CLEVELAND, March 3, 2021
/PRNewswire/ --
Fourth Quarter Highlights:
- Consolidated operating loss of $8.0
million versus operating profit of $4.6 million in Q4 2019
-
- Includes non-cash asset impairment and inventory write-down
charges of $9.8 million
pre-tax
- Includes voluntary separation program charges of
$1.8 million pre-tax
- Consolidated net loss of $5.4
million versus net income of $6.4
million in Q4 2019
- Loss per share of $0.77 versus
earnings per share of $0.91 in Q4
2019
NACCO Industries, Inc.® (NYSE: NC) today announced a
consolidated operating loss of $8.0
million and a net loss of $5.4
million, or a loss of $0.77
per share, for the fourth quarter of 2020 compared with
consolidated operating profit of $4.6
million and net income of $6.4
million, or $0.91 per share,
for the fourth quarter of 2019. The 2020 operating loss includes
non-cash asset impairment and inventory impairment charges totaling
$9.8 million pre-tax recognized in
the Company's Minerals Management and Coal Mining segments. The
2020 operating loss also includes $1.8
million of pre-tax expense associated with the Company's
voluntary separation program implemented during the fourth quarter,
with $1.5 million recognized in the
Coal Mining segment and $0.3 million
recognized in Unallocated. In addition to these charges, operating
profit declined primarily as a result of lower earnings in the Coal
Mining segment's consolidated operations.
For the year ended December 31,
2020, the Company reported consolidated net income of
$14.8 million, or $2.10 per diluted share, compared with
consolidated net income of $39.6
million, or $5.66 per diluted
share, for the year ended December 31,
2019.
For the 2020 full year, NACCO's consolidated cash flow before
financing activities was a use of cash of $48.5 million, comprised of net cash used for
operating activities of $2.5 million
plus net cash used for investing activities of $46.0 million. Net cash used for investing
included development of a new mine area at Mississippi Lignite
Mining Company, $14.2 million of
acquisitions of mineral and royalty interests at the Minerals
Management segment and the acquisition, relocation and
refurbishment of draglines at North American Mining. For the 2019
full year, NACCO generated cash flow before financing activities of
$32.5 million, comprised of net cash
provided by operating activities of $52.8
million less net cash used for investing activities of
$20.3 million.
The Company believes that a conservative capital structure and
liquidity are important given the Company's strategic initiatives
to grow and diversify, as well as changing trends in energy
markets. As discussed in more detail in the Growth and
Diversification section of this release, diversified strategic
growth is the key to enhancing net income as well as increasing
free cash flow, which can be reinvested to expand the businesses.
The Company ended 2020 with consolidated cash on hand of
$88.5 million and debt of
$46.5 million. At December 31, 2020, the Company had availability
of $117.0 million under its
$150.0 million revolving credit
facility.
Detailed
Discussion of Results Coal Mining Results
|
|
Coal deliveries for
the fourth quarter of 2020 and 2019 were as follows:
|
|
2020
|
|
2019
|
Tons of coal
delivered
|
(in
millions)
|
Unconsolidated operations
|
7.3
|
|
|
7.8
|
|
Consolidated operations
|
0.2
|
|
|
0.4
|
|
Total
deliveries
|
7.5
|
|
|
8.2
|
|
Key financial results
for the fourth quarter of 2020 and 2019 were as follows:
|
|
2020
|
|
2019
|
|
(in
thousands)
|
Revenues
|
$
|
9,192
|
|
|
$
|
10,582
|
|
Earnings of
unconsolidated operations
|
$
|
14,480
|
|
|
$
|
15,157
|
|
Operating
expenses(1)
|
$
|
11,155
|
|
|
$
|
7,511
|
|
Operating profit
(loss)
|
$
|
(421)
|
|
|
$
|
6,359
|
|
|
|
(1)
|
Operating expenses
consist of Selling, general and administrative expenses,
Amortization of intangible assets and Gain on sale of
assets.
|
Coal Mining revenues decreased in the fourth quarter of 2020
from the fourth quarter of 2019 primarily as a result of a
reduction in tons delivered at Mississippi Lignite Mining Company.
