NACCO Industries, Inc. Announces Fourth Quarter and Full Year 2012 Results

  NACCO Industries, Inc. Announces Fourth Quarter and Full Year 2012 Results

PR Newswire

CLEVELAND, March 6, 2013

CLEVELAND, March6, 2013 /PRNewswire/ -- NACCO Industries, Inc. (NYSE: NC)
today announced consolidated income from continuing operations of $23.7
million, or $2.81 per diluted share, and revenues of $318.2 million for the
fourth quarter of 2012 compared with consolidated income from continuing
operations of $29.9 million, or $3.56 per diluted share, and revenues of
$273.9 million for the fourth quarter of 2011.

As a result of NACCO's spin-off of its materials handling subsidiary in
September 2012, the attached financial statements and related 2012 and 2011
financial information in this news release have been reclassified to reflect
the materials handling operating results as discontinued operations.

NACCO and Subsidiaries Consolidated Fourth Quarter Highlights

Key perspectives on NACCO's fourth quarter results are as follows:

  oNorth American Coal's fourth quarter 2012 net income declined to $8.3
    million from $11.9 million in 2011. However, fourth quarter income before
    taxes increased to $13.3 million from $13.2 million in 2011. The slight
    increase in income before taxes was primarily due to higher royalty income
    and income generated at the newly acquired Reed Minerals operations,
    mostly offset by higher employee-related and outside services costs and
    lower earnings at the unconsolidated project mining subsidiaries. Net
    income decreased primarily due to an increase in income tax expense.
  oHamilton Beach's net income increased to $12.7 million in the fourth
    quarter of 2012 from $12.0 million in 2011. The increase in net income
    was primarily the result of increased sales of higher-margin products,
    partially offset by higher-employee related costs and a moderate increase
    in product costs.
  oKitchen Collection's fourth quarter 2012 net income declined to $4.1
    million from $7.6 million in 2011. The net income decline was primarily
    the result of reduced sales from fewer customer visits, a shift in mix to
    lower margin products at Kitchen Collection^® and Le Gourmet Chef^®
    comparable stores and unfavorable margins at closed stores from the
    liquidation of inventory. Higher employee-related and outside services
    costs and an impairment charge of $0.7 million pre-tax taken on certain
    leasehold improvements also contributed to the decline in net income.
  oNACCO and Other, which includes the parent company operations, incurred a
    net loss of $4.4 million for the fourth quarter of 2012 compared with a
    net loss of $2.3 million in 2011. The increase in the net loss was
    primarily the result of an increase of $3.0 million, or $2.0 million after
    tax of $1.0 million, in the asset retirement obligation for water
    treatment at the Company's non-operating subsidiary, Bellaire
    Corporation.
  oIn the fourth quarter of 2012, NACCO recorded a $3.0 million tax benefit
    in eliminations to adjust the tax rate to equal the full year effective
    tax rate, which compares to an adjustment of $0.8 million in 2011.

For the year ended December 31, 2012, the Company reported income from
continuing operations of $42.2 million, or $5.02 per diluted share, and
revenues of $873.4 million compared with income from continuing operations of
$79.5 million, or $9.46 per diluted share, and revenues of $790.4 million for
the year ended December 31, 2011. Income from continuing operations for 2011
included the receipt of $60.0 million, or $39.0 million after taxes of $21.0
million, related to the Applica litigation settlement in the first quarter of
2011. This settlement was partially offset by litigation costs of $2.8
million, or $1.8 million after taxes of $1.0 million, also incurred in the
first quarter of 2011. Excluding the settlement and the corresponding
litigation costs, the adjusted income from continuing operations was $42.3
million, or $5.03 per diluted share for the year ended December 31, 2011. See
page 7 for the reconciliation from GAAP results to the non-GAAP results.

Consolidated Adjusted EBITDA for the fourth quarter of 2012 was $40.7 million,
compared with $47.2 million for the fourth quarter of 2011. Consolidated
Adjusted EBITDA for the year ended December 31, 2012 was $81.9 million,
compared with $79.9 million for the year ended December 31, 2011. Adjusted
EBITDA in this press release is provided solely as a supplemental non-GAAP
disclosure with respect to operating results. For reconciliations from GAAP
results to the non-GAAP results, see page 12.

