NC - NACCO GAAP EPS of $0.34 revenue of $61.35M; updates FY23 outlook

2023-08-02 18:03:16 ET

• NACCO press release ( NYSE: NC ): Q2 GAAP EPS of $0.34.
• Revenue of $61.35M (-0.0% Y/Y).
• Adjusted EBITDA decreased to $9.2 million from $21.0 million in Q2 2022.
• Coal deliveries for second-half and full-year 2023 are expected to decrease from 2022 levels. The owner of the power plant served by the Company's Sabine Mine in Texas retired the Pirkey power plant, and as a result Sabine ceased deliveries March 31, 2023. This is the primary driver for the year-over-year declines in coal deliveries.
• North American Mining expects operating profit and Segment Adjusted EBITDA to increase in both the 2023 second half and full year over the respective 2022 periods but decrease from the 2023 first half.
• In 2023, North American Mining capital expenditures are expected to be $35 million, with $26 million expended in the second half of 2023, primarily for the acquisition of equipment to support the Thacker Pass lithium project.
• Operating profit and Segment Adjusted EBITDA for the 2023 second half and full year are expected to decrease significantly compared with the respective 2022 periods.
• Overall, the Company expects consolidated results to continue to decrease in the third quarter before improving in the fourth quarter. The improvement in fourth quarter 2023 results will not offset the anticipated third quarter decline. Therefore, earnings in the second half of 2023 are expected to be lower than both the first half of 2023 and the second half of 2022, primarily driven by activity at the Minerals Management and Coal Mining segments.
• In 2023, the Company expects capital expenditures of approximately $68 million, which includes up to $20 million of investments at Minerals Management. As a result of the forecasted capital expenditures and anticipated substantial decrease in net income, cash flow before financing activities in 2023 is expected to be positive but decline significantly from 2022.

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