NACCO INDUSTRIES ANNOUNCES SECOND QUARTER 2024 RESULTS
NACCO Industries (NYSE: NC) reported strong Q2 2024 results, with operating profit increasing to $7.4 million from $1.8 million in Q2 2023. Key highlights include:
- Net income rose to $6.0 million ($0.81/share) from $2.5 million ($0.34/share) in Q2 2023
- Results boosted by improved performance in Coal Mining and North American Mining segments
- $4.5 million gain from sale of legacy land asset in Minerals Management segment
- Coal Mining segment saw significant increase in operating profit and Adjusted EBITDA
- North American Mining revenues grew 29%, with operating profit up 39%
- Company expects continued growth in second half of 2024 across segments
NACCO is pursuing long-term growth and diversification strategies to transform into a broad-based natural resources company, targeting opportunities in mineral interests, mining services, and environmental solutions.
NACCO Industries (NYSE: NC) ha riportato risultati solidi per il secondo trimestre del 2024, con l'utile operativo che è aumentato a 7,4 milioni di dollari rispetto a 1,8 milioni di dollari nel secondo trimestre del 2023. I punti salienti includono:
- Il reddito netto è salito a 6,0 milioni di dollari (0,81 dollari per azione) rispetto a 2,5 milioni di dollari (0,34 dollari per azione) nel secondo trimestre del 2023
- I risultati sono stati supportati da una migliore performance nei segmenti delle miniera di carbone e delle miniere nordamericane
- Guadagno di 4,5 milioni di dollari dalla vendita di un'asset immobiliare legacy nel segmento della gestione mineraria
- Il segmento della miniera di carbone ha registrato un significativo aumento dell'utile operativo e dell'EBITDA rettificato
- I ricavi delle miniere nordamericane sono aumentati del 29%, con un utile operativo in crescita del 39%
- L'azienda prevede una continua crescita nella seconda metà del 2024 in tutti i segmenti
NACCO sta perseguendo strategie di crescita a lungo termine e diversificazione per trasformarsi in un'azienda di risorse naturali diversificata, puntando su opportunità nei interessi minerari, servizi minerari e soluzioni ambientali.
NACCO Industries (NYSE: NC) reportó sólidos resultados para el segundo trimestre de 2024, con beneficio operativo aumentando a 7.4 millones de dólares desde 1.8 millones de dólares en el segundo trimestre de 2023. Los puntos destacados incluyen:
- El ingreso neto aumentó a 6.0 millones de dólares (0.81 dólares/acción) desde 2.5 millones de dólares (0.34 dólares/acción) en el segundo trimestre de 2023
- Los resultados se vieron impulsados por un mejor desempeño en los segmentos de minería de carbón y minería en América del Norte
- Ganancia de 4.5 millones de dólares por la venta de un activo inmobiliario legado en el segmento de gestión de minerales
- El segmento de minería de carbón vio un aumento significativo en el beneficio operativo y el EBITDA ajustado
- Los ingresos de minería en América del Norte crecieron un 29%, con un aumento del beneficio operativo del 39%
- La empresa espera un crecimiento continuo en la segunda mitad de 2024 en todos los segmentos
NACCO está persiguiendo estrategias de crecimiento y diversificación a largo plazo para transformarse en una empresa diversificada de recursos naturales, apuntando a oportunidades en intereses minerales, servicios mineros y soluciones ambientales.
NACCO Industries (NYSE: NC)는 2024년 2분기 실적을 강력하게 발표했으며, 운영 이익이 180만 달러에서 740만 달러로 증가했습니다 2023년 2분기. 주요 내용은 다음과 같습니다:
- 순이익이 250만 달러에서 600만 달러(주당 0.81달러)로 증가했습니다 2023년 2분기
- 결과는 석탄 채굴 및 북미 광업 부문에서의 성과 향상에 의해 영향을 받았습니다
- 광물 관리 부문에서 유산 토지 자산 매각으로 450만 달러의 이익을 얻었습니다
- 석탄 채굴 부문은 운영 이익과 조정된 EBITDA에서 큰 증가를 보였습니다
- 북미 광업 수익이 29% 증가했으며 운영 이익은 39% 증가했습니다
- 회사는 2024년 하반기 모든 부문에서 지속적인 성장을 기대하고 있습니다
NACCO는 광물 권리, 채굴 서비스 및 환경 솔루션에서의 기회를 목표로 삼아 광범위한 자연 자원 회사로의 전환을 위한 장기 성장 및 다각화 전략을 추구하고 있습니다.
