Hamilton Beach 2015 Annual Report Download - page 16

14
2015 Net Income, as reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjustments to eliminate Centennial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2015 Adjusted Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2014 Net Loss, as reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjustments to eliminate Centennial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2014 Adjusted Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Year Ended
2015
$ 21,984
21,684
$ 43,668
Year Ended
2014
$ (38,118)
78,941
$ 40,823
Year Ended
2015
$ 5,619
21,684
$ 27,303
Year Ended
2014
$ (50,977)
78,941
$ 27,964
NACoal Consolidated
Calculation of Return on Capital Employed and Return on Equity:
2015
2015 Average Equity (12/31/2014 and each of 2015’s quarter ends) . . . . . . .
2015 Average Debt (12/31/2014 and at each of 2015’s quarter ends) . . . . . .
2015 Average Cash (12/31/2014 and at each of 2015’s quarter ends) . . . . . .
Total 2015 average capital employed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2015 Net income (loss), as reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plus: 2015 Interest expense, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Income taxes on 2015 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
$ 3.13
3.09
$ 6.22
Diluted
earnings per
share
$ (5.02)
10.39
$ 5.37
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). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
HBB
$ 53,453
32,284
(2,783)
$ 82,954
$ 23,144
1,133
(431)
$ 23,846
28.7%
43.3%
NACoal
$ 139,791
179,841
(136)
$ 319,496
$ (50,977)
5,211
(1,980)
$ (47,746)
(14.9%)
(36.5%)
Kitchen
Collection
$ 32,176
8,126
(1,684)
$ 38,618
$ (4,603)
367
(139)
$ (4,375)
(11.3%)
(14.3%)
Kitchen
Collection
$ 30,101
795
(4,681)
$ 26,215
$ (420)
131
(50)
$ (339)
(1.3%)
(1.4%)
HBB
$ 51,541
58,870
(1,373)
$ 109,038
$ 19,749
1,775
(675)
$ 20,849
19.1%
38.3%
NACoal
$ 107,240
132,308
(2,886)
$ 236,662
$ 5,619
4,545
(1,727)
$ 8,437
3.6%
5.2%
(In thousands, except per share data)
(In thousands, 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 2015’s effective income tax rate of 11.4%.
** Tax rate of 38% represents the Company’s target marginal tax rate compared with 2014’s effective income tax rate of 50.2%.
Supplemental Data
Reconciliation of 2015 and 2014 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, 2015 and 2014 excluding the net effect of adjustments to eliminate Centennial.
Management believes a discussion excluding these adjustments to eliminate Centennial is more reflective of NACCO’s underlying business operations and
enables investors to better understand the results of operations of the Company.