For the 2012 full year, NACCO generated cash flow before financing activities
from continuing operations of $10.7 million, which was comprised of net cash
provided by operating activities from continuing operations of $74.4 million
less net cash used for investing activities from continuing operations of
$63.7 million. For the 2011 full year, NACCO generated cash flow before
financing activities from continuing operations of $83.8 million, which was
comprised of net cash provided by operating activities from continuing
operations of $100.6 million less net cash used for investing activities from
continuing operations of $16.8 million, which included after-tax proceeds of
$39.0 million for the settlement of the Applica litigation. The significant
decrease in 2012 cash flow before financing activities compared with 2011 is
primarily the result of the absence of the Applica litigation settlement
received in 2011, payments made in 2012 for North American Coal's acquisition
of Reed Minerals of approximately $69.3 million and cash paid in 2012 for two
draglines of $26.8 million, partially offset by proceeds received in 2012 from
two dragline sales totaling $31.2 million and the collection of a long-term
note in 2012 related to the prior sale of a dragline of $14.4 million.
Payments for the Reed Minerals acquisition include the original preliminary
purchase price of $62.5 million, $2.3 million for cash in escrow and a $4.5
million post-closing working capital adjustment.

The Company's cash position was $139.9 million as of December 31, 2012 after
paying both a special dividend of $3.50 per share and a regular quarterly
dividend of $0.25 per share on December 14, 2012 to stockholders, which used
$31.4 million of cash. Debt as of December 31, 2012 increased to $177.7
million from $148.2 million as of December 31, 2011.

Detailed Discussion of Results

North American Coal - Fourth Quarter Results

North American Coal reported net income for the fourth quarter of 2012 of $8.3
million and revenues of $50.9 million compared with net income of $11.9
million and revenues of $23.5 million for the fourth quarter of 2011. Fourth
quarter 2012 income before taxes was $13.3 million compared with $13.2 million
in the fourth quarter of 2011. On August 31, 2012, North American Coal
acquired Reed Minerals, a coal mining business in Alabama which produces steam
and metallurgical coal. Fourth quarter 2012 financial results include $21.6
million of revenues and $1.0 million of net income from Reed Minerals'
operations.

North American Coal's deliveries for the fourth quarter of 2012 compared with
the fourth quarter of 2011 are as follows:



                                  2012     2011
Coal deliveries (tons)            (in millions)
 Consolidated mines             1.0      0.8
 Unconsolidated mines           6.0      6.4
 Total coal deliveries       7.0      7.2
Limerock deliveries (cubic yards) 5.8      3.0



Revenues increased in the fourth quarter of 2012 compared with 2011 primarily
due to the Reed Minerals acquisition and higher royalty income. An increase
in limerock yards delivered at the Florida dragline operations also
contributed to the improvement in fourth quarter 2012 revenues.

Income before taxes in the fourth quarter of 2012 was comparable to the fourth
quarter of 2011. The favorable effect of higher royalty income and income
generated at the newly acquired Reed Minerals operations was mostly offset by
higher employee-related and outside services costs and a decline in results at
the unconsolidated mining operations, mainly from lower contractual price
adjustments in 2012 than in 2011 and fewer deliveries at those operations.
Employee-related costs increased primarily due to incentives tied to the
significant expansion of North American Coal's business through the new Coyote
Creek mining contract and the Reed Minerals acquisition. Net income for the
fourth quarter of 2012 decreased compared with the fourth quarter of 2011
mainly due to an increase in income tax expense resulting from a shift in the
mix of taxable income toward entities with higher effective income tax rates.
Also, a decrease in taxable income at the unconsolidated project mines
resulted in a lower tax benefit from depletion.

North American Coal - Full Year Results

For the year ended December 31, 2012, North American Coal reported net income
of $32.8 million and revenues of $132.4 million compared with net income of
$29.4 million and revenues of $81.8 million for the year ended December 31,
2011.

