• Operating Profit: $19.7 million in Q3 2024, compared to an operating loss of $6.3 million in Q3 2023.

• Net Income: $15.6 million in Q3 2024, or $2.14 per share, compared to a net loss of $3.8 million, or a loss of $0.51 per share, in Q3 2023.

• EBITDA: Increased to $25.7 million from $400,000 in Q3 2023.

• Coal Mining Segment Operating Profit: $19.9 million in Q3 2024, compared to an operating loss of $4.7 million in Q3 2023.

• Coal Mining Segment Adjusted EBITDA: $22.1 million in Q3 2024, compared to break-even in Q3 2023.

• Minerals Management Revenue: $8.8 million in Q3 2024, a 54% increase from $5.7 million in Q3 2023.

• Minerals Management Operating Profit: $6.2 million in Q3 2024, a 71% increase from $3.6 million in Q3 2023.

• North American Mining Operating Loss: Approximately $500,000 in Q3 2024, compared to a profit of $900,000 in Q3 2023.

• North American Mining Segment Adjusted EBITDA: $2.2 million in Q3 2024, down approximately $700,000 from Q3 2023.

• Cash and Debt: Ended Q3 2024 with $63 million in cash and $70 million in debt.

• Share Repurchase: Approximately 68,000 shares purchased for $2 million during Q3 2024.

• Revolving Credit Facility: Increased to $200 million with availability of approximately $131 million as of September 30, 2024.

• Warning! GuruFocus has detected 7 Warning Signs with NC.

Release Date: October 31, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• NACCO Industries Inc (NYSE:NC) reported a significant increase in operating profit, reaching $19.7 million compared to a loss of $6.3 million in the previous year.

• The coal mining segment showed substantial improvement, with operating profit increasing to $19.9 million from a loss of $4.7 million in 2023.

• The minerals management segment experienced a 54% increase in revenues, driven by higher production volumes from newly acquired assets.

• North American mining's revenue increased by 24% year over year due to favorable pricing and delivery mix.

• The company anticipates solid customer demand at coal mining operations in 2025, benefiting from the absence of temporary price concessions at Falkirk.

Negative Points

• The North American mining segment reported an operating loss of approximately $500,000, compared to a profit of $900,000 in 2023.

• A $900,000 reserve was established against a receivable due to a customer's temporary cessation of operations, impacting North American mining's results.

• Minerals management expects a decrease in operating profit and segment adjusted EBITDA in the fourth quarter of 2024 and full year compared to the prior year.

• Cost inflation is anticipated to affect Mississippi Lignite Mining Company's 2025 results.

• The company expects cash flow before financing activities to be a use of cash for the full year 2024.