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(Mark One)
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þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the quarterly period ended September 30, 2013
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from
to
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NACCO INDUSTRIES, INC.
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(Exact name of registrant as specified in its charter)
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DELAWARE
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34-1505819
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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5875 LANDERBROOK DRIVE, SUITE 220, CLEVELAND, OHIO
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44124-4069
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(Address of principal executive offices)
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(Zip code)
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(440) 229-5151
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(Registrant's telephone number, including area code)
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N/A
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(Former name, former address and former fiscal year, if changed since last report)
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Large accelerated filer
o
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Accelerated filer
þ
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Non-accelerated filer
o
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Smaller reporting company
o
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(Do not check if a smaller reporting company)
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Page Number
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SEPTEMBER 30
2013 |
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DECEMBER 31
2012 |
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SEPTEMBER 30
2012 |
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(In thousands, except share data)
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||||||||||
ASSETS
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Cash and cash equivalents
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$
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79,353
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$
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139,855
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$
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155,714
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Accounts receivable, net
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107,630
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121,147
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104,489
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Accounts receivable from affiliates
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30,551
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28,144
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3,242
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Inventories, net
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207,349
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169,440
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205,355
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Deferred income taxes
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14,428
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15,335
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23,930
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Prepaid expenses and other
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15,644
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12,921
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16,411
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Total current assets
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454,955
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486,842
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509,141
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Property, plant and equipment, net
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193,864
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182,985
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193,544
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Goodwill
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3,973
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6,399
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7,456
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Coal supply agreements and other intangibles, net
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60,617
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63,353
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71,884
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Other non-current assets
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64,680
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36,727
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39,992
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Total assets
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$
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778,089
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$
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776,306
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$
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822,017
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LIABILITIES AND EQUITY
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Accounts payable
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$
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141,919
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$
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127,469
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$
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134,401
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Revolving credit agreements of subsidiaries - not guaranteed by the parent company
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37,812
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35,288
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41,955
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Current maturities of long-term debt of subsidiaries - not guaranteed by the parent company
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7,850
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6,961
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6,957
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Accrued payroll
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22,469
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24,288
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18,002
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Other current liabilities
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40,418
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33,163
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42,524
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Total current liabilities
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250,468
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227,169
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243,839
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Long-term debt of subsidiaries - not guaranteed by the parent company
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129,123
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135,448
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158,404
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Mine closing reserves
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29,212
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29,033
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29,773
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Pension and other postretirement obligations
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15,466
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24,394
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24,491
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Long-term deferred income taxes
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23,074
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27,313
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23,995
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Other long-term liabilities
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55,025
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51,618
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50,369
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Total liabilities
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502,368
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494,975
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530,871
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Stockholders' equity
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Common stock:
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Class A, par value $1 per share, 6,356,996 shares outstanding (December 31, 2012 - 6,770,689 shares outstanding; September 30, 2012 - 6,803,999 shares outstanding)
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6,357
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6,771
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6,804
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Class B, par value $1 per share, convertible into Class A on a one-for-one basis, 1,581,406 shares outstanding (December 31, 2012 - 1,582,310 shares outstanding; September 30, 2012 - 1,590,311 shares outstanding)
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1,581
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1,582
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1,590
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Capital in excess of par value
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367
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24,612
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24,946
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Retained earnings
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327,746
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313,450
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321,297
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Accumulated other comprehensive loss
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(60,330
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(65,084
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(63,491
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Total stockholders' equity
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275,721
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281,331
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291,146
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Total liabilities and equity
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$
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778,089
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$
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776,306
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$
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822,017
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THREE MONTHS ENDED
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NINE MONTHS ENDED
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SEPTEMBER 30
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SEPTEMBER 30
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2013
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2012
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2013
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2012
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(In thousands, except per share data)
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Revenues
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$
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228,614
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$
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210,067
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$
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620,683
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$
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555,181
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Cost of sales
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179,395
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157,840
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477,573
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414,138
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Gross profit
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49,219
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52,227
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143,110
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141,043
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Earnings of unconsolidated mines
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11,808
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11,471
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34,187
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34,056
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Operating expenses
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Selling, general and administrative expenses
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43,317
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51,203
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141,751
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148,135
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Amortization of intangible assets
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1,076
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767
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2,736
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1,840
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(Gain) loss on sale of assets
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(48
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)
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(3,108
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)
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303
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(5,381
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)
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||||
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44,345
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48,862
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144,790
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144,594
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Operating profit
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16,682
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14,836
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32,507
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30,505
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Other (income) expense
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|||||||
Interest expense
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1,044
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1,509
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3,496
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4,720
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Income from other unconsolidated affiliates
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(286
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)
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(383
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)
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(1,013
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)
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(1,166
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)
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Closed mine obligations
|
266
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|
273
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|
943
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1,467
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|
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Other net, including interest income
|
174
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|
(238
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)
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|
517
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|
229
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|
||||
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1,198
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1,161
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3,943
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5,250
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|
||||
Income from continuing operations before income tax provision
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15,484
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|
13,675
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28,564
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25,255
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|
||||
Income tax provision
|
3,159
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|
3,299
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6,670
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|
6,724
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|
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Income from continuing operations, net of tax
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12,325
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|
10,376
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21,894
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18,531
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Income from discontinued operations
, net of $1,154 tax benefit and $7,599 tax expense in the three and nine months ended September 30, 2012, respectively
|
—
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27,728
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—
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66,535
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|
||||
Net income
|
$
|
12,325
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|
$
|
38,104
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$
|
21,894
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$
|
85,066
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|||||||
Basic Earnings per Share:
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||||||||
Continuing operations
|
$
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1.54
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$
|
1.24
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$
|
2.68
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$
|
2.21
|
|
Discontinued operations
|
—
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3.29
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—
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7.93
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|
||||
Basic earnings per share
|
$
|
1.54
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|
$
|
4.53
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$
|
2.68
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$
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10.14
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||||||||
Diluted Earnings per Share:
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||||||||
Continuing operations
|
$
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1.54
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$
|
1.23
|
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$
|
2.67
|
|
|
$
|
2.21
|
|
Discontinued operations
|
—
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3.29
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—
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7.91
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||||
Diluted earnings per share
|
$
|
1.54
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|
$
|
4.52
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$
|
2.67
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$
|
10.12
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||||||||
Dividends per share
|
$
|
0.2500
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|
$
|
0.5475
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|
$
|
0.7500
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|
$
|
1.6275
|
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|||||||
Basic Weighted Average Shares Outstanding
|
7,988
|
|
|
8,391
|
|
|
8,173
|
|
|
8,385
|
|
||||
Diluted Weighted Average Shares Outstanding
|
7,996
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|
|
8,409
|
|
|
8,193
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|
|
8,401
|
|
|
THREE MONTHS ENDED
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NINE MONTHS ENDED
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||||||||||||
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SEPTEMBER 30
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SEPTEMBER 30
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||||||||||||
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2013
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2012
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2013
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2012
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||||||||
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(In thousands)
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|
||||||||||||||
Net income
|
$
|
12,325
|
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|
$
|
38,104
|
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|
$
|
21,894
|
|
|
$
|
85,066
|
|
|
Foreign currency translation adjustment
|
130
|
|
|
6,450
|
|
|
358
|
|
|
575
|
|
|
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Current period cash flow hedging activity, net of $88 tax benefit and $344 tax expense in the three and nine months ended September 30, 2013, respectively, and $2,334 and $2,350 tax expense in the three and nine months ended September 30, 2012, respectively.
