Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 29, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-9172 | |
Entity Registrant Name | NACCO INDUSTRIES, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 34-1505819 | |
Entity Address, Address Line One | 5875 Landerbrook Drive | |
Entity Address, Address Line Two | Suite 220 | |
Entity Address, City or Town | Cleveland, | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 44124-4069 | |
City Area Code | (440) | |
Local Phone Number | 229-5151 | |
Title of 12(b) Security | Class A Common Stock, $1 par value per share | |
Trading Symbol | NC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000789933 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Shares Outstanding Class A | ||
Entity Information [Line Items] | ||
Shares Outstanding (in shares) | 5,768,580 | |
Shares Outstanding Class B | ||
Entity Information [Line Items] | ||
Shares Outstanding (in shares) | 1,566,373 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 97,113 | $ 86,005 |
Trade accounts receivable | 32,143 | 25,667 |
Accounts receivable from affiliates | 6,427 | 5,605 |
Inventories | 56,956 | 54,085 |
Refundable federal income taxes | 3,919 | 15,054 |
Prepaid insurance | 7,766 | 2,016 |
Other current assets | 14,252 | 14,621 |
Total current assets | 218,576 | 203,053 |
Property, plant and equipment, net | 210,470 | 193,167 |
Intangibles, net | 29,868 | 31,774 |
Operating lease right-of-use assets | 8,250 | 8,911 |
Other non-current assets | 47,019 | 46,225 |
Total assets | 547,344 | 507,220 |
LIABILITIES AND EQUITY | ||
Accounts payable | 16,490 | 12,208 |
Accounts payable to affiliates | 885 | 741 |
Current maturities of long-term debt | 2,929 | 2,527 |
Asset retirement obligations | 1,820 | 1,820 |
Accrued payroll | 11,281 | 16,339 |
Deferred revenue | 1,803 | 4,082 |
Other current liabilities | 8,430 | 8,299 |
Total current liabilities | 43,638 | 46,016 |
Long-term debt | 15,498 | 18,183 |
Operating lease liabilities | 9,214 | 9,733 |
Asset retirement obligations | 42,873 | 42,131 |
Pension and other postretirement obligations | 5,422 | 6,605 |
Deferred income taxes | 10,808 | 14,792 |
Liability for uncertain tax positions | 10,113 | 10,113 |
Other long-term liabilities | 7,175 | 7,531 |
Total liabilities | 144,741 | 155,104 |
Common stock: | ||
Capital in excess of par value | 19,634 | 16,331 |
Retained earnings | 383,574 | 336,778 |
Accumulated other comprehensive loss | (7,940) | (8,176) |
Total stockholders' equity | 402,603 | 352,116 |
Total liabilities and equity | 547,344 | 507,220 |
Unconsolidated Subsidiaries | ||
ASSETS | ||
Investments in unconsolidated subsidiaries | 15,379 | 19,090 |
Private Company Equity | ||
ASSETS | ||
Investments in unconsolidated subsidiaries | 17,782 | 5,000 |
Class A Common Stock | ||
Common stock: | ||
Common stock | 5,769 | 5,616 |
Class B Common Stock | ||
Common stock: | ||
Common stock | $ 1,566 | $ 1,567 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) | Jun. 30, 2022 $ / shares shares | Dec. 31, 2021 $ / shares shares |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ / shares | $ 1 | $ 1 |
Common stock, shares outstanding (in shares) | shares | 5,768,580 | 5,616,568 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ / shares | $ 1 | $ 1 |
Common stock, shares outstanding (in shares) | shares | 1,566,373 | 1,566,613 |
Common stock, convertible conversion ratio | 1 | 1 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Revenues | $ 61,369 | $ 45,896 | $ 116,392 | $ 91,001 |
Cost of sales | 45,726 | 36,911 | 84,902 | 74,324 |
Gross profit | 15,643 | 8,985 | 31,490 | 16,677 |
Earnings of unconsolidated operations | 14,622 | 13,542 | 29,214 | 28,884 |
Contract termination settlement | 14,000 | 0 | 14,000 | 0 |
Operating expenses | ||||
Selling, general and administrative expenses | 15,841 | 12,878 | 30,625 | 26,641 |
Amortization of intangible assets | 1,058 | 911 | 1,905 | 1,893 |
(Gain) loss on sale of assets | (2,317) | 68 | (2,453) | 27 |
Operating expenses | 14,582 | 13,857 | 30,077 | 28,561 |
Operating profit | 29,683 | 8,670 | 44,627 | 17,000 |
Other (income) expense | ||||
Interest expense | 496 | 359 | 1,009 | 715 |
Interest income | (195) | (100) | (340) | (220) |
Closed mine obligations | 377 | 364 | 757 | 747 |
Loss (gain) on equity securities | 1,878 | (1,262) | 1,360 | (2,085) |
Other contract termination settlements | (16,882) | 0 | (16,882) | 0 |
Other, net | (1,064) | (127) | (1,294) | (257) |
Other (income) expense | (15,390) | (766) | (15,390) | (1,100) |
Income before income tax provision | 45,073 | 9,436 | 60,017 | 18,100 |
Income tax provision | 7,893 | 2,931 | 10,255 | 2,634 |
Net income | $ 37,180 | $ 6,505 | $ 49,762 | $ 15,466 |
Earnings per share: | ||||
Basic earnings per share (in dollars per share) | $ 5.07 | $ 0.91 | $ 6.83 | $ 2.17 |
Diluted earnings per share (in dollars per share) | $ 5.07 | $ 0.91 | $ 6.79 | $ 2.16 |
Basic weighted average shares outstanding (in shares) | 7,330 | 7,153 | 7,286 | 7,123 |
Diluted weighted average shares outstanding (in shares) | 7,330 | 7,153 | 7,325 | 7,147 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 37,180 | $ 6,505 | $ 49,762 | $ 15,466 |
Reclassification of pension and postretirement adjustments into earnings, net of $32 and $67 tax benefit in the three and six months ended June 30, 2022, respectively, and net of $42 and $85 tax benefit in the three and six months ended June 30, 2021, respectively. | 118 | 143 | 236 | 286 |
Total other comprehensive income | 118 | 143 | 236 | 286 |
Comprehensive income | $ 37,298 | $ 6,648 | $ 49,998 | $ 15,752 |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Reclassification of pension and postretirement adjustments into earnings, tax expense (benefit) | $ (32) | $ (42) | $ (67) | $ (85) |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Operating activities | ||
Net cash provided by operating activities | $ 40,481 | $ 29,318 |
Investing activities | ||
Expenditures for property, plant and equipment and acquisition of mineral interests | (24,918) | (16,127) |
Proceeds from the sale of property, plant and equipment | 2,824 | 59 |
Other | (22) | (21) |
Net cash used for investing activities | (22,116) | (16,089) |
Financing activities | ||
Additions to long-term debt | 1,109 | 0 |
Reductions of long-term debt | (1,400) | (2,881) |
Net reductions to revolving credit agreements | (4,000) | (11,000) |
Cash dividends paid | (2,966) | (2,786) |
Net cash used for financing activities | (7,257) | (16,667) |
Cash and cash equivalents | ||
Total increase (decrease) for the period | 11,108 | (3,438) |
Balance at the beginning of the period | 86,005 | 88,450 |
Balance at the end of the period | $ 97,113 | $ 85,012 |
Unaudited Condensed Consolida_7
Unaudited Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Common Stock Class A Common Stock | Common Stock Class B Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance, beginning of period at Dec. 31, 2020 | $ 300,624 | $ 5,490 | $ 1,568 | $ 10,895 | $ 294,270 | $ (11,599) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 1,015 | 92 | 923 | |||
Conversion of Class B to Class A shares | 0 | 1 | (1) | |||
Net income | 8,961 | 8,961 | ||||
Cash dividends on Class A and Class B common stock | (1,374) | (1,374) | ||||
Reclassification adjustment to net income, net of tax | 143 | 143 | ||||
Balance, end of period at Mar. 31, 2021 | 309,369 | 5,583 | 1,567 | 11,818 | 301,857 | (11,456) |
Balance, beginning of period at Dec. 31, 2020 | 300,624 | 5,490 | 1,568 | 10,895 | 294,270 | (11,599) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 15,466 | |||||
Balance, end of period at Jun. 30, 2021 | 315,727 | 5,595 | 1,567 | 12,928 | 306,950 | (11,313) |
