First Quarter NACCO Consolidated Highlights:
- Operating profit increased to $14.9
million, up from $8.3 million
in Q1 2021 primarily due to significantly improved earnings in the
Minerals Management segment
- Net income increased to $12.6
million, up 40.4% from $9.0
million in Q1 2021
- EBITDA increased to $21.4
million, up 48.0% from Q1 2021
- Diluted earnings per share increased to $1.72/share from $1.25/share in Q1 2021
CLEVELAND, May 4, 2022
/PRNewswire/ -- NACCO Industries® (NYSE: NC) today
announced consolidated operating profit of $14.9 million and net income of $12.6 million, or $1.72 per diluted share, for the first quarter of
2022 compared with consolidated operating profit of $8.3 million and net income of $9.0 million, or $1.25 per diluted share, for the first quarter of
2021.
Improvements in the Company's consolidated operating profit,
Consolidated EBITDA and net income were due to significantly higher
earnings in the Minerals Management segment. Improvements in the
North American Mining segment were offset by lower earnings in the
Coal Mining segment and an increase in unallocated business
development and employee-related expenses. Non-GAAP financial
measures are defined and reconciled on pages 9 and 10.
Effective January 1, 2022, the
Company changed the composition of its reportable segments. As a
result, the Company retrospectively changed its computation of
segment operating profit to reclassify the results of Caddo Creek
Resources Company and Demery Resources Company from the Coal Mining
segment into the North American Mining segment as these operations
provide mining solutions for producers of industrial minerals,
rather than for power generation. The Coal Mining segment now
includes only mines that deliver coal for power generation. This
segment reporting change has no impact on consolidated operating
results. All prior period segment information in this release has
been reclassified to conform to the new presentation. The
reclassified segment financial information for the 2021 four
quarters and full year has also been provided on pages 10 to 12 of
this release.
At March 31, 2022, the Company had
consolidated cash of $81.6 million
and debt of $25.5 million with
availability of $113.9 million under
its $150.0 million revolving credit
facility. The Company believes that maintaining a conservative
capital structure and adequate liquidity are important given
evolving trends in energy markets and the Company's strategic
initiatives to grow and diversify, which are discussed further in
the Growth and Diversification section of this release.
Detailed Discussion of Results
Coal Mining Results
Coal deliveries for the
first quarter of 2022 and 2021 were as follows:
|
|
2022
|
|
2021
|
Tons of coal
delivered
|
(in thousands)
|
Unconsolidated operations
|
6,317
|
|
7,510
|
Consolidated operations
|
732
|
|
835
|
Total deliveries
|
7,049
|
|
8,345
|
|
Key financial results
for the first quarter of 2022 and 2021 were as follows:
|
|
2022
|
|
2021
|
|
(in thousands)
|
Revenues
|
$
20,962
|
|
$
21,942
|
Earnings of
unconsolidated operations
|
$
13,326
|
|
$
14,162
|
Operating
expenses(1)
|
$
8,086
|
|
$
7,857
|
Operating
profit
|
$
7,352
|
|
$
8,157
|
Segment
EBITDA(2)
|
$
11,390
|
|
$
12,312
|
|
|
(1)
|
Operating expenses
consist of Selling, general and administrative expenses,
Amortization of intangible assets and (Gain) loss on sale of
assets.
|
(2)
|
Segment EBITDA is a
non-GAAP measure and should not be considered in isolation or as a
substitute for GAAP. See non-GAAP explanation and the related
reconciliations to GAAP on page 10.
|
Coal Mining revenues decreased in the first quarter of 2022 from
the first quarter of 2021 primarily due to fewer tons delivered as
a result of lower customer demand at Mississippi Lignite Mining
Company.
First-quarter 2022 Coal Mining operating profit and Segment
EBITDA decreased from the prior year quarter mainly due to a
decrease in earnings of unconsolidated operations and higher
operating expenses.
The decrease in earnings of unconsolidated operations was
primarily attributable to the termination of the Bisti Fuels
contract on September 30, 2021, a
reduction in fees earned at Liberty as the scope of final mine
reclamation activities continues to decline and lower customer
requirements at Sabine. The decrease was partly offset by an
increase in earnings at Coteau resulting from contractual price
escalation. The increase in operating expenses was mainly due to an
increase in professional fees partially offset by lower
employee-related costs.
Coal Mining Outlook - 2022
On May 2, 2022, Great River Energy
("GRE") completed the sale of the Coal Creek Station power plant
and the adjacent high-voltage direct current transmission line to
Rainbow Energy Center, LLC and its affiliates. As a result of the
sale, the existing agreements between GRE and Falkirk Mining
Company terminated and GRE paid the Company $14.0 million, transferred ownership of an office
building and conveyed membership units in Midwest AgEnergy to
NACCO. The new Coal Sales Agreement ("CSA") between Falkirk and
Rainbow Energy became effective on May 1,
2022. Falkirk will continue supplying all coal requirements
of Coal Creek Station and will be paid a management fee per ton of
coal delivered for operating the mine. Rainbow Energy is
responsible for funding all mine operating costs and directly or
indirectly providing all of the capital required to operate the
mine. The CSA specifies that Falkirk will perform final mine
reclamation, which will be funded in its entirety by Rainbow
Energy. The initial production period is expected to run ten years
from the effective date of the CSA, but the CSA may be extended or
terminated early under certain circumstances.
