On this page of StockholderLetter.com we present the 4/5/2023 shareholder letter from NACCO INDUSTRIES INC — ticker symbol NC. Reading current and past NC letters to shareholders can bring important insights into the investment thesis.

 •  4/5/2023 Letter Continued (Full PDF)
 •  4/10/2024 NC Stockholder Letter
 •  4/7/2025 NC Stockholder Letter
 •  More "Metals & Mining" Category Stockholder Letters
 •  NC Benford's Law Stock Score = 76

NC 4/5/2023 Shareholder/Stockholder Letter Transcript:

NACCO Industries  
Bringing Natural Resources to Life
ANNUAL REPORT
2022

1

NACCO Industries  
CONTENTS
Our Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Selected Financial & Operating Data . . . . . . . . . . . . . 2
Letter to Our Stockholders . . . . . . . . . . . . . . . . . . . . . . 4
Corporate Responsibility. . . . . . . . . . . . . . . . . . . . . . . . . 9
Form 10-K . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
Directors and Leadership . . . . . . . . . . . . . . . . . . . . . . 144
With a broad portfolio of natural
resources businesses, we are
well positioned to capitalize on
our core strengths and achieve
long-term growth.
Corporate Information . . . . . . . . . . Inside Back Cover
ABOUT THE COVER
NACCO   s 110 years of growth and success are founded on
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OUR OPERATIONS
N

OPERATIONS
NACCO Industries  
1

SELECTED FINANCIAL
& OPERATING DATA
NACCO Industries, Inc. and Subsidiaries
Year Ended December 31
2022(1)(2)
2021(1)
2020 (2)
(In thousands, except per share data)
Operating Statement Data:
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Basic earnings per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted earnings per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 241,719
$ 69,986
$ 74,158
$ 10.14
$ 10.06
$ 191,846
$ 55,410
$ 48,125
6.73
6.69
$ 128,432
$ 13,448
$ 14,793
2.11
2.10
Per Share and Share Data:
Cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.8200
Market value at December 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 38.00
Stockholders    equity at December 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 58.10
7,349
Actual shares outstanding at December 31 . . . . . . . . . . . . . . . . . . . . . . . . . .
7,312
Basic weighted average shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . .
7,373
Diluted weighted average shares outstanding . . . . . . . . . . . . . . . . . . . . . . .
$ 0.7850
$ 36.29
$ 49.02
7,183
7,146
7,190
$ 0.7675
$ 26.30
$ 42.59
7,058
7,026
7,057
(1) During 2022 and 2021, the Company received cash contract termination settlements of $14.0 million and $10.3 million, respectively. In addition, in 2022,
the Company recorded non-cash termination settlements of $16.9 million.
(2) During 2022 and 2020, the Company recorded non-cash impairment charges of $3.9 million and $8.4 million, respectively.
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NACCO Industries  
Our strong 2022 results were made
possible by our dedicated employees.
Year Ended December 31
2022(1)(2)
2021(1)
2020 (2)
(In thousands, except employee data)
Balance Sheet Data at December 31:
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stockholders    equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 110,748
$ 86,005
$ 507,220
$ 18,183
$ 352,116
$ 88,450
$ 476,179
$ 24,353
$ 300,624
Cash Flow Data:
Provided by (used for) operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 67,735
Used for investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (33,152)
Cash Flow before financing activities (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 34,583
$ 74,875
$ (44,147)
$ 30,728
$ (2,486)
$ (45,984)
$ (48,470)
Provided by (used for) financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . $
$ (33,173)

Other Data:
Total employees at December 31(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 568,072
$ 16,019
$ 426,966
(9,840)
1,600
1,600
14,028
2,000
(3) Cash Flow before financing activities is equal to net cash provided by (used for) operating activities less net cash used for investing activities.
(4) Includes employees from the unconsolidated mines for all years presented.
Year Ended December 31
2022(1)(2)
2021(1)
2020(2)
(In thousands)
Calculation of Adjusted EBITDA(5)
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 74,158
(30,882)
Contract termination settlements(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2)
3,939
Asset impairment charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13,565
Income tax provision (benefit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,034
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1,449)
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26,816
Depreciation, depletion and amortization expense . . . . . . . . . . . . . . . . . . . . .
Adjusted EBITDA(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 88,181

48,125 $
(10,333)
8,725
1,719
(449)
23,085
$ 70,872 $
14,793
8,359
(535)
1,354
(1,200)
18,114
40,885
(5) Adjusted EBITDA is provided solely as a supplemental disclosure with respect to operating results. Adjusted EBITDA does not represent net income,
as defined by U.S. GAAP, and should not be considered as a substitute for net income, or as an indicator of operating performance. NACCO defines
Adjusted EBITDA as net income before contract termination settlements, asset impairment charges and income taxes, plus net interest expense and
depreciation, depletion and amortization expense. Adjusted EBITDA is not a measurement under U.S. GAAP and is not necessarily comparable with
similarly titled measures of other companies.
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 4/5/2023 Letter Continued (Full PDF)