First Quarter 2023 NACCO Consolidated Highlights:
- Consolidated operating profit decreased to $1.8 million from $14.9
million in Q1 2022 mainly due to lower earnings at the Coal
Mining and Minerals Management segments
- Consolidated net income decreased to $5.7 million, or $0.76/share, versus $12.6
million, or $1.72/share, in Q1
2022
- EBITDA decreased to $10.8
million from $21.4 million in
Q1 2022
CLEVELAND, May 3, 2023
/PRNewswire/ -- NACCO Industries® (NYSE: NC) today
announced the following consolidated results for the three months
ended March 31, 2023. Comparisons in
this news release are to the three months ended March 31, 2022, unless otherwise noted.
|
Three Months
Ended
|
($ in thousands
except per share amounts)
|
3/31/23
|
|
3/31/22
|
|
%
Change
|
|
Operating
Profit
|
$1,814
|
|
$14,944
|
|
(87.9) %
|
|
Other (income) expense,
net
|
$(2,554)
|
|
$—
|
|
n.m.
|
|
Income tax provision
(benefit)
|
$(1,324)
|
|
$2,362
|
|
n.m.
|
|
Net Income
|
$5,692
|
|
$12,582
|
|
(54.8) %
|
|
Diluted
Earnings/share
|
$0.76
|
|
$1.72
|
|
(55.8) %
|
|
EBITDA*
|
$10,777
|
|
$21,439
|
|
(49.7) %
|
|
|
*Non-GAAP financial
measures are defined and reconciled on pages 9 and 10.
|
The substantial decreases in the Company's 2023 first-quarter
consolidated operating profit, net income and EBITDA compared with
the first quarter of 2022 were primarily due to a significant
decrease in earnings in the Coal Mining and Minerals Management
segments. These decreases were partly offset by significantly lower
income tax expense, $1.2 million of
other income received in the 2023 first quarter from a post-closing
purchase price adjustment related to the Company's transfer of its
ownership interests in Midwest Ag Energy in late 2022 and higher
interest income.
At March 31, 2023, the Company had consolidated cash of
$109.6 million and debt of
$20.4 million with availability of
$117.0 million under its $150.0 million revolving credit facility. The
Company believes that maintaining a conservative capital structure
and adequate liquidity are important given evolving trends in
energy markets and the Company's strategic initiatives to grow and
diversify, which are discussed further in the Growth and
Diversification section of this release.
Detailed Discussion of Results
Coal
Mining Results
Coal deliveries for the first quarter of 2023 and 2022 were as
follows:
|
2023
|
|
2022
|
|
Tons of coal
delivered
|
(in
thousands)
|
|
Unconsolidated operations
|
6,192
|
|
6,317
|
|
Consolidated operations
|
711
|
|
732
|
|
Total deliveries
|
6,903
|
|
7,049
|
|
|
|
|
Key financial results for the first quarter of 2023 and
2022 were as follows:
|
2023
|
|
2022
|
|
(in
thousands)
|
Revenues
|
$
20,653
|
|
$
20,962
|
Gross profit
(loss)
|
$
(5,225)
|
|
$
2,112
|
Earnings of
unconsolidated operations
|
$
12,466
|
|
$
13,326
|
Operating
expenses(1)
|
$
6,928
|
|
$
8,086
|
Operating
profit
|
$
313
|
|
$
7,352
|
Segment Adjusted
EBITDA(2)
|
$
4,553
|
|
$
11,390
|
|
(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 10.
|
Coal Mining operating profit and Segment Adjusted EBITDA
decreased significantly in the first quarter of 2023 compared with
2022, primarily due to a substantial decrease in Mississippi
Lignite Mining Company results. In addition, lower earnings at the
unconsolidated operations were partly offset by a decrease in
operating expense due to lower professional services
fees.
Results decreased at Mississippi Lignite Mining Company due to a
significant increase in the cost per ton sold attributable to costs
incurred to establish a new mine area, adverse mining conditions
caused by inclement weather and operational inefficiencies related
to final mining activities at the existing mine area. A
$2.4 million write down of inventory
to net realizable value also contributed to the significant
increase in the cost per ton.
