Financial Data and Key Metrics Changes - For the full year 2019, consolidated net income increased to $39.6 million from $34.8 million in 2018, while fourth quarter net income decreased to $6.4 million or $0.91 per share from $11 million or $1.57 per share in the prior year [5][6] - The effective income tax rate for 2019 was 8.7%, down from 17.5% in 2018, influenced by a $2.5 million tax benefit in 2019 [7][8] Business Segment Data and Key Metrics Changes - In the Coal Mining segment, operating profit decreased significantly due to unfavorable adjustments and fewer deliveries, with a notable $2 million unfavorable adjustment to mine reclamation liabilities in Q4 2019 [6] - The Minerals Management segment saw a significant increase in royalty income in 2019 compared to 2018, but a decrease in 2020 is expected due to natural gas price expectations and fewer new wells [13] - North American Mining is anticipated to see increased limestone deliveries and improved operating results in 2020, although operating expenses are expected to rise due to higher employee-related costs [11] Market Data and Key Metrics Changes - The company expects overall coal deliveries to increase modestly in 2020 due to reduced planned power plant outage days and increased dispatch days [9] - Royalty income in 2020 is expected to decrease significantly, particularly in the first half, compared to the historically high revenue levels in early 2019 [13] Company Strategy and Development Direction - The company is focusing on diversifying its mining operations beyond coal, with plans to expand into lithium and limestone mining, leveraging existing skills in surface mining [27][26] - There is an emphasis on maintaining a conservative balance sheet while pursuing growth and diversification, particularly in the minerals segment [35] Management's Comments on Operating Environment and Future Outlook - Management anticipates a decrease in consolidated net income for 2020 compared to 2019, primarily due to reduced operating profit in the Minerals Management segment and the absence of prior year tax benefits [14] - The company is committed to maintaining a conservative cash position to support long-term growth and manage risks associated with the coal industry [35] Other Important Information - The company ended 2019 with consolidated cash of $122.9 million and debt of $24.9 million, with expectations of significantly decreased cash flow in 2020 due to increased capital expenditures [15] Q&A Session Summary Question: North American Mining's revenue growth and profitability - The management discussed the evaluation of projects based on internal rate of return and return on total capital employed, emphasizing a disciplined approach to growth [18][19][20] Question: Comparison of lithium and lignite mining - Management highlighted the similarities in operational skills required for both types of mining and noted the positive market dynamics for lithium compared to coal [24][27] Question: Future acquisitions in the minerals segment - The company is considering acquiring mineral interests that can be leased out for royalties, similar to existing operations in Ohio [28][31] Question: Cash management and share buybacks - Management confirmed a conservative approach to cash management, balancing growth ambitions with the need to maintain liquidity for potential risks in the coal industry [35][36]

Customer Concentration and Revenue Dependence - The principal customer, Choctaw Generation Limited Partnership, accounted for 48% of consolidated revenue in 2019, down from 60% in 2018 and 2017, indicating a significant reliance on key customers[40] - The Coal Mining segment derived approximately 60% of the Earnings of Unconsolidated Operations from two customers in 2019, highlighting the risk associated with customer concentration[42] - The Company derives approximately 60% of earnings from two major customers, Basin Electric Power Cooperative and Great River Energy, indicating a high customer concentration risk[150] Coal Reserves and Production - The Coal Mining segment operates surface coal mines under long-term contracts, with total coal reserves approximating 2.0 billion tons, of which approximately 1.1 billion tons are committed to customers under long-term contracts[32] - The total developed reserves amount to 1,061.7 million tons, while undeveloped reserves total 695.6 million tons, leading to a combined total of 1,999.0 million tons[55] - The Falkirk Mine has proven and probable reserves of 375.7 million tons, with 99% of the reserves committed under long-term contracts[55] - The Freedom Mine produces between 13.5 million and 14.5 million tons of lignite coal annually, with all production delivered to Dakota Coal Company[63] - The Eagle Pass Mine has a total of 15.6 million tons of reserves, with 11.8 million tons committed and a contract expiration in 2021[55] - The Red Hills Mine has a total of 240.0 million tons of reserves, with 44% committed and 56% uncommitted[55] Market Competition and Industry Challenges - The coal industry faces