United States Lime & Minerals Inc 10-Q for FY2023 Q3

United States Lime & Minerals Inc (USLM)

10-Q 2023-11-02 For: 2023-09-30

Added on April 10, 2026

About this 10-Q

United States Lime & Minerals Inc filed this 10-Q on November 2, 2023, covering the quarter ended September 30, 2023 (FY2023 Q3).

Headline figures

Quarter ended September 30, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $74.88M; up 12.7% from $66.46M a year earlier
Net income: $20.73M; up 31.8% from net income of $15.73M a year earlier
Diluted EPS: $3.63; up 31.0% from $2.77 a year earlier

Pricing Level	Cash Flow Leverage Ratio	Revolving Commitment Fee	Daily Simple SOFR Loans and Term SOFR Loans and Letters of Credit	Base Rate Loans
I	Less than 1.50 to 1.00	0.225%	1.00%	0.000%
II	Greater than or equal to 1.50 to 1.00 but less than 2.00 to 1.00	0.225%	1.25%	0.250%
III	Greater than or equal to 2.00 to 1.00 but less than 2.50 to 1.00	0.250%	1.50%	0.500%
IV	Greater than or equal to 2.50 to 1.00 but less than 3.00 to 1.00	0.275%	1.75%	0.750%
V	Greater than or equal to 3.00 to 1.00	0.350%	2.00%	1.000%

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Texas		75-0789226
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)


5429 LBJ Freeway, Suite 230, Dallas, TX		75240
(Address of principal executive offices)		(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $0.10 par value	USLM	The Nasdaq Stock Market LLC


Large accelerated filer	☐	Accelerated filer ☒
Non-accelerated filer	☐	Smaller reporting company ☒
		Emerging growth company ☐


	September 30,		December 31,
	2023		2022
ASSETS
Current assets
Cash and cash equivalents	$	176,305	$	133,384
Trade receivables, net		44,061		33,592
Inventories, net		23,778		19,579
Prepaid expenses and other current assets		2,250		3,435
Total current assets		246,394		189,990
Property, plant and equipment		456,530		441,597
Less accumulated depreciation and depletion		(284,469)		(269,627)
Property, plant and equipment, net		172,061		171,970
Operating lease right-of-use assets		5,010		5,372
Other assets, net		590		440
Total assets	$	424,055	$	367,772
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	8,070	$	7,725
Current portion of operating lease liabilities		1,494		1,411
Accrued expenses		6,438		6,401
Total current liabilities		16,002		15,537
Deferred tax liabilities, net		25,263		25,582
Operating lease liabilities, excluding current portion		3,740		4,129
Other liabilities		1,418		1,436
Total liabilities		46,423		46,684
Stockholders’ equity
Common stock		672		671
Additional paid-in capital		37,035		34,528
Retained earnings		396,638		342,504
Less treasury stock, at cost		(56,713)		(56,615)
Total stockholders’ equity		377,632		321,088
Total liabilities and stockholders’ equity	$	424,055	$	367,772


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Three Months Ended September 30,								Nine Months Ended September 30,
	2023				2022				2023				2022
Revenues	$	74,878	100.0	%	$	66,457	100.0	%	$	215,638	100.0	%	$	177,858	100.0	%
Cost of revenues
Labor and other operating expenses		40,827	54.5	%		38,221	57.5	%		118,796	55.1	%		108,018	60.7	%
Depreciation, depletion and amortization		5,896	7.9	%		5,646	8.5	%		17,564	8.1	%		16,302	9.2	%
		46,723	62.4	%		43,867	66.0	%		136,360	63.2	%		124,320	69.9	%
Gross profit		28,155	37.6	%		22,590	34.0	%		79,278	36.8	%		53,538	30.1	%
Selling, general and administrative expenses		4,355	5.8	%		3,543	5.3	%		12,826	6.0	%		11,026	6.2	%
Operating profit		23,800	31.8	%		19,047	28.7	%		66,452	30.8	%		42,512	23.9	%