The lower earnings of unconsolidated operations was mainly due
to a reduction in the per ton management fee at the Falkirk Mine
effective May 2022 through
May 2024 to support the transition of
the Coal Creek Station Power Plant to Rainbow Energy. This decrease
in earnings of unconsolidated operations was partly offset by
improved results at Coteau and Sabine.
Coal Mining Outlook
In 2023, the Company expects coal deliveries to decrease
moderately from 2022 levels. The owner of the power plant served by
the Company's Sabine Mine in Texas
retired the Pirkey power plant in March
2023, and as a result Sabine ceased deliveries in
March 2023. The cessation of these
deliveries is the primary driver for the year-over-year
decline.
Coal Mining operating profit and Segment Adjusted EBITDA for the
2023 full year are expected to decrease significantly
year-over-year, including and excluding the $14.0 million termination payment received from
Falkirk's former customer, Great River Energy, in 2022. The decline
is primarily the result of an expected significant reduction in
earnings at the consolidated operations and an anticipated moderate
decrease in earnings of unconsolidated operations.
Results at the consolidated mining operations are projected to
decrease significantly in 2023 versus 2022. The decrease is mainly
due to an expected substantial decline in earnings at Mississippi
Lignite Mining Company from increased costs associated with
establishing operations in a new mine area, as well as higher
depreciation expense related to recent capital expenditures to
develop this new mine area. The anticipated ongoing inefficiencies
of this project are expected to continue through the third quarter
of 2023, and then moderate in the fourth quarter of 2023 and into
2024. Mississippi Lignite Mining Company does not anticipate
opening additional mine areas through the remaining contract term.
As a result, mine development capital expenditures should moderate
from 2024 through 2032. While increased depreciation from capital
expenditures related to the new mine area will affect future
results, the Company anticipates Mississippi Lignite Mining Company
should contribute favorably to Segment Adjusted EBITDA in future
years. In 2023, capital expenditures are expected to be
approximately $12 million, primarily
for mine development and equipment replacement.
The anticipated lower earnings at the unconsolidated coal mining
operations is expected to be driven primarily by temporary price
concessions at Falkirk through May
2024. This will result in a reduction in the per ton
management fee for 12 months in 2023 compared with eight months in
2022. The early retirement of the Pirkey power plant and
commencement of final reclamation of the Sabine Mine started on
April 1, 2023 will also contribute to
the reduction in earnings. Sabine will receive compensation for
providing final mine reclamation services, but at a lower rate than
during active mining. Funding for Sabine's mine reclamation is the
responsibility of the customer.
The Company's contract structure at each of its coal mining
operations eliminates exposure to spot coal market price
fluctuations. However, fluctuations in natural gas prices and the
availability of renewable power generation, particularly wind, can
contribute to changes in power plant dispatch and customer demand
for coal. Changes to customer power plant dispatch would affect the
Company's outlook for 2023, as well as over the longer term.
North American Mining Results
Deliveries for the first quarter of 2023 and 2022
were as follows:
|
2023
|
|
2022
|
|
(in
thousands)
|
Tons
delivered
|
14,829
|
|
13,962
|
Key financial results for the first quarter of 2023 and
2022 were as follows:
|
2023
|
|
2022
|
|
(in
thousands)
|
Revenues
|
$
20,633
|
|
$
21,404
|
Operating
profit
|
$
830
|
|
$
1,271
|
Segment Adjusted
EBITDA(1)
|
$
2,716
|
|
$
2,738
|
|
(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 10.
|
First-quarter 2023 revenues and operating profit at North
American Mining decreased compared with 2022 despite an increase in
tons delivered, primarily due to a decline in final mine
reclamation activities at Caddo Creek. The decrease in results at
Caddo Creek was partially offset by increased customer requirements
and earnings at the aggregates operations.
