Hamilton Beach 2013 Annual Report Download

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NACCO Industries, Inc. |2013 Annual Report
STRATEGIC INITIATIVES
SOLID CORE STORE FOCUS
METALLURGICAL COAL PLATFORM
DOMESTIC COAL EXPANSION
COAL TECHNOLOGY
INTERNATIONAL COAL MINING
NON-COAL MATERIALS MINING
ENHANCED PLACEMENTS
INTERNET SALES LEADERSHIP
“ONLY-THE-BEST” MARKET PARTICIPATION
EMERGING GROWTH MARKETS
GLOBAL COMMERCIAL LEADERSHIP

Table of contents

  • Page 1
    NACCO Industries, Inc. | 2013 Annual Report STRATEGIC INITIATIVES M ETALLURGICAL C OAL P LATFORM D OMESTIC C OAL E XPANSION C OAL T ECHNOLOGY I NTERNATIONAL C OAL M INING N ON -C OAL M ATERIALS M INING E NHANCED P LACEMENTS I NTERNET S ALES L EADERSHIP "O NLY- THE -B EST " M ...

  • Page 2
    ... Return on Capital Employed:(1) (15.6%) Kitchen Collection is the nation's leading specialty retailer of kitchen and related products in factory outlet malls with 304 stores throughout the United States at December 31, 2013. (1) This Annual Report contains references to non-GAAP financial measures...

  • Page 3
    ...Mining Company in North Dakota. Middle: Hamilton Beach® products, from left to right: Hamilton Beach® Searing Grill, Proctor Silex® 1.5-quart Slow Cooker, Hamilton Beach® Stainless Steel Electric Kettle. Bottom: Kitchen Collection provides a wide variety of specialty kitchen-related products, as...

  • Page 4
    ... $60 million to NACCO and dismissal of the lawsuit with prejudice. The payment was received in February 2011. Litigation costs related to this matter were $2.8 million, $18.8 million and $1.1 million in 2011, 2010 and 2009, respectively. (3) During 2009, the Company's North American Coal subsidiary...

  • Page 5
    ... American Coal Corporation ...$ Hamilton Beach Brands ...Kitchen Collection ...NACCO and Other ...Consolidated Cash Flow before Financing Activities from continuing operations(5) ...$ Used for financing activities from continuing operations ...$ Other Data: Adjusted EBITDA(6) ...$ Total employees...

  • Page 6
    ... in then, NACCO has remained 2013. Customer visits to stores, focused on key strategic initiatives SUBSIDIARY LONG-TERM particularly at traditional and FINANCIAL OBJECTIVES: for its North American Coal outlet malls, continued to drop Corporation ("NACoal") and • NACoal: Earn a minimum return on in...

  • Page 7
    ... closings of unprofitable stores and a write-down of certain inventory to fair market value. In 2013, strong returns on capital employed(1) ("ROTCE") on a net debt basis were realized at both NACoal (13.0 percent) and HBB (34.9 percent). However, Kitchen Collection generated a loss. The Company...

  • Page 8
    ... planned power plant operating levels. Demery Resources Company's Five Forks Mine commenced delivering coal to its customer in 2012 and full production levels are expected to be reached in late 2015. Liberty Fuels also commenced production of lignite coal in 2013 for Mississippi Power Company's new...

  • Page 9
    ...to uncover and mine coal in the pit of the Red Hills Mine. At Right: A new water truck sprays water to maintain good road conditions at the Reed Minerals' Jap Creek mining location. Below: An Easi-Miner mines lignite coal from the ground into a Kress haul truck at the Sabine Mining Company in Texas.

  • Page 10
    ... late 2013. The new mine also uses a variety of other equipment to uncover and mine the lignite coal in the area, including bulldozers and a number of truck/shovel operations. to commence mining operations were issued for the Caddo Creek Resources Company and the Camino Real Fuels projects in Texas...

  • Page 11
    ...in preparation for construction of a new mine. Limerock deliveries in 2014 are expected to be lower than 2013 as customer requirements are expected to decline. Substantial declines in royalty and other income are also expected in 2014 from the high levels realized in 2013 and as a result, net income...