In 2012, North American Coal generated negative cash flow before financing
activities of $6.1 million, which was comprised of net cash provided by
operating activities of $50.2 million less net cash used for investing
activities of $56.3 million, which included cash paid for the Reed
Mineralsacquisition of approximately $69.3 million, cash paid for two
draglines of $26.8 million and proceeds received from two dragline sales
totaling $31.2 million and the collection of a long-term note related to the
prior sale of a dragline of $14.4 million. For the 2011 full year, North
American Coal generated cash flow before financing activities of $21.0
million, which was comprised of net cash provided by operating activities of
$31.7 million less net cash used for investing activities of $10.7 million.

North American Coal - Outlook

North American Coal expects steady operating performance at its coal mining
operations in 2013. Steam coal tons delivered in 2013 are expected to
increase over 2012 at both the consolidated and unconsolidated mining
operations provided customers achieve currently planned power plant operating
levels. However, metallurgical coal sales for Reed Mineralsare expected to
be below the company's initial expectations as demand for steel is down and
customers are reducing inventories. Limerock deliveries are expected to
decrease in 2013 compared with 2012 as customer requirements are expected to
decline moderately.Demery Resources Company's Five Forks Mine commenced
delivering coal to its customer in 2012 and isexpected to increase production
in 2013, with full production levels expected to be reached in late 2015or
2016. Royalty income is expected to be lower in 2013 comparedwith 2012.

Unconsolidated mines currently in development are expected to continue to
generate modest income in 2013. The company's fourmines in development are
also not expected to be at full production for several years. Liberty Fuels
is eventually expected to produce approximately 4.5 million tons of lignite
coal annually for Mississippi Power Company's new Ratcliffe power plant
currently being built in Mississippi. The project ison track for initial
coal deliveries in mid-2014. In February 2013, the mining permit needed to
commence mining operations at the Caddo Creek Resources Company's project in
Texas was issued. Caddo Creek expects to mine approximately 650,000 tons of
coal annually and initial deliveries are expected in early 2014. In January
2013, the mining permit needed to commence mining operations at the Camino
Real Fuels project in Texas was issued. Camino Real Fuels expects initial
deliveries in the third quarter of 2014, and expects to mine approximately 2.7
million tons of coal annually when at full production. In addition, in
October 2012, North American Coal's subsidiary, Coyote Creek Mining Company,
entered into a new agreement with the co-owners of the Coyote Station
generation plant to develop a lignite mine in Mercer County, North Dakota.
Coyote Creek Mining Company expects to deliver approximately 2.5 million tons
of coal annually, beginning in May 2016.

North American Coal also has new project opportunities for which it expects to
continue to incur additional expenses in 2013. In particular, the company
continues to move forward to obtain a permit for its Otter Creek reserve in
North Dakota in preparation for the anticipated construction of a new mine.

Overall, North American Coal expects net income in 2013 todecrease
slightlyfrom 2012 primarily due to the absence of pre-tax gains of
approximately $7.0 million from asset sales during 2012. Excluding the effect
of the asset sales, operating results are expected to increase compared with
2012 mainly as a result of increased deliveries and lower operating expenses.
Cash flow before financing activities for 2013 is expected to be higher than
2012, but not at the levels of 2011 due to an anticipated increase in capital
expenditures to support the Reed Minerals operations.

Over the longer term, North American Coal expects to continue its efforts to
develop new mining projects. The company is actively pursuing domestic
opportunities for new or expanded coal mining projects, which include
prospects for power generation, coal-to-liquids, coal-to-chemicals, coal
gasification, coal drying and other clean coal technologies. Also, the company
views its acquisition of Reed Minerals as the first step in a metallurgical
coal strategic initiative which includes coal exports. North American Coal
also continues to pursue additional non-coal mining opportunities, principally
in aggregates, and international value-added mining services projects,
particularly in India.

Hamilton Beach - Fourth Quarter Results

Hamilton Beach reported fourth quarter 2012 net income of $12.7 million and
revenues of $181.2 million, compared with net income of $12.0 million and
revenues of $161.4 million for the fourth quarter of 2011.

Hamilton Beach's fourth quarter revenues increased 12 percent compared with
2011 primarily due to increased unit sales volumes of higher-priced products
mainly in the U.S. consumer retail market as a result of strong fourth quarter
promotions and placements.

