NACCO Industries(NC)2019-05-01 21:07Financial Performance - Revenues for the three months ended March 31, 2019, increased to 31,200,000 in the same period of 2018[15] - Gross profit for the same period was 5,424,000 in 2018[15] - Net income for Q1 2019 was 8,176,000 in Q1 2018[17] - Basic earnings per share rose to 1.19 in Q1 2018, reflecting an increase of 81.5%[15] - Operating profit for Q1 2019 was 9,721,000 in Q1 2018[15] - The company reported a total comprehensive income of 8,316,000 in Q1 2018, an increase of 81.5%[17] - Total revenues for the three months ended March 31, 2019, were 31,200 million in the same period of 2018[44] - Operating profit for the same period was 9,721,000 in 2018[84] - Net income for the three months ended March 31, 2019, was 8,176,000 in 2018, reflecting an increase of 83.5%[84] Assets and Liabilities - Total assets as of March 31, 2019, were 376,991,000 at the end of 2018, marking a growth of 4.3%[13] - Total liabilities increased to 126,287,000 at the end of 2018, a rise of 1.8%[13] - Cash and cash equivalents decreased to 85,257,000, a decline of 7.5%[13] - The balance of total stockholders' equity as of March 31, 2019, was 250,704,000 at the beginning of the year, indicating a growth of 5.4%[22] - NACCO's total debt was 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 17,597,000 in 2018[84] - The NAMining segment reported revenues of 10,213,000 in 2018[84] - The Minerals Management segment saw a significant revenue increase 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 544,000 in 2019, a change of 4,252,000 in 2019, an increase of 2,452,000 in 2018[89] - Capital expenditures are projected to be approximately 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 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]