The reduction in tons delivered was due to a substantial decline in
the number of days the customer's power plant operated in 2020
compared with 2019 as a result of a combination of a reduction in
dispatch and an increase in outage days.
In the fourth quarter of 2020, the Coal Mining segment had an
operating loss of $0.4 million
compared with operating profit of $6.4
million in the fourth quarter of 2019. The 2020 operating
loss includes the following:
- a non-cash charge of $2.0 million
for the write-down of Mississippi Lignite Mining Company's coal
inventory to net realizable value,
- a $1.5 million charge for costs
associated with the Company's voluntary separation program
implemented in the fourth quarter of 2020, and
- a $1.1 million non-cash asset
impairment charge.
Excluding these charges, the Coal Mining segment's operating
profit still declined substantially from 2019.
The decrease in operating results was primarily driven by
substantially lower results at Mississippi Lignite Mining Company,
as well as additional wind-down costs at Camino Real Fuels not
covered by Camino's former customer. Higher operating expenses as a
result of changes in the timing of employee-related costs and an
increase in insurance expense and professional fees, as well as
reduced earnings of unconsolidated operations, also contributed to
the reduction in operating results. The absence of an unfavorable
adjustment to Centennial Natural Resources' mine reclamation
liability recorded in 2019 partly offset the decrease in the Coal
Mining segment's operating results.
The lower operating results at Mississippi Lignite Mining
Company are due to a reduction in tons delivered in the fourth
quarter, which contributed to an increase in the cost per ton
delivered. 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 decrease in
earnings of unconsolidated operations was primarily attributable to
the termination of the Camino Real Fuels contract mining agreement
effective July 1, 2020.
Coal Mining Outlook - 2021
In 2021, the Company expects coal deliveries to be comparable to
2020 based on current expectations of customer requirements.
Coal Mining operating profit in 2021 is expected to decrease
significantly from 2020. This decrease is primarily attributable to
substantially lower earnings expected at Mississippi Lignite Mining
Company and reduced earnings at the unconsolidated Coal Mining
operations. Mississippi Lignite Mining Company earnings are
expected to be lower as a result of an anticipated increase in the
cost per ton of coal delivered in 2021 compared with 2020, due in
part to an increase in depreciation expense associated with
development of a new mine area. The anticipated reduction in
earnings at the unconsolidated Coal Mining operations is expected
to be mainly driven by a reduction in fee-based earnings at the
Liberty Mine, as the scope of final mine reclamation activities is
reduced. Lower operating profit is expected to be partially offset
by a decrease in operating expenses primarily due to lower
employee-related costs resulting from the 2020 voluntary separation
program partially offset by higher insurance expense.
Changes in customer power plant dispatch, including changes
related to natural gas price fluctuations and the continued
increase in renewable generation, particularly wind, could reduce
customer demand below anticipated levels, which could further
unfavorably affect the Company's 2021 outlook.
In May 2020, Great River Energy
("GRE"), Falkirk Mine's customer and the Company's second largest
customer, announced its intent to retire the Coal Creek Station
power plant in the second half of 2022. GRE is willing to consider
opportunities to sell Coal Creek Station, and NACCO is actively
engaged in the exploration of options that could, if successful,
allow for transfer of ownership of the power plant to one or more
third parties, which would preserve jobs at both Coal Creek Station
and the Falkirk Mine. Falkirk Mine is the sole supplier of lignite
coal to Coal Creek Station pursuant to a long-term contract. The
terms of the contract between the Company and GRE specify that GRE
is responsible for all costs related to mine closure, including but
not limited to, final mine reclamation costs, post-retirement
medical benefits and pension costs with respect to Falkirk
employees. This closure is not expected to affect 2021 results.
The owner of the power plant served by the Company's Sabine Mine
in Texas intends to retire the
power plant in 2023. The Sabine Mine contributed approximately
$3.9 million to Earnings from
Unconsolidated Operations in 2020. The terms of the contract
between the Company and the customer specify that the customer is
responsible for all costs related to mine closure, including but
not limited to, final mine reclamation costs, post-retirement
medical benefits and pension costs with respect to Sabine
employees.