Balance, beginning of period at Mar. 31, 2021 | 309,369 | 5,583 | 1,567 | 11,818 | 301,857 | (11,456) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 1,122 | 12 | 1,110 | |||
Net income | 6,505 | 6,505 | ||||
Cash dividends on Class A and Class B common stock | (1,412) | (1,412) | ||||
Reclassification adjustment to net income, net of tax | 143 | 143 | ||||
Balance, end of period at Jun. 30, 2021 | 315,727 | 5,595 | 1,567 | 12,928 | 306,950 | (11,313) |
Balance, beginning of period at Dec. 31, 2021 | 352,116 | 5,616 | 1,567 | 16,331 | 336,778 | (8,176) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 1,123 | 145 | 978 | |||
Conversion of Class B to Class A shares | 0 | 1 | (1) | |||
Net income | 12,582 | 12,582 | ||||
Cash dividends on Class A and Class B common stock | (1,445) | (1,445) | ||||
Reclassification adjustment to net income, net of tax | 118 | 118 | ||||
Balance, end of period at Mar. 31, 2022 | 364,494 | 5,762 | 1,566 | 17,309 | 347,915 | (8,058) |
Balance, beginning of period at Dec. 31, 2021 | 352,116 | 5,616 | 1,567 | 16,331 | 336,778 | (8,176) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 49,762 | |||||
Balance, end of period at Jun. 30, 2022 | 402,603 | 5,769 | 1,566 | 19,634 | 383,574 | (7,940) |
Balance, beginning of period at Mar. 31, 2022 | 364,494 | 5,762 | 1,566 | 17,309 | 347,915 | (8,058) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 2,332 | 7 | 2,325 | |||
Net income | 37,180 | 37,180 | ||||
Cash dividends on Class A and Class B common stock | (1,521) | (1,521) | ||||
Reclassification adjustment to net income, net of tax | 118 | 118 | ||||
Balance, end of period at Jun. 30, 2022 | $ 402,603 | $ 5,769 | $ 1,566 | $ 19,634 | $ 383,574 | $ (7,940) |
Unaudited Condensed Consolida_8
Unaudited Condensed Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends on common stock (in dollars per share) | $ 0.2075 | $ 0.1975 | $ 0.1975 | $ 0.1925 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation The accompanying Unaudited Condensed Consolidated Financial Statements include the accounts of NACCO Industries, Inc. ® (“NACCO”) and its wholly owned subsidiaries (collectively, the “Company”). NACCO brings natural resources to life by delivering aggregates, minerals, reliable fuels and environmental solutions through its robust portfolio of NACCO Natural Resources businesses. The Company operates under three business segments: Coal Mining, North American Mining ("NAMining") and Minerals Management. The Coal Mining segment operates surface coal mines for power generation companies. The NAMining segment is a trusted mining partner for producers of aggregates, coal, lithium and other industrial minerals. The Minerals Management segment, which includes the Catapult Mineral Partners business, acquires and promotes the development of mineral interests. Mitigation Resources of North America ® ("Mitigation Resources") provides stream and wetland mitigation solutions. The Company also has items not directly attributable to a reportable segment. Intercompany accounts and transactions are eliminated in consolidation. Effective January 1, 2022, the Company changed the composition of its reportable segments. As a result, the Company retrospectively changed its computation of segment operating profit to reclassify the results of Caddo Creek Resources Company, LLC (“Caddo Creek”) and Demery Resources Company, LLC ("Demery") from the Coal Mining segment into the NAMining segment as these operations provide mining solutions for producers of industrial minerals, rather than for power generation. The Coal Mining segment now includes only mines that deliver coal for power generation. This segment reporting change has no impact on consolidated operating results. All prior period segment information has been reclassified to conform to the new presentation. See Note 8 to the Unaudited Condensed Consolidated Financial Statements for further discussion of segment reporting. The Company’s operating segments are further described below: Coal Mining Segment The Coal Mining segment, operating as The North American Coal Corporation ® ("NACoal"), operates surface coal mines under long-term contracts with power generation companies pursuant to a service-based business model. Lignite coal is surface mined in North Dakota, Texas and Mississippi. Each mine is fully integrated with its customer's operations and is the exclusive supplier of coal to its customers' facilities. During the three and six months ended June 30, 2022, the Coal Mining segment's operating coal mines were: The Coteau Properties Company (“Coteau”), Coyote Creek Mining Company, LLC (“Coyote Creek”), The Falkirk Mining Company (“Falkirk”), Mississippi Lignite Mining Company (“MLMC”) and The Sabine Mining Company (“Sabine”). Each of these mines deliver their coal production to adjacent power plants or synfuels plants under long-term supply contracts. MLMC’s coal supply contract contains a take or pay provision; all other coal supply contracts are requirements contracts under which earnings can fluctuate. Certain coal supply contracts can be terminated early, which would result in a reduction to future earnings. On May 2, 2022, Great River Energy (“GRE”) completed the sale of Coal Creek Station and the adjacent high-voltage direct current transmission line to Rainbow Energy Center, LLC (“Rainbow Energy”) and its affiliates. As a result of the completion of the sale of Coal Creek Station, the existing Coal Sales Agreement, the existing Mortgage and Security Agreement and the existing Option Agreement between GRE and Falkirk were terminated. The Company recognized a gain of $30.9 million within the accompanying Unaudited Condensed Consolidated Statements of Operations during the second quarter of 2022 as GRE paid NACoal $14.0 million in cash, as well as transferred ownership of an office building with an estimated fair value of $4.1 million, and conveyed membership units in a privately-held company involved in the ethanol industry with an estimated fair value of $12.8 million, as agreed to under the termination and release of claims agreement between Falkirk and GRE. Prior to receiving the membership units from GRE, the Company held a $5.0 million investment in the same privately-held company carried at cost, less impairment. Subsequent to the receipt of the additional membership units on May 2, 2022, the Company will prospectively account for the investment under the equity method of accounting. Due to a lag in financial reporting of the privately-held company, the Company has not recorded its share of earnings or losses in the three or six months ended June 30, 2022. On a go-forward basis, earnings or losses from this investment will be recorded on a one quarter lag. See Note 5 for further discussion on fair value. The new Coal Sales Agreement (“CSA”) between Falkirk and Rainbow Energy became effective upon the closing of the transaction. Falkirk will continue to supply all coal requirements of Coal Creek Station. Falkirk will be paid a management fee and Rainbow Energy will be responsible for funding all mine operating costs, including mine reclamation, and directly or indirectly providing all of the capital required to operate the mine. The initial production period is expected to run ten years from the effective date of the CSA, but the CSA may be extended or terminated early under certain circumstances. To support the transfer to new ownership, Falkirk has agreed to a reduction in the current per ton management fee from the effective date of the new CSA through May 31, 2024. After May 31, 2024, the per ton management fee increases to a higher base in line with 2021 fee levels, and