NACCO Industries Inc (NYSE:NC) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 08:30 am ET

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NACCO Industries Inc (NYSE:NC) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by and welcome to the NACCO Industries second quarter earnings conference call. [Operator Instructions]

I would now like to hand the call over to your speaker today, Christina Kmetko. Ma'am, please go ahead.

Executive
Christina Kmetko

Thank you. Good morning, everyone, and welcome to our 2020 second quarter earnings call. I am Christina Kmetko, and I'm responsible for Investor Relations at NACCO Industry. Thank you for joining us this morning. I hope you and your families are continuing to remain healthy and safe.

I'll 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 today are J.C. Butler, President and Chief Executive Officer of both NACCO and North American Coal, and Elizabeth Loveman, NACCO's Vice President and Controller.

Yesterday, we published our second quarter 2020 result and filed our 10-Q. Copies of our earnings release and 10-Q are available on our website. For anyone who is not able to listen to today's entire call, an archived version of this webcast will be on our website later this afternoon and available for approximately 12 months. Our remarks that follow including answers to your questions contain forward-looking statement. These statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Made here today. These risks include among others, matters that we have described in our earnings release issued last night and in our 10-Q and other filings with the SEC. We disclaim any obligation to update these forward-looking statements, which may not be updated until our next quarterly earnings conference call if at all.

Let me start by saying that we sincerely thank those who continue to work to keep us safe, particularly those in the healthcare community and first responders. We would also like to recognize our employees who are ensuring we can continue to deliver coal in lines down both critical infrastructure industry to our customers. We truly appreciate everyone's commitment to supporting our customers while also working diligently to keep one another safe. The majority of our employees have been reporting to work since the pandemic began, the implemented safeguards in accordance with regulatory requirements and guidance from health authorities project those at work and limited exposure to COVID-19.

Other employees who are able to continue to work from home. Now let me discuss our 2020 second quarter, I will cover our consolidated results first, and then provide the highlights for each segment. On a consolidated basis, our second quarter consolidated net income decreased to $6.1 million or $0.86 per share from $8 million or $1.14 per share last year. The largest driver of the decrease was a significant reduction in the earnings of the Minerals Management segment. As the prior year benefited from a large number of new gas wells put in the commission during 2018 and early 2019. This was expected because new wells have