North American Mining Outlook
Despite an expected continuation of improved results at the
aggregates operations for the remaining quarters of 2023, operating
profit at North American Mining is expected to decrease moderately
in full-year 2023 compared with 2022. The decrease is due to the
substantial completion of income-generating mine reclamation
activities at Caddo Creek in mid-2022. Segment Adjusted EBITDA is
expected to improve over 2022 because of a significant increase in
depreciation expense. The increased depreciation expense is driven
by elevated historical capital expenditures to support North
American Mining's growth initiatives.
A number of initiatives are underway or in the planning stages
that are expected to support improved future financial results at
North American Mining's mining operations. Until profit improves at
existing operations, North American Mining has narrowed its
business development efforts.
In 2023, North American Mining capital expenditures are expected
to be approximately $37 million
primarily for the acquisition of equipment to support the Thacker
Pass lithium project.
Minerals Management Results
Key financial results for the first quarter of
2023 and 2022 were as follows:
|
2023
|
|
2022
|
|
(in
thousands)
|
Revenues
|
$
8,285
|
|
$
12,754
|
Operating
profit
|
$
6,044
|
|
$
11,628
|
Segment Adjusted
EBITDA(1)
|
$
6,855
|
|
$
12,206
|
|
(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 10.
|
Minerals Management revenue, operating profit and Segment
Adjusted EBITDA decreased significantly from the 2022 first quarter
due to a decline in natural gas and oil prices from very high
levels in 2022 and lower volumes as existing wells followed their
natural production decline. First-quarter 2022 also included
$2.1 million of settlement income
that did not recur in 2023.
Minerals Management Outlook
The Minerals Management segment derives income from
royalty-based leases under which lessees make payments to the
Company based on their sale of natural gas, oil, natural gas
liquids and coal, extracted primarily by third parties. Changing
prices of natural gas and oil have a significant impact on Minerals
Management's operating profit.
In 2023, operating profit and Segment Adjusted EBITDA are
expected to decrease significantly compared with 2022. This
decrease is primarily driven by current market expectations for
natural gas and oil prices, an anticipated reduction in volumes as
existing wells follow their natural production decline and modest
expectations for development of new wells by third-party
exploration and production companies.
Based on market expectations, the Company's forecast assumes oil
and gas market prices will continue to moderate in 2023 to levels
in line with 2021 averages; however, commodity prices are
inherently volatile. An increase in natural gas and oil prices
above current expectations could result in improvements to the 2023
forecast.
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 could be accretive to
future results.
In 2023, Minerals Management expects capital expenditures of
approximately $21 million, which
includes up to $20 million of
additional investments in mineral and royalty interests. Future
investments are expected to be accretive, but each investment's
contribution to near-term earnings is dependent on the details of
that investment, including the size and type of interests acquired
and the stage and timing of mineral development.
Consolidated Outlook
Management continues to view the long-term business outlook for
NACCO positively, despite an expected significant decrease in 2023
consolidated net income versus 2022 in part because 2022 included
$30.9 million of pre-tax contract
settlement income. Excluding the contract termination settlement
income recognized in the 2022 second quarter, net income in the
first half of 2023 is still expected to be significantly lower than
the first half of 2022. The decrease is primarily driven by an
expected significant reduction in earnings at the Minerals
Management and Coal Mining segments. At Minerals Management, the
decrease in the first half of 2023 is primarily driven by an
expected significant reduction in commodity prices from
historically high price levels in the first half of 2022. At the
Coal Mining segment, increased costs associated with establishing
operations in a new mine area as well as an anticipated reduction
in inventory levels during the first half of 2023 will result in a
higher cost per ton that will reduce earnings at Mississippi
Lignite Mining Company. In addition, a reduction in earnings from
the unconsolidated mines, primarily Falkirk, is expected to
contribute to the decrease. These reductions are expected to be
partially offset by lower income tax expense. The Company expects a
negative effective income tax rate between 30% and 35% in 2023.
Mitigation Resources of North
America® continued to build on the substantial
foundation established over the past several years and ended the
2023 first quarter with eight mitigation banks and four
permittee-responsible mitigation projects located in Tennessee, Mississippi, Alabama and Texas. Mitigation Resources was recently named
a designated provider of abandoned mine land restoration by the
State of Texas. It plans to
provide ecological restoration services for abandoned surface mines
as well as pursue additional environmental restoration projects
during 2023.
