NACCO Industries(US:NC)2020-05-07 21:08Financial Performance - Total revenues for the three months ended March 31, 2020, were $37,644,000, a decrease of 6.4% compared to $40,097,000 for the same period in 2019[10]. - Gross profit for the same period was $5,081,000, down 62.1% from $13,385,000 in the prior year[10]. - Net income for Q1 2020 was $6,166,000, a decline of 58.9% from $15,018,000 in Q1 2019[10]. - Basic earnings per share decreased to $0.88 in Q1 2020 from $2.16 in Q1 2019[10]. - Operating profit for the Company was $7,580 million, down 53.8% from $16,373 million in the prior year[61]. - Comprehensive income for Q1 2020 was $6,321,000, down from $15,119,000 in Q1 2019, reflecting a decline of 58.2%[12]. - The effective income tax rate for Q1 2020 was (1.1)%, a significant decrease from 13.4% in Q1 2019[86]. Segment Performance - Coal Mining segment revenue increased to $20.928 million in Q1 2020 from $16.750 million in Q1 2019, reflecting a growth of about 25.0%[36]. - NAMining segment revenue rose to $11.624 million in Q1 2020, compared to $10.775 million in Q1 2019, marking an increase of approximately 7.9%[36]. - Minerals Management segment revenue decreased to $5.241 million in Q1 2020 from $12.686 million in Q1 2019, a decline of about 58.8%[36]. - Operating profit for the Coal Mining segment was $7,185,000, down 28.0% from $10,007,000 in Q1 2019[61]. - The NAMining segment reported an operating profit of $731,000, compared to $65,000 in the same period last year, indicating significant growth[61]. - The Minerals Management segment's operating profit decreased to $4,267,000 from $11,669,000, reflecting a decline of 63.4% year-over-year[61]. Cash and Assets - Cash and cash equivalents at the end of Q1 2020 were $93,726,000, down from $122,892,000 at the end of 2019[7]. - Total assets decreased to $435,920,000 as of March 31, 2020, from $444,773,000 at the end of 2019[7]. - Total current assets decreased to $188,927,000 as of March 31, 2020, from $200,668,000 at the end of 2019, a decline of 5.8%[7]. - Total liabilities reduced to $142,083,000 from $155,381,000 at the end of 2019[7]. - The balance of trade accounts receivable increased to $21.122 million by March 31, 2020, up from $15.444 million at the beginning of the year, reflecting an increase of about 36.7%[37]. Capital Expenditures and Debt - Capital expenditures for the Company totaled $5,358 million, an increase of 26.0% compared to $4,252 million in the same quarter of 2019[61]. - The company added $6,232,000 to long-term debt during Q1 2020, compared to $1,206,000 in the same period last year[14]. - NACCO's total debt increased to $34.582 million as of March 31, 2020, compared to $24.943 million at the end of 2019[102]. Inventory and Receivables - The Company reported a total inventory of $35.996 million as of March 31, 2020, down from $40.465 million at the end of 2019, indicating a reduction of approximately 11.5%[40]. - The Company has no contract assets recognized from the costs to obtain or fulfill a contract with a customer, indicating a focus on managing liabilities[39]. Dividends and Stock Repurchase - The company declared cash dividends of $0.1900 per share in Q1 2020, totaling $1,339,000[15]. - The Company suspended its stock repurchase program in March 2020 due to uncertainties surrounding the COVID-19 pandemic, having repurchased 32,286 shares for $1.0 million in Q1 2020[46]. Future Outlook - The Company expects to recognize an additional $0.7 million in revenue related to contract liabilities remaining at March 31, 2020, in 2020, with further amounts in subsequent years[38]. - The company anticipates a significant decrease in consolidated net income for 2020 compared to 2019, mainly due to lower results from the Minerals Management segment and the absence of prior income from a venture in India[125]. - The evolving COVID-19 pandemic and low natural gas prices may adversely affect customer demand and the company's overall financial outlook for 2020[115].