Coal Mining operating profit in 2022 is expected to decrease
significantly compared with 2021, both including and excluding the
contract termination fees. The expected reduction in operating
profit is primarily the result of reduced earnings at both
consolidated and unconsolidated Coal Mining operations as well as
an anticipated increase in operating expenses. The increase in
operating expenses is primarily due to expected higher outside
services and professional fees.
Results at the consolidated mining operations are expected to
decrease significantly in 2022 from 2021 primarily due to expected
substantially lower earnings at Mississippi Lignite Mining Company
driven by an anticipated reduction in customer demand,
predominantly in the second half of 2022, from higher than average
levels in 2021. Lower customer demand, expected cost inflation in
2022 on diesel fuel, repairs and supplies, and higher depreciation
expense related to recent capital expenditures to develop a new
mine area are expected to contribute to an increase in the cost per
ton in 2022. In general, cost per ton delivered is lowest when the
power plant requires a consistently high level of coal deliveries,
primarily because costs are spread over more tons.
The reduction in earnings at the unconsolidated Coal Mining
operations is expected to be driven by the termination of the Bisti
Fuels contract as of September 30,
2021 and lower earnings at Falkirk, primarily in the second
half of 2022 compared with the second half of 2021. Falkirk has
agreed to a reduction in the current per ton management fee from
May 1, 2022 through May 31, 2024. After May
31, 2024, Falkirk's per ton management fee increases to a
higher base in line with current fee levels, and thereafter adjusts
annually according to an index which tracks a broad measure of U.S.
inflation.
Segment EBITDA, which excludes the termination payments of
$10.3 million from Bisti Fuels'
customer in 2021 and the $14 million
contract termination fee from GRE in 2022, is expected to decrease
significantly in 2022 from 2021 primarily as a result of the
forecasted reduction in operating profit partially offset by an
increase in depreciation, depletion and amortization expense. The
increase in depreciation, depletion and amortization expense is
primarily due to higher capital expenditures at Mississippi Lignite
Mining Company as a result of the development of a new mine
area.
Capital expenditures are expected to be approximately
$21 million in 2022. The elevated
levels of capital expenditures from 2019 through 2022 relate to the
necessary development of a new mine area at Mississippi Lignite
Mining Company, which will allow continued coal deliveries through
the end of the contract. The increase in capital expenditures
associated with mine development will result in higher depreciation
expense in future periods that will unfavorably affect future
operating profit. Capital expenditures for Mississippi Lignite
Mining Company are expected to decline significantly beginning in
2023.
The Company's contract structure at each of its coal mining
operations eliminates exposure to spot coal market price
fluctuations. However, fluctuations in natural gas prices and the
availability of renewable power generation, particularly wind, can
contribute to changes in power plant dispatch and customer demand
for coal. Sustained higher natural gas prices could continue to
result in increased demand for coal. Changes to expectations for
customer power plant dispatch could affect the Company's outlook
for 2022 and over the longer term.
The owner of the power plant served by the Company's Sabine Mine
in Texas intends to retire the
power plant in the first quarter of 2023, at which time Sabine
expects to begin final reclamation. Funding for mine reclamation is
the responsibility of the customer. Coteau operates the Freedom
Mine in North Dakota. All coal
production from the Freedom Mine is delivered to Basin Electric
Power Cooperative. Basin Electric utilizes the coal at the Great
Plains Synfuels Plant, Antelope Valley Station and Leland Olds Station. The Synfuels Plant is a
coal gasification plant owned by Dakota Gas that manufactures
synthetic natural gas and produces fertilizers, solvents, phenol,
carbon dioxide and other chemical products for sale. In
August 2021, Basin Electric announced
that it signed a non-binding term sheet which contemplates the sale
of the assets of Dakota Gas. The closing is subject to the
satisfaction of specified conditions. As part of the announcement,
Basin Electric indicated that the Synfuels Plant will continue
existing operations through 2026. Basin Electric is also
considering other options for the Synfuels Plant if the transaction
with the potential buyer does not close.
North American Mining Results
Deliveries for the
first quarter of 2022 and 2021 were as follows:
|
|
2022
|
|
2021
|
|
(in thousands)
|
Tons
delivered
|
13,962
|
|
12,675
|
|
Key financial results
for the first quarter of 2022 and 2021 were as follows:
|
|
2022
|
|
2021
|
|
(in thousands)
|
Revenues
|
$
21,404
|
|
$
17,939
|
Operating
profit
|
$
1,271
|
|
$
657
|
Segment
EBITDA(1)
|
$
2,738
|
|
$
1,608
|
|
|
(1)
|
Segment EBITDA is a
non-GAAP measure and should not be considered in isolation or as a
substitute for GAAP. See non-GAAP explanation and the related
reconciliations to GAAP on page 10.
|
Revenues at North American Mining increased in the first quarter
of 2022 over the prior year primarily as a result of an increase in
tons delivered driven by increased customer requirements. Higher
revenue related to reclamation at Caddo Creek also contributed to
the increase in revenues.