The closure of the power plants that are served by the Falkirk
and Sabine Mines would have a
material adverse effect on the future Earnings of unconsolidated
operations of the Coal Mining segment and on the long-term earnings
and cash flows of NACCO.
Capital expenditures are expected to be approximately
$27 million in 2021. The elevated
levels of capital expenditures in the Coal Mining segment from 2019
through 2021 relate to the development of a new mine area at
Mississippi Lignite Mining Company. These increased capital
expenditures will result in higher depreciation that will
unfavorably affect operating profit in future periods. Capital
expenditures for Mississippi Lignite Mining Company are expected to
return to lower levels beginning in 2022 and continue through 2032,
the end of the current contract term.
North American
Mining Results
|
|
Limestone deliveries
for the fourth quarter of 2020 and 2019 were as follows:
|
|
2020
|
|
2019
|
|
(in
millions)
|
Tons of limestone
delivered
|
11.0
|
|
|
11.0
|
|
|
|
|
|
|
|
Key financial results
for the fourth quarter of 2020 and 2019 were as follows:
|
|
|
|
2020
|
|
2019
|
|
(in
thousands)
|
Revenues
|
$
|
9,277
|
|
|
$
|
12,327
|
|
Operating
profit
|
$
|
353
|
|
|
$
|
179
|
|
North American Mining revenues decreased primarily as a result
of lower reimbursed costs under management fee contracts.
Reimbursed costs have an offsetting amount in cost of goods sold
and have no impact on operating profit. North American Mining's
fourth-quarter 2020 operating profit increased over the fourth
quarter of 2019.
North American Mining Outlook
In 2021, North American Mining expects full year operating
profit to increase moderately over 2020 with its existing customer
contracts. North American Mining is pursuing a number of growth
initiatives that if successful would be accretive to future
earnings.
Capital expenditures are expected to be approximately
$9 million for the 2021 full year
primarily for the acquisition, relocation and refurbishment of
draglines.
In 2019, North American Mining's subsidiary, Sawtooth Mining,
LLC, entered into a mining 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). In January 2021, Thacker Pass
received a Record of Decision from the U.S. Bureau of Land
Management for the Thacker Pass project following the completion of
the National Environmental Policy Act Process. This decision
represents an important milestone in the development and the
permitting of the Thacker Pass project. More permitting decisions
are expected later in 2021 with production expected to begin in the
second half of 2022.
Minerals
Management Results
|
|
Key financial results
for the fourth quarter of 2020 and 2019 were as follows:
|
|
|
|
2020
|
|
2019
|
|
(in
thousands)
|
Revenues
|
$
|
4,771
|
|
|
$
|
4,169
|
|
Operating profit
(loss)
|
$
|
(2,957)
|
|
|
$
|
3,363
|
|
Despite an increase in fourth quarter 2020 revenues, Minerals
Management reported an operating loss in 2020 compared with
operating profit in 2019. During the fourth quarter of 2020, the
Company wrote-off $6.7 million of
capitalized leasehold costs and prepaid royalties on legacy coal
reserves where prospects for development deteriorated in 2020.
Excluding the asset impairment charge, the 2020 fourth quarter
operating results increased over the 2019 fourth quarter primarily
as a result of new Ohio natural
gas wells and an increase in natural gas prices.
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 and, to a lesser extent,
oil, natural gas liquids and coal, extracted primarily by third
parties. Excluding the impact of the $6.7
million write-off taken in 2020, operating profit in the
Minerals Management segment is expected to be down
substantially in 2021 from 2020. This decrease is primarily related
to a reduction in royalty income from existing Ohio mineral and royalty assets as a result of
expected lower natural gas prices, fewer expected new wells in
Ohio, lower commodity prices and
the natural production decline that occurs early in the life of a
well. Another sustained decline in natural gas prices could
unfavorably affect the Company's outlook.
