NACCO Industries, Inc. (NC) Bundle
A Brief History of NACCO Industries, Inc.
Company Overview
NACCO Industries, Inc. operates primarily in the coal mining and minerals management sectors, along with a focus on natural resources. As of September 30, 2024, the company reported total revenues of $61,656,000 for the third quarter, reflecting a 32.2% increase compared to $46,546,000 in the same quarter of 2023.
Financial Performance
In the third quarter of 2024, NACCO's operating profit was $19,699,000, a significant improvement from a loss of $6,267,000 in the third quarter of 2023. For the first nine months of 2024, the operating profit reached $31,822,000 compared to a loss of $2,703,000 in the same period of 2023.
Revenue Breakdown
The company's revenue sources include:
- Coal Mining: $17,706,000 in Q3 2024, down from $18,665,000 in Q3 2023.
- NAMining: Operating loss of $474,000 in Q3 2024, improved from a profit of $866,000 in Q3 2023.
- Minerals Management: Operating profit of $6,188,000 in Q3 2024, up from $3,610,000 in Q3 2023.
Operational Highlights
For the first nine months of 2024, NACCO reported:
- Total revenues of $167,290,000, compared to $158,037,000 in the same period of 2023.
- Gross profit of $21,280,000, up from $7,590,000 in 2023.
- Net income of $26,177,000, compared to $4,380,000 in the previous year.
Segment Performance
The operational statistics for NACCO's segments as of September 30, 2024, are as follows:
| Segment | Revenue (Q3 2024) | Operating Profit (Q3 2024) | Revenue (Q3 2023) | Operating Profit (Q3 2023) |
|---|---|---|---|---|
| Coal Mining | $17,706,000 | $19,938,000 | $18,665,000 | $(4,697,000) |
| NAMining | N/A | $(474,000) | N/A | $866,000 |
| Minerals Management | N/A | $6,188,000 | N/A | $3,610,000 |
Cash Flow and Investments
For the nine months ended September 30, 2024, NACCO reported net cash used in operating activities of $(2,879,000), down from $63,020,000 in the same period in 2023. The net cash used for investing activities was $31,055,000.
Debt and Capital Structure
NACCO's total liabilities as of September 30, 2024, stood at $200,096,000, with long-term debt amounting to $28,818,000 and long-term revolving credit agreements totaling $37,221,000.
Outlook for 2024
The company anticipates a significant year-over-year increase in operating profit and Segment Adjusted EBITDA for the fourth quarter of 2024, primarily driven by higher earnings at unconsolidated coal mining operations and increased deliveries. Full-year 2024 results are expected to be better compared to 2023.
A Who Owns NACCO Industries, Inc. (NC)
Shareholder Structure
The ownership of NACCO Industries, Inc. (NC) is divided among various classes of common stock, primarily Class A and Class B common stock. As of January 1, 2024, the outstanding shares are as follows:
| Class of Stock | Outstanding Shares | Par Value |
|---|---|---|
| Class A Common Stock | 5,883,000 | $1.00 |
| Class B Common Stock | 1,566,000 | $1.00 |
Major Shareholders
The major shareholders of NACCO Industries include both institutional and individual investors. The following table lists significant ownership percentages as of the last reporting period:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| BlackRock, Inc. | 10.5% | Institutional |
| The Vanguard Group, Inc. | 8.2% | Institutional |
| Dimensional Fund Advisors LP | 7.0% | Institutional |
| J.P. Morgan Asset Management | 5.1% | Institutional |
| Individual Shareholders | 69.2% | Individual |
Recent Stock Performance
As of early 2024, NACCO Industries' stock has shown significant volatility, influenced by market conditions and company-specific news. The stock performance metrics are as follows:
| Metric | Value |
|---|---|
| Current Stock Price (as of January 2024) | $29.54 |
| 52-Week High | $35.00 |
| 52-Week Low | $22.00 |
| Market Capitalization | $175 million |
Dividend Information
NACCO Industries has a history of paying dividends to its shareholders. The latest dividend payments are detailed below:
| Dividend Type | Amount per Share | Payment Date |
|---|---|---|
| Class A Dividend | $0.2275 | March 31, 2024 |
| Class B Dividend | $0.2275 | March 31, 2024 |
Financial Performance Overview
The financial performance of NACCO Industries for the first nine months of 2024 compared to the previous year is summarized below:
| Financial Metric | 2024 | 2023 |
|---|---|---|
| Total Revenues | $167.29 million | $158.04 million |
| Net Income | $26.18 million | $4.38 million |
| Operating Profit | $31.82 million | $(2.70 million) |
Conclusion on Ownership
The ownership structure of NACCO Industries reflects a combination of institutional and individual investors, with substantial holdings in both Class A and Class B common stock. The company's financial performance has improved significantly in 2024, indicating strong operational management and market positioning.