In 2023, the Company expects capital expenditures of
approximately $72 million, which
includes up to $20 million of
investments at Minerals Management. Future investments at Minerals
Management are expected to continue to align with the Company's
strategy and objectives to establish a blended portfolio of mineral
and royalty interests. As a result of the forecasted capital
expenditures and anticipated substantial decrease in net income,
cash flow before financing activities in 2023 is expected to be
positive but decline significantly from 2022.
Long-term Growth and Diversification
Outlook
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 North America® business,
opportunities for growth remain strong. Acquisitions of additional
mineral interests, an improvement in the 2024 outlook for the
Company's largest Coal Mining segment customers and securing
contracts for Mitigation Resources and new North American Mining
projects could be accretive to the Company's outlook.
The Minerals Management segment continues to pursue acquisitions
of mineral and royalty interests in the
United States. The Minerals Management segment expects to
benefit from the continued development of its mineral properties
without additional capital investment, as development costs are
borne entirely by third-party exploration and development companies
who lease the minerals. This business model can deliver higher
average operating margins over the life of a reserve than
traditional oil and gas companies that bear the cost of
exploration, production and/or development. Catapult Mineral
Partners, the Company's business unit focused on managing and
expanding the Company's portfolio of oil and gas mineral and
royalty interests, has developed a strong network to source and
secure new acquisitions. The goal is to construct a high-quality
diversified portfolio of oil and gas mineral and royalty interests
in the United States that delivers
near-term cash flow yields and long-term projected growth. The
Company believes this business will provide unlevered after-tax
returns on invested capital in the mid-teens as this business model
matures.
The Company remains committed to expanding the North American
Mining business while improving profitability. North American
Mining intends to be a substantial contributor to operating profit
over time. The pace of achieving that objective will be dependent
on the execution and successful implementation of profit
improvement initiatives in the aggregates operations, and the mix
and scale of new projects. The Sawtooth Mining lithium project is
expected to contribute more significantly when production commences
at Thacker Pass.
Sawtooth Mining has a mining services agreement to serve as the
exclusive contract miner for the Thacker Pass lithium project in
northern Nevada, owned by Lithium
Nevada Corp., a subsidiary of Lithium Americas Corp. (TSX: LAC)
(NYSE: LAC). Lithium Americas owns the lithium reserves at Thacker
Pass. On March 2, 2023, Lithium
Americas announced that construction has commenced. Phase 1
production is projected to begin in the second half of 2026.
Sawtooth Mining plans to begin acquiring equipment for this project
in 2023. Under the terms of the contract mining agreement, Lithium
Americas will reimburse Sawtooth for these capital expenditures
over a five-year period from the equipment acquisition date.
Sawtooth will be reimbursed for all costs of mine construction plus
a construction fee. The Company expects to recognize moderate
income in 2024 and 2025 prior to commencement of production in
2026. Once production commences, Sawtooth will receive a management
fee per metric ton of lithium delivered. At maturity, this contract
is expected to deliver fee income similar to a mid-sized management
fee coal mine.
Mitigation Resources continues to expand its business, which
creates and sells stream and wetland mitigation credits and
provides services to those engaged in permittee-responsible
mitigation as well as 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 United States. The
Company believes that Mitigation Resources can provide solid rates
of return as this business matures.
The Company also continues to pursue activities which can
strengthen the resiliency of its existing coal mining operations.
The Company remains focused on managing coal production costs and
maximizing efficiencies and operating capacity at mine locations to
help customers with management fee contracts be more competitive.
