Financial Data and Key Metrics Changes - Consolidated operating profit increased over 60% year-over-year, with net income rising by 7% and EBITDA increasing by 14% [5][12] - Operating profit for the first quarter of 2025 was $7,700,000 compared to $4,800,000 in the first quarter of 2024, while net income rose to $4,900,000 from $4,600,000 [12][14] - Adjusted EBITDA increased to $12,800,000 from $11,200,000 in the previous year [12][13] Business Line Data and Key Metrics Changes - The Coal Mining segment saw operating profit rise to $3,800,000 from an operating loss of $400,000 in the prior year, with segment adjusted EBITDA increasing to $5,800,000 from $1,800,000 [14] - North American Mining's operating profit decreased to $2,000,000 from $2,400,000, while segment adjusted EBITDA remained comparable at $4,700,000 [15] - Minerals Management's operating profit was stable at $7,900,000, with adjusted EBITDA increasing to $9,800,000 from $8,900,000 [16] Market Data and Key Metrics Changes - The coal mining segment's improvement was attributed to higher pricing and increased customer demand, particularly at Falkirk and Mississippi Lignite Mining Company [6][7] - North American Mining faced reduced customer demand, impacting operating profit, but is expected to improve in the second half of 2025 [8][17] Company Strategy and Development Direction - The company is optimistic about the regulatory environment for fossil fuels, with recent executive orders supporting coal and fossil fuel development [7][44] - The company is focusing on expanding its portfolio in Minerals Management and anticipates continued profitability in this segment [11][18] - The company is exploring solar initiatives, particularly on reclaimed mine land, to diversify its energy offerings [90][93] Management's Comments on Operating Environment and Future Outlook - Management views 2025 as a pivotal transition year, with expectations for moderate year-over-year increases in consolidated operating profit [12][19] - The company anticipates a return to normal operating levels at Mississippi Lignite Mining Company, although a reduction in sales price is expected to offset some improvements [17] - Management expressed confidence in the long-term growth potential of the mitigation resources business despite its current lumpiness [76] Other Important Information - The company has consolidated cash of approximately $62,000,000 and debt of $96,000,000 as of March 31, 2025 [20] - A significant noncash settlement charge is anticipated upon the termination of the defined benefit pension plan, which will impact net income [19] Q&A Session Summary Question: Can you explain the recurring inventory charges at Mississippi Lignite? - Management explained that inventory impairment is due to high-cost coal from inefficiencies and a lower adjustment in price based on a formula that considers historical indices [25][28] Question: What are the practical implications of a more favorable regulatory environment? - Management noted that the administration is focused on developing U.S. fossil fuel resources, which includes executive orders aimed at supporting coal [43][44] Question: Is there a way to track expansion in the mitigation resources business? - Management acknowledged the lack of a clear metric but confirmed that the business is growing rapidly [78][81] Question: What progress has been made on the solar initiative? - Management indicated ongoing development of solar projects, particularly on reclaimed mine land, while navigating uncertainties around tax credits [90][93]

Financial Data and Key Metrics Changes - Consolidated operating profit increased over 60% year-over-year, with net income rising by 7% and EBITDA increasing by 14% [5][12] - Operating profit for the first quarter of 2025 was $7.7 million, compared to $4.8 million in the first quarter of 2024, while net income rose to $4.9 million from $4.6 million [12][14] - Adjusted EBITDA increased to $12.8 million from $11.2 million in the previous year [12][13] Business Line Data and Key Metrics Changes - The Coal Mining segment saw operating profit rise to $3.8 million and adjusted EBITDA increase to $5.8 million, a significant improvement from an operating loss of $0.4 million and EBITDA of $1.8 million in the prior year [14] - North American Mining's operating profit decreased to $2 million from $2.4 million, while adjusted EBITDA remained comparable at $4.7 million [15] - Minerals Management's operating profit was stable at $7.9 million, with adjusted EBITDA increasing to $9.8 million from $8.9 million [16][19] Market Data and Key Metrics Changes - The coal mining segment is expected to see