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 Second Quarter Earnings 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] Thank you. Christina Kmetko, you may begin your conference.

Thank you. Good morning, everyone, and welcome to our 2019 second 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 today are J.C. Butler, President and Chief Executive Officer of both NACCO and North American Coal; and Elizabeth Loveman, NACCO’s Vice President and Controller. Yesterday, we published our second quarter 2019 results and filed our 10-Q. Copies of our earnings release and 10-Q are available on our website. For anyone who is not able to listen to today’s entire call, an archived version of this webcast will be on our website later this afternoon and available for approximately 12 months.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 was set forth in our earnings release and in our 10-Q. Now let me discuss our 2019 second quarter. I will cover our consolidated results first and then provide the highlights for each segment. On a consolidated basis, our operating profit increased 17.4% to $9.2 million from $7.8 million in the prior year second quarter. Our consolidated net income increased to $8 million or $1.14 per share, up from $6.4 million or $0.92 per share last year.…

Thank you. [Operator Instructions] Our first question comes from the line of Mitchell Lolley with Nixon Capital. Your line is open.

Good morning.

Good morning.

It looks like momentum at North American Mining continues with two new contract wins in the second quarter. And first question I had about that was, are these new contracts in Florida or are they in other states?

They’re in Florida.

Okay. And are they limestone related or do they pertain to sand or some other mineral?

Aggregates.

Okay.

And – a vast majority of the aggregates in Florida are limestone. But from time-to-time, these guys also produce some other products out of the material that’s mined.

I see. Would you be willing to share if they are with existing customers or entirely new ones?

Yes. So these are two new customers. And I’ll just add, one of them is a three-year contract with a customer and another one is a 20-year contract with a customer. Quite pleased to see a 20-year contract in this business.

And J.C., just for fun, I’ll ask the same question I do every quarter. You have almost $100 million of cash now sitting on the balance sheet, continues to pile up. What do you guys want to do with it?

Well, I will give you the same answer that I’ve given before, but it’s worth talking about it again. As I guess is really obvious by looking at our balance sheet, we think it’s important to maintain a conservative balance sheet. We run a business with a long-term perspective. We like to sign up 20- and 30- and 40-year contracts. And in order to do that, you need to be able to make long-term decisions. And people with a lot of debt get forced into making short-term decisions, and we don’t think that’s the place we want to be. But where do we use the resources that we have? We support our growth initiatives. In the North American Mining business, I know you’ve studied it long enough to see that we, from time-to-time, buy draglines that we use to secure new contracts. That is – actually is the case in one of these contracts that we just recently signed. We’re going to continue to support growth at North American Mining. You saw that in the release that we’re spending money on business development and adding people and systems and infrastructure to support the growth of that business. So money is going there. Of course, we have to fund CapEx at any of the locations where we’re responsible for CapEx. That’s primarily at our consolidated coal mining operations. And we continue to pay a dividend. That’s – I think we’ve paid a dividend since 1956, certainly since 1961 when we were listed on The New York Stock Exchange. We’ve historically increased in, except in those instances where we’ve had a spin-off or something else has happened that causes us to reevaluate it. And we’ve – when appropriate we’ve got share repurchase programs in place.

All right. And lastly, just given that this is a purely public forum, are you willing to disclose how many acres you have in the Utica?

We have not disclosed that. I will tell you, it’s something that we have talked about and we are thinking about, but we’ve not disclosed that.

Okay, well. Thank you, as usual.

Right, thank you. We continue to appreciate your interest in your questions.

Thank you.

[Operator Instructions] There are no further questions at this time. I’ll turn the call back to the presenters.

Great. Thank you very much for joining us today. We do appreciate the interest. And if you have any additional questions, please feel free to give me a call. My number is available on the earnings release. Thanks so much. Have a great day.

Thank you for participating in today’s NACCO Industries second quarter earnings conference call. The call will be available for replay beginning at 11:30 AM Eastern today through 11:59 Eastern on August 8. The conference ID number for the replay is 7883671. Again, the conference ID is 7883671. The number to dial the replay is 800-585-8367. This concludes today’s conference call, and you may now disconnect.