Other (income) expense, net		(2,197)	(2.9)	%		(514)	(0.8)	%		(5,529)	(2.6)	%		(625)	(0.4)	%
Income before income tax expense		25,997	34.7	%		19,561	29.5	%		71,981	33.4	%		43,137	24.3	%
Income tax expense		5,264	7.0	%		3,835	5.8	%		14,432	6.7	%		8,505	4.8	%
Net income	$	20,733	27.7	%	$	15,726	23.7	%	$	57,549	26.7	%	$	34,632	19.5	%
Net income per share of common stock
Basic	$	3.64			$	2.77			$	10.11			$	6.11
Diluted	$	3.63			$	2.77			$	10.09			$	6.10



	Common Stock			Additional
	Shares			Paid-In		Retained		Treasury
	Outstanding	Amount		Capital		Earnings		Stock		Total
Balances at December 31, 2022	5,682,079	$	671	$	34,528	$	342,504	$	(56,615)	$	321,088
Stock options exercised	5,762		1		112		—		—		113
Stock-based compensation	3,124		—		812		—		—		812
Treasury shares purchased	(646)		—		—		—		(98)		(98)
Cash dividends paid	—		—		—		(1,137)		—		(1,137)
Net income	—		—		—		17,104		—		17,104
Balances at March 31, 2023	5,690,319	$	672	$	35,452	$	358,471	$	(56,713)	$	337,882
Stock-based compensation	3,182		—		796		—		—		796
Cash dividends paid	—		—		—		(1,139)		—		(1,139)
Net income	—		—		—		19,712		—		19,712
Balances at June 30, 2023	5,693,501	$	672	$	36,248	$	377,044	$	(56,713)	$	357,251
Stock options exercised	3,526		—		—		—		—		—
Stock-based compensation	(27)		—		787		—		—		787
Cash dividends paid	—		—		—		(1,139)		—		(1,139)
Net income	—		—		—		20,733		—		20,733
Balances at September 30, 2023	5,697,000	$	672	$	37,035	$	396,638	$	(56,713)	$	377,632


		Three Months Ended September 30,				Nine Months Ended September 30,
	Classification	2023		2022		2023		2022
Operating lease costs⁽¹⁾	Cost of revenues	$	823	$	606	$	2,400	$	1,746
Operating lease costs⁽¹⁾	Selling, general and administrative expenses		51		70		131		210
Rental revenues	Revenues		(129)		(133)		(357)		(310)
Rental revenues	Other (income) expense, net		(23)		(10)		(59)		(52)
Net operating lease costs		$	722	$	533	$	2,115	$	1,594



2023 (excluding the nine months ended September 30, 2023)	$	412
2024		1,579
2025		1,290
2026		1,193
2027		779
Thereafter		267
Total future minimum lease payments		5,520
Less imputed interest		(285)
Present value of lease liabilities	$	5,235


EXHIBIT
NUMBER		DESCRIPTION

10.1		Tenth Amendment to the Credit Agreement, dated as of August 3, 2023, among United States Lime & Minerals, Inc., each lender from time to time a party thereto, and Wells Fargo, N.A., as administrative agent.

31.2		Rule 13a-14(a)/15d-14(a) Certification by the Chief Financial Officer.

32.1		Section 1350 Certification by the Chief Executive Officer.

32.2		Section 1350 Certification by the Chief Financial Officer.


95.1		Mine Safety Disclosures.

101		Interactive Data Files (formatted as Inline XBRL).

104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).


	UNITED STATES LIME & MINERALS, INC.


November 2, 2023	By:	/s/ Timothy W. Byrne
		Timothy W. Byrne
		President and Chief Executive Officer
		(Principal Executive Officer)


November 2, 2023	By:	/s/ Michael L. Wiedemer
		Michael L. Wiedemer
		Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)


	BORROWER:

	UNITED STATES LIME & MINERALS, INC.

