NACCO Industries(NC)2019-08-03 02:53Financial Data and Key Metrics Changes - Consolidated operating profit increased by 17.4% to 7.8 million in the prior year second quarter [7] - Consolidated net income rose to 1.14 per share, up from 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 98.4 million, with debt of 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]