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(124
|
)
|
|
5,209
|
|
|
573
|
|
|
7,483
|
|
|
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Reclassification of hedging activities into earnings, net of $24 tax expense and $146 tax benefit in the three and nine months ended September 30, 2013, respectively, and $305 and $2,598 tax expense in the three and nine months ended September 30, 2012, respectively.
|
(38
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)
|
|
(2,586
|
)
|
|
235
|
|
|
(2,808
|
)
|
|
||||
Current period pension and postretirement plan adjustment, net of $3,497 tax expense in both the three and nine months ended September 30, 2013, respectively.
|
3,652
|
|
|
—
|
|
|
3,652
|
|
|
—
|
|
|
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Current period curtailment gain into earnings, net of $578 tax expense in both the three and nine months ended September 30, 2013, respectively.
|
(1,123
|
)
|
|
—
|
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|
(1,123
|
)
|
|
—
|
|
|
||||
Reclassification of pension and postretirement adjustments into earnings, net of $109 and $517 tax benefit in the three and nine months ended September 30, 2013, respectively, and $491 and $1,605 tax benefit in the three and nine months ended September 30, 2012, respectively.
|
254
|
|
|
1,926
|
|
|
1,059
|
|
|
5,823
|
|
|
||||
Comprehensive income
|
$
|
15,076
|
|
|
$
|
49,103
|
|
|
$
|
26,648
|
|
|
$
|
96,139
|
|
|
|
NINE MONTHS ENDED
|
||||||
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SEPTEMBER 30
|
||||||
|
2013
|
|
2012
|
||||
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(In thousands)
|
||||||
Operating activities
|
|
|
|
|
|||
Net income
|
$
|
21,894
|
|
|
$
|
85,066
|
|
Income from discontinued operations
|
—
|
|
|
(66,535
|
)
|
||
Income from continuing operations
|
21,894
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|
|
18,531
|
|
||
Adjustments to reconcile from net income to net cash provided by operating activities:
|
|
|
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|
|||
Depreciation, depletion and amortization
|
16,377
|
|
|
11,403
|
|
||
Amortization of deferred financing fees
|
442
|
|
|
967
|
|
||
Deferred income taxes
|
(7,401
|
)
|
|
4,275
|
|
||
Loss (gain) on sale of assets
|
303
|
|
|
(5,381
|
)
|
||
Other non-current liabilities
|
368
|
|
|
2,390
|
|
||
Other
|
(16,468
|
)
|
|
(90
|
)
|
||
Working capital changes, excluding the effect of business acquisitions:
|
|
|
|
|
|||
Accounts receivable
|
12,199
|
|
|
(7,323
|
)
|
||
Inventories
|
(37,776
|
)
|
|
(44,229
|
)
|
||
Other current assets
|
(2,548
|
)
|
|
(4,643
|
)
|
||
Accounts payable
|
13,843
|
|
|
35,378
|
|
||
Other current liabilities
|
5,750
|
|
|
(594
|
)
|
||
Net cash provided by operating activities of continuing operations
|
6,983
|
|
|
10,684
|
|
||
Net cash provided by operating activities of discontinued operations
|
—
|
|
|
68,679
|
|
||
|
|
|
|
|
|||
Investing activities
|
|
|
|
|
|||
Expenditures for property, plant and equipment
|
(24,905
|
)
|
|
(39,588
|
)
|
||
Acquisition of business
|
—
|
|
|
(64,797
|
)
|
||
Proceeds from the sale of assets
|
1,316
|
|
|
34,539
|
|
||
Proceeds from notes receivable
|
—
|
|
|
14,494
|
|
||
Cash in escrow for investment
|
(5,000
|
)
|
|
—
|
|
||
Other
|
(261
|
)
|
|
(147
|
)
|
||
Net cash used for investing activities of continuing operations
|
(28,850
|
)
|
|
(55,499
|
)
|
||
Net cash used for investing activities of discontinued operations
|
—
|
|
|
(10,469
|
)
|
||
|
|
|
|
|
|||
Financing activities
|
|
|
|
|
|||
Additions to long-term debt
|
1,511
|
|
|
25,000
|
|
||
Reductions of long-term debt
|
(11,762
|
)
|
|
(54,607
|
)
|
||
Net additions to revolving credit agreements
|
5,136
|
|
|
86,934
|
|
||
Cash dividends paid
|
(6,133
|
)
|
|
(13,651
|
)
|
||
Cash dividends received from Hyster-Yale
|
—
|
|
|
5,000
|
|
||
Financing fees paid
|
—
|
|
|
(1,400
|
)
|
||
Purchase of treasury shares
|
(27,355
|
)
|
|
(577
|
)
|
||
Other
|
(26
|
)
|
|
7
|
|
||
Net cash provided by (used for) financing activities of continuing operations
|
(38,629
|
)
|
|
46,706
|
|
||
Net cash used for financing activities of discontinued operations
|
—
|
|
|
(98,913
|
)
|
||
|
|
|
|
|
|||
Effect of exchange rate changes on cash of continuing operations
|
(6
|
)
|
|
39
|
|
||
Effect of exchange rate changes on cash of discontinued operations
|
—
|
|
|
838
|
|
||
Cash and cash equivalents
|
|
|
|
|
|||
Decrease for the period
|
(60,502
|
)
|
|
(37,935
|
)
|
||
Increase related to discontinued operations
|
—
|
|
|
39,865
|
|
||
Balance at the beginning of the period
|
139,855
|
|
|
153,784
|
|
||
Balance at the end of the period
|
$
|
79,353
|
|
|
$
|
155,714
|
|
|
|
|
|
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Class A Common Stock
|
Class B Common Stock
|
Capital in Excess of Par Value
|
Retained Earnings
