on May4 reported first-quarter 2016 net income of $8.3 million, a substantialimprovement from $4.5 million yearover year, caused by improved operating results at its consolidatedmining operations.
Thecompany's revenues in the first quarter plunged 26.6% to $30.3 million from$41.3 million of the comparable period a year ago, which is primarilyattributable to a lower tonnage sold at Mississippi Lignite Mining Co., resulting from anincrease in outage days at the customer's power plant in the first quarter of2016.
NorthAmerican Coal data showed that its coal deliveries for the first-quarter totaled7.8 million tons, relatively flat compared to the corresponding period in 2015.
Thecompany said it expects an increase in tons sold in 2016 compared with 2015 atits coal mining operations but presumes a lower income before income taxesyear-over-year, due to an expected decrease in income at Mississippi LigniteMining Co. The expected reduction in earnings at Mississippi Lignite isattributable to the recent substantial decline in diesel prices.
Italso expects a reduction in royalty and other income in full-year 2016. "Thesedecreases are expected to be partially offset by additional income from theunconsolidated mining operations as newer mines begin or increase production in2016 and by modestly higher deliveries and operating results at the limerockmining operations," the company said.
Cashflow before financing activities is also projected to substantially fall thisyear compared last year, resulting from the 2015 repayment of a largereceivable from Coyote CreekMining Co. LLC and higher capital expenditures in 2016. "Capitalexpenditures are expected to be approximately $15.2 million in 2016, of which$2.5 million was expended in the first quarter of 2016," as stated in thecompany's earnings release.
Overthe longer term, North American Coal said it aims to increase earnings of itsunconsolidated mines by approximately 50% from the 2012 level of $45.2 millionthrough the development and maturation of its newer mines and normal escalationof contractual compensation at its existing mines.
NorthAmerican Coal is a unit of NACCOIndustries Inc.