United States Lime & Minerals Reports Fourth Quarter and Full Year 2023 Results and Declares Increased Regular Quarterly Cash Dividend
- Revenues increased by 12.7% for the fourth quarter and 19.1% for the full year 2023
- Gross profit rose by 40.4% in the fourth quarter and 46.2% for the full year 2023
- Net income increased by 57.5% for the fourth quarter and 64.1% for the full year 2023
- An increased regular quarterly cash dividend of $0.25 per share was declared
- None.
Insights
The reported revenue and profit increases for United States Lime & Minerals, Inc. are indicative of effective pricing strategies and potentially improved operational efficiencies, despite the noted decrease in sales volumes. The revenue growth of 19.1% year-over-year and the substantial 46.2% increase in gross profit margin highlight the company's ability to capitalize on higher average selling prices, which may reflect a favorable market positioning or a competitive advantage in the lime and limestone market.
However, the decrease in volume due to reduced demand from industrial and construction sectors presents a concern for future revenue sustainability. The company's reliance on the roofing, environmental and oil and gas services sectors to offset these declines suggests a need to diversify customer bases or enhance product offerings to mitigate sector-specific risks. The statement by the CEO regarding soft construction demand into the first half of 2024 further underscores the potential for continued challenges in these market segments.
The increase in SG&A expenses, primarily due to personnel costs, while modest, may warrant attention to ensure that administrative expenses are aligned with revenue growth and do not outpace it in the long term. The substantial increase in net income, by 57.5% for the quarter and 64.1% for the year, is a strong indicator of the company's profitability and may positively influence investor sentiment. Additionally, the increase in other (income) expense, net, attributed to higher interest rates on cash balances, reflects a healthy liquidity position that could provide financial flexibility in the face of market headwinds.
The declaration of an increased regular quarterly cash dividend could be seen as a signal of confidence by the board in the company's financial health and future prospects. Dividend increases often appeal to income-focused investors and could potentially attract new shareholders, contributing to stock demand and valuation.
The company's performance must be contextualized within the broader economic environment, particularly the impact of inflationary pressures on production costs, notably energy, labor and parts and supplies. The ability to pass on these costs to consumers through higher selling prices may not be sustainable in the event of prolonged inflation or economic downturn. It is crucial to monitor the company's pricing power in relation to consumer demand elasticity, especially in the industrial and construction sectors, which are sensitive to macroeconomic cycles.
Additionally, the reference to higher interest rates earned on cash balances suggests an environment of rising interest rates, which can have mixed effects on the company. While beneficial for cash holdings, higher interest rates can also increase borrowing costs and dampen economic growth, potentially affecting customer demand and capital investment decisions.
DALLAS, Feb. 02, 2024 (GLOBE NEWSWIRE) -- United States Lime & Minerals, Inc. (NASDAQ: USLM) today reported fourth quarter and full year 2023 results: The Company’s revenues in the fourth quarter 2023 were
The Company’s gross profit was
Selling, general and administrative (“SG&A”) expenses were
Other (income) expense, net was
The Company reported net income of
“While we are pleased with our financial performance in the fourth quarter and full year 2023, reduced demand in the fourth quarter from our industrial and construction customers continued to generate headwinds for us. Increased demand from our roofing and oil and gas customers was an encouraging offset to overall decreases in volume,” said Timothy W. Byrne, President and Chief Executive Officer. “Looking ahead, we anticipate that soft construction demand, particularly from commercial building, will continue through at least the first half 2024,” Mr. Byrne added.
Dividend
The Company announced today that the Board of Directors has declared an increased regular quarterly cash dividend of
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), metals (including steel producers), industrial (including paper and glass manufacturers), environmental (including municipal sanitation and water treatment facilities and flue gas treatment processes), roof shingle manufacturers, oil and gas services industries, and agriculture (including poultry producers). 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, ART Quarry TRS LLC (DBA Carthage Crushed Limestone), Colorado Lime Company, Mill Creek Dolomite, LLC, 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-operated working interests in natural gas wells located in Johnson County, Texas, in the Barnett Shale Formation.
Any statements contained in this news release, including, but not limited to, statements relating to reduced demand and increased production costs, including higher energy, labor, and parts and supplies costs, 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, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| INCOME STATEMENTS | |||||||||||||||
| Revenues | $ | 65,692 | $ | 58,292 | $ | 281,330 | $ | 236,150 | |||||||
| Cost of revenues | 42,103 | 41,488 | 178,463 | 165,808 | |||||||||||
| Gross profit | $ | 23,589 | $ | 16,804 | $ | 102,867 | $ | 70,342 | |||||||
| Selling, general and administrative expenses | $ | 4,619 | $ | 4,533 | $ | 17,445 | $ | 15,559 | |||||||
| Operating profit | $ | 18,970 | $ | 12,271 | $ | 85,422 | $ | 54,783 | |||||||
| Other (income) expense, net | (2,411 | ) | (1,154 | ) | (7,940 | ) | (1,779 | ) | |||||||
| Income tax expense | 4,381 | 2,628 | 18,813 | 11,133 | |||||||||||
| Net income | $ | 17,000 | $ | 10,797 | $ | 74,549 | $ | 45,429 | |||||||
| Income per share of common stock: | |||||||||||||||
| Basic | $ | 2.98 | $ | 1.90 | $ | 13.10 | $ | 8.01 | |||||||
| Diluted | $ | 2.98 | $ | 1.90 | $ | 13.06 | $ | 8.00 | |||||||
| Weighted-average shares outstanding: | |||||||||||||||
| Basic | 5,697 | 5,674 | 5,692 | 5,672 | |||||||||||
| Diluted | 5,712 | 5,684 | 5,707 | 5,680 | |||||||||||
| Cash dividends per share of common stock | $ | 0.20 | $ | 0.20 | $ | 0.80 | $ | 0.80 | |||||||
| December 31, | December 31, | ||||||||||||||
| 2023 | 2022 | ||||||||||||||
| BALANCE SHEETS | |||||||||||||||
| Assets: | |||||||||||||||
| Current assets | $ | 254,969 | $ | 189,990 | |||||||||||
| Property, plant and equipment, net | 179,795 | 171,970 | |||||||||||||
| Other non-current assets | 5,838 | 5,812 | |||||||||||||
| Total assets | $ | 440,602 | $ | 367,772 | |||||||||||
| Liabilities and Stockholders’ Equity: | |||||||||||||||
| Current liabilities | $ | 17,491 | $ | 15,537 | |||||||||||
| Deferred tax liabilities, net | 24,659 | 25,582 | |||||||||||||
| Other long-term liabilities | 5,348 | 5,565 | |||||||||||||
| Stockholders’ equity | 393,104 | 321,088 | |||||||||||||
| Total liabilities and stockholders’ equity | $ | 440,602 | $ | 367,772 | |||||||||||
Contact: Timothy W. Byrne
(972) 991-8400
FAQ
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