NACCO INDUSTRIES ANNOUNCES FOURTH QUARTER AND FULL YEAR 2023 RESULTS
- Operating loss of $67.4 million and net loss of $44.0 million in Q4 2023 compared to operating profit of $15.5 million and net income of $13.8 million in 2022.
- Non-cash asset impairment charge of $65.9 million due to issues at Red Hills Power Plant.
- Adjusted EBITDA of $7.1 million in Q4 2023, excluding impairment charge, versus $23.6 million in 2022.
- Expectation of positive full-year net income in 2024 despite challenges at Red Hills Power Plant.
- Anticipated improvements at Mississippi Lignite Mining Company and higher earnings at Falkirk and Coteau in 2024.
- Consolidated cash of $85.1 million, debt of $36.0 million, and availability of $105.1 million under revolving credit facility as of December 31, 2023.
- Significant decline in operating profit and net income in Q4 2023 compared to 2022.
- Force majeure event affecting Red Hills Power Plant leading to customer demand decline in 2024.
- Non-cash asset impairment charge impacting Coal Mining and Minerals Management segments.
- Lower earnings at unconsolidated operations contributing to reduction in Segment Adjusted EBITDA.
Insights
The reported operating loss of $67.4 million for Q4 2023, contrasted with the operating profit of $15.5 million in the previous year, signifies a notable deterioration in NACCO Industries' operational performance. This is primarily attributed to a substantial non-cash asset impairment charge of $65.9 million due to an unplanned outage at the Red Hills Mine. When evaluating the financial health of a company, such a significant impairment charge can be a red flag, indicating potential overvaluation of assets or adverse changes in business prospects.
Investors should note that the adjusted EBITDA, which excludes this one-time impairment charge, stands at $7.1 million, down from $23.6 million in 2022. This metric is often used to assess a company's operating performance by stripping out non-cash and other one-time items. However, the sharp decline suggests underlying operational challenges beyond the impairment. The forward-looking statements for 2024 anticipate a positive turnaround in net income, which could suggest management's confidence in operational improvements and cost management strategies.
It's crucial for stakeholders to monitor the company's ability to navigate the energy market's volatility and its strategic initiatives aimed at growth and diversification. The capital structure and liquidity position, with $85.1 million in cash and $105.1 million in credit facility availability, appear solid, providing some buffer against short-term disruptions.
The impairment charge related to Mississippi Lignite Mining Company's operational issues reflects broader challenges in the coal mining sector, including the transition to alternative energy sources and the impact of unforeseen events like the significant unplanned outage. The force majeure event notice from the power plant customer and the subsequent expected decline in demand for 2024 underscore the risks associated with reliance on a limited number of customers and the inherent volatility of the energy sector.
On a positive note, the company's coal mining operations have a contract structure that shields them from spot coal market price fluctuations, mitigating some market risks. However, the dependency on natural gas prices, weather conditions and the availability of renewable power generation for customer demand remains a concern.
Investors should also consider the company's strategic moves in the Minerals Management segment, such as the acquisition within the Midland Basin. This investment aligns with the company's diversification strategy and could provide a new growth avenue, although it also introduces exposure to the volatile oil and gas markets.
The write-down of coal inventory to net realizable value and the expected loss at Mississippi Lignite Mining Company in 2024 highlight the challenges faced in the coal mining segment. The anticipated improvement in results due to lower depreciation and amortization, post-impairment, suggests a more conservative valuation of assets moving forward.
The Minerals Management segment's performance is closely tied to commodity prices, which have been volatile. The 51% decline in natural gas prices and the 5% decrease in oil prices significantly impacted revenues and Segment Adjusted EBITDA. The recent acquisition in the Midland Basin indicates a strategic pivot towards mineral interests, which may provide a buffer against the declining coal segment. However, this move also increases exposure to the unpredictable nature of commodity prices.
