United States Lime & Minerals, Inc. (NASDAQ: USLM) today
reported first quarter 2020 results: The Company’s revenues
in the first quarter 2020 were $38.4 million, compared to $37.8
million in the first quarter 2019, an increase of $0.6 million, or
1.7%. The increase in revenues in the first quarter 2020,
compared to the first quarter 2019, resulted from an increase in
the average selling price for the Company’s lime and limestone
products, partially offset by decreased demand principally from the
Company’s environmental and oil and gas services customers.
The Company’s gross profit was $9.9 million in the first quarter
2020, compared to $8.7 million in the first quarter 2019, an
increase of $1.2 million, or 13.6%. The increased gross
profit in the first quarter 2020, compared to the first quarter
2019, resulted primarily from the increased revenues described
above, lower fuel costs, and increased operating efficiencies
associated, in part, with the new kiln at the Company’s St. Clair
facility, which began producing commercially saleable quicklime in
the second quarter 2019.
Selling, general and administrative (“SG&A”) expenses were
$3.2 million in the first quarter 2020, compared to $2.7 million in
the first quarter 2019, an increase of $0.5 million, or
20.4%. The increase in SG&A expenses resulted primarily
from increased personnel expenses, including stock-based
compensation, and legal expenses in the first quarter 2020.
The Company’s revenues in the first quarter 2020 included $226
thousand from natural gas interests, compared to $334 thousand in
the first quarter 2019. The Company’s gross profit in the
first quarter 2020 included a loss of $162 thousand from natural
gas interests, compared to income of $7 thousand in the first
quarter 2019. 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 that those
interests no longer represented a reportable segment.
The Company reported net income of $5.5 million ($0.98 per share
diluted) in the first quarter 2020, compared to $5.1 million ($0.91
per share diluted) in the first quarter 2019, an increase of $0.4
million, or 8.1%.
Federal, state, and local governmental responses to the COVID-19
pandemic, including restrictions requiring social distancing, and
on business activities and movement of people, began to take effect
the last two weeks of March 2020 and, therefore, did not have a
material impact on the Company’s financial condition or results of
operations for the first quarter 2020. The Company expects,
however, a slowdown in the national economy beginning in the second
quarter, and a possibly greater impact in certain industries, such
as oil and gas drilling activities, roofing, and steel.
“As we respond to the unprecedented times brought upon us all by
the COVID-19 pandemic, we have not wavered in our commitment to the
safety of our employees and the other individuals at our facilities
that deliver lime and limestone products to the essential
businesses and communities we serve. In addition to our standard
health and safety protocols, we have implemented enhanced protocols
at all of our locations, including reduced access to facilities,
screening of individuals on all sites, and the enforcement of
social distancing and other practices that are consistent with, or
exceed, the guidelines of the Center for Disease Control,” said
Timothy W. Byrne, President and Chief Executive Officer.
“We are pleased with our first quarter 2020 results but
acknowledge that the significant amount of current economic
uncertainty will negatively impact our customers and their demand
for our lime and limestone products as we progress through the rest
of the year. We expect to see continued reduction in demand for
many of our products, particularly from the oil and gas services,
roofing, and steel sectors. We will consider cost-cutting
initiatives and ways to further increase operating efficiencies in
an effort to mitigate some of the effects of the expected economic
downturn,” added Mr. Byrne.
Dividend
The Company also 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 June 12,
2020 to shareholders of record at the close of business on May 22,
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, 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.
Contact: Timothy W. Byrne |
(972) 991-8400 |
United States Lime &
Minerals, Inc.CONDENSED
CONSOLIDATED FINANCIAL DATA(In
thousands, except per share
amounts)(Unaudited)
|
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
|
2020 |
|
2019 |
INCOME STATEMENTS |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
38,440 |
|
|
$ |
37,799 |
|
Cost of sales |
|
28,563 |
|
|
|
29,106 |
|
Gross profit |
$ |
9,877 |
|
|
$ |
8,693 |
|
|
|
|
|
|
|
Selling, general and
administrative expenses |
$ |
3,219 |
|
|
$ |
2,673 |
|
Operating profit |
$ |
6,658 |
|
|
$ |
6,020 |
|
Interest expense |
|
62 |
|
|
|
62 |
|
Interest and other income,
net |
|
(247 |
) |
|
|
(492 |
) |
Income tax expense |
|
1,299 |
|
|
|
1,322 |
|
Net income |
$ |
5,544 |
|
|
$ |
5,128 |
|
|
|
|
|
|
|
Income per share of common
stock: |
|
|
|
|
|
Basic |
$ |
0.99 |
|
|
$ |
0.91 |
|
Diluted |
$ |
0.98 |
|
|
$ |
0.91 |
|
Weighted-average shares
outstanding: |
|
|
|
|
|
Basic |
|
5,624 |
|
|
|
5,609 |
|
Diluted |
|
5,634 |
|
|
|
5,615 |
|
Cash dividends per share of
common stock |
$ |
0.160 |
|
|
$ |
0.135 |
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
2020 |
|
2019 |
BALANCE
SHEETS |
|
|
|
|
|
Assets: |
|
|
|
|
|
Current assets |
$ |
97,368 |
|
|
$ |
92,735 |
|
Property, plant and equipment, net |
|
151,289 |
|
|
|
150,687 |
|
Other non-current assets |
|
3,210 |
|
|
|
3,615 |
|
Total assets |
$ |
251,867 |
|
|
$ |
247,037 |
|
Liabilities and Stockholders’
Equity: |
|
|
|
|
|
Current liabilities |
$ |
8,565 |
|
|
$ |
9,459 |
|
Deferred tax liabilities, net |
|
18,198 |
|
|
|
17,218 |
|
Other long-term liabilities |
|
2,937 |
|
|
|
3,228 |
|
Stockholders’ equity |
|
222,167 |
|
|
|
217,132 |
|
Total liabilities and stockholders’ equity |
$ |
251,867 |
|
|
$ |
247,037 |
|
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