NACCO Industries (NYSE: NC) a annoncé des résultats solides pour le deuxième trimestre 2024, avec un bénéfice d'exploitation augmentant à 7,4 millions de dollars contre 1,8 million de dollars au T2 2023. Les faits saillants comprennent :
- Le revenu net a augmenté à 6,0 millions de dollars (0,81 dollar/action) contre 2,5 millions de dollars (0,34 dollar/action) au T2 2023
- Les résultats ont été soutenus par une performance améliorée dans les segments de l'extraction de charbon et de l'extraction en Amérique du Nord
- Gain de 4,5 millions de dollars de la vente d'un actif foncier hérité dans le segment de la gestion minérale
- Le segment de l'extraction de charbon a connu une augmentation significative du bénéfice d'exploitation et de l'EBITDA ajusté
- Les revenus du secteur minier nord-américain ont crû de 29%, avec un bénéfice d'exploitation en hausse de 39%
- L'entreprise s'attend à une croissance continue dans la seconde moitié de 2024 dans tous les segments
NACCO poursuit des stratégies de croissance et de diversification à long terme pour se transformer en une entreprise diversifiée de ressources naturelles, ciblant des opportunités dans les intérêts miniers, les services miniers et les solutions environnementales.
NACCO Industries (NYSE: NC) berichtete über starke Ergebnisse im Q2 2024, wobei der Betriebsgewinn auf 7,4 Millionen Dollar von 1,8 Millionen Dollar im Q2 2023 gestiegen ist. Wichtige Highlights umfassen:
- Der Nettogewinn stieg auf 6,0 Millionen Dollar (0,81 Dollar/Aktie) von 2,5 Millionen Dollar (0,34 Dollar/Aktie) im Q2 2023
- Ergebnisse wurden durch verbesserte Leistungen im Kohlebergbau und Nordamerika-Bergbausegmenten gestärkt
- 4,5 Millionen Dollar Gewinn aus dem Verkauf eines ehemaligen Grundstücks in der Mineralienverwaltung
- Das Kohlebergbau-Segment verzeichnete einen signifikanten Anstieg des Betriebsgewinns und des bereinigten EBITDA
- Die Einnahmen aus dem nordamerikanischen Bergbau wuchsen um 29%, das Betriebsgewinnausschüttung stieg um 39%
- Das Unternehmen erwartet ein weiteres Wachstum in der zweiten Hälfte des Jahres 2024 in allen Segmenten
NACCO verfolgt langfristige Wachstums- und Diversifizierungsstrategien, um sich in ein breit aufgestelltes Unternehmen für natürliche Ressourcen zu verwandeln, mit dem Ziel, Chancen in mineralischen Interessen, Bergbauservices und Umweltlösungen zu nutzen.
- Operating profit increased 320.9% to $7.4 million in Q2 2024
- Net income rose 137% to $6.0 million ($0.81/share) in Q2 2024
- Coal Mining segment generated significantly increased operating profit and Adjusted EBITDA
- North American Mining revenues grew 29%, with operating profit up 39%
- $4.5 million gain on sale of legacy land asset in Minerals Management segment
- Company expects increased consolidated operating profit in second half of 2024
- Pursuing growth opportunities in mineral interests, mining services, and environmental solutions
- Minerals Management revenues declined 39% due to lower natural gas and oil prices
- Anticipating non-cash pension settlement charge in Q4 2024
- Expects cash flow before financing activities to be a use of cash in 2024
Insights
NACCO Industries' Q2 2024 results show significant improvement across key financial metrics, indicating positive momentum for the company. Here are the key takeaways:
- Operating profit surged 320.9% to
$7.4 million , boosted by a$4.5 million gain on asset sale - Net income more than doubled to
$5.97 million , with EPS rising138.2% to$0.81 - EBITDA increased
46.7% to$13.5 million
The Coal Mining segment showed remarkable improvement, swinging from a loss to a profit despite lower revenues. This was driven by operational efficiencies and improved mining conditions. North American Mining also posted strong growth across all metrics.