	By:
		Name:
		Title:


	Three Months Ended September 30,				Nine Months Ended September 30,
Revenues	2023		2022		2023		2022
Lime and limestone operations	$	74,582	$	65,699	$	214,808	$	175,608
Other		296		758		830		2,250
Total revenues	$	74,878	$	66,457	$	215,638	$	177,858
Depreciation, depletion and amortization
Lime and limestone operations	$	5,763	$	5,513	$	17,179	$	15,882
Other		133		133		385		420
Total depreciation, depletion and amortization	$	5,896	$	5,646	$	17,564	$	16,302
Gross profit (loss)
Lime and limestone operations	$	28,160	$	22,166	$	79,339	$	52,338
Other		(5)		424		(61)		1,200
Total gross profit	$	28,155	$	22,590	$	79,278	$	53,538
Operating profit (loss)
Lime and limestone operations	$	23,807	$	18,626	$	66,523	$	41,321
Other		(7)		421		(71)		1,191
Total operating profit	$	23,800	$	19,047	$	66,452	$	42,512
Identifiable assets, at period end
Lime and limestone operations	$	244,039	$	228,797	$	244,039	$	228,797
Other		180,016		127,083		180,016		127,083
Total identifiable assets	$	424,055	$	355,880	$	424,055	$	355,880
Capital expenditures
Lime and limestone operations	$	15,090	$	6,635	$	20,541	$	18,120
Other		—		—		—		—
Total capital expenditures	$	15,090	$	6,635	$	20,541	$	18,120


	September 30,		December 31,
	2023		2022
Lime and limestone inventories:
Raw materials	$	7,271	$	5,506
Finished goods		3,153		2,951
		10,424		8,457
Service parts inventories		13,354		11,122
	$	23,778	$	19,579

	WELLS FARGO BANK, N.A.,
	as Administrative Agent and a Lender

	By:
		Jason Ford
		Senior Vice President

	ACT HOLDINGS, INC.
	ARKANSAS LIME COMPANY
	COLORADO LIME COMPANY
	CORSON LIME COMPANY
	TEXAS LIME COMPANY
	U.S. LIME COMPANY (formerly named
		U.S. LIME COMPANY – HOUSTON)
		U.S. LIME COMPANY – O&G, LLC
		(formerly named U.S. LIME – O&G
		COMPANY, LLC)
	U.S. LIME COMPANY – SHREVEPORT
	U.S. LIME COMPANY – ST. CLAIR
	U.S. LIME COMPANY – TRANSPORTATION
	U.S. LIME – O&G (DELAWARE) LP, LLC
	U.S. LIME – O&G GP, LLC

	By:
		Name:
		Title:

	U.S. LIME – O&G PARTNERS, LP

	By:	U.S. Lime – O&G GP, LLC,
		its general partner


ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS		1
Section 1.01	Defined Terms	1
Section 1.02	Other Interpretive Provisions	32
Section 1.03	Accounting Terms	33
Section 1.04	Rounding	34
Section 1.05	References to Agreements and Laws	34
Section 1.06	Times of Day	34
Section 1.07	Letter of Credit Amounts	34
Section 1.08	Rates	34
Section 1.09	Divisions	35

ARTICLE II. THE COMMITMENTS AND CREDIT EXTENSIONS		35
Section 2.01	Revolving Loans	35
Section 2.02	Intentionally Omitted	36
Section 2.02A	Intentionally Omitted	36
Section 2.03	Borrowings, Conversions and Continuations of Loans	36
Section 2.04	Letters of Credit	37
Section 2.05	Swing Line Loans	44
Section 2.06	Prepayments	48
Section 2.07	Termination or Reduction of Commitments	49
Section 2.08	Repayment of Loans	49
Section 2.09	Interest	49
Section 2.10	Fees	51
Section 2.11	Notice and Manner of Conversion or Continuation of Loans	51
Section 2.12	Evidence of Debt	52
Section 2.13	Payments Generally	52
Section 2.14	Sharing of Payments	54
Section 2.15	Incremental Loans	55

ARTICLE III. TAXES, YIELD PROTECTION AND ILLEGALITY		58
Section 3.01	Taxes	58
Section 3.02	Illegality	62
Section 3.03	Changed Circumstances	62
Section 3.04	Increased Cost	66
Section 3.05	Indemnity	67
Section 3.06	Mitigation Obligations; Replacement of Lenders	68
Section 3.07	Survival	68

ARTICLE IV. CONDITIONS PRECEDENT TO CREDIT EXTENSIONS		68
Section 4.01	Conditions of Initial Credit Extension	68
Section 4.02	Conditions to all Credit Extensions	71

ARTICLE V. REPRESENTATIONS AND WARRANTIES		71
Section 5.01	Existence, Qualification and Power; Compliance with Laws	71

