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]

Core Viewpoint - NACCO Industries will release its 2024 Fourth Quarter and Full Year financial results on March 5, 2025, followed by a conference call on March 6, 2025 to discuss these results [1]. Group 1: Financial Results Announcement - The financial results for the fourth quarter and full year of 2024 will be released after market close on March 5, 2025 [1]. - A conference call is scheduled for March 6, 2025 at 8:30 a.m. Eastern Time to discuss the financial results [2]. Group 2: Conference Call Details - The conference call can be accessed via a toll-free number for North America and an international number, with a conference ID provided [2]. - A replay of the call will be available until March 13, 2025, with specific numbers for toll-free and international access [2]. - The call will also be webcast live on NACCO's Investor Relations website, with an archive available two hours after the live call ends [2]. Group 3: Company Overview - NACCO Industries focuses on delivering aggregates, minerals, reliable fuels, and environmental solutions through its portfolio of NACCO Natural Resources businesses [3].

Financial Data and Key Metrics Changes - The company reported an operating profit of $19.7 million and net income of $15.6 million, equating to $2.14 per share, compared to an operating loss of $6.3 million and a net loss of $3.8 million or a loss of $0.51 per share in the previous year [18] - EBITDA increased to $25.7 million from $400,000 in 2023, including $13.6 million of insurance recovery income [18] Business Line Data and Key Metrics Changes - Coal Mining segment reported an operating profit of $19.9 million and segment adjusted EBITDA of $22.1 million, compared to an operating loss of $4.7 million in 2023 [19] - Minerals Management's revenues increased 54% to $8.8 million, with operating profit improving to $6.2 million, up 71% from $3.6 million in the previous year [20] - North American Mining reported an operating loss of approximately $0.5 million, down from a profit of $900,000 in 2023, with segment adjusted EBITDA at $2.2 million [20] Market Data and Key Metrics Changes - North American Mining's revenue increased 24% year-over-year due to favorable pricing and delivery mix at limestone quarries, despite lower customer demand [13] - The company anticipates solid customer demand at coal mining operations in 2025, benefiting from the absence of temporary price concessions [25] Company Strategy and Development Direction - The company is optimistic about its trajectory and the performance of its business segments, including efforts to protect its coal mining business [18] - The company is expanding its operations outside Florida, with ongoing projects in Texas, Nebraska, Arkansas, and Virginia, leveraging relationships with top aggregate producers [44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's future, citing favorable macroeconomic trends and expected increases in profitability across segments [25][24] - The company is taking actions to terminate its defined benefit pension plan to eliminate future volatility from pension obligations [27] Other Important Information - The company ended the quarter with approximately $63 million in cash and $70 million in debt, and amended its revolving credit facility to increase commitments to $200 million [28] Q&A Session Summary Question: What happens when a customer is facing financial difficulties? - The response indicated that actions depend on the specific situation, including potentially pulling employees away and securing equipment [30] Question: Are you able to say how many tons that contract is? - The company noted that as it diversifies into different minerals, tonnage becomes a less meaningful statistic [31] Question: Would you expect tonnage to bounce back after the decline due to rain and customer maintenance? - Management indicated that typically, tonnage would bounce back, but hurricanes have impacted operations in Florida [33] Question: How do you categorize the businesses as consolidated and unconsolidated? - The categorization relies on control and is evaluated on a contract-by-contract basis [42] Question: Are there M&A opportunities to accelerate diversification? - The company is expanding rapidly outside Florida and has relationships with several top aggregate producers, indicating potential for growth [44]