The improvement in operating profit was due to higher
reclamation income at Caddo Creek partly offset by a reduction in
earnings at the active operations primarily as a result of higher
employee-related costs.
North American Mining Segment EBITDA increased significantly as
a result of the increase in operating profit and substantially
higher depreciation expense resulting from equipment acquired to
support newer contracts that are expected to contribute to
increased income in future periods.
North American Mining Outlook
In 2022, North American Mining expects full-year operating
profit to increase over 2021, primarily in the fourth quarter of
2022, due to an expected increase in customer requirements and
contributions from contracts executed during 2021. Segment EBITDA
for 2022 is expected to increase significantly compared with the
prior year as a result of the improvement in operating profit and
an increase in depreciation expense.
During 2021, North American Mining expanded its footprint,
including into new geographies, by entering into new contract
mining services agreements at quarries in Florida, Indiana, Texas and Arkansas. During the first quarter of 2022,
North American Mining agreed to commission a new dragline at an
existing quarry in Florida to
secure a contract extension through 2027. This dragline will
supplement an existing dragline at this operation, resulting in an
expected increase in deliveries and income over the next five years
at the quarry. North American Mining continues to have a
substantial pipeline of potential new projects and is pursuing a
number of growth initiatives that, if successful, would be
accretive to future earnings.
In 2019, North American Mining's subsidiary, Sawtooth Mining,
LLC, entered into a mining services agreement to serve as the
exclusive contract miner for the Thacker Pass lithium project in
northern Nevada, owned by Lithium
Nevada Corp., a subsidiary of Lithium Americas Corp. (TSX: LAC)
(NYSE: LAC). Lithium Americas owns the lithium reserves at Thacker
Pass and will be responsible for the processing and sale of the
lithium produced. In April 2022,
Lithium Americas provided an update on the Thacker Pass project,
which noted that all key state-level permits had been issued for
Thacker Pass and early-works construction, which includes site
access and preparation, is expected to commence in 2022. At
maturity, this management fee contract is expected to deliver fee
income similar to a mid-sized management fee coal mine.
In 2022, capital expenditures are expected to be approximately
$28 million primarily for the
acquisition, relocation and refurbishment of draglines, as well as
the acquisition of other mining equipment to support the continued
expansion of contract-mining services, including the acquisition of
equipment to support the Thacker Pass lithium project. The cost of
mining equipment related to Thacker Pass will be reimbursed by the
customer over a seven-year period from the equipment acquisition
date.
Minerals Management Results
Key financial results
for the first quarter of 2022 and 2021 were as follows:
|
|
2022
|
|
2021
|
|
(in thousands)
|
Revenues
|
$
12,754
|
|
$
5,500
|
Operating
profit
|
$
11,628
|
|
$
4,235
|
Segment
EBITDA(1)
|
$
12,206
|
|
$
4,682
|
|
|
(1)
|
Segment EBITDA is a
non-GAAP measure and should not be considered in isolation or as a
substitute for GAAP. See non-GAAP explanation and the related
reconciliations to GAAP on page 10.
|
For the first quarter of 2022, Minerals Management revenue,
operating profit and Segment EBITDA increased significantly over
the first quarter of 2021 primarily due to higher royalty income
driven by significantly higher natural gas and oil prices, as well
as $2.1 million of settlement income
recognized during the first quarter of 2022. The settlement income
relates to the Company's ownership interest in certain mineral
rights.
Minerals Management Outlook
The Minerals Management segment derives income from
royalty-based leases under which lessees make payments to the
Company based on their sale of natural gas, oil, natural gas
liquids and coal, extracted primarily by third parties.
Operating profit and Segment EBITDA in 2022 are expected to
increase significantly over 2021 primarily driven by current
expectations for natural gas and oil prices for the remainder of
2022, partly offset by an anticipated reduction in production. As a
result of substantially higher oil and natural gas prices in the
first half of 2022 compared with the respective prior year period,
the Company expects a significant increase in operating profit in
the first half of 2022. This increase is anticipated to be partly
offset by a modest decrease in the second half of 2022 as increases
in oil and gas prices are expected to moderate and as a result of
the absence of $3.3 million of
settlement income recognized in the third quarter of 2021.
Commodity prices are inherently volatile and as an owner of
royalty and mineral interests, the Company's access to information
concerning activity and operations with respect to its interests is
limited. The Company's expectations are based on the best
information currently available and could vary positively or
negatively as a result of adjustments made by operators and/or
changes to commodity prices.
