Hamilton Beach 2011 Annual Report Download - page 12

North American
Coal
2011 Results
NACoal’s long-term coal supply agree-
ments again helped the company achieve
solid performance and steady cash flows
in 2011. However, financial results for the
year were disappointing due to a number
of unfavorable circumstances, which were
generally not within the company’s control.
In December 2010, NACoal’s contract
to provide mining services to the San Miguel
Mine expired. This resulted in considerably
fewer deliveries in 2011 but had minimal
impact on net income. Further reductions in
deliveries and net income were caused by
a significant number of unplanned outage
days at a customer's power plant, excess
rain and snow in the Western United States
that resulted in hydropower, rather than
coal, being utilized to create energy, and
reduced customer requirements at the
limerock dragline mining operations as
the southern Florida construction market
remained weak. In addition, NACoal
received income of $7.4 million, or $4.4
million after tax of $3.0 million, in 2010
related to the reimbursement of previously
recognized costs for pre-development
activities from Mississippi Power Company,
which did not recur in 2011. As a result of
these items, NACoal reported net income
in 2011 of $29.4 million compared with
$39.6 million in 2010.
NACoal generated positive cash flow
before financing activities of $21.0 million.
This was down from the 2010 cash flow
before financing activities of $32.8 million
primarily because 2010 included proceeds
of $11.2 million from the sale of joint
venture assets in Great American Energy.
Nine
M i n i n g
Clockwise from left: The dragline at the Falkirk Mine in North Dakota works into the evening. A truck/shovel operation uncovers coal in one of the pits at The Coteau Properties
Company’s Freedom Mine in North Dakota. The interior of the new dragline being assembled at the Freedom Mine. A moose cools off in a wetland located on reclaimed land
at the Freedom Mine.