United States Lime & Minerals, Inc. (NASDAQ: USLM) today
reported fourth quarter and full year 2019 results: The
Company’s revenues in the fourth quarter 2019 were $38.0 million,
compared to $34.6 million in the fourth quarter 2018, an increase
of $3.3 million, or 9.6%. For the full year 2019, revenues
were $158.3 million, compared to $144.4 million in the full year
2018, an increase of $13.8 million, or 9.6%.
The Company’s gross profit was $9.8 million in the fourth
quarter 2019, compared to $6.6 million in the fourth quarter 2018,
an increase of $3.2 million, or 47.7%. Gross profit in the
full year 2019 was $41.7 million, an increase of $11.2 million, or
36.7%, from $30.5 million in the full year 2018.
Selling, general and administrative (“SG&A”) expenses were
$3.3 million in the fourth quarter 2019, compared to $2.7 million
in the fourth quarter 2018, an increase of $0.6 million, or
24.0%. SG&A expenses were $11.5 million in the full year
2019, compared to $10.5 million in the full year 2018, an increase
of $1.0 million, or 9.7%. The increases in SG&A expenses
were primarily from increased personnel and legal expenses in the
fourth quarter 2019.
The Company’s operating profit was $5.6 million in the fourth
quarter 2019, compared to $4.0 million in the fourth quarter 2018,
an increase of $1.6 million, or 40.0%. The operating profit
was $29.2 million in the full year 2019, compared to $20.0 million
in the full year 2018, an increase of $9.2 million, or 46.2%.
During the fourth quarter 2019, the Company recognized a $0.9
million impairment charge on long lived assets, which reduced
operating profit in the 2019 periods.
Income tax expense was $1.0 million in the fourth quarter 2019,
compared to $0.2 million in the fourth quarter 2018. Income
tax expense was $4.8 million in the full year 2019, compared to
$1.9 million in the full year 2018.
The Company reported net income of $5.0 million ($0.89 per share
diluted) in the fourth quarter 2019, compared to $4.2 million
($0.75 per share diluted) in the fourth quarter 2018, an increase
of $0.8 million, or 18.0%. The Company reported net income of
$26.1 million ($4.64 per share diluted) in the full year 2019,
compared to $19.7 million ($3.51 per share diluted) in the full
year 2018, an increase of $6.4 million, or 32.4%.
In the fourth quarter 2019, the Company recognized an impairment
charge of $0.9 million ($0.7 million, net of tax) to adjust the
carrying values of the long lived assets of its natural gas
interests. Prices for natural gas and natural gas liquids
have decreased during 2019, compared to 2018, which led to the
impairment of the assets. The Company’s revenues in the
fourth quarter 2019 included $0.3 million from natural gas
interests, compared to $0.7 million in the fourth quarter
2018. The Company’s revenues in the full year 2019 included
$1.3 million from natural gas interests, compared to $2.5 million
in the full year 2018. The Company’s gross profit in the
fourth quarter 2019 included a loss of $0.4 million from natural
gas interests, compared to income of $0.2 million in the fourth
quarter 2018. For the full year 2019, the Company’s gross
profit included a loss of $0.4 million from natural gas interests,
compared to income of $1.0 million in the full year 2018. In the
fourth quarter 2019, the Company assessed the recent trends of
revenue, gross profit or loss and total assets of its natural gas
interests and determined those interests no longer represent a
reportable segment.
Revenues from the Company’s lime and limestone operations in the
fourth quarter 2019 were $37.7 million, compared to $33.9 million
in the fourth quarter 2018, an increase of $3.7 million, or 11.0%,
while for the full year 2019, revenues from lime and limestone
operations were $157.0 million, compared to $141.9 million in 2018,
an increase of $15.1 million, or 10.6%. The increase in lime
and limestone revenues in the fourth quarter 2019, compared to the
fourth quarter 2018, resulted from increased demand, primarily from
the Company’s construction customers, and an increase in average
prices realized for the Company’s lime and limestone
products. Demand from the Company’s construction customers
benefited from favorable weather conditions in the fourth quarter
2019, compared to the fourth quarter 2018 when it was adversely
impacted by sustained rains throughout the month of October in
Texas. The increase in the Company’s lime and limestone
revenues in the full year 2019, compared to the full year 2018,
resulted primarily from increased demand, principally from its
construction and environmental customers and an increase in average
prices realized for the Company’s lime and limestone products.
Gross profit from the Company’s lime and limestone operations
was $10.2 million in the fourth quarter 2019, compared to $6.4
million in the fourth quarter 2018, an increase of $3.8 million, or
60.0%. Gross profit from the Company’s lime and limestone
operations was $42.0 million for the full year 2019, compared to
$29.5 million for the full year 2018, an increase of $12.6 million,
or 42.6%. The increased gross profit from the Company’s lime
and limestone operations for the fourth quarter and full year 2019,
compared to the comparable 2018 periods, resulted primarily from
the increase in revenues discussed above, lower fuel costs and
increased operating efficiencies associated with the new kiln at
the Company’s St. Clair facility, which began producing
commercially saleable quicklime in the second quarter 2019.