Lastly, the North American Mining segment shows promise with increased revenues in Q4 2023 compared to 2022, despite a slight operating loss. The long-term contract to mine phosphate and amended limestone contracts could enhance future profitability, although the capital expenditures of approximately $32 million for 2024 will require careful management to ensure a positive return on investment.
Consolidated Q4 2023 Highlights:
- Operating loss of
$67.4 million $15.5 million - Includes non-cash asset impairment charge of
$65.9 million
- Includes non-cash asset impairment charge of
- Net loss of
$44.0 million $13.8 million - Adjusted EBITDA of
$7.1 million $23.6 million
2024 Consolidated Outlook
- Expect to report positive full-year net income compared with substantial 2023 loss
Three Months Ended | Year Ended | ||||||||||
($ in millions except per share amounts) | 12/31/23 | 12/31/22 | $ Change | 12/31/23 | 12/31/22 | $ Change | |||||
Operating Profit (Loss) | |||||||||||
Net Income (Loss) | |||||||||||
Diluted Earnings (loss)/share | |||||||||||
Adjusted EBITDA* | |||||||||||
*Non-GAAP financial measures are defined and reconciled on pages 10 to 12. |
The substantial decreases in the Company's 2023 fourth-quarter and full-year results compared with the respective prior year periods were primarily due to a
In mid-December 2023, Mississippi Lignite Mining Company received a force majeure event notice from its customer as a result of an issue affecting one of two boilers at the Red Hills Power Plant. The unit remains disabled at this time and the timeline for resolution is uncertain. While the power plant continues to operate with one boiler, this issue is expected to result in a significant decline in customer demand during 2024. The anticipated reduction in demand contributed to a non-cash impairment charge of
In comparison, full-year 2022 net income included
At December 31, 2023, the Company had consolidated cash of
Detailed Discussion of Results
Coal Mining Results
Coal deliveries for the fourth quarter of 2023 and 2022 were as follows: | |||
2023 | 2022 | ||
Tons of coal delivered | (in thousands) | ||
Unconsolidated operations | 4,842 | 6,175 | |
Consolidated operations | 686 | 818 | |
Total deliveries | 5,528 | 6,993 | |
Key financial results for the fourth quarter of 2023 and 2022 were as follows: | |||
2023 | 2022 | ||
(in thousands) | |||
Revenues | $ 19,754 | $ 25,041 | |
Earnings of unconsolidated operations | $ 10,946 | $ 12,449 | |
Long-lived asset impairment charge | $ 60,832 | $ — | |
Operating expenses(1) | $ 9,357 | $ 8,548 | |
Operating profit (loss) | $ (62,283) | $ 3,693 | |
Segment Adjusted EBITDA(2) | $ 3,194 | $ 8,084 | |
(1) Operating expenses consist of Selling, general and administrative expenses, Amortization of intangible assets and (Gain) loss on sale of assets. |
(2) Segment Adjusted 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 11. |
Fourth-quarter 2023 revenues and Segment Adjusted EBITDA, which excludes the impairment charge, decreased significantly compared with a strong fourth-quarter 2022. These decreases were primarily due to fewer tons delivered at Mississippi Lignite Mining Company, in part due to the issue affecting the power plant. The decrease in tons delivered contributed to an increase in the cost per ton sold and a
Lower earnings at the unconsolidated operations, as well as higher operating expenses primarily from increased employee-related expenses, also contributed to the reduction in Segment Adjusted EBITDA. The decrease in earnings of unconsolidated operations was mainly due to lower customer requirements.
Coal Mining Outlook
In 2024, the Company expects coal deliveries to increase modestly from 2023 levels. Higher deliveries at Coteau and Falkirk are expected to be partly offset by the unfavorable effects of the force majeure event at Mississippi Lignite Mining Company and the power plant retirement that led to the March 31, 2023 cessation of coal deliveries from the Company's Sabine Mine.
Strong operating profit compared with a significant 2023 loss and substantially higher Segment Adjusted EBITDA are expected in 2024. These anticipated increases are primarily the result of an improvement in results at Mississippi Lignite Mining Company and higher earnings at Falkirk and Coteau.