a modest increase in deliveries in 2025 due to improved customer demand and the absence of temporary price concessions [17] - North American Mining is projected to deliver improved results in 2025, with anticipated performance gains in the second half of the year [18] Company Strategy and Development Direction - The company is optimistic about the regulatory environment for the fossil fuel industry, with recent executive orders from the administration aimed at supporting coal and fossil fuel resources [7][40] - The company is focused on expanding its portfolio in the Minerals Management segment, with a budget of up to $20 million annually for investments [11] - The company is exploring opportunities in solar energy, particularly on reclaimed mine land, to leverage its existing assets [81][85] Management's Comments on Operating Environment and Future Outlook - Management views 2025 as a pivotal transition year, with expectations for moderate year-over-year increases in consolidated operating profit [12][20] - The company anticipates a significant improvement in the second half of 2025 due to trends in oil and natural gas prices [20] - Management expressed confidence in the profitability of the Mitigation Resources segment, which is expected to continue to grow [72] Other Important Information - The company plans to terminate its defined benefit pension plan, which will result in a significant noncash settlement charge but will eliminate future earnings volatility [20] - As of March 31, 2025, the company had consolidated cash of approximately $62 million and debt of $96 million [21] Q&A Session Summary Question: What leads to recurring inventory charges in Mississippi Lignite? - Management explained that inventory impairment is due to high-cost coal from inefficiencies and a lower adjustment in price based on a formula tied to historical indices [26][30] Question: What are the practical implications of a more favorable regulatory environment? - Management noted that the administration is focused on developing U.S. fossil fuel resources, including coal, and has signed executive orders to support this [40][41] Question: Is there seasonality in North American Mining? - Management indicated that there is little seasonality in North American Mining, with operations primarily in Florida [42] Question: What is the status of the asset held for sale? - The asset consists of draglines and a building in North Dakota, which are actively being marketed for sale [63][64] Question: How does the mitigation resources business operate? - Management described the mitigation resources business as lumpy, with periodic credit releases based on the lifecycle of mitigation banks [66][70]

Financial Performance - Revenues for the three months ended March 31, 2025, increased to $65,571,000, up 23% from $53,289,000 in the same period of 2024[9] - Gross profit for the same period rose to $9,654,000, representing a 38% increase compared to $7,018,000 in 2024[9] - Net income for Q1 2025 was $4,900,000, a 7% increase from $4,570,000 in Q1 2024[11] - Basic earnings per share increased to $0.67 in Q1 2025, compared to $0.61 in Q1 2024, reflecting a 10% growth[9] - Operating profit for Q1 2025 was $7,682,000, an increase of 61% from $4,757,000 in Q1 2024[9] - Earnings from unconsolidated operations were $15.4 million for Q1 2025, compared to $13.4 million for Q1 2024, reflecting a 14.9% increase[64] - The company reported a net income of $4,900,000 for the three months ended March 31, 2025, compared to $4,570,000 for the same period in 2024, indicating a year-over-year increase of approximately 7.2%[15] Assets and Liabilities - Total current assets decreased to $227,497,000 as of March 31, 2025, down from $264,738,000 at the end of 2024, a decline of 14%[7] - Total liabilities decreased slightly to $225,070,000 as of March 31, 2025, compared to $226,740,000 at the end of 2024[7] - Total assets as of March 31, 2025, were $634,187,000, slightly up from $631,687,000 at the end of 2024[7] - The company’s balance of total stockholders' equity increased to $409,117,000 as of March 31, 2025, up from $404,947,000 at the beginning of the year[15] Cash Flow - The company reported a net cash provided by operating activities of $5,023,000 for Q1 2025, compared to a net cash used of $(9,758,000) in Q1 2024[13] - The total decrease in cash for the period was $(10,949,000), compared to a decrease of $(23,265,000) in the same period of 2024, indicating improved cash flow management[13] - Cash and cash equivalents at the end of Q1 2025 were $61,884,000, down from $72,833,000 at the end of 2024, a decrease of 15%[13] Revenue Segments - Revenue