During the fourth quarter 2019, the Company declared and paid a
special cash dividend of $30.1 million, or $5.35 per share, on the
Company’s common stock, in addition to its regular quarterly cash
dividend of $0.135 (13.5 cents) per share on the Company’s common
stock.
“We are pleased to see positive movement in our pricing of lime
and limestone products after years of not seeing meaningful
improvements. In 2019, we also benefited from the efficiency
gains of the new St. Clair kiln and lower fuel costs. Lastly,
we were able to pay a special cash dividend of $30.1 million to our
shareholders in the fourth quarter 2019, increase our regular
quarterly cash dividend in the first quarter 2020 and still
maintain our strong balance sheet,” said Timothy W. Byrne,
President and Chief Executive Officer.
Dividend
The Company also announced today that the Board of Directors has
declared an increased regular quarterly cash dividend of $0.16 (16
cents) per share on the Company’s common stock. This dividend is
payable on March 13, 2020 to shareholders of record at the close of
business on February 21, 2020.
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),
environmental (including municipal sanitation and water treatment
facilities and flue gas treatment processes), metals (including
steel producers), oil and gas services, roof shingle manufacturers
and agriculture (including poultry and cattle feed producers)
industries. The Company operates lime and limestone plants
and distribution facilities in Arkansas, Colorado, Louisiana,
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 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 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 |
|
Year Ended |
|
|
|
December 31, |
|
December 31, |
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
INCOME STATEMENTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
37,965 |
|
|
$ |
34,634 |
|
|
$ |
158,277 |
|
|
$ |
144,435 |
|
|
Cost of sales |
|
|
28,192 |
|
|
|
28,018 |
|
|
|
116,601 |
|
|
|
113,949 |
|
|
Gross profit |
|
$ |
9,773 |
|
|
$ |
6,616 |
|
|
$ |
41,676 |
|
|
$ |
30,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
$ |
3,260 |
|
|
$ |
2,628 |
|
|
$ |
11,500 |
|
|
$ |
10,484 |
|
|
Impairment of long lived
assets |
|
|
930 |
|
|
|
— |
|
|
|
930 |
|
|
|
— |
|
|
Operating profit |
|
$ |
5,583 |
|
|
$ |
3,988 |
|
|
$ |
29,246 |
|
|
$ |
20,002 |
|
|
Interest expense |
|
|
61 |
|
|
|
52 |
|
|
|
244 |
|
|
|
243 |
|
|
Interest and other income,
net |
|
|
(439 |
) |
|
|
(502 |
) |
|
|
(1,898 |
) |
|
|
(1,809 |
) |
|
Income tax expense |
|
|
968 |
|
|
|
207 |
|
|
|
4,844 |
|
|
|
1,883 |
|
|
Net income |
|
$ |
4,993 |
|
|
$ |
4,231 |
|
|
$ |
26,056 |
|
|
$ |
19,685 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per share of common
stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.89 |
|
|
$ |
0.76 |
|
|
$ |
4.64 |
|
|
$ |
3.52 |
|
|
Diluted |
|
$ |
0.89 |
|
|
$ |
0.75 |
|
|
$ |
4.64 |
|
|
$ |
3.51 |
|
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
5,613 |
|
|
|
5,598 |
|
|
|
5,612 |
|
|
|
5,595 |
|
|
Diluted |
|
|
5,625 |
|
|
|
5,604 |
|
|
|
5,621 |
|
|
|
5,602 |
|
|
Cash dividends per share of
common stock |
|
$ |
5.485 |
|
|
$ |
0.135 |
|
|
$ |
5.890 |
|
|
$ |
0.540 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
|
BALANCE
SHEETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
$ |
92,735 |
|
|
$ |
101,358 |
|
|
Property, plant and equipment, net |
|
|
|
|
|
|
|
|
150,687 |
|
|
|
142,764 |
|
|
Other non-current assets |
|
|
|
|
|
|
|
|
3,615 |
|
|
|
549 |
|
|
Total assets |
|
|
|
|
|
|
|
$ |
247,037 |
|
|
$ |
244,671 |
|
|
Liabilities and Stockholders’
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
$ |
9,459 |
|
|
$ |
7,963 |
|
|
Deferred tax liabilities, net |
|
|
|
|
|
|
|
|
17,218 |
|
|
|
12,365 |
|
|
Other long-term liabilities |
|
|
|
|
|
|
|
|
3,228 |
|
|
|
1,376 |
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
|
217,132 |
|
|
|
222,967 |
|
|
Total liabilities and stockholders’ equity |
|
|
|
|
|
|
|
$ |
247,037 |
|
|
$ |
244,671 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact: Timothy W. Byrne |
(972) 991-8400 |
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