thereafter adjusts annually according to an index which tracks broad measures of U.S. inflation. During the three and six months ended June 30, 2021, the Coal Mining segment's operating coal mines also included Bisti Fuels Company, LLC (“Bisti”). Effective September 30, 2021, the contract mining agreement between Bisti and its customer, Navajo Transitional Energy Company ("NTEC"), was terminated. Coteau operates the Freedom Mine in North Dakota. All coal production from the Freedom Mine is delivered to Basin Electric Power Cooperative (“Basin Electric”). Basin Electric utilizes the coal at the Great Plains Synfuels Plant (the “Synfuels Plant”), Antelope Valley Station and Leland Olds Station. The Synfuels Plant is a coal gasification plant, owned by Dakota Gasification Company (“Dakota Gas’), a subsidiary of Basin Electric, that manufactures synthetic natural gas and produces fertilizers, solvents, phenol, carbon dioxide, and other chemical products for sale. During 2020, Basin Electric informed Coteau that it is considering changes that may result in modifications to its Synfuels Plant that could potentially reduce or eliminate coal requirements at the Synfuels Plant. During 2021, Bakken Energy (“Bakken”) and Basin Electric signed a non-binding term sheet to transfer ownership of the assets of Dakota Gas to Bakken. Bakken stated the closing date is expected to be April 1, 2023. The closing is subject to the satisfaction of specified conditions. As part of the term sheet between Basin Electric and Bakken, Basin Electric indicated that the Synfuels Plant will continue existing operations through 2026. Basin Electric is also considering other options for the Synfuels Plant if the transaction with Bakken does not close. Sabine operates the Sabine Mine in Texas. All production from Sabine is delivered to Southwestern Electric Power Company's (“SWEPCO”) Henry W. Pirkey Plant (the “Pirkey Plant”). SWEPCO is an American Electric Power (“AEP”) company. AEP intends to retire the Pirkey Plant in 2023. Sabine expects deliveries to cease during the first quarter of 2023 at which time it expects to begin final reclamation. Funding for mine reclamation is the responsibility of SWEPCO. At Coteau, Coyote Creek, Falkirk and Sabine, the Company is paid a management fee per ton of coal or heating unit (MMBtu) delivered. Each contract specifies the indices and mechanics by which fees change over time, generally in line with broad measures of U.S. inflation. The customers are responsible for funding all mine operating costs, including final mine reclamation, and directly or indirectly provide all of the capital required to build and operate the mine. This contract structure eliminates exposure to spot coal market price fluctuations while providing income and cash flow with minimal capital investment. Other than at Coyote Creek, debt financing provided by or supported by the customers is without recourse to NACCO and NACoal. See Note 6 for further discussion of Coyote Creek's guarantees. Coteau, Coyote Creek, Falkirk and Sabine each meet the definition of a variable interest entity ("VIE"). In each case, NACCO is not the primary beneficiary of the VIE as it does not exercise financial control; therefore, NACCO does not consolidate the results of these operations within its financial statements. Instead, these contracts are accounted for as equity method investments. The income before income taxes associated with these VIEs is reported as Earnings of unconsolidated operations on the Unaudited Condensed Consolidated Statements of Operations and the Company’s investment is reported on the line Investments in unconsolidated subsidiaries in the Unaudited Condensed Consolidated Balance Sheets. The mines that meet the definition of a VIE are referred to collectively as the “Unconsolidated Subsidiaries.” For tax purposes, the Unconsolidated Subsidiaries are included within the NACCO consolidated U.S. tax return; therefore, the Income tax provision line on the Unaudited Condensed Consolidated Statements of Operations includes income taxes related to these entities. See Note 6 for further information on the Unconsolidated Subsidiaries. While Falkirk meets the definition of a VIE, the completion of the Rainbow Energy transaction resulted in a VIE reconsideration event. As the terms of the contract between Falkirk and Rainbow Energy are substantially the same as the terms of the contract between Falkirk and GRE, Falkirk will remain a VIE and Rainbow Energy is the primary beneficiary; therefore, NACCO will continue to account for Falkirk under the equity method. The Company performs contemporaneous reclamation activities at each mine in the normal course of operations. Under all of the Unconsolidated Subsidiaries’ contracts, the customer has the obligation to fund final mine reclamation activities. Under certain contracts, the Unconsolidated Subsidiary holds the mine permit and is therefore responsible for final mine reclamation activities. To the extent the Unconsolidated Subsidiary performs such final reclamation, it is compensated for providing those services in addition to receiving reimbursement from customers for costs incurred. The MLMC contract is the only operating coal contract in which the Company is responsible for all operating costs, capital requirements and final mine reclamation; therefore, MLMC is consolidated within NACCO’s financial statements. MLMC sells coal to its customer at a contractually agreed-upon price which adjusts monthly, primarily based on changes in the level of established indices which reflect general U.S. inflation rates. Profitability at MLMC is affected by customer demand for coal and changes in the indices that determine sales price and actual costs incurred. As diesel fuel is heavily weighted among the indices used to determine the coal sales price, fluctuations in diesel fuel prices can result in significant fluctuations in earnings at MLMC. MLMC delivers coal to the Red Hills Power Plant in Ackerman, Mississippi. The Red Hills Power Plant supplies electricity to the Tennessee Valley Authority ("TVA") under a long-term Power Purchase Agreement. MLMC’s contract with its customer runs through 2032. TVA’s power portfolio includes coal, nuclear, hydroelectric, natural gas and renewables. The decision of which power plants to dispatch is determined by TVA. Reduction in dispatch of the Red Hills Power Plant will result in reduced earnings at MLMC. NAMining Segment The NAMining segment provides value-added contract mining and other services for producers of industrial minerals. The segment is a primary platform for the Company’s growth and diversification of mining activities outside of the thermal coal industry. NAMining provides contract mining services for independently owned mines and quarries, creating value for its customers by performing the mining aspects of its customers’ operations. This allows customers to focus on their areas of expertise: materials handling and processing, product sales and distribution. NAMining historically operated primarily at limestone quarries in Florida, but is focused on continuing to expand outside of Florida, mining materials other than limestone and expanding the scope of mining operations provided to its customers. NAMining utilizes both fixed price and management fee contract structures. Certain of the entities within the NAMining segment are VIEs and are accounted for under the equity method as Unconsolidated Subsidiaries. See Note 6 for further discussion. Minerals Management Segment The Minerals Management segment derives income primarily by leasing its royalty and mineral interests to third-party exploration and production