NACCO Industries Inc. (NYSE:NCWI) Q4 2014 Earnings Conference Call - Final Transcript

Mar 10, 2015 • 11:00 am ET

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NACCO Industries Inc. (NYSE:NCWI) Q4 2014 Earnings Conference Call - Final Transcript

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Presentation
Operator
operator

Good day, ladies and gentlemen. And welcome to the NACCO Industries, Inc., 2014 Fourth Quarter and Full Year Earnings Conference Call. At this time all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will be given at that time. (Operator Instructions).

As a reminder today's program is being recorded. I would now like to introduce your host for today's program, Christina Kmetko, Investor Relations. Please go ahead.

Executive
Christina Kmetko

Thank you. Good morning, everyone and welcome to our 2014 fourth quarter earnings call. Jonathan?

Operator
operator

Yes.

Executive
Christina Kmetko

We have a lot of noise in the line, in the background.

Operator
operator

Okay, I believe we are all set now.

Executive
Christina Kmetko

Okay thank you. Sorry everyone. Good morning and welcome to our 2014 fourth 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 on today's call are Al Rankin, Chairman, President and Chief Executive Officer; J. C. Butler, Senior Vice President, Finance, Treasurer and Chief Administrative Officer; and Elizabeth Loveman, NACCO's Vice President and Controller. Also joining me on today's call are Rob Benson, President and Chief Executive Officer of North American Coal Corporation; and Greg Trepp, President and Chief Executive Officer of Hamilton Beach and Chief Executive Officer of our Kitchen Collection business.

Yesterday we published our fourth quarter and full year 2014 results and filed our 10-K for the year ended December 31, 2014. Also copies of our earnings release and 10-K are available on our website at nacco.com. For anyone who is not able to listen to today's entire call an archived version of this webcast will be on our website later this afternoon and available for approximately 12 months. (Forward-Looking Cautionary statements)

Executive
Christina Kmetko

(Forward-Looking Cautionary statements).

Now let's discuss the quarterly results. On February 13th, we filed an 8-K disclosing that our North American Coal subsidiary planned to take a significant non-cash impairment charge related to the long lived assets of its Reed Minerals Mining operation. That impairment charge totaled $66.4 million after tax and followed a $4 million pretax write-off of Reed's goodwill in last year's fourth quarter. As a result of the impairment charge we reported a consolidated net loss of $40.7 million or $5.57 per diluted share for the fourth quarter of 2014 compared with net income of $22.6 million or $2.85 per diluted share in 2013.

Adjusting out the long lived asset impairment and goodwill charges provides a clearer look at the underlying operating results of our business. On an adjusted basis, we have slightly higher consolidated adjusted income in the fourth quarter of $25.8 million or $3.52 per diluted share on lower revenues of $297.3 million which compares to consolidated adjusted income of $25.1 million or $3.18 per diluted share on revenues of $312 million for the fourth quarter of 2013.

Before I talk about the fourth quarter operating results