Mississippi Lignite Mining Company expects to incur a loss in 2024, albeit significantly less than in 2023, as a result of the lower tons expected to be delivered in 2024. While total production costs at Mississippi Lignite Mining Company are anticipated to decline substantially from 2023 levels, they are expected to remain above historical levels throughout 2024 until deliveries return to normal and a pit extension in the new mine area is completed. Lower depreciation and amortization expense as a result of the lower depreciable value of Mississippi Lignite Mining Companies' assets after the impairment is expected to contribute to the improved results. An extended delay in repairs to the Red Hills Power Plant could significantly affect the Company's 2024 outlook.
An increase in 2024 earnings at the unconsolidated coal mining operations is driven primarily by an expectation for increased customer requirements at Coteau and Falkirk, as well as a higher per ton management fee at Falkirk beginning in June 2024 when temporary price concessions end.
Operating profit is expected to be higher in the second half of 2024 compared with the first half due to anticipated improvements at Mississippi Lignite Mining Company, increased demand at the unconsolidated coal mining operations and the end of the Falkirk price concessions in June 2024.
Capital expenditures are expected to be approximately
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, weather and the availability of renewable power generation, particularly wind, can contribute to changes in power plant dispatch and customer demand for coal. Changes to customer power plant dispatch would affect the Company's 2024 outlook, as well as outlook over the longer term.
North American Mining Results
Deliveries for the fourth quarter of 2023 and 2022 were as follows: | |||
2023 | 2022 | ||
(in thousands) | |||
Tons delivered | 12,477 | 13,467 | |
Key financial results for the fourth quarter of 2023 and 2022 were as follows: | |||
2023 | 2022 | ||
(in thousands) | |||
Revenues | $ 26,461 | $ 18,484 | |
Operating loss | $ (562) | $ (116) | |
Segment Adjusted EBITDA(1) | $ 1,811 | $ 1,796 | |
(1) Segment Adjusted 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 11. |
North American Mining® revenues increased significantly in fourth-quarter 2023 compared with 2022. This increase was primarily due to a
Improved fourth-quarter 2023 earnings at Sawtooth and North American Mining's active quarries were more than offset by a
North American Mining has made significant progress on operational and strategic projects to improve profitability. While the fourth-quarter operating results were down from the prior year, full-year operating profit was up
North American Mining Outlook
In October 2023, North American Mining executed a 15-year contract to mine phosphate at a quarry in central
Sawtooth Mining has an exclusive agreement to provide mining design, consulting and, once mining commences, will be the exclusive contract miner for the Thacker Pass lithium project in northern
In 2024, capital expenditures are expected to be approximately
Minerals Management Results
Key financial results for the fourth quarter of 2023 and 2022 were as follows: | |||
2023 | 2022 | ||
(in thousands) | |||
Revenues | $ 9,782 | $ 19,354 | |
Operating profit | $ 2,475 | $ 16,897 | |
Segment Adjusted EBITDA(1) | $ 8,269 | $ 18,142 | |
(1) Segment Adjusted 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 11. |
Minerals Management's fourth-quarter 2023 revenues and Segment Adjusted EBITDA, which excludes the impairment charge, decreased significantly from the 2022 fourth quarter primarily due to a
Minerals Management Outlook
The Minerals Management segment derives income primarily 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. Changing prices of natural gas and oil could have a significant impact on Minerals Management's operating profit.
In December 2023, Minerals Management completed an approximately
In 2024, operating profit and Segment Adjusted EBITDA are expected to decrease moderately compared with the prior year, excluding the 2023 impairment charge stemming from issues at the power plant served by Mississippi Lignite Mining Company. The forecasted reduction in profitability is primarily driven by current market expectations for natural gas and oil prices and modest expectations for development of additional new wells by third-party lessees. Lower operating expenses are expected to partially offset the anticipated profit decline.