However, it's important to note that the Minerals Management segment saw a
Looking ahead, NACCO expects continued improvement in the second half of 2024, particularly in Coal Mining and North American Mining. However, a potential non-cash pension settlement charge in Q4 could impact overall results.
The company's strategic shift towards becoming a broader natural resources company, with investments in minerals management and environmental services, appears to be gaining traction. This diversification could help mitigate risks associated with the long-term decline in coal demand.
Overall, while the results are encouraging, investors should monitor the sustainability of these improvements, especially in the face of volatile commodity prices and potential regulatory challenges in the coal industry.
NACCO's Q2 results reflect the complex dynamics at play in the energy sector. Let's break down the key points:
- The Coal Mining segment's turnaround is impressive, but it's important to contextualize this within the broader energy transition. While operational improvements are commendable, the long-term outlook for coal remains challenging.
- The reduced operations at Mississippi Lignite Mining Company due to a boiler issue highlight the vulnerability of coal-fired power plants to technical disruptions and maintenance issues.
- The North American Mining segment's growth, particularly in limestone and phosphate, demonstrates NACCO's efforts to diversify beyond coal. The new 15-year phosphate mining contract is a positive development.
- The Minerals Management segment's performance underscores the volatility of natural gas and oil prices. While the
$4.5 million asset sale gain boosted results, the underlying39% revenue decline is concerning.
NACCO's strategic pivot towards becoming a broader natural resources company is prudent. The focus on minerals management, mitigation resources and potential renewable energy projects on reclaimed mining land shows foresight in adapting to changing energy landscapes.
However, challenges remain. The company's continued reliance on coal mining revenues in the near term exposes it to regulatory and market risks as the energy transition accelerates. The planned pension plan termination and potential Q4 non-cash charge also warrant attention.
In conclusion, while NACCO is making strides in diversification and operational efficiency, its ability to navigate the ongoing energy transition will be important for long-term success. Investors should closely monitor the company's progress in growing its non-coal businesses and managing potential headwinds in its traditional coal operations.
NACCO's Q2 2024 results and forward-looking statements reveal a company at a crossroads between its traditional coal-focused operations and a more diversified natural resources portfolio. This transition raises several environmental and policy considerations:
- While coal mining remains a significant part of NACCO's business, the company acknowledges the long-term decline in coal demand. This aligns with global efforts to reduce carbon emissions and transition to cleaner energy sources.
- The company's expansion into minerals management, particularly oil and gas royalties, may face scrutiny as policymakers increasingly focus on reducing fossil fuel dependence.
- NACCO's Mitigation Resources of North America subsidiary, which provides stream and wetland mitigation solutions, aligns well with growing environmental restoration priorities. This could position the company favorably as environmental regulations tighten.
- The exploration of renewable energy projects on reclaimed mine land through ReGen Resources is a positive step towards sustainability. However, the scale and impact of these initiatives remain to be seen.
From a policy perspective, NACCO's future may be significantly influenced by:
- Potential changes in environmental regulations, particularly those affecting coal mining and power generation
- Federal and state incentives for renewable energy development and environmental restoration
- Carbon pricing mechanisms or other climate-related policies that could impact the economics of fossil fuel extraction
While NACCO is taking steps to diversify and adapt to changing environmental priorities, the company's legacy coal business remains a significant environmental liability. The success of its transition to a broader natural resources company will likely depend on how effectively it can scale its more sustainable operations while managing the decline of its coal business in an environmentally responsible manner.
Investors and stakeholders should closely monitor NACCO's progress in this transition, as well as any shifts in environmental policy that could accelerate or hinder these efforts.