NACCO Industries, Inc. (NC) Mission Statement
Company Overview
NACCO Industries, Inc. operates primarily in the natural resources sector, focusing on mining and minerals management. The company comprises three main segments: Coal Mining, North American Mining (NAMining), and Minerals Management.
Mission Statement
The mission of NACCO Industries, Inc. is to deliver sustainable value through the responsible extraction and management of natural resources while maintaining a commitment to safety, environmental stewardship, and community engagement.
Financial Performance Overview
As of the third quarter of 2024, NACCO Industries reported significant growth in its financial metrics compared to previous periods. Key financial figures include:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $61.7 million | $46.5 million | 32.5% |
| Operating Profit | $19.7 million | $(6.3) million | 415.1% |
| Net Income | $15.6 million | $(3.8) million | 511.6% |
| Earnings Per Share (EPS) | $2.14 | $(0.51) | 519.6% |
Segment Performance
The performance across NACCO's business segments has shown substantial improvement:
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Operating Profit (Loss) |
|---|---|---|---|
| Coal Mining | $38.5 million | $33.2 million | $10.5 million |
| NAMining | $18.2 million | $10.5 million | $6.3 million |
| Minerals Management | $5.0 million | $2.8 million | $2.4 million |
Capital Expenditures
NACCO's planned capital expenditures for 2024 are significant, reflecting its commitment to growth and operational efficiency:
| Segment | 2024 Planned Expenditures |
|---|---|
| Coal Mining | $4 million |
| NAMining | $12 million |
| Minerals Management | $20 million |
| Unallocated Items | $2 million |
Debt and Liquidity
As of September 30, 2024, NACCO's total debt stood at $70.2 million, up from $36.0 million at the end of 2023. The company maintains a revolving credit facility of $200 million, with outstanding borrowings of $37.2 million. The liquidity position is supported by cash and cash equivalents amounting to $63.1 million.
Outlook
NACCO anticipates continued growth across its segments, driven by increased demand for coal and minerals. The company projects operating profit and segment adjusted EBITDA to improve significantly year-over-year, particularly in its Coal Mining and NAMining segments.
How NACCO Industries, Inc. (NC) Works
Business Segments
NACCO Industries, Inc. operates primarily through three segments: Coal Mining, North American Mining (NAMining), and Minerals Management. Each segment contributes differently to the company's overall financial performance.
Financial Performance Overview
As of the third quarter of 2024, NACCO reported total revenues of $61.7 million, up from $46.5 million in the same quarter of 2023, reflecting an increase of 32.5%. The operating profit for the third quarter was $19.7 million compared to a loss of $6.3 million in the prior year.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $61,656 | $46,546 | 32.5% |
| Operating Profit | $19,699 | $(6,267) | N/A |
| Net Income | $15,635 | $(3,832) | N/A |
Coal Mining Segment
The Coal Mining segment has shown significant recovery, with revenues of $32.3 million in Q3 2024, up from $21.7 million in Q3 2023. The operating profit for this segment in the same quarter was $19.9 million, recovering from a loss of $4.7 million the previous year.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenues | $32,326 | $21,722 |
| Operating Profit | $19,938 | $(4,697) |
NAMining Segment
NAMining reported total revenues of $10.4 million in Q3 2024, compared to $8.4 million in Q3 2023, marking a 24.1% increase. However, the operating loss for this segment was $(474) thousand, a decrease from an operating profit of $866 thousand in the prior year.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenues | $10,404 | $8,383 |
| Operating Profit (Loss) | $(474) | $866 |
Minerals Management Segment
The Minerals Management segment has also performed well, with revenues increasing to $8.8 million in Q3 2024 from $5.7 million in Q3 2023. The operating profit rose to $6.2 million from $3.6 million.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenues | $8,849 | $5,747 |
| Operating Profit | $6,188 | $3,610 |
Cash Flow and Liquidity
NACCO’s cash and cash equivalents at the end of Q3 2024 were $63.1 million, down from $85.1 million at the end of 2023. The net cash used for operating activities was $(2.9) million for the nine months ended September 30, 2024, compared to $63.0 million provided in the same period of 2023.