The Company's forecast is based on current market assumptions for natural gas and oil market prices, as well as development and production assumptions on currently owned reserves. Commodity prices are inherently volatile. Changes may be abrupt in response to factors such as OPEC and/or government actions, geopolitical developments, economic conditions and regulatory changes, as well as supply and demand dynamics. Any change in natural gas and oil prices from current expectations will result in adjustments to the Company's outlook. The Company is closely monitoring the
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, additional leasing and development and/or changes to commodity prices. Development of additional wells on existing interests in excess of current expectations, or acquisitions of additional interests, could be accretive to future results.
In 2024, Minerals Management is targeting additional investments of up to
Mitigation Resources of
Mitigation Resources of
Consolidated 2023 Results
Overall, the Company reported a fourth-quarter 2023 operating loss of
Consolidated Outlook
Overall, the Company expects to generate net income in 2024 compared with the substantial 2023 consolidated net loss. Adjusted EBITDA is also expected to increase significantly over 2023. These improvements are primarily due to anticipated increased profitability at the Coal Mining segment from improved results at Mississippi Lignite Mining Company, Falkirk and Coteau. Growth at North American Mining is also expected to contribute to the higher 2024 results. Additional contracts for North American Mining or Mitigation Resources, or the acquisition of additional mineral interests at Minerals Management could be accretive to the current forecast.
Consolidated capital expenditures are expected to total approximately
Long-Term Growth and Diversification Outlook
Management continues to view the long-term business outlook for NACCO positively. 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. In the Minerals Management segment, as well as in the Company's Mitigation Resources of
The Minerals Management segment continues to pursue acquisitions of mineral and royalty interests in
North American Mining is focused on evaluating new business opportunities and driving profitable growth in line with refined strategic objectives. After a pause on business development in early 2023, North American Mining has better identified how to enhance operational excellence, where to focus and scale, and how to drive profitable growth. New contracts and contract extensions are central to the business' organic growth strategy, and North American Mining intends to be a substantial contributor to operating profit over time.
Mitigation Resources continues to expand its business, which creates and sells stream and wetland mitigation credits, provides services to those engaged in permittee-responsible mitigation and provides other environmental restoration services. This business offers an opportunity for growth and diversification in an industry where the Company has substantial knowledge and expertise and a strong reputation. Mitigation Resources is making strong progress toward its goal of becoming a top ten provider of stream and wetland mitigation services in the southeastern
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, weather and availability of renewable energy sources, such as wind and solar, could affect the amount of electricity dispatched from coal-fired power plants. While the Company realizes the coal mining industry faces political and regulatory challenges and demand for coal is projected to decline over the longer-term, the Company believes coal should be an essential part of the energy mix in
The Company continues to look for ways to create additional value by utilizing its core mining competencies which include reclamation and permitting. The Company is working to utilize these skills through development of utility-scale solar projects on reclaimed mining properties. Reclaimed mining properties offer large tracts of land that could be well-suited for solar and other energy-related projects. These projects could be developed by the Company itself or through joint ventures that include partners with expertise in energy development projects. In 2023, NACCO formed ReGen Resources to pursue such projects, including the development of a solar farm on reclaimed land at Mississippi Lignite Mining Company.
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, March 7, 2024 at 8:30 a.m. Eastern Time. The call may be accessed by dialing (800) 836-8184 (North America Toll Free) or (646) 357-8785 (International), Conference ID: 06467, or over the Internet through NACCO Industries' website at ir.nacco.com/home. For those not planning to ask a question of management, the Company recommends listening to the call via the online webcast. 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 March 14, 2024. An archive of the webcast will also be available on the Company's website approximately two hours after the live call ends.