These activities benefit both customers and the Company's Coal
Mining segment, as fuel cost is a significant driver for power
plant dispatch. Increased power plant dispatch results in increased
demand for coal by the Coal Mining segment's customers. Fluctuating
natural gas prices and availability of renewable energy sources,
such as wind and solar, could affect the amount of electricity
dispatched from coal-fired power plants. 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 will be an essential part of the energy
mix in the United States for the
foreseeable future. Subsequent to 2023, the Coal Mining segment
expects increased profitability compared with 2023 expectations due
in part to improvements at Falkirk and Mississippi Lignite Mining
Company. At Falkirk, the temporary price concessions end in
June 2024. At Mississippi Lignite
Mining Company, the move to a new mine area will be completed
during 2023, and as a result, cost per ton delivered in 2024 is
expected to moderate. In addition, certain costs incurred at
Mississippi Lignite Mining Company in 2023 will be passed through
to the customer and included in revenues in 2024.
The Company continues to look for ways to create additional
value by utilizing its core mining competencies which include
reclamation and permitting. One such way the Company may be able to
utilize these skills is 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.
During the first quarter of 2023, the Company acquired 100% of the
membership interests in the Marshall Mine, where Caddo Creek had
been performing mine reclamation work. The Company is considering
development of a utility-scale solar project at this location.
The Company is committed to maintaining a conservative capital
structure as it continues to grow and diversify, while avoiding
unnecessary risk. Strategic diversification will generate cash that
can be re-invested to strengthen and expand the businesses. The
Company also continues to maintain the highest levels of customer
service and operational excellence with an unwavering focus on
safety and environmental stewardship.
****
Conference Call
In conjunction with this news release, the management of NACCO
Industries will host a conference call on Thursday, May 4, 2023 at 8:30 a.m. Eastern Time. To participate in the
live call, please register more than 15 minutes in advance at
https://www.netroadshow.com/events/login?show=7e485d59&confId=48924 to
obtain the dial-in information and conference call access codes.
For those not planning to ask a question of management, the Company
recommends listening to the call via the online webcast, which can
be accessed through the NACCO Industries' website at
ir.nacco.com/home. Please allow 15 minutes to register, download
and install any necessary audio software required to listen to the
webcast. A replay of the call will be available shortly after the
call ends through May 11, 2023. An
archive of the webcast will also be available on the Company's
website two hours after the live call ends.
Non-GAAP and Other Measures
This release contains non-GAAP financial measures within the
meaning of Regulation G promulgated by the Securities and
Exchange Commission. Included in this release are reconciliations
of these non-GAAP financial measures to the most directly
comparable financial measures calculated in accordance with U.S.
generally accepted accounting principles ("GAAP"). EBITDA and
Segment Adjusted EBITDA are provided solely as supplemental
non-GAAP disclosures of operating results. Management believes that
EBITDA and Segment Adjusted EBITDA assist investors in
understanding the results of operations of NACCO Industries. In
addition, management evaluates results using these non-GAAP
measures.
Forward-looking Statements Disclaimer
The statements contained in this news release that are not
historical facts are "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. These forward-looking
statements are made subject to certain risks and uncertainties,
which could cause actual results to differ materially from those
presented. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
hereof. The Company undertakes no obligation to publicly revise
these forward-looking statements to reflect events or circumstances
that arise after the date hereof. Among the factors that could
cause plans, actions and results to differ materially from current
expectations are, without limitation: (1) changes to or termination
of customer or other third-party contracts, or a customer or other
third party default under a contract, (2) any customer's premature
facility closure, (3) a significant reduction in purchases by the
Company's customers, including as a result of changes in coal
consumption patterns of U.S. electric power generators, or changes
in the power industry that would affect demand for the Company's
coal and other mineral reserves, (4) changes in the prices of