In the first quarter of 2022, Minerals Management completed a
small acquisition of mineral interests in the New Mexico portion of the Permian basin for
$0.7 million. Minerals Management is
targeting additional investments in mineral and royalty interests
of approximately $9 million in the
remainder of 2022. These investments are expected to be accretive,
but each investment's contribution to earnings is dependent on the
details of that investment, including the size and type of
interests acquired and the stage and timing of mineral development.
The contribution of each investment could also vary due to
commodity price changes. These acquired interests are expected to
align with the Company's strategy of selectively acquiring mineral
and royalty interests with a balance of near-term cash-flow yields
and long-term growth potential, in high-quality reservoirs offering
diversification from the Company's legacy mineral interests.
Consolidated 2022 Outlook
Overall for the 2022 full year, excluding the settlements
associated with the GRE/Rainbow Energy transaction and the Bisti
termination fee recognized in 2021, NACCO expects consolidated
operating profit, net income and Consolidated EBITDA to decrease
from 2021. Lower operating profit in the Coal Mining segment is
expected to be partially offset by an anticipated significant
increase in earnings at the Minerals Management segment and higher
operating profit at North American Mining. In addition, the Company
recognized $3.4 million of gains
associated with equity securities in 2021 that are not expected to
recur. The effective income tax rate, including the settlements
associated with the GRE/Rainbow Energy transaction is expected to
be between 14% and 16%.
The Company will recognize the value of the North Dakota office building and the
membership units in Midwest AgEnergy received as part of the
settlement with GRE as a component of other income.
Consolidated capital expenditures are expected to be
approximately $67 million in 2022 and
include approximately $8 million for
expenditures at Mitigation Resources of North America®. In 2022, cash flow
before financing activities is expected to be significantly lower
than in 2021 as a result of the anticipated capital
expenditures.
Growth and Diversification
The Company is pursuing growth and diversification by
strategically leveraging its core mining and natural resources
management skills to build a strong portfolio of affiliated
businesses. Management continues to be optimistic about the
long-term outlook for growth in the North American Mining and
Minerals Management segments and in the Company's Mitigation
Resources of North America
business. Each of these businesses continues to expand its pipeline
of potential new projects with opportunities for growth and
diversification.
North American Mining is pursuing growth and diversification by
expanding the scope of its business development activities to
include potential customers who require a broad range of minerals
and materials and by leveraging the Company's core mining skills to
expand the range of contract mining services it provides. North
American Mining continues to pursue additional opportunities to
provide comprehensive mining services to operate entire mines, as
it expects to do at the new lithium project in Nevada. The
goal is to build North American Mining into a leading provider of
contract mining services for customers that produce a wide variety
of minerals and materials. The Company believes North American
Mining can grow to be a substantial contributor to operating
profit, delivering unlevered after-tax returns on invested capital
in the mid-teens as this business model matures and achieves
significant scale, but the pace of growth will be dependent on the
mix and scale of new projects.
The Minerals Management segment continues to grow and diversify
by pursuing acquisitions of mineral and royalty interests in
the United States. The Minerals
Management segment will benefit from the continued development of
its mineral properties without additional capital investment, as
all further development costs are borne entirely by third-party
producers who lease the minerals. This business model can deliver
higher average operating margins over the life of a reserve than
traditional oil and gas companies that bear the cost of
exploration, production and/or development. Catapult Mineral
Partners, the Company's business unit focused on managing and
expanding the Company's portfolio of oil and gas mineral and
royalty interests, has developed a strong network to source and
secure new acquisitions, and has several potential acquisitions
under review. The goal is to construct a diversified portfolio of
high-quality oil and gas mineral and royalty interests in
the United States that deliver
near-term cash flow yields and long-term projected growth. The
Company believes this business will provide unlevered after-tax
returns on invested capital in the low-to-mid-teens as the
portfolio of reserves and mineral interests grows and this business
model matures.
Mitigation Resources of North
America continues to expand its business, which creates and
sells stream and wetland mitigation credits and provides services
to those engaged in permittee-responsible mitigation. This business
offers an opportunity for growth and diversification in an industry
where the Company has substantial knowledge and expertise and a
strong reputation. The Mitigation Resources business has achieved
several early successes and is positioned for additional growth.
The Company's goal is to grow Mitigation Resources into one of the
ten largest U.S. providers of mitigation solutions, largely focused
on streams and wetlands, initially in the southeast United States. While this business is in the
early stages of development, it is currently focused on expanding
and has established mitigation projects in Alabama, Mississippi, Texas and Tennessee. The Company believes that
Mitigation Resources can provide solid rates of return as this
business matures.
The Company also continues to pursue activities which can
strengthen the resiliency of its existing coal mining operations.
The Company remains focused on managing coal production costs and
maximizing efficiencies and operating capacity at mine locations to
help customers with management fee contracts be more competitive.
These activities benefit both customers and the Company's Coal
Mining segment, as fuel cost is a significant driver for power
plant dispatch. Increased power plant dispatch results in increased
demand for coal by the Coal Mining segment's customers. Fluctuating
natural gas prices and availability of renewable energy sources,
such as wind and solar, could affect the amount of electricity
dispatched from coal-fired power plants.