| Cash Flow Metric | 2024 | 2023 |
|---|---|---|
| Net Cash from Operating Activities | $(2,879) | $63,020 |
| Total Cash and Cash Equivalents | $63,052 | $85,109 |
Debt and Financing
NACCO has a secured revolving line of credit with commitments of $200 million, with $37.2 million drawn as of September 30, 2024. The company’s effective interest rate on borrowings was approximately 8.63% for Q3 2024.
| Debt Metric | Amount ($ million) |
|---|---|
| Total Revolving Credit Commitments | $200.0 |
| Borrowings Outstanding | $37.2 |
| Effective Interest Rate | 8.63% |
Outlook for 2024
NACCO anticipates significant year-over-year increases in operating profit and segment adjusted EBITDA for the fourth quarter of 2024, primarily driven by higher earnings in coal mining and improvements in NAMining due to favorable contract amendments.
| Capital Expenditures | Q4 2024 (Est.) | Full Year 2024 (Est.) |
|---|---|---|
| Capital Expenditures | $4 million | $12 million |
As of September 30, 2024, NACCO had a total of 1,836 gross oil wells and 292 gross natural gas wells, representing a significant increase in its mineral interests compared to the previous year.
How NACCO Industries, Inc. (NC) Makes Money
Revenue Sources
NACCO Industries generates revenue primarily through its operations in the mining sector, including coal, oil, and natural gas, as well as through mining services. For the third quarter of 2024, the company reported total revenues of $61.7 million, an increase from $46.5 million in the same period of 2023. This represents a growth of approximately 32.4% year-over-year.
| Source of Revenue | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change (%) |
|---|---|---|---|
| Coal Operations | 32,326 | 21,722 | 48.8 |
| Oil and Natural Gas | 8,849 | 5,747 | 54.7 |
| Management Fees | 15,155 | 12,754 | 18.8 |
| Other Revenues | 5,496 | 7,311 | -24.8 |
Coal Mining Operations
NACCO's coal mining operations are primarily conducted through its subsidiary, MLMC, which supplies coal to the Red Hills Power Plant. The contract with the Tennessee Valley Authority (TVA) is a significant factor in the revenue stream. The coal sales price is indexed to market prices, which allows for adjustments based on inflation and other factors. For the first nine months of 2024, the company reported coal-related revenues of $84.7 million, up from $64.1 million in the same period of 2023.
Oil and Natural Gas Segment
NACCO's Minerals Management segment has shown strong performance in oil and natural gas. As of September 30, 2024, the company reported oil production of 34,480 barrels and natural gas production of 2,235,536 Mcf. The revenue from oil and natural gas reached $19.3 million for the first nine months of 2024 compared to $15.9 million in the same period of 2023.
| Production Data | Q3 2024 | Q3 2023 |
|---|---|---|
| Oil Production (bbl) | 34,480 | 21,690 |
| Natural Gas Production (Mcf) | 2,235,536 | 1,515,433 |
Mining Services
NACCO also provides mining services through its NAMining segment, which includes comprehensive mining services for lithium projects. The Sawtooth Mining segment is expected to contribute significantly once lithium production commences in 2027. For now, the segment reported revenues of $10.4 million in Q3 2024, a growth from $8.4 million in Q3 2023.
Financial Performance
The operating profit for NACCO in the first nine months of 2024 was reported at $31.8 million, a notable increase from a loss of $2.7 million in the same period of 2023. This turnaround is attributed to a combination of higher revenues and lower costs associated with coal inventory management.
| Financial Metrics | 2024 | 2023 |
|---|---|---|
| Operating Profit (Loss) | $31.8 million | ($2.7 million) |
| Net Income | $26.2 million | $4.4 million |
| Earnings Per Share | $3.55 | $0.59 |
Cost Management
NACCO has focused on managing its costs effectively, with selling, general, and administrative expenses increasing only moderately relative to revenue growth. In Q3 2024, these expenses totaled $16.5 million, up slightly from $16.1 million in Q3 2023.
Market Outlook
The company anticipates a positive outlook for its coal mining operations, with expectations of increased deliveries and improved pricing structures. The full-year capital expenditures for 2024 are projected to be around $26 million, with significant investment in mining infrastructure.
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Article updated on 8 Nov 2024
Resources:
- NACCO Industries, Inc. (NC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of NACCO Industries, Inc. (NC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View NACCO Industries, Inc. (NC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.