from goods transferred at a point in time was $18.7 million for Q1 2025, compared to $15.1 million in Q1 2024, reflecting a 23.8% increase[51] - Revenue from services transferred over time rose to $46.9 million in Q1 2025, up 22.9% from $38.2 million in Q1 2024[51] - Coal Mining segment revenues increased to $19.239 million in Q1 2025 from $15.545 million in Q1 2024, representing a growth of 23.5%[69] - NAMining segment revenues rose to $31.526 million in Q1 2025, up 28.7% from $24.483 million in Q1 2024[69] Inventory and Impairments - The company recorded an inventory impairment charge of $3.0 million for Q1 2025, compared to $2.5 million in Q1 2024[54] - As of March 31, 2025, total inventories were $94.323 million, slightly down from $94.608 million at December 31, 2024[54] - The company had $13.2 million classified as assets held for sale as of March 31, 2025, down from $14.2 million at December 31, 2024[33] Investments and Future Plans - The company continues to explore opportunities in new power generation resources through its ReGen Resources segment[17] - The company is evaluating the impact of new accounting standards on financial statements, with ASU 2023-09 effective for fiscal years beginning after December 15, 2024[34][35] - The company expects to recognize $1.0 million in contract liability revenue in the remainder of 2025, with additional amounts in subsequent years[52] - Sawtooth Mining will exclusively provide mining services for the Thacker Pass lithium project, targeting initial production in late 2027[26] Stock and Dividends - Cash dividends paid during the first quarter of 2025 amounted to $1,691,000, up from $1,630,000 in the same quarter of 2024, reflecting a dividend per share increase from $0.2175 to $0.2275[15] - The stock repurchase program approved on November 7, 2023, allows for the purchase of up to $20.0 million of Class A Common stock through December 31, 2025; $0.7 million was repurchased in Q1 2025[56]

Core Insights - NACCO Industries reported a consolidated operating profit of $7.7 million for Q1 2025, a 61.5% increase from $4.8 million in Q1 2024, driven primarily by improvements in the Coal Mining segment and Mitigation Resources of North America [2][3][9] - Net income for Q1 2025 was $4.9 million, reflecting a 7.2% increase year-over-year, while diluted EPS rose to $0.66 from $0.61 [2][4][9] - The company anticipates moderate year-over-year growth in consolidated operating profit for 2025, supported by favorable macroeconomic trends and customer demand in the Coal Mining segment [19][20][32] Financial Performance - Revenues for Q1 2025 reached $65.6 million, up 23.2% from $53.3 million in Q1 2024 [2][38] - Consolidated EBITDA for Q1 2025 was $12.8 million, a 14% increase from $11.2 million in Q1 2024 [2][40] - The effective income tax rate significantly decreased in Q1 2025, contributing to the increase in net income [4] Segment Performance - Coal Mining segment revenues increased to $19.2 million in Q1 2025 from $15.5 million in Q1 2024, with operating profit rising to $3.8 million from a loss of $0.4 million [12][41] - North American Mining revenues grew by 28.8% to $31.5 million, although operating profit decreased to $2.0 million from $2.4 million due to lower delivery volumes [13][14][15][41] - Minerals Management segment revenues increased by 4.8% to $10.9 million, with operating profit slightly declining to $7.9 million [16][17][41] Liquidity and Capital Management - As of March 31, 2025, the company had consolidated cash of $61.9 million and total debt of $95.8 million, with $90.5 million available under its revolving credit facility [5] - The company paid $1.7 million in dividends and repurchased approximately 22,200 shares for $0.7 million during Q1 2025 [6] Future Outlook - The Coal Mining segment expects solid customer demand and a modest increase in deliveries in 2025, despite anticipated reductions in contractually determined sales prices [20][21] - North American Mining is projected to improve profitability over time due to new contracts and operational efficiencies [22] - The Minerals Management segment is expected to see significant improvements in the second half of 2025, driven by trends in oil and natural gas prices [24][25]

Group 1 - NACCO Industries will release its 2025 First Quarter financial results on April 30, 2025, after market close [1] - A conference call to discuss the financial results is scheduled for May 1, 2025, at 8:30 a.m. Eastern Time [1] - The conference call can be accessed via telephone or webcast, with a replay available until May 8, 2025 [1] Group 2 - NACCO Industries specializes in delivering aggregates, minerals, reliable fuels, and environmental solutions through its NACCO Natural Resources businesses [2] - Additional information about NACCO Industries can be found on its website [2]