|
Foreign Currency Translation Adjustment
|
Deferred Gain (Loss) on Cash Flow Hedging
|
Pension and Postretirement Plan Adjustment
|
Total Stockholders' Equity
|
Noncontrolling Interest
|
Total Equity
|
||||||||||||||||||||||||||
|
(In thousands, except per share data)
|
|||||||||||||||||||||||||||||||||||
Balance, January 1, 2012
|
$
|
6,778
|
|
$
|
1,596
|
|
$
|
22,786
|
|
$
|
619,614
|
|
|
$
|
13,230
|
|
|
$
|
2,598
|
|
|
$
|
(90,392
|
)
|
|
$
|
576,210
|
|
|
$
|
882
|
|
|
$
|
577,092
|
|
Stock-based compensation
|
26
|
|
—
|
|
2,731
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,757
|
|
|
—
|
|
|
2,757
|
|
||||||||||
Purchase of treasury shares
|
(6
|
)
|
—
|
|
(571
|
)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(577
|
)
|
|
—
|
|
|
(577
|
)
|
||||||||||
Conversion of Class B to Class A shares
|
6
|
|
(6
|
)
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Net income
|
—
|
|
—
|
|
—
|
|
85,066
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
85,066
|
|
|
—
|
|
|
85,066
|
|
||||||||||
Cash dividends on Class A and Class B common stock: $1.6275 per share
|
—
|
|
—
|
|
—
|
|
(13,651
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13,651
|
)
|
|
—
|
|
|
(13,651
|
)
|
||||||||||
Stock dividend
|
—
|
|
—
|
|
—
|
|
(369,732
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(369,732
|
)
|
|
(882
|
)
|
|
(370,614
|
)
|
||||||||||
Current period other comprehensive income (loss)
|
—
|
|
—
|
|
—
|
|
—
|
|
|
575
|
|
|
7,483
|
|
|
—
|
|
|
8,058
|
|
|
—
|
|
|
8,058
|
|
||||||||||
Reclassification adjustment to net income
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
|
(2,808
|
)
|
|
5,823
|
|
|
3,015
|
|
|
—
|
|
|
3,015
|
|
||||||||||
Balance, September 30, 2012
|
$
|
6,804
|
|
$
|
1,590
|
|
$
|
24,946
|
|
$
|
321,297
|
|
|
$
|
13,805
|
|
|
$
|
7,273
|
|
|
$
|
(84,569
|
)
|
|
$
|
291,146
|
|
|
$
|
—
|
|
|
$
|
291,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Balance, January 1, 2013
|
$
|
6,771
|
|
$
|
1,582
|
|
$
|
24,612
|
|
$
|
313,450
|
|
|
$
|
13,640
|
|
|
$
|
7,499
|
|
|
$
|
(86,223
|
)
|
|
$
|
281,331
|
|
|
$
|
—
|
|
|
$
|
281,331
|
|
Stock-based compensation
|
80
|
|
—
|
|
1,150
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,230
|
|
|
—
|
|
|
1,230
|
|
||||||||||
Purchase of treasury shares
|
(495
|
)
|
—
|
|
(25,395
|
)
|
(1,465
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(27,355
|
)
|
|
—
|
|
|
(27,355
|
)
|
||||||||||
Conversion of Class B to Class A shares
|
1
|
|
(1
|
)
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Net income
|
—
|
|
—
|
|
—
|
|
21,894
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,894
|
|
|
—
|
|
|
21,894
|
|
||||||||||
Cash dividends on Class A and Class B common stock: $0.7500 per share
|
—
|
|
—
|
|
—
|
|
(6,133
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,133
|
)
|
|
—
|
|
|
(6,133
|
)
|
||||||||||
Current period other comprehensive income
|
—
|
|
—
|
|
—
|
|
—
|
|
|
358
|
|
|
573
|
|
|
3,652
|
|
|
4,583
|
|
|
—
|
|
|
4,583
|
|
||||||||||
Current period curtailment gain
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
(1,123
|
)
|
|
(1,123
|
)
|
|
|
|
(1,123
|
)
|
|||||||||||||
Reclassification adjustment to net income
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
|
235
|
|
|
1,059
|
|
|
1,294
|
|
|
—
|
|
|
1,294
|
|
||||||||||
Balance, September 30, 2013
|
$
|
6,357
|
|
$
|
1,581
|
|
$
|
367
|
|
$
|
327,746
|
|
|
$
|
13,998
|
|
|
$
|
8,307
|
|
|
$
|
(82,635
|
)
|
|
$
|
275,721
|
|
|
$
|
—
|
|
|
$
|
275,721
|
|
|
Three Months Ended September 30, 2012
|
|
Nine Months Ended September 30, 2012
|
||||
|
(In millions, except per share data)
|
||||||
Revenues
|
$
|
585.6
|
|
|
$
|
1,817.1
|
|
Net income
|
$
|
27.7
|
|
|
$
|
66.5
|
|
Basic earnings per share
|
$
|
3.29
|
|
|
$
|
7.93
|
|
Diluted earnings per share
|
$
|
3.29
|
|
|
$
|
7.91
|
|
|
SEPTEMBER 30
2013 |
|
DECEMBER 31
2012 |
|
SEPTEMBER 30
2012 |
||||||
Coal - NACoal
|
$
|
21,048
|
|
|
$
|
17,311
|
|
|
$
|
16,429
|
|
Mining supplies - NACoal
|
17,131
|
|
|
13,587
|
|
|
12,783
|
|
|||
Total inventories at weighted average cost
|
38,179
|
|
|
30,898
|
|
|
29,212
|
|
|||
Sourced inventories - HBB
|
112,250
|
|
|
84,814
|
|
|
113,999
|
|
|||
Retail inventories - KC
|
56,920
|
|
|
53,728
|
|
|
62,144
|
|
|||
Total inventories at FIFO
|
169,170
|
|
|
138,542
|
|
|
176,143
|
|
|||
|
$
|
207,349
|
|
|
$
|
169,440
|
|
|
$
|
205,355
|
|
|
|
Amount Reclassified from AOCI
|
|
|
||||||
Details about AOCI Components
|
|
Three Months Ended September 30, 2013
|
|
Nine Months Ended September 30, 2013
|
|
Location of loss (gain) reclassified from AOCI into income
|
||||
|
|
(In thousands)
|
|
|
||||||
Loss (gain) on cash flow hedging
|
|
|
|
|
|
|
||||
Foreign exchange contracts
|
|
$
|
(62
|
)
|
|
$
|
(79
|
)
|
|
Cost of sales
|
Interest rate contracts
|
|
—
|
|
|
460
|
|
|
Interest expense
|
||
|
|