The Company continues to look for opportunities to expand its
coal mining business where it can apply its management fee business
model to assume operation of existing surface coal mining
operations in the United States.
However, opportunities are very limited in the current environment.
In addition, the political and regulatory environment is not
receptive to development of new coal-fired power generation
projects which would create opportunities to build and operate new
coal mines.
The Company is committed to maintaining a conservative capital
structure as it continues to grow and diversify, while avoiding
unnecessary risk. Strategic diversification will generate cash that
can be re-invested to strengthen and expand the businesses. The
Company also continues to maintain the highest levels of customer
service and operational excellence with an unwavering focus on
safety and environmental stewardship.
****
Conference Call
In conjunction with this news release, the management of NACCO
Industries will host a conference call on Thursday, May 5, 2022 at 8:30 a.m. Eastern Time. To participate in the
live call, please register more than 15 minutes in advance at
http://www.directeventreg.com/registration/event/7747766 to obtain
the dial-in information and conference call access codes. For those
not planning to ask a question of management, the Company
recommends listening to the call via the online webcast, which can
be accessed through the NACCO Industries' website at
ir.nacco.com/home. Please allow 15 minutes to register, download
and install any necessary audio software required to listen to the
webcast. A replay of the call will be available shortly after the
call ends through May 13, 2022. An
archive of the webcast will also be available on the Company's
website two hours after the live call ends.
Non-GAAP and Other Measures
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"). Consolidated
EBITDA and Segment EBITDA are provided solely as supplemental
non-GAAP disclosures of operating results. Management believes that
Consolidated EBITDA and Segment EBITDA assist investors in
understanding the results of operations of NACCO Industries. 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 to or termination
of customer or other third-party contracts, or a customer or other
third party default under a contract, (2) any customer's premature
facility closure, (3) a significant reduction in purchases by the
Company's customers, including as a result of changes in coal
consumption patterns of U.S. electric power generators, or changes
in the power industry that would affect demand for the Company's
coal and other mineral reserves, (4) changes in the prices of
hydrocarbons, particularly diesel fuel, natural gas and oil, (5)
failure or delays by the Company's lessees in achieving expected
production of natural gas and other hydrocarbons; the availability
and cost of transportation and processing services in the areas
where the Company's oil and gas reserves are located; federal and
state legislative and regulatory initiatives relating to hydraulic
fracturing; and the ability of lessees to obtain capital or
financing needed for well-development operations and leasing and
development of oil and gas reserves on federal lands, (6) failure
to obtain adequate insurance coverages at reasonable rates, (7)
supply chain disruptions, including price increases and shortages
of parts and materials, (8) the impact of the COVID-19 pandemic,
including any impact on suppliers, customers and employees, (9)
changes in tax laws or regulatory requirements, including the
elimination of, or reduction in, the percentage depletion tax
deduction, changes in mining or power plant emission regulations
and health, safety or environmental legislation, (10) the ability
of the Company to access credit in the current economic
environment, or obtain financing at reasonable rates, or at all,
and to maintain surety bonds for mine reclamation as a result of
current market sentiment for fossil fuels, (11) the effects of
investors' and other stakeholders' increasing attention to
environmental, social and governance ("ESG") matters, (12) changes
in costs related to geological and geotechnical conditions, repairs
and maintenance, new equipment and replacement parts, fuel or other
similar items, (13) regulatory actions, changes in mining permit
requirements or delays in obtaining mining permits that could
affect deliveries to customers, (14) weather conditions, extended
power plant outages, liquidity events or other events that would
change the level of customers' coal or aggregates requirements,
(15) weather or equipment problems that could affect deliveries to
customers, (16) changes in the costs to reclaim mining areas, (17)
costs to pursue and develop new mining, mitigation and oil and gas
opportunities and other value-added service opportunities, (18)
delays or reductions in coal or aggregates deliveries, (19) the
ability to successfully evaluate investments and achieve intended
financial results in new business and growth initiatives, (20)
disruptions from natural or human causes, including severe weather,
accidents, fires, earthquakes and terrorist acts, any of which
could result in suspension of operations or harm to people or the
environment, and (21) the ability to attract, retain, and replace
workforce and administrative employees.
About NACCO Industries
NACCO Industries® brings natural resources to life by
delivering aggregates, minerals, reliable fuels and environmental
solutions through its robust portfolio of NACCO Natural Resources
businesses. Learn more about our companies at nacco.com, or get
investor information at ir.nacco.com.