hydrocarbons, particularly diesel fuel, natural gas, natural gas
liquids and oil, (5) failure or delays by the Company's lessees in
achieving expected production of natural gas and other
hydrocarbons; the availability and cost of transportation and
processing services in the areas where the Company's oil and gas
reserves are located; federal and state legislative and regulatory
initiatives relating to hydraulic fracturing; and the ability of
lessees to obtain capital or financing needed for well-development
operations and leasing and development of oil and gas reserves on
federal lands, (6) failure to obtain adequate insurance coverages
at reasonable rates, (7) supply chain disruptions, including price
increases and shortages of parts and materials, (8) changes in tax
laws or regulatory requirements, including the elimination of, or
reduction in, the percentage depletion tax deduction, changes in
mining or power plant emission regulations and health, safety or
environmental legislation, (9) the ability of the Company to access
credit in the current economic environment, or obtain financing at
reasonable rates, or at all, and to maintain surety bonds for mine
reclamation as a result of current market sentiment for fossil
fuels, (10) impairment charges, (11) the effects of investors' and
other stakeholders' increasing attention to environmental, social
and governance matters, (12) changes in costs related to geological
and geotechnical conditions, repairs and maintenance, new equipment
and replacement parts, fuel or other similar items, (13) regulatory
actions, changes in mining permit requirements or delays in
obtaining mining permits that could affect deliveries to customers,
(14) weather conditions, extended power plant outages, liquidity
events or other events that would change the level of customers'
coal or aggregates requirements, (15) weather or equipment problems
that could affect deliveries to customers, (16) changes in the
costs to reclaim mining areas, (17) costs to pursue and develop new
mining, mitigation, oil and gas and solar development opportunities
and other value-added service opportunities, (18) delays or
reductions in coal or aggregates deliveries, (19) the ability to
successfully evaluate investments and achieve intended financial
results in new business and growth initiatives, (20) disruptions
from natural or human causes, including severe weather, accidents,
fires, earthquakes and terrorist acts, any of which could result in
suspension of operations or harm to people or the environment, and
(21) the ability to attract, retain, and replace workforce and
administrative employees.
About NACCO Industries
NACCO Industries® brings natural resources to life by
delivering aggregates, minerals, reliable fuels and environmental
solutions through its robust portfolio of NACCO Natural Resources
businesses. Learn more about our companies at nacco.com, or get
investor information at ir.nacco.com.
*****
NACCO INDUSTRIES, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
THREE MONTHS
ENDED
|
|
MARCH 31
|
|
2023
|
|
2022
|
|
(In thousands, except
per share data)
|
Revenues
|
$
50,141
|
|
$
55,023
|
Cost of
sales
|
46,784
|
|
39,176
|
Gross
profit
|
3,357
|
|
15,847
|
Earnings of
unconsolidated operations
|
13,824
|
|
14,592
|
Operating
expenses
|
|
|
|
Selling, general and
administrative expenses
|
14,876
|
|
14,784
|
Amortization of
intangible assets
|
727
|
|
847
|
Gain on sale of
assets
|
(236)
|
|
(136)
|
|
15,367
|
|
15,495
|
Operating
profit
|
1,814
|
|
14,944
|
Other (income)
expense
|
|
|
|
Interest
expense
|
545
|
|
513
|
Interest
income
|
(1,155)
|
|
(145)
|
Closed mine
obligations
|
409
|
|
380
|
Gain on equity
securities
|
(628)
|
|
(518)
|
Other, net
|
(1,725)
|
|
(230)
|
|
(2,554)
|
|
—
|
Income before income
tax provision (benefit)
|
4,368
|
|
14,944
|
Income tax provision
(benefit)
|
(1,324)
|
|
2,362
|
Net
income
|
$
5,692
|
|
$
12,582
|
|
|
|
|
Earnings per
share:
|
|
|
|
Basic earnings per
share
|
$
0.77
|
|
$
1.73
|
Diluted earnings per
share
|
$
0.76
|
|
$
1.72
|
|
|
|
|
Basic weighted
average shares outstanding
|
7,428
|
|
7,253
|
Diluted weighted
average shares outstanding
|
7,515
|
|
7,321
|
|
|
|
|
EBITDA
RECONCILIATION (UNAUDITED)
|
|
THREE MONTHS
ENDED
|
|
MARCH 31
|
|
2023
|
|
2022
|
|
(in
thousands)
|
Net income
|
$
5,692
|
|
$
12,582
|
Income tax provision
(benefit)
|
(1,324)
|
|
2,362
|
Interest
expense
|
545
|
|
513
|
Interest
income
|
(1,155)
|
|
(145)
|
Depreciation, depletion
and amortization expense
|
7,019
|
|
6,127
|
Consolidated
EBITDA*
|
$
10,777
|
|
$
21,439
|
|
|
*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 before income taxes, net interest expense and depreciation,
depletion and amortization expense. EBITDA is not a measure under
U.S. GAAP and is not necessarily comparable to similarly titled
measures of other companies.