Consolidated Q2 2024 Highlights:
- Operating profit of
increased from$7.4 million in Q2 2023$1.8 million - Includes
gain on sale of an asset$4.5 million
- Includes
- Income before taxes of
increased from$6.2 million in Q2 2023$3.3 million - Net income of
, or$6.0 million /share versus$0.81 , or$2.5 million /share, in Q2 2023$0.34
Three Months Ended | Six Months Ended | ||||||||||
($ in thousands, except per share amounts) | 6/30/2024 | 6/30/2023 | % Change | 6/30/2024 | 6/30/2023 | % Change | |||||
Operating Profit | 320.9 % | 240.2 % | |||||||||
Income before taxes | 91.2 % | 54.8 % | |||||||||
Net Income | 137.0 % | 28.4 % | |||||||||
Diluted Earnings/share | 138.2 % | 30.3 % | |||||||||
EBITDA* | 46.7 % | 23.9 % |
*Non-GAAP financial measures are defined and reconciled on page 8. |
The substantial increase in the Company's 2024 second-quarter operating profit and income before taxes was primarily due to significantly improved operating results in the Coal Mining and North American Mining segments as well as a
At June 30, 2024, the Company had consolidated cash of
Detailed Discussion of Results
Coal Mining Results
Q2 2024 | Q2 2023 | ||
Tons of coal delivered | (in thousands) | ||
Unconsolidated operations | 4,930 | 4,602 | |
Consolidated operations | 423 | 906 | |
Total deliveries | 5,353 | 5,508 | |
Q2 2024 | Q2 2023 | ||
(in thousands) | |||
Revenues | $ 14,996 | $ 26,343 | |
Earnings of unconsolidated operations | $ 12,006 | $ 9,962 | |
Operating expenses(1) | $ 8,097 | $ 7,711 | |
Operating profit (loss) | $ 2,767 | $ (4,675) | |
Segment Adjusted EBITDA(2) | $ 5,663 | $ (327) |
(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 9. |
The Coal Mining segment generated significantly increased second-quarter operating profit and Segment Adjusted EBITDA compared with prior year losses despite lower revenues.
Second-quarter 2024 revenues decreased primarily as a result of fewer tons delivered at Mississippi Lignite Mining Company. Customer requirements declined as the power plant served by the mine has been operating with only one of its two boilers since December 2023.
The increase in operating results and Segment Adjusted EBITDA were mainly due to improved results at Mississippi Lignite Mining Company and higher earnings of unconsolidated operations. An increase in operating expenses, primarily employee-related costs, partly offset the improved results.
The improvement in Mississippi Lignite Mining Company results was primarily attributable to increased operating efficiencies due to the completion of the move to a new mine area in late 2023 and improved mining conditions in the second quarter of 2024 compared to the prior year period. Changes in the level of coal inventory and costs capitalized into inventory also contributed to the improvement. The increase in earnings of unconsolidated operations was primarily due to an increase in customer requirements as well as higher pricing at Falkirk that began in June 2024 when temporary price concessions ended. An increase in Sabine earnings also contributed to the improvement.
Coal Mining Outlook
Coal deliveries in the second half of 2024 are expected to increase over 2023 levels as higher deliveries at Coteau and Falkirk are partly offset by fewer deliveries at Mississippi Lignite Mining Company. The decrease in Mississippi Lignite Mining Company deliveries is due to the previously mentioned boiler issue. Coal Mining segment full-year 2024 deliveries are expected to be comparable to 2023.
Excluding the
The anticipated second-half 2024 increase in earnings at the unconsolidated coal mining operations compared with 2023 is driven primarily by an expectation for increased deliveries, as well as the cessation of temporary price concessions at Falkirk.
Second-half 2024 results are also expected to increase significantly over the first half primarily due to higher earnings at Falkirk and improved results at Mississippi Lignite Mining Company based on current expectations that the boiler issue will be resolved and the plant will be fully operational by the fourth quarter of 2024.
