Hamilton Beach 2014 Annual Report Download - page 16

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2014 Net Loss, as reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-lived asset impairment charge, after taxes of $38,680 . . . . . . . . . . . . . .
2014 Adjusted Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013 Net Income, as reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Goodwill impairment charge, after taxes of $1,400 . . . . . . . . . . . . . . . . . . . . .
2013 Adjusted Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Year Ended
2014
$ (38,118)
66,439
$ 28,321
Year Ended
2013
$ 44,450
2,573
$ 47,023
Year Ended
2014
$ (50,977)
66,439
$ 15,462
Year Ended
2013
$ 31,926
2,573
$ 34,499
NACoal Consolidated
Calculation of Return on Capital Employed and Return on Equity:
2014
2014 Average Equity (12/31/2013 and each of 2014’s quarter ends) . . . . . . .
2014 Average Debt (12/31/2013 and at each of 2014’s quarter ends) . . . . . .
2014 Average Cash (12/31/2013 and at each of 2014’s quarter ends) . . . . . .
Total 2014 average capital employed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2014 Net income (loss), as reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plus: 2014 Interest expense, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Income taxes on 2014 interest expense at 38%* . . . . . . . . . . . . . . . . . . . . .
Actual return on capital employed = actual net income (loss)
before interest expense, net, after tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on capital employed percentage(1) . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on equity percentage(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted
earnings per
share
$ (5.02)
8.74
$ 3.72
Diluted
earnings per
share
$ 5.47
0.32
$ 5.79
Calculation of Return on Capital Employed and Return on Equity:
2013
2013 Average Equity (12/31/2012 and each of 2013’s quarter ends) . . . . . . . .
2013 Average Debt (12/31/2012 and at each of 2013’s quarter ends) . . . . . . .
2013 Average Cash (12/31/2012 and at each of 2013’s quarter ends) . . . . . . .
Total 2013 average capital employed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013 Net income (loss), as reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plus: 2013 Interest expense, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Income taxes on 2013 interest expense at 38%**. . . . . . . . . . . . . . . . . . . .
Actual return on capital employed = actual net income (loss)
before interest expense, net, after tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on capital employed percentage(1) . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on equity percentage(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
HBB
$ 48.8
27.2
(1.8)
$ 74.2
$ 25.1
1.3
(0.5)
$ 25.9
34.9%
51.4%
NACoal
$ 121.2
140.3
(1.2)
$ 260.3
$ 31.9
3.1
(1.2)
$ 33.8
13.0%
26.3%
Kitchen
Collection
$ 38.8
7.3
(3.1)
$ 43.0
$ (6.9)
0.4
(0.2)
$ (6.7)
(15.6%)
(17.8%)
Kitchen
Collection
$ 32.2
8.1
(1.7)
$ 38.6
$ (4.6)
0.4
(0.2)
$ (4.4)
(11.4%)
(14.3%)
HBB
$ 53.5
32.3
(2.8)
$ 83.0
$ 23.1
1.1
(0.4)
$ 23.8
28.7%
43.2%
NACoal
$ 139.8
179.8
(0.1)
$ 319.5
$ (51.0)
5.2
(2.0)
$ (47.8)
(15.0%)
(36.5%)
(In thousands, except per share data)
(In millions, except percentage data)
(1) Return on capital employed is provided solely as a supplemental disclosure with respect to income generation because management believes it provides
useful information with respect to earnings in a form that is comparable 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 2014’s effective income tax rate of 50.2%.
** Tax rate of 38% represents the Company’s target marginal tax rate compared with 2013’s effective income tax rate of 20.2%.
Supplemental Data
Reconciliation of 2014 and 2013 Net Income (Loss) “As reported” to Adjusted Income:
Adjusted Income is a measure of income that differs from Net Income (Loss) measured in accordance with U.S. GAAP. The Company has reported Adjusted
Income and Diluted earnings per share for the years ended December 31, 2014 and 2013 excluding the net effect of the long-lived asset and goodwill impairment
charges, respectively. Management believes a discussion excluding these impairment charges is more reflective of NACCO’s and NACoal’s underlying business
operations and enables investors to better understand the results of operations of the Company.