Company: NC
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000789933-25-000041
Chunk: 98

Company: NACCO INDUSTRIES INC
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 2
Chunk 98
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15,753 14,970 Amortization of intangible assets245 116 407 242 Gain on sale of assets(14)(79)(86)(89)Operating profit$1,222  $2,767 $5,013 $2,350 

(a) See Note 6 to the Unaudited Condensed Consolidated Financial Statements for a discussion of our unconsolidated subsidiaries.

Second Quarter of 2025 Compared with Second Quarter of 2024

Revenues increased 90.9% in the second quarter of 2025 compared with the second quarter of 2024 primarily due to an increase in customer requirements at MLMC. A boiler issue at the customer's Red Hills Power Plant reduced customer requirements in 2024. 

The following table identifies the components of change in Operating profit for the second quarter of 2025 compared with the second quarter of 2024:

 Operating Profit2024$2,767 Increase (decrease) from:Gross loss(559)Selling, general and administrative expenses(442)Earnings of unconsolidated operations(350)Amortization of intangibles(129)Net change on sale of assets(65)2025$1,222 

Operating profit decreased by $1.5 million in the second quarter of 2025 compared with the second quarter of 2024, primarily due to an increase in gross loss, higher selling, general and administrative expenses and a decrease in earnings of unconsolidated operations. 

Gross loss was unfavorable at MLMC during the second quarter of 2025 compared with the 2024 period. Although the cost per ton delivered improved during the second quarter of 2025, the contractual sales price per ton decreased. In addition, the number of tons sold exceeded tons mined resulting in the recognition of costs previously capitalized into inventory. In comparison, 

22

during the second quarter of 2024, inefficiencies at the customer's power plant created mining inefficiencies, and thus higher mining costs. The tons mined exceeded tons sold resulting in a portion of production costs being capitalized into inventory during the 2024 period. 

The increase in selling, general and administrative expenses was mainly the result of higher employee-related costs. 

The decrease in earnings of unconsolidated operations was primarily due to lower customer demand at Coteau, Coyote and Falkirk, partially offset by higher per ton management fees, mainly the result of temporary price concessions ending at