Capital expenditures in 2024 are expected to be approximately
North American Mining Results
Q2 2024 | Q2 2023 | ||
(in thousands) | |||
Tons delivered | 16,000 | 13,939 | |
Q2 2024 | Q3 2023 | ||
(in thousands) | |||
Revenues | $ 27,920 | $ 21,716 | |
Operating profit | $ 3,085 | $ 2,214 | |
Segment Adjusted EBITDA(1) | $ 5,519 | $ 4,069 |
(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 9. |
North American Mining® revenues grew
- an increase in customer requirements,
- favorable pricing and delivery mix,
- improved margins at the limestone quarries resulting from mutually beneficial contract amendments, and
- a new 15-year contract to mine phosphate.
These items were partly offset by an increase in operating expenses.
North American Mining Outlook
North American Mining expects operating profit and Segment Adjusted EBITDA to increase in both the 2024 second half and full year over the respective 2023 periods but decrease from the 2024 first half. The year-over-year improvements are primarily due to the late 2023 amendment of limestone contracts to more mutually advantageous contract terms, a scope of work expansion with another customer and the second-quarter 2024 commencement of a new 15-year contract to mine phosphate at a quarry in central
Sawtooth Mining is the exclusive provider of comprehensive mining services at Thacker Pass, including mine design, construction, operation, maintenance and reclamation. Thacker Pass is owned by Lithium Americas Corp. (TSX: LAC) (NYSE: LAC). Thacker Pass will supply all of Lithium Americas' lithium-bearing ore requirements. In March 2023, Lithium Americas commenced construction at Thacker Pass. Sawtooth will be reimbursed for costs of mining, capital expenditures and mine closure and will recognize a contractually agreed upon production fee. The Company expects to continue to recognize moderate income prior to the commencement of Phase 1 lithium production, estimated to begin in 2027/2028.
Capital expenditures in 2024 are expected to be approximately
Minerals Management Results
Q2 2024 | Q2 2023 | ||
(in thousands) | |||
Revenues | $ 5,593 | $ 9,171 | |
Operating profit | $ 7,591 | $ 7,289 | |
Segment Adjusted EBITDA(1) | $ 8,914 | $ 8,038 |
(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 9. |
Minerals Management's second-quarter 2024 operating profit and Segment Adjusted EBITDA improved modestly over the prior year quarter. These results include a
Minerals Management Outlook
Operating profit and Segment Adjusted EBITDA for the 2024 second half and full year are expected to increase compared with the respective 2023 periods, excluding the fourth-quarter 2023 impairment charge of
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. 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. Changing prices of natural gas and oil could have a significant impact on Minerals Management's operating profit. Development of additional wells on existing interests in excess of current expectations, or acquisitions of additional interests, could be accretive to future results.
Minerals Management is targeting investments of up to
Consolidated Outlook
Result for the second half of 2023 included a
Consolidated second-half operating profit is expected to increase compared with both the first half of 2024 and second half of 2023. These improvements are primarily due to anticipated increases in profitability at the Coal Mining segment from improved results at Mississippi Lignite Mining Company, Falkirk and Coteau. Contributions from North American Mining's growth and profit improvement initiatives are also expected to contribute to improved second-half results.
The Company also expects consolidated net income in the 2024 second half and full year to increase compared with the respective 2023 periods. This improvement is anticipated to be partly offset by an increase in net interest expense as a result of additional borrowings and lower cash levels and higher income tax expense.
The Company is taking steps to terminate its defined benefit pension plan, which will eliminate future volatility from changes in the pension obligation. In connection with this action, obligations under this plan will be transferred to a third-party insurance provider. The Company expects to utilize surplus assets to fund a qualified replacement plan, reducing future cash funding requirements. Although the plan is currently over funded, NACCO is anticipating a non-cash settlement charge in the 2024 fourth quarter, which is expected to partly offset improvements in 2024 second-half operating profit. As a result, the Company anticipates that consolidated net income and Adjusted EBITDA will decrease in the second half of 2024 compared with the first half of the year. While the Company anticipates that third-quarter net income will improve significantly over the second quarter, fourth-quarter net income is expected to be substantially lower than both the third quarter and prior year fourth quarter primarily as a result of the anticipated non-cash pension settlement charge.
