8-K
UNITED STATES LIME & MINERALS INC (USLM)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): February 2, 2024
UNITED STATES LIME & MINERALS, INC.
(Exact name of registrant as specified in its charter)
| | | | | |
|---|---|---|---|---|
| TEXAS | | 0-4197 | | 75-0789226 |
| (State or other jurisdiction of | | (Commission File Number) | | (IRS Employer Identification No.) |
| incorporation) | | | | |
| | | | | |
| 5429 LBJ FREEWAY, SUITE 230 , DALLAS , TEXAS | | 75240 | ||
| (Address of principal executive offices) | | (Zip Code) |
( 972 ) 991-8400
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| 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 |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On February 2, 2024, United States Lime & Minerals, Inc. (the “Company”) issued a News Release announcing the financial results for the quarter and full year ended December 31, 2023. A copy of the News Release is attached hereto as Exhibit 99.1 and incorporated by reference herein in response to this Item 2.02.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits
The Exhibit Index set forth below is incorporated by reference in response to this Item.
EXHIBIT INDEX
| | | |
|---|---|---|
| Exhibit Number | | Exhibit |
| | | |
| 99.1 | | News Release of United States Lime & Minerals, Inc. dated February 2, 2024. |
| 104 | | Cover Page Interactive Data File (formatted as Inline XBRL). |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, United States Lime & Minerals, Inc. has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| | | |
|---|---|---|
| Date: February 2, 2024 | UNITED STATES LIME & MINERALS, INC. | |
| | | |
| | By: | /s/ Michael L. Wiedemer |
| | | Michael L. Wiedemer, Vice President and |
| | | Chief Financial Officer |
3
Exhibit 99.1
UNITED STATES LIME & MINERALS, INC. — NEWS RELEASE
| | | | |
|---|---|---|---|
| FOR IMMEDIATE RELEASE | | | Contact: Timothy W. Byrne |
| | | | (972) 991-8400 |
UNITED STATES LIME & MINERALS REPORTS FOURTH QUARTER AND FULL YEAR 2023
RESULTS AND DECLARES INCREASED REGULAR QUARTERLY CASH DIVIDEND
Dallas, Texas, February 2, 2024 - 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 $65.7 million, compared to $58.3 million in the fourth quarter 2022, an increase of $7.4 million, or 12.7%. For the full year 2023, the Company’s revenues were $281.3 million, compared to $236.2 million in the full year 2022, an increase of $45.2 million, or 19.1%. Lime and limestone revenues were $65.4 million in the fourth quarter 2023, compared to $57.8 million in the fourth quarter 2022, an increase of $7.6 million, or 13.1%. For the full year 2023, lime and limestone revenues were $280.2 million, compared to $233.4 million in the full year 2022, an increase of $46.8 million, or 20.0%. The increases in revenues in the fourth quarter and full year 2023, compared to the comparable 2022 periods, resulted from increases in average selling prices for the Company’s lime and limestone products, partially offset by decreased sales volumes. The decrease in sales volumes in the fourth quarter 2023, compared to the fourth quarter 2022, was principally due to decreased demand from the Company’s industrial and construction customers, partially offset by increased demand from its roofing and oil and gas services customers. The decrease in sales volumes in the full year 2023, compared to the full year 2022, were principally due to decreased demand from the Company’s industrial, steel, and construction customers, partially offset by increased demand from the Company’s roofing, environmental, and oil and gas services customers.
The Company’s gross profit was $23.6 million in the fourth quarter 2023, compared to $16.8 million in the fourth quarter 2022, an increase of $6.8 million, or 40.4%. The Company’s gross profit was $102.9 million in the full year 2023, compared to $70.3 million in the full year 2022, an increase of $32.5 million, or 46.2%. The Company’s lime and limestone gross profit was $23.6 million in the fourth quarter 2023, compared to $16.6 million in the fourth quarter 2022, an increase of $7.0 million, or 41.9%. The Company’s lime and limestone gross profit in the full year 2023 was $102.9 million, compared to $69.0 million in the full year 2022, an increase of $34.0 million, or 49.2%. The increases in gross profit in the fourth quarter and full year 2023, compared to the comparable 2022 periods, resulted primarily from the increased revenues discussed above, partially offset by increased production costs, principally from higher energy, labor, and parts and supplies costs.
Selling, general and administrative (“SG&A”) expenses were $4.6 million in the fourth quarter 2023, compared to $4.5 million in the fourth quarter 2022, an increase of $0.1 million, or 1.9%. SG&A expenses were $17.4 million in the full year 2023, compared to $15.6 million in the full year 2022, an increase of $1.9 million, or 12.1%. The increases in SG&A expenses in the 2023 periods, compared to the comparable 2022 periods, were primarily due to increased personnel expenses.
Other (income) expense, net was $2.4 million and $7.9 million in the fourth quarter and full year 2023, respectively, compared to $1.2 million and $1.8 million in the fourth quarter and full year 2022, respectively. The increases of $1.3 million and $6.2 million in other (income) expense, net, during the respective 2023 periods, compared to the comparable 2022 periods, were primarily due to higher interest rates earned on higher average balances of cash and cash equivalents.
The Company reported net income of $17.0 million ($2.98 per share diluted) and $74.5 million ($13.06 per share diluted) in the fourth quarter and full year 2023, respectively, compared to $10.8 million ($1.90 per share diluted) and $45.4 million ($8.00 per share diluted) in the fourth quarter and full year 2022, respectively, reflecting increases of $6.2 million, or 57.5%, and $29.1 million, or 64.1%, respectively.
“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 $0.25 per share on the Company’s common stock. This dividend is payable on March 15, 2024 to shareholders of record at the close of business on February 23, 2024.
* * *
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 | |
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