United States Lime & Minerals, Inc. (NASDAQ: USLM) today
reported second quarter 2021 results: The Company’s revenues in the
second quarter 2021 were $49.2 million, compared to $37.5 million
in the second quarter 2020, an increase of $11.6 million, or 30.9%.
For the first six months 2021, revenues were $90.8 million,
compared to $76.0 million in the first six months 2020, an increase
of $14.8 million, or 19.5%.
The Company’s revenues from its lime and limestone operations in
the second quarter and first six months 2021 were $48.7 million and
$90.1 million, respectively, compared to $37.4 million and $75.6
million, respectively, in the comparable 2020 periods. Lime and
limestone revenues increased $11.4 million, or 30.5%, and $14.5
million, or 19.2%, in the second quarter and first six months 2021,
respectively, compared to the second quarter and first six months
2020. In the second quarter 2020, the COVID-19 pandemic
and related restrictions on business activities resulted in a
general economic slowdown, which disproportionately impacted
certain industries that purchase the Company’s products, including
oil and gas services, environmental, and steel.
Carthage Crushed Limestone (“Carthage”), which the Company acquired
on July 1, 2020, contributed $2.5 million and $4.7 million to the
Company’s lime and limestone revenues for the second quarter and
first six months 2021, respectively. Carthage revenues were
primarily from agriculture, roofing, and construction
customers. In addition to the added Carthage revenues,
the increases in lime and limestone revenues in the second quarter
and first six months 2021, compared to the comparable 2020 periods,
resulted primarily from increased sales to the Company’s
construction, steel, roofing, and environmental customers. In the
second quarter 2021, demand from the Company’s oil and gas services
customers also increased compared to the second quarter 2020.
Second quarter and first six months 2021 revenues were also
favorably impacted by increases in the average selling prices for
the Company’s lime and limestone products.
The Company’s gross profit was $16.8 million in the second
quarter 2021, compared to $10.4 million in the second quarter 2020,
an increase of $6.4 million, or 62.2%. Gross profit in the first
six months 2021 was $28.6 million, an increase of $8.4 million, or
41.3%, from $20.2 million in the first six months 2020. Our lime
and limestone gross profit was $16.7 million in the second quarter
2021, compared to $10.5 million in the second quarter 2020, an
increase of $6.2 million or 58.8%. Our lime and limestone gross
profit in the first six months 2021 was $28.5 million, compared to
$20.5 million in the first six months 2020, an increase of $8.0
million, or 38.7%. The increase in gross profit in the 2021
periods, compared to the comparable 2020 periods, resulted
primarily from the increased revenues discussed above and increased
operating efficiencies.
Selling, general and administrative (“SG&A”) expenses were
$3.0 million in the second quarter 2021, compared to $2.9 million
in the second quarter 2020, an increase of $0.1 million, or 2.6%.
SG&A expenses were $6.0 million in the first six months 2021,
compared to $6.1 million in the first six months 2020, a decrease
of $0.1 million, or 1.2%. Increased personnel expenses, including
stock-based compensation, during the 2021 periods were offset by
the higher legal expenses in the 2020 periods related to the
acquisition of Carthage.
The Company reported net income of $11.1 million ($1.96 per
share diluted) and $18.1 million ($3.20 per share diluted) in the
second quarter and first six months 2021, respectively, compared to
$6.1 million ($1.08 per share diluted) and $11.6 million ($2.07 per
share diluted) in the second quarter and first six months 2020,
respectively, increases of $5.0 million, or 81.8%, and $6.5
million, or 55.6%, respectively.
Federal, state, and local governmental restrictions in response
to the pandemic have generally been lifted or curtailed in recent
months, which has continued to reduce the impact of the pandemic on
general business activities in the markets for the Company’s lime
and limestone products. In the locations where the Company
operates, normal business activities have largely resumed. With the
resumption of normal business activities, the Company is
experiencing lower availability of labor and certain supplies and
services and rising costs. Additionally, new variants of COVID-19
and the possibility of new wide-spread or localized outbreaks of
the virus could have a material adverse effect on our financial
condition, results of operations, cash flows and competitive
position.
“We are pleased with our second quarter 2021 results and the
improved demand for our lime and limestone products across the
markets we serve,” said Timothy W. Byrne, President and Chief
Executive Officer. Mr. Byrne added, “Looking ahead, we anticipate
continued challenges in the availability of labor and supplies and
services for a period of time, while the broader economy adjusts to
its reopened status. We will continue to monitor the evolving
COVID-19 situation and adjust our operations accordingly.”
Dividend
The Company announced today that the Board of Directors has
declared a regular quarterly cash dividend of $0.16 per share on
the Company’s common stock. This dividend is payable on September
10, 2021 to shareholders of record at the close of business on
August 20, 2021.