Consolidated capital expenditures are expected to total approximately
Long-term Growth and Diversification
Management is transforming NACCO into a broad-based natural resources company and is optimistic about the Company's long-term business outlook. NACCO's businesses provide critical inputs for electricity generation, construction and development, and the production of industrial minerals and chemicals. Increasing demand for electricity, on-shoring and current federal policies are creating favorable macroeconomic trends within these industries. The Company believes its businesses have competitive advantages that provide value to customers and create long-term value for stockholders. The Company is pursuing growth and diversification by strategically leveraging its core mining and natural resources management skills to build a robust portfolio of affiliated businesses. Opportunities for growth remain strong. Acquisitions of additional mineral interests and improvements in the outlook for Coal Mining segment customers, as well as new contracts at Mitigation Resources and North American Mining should be accretive to the Company's outlook.
The Minerals Management segment continues to pursue acquisitions of mineral and royalty interests in
North American Mining continues to evaluate new business opportunities and drive profitable growth in line with refined strategic objectives. New contracts and contract extensions are central to the business' organic growth strategy, and the Company expects North American Mining to be a substantial contributor to operating profit over time.
Mitigation Resources, which provides stream and wetland mitigation solutions as well as comprehensive reclamation and restoration construction services, continues to build on the substantial foundation it has established over the past several years. This business offers an opportunity for growth and diversification in an industry where the Company has substantial knowledge and expertise and a strong reputation. It currently has ten mitigation banks and four permittee-responsible mitigation projects located in
NACCO 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. NACCO established ReGen Resources to utilize these skills to address the rapidly increasing demand for additional power generation sources in
NACCO is committed to maintaining a conservative capital structure as it continues to grow and diversify, while avoiding unnecessary risk. The Company believes 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.
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Conference Call
In conjunction with this news release, the management of NACCO Industries will host a conference call on Thursday, August 1, 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: 45083, 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 August 8, 2024. An archive of the webcast will also be available on the Company's website approximately 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
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 rules finalized in 2024 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.
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NACCO INDUSTRIES, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
THREE MONTHS ENDED | SIX MONTHS ENDED | ||||||
JUNE 30 | JUNE 30 | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(In thousands, except per share data) | |||||||
Revenues | $ 52,345 | $ 61,350 | $ 105,634 | $ 111,491 | |||
Cost of sales | 45,327 | 54,943 | 91,598 | 101,727 | |||
Gross profit | 7,018 | 6,407 | 14,036 | 9,764 | |||
