DALLAS, July 29, 2015 /PRNewswire/ -- United States
Lime & Minerals, Inc. (NASDAQ: USLM) today reported second
quarter 2015 results: Revenues in the second quarter 2015
were $32.5 million, compared to
$38.7 million in the comparable prior
year quarter, a decrease of $6.2
million, or 16.1%. Revenues from the Company's lime
and limestone operations in the second quarter 2015 decreased
$5.5 million, or 14.8%, to
$31.8 million from $37.3 million in the comparable 2014 quarter,
while revenues from its natural gas interests decreased
$0.7 million, or 50.5%, to
$0.7 million from $1.4 million in the comparable prior year
quarter. For the six months ended June
30, 2015, revenues were $62.5
million, compared to $75.4
million in the comparable 2014 period, a decrease of
$12.9 million, or 17.1%.
Revenues from the Company's lime and limestone operations in the
first six months 2015 decreased $11.2
million, or 15.5%, to $61.1
million from $72.4 million in
the comparable 2014 period, while revenues from its natural gas
interests decreased $1.6 million, or
54.2%, to $1.4 million from
$3.0 million in the comparable prior
year period.
The decrease in lime and limestone revenues in the second
quarter and first six months 2015, as compared to last year's
comparable periods, resulted primarily from decreased sales volumes
of the Company's lime and limestone products due to decreased
demand, principally from its construction, oil and gas services,
industrial and steel customers. In addition, the first quarter 2014
benefited from increased construction demand that had resulted from
the postponement of certain construction projects from the fourth
quarter 2013 to the first quarter 2014, and the 2014 periods
included lime sales to another lime producer for delivery to its
customers. In the 2015 periods, demand from the Company's
construction customers decreased due to the unusually persistent
adverse weather conditions, including ice and snow storms and rain
in the first quarter, and, in the Company's construction market
areas, rainfall in the second quarter that was among the highest in
more than 100 years. The decreased demand from the Company's
steel customers in the 2015 periods was due to decreased steel
production, while the decreased demand in the 2015 periods from its
oil and gas services customers was due to reduced drilling
activities resulting from declines in oil and gas prices.
Prices realized for the Company's lime and limestone products
in the 2015 periods were slightly higher compared to the 2014
periods.
Production volumes from the Company's natural gas interests in
the second quarter 2015 totaled 183 thousand MCF, sold at an
average price of $3.66 per MCF,
compared to 214 thousand MCF, sold at an average price of
$6.33 per MCF, in the comparable 2014
quarter. Production volumes in the first six months 2015 from
natural gas interests totaled 371 thousand MCF, sold at an average
price of $3.70 per MCF, compared to
the first six months 2014 when 432 thousand MCF was produced and
sold at an average price of $6.93 per
MCF. The Company's 2015 average prices per MCF were lower
than the prior year's average prices primarily due to decreases in
natural gas and natural gas liquids prices.
The Company's gross profit was $7.0
million in the second quarter 2015, compared to $10.4 million in the comparable 2014 quarter, a
decrease of $3.4 million, or 32.7%.
Gross profit in the first six months 2015 was $12.9 million, a decrease of $6.1 million, or 32.3%, from $19.0 million in the first six months 2014.
Included in gross profit in the second quarter and first six
months 2015 were $6.8 million and
$12.5 million, respectively, from the
Company's lime and limestone operations, compared to $9.7 million and $17.4
million, respectively, in the comparable 2014 periods.
The decreased gross profit for the Company's lime and
limestone operations in the second quarter and first six months
2015 resulted primarily from the decreased revenues discussed
above.
Gross profit from the Company's natural gas interests decreased
to $0.2 million and $0.4 million in the second quarter and first six
months 2015, respectively, from $0.7
million and $1.6 million,
respectively, in the comparable 2014 periods. The decreased
gross profit for the Company's natural gas interests resulted
primarily from the decreased revenues discussed above.
Interest expense increased $0.2
million and $0.1 million in
the second quarter and first six months 2015, respectively,
compared to the comparable 2014 periods. The increases in
interest expense resulted from the $0.5
million payment to repurchase the Company's interest rate
hedges in the second quarter 2015 in conjunction with the repayment
of the $15.4 million then-outstanding
balance of its term loans in May 2015. The repurchase of the
hedges increased interest expense approximately $0.3 million in the 2015 periods, compared to
interest expense without the repurchase, but, along with the
repayment of the term loans, will reduce interest expense for the
second half 2015 by approximately $0.5
million.
During the second quarter 2015, the Company also terminated the
Corson Pension Plan, which required a cash payment of $0.2 million and resulted in a second quarter
expense of $0.9 million ($0.6 million, net of tax benefit), included in
other expense (income), net, that was previously included in
accumulated other comprehensive loss. As a result of the
termination of the Corson Plan, the Company will not have to make
any future contributions to the Plan.