Decline rates for individual wells can vary due to factors like
well depth, well length, formation pressure and facility design. In
addition, royalty income can fluctuate favorably or unfavorably in
response to a number of factors outside of the Company's control,
including the number of wells being operated by third parties,
fluctuations in commodity prices (primarily natural gas),
fluctuations in production rates associated with operator
decisions, regulatory risks, the Company's lessees' willingness and
ability to incur well-development and other operating costs, and
changes in the availability and continuing development of
infrastructure.
In 2020, the Minerals Management segment acquired mineral and
royalty interests for approximately 65.5 thousand gross acres and
1.2 thousand net royalty acres in the Permian Basin in Texas for a total purchase price of
approximately $14.2 million. The
acquired interests 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 oil-rich basins
offering diversification from the Company's legacy mineral
interests in predominately natural gas-rich basins. Including the
2020 acquisitions, total mineral and royalty interests include
approximately 109.2 thousand gross acres and 58.1 thousand net
royalty acres. Minerals Management is targeting additional
investments in mineral and royalty interests of approximately
$10 million in 2021. These
investments are expected to be accretive to earnings, but each
investment's contribution to earnings is dependent on the
characteristics of each investment, including the size and type of
interests acquired and the stage and timing of mineral
development.
Consolidated 2021 Outlook
While the Company expects consolidated net income in 2021 to
decrease significantly from 2020, management still continues to
view the long-term business outlook positively because of a strong
pipeline of potential new projects. The COVID-19 pandemic slowed
certain business development initiatives in 2020, but the outlook
for growth in the North American Mining and Minerals Management
segments and in the Company's Mitigation Resources of North America® business remains
strong. Excluding the favorable impact of potential business
development activities, the Company expects substantially lower
pre-tax earnings as a result of lower operating profit, an
anticipated increase in interest expense and a reduction in
interest income. These lower pre-tax results are expected to be
partially offset by an increase in the benefit from income taxes
primarily due to the benefit from percentage depletion at certain
of the Company's mining operations. Pre-tax income and net income
are expected to be higher in the second half of 2021 than in the
first half of 2021, primarily due to current expectations on the
timing of customer requirements in the Coal Mining segment.
In light of ongoing regulatory, economic and public opinion
challenges facing the coal-fired power generation industry, the
Company commenced a voluntary separation program for certain
corporate employees in the 2020 fourth quarter. The program was
substantially completed by December 31,
2020. Estimated net benefits from this voluntary separation
program are expected to be between $1.5 and $2.5
million annually beginning in 2021. As a result of this
program and natural attrition, the number of headquarters employees
was reduced by approximately 25%.
The Company's cash flow before financing activities varies with
changes in customer demand, particularly in the Coal Mining
segment, as well as changes in earnings of the Minerals Management
segment, working capital changes, capital expenditures, investments
in royalty and mineral interests and changes in income taxes, as
well as other factors. Cash flow before financing activities in
2020 included a significant use of cash related to changes in
working capital, capital expenditures and the acquisition of
mineral royalty interests. The Company anticipates positive cash
flow before financing activities in 2021 but at a level still below
the cash generated in 2019. Consolidated capital expenditures are
expected to be approximately $46
million in 2021.
Significant uncertainties remain regarding the COVID-19
pandemic. The extent to which COVID-19 impacts the Company going
forward will depend on numerous factors, including but not limited
to the extent of new outbreaks, the extent to which additional
stay-at-home orders may be imposed, the nature of the government
public health guidelines and the public's adherence to those
guidelines, the success of businesses reopening fully, the timing
for proven treatments and the availability of vaccines for
COVID-19. While the Company's existing mining operations to date
have not been materially affected by the pandemic, future
developments, which are highly uncertain and unpredictable, could
significantly and rapidly cause a deterioration in the Company's
results, supply chain channels and customer demand.
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.
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. In
addition, North American Mining is pursuing opportunities to
provide comprehensive mining services to operate entire mines when
appropriate, as is the case at the new lithium project in
Nevada.
The Minerals Management segment continues its efforts to grow
and diversify by pursuing acquisitions of additional mineral and
royalty interests in the United
States, in what the Company believes is a buyer-friendly
market. Once mineral and royalty interests have been acquired, the
Minerals Management segment will benefit from the continued
development of its mineral properties without additional capital
investment. 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.
