nacco-20240331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

_______________________________________________________________________________________________________________________________________________________________________________________________________

FORM 10-Q


(Mark One)
☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended	March 31, 2024


☐						TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
						For the transition period from to

Commission file number 1-9172

NACCO INDUSTRIES, INC.

(Exact name of registrant as specified in its charter)

Delaware

34-1505819

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

5875 Landerbrook Drive

Suite 220

Cleveland,

Ohio

44124-4069

(Address of principal executive offices)

(Zip code)

(440)

229-5151

(Registrant's telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act

Title of each class

Trading Symbol

Name of each exchange on which registered

Class A Common Stock, $1 par value per share

New York Stock Exchange

Class B Common Stock is not publicly listed for trade on any exchange or market system; however, Class B Common Stock is convertible into Class A Common Stock on a share-for-share basis.

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes þ No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act

Large accelerated filer

☐

Accelerated Filer

☑

Non-accelerated filer

☐

Smaller reporting company

☑

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No þ

Number of shares of Class A Common Stock outstanding at April 26, 2024: 5,884,740

Number of shares of Class B Common Stock outstanding at April 26, 2024: 1,565,685

NACCO INDUSTRIES, INC.

TABLE OF CONTENTS

Page Number

Part I.

FINANCIAL INFORMATION

Item 1

Financial Statements

Unaudited Condensed Consolidated Balance Sheets

Unaudited Condensed Consolidated Statements of Operations

Unaudited Condensed Consolidated Statements of Comprehensive Income

Unaudited Condensed Consolidated Statements of Cash Flows

Unaudited Condensed Consolidated Statements of Changes in Equity

Notes to Unaudited Condensed Consolidated Financial Statements

Item 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 3

Quantitative and Qualitative Disclosures About Market Risk

Item 4

Controls and Procedures

Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities

Item 3

Defaults Upon Senior Securities

Item 4

Mine Safety Disclosures

Item 5

Other Information


	MARCH 31 2024		DECEMBER 31 2023
	(In thousands, except share data)
ASSETS
Cash and cash equivalents	$	61,844	$	85,109
Trade accounts receivable	27,958		37,429
Accounts receivable from affiliates	8,361		7,860
Inventories	75,755		77,000
Assets held for sale	7,270		6,466
Federal income tax receivable	845		845
Prepaid insurance	11,248		1,790
Other current assets	19,558		15,499
Total current assets	212,839		231,998
Property, plant and equipment, net	238,906		223,902

Intangibles, net	5,880		6,006
Deferred income taxes	15,113		15,081
Investments in unconsolidated subsidiaries	13,753		12,371
Operating lease right-of-use assets	7,876		8,667

Other non-current assets	43,631		41,683
Total assets	$	537,998	$	539,708
LIABILITIES AND EQUITY
Accounts payable	$	12,377	$	16,702
Accounts payable to affiliates	691		904
Revolving credit agreements	17,000		10,000
Current maturities of long-term debt	4,498		3,953
Asset retirement obligations	13,105		13,114
Accrued payroll	9,069		17,317

Deferred revenue	930		878

Other current liabilities	6,265		7,118
Total current liabilities	63,935		69,986
Long-term debt	28,377		22,003
Operating lease liabilities	7,962		8,782
Asset retirement obligations	38,550		39,499
Pension and other postretirement obligations	5,059		5,183

Liability for uncertain tax positions	5,795		5,795
Other long-term liabilities	6,707		6,120
Total liabilities	156,385		157,368
Stockholders' equity
Common stock:
Class A, par value $1 per share, 5,884,740 shares outstanding (December 31, 2023 - 5,882,845 shares outstanding)	5,885		5,883
Class B, par value $1 per share, convertible into Class A on a one-for-one basis, 1,565,685 shares outstanding (December 31, 2023 - 1,565,819 shares outstanding)	1,566		1,566
Capital in excess of par value	29,073		28,672
Retained earnings	354,667		355,873
Accumulated other comprehensive loss	(9,578)		(9,654)
Total stockholders' equity	381,613		382,340
Total liabilities and equity	$	537,998	$	539,708


	THREE MONTHS ENDED
	MARCH 31
	2024		2023
	(In thousands, except per share data)
Revenues	$	53,289	$	50,141
Cost of sales	46,271		46,784
Gross profit	7,018		3,357
Earnings of unconsolidated operations	13,307		13,824


Operating expenses
Selling, general and administrative expenses	15,453		14,876
Amortization of intangible assets	126		727
Gain on sale of assets	(11)		(236)