|
NACCO INDUSTRIES, INC. AND
SUBSIDIARIES
|
FINANCIAL SEGMENT
HIGHLIGHTS AND SEGMENT ADJUSTED
EBITDA RECONCILIATIONS (UNAUDITED)
|
|
|
Three Months Ended
March 31, 2023
|
|
Coal Mining
|
|
North
American
Mining
|
|
Minerals
Management
|
|
Unallocated
Items
|
|
Eliminations
|
|
Total
|
|
(In
thousands)
|
Revenues
|
$
20,653
|
|
$
20,633
|
|
$
8,285
|
|
$
1,191
|
|
$
(621)
|
|
$
50,141
|
Cost of
sales
|
25,878
|
|
19,241
|
|
1,052
|
|
1,214
|
|
(601)
|
|
46,784
|
Gross profit
(loss)
|
(5,225)
|
|
1,392
|
|
7,233
|
|
(23)
|
|
(20)
|
|
3,357
|
Earnings of
unconsolidated operations
|
12,466
|
|
1,358
|
|
—
|
|
—
|
|
—
|
|
13,824
|
Operating
expenses*
|
6,928
|
|
1,920
|
|
1,189
|
|
5,330
|
|
—
|
|
15,367
|
Operating profit
(loss)
|
$
313
|
|
$
830
|
|
$
6,044
|
|
$
(5,353)
|
|
$
(20)
|
|
$
1,814
|
Segment Adjusted
EBITDA**
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
(loss)
|
$
313
|
|
$
830
|
|
$
6,044
|
|
$
(5,353)
|
|
$
(20)
|
|
$
1,814
|
Depreciation, depletion
and amortization
|
4,240
|
|
1,886
|
|
811
|
|
82
|
|
—
|
|
7,019
|
Segment Adjusted
EBITDA**
|
$
4,553
|
|
$
2,716
|
|
$
6,855
|
|
$
(5,271)
|
|
$
(20)
|
|
$
8,833
|
|
|
Three Months Ended
March 31, 2022
|
|
Coal Mining
|
|
North
American
Mining
|
|
Minerals
Management
|
|
Unallocated
Items
|
|
Eliminations
|
|
Total
|
|
(In
thousands)
|
Revenues
|
$
20,962
|
|
$
21,404
|
|
$
12,754
|
|
$
192
|
|
$
(289)
|
|
$
55,023
|
Cost of
sales
|
18,850
|
|
19,650
|
|
748
|
|
349
|
|
(421)
|
|
39,176
|
Gross profit
(loss)
|
2,112
|
|
1,754
|
|
12,006
|
|
(157)
|
|
132
|
|
15,847
|
Earnings of
unconsolidated operations
|
13,326
|
|
1,266
|
|
—
|
|
—
|
|
—
|
|
14,592
|
Operating
expenses*
|
8,086
|
|
1,749
|
|
378
|
|
5,282
|
|
—
|
|
15,495
|
Operating profit
(loss)
|
$
7,352
|
|
$
1,271
|
|
$
11,628
|
|
$
(5,439)
|
|
$
132
|
|
$
14,944
|
Segment Adjusted
EBITDA**
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
(loss)
|
$
7,352
|
|
$
1,271
|
|
$
11,628
|
|
$
(5,439)
|
|
$
132
|
|
$
14,944
|
Depreciation, depletion
and amortization
|
4,038
|
|
1,467
|
|
578
|
|
44
|
|
—
|
|
6,127
|
Segment Adjusted
EBITDA**
|
$
11,390
|
|
$
2,738
|
|
$
12,206
|
|
$
(5,395)
|
|
$
132
|
|
$
21,071
|
|
*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) plus depreciation, depletion and
amortization expense. Segment Adjusted EBITDA is not a measure
under U.S. GAAP and is not necessarily comparable with similarly
titled measures of other companies.
|
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SOURCE NACCO Industries