Earnings Labs

NACCO Industries, Inc. (NC)

Q4 2012 Earnings Call· Thu, Mar 7, 2013

$49.59

-0.84%

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Transcript

Operator

Operator

Good day, ladies and gentlemen, and welcome to the Quarter 4 2012 NACCO Industries earnings conference call. My name is (Sharon) and I’m your operator for today. At this time, all participants are in listen-only mode. We will conduct a question-and-answer session towards the end of this conference. (Operator Instructions) As a reminder, this call is being recorded for replay purposes. I would like to turn the call over to Christine Kmetko. Please proceed, ma’am.

Christine Kmetko

Analyst

Thank you. Good morning, everyone, and thank you for joining us today. Yesterday, a press release was distributed outlining NACCO’s results for the fourth quarter and year ended December 31, 2012. If you have no received a copy of this earnings release and would like a copy of the 10-K, you may obtain copies of these items on our website at nacco.com. Our conference call today will be hosted by Al Rankin, Chairman, President and Chief Executive Officer of NAACO Industries. Also in attendance representing NACCO Industries are Mark Barrus, NACCO’s new Vice President and Controller, and JC Butler, Senior Vice President Finance, Treasurer and Chief Administrative Officer. Al will provide an overview of the quarter and then open up the call to your questions. Before we begin, I would like to remind participants that this conference call may contain certain forward-looking statements. These statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements made here today. Additional information regarding these risks and uncertainties are set forth in our earnings release in our 10-K. In addition, certain amounts discussed during this call are considered non-GAAP numbers. The non-GAAP reconciliation of these amounts are included in our 2012 fourth quarter earnings release, which is available on the website. I would now like to turn the call over to Al Rankin. Al.

Al Rankin

Analyst

Good morning to all of you. NACCO Industries had income of $23.7 million or $2.81 per share and revenues of $318 million for the fourth quarter of 2012. That compared with income from continuing operations of $29.9 million or $3.56 per share and revenues of $274 million for the fourth quarter of the previous year. As you know, NACCO front office materials handling subsidiary in September of 2012 and as a result, the attached – the financial statements that are attached to the release that are related to 2012 and 2011 financial information have been reclassified to reflect the materials handling results as discontinued operations. A couple of highlights, North American Coal’s fourth quarter net income declined to $8.3 million from $11.9 million in 2011 but it’s important to note that fourth quarter income before taxes increased to $13.3 million from $13.2 million, so it’s all in the tax provision, which I’ll discuss in more detail later. The Hamilton Beach’s net income increased to $12.7 million from $12 million the year earlier in the fourth quarter in Kitchen Collection’s fourth quarter net income declined to $4.1 million from $7.6 million the year before. Importantly, at NACCO and other, which includes the parent company operations, there was a loss of $4.4 million for the fourth quarter of 2012. That’s significantly higher than the loss of $2.3 million the year earlier and the increase in that loss was primarily the result of an increase of $2 million after tax related to an asset retirement obligation for water treatment at the company’s non-operating subsidiary (Belair) Corporation. For the full year 2012, the company reported income from its continuing operations of $42.2 million or $5.02 a share and that compared with revenues of $873 million. That compared with income from the previous year of…

Operator

Operator

(Operator Instructions) We have no questions at the moment.

Al Rankin

Analyst

I think in that case we’ll just probably conclude by saying that the new NACCO Industries, having spun off Hyster-Yale, we believe is well positioned for the future years and the strategic initiatives that are underway at the coal company and at Hamilton Beach, which are called out in the news release, really provide a guideline perspective on opportunities that we hope to achieve over the course of the next few years. And at Kitchen Collection, we believe there is a very solid core business and, in due course, consumer sentiment and economic prospects will improve and results will turn up more significantly than we expect in 2013 itself, although we do expect better results than in 2012. And that concludes our thoughts. We appreciate all of you being on the line. Thank you.

Christine Kmetko

Analyst

Thank you for joining us today. We appreciate your interest. If you do have any additional questions, please contact me. Please note my new phone number is 440-229-5130. Thanks so much.

Operator

Operator

Thank you. Ladies and gentlemen, to hear the replay of this call, which will be available within the hour, please call 617-801-6888 or 888-286-8010. The replay code will be 31851384 followed by the pound sign. Thank you. This concludes the presentation. You may now disconnect. Good day.