Financial Performance - NACCO Industries reported a net income of $33.7 million for 2024, a significant recovery from a net loss of $39.6 million in 2023[17]. - Consolidated Adjusted EBITDA increased to $59.4 million in 2024, compared to $27.5 million in 2023[17]. - Consolidated Adjusted EBITDA for 2023 is reported at $27.5 million, a significant decrease from $88.2 million in 2022[70]. - Long-lived asset impairment charges for 2023 amount to $65.9 million, compared to $3.9 million in 2022[70]. Community Engagement - The company made over $971,000 in donations to support community organizations in 2024[16]. Mining and Resource Management - The coal mining segment is expected to benefit from a 2% increase in U.S. electricity consumption in 2024, with similar growth anticipated in 2025 and 2026[29]. - The North American Mining segment is expanding with new contracts set to begin production in 2026, including a lithium project that will start Phase 1 production in late 2027[36]. - The Minerals Management segment includes 198,457 gross acres and 63,919 net royalty acres, with a revenue contribution of $34.6 million in 2024[42]. - North American Coal is expected to benefit from economic trends and improved regulatory environment, with long-term contracts providing visibility into future performance[62]. - The Minerals Management segment is generating sustainable income streams, contributing to overall profitability[62]. - North American Mining is poised to generate increasing profitability from new contracts[62]. Investment and Capital Allocation - Catapult Mineral Partners has deployed approximately $90 million in capital since inception, with $70 million in acquisitions to enhance its mineral and royalty interests[46]. - The company is targeting additional investments of up to $20 million annually for acquisitions, focusing on a mix of production and undeveloped assets[47]. - The company plans to return more capital to shareholders through dividends and share repurchases as earnings expand[62]. Project Development and Future Growth - The current project portfolio totals over 2.0 gigawatts, primarily in early development stages, including solar, solar-gas, and battery hybrid projects[60]. - Mitigation Resources is anticipated to generate its first annual profit in 2025, with additional growth expected thereafter[62]. - NACCO's ecological restoration services are expanding, with new projects in Florida and Texas, expected to generate first annual profits in the near future[55]. - Initial investments in project development are expected to deliver attractive returns, with a focus on monetizing projects before construction begins[60]. - The company is considering land-lease arrangements that could generate long-term annuity revenue[60].

Financial Data and Key Metrics Changes - The company reported a fourth quarter net income of $7.6 million and a full year net income of $33.7 million, marking a significant recovery from a net loss of $44 million in the previous year [7][23] - Adjusted EBITDA for the fourth quarter increased to $9 million, a 27% rise from $7.1 million in the same quarter of 2023, while full year adjusted EBITDA surged 116% year-over-year to $59.4 million [7][24] Business Line Data and Key Metrics Changes - The Coal Mining segment saw adjusted EBITDA more than quadruple from 2023, with Mississippi Lignite Mining Company receiving $13.6 million in business interruption insurance income [10][11] - North American Mining reported a fourth quarter operating profit of $800,000, recovering from a $600,000 operating loss in the prior year, driven by reduced operating expenses [25] - Minerals Management's fourth quarter operating profit improved to $7.2 million from $2.5 million in 2023, primarily due to the absence of an impairment charge that affected the previous year's results [26] Market Data and Key Metrics Changes - The company anticipates solid customer demand in the Coal Mining segment for 2025, although a reduction in contractually determined per-ton sales price is expected to offset some improvements [29][30] - North American Mining is expected to deliver improved results in 2025, particularly in the second half of the year, based on stable customer demand [31] Company Strategy and Development Direction - The company is focused on expanding its portfolio and diversifying its operations, with a budget of up to $20 million annually for investments aimed at long-term stable cash flow generation [19] - The company