*****
NACCO INDUSTRIES, INC. AND
SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
THREE MONTHS
ENDED
|
|
MARCH 31
|
|
2022
|
|
2021
|
|
(In thousands, except
per share data)
|
Revenues
|
$
55,023
|
|
$
45,105
|
Cost of
sales
|
39,176
|
|
37,413
|
Gross profit
|
15,847
|
|
7,692
|
Earnings of unconsolidated
operations
|
14,592
|
|
15,342
|
Operating expenses
|
|
|
|
Selling, general and administrative expenses
|
14,784
|
|
13,763
|
Amortization of intangible assets
|
847
|
|
982
|
Gain on sale of assets
|
(136)
|
|
(41)
|
|
15,495
|
|
14,704
|
Operating profit
|
14,944
|
|
8,330
|
Other (income)
expense
|
|
|
|
Interest expense
|
513
|
|
356
|
Interest income
|
(145)
|
|
(120)
|
Closed mine obligations
|
380
|
|
383
|
Gain on equity securities
|
(518)
|
|
(823)
|
Other, net
|
(230)
|
|
(130)
|
|
—
|
|
(334)
|
Income before income tax provision
(benefit)
|
14,944
|
|
8,664
|
Income tax provision
(benefit)
|
2,362
|
|
(297)
|
Net income
|
$
12,582
|
|
$
8,961
|
|
|
|
|
Earnings per share:
|
|
|
|
Basic earnings per share
|
$
1.73
|
|
$
1.26
|
Diluted earnings per share
|
$
1.72
|
|
$
1.25
|
|
|
|
|
Basic weighted average shares
outstanding
|
7,253
|
|
7,101
|
Diluted weighted average shares
outstanding
|
7,321
|
|
7,142
|
|
CONSOLIDATED EBITDA RECONCILIATION
(UNAUDITED)
|
|
THREE MONTHS
ENDED
|
|
MARCH 31
|
|
2022
|
|
2021
|
|
(in
thousands)
|
Net income
|
$
12,582
|
|
$
8,961
|
Income tax provision
(benefit)
|
2,362
|
|
(297)
|
Interest
expense
|
513
|
|
356
|
Interest
income
|
(145)
|
|
(120)
|
Depreciation, depletion
and amortization expense
|
6,127
|
|
5,585
|
Consolidated
EBITDA*
|
$
21,439
|
|
$
14,485
|
|
|
|
|
*Consolidated EBITDA is
a non-GAAP measure and should not be considered in isolation or as
a substitute for GAAP measures. NACCO defines Consolidated EBITDA
as net income before income taxes, plus net interest expense and
depreciation, depletion and amortization expense. Consolidated
EBITDA is not a measure under U.S. GAAP and is not necessarily
comparable to similarly titled measures of other
companies.
|
NACCO INDUSTRIES, INC. AND
SUBSIDIARIES
FINANCIAL SEGMENT
HIGHLIGHTS AND
SEGMENT EBITDA RECONCILIATIONS (UNAUDITED)
|
|
|
Three Months Ended March 31,
2022
|
|
Coal
Mining
|
|
North
American
Mining
|
|
Minerals
Management
|
|
Unallocated
Items
|
|
Eliminations
|
|
Total
|
|
(In
thousands)
|
Revenues
|
$
20,962
|
|
$
21,404
|
|
$
12,754
|
|
$
192
|
|
$
(289)
|
|
$
55,023
|
Cost of
sales
|
18,850
|
|
19,650
|
|
748
|
|
349
|
|
(421)
|
|
39,176
|
Gross profit
(loss)
|
2,112
|
|
1,754
|
|
12,006
|
|
(157)
|
|
132
|
|
15,847
|
Earnings of
unconsolidated
operations
|
13,326
|
|
1,266
|
|
—
|
|
—
|
|
—
|
|
14,592
|
Operating
expenses*
|
8,086
|
|
1,749
|
|
378
|
|
5,282
|
|
—
|
|
15,495
|
Operating profit
(loss)
|
$
7,352
|
|
$
1,271
|
|
$
11,628
|
|
$
(5,439)
|
|
$
132
|
|
$
14,944
|
Segment EBITDA**
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
(loss)
|
$
7,352
|
|
$
1,271
|
|
$
11,628
|
|
$
(5,439)
|
|
$
132
|
|
$
14,944
|
Depreciation, depletion
and
amortization
|
4,038
|
|
1,467
|
|
578
|
|
44
|
|
—
|
|
6,127
|
Segment
EBITDA**
|
$
11,390
|
|
$
2,738
|
|
$
12,206
|
|
$
(5,395)
|
|
$
132
|
|
$
21,071
|
|
|
Three Months Ended March 31,
2021
|
|
Coal
Mining
|
|
North
American
Mining
|
|
Minerals
Management
|
|
Unallocated
Items
|
|
Eliminations
|
|
Total
|
|
(In
thousands)
|
Revenues
|
$
21,942
|
|
$
17,939
|
|
$
5,500
|
|
$
143
|
|
$
(419)
|
|
$
45,105
|
Cost of
sales
|
20,090
|
|
16,977
|
|
687
|
|
132
|
|
(473)
|
|
37,413
|
Gross profit
|
1,852
|
|
962
|
|
4,813
|
|
11
|
|
54
|
|
7,692
|
Earnings of
unconsolidated
operations
|
14,162
|
|
1,180
|
|
—
|
|
—
|
|
—
|
|
15,342
|
Operating
expenses*
|
7,857
|
|
1,485
|
|
578
|
|
4,784
|
|
—
|
|
14,704
|
Operating profit
(loss)
|
$
8,157
|
|
$
657
|
|
$
4,235
|
|
$
(4,773)
|
|
$
54
|
|
$
8,330
|
Segment EBITDA**
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
(loss)
|
$
8,157
|
|
$
657
|
|
$
4,235
|
|
$
(4,773)
|
|
$
54
|
|
$
8,330
|
Depreciation, depletion
and
amortization
|
4,155
|
|
951
|
|
447
|
|
32
|
|
—
|
|
5,585
|
Segment
EBITDA**
|
$
12,312
|
|
$
1,608
|
|
$
4,682
|
|
$
(4,741)
|
|
$
54
|
|
$
13,915
|
|
*Operating expenses
consist of Selling, general and administrative expenses,
Amortization of intangible assets and (Gain) loss on sale of
assets.