competition from natural gas, wind, and solar energy, with sustained low natural gas prices leading to increased electricity generation from natural gas[45] - The company estimates that wind capacity in North Dakota has increased over 60% since 2015, reflecting the growing competition from renewable energy sources[45] - Changes in coal consumption patterns and competition from natural gas and renewables could materially reduce MLMC's profitability[159] Regulatory and Environmental Factors - The Clean Air Act and related regulations may reduce demand for coal due to stricter emission controls and requirements for coal-fired power plants[117] - The Company’s power generation customers face substantial costs to comply with emissions regulations, which may lead to reduced demand for coal[124] - Global climate change legislation aimed at reducing greenhouse gas emissions could result in electric generators switching from coal to alternative fuel sources[125] - The Company believes it has obtained all necessary permits under the Clean Air Act (CAA) and is in compliance with such permits, which is crucial for its operations[133] - The Company has also secured all required permits under the Clean Water Act (CWA) and is compliant, which may affect operational costs related to water treatment[135] Operational and Financial Risks - The Company faces significant uncertainty regarding the impact of future laws and regulations on its business, which could materially affect its financial condition[132] - The Company is subject to environmental liabilities and costs that could materially affect its results of operations and financial condition due to compliance with various environmental laws[143] - Mining operations are vulnerable to weather and other uncontrollable conditions that could decrease coal delivery and profitability[169] - The company conducts a significant portion of its operations on leased properties, which may be subject to title defects that could limit mining capabilities[176] Workforce and Employment - The company has approximately 2,400 employees as of December 31, 2019, with 282 represented by a union at Bisti, indicating a stable workforce[50] Financial Performance and Profitability - The company believes that third-party mine permit holders have all necessary permits for operations at Caddo Creek, Demery, Bisti, and Camino Real, although it cannot guarantee future maintenance of these permits[103] - The Company operates 31 draglines at 20 quarries, with 5 owned by the Company and 26 owned by customers[99] - The board of directors has discretion over dividend payments, which may change based on various financial factors[188] - The stock repurchase program may increase volatility and does not guarantee enhanced long-term shareholder value[190] Strategic Initiatives and Growth - The NAMining segment is focused on expanding outside of Florida and into other minerals, with a mining agreement for the Thacker Pass lithium project in northern Nevada[36] - The company has experienced growth in its NAMining business but faces challenges in managing future growth effectively[165] Insurance and Risk Management - Property and casualty insurance costs are increasing, which could adversely affect MLMC's financial condition[166] - The company is vulnerable to cybersecurity threats, which could disrupt operations and compromise sensitive information[179] Corporate Governance and Control - Certain family members control a significant portion of voting power, which could affect corporate governance and attractiveness for takeovers[200]

Financial Data and Key Metrics Changes - Consolidated revenues increased to $32.6 million from $31.4 million in the prior year third quarter, while operating profit decreased to $8.7 million from $10.5 million [6] - Consolidated net income increased to $10.3 million or $1.47 per share, up from $9.2 million or $1.33 per share last year, primarily due to a $2.7 million pre-tax payment associated with a prior venture [7] - The effective income tax rate for the year-to-date period was 14.1%, compared to 12.7% in 2018 [8] Business Segment Data and Key Metrics Changes - In the Coal Mining segment, operating profit decreased due to reduced earnings from unconsolidated operations and higher employee-related costs, including a $700,000 increase in non-cash equity compensation [9] - The North American Mining segment reported an operating loss this quarter compared to a modest profit in the prior year, driven by higher employee-related and business development costs [10] - The Minerals Management segment saw an increase in operating profit during the first nine months of the year, but a decrease is expected in the fourth quarter and full-year due to natural gas price expectations and production declines [24][25] Market Data and Key Metrics Changes - Coal deliveries are expected to decrease in the fourth quarter and for the full year compared to the prior year due to anticipated changes in customer requirements [12] - For 2020, coal deliveries are expected to increase compared