(62
|
)
|
|
381
|
|
|
Total before income tax expense
|
||
|
|
(24
|
)
|
|
146
|
|
|
Income tax (expense) benefit
|
||
|
|
$
|
(38
|
)
|
|
$
|
235
|
|
|
Net of tax
|
|
|
|
|
|
|
|
||||
Pension and postretirement plan
|
|
|
|
|
|
|
||||
Actuarial loss
|
|
$
|
396
|
|
|
$
|
1,709
|
|
|
(a)
|
Prior-service credit
|
|
(33
|
)
|
|
(133
|
)
|
|
(a)
|
||
|
|
363
|
|
|
1,576
|
|
|
Total before income tax expense
|
||
|
|
109
|
|
|
517
|
|
|
Income tax benefit
|
||
|
|
$
|
254
|
|
|
$
|
1,059
|
|
|
Net of tax
|
|
|
|
|
|
|
|
||||
Total reclassifications for the period
|
|
$
|
216
|
|
|
$
|
1,294
|
|
|
Net of tax
|
Notional Amount
|
|
Average Fixed Rate
|
|
|
|||||||||||||||||
SEPTEMBER 30
2013 |
|
DECEMBER 31
2012 |
|
SEPTEMBER 30
2012 |
|
SEPTEMBER 30
2013 |
|
DECEMBER 31
2012 |
|
SEPTEMBER 30
2012 |
|
Remaining Term at September 30, 2013
|
|||||||||
(In millions)
|
|
|
|
|
|
|
|
||||||||||||||
$
|
20.0
|
|
|
$
|
25.0
|
|
|
$
|
25.0
|
|
|
1.4
|
%
|
|
4.0
|
%
|
|
4.0
|
%
|
|
delayed contracts extending to January 2020
|
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
|
|
|
|
Quoted Prices in
|
|
|
|
Significant
|
||||||||
|
|
|
|
Active Markets for
|
|
Significant Other
|
|
Unobservable
|
||||||||
|
|
|
|
Identical Assets
|
|
Observable Inputs
|
|
Inputs
|
||||||||
Description
|
|
September 30, 2013
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swap agreements
|
|
$
|
645
|
|
|
$
|
—
|
|
|
$
|
645
|
|
|
$
|
—
|
|
Foreign currency exchange contracts
|
|
111
|
|
|
—
|
|
|
111
|
|
|
—
|
|
||||
|
|
$
|
756
|
|
|
$
|
—
|
|
|
$
|
756
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Contingent consideration
|
|
$
|
1,572
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,572
|
|
|
|
$
|
1,572
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,572
|
|
|
|
|
Contingent Consideration
|
||
Balance at
|
January 1, 2013
|
|
$
|
4,000
|
|
Change in estimate
|
|
(2,426
|
)
|
||
Accretion expense
|
|
35
|
|
||
Payments
|
|
(37
|
)
|
||
Balance at
|
September 30, 2013
|
|
$
|
1,572
|
|
|
THREE MONTHS ENDED
|
|
NINE MONTHS ENDED
|
||||||||||||
|
SEPTEMBER 30
|
|
SEPTEMBER 30
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Revenues
|
$
|
152,999
|
|
|
$
|
144,237
|
|
|
$
|
433,937
|
|
|
$
|
413,619
|
|
Gross profit
|
$
|
18,847
|
|
|
$
|
18,973
|
|
|
$
|
55,859
|
|
|
$
|
56,372
|
|
Income before income taxes
|
$
|
12,172
|
|
|
$
|
11,920
|
|
|
$
|
35,650
|
|
|
$
|
35,517
|
|
Net income
|
$
|
9,471
|
|
|
$
|
9,895
|
|
|
$
|
27,463
|
|
|
$
|
28,292
|
|
|
2013
|
||
Balance at January 1
|
$
|
4,269
|
|
Current year warranty expense
|
5,915
|
|
|
Payments made
|
(6,022
|
)
|
|
Balance as of September 30
|
$
|
4,162
|
|
|
THREE MONTHS ENDED
|
|
NINE MONTHS ENDED
|
||||||||||||
|
SEPTEMBER 30
|
|
SEPTEMBER 30
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Income from continuing operations before income tax provision:
|
$
|
15,484
|
|
|
$
|
13,675
|
|
|
$
|
28,564
|
|
|
$
|
25,255
|
|
Statutory taxes at 35%
|
$
|
5,419
|
|
|
$
|
4,786
|
|
|
$
|
9,997
|
|
|
$
|
8,839
|
|
Discrete items:
|
|
|
|
|
|
|
|
||||||||
Other
|
(727
|
)
|
|
(344
|
)
|
|
(729
|
)
|
|
(323
|
)
|
||||
|
(727
|
)
|
|
(344
|
)
|
|
(729
|
)
|
|
(323
|
)
|
||||
Other permanent items:
|
|
|
|
|
|
|
|
|
|
|
|
||||
NACoal percentage depletion
|
(1,728
|
)
|
|
(1,462
|
)
|
|
(3,025
|
)
|
|
(2,411
|
)
|
||||
Other
|
195
|
|
|
319
|
|
|
427
|
|
|
619
|
|
||||
|
(1,533
|
)
|
|
(1,143
|
)
|
|
(2,598
|
)
|
|
(1,792
|
)
|
||||
Income tax provision
|
$
|
3,159
|
|
|
$
|
3,299
|
|
|
$
|
6,670
|
|
|
$
|
6,724
|
|
Effective income tax rate
|
20.4
|
%
|
|
24.1
|
%
|
|
23.4
|
%
|
|
26.6
|
%
|
|
THREE MONTHS ENDED
|
|
NINE MONTHS ENDED
|
|
||||||||||||
|
SEPTEMBER 30
|
|
SEPTEMBER 30
|
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
||||||||
U.S. Pension and Postretirement Health Care
|
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
20
|
|
|
$
|
20
|
|
|
$
|
58
|
|
|
$
|
59
|
|
|
Interest cost
|
698
|
|
|
765
|
|
|
2,164
|
|
|
2,411
|
|
|
||||
Expected return on plan assets
|
(1,100
|
)
|
|
(1,056
|
)
|
|
(3,403
|
)
|
|
(3,291
|
)
|
|
||||
Amortization of actuarial loss
|
365
|
|
|
680
|
|
|
1,617
|
|
|
2,133
|
|
|
||||
Amortization of prior service credit
|
(33
|
)
|
|
(64
|
)
|
|
(133
|
)
|
|
(190
|
)
|
|
||||
Curtailment gain
|
(1,701
|
)
|
|
—
|
|
|
(1,701
|
)
|
|
—
|
|
|
||||
Total
|
$
|
(1,751
|
)
|
|
$
|
345
|
|
|
$
|
(1,398
|
)
|
|
$
|
1,122
|
|
|
Non-U.S. Pension
|
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Interest cost
|
48
|
|
|
52
|
|
|
149
|
|
|
155
|
|
|
||||
Expected return on plan assets
|
(72
|
)
|
|
(72
|
)
|
|
(215
|
)
|
|
(214
|
)
|
|
||||
Amortization of actuarial loss
|
31
|
|
|
33
|
|
|
92
|
|
|
98
|
|
|
||||
Total
|
$
|
7
|
|
|
$
|
13
|
|
|
$
|
26
|
|
|
$
|
39
|
|
|
|
THREE MONTHS ENDED
|
|
NINE MONTHS ENDED
|
||||||||||||
|
SEPTEMBER 30
|
|
SEPTEMBER 30