|
**Segment EBITDA is a
non-GAAP measure and should not be considered in isolation or as a
substitute for GAAP measures. NACCO defines Segment EBITDA as
operating profit (loss) plus contract termination settlements and
depreciation, depletion and amortization expense. Segment EBITDA is
not a measure under U.S. GAAP and is not necessarily comparable
with similarly titled measures of other companies.
|
NACCO INDUSTRIES, INC. AND
SUBSIDIARIES
FINANCIAL SEGMENT
HIGHLIGHTS AND
SEGMENT EBITDA RECONCILIATIONS (UNAUDITED)
|
|
|
Three Months Ended June 30,
2021
|
|
Coal
Mining
|
|
North
American
Mining
|
|
Minerals
Management
|
|
Unallocated
Items
|
|
Eliminations
|
|
Total
|
|
(In
thousands)
|
Revenues
|
$
20,689
|
|
$
19,860
|
|
$
5,608
|
|
$
910
|
|
$
(1,171)
|
|
$
45,896
|
Cost of
sales
|
18,043
|
|
17,815
|
|
956
|
|
1,235
|
|
(1,138)
|
|
36,911
|
Gross profit
(loss)
|
2,646
|
|
2,045
|
|
4,652
|
|
(325)
|
|
(33)
|
|
8,985
|
Earnings of
unconsolidated
operations
|
12,176
|
|
1,366
|
|
—
|
|
—
|
|
—
|
|
13,542
|
Operating
expenses*
|
7,195
|
|
1,713
|
|
479
|
|
4,470
|
|
—
|
|
13,857
|
Operating profit
(loss)
|
$
7,627
|
|
$
1,698
|
|
$
4,173
|
|
$
(4,795)
|
|
$
(33)
|
|
$
8,670
|
Segment EBITDA**
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
(loss)
|
$
7,627
|
|
$
1,698
|
|
$
4,173
|
|
$
(4,795)
|
|
$
(33)
|
|
$
8,670
|
Depreciation, depletion
and
amortization
|
4,073
|
|
984
|
|
522
|
|
38
|
|
—
|
|
5,617
|
Segment
EBITDA**
|
$
11,700
|
|
$
2,682
|
|
$
4,695
|
|
$
(4,757)
|
|
$
(33)
|
|
$
14,287
|
|
|
Three Months Ended September 30,
2021
|
|
Coal
Mining
|
|
North
American
Mining
|
|
Minerals
Management
|
|
Unallocated
Items
|
|
Eliminations
|
|
Total
|
|
(In
thousands)
|
Revenues
|
$
20,946
|
|
$
20,429
|
|
$
10,607
|
|
$
1,594
|
|
$
(1,834)
|
|
$
51,742
|
Cost of
sales
|
17,817
|
|
18,886
|
|
755
|
|
1,662
|
|
(1,707)
|
|
37,413
|
Gross profit
(loss)
|
3,129
|
|
1,543
|
|
9,852
|
|
(68)
|
|
(127)
|
|
14,329
|
Earnings of
unconsolidated
operations
|
16,380
|
|
1,272
|
|
—
|
|
—
|
|
—
|
|
17,652
|
Contract termination
settlement
|
10,333
|
|
—
|
|
—
|
|
—
|
|
—
|
|
10,333
|
Operating
expenses*
|
7,857
|
|
1,367
|
|
398
|
|
5,102
|
|
(2)
|
|
14,722
|
Operating profit
(loss)
|
$
21,985
|
|
$
1,448
|
|
$
9,454
|
|
$
(5,170)
|
|
$
(125)
|
|
$
27,592
|
Segment EBITDA**
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
(loss)
|
$
21,985
|
|
$
1,448
|
|
$
9,454
|
|
$
(5,170)
|
|
$
(125)
|
|
$
27,592
|
Contract termination
settlement
|
(10,333)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(10,333)
|
Depreciation, depletion
and
amortization
|
4,306
|
|
1,031
|
|
423
|
|
36
|
|
—
|
|
5,796
|
Segment
EBITDA**
|
$
15,958
|
|
$
2,479
|
|
$
9,877
|
|
$
(5,134)
|
|
$
(125)
|
|
$
23,055
|
|
*Operating expenses
consist of Selling, general and administrative expenses,
Amortization of intangible assets and (Gain) loss on sale of
assets.