Part I: Financial Information [Financial Statements](index=3&type=section&id=Item%201%2E%20Financial%20Statements) The company reported a significant profitability turnaround in Q3 2024, with net income of $15.6 million, driven by insurance recovery, despite a shift to net cash use from operations Consolidated Statement of Operations Highlights (Unaudited) | Financial Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) | 9 Months 2024 (in thousands) | 9 Months 2023 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $61,656 | $46,546 | $167,290 | $158,037 | | **Gross Profit (Loss)** | $7,244 | $(2,174) | $21,280 | $7,590 | | **Business Interruption Insurance Recoveries** | $13,612 | $— | $13,612 | $— | | **Operating Profit (Loss)** | $19,699 | $(6,267) | $31,822 | $(2,703) | | **Net Income (Loss)** | $15,635 | $(3,832) | $26,177 | $4,380 | | **Diluted EPS** | $2.14 | $(0.51) | $3.54 | $0.58 | Consolidated Balance Sheet Highlights (Unaudited) | Account | Sep 30, 2024 (in thousands) | Dec 31, 2023 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $63,052 | $85,109 | | Total current assets | $259,022 | $231,998 | | Total assets | $597,406 | $539,708 | | Total current liabilities | $68,923 | $69,986 | | Total liabilities | $200,096 | $157,368 | | Total stockholders' equity | $397,310 | $382,340 | Consolidated Cash Flow Highlights (Unaudited, 9 Months Ended Sep 30) | Cash Flow Activity | 2024 (in thousands) | 2023 (in thousands) | | :--- | :--- | :--- | | Net cash (used for) provided by operating activities | $(2,879) | $63,020 | | Net cash used for investing activities | $(31,055) | $(37,555) | | Net cash provided by (used for) financing activities | $11,877 | $(8,046) | | **Net (Decrease) Increase in Cash** | **$(22,057)** | **$17,419** | [Management's Discussion and Analysis (MD&A)](index=19&type=section&id=Item%202%2E%20-%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes improved operating results primarily to the Coal Mining segment's insurance recovery and enhanced unconsolidated earnings, with a positive outlook for 2024 [Business Segments Overview](index=19&type=section&id=Business%20Segments%20Overview) The company operates three primary segments: Coal Mining, NAMining, and Minerals Management, with recent performance impacted by a customer's power plant issue - The company operates three business segments: Coal Mining, North American Mining (NAMining), and Minerals Management[81](index=81&type=chunk) - The Coal Mining segment's Mississippi Lignite Mining Company (MLMC) is consolidated, while other coal operations (Coteau, Coyote Creek, Falkirk) are accounted for as equity method investments (unconsolidated VIEs)[84](index=84&type=chunk)[89](index=89&type=chunk) - A mechanical issue at a customer's power plant significantly impacted MLMC's operations in the first nine months of 2024, leading to a **$13.6 million** business interruption insurance recovery in Q3[86](index=86&type=chunk) - The NAMining segment is positioned as a growth platform, diversifying away from thermal coal by providing mining services for industrial minerals, including for the Thacker Pass lithium project[91](index=91&type=chunk) [Consolidated Financial Performance](index=23&type=section&id=Consolidated%20Financial%20Performance) Consolidated operating profit for Q3 2024 dramatically reversed to $19.7 million, primarily driven by the Coal Mining segment's recovery, despite increased interest expense Consolidated Operating Profit (Loss) by Segment (in thousands) | Segment | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Coal Mining | $19,938 | $(4,697) | $22,288 | $(9,059) | | NAMining | $(474) | $866 | $4,966 | $3,910 | | Minerals Management | $6,188 | $3,610 | $21,709 | $16,943 | | Unallocated & Eliminations | $(5,953) | $(6,046) | $(17,141) | $(14,497) | | **Total Operating Profit (Loss)** | **$19,699** | **$(6,267)** | **$31,822** | **$(2,703)** | - Interest expense increased in Q3 and the first nine months of 2024 compared to 2023 due to higher average borrowings and interest rates[114](index=114&type=chunk) - The effective tax rate can be volatile due to the impact of the percentage depletion benefit, which is not directly related to pre-tax income levels[117](index=117&type=chunk) [Segment Performance Analysis](index=26&type=section&id=Segment%20Performance%20Analysis) The Coal Mining segment's operating profit surged to **$19.9 million** in Q3 2024 due to insurance recoveries, while NAMining saw a Q3 loss, and Minerals Management profit rose from acquisitions Coal Mining Segment: Operating Profit (Loss) Analysis (Q3 2024 vs Q3 2023, in thousands) | Component | Change Contribution | | :--- | :--- | | 2023 Operating Loss | $(4,697) | | Business interruption insurance recoveries | $13,612 | | Improvement in Gross Loss | $7,806 | | Increase in Earnings of unconsolidated operations | $2,562 | | **2024 Operating Profit** | **$19,938** | - The NAMining segment's Q3 2024 operating loss was primarily due to a **$0.9 million** charge to establish an allowance against a customer receivable[148](index=148&type=chunk) - The Minerals Management segment's revenue and