  • Page 12
    ... for extraction at Reed Minerals' Fishtrap mining location. Below: A truck/shovel operation moves coal in the pit of Reed Minerals' Jap Creek mining location. Below: Caterpillar end dump trucks and shovels are used to build the new mining pit at North American Coal's Liberty Mine in Mississippi.

  • Page 13
    ...development, in support of customer power plants which are among the lower-cost producers of electricity on their respective grids. The company hopes that any new EPA regulations will not significantly disturb the current low-cost and reliable power generation structure in favor of high-cost/low CO2...

  • Page 14
    ...market position through product innovation, promotions, increased placements and branding programs, together with appropriate levels of advertising for the company's highly successful and innovative product lines. HBB expects the FlexBrewTM coffee maker, launched in late 2012, and the Hamilton Beach...

  • Page 15
    ...Blender, Hamilton Beach® Big Mouth® Pro Juice Extractor, Hamilton Beach® Durathon® Digital Iron with Retractable Cord, Hamilton Beach® Stack & Press™ 3-Cup Glass Bowl Chopper, Hamilton Beach® 2-Way FlexBrew® Coffee Maker At Left: Hamilton Beach® Countertop Oven with Convection & Rotisserie

  • Page 16
    Above: The new Hamilton® Commercial Fury™ High-Performance Blender - one of Hamilton Beach's many products to increase its global presence in the high-performance commercial blending business. At Left: Hamilton Beach Brands' website has been enhanced to provide increased consumer content and ...

  • Page 17
    ..." high-end small kitchen appliance market selectively. The company is currently working with the Jamba Juice Company to create a product line focused on blending and juicing. HBB is also working with other partners to create additional lines that can be distributed in high-end specialty stores and...

  • Page 18
    ... customer visits. At Left: Hamilton Beach Brands' newest Commercial product, the Blend-in-Cup commercial blender. At Right: Hamilton Beach® Single-Serve FlexBrew® Coffee Maker, Hamilton Beach® Searing Grill, Proctor Silex® 1.5-quart Slow Cooker, Hamilton Beach® Stainless Steel Electric Kettle...

  • Page 19
    ...stores which perform with acceptable profitability. Kitchen Collection plans to maintain a lower number of stores in 2014 and, as a result, expects 2014 revenues to decrease compared with 2013. The net effect of closing stores early in 2014 and the anticipated opening of a small number of new stores...

  • Page 20
    .... As the company improves its business around At Left: A free-standing display of products at the Kitchen Collection® store in Jeffersonville, Ohio, makes it easier for customers to shop and select products. Below: New display layouts and signage at Kitchen Collection's Le Gourmet Chef® store in...

  • Page 21
    ... outlet malls. Kitchen Collection also expects to focus on growth opportunities in e-commerce with a newly revamped website. Conclusion and NACCO Outlook NACCO is a strong, multi-industry company with leading businesses in the mining and small appliances industries, and is well positioned to support...

  • Page 22
    ... to the Company's cost of capital employed, which includes both equity and debt securities, net of cash. (2) Return on equity is defined as net income divided by average equity. * Tax rate of 38% represents the Company's target marginal tax rate compared with 2013's effective income tax rate of 20...

  • Page 23
    ... Vice President, North America Sales and Marketing Keith B. Burns Vice President, Engineering and Information Technology Kathleen L. Diller Vice President, General Counsel and Secretary James H. Taylor Vice President and Chief Financial Officer Richard E. Moss Senior Director, Finance & Treasurer...

  • Page 24
    ... The Annual Meeting of Stockholders of NACCO Industries, Inc. will be held on May 8, 2014, at 9:00 a.m. at the corporate office located at: 5875 Landerbrook Drive, Cleveland, Ohio 44124 Stock Exchange Listing The New York Stock Exchange Symbol: NC Investor Relations Contact Investor questions may...

  • Page 25
    5875 Landerbrook Drive, Suite 220 • Cleveland, Ohio 44124 An Equal Opportunity Employer