|
**Segment EBITDA is a
non-GAAP measure and should not be considered in isolation or as a
substitute for GAAP measures. NACCO defines Segment EBITDA as
operating profit (loss) plus contract termination settlements and
depreciation, depletion and amortization expense. Segment EBITDA is
not a measure under U.S. GAAP and is not necessarily comparable
with similarly titled measures of other companies.
|
NACCO INDUSTRIES, INC. AND
SUBSIDIARIES
FINANCIAL SEGMENT
HIGHLIGHTS AND
SEGMENT EBITDA RECONCILIATIONS (UNAUDITED)
|
|
|
Three Months Ended December 31,
2021
|
|
Coal
Mining
|
|
North
American
Mining
|
|
Minerals
Management
|
|
Unallocated
Items
|
|
Eliminations
|
|
Total
|
|
(In
thousands)
|
Revenues
|
$
19,254
|
|
$
20,716
|
|
$
9,288
|
|
$
2,048
|
|
$
(2,203)
|
|
$
49,103
|
Cost of
sales
|
16,646
|
|
19,971
|
|
590
|
|
1,472
|
|
(2,022)
|
|
36,657
|
Gross profit
(loss)
|
2,608
|
|
745
|
|
8,698
|
|
576
|
|
(181)
|
|
12,446
|
Earnings of
unconsolidated
operations
|
13,371
|
|
936
|
|
—
|
|
—
|
|
—
|
|
14,307
|
Operating
expenses*
|
7,964
|
|
2,100
|
|
480
|
|
5,391
|
|
—
|
|
15,935
|
Operating profit
(loss)
|
$
8,015
|
|
$
(419)
|
|
$
8,218
|
|
$
(4,815)
|
|
$
(181)
|
|
$
10,818
|
Segment EBITDA**
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
(loss)
|
$
8,015
|
|
$
(419)
|
|
$
8,218
|
|
$
(4,815)
|
|
$
(181)
|
|
$
10,818
|
Depreciation, depletion
and
amortization
|
3,976
|
|
1,608
|
|
466
|
|
37
|
|
—
|
|
6,087
|
Segment
EBITDA**
|
$
11,991
|
|
$
1,189
|
|
$
8,684
|
|
$
(4,778)
|
|
$
(181)
|
|
$
16,905
|
|
|
Full Year 2021
|
|
Coal
Mining
|
|
North
American
Mining
|
|
Minerals
Management
|
|
Unallocated
Items
|
|
Eliminations
|
|
Total
|
|
(In
thousands)
|
Revenues
|
$
82,831
|
|
$
78,944
|
|
$
31,003
|
|
$
4,695
|
|
$
(5,627)
|
|
$ 191,846
|
Cost of
sales
|
72,596
|
|
73,649
|
|
2,988
|
|
4,501
|
|
(5,340)
|
|
148,394
|
Gross profit
(loss)
|
10,235
|
|
5,295
|
|
28,015
|
|
194
|
|
(287)
|
|
43,452
|
Earnings of
unconsolidated
operations
|
56,089
|
|
4,754
|
|
—
|
|
—
|
|
—
|
|
60,843
|
Contract termination
settlement
|
10,333
|
|
—
|
|
—
|
|
—
|
|
—
|
|
10,333
|
Operating
expenses*
|
30,873
|
|
6,665
|
|
1,935
|
|
19,747
|
|
(2)
|
|
59,218
|
Operating profit
(loss)
|
$
45,784
|
|
$
3,384
|
|
$
26,080
|
|
$ (19,553)
|
|
$
(285)
|
|
$
55,410
|
Segment EBITDA**
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
(loss)
|
$
45,784
|
|
$
3,384
|
|
$
26,080
|
|
$ (19,553)
|
|
$
(285)
|
|
$
55,410
|
Contract termination
settlement
|
(10,333)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(10,333)
|
Depreciation, depletion
and
amortization
|
16,510
|
|
4,574
|
|
1,858
|
|
143
|
|
—
|
|
23,085
|
Segment
EBITDA**
|
$
51,961
|
|
$
7,958
|
|
$
27,938
|
|
$ (19,410)
|
|
$
(285)
|
|
$
68,162
|
|
*Operating expenses
consist of Selling, general and administrative expenses,
Amortization of intangible assets and (Gain) loss on sale of
assets.
|
**Segment EBITDA is a
non-GAAP measure and should not be considered in isolation or as a
substitute for GAAP measures. NACCO defines Segment EBITDA as
operating profit (loss) plus contract termination settlements and
depreciation, depletion and amortization expense. Segment EBITDA is
not a measure under U.S. GAAP and is not necessarily comparable
with similarly titled measures of other companies.
|
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SOURCE NACCO Industries