profit growth was driven by higher oil and natural gas production volumes, mainly from an acquisition that closed in Q4 2023; operating profit for the first nine months of 2024 also included a **$4.5 million** gain on a land sale[156](index=156&type=chunk) [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) The company experienced a significant shift to net cash use from operations in 2024 due to working capital changes, but enhanced liquidity by expanding its credit facility - Net cash used for operating activities was **$2.9 million** in the first nine months of 2024, a **$65.9 million** decrease from the **$63.0 million** provided in the prior year period, mainly due to unfavorable working capital changes and a **$13.6 million** business interruption insurance receivable[118](index=118&type=chunk) - In September 2024, the company amended its secured revolving credit facility, increasing the commitment to **$200 million** and extending the maturity to September 2028; as of September 30, 2024, borrowings were **$37.2 million** with **$130.9 million** of excess availability[123](index=123&type=chunk) Capital Structure | Metric | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total debt (in thousands) | $70,222 | $35,956 | | Total equity (in thousands) | $397,310 | $382,340 | | **Debt to total capitalization** | **15%** | **9%** | - Capital expenditures for the first nine months of 2024 were **$30.7 million**; an additional **$38 million** is planned for the remainder of 2024, and approximately **$48 million** is planned for 2025[129](index=129&type=chunk) [Business Outlook](index=32&type=section&id=Business%20Outlook) The company anticipates significant year-over-year increases in consolidated operating profit and net income for Q4 and full-year 2024, primarily driven by Coal Mining, with continued growth expected in 2025 - **Consolidated:** Full-year 2024 consolidated operating profit and net income are expected to increase significantly over 2023 (excluding prior-year impairments)[170](index=170&type=chunk) - **Coal Mining:** Expects significant year-over-year increases in operating profit for Q4 and full-year 2024, driven by higher earnings at unconsolidated mines and improved results at MLMC[161](index=161&type=chunk) - **NAMining:** Expects increased operating profit for Q4 and full-year 2024, driven by amended contracts and scope expansions; the Thacker Pass lithium project is expected to begin Phase 1 production in 2027[163](index=163&type=chunk)[164](index=164&type=chunk) - **Minerals Management:** Expects operating profit to decrease in Q4 and full-year 2024 compared to 2023 (excluding one-off items), due to market expectations for oil and gas prices[166](index=166&type=chunk) - **2025 Perspectives:** The company anticipates its Mitigation Resources business will achieve profitability in 2025 and plans to terminate its defined benefit pension plan, which will result in a non-cash settlement charge[176](index=176&type=chunk)[177](index=177&type=chunk) [Controls and Procedures](index=35&type=section&id=Item%204%2E%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of Q3 2024, with no material changes to internal controls - Management concluded that the company's disclosure controls and procedures are effective as of September 30, 2024[185](index=185&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the third quarter of 2024[185](index=185&type=chunk) Part II: Other Information [Risk Factors and Legal Proceedings](index=36&type=section&id=Item%201A%20Risk%20Factors) The company reported no new legal proceedings and no material changes to previously disclosed risk factors during the quarter - There were no material changes to the company's risk factors during the quarter ended September 30, 2024[187](index=187&type=chunk) - The company reported no legal proceedings for the period[187](index=187&type=chunk) [Issuer Purchases of Equity Securities](index=36&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3 2024, the company repurchased 68,282 shares for approximately **$2.0 million** under its **$20.0 million** stock repurchase program, with **$8.9 million** remaining Share Repurchases in Q3 2024 | Period | Total Shares Purchased | Average Price Paid per Share | Total Cost (in thousands) | | :--- | :--- | :--- | :--- | | July 2024 | 39,649 | $30.78 | $1,220.6 | | August 2024 | 28,633 | $27.82 | $796.5 | | September 2024 | — | $— | $— | | **Total Q3** | **68,282** | **$29.54** | **$2,017.1** | - As of September 30, 2024, approximately **$8.9 million** remained available for future repurchases under the company's stock repurchase program, which runs through December 31, 2025[188](index=188&type=chunk)