to 2019, primarily at unconsolidated operations due to a reduction in planned power plant outage days [15] Company Strategy and Development Direction - The company is focusing on capital expenditures, expecting $30 million in 2020, primarily due to spending at Mississippi Lignite Mining Company for new mine area development [17] - North American Mining has entered into an agreement to serve as the exclusive contract miner for the Thacker Pass Lithium project, which is believed to be the largest known lithium deposit in the U.S. [20][21] Management's Comments on Operating Environment and Future Outlook - Management expects overall deliveries in the Coal Mining segment to decrease in the fourth quarter and for the full year, but anticipates a modest increase in operating profit due to reduced operating expenses [13] - For 2020, management expects substantial increases in coal mining operating profit, particularly in the first half of the year, driven by improved earnings at consolidated operations [16] - The company forecasts a decrease in consolidated net income for 2020 compared to 2019, primarily in the first half [29] Other Important Information - The company ended the third quarter with consolidated cash on hand of $115.1 million and debt of $7.7 million [30] - Full-year 2019 cash flow before financing activities is expected to increase over 2018, but a modest use of cash is anticipated in 2020 due to increased capital expenditures [31] Q&A Session Summary Question: What does a normal CapEx year look like? - Management indicated that CapEx is driven by consolidated coal mining operations and North American Mining, with higher CapEx expected in 2020 and 2021 due to moving into a new mine area [36] Question: Why is MLMC's adjusted return on tangible capital employed important for shareholders? - Management explained that it measures the cash flow generated compared to the capital employed, ensuring responsible stewardship of capital [44][46] Question: Will the management fee per ton for lithium be significantly higher than for lignite? - Management clarified that the service provided for lithium mining is similar to coal mining, and the fees will be calculated in a similar way, regardless of the product's value [48][49]

Financial Performance - Total revenues for the three months ended September 30, 2019, were $32,603,000, an increase of 3.7% compared to $31,440,000 for the same period in 2018[10] - Gross profit for the nine months ended September 30, 2019, was $28,240,000, up from $16,365,000 in 2018, representing a significant increase of 72.6%[10] - Net income for the three months ended September 30, 2019, was $10,264,000, compared to $9,200,000 in 2018, reflecting an increase of 11.6%[12] - Basic earnings per share for the nine months ended September 30, 2019, were $4.77, compared to $3.43 for the same period in 2018, marking an increase of 39.0%[10] - Net income for the first nine months of 2019 was $33.3 million, up 40% from $23.8 million in the same period of 2018[90] - The company reported a comprehensive income of $10,334,000 for the three months ended September 30, 2019, compared to $9,303,000 in 2018, reflecting an increase of 11.1%[12] Cash and Assets - Cash and cash equivalents increased to $115,061,000 as of September 30, 2019, from $85,257,000 at the end of 2018, representing a growth of 35.0%[7] - Total assets as of September 30, 2019, were $412,770,000, an increase of 9.5% from $376,991,000 at the end of 2018[7] - Total stockholders' equity increased to $283,255,000 as of September 30, 2019, from $250,704,000 at the end of 2018, representing a growth of 12.9%[10] - The balance of trade accounts receivable, net, decreased to $13.5 million as of September 30, 2019, from $20.8 million at the beginning of the year[45] - Total inventories increased to $33.1 million as of September 30, 2019, compared to $31.2 million as of December 31, 2018, representing a 6% increase[49] Liabilities and Equity - Total liabilities as of September 30, 2019, were $129,515,000, slightly up from $126,287,000 at the end of 2018[7] - The Company’s contract liability decreased by $28,000 from the beginning of the year to $726,000 as of September 30, 2019[45] - The Company reported a decrease in asset retirement obligations to $35.2 million as of September 30, 2019, down from $37.7 million at the end of 2018[65] Segment Performance - Coal Mining segment revenue for the nine months ended September 30, 2019, was $58.1 million, compared to $57.0 million in 2018, reflecting a year-over-year increase of 1.9%[44] - Revenue from the NAMining segment for the nine months ended September 30, 2019, was $30.5 million, up from $28.4 million in 2018, indicating a growth of 7.5%[44] - The Minerals Management segment's revenues increased to $5.0 million for the three months ended September 30, 2019, compared to $3.9 million in the same period of 2018, a growth of 29%[64] Operational Highlights - Operating profit for the three months ended September 30, 2019, was $8,663,000, down from $10,547,000 in 2018, indicating a