The Company reported net income of $2.6
million ($0.46 per share
diluted) in the second quarter 2015, compared to net income of
$5.7 million ($1.02 per share diluted) in the second quarter
2014, a decrease of $3.2 million, or
55.3%. In the first six months 2015, net income decreased by
$5.3 million, or 51.8%, to
$4.9 million ($0.88 per share diluted), compared to
$10.2 million ($1.83 per share diluted) in the first six months
2014.
"This has been a challenging year with reductions in demand from
our lime and limestone customers in most all of our markets," said
Timothy W. Byrne, President and
Chief Executive Officer. "With better weather conditions in
the second half of this year, we expect to see demand for our lime
and limestone products from our construction customers improve,
compared to demand in the first half," Mr. Byrne added. "We
were pleased that our significant cash flows and strong balance
sheet enabled us to pay off our outstanding term loans and amend
our credit agreement. The amendment provides for a new
five-year $75 million revolving
credit facility. The amendment also provides for an
incremental accordion feature to borrow up to an addition
$50 million on the same terms,
subject to approval by lender."
Dividend
The Company also announced today that its Board of Directors has
declared a regular quarterly cash dividend of $0.125 (12.5 cents)
per share on the Company's common stock. This dividend is payable
on September 18, 2015 to shareholders
of record at the close of business on August
28, 2015.
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),
environmental (including municipal sanitation and water treatment
facilities and flue gas treatment processes), oil and gas services,
industrial (including paper and glass manufacturers), roof shingle
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
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
INCOME
STATEMENTS
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
Lime and
limestone operations
|
$ 31,779
|
|
$ 37,320
|
|
$ 61,141
|
|
$ 72,371
|
Natural gas
interests
|
671
|
|
1,356
|
|
1,373
|
|
2,996
|
Total
|
$ 32,450
|
|
$ 38,676
|
|
$ 62,514
|
|
$ 75,367
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
|
|
|
|
Lime and
limestone operations
|
$ 6,809
|
|
$ 9,704
|
|
$ 12,506
|
|
$ 17,366
|
Natural gas
interests
|
204
|
|
719
|
|
371
|
|
1,649
|
Total
|
$ 7,013
|
|
$ 10,423
|
|
$ 12,877
|
|
$ 19,015
|
Operating
profit
|
$ 4,613
|
|
$ 8,005
|
|
$ 8,078
|
|
$ 14,415
|
Interest
expense
|
590
|
|
408
|
|
912
|
|
807
|
Other expense
(income), net
|
712
|
|
(55)
|
|
705
|
|
(53)
|
Income tax
expense
|
752
|
|
1,934
|
|
1,537
|
|
3,451
|
Net
income
|
$ 2,559
|
|
$ 5,718
|
|
$ 4,924
|
|
$ 10,210
|
|
|
|
|
|
|
|
|
Income per share of
common stock:
|
|
|
|
|
|
|
|
Basic
|
$ 0.46
|
|
$ 1.03
|
|
$ 0.88
|
|
$
1.83
|
Diluted
|
$ 0.46
|
|
$ 1.02
|
|
$ 0.88
|
|
$
1.83
|
Weighted-average
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
5,599
|
|
5,578
|
|
5,598
|
|
5,577
|
Diluted
|
5,605
|
|
5,589
|
|
5,605
|
|
5,588
|
Cash dividends per
share of common stock
|
$ 0.125
|
|
$ 0.125
|
|
$ 0.250
|
|
$ 0.250
|
|
|
|
|
|
June
30,
|
|
December
31,
|
BALANCE
SHEETS
|
|
|
|
|
2015
|
|
2014
|
Assets:
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
$ 79,491
|
|
$ 91,762
|
Property, plant and equipment, net
|
|
|
|
|
106,606
|
|
108,513
|
Other
assets, net
|
|
|
|
|
140
|
|
145
|
Total
assets
|
|
|
|
|
$ 186,237
|
|
$ 200,420
|
Liabilities and Stockholders' Equity:
|
|
|
|
|
|
|
|
Current
installments of debt
|
|
|
|
|
$
-
|
|
$ 16,667
|
Other
current liabilities
|
|
|
|
|
5,783
|
|
8,298
|
Deferred
tax liabilities, net
|
|
|
|
|
19,616
|
|
19,259
|
Other
liabilities
|
|
|
|
|
1,181
|
|
1,505
|
Stockholders' equity
|
|
|
|
|
159,657
|
|
154,691
|
Total liabilities and
stockholders' equity
|
|
|
|
|
$ 186,237
|
|
$ 200,420
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/united-states-lime--minerals-reports-second-quarter-2015-results-and-declares-regular-quarterly-cash-dividend-300120874.html
SOURCE United States Lime & Minerals, Inc.