Financial Performance - Q3 2024 operating profit reached $19.7 million, a significant increase from a $6.3 million operating loss in Q3 2023, primarily due to $13.6 million in business interruption insurance income[1][2] - Net income for Q3 2024 was $15.6 million, compared to a net loss of $3.8 million in Q3 2023[1][2] - EBITDA for Q3 2024 was $25.7 million, a substantial increase from $423,000 in Q3 2023[2] - Revenues for the three months ended September 30, 2024, increased to $61,656,000 from $46,546,000 in the same period last year, representing a 32.3% growth[41] - Gross profit for the three months ended September 30, 2024, was $7,244,000 compared to a loss of $2,174,000 in the prior year, indicating a significant recovery[41] - Net income for the three months ended September 30, 2024, was $15,635,000, a turnaround from a net loss of $3,832,000 in the same quarter of 2023[41] - Basic earnings per share for the three months ended September 30, 2024, were $2.14, compared to a loss of $0.51 per share in the same period last year[41] - Operating profit for the three months ended September 30, 2024, was $19,699,000, a substantial improvement from an operating loss of $6,267,000 in the prior year[41] - Total revenues for the nine months ended September 30, 2024, were $167.29 million, a decrease from $158.037 million in the same period of 2023[45][46] - Gross profit for the nine months ended September 30, 2024, was $21.28 million, compared to a gross loss of $20.305 million in the previous year[45][46] - Segment Adjusted EBITDA for the nine months ended September 30, 2024, was $50.772 million, an increase from $18.726 million in the same period of 2023[45][46] - Operating profit for the nine months ended September 30, 2024, was $31.822 million, while the previous year reported an operating loss of $2.703 million[45][46] - Earnings from unconsolidated operations for the nine months ended September 30, 2024, totaled $42.054 million, compared to $37.662 million in the same period of 2023[45][46] - Business interruption insurance recoveries amounted to $13.612 million for the nine months ended September 30, 2024[45] Segment Performance - Coal Mining segment reported an operating profit of $19.9 million in Q3 2024, recovering from a loss of $4.7 million in Q3 2023, despite lower revenues[4][5] - North American Mining revenues increased to $32.3 million in Q3 2024, up from $21.7 million in Q3 2023, driven by higher reimbursed costs and favorable pricing[11] - Minerals Management revenues improved to $8.8 million in Q3 2024, compared to $5.7 million in Q3 2023, with operating profit rising to $6.2 million from $3.6 million[17] - The coal mining segment generated revenues of $17,706,000 for the three months ended September 30, 2024, down from $18,665,000 in the same period last year[43] Future Outlook - Full-year 2024 capital expenditures are expected to total approximately $69 million, with $38 million planned for the fourth quarter[22] - The company anticipates significant year-over-year increases in Coal Mining operating profit and Segment Adjusted EBITDA in Q4 2024, driven by improved results at Mississippi Lignite Mining Company[8] - North American Mining expects to see increased operating profit and Segment Adjusted EBITDA in Q4 2024, supported by amended limestone contracts and expanded scope of work[13] - Full-year 2024 net income is expected to increase significantly compared to 2023, reflecting overall improvements across segments[21] - The Minerals Management segment anticipates a moderate production decline in 2025, with expected unlevered after-tax returns on invested capital in the mid-teens as the business matures[27] - Mitigation Resources expects to achieve profitability beginning in 2025, based on current expectations for new projects and timing of permit approvals[28] Strategic Initiatives - The Company is terminating its defined benefit pension plan, expecting a noncash settlement charge in 2025 upon termination[29] - The Company is pursuing growth through acquisitions of additional mineral interests and new contracts at Mitigation Resources and North American Mining, which should be accretive to the long-term outlook[31] - NACCO is focused on managing coal production costs and maximizing efficiencies to help customers be more competitive, which benefits the Coal Mining segment[33] - NACCO established ReGen Resources to develop solar and other energy-related projects on reclaimed mining properties, addressing the increasing demand for power generation sources[34] - The Company maintains a conservative capital structure while pursuing strategic diversification to generate cash for reinvestment[35] - The Company has ten mitigation banks and four permittee-responsible mitigation projects across several states, indicating a strong foundation for growth in Mitigation