is optimistic about its trajectory and believes that 2025 will be a pivotal year as legacy businesses stabilize and new ventures gain traction [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory and business prospects entering 2025, citing favorable macroeconomic trends and increasing demand for electricity [27][28] - The company is preparing to terminate its defined benefit pension plan in 2024, which is expected to eliminate future volatility from pension obligations [32] Other Important Information - The company ended the year with approximately $73 million in cash and $99.5 million in debt, with $99 million available under its revolver [34][35] - In 2024, the company paid $6.6 million in dividends and repurchased approximately 317,000 shares of its Class A Common Stock for $9.9 million [35] Q&A Session Summary Question: On the coal business, the results seem better than they initially appeared due to a $6 million inventory write-down - Management confirmed that inventory write-downs were taken, impacting the EBITDA calculation [38] Question: Is the $10 million EBITDA a reasonable baseline for next year? - Management indicated that while adjustments can be made, the sales price for the coal segment is expected to be lower next year due to contractual terms [41][42] Question: What is the outlook for MLMC volumes? - Management noted that while there were outages affecting volumes, they expect improvements moving forward [46][47] Question: How does the company view the pricing reset and inflation impacts? - Management explained that the pricing formula is complex and tied to various indices, which can lead to fluctuations [60][62] Question: Is there conservatism in the guidance for Mineral Management? - Management acknowledged a conservative approach in their projections for pricing and volume production [64] Question: What is the cash flow outlook for 2025? - Management expects working capital to be a source of cash in 2025, with favorable changes anticipated in trade receivables [105][111]

Financial Data and Key Metrics Changes - The company reported a fourth quarter net income of $7.6 million and a full year net income of $33.7 million, marking a significant recovery from a net loss of $44 million in the previous year [7][23] - Adjusted EBITDA for the fourth quarter increased to $9 million, a 27% rise from $7.1 million in the same quarter of 2023, while full year adjusted EBITDA reached $59.4 million, up 116% year-over-year [7][24] - Consolidated operating profit for the fourth quarter was $3.9 million, compared to an operating loss of $67.4 million in the prior year [23] Business Line Data and Key Metrics Changes - The Coal Mining segment saw adjusted EBITDA more than quadruple from 2023, with Mississippi Lignite Mining Company receiving $13.6 million in business interruption insurance income [10][11] - North American Mining reported a fourth quarter operating profit of $800,000, a turnaround from a $600,000 operating loss in the previous year [25] - Minerals Management's fourth quarter operating profit improved to $7.2 million from $2.5 million in 2023, primarily due to the absence of an impairment charge in the current year [26] Market Data and Key Metrics Changes - The Coal Mining segment is expected to benefit from solid customer demand in 2025, although a reduction in contractually determined per-ton sales price may offset some improvements [29][30] - North American Mining anticipates improved results in 2025, particularly in the second half of the year, based on stable customer demand [31] Company Strategy and Development Direction - The company is focused on expanding and diversifying its portfolio, with a budget of up to $20 million annually for investments aimed at long-term stable cash flow generation [19] - The company is optimistic about the future, viewing 2025 as a pivotal year for stabilizing legacy businesses and gaining traction in new ventures [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory and business prospects entering 2025, citing favorable macroeconomic trends and increasing demand for electricity [27][28] - The company is preparing for a cash-positive year in 2025, with expectations of improved operating profits despite some anticipated challenges [34][35] Other Important Information - The company ended the year with approximately $73 million in cash and $99.5 million in debt, with significant annual cash flow generation expected in the coming years [34][35] - The defined benefit pension plan termination process is expected to be completed in 2025, which will eliminate future volatility from pension obligations [32][33] Q&A Session Summary Question: