIES,
INC. AND SUBSIDIARIES
|
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31
|
|
December
31
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(In
thousands)
|
Revenues
|
|
|
|
|
|
|
|
North
American Coal
|
$
|
26,437
|
|
|
$
|
25,303
|
|
|
$
|
104,778
|
|
|
$
|
111,081
|
|
Total
|
$
|
26,437
|
|
|
$
|
25,303
|
|
|
$
|
104,778
|
|
|
$
|
111,081
|
|
|
|
|
|
|
|
|
|
Operating profit
(loss)
|
|
|
|
|
|
|
|
North
American Coal
|
$
|
8,550
|
|
|
$
|
1,966
|
|
|
$
|
39,677
|
|
|
$
|
5,619
|
|
NACCO
and Other
|
(2,044)
|
|
|
(2,673)
|
|
|
(6,863)
|
|
|
(7,278)
|
|
Total
|
$
|
6,506
|
|
|
$
|
(707)
|
|
|
$
|
32,814
|
|
|
$
|
(1,659)
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations before income
tax provision (benefit)
|
|
|
|
|
|
|
|
North
American Coal
|
$
|
8,177
|
|
|
$
|
1,083
|
|
|
$
|
37,231
|
|
|
$
|
32
|
|
NACCO
and Other
|
(2,423)
|
|
|
(1,378)
|
|
|
(8,129)
|
|
|
(6,725)
|
|
Total
|
$
|
5,754
|
|
|
$
|
(295)
|
|
|
$
|
29,102
|
|
|
$
|
(6,693)
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED EBITDA
RECONCILIATION (UNAUDITED)
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
3/31/2017
|
|
6/30/2017
|
|
9/30/2017
|
|
12/31/2017
|
|
Year Ended
12/31/2017
|
|
(In
thousands)
|
Net income
|
$
|
4,978
|
|
|
$
|
6,789
|
|
|
$
|
8,398
|
|
|
$
|
10,172
|
|
|
$
|
30,337
|
|
Discontinued
operations, net of tax
|
3,242
|
|
|
444
|
|
|
(5,067)
|
|
|
(493)
|
|
|
(1,874)
|
|
Centennial asset
impairment charge
|
â
|
|
|
â
|
|
|
â
|
|
|
982
|
|
|
982
|
|
Income tax provision
(benefit)
|
599
|
|
|
1,340
|
|
|
2,625
|
|
|
(3,925)
|
|
|
639
|
|
Interest
expense
|
932
|
|
|
928
|
|
|
946
|
|
|
634
|
|
|
3,440
|
|
Interest
income
|
(69)
|
|
|
(129)
|
|
|
14
|
|
|
(38)
|
|
|
(222)
|
|
Depreciation,
depletion and amortization expense
|
3,180
|
|
|
3,243
|
|
|
3,157
|
|
|
3,187
|
|
|
12,767
|
|
Adjusted EBITDA from
continuing operations*
|
$
|
12,862
|
|
|
$
|
12,615
|
|
|
$
|
10,073
|
|
|
$
|
10,519
|
|
|
$
|
46,069
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Adjusted EBITDA
from continuing operations in this press release is provided solely
as a supplemental disclosure with respect to operating results.
Adjusted EBITDA from continuing operations does not represent net
income, as defined by U.S. GAAP and should not be considered as a
substitute for net income, or as an indicator of operating
performance. NACCO defines Adjusted EBITDA from continuing
operations as income from continuing operations before asset
impairment charge and income tax provision (benefit), plus net
interest expense and depreciation, depletion and amortization
expense. Adjusted EBITDA from continuing operations is not a
measurement under U.S. GAAP and is not necessarily comparable with
similarly titled measures of other companies.
