NACCO Industries(NC) - 2019 Q3 - Quarterly Report

Financial Performance - Total revenues for the three months ended September 30, 2019, were $32,603,000, an increase of 3.7$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$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$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]