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 opportunity for growth and diversification in an industry
where the Company has substantial knowledge and expertise and a
strong reputation. The Mitigation Resources of North America business has achieved several
successes and is positioned for additional growth.
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.
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.
Low natural gas prices and growth in renewable energy sources, such
as wind and solar, are likely to continue to unfavorably affect the
amount of electricity dispatched from coal-fired power plants. 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 while it grows and diversifies without unnecessary risk,
which will allow for strategic growth and increased free cash
flow to re-invest in 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, Inc. will host a conference call on Thursday, March 4, 2021 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/3263907 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
https://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 March
11, 2021. An archive of the webcast will also be available
on the Company's website 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 free of charge by directing such requests to NACCO
Industries, Inc., 5875 Landerbrook Drive, Cleveland, Ohio 44124, Attention: Investor
Relations, by calling (440) 229-5130, or from NACCO Industries,
Inc.'s website at www.nacco.com.
Non-GAAP and Other Measures
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"). EBITDA is
provided solely as a supplemental non-GAAP disclosure of operating
results. Management believes that EBITDA assists investors in
understanding the results of operations of NACCO Industries, Inc.
In addition, management evaluates results using this non-GAAP
measure.
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 a long-term mining contract, or a customer default under a
contract, (2) the impact of the COVID-19 pandemic, (3) a
significant reduction in purchases by the Company's customers,
including 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 tax laws or regulatory requirements, including
changes in mining or power plant emission regulations and health,
safety or environmental legislation, (5) the ability of the Company
to access credit in the current economic environment, or obtain
financing at reasonable rates, or at all, as a result of current
market sentiment for fossil fuels, (6) failure to obtain adequate
insurance coverages at reasonable rates, (7) changes in costs
related to geological and geotechnical conditions, repairs and
maintenance, new equipment and replacement parts, fuel or other
similar items, (8) regulatory actions, changes in mining permit
requirements or delays in obtaining mining permits that could
affect deliveries to customers, (9) weather conditions, extended
power plant outages, liquidity events or other events that would
change the level of customers' coal or aggregates requirements,
(10) weather or equipment problems that could affect deliveries to
customers, (11) 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, (12) changes in the costs to reclaim
mining areas, (13) costs to pursue and develop new mining and
value-added service opportunities, (14) delays or reductions in
coal or aggregates deliveries, (15) changes in the prices of
hydrocarbons, particularly diesel fuel, natural gas and oil, (16)
the ability to successfully evaluate investments and achieve
intended financial results in new business and growth initiatives,
(17) the effects of receiving low sustainability scores which could
result in the exclusion of the Company's securities from
consideration by certain investment funds, and (18) 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.
About NACCO Industries, Inc.
NACCO Industries, Inc.®, through a portfolio of
mining and natural resources businesses, operates under three
business segments: Coal Mining, North American Mining and Minerals
Management. The Coal Mining segment operates surface coal mines
under long-term contracts with power generation companies and an
activated carbon producer pursuant to a service-based business
model. The North American Mining segment provides value-added
contract mining and other services for producers of aggregates,
lithium and other minerals. The Minerals Management segment
acquires and promotes the development of oil, gas and coal mineral
interests, generating income primarily from royalty-based lease
payments from third parties. In addition, the Company's Mitigation
Resources of North
America® business provides stream and wetland
mitigation solutions. For more information about NACCO Industries,
visit the Company's website at www.nacco.com.