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 by directing such requests to NACCO Industries, Inc., 5875 Landerbrook Drive,
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
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 or extended project development delay, (3) regulatory actions, including the United States Environmental Protection Agency's 2023 proposed rules relating to mercury and greenhouse gas emissions for coal-fired power plants, changes in mining permit requirements or delays in obtaining mining permits that could affect deliveries to customers, (4) a significant reduction in purchases by the Company's customers, including as a result of changes in coal consumption patterns of
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 | |||||||
Three Months Ended December 31 | Year Ended December 31 | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(In thousands, except per share data) | |||||||
Revenues | $ 56,757 | $ 63,534 | $ 214,794 | $ 241,719 | |||
Cost of sales | 49,756 | 45,010 | 200,203 | 173,877 | |||
Gross profit | 7,001 | 18,524 | 14,591 | 67,842 | |||
Earnings of unconsolidated operations | 12,332 | 13,448 | 49,994 | 57,250 | |||
Contract termination settlement | — | — | — | 14,000 | |||
Operating expenses | |||||||
Selling, general and administrative expenses | 19,876 | 15,496 | 65,616 | 63,911 | |||
Amortization of intangible assets | 702 | 947 | 2,998 | 3,719 | |||
Loss (gain) on sale of assets | 302 | (12) | 221 | (2,463) | |||
Long-lived asset impairment charge | 65,887 | — | 65,887 | 3,939 | |||
86,767 | 16,431 | 134,722 | 69,106 | ||||
Operating profit (loss) | (67,434) | 15,541 | (70,137) | 69,986 | |||
Other (income) expense | |||||||
Interest expense | 711 | 539 | 2,460 | 2,034 | |||
Interest income | (1,533) | (757) | (6,081) | (1,449) | |||
Closed mine obligations | 2,349 | 24 | 3,585 | 1,179 | |||
(Gain) loss on equity securities | (1,460) | (1,393) | (1,958) | 283 | |||
Other contract termination settlements | — | — | — | (16,882) | |||
Other, net | (1,568) | 902 | (3,985) | (2,902) | |||
(1,501) | (685) | (5,979) | (17,737) | ||||
Income (loss) before income tax provision (benefit) | (65,933) | 16,226 | (64,158) | 87,723 | |||
Income tax provision (benefit) | (21,966) | 2,444 | (24,571) | 13,565 | |||
Net income (loss) | $ (43,967) | $ 13,782 | $ (39,587) | $ 74,158 | |||
Earnings (loss) per share: | |||||||
Basic earnings (loss) per share | $ (5.88) | $ 1.88 | $ (5.29) | $ 10.14 | |||
Diluted earnings (loss) per share | $ (5.88) | $ 1.84 | $ (5.29) | $ 10.06 | |||
Basic weighted average shares outstanding | 7,481 | 7,344 | 7,478 | 7,312 | |||
Diluted weighted average shares outstanding | 7,481 | 7,475 | 7,478 | 7,373 | |||
CONSOLIDATED ADJUSTED EBITDA RECONCILIATION (UNAUDITED) | |||||||
Three Months Ended December 31 | Year Ended December 31 | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(in thousands) | |||||||
Net income (loss) | $ (43,967) | $ 13,782 | $ (39,587) | $ 74,158 | |||
Contract termination settlement | — | — | — | (30,882) | |||
Long-lived asset impairment charge | 65,887 | — | 65,887 | 3,939 | |||
Income tax provision (benefit) | (21,966) | 2,444 | (24,571) | 13,565 | |||
Interest expense | 711 | 539 | 2,460 | 2,034 | |||
Interest income | (1,533) | (757) | (6,081) | (1,449) | |||
Depreciation, depletion and amortization expense | 7,958 | 7,632 | 29,387 | 26,816 | |||