Earnings of unconsolidated operations | 13,592 | 11,084 | 26,899 | 24,908 | |||
Operating expenses | |||||||
Selling, general and administrative expenses | 17,720 | 14,746 | 33,173 | 29,622 | |||
Amortization of intangible assets | 116 | 927 | 242 | 1,654 | |||
(Gain) loss on sale of assets
| (4,592) | 68 | (4,603) | (168) | |||
13,244 | 15,741 | 28,812 | 31,108 | ||||
Operating profit | 7,366 | 1,750 | 12,123 | 3,564 | |||
Other expense (income) | |||||||
Interest expense | 1,311 | 572 | 2,422 | 1,117 | |||
Interest income | (1,038) | (1,714) | (2,165) | (2,869) | |||
Closed mine obligations | 471 | 433 | 926 | 842 | |||
Loss (gain) on equity securities | 264 | (421) | (777) | (1,049) | |||
Other, net | 130 | (377) | (84) | (2,102) | |||
1,138 | (1,507) | 322 | (4,061) | ||||
Income before income tax provision (benefit) | 6,228 | 3,257 | 11,801 | 7,625 | |||
Income tax provision (benefit) | 256 | 737 | 1,259 | (587) | |||
Net income | $ 5,972 | $ 2,520 | $ 10,542 | $ 8,212 | |||
Earnings per share: | |||||||
Basic earnings per share | $ 0.81 | $ 0.34 | $ 1.42 | $ 1.10 | |||
Diluted earnings per share | $ 0.81 | $ 0.34 | $ 1.42 | $ 1.09 | |||
Basic weighted average shares outstanding | 7,394 | 7,513 | 7,419 | 7,465 | |||
Diluted weighted average shares outstanding | 7,394 | 7,513 | 7,437 | 7,515 |
CONSOLIDATED EBITDA RECONCILIATION (UNAUDITED) | |||||||
THREE MONTHS ENDED | SIX MONTHS ENDED | ||||||
JUNE 30 | JUNE 30 | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(in thousands) | |||||||
Net income | $ 5,972 | $ 2,520 | $ 10,542 | $ 8,212 | |||
Income tax provision (benefit) | 256 | 737 | 1,259 | (587) | |||
Interest expense | 1,311 | 572 | 2,422 | 1,117 | |||
Interest income | (1,038) | (1,714) | (2,165) | (2,869) | |||
Depreciation, depletion and amortization expense | 7,007 | 7,090 | 12,699 | 14,109 | |||
EBITDA* | $ 13,508 | $ 9,205 | $ 24,757 | $ 19,982 |
*EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for GAAP measures. NACCO defines EBITDA as net income (loss) before income taxes, net interest expense and depreciation, depletion and amortization expense. EBITDA is not a measure under |
NACCO INDUSTRIES, INC. AND SUBSIDIARIES FINANCIAL SEGMENT HIGHLIGHTS AND SEGMENT ADJUSTED EBITDA RECONCILIATIONS (UNAUDITED) | |||||||||||
Three Months Ended June 30, 2024 | |||||||||||
Coal Mining | North | Minerals | Unallocated | Eliminations | Total | ||||||
(In thousands) | |||||||||||
Revenues | $ 14,996 | $ 27,920 | $ 5,593 | $ 4,566 | $ (730) | $ 52,345 | |||||
Cost of sales | 16,138 | 24,254 | 1,501 | 4,167 | (733) | 45,327 | |||||
Gross profit (loss) | (1,142) | 3,666 | 4,092 | 399 | 3 | 7,018 | |||||
Earnings of unconsolidated operations | 12,006 | 1,448 | 138 | — | — | 13,592 | |||||
(Gain) loss on sale of assets | (79) | (1) | (4,512) | — | — | (4,592) | |||||
Operating expenses* | 8,176 | 2,030 | 1,151 | 6,479 | — | 17,836 | |||||
Operating profit (loss) | $ 2,767 | $ 3,085 | $ 7,591 | $ (6,080) | $ 3 | $ 7,366 | |||||
Segment Adjusted EBITDA** | |||||||||||
Operating profit (loss) | $ 2,767 | $ 3,085 | $ 7,591 | $ (6,080) | $ 3 | $ 7,366 | |||||
Depreciation, depletion and amortization | 2,896 | 2,434 | 1,323 | 354 | — | 7,007 | |||||
Segment Adjusted EBITDA** | $ 5,663 | $ 5,519 | $ 8,914 | $ (5,726) | $ 3 | $ 14,373 | |||||
Three Months Ended June 30, 2023 | |||||||||||
Coal Mining | North | Minerals | Unallocated | Eliminations | Total | ||||||
(In thousands) | |||||||||||
Revenues | $ 26,343 | $ 21,716 | $ 9,171 | $ 4,628 | $ (508) | $ 61,350 | |||||
Cost of sales | 33,269 | 18,884 | 910 | 2,375 | (495) | 54,943 | |||||