	15,568		15,367
Operating profit	4,757		1,814
Other (income) expense
Interest expense	1,111		545
Interest income	(1,127)		(1,155)
Closed mine obligations	455		409
Gain on equity securities	(1,041)		(628)


Other, net	(214)		(1,725)
	(816)		(2,554)
Income before income tax provision (benefit)	5,573		4,368
Income tax provision (benefit)	1,003		(1,324)
Net income	$	4,570	$	5,692

Earnings per share:
Basic earnings per share	$	0.61	$	0.77
Diluted earnings per share	$	0.61	$	0.76

Basic weighted average shares outstanding	7,452		7,428
Diluted weighted average shares outstanding	7,515		7,515


	Class A Common Stock		Class B Common Stock		Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Stockholders' Equity
	(In thousands, except per share data)
Balance, January 1, 2023	$	5,783	$	1,566	$	23,706	$	404,924	$	(9,013)	$	426,966
Stock-based compensation	161		—		403		—		—		564

Net income	—		—		—		5,692		—		5,692
Cash dividends on Class A and Class B common stock: $0.2075 per share	—		—		—		(1,557)		—		(1,557)
Reclassification adjustment to net income, net of tax	—		—		—		—		21		21
Balance, March 31, 2023	$	5,944	$	1,566	$	24,109	$	409,059	$	(8,992)	$	431,686












Balance, January 1, 2024	$	5,883	$	1,566	$	28,672	$	355,873	$	(9,654)	$	382,340
Stock-based compensation	130		—		401		—		—		531
Purchase of treasury shares	(128)		—		—		(4,146)		—		(4,274)

Net income	—		—		—		4,570		—		4,570
Cash dividends on Class A and Class B common stock: $0.2175 per share	—		—		—		(1,630)		—		(1,630)
Reclassification adjustment to net income, net of tax	—		—		—		—		76		76
Balance, March 31, 2024	$	5,885	$	1,566	$	29,073	$	354,667	$	(9,578)	$	381,613


	Contract balances
	Trade accounts receivable		Contract asset (long-term)		Contract liability (current)		Contract liability (long-term)
Balance, January 1, 2024	$	37,429	$	3,712	$	878	$	1,470
Balance, March 31, 2024	27,958		3,500		930		2,117
Increase (decrease)	$	(9,471)	$	(212)	$	52	$	647


	MARCH 31 2024		DECEMBER 31 2023
Coal	$	19,576	$	23,784
Mining supplies	56,179		53,216
Total inventories	$	75,755	$	77,000


			Fair Value Measurements at Reporting Date Using
			Quoted Prices in				Significant
			Active Markets for		Significant Other		Unobservable
			Identical Assets		Observable Inputs		Inputs
Description	Date		(Level 1)		(Level 2)		(Level 3)
	March 31, 2024
Assets:
Equity securities	$	18,284	$	18,284	$	—	$	—

	$	18,284	$	18,284	$	—	$	—




	December 31, 2023
Assets:
Equity securities	$	17,208	$	17,208	$	—	$	—
	$	17,208	$	17,208	$	—	$	—


	THREE MONTHS ENDED
	MARCH 31
	2024		2023
Timing of Revenue Recognition
Goods transferred at a point in time	$	15,108	$	20,146
Services transferred over time	38,181		29,995
Total revenues	$	53,289	$	50,141


	THREE MONTHS ENDED
	MARCH 31
	2024		2023
Revenues
Coal Mining	$	15,545	$	20,653
NAMining	24,483		20,633
Minerals Management	10,401		8,285
Unallocated Items	3,262		1,191
Eliminations	(402)		(621)
Total	$	53,289	$	50,141

Cost of sales
Coal Mining	$	20,943	$	25,878
NAMining	21,671		19,241
Minerals Management	1,364		1,052
Unallocated Items	2,712		1,214
Eliminations	(419)		(601)
Total	$	46,271	$	46,784

Earnings of unconsolidated operations
Coal Mining	$	12,007	$	12,466
NAMining	1,365		1,358
Minerals Management	(65)		—


Total	$	13,307	$	13,824

Operating expenses*
Coal Mining	$	7,026	$	6,928
NAMining	1,822		1,920
Minerals Management	1,042		1,189
Unallocated Items	5,678		5,330

Total	$	15,568	$	15,367

Operating profit (loss)
Coal Mining	$	(417)	$	313
NAMining	2,355		830
Minerals Management	7,930		6,044

SEC Form 10-Q filed by NACCO Industries Inc.