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
|
(In thousands)
|
||||||||||||||
Revenues from external customers
|
|
|
|
|
|
|
|
||||||||
NACoal
|
$
|
52,870
|
|
|
$
|
38,012
|
|
|
$
|
147,584
|
|
|
$
|
81,545
|
|
HBB
|
134,099
|
|
|
124,820
|
|
|
354,901
|
|
|
340,436
|
|
||||
KC
|
42,618
|
|
|
48,154
|
|
|
120,709
|
|
|
135,787
|
|
||||
Eliminations
|
(973
|
)
|
|
(919
|
)
|
|
(2,511
|
)
|
|
(2,587
|
)
|
||||
Total
|
$
|
228,614
|
|
|
$
|
210,067
|
|
|
$
|
620,683
|
|
|
$
|
555,181
|
|
|
|
|
|
|
|
|
|
||||||||
Operating profit (loss)
|
|
|
|
|
|
|
|
|
|
||||||
NACoal
|
$
|
9,740
|
|
|
$
|
8,632
|
|
|
$
|
32,721
|
|
|
$
|
29,712
|
|
HBB
|
11,788
|
|
|
8,663
|
|
|
18,461
|
|
|
15,862
|
|
||||
KC
|
(3,658
|
)
|
|
(1,873
|
)
|
|
(14,045
|
)
|
|
(11,614
|
)
|
||||
NACCO and Other
|
(1,155
|
)
|
|
(587
|
)
|
|
(4,690
|
)
|
|
(3,581
|
)
|
||||
Eliminations
|
(33
|
)
|
|
1
|
|
|
60
|
|
|
126
|
|
||||
Total
|
$
|
16,682
|
|
|
$
|
14,836
|
|
|
$
|
32,507
|
|
|
$
|
30,505
|
|
Income (loss) from continuing operations, net of tax
|
|
|
|
|
|
|
|
||||||||
NACoal
|
$
|
7,794
|
|
|
$
|
8,143
|
|
|
$
|
26,337
|
|
|
$
|
24,480
|
|
HBB
|
7,427
|
|
|
5,206
|
|
|
10,913
|
|
|
8,447
|
|
||||
KC
|
(2,822
|
)
|
|
(1,208
|
)
|
|
(8,492
|
)
|
|
(7,214
|
)
|
||||
NACCO and Other
|
(1,137
|
)
|
|
(997
|
)
|
|
(4,188
|
)
|
|
(4,164
|
)
|
||||
Eliminations
|
1,063
|
|
|
(768
|
)
|
|
(2,676
|
)
|
|
(3,018
|
)
|
||||
Total
|
$
|
12,325
|
|
|
$
|
10,376
|
|
|
$
|
21,894
|
|
|
$
|
18,531
|
|
|
THREE MONTHS
|
|
NINE MONTHS
|
|
||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
||||
|
(In millions)
|
|
||||||||||
Coteau
|
3.5
|
|
|
3.2
|
|
|
10.2
|
|
|
9.7
|
|
|
Falkirk
|
2.0
|
|
|
2.2
|
|
|
5.6
|
|
|
5.9
|
|
|
Sabine
|
1.2
|
|
|
1.1
|
|
|
3.5
|
|
|
3.4
|
|
|
Unconsolidated mines
|
6.7
|
|
|
6.5
|
|
|
19.3
|
|
|
19.0
|
|
|
MLMC
|
1.0
|
|
|
1.0
|
|
|
2.3
|
|
|
2.3
|
|
|
Reed Minerals
|
0.2
|
|
|
0.1
|
|
|
0.7
|
|
|
0.1
|
|
|
Consolidated mines
|
1.2
|
|
|
1.1
|
|
|
3.0
|
|
|
2.4
|
|
|
Total tons sold
|
7.9
|
|
|
7.6
|
|
|
22.3
|
|
|
21.4
|
|
|
|
THREE MONTHS
|
|
NINE MONTHS
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Revenue - consolidated mines
|
$
|
49,045
|
|
|
$
|
35,247
|
|
|
$
|
131,475
|
|
|
$
|
73,708
|
|
Royalty and other
|
3,825
|
|
|
2,765
|
|
|
16,109
|
|
|
7,837
|
|
||||
Total revenues
|
52,870
|
|
|
38,012
|
|
|
147,584
|
|
|
81,545
|
|
||||
Cost of sales - consolidated mines
|
48,222
|
|
|
31,145
|
|
|
125,792
|
|
|
62,746
|
|
||||
Cost of sales - royalty and other
|
623
|
|
|
463
|
|
|
1,193
|
|
|
1,646
|
|
||||
Total cost of sales
|
48,845
|
|
|
31,608
|
|
|
126,985
|
|
|
64,392
|
|
||||
Gross profit
|
4,025
|
|
|
6,404
|
|
|
20,599
|
|
|
17,153
|
|
||||
Earnings of unconsolidated mines (a)
|
11,808
|
|
|
11,471
|
|
|
34,187
|
|
|
34,056
|
|
||||
Selling, general and administrative expenses
|
5,047
|
|
|
11,576
|
|
|
19,000
|
|
|
25,030
|
|
||||
Amortization of intangibles
|
1,076
|
|
|
767
|
|
|
2,736
|
|
|
1,840
|
|
||||
(Gain) loss on sale of assets
|
(30
|
)
|
|
(3,100
|
)
|
|
329
|
|
|
(5,373
|
)
|
||||
Operating profit
|
9,740
|
|
|
8,632
|
|
|
32,721
|
|
|
29,712
|
|
||||
Interest expense
|
788
|
|
|
858
|
|
|
2,200
|
|
|
2,289
|
|
||||
Other (income) expense (including income from other unconsolidated affiliates)
|
12
|
|
|
(328
|
)
|
|
(645
|
)
|
|
(1,107
|
)
|
||||
Income from continuing operations before income tax provision
|
8,940
|
|
|
8,102
|
|
|
31,166
|
|
|
28,530
|
|
||||
Income tax provision (benefit)
|
1,146
|
|
|
(41
|
)
|
|
4,829
|
|
|
4,050
|
|
||||
Net income
|
$
|
7,794
|
|
|
$
|
8,143
|
|
|
$
|
26,337
|
|
|
$
|
24,480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Effective income tax rate
|
12.8
|
%
|
|
(b)
|
|
|
15.5
|
%
|
|
14.2
|
%
|
|
Revenues
|
||
2012
|
$
|
38,012
|
|
Increase from:
|
|
||
Reed Minerals
|
10,884
|
|
|
Other consolidated mining operations
|
2,913
|
|
|
Royalty and other income
|
1,061
|
|
|
2013
|
$
|
52,870
|
|
|
Operating Profit
|
||
2012
|
$
|
8,632
|
|
Increase (decrease) from:
|
|
||
|
|
||
Other selling, general and administrative expenses
|
5,215
|
|
|
Pension curtailment
|
1,587
|
|
|
Other consolidated mining operations
|
1,063
|
|
|
Royalty and other income
|
784
|
|
|
Earnings of unconsolidated mines
|
338
|
|
|
Reed Minerals
|
(4,809
|
)
|
|
Gain on sale of asset
|
(3,070
|
)
|
|
2013
|
$
|
9,740
|
|
|
Revenues
|
||
2012
|
$
|
81,545
|
|
Increase from:
|
|
||
Reed Minerals
|
48,084
|
|
|
Consolidated mining operations
|
9,684
|
|
|
Royalty and other income
|
8,271
|
|
|
2013
|
$
|
147,584
|
|
|
Operating Profit
|
||
2012
|
$
|
29,712
|
|
Increase (decrease) from:
|
|
||
Royalty and other income
|
8,775
|
|
|
Other selling, general and administrative expenses
|
4,625
|
|
|
Pension curtailment
|
1,587
|
|
|
Other consolidated mining operations
|
1,499
|
|
|
Earnings of unconsolidated mines
|
132
|
|
|
Reed Minerals