|
NACCO INDUSTRIES,
INC. AND SUBSIDIARIES
|
SUPPLEMENTAL NORTH
AMERICAN COAL INFORMATION (UNAUDITED)
|
|
ADJUSTED NORTH
AMERICAN COAL INCOME BEFORE INCOME TAX PROVISION
(BENEFIT)
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31
|
|
December
31
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(In
thousands)
|
Gross profit
(loss) - Centennial
|
$
|
1,517
|
|
|
$
|
249
|
|
|
$
|
(1,620)
|
|
|
$
|
(5,401)
|
|
Gross profit - other
consolidated mines
|
314
|
|
|
1,406
|
|
|
7,971
|
|
|
13,980
|
|
Gross profit -
royalty and other
|
3,601
|
|
|
661
|
|
|
10,847
|
|
|
3,762
|
|
Total gross
profit
|
5,432
|
|
|
2,316
|
|
|
17,198
|
|
|
12,341
|
|
Earnings of
unconsolidated mines
|
16,734
|
|
|
14,453
|
|
|
61,361
|
|
|
55,238
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
13,268
|
|
|
15,490
|
|
|
40,393
|
|
|
41,844
|
|
Centennial asset impairment charge
|
982
|
|
|
â
|
|
|
982
|
|
|
17,443
|
|
Amortization of intangibles
|
482
|
|
|
567
|
|
|
2,123
|
|
|
2,503
|
|
(Gain)
loss on sale of assets
|
(1,116)
|
|
|
(1,254)
|
|
|
(4,616)
|
|
|
170
|
|
Operating
profit
|
8,550
|
|
|
1,966
|
|
|
39,677
|
|
|
5,619
|
|
Other
expense
|
373
|
|
|
883
|
|
|
2,446
|
|
|
5,587
|
|
Income before income
tax provision (benefit)
|
$
|
8,177
|
|
|
$
|
1,083
|
|
|
$
|
37,231
|
|
|
$
|
32
|
|
Elimination of Centennial (1)
|
(562)
|
|
|
2,908
|
|
|
(425)
|
|
|
27,676
|
|
Adjusted North
American Coal income before income tax
provision (benefit) (2)
|
$
|
7,615
|
|
|
$
|
3,991
|
|
|
$
|
36,806
|
|
|
$
|
27,708
|
|
|
|
|
|
|
|
|
|
(1) During
the fourth quarter of 2016, the Company recognized a charge of $3.3
million related to the resolution of a legal matter in
Alabama. During the third quarter of 2016, the Company
recognized an impairment charge of $17.4 million.
|
(2)
Adjusted North American Coal Income Before Income Tax is a measure
of income that differs from Income Before Income Tax measured in
accordance with U.S. GAAP. Adjusted North American Coal
Income Before Income Tax is adjusted to exclude Centennial's
results. Management believes that Adjusted North American
Coal Income Before Income Tax will assist the investor in
understanding the results of operations of North American
Coal. In addition, management evaluates results using this
non-GAAP financial measure.
|
|
ROLLFORWARD OF
CENTENNIAL ASSET RETIREMENT OBLIGATION
(3)
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31
|
|
December
31
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(In
thousands)
|
Balance at beginning
of period
|
$
|
18,409
|
|
|
$
|
19,605
|
|
|
$
|
18,171
|
|
|
$
|
19,084
|
|
Liabilities settled
during the period
|
(1,283)
|
|
|
(545)
|
|
|
(1,416)
|
|
|
(1,695)
|
|
Accretion
expense
|
239
|
|
|
283
|
|
|
997
|
|
|
1,130
|
|
Revision of estimated
cash flows
|
(2,364)
|
|
|
(1,172)
|
|
|
(2,751)
|
|
|
(348)
|
|
Balance at end of
period
|
$
|
15,001
|
|
|
$
|
18,171
|
|
|
$
|
15,001
|
|
|
$
|
18,171
|
|
|
|
|
|
|
|
|
|
(3) The
rollforward of Centennial's asset retirement obligation in this
press release is provided solely as a supplemental disclosure with
respect to the changes to the obligation including cash
expenditures for mine reclamation. Liabilities settled during
the period represent cash payments.
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/nacco-industries-inc-announces-fourth-quarter-and-full-year-2017-results-300610333.html
SOURCE NACCO Industries, Inc.