Good day, ladies and gentlemen. And welcome to the NACCO Industries, Inc., 2014 Fourth Quarter and Full Year Earnings Conference Call. At this time all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions]. As a reminder today’s program is being recorded. I would now like to introduce your host for today’s program, Christina Kmetko, Investor Relations. Please go ahead.

Thank you. Good morning, everyone and welcome to our 2014 fourth quarter earnings call. I am Christina Kmetko and I am responsible for investor relations at NACCO Industries. I will be providing a brief overview of our quarterly results and business outlook and then I will open up the call for your questions. Joining me on today’s call are Al Rankin, Chairman, President and Chief Executive Officer; J. C. Butler, Senior Vice President, Finance, Treasurer and Chief Administrative Officer; and Elizabeth Loveman, NACCO’s Vice President and Controller. Also joining me on today’s call are Rob Benson, President and Chief Executive Officer of North American Coal Corporation; and Greg Trepp, President and Chief Executive Officer of Hamilton Beach and Chief Executive Officer of our Kitchen Collection business. Yesterday we published our fourth quarter and full year 2014 results and filed our 10-K for the year ended December 31, 2014. Also copies of our earnings release and 10-K are available on our website at nacco.com. For anyone who is not able to listen to today’s entire call an archived version of this webcast will be on our website later this afternoon and available for approximately 12 months. 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, in either our prepared remarks or during the following question-and-answer session. We disclaim any obligation to update these forward-looking statements, which may not be updated until our next quarterly earnings conference call, if at all. Additional information regarding these risks and uncertainties were set forth in our earnings release and in our 10-K. Also many amounts discussed during…

[Operator Instructions].

While we're waiting for questions let me provide you with my contact information, if there are any additional follow-up questions you can call me after the conclusion of today's call. My number is 440-229-5130. Are there any questions Jonathan?

I guess we have a question from the line of Brian Letter from Keyman Asset Management [ph]. Your question please?

Hi, good morning.

Good morning, Brian.

Just a couple of questions. Thank you for the additional clarity in the press release regarding Reed. That was very helpful. My question revolves, if the market continues to deteriorate and coal, just given where gas prices are going and stringent regulations out there what’s kind of the game plan if you can get cash costs kind of at a breakeven level? I mean can you shutter the mine and supply it elsewhere, can you -- I mean what can you do to kind of mitigate those losses, because the other core business is very good with the unconsolidated mines and what not. So this seems to be kind of the last piece of the puzzle and that really needs to be fixed.

Let me -- this is Al Rankin. Let me comment to that simply by saying that we're going to look at it very carefully, in principle if the prices and volume drop to a still lower level the cash generation or cash used would be greater than we anticipated and at some point if we justify shuttering some or all of the operations at Reed, we would look at it if those conditions occur. At the moment I think what we see is relatively small cash impact from continuing to operate, as we currently see the situation evolving after the first quarter of this year. We're concerned about the costs however that are generated by the MATS standard in the fourth quarter. So we get to look at our productivity levels and a variety of things. And if that causes us to vary dramatically from our expectation of future ongoing modest cash losses we would take appropriate action. Now there are some cash commitments that we have no matter what to do those relate to the continued closure for us for some operations and some cash activities could take a while to play out. But we will simply look at it every quarter and make sure that we're still on the same path that we think we are now.

Is there any reason why you couldn't get a better pricing structure given the quality of coal, change the contract, change -- is it just the market itself? Could they go somewhere else to get it cheaper, I mean how does that dynamic work?

Well there are two kinds of coals that are involved, one is steam coal and there is a contract structure that governs the prices for the steam coal for a period of time until it reaches renewal and those prices are not going to change despite the MATS standards, and metallurgical coal prices are simply extremely low at this time. And they're governed by the overall Alabama market and there is -- so the answer of your question is we believe that we're maximizing whatever the price opportunities are already.

Is there any financial penalties or anything that locks you into that contract? I mean how long is the contract? I know it wasn’t disclosed but is there anything you can tell us about that contract because that seems to be the one that’s the biggest problem?

No, it’s something that we believe would be a significant issue if we make other decisions than what we expect to make at this time.

Got it. All right moving on to Hamilton Beach, you guys haven’t called out FX headwinds last quarter. You did this quarter I'm assuming you still have the headwinds, is there a number around that?

I'm not sure whether we have a number around that but Jay [indiscernible] that to the extent that we have operations in Canada and in Mexico those are the largest of our international operations and there is some headwind there that is affecting us now to the extent that our costs which are denominated in a currency that mirrors the dollar more or less Chinese currency we are trying to increase our prices to put us in a more even position and we will continue to try to do that as we look forward. But we -- in quarter-on-quarter in the fourth quarter there were some FX issues but they weren’t really significant in that fourth quarter compared to what was already difficult in the fourth quarter of the previous year.

Okay, how much of your sales, I know you guys haven’t really disclosed up on an annual basis is international?

We really don’t disclose those numbers for Hamilton Beach but I’ll just say they are certainly significant.

Okay and then is there any update on the agreement with Sub-Zero Group and how’s that progressing, because new products should be hitting or being rolled out probably as we speak or pretty close?

So we have Greg Trepp on the line and Greg would you like to give an update on the progress of that program?

Yes, certainly. We expect to introduce Wolf Gourmet or Wolf Gourmet line really in the early part of this year and distribution will build as the year goes on quarter-by-quarter and you’ll start to see it more broadly in the marketplace, sort of second quarter, third quarter and certainly in the fourth quarter and our Jamba brand is also rolling out, probably sort of a basically about a quarter behind in terms of impact and visibility to Wolf Gourmet line. The Wolf Gourmet line is online is on track to have a meaningful rollout here this year.

Great, has there been significant amount of costs involved so far to-date for the rollout of those two programs or nothing kind of meaningful in the way that it’s something that will be recouped later down the road?

Well, we had investment cost and the design of the products, I'm not sure that you called them out as hugely significant but they certainly there have been development costs along the way. It’s caused our overall budget to go up a little bit, I think Greg but on balance we think of it as a tolerable [ph] R&D budget for the business and that’s now one piece of it in a way that it wasn’t before. Greg, do you want to add anything to that?

Yeah, I think that’s right Al. I think we’ve been, as we prepare for this rollout we’ve been in investment mode here for about two years and now we’re moving into that point we will have some revenue that should begin to offset that and move us in a very good position as the year goes on.

Great, that was it from me, thank you.

Thank you. [Operator Instructions]. And this does conclude the question-and-answer session. I would like to hand the program back.

Al, did you want to say anything else?

No, I think that concludes what we have to say. I guess if I were going to add anything it would be that we think we are at the beginning of a point now at the coal company where we are going to see progressive improvements over the next few years. There would be significant excluding the impairment at Coal Company in 2015 we will have improvement at Hamilton Beach and we will have improvement at Kitchen Collection and I think as we look into 2017 we see further improvement in each of our businesses. We feel that things are headed in a sound direction in each of the businesses and will be the most difficult situation of course is managing the Centennial business and as we have indicated we will manage that in a highly disciplined way for cash as wisely as we can think it through. That concludes my comments.

Great, thank you everyone for joining us today. We appreciate your interest and if you do have any follow-up questions please feel free to give me a call.