Gross profit (loss) | (6,926) | 2,832 | 8,261 | 2,253 | (13) | 6,407 | |||||
Earnings of unconsolidated operations | 9,962 | 1,122 | — | — | — | 11,084 | |||||
(Gain) loss on sale of assets | 68 | — | — | — | — | 68 | |||||
Operating expenses* | 7,643 | 1,740 | 972 | 5,318 | — | 15,673 | |||||
Operating profit (loss) | $ (4,675) | $ 2,214 | $ 7,289 | $ (3,065) | $ (13) | $ 1,750 | |||||
Segment Adjusted EBITDA** | |||||||||||
Operating profit (loss) | $ (4,675) | $ 2,214 | $ 7,289 | $ (3,065) | $ (13) | $ 1,750 | |||||
Depreciation, depletion and amortization | 4,348 | 1,855 | 749 | 138 | — | 7,090 | |||||
Segment Adjusted EBITDA** | $ (327) | $ 4,069 | $ 8,038 | $ (2,927) | $ (13) | $ 8,840 |
*Operating expenses consist of Selling, general and administrative expenses and Amortization of intangible 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) plus depreciation, depletion and amortization expense. Segment Adjusted EBITDA is not a measure under |
NACCO INDUSTRIES, INC. AND SUBSIDIARIES FINANCIAL SEGMENT HIGHLIGHTS AND SEGMENT ADJUSTED EBITDA RECONCILIATIONS (UNAUDITED) | |||||||||||
Six Months Ended June 30, 2024 | |||||||||||
Coal Mining | North | Minerals | Unallocated | Eliminations | Total | ||||||
(In thousands) | |||||||||||
Revenues | $ 30,541 | $ 52,403 | $ 15,994 | $ 7,828 | $ (1,132) | $ 105,634 | |||||
Cost of sales | 37,081 | 45,925 | 2,865 | 6,879 | (1,152) | 91,598 | |||||
Gross profit (loss) | (6,540) | 6,478 | 13,129 | 949 | 20 | 14,036 | |||||
Earnings of unconsolidated operations | 24,013 | 2,813 | 73 | — | — | 26,899 | |||||
(Gain) loss on sale of assets | (89) | (2) | (4,512) | — | — | (4,603) | |||||
Operating expenses* | 15,212 | 3,853 | 2,193 | 12,157 | — | 33,415 | |||||
Operating profit (loss) | $ 2,350 | $ 5,440 | $ 15,521 | $ (11,208) | $ 20 | $ 12,123 | |||||
Segment Adjusted EBITDA** | |||||||||||
Operating profit (loss) | $ 2,350 | $ 5,440 | $ 15,521 | $ (11,208) | $ 20 | $ 12,123 | |||||
Depreciation, depletion and amortization | 5,110 | 4,690 | 2,316 | 583 | — | 12,699 | |||||
Segment Adjusted EBITDA** | $ 7,460 | $ 10,130 | $ 17,837 | $ (10,625) | $ 20 | $ 24,822 | |||||
Six Months Ended June 30, 2023 | |||||||||||
Coal Mining | North | Minerals | Unallocated | Eliminations | Total | ||||||
(In thousands) | |||||||||||
Revenues | $ 46,996 | $ 42,349 | $ 17,456 | $ 5,819 | $ (1,129) | $ 111,491 | |||||
Cost of sales | 59,147 | 38,125 | 1,962 | 3,589 | (1,096) | 101,727 | |||||
Gross profit (loss) | (12,151) | 4,224 | 15,494 | 2,230 | (33) | 9,764 | |||||
Earnings of unconsolidated operations | 22,428 | 2,480 | — | — | — | 24,908 | |||||
(Gain) loss on sale of assets | (168) | — | — | — | — | (168) | |||||
Operating expenses* | 14,807 | 3,660 | 2,161 | 10,648 | — | 31,276 | |||||
Operating profit (loss) | $ (4,362) | $ 3,044 | $ 13,333 | $ (8,418) | $ (33) | $ 3,564 | |||||
Segment Adjusted EBITDA** | |||||||||||
Operating profit (loss) | $ (4,362) | $ 3,044 | $ 13,333 | $ (8,418) | $ (33) | $ 3,564 | |||||
Depreciation, depletion and amortization | 8,588 | 3,741 | 1,560 | 220 | — | 14,109 | |||||
Segment Adjusted EBITDA** | $ 4,226 | $ 6,785 | $ 14,893 | $ (8,198) | $ (33) | $ 17,673 |
*Operating expenses consist of Selling, general and administrative expenses and Amortization of intangible 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) plus depreciation, depletion and amortization expense. Segment Adjusted EBITDA is not a measure under |
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SOURCE NACCO Industries
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