|
(7,907
|
)
|
|
Gain on sale of asset
|
(5,702
|
)
|
|
2013
|
$
|
32,721
|
|
|
2013
|
|
2012
|
|
Change
|
||||||
Operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
26,337
|
|
|
$
|
24,480
|
|
|
$
|
1,857
|
|
Depreciation, depletion and amortization
|
11,872
|
|
|
7,015
|
|
|
4,857
|
|
|||
Other
|
(19,405
|
)
|
|
2,117
|
|
|
(21,522
|
)
|
|||
Working capital changes
|
5,588
|
|
|
514
|
|
|
5,074
|
|
|||
Net cash provided by operating activities
|
24,392
|
|
|
34,126
|
|
|
(9,734
|
)
|
|||
|
|
|
|
|
|
||||||
Investing activities:
|
|
|
|
|
|
||||||
Expenditures for property, plant and equipment
|
(21,588
|
)
|
|
(33,801
|
)
|
|
12,213
|
|
|||
Acquisition of business
|
—
|
|
|
(64,797
|
)
|
|
64,797
|
|
|||
Proceeds from the sale of assets
|
1,245
|
|
|
34,513
|
|
|
(33,268
|
)
|
|||
Proceeds from notes receivable
|
—
|
|
|
14,434
|
|
|
(14,434
|
)
|
|||
Cash in escrow for investment
|
(5,000
|
)
|
|
—
|
|
|
(5,000
|
)
|
|||
Other
|
(321
|
)
|
|
(147
|
)
|
|
(174
|
)
|
|||
Net cash used for investing activities
|
(25,664
|
)
|
|
(49,798
|
)
|
|
24,134
|
|
|||
|
|
|
|
|
|
||||||
Cash flow before financing activities
|
$
|
(1,272
|
)
|
|
$
|
(15,672
|
)
|
|
$
|
14,400
|
|
|
2013
|
|
2012
|
|
Change
|
||||||
Financing activities:
|
|
|
|
|
|
||||||
Net additions (reductions) of long-term debt and revolving credit agreements
|
$
|
(2,959
|
)
|
|
$
|
44,573
|
|
|
$
|
(47,532
|
)
|
Cash dividends paid to NACCO
|
—
|
|
|
(25,624
|
)
|
|
25,624
|
|
|||
Net cash provided by (used for) financing activities
|
$
|
(2,959
|
)
|
|
$
|
18,949
|
|
|
$
|
(21,908
|
)
|
|
SEPTEMBER 30
2013 |
|
DECEMBER 31
2012 |
|
Change
|
||||||
Cash and cash equivalents
|
$
|
28
|
|
|
$
|
4,259
|
|
|
$
|
(4,231
|
)
|
Other net tangible assets
|
204,326
|
|
|
166,265
|
|
|
38,061
|
|
|||
Goodwill, coal supply agreements and other intangibles, net
|
64,590
|
|
|
69,752
|
|
|
(5,162
|
)
|
|||
Net assets
|
268,944
|
|
|
240,276
|
|
|
28,668
|
|
|||
Total debt
|
(137,265
|
)
|
|
(138,021
|
)
|
|
756
|
|
|||
Total equity
|
$
|
131,679
|
|
|
$
|
102,255
|
|
|
$
|
29,424
|
|
Debt to total capitalization
|
51%
|
|
57%
|
|
(6)%
|
|
THREE MONTHS
|
|
NINE MONTHS
|
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
||||||||
Revenues
|
$
|
134,099
|
|
|
$
|
124,820
|
|
|
$
|
354,901
|
|
|
$
|
340,436
|
|
|
Operating profit
|
$
|
11,788
|
|
|
$
|
8,663
|
|
|
$
|
18,461
|
|
|
$
|
15,862
|
|
|
Interest expense
|
$
|
169
|
|
|
$
|
525
|
|
|
$
|
1,078
|
|
|
$
|
2,086
|
|
|
Other (income) expense
|
$
|
(60
|
)
|
|
$
|
(304
|
)
|
|
$
|
182
|
|
|
$
|
111
|
|
|
Net income
|
$
|
7,427
|
|
|
$
|
5,206
|
|
|
$
|
10,913
|
|
|
$
|
8,447
|
|
|
Effective income tax rate
|
36.4
|
%
|
|
38.3
|
%
|
|
36.6
|
%
|
|
38.2
|
%
|
|
|
Revenues
|
||
2012
|
$
|
124,820
|
|
Increase (decrease) from:
|
|
||
Unit volume and product mix
|
11,632
|
|
|
Average sales price
|
(1,872
|
)
|
|
Foreign currency
|
(481
|
)
|
|
2013
|
$
|
134,099
|
|
|
Operating Profit
|
||
2012
|
$
|
8,663
|
|
Increase (decrease) from:
|
|
||
Gross profit
|
3,070
|
|
|
Environmental expense
|
1,615
|
|
|
Foreign currency
|
177
|
|
|
Selling, general and administrative expenses
|
(1,737
|
)
|
|
2013
|
$
|
11,788
|
|
|
Revenues
|
||
2012
|
$
|
340,436
|
|
Increase (decrease) from:
|
|
||
Unit volume and product mix
|
17,379
|
|
|
Foreign currency
|
143
|
|
|
Average sales price
|
(3,057
|
)
|
|
2013
|
$
|
354,901
|
|
|
Operating Profit
|
||
2012
|
$
|
15,862
|
|
Increase (decrease) from:
|
|
||
Gross profit
|
6,663
|
|
|
Environmental expense - Southern Pines and Mt. Airy
|
1,615
|
|
|
Foreign currency
|
1,016
|
|
|
Other selling, general and administrative expenses
|
(4,441
|
)
|
|
Environmental expense - Picton
|
(2,254
|
)
|
|
2013
|
$
|
18,461
|
|
|
2013
|
|
2012
|
|
Change
|
||||||
Operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
10,913
|
|
|
$
|
8,447
|
|
|
$
|
2,466
|
|
Depreciation and amortization
|
2,077
|
|
|
1,900
|
|
|
177
|
|
|||
Other
|
(4,150
|
)
|
|
3,856
|
|
|
(8,006
|
)
|
|||
Working capital changes
|
7,780
|
|
|
(6,719
|
)
|
|
14,499
|
|
|||
Net cash provided by operating activities
|
16,620
|
|
|
7,484
|
|
|
9,136
|
|
|||
|
|
|
|
|
|
||||||
Investing activities:
|
|
|
|
|
|
||||||
Expenditures for property, plant and equipment
|
(1,271
|
)
|
|
(2,180
|
)
|
|
909
|
|
|||
Proceeds from the sale of assets
|
35
|
|
|
8
|
|
|
27
|
|
|||
Net cash used for investing activities
|
(1,236
|
)
|
|
(2,172
|
)
|
|
936
|
|
|||
|
|
|
|
|
|
||||||
Cash flow before financing activities
|
$
|
15,384
|
|
|
$
|
5,312
|
|
|
$
|
10,072
|
|
|
2013
|
|
2012
|
|
Change
|
||||||
Financing activities:
|
|
|
|
|
|
||||||
Reductions to long-term debt and revolving credit agreements
|
$
|
(16,860
|
)
|
|
$
|
(1,942
|
)
|
|
$
|
(14,918
|
)
|
Cash dividends paid to NACCO
|
—
|
|
|
(10,000
|
)
|
|
10,000
|
|
|||
Financing fees paid
|
—
|
|
|
(1,197
|
)
|
|
1,197
|
|