2
Section 5.02	Authorization; No Contravention	72
Section 5.03	Governmental Authorization; Other Consents	72
Section 5.04	Binding Effect	72
Section 5.05	Financial Statements; No Material Adverse Effect	72
Section 5.06	Litigation	73
Section 5.07	No Default	73
Section 5.08	Ownership of Property; Liens	73
Section 5.09	Environmental Compliance	73
Section 5.10	Insurance	73
Section 5.11	Taxes	73
Section 5.12	ERISA Compliance	74
Section 5.13	Subsidiaries	74
Section 5.14	Margin Regulations; Investment Company Act	74
Section 5.15	Disclosure	75
Section 5.16	Compliance with Laws	75
Section 5.17	Intellectual Property; Licenses, Etc	75
Section 5.18	Businesses	75
Section 5.19	Common Enterprise	76
Section 5.20	Solvent	76
Section 5.21	Real Estate Collateral	76
Section 5.22	Intentionally Omitted	76
Section 5.23	Anti-Corruption Laws; Anti-Money Laundering Laws and Sanctions	76
Section 5.24	EEA Financial Institutions	77

ARTICLE VI. AFFIRMATIVE COVENANTS		77
Section 6.01	Financial Statements	77
Section 6.02	Certificates; Other Information	78
Section 6.03	Notices	79
Section 6.04	Payment of Obligations	79
Section 6.05	Preservation of Existence, Etc	80
Section 6.06	Maintenance of Properties	80
Section 6.07	Maintenance of Insurance	80
Section 6.08	Compliance with Laws	80
Section 6.09	Books and Records	80
Section 6.10	Inspection Rights	80
Section 6.11	Compliance with ERISA	81
Section 6.12	Use of Proceeds	81
Section 6.13	Cash Collateral	81
Section 6.14	Subsidiaries	81
Section 6.15	Further Assurances	82
Section 6.16	Compliance with Anti-Corruption Laws; Beneficial Ownership Regulation, Anti-Money Laundering Laws and Sanctions	82

ARTICLE VII. NEGATIVE COVENANTS		83
Section 7.01	Liens	83
Section 7.02	Investments	84


Section 7.03	Indebtedness	85
Section 7.04	Fundamental Changes	86
Section 7.05	Dispositions	87
Section 7.06	Intentionally Omitted	87
Section 7.07	Restricted Payments; Redemption of Permitted Junior Debt	87
Section 7.08	ERISA	88
Section 7.09	Change in Nature of Business	89
Section 7.10	Transactions with Affiliates	89
Section 7.11	Intentionally Omitted	89
Section 7.12	Burdensome Agreements	89
Section 7.13	Use of Proceeds	89
Section 7.14	Financial Covenants	90
Section 7.15	Fiscal Year and Accounting Methods	90
Section 7.16	Amendments of Permitted Junior Debt	90
Section 7.17	Intentionally Omitted	90
Section 7.18	Real Estate Collateral	90

ARTICLE VIII. EVENTS OF DEFAULT AND REMEDIES		91
Section 8.01	Events of Default	91
Section 8.02	Remedies Upon Event of Default	93
Section 8.03	Application of Funds	94

ARTICLE IX. ADMINISTRATIVE AGENT		94
Section 9.01	Appointment and Authority	94
Section 9.02	Rights as a Lender	95
Section 9.03	Exculpatory Provisions	95
Section 9.04	Reliance by Administrative Agent	96
Section 9.05	Delegation of Duties	96
Section 9.06	Resignation of Administrative Agent	96
Section 9.07	Non-Reliance on Administrative Agent and Other Lenders	97
Section 9.08	No Other Duties, Etc	97
Section 9.09	Administrative Agent May File Proofs of Claim	98
Section 9.10	Collateral and Guaranty Matters	98
Section 9.11	Erroneous Payments	99

ARTICLE X. MISCELLANEOUS		101
Section 10.01	Amendments, Etc	101
Section 10.02	Notices; Effectiveness; Electronic Communication	103
Section 10.03	No Waiver; Cumulative Remedies	104
Section 10.04	Expenses; Indemnity; Damage Waiver	104
Section 10.05	Payments Set Aside	107
Section 10.06	Successors and Assigns	107
Section 10.07	Treatment of Certain Information; Confidentiality	111
Section 10.08	Set-off	111
Section 10.09	Interest Rate Limitation	112
Section 10.10	Counterparts; Integration; Effectiveness; Electronic Execution	112
Section 10.11	Survival of Representations and Warranties	113