On the coal business, the results seem better than they initially appeared due to a $6 million inventory write-down - Management confirmed the inventory write-downs and noted that it has been recurring over the past year, which is why it was included in the numbers [38][43] Question: What is the expected gross profit for Mississippi Lignite Mining Company (MLMC) moving forward? - Management indicated that while volumes are expected to strengthen, the contractually determined sales price is anticipated to decrease, which may affect gross profit [46][50] Question: Is there conservatism in the guidance for Mineral Management given recent gas price increases? - Management acknowledged a conservative approach in their projections regarding pricing and volume production, preferring to under-promise and over-deliver [64] Question: Are there any impacts from the hurricanes on North American Mining? - Management noted that while trends are returning to normal, there has not been a significant post-hurricane demand bump yet [72] Question: What are the economics of the dragline work versus surface mining work? - Management stated that margins are generally similar, and they seek long-term contracts that build revenue and profit streams over time [90][95]

Financial Performance - Q4 2024 operating profit was $3.9 million and net income was $7.6 million, a significant recovery from prior year losses [4]. - Q4 2024 Adjusted EBITDA increased to $9.0 million, up 26.8% from Q4 2023, while FY 2024 Adjusted EBITDA rose to $59.4 million, up 116% from 2023 [4][3]. - FY 2024 consolidated net income increased to $33.7 million, or $4.55 per share, compared to a net loss of $39.6 million, or $5.29 per share in 2023 [4]. - Revenues for Q4 2024 were $70,418,000, a 24% increase from $56,757,000 in Q4 2023 [41]. - Gross profit for the year ended December 31, 2024, was $29,756,000, compared to $14,591,000 in 2023, representing a 103% increase [41]. - Net income for Q4 2024 was $7,564,000, compared to a net loss of $43,967,000 in Q4 2023 [41]. - Consolidated Adjusted EBITDA for Q4 2024 was $8,994,000, up from $7,090,000 in Q4 2023, indicating a 27% increase [42]. - The company reported earnings per share of $1.04 for Q4 2024, compared to a loss of $5.88 per share in Q4 2023 [41]. - Segment Adjusted EBITDA for the year ended December 31, 2024, was $60,357,000, compared to $25,137,000 in 2023, indicating a significant increase of 139.5% [46]. - Operating profit for the year ended December 31, 2024, was $35,705,000, a recovery from an operating loss of $70,137,000 in 2023 [46]. - The total revenues for the year ended December 31, 2024, were $237,708,000, a decrease from $214,794,000 in 2023, representing a decline of 10.7% [46]. Segment Performance - Coal Mining segment delivered 6,133 thousand tons in 2024, with revenues of $20.4 million, and an operating profit of $2.0 million, a turnaround from a loss of $62.3 million in 2023 [8][9]. - North American Mining segment revenues grew to $34.9 million in 2024, with an operating profit of $0.8 million, compared to an operating loss of $0.6 million in 2023 [12][13]. - North American Mining executed contracts expected to deliver net present value after-tax cash flows of approximately $20 million over terms ranging from 6 to 20 years [21]. - The outlook for the Coal Mining segment customers has improved, with new contracts expected to enhance long-term growth [32]. Cash Flow and Capital Management - The company had consolidated cash of $72.8 million and total debt of $99.5 million as of December 31, 2024 [6]. - In 2024, the company paid $6.6 million in dividends and repurchased approximately 317,000 shares for $9.9 million [7]. - Consolidated capital expenditures are expected to total approximately $58 million in 2025, with significant cash flow generation anticipated [31]. - The company maintains a conservative capital structure while pursuing growth opportunities [33]. Operational Focus - The company is focused on strategic diversification to generate cash for reinvestment or distribution to investors [33]. - The company emphasizes operational excellence and environmental stewardship in its business practices [34]. - Long-lived asset impairment charges for the year ended December 31, 2024, were $0, compared to $65,887,000 in 2023, indicating a significant reduction in impairment losses [46]. - Operating expenses for the year ended December 31, 2024, totaled $70,285,000, compared to $68,614,000 in 2023, reflecting a slight increase of 2.4% [46]. Reporting and Compliance - The Annual Report on Form 10-K has been filed with the SEC, providing detailed financial information [35].