*****
NACCO INDUSTRIES,
INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31
|
|
December
31
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(In thousands, except
per share data)
|
Revenues
|
$
|
23,138
|
|
|
$
|
26,938
|
|
|
$
|
128,432
|
|
|
$
|
140,990
|
|
Cost of
sales
|
21,910
|
|
|
24,050
|
|
|
111,463
|
|
|
109,862
|
|
Gross
profit
|
1,228
|
|
|
2,888
|
|
|
16,969
|
|
|
31,128
|
|
Earnings of
unconsolidated operations
|
15,277
|
|
|
16,032
|
|
|
60,203
|
|
|
63,883
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
16,486
|
|
|
14,001
|
|
|
53,062
|
|
|
53,783
|
|
Amortization of
intangible assets
|
269
|
|
|
371
|
|
|
2,572
|
|
|
2,614
|
|
Gain on sale of
assets
|
(22)
|
|
|
(75)
|
|
|
(269)
|
|
|
(206)
|
|
Asset impairment
charges
|
7,784
|
|
|
—
|
|
|
8,359
|
|
|
—
|
|
|
24,517
|
|
|
14,297
|
|
|
63,724
|
|
|
56,191
|
|
Operating profit
(loss)
|
(8,012)
|
|
|
4,623
|
|
|
13,448
|
|
|
38,820
|
|
Other (income)
expense
|
|
|
|
|
|
|
|
Interest
expense
|
285
|
|
|
189
|
|
|
1,354
|
|
|
872
|
|
Interest
income
|
(575)
|
|
|
(604)
|
|
|
(1,200)
|
|
|
(3,616)
|
|
Income from other
unconsolidated affiliates
|
(9)
|
|
|
(328)
|
|
|
(239)
|
|
|
(1,300)
|
|
Closed mine
obligations
|
422
|
|
|
458
|
|
|
1,641
|
|
|
1,537
|
|
Gain on equity
securities
|
(875)
|
|
|
(478)
|
|
|
(1,226)
|
|
|
(1,545)
|
|
Other, net
|
41
|
|
|
709
|
|
|
(1,140)
|
|
|
(527)
|
|
|
(711)
|
|
|
(54)
|
|
|
(810)
|
|
|
(4,579)
|
|
Income (loss)
before income tax provision (benefit)
|
(7,301)
|
|
|
4,677
|
|
|
14,258
|
|
|
43,399
|
|
Income tax provision
(benefit)
|
(1,856)
|
|
|
(1,698)
|
|
|
(535)
|
|
|
3,767
|
|
Net income
(loss)
|
$
|
(5,445)
|
|
|
$
|
6,375
|
|
|
$
|
14,793
|
|
|
$
|
39,632
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
per share:
|
|
|
|
|
|
|
|
Basic earnings
(loss) per share
|
$
|
(0.77)
|
|
|
$
|
0.91
|
|
|
$
|
2.11
|
|
|
$
|
5.68
|
|
Diluted earnings
(loss) per share
|
$
|
(0.77)
|
|
|
$
|
0.91
|
|
|
$
|
2.10
|
|
|
$
|
5.66
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
7,049
|
|
|
6,981
|
|
|
7,026
|
|
|
6,974
|
|
Diluted weighted
average shares outstanding
|
7,049
|
|
|
7,042
|
|
|
7,057
|
|
|
7,007
|
|
ADJUSTED EBITDA
RECONCILIATION (UNAUDITED)
|
|
Quarter
Ended
|
|
Trailing
12
|
|
3/31/20
|
|
6/30/20
|
|
9/30/20
|
|
12/31/20
|
|
Months
12/31/20
|
|
(in
thousands)
|
Net income
(loss)
|
$
|
6,166
|
|
|
$
|
6,050
|
|
|
$
|
8,022
|
|
|
$
|
(5,445)
|
|
|
$
|
14,793
|
|
Long-lived asset
impairment charges
|
—
|
|
|
575
|
|
|
—
|
|
|
7,784
|
|
|
8,359
|
|
Income tax provision
(benefit)
|
(70)
|
|
|
(466)
|
|
|
1,857
|
|
|
(1,856)
|
|
|
(535)
|
|
Interest
expense
|
403
|
|
|
330
|
|
|
336
|
|
|
285
|
|
|
1,354
|
|
Interest
income
|
(401)
|
|
|
(129)
|
|
|
(95)
|
|
|
(575)
|
|
|
(1,200)
|
|
Depreciation,
depletion and amortization expense
|
4,544
|
|
|
4,624
|
|
|
4,876
|
|
|
4,070
|
|
|
18,114
|
|
Adjusted EBITDA
*
|
$
|
10,642
|
|
|
$
|
10,984
|
|
|
$
|
14,996
|
|
|
$
|
4,263
|
|
|
$
|
40,885
|
|
|
|
|
|
|
|
|
|
|
|
*Adjusted EBITDA in
this press release is provided solely as a supplemental disclosure
with respect to operating results. Adjusted EBITDA does not
represent net income (loss),
as defined by U.S. GAAP, and should not be considered as a
substitute for net income (loss), or as an indicator of operating
performance. NACCO defines Adjusted EBITDA
as net income (loss) before long-lived asset impairment charges,
income tax provision (benefit), plus net interest expense and
depreciation, depletion and amortization
expense. Adjusted EBITDA is not a measurement under U.S. GAAP and
is not necessarily comparable with similarly titled measures of
other companies.