3
Section 10.12	Severability	113
Section 10.13	Replacement of Lenders	114
Section 10.14	Governing Law	114
Section 10.15	Waiver of Right to Trial by Jury	116
Section 10.16	USA Patriot Act; Anti-Money Laundering Laws	116
Section 10.17	Acknowledgement Regarding Any Supported QFCs	116
Section 10.18	Acknowledgement and Consent to Bail-In of Affected Financial Institutions	117
Section 10.19	Entire Agreement	118

Fiscal Quarters Ending	Maximum Cash Flow Leverage Ratio
Fifth Amendment Closing Date and each Fiscal Quarter and thereafter	3.50 to 1.00

	WELLS FARGO BANK, N.A.,
	as Administrative Agent

	By:
		Name:
		Title:

	WELLS FARGO BANK, N.A., as a Lender, L/C
	Issuer and Swing Line Lender

	By:
		Name:
		Title:

Lender		Revolving Commitment	Revolving Pro Rata Share
Wells Fargo Bank, N.A.	$	75,000,000	100	%

Total	$	75,000,000	100	%

	Shares of Capital Stock

Subsidiary of U.S. Lime	Authorized	Outstanding

Arkansas Lime Company	1,000	1,000

Texas Lime Company	1,000	1,000

Colorado Lime Company	10,000	5,000

Corson Lime Company	1,000	1,000

U.S. Lime Company (FKA
U.S. Lime Company – Houston)	100,000	1,000

U.S. Lime – Shreveport	100,000	1,000

ACT Holdings, Inc.	100,000	1,000
U.S. Lime Company – St. Clair	1,500	100
U.S. Lime Company – Transportation	100,000	1,000

BORROWER:

United States Lime & Minerals, Inc.
5429 LBJ Freeway, Suite 230
Dallas, TX 75240
Attention:	Timothy W. Byrne
Telephone:	(972) 991-8400
Facsimile:	(972) 385-1340
Electronic Mail:	timbyrne@uslm.com
Website Address:	www.uslm.com

ADMINISTRATIVE AGENT, L/C ISSUER,
SWING LINE LENDER AND WELLS FARGO
BANK, N.A., as a Lender:

Wells Fargo Bank, National Association MAC D1109-019 1525 West W.T. Harris Blvd. Charlotte, NC 28262
Attention of:	Syndication Agency Services
Telephone No.:	(704) 590-2706
Facsimile No.:	(844) 879-5899
Email:	Agencyservices.requests@wellsfargo.com

With a copy to:

Wells Fargo Bank, N.A. 14241 Dallas Parkway, 13^th Floor Dallas, TX 75254
Attention:	Jason Ford
Telephone:	(972) 599-5331
Electronic Mail:	Jason.ford2@wellsfargo.com

LENDERS:

Wells Fargo Bank, National Association (See above address)


Dated: November 2, 2023	/s/ Timothy W. Byrne
	Timothy W. Byrne
	President and Chief Executive Officer


Dated:November 2, 2023	/s/ Michael L. Wiedemer
	Michael L. Wiedemer
	Vice President and Chief Financial Officer


			Section
			104(d)			Proposed
	Section	Section	Citations	Section	Section	MSHA		Pending
	104 S & S	104(b)	and	110(b)(2)	107(a)	Assessments(2)		Legal
Mine(1)	Citations	Orders	Orders	Violations	Orders	($ in thousands)	Fatalities	Actions(3)
Texas Lime Company	1	—	—	—	—	0.8	—	—
Arkansas Lime Company
Plant	7	—	—	—	—	1.3	—	—
Limedale Quarry	1	—	—	—	—	0.5	—	—
U.S. Lime Company - St. Clair	—	—	—	—	—	0.6	—	—
Carthage Crushed Limestone	1	—	—	—	—	3.8	—	—
Mill Creek	2	—	—	—	—	2.9	—	—
Colorado Lime Company
Monarch Quarry	—	—	—	—	—	—	—	—
Delta Plant	—	—	—	—	—	—	—	—