UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 _______________________________________________________________________________________________________________________________________________________________________________________________________ FORM 10-Q (Mark One) þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT ...

Financial Data and Key Metrics Changes - Consolidated operating profit increased to $16.4 million from $9.7 million in the previous year's first quarter [11] - Consolidated net income rose to $15 million or $2.15 per share, up from $8.2 million or $1.18 per share last year [11] - Effective income tax rate increased to 13.4% compared to 9% last year [11] Business Line Data and Key Metrics Changes - **Coal Mining Segment**: Operating profit decreased due to the absence of a $1 million favorable adjustment from the previous year and increased selling, general, and administrative expenses [12] - **North American Mining Segment**: Operating profit decreased primarily due to increased selling, general, and administrative expenses, including additional business development costs [13] - **Minerals Management Segment**: Significant increase in operating profit due to a rise in the number of wells operated by third parties for natural gas extraction [12] Market Data and Key Metrics Changes - Overall deliveries in the Coal Mining segment are expected to decrease moderately for the full year 2019 [14] - North American Mining deliveries are also expected to decrease modestly compared to 2018 [15] - Royalty income is anticipated to increase year-over-year, although at a lower rate than the first quarter [16] Company Strategy and Development Direction - The company is focusing on growth opportunities in the royalty business, leveraging technological developments and infrastructure improvements [26] - North American Mining is expanding its core business and exploring new contracts beyond Florida, including a recent sand mining contract in Virginia [30][35] - The company aims to optimize its operations and expand its service offerings to quarry operators and mineral producers [32] Management's Comments on Operating Environment and Future Outlook - Management expects consolidated net income to increase significantly in 2019 due to higher operating profit and reduced interest expenses [17] - The company maintains a conservative balance sheet, allowing for strategic business development [34] - Future royalty income is dependent on third-party producers' activities and natural gas prices [28] Other Important Information - Capital expenditures are expected to be approximately $23 million for the full year 2019 [18] - The company ended the fourth quarter with consolidated cash on hand of $79.1 million and debt of $12 million [19] Q&A Session Summary Question: Has there been a meaningful change to the 2019 outlook? - Management indicated that there has not been a significant change, with coal and North American Mining operations performing in line with earlier expectations [21][22] Question: What drove the spike in royalty income this quarter? - The spike was entirely due to increased production activity [24] Question: Is the company pursuing growth opportunities in the royalty business? - Yes, the company is actively pursuing growth opportunities and has hired a petroleum engineer to optimize income streams [26] Question: Will royalty income increase year-over-year for the remaining quarters? - Yes, it is expected to increase year-over-year, but not at the same rate as the first quarter [27][29] Question: What business development initiatives are being pursued in North American Mining? - The focus is on expanding existing core business and exploring new contracts beyond Florida [30][31] Question: What drove the decision to buy back stock in the first quarter? - The decision was based on the belief that buying stock makes sense when there is a good return on investment [39] Question: Under what circumstances would the company return cash to shareholders in the form of a special dividend? - The company has a disciplined approach to returning capital and does not see paying a special dividend as necessarily in the best interest of taxable shareholders [41][42]