The increase in net income in the fourth quarter of 2012 compared with the
2011 fourth quarter was primarily the result of increased sales volumes of
higher-margin products, partially offset by higher-employee related costs and
a moderate increase in product costs.

Hamilton Beach - Full Year Results

For the year ended December 31, 2012, Hamilton Beach reported net income of
$21.2 million and revenues of $521.6 million compared with net income of $18.4
million and revenues of $493.0 million in 2011.

During 2012, Hamilton Beach generated cash flow before financing activities of
$24.2 million, which was comprised of net cash provided by operating
activities of $27.4 million less net cash used for investing activities of
$3.2 million. During 2011, Hamilton Beach generated cash flow before
financing activities of $20.5 million, which was comprised of net cash
provided by operating activities of $24.2 million less net cash used for
investing activities of $3.7 million.

Hamilton Beach - Outlook

Hamilton Beach's target consumer, the middle-market mass consumer, continues
to struggle with financial and economic concerns. As a result,sales volumes
in the middle-market portion of the U.S. small kitchen appliance market in
which Hamilton Beach participates are projected to grow only moderately in
2013compared with 2012. International and commercial product markets are
expected to continue to grow reasonably in 2013 compared with 2012.

Hamilton Beach continues to focus on strengthening its North American consumer
market position through product innovation, promotions, increased placements
and branding programs, together with appropriate levels of advertising for the
company's highly successful and innovative product lines, with particular
focus on single-serve coffee products such as The Scoop^® and FlexBrew^™.
Hamilton Beach expects The Scoop^®, the Two-Way Brewer and the Durathon^™ iron
product line, all introduced in late 2011, as well as the FlexBrew^™ launched
in late 2012, to continue to gain market position as broader distribution is
attained over time. The company iscontinuing to introduce innovative products
in several small appliance categories. In the first quarter of 2013, Hamilton
Beach expects to launch the Hamilton Beach^® Breakfast Sandwich Maker, which
provides an innovative and convenient way for consumers to cook breakfast
sandwiches quickly at home. These products, as well as other new product
introductions in the pipelinefor 2013, are expected to increase both revenues
and operating profit. As a result of these new products, the company's
improving position in commercial and international markets and execution of
the company's strategic initiatives, Hamilton Beach expects to increase
volumes and revenues in 2013 compared with 2012 at more than the 2013 market
forecast rate of increase.

Overall, Hamilton Beach expects full year 2013 net income to be comparable to
2012 as anticipated increases in profit from increased revenues are forecasted
to be largely offset by expected increases in operating expenses to support
Hamilton Beach's strategic initiatives. Product and transportation costs are
currently expected to remain comparable to 2012. However, Hamilton Beach
continues to monitor commodity costs closely and will adjust product prices
and product placements, as appropriate, if these costs increase more than
anticipated. Hamilton Beach expects 2013 cash flow before financing
activities to be moderately lower than in 2012 due toincreased working
capital.

Longer term, Hamilton Beach will work to take advantage of the potential to
improve return on sales through economies of scale derived from market growth,
strategic partnerships and a focus on its five strategic growth initiatives:
(1) enhancing its placements in the North America consumer business through
consumer-driven innovative products and strong sales and marketing support,
(2) enhancing internet sales by providing best in class retailer support and
increased consumer content and engagement, (3) achieving further penetration
of the global Commercial market through a commitment to an enhanced global
product line for chains and distributors serving the global food service and
hospitality markets, (4) expanding internationally in the emerging Asian and
Latin American markets by offering products designed specifically for those
market needsandby expanding distribution channels and sales and marketing
capabilities and (5) entering the "only the best" market with a strong brand
and broad product line.

Kitchen Collection - Fourth Quarter Results

Kitchen Collection reported net income of $4.1 million on revenues of $88.9
million for the fourth quarter of 2012 compared with net income of $7.6
million on revenues of $91.4 million for the fourth quarter of 2011.