companies, and, to a lesser extent, other mining companies, granting them the rights to explore, develop, mine, produce, market and sell gas, oil, and coal in exchange for royalty payments based on the lessees' sales of those minerals. During 2021 and 2020, the Minerals Management segment acquired mineral interests, primarily in the Eagle Ford and Permian Basins in Texas. During the first six months of 2022, the Minerals Management segment had capital expenditures of $1.0 million, primarily for mineral interests in the New Mexico portion of the Permian Basin. The Minerals Management segment intends to make future acquisitions of mineral and royalty interests that meet the Company’s acquisition criteria as part of its growth strategy. The Company’s legacy royalty and mineral interests are located in Ohio (Utica and Marcellus shale natural gas), Louisiana (Haynesville shale and Cotton Valley formation natural gas), Texas (Cotton Valley and Austin Chalk formation natural gas), Mississippi (coal), Pennsylvania (coal, coalbed methane and Marcellus shale natural gas), Alabama (coal, coalbed methane and natural gas) and North Dakota (coal, oil and natural gas). The majority of the Company’s legacy reserves were acquired as part of its historical coal mining operations. The Minerals Management segment owns royalty interests, mineral interests, nonparticipating royalty interests, and overriding royalty interests. The Company may own more than one type of mineral and royalty interest in the same tract of land. For example, where the Company owns an overriding royalty interest in a lease on the same tract of land in which it owns a mineral interest, the overriding royalty interest in that tract will relate to the same gross acres as the mineral interest in that tract. The Minerals Management segment will benefit from the continued development of its mineral properties without the need for investment of additional capital once mineral and royalty interests have been acquired. The Minerals Management segment does not have any investments under which it would be required to bear the cost of exploration, production or development. As an owner of royalty and mineral interests, the Company’s access to information concerning activity and operations of its royalty and mineral interests is limited. The Company does not have information that would be available to a company with oil and natural gas operations because detailed information is not generally available to owners of royalty and mineral interests. Basis of Presentation: These financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position of the Company at June 30, 2022, the results of its operations, comprehensive income, cash flows and changes in equity for the six months ended June 30, 2022 and 2021 have been included. These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021. The balance sheet at December 31, 2021 has been derived from the audited financial statements at that date but does not include all of the information or notes required by U.S. GAAP for complete financial statements. Certain amounts in the prior period Unaudited Condensed Consolidated Financial Statements have been reclassified to conform to the current period's presentation. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Nature of Performance Obligations At contract inception, the Company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promised good or service that is distinct. To identify the performance obligations, the Company considers all of the goods or services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. Each mine has a contract with its respective customer that represents a contract under ASC 606. For its consolidated entities, the Company’s performance obligations vary by contract and consist of the following: At MLMC, each MMBtu delivered during the production period is considered a separate performance obligation. Revenue is recognized at the point in time that control of each MMBtu of lignite transfers to the customer. Fluctuations in revenue from period to period generally result from changes in customer demand. At NAMining, the management service is primarily to oversee the operation of the equipment, and delivery of aggregates or other minerals is the performance obligation accounted for as a series. Performance momentarily creates an asset that the customer simultaneously receives and consumes; therefore, control is transferred to the customer over time. Consistent with the conclusion that the customer simultaneously receives and consumes the benefits provided, an input-based measure of progress is appropriate. As each month of service is completed, revenue is recognized for the amount of actual costs incurred, plus the management fee or fixed fee and the general and administrative fee (as applicable). Fluctuations in revenue from period to period result from changes in customer demand primarily due to increases and decreases in activity levels on individual contracts and variances in reimbursable costs. Included within NAMining, Caddo Creek has a fixed-price contract to perform mine reclamation. The management service to perform mine reclamation is the performance obligation accounted for as a series. Performance momentarily creates an asset that the customer simultaneously receives and consumes; therefore, control is transferred to the customer over time. Revenue from this contract is recognized over time utilizing the cost-to-cost method to measure the extent of progress toward completion of the performance obligation. The Company believes the cost-to-cost method is the most appropriate method to measure progress and that the rate at which costs are incurred to fulfill the contract best depicts the transfer of control to the customer. The extent of progress towards completion is measured based on the ratio of costs incurred to date compared to total estimated costs at completion, and revenue is recorded proportionally based on an estimated profit margin. The Minerals Management segment enters into contracts which grant third-party lessees the right to explore, develop, produce and sell minerals controlled by the Company. These arrangements result in the transfer of mineral rights for a period of time; however, no rights to the actual land are granted other than access for purposes of exploration, development, production and sales. The mineral rights revert back to the Company at the expiration of the contract. Under these contracts, granting exclusive right, title, and interest in and to minerals is the performance obligation. The performance obligation under these contracts represents a series of distinct goods or services whereby each day of access that is provided is distinct. The transaction price consists of a variable sales-based royalty and, in certain arrangements, a fixed component in the form of an up-front lease bonus payment. As the amount of consideration the Company will ultimately be entitled to is entirely susceptible to factors outside its control, the entire amount of variable consideration is constrained at contract inception. The Company believes that the provisions of royalty contracts are customary in the industry. Up-front lease bonus payments represent the fixed portion of the transaction price and are recognized over the primary term of the contract, which is generally five years. Significant Judgments The Company’s contracts with its customers contain different types of variable consideration including, but not limited to, management fees that adjust based on volumes or MMBtu delivered, however, the terms of these variable payments relate specifically to the Company's efforts to satisfy one or