|||
Net cash used for financing activities
|
$
|
(16,860
|
)
|
|
$
|
(13,139
|
)
|
|
$
|
(3,721
|
)
|
|
SEPTEMBER 30
2013 |
|
SEPTEMBER 30
2012 |
|
Change
|
||||||
Cash and cash equivalents
|
$
|
1,302
|
|
|
$
|
1,528
|
|
|
$
|
(226
|
)
|
Other net tangible assets
|
76,616
|
|
|
86,022
|
|
|
(9,406
|
)
|
|||
Net assets
|
77,918
|
|
|
87,550
|
|
|
(9,632
|
)
|
|||
Total debt
|
(22,816
|
)
|
|
(52,253
|
)
|
|
29,437
|
|
|||
Total equity
|
$
|
55,102
|
|
|
$
|
35,297
|
|
|
$
|
19,805
|
|
Debt to total capitalization
|
29
|
%
|
|
60
|
%
|
|
(31
|
)%
|
|
SEPTEMBER 30
2013 |
|
DECEMBER 31
2012 |
|
Change
|
||||||
Cash and cash equivalents
|
$
|
1,302
|
|
|
$
|
2,784
|
|
|
$
|
(1,482
|
)
|
Other net tangible assets
|
76,616
|
|
|
80,003
|
|
|
(3,387
|
)
|
|||
Net assets
|
77,918
|
|
|
82,787
|
|
|
(4,869
|
)
|
|||
Total debt
|
(22,816
|
)
|
|
(39,676
|
)
|
|
16,860
|
|
|||
Total equity
|
$
|
55,102
|
|
|
$
|
43,111
|
|
|
$
|
11,991
|
|
Debt to total capitalization
|
29
|
%
|
|
48
|
%
|
|
(19
|
)%
|
|
THREE MONTHS
|
|
NINE MONTHS
|
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
||||||||
Revenues
|
$
|
42,618
|
|
|
$
|
48,154
|
|
|
$
|
120,709
|
|
|
$
|
135,787
|
|
|
Operating loss
|
$
|
(3,658
|
)
|
|
$
|
(1,873
|
)
|
|
$
|
(14,045
|
)
|
|
$
|
(11,614
|
)
|
|
Interest expense
|
$
|
87
|
|
|
$
|
125
|
|
|
$
|
217
|
|
|
$
|
336
|
|
|
Other (income) expense
|
$
|
17
|
|
|
$
|
17
|
|
|
$
|
59
|
|
|
$
|
75
|
|
|
Net loss
|
$
|
(2,822
|
)
|
|
$
|
(1,208
|
)
|
|
$
|
(8,492
|
)
|
|
$
|
(7,214
|
)
|
|
Effective income tax rate
|
25.0
|
%
|
|
40.0
|
%
|
|
40.7
|
%
|
|
40.0
|
%
|
|
|
Revenues
|
||
2012
|
$
|
48,154
|
|
Increase (decrease) from:
|
|
||
Closed stores
|
(4,549
|
)
|
|
KC comparable store sales
|
(1,371
|
)
|
|
LGC comparable store sales
|
(823
|
)
|
|
New store sales
|
1,115
|
|
|
Other
|
92
|
|
|
2013
|
$
|
42,618
|
|
|
Operating Loss
|
||
2012
|
$
|
(1,873
|
)
|
(Increase) decrease from:
|
|
||
KC comparable stores
|
(1,108
|
)
|
|
New stores
|
(247
|
)
|
|
LGC comparable stores
|
(245
|
)
|
|
Selling, general and administrative expenses
|
(215
|
)
|
|
Other
|
(169
|
)
|
|
Closed stores
|
199
|
|
|
2013
|
$
|
(3,658
|
)
|
|
Revenues
|
||
2012
|
$
|
135,787
|
|
Increase (decrease) from:
|
|
||
Closed stores
|
(11,607
|
)
|
|
KC comparable store sales
|
(5,242
|
)
|
|
LGC comparable store sales
|
(1,985
|
)
|
|
New store sales
|
3,714
|
|
|
Other
|
42
|
|
|
2013
|
$
|
120,709
|
|
|
Operating Loss
|
||
2012
|
$
|
(11,614
|
)
|
(Increase) decrease from:
|
|
||
KC comparable stores
|
(3,076
|
)
|
|
New stores
|
(472
|
)
|
|
Other
|
(175
|
)
|
|
Closed stores
|
938
|
|
|
Selling, general and administrative expenses
|
295
|
|
|
LGC comparable stores
|
59
|
|
|
2013
|
$
|
(14,045
|
)
|
|
2013
|
|
2012
|
|
Change
|
||||||
Operating activities:
|
|
|
|
|
|
||||||
Net loss
|
$
|
(8,492
|
)
|
|
$
|
(7,214
|
)
|
|
$
|
(1,278
|
)
|
Depreciation and amortization
|
2,170
|
|
|
2,156
|
|
|
14
|
|
|||
Other
|
300
|
|
|
812
|
|
|
(512
|
)
|
|||
Working capital changes
|
(17,426
|
)
|
|
(17,534
|
)
|
|
108
|
|
|||
Net cash used for operating activities
|
(23,448
|
)
|
|
(21,780
|
)
|
|
(1,668
|
)
|
|||
|
|
|
|
|
|
||||||
Investing activities:
|
|
|
|
|
|
||||||
Expenditures for property, plant and equipment
|
(1,826
|
)
|
|
(3,451
|
)
|
|
1,625
|
|
|||
Proceeds from the sale of assets
|
36
|
|
|
18
|
|
|
18
|
|
|||
Net cash used for investing activities
|
(1,790
|
)
|
|
(3,433
|
)
|
|
1,643
|
|
|||
|
|
|
|
|
|
||||||
Cash flow before financing activities
|
$
|
(25,238
|
)
|
|
$
|
(25,213
|
)
|
|
$
|
(25
|
)
|
|
2013
|
|
2012
|
|
Change
|
||||||
Financing activities:
|
|
|
|
|
|
||||||
Net additions to revolving credit agreement
|
$
|
14,704
|
|
|
$
|
14,681
|
|
|
$
|
23
|
|
Financing fees paid
|
—
|
|
|
(203
|
)
|
|
203
|
|
|||
Other
|
(17
|
)
|
|
—
|
|
|
(17
|
)
|
|||
Net cash provided by financing activities
|
$
|
14,687
|
|
|
$
|
14,478
|
|
|
$
|
209
|
|
|
SEPTEMBER 30
2013 |
|
SEPTEMBER 30
2012 |
|
Change
|
||||||
Cash and cash equivalents
|
$
|
971
|
|
|
$
|
1,127
|
|
|
$
|
(156
|
)
|
Other net tangible assets
|
48,897
|
|
|
53,104
|
|
|
(4,207
|
)
|
|||
Net assets
|
49,868
|
|
|
54,231
|
|
|
(4,363
|
)
|
|||
Total debt
|
(14,704
|
)
|
|
(14,702
|
)
|
|
(2
|
)
|
|||
Total equity
|
$
|
35,164
|
|
|
$
|
39,529
|
|
|
$
|
(4,365
|
)
|
Debt to total capitalization
|
29
|
%
|
|
27
|
%
|
|
2
|
%
|
|
SEPTEMBER 30
2013 |
|
DECEMBER 31
2012 |
|
Change
|
||||||
Cash and cash equivalents
|
$
|
971
|
|
|
$
|
11,522
|
|
|
$
|
(10,551
|
)
|
Other net tangible assets
|
48,897
|
|
|
32,134
|
|
|
16,763
|
|
|||
Net assets
|
49,868
|
|
|
43,656
|
|
|
6,212
|
|
|||
Total debt
|
(14,704
|
)
|
|
—
|
|
|
(14,704
|
)
|
|||
Total equity
|
$
|
35,164
|
|
|
$
|
43,656
|
|
|
$
|
(8,492
|
)
|
Debt to total capitalization
|
29
|
%
|
|
(a)
|
|
|
(a)
|
|
(a)
|
Debt to total capitalization is not meaningful.
