Good morning. My name is Emily and I will be your conference operator today. At this time, I would like to welcome everyone to the NACCO Industries 2017 third quarter earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]. As a reminder, this call is being recorded today, November 2 and will be available until November 9, by dialing (800)-585-8367 and entering pass code 3397937. With that, Christina Kmetko, you may begin your conference.

Thank you. Good morning everyone and welcome to our 2017 third quarter earnings call. I am Christina Kmetko and I am responsible for Investor Relations at NACCO. 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 today are J.C. Butler, President and Chief Executive Office of both NACCO and North American Coal and Elizabeth Loveman, NACCO's Vice President and Controller. Also joining us today for this first earnings call post-spin is Al Rankin, NACCO's Chairman on the Board. Yesterday, we published our third quarter 2017 results and filed our 10-Q. Copies of our earnings release and 10-Q 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 For anyone who is not able to listen to today's entire call, an archived version of this webcast will be on our website later this afternoon and available for approximately 12 months. As 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 conference call, if at all. Additional information regarding these risks and uncertainties were set forth in our earnings release and in our 10-Q. Also, certain amounts discussed during today's call are considered non-GAAP. The non-GAAP reconciliations of these amounts are included in our earnings release available on our website. Now that I have the formalities done, let's talk about the quarter. We have had quite a bit of activity at…

[Operator Instructions]. Our first question comes from the line of Michael Fisherman from Zuckerman. Your line is open.

Hi. Congratulations, guys, on the successful spin-off.

Thank you.

Thank you.

Just one or a couple of questions, if you don't mind. So cash flow from financing activities for 2017, I think you guys are saying you are now going to increase them moderately. Am I right in comparing that versus last quarter when you said it would be down significantly? If that's true, maybe you can help understand why it's so much better?

Are you looking at consolidated or just our North American? You are probably looking at North American Coal, specifically?

Just the coal business separately.

I don't remember exactly what we had, what changed in front of me. I don't remember that we changed it that dramatically. Mike.

Yes. I don't either.

Okay.

Yes. Sorry about that. We can follow-up with that.

And look, we know that fourth quarter CapEx for us is a little higher than we thought it was going to be before. We know that we had another strong quarter of royalties, but there hasn't been that much else changed from a cash standpoint.

Yes. I can't think of anything..

I can't think of anything else.

Okay. And then within the 2018 outlook, you talk about lower NACCO parent operating expenses. Is that the same thing as SG&A within the supplemental information you provide? Or is that something different?

No. That's SG&A.

Okay. Have you guys thought about giving any long-term targets on where that SG&A can be over the three to five years?

On where the SG&A at the parent company level?

Yes. Where it can go over the next three or five years? There is opportunity to reduce that number over time.

Well, I don't know why there would be opportunity to reduce it. I mean, I think we have got some noise that we all need to work through from the prior nine months and I think that's going to continue. Right now, it's where we are going last 9 months, obviously, Al was still on the payroll. We were configured a little differently. We were incurring other expenses. We are still going to have some of that in the fourth quarter. I think we have to let that work its way out. But the functions that happen here in Cleveland and if they weren't here, they would have to be in Dallas and it probably would be more expensive to do it in Dallas than it is here. It's not like we have anything that's duplicative between the two locations.

Okay. Thank you guys. Good luck.

Thank you.

Thanks.

[Operator Instructions]. Your next question comes from the line of Robert Chapman. Please state your company name. Your line is open.

Chapman Capital Family Office. First of all, I want to thank you all very much for completing the spin-off. This has probably been one of the best investments I have made in years. But I have a question about it, even though I have sold almost all of my position, I have a small position left. The value of this stub, which was the parent company less the value of the when issued, spin-off of Hamilton was trading around $20 per share before the confirmation of the spin-off. And then in the brief period since the spin-off, the value of the stub which now is no longer technically a stub, it's a trade stand-alone and its symbol NC gone close to $40 and even $44 which, again, very thankful of, because I made lots of sales during that period. Do you have an explanation why the value has gone up over a 100% despite the fact that the outlook for 2018 does not appear to be salubrious and that coal prices have been stable to down slightly and royalty and production from the mines at North American Coal does not appear to have skyrocketed or has done anything exceptional?

Well, as we were out talking with some investors before the spin actually happened on a little roadshow for NACCO, folks were asking us what our views were about valuations and things like that. My answer generally was, our job is to manage the business and other people who are professional investors who understand the stock market better than me. Why the stock trades up, why it trades down is often a mystery. Your comment about the coal prices, our business model really doesn't have us with any exposure whatsoever to coal prices. Our unconsolidated mines really operate as a service business and our one consolidated mine has a formula price for the coal it sold. So it's not like any of this is driven by coal prices.

No. But don't you agree that the higher coal prices might lead to higher production at the associated mines?

I don't know that it's really connected. Our mines are individually dedicated to a single customer. And it's really just that customer's demand for electricity that determines how much coal we sell to them.

Right.

We really don't have any exposure to the market, either on the supply and demand side or the pricing side.

Right. Well, the reason I ask is the value based on projected $28 estimates of the stock now is two to three times the value of comparables. And again, I couldn't be happier about that. I have maybe 5% of my position left. But I have been scratching my head at my good fortune and I was wondering maybe you guys found a cure for cancer and haven't disclosed it.

That's not what we do. But there is --

I will keep my [indiscernible].

Yes. Thank you.

[Operator Instructions]. And there are no further questions at this time. I turn the call back over to the presenters.

Okay. Do you have anything to wrap up comments?

No.

All right. Thank you for joining us today. And we do appreciate your interest. If you have additional follow-up questions, please call me, (440)-229-5130. Thanks and have a great day.

This concludes today's conference call. You may now disconnect.