Resources[28] Market Considerations - The Company believes that fluctuations in natural gas prices and renewable energy availability could affect coal demand from its customers[33] - The Company is committed to maintaining high levels of customer service and operational excellence with a focus on safety and environmental stewardship[35] Operating Expenses - Total operating expenses for the three months ended September 30, 2024, were $16,618,000, slightly up from $16,760,000 in the same period last year[43] - Operating expenses for the nine months ended September 30, 2024, were $50.033 million, compared to $48.036 million in the same period of 2023[45][46] - The cost of sales for the nine months ended September 30, 2024, was $146.01 million, a slight increase from $150.447 million in the previous year[45][46] - Depreciation, depletion, and amortization for the nine months ended September 30, 2024, totaled $18.95 million, compared to $21.429 million in the same period of 2023[45][46]

Consolidated Financial Performance - The company reported an operating profit of $19.7 million for Q3 2024, a significant improvement from a $6.3 million operating loss in Q3 2023, marking a $25.966 million increase [2][3] - Net income for Q3 2024 was $15.6 million, compared to a net loss of $3.8 million in Q3 2023, reflecting a $19.467 million improvement [2][3] - The Q3 2024 results included $13.6 million in business interruption insurance income, which contributed to the overall financial improvement [3][7] Segment Performance Coal Mining - Coal Mining segment delivered 5,809 thousand tons in Q3 2024, slightly up from 5,733 thousand tons in Q3 2023 [5] - Revenues from the Coal Mining segment were $17.7 million in Q3 2024, down from $18.7 million in Q3 2023, primarily due to lower deliveries at Mississippi Lignite Mining Company [5][7] - The segment achieved an operating profit of $19.9 million in Q3 2024, compared to a loss of $4.7 million in Q3 2023, driven by improved operational efficiencies and the insurance recoveries [6][8] North American Mining - North American Mining revenues increased to $32.3 million in Q3 2024 from $21.7 million in Q3 2023, primarily due to higher reimbursed costs and favorable pricing [12] - Despite the revenue growth, the segment reported an operating loss of $0.5 million in Q3 2024, down from a profit of $0.9 million in Q3 2023, attributed to higher expenses and a reserve charge [13][12] Minerals Management - The Minerals Management segment saw revenues rise to $8.8 million in Q3 2024 from $5.7 million in Q3 2023, with operating profit increasing to $6.2 million from $3.6 million [15][16] - The improvements were mainly due to higher production volumes from assets acquired in late 2023 [16] Outlook - The company anticipates significant year-over-year increases in Coal Mining operating profit and Segment Adjusted EBITDA for Q4 2024, driven by improved results at Mississippi Lignite Mining Company and higher deliveries [10][20] - North American Mining expects to see operating profit and Segment Adjusted EBITDA increase in Q4 2024, supported by amended contracts and expanded scopes of work [13][25] - The Minerals Management segment is projected to experience a decrease in operating profit and Segment Adjusted EBITDA for Q4 2024 compared to 2023, influenced by market expectations for natural gas and oil prices [17][18] Capital Expenditures and Financial Position - The company had consolidated cash of $63.1 million and total debt of $70.2 million as of September 30, 2024 [4] - Full-year 2024 capital expenditures are expected to total approximately $69 million, with $38 million planned for Q4 2024 [22][15]

Group 1 - NACCO Industries will release its 2024 Third Quarter financial results on October 30, 2024, after market close [1] - A conference call to discuss the financial results will be held on October 31, 2024, at 8:30 a.m. Eastern Time [1] - The conference call can be accessed via telephone or webcast, with a replay available until November 7, 2024 [1] Group 2 - NACCO Industries specializes in delivering aggregates, minerals, reliable fuels, and environmental solutions through its portfolio of businesses [2] - Additional information about NACCO Industries can be found on its website [2]

Consolidated Q2 2024 Highlights: Operating profit of $7.4 million increased from $1.8 million in Q2 2023 Includes $4.5 million gain on sale of an asset Income before taxes of $6.2 million increased from $3.3 million in Q2 2023 Net income of $6.0 million, or $0.81/share versus $2.5 million, or $0.34/share, in Q2 2023 CLEVELAND, July 31, 2024 /PRNewswire/ -- NACCO Industries® (NYSE: NC) today announced the following consolidated results for the three months ended June 30, 2024. Comparisons in this news releas ...