|
NACCO INDUSTRIES,
INC. AND SUBSIDIARIES FINANCIAL SEGMENT HIGHLIGHTS FOR
THE THREE MONTHS ENDED
DECEMBER 31, 2020 AND DECEMBER 31, 2019 (UNAUDITED)
|
|
|
Three Months Ended
December 31, 2020
|
|
Coal
Mining
|
|
North
American
Mining
|
|
Minerals
Management
|
|
Unallocated
Items
|
|
Eliminations
|
|
Total
|
|
(In
thousands)
|
Revenues
|
$
|
9,192
|
|
|
$
|
9,277
|
|
|
$
|
4,771
|
|
|
$
|
876
|
|
|
$
|
(978)
|
|
|
$
|
23,138
|
|
Cost of
sales
|
12,938
|
|
|
8,469
|
|
|
549
|
|
|
859
|
|
|
(905)
|
|
|
21,910
|
|
Gross profit
(loss)
|
(3,746)
|
|
|
808
|
|
|
4,222
|
|
|
17
|
|
|
(73)
|
|
|
1,228
|
|
Earnings of
unconsolidated operations
|
14,480
|
|
|
797
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,277
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
9,808
|
|
|
1,270
|
|
|
477
|
|
|
4,932
|
|
|
(1)
|
|
|
16,486
|
|
Amortization of
intangible assets
|
269
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
269
|
|
Gain on sale of
assets
|
(4)
|
|
|
(18)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(22)
|
|
Asset impairment
charge
|
1,082
|
|
|
—
|
|
|
6,702
|
|
|
—
|
|
|
—
|
|
|
7,784
|
|
|
11,155
|
|
|
1,252
|
|
|
7,179
|
|
|
4,932
|
|
|
(1)
|
|
|
24,517
|
|
Operating profit
(loss)
|
$
|
(421)
|
|
|
$
|
353
|
|
|
$
|
(2,957)
|
|
|
$
|
(4,915)
|
|
|
$
|
(72)
|
|
|
$
|
(8,012)
|
|
|
Three Months Ended
December 31, 2019
|
|
Coal
Mining
|
|
North
American
Mining
|
|
Minerals
Management
|
|
Unallocated
Items
|
|
Eliminations
|
|
Total
|
|
(In
thousands)
|
Revenues
|
$
|
10,582
|
|
|
$
|
12,327
|
|
|
$
|
4,169
|
|
|
$
|
64
|
|
|
$
|
(204)
|
|
|
$
|
26,938
|
|
Cost of
sales
|
11,869
|
|
|
11,818
|
|
|
563
|
|
|
100
|
|
|
(300)
|
|
|
24,050
|
|
Gross profit
(loss)
|
(1,287)
|
|
|
509
|
|
|
3,606
|
|
|
(36)
|
|
|
96
|
|
|
2,888
|
|
Earnings of
unconsolidated operations
|
15,157
|
|
|
875
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,032
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
7,207
|
|
|
1,213
|
|
|
243
|
|
|
5,341
|
|
|
(3)
|
|
|
14,001
|
|
Amortization of
intangible assets
|
371
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
371
|
|
Gain on sale of
assets
|
(67)
|
|
|
(8)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(75)
|
|
|
7,511
|
|
|
1,205
|
|
|
243
|
|
|
5,341
|
|
|
(3)
|
|
|
14,297
|
|
Operating profit
(loss)
|
$
|
6,359
|
|
|
$
|
179
|
|
|
$
|
3,363
|
|
|
$
|
(5,377)
|
|
|
$
|
99
|
|
|
$
|
4,623
|
|
NACCO INDUSTRIES,
INC. AND SUBSIDIARIES FINANCIAL SEGMENT HIGHLIGHTS FOR
