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United States Lime & Minerals Sees Higher Sales, Increased Demand


United States Lime & Minerals Inc. reported fourth quarter and full-year 2016 results. Revenues in the fourth quarter 2016 were $34.2 million, compared to $31.3 million in the comparable 2015 quarter, an increase of $2.9 million, or 9.2 percent.

Revenues from the company’s lime and limestone operations in the fourth quarter 2016 increased $2.8 million, or 9.0 percent, to $33.6 million from $30.8 million in the comparable prior year quarter, while revenues from its natural gas interests increased $0.1 million, or 21.1 percent, to $0.6 million in the fourth quarter 2016 from $0.5 million in the comparable 2015 quarter.

Prices realized for the company’s lime and limestone products in the fourth quarter and the full-year 2016 were somewhat lower compared to the comparable 2015 periods.

For the full-year 2016, revenues were $139.3 million, compared to $130.8 million in 2015, an increase of $8.4 million, or 6.5 percent. Revenues from the company’s lime and limestone operations in 2016 increased $8.8 million, or 6.9 percent, to $137.2 million from $128.4 million in 2015, while revenues from its natural gas interests decreased $0.4 million, or 14.5 percent, to $2.1 million from $2.4 million in 2015.

The increase in lime and limestone revenues in the fourth quarter 2016, as compared to the fourth quarter 2015, resulted primarily from increased sales volumes of the company’s lime and limestone products due to increased demand, principally from its construction and environmental customers. The increase in the company’s lime and limestone revenues in 2016, compared to 2015, resulted primarily from increased sales volumes due to increased demand, principally from its construction, environmental and roof shingle customers, partially offset by reduced demand from its oil and gas services customers.

The company’s gross profit was $7.4 million in the fourth quarter 2016, compared to $5.5 million in the comparable 2015 quarter, an increase of $2.0 million, or 35.9 percent. Gross profit in 2016 was $33.1 million, an increase of $4.4 million, or 15.2 percent, from $28.7 million in 2015. Included in gross profit in the fourth quarter and the full-year 2016 were $7.4 million and $33.0 million, respectively, from the company’s lime and limestone operations, compared to $5.6 million and $28.4 million, respectively, in the comparable 2015 periods.

The increased gross profit for the company’s lime and limestone operations in the fourth quarter and the full-year 2016 resulted primarily from the increased revenues discussed above. Gross profit from the company’s natural gas interests increased to $0.1 million in the fourth quarter 2016, compared to a loss of $0.1 in the fourth quarter 2015, primarily due to the increased revenues discussed above.

“We are pleased that our 2016 operating results improved over last year, leaving us with $75 million in cash at Dec. 31, 2016, compared to $60 million at Dec. 31, 2015, and no debt,” said Timothy W. Byrne, president and chief executive officer. “With our diverse customer base, overall demand for our lime and limestone products increased in the fourth quarter and full-year 2016, although pricing remains a challenge in the current competitive environment,” Mr. Byrne added.