Compared with the fourth quarter of 2011, sales from newly opened Kitchen
Collection^® stores were moderately higher in the 2012 fourth quarter than the
loss of sales from closing unprofitable Kitchen Collection^® and Le Gourmet
Chef^® stores since December 31, 2011. Nevertheless, this improvement was
more than offset by a decline in comparable store sales, primarily due to a
decrease in store transactions as a result of fewer customer visits at both
store formats, partially offset by improvements in the average sales
transaction value. The decline in customer visits appears to be largely the
result of an overall decline in traffic to outlet malls during the 2012
holiday-shopping season and overall shopping patterns which were not
consistent with prior years.

At December 31, 2012, Kitchen Collection^® operated 261 stores compared with
276 stores at December 31, 2011. Le Gourmet Chef^® operated 51 stores at
December 31, 2012 compared with 61 stores at December 31, 2011.

Net income decreased in the fourth quarter of 2012 compared with the fourth
quarter of 2011 primarily as a result of reduced sales, a shift in mix to
lower margin products at Kitchen Collection^® and Le Gourmet Chef^® comparable
stores and unfavorable margins from the liquidation of inventory at closed
stores. Higher employee-related and outside services costs and an impairment
charge of $0.7 million pre-tax taken on certain leasehold improvements also
contributed to the decline in net income.

Kitchen Collection - Full Year Results

For the year ended December 31, 2012, Kitchen Collection reported a net loss
of $3.1 million on revenues of $224.7 million compared with net income of $1.1
million on revenues of $221.2 million for the year ended December 31, 2011.

For the 2012 full year, Kitchen Collection generated negative cash flow before
financing activities of $0.1 million, which was comprised of net cash provided
by operating activities of $3.8 million less net cash used for investing
activities of $3.9 million. For the 2011 full year, Kitchen Collection
generated cash flow before financing activities of $2.6 million, which was
comprised of net cash provided by operating activities of $4.9 million less
net cash used for investing activities of $2.3 million.

Kitchen Collection - Outlook

Consumer traffic to outlet mall locations declinedin 2012, especially in the
fourth quarter. Prospects for 2013 remain uncertain, but are expected to
improve over 2012 levels. The middle market consumer remains under pressure
due to financial and economic concerns, and those concerns are expected to
continue to dampen consumer sentiment and limit consumer spending levels for
Kitchen Collection's target customer in 2013. As a result, Kitchen Collection
expects 2013 revenues to be comparable to 2012, although the company expects
to maintain a lower number of stores through much of 2013 than in 2012.

Overall, Kitchen Collection expects modest net income for the 2013 full year
and positive cash flow before financing activities compared with a net loss
and essentially break even cash flow before financing in 2012. The net effect
of the anticipated closing of a number of stores early in 2013 and the
anticipated opening of new stores during the second half of 2013, are expected
to contribute to improved results. Also, enhanced sales per store and product
margins are expected as a result of improvements in store formats and layouts,
and further refinements of promotional offers and merchandise mixat both the
Kitchen Collection^® and Le Gourmet Chef^® stores. During 2012, Kitchen
Collection reformatted many of its stores to promote a value and trend message
at the front of its stores, which is expected, with some further adjustments,
to drive an increased number of customers into its locations. The company
completed format changes at all of its Le Gourmet Chef^® stores in the first
half of 2012 and completed the remodeling of a total of 82 Kitchen
Collection^® stores in 2012. Feedback to date on these changes is favorable,
but reduced traffic in 2012 made it difficult to determine their longer-term
impact. In addition, these changes resulted in higher up-front costs during
2012 and the liquidation of a substantial amount of inventory, both of which
are not expected to recur in 2013. As these new formats gain traction, they
are expected to improve margins and income in 2013.

Longer term, Kitchen Collection plans to focus on comparable store sales
growth and creating a solid store portfolio. Kitchen Collection expects to
accomplish these goals through enhancing sales volume and profitability
through refinement of itsformats and ongoing review of specific product
offerings, merchandise mix, store displays and appearance, while improving
inventory efficiency and store inventory controls. The company will also
continue to evaluate and, as lease contracts permit, close underperforming and
loss-generating stores. In the near term, Kitchen Collection expects
toconcentrate its growth on increasing the number of Kitchen Collection^®
stores, with store expansion expected to be focused on identifying the best
positions in the best outlet malls for Kitchen Collection^® stores. At such
time as adequate profit prospects are demonstratedby the Le Gourmet Chef^®
format, the company's expansion focus will shift to increasing the number of
these stores as well. Kitchen Collection also expects to explore other growth
opportunities in textiles and gourmet foods, as well as in e-commerce.