more, but not all of, the performance obligations (or to a specific outcome from satisfying the performance obligations) in the contract. Therefore, the Company allocates each variable payment (and subsequent changes to that payment) entirely to the specific performance obligation to which it relates. Management fees, as well as general and administrative fees, are also adjusted based on changes in specified indices (e.g., CPI) to compensate for general inflation changes. Index adjustments, if applicable, are effective prospectively. Recognition of revenue and recognition of profit related to the Caddo Creek contract requires the use of assumptions and estimates related to the total contract value, the total cost at completion, and the measurement of progress towards completion of the performance obligation. Due to the nature of the contract, developing the estimated total contract value and total cost at completion requires the use of significant judgment. The total contract value includes variable consideration. The Company includes variable consideration in the transaction price at the most likely amount to be earned, based upon the Company’s assessment of expected performance. The Company records these amounts only to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Cost Reimbursement Certain contracts include reimbursement from customers of actual costs incurred for the purchase of supplies, equipment and services in accordance with contractual terms. Such reimbursable revenue is variable and subject to uncertainty, as the amounts received and timing thereof is highly dependent on factors outside of the Company’s control. Accordingly, reimbursable revenue is fully constrained and not recognized until the uncertainty is resolved, which typically occurs when the related costs are incurred on behalf of a customer. The Company is considered a principal in such transactions and records the associated revenue at the gross amount billed to the customer with the related costs recorded as an expense within cost of sales. Prior Period Performance Obligations The Company records royalty income in the month production is delivered to the purchaser. As a non-operator, the Company has limited visibility into when new wells start producing and production statements may not be received for 30 to 90 days or more after the date production is delivered. As a result, the Company is required to estimate the amount of production delivered to the purchaser of the product and the price that will be received for the sale of the product. The expected sales volumes and prices for these properties are estimated and recorded in "Trade accounts receivable" in the accompanying Unaudited Condensed Consolidated Balance Sheets. The difference between the Company’s estimates and the actual amounts received is recorded in the month that payment is received from the third-party lessee. For the three months ended June 30, 2022, royalty income recognized in the reporting periods related to performance obligations satisfied in prior reporting periods was immaterial. For the six months ended June 30, 2022, royalty income of $2.1 million was recognized for a settlement related to the Company’s ownership interest in certain mineral rights. For the three and six months ended June 30, 2021, royalty income recognized in the reporting periods related to performance obligations satisfied in prior reporting periods was immaterial. Disaggregation of Revenue In accordance with ASC 606-10-50, the Company disaggregates revenue from contracts with customers into major goods and service lines and timing of transfer of goods and services. The Company determined that disaggregating revenue into these categories achieves the disclosure objective of depicting how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The Company’s business consists of the Coal Mining, NAMining and Minerals Management segments as well as Unallocated Items. See Note 8 to the Unaudited Condensed Consolidated Financial Statements for further discussion of segment reporting. THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 JUNE 30 2022 2021 2022 2021 Timing of Revenue Recognition Goods transferred at a point in time $ 25,986 $ 20,117 $ 46,359 $ 41,495 Services transferred over time 35,383 25,779 70,033 49,506 Total revenues $ 61,369 $ 45,896 $ 116,392 $ 91,001 Contract Balances The opening and closing balances of the Company’s current and long-term accounts receivable, contract assets and contract liabilities are as follows: Contract balances Trade accounts receivable, net Contract asset Contract liability (current) Contract liability (long-term) Balance, January 1, 2022 $ 25,667 $ 5,985 $ 4,082 $ 1,453 Balance, June 30, 2022 32,143 5,985 1,803 1,239 Increase (decrease) $ 6,476 $ — $ (2,279) $ (214) As described above, the Company enters into royalty contracts that grant exclusive right, title, and interest in and to minerals. The transaction price consists of a variable sales-based royalty and, in certain arrangements, a fixed component in the form of an up-front lease bonus payment. The timing of the payment of the fixed portion of the transaction price is upfront, however, the performance obligation is satisfied over the primary term of the contract, which is generally five years. Therefore, at the time any such up-front payment is received, a contract liability is recorded which represents deferred revenue. The amount of royalty revenue recognized in both of the three months ended June 30, 2022 and 2021 that was included in the opening contract liability was $0.3 million. The amount of royalty revenue recognized in both of the six months ended June 30, 2022 and 2021 that was included in the opening contract liability was $0.5 million. This revenue consists of up-front lease bonus payments received under royalty contracts that are recognized over the primary term of the royalty contracts, which are generally five years. The Company expects to recognize an additional $1.6 million in the remainder of 2022, $1.3 million in 2023, $0.1 million in 2024, and de minimis amounts in 2025 and 2026 related to the contract liability remaining at June 30, 2022. The difference between the opening and closing balances of the Company’s contract balances results from the timing difference between the Company’s performance and the customer’s payment. The Company has no contract assets recognized from the costs to obtain or fulfill a contract with a customer. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are summarized as follows: JUNE 30 DECEMBER 31 Coal $ 16,855 $ 19,352 Mining supplies 40,101 34,733 Total inventories $ 56,956 $ 54,085 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Stock Repurchase Program: On November 10, 2021, the Company's Board of Directors approved a stock repurchase program ("2021 Stock Repurchase Program") providing for the purchase of up to $20.0 million of the Company’s outstanding Class A common stock through December 31, 2023. The timing and amount of any repurchases under the 2021 Stock Repurchase Program are determined at the discretion of the Company's management based on a number of factors, including the availability of capital, other capital allocation alternatives, |
Fair Value Disclosure