Consolidated Adjusted EBITDA* | $ 7,090 | $ 23,640 | $ 27,495 | $ 88,181 | |||
*Consolidated Adjusted EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for GAAP measures. NACCO defines Consolidated Adjusted EBITDA as net income (loss) before long-lived asset impairment charges, contract termination settlements and income taxes, plus net interest expense and depreciation, depletion and amortization expense. Consolidated Adjusted EBITDA is not a measure under |
NACCO INDUSTRIES, INC. AND SUBSIDIARIES | |||||||||||
Three Months Ended December 31, 2023 | |||||||||||
Coal Mining | North | Minerals | Unallocated | Eliminations | Total | ||||||
(In thousands) | |||||||||||
Revenues | $ 19,754 | $ 26,461 | $ 9,782 | $ 1,674 | $ (914) | $ 56,757 | |||||
Cost of sales | 22,794 | 25,308 | 943 | 1,577 | (866) | 49,756 | |||||
Gross profit (loss) | (3,040) | 1,153 | 8,839 | 97 | (48) | 7,001 | |||||
Earnings of unconsolidated operations | 10,946 | 1,386 | — | — | — | 12,332 | |||||
Long-lived asset impairment charge | 60,832 | — | 5,055 | — | — | 65,887 | |||||
Operating expenses* | 9,357 | 3,101 | 1,309 | 7,113 | — | 20,880 | |||||
Operating profit (loss) | $ (62,283) | $ (562) | $ 2,475 | $ (7,016) | $ (48) | $ (67,434) | |||||
Segment Adjusted EBITDA** | |||||||||||
Operating profit (loss) | $ (62,283) | $ (562) | $ 2,475 | $ (7,016) | $ (48) | $ (67,434) | |||||
Long-lived asset impairment charge | 60,832 | — | 5,055 | — | — | 65,887 | |||||
Depreciation, depletion and amortization | 4,645 | 2,373 | 739 | 201 | — | 7,958 | |||||
Segment Adjusted EBITDA** | $ 3,194 | $ 1,811 | $ 8,269 | $ (6,815) | $ (48) | $ 6,411 | |||||
Three Months Ended December 31, 2022 | |||||||||||
Coal Mining | North | Minerals | Unallocated | Eliminations | Total | ||||||
(In thousands) | |||||||||||
Revenues | $ 25,041 | $ 18,484 | $ 19,354 | $ 1,051 | $ (396) | $ 63,534 | |||||
Cost of sales | 25,249 | 17,756 | 1,448 | 1,082 | (525) | 45,010 | |||||
Gross profit (loss) | (208) | 728 | 17,906 | (31) | 129 | 18,524 | |||||
Earnings of unconsolidated operations | 12,449 | 999 | — | — | — | 13,448 | |||||
Operating expenses* | 8,548 | 1,843 | 1,009 | 5,031 | — | 16,431 | |||||
Operating profit (loss) | $ 3,693 | $ (116) | $ 16,897 | $ (5,062) | $ 129 | $ 15,541 | |||||
Segment Adjusted EBITDA** | |||||||||||
Operating profit (loss) | $ 3,693 | $ (116) | $ 16,897 | $ (5,062) | $ 129 | $ 15,541 | |||||
Depreciation, depletion and amortization | 4,391 | 1,912 | 1,245 | 84 | — | 7,632 | |||||
Segment Adjusted EBITDA** | $ 8,084 | $ 1,796 | $ 18,142 | $ (4,978) | $ 129 | $ 23,173 | |||||
*Operating expenses consist of Selling, general and administrative expenses, Amortization of intangible assets and (Gain) loss on sale of assets. | |||||||||||
**Segment Adjusted EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for GAAP measures. NACCO defines Segment Adjusted EBITDA as operating profit (loss) before long-lived asset impairment charges, contract termination settlements and depreciation, depletion and amortization expense. Segment Adjusted EBITDA is not a measure under |
NACCO INDUSTRIES, INC. AND SUBSIDIARIES | |||||||||||
Year Ended December 31, 2023 | |||||||||||
Coal Mining | North | Minerals | Unallocated | Eliminations | Total | ||||||
(In thousands) | |||||||||||
Revenues | $ 85,415 | $ 90,532 | $ 32,985 | $ 8,459 | $ (2,597) | $ 214,794 | |||||