Conference Call

In conjunction with this news release, the management of NACCO Industries,
Inc. will host a conference call on Thursday, March 7, 2013 at 10:30 a.m.
eastern time. The call may be accessed by dialing (888) 680-0869 (Toll Free)
or (617) 213-4854 (International), Pass code: 42323853, or over the Internet
through NACCO Industries' website at www.nacco.com. Please allow 15 minutes
to register, download and install any necessary audio software required to
listen to the broadcast. A replay of the call will be available shortly after
the end of the conference call through March 14, 2013. The online archive of
the broadcast will be available on the NACCO website.

Annual Report on Form 10-K

NACCO Industries, Inc.'s Annual Report on Form 10-K has been filed with the
Securities and Exchange Commission. This document may be obtained free of
charge by directing such requests to NACCO Industries, Inc., 5875 Landerbrook
Drive, Suite 220, Cleveland, Ohio 44124, Attention: Investor Relations, by
calling (440) 229-5130, or from NACCO Industries, Inc.'s website at
www.nacco.com.

Non-GAAP and Other Measures

For certain pre-tax disclosures included in this earnings release, the
resulting after-tax amount and the related income tax amount have been
included. The tax effect is based on the statutory tax rate generally
applicable to the transaction or the effective income tax rate of the entity
to which the disclosure relates. Certain after-tax amounts are considered
non-GAAP measures in accordance with Regulation G. Management believes that
after-tax information is useful in analyzing the Company's net income.

The Company has reported adjusted income and diluted earnings per share for
the year ended December 31, 2011 excluding the net effect of the Applica
settlement and related litigation costs under "Fourth Quarter and Full Year
2012 Results." Management believes a discussion excluding the settlement and
related litigation costs is more reflective of NACCO's underlying business
operations and enables investors to better understand the results of
operations of the Company. Following is the reconciliation of the year ended
December 31, 2011 income from continuing operations and diluted earnings per
share, as reported, to adjusted income from continuing operations and diluted
earnings per share excluding the net impact of the Applica settlement and
litigation costs.



                                                     Year Ended
                                                     December 31, 2011
                                                              Diluted earnings
(in millions, except per share data)                 2011
                                                              per share
2011 Income from continuing operations, as reported  $ 79.5   $    9.46
Impact of Applica settlement, after taxes of $21.0   (39.0)   (4.64)
Impact of Applica litigation costs, after taxes of   1.8      0.21
$1.0
2011 Adjusted income from continuing operations      $ 42.3   $    5.03

Forward-looking Statements Disclaimer

The statements contained in the news release that are not historical facts are
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934. These forward-looking statements are made subject to certain risks and
uncertainties, which could cause actual results to differ materially from
those presented. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof. The
Company undertakes no obligation to publicly revise these forward-looking
statements to reflect events or circumstances that arise after the date
hereof. Such risks and uncertainties with respect to each subsidiary's
operations include, without limitation:

North American Coal: (1) the successful integration of the Reed Minerals
acquisition, (2) changes in the demand for and market prices of metallurgical
coal produced at the Reed Minerals operations, (3) changes in tax laws or
regulatory requirements, including changes in mining or power plant emission
regulations and health, safety or environmental legislation, (4) changes in
costs related to geological conditions, repairs and maintenance, new equipment
and replacement parts, fuel or other similar items, (5) regulatory actions,
changes in mining permit requirements or delays in obtaining mining permits
that could affect deliveries to customers, (6) weather conditions, extended
power plant outages or other events that would change the level of customers'
coal or limerock requirements, which would have an adverse effect on results
of operations, (7) weather or equipment problems that could affect deliveries
to customers, (8) changes in the power industry that would affect demand for
North American Coal's reserves, (9) changes in the costs to reclaim current
North American Coal mining areas, (10) costs to pursue and develop new mining
opportunities, (11) legal challenges related to Mississippi Power's Ratcliffe
Plant in Mississippi, (12) changes or termination of a long-term mining
contract, or a customer default under a contract and (13) increased
competition, including consolidation within the industry.

