On November 1, 2023, NACCO Industries Inc (NC, Financial) announced its consolidated results for Q3 2023, reporting a consolidated net loss of $3.8 million, or $0.51/share, compared with a net income of $10.6 million, or $1.45/share, in Q3 2022. The company expects modest Q4 2023 income before tax and net income, with projections for significant full-year 2024 income improvement compared with 2023.
Financial Highlights
The company's Q3 2023 results showed a significant decrease compared to the prior year, primarily due to a decrease in earnings in the Coal Mining and Minerals Management segments. The company had consolidated cash of $128.2 million and debt of $22.5 million as of September 30, 2023. During Q3 2023, the company repurchased approximately 24,800 shares for $0.8 million under an existing authorized share repurchase program.
Coal Mining Results
Coal deliveries for Q3 2023 decreased compared to Q3 2022. Revenues for the Coal Mining segment were $18.665 million in Q3 2023, compared to $22.599 million in Q3 2022. The company attributes the decrease in revenues and operating results to lower customer requirements at Mississippi Lignite Mining Company and lower earnings at unconsolidated operations.
North American Mining Results
North American Mining revenues decreased moderately in Q3 2023 compared to Q3 2022. However, operating profit and Segment Adjusted EBITDA increased significantly over 2022 primarily due to lower employee-related expenses.
Minerals Management Results
Minerals Management revenue, operating profit, and Segment Adjusted EBITDA decreased significantly from Q3 2022 due to a decline in natural gas prices and a decrease in oil prices.
Consolidated Outlook
The company expects Q4 2023 improvements to produce operating profit and net income compared with consolidated Q3 losses. However, Q4 and full-year 2023 consolidated operating results and Adjusted EBITDA are expected to be down significantly from the respective prior-year periods due to substantial decreases at the Coal Mining and Minerals Management segments.
Long-term Growth and Diversification
The company is pursuing growth and diversification by strategically leveraging its core mining and natural resources management skills to build a strong portfolio of affiliated businesses. The Minerals Management segment continues to pursue acquisitions of mineral and royalty interests in the United States. The company remains committed to expanding the North American Mining business while working to improve profitability.
Explore the complete 8-K earnings release (here) from NACCO Industries Inc for further details.