Cost of sales | 108,760 | 83,719 | 3,969 | 6,252 | (2,497) | 200,203 | |||||
Gross profit (loss) | (23,345) | 6,813 | 29,016 | 2,207 | (100) | 14,591 | |||||
Earnings of unconsolidated operations | 44,633 | 5,361 | — | — | — | 49,994 | |||||
Long-lived asset impairment charge | 60,832 | — | 5,055 | — | — | 65,887 | |||||
Operating expenses* | 31,798 | 8,826 | 4,543 | 23,668 | — | 68,835 | |||||
Operating profit (loss) | $ (71,342) | $ 3,348 | $ 19,418 | $ (21,461) | $ (100) | $ (70,137) | |||||
Segment Adjusted EBITDA** | |||||||||||
Operating profit (loss) | $ (71,342) | $ 3,348 | $ 19,418 | $ (21,461) | $ (100) | $ (70,137) | |||||
Long-lived asset impairment charge | 60,832 | — | 5,055 | — | — | 65,887 | |||||
Depreciation, depletion and amortization | 17,569 | 8,172 | 3,067 | 579 | — | 29,387 | |||||
Segment Adjusted EBITDA** | $ 7,059 | $ 11,520 | $ 27,540 | $ (20,882) | $ (100) | $ 25,137 | |||||
Year Ended December 31, 2022 | |||||||||||
Coal Mining | North | Minerals | Unallocated | Eliminations | Total | ||||||
(In thousands) | |||||||||||
Revenues | $ 95,204 | $ 85,664 | $ 60,242 | $ 2,952 | $ (2,343) | $ 241,719 | |||||
Cost of sales | 89,670 | 79,842 | 3,935 | 3,266 | (2,836) | 173,877 | |||||
Gross profit (loss) | 5,534 | 5,822 | 56,307 | (314) | 493 | 67,842 | |||||
Earnings of unconsolidated operations | 52,535 | 4,715 | — | — | — | 57,250 | |||||
Contract termination settlement | 14,000 | — | — | — | — | 14,000 | |||||
Long-lived asset impairment charge | — | — | 3,939 | — | — | 3,939 | |||||
Operating expenses* | 33,760 | 8,335 | 154 | 22,919 | (1) | 65,167 | |||||
Operating profit (loss) | $ 38,309 | $ 2,202 | $ 52,214 | $ (23,233) | $ 494 | $ 69,986 | |||||
Segment Adjusted EBITDA** | |||||||||||
Operating profit (loss) | $ 38,309 | $ 2,202 | $ 52,214 | $ (23,233) | $ 494 | $ 69,986 | |||||
Contract termination settlement | (14,000) | — | — | — | — | (14,000) | |||||
Long-lived asset impairment charge | — | — | 3,939 | — | — | 3,939 | |||||
Depreciation, depletion and amortization | 17,074 | 6,457 | 3,026 | 259 | — | 26,816 | |||||
Segment Adjusted EBITDA** | $ 41,383 | $ 8,659 | $ 59,179 | $ (22,974) | $ 494 | $ 86,741 | |||||
*Operating expenses consist of Selling, general and administrative expenses, Amortization of intangible assets and (Gain) loss on sale of assets. | |||||||||||
**Segment Adjusted EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for GAAP measures. NACCO defines Segment Adjusted EBITDA as operating profit (loss) before long-lived asset impairment charges, contract termination settlements and depreciation, depletion and amortization expense. Segment Adjusted EBITDA is not a measure under |
View original content to download multimedia:https://www.prnewswire.com/news-releases/nacco-industries-announces-fourth-quarter-and-full-year-2023-results-302082118.html
SOURCE NACCO Industries
FAQ
What were the operating profit and net income figures for NACCO Industries in Q4 2023?
What caused the non-cash asset impairment charge of $65.9 million for NACCO Industries?
What is the outlook for NACCO Industries in 2024?
How did the operating results at Mississippi Lignite Mining Company impact the overall outlook for NACCO Industries?
What were the financial figures for consolidated cash, debt, and availability under the revolving credit facility as of December 31, 2023?