Fair Value Disclosure | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosure | Fair Value Disclosure The following table presents the Company's assets and liabilities accounted for at fair value on a recurring basis: Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs Description Date (Level 1) (Level 2) (Level 3) June 30, 2022 Assets: Equity securities $ 14,788 $ 14,788 $ — $ — $ 14,788 $ 14,788 $ — $ — December 31, 2021 Assets: Equity securities $ 16,070 $ 16,070 $ — $ — $ 16,070 $ 16,070 $ — $ — Bellaire Corporation (“Bellaire”) is a non-operating subsidiary of the Company with legacy liabilities relating to closed mining operations, primarily former Eastern U.S. underground coal mining operations. Prior to 2021, Bellaire contributed $5.0 million to establish a mine water treatment trust (the "Mine Water Treatment Trust") to assure the long-term treatment of post-mining discharge. Bellaire's Mine Water Treatment Trust invests in equity securities that are reported at fair value based upon quoted market prices in active markets for identical assets; therefore, they are classified as Level 1 within the fair value hierarchy. The Company recognized a loss of $1.5 million and $2.1 million during the three and six months ended June 30, 2022, respectively, and a gain of $0.7 million and $1.0 million during the three and six months ended June 30, 2021, respectively, related to the Mine Water Treatment Trust. Prior to 2021, the Company invested $2.0 million in equity securities of a public company with a diversified portfolio of royalty producing mineral interests. The investment is reported at fair value based upon quoted market prices in active markets for identical assets; therefore, it is classified as Level 1 within the fair value hierarchy. The Company recognized a loss of $0.4 million and a gain of $0.8 million during the three and six months ended June 30, 2022, respectively, and a gain of $0.6 million and $1.1 million during the three and six months ended June 30, 2021, respectively, related to the investment in these equity securities. The gains and losses related to equity securities are reported on the line Loss (gain) on equity securities in the Other (income) expense section of the Unaudited Condensed Consolidated Statements of Operations. As discussed in Note 1, the Company recorded the estimated fair value of an office building and membership units of a privately held company during the second quarter of 2022. These fair value measurements were based on significant inputs not observable in the market and thus represent Level 3 measurements within the fair value measurement hierarchy. Level 3 fair market values were determined using a variety of information, including estimated future cash flows and external appraisals, and considered both the income and market approaches. The significant assumptions used in determining the fair value of the membership units are the estimated future cash flows and the discount rate applied to the estimated future cash flows. The estimate of future cash flows is based on available historical information and forecasts provided by the privately held company that are inherently uncertain. Management determined the appropriate discount rate based on the weighted average cost of capital ("WACC"). The WACC takes into account both the after-tax cost of debt and cost of equity. A major component of the cost of equity is the current risk-free rate on twenty-year U.S. Treasury bonds as well as company specific risk and size premiums. In determining the $4.1 million fair value of the office building, the Company engaged an independent real estate appraiser to appraise the property utilizing observed sales transactions for similar assets as well as consideration of an income approach. Prior to receiving the membership units from GRE, the Company held a $5.0 million investment in the same privately-held company. The Company previously elected to use the measurement alternative to fair value included in ASC 321, Investments – Equity Securities , that allows investments without readily determinable fair values to be carried at cost less impairment, if any, adjusted for observable price changes in orderly transactions for the identical or similar investments. The Company determined that the receipt of the additional membership units does not represent an observable transaction as defined in ASC 321. As such, the Company will add the fair value of the additional membership units of $12.8 million to the $5.0 million historical cost basis of the existing membership units, the total of which is the initial measurement of the Company’s equity method investment. The office building is included in Property, plant and equipment, net and the investment in the privately-held company is included in Investment in private company equity units within the accompanying Unaudited Condensed Consolidated Balance Sheets. There were no transfers into or out of Levels 1, 2 or 3 during the six months ended June 30, 2022 and 2021. |
Unconsolidated Subsidiaries
Unconsolidated Subsidiaries | 6 Months Ended |
Jun. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Unconsolidated Subsidiaries | Unconsolidated Subsidiaries Each of the Company's wholly owned Unconsolidated Subsidiaries, within the Coal Mining and NAMining segments, meet the definition of a VIE. The Unconsolidated Subsidiaries are capitalized primarily with debt financing provided by or supported by their respective customers, and generally without recourse to NACCO and NACoal. Although NACoal owns 100% of the equity and manages the daily operations of the Unconsolidated Subsidiaries, the Company has determined that the equity capital provided by NACoal is not sufficient to adequately finance the ongoing activities or absorb any expected losses without additional support from the customers. The customers have a controlling financial interest and have the power to direct the activities that most significantly affect the economic performance of the entities. As a result, the Company is not the primary beneficiary and therefore does not consolidate these entities' financial positions or results of operations. See Note 1 for a discussion of these entities. The Investment in the unconsolidated subsidiaries and related tax positions totaled $15.4 million and $19.1 million at June 30, 2022 and December 31, 2021, respectively. The Company's maximum risk of loss relating to these entities is limited to its invested capital, which was $4.9 million and $7.6 million at June 30, 2022 and December 31, 2021, respectively. Earnings of unconsolidated operations were $14.6 million and $29.2 million during the three and six months ended June 30, 2022, respectively, and $13.5 million and $28.9 million during the three and six months ended June 30, 2021. The contract mining agreement between Bisti and NTEC was terminated effective September 30, 2021. As of October 1, 2021, NTEC assumed control and responsibility for operation and all reclamation of the Navajo Mine. NACoal is a party to certain guarantees related to Coyote Creek. Under certain circumstances of default or termination of Coyote Creek’s Lignite Sales Agreement (“LSA”), NACoal would be obligated for payment of a "make-whole" amount to Coyote Creek’s third-party lenders. The “make-whole” amount is based on the excess, if any, of the discounted value of the remaining scheduled debt payments over the principal amount. In addition, in the event Coyote Creek’s LSA is terminated on or after January 1, 2024 by Coyote Creek’s customers, NACoal is obligated to purchase Coyote Creek’s dragline and rolling stock for the then net book value of those assets. To date, no payments have been required from NACoal since the inception of these guarantees. The Company believes that the likelihood NACoal would be required to perform under the guarantees is remote, and no amounts related to these guarantees have been recorded. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Various legal and regulatory proceedings and claims have been or may be asserted against NACCO and certain subsidiaries relating to the conduct of their businesses. These proceedings and claims are incidental to the ordinary course of business of the Company. Management believes that it has meritorious defenses and will vigorously defend the Company in these actions. Any costs that management estimates will be paid as a result of these claims are accrued when the liability is considered probable and the amount can be reasonably estimated. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. The Company does not accrue liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated or when the liability is believed to be only reasonably possible or remote. For contingencies where an unfavorable outcome is probable or reasonably possible and which are material, the Company discloses the nature of the contingency and, in some circumstances, an estimate of the possible loss. These matters are subject to inherent uncertainties, and unfavorable rulings could occur. If an unfavorable ruling were to occur, there exists the possibility of an adverse impact on the Company’s financial position, results of operations and cash flows of the period in which the ruling occurs, or in future periods. |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company’s operating segments are: (i) Coal Mining, (ii) NAMining and (iii) Minerals Management. The Company determines its reportable segments by first identifying its operating segments, and then by assessing whether any components of these segments constitute a business for which discrete financial information is available and where segment management regularly reviews the operating results of that component. The Company’s Chief Operating Decision Maker utilizes operating profit to evaluate segment performance and allocate resources. The Company has items not directly attributable to a reportable segment that are not included as part of the measurement of segment operating profit, which include primarily administrative costs related to public company reporting requirements at the parent company and the financial results of Mitigation Resources and Bellaire. Mitigation Resources generates and sells stream and wetland mitigation credits (known as mitigation banking) and provides services to those engaged in permittee-responsible stream and wetland mitigation. Bellaire manages the Company’s long-term liabilities related to former Eastern U.S. underground mining activities. All financial statement line items below operating profit (other income including interest expense and interest income, the provision for income taxes and net income) are presented and discussed within this Form 10-Q on a consolidated basis. As discussed in Note 1, the Company retrospectively changed its computation of segment operating profit to reclassify the results of Caddo Creek and Demery from the Coal Mining segment into the NAMining segment. See Note 1 for additional discussion of the Company's reportable segments. The following tables present revenue, operating profit, depreciation expense and capital expenditures: THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 JUNE 30 2022 2021 2022 2021 Revenues Coal Mining $ 26,602 $ 20,689 $ 47,564 $ 42,631 NAMining 22,814 19,860 44,218 37,799 Minerals Management 11,962 5,608 24,716 11,108 Unallocated Items 617 910 809 1,053 Eliminations (626) (1,171) (915) (1,590) Total $ 61,369 $ 45,896 $ 116,392 $ 91,001 Operating profit (loss) Coal Mining $ 21,175 $ 7,627 $ 28,527 $ 15,784 NAMining 1,257 1,698 2,528 2,355 Minerals Management 13,073 4,173 24,701 8,408 Unallocated Items (5,952) (4,795) (11,391) (9,568) Eliminations 130 (33) 262 21 Total $ 29,683 $ 8,670 $ 44,627 $ 17,000 THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 JUNE 30 2022 2021 2022 2021 Expenditures for property, plant and equipment and acquisition of mineral interests Coal Mining $ 6,280 $ 3,115 $ 8,000 $ 4,732 NAMining 6,561 2,952 8,381 5,818 Minerals Management 116 5,105 949 5,498 Unallocated Items 7,312 79 7,588 79 Total $ 20,269 $ 11,251 $ 24,918 $ 16,127 Depreciation, depletion and amortization Coal Mining $ 4,388 $ 4,073 $ 8,426 $ 8,228 NAMining 1,493 984 2,960 1,935 Minerals Management 543 522 1,121 969 Unallocated Items 64 38 108 70 Total $ 6,488 $ 5,617 $ 12,615 $ 11,202 |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation: These financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position of the Company at June 30, 2022, the results of its operations, comprehensive income, cash flows and changes in equity for the six months ended June 30, 2022 and 2021 have been included. These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021. The balance sheet at December 31, 2021 has been derived from the audited financial statements at that date but does not include all of the information or notes required by U.S. GAAP for complete financial statements. Certain amounts in the prior period Unaudited Condensed Consolidated Financial Statements have been reclassified to conform to the current period's presentation. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 JUNE 30 2022 2021 2022 2021 Timing of Revenue Recognition Goods transferred at a point in time $ 25,986 $ 20,117 $ 46,359 $ 41,495 Services transferred over time 35,383 25,779 70,033 49,506 Total revenues $ 61,369 $ 45,896 $ 116,392 $ 91,001 |
Contract Balances | The opening and closing balances of the Company’s current and long-term accounts receivable, contract assets and contract liabilities are as follows: Contract balances Trade accounts receivable, net Contract asset Contract liability (current) Contract liability (long-term) Balance, January 1, 2022 $ 25,667 $ 5,985 $ 4,082 $ 1,453 Balance, June 30, 2022 32,143 5,985 1,803 1,239 Increase (decrease) $ 6,476 $ — $ (2,279) $ (214) |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories are summarized as follows: JUNE 30 DECEMBER 31 Coal $ 16,855 $ 19,352 Mining supplies 40,101 34,733 Total inventories $ 56,956 $ 54,085 |
Fair Value Disclosure (Tables)
Fair Value Disclosure (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents the Company's assets and liabilities accounted for at fair value on a recurring basis: Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs Description Date (Level 1) (Level 2) (Level 3) June 30, 2022 Assets: Equity securities $ 14,788 $ 14,788 $ — $ — $ 14,788 $ 14,788 $ — $ — December 31, 2021 Assets: Equity securities $ 16,070 $ 16,070 $ — $ — $ 16,070 $ 16,070 $ — $ — |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting Information | The following tables present revenue, operating profit, depreciation expense and capital expenditures: THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 JUNE 30 2022 2021 2022 2021 Revenues Coal Mining $ 26,602 $ 20,689 $ 47,564 $ 42,631 NAMining 22,814 19,860 44,218 37,799 Minerals Management 11,962 5,608 24,716 11,108 Unallocated Items 617 910 809 1,053 Eliminations (626) (1,171) (915) (1,590) Total $ 61,369 $ 45,896 $ 116,392 $ 91,001 Operating profit (loss) Coal Mining $ 21,175 $ 7,627 $ 28,527 $ 15,784 NAMining 1,257 1,698 2,528 2,355 Minerals Management 13,073 4,173 24,701 8,408 Unallocated Items (5,952) (4,795) (11,391) (9,568) Eliminations 130 (33) 262 21 Total $ 29,683 $ 8,670 $ 44,627 $ 17,000 THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 JUNE 30 2022 2021 2022 2021 Expenditures for property, plant and equipment and acquisition of mineral interests Coal Mining $ 6,280 $ 3,115 $ 8,000 $ 4,732 NAMining 6,561 2,952 8,381 5,818 Minerals Management 116 5,105 949 5,498 Unallocated Items 7,312 79 7,588 79 Total $ 20,269 $ 11,251 $ 24,918 $ 16,127 Depreciation, depletion and amortization Coal Mining $ 4,388 $ 4,073 $ 8,426 $ 8,228 NAMining 1,493 984 2,960 1,935 Minerals Management 543 522 1,121 969 Unallocated Items 64 38 108 70 Total $ 6,488 $ 5,617 $ 12,615 $ 11,202 |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