|
|
THREE MONTHS
|
|
NINE MONTHS
|
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
||||||||
Revenues
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Operating loss
|
$
|
(1,155
|
)
|
|
$
|
(587
|
)
|
|
$
|
(4,690
|
)
|
|
$
|
(3,581
|
)
|
|
Other (income) expense
|
$
|
185
|
|
|
$
|
268
|
|
|
$
|
852
|
|
|
$
|
1,460
|
|
|
Loss from continuing operations, net of tax
|
$
|
(1,137
|
)
|
|
$
|
(997
|
)
|
|
$
|
(4,188
|
)
|
|
$
|
(4,164
|
)
|
|
Net (loss) income
|
$
|
(1,137
|
)
|
|
$
|
493
|
|
|
$
|
(4,188
|
)
|
|
$
|
(3,196
|
)
|
|
|
THREE MONTHS
|
|
NINE MONTHS
|
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
||||||||
NACoal
|
$
|
739
|
|
|
$
|
2,021
|
|
|
$
|
2,219
|
|
|
$
|
3,590
|
|
|
HBB
|
$
|
824
|
|
|
$
|
563
|
|
|
$
|
2,471
|
|
|
$
|
1,688
|
|
|
KC
|
$
|
62
|
|
|
$
|
62
|
|
|
$
|
187
|
|
|
$
|
187
|
|
|
|
SEPTEMBER 30
2013 |
|
DECEMBER 31
2012 |
|
Change
|
||||||
Cash and cash equivalents
|
$
|
79,353
|
|
|
$
|
139,855
|
|
|
$
|
(60,502
|
)
|
Other net tangible assets
|
321,322
|
|
|
264,449
|
|
|
56,873
|
|
|||
Goodwill, coal supply agreement and other intangibles, net
|
64,590
|
|
|
69,752
|
|
|
(5,162
|
)
|
|||
Net assets
|
465,265
|
|
|
474,056
|
|
|
(8,791
|
)
|
|||
Total debt
|
(174,785
|
)
|
|
(177,697
|
)
|
|
2,912
|
|
|||
Bellaire closed mine obligations, net of tax
|
(14,759
|
)
|
|
(15,028
|
)
|
|
269
|
|
|||
Total equity
|
$
|
275,721
|
|
|
$
|
281,331
|
|
|
$
|
(5,610
|
)
|
Debt to total capitalization
|
39%
|
|
39%
|
|
—%
|
Issuer Purchases of Equity Securities
|
|||||||
Period
|
(a)
Total Number of Shares Purchased
|
(b)
Average Price Paid per Share
|
(c)
Total Number of Shares Purchased as Part of the Publicly Announced Program
|
(d)
Maximum Number of Shares (or Approximate Dollar Value) that May Yet Be Purchased Under the Program (1)
|
|||
Month #1
(July 1 to 31, 2013)
|
37,762
|
$57.97
|
37,762
|
|
$
|
20,963,748
|
|
Month #2
(August 1 to 31, 2013)
|
22,007
|
$57.92
|
22,007
|
|
$
|
19,689,082
|
|
Month #3
(September 1 to 30, 2013)
|
41,130
|
$55.51
|
41,130
|
|
$
|
17,405,896
|
|
Total
|
100,899
|
$56.96
|
100,899
|
|
$
|
17,405,896
|
|
(1)
|
On November 8, 2011, the Company announced that the Company's Board of Directors approved the repurchase of up to $50 million of the Company's outstanding Class A common stock. The timing and amount of any repurchases will be determined at the discretion of the Company's management based on a number of factors, including the availability of capital, other capital allocation alternatives and market conditions for the Company's Class A common stock. The original authorization for the repurchase program was scheduled to expire on December 31, 2012; however, in November 2012 the Company's Board of Directors approved an extension of the stock repurchase program through December 31, 2013. The share repurchase program does not require the Company to acquire any specific number of shares. It may be modified, suspended, extended or terminated by the Company at any time without prior notice and may be executed through open market purchases, privately negotiated transactions or otherwise. All or part of the repurchases may be implemented under a Rule 10b5-1 trading plan, which would allow repurchases under pre-set terms at times when the Company might otherwise be prevented from doing so. As of
September 30, 2013
, the Company has repurchased
570,370
shares of Class A common stock for an aggregate purchase price of
$32.6 million
under this program.
|
|
|
NACCO Industries, Inc.
(Registrant)
|
|
Date:
|
October 30, 2013
|
/s/ Mark E. Barrus
|
|
|
|
Mark E. Barrus
|
|
|
|
Vice President and Controller
|
|
|
|
(Principal Accounting Officer)
|
|
Exhibit
|
|
|
Number*
|
|
Description of Exhibits
|
|
|
|
10.1**
|
|
Amendment No. 3 to The North American Coal Corporation Supplemental Retirement Benefit Plan (As Amended and Restated as of January 1, 2008).
|
31(i)(1)
|
|
Certification of Alfred M. Rankin, Jr. pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act
|
31(i)(2)
|
|
Certification of J.C. Butler, Jr. pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act
|
32
|
|
Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed and dated by Alfred M. Rankin, Jr. and J.C. Butler, Jr.
|
95
|
|
Mine Safety Disclosure Exhibit
|
101.INS
|
|
XBRL Instance Document
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
1.
|
I have reviewed this quarterly
report on Form 10-Q of NACCO Industries, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this
report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date:
|
October 30, 2013
|
/s/ Alfred M. Rankin, Jr.
|
|
|
|
Alfred M. Rankin, Jr.
|
|
|
|
Chairman, President and Chief Executive Officer (Principal Executive Officer)
|
|
1.
|
I have reviewed this quarterly
report on Form 10-Q of NACCO Industries, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this
report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date:
|
October 30, 2013
|
/s/ J.C. Butler, Jr.
|
|
|
|
J.C. Butler, Jr.
|
|
|
|
Senior Vice President - Finance, Treasurer
|
|
|
|
and Chief Administrative Officer (Principal
|
|
|
|
Financial Officer)
|
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.
|
Date:
|
October 30, 2013
|
/s/ Alfred M. Rankin, Jr.
|
|
|
|
Alfred M. Rankin, Jr.
|
|
|
|
Chairman, President and Chief Executive Officer (Principal Executive Officer)
|
|
Date:
|
October 30, 2013
|
/s/ J.C. Butler, Jr.
|
|
|
|
J.C. Butler, Jr.
|
|
|
|
Senior Vice President - Finance, Treasurer
|
|
|
|
and Chief Administrative Officer (Principal
|
|
|
|
Financial Officer)
|
|
Name of Mine or Quarry (1)
|
|
Mine Act Section 104 Significant & Substantial Citations (2)
|
|
Total Dollar Value of Proposed MSHA Assessments
|
|
Number of Legal Actions Initiated before the FMSHRC for the quarter ended at September 30, 2013
|
|
Number of Legal Actions Resolved before the FMSHRC for the quarter ended at September 30, 2013
|
|
Number of Legal Actions Pending before the FMSHRC at September 30, 2013 (3)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
MLMC (Red Hills Mine)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Coteau (Freedom Mine)
|
|
—
|
|
|
$108
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Falkirk (Falkirk Mine)
|
|
—
|
|
|
162
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Sabine (South Hallsville No. 1 Mine)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
Demery (Five Forks Mine)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Caddo Creek (Marshall Mine)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Camino Real (Eagle Pass Mine)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Liberty (Liberty Mine)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Reed Minerals:
|
|
|
|
|
|
|
|
|
|
|
||||||
Fishtrap Mine
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Jap Creek Mine
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Burton Bend Mine
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Lindbergh Mine
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Florida Limerock Operations:
|
|
|
|
|
|
|
|
|
|
|
||||||
White Rock Quarry - North
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
White Rock Quarry - South
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Krome Quarry
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Alico Quarry
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
FEC Quarry
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
SCL Quarry
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Card Sound Quarry
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Pennsuco Quarry
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total
|
|
—
|
|
|
$
|
270
|
|
|
—
|
|
|
—
|
|
|
1
|
|