United States Lime & Minerals Reports Record Second Quarter 2005
Results
DALLAS, July 28 /PRNewswire-FirstCall/ -- United States Lime & Minerals, Inc. (NASDAQ:USLM) today reported record second quarter 2005 results: Revenues
increased to $17,124,000 from $14,752,000 in the prior year quarter, an
increase of $2,372,000, or 16.1%. For the six months ended June 30, 2005,
revenues increased to $32,590,000 from $26,827,000 for the same period 2004, an
increase of $5,763,000, or 21.5%. The Company reported net income of $2,909,000
($0.49 per share) in the second quarter 2005, compared to net income of
$2,452,000 ($0.42 per share) in the second quarter 2004, an increase of
$457,000, or 18.6%. For the six months ended June 30, 2005, the Company
reported net income of $4,404,000 ($0.74 per share), compared to net income of
$3,282,000 ($0.56 per share) for the first half 2004, an increase of
$1,122,000, or 34.2%. Net income for the second quarter and first half 2004
included $954,000 ($0.16 per share), net of income taxes ($1,192,000 gross),
for a lease bonus payment received for the lease of the Company's oil and gas
rights on its Cleburne, Texas property.
The Company's gross profit was $5,764,000 for the second quarter 2005, compared
to $4,605,000 for the comparable 2004 quarter, an increase of $1,159,000, or
25.2%. For the first half 2005, gross profit was $10,153,000, compared to
$8,020,000 for the comparable 2004 period, an increase of $2,133,000, or 26.6%. The revenue and gross profit increases were primarily due to increased lime
sales resulting from lime production from the new kiln at the Company's
Arkansas plant, which came on line in February 2004 and average price increases
for the Company's products of 9.0% and 8.8% in the second quarter and first half
2005, respectively, compared to the comparable 2004 periods. In addition,
favorable weather conditions in the second quarter 2005 resulted in increased
construction demand for products from the Company's Cleburne, Texas plant,
compared to the second quarter 2004, during which near record rainfall reduced
construction demand.
Interest expense in the second quarter 2005 decreased $711,000, or 45.0%, to
$868,000, compared to $1,579,000 in the second quarter 2004. For the first half
2005, interest expense decreased $780,000, or 28.0%, to $2,006,000, compared to
$2,786,000 for the comparable 2004 period. Interest expense decreased in the
2005 periods principally due to the Company's August 2004 debt refinancing and
$7,025,000 of net debt repayments over the last 12 months, including
approximately $4,192,000 of repayments in the first half 2005. The decrease
for the first half 2005 would have been greater except for the fact that
$334,000 of interest was capitalized in the first half 2004 as part of the
Company's Arkansas expansion project. Also, due to an increase of more than
50% in the per share average closing price of the Company's common stock for
the last 30 trading days ending on June 30, 2005, compared to the last 30
trading days ending on December 31, 2004, the first half 2005 included a
$434,000 non-cash charge to interest for a mark-to-market adjustment on the
Company's warrant share put liability, compared to a $91,000 charge in the
comparable 2004 period.
"We are pleased to see the positive operating and financial impacts resulting
from our capital investments over the last few years and our 2004 debt
refinancing," said Timothy W. Byrne, President and Chief Executive Officer.
"Overall demand for our lime and limestone products has remained firm with the
exception of steel demand. Beginning in May many of our steel customers
reduced their production, which has currently reduced demand from that
industry," Mr. Byrne added. "We are also pleased to report that we have given
notice to the holders of our Subordinated Notes that we intend to prepay the
full $7,000,000 remaining outstanding principal balance on August 5, 2005. Although we will incur a one-time $280,000 penalty on this prepayment, we will
further reduce our ongoing interest expense by more than $500,000 annually
based on the lower interest rates currently available on our revolver." United States Lime & Minerals, Inc. is a Nasdaq-listed public company with
headquarters in Dallas, Texas, supplying lime and limestone products primarily
to the construction, steel, municipal sanitation and water treatment, paper,
chemical, roof shingle, agriculture and glass industries from plants situated
in Texas, Arkansas and Colorado.
Any statements contained in this news release 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) Quarter Ended Six Months
June 30, June 30,
INCOME STATEMENTS 2005 2004 2005 2004 Revenues $17,124 14,752 32,590 26,827
Gross profit $5,764 4,605 10,153 8,020
Operating profit $4,450 3,391 7,439 5,618
Interest expense 868 1,579 2,006 2,786
Other (income), net (85) (1,252) (103) (1,270)
Income tax expense 758 612 1,132 820 Net income 2,909 2,452 4,404 3,282 Net income per share of common
stock:
Basic $0.49 0.42 0.75 0.56
Diluted $0.49 0.42 0.74 0.56 Weighted average shares
outstanding:
Basic 5,890 5,828 5,875 5,823
Diluted 5,998 5,903 5,991 5,897 June 30, December 31,
BALANCE SHEETS 2005 2004 Assets:
Current assets $15,542 15,802
Property, plant and equipment, net 84,599 83,541
Other assets 1,133 996
Total assets $101,274 100,339 Liabilities and Stockholders' Equity:
Current liabilities $9,558 9,669
Debt, excluding current installments 37,213 41,390
Other liabilities 1,423 1,057
Stockholders' equity 53,080 48,223
Total liabilities and stockholders' equity $101,274 100,339
DATASOURCE: United States Lime & Minerals, Inc.
CONTACT: Timothy W. Byrne of United States Lime & Minerals, Inc., +1-972-991-8400 Web site: http://www.uslm.com/
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