decrease of 17.9%[10] - Operating profit for the Coal Mining segment decreased to $7.3 million for the three months ended September 30, 2019, compared to $9.8 million in the same period of 2018, a decline of 25%[64] - The NAMining segment reported a loss of $0.4 million for the three months ended September 30, 2019, compared to a profit of $0.3 million in the same period of 2018[64] Future Outlook - The Thacker Pass lithium project is expected to commence production in 2023, with Sawtooth serving as the exclusive contract miner[144] - The company expects capital expenditures to rise to approximately $41 million in 2020, primarily for the Coal Mining segment[107] - Coal deliveries are expected to increase in 2020 compared to 2019, driven by higher customer requirements and reduced planned power plant outage days[138] - Consolidated net income for 2019 is expected to increase significantly compared to 2018, driven by higher earnings in the Minerals Management segment[151] Dividends and Shareholder Returns - Cash dividends for Class A and Class B common stock were $0.1900 per share, totaling $1,328,000 for the quarter[19] - The company declared cash dividends of $0.1900 per share for Class A and Class B common stock during the second and third quarters of 2019, totaling $1,327,000 and $1,328,000 respectively[19] Mining Agreements and Projects - The company entered into a mining agreement for the Thacker Pass lithium project, with a total commitment of $3.5 million for project development[26] - The Thacker Pass project will involve a management fee per metric ton of lithium delivered, with an initial cash assistance of $3.5 million provided to Lithium Nevada Corp.[26] - NACCO's NAMining segment is expanding operations beyond Florida, focusing on mining materials other than limestone[23]

Financial Data and Key Metrics Changes - Consolidated operating profit increased by 17.4% to $9.2 million from $7.8 million in the prior year second quarter [7] - Consolidated net income rose to $8 million or $1.14 per share, up from $6.4 million or $0.92 per share last year [7] - Effective income tax rate for the year-to-date period was 15.2%, compared to 12% in 2018 [7] Business Segment Data and Key Metrics Changes - Minerals Management segment saw a significant increase in operating profit due to more wells operated in Ohio, leading to higher royalty income [8] - Coal Mining segment experienced a decrease in operating profit primarily due to higher employee-related costs and reduced earnings from unconsolidated operations [9] - North American Mining segment reported an operating loss this quarter, influenced by higher costs and modest earnings from a new customer contract [11] Market Data and Key Metrics Changes - Anticipated overall deliveries in the Coal Mining segment are expected to decrease in the second half of the year due to changes in customer requirements [12] - Operating profit in the Coal Mining segment is expected to decrease modestly for the full year, with lower income from unconsolidated operations [14] - North American Mining expects operating profit in the second half of the year to improve over the first half, benefiting from new contracts [15] Company Strategy and Development Direction - The company aims to maintain a conservative balance sheet to support long-term contracts and growth initiatives [29] - Investments are being made in business development and infrastructure to support growth in North American Mining [30] - The Minerals Management segment is expected to see substantial increases in royalty income, although at a lower rate than the first half of 2019 [17] Management's Comments on Operating Environment and Future Outlook - Management expects consolidated net income to increase significantly compared to last year, driven by improvements in the first half and anticipated performance in the remainder of the year [18] - The company forecasts capital expenditures to be approximately $28 million for the full year [19] - Consolidated cash on hand at the end of the second quarter was $98.4 million, with debt of $12 million [19] Other Important Information - The company reported a $400,000 loss from transferring certain mine permits, which allowed for a reduction in reclamation liability by $5.4 million [10] - New contracts in North American Mining include a three-year and a 20-year contract, both with new customers [28] Q&A Session Summary Question: Are the new contracts in Florida or other states? - Answer: They are in Florida [24] Question: Do the contracts pertain to limestone or other minerals? - Answer: They are related to aggregates, with a majority being limestone [25][27] Question: What are the plans for the cash on the balance sheet? - Answer: The company aims to maintain a conservative balance sheet, support growth initiatives, fund capital expenditures, and continue paying dividends [29][31] Question: How many acres does the company have in the Utica? - Answer: The company has not disclosed that information [32]

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. ...