THE YEAR ENDED DECEMBER 31, 2020 AND DECEMBER 31,
2019
|
|
|
Year Ended
December 31, 2020
|
|
Coal
Mining
|
|
North
American
Mining
|
|
Minerals
Management
|
|
Unallocated
Items
|
|
Eliminations
|
|
Total
|
|
(In
thousands)
|
Revenues
|
$
|
72,088
|
|
|
$
|
42,392
|
|
|
$
|
14,721
|
|
|
$
|
2,133
|
|
|
$
|
(2,902)
|
|
|
$
|
128,432
|
|
Cost of
sales
|
70,452
|
|
|
39,266
|
|
|
2,342
|
|
|
2,205
|
|
|
(2,802)
|
|
|
111,463
|
|
Gross profit
(loss)
|
1,636
|
|
|
3,126
|
|
|
12,379
|
|
|
(72)
|
|
|
(100)
|
|
|
16,969
|
|
Earnings of
unconsolidated operations
|
56,584
|
|
|
3,619
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60,203
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
29,134
|
|
|
5,138
|
|
|
1,609
|
|
|
17,184
|
|
|
(3)
|
|
|
53,062
|
|
Amortization of
intangible assets
|
2,572
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,572
|
|
Gain on sale of
assets
|
(4)
|
|
|
(265)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(269)
|
|
Asset impairment
charge
|
1,082
|
|
|
—
|
|
|
7,277
|
|
|
—
|
|
|
—
|
|
|
8,359
|
|
|
32,784
|
|
|
4,873
|
|
|
8,886
|
|
|
17,184
|
|
|
(3)
|
|
|
63,724
|
|
Operating profit
(loss)
|
$
|
25,436
|
|
|
$
|
1,872
|
|
|
$
|
3,493
|
|
|
$
|
(17,256)
|
|
|
$
|
(97)
|
|
|
$
|
13,448
|
|
|
Year Ended
December 31, 2019
|
|
Coal
Mining
|
|
North
American
Mining
|
|
Minerals
Management
|
|
Unallocated
Items
|
|
Eliminations
|
|
Total
|
|
(In
thousands)
|
Revenues
|
$
|
68,701
|
|
|
$
|
42,823
|
|
|
$
|
30,119
|
|
|
$
|
790
|
|
|
$
|
(1,443)
|
|
|
$
|
140,990
|
|
Cost of
sales
|
65,430
|
|
|
41,698
|
|
|
3,465
|
|
|
955
|
|
|
(1,686)
|
|
|
109,862
|
|
Gross profit
(loss)
|
3,271
|
|
|
1,125
|
|
|
26,654
|
|
|
(165)
|
|
|
243
|
|
|
31,128
|
|
Earnings of
unconsolidated operations
|
60,678
|
|
|
3,205
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
63,883
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
27,394
|
|
|
4,921
|
|
|
933
|
|
|
20,548
|
|
|
(13)
|
|
|
53,783
|
|
Amortization of
intangible assets
|
2,614
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,614
|
|
Gain on sale of
assets
|
(179)
|
|
|
(27)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(206)
|
|
|
29,829
|
|
|
4,894
|
|
|
933
|
|
|
20,548
|
|
|
(13)
|
|
|
56,191
|
|
Operating profit
(loss)
|
$
|
34,120
|
|
|
$
|
(564)
|
|
|
$
|
25,721
|
|
|
$
|
(20,713)
|
|
|
$
|
256
|
|
|
$
|
38,820
|
|
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SOURCE NACCO Industries, Inc.