Financial Performance - Revenues for the three months ended March 31, 2019, increased to $40,097,000, up 28.4% from $31,200,000 in the same period of 2018[15] - Gross profit for the same period was $13,385,000, representing a significant increase of 147.1% compared to $5,424,000 in 2018[15] - Net income for Q1 2019 was $15,018,000, which is an increase of 83.5% from $8,176,000 in Q1 2018[17] - Basic earnings per share rose to $2.16 in Q1 2019, compared to $1.19 in Q1 2018, reflecting an increase of 81.5%[15] - Operating profit for Q1 2019 was $16,373,000, up 68.5% from $9,721,000 in Q1 2018[15] - The company reported a total comprehensive income of $15,119,000 for Q1 2019, compared to $8,316,000 in Q1 2018, an increase of 81.5%[17] - Total revenues for the three months ended March 31, 2019, were $40,097 million, a 28.5% increase from $31,200 million in the same period of 2018[44] - Operating profit for the same period was $16,373,000, up 68.5% from $9,721,000 in 2018[84] - Net income for the three months ended March 31, 2019, was $15,018,000, compared to $8,176,000 in 2018, reflecting an increase of 83.5%[84] Assets and Liabilities - Total assets as of March 31, 2019, were $393,787,000, up from $376,991,000 at the end of 2018, marking a growth of 4.3%[13] - Total liabilities increased to $129,520,000 as of March 31, 2019, compared to $126,287,000 at the end of 2018, a rise of 1.8%[13] - Cash and cash equivalents decreased to $79,058,000 from $85,257,000, a decline of 7.5%[13] - The balance of total stockholders' equity as of March 31, 2019, was $264,267,000, up from $250,704,000 at the beginning of the year, indicating a growth of 5.4%[22] - NACCO's total debt was $12.0 million as of March 31, 2019, a slight increase from $11.0 million at the end of 2018[98] Segment Performance - NACCO Industries, Inc. operates through three segments: Coal Mining, North American Mining (NAMining), and Minerals Management, with historical financial information recast to conform to the current presentation[22] - The Coal Mining segment generated revenue of $16,750,000, a decrease of 4.8% from $17,597,000 in 2018[84] - The NAMining segment reported revenues of $10,775,000, an increase of 5.5% from $10,213,000 in 2018[84] - The Minerals Management segment saw a significant revenue increase to $12,686,000, compared to $3,476,000 in 2018, representing a 264.5% growth[84] - The Coal Mining segment includes several operating mines, with management fee contracts that eliminate exposure to spot coal market price fluctuations[24][25] - NAMining is focused on expanding operations outside Florida and into other mining materials, with income before income taxes consolidated or unconsolidated based on contract structure[26] - The Minerals Management segment generates income primarily from royalty-based lease payments from third parties, leveraging existing oil, gas, and coal reserves[28] Cash Flow and Expenditures - Cash flow from operating activities improved significantly, with net cash used decreasing from $8,029,000 in 2018 to $544,000 in 2019, a change of $7,485,000[89] - Expenditures for property, plant, and equipment totaled $4,252,000 in 2019, an increase of $1,800,000 from $2,452,000 in 2018[89] - Capital expenditures are projected to be approximately $23 million in 2019, up from $20.9 million in 2018, with increased spending required for a new mine area[116] Revenue Recognition and Accounting Policies - Revenue recognition is based on distinct performance obligations, with fluctuations in revenue primarily driven by changes in customer demand[39][42] - The Company disaggregates revenue into major goods and service lines, aligning with ASC 606 to depict the nature and timing of revenue and cash flows[43] - NACCO adopted Accounting Standard Update 2016-02, Leases (Topic 842), on January 1, 2019, with no material effect on results of operations or cash flows[31][32] - The operating lease expense for the three months ended March 31, 2019, was $625,000, while the total net lease expense amounted to $744,000[36] - The Company has updated its lease accounting policy in connection with the adoption of ASC 842 as of January 1, 2019[83] Future Outlook - The company expects to recognize an additional $0.5 million in revenue related to contract liabilities remaining at March 31, 2019, in 2019[46] - The company expects a moderate decrease in overall coal deliveries in 2019 due to changes in customer requirements, with operating profit anticipated to decline as well[112] - NACCO expects 2019 consolidated net income to increase significantly compared to 2018, driven by higher earnings in the Minerals Management segment and reduced interest expenses[115] - The effective income tax rate is expected to be in the range of 13% to 15% based on the mix of earnings between entities[115]

Financial Data and Key Metrics Changes - Revenues increased by 47.7% to $39.1 million, up from $26.4 million in the previous year's fourth quarter [7] - Consolidated pretax income from continuing operations more than doubled to $14.9 million, compared to $5.8 million in 2017 [7] - Consolidated income from continuing operations rose by 13.8% to $11 million or $1.57 per share, compared to $9.7 million or $1.40 per share in the same quarter last year [8] Business Line Data and Key Metrics Changes - Coal deliveries increased to 10 million tons in the fourth quarter, up from 9.2 million tons last year [10] - Limestone deliveries at the North American Mining division rose to 8.9 million yards from 7.9 million yards in the fourth quarter of 2017 [10] - The increase in tons delivered and recognition of $3 million from contractual settlements contributed to revenue and pretax income growth [11] Market Data and Key Metrics Changes - The effective income tax rate for the full year was 17.5%, which was higher than previously anticipated due to a shift in the mix of earnings [9] - Royalty income has significantly increased in both 2017 and 2018, primarily due to the development of gas wells in Ohio [15] Company Strategy and Development Direction - The company expects consolidated pretax income to increase in 2019 compared to 2018, with an effective income tax rate projected to be between 13% to 15% [12] - Anticipated increases in revenue from Mississippi Lignite Mining Company are expected due to contractually agreed prices and a decline in diesel prices, which will reduce costs [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for increased revenue due to favorable indices affecting coal prices and strong deliveries to power plants [24] - The company expects capital expenditures to rise to approximately $23 million in 2019, compared to $20.9 million last year, while cash flow before financing activities is expected to increase significantly [17] Other Important Information - The company ended the fourth quarter with consolidated cash on hand of $85.3 million and debt of $11 million, compared to $101.6 million in cash and $58.1 million in debt at the end of 2017 [18] - Approximately 28,700 shares of Class A common stock were repurchased for about $1 million under the stock repurchase program [19] Q&A Session Summary Question: Clarification on MLMC pretax income increase - Management confirmed that MLMC pretax income is expected to grow year-over-year excluding special items from 2018 [22] Question: Positive developments at MLMC for 2019 - Management highlighted that fixed price contracts and anticipated strong deliveries to power plants would contribute positively to MLMC's performance in 2019 [24]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K (Mark One) þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 1-9172 NACCO INDUSTRIES, INC. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 34-1505819 (I.R.S. ...