Financial Performance - Total revenue for 2024 was $237.7 million, an increase of 10.6% from $214.8 million in 2023[373] - Operating profit for 2024 was $35.7 million, compared to a loss of $70.1 million in 2023, marking a significant turnaround[373] - In 2024, NACCO Industries reported a net income of $33.741 million, a significant increase of $73.328 million compared to a net loss of $39.587 million in 2023[382] - The company recorded an income tax benefit of $0.1 million in 2024 on income before tax of $33.6 million, compared to a benefit of $24.6 million on a loss of $64.2 million in 2023[378] - Operating profit increased by $95.7 million in 2024, reaching $24.3 million, largely due to the absence of a long-lived asset impairment charge and business interruption insurance recoveries[406] Revenue Breakdown - The Coal Mining segment generated revenues of $68.6 million in 2024, down from $85.4 million in 2023, while NAMining revenues increased to $119.6 million from $90.5 million[373] - The Minerals Management segment reported revenues of $34.6 million in 2024, up from $33.0 million in 2023[373] - Total revenues for the Coal Mining segment in 2024 were $68.611 million, a decrease from $85.415 million in 2023, resulting in a gross loss of $10.764 million[404] - Total tons delivered by the North American Mining segment decreased to 54,963 in 2024 from 56,655 in 2023, while total revenues increased by 32.6% to $119.6 million[409][410] - Revenues decreased by 19.7% in 2024 compared to 2023, primarily due to reduced customer requirements at MLMC caused by a boiler issue at the Red Hills Power Plant[405] Expenses and Charges - Interest expense increased to $5.6 million in 2024 from $2.5 million in 2023 due to higher average borrowings and interest rates[374] - A non-cash impairment charge of $65.9 million was recorded in 2023 due to indicators of impairment at MLMC[367] - The company recognized a pension settlement charge of $1.8 million in 2023 related to the termination of the Combined Defined Benefit Plan[376] - The company plans to terminate its defined benefit pension plan in 2025, which is expected to lead to a significant non-cash settlement charge and a substantial year-over-year decrease in net income and EBITDA compared to 2024[432] Cash Flow and Debt - The company experienced a decrease in net cash provided by operating activities, totaling $22.289 million in 2024, down $32.201 million from $54.490 million in 2023[382] - NACCO's total debt increased to $99.514 million in 2024, up $63.558 million from $35.956 million in 2023, leading to a debt to total capitalization ratio of 20%[395] - NACCO Natural Resources amended its revolving credit facility to increase commitments to $200 million and extend maturity to September 2028, with $70 million borrowed as of December 31, 2024[386] - The average borrowing under the revolving credit facility was $27.2 million in 2024, with a weighted-average annual interest rate of 8.83%, compared to $6.2 million and 6.06% in 2023[388] Future Outlook and Plans - The company plans to spend approximately $58 million on property, plant, and equipment in 2025, with allocations of $13 million for Coal Mining, $17 million for NAMining, and $20 million for Minerals Management[393] - NACCO anticipates a modest year-over-year increase in consolidated operating profit for 2025, supported by solid customer demand in the Coal Mining segment[419] - NAMining expects to generate increasing operating profit over time, with new contracts projected to deliver approximately $20 million in net present value cash flows[422] - Mitigation Resources is expected to achieve full-year profitability starting in 2025, with plans for growth in ecological restoration services and mitigation projects[430] - Consolidated capital expenditures are projected to be approximately $58 million in 2025, with allocations of $13 million for Coal Mining, $17 million for NAMining, $20 million for Minerals Management, and $8 million for ReGen Resources and other growth businesses[433] Market Conditions - The average price of West Texas Intermediate crude oil was $76.55 in 2024, down from $77.64 in 2023, while Henry Hub natural gas prices decreased to $2.19 from $2.54[414] - The Coal Mining segment anticipates a reduction in operating profit in 2025 due to expected decreases in contractually determined per ton sales prices[421] Strategic Initiatives - The company is pursuing growth and diversification by leveraging its core natural resources management skills, with a focus on acquiring additional mineral interests and improving the outlook for its Coal Mining segment[434] - ReGen Resources was established in 2023 to develop energy projects, including solar and gas-fired generation, primarily on reclaimed mining properties[431] - The company aims to maintain a conservative capital structure while generating cash for reinvestment or distribution to investors through share repurchases or dividends[435]