Hamilton Beach: (1) changes in the sales prices, product mix or levels of
consumer purchases of small electric appliances, (2) changes in consumer
retail and credit markets, (3) bankruptcy of or loss of major retail customers
or suppliers, (4) changes in costs, including transportation costs, of sourced
products, (5) delays in delivery of sourced products, (6) changes in or
unavailability of quality or cost effective suppliers, (7) exchange rate
fluctuations, changes in the foreign import tariffs and monetary policies and
other changes in the regulatory climate in the foreign countries in which
Hamilton Beach buys, operates and/or sells products, (8) product liability,
regulatory actions or other litigation, warranty claims or returns of
products, (9) customer acceptance of, changes in costs of, or delays in the
development of new products, (10) increased competition, including
consolidation within the industry and (11) changes mandated by federal, state
and other regulation, including health, safety or environmental legislation.

Kitchen Collection: (1) changes in gasoline prices, weather conditions, the
level of consumer confidence and disposable income as a result of economic
conditions, unemployment rates or other events or conditions that may
adversely affect the number of customers visiting Kitchen Collection^® and Le
Gourmet Chef^® stores, (2) changes in the sales prices, product mix or levels
of consumer purchases of kitchenware, small electric appliances and gourmet
foods, (3) changes in costs, including transportation costs, of inventory, (4)
delays in delivery or the unavailability of inventory, (5) customer acceptance
of new products, (6) the anticipated impact of the opening of new stores, the
ability to renegotiate existing leases and effectively and efficiently close
unprofitable stores, (7) increased competition and (8) changes in health care
benefits that could adversely affect costs or required staffing levels.

About NACCO Industries, Inc.

NACCO Industries, Inc., headquartered in Cleveland, Ohio, is an operating
holding company with subsidiaries in the following principal industries:
mining, small appliances and specialty retail. The North American Coal
Corporation, NACCO's predecessor company, mines and markets steam and
metallurgical coal for use in power generation and steel production and
provides selected value-added mining services for other natural resources
companies. North American Coal celebrated 100 years in business on February
18, 2013. Hamilton Beach Brands, Inc. is a leading designer, marketer and
distributor of small electric household appliances, as well as commercial
products for restaurants, bars and hotels. The Kitchen Collection, LLC is a
national specialty retailer of kitchenware and gourmet foods operating under
the Kitchen Collection® and Le Gourmet Chef® store names in outlet and
traditional malls throughout the United States. For more information about
NACCO, visit the Company's website at www.nacco.com.





NACCO INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
                                    Three Months Ended    Year Ended
                                    December 31           December 31
                                    2012       2011       2012       2011
                                    (In millions, except per share data)
Revenues                            $ 318.2    $ 273.9    $ 873.4    $ 790.4
Cost of sales                       233.4      193.6      647.5      580.8
Gross profit                        84.8       80.3       225.9      209.6
Earnings of unconsolidated mines    11.1       12.8       45.2       45.5
Operating expenses                  58.9       50.8       203.6      191.0
Operating profit                    37.0       42.3       67.5       64.1
Other (income) expense
Interest expense              1.4        1.9        6.1        8.7
Applica settlement and        —          —          —          (57.2)
litigation costs
Closed mine obligations       3.1        0.1        4.6        1.0
Other                         (0.3)      (0.6)      (1.2)      (0.7)
Income before income taxes          32.8       40.9       58.0       112.3
Income tax provision                9.1        11.0       15.8       32.8
Income from continuing operations   23.7       29.9       42.2       79.5
Discontinued operations, net-of-tax —          24.5       66.5       82.6
Net income                          $ 23.7     $ 54.4     $ 108.7    $ 162.1
Basic earnings per share:
Continuing operations               $ 2.83     $ 3.56     $ 5.04     $ 9.49
Discontinued operations             —          2.92       7.93       9.85
Basic earnings per share            $ 2.83     $ 6.48     $ 12.97    $ 19.34
Diluted earnings per share:
Continuing operations               $ 2.81     $ 3.56     $ 5.02     $ 9.46
Discontinued operations             —          2.91       7.90       9.82
Diluted earnings per share          $ 2.81     $ 6.47     $ 12.92    $ 19.28
Cash dividends per share            $ 3.7500   $ 0.5325   $ 5.3775   $ 2.1200
Basic weighted average shares       8.384      8.391      8.384      8.383
outstanding
Diluted weighted average shares     8.444      8.411      8.414      8.408
outstanding





