Hamilton Beach 2012 Annual Report Download - page 13

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11
North American Coal
2012 Results. NACoal has deliv-
ered strong, stable performance over
the years. 2012 was no exception. In
addition, a few significant transactions
contributed to the improved results
in 2012. During the year, NACoal sold
certain assets which resulted in pre-tax
gains of approximately $7.0 million. Also,
on August 31, 2012, NACoal acquired
Reed Minerals, which resulted in an
increase in deliveries and contributed
$1.5 million of operating profit during
the balance of the year. Additional
increases in net income were provided
by MLMC as deliveries increased to
the customer’s power plant which
ran more consistently in 2012 than
in 2011, by increased deliveries at the
limerock dragline mining operations
due to customer demand for supply to
a large construction project in southern
Florida, and by higher royalty income.
Higher employee-related expenses,
largely related to long-term incentive
compensation associated with achieving
significant new business opportunities
for North American Coal, and acquisi-
tion-related costs, as well as higher
income tax expense, mostly offset these
improvements. As a result, NACoal
reported net income in 2012 of $32.8
million compared with $29.4 million
in 2011.
While NACoal generated cash flow
from operations of $50.2 million in 2012,
Mining
A truck/shovel operation works into the night to uncover coal at the Mississippi Lignite Mining Company’s Red Hills Mine in Mississippi.