May 02, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) operatingSegment | Jun. 30, 2021 USD ($) | |
Long-term Purchase Commitment [Line Items] | |||||
Number of operating segments | operatingSegment | 3 | ||||
Gain on contract termination | $ 14,000 | $ 0 | $ 14,000 | $ 0 | |
Expenditures for property, plant and equipment and acquisition of mineral interests | 20,269 | $ 11,251 | 24,918 | $ 16,127 | |
Coal Mining | |||||
Long-term Purchase Commitment [Line Items] | |||||
Fair value gained from contract termination | $ 4,100 | ||||
Coal Mining | Falkirk | |||||
Long-term Purchase Commitment [Line Items] | |||||
Total gain on contract termination | $ 30,900 | ||||
Gain on contract termination | 14,000 | ||||
Fair value of privately-held company | 12,800 | ||||
Investment | $ 5,000 | ||||
Minerals Management | New Mexico Portion, Permian Basin | |||||
Long-term Purchase Commitment [Line Items] | |||||
Expenditures for property, plant and equipment and acquisition of mineral interests | $ 1,000 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | ||||
Primary term of contract | 5 years | |||
Performance obligations satisfied in prior period, amount recognized | $ 0 | $ 0 | $ 2.1 | $ 0 |
Revenue recognized in contract liability | 0.3 | $ 0.3 | 0.5 | $ 0.5 |
Contract assets recognized | $ 0 | $ 0 |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 61,369 | $ 45,896 | $ 116,392 | $ 91,001 |
Goods transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 25,986 | 20,117 | 46,359 | 41,495 |
Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 35,383 | $ 25,779 | $ 70,033 | $ 49,506 |
Revenue Recognition (Contract B
Revenue Recognition (Contract Balances) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Trade accounts receivable, net | |
Balance, January 1, 2022 | $ 25,667 |
Balance, June 30, 2022 | 32,143 |
Increase (decrease) in trade accounts receivables, net | 6,476 |
Contract asset (long-term) | |
Balance, January 1, 2022 | 5,985 |
Balance, June 30, 2022 | 5,985 |
Increase (decrease) in contract asset (long-term) | 0 |
Contract liability (current) | |
Balance, January 1, 2022 | 4,082 |
Balance, June 30, 2022 | 1,803 |
Increase (decrease) in contract liability (current) | (2,279) |
Contract liability (long-term) | |
Balance, January 1, 2022 | 1,453 |
Balance, June 30, 2022 | 1,239 |
Increase (decrease) in contract liability (long-term) | $ (214) |
Revenue Recognition (Remaining
Revenue Recognition (Remaining Performance Obligations) (Details) $ in Millions | Jun. 30, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized | $ 1.6 |
Expected timing of satisfaction | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized | $ 1.3 |
Expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized | $ 0.1 |
Expected timing of satisfaction | 1 year |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Coal | $ 16,855 | $ 19,352 |
Mining supplies | 40,101 | 34,733 |
Total inventories | $ 56,956 | $ 54,085 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) | Nov. 10, 2021 USD ($) |
2021 Stock Repurchase Program | |
Class of Stock [Line Items] | |
Stock repurchase program, authorized amount | $ 20,000,000 |
Fair Value Disclosure (On a Rec
Fair Value Disclosure (On a Recurring Basis) (Details) - Fair value measurements, recurring - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Equity securities | $ 14,788 | $ 16,070 |
Assets at fair value | 14,788 | 16,070 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Equity securities | 0 | 0 |
Assets at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Equity securities | 0 | 0 |
Assets at fair value | 0 | 0 |
Total | ||
Assets: | ||
Equity securities | 14,788 | 16,070 |
Assets at fair value | $ 14,788 | $ 16,070 |
Fair Value Disclosure (Narrativ
Fair Value Disclosure (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | May 02, 2022 | Dec. 31, 2020 | |
Coal Mining | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value gained from contract termination | $ 4.1 | |||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value measurements, recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Unrealized (loss) gain on equity securities | $ (0.4) | $ 0.6 | $ 0.8 | $ 1.1 | ||
Significant Unobservable Inputs (Level 3) | Fair value measurements, nonrecurring | Coal Mining | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value gained from contract termination | 4.1 | |||||
Investment | 5 | 5 | $ 5 | |||
Fair value of privately-held company | 12.8 | 12.8 | ||||
Bellaire | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value measurements, recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Unrealized (loss) gain on equity securities | $ (1.5) | $ 0.7 | $ (2.1) | $ 1 | ||
Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value measurements, recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Equity securities cost | $ 2 | |||||
Carrying Value | Bellaire | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value measurements, recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Equity securities cost | $ 5 |
Unconsolidated Subsidiaries (Na
Unconsolidated Subsidiaries (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Variable Interest Entity [Line Items] | |||||
Variable interest entity, reporting entity involvement, maximum risk of loss | $ 4,900 | $ 4,900 | $ 7,600 | ||
Earnings of unconsolidated operations | 14,622 | $ 13,542 | 29,214 | $ 28,884 | |
Other noncurrent assets | |||||
Variable Interest Entity [Line Items] | |||||
Investments in unconsolidated subsidiaries and related tax positions | $ 15,400 | $ 15,400 | $ 19,100 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 61,369 | $ 45,896 | $ 116,392 | $ 91,001 |
Operating profit (loss) | 29,683 | 8,670 | 44,627 | 17,000 |
Expenditures for property, plant and equipment and acquisition of mineral interests | 20,269 | 11,251 | 24,918 | 16,127 |
Depreciation, depletion and amortization | 6,488 | 5,617 | 12,615 | 11,202 |
Operating segments | Coal Mining | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 26,602 | 20,689 | 47,564 | 42,631 |
Operating profit (loss) | 21,175 | 7,627 | 28,527 | 15,784 |
Expenditures for property, plant and equipment and acquisition of mineral interests | 6,280 | 3,115 | 8,000 | 4,732 |
Depreciation, depletion and amortization | 4,388 | 4,073 | 8,426 | 8,228 |
Operating segments | NAMining | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 22,814 | 19,860 | 44,218 | 37,799 |
Operating profit (loss) | 1,257 | 1,698 | 2,528 | 2,355 |
Expenditures for property, plant and equipment and acquisition of mineral interests | 6,561 | 2,952 | 8,381 | 5,818 |
Depreciation, depletion and amortization | 1,493 | 984 | 2,960 | 1,935 |
Operating segments | Minerals Management | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 11,962 | 5,608 | 24,716 | 11,108 |
Operating profit (loss) | 13,073 | 4,173 | 24,701 | 8,408 |
Expenditures for property, plant and equipment and acquisition of mineral interests | 116 | 5,105 | 949 | 5,498 |
Depreciation, depletion and amortization | 543 | 522 | 1,121 | 969 |
Unallocated Items | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 617 | 910 | 809 | 1,053 |
Operating profit (loss) | (5,952) | (4,795) | (11,391) | (9,568) |
Expenditures for property, plant and equipment and acquisition of mineral interests | 7,312 | 79 | 7,588 | 79 |
Depreciation, depletion and amortization | 64 | 38 | 108 | 70 |
Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (626) | (1,171) | (915) | (1,590) |
Operating profit (loss) | $ 130 | $ (33) | $ 262 | $ 21 |