United States Lime & Minerals, Inc., a
NASDAQ-listed public company with headquarters in Dallas, Texas, is
a manufacturer of lime and limestone products, supplying primarily
the construction (including highway, road and building
contractors), industrial (including paper and glass manufacturers),
metals (including steel producers), environmental (including
municipal sanitation and water treatment facilities and flue gas
treatment processes), roof shingle manufacturers, agriculture
(including poultry and cattle feed producers), and oil and gas
services industries. The Company operates lime and limestone plants
and distribution facilities in Arkansas, Colorado, Louisiana,
Missouri, Oklahoma and Texas through its wholly owned subsidiaries,
Arkansas Lime Company, Colorado Lime Company, Texas Lime Company,
U.S. Lime Company, U.S. Lime Company – Shreveport, U.S. Lime
Company – St. Clair, ART Quarry TRS LLC (DBA Carthage Crushed
Limestone), and U.S. Lime Company – Transportation. In addition,
the Company, through its wholly owned subsidiary, U.S. Lime Company
– O & G, LLC, has royalty and non-operating working
interests pursuant to an oil and gas lease and a drillsite
agreement on its Johnson County, Texas property, located in the
Barnett Shale Formation.
Any statements contained in this news release, including, but
not limited to, statements relating to the impact of the COVID-19
pandemic, that are not statements of historical fact are
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. The Company undertakes no obligation
to publicly update or revise any forward-looking statements, and
investors are cautioned that such statements involve risks and
uncertainties that could cause actual results to differ materially
from expectations, including without limitation those risks and
uncertainties indicated from time to time in the Company’s filings
with the Securities and Exchange Commission.
(Tables Follow)United States
Lime & Minerals, Inc.CONDENSED
CONSOLIDATED FINANCIAL DATA(In thousands, except
per share amounts)(Unaudited)
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
INCOME STATEMENTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
49,162 |
|
|
$ |
37,547 |
|
|
$ |
90,836 |
|
|
$ |
75,987 |
|
Cost of revenues |
|
|
32,367 |
|
|
|
27,190 |
|
|
|
62,236 |
|
|
|
55,753 |
|
Gross profit |
|
$ |
16,795 |
|
|
$ |
10,357 |
|
|
$ |
28,600 |
|
|
$ |
20,234 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
$ |
2,957 |
|
|
$ |
2,881 |
|
|
$ |
6,024 |
|
|
$ |
6,100 |
|
Operating profit |
|
$ |
13,838 |
|
|
$ |
7,476 |
|
|
$ |
22,576 |
|
|
$ |
14,134 |
|
Interest expense |
|
|
62 |
|
|
|
62 |
|
|
|
124 |
|
|
|
124 |
|
Interest and other income,
net |
|
|
(91 |
) |
|
|
(104 |
) |
|
|
(125 |
) |
|
|
(351 |
) |
Income tax expense |
|
|
2,774 |
|
|
|
1,417 |
|
|
|
4,453 |
|
|
|
2,716 |
|
Net income |
|
$ |
11,093 |
|
|
$ |
6,101 |
|
|
$ |
18,124 |
|
|
$ |
11,645 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per share of common
stock: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.96 |
|
|
$ |
1.08 |
|
|
$ |
3.21 |
|
|
$ |
2.07 |
|
Diluted |
|
$ |
1.96 |
|
|
$ |
1.08 |
|
|
$ |
3.20 |
|
|
$ |
2.07 |
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
5,657 |
|
|
|
5,629 |
|
|
|
5,654 |
|
|
|
5,627 |
|
Diluted |
|
|
5,669 |
|
|
|
5,637 |
|
|
|
5,667 |
|
|
|
5,636 |
|
Cash dividends per share of
common stock |
|
$ |
0.160 |
|
|
$ |
0.160 |
|
|
$ |
0.320 |
|
|
$ |
0.320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
|
|
|
|
|
|
2021 |
|
|
2020 |
|
BALANCE
SHEETS |
|
|
|
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
$ |
135,317 |
|
|
$ |
123,996 |
|
Property, plant and equipment, net |
|
|
|
|
|
|
|
|
159,536 |
|
|
|
152,461 |
|
Other non-current assets |
|
|
|
|
|
|
|
|
2,259 |
|
|
|
2,641 |
|
Total assets |
|
|
|
|
|
|
|
$ |
297,112 |
|
|
$ |
279,098 |
|
Liabilities and Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
$ |
10,605 |
|
|
$ |
11,588 |
|
Deferred tax liabilities, net |
|
|
|
|
|
|
|
|
23,300 |
|
|
|
21,531 |
|
Other long-term liabilities |
|
|
|
|
|
|
|
|
2,594 |
|
|
|
2,787 |
|
Stockholders’ equity |
|
|
|
|
|
|
|
|
260,613 |
|
|
|
243,192 |
|
Total liabilities and stockholders’ equity |
|
|
|
|
|
|
|
$ |
297,112 |
|
|
$ |
279,098 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact: Timothy W. Byrne |
(972) 991-8400 |
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