NACCO INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED FINANCIAL HIGHLIGHTS
                                        Three Months Ended  Year Ended
                                        December 31         December 31
                                        2012      2011      2012      2011
                                        (In millions)
Revenues
 North American Coal                  $ 50.9    $ 23.5    $ 132.4   $ 81.8
 Hamilton Beach                       181.2     161.4     521.6     493.0
 Kitchen Collection                   88.9      91.4      224.7     221.2
 Eliminations                         (2.8)     (2.4)     (5.3)     (5.6)
 Total                             $ 318.2   $ 273.9   $ 873.4   $ 790.4
Operating profit (loss)
 North American Coal                  $ 13.5    $ 13.4    $ 43.2    $ 35.2
 Hamilton Beach                       19.9      19.0      35.8      33.8
 Kitchen Collection                   7.0       12.8      (4.6)     2.5
 NACCO and Other                      (3.4)     (2.8)     (7.0)     (7.3)
 Eliminations                         —         (0.1)     0.1       (0.1)
 Total                             $ 37.0    $ 42.3    $ 67.5    $ 64.1
Income (loss) before income taxes
 North American Coal                  $ 13.3    $ 13.2    $ 41.8    $ 33.9
 Hamilton Beach                       19.1      18.2      32.8      27.8
 Kitchen Collection                   6.9       12.6      (5.1)     1.9
 NACCO and Other                      (6.5)     (3.0)     (11.6)    48.8
 Eliminations                         —         (0.1)     0.1       (0.1)
 Total                             $ 32.8    $ 40.9    $ 58.0    $ 112.3
Income (loss) from continuing
operations
 North American Coal                  $ 8.3     $ 11.9    $ 32.8    $ 29.4
 Hamilton Beach                       12.7      12.0      21.2      18.4
 Kitchen Collection                   4.1       7.6       (3.1)     1.1
 NACCO and Other                      (4.4)     (2.3)     (8.6)     30.7
 Eliminations                         3.0       0.7       (0.1)     (0.1)
 Total                             $ 23.7    $ 29.9    $ 42.2    $ 79.5
Discontinued operations, net-of-tax     $ —       $ 24.5    $ 66.5    $ 82.6
Net income                              $ 23.7    $ 54.4    $ 108.7   $ 162.1





NACCO INDUSTRIES, INC. AND SUBSIDIARIES
ADJUSTED EBITDA RECONCILIATION
                   Three Months Ended               Year Ended
                   December 31                      December 31
                   2012               2011          2012          2011
                   (In millions)
Net income         $    23.7          $   54.4      $  108.7      $  162.1
Discontinued       —                  (24.5)        (66.5)        (82.6)
operations
Applica settlement
and litigation     —                  —             —             (57.2)
costs
Income taxes       9.1                11.0          15.8          32.8
provision
Interest expense   1.4                1.9           6.1           8.7
Interest income    (0.1)              (0.1)         (0.2)         (0.3)
Depreciation,
depletion and      6.6                4.5           18.0          16.4
amortization
expense
Adjusted EBITDA*   $    40.7          $   47.2      $  81.9       $  79.9
*Adjusted EBITDA in this press release is provided solely as a supplemental
disclosure with respect to operating results. Adjusted EBITDA does not
represent net income, as defined by U.S. GAAP and should not be considered as
a substitute for net income or net loss, or as an indicator of operating
performance. NACCO defines Adjusted EBITDA as income before discontinued
operations, Applica settlement and litigation charges and income taxes, plus
net interest expense and depreciation, depletion and amortization expense.
Adjusted EBITDA is not a measurement under U.S. GAAP and is not necessarily
comparable with similarly titled measures of other companies.



SOURCE NACCO Industries, Inc.

Website: http://www.nacco.com
Contact: Christina Kmetko, +1-440-229-5130